Agenda - 04-04-2017 - 8-a - Minutes

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13 1 Jeff Mann said the federal share will be 50% of the declared amount when the project 2 enters into engineering. He said the local share would have to absorb cost overruns, as well as 3 if state funding did not materialize at the full ten percent. 4 Commissioner McKee asked if the project runs $200 million over the 30% in the plan, 5 would Orange and Durham counties pick up the cost in its entirety. 6 Jeff Mann said GoTriangle is working with partners to find ways to defray these costs, 7 but in general, yes the funds would come from the local share. 8 Commissioner McKee said one resident said GoTriangle Special tax board can levy a 9 tax, and asked if this is accurate. 10 Jeff Mann said no. He said the special tax board authorizes a tax only once the voters 11 approve it. 12 Commissioner McKee asked if funding comes up short, then it would have to go back to 13 a referendum. 14 Jeff Mann said if it were a sales tax, he believes that would be the case. 15 Commissioner McKee asked if the guarantor for all of these bonds and loans could be 16 identified. 17 Jeff Mann said GoTriangle would issue the debt, which would be secured by the assets 18 of the system. 19 Commissioner McKee asked if the County has any liability at all. 20 Jeff Mann said to his knowledge that is correct. 21 Commissioner McKee asked John Roberts if he concurred with that conclusion. 22 John Roberts said he is not sure that he does concur. He said he is at a loss for the tax 23 questions. He said as far as he knows, there is no other tax available for transit, as the County 24 has already committed its limited sales tax option. He said anything else would have to come 25 from the legislature. 26 Commissioner Burroughs referred to the 4% sales tax growth assumption, and asked 27 Jeff Mann if he could comment on that assumption. 28 Jeff Mann said Moodys Analytics were hired to conduct an analysis of the sales tax 29 growth rate in both Orange and Durham counties, which was the source for that number, which 30 Moodys deems to be the most realistic forecast moving forward. 31 Commissioner Burroughs said finances are her main concern, and she is interested in 32 discussion with Durham about the proper shares, given the realistic opportunity for economic 33 development, given the location of the stations. 34 Commissioner Burroughs referred to the idea of the public hearing, and said the public 35 would be able to comment at the April 18th meeting and she said she does not feel a separate 36 hearing is needed. She said the public is always welcome to send emails, which can 37 sometimes be more effective. 38 Chair Dorosin said he does not see the substantive difference between what happened 39 this evening, and a public hearing. He agreed with Commissioner Burroughs. 40 Commissioner Price asked if, given the risks involved with the funding of the LRT, the 41 outcome for bus service and other transportation could be explained. 42 Jeff Mann said the bus improvements that are in the Durham and Orange County Bus 43 and Rail Investment Plan, which include BRT on the MLK corridor and to the Hillsborough train 44 station, are still in the plan and are funded by the plan. 45 Commissioner Price asked if the bus expansion would be threatened due to cost 46 overruns of the LRT. 47 Jeff Mann said most of the bus expansion would happen prior to the LRT. He said a 48 large investment in one mode of transportation does limit the options of expanding other 49 modes.