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Home My WebLink AboutAgenda - 09-17-2024; 8-g - Orange County Annual Transit Work Program Reappropriation 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 17, 2024 Action Agenda Item No. 8-g SUBJECT: Orange County Annual Transit Work Program Reappropriation DEPARTMENT: Orange County Transportation Services (OCTS) ATTACHMENT(S): INFORMATION CONTACT: 1. Annual Work Program Reappropriation Nishith Trivedi, Transportation Director, 919-245-2007 PURPOSE: To approve the reappropriation of Vehicle Rental Tax to the Fiscal Year 2025 Orange County Annual Transit Work Program (AWP) fund balance. BACKGROUND: On August 8, 2024, the GoTriangle Board of Trustees approved a portion of the Article 50 - Vehicle Rental Tax (VRT) to be returned to each of the counties' Annual Work Programs for Fiscal Year 2025 (Attachment 1). In Orange County, this amounts to $390,353 in revenue added to the annual fund balance, and accounts for half of the original 50% VRT as previously approved in prior AWPs. The return of funds requires the FY 2025 Annual Work Program to be reapproved with the additional revenue (Attachment 2). The Orange Staff Work Group was informed of GoTriangle's decision and subsequent impact at its August 21, 2024 meeting. FINANCIAL IMPACT: The FY 2025 AWP receives $390,353 in Vehicle Rental Tax as approved by GoTriangle Board of Trustees. Revenue is part of the annual fund balance. Funds are given to transit agencies in Orange County per projects approved in the Transit Plan, AWP and through quarterly reimbursement requests. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 4: MULTI-MODAL TRANSPORTATION OBJECTIVE 2. Increase community awareness of all modes of transportation including transit, bike and pedestrian, vehicle, and all other modes. • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 2. Expand access to quality, affordable healthcare services. (e.g., Crisis Diversion facility, Medicaid expansion, crisis response, healthy living campaign). RECOMMENDATION(S): The Manager recommends that the Board approve reappropriation of Vehicle Rental Tax to the Fiscal Year 2025 Orange County Annual Transit Work Program (AWP) fund balance. Page 25 of 31 2 AGENDA ACTION ITEM GO Triangle Connecting all points of the Triangle Submitted by: Jennifer Hayden, Finance and Administrative Services Meeting date: August 7, 2024 SUBJECT: FY2025 GoTriangle Budget Approval Strategic Objective or Initiative Supported Implement GoTriangle's Financial Plan Staff Recommendation: Consider the revised proposed FY2025 GoTriangle budget ordinances for adoption, which includes a $3,087,270 appropriation from fund balance to cover the total contribution of vehicle rental taxes (VRT) to Durham, Orange and Wake Transit Plans. Item Summary The first draft FY2025 GoTriangle budget was presented at the April 17, 2024 Board Workshop. Since that time, subsequent changes to that draft were presented to the Audit and Finance Committee on May 1, 2024 and June 5, 2024 with the final version going to the Board on June 17, 2024. Due to the inclusion of a portion of GoTriangle's vehicle rental taxes in both the draft FY25 GoTriangle budget and Wake Transit Work Plan, the Board voted for an interim budget until this issue could be resolved. On July 8, 2024, the Conference Committee approved a motion that, subject to approval of the GoTriangle and CAMPO governing boards, GoTriangle will allocate $2.528 million of its vehicle rental tax to the Wake Transit Plan in FY25 with the understanding that GoTriangle, CAMPO and Wake County would select a mediator to resolve all unresolved Significant Concerns