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Wake Transit FY 24 Recommended Work Plan and Project Agreements
Shelby Powell, CAMPO Staff and Steven Schlossberg, GoTriangle Staff
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On April 19, 2023, the TPAC recommended approval of the Recommended FY 24 Wake Transit Work Plan to the governing boards. However, on April 21, CAMPO received communication from GoTriangle that the organization intends to no longer contribute 50% of the Regional Transit Authority Vehicle Rental Tax (as defined in NCGS SS 105-550 through NCGS SS 105-556) to the Orange, Wake or Durham County Transit Plan programs for the FY 24 budget, with an effective date of July 21, 2023. This action would remove approximately $4.5 million from the Wake Transit FY 24 Work Plan budget; that funding has been a recurring annual allocation in the Wake Transit Annual Work Plan since its inception.
Due to the change in revenues, the Recommended FY 24 Wake Transit Work Plan was revised, and will be considered for a revised recommendation by the TPAC at its May 17, 2023 meeting. The revised model assumptions for the FY 24 Work Plan show a new low point of capital liquidity as being 18.3% lower (or $14.4 million lower) than anticipated in the originally-recommended FY 24 Work Plan. The Wake Transit FY 24 Work Plan was revised to transfer additional funds from the Wake Capital Reserve Fund Balance in the amount of $4,516,296 to mitigate the vehicle rental tax revenue removed from the Work Plan for FY 24. It is anticipated that this action will provide a balanced budget for the FY 24 Wake Transit Work Plan and allow all programmed projects in the Recommended FY 24 Wake Transit Work Plan to move forward.
However, given the change in the recommended plan, the public review period and public hearing schedule has been adjusted. The recommended Wake Transit FY 24 Work Plan was released for public comment from May 18 - June 1, and a Public Hearing will be held at the June 21, 2023 Executive Board Meeting. The revised Recommended FY 24 Work Plan was posted for public notice on the CAMPO website: <https://www.campo-nc.us/>. The TCC recommended adoption of the FY 24 Work Plan at its June 1 meeting. The CAMPO Executive Board will be asked to consider adopting the FY 24 Work Plan at its June 21 meeting following the Public Hearing.
This adjustment in revenues for FY 24 is intended to mitigate the impacts of this financial decision for FY 24 only; the Wake Transit Governance ILA parties will continue to evaluate and discuss the implications of this action as the Wake Transit Vision Plan update begins, as well as through the development of future Wake Transit Annual Work Plans and updates to the adopted financial model.
Also included in this item is the project agreement groupings and expected deliverables for FY 24 Work Plan-funded projects. These project groupings will be established through agreements between the Tax District and the applicable project sponsor.
Requested Action: Action Conduct Public Hearing for the Recommended FY 24 Wake Transit Work Plan. Board Action: 1) Approve the FY 2024 Recommended Wake Transit Work Plan and its corresponding project agreement structure and 2) Authorize the Executive Director to execute all FY 2024 Work Plan project-level agreements to which CAMPO is a party.