Staff recommends that the City Council approve the MET Transit Development Plan and authorize Policy Coordinating Committee (PCC) designee Mayor Cole to convey Council's recommendation to the PCC for final local approval.

The City Council received a presentation of the Plan recommendations to guide system updates and enhancements to the Transit system at a Council work session held on October 04, 2022. The City Council is now requested to take action on the Transit Development Plan by approving the Plan and recommending approval of the Plan to the PCC.  The PCC will hold a future meeting on the Plan adoption.

The City of Billings MET Transit Division identified the need to conduct a Transit Development Plan update to assess the current state of the Transit system and develop recommended strategies for improvement.  The most recent Transit Development Plan undertaken by the Transit Division was finalized in 2015.  With Billings experiencing significant growth in recent years and considering the recent passage of increased transit funding at the Federal level, having an approved and feasible plan in place is essential for the MET to continue providing effective transit services in the Billings area. The Plan provides a number of recommendations to enhance fixed-route services in the area while leveraging the approximate 30% increase in Federal Transit Administration funding allocated to the Billings Urban Area. Full implementation is estimated to require an additional five (5) Transit operator positions and will result in the addition of over 250,000 revenue miles annually.  After adoption of the Transit Development Plan by the PCC, the implementation schedule of recommended improvements will be contingent on actual Federal funds received and annual budget approval by the City Council.

The Transit Development Plan was programmed within the Unified Planning Work Program for the Billings Urban Area and executed using Federal Transit Administration Section 5303 funding. Federal regulations require the Transit Development Plan to be recommended and approved through the transportation planning process for the urban area. While Billings area Transit service is provided by the City of Billings, this Plan will also receive recommendations from the City/County Planning Board and the Yellowstone County Commissioners before being considered for approval by the PCC. 

City Council may:

• Approve the Transit Development Plan as drafted and authorize Mayor Cole to provide a positive recommendation to the PCC; or
• Not approve the Plan and instruct Mayor Cole to provide a negative recommendation to the PCC. 

The level of Transit Development Plan implementation and the alternatives chosen will have a fiscal impact on each of the next five fiscal years.  If full plan implementation was to take place, the estimated revenue and expense impacts would likely be as shown in the chart below.  MET is utilizing remaining CARES Act and ARP funding for a significant portion of operations in FY 23; hence, MET anticipates carrying over approximately $409,775 in FTA Section 5307 operating funds, which will be used to offset the difference in operational costs vs. annual Federal funding shown in the table for FY 24 forward.  Formula funds are expected to increase by approximately three to four percent annually through Federal Fiscal Year 2026 based upon the Bipartisan Infrastructure Law (BIL) level of graduated funding increases for transit. The cost differences displayed only account for the additional operating costs in comparison to increases in Federal funding and do not account for additional revenues expected from projected property tax growth, State revenue growth, or advertising concession growth.  MET currently receives adequate local funding levels to meet the projected increases in Federal funding, which typically require a 50% local match for use as operating expenses.  After adoption of the Transit Development Plan by the PCC, implementation of the recommended improvements will be contingent upon actual Federal funding received and on the annual budget approval by the City Council.

 

FISCAL YEAR	ACTUAL/ESTIMATED FEDERAL INCREASE	ESTIMATED ADDITIONAL COST
FY 23	$409,775 carried forward	N/A
FY 24	$624,193	$745,454
FY 25	$718,768	$769,554
FY 26	$813,343	$793,655
FY 27	$907,918	$817,162
TOTALS	$3,473,997	$3,071,916