AB 734

The Biennial Budget Act,

2009 Wisconsin Act 28

(Act 28), authorized the

creation of the Dane County regional transit authority (RTA), the Chippewa Valley

RTA, and the Chequamegon Bay RTA. Each RTA, once created, is a public body

corporate and politic and a separate governmental entity.

This bill authorizes the creation of a Fox Cities RTA. Under the bill, the Fox

Cities RTA is created if the governing body of any two or more municipalities located

in whole or in part within the urbanized Fox Cities metropolitan planning area

(planning area) adopt a resolution authorizing the municipality to become a member

of the RTA and each resolution is ratified by the electors at a referendum held in the

municipality. Each resolution must also include an identical provision specifying the

number and composition of the RTA's board of directors. After the Fox Cities RTA

is created, any municipality located in whole or in part within the planning area, and

any municipality within the counties of Outagamie, Calumet, or Winnebago that is

outside the planning area, may also join the RTA if the governing body of the

municipality adopts a resolution to join the RTA, the resolution is ratified by the

electors at a referendum held in the municipality, and the board of directors of the

RTA approves. The jurisdictional area of the Fox Cities RTA is the geographic area

encompassing the combined territorial boundaries of all municipalities creating or

joining the RTA.

The provisions of current law, as created in Act 28, governing the powers and

duties of the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon

Bay RTA also apply to the Fox Cities RTA. In brief, an RTA's authority is vested in

its board of directors and its bylaws govern its management, operations, and

administration. An RTA may: operate a transportation system or provide for its

operation by contracting with a public or private organization; impose, by its board

of directors adopting a resolution, a sales and use tax in the RTA's jurisdictional area

at a rate not exceeding 0.5 percent of the sales price if certain conditions are satisfied;

acquire property by condemnation; and issue tax-exempt revenue bonds. An RTA

has a duty to provide, or contract for the provision of, transit service within the RTA's

jurisdictional area. Rates and other charges received by an RTA must be used only

for the general expenses and capital expenditures of the RTA, to pay interest,

amortization, and retirement charges on the RTA's revenue bonds, and for specific

purposes of the RTA and may not be transferred to any political subdivision.

Finally, if the Fox Cities RTA imposes a sales tax, a political subdivision that

is a member of the RTA must decrease its property tax levy for transit purposes by

the amount of sales taxes collected in excess of the amount of federal funding the

political subdivision previously received for transit purposes.