Urban-Rural Cost Allocation Options

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Urban/Rural split methodology informs NTD reporting
NTD reporting informs funding
Rural service increases State allocation
Large Urban service increases MPO allocation
Funding sources determine how you manage your
system
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There is no ‘right’ answer
Goals:
Reasonable and consistent- REQUIRED
Simple to collect and report- DESIRED
Maximize funding- DESIRED
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Trip Ends
One trip end in rural area = rural trip
Customer Home
Customer home in rural area = rural trip
Urban and rural routes, regardless of who rides or where
Proportionalize routes based on distance or time inside
the rural area
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Rural Area
Urban
Area
Rural Pickup
Urban Pickup
One end in the rural area = rural
1 rural, 1 urban trip
Rural Dropoff
Urban Dropoff
Route
Doctor
Pharmacy
Home
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Rural Area
Urban
Area
Rural Pickup
Trips are coded based on whether the home is rural or urban
2 rural trips
Rural Dropoff
Route
Doctor
Pharmacy
Home
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Rural Area
Urban
Area
Rural Route
Urban Route
Which group is the primary target of the service?
2 rural, 3 urban trips
Rural Pickup
Urban Pickup
Rural Dropoff
Urban Dropoff
Incidental
Incidental
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Rural Area
Urban
Area
Rural Route
Urban Route
Split time or miles for each route
2 rural, 3 urban trips
Rural Pickup
Urban Pickup
Rural Dropoff
Urban Dropoff
Incidental
Incidental
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The methods may differ if modes have different characteristics
2 rural, 3 urban trips
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DR Route
FR Route
DR based on customer
home
FR based on route
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No choice if the service is contained within one urban area
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UA 1 = 2 trips
UA 2 = 2 trips
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All options are available
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Trip Ends- One trip end in rural area = rural trip
Requires coding by trip origin/destination
Easy with GIS-based routing software
Favors urban service over customer home method
Customer Home- Customer home in rural area = rural trip
Requires coding by customer home
Easy with any software
Favors rural service over trip ends method
Urban and rural routes, regardless of who rides or where
Requires coding by route and consistent routes
Software may not handle this directly
Favors? Depends on route structure
Proportionalize routes based on distance or time inside the rural area
Difficult
Requires post-processing of GPS data
Favors? Depends on route structure
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Large Urban miles result in MPO 5307 funding
Worth 10x more than rural miles
Will you get the money from the MPO?
Even if you receive less than what you ‘earn’, is it
greater than 10%?
Administrative budget impacts
Small Urban miles result in zero additional 5307 GA funding
Rural miles result in State 5311 funding
Must be careful where 5311 subsidies are applied
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70% urban, 30% rural vs. 30% urban, 70% rural
Relationship with the MPO
Full apportionment of 5311 funds, but 5311
administrative budget should only cover rural portion of
administrative expenses
How will the remainder must be covered?
Impacts on operating subsidy
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Reasonable and consistent- cannot change often
Based on actual service being delivered
Lots of flexibility
The results matter
There is not one solution that is best for everyone
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What is your strategy?
How are you compiling the data?
How are you managing the changes in administrative
and operating funding?
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The Institute for Transportation Research and Education focuses on developing urban-rural cost allocation plans for transit providers to meet Federal Transit Administration requirements. These plans inform NTD reporting, funding allocations, and ultimately impact system management. Various options are explored to determine urban service, emphasizing consistency, simplicity, and funding maximization. View images and details for a comprehensive understanding of the cost allocation model and its ramifications.

