Agenda - 04-17-1990 - Laserfiche WebLink

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these individuals is reported as system operating revenue. Payments for the allocated net cost for transit service come from internal University funds. Carrboro began purchasing transit service in FY 1977/78 with federal revenue sharing funds. In 1980, Carrboro voters approved a $.10 /$100 valuation ad- valorem property tax dedicated to funding transit services. The current levy in Carrboro is 3.4 cents. The projected FY 1990/91 Chapel Hill Transit operating budget, with total expenses of $4,287,419, is anticipated to be funded through $1,166,933 in operating revenue, $1,560,243 in Urban Mass Transportation Administration Section 9 funds (if available from the N.C. Governor's Allocation Fund), and $1,560,243 in local revenue (Table B -1) . Local contributions from the Town of Chapel Hill for capital and planning projects will come from the Transportation capital reserve fund balance. Tables B -2 and B -3 project anticipated Chapel Hill revenues and expenditures for FY 1991-1992 and FY 1992--93. The amount of Section 9 funds which will be available in the future to the cities in North Carolina in the Governor's- Allocation is uncertain. It appears that funding will be limited and will be distributed by the State based on FY 1988 operating deficits. Given the probability that there will not be sufficient federal funds to cover fifty percent of the operating deficit, the Transportation staff is looking at alternatives which will reduce the need for federal funding. The alternatives being considered include: increasing user fees to generate more operating revenue, decreasing costs of operating the system, eliminating unproductive service, and increasing local taxes and other revenues available to the transit system. A combination of measures will most likely be used to cover a shortfall in federal operating funds. Local support for transit within the Towns of Chapel Hill, Carrboro and the University continues to be strong with local financial resources available to draw. on to fund the operating deficit. As the availability of federal funds and the State's plans for allocating funds are clarified, the Town will develop more definitive plans for long range funding needs. Long -range forecasting of operating, capital and planning funding needs is done through several documents within the Town. Five year projections of funding needs are prepared annually for submission to the N.C.' Department of Transportation, Public Transportation Division. The Town also prepares an annual element to its Capital Improvement Program which includes all transit capital projects and forecasts additional capital needs for a five year period. This document is reviewed and approved by the Town Council. Based on the probability of limitations on federal funding, the five -year capital program was closely evaluated for areas that could save money. Several projects were moved out, including the 11