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32 <br /> Increased Cost of Existing Services (ICES) <br /> UPDATE Spring 2023—Parties and Implementation Partners will refer to legacy language from prior <br /> Transit Governance ILA to define how operators can seek funding to support increased cost of <br /> services.This language is shown below. <br /> The Orange County Transit Multi-Year Vision Plan (Plan) provides that all funding for bus services will be <br /> appropriated based on the supporting financial plan/model to Chapel Hill Transit (CHT), GoTriangle, and <br /> Orange Public Transit (OPT).The use of these bus service funds shall be limited to the support of new <br /> bus services above and beyond the existing transit system services in place at the time of the adoption <br /> of the local option % cent sales tax in November of 2012. However, CHT and OPT may use a portion of <br /> the bus service funds provided in the Plan to pay for the increased cost of existing services during the <br /> duration of this Agreement in the manner described below. <br /> The "CHT Share" shall be a percentage derived by dividing the CHT local expenditures for bus services <br /> each year by the total of local expenditures for bus services by both CHT and OPT in that year.The "OPT <br /> Share" shall be a percentage derived by dividing the OPT local expenditures for bus services each year <br /> by the total of local expenditures for bus services by both CHT and OPT in that year.The respective CHT <br /> and OPT local expenditures for bus services in any year shall be based initially upon the audited financial <br /> statements for the fiscal year ending June 30, 2011 Local bus services expenditures shall include <br /> assigned overhead without any consideration of federal or state financial assistance.The determination <br /> of the CHT Share and OPT Share will be made each year thereafter based upon the most recent audited <br /> annual local expenditures for bus service by both. <br /> CHT may use a portion of the bus services funds provided in the Plan up to a maximum amount that <br /> equals the CHT Share percentage of the prior year total receipts from the Orange County local vehicle <br /> registration fee of$7.00 permitted by Article 52 of NCGS 105. OPT may use a portion of the bus services <br /> funds provided in the Plan up to a maximum amount that equals the OPT Share percentage of the prior <br /> year total receipts from the Orange County local vehicle registration fee of$7.00 permitted by Article 62 <br /> of NCGS 105. <br /> The suggested scenario/formula below is drafted for future consideration by parties and <br /> implementation partners upon the next deliberation of the Multi-Year Transit Vision Plan. <br /> Purpose:Transit operators in Orange County are able to use one Locally Dedicated Transit Funding <br /> Source (the County Vehicle Registration Tax, pursuant to N.C.G.S. 105-570, which is levied at$7.00 per <br /> year)to supplement projected increased costs of existing, or baseline, services that were in operation <br /> prior to the passage of the County's%cent sales tax dedicated to public transportation investment. <br /> ICES Policy: An equitable formula is to be used in determining annual allocations of available funds from <br /> the projects County Vehicle Registration Tax for each fiscal year to all operators providing services <br /> within Orange County(Chapel Hill Transit, Orange Public Transit&GoTriangle). <br /> Variables include: <br /> • Total Revenue Service Hours for Fixed Route Bus Services, per provider, at the end of FY2013 <br /> • Total Expenditures for Fixed Route Bus Services, per provider, at the end of FY2013 <br /> • Average annual historical cost escalation rate, per provider,from FY2013 to current fiscal year <br /> 9 <br />