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12 1 1 speak tonight on behalf of many individuals and community organizations who would like an 2 update on the state of Durham-Orange Light Rail project. The $57 million shortfall in state 3 funding is one of many changes that have come up since you approved it last year. Since the 4 submission for federal funding is around the corner, this is a good time for Orange County to 5 step back and see where we are. 6 7 As we have stated before, we strongly support public transportation; we just want it to serve 8 more of the public. The original light rail plan to connect the Triangle would have served more 9 people. The current one, not so many. Now, the project limits service to a single corridor from 10 UNC and Durham, and jeopardizes Orange County's larger transit program. 11 12 In the interest of time, I won't go into detail on reductions in bust services nor discuss the failure 13 to serve Orange County's downtown districts or growth centers. What we need at this point is 14 to revisit the financial history of this project. Specifically: 15 • Local costs have more than quadrupled from $400 million in 2012 to now over$1.8 16 billion 17 • Changes in state and federal funding have required planners to assume nearly a billion 18 dollars in debt to make the project economics work 19 • The project will tie up our transit dollars for decades under even the rosiest of scenarios 20 that GoTriangle presented to you early last year 21 22 The $57 million shortfall that Durham has agreed to fill is only one of several new critical 23 problems facing the project. Another is the substantial shortfall in revenues from dedicated 24 transit taxes and fees. Our financial advisors (Davenport) warned us that this would likely 25 happen. Now we can see just how unsupported the original budgets were. We ask that the 26 current County Commissioners retain Davenport to re-analyze the financial data for DOLRT so 27 that the next Commission will have the best possible information to inform the looming 28 decisions regarding whether and how to proceed with this project. 29 30 My colleague and friend, John Morris wants to expand on this topic. 31 Charles Humble 32 33 John Morris said Davenport provided very valuable information eighteen months ago. 34 He said federal funding is at risk as the federal government as made a policy to fund no new 35 light rail projects that have not already received a binding commitment, which this project has 36 not. He said this project is the lowest ranked priority project in all the projects that applied for 37 FTA funding at the same time, and is the most expensive of all the projects, making a favorable 38 decision unlikely. He said constructions costs are rapidly, as are interest rates. He said an 39 independent evaluation is needed regarding these new trends. He said it is possible that the 40 land given by UNC and NCCU will be considered a state donation, and thus subtracted from the 41 $190 million maximum state contribution. He said as planning proceeds, changes are needed, 42 such as elevating the track near the Duke University Medical System, to the tune of$90 million. 43 He said cost increases are inevitable in the planning process, and more should be suspected. 44 He said the use of public transit is decreasing nationwide, and the result will be lower fare 45 income to offset the operational costs. He said GoTriangle is unresponsive and the need for 46 independent analysis is even more important. 47 Commissioner McKee referred to the mention of the $90 million elevated track, and 48 asked if this is a new expense. 49 John Tallmadge, GoTriangle Regional Services Development Director, said the $90 50 million is part of the work that has been done to progress the design from 30% to 50%. He said