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Approve the Miscellaneous Budget Ordinance Amendment to Adjust Various Fund Budgets for FY 2022-23.
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Staff: |
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Amy Oland, Director |
Business Management Department |
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Matt Brinkley, Assistant Director |
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Overview: After the Council approves the annual budget, periodic changes require the Town to amend the current budget.
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Recommendation(s): |
That the Council:
• Enact the attached budget ordinance amendment to adjust the General Fund, Debt Fund, Parking Fund, Capital Improvement Fund, Grants Fund, Library Gift Fund, Transit Fund and Vehicle Maintenance Fund; and
• Enact the attached project ordinance amendments to adjust the Capital Project Ordinance Fund and the Transit Capital Grants Fund.
Key Issues:
• General Fund
Collaborative Outreach Program - Orange County established a Collaborative Outreach program (Sales Tax Article 46), making funds available for economic development programs that aid in job creation, drive economic growth, support existing businesses, recruit new businesses, and promote other activities such as innovation and entrepreneurial growth, agri-tourism and agriculture in Orange County. Orange County has allocated $38,022 in funding based on population for each county municipality. Chapel Hill uses the funds for various economic development projects, including planning, entrepreneur support, and marketing. Enactment of the attached budget ordinance amendment would recognize and appropriate the $38,022 in Article 46 funds from Orange County.
Visitor’s Bureau - The performance agreement between the Town of Chapel Hill and the Chapel Hill/Orange County Visitors Bureau states that the Town will pay the Visitors Bureau 50% of any occupancy tax revenues received greater than $1,000,000. In FY 2022, the Town received $1,297,315 in occupancy tax receipts. Fifty percent of $297,315, or $148,658, is therefore due to the Visitors Bureau. Enactment of the attached budget ordinance amendment would reflect the additional payment of $148,658 to be made to the Visitors Bureau from appropriated fund balance from the General Fund.
• Debt Fund & Parking Fund
In August 2021, the Town closed on the issuance of $39 million of limited obligation bonds (LOBS) for the East Rosemary Parking Deck project. The FY 2023 annual debt service for the LOBS was originally budgeted in the Parking Fund, but until the deck opens and generates revenue, the Debt Fund needs to cover the required principal and interest payment. Therefore, the total amount of debt service payments for FY 2023 in both the Debt Fund and Parking Fund have changed and need to be amended.
Enactment of the attached budget ordinance amendment will increase the Debt Fund debt service payment by $3,775,232 ($2,531,000 in principal and $1,244,232 in interest), reduce the transfer to the Parking Fund by $2,710,026, increase the transfer from the Parking Fund to the Debt Fund by $437,797, and increase the appropriation of fund balance by $627,409 to balance the Debt Fund.
Enactment of the attached budget ordinance amendment will reduce the Parking Fund debt service payment by $3,775,232 ($2,531,000 in principal and $1,244,232 in interest), reduce the transfer from the Debt Fund by $2,710,026, increase the transfer to the Debt Fund by $437,797, decrease UNC leased spaces budget by $1,000,000 to account for the delay in the opening of the East Rosemary Deck, and increase revenue projection for the Wallace Deck by $307,591 and 140 West Deck by $65,000.
• Capital Improvement Fund
The Merritt Mill Lane Reallocation project includes portions of both Chapel Hill and Carrboro. The Town of Chapel Hill contacted with HNTB for a traffic analysis and with Ramey Kemp for a pavement marking plan for the road. The Towns of Chapel Hill and Carrboro entered into a reimbursement agreement for the project stating that Carrboro will reimburse Chapel Hill for 1/3 of the costs associated with the project, or $6,165. The $6,165, once reimbursed, will be used for green paint and/or flexible delineators on Merritt Mill to compliment the new pavement markings once resurfaced in summer 2023. Enactment of the attached budget ordinance amendment would recognize and appropriate the $6,165 in reimbursement funds from Carrboro.
• Grants Fund
The original amount budgeted for the Connected Roads Plan and Policy work was $50,000. After reviewing proposals and negotiating with the selected firm, Stantec, staff determined that it was important to include one more series of public outreach and engagement than what was in the consultant’s initial scope of work. This additional cost was $5,000. Staff submitted an amendment request to the Durham-Chapel-Hill-Carrboro Metropolitan Planning Organization (DCHC MPO) for an additional $4,000 in federal funds, requiring a $1,000 local match, for the FY23 STBG-DA grant. Enactment of the attached budget ordinance amendment would recognize and allocate $4,000 in federal funds and $1,000 match from the General Fund for the project.
• Library Gift Fund
Rosemary Kirkpatrick Memorial gift - Multiple friends and family members have made individual donations in honor of Rosemary Kirkpatrick. Her family directed donors to send gifts in Rosemary’s name to be used for the purchase of a memorial bench and library materials. The bench will be placed outside Chapel Hill Public Library in Pritchard Park. Enactment of the attached budget ordinance amendment would recognize and appropriate $4,755 in donations for the memorial bench and library materials.
