Fiscal Note
This resolution would increase budgeted Transit expenses by $52,606 associated with proposed service changes. These additional expenses would be funded by the application of Metro's reserve funds, thus resulting in no net levy impact. At the beginning of 2008, Metro had total reserves of $733,950. (Please see attached documents: Cost Estimate for Revised Service Changes and Contingency Est 5.28.08 for details.)
However, it should be noted that increased and rising diesel fuel prices are projected to result in Metro cost-overruns of perhaps as much as $1,000,000 in the current year, a very significant cost overrun that Metro will not be able to mitigate via expense reductions elsewhere in its budget. The precise magnitude of Metro's 2008 operating budget deficit won't be known until later this year, but it is likely that all remaining Transit fund reserves, as well as additional City levy support, will be required to fund Metro operations by the end of this year.
Title
SUBSTITUTE - Authorizing Metro Transit to amend its 2008 Operating Budget to increase expenditures by $78,606 $52,606 funded with Transit reserves in order to support urgently needed route and schedule changes.
Body
PREAMBLE
Metro Transit has proposed a number of service changes that are necessary in order to correct some issues with routes in the system. Over the years, growth on some routes along with schedule tightening and bids for efficiency have resulted in on-time problems and overcrowding. In order to alleviate the worst of these problems, Metro, as approved by the Transit and Parking Commission, is making changes to the routes most in need.
In addition, Route 13 has been partly supported by funding from investment partner the Town of Madison in the past. In making their budget decisions for service this year, the Town of Madison only allocated $85,000 of the $111,000 needed to support their service. This has left a shortfall of $26,000. Metro Transit staff pre...
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