AGENDA #4h

memorandum

to:                  Roger L. Stancil, Town Manager

from:            Ken Pennoyer, Business & Management Services

                        K. Stephen Spade, Transit Director

subject:       Budget Amendment to Recognize Additional Revenue

date:             April 28, 2008

PURPOSE

The attached budget amendment would recognize additional revenue in the FY 2007-2008 Transit Department Budget by $274,531.

BACKGROUND

In FY 2007-2008, Chapel Hill Transit received $160,519 of additional State Maintenance Assistance Program (SMAP) funding than the amount estimated for budget.  A portion of the SMAP funding is allocated based on ridership, therefore the additional revenue is attributed to higher reported ridership.  Ad Valorem revenue for the current year exceeded the budget amount by $98,000.  The Transit Department also received $16,012 in additional revenue from several operating revenue sources, including warranty reimbursements, insurance claims and miscellaneous revenues.

Due to increased fuel costs and petroleum-related products used for maintenance and repair of the bus fleet it is necessary to increase the associated expenditures. In addition, there have been higher than anticipated transmission and engine replacements.  While the Transit Department continues to implement cost-saving measures, this budget amendment to recognize additional revenue is necessary to cover the costs associated with continuing current service levels.

RECOMMENDATION

That Council adopt the attached Budget Ordinance Amendment to recognize additional revenue by $274,531 and increase expenses by $274,531 in the FY 2007-2008 Transit Department Budget.

ATTACHMENT

  1. Chart of Account Code information (p. 3).