raised between the parties no later than April 1, 2025. In addition to the VRT contribution to the Wake Transit Plan, the draft FY25 GoTriangle budget also includes $799,214 and $390,393 contributions of VRT to the draft FY25 Durham and Orange Transit work plans respectively. In addition to the proposed FY2025 GoTriangle budget ordinances, the final budget assumptions for GoTriangle and a list of GoTriangle's future needs that are not included in the proposed budget are attached. Financial Impact The proposed FY2025 GoTriangle budget includes $109,986,326 revenues and $113,073,596 expenses. The total financial impact to GoTriangle is a fund balance reduction of$3,087,270. Attachments • FY25 GoTriangle Budget Ordinances 2024-XXXX • FY25 GoTriangle Budget Assumptions • FY25 GoTriangle Future Needs List Page 26 of 31 3 2024 003x GOTRIANGLE FY2025 BUDGET ORDINANCE BE IT ORDAINED by the Research Triangle Regional Public Transportation Authority Board of Trustees: Section 1. It is estimated that the following revenues will be available in the General Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Vehicle Rental Tax $ 11,153,036 Vehicle Registration Tax 6,897,938 Undesignated Fund Balance Appropriated 3,087,270 Investment Earnings 1,259,000 Prior Year Carryforward 1,222,357 Rental Income 308,000 Durham allocation 367,802 Orange allocation 137,474 Wake allocation 379,263 Indirect Cost Credits 1,866,532 Total $ 26,678,672 Section 2. The following amounts hereby are appropriated in the General Fund for the management of the Authority and its activities for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Board of Trustees $ 239,261 Executive Office 832,422 Safety & Security 1,495,561 Human Resources 1,325,728 Communications & Public Relations 1,152,952 Legal 1,176,194 Real Estate 892,676 Capital Development 681,699 Finance 1,606,517 Information Technology 1,340,463 Administration 504,714 Diversity Management 431,710 Unemployment Claims 50,000 Plaza 600,600 Operating Transfer to Ridesharing Fund 902,256 Operating Transfer to Regional Bus Service Fund 11,503,327 Operating Transfer to Regional Bus Capital Fund 1,779,812 Operating Transfer to Advanced Technology Fund 162,780 Total $26,678,672 Page 27 of 31 4 Section 3. It is estimated that the following revenues will be available in the Ridesharing Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Local Grant Revenue $ 627,858 Reimbursements from Others 927,121 Transfer from General Fund 902,256 Total $2,457,235 Section 4.The following amounts hereby are appropriated in the Ridesharing Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Regional Services—Planning & Engagement $ 575,750 Sustainable Travel Services 655,494 Regional Call Center 1,225,991 Total $2,457,235 Section 5. It is estimated that the following revenues will be available in the Regional Bus Service Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Federal Grant Revenue $ 2,400,000 State Grant Revenue 2,800,888 GoPass 875,027 Bus Fares 730,131 Transit Service Revenue 8,222,805 Transit Service Revenue—Paratransit 842,788 Bus Accident Damage Reimbursement 40,000 Paratransit Service Revenue 700,000 Operating Transfer from General Fund 11,503,327 Total $28,114,078 Section 6.The following amounts hereby are appropriated in the Regional Bus Service Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Bus supervision $ 2,912,980 Bus operations 14,725,398 Bus maintenance 5,578,664 Vanpool 358,169 Paratransit services 4,538,867 Total $28,114,078 Section 7. Copies of this budget ordinance shall be furnished to the Clerk to the Board of Trustees and to the Budget Officer of this Authority to be kept on