• Budget Information
• History
• Facts & Issues

Budget information

FUNDING SOURCE: 2009 American Recovery and Reinvestment Act (ARRA) through the Federal Transit Administration (FTA)

HISTORY

• The American Recovery and Reinvestment Act, 2009 (ARRA) signed into law by President Barack Obama on February 17, 2009, includes $8.4 billion for capital improvements to the nation’s transit systems.
• The provisions of the ARRA provide grant application requirements for these funds to be made available through Federal Transit Administration (FTA) 5307 assistance programs. Completed grant applications were to be submitted to FTA from the appropriate entities (Georgia Department of Transportation (GDOT) for Unified Government requests) by July 1, 2009.
• On Tuesday March 17, 2009, staff attended a joint FTA and GDOT meeting in Macon, Georgia and learned that the Athens Transit Department was identified to receive an estimated $2,200,000 of ARRA funding. This funding is for the purpose of acquiring four (4) replacement transit vehicles (Buses) proposed in FY12 and FY13 of the approved Transportation Improvement Program (TIP)
• FTA/GDOT staff announced a 30-day timeline for submittal of project applications from local governments to GDOT. The Unified Government grant application for the four (4) replacement buses was due at the GDOT office of Intermodal Programs no later than April 20, 2009.
• The Athens-Clarke County Mayor & Commission adopted a resolution authorizing submittal of the grant application on April 7, 2009.

FACTS & ISSUES

• Athens Transit Department staff initially submitted, prior to the funding guidelines being available, three (3) projects for potential ARRA funding. The initial requests were for $750,000 in Operating assistance, $5,000,000 for Vehicle Storage and Parking Lot
  expansion/improvements at the Pound St. Operations and Maintenance Facility, and $1,000,000 for Bus Stop Improvements. None of the initial requests qualified for the ARRA funding.
• FTA 5307 assistance program capital grants have historically been limited to 80% of the cost for a project, with the local government contributing 10% and state government contributing 10% (in urbanized areas under 200,000 in population). This was the funding arrangement anticipated for acquisition of the subject four (4) replacement buses and the local contribution was envisioned to be provided by the SPLOST 2005 Program.
• The proposed FY10 Transit System ARRA Capital Funding ($1,642,889) is outlined
  below:
  • Federal Grant Share (100%): $ 1,642,889
  • State Grant Share (0%): $ 0
  • Athens-Clarke County (0%) $ 0
  • Total $ 1,642,889
• ARRA Capital Funds will provide 100% of the cost up to $1,642,889 to purchase four (4) replacement transit vehicles (buses) in accordance with the Transit System's Capital Improvements Plan. Further, these funds must be encumbered by no later than September 5, 2009. Staff is of the opinion that this schedule can be met.
• Staff has recently been advised that GDOT will no longer fund 10% of the cost for FTA 5307 projects, due to the State’s current budget constraints, as historically has been the case. Therefore, all future FTA 5307 program acquisition of transit system buses will require local governments to provide 20% of the cost for such vehicles.
• By accepting the ARRA grant, the Unified Government will save approximately $440,000 of 2005 SPLOST Project #17 "Expansion and Replacement of Transit Vehicles" local funding, which would have been required to purchase these four (4) buses in the years proposed by the TIP.
• The ARRA Capital Grants will fund expenses in FY 2010 (July 1, 2009 – June 30, 2010) and typically become available after the beginning of the Federal Fiscal Year (October 1, 2009).
• Based upon current manufacture estimates, staff anticipates receiving the subject replacement buses during the summer of calendar year 2011 or approximately 2 years ahead of the current replacement schedule.
• ARRA funding that has been designated for the State but which is not allocated by a specified date may become available in the future as Additional Supplemental funding to local transit systems. If this occurs, the Athens Transit Department may receive a portion this unallocated funding. Staff will review transit capital projects and submit additional grant application requests as warranted.
• Transit received the contract for this grant award on October 2. The reported $2.2 million was an estimate. When the FTA calculated the final numbers, the Unified Government's share worked out to be $1,642,889. Transit will purchase four (4) replacement buses.