AGENDA #4h

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Budget Amendment for Federal Emergency Management Agency Ice Storm and Hurricane Isabel Reimbursement

DATE:             June 30, 2004

The attached budget ordinance would amend the 2003-04 budget to account for reimbursements from the Federal Emergency Management Agency for the Ice Storm of December 2002 and for Hurricane Isabel in September 2003.  

BACKGROUND s

The federal government has declared two disasters over the past two fiscal years for which the Town is eligible for intergovernmental assistance (federal - 75%; State - 25%).  The first event, the ice storm in December 2002, involved total costs of $1,506,555, while the second, Hurricane Isabel in September 2003, resulted in total costs of $315,186.

DISCUSSION

With the exception of tipping fees, almost all expenditures related to the ice storm in December 2002 were accounted for in fiscal year 2002-03.  All expenditures related to Hurricane Isabel are accounted for in fiscal 2003-04, as are all the revenues for this event.  

This proposed amendment incorporates all revenues and expenditures for the disasters not accounted for in fiscal 2002-03.  The amounts include tipping fees of about $208,000 which originally were denied by the Federal Emergency Management Agency (FEMA).  We received notice of the Town’s successful appeal in late April 2004. 

RECOMMENDATION

We recommend that the Council enact the attached budget amendment to record Federal Emergency Management Agency reimbursement of expenses for tipping fees and other expenses related to the ice storm of December 2002 and all expenses related to Hurricane Isabel.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-06-30/O-2)

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 30^th day of June, 2004.