ITEM #: 8.
DATE: 12/09/2024
AI #:2367 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: |
TRANSIT RELATED GRANT AUTHORIZATION, BUDGET AMENDMENT, AND EXPENDITURE AUTHORIZATION
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| STAFF PRESENTER(S): |
Jared Askelson, Finance Director |
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| SUMMARY |
| This action will authorize the City Manager to enter into a grant agreement, amend the budget for transit related programs, and authorize expenditures greater than $500,000. |
| STRATEGIC PLAN ALIGNMENT |
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| RECOMMENDATION |
| Authorize the City Manager to approve a Grant Pass-thru Agreement with the City of Phoenix, approve budget amendments, and authorize expenditures for transit related programs in the amount of $2,250,000. (Jared Askelson, Finance Director) |
| FISCAL IMPACT |
| The total costs associated with the operations of the WeRide, transit related Valley Metro, and Park and Ride facility programs after this action is anticipated to be $2,244,600. The budget will be amended to include additional WeRide funding (Grant $500,000, matching Lottery funds $500,000, unforeseen revenue $208,300). The Valley Metro related budget will be increased by $88,700 (Lottery funds $54,000, unforeseen revenue $34,700). The unforeseen revenue is unanticipated project refunds received from Arizona Department of Transportation (ADOT). The budget will also be amended for grant related Park and Ride improvements (Grant $32,200, General Fund one-time $8,100). |
| BACKGROUND AND PREVIOUS ACTIONS |
In November 2022, the WeRIDE microtransit program was launched to improve mobility for Goodyear residents using available one-time Lottery and Park and Ride advertising funds. In November 2023, the service was expanded to five vehicles on Monday through Friday from 6 AM to 8 PM. The first of two Federal Transit Administration (FTA) grants was incorporated into the budget at that time.
The Dial-a-Ride and Ride Choice programs are administered by Valley Metro and receives direct payments from the City. The Ride Choice program ridership has seen an increase with the advent of WeRide, however, the billing for these programs lagged behind the City’s budget process. Increases for the fiscal year (FY) 2025 budget were not known until after the adoption of the budget and required a budget amendment in July 2024. An additional true-up of $88,000 was received in September 2024. |
| STAFF ANALYSIS |
Up to this point, one-time funds have been dedicated to support the transit related activities. This action will extinguish all remaining fund balances in the Lottery and Park and Ride funds. Some of the Lottery funds will be used as match for the FTA grant (Attachment A). Additionally, one-time unforeseen revenue in the form of refunds received from ADOT after the closeout of long completed projects will be dedicated to the transit cause. The budget amendment will make these funds available during FY2025.
Going forward, additional ongoing funds will need to be dedicated to continue these services and stay compliant with Financial Policies which state: ongoing operating costs should be supported by ongoing, stable revenue sources. Dedication of ongoing sources for transit at current service levels will be addressed during the FY2026 budget process. Additionally, as a part of the Safe & Vibrant component of the FY2025-2028 Strategic Plan, the future service levels and associated funding for public transit will be evaluated during next fiscal year.
In accordance with Goodyear Resolution 08-1255, all expenditures of budgeted funds in excess of $500,000 must obtain Council approval. The combined expenditures for the transit programs are approximately $2,250,000. |
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