CC Minutes - 02/23/09 Work Session

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supplant capital funds in its budget, freeing the capital funds to support bus operations and LTD was asked to make that presentation to each MPC jurisdiction. Public Works Transportation Planning Manager Rob Inerfeld introduced LTD General Manager Mark Pangborn and Board President Mike Eyster. He explained that STP-U funds were the primary flexible funds available to the metropolitan area and they were allocated by the MPC. He said the annual allocation was $2.5-3 million and in the past the MPC had allocated 10 percent to transportation options, 25 percent to planning and 65 percent to capital projects. He estimated that $1.6 million would be available for capital projects in the next fiscal year and it was those funds that LTD was proposing to use for transit. He said typically the MPC allocated funds on a three-year cycle to provide a larger pool of funds for projects and this is the end of the three-year cycle. In the past the council’s direction to staff had been to use STP-U funds for pavement preservation on streets and off-street shared use paths, modernization and bikeway improvements, with the recent focus on preservation. Mr. Eyster referred to an updated LTD proposal that had been distributed at the meeting. He said budget problems had been created by the increasing costs of paratransit for the elderly and disabled, which far exceeded funding provided by the state, increasing costs of fuel and the decline in the economy. He said the LTD Board had examined a number of options in an effort to balance the budget and avoid service cuts, but those were not enough to prevent a reduction in service. He said the initial proposal for STP-U funds had been revised based on information about transit funding in the federal economic stimulus package. Instead of requesting STP-U funds immediately, LTD would use economic stimulus funds to prevent service reductions in the first year and was asking to retain the option to request STP-U funds in subsequent years to avert service cuts. Mr. Pangborn said while the outlook had improved somewhat, the budget remained a moving target. He said stimulus funds would be a major factor in preventing immediate service cuts. He estimated the district would receive $6.5 million in stimulus dollars that would need to be spent in the next 18 months; half of that would be set aside for remodeling the maintenance facility and the other half would be used to reduce service cuts in the first year. He thought the federal transportation reauthorization bill would include STP-U or a very similar program and it was those funds for which LTD wanted to retain an option. Mr. Clark requested details of capital projects that would be postponed in order to shift funds to bus operations. Mr. Pangborn said real-time reader boards on EmX platforms and upgrades fare collection equipment on buses would be deferred. Mr. Clark asked if the Governor’s transportation bill included operational funds for transit. Mr. Pangborn replied that potential increases in funding for transit included an increase in the tobacco tax, acceleration of the payroll tax rate increase and an increase in the amount of the payroll tax. Mr. Eyster added that the LTD Board would determine how much of the payroll tax increase to implement locally. Mr. Clark expressed concerns about trading City capital preservation project dollars for transit operational funds. He said it appeared the district had sweeping capital goals for expansion of the system at a time when there were operational challenges. Mr. Eyster explained that LTD’s capital projects included few local funds as the district leveraged state and federal funds to the maximum extent to the benefit of the region. He was willing to provide more details about how capital projects and transit operations were funded. Mr. Pangborn added that the district’s MINUTES—Eugene City Council February 23, 2009 Page 3 Work Session