memorandum

to:                  Roger L. Stancil, Town Manager

from:            Kenneth C. Pennoyer, Director of Business Management

subject: Budget Ordinance Amendments to Correct and Adjust Various Fund Budgets

date:             April 15, 2009

PURPOSE

The attached budget amendments reflect adjustments to the General Fund, Grants Fund, Stormwater Fund and the Capital Improvement Program Fund as described below.

BACKGROUND AND Discussion

• PEG Channel Funding:  With the change in cable franchising from local to state control, the structure of the franchise revenues and the funding for PEG channels has also changed.  Access fees have been replaced by PEG Subscriber fees and Supplemental PEG Funds.  The portion of the PEG funding derived from the Video Programming Tax that is passed thru to The People’s Channel (TPC) was not included in the original franchise tax revenue budget for the FY2008-09.  This budget amendment would recognize that $155,000 in additional revenue from franchise taxes and budget payments to TPC in the General Fund Non-departmental Budget.  
• Training Initiative: The Manager’s Municipal Staff Development initiative coordinates training among the governmental units in Orange County.  This Budget Ordinance would recognize revenue ($1,959) from the other members of the initiative to pay costs incurred by the Town of Chapel Hill when it hosted a joint event and replenish the training account.
• Police DOJ Grant Match:  In January of 2009 the Police Department received a $10,466 Department of Justice grant for the purchase of bullet proof vests.  The grant has a 100% matching requirement.  This budget amendment would move matching funds for the grant from the Police Department Budget to the Grant Fund.   
• MPO Grant Match – The Town of Chapel Hill provides local matching funds for projects funded through the Metropolitan Planning Organization (MPO). This amendment would appropriate additional funds from fund balance to pay a $2,200 shortfall in the Town of Chapel Hill’s matching requirements for various projects undertaken in the current fiscal year. 
• Stormwater Homestead – The Stormwater fund provides an exemption from stormwater fees for residents that are eligible for the Homestead exemption.  This year the requests for exemptions have exceeded the original budget of $4,000.  This amendment moves $2,000 from the General Fund to the Stormwater Fund to cover additional Homestead Exemptions.
• Orange County Arts Grant Match – In December the Office of Public Art received a grant from the Orange County Arts Commission (OCAC) in the amount of $1,500.  The grant has a one to one matching requirement.  In order to properly account for the matching portion this budget amendment moves $1,500 from the General Fund Public Arts Budget to the Grants Fund.
• Public Works Mosquito Grant – The Public Works Department received $3,871 Mosquito Control Grant from NC DENR.  This budget amendment recognizes the receipt of those funds in the Public Works General Fund Budget.     
• Insurance Proceeds CIP – The Town received insurance proceeds for damage to the Town’s fuel island in the amount of $11,826.  This budget amendment would reflect the receipt of funds in the CIP in order to make extraordinary maintenance repairs.   
• Fire Department Grant – The Fire Department received a $1,000 grant from the North Carolina Firefighter’s Burned Children’s Fund to support fire safety programs.  This budget amendment would increase the Fire Department General Fund Budget to reflect the receipt of this grant.

RECOMMENDATION

That the Council enact the attached budget amendments to make adjustments to the General Fund, Grants Fund, Stormwater Fund, the Capital Improvement Program Fund.