Logan County Board turns down Logan Mason Public Transportation request

[May 18, 2017]  LINCOLN -  On Tuesday, May 16, the Logan County Board voted on whether to appropriate $120,000 for Logan Mason Public Transportation.

Finance Committee Chairman David Hepler made a motion for authorization to borrow or appropriate money for Logan Mason Public Transportation.

Board Chairman Chuck Ruben said the amount would be capped at $120,000. He said the account would essentially be "revolving," with LMPT drawing on it "as needed."

Ruben said the money would be "replenished by the state grant" and "the first time the state grant does not come through, it won't get replenished." He said that would cause LMPT to go into a "shutdown mode" until the grant comes through from the state.
Ruben said he spoke with Logan County Treasurer Vicki Dugan and she felt the county would be able to "front the money" through the county's working cash bonds from a $1 million revolving account. He said in case there is a time they could not do that, the county could borrow the money as a "revolving amount."

Board member Bob Sanders said he has concerns about the state budget and how borrowing money could affect the county.

Board member Scott Schaffenacker asked if a loan would still be needed if the flex route would be "suspended for the summer."

Community Action Executive Director Alison Rumler-Gomez said it is "complicated." Rumler-Gomeze said with the services being run now, it costs "$216,000 per quarter," while the services in 2012 were "about $80,000 per quarter." She said they can handle $80,000 without additional support.

Rumler-Gomez said their proposal was either to find a "funding mechanism" to assist with getting reimbursements and "avoid suspending services" or "reduce services" to what they had around 2012 with mainly medical transports. She said the flex route is "only one reason the expenses are so high."

One of the board members said it is a good program that "seems to be growing" and feels expenses could be cut later.

Rumler-Gomez said at a recent meeting with Program Compliance Oversight Manager Brenda Clark and others, there was discussion of how to "mitigate" problems. She said a 'memorandum of understanding' says where money goes and how the contract is worded.

Rumler-Gomez said Community Action's operating funds help "offset expenses" coming in daily. She said the memorandum can also be written as a "service contract" where the money goes to a local match, which is really a "savings account" that helps them operate for longer periods.

Rumler-Gomez said there is dispute over whether to word it as a "fare" or a "local match." She said they decided it could be both, and Community Action is "committed to replenishing or to building that local match or savings account." Rumler-Gomez said having that money available would "reduce the need for us to depend on any sort of revolving credit or extension of credit from the county."

Board member Annette Welch said she wanted to remind everyone that LMPT worked really hard to get the ridership up and not supporting the funding could have long term effects. She said, since the county gets the reimbursements, it "makes sense for us to be the backer of a line of credit."

Hepler's motion to borrow or appropriate money for Logan Mason Public Transportation failed due to the vote being split 6-6 with Dave Blankenship, Bob Farmer, Gene Rohlfs, Chuck Ruben, Bob Sanders, and Scott Schaffenacker voting no; and Kevin Bateman, Janet Dahmm, Emily Davenport, David Hepler, Gloria Luster, and Annette Welch voting yes.

Ruben said he believed it was a question of "fiduciary responsibility" for the board to consider. He said the transportation program was started with the idea of the county "not putting money in" and thinks that should be maintained.

[Angela Reiners]