Pennsylvania Code › Title 67 - TRANSPORTATION › Part I - Department of Transportation › Subpart B - Nonvehicle Code Provisions › Article II - Mass Transit › Chapter 427 - PUBLIC TRANSPORTATION-SUSTAINABLE MOBILITY › GENERAL REQUIREMENTS › Section 427.4 - Local matching funds

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Eligible sources for required annual local matching funds.
(1) For a private transportation company
						receiving grants directly from the Department under the act, eligible annual
						local matching funds shall only consist of contributed cash income that was
						generated by the transportation company from its nonsubsidized
						activities.
(2) Except for those
						local transportation organizations using local matching funds from private
						third-party contractors prior to the enactment of the act, eligible sources of
						local matching funds for a local transportation organization shall be cash
						contributions provided by one or more municipalities or private entities in
						accordance with paragraphs (1) and (10).
(i)
						The total amount of municipal local match cash contributions for operating
						assistance cannot be less than the total amount of municipal local match cash
						contributed in the prior fiscal year.
(ii) If the required local match is 15% of
						the State funding for operating assistance, the municipal local match
						contribution can be reduced proportionate to any reduction in State operating
						assistance funding.
(3)
						Advertising revenue may be considered an eligible source of local matching
						funds for operating assistance grants if the municipalities responsible for
						providing all of the local matching funds annually pass a resolution which:
(i) Acknowledges their responsibility for
						providing the local matching funds.
(ii) Agrees to offset any shortfall in
						advertising revenue received during the fiscal year which results in
						insufficient local matching funds.
(iii) Acknowledges that any reduction in
						service or increase in fares due to the net loss of operating revenue
						associated with the use of advertising revenue as local match is the
						responsibility of the municipalities which provide local match.
(4) If a shortfall in advertising
						revenue causes the local transportation organization to obtain less than its
						required operating assistance local matching funds in any fiscal year and the
						municipality does not offset the shortfall to bring the local match to the
						minimum required for State operating assistance funding, the following apply:
(i) Advertising revenue will no longer be
						considered an eligible source of local matching funds for the affected local
						transportation organization in future fiscal years.
(ii) The State operating assistance funding
						for the fiscal year in which the shortfall occurs will be prorated in
						accordance with subsection (e)(4).
(5) All categories of local transportation
						organization operating revenue, including passenger fares; public or private
						payments provided in lieu of fares including route guarantees, unless the route
						guarantee revenue is allowed as local match in accordance with paragraph (9);
						charter or school bus revenue; advertising revenue, unless the advertising
						revenue is approved for use as local match in accordance with paragraph (3);
						and interest income or other miscellaneous sources of revenue do not constitute
						eligible sources of local matching funds.
(6) Local bonds issued by local
						transportation organizations and guaranteed in whole or in part by State
						funding sources, including interest arbitrage instruments, do not constitute
						eligible sources of local matching funds for State grants.
(7) Income generated from the subsidized
						public passenger transportation service is not eligible to be used as a source
						of local matching funds.
(8) For a
						local transportation organization using funds provided by a private third-party
						contractor as a source of local matching funds prior to the enactment of the
						act, the following apply with regard to operating assistance:
(i) Local matching funds equal to the local
						matching funds provided by third-party contractors in State Fiscal Year 2009-10
						may continue to come from private third-party contractor sources provided the
						following requirements are met. The private third-party contractor source of
						local matching funds must:
(A) Segregate
						finances for all business entities.
(B) Maintain separate accounting records for
						each business entity.
(C) Submit an
						independently prepared audit for each business entity. The audit must clearly
						identify revenue sources used for local matching funds.
(ii) Local matching funds in excess of the
						local matching funds provided in State Fiscal Year 2009-10 must be provided in
						accordance with paragraph (2). Funding from private third-party contractor
						sources is not eligible for this portion of the local matching funds.
(iii) If the amount of local matching funds
						provided by the private third-party contractor is ever decreased to an amount
						less than the local matching funds provided in State Fiscal Year 2009-10, the
						lower amount will become the maximum amount of local matching funds which can
						be provided by the private third-party contractor. All local matching funds in
						excess of the lower amount must be provided in accordance with paragraph (2).
						Private third-party contractor sources are not eligible for this portion of the
						local matching funds.
(9)
						For a local transportation organization using route guarantee funds as a source
						of local matching funds prior to the enactment of the act, the following apply
						for operating assistance funding:
(i) Local
						matching funds equal to the local matching funds provided by route guarantee
						funds in State Fiscal Year 2009-10 may continue to come from route guarantee
						funds.
(ii) Local matching funds in
						excess of the local matching funds provided in State Fiscal Year 2009-10 must
						be provided in accordance with paragraph (2). Route guarantee funds are not
						eligible for this portion of the local matching funds.
(iii) If the amount of local matching funds
						provided through route guarantee funds is ever decreased to an amount less than
						the local matching funds provided in State Fiscal Year 2009-10, the lower
						amount will become the maximum amount of local matching funds which can be
						provided through route guarantee funds. Local matching funds in excess of the
						lower amount must be provided in accordance with paragraph (2). Route guarantee
						funds are not eligible for this portion of the local matching funds.
(10) Private sources other than
						funding from private third-party contractors and route guarantees may be
						eligible as local match provided that a local transportation organization has:
(i) Requested in writing Department approval
						of the source and amount of the local match from private sources.
(ii) Provided a written contract between the
						private source and the local transportation organization prior to submitting an
						application for State funding.
(11) Local transportation organizations may
						use uncommitted local match reserves for operating assistance if the following
						apply:
(i) The total local match reserve
						amount is identified in the most recent audit report and can be traced through
						transaction detail to the source of the local match.
(ii) The board of the local transportation
						organization passes a resolution which certifies that the local match reserve
						to be used for operating assistance is not committed to another
						project.
(iii) The local
						transportation organization provides to the municipalities responsible for
						providing the local match written notification of the amount of local match
						reserve that will be used in a fiscal year to offset shortfalls in local match
						payments.