Each year the City of Billings MET Transit Division applies for a Federal Transit Administration (FTA) Section 5307 formula grant through the U.S. Department of Transportation (USDOT) Federal Transit Act. The grant funds can be used for both operating costs and capital assistance. For FY 14/15 the MET is intending to utilize this grant for operating costs as it has in past years. This is a matching grant with 50% Federal and 50% local dollars. The FTA will reimburse the City up to the apportioned allocation for the year, which will be $1,718,629. This grant application requires a public hearing and a Resolution authorizing the Mayor to execute the grant agreement with the USDOT. Public hearing notices were published in the Billings Times on April 16, 23, and 30, 2015.

City Council will conduct a public hearing and may:

• Approve the Resolution that authorizes filing of the grant application in the amount of $1,718,629 for operating assistance; or
• Not approve the Resolution and do not file the grant application. This would reduce MET operating revenue by about 35% and possibly require service reductions.

For FY 14/15, the Section 5307 Federal grant application for operating assistance is $1,718,629, which represents approximately 35% of the MET operating revenue.

Staff recommends that Council conduct a public hearing and approve the Resolution authorizing an application, and allow the Mayor to execute the grant agreement with the USDOT FTA upon the receipt of the grant offer provided under the authorization of the Federal MAP-21 Act.