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HomeMy WebLinkAbout05/27/1997, 4 - TRANSIT FUND RATE REVIEW COUnci L M „use fC AZ i S .� j acEnaa IZEpOnt 14 C I T Y O F S A N L U I S O B 1 S P 0 FROM: Michael D. McCluskey,Public Works Direct �'� Prepared by: David Elliott,Administrative Analyst'\ , SUBJECT: Transit Fund Rate Review CAO RECOMMENDATIONS Review and discuss the transit fund rate review DISCUSSION The attached worksheet, "Changes in Working Capital - Transit Fund",projects sources of revenue and uses of revenue for the transit fund over the next five years. Worksheet projections are based on the following assumptions: • Transportation Development Act(TDA) apportionments will increase by three percent each year. • The City will continue allocating all of its TDA grants for alternative transportation and refiain from contributing general fund revenue for this purpose. • $545,200 in Federal Transit Administration(FTA) formula grants will be available each year and this amount will not increase. • Restrictions on the portion of FTA grants available for operations will be lifted in . 1998-99. • Transit ridership will not change. • Transit fares will not increase. • The annual contribution from Cal Poly will be $169,000 in 1997-98 and will increase at the same rate as contract bus service prices. From the worksheet Public Works has concluded that current transit fares plus anticipated FTA and TDA apportionments will cover all planned operating expenses and capital outlays from 1997-98 through 2001-02 with no reductions in service. SLO Transit will be able to maintain service levels only if Congress lifts restrictions on how much of the FTA grants can be used for operations. Out of all the FTA money available each year,typically a transit system can use no more than about 40 percent for operations, and the remainder may go toward capital projects. By swapping excess capital money for operations money from other systems,SLO Transit has been able to apply up to 95 percent of its total annual grant to operations in past years. But that opportunity will probably no longer exist after 1996-97. The federal Intermodal Surface Transportation Efficiency Act(ISTEA), which guides the appropriation and distribution of federal transportation grants, is up for reauthorization in October 1997. A change to lift restrictions is proposed as part of the new legislation. If this change is not enacted, SLO Transit will have to reduce service starting in 1998-99 (presuming the remaining assumptions hold true). CouncH.Agenda Report-Transit Fund Rate Review Page 2 Attachment Changes in Working Capital - Transit Fund I:\CouncilAgendaRepw#\TiamitRateReview 400�- 0 0 0 0 0 0 0 0 0 coo 0 e o 0 0 0 0 0 0 0 0 0 0 0 O o 0 M. � � m e-1 V' N m t` l- N N N -d tn a O N 00 c+1 en a N kn �+ N In NH n a O O O O O O O O O O C O O O O O O O O O O O O 00 qtr O ni m b le '7 l: m O 7 O N N Cm 00 T I- N N N_ 1.0 7 N t- N N t� M N.Q O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 �O 1- M Q` ^ O M 7 m N O V h N O+ N N T r- r b O r+ m b Q\ Ci ` -e O .N. N R to R 01 '� O• L wn r ..y 0. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0 C 0 0 m O m b V O R eV b M r- _ p0 O. �. r4 Ny O` a N el; DD b C y. � Y C .N. N N M . m M " a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 v' 0 = 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N O O O m 0 �o �O m b m b M e` 00 .� O� v O` O O O * O� N C) 00 O -or -- 1n -1 ren n .� O\ m C.1 m ^ b N -� N N tf)O+ ri pj v ., OD (N cliasI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O C O O O O [l O O O O m 0 m DD00 N L7^ V' N N DD Cl et eb+i p N b N 00 m m � p N Z O O O O O 0 0 0 0 O O O O O O O O. O O O O O O O O O O O O O O O O b O\ � O mb le t- P7 O` O\ .• m t, \D l7 N LTi O\ o: ^ m O in �D P R b CK O� eh O er N �n OD Vi 3 m m N O N e7 v1 ^ m 'T PiC-4 m ^ n 7 e en OU v G7 h _ rn rn y `_° o D e o 92. c � U O ¢ pa� In - 05 Z yF O0 UUch = UL1 = E Q a h Z d C7 Ci O O ch an 3 d L L 3 3 3 Al-3