AGENDA #4i

memorandum

to:	Roger L. Stancil, Town Manager
from:	K. Stephen Spade, Transportation Director
subject:	Budget Amendment for the FY 2007-2008 State Maintenance Assistance Program Funding and Appropriated Fund Balance
date:	October 22, 2007

PURPOSE

The attached budget amendment would increase the Appropriated Fund Balance in the FY 2007-2008 Transit Department Budget by $132,644.

BACKGROUND

In FY 2006-2007, Chapel Hill Transit received $132,644 of additional State Maintenance Assistance Program (SMAP) funding than the amount estimated for budget.  The additional funding was not allocated during FY 2006-2007 and became part of the fund balance for the Transit Department for the FY 2007-2008 budget.  During the May 15, 2007 Public Transit Committee meeting a recommendation for the allocation of the additional SMAP funding was presented by the Transit Director, Steve Spade.  Subsequently, the Transit Partners approved the recommendation for the allocation of the additional SMAP funding as recommended.

The specific recommendations for the allocation of $132,644 in Appropriated Fund Balance are as follows:

1. Decrease FY 2007-2008 estimated SMAP revenue by $90,000.

2. Utilize the remaining $42,644 to secure the services of a demand response consultant to develop an analysis of EZ Rider operations and recommend service improvements and efficiencies.  Below is a partial list of activities to be performed by the consultant:

   1. Analyze demand response data
   2. Conduct peer group analysis
   3. Analyze and evaluate system operating procedures
   4. Analyze system policies
   5. Identify opportunities for cooperation/collaboration with area providers
   6. Examine opportunities for consolidation of systems

>RECOMMENDATION

That Council adopt the attached Budget Ordinance Amendment to increase the Appropriated Fund Balance by $132,644, decrease estimated revenue by $90,000, and increase expenses by $42,644 in the FY 2007-2008 Transit Department Budget.