Agenda - 04-17-1990 - Laserfiche WebLink

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10 Chapel Hill Transit relies on a combination of operating and non - operating revenue to fund transit operations. Operating revenue from farebox and pass sales has increased approximately 60% during the five year period from 1984 -85 to 1988 -89, from $661,984 to $1,078,344. Non - operating revenue include ad- valorem taxes dedicated to transit service in Chapel Hill and Carrboro, funds from the University of North Carolina and federal transit operating assistance. Attachment 2 compares the transit system's expenditures and revenues over the past several years and provides the revenue cost ratio between total expenditures and operating revenue. In FY 1988 -89 the Town recovered 31% of expenditures from operating revenues. This represented a slight decrease from the 34% recovery level of the previous year. There was a significant increase in new service during FY 1988 -89. The overall productivity of transit service will continue to be evaluated and route changes or modifications will be proposed to maximize efficiency. There is strong local support for the Chapel Hill Transit system. The Town's local share comes from a special ad- valorem property tax, approved by referendum in 1974, which allows up to $.10 /$100 valuation of property for support of transit operations. The current levy is 3.0 cents, although this assessment could be raised to the full 10 cents if conditions warranted. There is no expiration on this taxing authority. The Transportation Fund had a fund balance amounting to $501,159 for the year ending June 30, 1988. A significant amount of this balance, $298,000, was appropriated to match the current year's (FY 1989 -90) transit capital program. After appropriating funds for this capital match, the fund balance for the year ending June 30, 1989 was reduced to $440,000. This will provide a cash -flow reserve for routine operating costs and could be used as local match for future capital grants. The University of North Carolina and Town of Carrboro also provide local funds for the operation of the transit system. The amount paid by each is determined annually by a formula which allocates system -wide net costs by jurisdiction of boardings and the type of fare paid. Contracts are negotiated annually with each jurisdiction and reflect any changes in service requested by that jurisdiction. "Memorandums of Understanding" were signed by the University in 1985 and Carrboro in 1987 with the Town of Chapel Hill, expressing their commitment to continued support of the transit system and indicating their willingness to provide funding for future transit services. These memorandums cover a five -year period. The University sells passes to faculty, staff and students under their contract. Revenues from the sale of passes to