AGENDA #3

Friday, March 1, 2002

Transportation Department

Initial Budget Presentation to the Mayor and Council

2002 – 2003

Mission Statement

Chapel Hill Transit’s mission is to

· provide safe, convenient, affordable, reliable, and responsive public transportation services to residents and visitors of the Chapel Hill, Carrboro, and University of North Carolina communities,

· be accessible, efficiently operated and supportive of a healthy environment and a sustainable local economy, and to

· connect and coordinate with other transportation means in the Research Triangle area providing an alternative for local and regional travel.

The mission of the Parking Services Division is to

• provide on-street and off-street parking for Chapel Hill’s citizens and visitors in an efficient and courteous manner, and to
• operate a parking enforcement system in compliance with the parking regulations adopted by the Town Council.

Brief Services Description

• Provide fixed route bus service, EZ rider service for the mobility challenged, and shared ride service for the communities of Chapel Hill, Carrboro, and the University of North Carolina.

• Operate the Tar Heel Express – a park and ride shuttle service for special events.

• Oversee the taxi franchise approvals and renewals according to the Town Code of Ordinances.

• Ensure compliance with State and Federal regulations.

• Ensure that statistics are reported accurately and timely.

• Manage the Town’s on- and off-street parking services.

Departmental Revenue Estimates - Transit     

Revenue Source	2000-01 Actual Revenue	2001-02 Budgeted Revenue	Estimated 2001-2002 Revenue	Estimated Revenue 2002-2003	% Increase (Decrease) from Original Budget
Operating	1,572,407	979,857	823,701	240,000	(75.5)%
Federal/State	2,324,754	2,150,000	2,505,708	2,505,708	16.5%
University	1,504,910	2,907,943	2,742,183	3,627,595	25.0%
Carrboro	491,908	695,510	659,866	730,490	5.0%
Chapel Hill	1,432,293	2,106,609	1,583,469	2,041,658	(2.7)%
Other	88,929	133,085	171,848	173,000	30.0%
Total	7,415,200	8,973,004	8,486,775	9,333,795	4.0%

• Reductions have been made to reflect elimination of the intangibles and inventory tax exemption revenue stream. Revenue has also been revised to reflect the conversion to fare-free and the resulting change in revenue flow from the partners.

• State operating assistance funds continue to be shown based on recent discussions with state transportation officials.

Departmental Base Budget Cost Estimates-Transit

Category	2001-02 Original Budget	2001-02 Revised Budget	2001-02 Estimated	2002-03 Requested	% increase (decrease) from Original Budget
Personnel	6,291,300	6,439,285	6,010,311	6,651,630	5.72%
Operations	2,083,496	2,099,308	2,026,352	2,092,797	0.44%
Capital	0	0	0	0	0
Total	8,374,796	8,538,593	8,036,663	8,744,427	4.41%

Key Issues

• Personnel costs have been revised to include a reduced dependency on overtime for operators coincident with filling of vacant jobs.

• Operational costs include modest increases in budgeted amounts for diesel, gasoline, and electricity.  Increases in operator wages reflect the adjusted level of service that took effect in January. Contributions to the General Fund have also been adjusted.

• An increased fleet size coupled with the challenge of hiring qualified mechanics will present on-going challenge.

Services Going Well

• Fare-free has been well received by the community. Initial figures indicate a 20 per cent ridership increase.

Departmental Revenue Estimates-Off Street Parking

Revenue Source	2000-01 Actual Revenue	2001-02 Budgeted Revenue	Estimated Revenue 2001-2002	Estimated Revenue 2002-2003	% increase (decrease) from Original Budget
Rosemary St. Garage	521,376	511,000	543,090	536,000	5.3%
Lot Revenues	548,261	532,500	553,824	545,500	4.8%
Tokens	13,068	9,000	12,544	12,000	33.3%
Meter Fines	46,370	47,000	39,000	42,000	(23.4)%
Other	21,048	3,500	11,522	0
Total	1,150,123	1,103,000	1,159,890	1,135,500	2.6%

Departmental Base Budget Cost Estimates – Off Street Parking

Category	2001-02 Original Budget	2001-02 Revised Budget	2001-02 Estimated	2002-03 Requested	% increase (decrease) from Original Budget
Personnel	298,646	314,830	304,799	317,766	6%
Operations	727,630	783,889	751,986	743,124	2%
Capital	22,500	22,500	53,644	34,450	53%
Total	1,048,776	1,121,219	1,110,429	1,095,340	4%

Departmental Revenue Estimates – On Street Parking

Revenue Source	2000-01 Actual Revenue	2001-02 Budgeted Revenue	Estimated 2001-2002 Revenue	Estimated Revenue 2002-2003	% increase (decrease) from Original Budget
Meters	234,636	220,000	229,155	235,000	6.8%
Tickets	438,539	395,000	383,783	400,000	1.9%
Misc.	16,152	11,500	12,989	13,000	42.9%
Total	689,327	626,500	625,928	648,000	2.5%

Departmental Base Budget Cost Estimates – On Street Parking

Category	2001-02 Original Budget	2001-02 Revised Budget	2001-02 Estimated	2002-03 Requested	% increase (decrease) from Original Budget
Personnel	225,374	225,374	211,266	246,650	9%
Operations	361,235	442,405	136,253	121,984	(66)%
Capital	0	0	0	0	0
Total	586,609	667,779	347,519	368,634	(37)%