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that appear excessive. Section 5311 operating funds can ONLY be used to support rural general <br />public routes (RGP) <br />RGP DEFINITION: Service provided on a repetitive, fixed -route schedule or deviated fixed -route <br />schedule basis along a specific route for pick up and delivery of passengers to specific locations; <br />each fixed -route trip serves the same origins and destinations, unlike demand responsive, <br />taxicabs, or subscription service. <br />Operating Expenses - Operating expenses are considered those costs directly related to system <br />operations. Eligible items are defined as stated in the UPTAS manual and State Management <br />Plan. <br />Net operating expenses are eligible for assistance. Net operating expenses are those expenses <br />that remain after the provider subtracts operating revenues from eligible operating expenses. <br />Operating revenues must include farebox revenues. Farebox revenues include fares paid by <br />riders who are later reimbursed by a human service agency or other user -side subsidy <br />arrangement. Farebox revenues do not include payments made directly to the transit system by <br />human service agencies to purchase service. However, purchase of transit passes or other fare <br />media for clients would be considered farebox revenue. A voluntary or mandatory fee that a <br />college, university, or similar institution imposes on all its students for free or discounted transit <br />service is not farebox revenue. Farebox revenue must be used to reduce total operating expenses <br />(treated as revenue). <br />Funds received pursuant to a service agreement with a State or local social service agency or a <br />private social service organization may be used as local match. Income from contracts to <br />provide human service transportation may be used either to reduce the net project cost (treated <br />as revenue) or to provide local match for Section 5311 operating assistance. In either case, the <br />cost of providing the contract service is included in the total project cost. <br />The manner in which a subrecipient applies income from human service agencies to a project <br />affects the calculation of net operating expenses and, therefore, the amount of Section 5311 <br />operating assistance the project is eligible to receive. <br />Sources of Local Match. Local match for the remainder of net project costs may be provided <br />from: <br />An undistributed cash surplus, a replacement cash fund or reserve, a service agreement <br />with a State or local social service agency or a private social service organization; or <br />Amounts appropriated or otherwise made available to a department or agency of the <br />Government (other than the [U.S.] Department of Transportation) that are eligible to be <br />expended for transportation. <br />Examples of non - Federal sources that may be used for any or all of the local share include: State <br />or local appropriations; dedicated tax revenues; private donations; and net income generated <br />from advertising and concessions. <br />15 <br />Attachment number 1 <br />G -1 Page 66 <br />