Fund Swap With County Keeps Buses on the Road

In a swap to help county public transit, the city is trading $900,000 of its general fund for the same amount in gasoline taxes collected by the county.

City officials said the swap is so that the Orange County Transportation Authority can continue county bus service.

“Everyone gains through the protection of a vital bus service, and no one loses anything in this exchange of funds,” said city Public Works Director Mark Christoffels.

Christoffels said that state legislation to help Orange County recover from bankruptcy diverts $38 million annually for 15 years from public bus service. Loss of that money could be ruinous for county bus service, he said.

But a way was found to swap cities’ shares of gas-tax money from the transit agency for funds equaling the money being lost, Christoffels said.

The trade circumvents the bankruptcy-recovery restrictions but does not disobey legislative intentions, Christoffels said. “The state Legislature agreed to the proposed shift of gas taxes to OCTA with an understanding that those funds would be part of a strategy to maintain bus service,” he said.

The state controller’s office also has approved the dollar-for-dollar trade, Christoffels said.

The agreement by the City Council does not bring any extra expense to the city, according to Christoffels. He said the transit agency would reimburse the city for any administrative expenses.