City Council Regular Meeting
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New Business   Item #: I.
Fiscal Year 2022 Federal and State Transit Funding
Business Meeting: 07/06/2021
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 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 of 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 2022, the Virginia Department of Rail and Public Transportation identified that a total of $1,727,894 in federal operating aid was available to subsidize operating expenses, and $543,135 in state operating aid was allocated to assist with transit operating costs. The state has also approved federal and state capital aid for the following capital projects: a total of two, 28-passenger replacement buses for the fixed route service and two light duty buses for Danville Transit's reservation based operations.
The estimated total cost for all capital projects is $437,724. Federal capital aid will be provided at 80% of the total project cost or $350,177 and state capital aid will provide 16% funding at $70,038. Therefore, the city's local match requirement for all capital projects is $17,509.
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 2022.
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