TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Randy Hume, Transit Director
Tracey Broyles, Budget and Evaluation Director
DATE: October 22, 2018
RE:
Title
Budget Ordinance Amendment 2019-4 to Update the Fee Schedule to Adjust Fees for Purchase of Transit Passes by Cumberland County Court Programs and the Fayetteville Police Department Homeless Prevention Program
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal IV: Fayetteville will be a highly desirable place to live, work and recreate with thriving neighborhoods and a high quality of life for all residents.
Objective D: To develop and maintain public transportation investments with high quality transit and airport services.
Executive Summary:
Council is asked to adopt Budget Ordinance Amendment (BOA) 2019-4 to authorize an update of the fee schedule, which is set with the annual operating budget ordinance.
The update would increase the purchase cost for One Day Passes by Cumberland County Court Programs and the Fayetteville Police Department Homeless Prevention Program from $0.25 per one day pass to $0.40 per one day pass. This increase is needed to fund increased costs of producing the passes.
Background:
Annually with the adoption of the operating budget ordinance, the Council adopts the schedule which establishes fees for various city services, including transit fares. The current fee schedule for Transit is attached for reference purposes.
Council has authorized deep discounts on pass sales for the Police Department Homeless Prevention Project and Cumberland County Court Programs. The current $0.25 rate was set in March 2014 for the Police Homeless Project and the Sobriety Court and covered Transit’s cost for producing and distributing these passes. This reduced rate was extended to all Cumberland County Courts in 2015. Currently, these specific programs may purchase One Day Passes at $0.25 and a Rolling 30 Day Pass at $20.
Transit Department staff has analyzed the cost of printing One Day Passes, and has determined that it is cost prohibitive to continue to sell passes at the current discounted rate to Cumberland County Court Programs and the Police Department Homeless Prevention Project. Staff is requesting that the rate for the purchase of One Day Passes for these specific programs be adjusted to $0.40 per One Day Pass to offset the cost of production.
No change is requested to the Rolling 30 Day Pass rate of $20 for these programs.
Issues/Analysis:
This fee increase was included with other Transit fare adjustments in the Recommended Budget for Fiscal Year 2019. Council chose not to implement the fare increases with the adoption of the budget. This fee adjustment was omitted from the fee schedule submitted for adoption in error, as this fee adjustment was to offset increased printing costs and was not related to the fare adjustments.
Budget Impact:
The proposed fee increase will help to offset the increased cost of producing the passes.
Options:
1) Adopt BOA 2019-4 to update the fee schedule as proposed.
2) Do not adopt BOA 2019-4 to update the fee schedule.
Recommended Action:
Staff recommends that Council move to approve Budget Ordinance Amendment 2019-4 to modify the fee schedule as proposed.
Attachments:
Budget Ordinance Amendment 2019-4
Current FY 2019 Transit Fee Schedule