Council approves $220,304 local match for transit funding and OKs rental space for growing bus fleet

A city transportation official asked the City of Sydney Council to approve a two-year operating and non-operating funding application and the required local match so the department can seek state and federal reimbursements for service that runs inside the municipal limits.

Chris, transportation department staff, told the council the operating-assistance period would cover July 1, 2025, through June 30, 2027, and described the method for calculating local match. "The operating assistance is for the 2 year time frame, 07/01/2025 through 06/30/2027," Chris said.

Staff presented a two-year projected cost of $1,326,940 and projected revenue of $61,200. The staff-calculated operating deficit for two years was $625,196; the local match for the operating deficit was presented as $156,300 for the two-year period. Non-operating costs were presented at $640,544 with a 10% local match of $64,055. Staff totaled the local match at $220,304 for the two-year application.

The council voted 5-0 to approve the resolution that authorizes the application and local match. Council member Bondegaard moved the resolution; Kirkman seconded.

Chris also asked council permission to lease a nearby storage building to house the transit fleet as additional buses arrive. Staff described a 2,400-square-foot (staff corrected) building at 1730 Illinois Street, 2 blocks from the transit facility, with rent set at $1,600 per month plus utilities. The lease terms were reviewed by the city clerk and shortened from a 90-day termination notice to a 30-day notice at the council's request. The council approved the lease by a 5-0 roll call.

Why it matters: the approved local-match commitment is required to submit the application to the Nebraska Department of Roads and unlock federal and state reimbursement. Approving the lease gives the transit program indoor parking for new buses and supports ongoing service expansion.

What staff said staff said the transit operation runs 11 part-time drivers and averages about 3,000 rides per month; staff reported occasional peak days of about 220 rides and that the system recently began contracting with MTM (a Medicaid transportation provider) to provide reimbursable medical trips.

Next steps Staff will file the funding application with the state and execute the lease for occupancy and bus storage.

(See the Votes at a glance article for the full roll-call vote and related motions.)