Lisa Price Memorial gift - The 2023 North Carolinians Against Gun Violence board would like the Town to accept a donation in honor of Lisa Price. Lisa co-founded NCGV in 1993. She also helped lead the Chapel Hill Public Library expansion capital campaign. The donation is for the purchase and installation of a memorial bench and a native red maple tree. The bench and tree are to be placed outside Chapel Hill Public Library in Pritchard Park. Enactment of the attached budget ordinance amendment would recognize and appropriate $3,000 in donations for the memorial bench and a tree.
• Vehicle Maintenance Fund
The costs for fleet maintenance in the current year are anticipated to exceed the budget allocation for FY 2023. The aging fleet along with the increased cost of parts and outsourcing repairs have contributed to the overall budget shortfall. End of year projections are that the Vehicle Maintenance Fund will need an additional $160,000 in order to adequately maintain the fleet. Enactment of the attached budget ordinance amendment appropriate $160,000 in Vehicle Maintenance Fund balance towards the cost of fleet maintenance.
• Capital Projects Ordinance Fund
In December 2017, the Town received $1,265,261 from the North Carolina Department of Transportation (NCDOT) as the first reimbursement for work completed on Phase I of the Ephesus-Fordham Road Improvement Project. In February 2018 the Town was reimbursed $195,961, an additional $465,863 was reimbursed in December 2020, and a final $170,013 was reimbursed in December 2022 towards the project. Enactment of the attached project ordinance amendment would recognize and appropriate the final $170,013 for the Ephesus-Fordham Project.
• Transit Capital Grants Fund
The Town has been awarded grants from NC Department of Environmental Quality (NCDEQ) and NC Department of Transportation (NCDOT) for the purchase of five electric buses. NCDOT funds are provided by the state’s Congestion Mitigation and Air Quality (CMAQ) grant program and totals $2,040,000. CMAQ is a federal program that funds transportation projects and programs in air quality nonattainment and maintenance areas to help achieve and maintain national standards for air quality pollutants. These funds originate with the Federal Highway Administration (FHWA) and are flexed to Transit through the Federal Transit Administration (FTA) under the United States Department of Transportation (USDOT). NCDEQ funds are provided by the state’s Volkswagen Settlement Funds and total $668,000. The current estimated cost of a battery electric bus is $1,050,000. A local share of $2,542,000 is required at this time for the project and should be funded by the Town’s Transit Capital Fund. Approval of the attached project ordinance amendment would recognize the $2,040,000 from NC Congestion Mitigation and Air Quality program and $668,000 from the NC Department of Environmental Quality and appropriate $5,250,000 for the purchase of electric buses.
Where is this item in its process?
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Attachments: |
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• Budget Ordinance |
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• Project Ordinance - Capital Projects Ordinance Fund |
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• Project Ordinance - Transit Capital Grants Fund |
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2022” (2023-4-19/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, 2022” as duly adopted on June 8, 2022, be and the same is hereby amended as follows:
ARTICLE I
ARTICLE II
This the 19th day of April, 2023.
AN ORDINANCE TO AMEND THE CAPITAL PROJECT ORDINANCE FOR VARIOUS CAPITAL PROJECTS (2023-4-19/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the capital project ordinance for various capital projects funded from a variety of sources is hereby amended to read as follows:
“SECTION I
The capital projects as authorized by the Town Council include various capital projects funded from grants, the Capital Improvements Program funds, and other miscellaneous sources of revenues for a variety of projects extending beyond one year.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby amended as follows:
SECTION IV
Amounts appropriated for capital projects are hereby amended as follows:
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the council informed of any unusual occurrences.
SECTION VI
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 19th day of April, 2023.
AN ORDINANCE TO AMEND A TRANSIT CAPITAL PROJECT ORDINANCE (2023-4-19/O-3)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the transit capital projects ordinance for various capital projects funded from a variety of sources is hereby amended to read as follows:
“SECTION I
Transit capital projects as authorized by the Town Council are capital projects funded from Federal Transit Administration (FTA) grants and grants from the State of North Carolina.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these transit capital projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby amended as follows:
SECTION IV
Amounts appropriated for capital projects are hereby amended as follows:
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the council informed of any unusual occurrences.
SECTION VI
Funds may be advanced from General funds for the purpose of making payments as due. Reimbursement requests should be made to FTA in an orderly and timely manner.
SECTION VII
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 19th day of April, 2023.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
By enacting the budget ordinance amendment, the Council adjusts the General Fund, Debt Fund, Parking Fund, Capital Improvement Fund, Grants Fund, Library Gift Fund, Transit Fund, and Vehicle Maintenance Fund. By enacting the project ordinance amendments, the Council adjusts the Capital Projects Ordinance Fund and the Transit Capital Grants Fund.