Orange County NC Website
3 <br /> counties; some non-financial changes to the transit plan; and a memo and analysis of the <br /> possible expansion bus service that could be afforded, if funds remain. <br /> BACKGROUND: <br /> The Orange County Transit Plan governs the allocation of transit taxes and fees to various <br /> transit services. This Plan updates the original Bus and Rail Investment Plan was adopted in <br /> 2012. The Plan allocates funding to bus services, the Durham-Orange Light Rail project, bus <br /> capital projects, an intercity Amtrak train station in Hillsborough, and a bus rapid transit project <br /> in Chapel Hill. The Plan is funded using four dedicated revenue sources: the Article 43 half <br /> cent sales tax, the Article 50 five percent (5%) vehicle rental tax, the Article 51 three dollar ($3) <br /> increase to the GoTriangle regional vehicle registration fee, and the Article 52 seven dollar ($7) <br /> Orange County vehicle registration fee. <br /> The 2017 update to the Orange County Transit Plan integrates changes to funding <br /> assumptions based on limitations placed on transit projects by the State and Federal <br /> governments. These changes reduced federal funding for bus capital projects, reduced State <br /> funding for the North-South Bus Rapid Transit (BRT) project, and reduced State funding for <br /> the Durham-Orange Light Rail Project (DO-LRT). <br /> The most notable reduction in the Plan is the amount of State funds dedicated to the Durham- <br /> Orange Light Rail Project. The 2012 Plan assumed a 25% State share. Based on legislative <br /> changes, the 2017 Plan includes a 10% State share. <br /> External funding limitations placed on the light rail project resulted in a series of reports to the <br /> Board of Orange County Commissioners. In November 2016, GoTriangle reported that the <br /> limitations resulted in a revenue shortfall in the light rail project. Based on this report, the Board <br /> approved a memorandum of understanding in December to work with GoTriangle to identify <br /> alternative funding sources. The Board also directed the County Manager to engage a <br /> consultant to conduct an independent review of the financial model for the light rail project. <br /> Later in December, GoTriangle reported project financing would be restructured to prevent the <br /> need for any additional local funds to support the project in a base case scenario. <br /> In February 2017, GoTriangle received direction from the Federal Transit Administration that <br /> prescribed an April 30 deadline for updating the Orange County Transit Plan and the Cost <br /> Sharing Agreement between Orange and Durham counties. During this time, GoTriangle also <br /> created a new financial model that delineates revenue, expenditure, debt service coverage <br /> and cash flow by county. The model also allows the counties to evaluate different cost share <br /> scenarios between Durham and Orange County for the D-O LRT project. The new financial <br /> model revealed that the dedicated Orange County transit revenues could not support the light <br /> rail cost share percentages contained in the 2012 Bus and Rail Investment Plan. As a result of <br /> the new financial information and changes to the project scope, Durham and Orange counties <br /> are in the process of renegotiating the cost share agreement that defines the financial <br /> responsibilities of each County. <br /> On April 4, 2017 the Board of Orange County Commissioners received a report on the <br /> independent financial analysis conducted by Davenport & Company. The presentation clarified <br /> the total cost of the project, financing mechanisms, and potential financial risks including <br /> credit, cash flow, and any potential budget implications. The presentation also highlighted <br />