City Council Regular Meeting
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Consent Agenda   Item #: D.
CARES Act Funds for Mass Transit
City Council is requested to approve an Ordinance to amend the Fiscal Year 2020 Budget Appropriation Ordinance by increasing revenue to cover eligible operating expenses, net fare revenues, for mass transit operating activities through the receipt of CARES Act funds.
The Commonwealth of Virginia was apportioned $51,377,174 in Section 5311 CARES Act funding for rural transit systems in Virginia. On April 21, 2020, the Commonwealth Transportation Board approved the allocation of CARES Act funds to Virginia transit systems and the City of Danville was allocated $2,299,879. However, thirty-five percent (35%) of the total apportionment amount will be held in reserve by the Commonwealth of Virginia for future awards and a supplemental allocation to the City of Danville is possible.
Funds available under the CARES Act can be used for all eligible operating expenses net fare revenues that occur on or after January 20, 2020. Eligible operating expenses are those costs necessary to operate, maintain and manage a public transportation system less depreciation charges. According to the Virginia Department of Rail and Public Transportation, CARES Act funding should be used to help offset changes in available state and local funding due to the impact of COVID-19.
The reserved funding is being held by the Virginia Department of Rail and Public Transportation for other needs not yet identified. Additional guidance will be provided by the Department as to the use of these funds becomes better defined.
It is recommended that City Council approve the attached Ordinance Amending the Fiscal Year 2020 Budget Appropriation by increasing revenue from the CARES Act funds for mass transit.
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