AGENDA #4i

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Correction of Budget for Town Operations Center 

DATE:             January 12, 2004

The attached budget amendments would correct an error in presenting a budget amendment for land purchased for the Town Operations Center.

BACKGROUND AND DISCUSSION

A budget amendment was approved by Council on June 25, 2003, to provide for the purchase of land for the Town Operations Center from installment contract proceeds.  The amendment was correct except that the funding should have been received into the Transit Capital Grants Fund because the land is for the Transportation Facility.  In addition, the original amendment for $345,000 excluded closing costs and repayment costs.  The new amendment includes $2,000 for closing costs and $60,000 for the first two years’ financing payments.  We are considering replacing the loan after the first two years and so have only included the budget for the first two years’ financing payments.

RECOMMENDATION

That the Council enact the attached budget ordinance reflecting the appropriate accounting for the capital purchase of land for the Transportation facility.

ATTACHMENT

1. Memorandum of June 23, 2003 (p. 4).

AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR RENOVATIONS AND IMPROVEMENTS TO PUBLIC WORKS FACILITIES FUNDED FROM 1996 BONDS (2004-01-12/O-3)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project established for Public Works Facility renovations funded from 1996 bonds approved by the voters in November 1996 is hereby amended as follows:

SECTION I

The capital projects as authorized by bond referenda approved in November, 1996 and as determined by the Town Council, includes the capital costs of renovating and adding facilities to support Public Works operations.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.

SECTION III

SECTION IV

The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.

This the 12th day of January, 2004.

AN ORDINANCE TO AMEND THE CAPITAL PROJECT ORDINANCE FOR A NEW TRANSPORTATION OPERATIONS CENTER (2004-01-12/O-4)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby amended as follows.

SECTION I

Funds available for this project include local contributions from the Town’s Transportation Capital Reserve Fund, grants and agreements from the Federal Transit Administration, and potential proceeds from debt financing agreements.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of grant agreements executed with the Federal Transit Administration and the funds appropriated herein.

SECTION III

SECTION IV

The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.

Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.

This the 12th day of January, 2004.