AGENDA #10
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposal for a Revenue Enhancement and Fee Study
DATE: April 5, 2005
The attached resolution would authorize MAXIMUS, the Town’s budget consultant, to study revenue enhancement and fees as discussed in the Budget Review Advisory Committee meeting. The attached budget amendment would use $38,155 from fund balance for the study.
BACKGROUND AND DISCUSSION
At the March 23, 2005, meeting of the Budget Review Advisory Committee, MAXIMUS, the Town’s budget consultant, presented their draft report which included a statement that certain Town fees were not based on the actual costs of delivering services. The Council discussed the possibility of a fee study proposal. Based on that discussion and at the Council’s request, MAXIMUS made the attached proposal. The proposal was on the agenda for discussion at the April 4, 2005, meeting of the Council and the Budget Review Advisory Committee.
If the Council wishes to benefit from the fee study for the 2005-06 fiscal year, it will need to authorize work to begin immediately for expected completion by mid-June. In order to fund the study, the Council would need to adopt the attached budget ordinance authorizing use of $38,155 from fund balance.
RECOMMENDATION
That the Council adopt the attached resolution authorizing MAXIMUS to conduct a study of revenue enhancement and fees; and
That the Council enact the attached budget ordinance amendment.
ATTACHMENT
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH MAXIMUS FOR A STUDY OF REVENUE ENHANCEMENT AND FEES (2005-04-05/R-12)
WHEREAS, the Council desires to have appropriate fees for services; and
WHEREAS, it has been determined that Town fees do not capture the full cost of services;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Town Manager to enter into the attached contract with MAXIMUS for a study of revenue enhancement and fees.
This the 5th day of April, 2005.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE
RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004” (2004-04-05/O-4)
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, 2004” as duly adopted on June 14, 2004 and the same is hereby amended as follows:
This the 5th day of April, 2005.