Agenda - 04-27-2017 - 1 - Consideration of the Final Draft Durham – Orange Light Rail Cost Sharing Agreement and Final Draft Orange County Transit Plan

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62 Orange County Transit Plan April 25, 2017 transportation project funding cycle, which will conclude with an adopted State Transportation Improvement Program in June 2019. GoTriangle plans to enter the D-O LRT Project into the The operating cost is projected as$28.7 million YOE for the first state process to compete for the full ten percent state share for year (fiscal year 2029). After applying fare revenues and state which the project is eligible. and federal grants, operating costs will be funded using the dedicated Tax District Revenue in Durham and Orange The anticipated capital funding plan for the project is presented Counties. This will allow local funds that currently operate bus in Table 4.6-3. GoTriangle is seeking a 50 percent grant from the routes that will replaced by the D-O LRT Project to be FTA Section 5309 New Starts program, which is consistent with reallocated. Orange County's share of the operating cost is 20 the federal share awarded other New Starts projects. The percent through June 30, 2036; thereafter, its share of the D-O amount of funds committed from the dedicated Tax District LRT operating cost is 19 percent. Revenue in Durham and Orange counties is$887.9 million YOE, of which Orange County's share is $149.5 million in this Plan. The remaining capital funds are planned from state grants, private monetary and in-kind donations, and other funds specifically identified for the Joint Development component. FTA requires that agencies plan for funding needs associated with capital asset replacement, referred to as "State of Good Table 4.6-3: D-O LRT Project Capital Funding Plan (YOE millions) Repair." This includes items such as light rail vehicle replacement every 25 years and major track work overhaul Mi e - Ma 9 MY7--_ a every 20 to 35 years.The first such expenditure for the D-O LRT Other Funds $1,367.3 $1,588.4 Project is anticipated in 2040, with expenses continuing Dedicated Local Revenues $455.7 $887.9 periodically thereafter for the duration of light rail operations. Durham County Portion $351.2 $738.4 The total local share of these State of Good Repair costs is Orange County Portion $104.5 $149.5 assumed to be 30 percent. Orange County's portion of the local Total $1,823.0 $2,476.3 share of the capital asset replacement expenses is 19 percent. Though the D-O LRT Project will compete for a full ten percent share from state funding, this funding is not guaranteed and Funding for the D-O LRT Project is committed through the Cost- could cover a lesser amount than ten percent of the full project Sharing Agreement executed along with this Plan and which is cost. Further information about financial assumptions is incorporated into the annual Work Plan (see Sections 6.2 and included in Section S. 6.5). Final Page 38 of 65