to: Roger L. Stancil, Town Manager
from: K. Stephen Spade, Transit Director
Jeanne Tate, Assistant Director of Business Management
subject: Budget Ordinance Amendments to Correct and Adjust Various Transit Fund Budgets
date: March 23, 2009
PURPOSE
The attached budget amendments reflect changes in conditions, correction of errors and budget adjustments for the Transit Fund, the Transit Grant Fund and the Transit Capital Reserve Fund.
Transit Fund
The Transit Department receives an annual State Maintenance Assistance Program allocation that provides support to the operating budget. We have received notice that the amount to be received in FY2009 will be about 6.4% less than was originally budgeted. A budget amendment is needed to decrease the budgeted amount by $225,782. Locking into a fuel contract has resulted in savings on fuel expenses through the remainder of FY2009, so the decrease can be accomplished without service impact.
Transit Grant Fund
The Town received payment from Orange Water and Sewer Authority for the pump station that was installed at the Town Operations Center. Since the pump station was built using federal grant funds, the reimbursement from OWASA ($46,408) is considered program income by the Federal Transit Administration and must be returned to a federal project. A budget amendment is needed to appropriate these funds to a federal grant that has been reduced by the same amount.
The attached amendments will also adjust our State and local matches to reflect the State’s actual contributions for two other grants.
Transit Capital Reserve
At the close of the prior fiscal year, the University of North Carolina agreed to give up its FY2008 refund ($115,168) to assist the Transportation Department in rebuilding the Capital Reserve Fund. The decision came after the close of the fiscal year and the amount is currently a part of the Transit Fund’s fund balance. The attached budget amendment will appropriate fund balance to transfer it to the Transit Capital Reserve Fund.
That the Council enact the attached budget amendments to make adjustments to the Transit Fund, the Transit Grant Fund and the Transit Capital Reserve Fund.
1. An Ordinance To Amend “The Ordinance Concerning Appropriations And The Raising Of Revenue And Expenditures For The Fiscal Year Beginning July 1, 2008” (2009-03-23/O-1)
2. An Ordinance To Amend A Project Budget For A Transit Grant (2009-03-23/O-2)
3. An Ordinance Amending A Project Budget For A Transit Grant (2009-03-23/O-3)
4. An Ordinance Amending A Project Budget For A Transit Grant (2009-03-23/O-4)