Finance committee reviews ordinance to appropriate $2,494,720 federal and $623,683 local match for compressed natural gas buses
January 02, 2025 | Fairbanks North Star (Borough), Alaska
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On Jan. 2, 2025, the Fairbanks North Star Borough Assembly Finance Committee discussed an advanced ordinance sponsored by Mayor Hopkins to amend the fiscal year 2025 budget by appropriating $2,494,720 in federal grant funds and $623,683 in local matching funds from the Transit Enterprise Operating Fund to the Transit Enterprise Projects Fund for compressed natural gas (CNG) transit buses and paratransit vans.
Director Denton delivered the staff report, saying the funds are part of the Federal Transit Administration's low‑ or no‑emission grant program and that the borough's prior commitment to converting transit vehicles to compressed natural gas informed eligibility. Denton said the funds "will be used to replace a portion of our 7 diesel buses that are past their useful life per FTA stamp." The staff presentation noted the borough remains in serious nonattainment for air quality, making the project an appropriate match for the grant.
Assembly Member Matthew Guttenberg asked whether the Transit Enterprise Operating Fund is separate from the general fund; Denton confirmed the enterprise fund is distinct and described that the appropriation is moving existing enterprise funds to the projects fund to match the federal grant. Guttenberg asked for the current fund balance; Denton said he could provide that figure later.
Assembly Member Leginas asked how many buses the appropriation would buy. Denton said the appropriation would not cover all seven buses; "more than 3, less than 4 is the current math on that," and that the package includes a paratransit van because of the funding gap. Committee members noted that the most recent buses purchased were "just over $800,000" each.
Committee members also asked about facilities and fueling infrastructure. Denton said the new transit facility and CNG fueling infrastructure on Tesoro Avenue were built to accommodate the compressed natural gas buses; staff said the facility has a planned operation date of Feb. 3 and that the borough can begin using the facility with the current diesel buses now.
No formal vote on the ordinance was recorded during the committee meeting; the item was presented as an advanced ordinance with questions and no committee action taken at that time.
Director Denton delivered the staff report, saying the funds are part of the Federal Transit Administration's low‑ or no‑emission grant program and that the borough's prior commitment to converting transit vehicles to compressed natural gas informed eligibility. Denton said the funds "will be used to replace a portion of our 7 diesel buses that are past their useful life per FTA stamp." The staff presentation noted the borough remains in serious nonattainment for air quality, making the project an appropriate match for the grant.
Assembly Member Matthew Guttenberg asked whether the Transit Enterprise Operating Fund is separate from the general fund; Denton confirmed the enterprise fund is distinct and described that the appropriation is moving existing enterprise funds to the projects fund to match the federal grant. Guttenberg asked for the current fund balance; Denton said he could provide that figure later.
Assembly Member Leginas asked how many buses the appropriation would buy. Denton said the appropriation would not cover all seven buses; "more than 3, less than 4 is the current math on that," and that the package includes a paratransit van because of the funding gap. Committee members noted that the most recent buses purchased were "just over $800,000" each.
Committee members also asked about facilities and fueling infrastructure. Denton said the new transit facility and CNG fueling infrastructure on Tesoro Avenue were built to accommodate the compressed natural gas buses; staff said the facility has a planned operation date of Feb. 3 and that the borough can begin using the facility with the current diesel buses now.
No formal vote on the ordinance was recorded during the committee meeting; the item was presented as an advanced ordinance with questions and no committee action taken at that time.
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