Photo courtesy Capital Metro The Capital Metropolitan Transportation Authority will receive a $3 million grant that it will use to purchase seven new buses, said Billy Hamilton, Capital Metro's interim chief financial officer.
Capital Metro staff will ask the board of directors Feb. 27 to allow the transit authority to borrow $20 million to finance a loan to purchase about 50 more buses to help replace its aging fleet.
"The best way to make a dent is to borrow the money and pay it off over 10 years and rotate out the aging buses to provide better vehicles," Hamilton said.
The meeting will be held at Capital Metro's headquarters, 2910 E. Fifth St.
To receive the grant, the transit authority had to come up with 20 percent of the $3 million, or $600,000, as a "local match." Transportation projects are often financed through federal and local monies, with the amount of federal money contingent upon the amount of money put up at the local level.
Capital Metro found out in late January that it would receive $600,000 worth of transportation development credits from the State of Texas to finance its portion of the grant.
Transportation development credits are built up through toll revenue and are to be used on federal highway system improvements or other transportation-realted capital improvements—in this case, replacing older buses, Hamilton said.
Texas has accumulated several hundred million dollars in TDCs, which are divided statewide. Five other transit authorities throughout the state received the TDCs, amounting to $2.8 million in credits.
Hamilton said the urgent need for bus replacement is due to Capital Metro putting off infrastructure needs so it could build up its reserves as mandated by the Sunset Advisory Commission.
The commission analyzed Capital Metro's governance, management and operations to ensure efficiency in 2009–10. Capital Metro has been putting the recommendations in place, which include maintaining a two-month operating reserve.
