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Memo Continued <br />Page 2 <br />Northstar Corridor Commuter Coach Update <br /> <br />TOTAL FUNDING AVAILABLE <br /> <br />FEDERAL FUNDS FOR MONTHLY BUS LEASE: <br /> <br />FARE BOX RECOVERY: <br /> <br />METRO TRANSIT FARE CARD <br />(FARE BOX RECOVERY): <br /> <br />TOTAL MONTHLY REVENUE: <br /> <br />MONTHLY OPERATING SUBSIDY <br />MONTHLY SUBSIDY ($100,226 LESS $63,185): <br /> <br />THE CURRENT LEGISLATION INDICATES THAT <br />THE LOCAL UNIT OF GOVERNMENT MUST <br />PROVIDE THE MATCH FOR THE FEDERAL FUNDS, <br />THAT AMOUNTS TO $8,634 PER MONTH. <br /> <br />THE LEGISLATION PROVIDES FOR THE STATE <br />TO PAY THE REMAINDER OF APPROXIMATELY <br />$28,407. PER MONTH. <br /> <br />ANNUAL OPERATING SUBSIDY <br />ANNUAL LOCAL COST TO PROVIDE SERVICE <br />$8,634 TIMES 12 MONTHS: <br /> <br />$34,535** <br />$ 3,650* <br /> <br />THESE COSTS HAVE BEEN PAID BY MNDOT <br />FROM THE "ADVANTAGE FOR TRANSIT" FUNDS <br />THAT WERE PUT IN PLACE DURING THE LAST <br />ADMINISTRATION; THEY LAPSE ON 9-30-03. <br /> <br />ANNUAL COST TO THE STATE TO PROVIDE THE <br />SERVICE $28,407 TIMES 12 MONTHS: <br /> <br />$25,000* I Agreement with Met <br /> I Councilneeded <br />$63,185' <br /> <br />$37,041'. <br /> <br />$ 8,634 <br /> <br />$28,407 <br /> <br />$103,608 ] Annual costto LGU <br /> <br />$340,884*** I Annual cost to State <br /> <br />* THESE COSTS VARY EACH MONTH DEPENDING ON THE NUMBER OF WEEK DAYS IN <br />THE MONTH <br /> <br />** AS OF 9-30-03 THERE WILL BE APPROXIMATLY $700,000 OF FEDERAL FUNDS REMAINING <br />AND $350,000 IN MATCHING FUNDS FROM THE STATE. <br /> <br />*** AS OF 9-30-04, THE STATE MATCH WILL END WITHOUT ADDITIONAL LEGISLATION <br />THE LOCAL COST TO CONTINUE THE SERVICE WOULD THEN INCREASE TO $37,041 <br />PER MONTH OR $296,328 THROUGH MAY 30, 2005 <br /> <br />*** AFTER 5-30-05, THE FEDERAL FUNDS WILL BE DEPLEATED, THE COST TO CONTINUE THE <br />SERVICE WILL INCREASE TO $71,576 MONTHLY OR $858,912-PLUS ANNUALLY, UNLESS <br />ADDITIONAL FEDERAL FUNDS BECOME AVAILABLE <br /> <br />JO:kr <br /> <br />Attachment <br /> <br />Northstar commuter coach update.doc <br /> <br /> <br />