Fiscal Note
The proposed resolution authorizes the application from Metro Transit to the State of Wisconsin's Volkswagen Mitigation Program/Transit Capital Assistance Grant Program for funds to purchase 15 replacement diesel buses in 2021.
This program is structured as zero-percent loan. Jurisdictions that apply for, and accept, the funds will see a reduction in their portion of shared revenue over the loan repayment period. If Madison were awarded the grant, and choses to accept the funds, the lost shared revenue would total $5.6 million over the loan repayment period; this translates to approximately $562,000 annually (once all 15 busses have been purchased). Shared revenue is a General Fund revenue source, the loss of this revenue may require expenditure reductions or increases in other revenue sources.
Funds from this grant would reduce the number of buses purchased through GO Borrowing, which is ultimately paid back fully through local funds, reducing Metro’s overall debt.
This is the second round of funding for local governments through this program. Metro was awarded $4.8 million in round one to purchase 15 buses over a three year period starting in 2020.
Title
Approving Madison Metro's application for Wisconsin's Volkswagen Mitigation Program/Transit Capital Assistance Grant Program funding.
Body
WHEREAS Volkswagen Group of America admitted to violating the federal Clean Air Act from 2009 - 2016 by selling diesel engine vehicles designed to cheat on federal emissions tests; and,
WHEREAS Volkswagen partially settled its civil liability for these violations by entering into judicial consent decrees requiring the company to pay over $2.9 billion into an Environmental Mitigation Trust Fund; and,
WHEREAS the State of Wisconsin, a designated beneficiary of the trust, will receive $67.1 million over the next 10 years to offset the excess NOx pollution emitted by the Volkswagen vehicles; and,
WHEREAS the Wisconsin Department of Administration has dev...
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