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Hot Springs to apply for FTA 5307 and 5339 funds totaling about $1.18 million

5515319 · July 30, 2025
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Summary

City staff will ask the board to authorize filing and acceptance of Federal Transit Administration 5307 and 5339 grant funds—approximately $1,081,009.52 (5307) and $96,534 (5339)—to support Hot Springs Intercity Transit operating and capital needs.

Lance Spicer, deputy city manager, told the Hot Springs Board of Directors that the city will seek federal transit assistance through two Federal Transit Administration programs. The city’s allocation under 49 U.S.C. §5307 is $1,081,009.52; Spicer said that program typically supports fixed-route and ADA paratransit operations and “allows for a 50%, 50-50 local and FTA share for operating and an 80-20 for capital expenses.”

Spicer also presented the city’s 49 U.S.C. §5339 allocation of $96,534, which the city generally uses for capital replacement such as transmissions and smaller ADA paratransit vans; staff said some FY25 funds will be carried forward into FY26 for planned projects.

Both grant applications are on the board’s agenda for authorization to file and accept; staff said these federal funds provide the bulk of funding for transit services beyond the city’s general fund contribution. No formal action was taken at the agenda meeting; both resolutions are scheduled for consideration at the board’s Aug. 5 meeting.