Council approves two FTA 5307 agreements to keep city transit funded; operators report rising ridership

The Idaho Falls City Council on Tuesday approved two Federal Transit Administration (FTA) 5307 formula grant agreements to continue operating the city's transit service.

One action was an amendment to a previous agreement (Amendment 1) that allows the city to use remaining programmed formula funds through a revised end date; staff said about $249,000 remained available for operations under that amendment. Council then approved a second, larger agreement that extends funding through Sept. 30, 2027; staff said that agreement totals about $1,400,000 in funds with a local match of about $825,674.

Why it matters: The agreements permit the city to continue using federal formula funds to operate and expand its GIFT paratransit and microtransit services. Transit staff and councilors said federal funds, local matches, sponsorships and ads help minimize the city's per-ride subsidy.

Transit data: Transit administrator Gabriel Marcus told council the system recorded about 8,800 riders in September and that July topped 10,000 riders. Marcus said the combined funding mix keeps the city's local subsidy to roughly $3 per ride in current projections, and that federal CARES-era dollars helped launch and stabilize service without an initial local match.

Council discussion: Councilors asked about the operational hours, vehicle fleet size (reported as nine vehicles), and whether funding arrangements placed an unusual burden on city taxpayers. Marcus and staff explained ITD serves as a pass-through for federal funds and the city is a subrecipient; sponsors and contracts also contribute to the match.

The vote: Both motions passed by council vote. City staff said the agreements were negotiated in advance of potential federal funding interruptions and will be executed in good faith if federal operations resume.

Next steps: The city will execute the agreements and continue operating and monitoring ridership. Staff said the service posted record months and that the vehicles added under earlier procurements increased service efficiency.