HomeMy WebLinkAbout(1) TRANSIT FUNDINGINTEROFFICE MEMORANDUM
TO:.
FROM:
SUBJECT:
DATE:
STEVE FITZG1BBONS, CITY MANAGER
DALE L. WATSON, DIRECTOR OF PLANNING
TRANSIT FUNDING
10/25/02
Randy Whitman is scheduled to speak at the council meeting on extending the days and
hours that the transit system runs. Port Arthur Transit currently operates a transit system
that provides fixed route service on eleven routes, operating from 6:15 a~m. to 6:15 p.m.,
Monday through Friday. In addition, the city also provides demand response service to
elderly and disabled persons throughout the City. The hours of operation of the demand
response service are the same as the fixed route.
We currently receive funding from the Federal Transit Administration (FTA) and the
Texas Department of Transportation (TXDOT). FTA will fund up to 50% of the
operating deficit and 80% of the capital cost of the transit system. TXDOT will pay up to
100% of the local share. In 2002 we received and allocation of $714,921 from FTA and
$776,487 over the 2000 - 2002 biennium from TXDOT. The City is contributing about
$200,000 per year in operating funds. We are currently using all of our FTA and
TXDOT funding and so any increase in transit system operating cost would have to he
paid with City dollars.
Future funding levels for FTA and TXDOT are unclear at the present time. TXDOT has
proposed a loan from inter-city bus allocations to the small operators to cover shortfalls
that many operators around the state have this year. This loan would have to he paid
back over the next three years. TXDOT is anticipating an increase in FTA funding
available to the small operators due to Lubbock being designated a Trans~rtation
Management Area and no longer receiving funding from the small operator's fund.
However, TXDOT is requesting 25% less funding from the legislature than in the
previous bieanium. The portion from general revenue remains the same and it may he
unrealistic to believe that the legislature will fund transit at the same rate from general
revenues with the current budget shortfall at the state level.
The cost of adding additional days or hours could he substantial. To add Saturday service
would increase the cost by approximately 20% or $400,000. If time were added to the
current 12 hours service a day, each hour added would cost approximately $165,000 per
year. Again, since no additional state or federal funds are available, all added costs
would have to he paid by the city.