Staff recommends that the City of Billings, after holding a public hearing and considering public comment, authorize Billings MET Transit to adopt and execute the amended Program of Projects.

Each year, the City of Billings MET Transit system is awarded an annual apportionment of funding from the Federal Transit Administration under 49 USC 5307.  As required by Federal regulation, these apportionment amounts and the intended expenditure of the funds must be reflected within a Program of Projects (POP) which is approved in a process that includes the opportunity for public input. Further, Section 5307 programs also require annual expenditure on security supportive capital or operations unless MET Transit can show it is reasonably fulfilling security related needs with other funding sources.  In past years, MET Transit has fulfilled these requirements by the inclusion and approval of projects in the Transportation Improvement Plan (TIP) process with the local Metropolitan Planning Organization (MPO).  As MET Transit regularly utilizes section 5307 funding to support transit operations and capital projects in the City fiscal year following the year of award, MET is amending the previously adopted Federal Fiscal Year 2022 and 2023 POPs to more fully leverage the allowable federal and local match rates for FY23 and FY23 expenses.  Typically, operating expenses are eligible for a 50/50 federal to local match rate, but categories within operating expenses do allow for higher match rates; these include an 80/20 match rate for ADA Paratransit operations (up to 20% of the total apportionment amount) and an 80/20 match rate for preventative maintenance of equipment and facilities (which is not limited by percentage of total apportionment).  As the current update to the area TIP is delayed at the State of Montana level, Billings MET Transit has opted to publish an updated POP directly and is holding a public hearing with City Council to provide for adoption of the amended POP; this will subsequently allow MET Transit to draw down grant reimbursements on recent operating expenses.  This information will be reflected in the area TIP once that document begins moving through the approval process.  The amended POP for the applicable Federal Fiscal Years (FFY) is as follows:

FFY 2022

EXPENSE TYPE	FEDERAL SHARE	LOCAL SHARE	TOTALS
Fixed Route Operating (50/50 match)	$1,316,830	$1,316,830	$2,633,660
Paratransit ADA (80/20 match)	$486,730	$121,685	$608,415
Preventative Maintenance (80/20 match)	$621,677	$155,420	$777,097
Security Related Capital (80/20 match - Secured Lot Gate Upgrade)	$8,414	$2,104	$10,518
TOTALS	$2,433,651	$1,596,039	$4,029,690

FFY2023

EXPENSE TYPE	FEDERAL SHARE	LOCAL SHARE	TOTALS
Fixed Route Operating (50/50 match)	$1,368,052	$1,368,052	$2,736,104
Paratransit ADA (80/20 match)	$498,013	$124,504	$622,517
Preventative Maintenance (80/20 match)	$624,000	$156,000	$780,000
TOTALS	$2,490,065	$1,648,556	$4,138,621

*FY2023 does not include security related capital as MET intends to utilize other capital funding to complete security camera upgrades.

City Council may:

• Approve the adoption and execution of the amended Program of Projects by Billings MET Transit; or,
• Not Approve the adoption and execution of the Program of Projects, significantly reducing MET Transit's ability to fund and execute transit operations. 

As reflected in the Programs of Projects, section 5307 apportionments account for $2,433,651 of FY23 transit operations funding and $2,490,065 of FY24 transit operations funding.  Respectively, these account for revenues that cover approximately 39% of MET's FY23 operating budget and 36% of MET's FY24 operating budget.