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 operating costs and capital assistance. For FY 15/16, 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 $1,834,467. This grant application requires a public hearing and a Resolution authorizing the Mayor to execute the grant documents with the USDOT. Public hearing notices were published in the Billings Times on January 14, 21, and 28, 2016.

City Council will conduct a public hearing and may:

• Approve the Resolution that authorizes filing the grant application in the amount of $1,834,467 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 15/16, the Section 5307 Federal grant application for operating assistance is $1,834,467, 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 allowing the Mayor to execute all grant documents with the USDOT FTA upon the receipt of the grant offer.