AGENDA# 4b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Budget Amendment for Additional Transit Services
DATE: September 11, 2000
The attached budget ordinance would amend the fiscal year 2000-2001 Transportation Department budget by $270,388 to allow for the expansion of transit services.
Following the April 26, 2000 Transit Summit, representatives from Chapel Hill, Carrboro and the University met on May 17, 2000 to evaluate options for increasing transit service during fiscal year 2000-01. Several options were considered and consensus was reached to support Option 1 A, which would provide weekday transit service at full service levels year-round. During a budget work session on June 5, 2000, the Town Council authorized the Manager to implement the additional transit services contingent upon the North Carolina General Assembly adopting a budget for fiscal year 2000-2001 that included funding for public transportation similar to the level included in the fiscal year 1999-2000 budget. The original estimate to implement this service expansion was based on a full year of operation and included over 9,000 hours of service at an annual cost of $414,000. Since new transit service schedules did not become effective until August 21, 2000, the expanded services will only add about 6,000 hours of service during the current year at a cost of $270,388.
The North Carolina General Assembly adopted a fiscal year 2000-2001 budget that includes significantly more state assistance for transit than originally expected. Total state transit assistance is now estimated at $1,000,000, which is an increase of $450,000 from the adopted budget.
The proposed amendment would increase the Transportation Department budget by $270,388 to total of $7,213,968. By increasing cost by $270,388 and State revenue by $450,000, the net effect is a $179,612 reduction in local net cost. Therefore, the cost to be covered by each partner will be less than originally budgeted. See the table below.
Adopted Proposed
Budget Amendment Change
Total System Cost 6,943,580 7,213,968 270,388
Total Federal, State, Operating Revenue (3,064,000) (3,514,000) (450,000)
Total System Net Cost 3,879,580 3,669,968 (179,612)
Distribution of System Net Cost
UNC (39.85%) 1,546,013 1,497,896 * ( 48,117)
Carrboro (15.62%) 605,990 571,843 ( 34,147)
Chapel Hill (44.53%) 1,727,577 1,630,229 ( 97,348)
Total 3,879,580 3,699,968 (179,612)
* UNC net cost under the proposed amendment includes $39,000 of cost assigned directly to UNC for expanded services on the U and RU campus shuttle routes. The remainder of the cost associated with the service expansion is shared among all the partners.
That the Council adopt the attached budget ordinance amending the Transportation Department budget for fiscal year 2000-2001.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2000 (2000-09-11/O-1)
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, 2000” as duly adopted on June 26, 2000 be and the same is hereby amended as follows:
ARTICLE I
Current Revised
APPROPRIATIONS Budget Increase Decrease Budget
TRANSPORTATION
FUND 6,943,580 270,388 7,213,968
ARTICLE II
Current Revised
REVENUES Budget Increase Decrease Budget
TRANSPORTATION
FUND 6,943,580 270,388 7,213,968
This the 11th day of September, 2000.