Trans 6.02(13) (13) “Through revenue” means revenue derived from passengers whose trips begin and end outside an eligible project route but whose route of travel includes the eligible project route.

Trans 6.02(14) (14) “Urbanized area” means an area of the state so defined by the U.S. bureau of the census.

Trans 6.02(14m) (14m) “Useful life” means a minimum time period, specified by the department, during which an asset is expected to remain in suitable operating condition for continued use in its intended capacity.

Trans 6.02(15) (15) “User-side subsidy” means a program whereby users of a transit service are permitted to purchase transportation vouchers at prices substantially below the fares charged by the transit provider, or are given ride vouchers free of charge. Users may exchange these vouchers for transportation services, and the provider may then redeem them for the full fare.

Trans 6.02(16) (16) “Welfare recipient” means an individual who has received assistance under a State or tribal program funded under part A of title IV of the Social Security Act, 42 USC 601 et seq., at any time during the previous three-year period.

Trans 6.02 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; emerg. am. (2), renum. (8) to (13) to be (9) to (14), cr. (8), eff. 2-12-85; emerg. am. (2), renum. (8) to (13) to be (9) to (14), cr. (8) eff. 6-5-85; am. (2), Register, November, 1985, No. 359, eff. 12-1-85; cr. (4m), Register, December, 1987, No. 384, eff. 1-1-88; am. (10), renum. (12) and (13) to be (13) and (14), cr. (12), Register, October, 1989, No. 406, eff. 11-1-89; am. (10), Register, December, 1989, No. 408, eff. 1-1-90; renum. (5) to (14) to be (6) to (15), cr. (5), Register, January, 1993, No. 445, eff. 2-1-93; CR 18-065: renum. (1) to (1) (intro.) and am., cr. (1) (a), (b), (1g), (1r), am. (2), cr. (2m), am. (3) to (5), cr. (5g), (5r), renum. (6) to (6) (intro.) and am., cr. (6) (a) to (c), (6m), am. (7), cr. (7m), am. (8), cr. (8m), am. (10), cr. (10m), am. (12), (14), cr. (14m), am. (15), cr. (16) Register October 2020 No. 778, eff. 11-1-20; correction in (1g) made under s. 35.17, Stats., Register October 2020 No. 778; CR 22-048: am. (2) Register July 2023 No. 811, eff. 8-1-23.

Trans 6.03 Trans 6.03 Federal share of project costs.

Trans 6.03(1) (1) The federal share of an eligible public transportation service’s operating project costs shall not exceed 50% of its operating deficit, except for projects where the department uses capital cost of contracting procedures to determine the service’s reimbursement amount. On applicable projects, the capital cost of contracting reimbursement rate shall be based on allowances specified in federal transit law or guidance. The following operating revenues and expenses shall be used to establish the project operating deficit:

Trans 6.03(1)(a) (a) Operating revenues shall consist of all passenger revenue derived from the project service, including the portion of through revenue attributed to eligible project routes, station revenues derived from the project service and any unrestricted federal, state or local funds received as a result of providing the project service that are not used to match federal section 5311 funds. Operating revenues also may include income generated through approved job access and reverse commute type projects, consistent with 49 USC 5311.

Trans 6.03 Note Note: Charter, package delivery, and package express operating expenses and revenues for all applicants are assumed to be equal and, therefore, shall not have any net financial effect on the project.

Trans 6.03(1)(b) (b) Eligible operating costs are those transportation and overhead expenses associated with the provision of public transportation service including labor, fringe benefits, materials and supplies, utilities, insurance, purchased transportation service, license fees and certain lease expenses. They also may include other expenses associated with approved job access and reverse commute type projects, consistent with 49 USC 5311. The following are not eligible project costs:

Trans 6.03(1)(b)1. 1. Depreciation and amortization for publicly owned facilities and equipment;

Trans 6.03(1)(b)2. 2. Expenses that are offset or that will be offset by means that include, but are not limited to, cash discounts or refunds, tax rebates including fuel tax rebates, insurance proceeds or resale proceeds;

Trans 6.03(1)(b)3. 3. Interest expense, except that privately owned systems may include interest on short-term debt obligation;

Trans 6.03(1)(b)4. 4. Return on investment, except that a private provider that negotiates all or part of a transportation service contract with an eligible applicant is eligible for a return on its investment. Its return on investment shall be a fixed amount and may not exceed an amount calculated by applying the interest rate the secretary of the treasury specifies under 50 USC App. 1215 (b) (2) as applicable to the period ending on December 31 of the year prior to the project year to the net book value of the private provider’s equipment and facilities used in providing the contracted transportation service;

Trans 6.03(1)(b)5. 5. Lease-purchase payments;

Trans 6.03(1)(b)6. 6. Lease payments to a related party which are made under less than an arm’s length agreement. Only actual eligible project costs of owning the property, including depreciation and taxes, shall be allowed;

Trans 6.03(1)(b)7. 7. Lease payments by small urban area systems for revenue passenger vehicles unless, and only for the term, pre-approved by the department;

Trans 6.03(1)(b)8. 8. Entertainment costs;

Trans 6.03(1)(b)9. 9. Fines and penalties;

Trans 6.03(1)(b)10. 10. Bad debts;

Trans 6.03(1)(b)11. 11. Charitable deductions;

Trans 6.03(1)(b)12. 12. User-side subsidies except those specifically funded under an intercity bus project;

Trans 6.03(1)(b)13. 13. Payments to members of advisory committees, transit commissions or transit boards;

Trans 6.03(1)(b)14. 14. Federal, state and local income taxes;

Trans 6.03(1)(b)15. 15. Expenses related to contractual agreements for special planning studies;

Trans 6.03(1)(b)17. 17. Expenses for contingencies or capital acquisitions, including contributions to a capital reserve account or fund. The cost of materials and supplies utilized in facility or vehicle repairs, regardless of cost, shall be considered as eligible operating costs so long as the repairs involve replacement of existing items.

Trans 6.03(1)(b)18. 18. Fees imposed upon a contracted service provider by the grant recipient, such as taxicab license fees.

Trans 6.03(1)(b)19. 19. Job access and reverse commute project expenses, except in cases where the recipient’s grant agreement with the department explicitly authorizes use of federal funds for such project(s).