file for their direction in the disbursement of funds. ATTEST: ADOPTED THIS THE 7T" DAY OF AUGUST 2024. Michelle C. Dawson, Clerk to the Board Brenda Howerton, Board of Trustees Chair FY2025 GoTriangle Budget Ordinance 2024 003x 2 Page 28 of 31 5 2024 003x GOTRIANGLE FY2025 BUDGET ORDINANCE REGIONAL BUS CAPITAL PROJECT FUND BE IT ORDAINED by the Research Triangle Regional Public Transportation Authority Board of Trustees: Section 1. It is estimated that the following revenues will be available in the Regional Bus Capital Project Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Federal Grant Revenues $ 30,428,676 Reimbursements from Others 37,708,498 Operating Transfer from General Fund 1,779,812 Total $ 69,916,986 Section 2. The following amounts hereby are appropriated in the Regional Bus Capital Project Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Capital Outlay $ 69,916,986 Total $ 69,916,986 Section 3. Copies of this budget ordinance shall be furnished to the Clerk to the Board of Trustees and to the Budget Officer of this Authority to be kept on file for their direction in the disbursement of funds. ATTEST: ADOPTED THIS THE 7T" DAY OF AUGUST 2024. Michelle C. Dawson, Clerk to the Board Brenda Howerton, Board of Trustees Chair Page 29 of 31 6 2024 003x GOTRIANGLE FY2025 BUDGET ORDINANCE ADVANCED TECHNOLOGY PROJECT FUND BE IT ORDAINED by the Research Triangle Regional Public Transportation Authority Board of Trustees: Section 1. It is estimated that the following revenues will be available in the Advanced Technology Project Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: State Grant Revenues $ 49,320 Reimbursements from Others 42,700 Operating Transfer from General Fund 162,780 Total $ 254,800 Section 2. The following amounts hereby are appropriated in the Advanced Technology Project Fund for the fiscal year beginning July 1, 2024, and ending June 30, 2025: Capital Outlay $ 254,800 Total $ 254,800 Section 3. Copies of this budget ordinance shall be furnished to the Clerk to the Board of Trustees and to the Budget Officer of this Authority to be kept on file for their direction in the disbursement of funds. ATTEST: ADOPTED THIS THE 7T" DAY OF AUGUST 2024. Michelle C. Dawson, Clerk to the Board Brenda Howerton, Board of Trustees Chair Page 30 of 31 7 01 Tria►-a qjle FY25 GoTriangle Budget Assumptions Total GoTriangle Operating Revenue and Expenses Operating Revenue - $42.9M (FY24 - $41.1 M) Reduced vehicle rental tax by $3.7M Appropriating $3.1 M from Fund Balance Operating Expenses - $42.9M (FY24 - $42.6M) Operating Revenues Vehicle Rental Tax - $11.2M (FY24 - $13.7M) $5 Vehicle Registration Tax - $6.9M (2% > FY24 - $6.9M) Federal Grant Funding - $2.4M (FY24 - $1.6M) SMAP Funding - $2.8M (FY24 - $2.8M) Transit Service Revenue - $9.1 M (FY24 - $7.9M) Indirect Costs - $2.8M (FY24 - $2.3M) Miscellaneous - $2.5M (FY24 - $2.4M) Return to Fares and GoPass - $2.3M (suspended in FY20) Fares - $730K GoPass - $875K Paratransit - $700K Operating Expenses Headcount - 304 FTEs (FY24 - 285 FTEs) Includes Durham, Orange and Wake Transit funded positions Salaries and Benefits Includes new competitive pay structure for Transit Operations Average Merit - 3.5% (FY24 - 3.5%) 7% increase for FY25 budget for employee healthcare Bus Operations Directly operated revenue hours - 136,607 (FY24 - 131,307) Cost per hour - $173 (FY24 - $161) Contracted Services Hours - 7,951 (FY24 - 9,899) Total GoTriangle Capital Revenue and Expenditures Capital Revenue - $70.2M (FY24 - $33.OM) Capital Expenditures - $70.2M (FY24 - $35.7M) Page 31 of 31 8 Triangle Future Needs and Opportunities Not Included in Current Proposed Budget