Title
Resolution to Amend the Cost Allocation Agreement between the Cities of Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Virginia Beach and the Transportation District Commission of Hampton Roads
Purpose
PURPOSE/BACKGROUND:
Amend the Hampton Roads Transit (HRT) Cost Allocation Agreement so they can redirect uncommitted state and federal funds to offset the loss of state recordation taxes previously send to its member cities in fiscal year 2021.
Discussion:
The HRT Board unanimously endorsed a one-year solution regarding the state redirecting the recordation taxes that it historically sent to localities, but is now dedicating it to support regional transit. The funds, as well as an additional $15 million, are being directed to the Hampton Roads Transportation Accountability Commission (HRTAC) to support regional transit. While this action by the state could have cost HRT’s member cities $4.9 million, and Hampton $377,000, $1.8 million of the $4.9 million impact will be addressed by holding all localities at their Fiscal Year 2020 funding levels during Fiscal Year 2021. The remaining $3.1 million will be addressed through a one-year amendment to the HRT Cost Allocation Agreement that will need to be adopted by all six member cities to allow them to reallocate uncommitted state and federal funds to make up for the lost recordation taxes for each member city.
Impact:
N/A
Recommendation:
Rec
Approve the resolution to accept the Hampton Roads Transit (HRT) Cost Allocation Agreement
Body
WHEREAS, the Cities of Chesapeake, Hampton, Newport News, Norfolk, Portsmouth and Virginia Beach (collectively, the “Participating Cites”) and the Transportation District Commission of Hampton Roads (“HRT”) are parties to the Cost Allocation Agreement, effectively dated October 1, 1999 (“Allocation Agreement”);
WHEREAS, the Allocation Agreement, among its other provisions, defines how state and federal funding received by HRT is allocated to the Participating...
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