09-24-18 Council Minutes - Laserfiche WebLink

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REGULAR MEETING September 24, 2018 decrease in what we receive. We also have annual increases in our insurance. Not only health insurance but our vehicle insurance and our liability insurance. The last one (1) is that our current collective bargaining agreement expires in November 2019 so we will be looking to enter into the contract negations in the summer of 2019 and we will have an update on that when we come into our next budget season on what that is looking like. Mr. Kubaszak went on, Of our revenue sources, thirty six percent (36%) of our revenue comes from property tax and County Option Income Tax. Another nineteen (19%) comes from State funding which is the Public Mass Transit Fund which is subject to the State changing it on a two (2) year cycle. We receive twenty-eight percent(28%) of our revenue from Federal Operating and Federal Prevent Maintenance. And then only thirteen percent (13%) comes from our passenger revenue. From an expenses standpoint, we spend about seventy-five percent (75%) of our budget on wages and benefits. In addition, another six percent (6%) on materials and supplies. We did balance our budget and our total budget expense is $10,617,606. When you look at our operating expenses compared to prior years, we are pretty flat. We've done that through making changes in our expenses and making some other changes in how we calculate average rates and other minor service stuff. Labor expenses have been very consistent. Our biggest change is us making up for our bad year in health insurance in 2017. Going back to the property tax, that is the other major one (1) we are reviewing right now. We had a study done from Umbaugh & Associates and they anticipate a decrease in property tax about $300,000 due to the 2020 circuit breaker. To put that into prespective, in 2022 we will receive about $2.9 million of property tax revenue and that will be the same amount we received in 2018. Some of the operating assistance we do receive has been pretty flat-lined from the State's standpoint and also relatively flat from the Federal side too. Mr. Kubaszak continued, Some of the 2019 priorities include introducing new technologies into our system. The first (1St) one (1) is our para-transit schedule. We just purchased that and we are looking to get that totally up and running by January 1St, 2018. That will help us improve our efficiency and scheduling on that. We will still continue with our ridership initiatives and look to new partnerships with other organizations besides universities.Additionally,we are going through replacing our current fleet. We did complete a Federal Competitive grant to get money to replace buses. We will know later in the fall if we receive that amount. We will also be applying for the Indiana Volkswagen Mitigation funds to help offset the twenty percent(20%) local match that we have to pay per FTA requirements. Councilmember Jo M.Broden asked,In terms of fiscal oversight and Board leadership adjustments you've made in 2018, could someone address some of those changes? Jamie Woods, General Counsel for the Board of Directors at TRANSPO with offices located at 420 Lincoln Way West,Mishawaka,IN,replied, Since January we have gotten a couple new board members and a new Board President. Mr. Jitin Kain has assumed the leadership as their Board Chair. He and I have met and the Board has changed some of their administrative bylaws and policies. As well, the whole Committee structure with regard to how they received information traditionally has been updated. The entire Board is receiving the information in advance of the meeting. Mr. Teshka has come on the Board as well. I don't want to say anything was ever bad. I've been with TRANSPO for over a decade and they are all very efficient people of good will. There was the one (1) administrative issue at the start of the year but other than that, it's really been a great year. I think these changes in place now will be able to ensure nothing like that happens again. Councilmember Jo M.Broden followed up,You mentioned ridership agreements. The South Bend Community School Corporation is looking at widening their walk radius for students to walk to school. I guess I would like to know if there is an ongoing relationship relative to our schools and transportation of students going to these public facilities. Is it on your radar or no? Mr. Kubaszak replied, Yes,there have been discussions with the South Bend School Corporation. I work on the finance end but I know there have been ongoing conversations with them. I can have our acting CEO and General Manager get back to you on that. Councilmember Oliver Davis stated, I just think that with the new changes they are talking about with the schools, it would be good for her to revisit that again. I believe the South Bend School 14