AGENDA #5f
Memorandum
TO: W. Calvin Horton, Town Manager
FROM: Kay Johnson, Finance Director
SUBJECT: Transportation Fund, Proposed Allocation of Additional State Revenues
DATE: February 24, 2005
In the current budget year, we received $1,328,571 for our Transportation Operations from the State above the amount that we budgeted. The additional funds were received because of the history of increased service and ridership. The Town Council will be receiving an agenda item on March 7 proposing the use of the funds.
We met with our partners, the University of North Carolina at Chapel Hill and the Town of Carrboro, on February 16, 2004 to discuss the proposed allocation of the additional State revenues. Our partners are in agreement with the proposal which is attached. The proposal would use the funds in the following ways:
|
Possible Use |
Amount |
|
Local share of remanufacture of 13 buses |
$255,480 |
|
Additional funds for capital reserve in 2005-06 |
310,000 |
|
Additional funds for capital reserve in 2006-07 |
280,000 |
|
Additional funds for fuel cost increases in 2005-06 |
114,991 |
|
Purchase of software to improve attendance record keeping and payroll processing |
78,877 |
|
Improvements to bus amenities including code blue phones, shelters, lights and trash cans |
289,233 |
|
TOTAL |
$1,328,571 |
Note that, if the proposal is approved by the Council as recommended by the partners, we would be able to reduce our total contribution to the Transportation Capital Reserve Fund by $310,000 in 2004-05. The reduced requirement for funding for the Transportation Capital Reserve Fund would allow each of the partners to make a lower contribution to the fund in the 2005-06 budget year than we originally anticipated.
ATTACHMENTS
February 16, 2005
TRANSPORTATION FUND
Proposed Allocation of a Portion of Additional Revenue 2004-05
For discussion at Policy Group meeting 2/16/2005
Amount of additional revenue = $1,328,571
1) Local share of remanufacture of 13 buses including AVL additions
= $255,480
Buses are $196,000 X 13 = $2,548,000
AVL additions $159,555
$2,707,555
|
Total Grant |
Federal |
State |
Local |
|
$1,000,000 |
$800,000 (80%) |
$100,000 (10%) |
$100,000 (10%) |
|
$180,000 |
$144,000 (80%) |
$18,000 (10%) |
$18,000 (10%) |
|
$1,527,555 |
$1,267,871 (83%) |
$122,204 (8%) |
$137,480 (9%) |
|
$2,707,555 |
$2,211,871 |
$240,204 |
$255,480 |
2) Additional funds to capital reserve to level out payments in FY 2005-06 = $310,000
Additional funds to capital reserve to level out payments in FY 2006-07 = $280,000
3) Additional money to cover higher than budgeted cost in Kerosene
Kerosene
Budgeted @ $1.25/gallon Average estimated @ $1.45/gallon
Estimated gallons 574,955 Estimated gallons 574,955
Budgeted @ $718,694 New estimate $833,685
Additional amount estimated for kerosene= $114,991
4) Purchase of Kronos equipment and software to automate the payroll process for Chapel Hill Transit. Benefits include:
· Savings from reduction of errors,
· Savings in personnel time to process payroll,
· Allows employees to query system for hours worked, sick and vacation balances, and leave requests.
· Allows for improved record keeping in regards to attendance.
· Kronos claims a return on investment period of 10 months.
Cost - $78,877
4) Improvements to bus amenities. This could include additional shelters, benches, concrete pads, trash cans, glass replacement for the cloudy plexiglass shelters, transit tubes, solar lighting, and / or code blue phones.
Balance of funds for rebates or improvements to amenities: $289,223