Title
Resolution to Amend the Fiscal Year 2026 Council Approved Budget to Appropriate $519,826 from Assigned Fund Balance - Hampton Roads Transit to Organizational Support - HRT
Purpose
PURPOSE/BACKGROUND:
The City of Hampton provides annual funding to support its proportional share of Hampton Roads Transit (HRT) operations. Recently, member jurisdictions were offered the option to receive accumulated service reliability credits, also known as true-up payments, either as a direct cash disbursement or as an offset against increased annual budgeted contributions. These true-up payments occur when a locality, in effect, overpays for the service that is provided, either due to higher non-city revenues, lower than budgeted costs for providing the service, or a lower level of service being provided. In this case, the true-up is mainly due to the lower level of service provided during the COVID pandemic due to service disruptions caused by the pandemic and the lack of drivers available to provide full service. The City of Hampton elected to receive a cash payment totaling $909,141, representing three years of true-up payments owed to the City. It was deposited to Assigned Fund Balance - Hampton Roads Transit.
Initially, HRT offered to use the true-up as a credit towards Hampton's FY26 contribution, but then offered the cash refund after Council adopted the FY26 Budget. Based on taking the credit as an upfront payment, the City of Hampton’s FY2026 contribution increased by $259,426. The City is also responsible for a $260,400 local match requirement for the Transit Ridership Incentive Program (TRIP) Grant, which will fund a one-year Microtransit Zone pilot in Hampton. This resolution proposes to use the funds received from that three-year true-up payment as follows:
1. Offset the $259,426 increase in the City’s FY2026 HRT contribution;
2. Satisfy the required local match of $260,400;
3. Retain $389,315 in Assigned Fund Balance - HRT for future transit-related needs.
Discussion:
City Council approval is required to appropriate funds from the Assigned Fund Balance - HRT to Organizational Support - HRT.
Impact:
Continued operation of Hampton Roads Transit.
Recommendation:
Rec
Approve the Resolution
Body
WHEREAS, the City of Hampton provides annual funding to support its proportional share of Hampton Roads Transit (HRT) operations;
WHEREAS, recently, HRT member jurisdictions were offered the option to receive accumulated service reliability credits, also known as true-up payments, either as a direct cash disbursement or as an offset against increased annual budgeted contributions;
WHEREAS, these true-up payments occur when a locality, in effect, overpays for the service that is provided, either due to higher non-city revenues, lower than budgeted costs for providing the service, or a lower level of service being provided;
WHEREAS, in this case, the true-up is mainly due to the lower level of service provided during the COVID pandemic due to service disruptions caused by the pandemic and the lack of drivers available to provide full service;
WHEREAS, initially, HRT offered to use the true-up as a credit towards Hampton's Fiscal Year 2026 contribution, but then offered the cash refund after Council adopted the Fiscal Year 2026 Budget;
WHEREAS, the City of Hampton elected to receive a cash payment totaling $909,141, representing three years of true-up payments owed to the City with the intent of appropriating sufficient funds from this amount to cover the increased Fiscal Year 2026 contribution to HRT;
WHEREAS, based on taking the credit as an upfront payment, the City of Hampton’s FY2026 contribution increased by $259,426;
WHEREAS, the City is also responsible for a $260,400 local match requirement for the Transit Ridership Incentive Program (TRIP) Grant, which will fund a one-year Microtransit Zone pilot in Hampton;
WHEREAS, these funding needs will be met through appropriating $519,826 of the $909,141 true-up payment the City has received from HRT; and
WHEREAS, the $389,315 remaining balance will be retained in the Assigned Fund Balance - Hampton Roads Transit (HRT) account for future transit related needs.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hampton, Virginia hereby amends its Fiscal Year 2026 Council Approved Budget to appropriate $519,826 from Assigned Fund Balance - Hampton Roads Transit (HRT) to Organizational Support - HRT for the purposes stated herein; and
BE IT FURTHER RESOLVED, that the City Council authorizes the City Manager, or her designee, to take any and all actions necessary for the implementation of the intent of this resolution.