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5 <br /> Increased Cost of Existing Services (ICES) <br /> UPDATE Spring 2023—Parties and Implementation Partners will refer to legacy language <br /> from prior Transit Governance ILA to define how operators can seek funding to support <br /> increased cost of 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 for CHT based upon the most recent <br /> audited annual local expenditures for bus service and for OPT based upon an end of year <br /> financial statement for the transportation services department bus service attested to by the Chief <br /> Financial Officer of Orange County as to its accuracy and completeness. <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 N.C.G.S. 105. OPT may use a portion of the bus <br /> services funds provided in the Plan up to a maximum amount that equals the OPT Share percentage of <br /> the prior year total receipts from the Orange County local vehicle registration fee of$7.00 permitted by <br /> Article 62 of N.C.G.S. 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 <br /> Transit operators in Orange County are able to use one Locally Dedicated Transit Funding Source (the <br /> County Vehicle Registration Tax, pursuant to N.C.G.S. 105-570, which is levied at$7.00 per year)to <br /> supplement projected increased costs of existing, or baseline, services that were in operation prior to <br /> the passage of the County's Y2 cent sales tax dedicated to public transportation investment. <br /> ICES Policy <br /> An equitable formula is to be used by the Tax District Administrator in determining annual allocations of <br />