AGENDA #11b

MEMORANDUM

 

To:                   Roger L. Stancil, Town Manager

 

FROM:            Steve Spade, Transit Director

 

SUBJECT:       Legislative position on Congestion Relief / Intermodal Transfer Fund

 

DATE;             June 25, 2008

 

PURPOSE

 

The purpose of this memorandum is to recommend a legislative position to be adopted by the Town of Chapel Hill regarding the Congestion Relief / Intermodal Transfer Fund (House Bill 2363 and Senate Bill 1894) being considered in this session of the North Carolina Legislature.

 

BACKGROUND

 

In 2007 Governor Easley created the 21st Century Transportation Committee to study statewide transportation infrastructure needs.  The committee drafted recommended legislation to create a capital fund and local funding options for transportation.  The legislation has been introduced in the short session of the North Carolina State Legislature as the Congestion Relief / Intermodal Transportation Fund (House Bill 2363 and Senate Bill 1894).

 

This legislation would authorize funding options at the local level and create a state level capital fund to be used for the support of public transportation.  Local options include the following:

  1. Increase vehicle registration fees from $5.00 to $7.00
  2. Authorize a motor vehicle rental charge in several counties not to exceed 5%.
  3. Authorize a ½ cent sales tax in the three largest urban areas of the state including the Triangle area.
  4. Authorize a ¼ cent sales tax in selected counties of the state.

 

In its current form the legislation authorizes Triangle Transit to hold a referendum for a ½ cent sales tax to be implemented in Wake, Durham and Orange counties.  Approval would be required from each county board to hold the referendum.  The Metropolitan Planning Organization would need to approve the financial plan developed by the Triangle Transit describing how funds would be distributed throughout the region.

 

This legislation could potentially affect Chapel Hill in the form of a tax on its citizens and as a possible source of long term funding for local transit operations.  This legislation could also limit the ability of Chapel Hill to develop a source of long term funding by excluding Chapel Hill from directly receiving revenues from the local option sales tax.

 

RECOMMENDATIONS TO THE TOWN COUNCIL

 

We recommend that the Council adopt a position statement on the legislation that promotes the Town’s interests.  We further recommend that this statement communicate to the Legislature our belief that this legislation should be drafted in such a way to improve the ability to utilize the funds to support ongoing growth and development of Chapel Hill Transit.  We recommend the legislation include the following:

 

  1. Provide a guaranteed level of funding by requiring a 20% pass through of revenues for local transit systems from tax receipts.
  2. Provide for the ability of local governments to approve the financial plan.
  3. Authorization to pursue a ¼ cent sales tax for the benefit of local transit services.

 

RECOMMENDATION

 

We recommend the Town Council approve the attached resolution adopting a legislative position regarding H2363 and S1894.  We also recommend that this position be transmitted to the Orange County delegation to the State Legislature.

 

ADDITIONAL INFORMATION (June 25, 2008)

  1. Staff PowerPoint Presentation [12 KB pdf]