Service Reliability and State of Good Repair § Fully funding fixed-route and paratransit vehicle replacement program to reduce fleet age to align with industry best practice § Fleet replacement program for future fiscal years New/Innovative Programs § Expanded discount or free fare programs § Increased fleet electrification § Microtransit and on-demand program expansion § Enhanced connections to RDU airport Improving Frequency § 30-minute Sunday service § 15-minute service on core routes § Conversion of peak-only routes to all-day routes with weekend service Expanding Coverage § New routes serving destinations within existing territory (e.g. US 70 corridor) § Connections to Johnston, Chatham, etc. Other § Computer systems improvements § Deloitte recommendations 9 PROJECTED '/z Cent Sales Tax $11,500,000 Vehicle Rental Tax $390,353 $3 Registration Fee $363,596 $7 Registration Fee $843,646 TOTAL $13,097,595 ADOPTED Bus Rapid Transit $4,000,000 Capital Planning $175,000 Transit Infrastructure $665,000 Vehicle Acquisition $426,351 TOTALI $5,266,351 ADOPTED OPERATING Transit Plan Administration $826,751 Transit Operations $5,241,825 Tax District Administration $329,284 TOTAL $6,397,860 ORANGE FUND BALANCE PROJECTED Fund Balance projected at end of FY 2024 —$11,000,000 Proposed FY 25 Fund Balance Transfer $1,433,384 TOTAL $12,433,384 This adopted work plan designates funding to four (4) agencies in FY25: Chapel Hill/CHT, DCHC MPO, GoTriangle, and Orange County/OPT. Programmed expenditures by agency are shown below: ADOPTED Chapel Hill/CHT $7,069,936 Durham-Chapel Hill-Carrboro MPO $40,801 GoTriangle $3,207,484 Orange County/OPT $1,345,989 TOTALI $11,664,211 10 FY25 Triangle Transit Tax District: Orange County e, .1 MENTS Revenues Tax District Revenues Article 43 Half-Cent Sales and Use Tax $ 11,500,000 Article 50 Five-Percent Vehicle Rental Tax $ 390,353 Article 51 Three-Dollar Increase to Regional Vehicle Registration Fee $ 363,596 Article 52 Seven-Dollar County Vehicle Registration Fee $ 843,646 Total Revenues $ 13,097,595 Expenditures Tax District Administration Staff Costs $ 196,800 Support Services $ 132,484 Transit Plan Administration Chapel Hill/CHT $ 150,000 DCHC MPO $ 40,801 GoTriangle $ 573,323 Orange County/OPT $ 62,628 Transit Operations Chapel Hill/CHT $ 2,560,252 GoTriangle $ 1,398,211 Orange County/OPT $ 1,283,362 Total FY25 Operating Allocation $ 6,397,860 Capital Planning Chapel Hill/CHT $ 150,000 GoTriangle $ 25,000 BRT Chapel Hill/CHT $ 4,000,000 Transit Infrastructure GoTriangle $ 665,000 Vehicle Acquisition Chapel Hill/CHT $ 209,684 GoTriangle $ 216,667 Total FY25 Capital Allocation $ 5,266,351 Allocation To Fund balance $ 1,433,384 Total Programmed Expenditures $ 13,097,595 Revenues over Expenditures $ - FY25 Orange County Transit Plan: Operating 11 Orange County Orange County 10 Total Orange County Transit Tax District Chapel Hill CHT DCHC MPO GoTriangle OPT Transit Plan:Operating Operating Revenues Tax District Revenues Article 43 Half-Cent Sales and Use Tax $ 4,800,265 $ 4,800,265 Article 50 Five-Percent Vehicle Rental Tax $ 390,353 $ 390,353 Article 51 Three-Dollar Increase to Regional Vehicle Registration Fee $ 363,596 $ 363,596 Article 52 Seven-Dollar County Vehicle Registration Fee $ 843,646 $ 843,646 Allocations from Tax District Revenues to Agencies Transit Plan Administration $ 150,000 $ 40,801 $ 573,323 $ 62,628 Transit Operations $ 2,560,252 $ - $ 1,398,211 $ 1,283,362 Total Revenues $ 6,397,860 $ 2,710,252 $ 40,801 $ 1,971,534 $ 1,345,989 $ 6,397,860 Expenditures Tax District Administration Tax District Administration-Financial Oversight Staff $ 196,800 $ - $ - $ - $ - $ 196,800 