TO: Board of County Commissioners
THROUGH: John Titkanich, Jr.; County Administrator
THROUGH: Brian Freeman, AICP; MPO Staff Director
FROM: Mark Vietze, Senior Planner
DATE: June 4, 2025
SUBJECT: FY 2025 Grant Application for Capital and Operating Assistance (Section 5307) and Bus
Replacement (Section 5339) from the Federal Transit Administration
__________________________________________________________________
BACKGROUND
The Federal Transit Administration’s (FTA) Section 5307 (Urban Area Formula Grant) program provides funding assistance for capital and operating costs associated with Indian River County’s public transportation system. The GoLine (fixed route) and the Community Coach (demand response) transit services are operated by the Senior Resource Association (SRA) under contract with the county. Indian River County also receives capital funding assistance through FTA’s Section 5339 (Bus and Bus Facilities) program, which is used for the purchase of replacement buses.
Together, the Section 5307 and 5339 programs cover nearly all the capital expenses associated with the GoLine and Community Coach. In addition, the Section 5307 program covers approximately half of the operating costs of the public transportation system, with the remainder covered by Florida Department of Transportation (FDOT) grants and local funds.
ANALYSIS
According to federal regulations, Section 5307 program grants may be used for the planning, acquisition, construction, improvement, and operating costs of facilities, equipment, and associated capital maintenance items used in public transportation. Operating expenses require a 50% nonfederal match, which is provided through a combination of local funds and FDOT public transportation grant funds.
For capital expenses, FDOT toll revenue credits are used as a 20% nonfederal soft match (which effectively provides for 100% federal funding of capital expenses). The use of a soft match eliminates the need for the County to provide a cash outlay for capital expenses.
Attached to this report are copies of the County’s proposed grant application for the Section 5307 and Section 5339 programs. As required by FTA regulations, the grant application was prepared using FTA’s Transit Award Management System (TrAMS) software.
For the combined FTA Section 5307/5339 application for FY 2025 (Attachment #1), the total proposed budget amount is $9,571,386. Of that amount, the federal portion is $7,071,386 which consists of $4,571,386 in capital expenditures and $2,500,000 in operating expenditures. For the nonfederal share of capital expenditures ($1,142,847), the County will use toll revenue credits as a soft match. For the nonfederal share of operating expenditures (50%), the match will consist of $1,250,000 in FDOT grants and $1,250,000 from Indian River County. In this case, the County’s contribution consists of previously approved general fund monies budgeted specifically for this purpose.
According to federal grant requirements, the designated recipient (Indian River County) must hold a public hearing to obtain the views of citizens on the proposed grant application. In keeping with that requirement, staff has published a notice of the public hearing.
BUDGETARY IMPACT
For the local share of the nonfederal match, funding in the amount of $1,250,000 will be budgeted and available in the General Fund / Community Transportation Coordinator/Senior Resource Association account (Account Number 00111041-088230-54001). These funds are part of an allocation given to the Senior Resource Association to provide transit service in the county. A portion of these funds will be used in FY 2025, with the remainder being used in FY 2026.
PREVIOUS BOARD ACTIONS
Since the 1990s, the Board has approved annual Section 5307 and 5339 grant applications. On July 2, 2024, the Board approved the previous Section 5307 grant application for FY 2024.
POTENTIAL FUTURE BOARD ACTIONS
Staff anticipates that the Board will approve Section 5307 and 5339 grant applications in future years.
STRATEGIC PLAN ALIGNMENT
Quality of Life
OTHER PLAN ALIGNMENT
The operation of the transit system is consistent with the Metropolitan Planning Organization’s Transit Development Plan (TDP), which was most recently updated in 2023.
STAFF RECOMMENDATION
Recommended Action
Staff recommends that the Board of County Commissioners adopt the resolution authorizing the filing of the FY 2024/25 grant application for the Section 5307 and Section 5339 programs.