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Finance committee reviews federal transit grant to buy CNG van and cover operations
Summary
The Fairbanks North Star Borough Finance Committee heard a staff report on an ordinance to appropriate $2,121,898 in federal transit grant funds and $15,034 in local match for operating assistance and a compressed natural gas van; committee discussion clarified use of funds and fund balances but no vote was recorded in the transcript.
An ordinance to amend the borough's fiscal year budget by appropriating $2,121,898 in federal grant funds and $15,034 in local match to support transit operations and to purchase a compressed natural gas (CNG) transit van was presented and discussed at the Fairbanks North Star Borough Finance Committee meeting.
Ms. Denton, director of the Transportation Department, told the committee the appropriation is the borough's annual Federal Transit Administration (FTA) operating grant. "The FTA was late in determining the formula calculation that the FNSB would receive and as such we were not able to include the total amount during the FY25 budget process," Ms. Denton said. She explained the FTA requires transit fares be backed out of drawdowns and that leftover funds can be used for capital over the remaining five years of the grant, which is why a small local match of $15,034 appears in the request.
Assembly members asked how the federal award differed from a separate low- or no-emission vehicle grant approved the prior week. Assembly Member Roterman said the "low-no money" approved last week was a one-time grant specifically for lower-emission vehicles and could not be used for operations; by contrast, Ms. Denton said the appropriation before the committee is the annual operating allocation from the FTA and so most of it goes to operations.
Members also asked whether the combined residuals of multiple grants could be pooled to purchase additional vehicles if amounts did not equal a full vehicle. Ms. Denton said yes: when a purchase exceeds the $200,000 procurement threshold the administration would return to the body and outline which funding sources would be used.
On questions about whether the transit operating fund is supported by property taxes, a member asked to place that on the record. Ms. Denton said the transit operating fund comes from operating revenues for the transit system and grant dollars; she added there has been general fund support in the past, but the transit fund's purpose is to pay for transportation.
Committee members requested a percentage showing how much of operating costs the federal money covers; Ms. Denton said she would provide that data later because the grant supports both bus and paratransit services and the split is not a single straightforward percentage.
The administration estimated that after last week's appropriation and if the ordinance were adopted there would be about $2,600,000 available for appropriation in the transit fund. The transcript records staff reports and questions but does not record a motion or vote on the ordinance.