Tax District Administration-Financial Oversight-Support Services(0) $ 79,322 $ $ $ $ $ 79,322 Tax District Administration-Audit Services $ 8,405 $ $ $ $ $ 8,405 Tax District Administration-Financial Services $ 44,757 $ $ $ $ $ 44,757 Transit Plan Administration Transit Plan Administration-Program Management Staff $ - $ $ $ 26,266 $ $ 26,266 Transit Plan Administration-Project Implementation Staff $ - $ $ $ 177,871 $ $ 177,871 TPA-Transit Planning -Support Services $ $ $ $ 64,975 $ $ 64,975 TPA-Legal and Real Estate-Support Staff $ $ $ $ 123,714 $ $ 123,714 TPA-Marketing,Communication and PE-Support Staff $ $ $ $ 54,843 $ $ 54,843 TPA-Marketing,Communication and PE-Support Services $ $ $ $ 33,200 $ $ 33,200 TPA-Regional Technology and Administration-Support Staff $ $ $ $ 80,268 $ $ 80,268 Customer Surveys $ $ $ $ 12,187 $ $ 12,187 Orange County Staff Working Group Participation $ $ $ 40,801 $ - $ $ 40,801 Transit Plan Administration(SWG Administrator) $ $ $ - $ $ 62,628 $ 62,628 Planner I(Transit Planning Support Staff) $ $ 90,000 $ $ $ - $ 90,000 Bus Stop Amenities Technician(Project Implementation Staff) $ $ 60,000 $ $ $ $ 60,000 Transit Operations Route 800 Improvements $ $ - $ $ 552,997 $ $ 552,997 Route 400 Improvements $ $ $ $ 439,253 $ $ 439,253 Route ODX $ $ $ $ 225,795 $ $ 225,795 Route CRX Improvements $ $ $ $ 77,732 $ $ 77,732 Paratransit expansion $ $ $ $ 24,528 $ $ 24,528 Youth Gopass $ $ $ $ 18,596 $ $ 18,596 Fare Collection Improvements(0) $ $ $ $ 19,962 $ $ 19,962 Low Income Fare Pass $ $ $ $ 39,348 $ $ 39,348 Service Expansion $ $ 1,784,916 $ $ - $ $ 1,784,916 Increased Cost of Existing Services $ $ 775,336 $ $ $ $ 775,336 Continuation of Transit Services Fixed Route $ $ - $ $ $ 155,981 $ 155,981 Continuation of Transit Services Rural Route $ $ $ $ $ 364,672 $ 364,672 Increase Cost of Existing Services(ICES) $ $ $ $ $ 39,772 $ 39,772 Hillsborough Circulator Expansion $ $ $ $ $ 370,240 $ 370,240 OPT Mobility on Demand $ $ $ $ $ 352,696 $ 352,696 Allocations from Tax District Revenues to Agencies Transit Plan Administration $ 826,751 Transit Operations $ 5,241,825 Total Expenditures $ 6,397,860 $ 2,710,252 $ 40,801 $ 1,683,069 $ 1,345,989 $ 6,397,860 Revenues over Expenditures $ $ - $ - $ - $ - $ 12 FY25 Orange County Transit Plan: Capital • Orange County Chapel Hill/CHT GoTriangle Tax District Capital Transit Plan:Capital Revenues Tax District Revenues Article 43 1/2 Cent Local Option Sales Tax $ 6,699,735 $ 6,699,735 Allocations from Tax District Revenues to Agencies Capital Planning $ 150,000 $ 25,000 Bus Rapid Transit(BRT) $ 4,000,000 $ - Transit Infrastructure $ - $ 665,000 Vehicle Acquisitions $ 209,684 $ 216,667 Total Revenues $ 6,699,735 $ 4,359,684 $ 906,667 $ 6,699,735 Expenditures Capital Planning Chapel Hill Transit Short Range Transit Plan Update $ - $ 150,000 $ - $ 150,000 TPA-Regional Technology Plan Update $ $ 25,000 $ 25,000 Bus Rapid Transit(BRT) North South BRT Supplemental $ $ 4,000,000 $ - $ 4,000,000 Transit Infrastructure New Regional Transit Facility(Orange County share) $ $ - $ 140,000 $ 140,000 Regional Fleet and Facilties Study Implementation-Nelson Road $ $ - $ 525,000 $ 525,000 Vehicle Acquisitions Vehicle acquisition and replacement $ $ - $ 216,667 $ 216,667 Midlife Repower for FY18 and FY20 Vehicle Purchases $ $ 209,684 $ - $ 209,684 Allocations from Tax District Revenues to Agencies Capital Planning $ 175,000 Bus Rapid Transit(BRT) $ 4,000,000 Transit Infrastructure $ 665,000 Vehicle Acquisitions $ 426,351 Allocation To Fund balance $ 1,433,384 $ 1,433,384 Total Expenditures $ 6,699,735 $ 4,359,684 $ 906,667 $ 6,699,735 Revenues over Expenditures 1 $ - $ - $ - $ -