Trustees adopt FY2027 operating and capital budgets after amendment limiting finance officer reallocations

The board of the new Charlotte-area transit authority unanimously moved to adopt the FY2027 transit operating funds, debt service, capital project funds and the fiscal-year 2027 budget ordinance after trustees approved an amendment tightening staff authority over budget reallocations.

Chair David Howard introduced the item as the final step in a process that included committee review and a public hearing. Trustees raised concern that several sections of the ordinance granted the finance officer broad authority to move line-item allocations inside the general ledger. Trustee Anthony Lindsay argued that those provisions could allow material changes without board approval and proposed amending the ordinance so reallocation of appropriations would require board confirmation and that the chief financial officer — not a generic administrative designee — be designated as the alternate signer on checks in the CEO’s absence.

Staff and interim operations leaders told trustees the provisions mirrored standard municipal budget language that permits internal ledger adjustments when there is no increase in total appropriations and that the flexibility is necessary for day-to-day operations. They emphasized the clauses don’t change overall program totals and that quarterly reporting, internal controls and annual audits provide oversight.

After discussion, the board adopted the amendment restricting certain reallocation authorities and clarifying signatory roles and then voted to adopt the FY2027 ordinance. The chair said the changes struck a balance between operational flexibility for staff and the board’s fiduciary responsibility to approve material budget changes. The board asked staff to provide a consolidated report on the $4.3 million in transition expenditures at the next meeting for fuller transparency.