AGENDA #4h

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Budget Amendment for Transit Capital Reserve

 

DATE:             March 22, 2004

 

 

Enactment of the attached budget ordinance would accept additional State aid and would transfer $889,337 in local funds to the Transportation Department’s Capital Reserve Fund to partially offset local share costs of the new transit facility at the new Town Operations Center. 

 

BACKGROUND AND DISCUSSION

 

In order to replace the transit facility at the end of 2006, the Town will need to increase the capital reserve of the Transportation Fund.  The Town began to reserve money to cover the local share (approximately 10%) of the replacement facility in the 2002-03 budget.  The costs for the new facility are approximately $19 million; the local share required to match the State and federal funds is approximately $1,981,000.  The amount of local funds accrued for the project through this budget year is $500,000.  Transfer of $889,337 would bring the amount accrued to $1,389,337.  The remaining $591,607 needed for the local share will be accrued in the next three (3) budget years at $197,202 per year. 

 

 

Additional funding is available this year because the current year (2003-04) State Maintenance Assistance Program (SMAP) allocation is $889,337 higher than the original budget estimate.  This is a one-time disbursement of Highway Trust funds, along with the Town’s customary payment.  We will use this amount for operation of the Town’s transit system as required by State rules.  Local funds in the amount of $889,337 will be transferred to the Transportation Capital Reserve.   At the February 18 meeting of the Public Transit Committee, which included representatives from the University and Carrboro, there was agreement to transfer $889,337 in local funds to the reserve fund for the local share of the new transit facility.

 

RECOMMENDATION

 

We recommend enactment of the attached budget amendment, accepting the additional State Maintenance Assistance revenue and transferring $889,337 in local funds to the Transportation Department’s Capital Reserve Fund to help cover the local share of the new transit facility.

 

 

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-03-22/O-3)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2003” as duly adopted on June 9, 2003 and the same is hereby amended as follows:

 

This the 22^nd day of March, 2004.