Submitted By: Tye Chighizola
presenter
Presentation By: Tammi Haslam
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
title
Adopt Budget Resolution 2022-139 to accept and appropriate local matching funds in the amount of $552,000; $16,836 from the disposition of old SunTran buses; and $145,000 from bus fares, bus passes and fuel tax refunds to support the Ocala/Marion County Public Transit System, SunTran, for a total of $713,836
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On July 1, 2019 the City of Ocala and Marion County entered into an Interlocal Agreement to establish their respective funding commitments (City of Ocala - 75% / Marion County - 25%) of necessary local funds to operate SunTran. In fiscal year 2022, the City budgeted $414,000 and Marion County budgeted $138,000 to be used as the local matches to SunTran grants. This fiscal year the City was awarded a Florida Department of Transportation (FDOT) Capital Public Transportation Grant Agreement (PTGA) in the amount of $1,233,575 that did not require a local match so the FY22 local match funds were not appropriated. However, SunTran still has two 5307 FTA Grants and one FDOT PTGA Operating Grant that require local matches. Local matches by both entities are budgeted annually and not carried forward to the following year.
Revenue generated from bus fares, bus passes and fuel tax refunds are also generally appropriated when matches are appropriated for grants. Again, since SunTran did not have any grants that required local matches, no locally generated revenue was appropriated.
In 2020, the City purchased seven new 35’ Gillig buses to replace its SunTran fleet that was well past its useful life expectancy by mileage and age. These buses already had their engines and transmissions rebuilt, had over 600,000 miles on them, and were in constant need of repair. There were also two 2002 buses with mileage more than 600,000 miles, an old cutaway and one inoperable bus. The City received Federal Transit Administration (FTA) approval to dispose of the 11 old SunTran buses that had exceeded their useful life expectancies by mileage and age. The FTA stated that it no longer had any monetary interest in the buses and that the money could be used for anything that supported SunTran. The buses were sold at auction in January 2022 for $16,836.
FINDINGS AND CONCLUSIONS:
In order to utilize the two 5207 FTA Grants and one FDOT PTGA Operating Grant, the City must appropriate the local matches so that the funds can be used. Likewise, the revenue generated from bus fares, bus passes and fuel tax refunds is used to reduce the operational expenses thus supplementing the local matches; therefore, the revenue must be appropriated to be used. The money from the sale of the buses can be used in whatever capacity deemed appropriate in support of the transit system.
FISCAL IMPACT:
The City budgeted $414,000 as its local match in account 494-381-000-000-19-38091 this fiscal year.
PROCUREMENT REVIEW:
Not Applicable
LEGAL REVIEW:
Not Applicable
ALTERNATIVE:
• Approve
• Deny
• Table
BUDGET RESOLUTION 2022-139
A RESOLUTION AMENDING THE FISCAL YEAR 2021-2022 BUDGET TO ACCEPT AND APPROPRIATE LOCAL MATCHING FUNDS IN THE AMOUNT OF $552,000; $16,836 FROM THE DISPOSITION OF SUNTRAN BUSES; AND $145,000 FROM BUS FARES, BUS PASSES AND FUEL TAX REFUNDS TO SUPPORT THE OCALA/MARION COUNTY PUBLIC TRANSIT SYSTEM, SUNTRAN, FOR A TOTAL OF $713,836
WHEREAS, in fiscal year 2021-2022 the City budgeted $414,000 and Marion County budgeted $138,000 to be used as the local matches to SunTran grants; and
WHEREAS, local matches are needed for existing Federal Transit Administration (FTA) grants FL-2020-019-00 and FL-2018-121-00 and the Florida Department of Transportation’s Public Transportation Grant Agreement #433304-1-84-02; and
WHEREAS, the City received FTA approval to dispose of 11 old SunTran buses that had exceeded their useful life expectancy by mileage and age stating that the FTA no longer had any monetary interest in them; and
WHEREAS, the 11 old buses were sold at auction for $16,836; and
WHEREAS, revenue generated from the sale of bus fares and passes as well as fuel tax refunds is anticipated to be $145,000 for FY22.
NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the FY 2022 budget be amended as outlined below to appropriate funding as follows:
Source:
091-016-650-544-54-83010 SunTran Grant Match ($414,000)
Use:
091-099-999-541-81-91494 Transfer to SunTran Grant Fund $414,000
Sources:
494-381-000-000-19-38091 Contribution ¾ Mill Road Improvement Fund $414,000
494-337-000-000-07-34350 Mass Transit - Marion County Share $138,000
494-364-000-000-16-36490 SunTran Scrap & Surplus Sales $ 16,836
494-344-000-000-02-30310 Program Income - Fares $120,000
494-344-000-000-02-34311 Program Income - Bus Passes $ 24,000
494-369-000-000-16-36911 Program Income - Fuel Tax Refund $ 1,000
Total $713,836
Uses:
494-099-999-544-54-31010 SunTran Professional Services $ 16,836
494-050-451-544-54-12020 SunTran Operating - Salaries $ 97,000
494-050-451-544-54-21010 SunTran Operating - FICA Taxes $ 7,420
494-050-451-544-54-22012 SunTran Operating - DC Retirement $ 7,760
494-050-451-544-54-23010 SunTran Operating - Life & Health Insurance $ 8,597
494-050-451-544-54-24010 SunTran Operating - Workers’ Compensation $ 74
494-050-451-544-54-31099 SunTran Operating - IT Allocation $ 6,000
494-050-451-544-54-34010 SunTran Operating - Other Services $378,149
494-050-451-544-54-41010 SunTran Operating - Communication Services $ 6,000
494-050-451-544-54-43010 SunTran Operating - Utility Services $ 30,000
494-050-451-544-54-45099 SunTran Operating - Insurance Services Allocation $ 16,000
494-050-451-544-54-46010 SunTran Operating - Repair & Maintenance $ 10,000
494-050-451-544-54-47099 SunTran Operating - Copy Contract Allocation $ 5,000
494-050-451-544-54-52010 SunTran Operating - Operating Supplies $ 5,000
494-050-451-544-54-52020 SunTran Operating - Fuel $100,000
494-050-451-544-54-52060 SunTran Operating - Equipment $1,000 - $4,999 $ 20,000
Total $713,836
This resolution adopted this ______ day of ______________________, 2022.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire Bethea Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
Robert W. Batsel, Jr.
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Sandra Wilson
City Manager