  • Transportation
  • Cost Allocation
  • Urban-Rural
  • Transit Providers
  • Funding

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  1. Institute for Transportation Research and Education Urban-Rural Cost Allocation Options Kai Monast ITRE Public Transportation Group kcmonast@ncsu.edu (919) 515-8768 1

  2. Institute for Transportation Research and Education Overview Purpose: Intentionally develop urban-rural cost allocation plans that meet the needs of each transit provider Why? FTA requires that transit systems develop a reasonable and consistent methodology based on service being delivered 2

  3. Institute for Transportation Research and Education Ramifications Urban/Rural split methodology informs NTD reporting NTD reporting informs funding Rural service increases State allocation Large Urban service increases MPO allocation Funding sources determine how you manage your system 3

  4. Institute for Transportation Research and Education Relationship to Cost Allocation Model 4

  5. Institute for Transportation Research and Education Determining Urban Service There is no right answer Goals: Reasonable and consistent- REQUIRED Simple to collect and report- DESIRED Maximize funding- DESIRED 5

  6. 6

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  8. Institute for Transportation Research and Education Options Trip Ends One trip end in rural area = rural trip Customer Home Customer home in rural area = rural trip Urban and rural routes, regardless of who rides or where Proportionalize routes based on distance or time inside the rural area 8

  9. Institute for Transportation Research and Education Trip Ends One end in the rural area = rural 1 rural, 1 urban trip Rural Area Home Urban Area Rural Pickup Urban Pickup Rural Dropoff Doctor Urban Dropoff Route Pharmacy 9

  10. Institute for Transportation Research and Education Customer Home Trips are coded based on whether the home is rural or urban 2 rural trips Rural Area Home Urban Area Rural Pickup Rural Dropoff Doctor Route Pharmacy 10

  11. Institute for Transportation Research and Education Urban and Rural Routes Which group is the primary target of the service? 2 rural, 3 urban trips Rural Area Urban Area Rural Pickup Incidental Urban Pickup Rural Dropoff Urban Dropoff Rural Route Urban Route Incidental 11

  12. Institute for Transportation Research and Education Proportionalize Routes Split time or miles for each route 2 rural, 3 urban trips Rural Area Urban Area Rural Pickup Incidental Urban Pickup Rural Dropoff Urban Dropoff Rural Route Urban Route Incidental 12

  13. Institute for Transportation Research and Education Mode Splits The methods may differ if modes have different characteristics 2 rural, 3 urban trips DR based on customer home FR based on route DR Route FR Route 13

  14. Institute for Transportation Research and Education Multiple Urban Areas No choice if the service is contained within one urban area UA 1 = 2 trips UA 2 = 2 trips 14

  15. Institute for Transportation Research and Education Multiple Urban Areas All options are available 15

  16. Institute for Transportation Research and Education Options Summary Trip Ends- One trip end in rural area = rural trip Requires coding by trip origin/destination Easy with GIS-based routing software Favors urban service over customer home method Customer Home- Customer home in rural area = rural trip Requires coding by customer home Easy with any software Favors rural service over trip ends method Urban and rural routes, regardless of who rides or where Requires coding by route and consistent routes Software may not handle this directly Favors? Depends on route structure Proportionalize routes based on distance or time inside the rural area Difficult Requires post-processing of GPS data Favors? Depends on route structure 16

  17. Institute for Transportation Research and Education How to Choose Large Urban miles result in MPO 5307 funding Worth 10x more than rural miles Will you get the money from the MPO? Even if you receive less than what you earn , is it greater than 10%? Administrative budget impacts Small Urban miles result in zero additional 5307 GA funding Rural miles result in State 5311 funding Must be careful where 5311 subsidies are applied 17

  18. Institute for Transportation Research and Education Thought Exercise 70% urban, 30% rural vs. 30% urban, 70% rural Relationship with the MPO Full apportionment of 5311 funds, but 5311 administrative budget should only cover rural portion of administrative expenses How will the remainder must be covered? Impacts on operating subsidy 18

  19. Institute for Transportation Research and Education Take-Aways Reasonable and consistent- cannot change often Based on actual service being delivered Lots of flexibility The results matter There is not one solution that is best for everyone 19

  20. Institute for Transportation Research and Education Discussion Questions What is your strategy? How are you compiling the data? How are you managing the changes in administrative and operating funding? 20

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