City Council Regular Meeting


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CL-2771 New Business   Item #: D.       
Meeting Date: 06/07/2022  
Subject:    Fiscal Year 2023 Federal and State Transit Funding
From: Marc Adelman

Business Meeting:     06/07/2022
The City of Danville makes application annually to the Virginia Department of Rail and Public Transportation for federal and state operating and capital assistance.  State operating and capital funding levels can vary annually and are approved in June by the Commonwealth Transportation Board.  All operating expenses are eligible for federal operating aid except depreciation and interest charges.  The Federal Transit Administration provides financial aid based on the transit system's operating deficit and up to eighty percent of the total cost of capital projects.  For small urban and rural transit systems in Virginia, the Virginia Department of Rail and Public Transportation maintains the authority to allocate federal funding operating and capital assistance.
For Fiscal Year 2023, the Virginia Department of Rail and Public Transportation identified that a total of $1,727,560 in federal operating aid is available to subsidize operating expenses, In addition, a total of $839,402 in state operating aid is allocated to assist with transit operating costs.  The federal operating assistance allocation for FY23 is very similar to FY22's funding level, however, the state operating assistance allocation is $296,267 greater than FY 2022's allocation.  The state has also approved federal and state capital aid for the following capital projects: a total of two, 28-passenger buses for the fixed route service and three, 14-passenger light duty buses for Danville Transit's reservation-based operations.  In addition, funding is requested to replace the transit system's automated scheduling software system, purchase a minivan, replace all bus stop signage throughout the city and renovate the Transfer Center to include employee restrooms.  The new bus stop signs will include information, so passengers can receive automated text messages regarding the scheduled arrival time at each bus stop location and a QR code that will allow passengers to access the transit system's vehicle locator tracking system.

The estimated total cost for all capital projects is $1,070,908.  Federal capital aid will be provided at 80% of the total project cost or $856,726 and state capital aid will provide 16% funding at $171,345.  Therefore, the city's local match requirement for all capital projects is $42,837.
It is recommended that City council adopt the attached Resolution authorizing an application to the Virginia Department of Rail and Public Transportation for mass transit funding for Fiscal Year 2023.



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