44-20 Ordinance Appropriating,Adopting, and Approving the South Bend Public Transportation Corporation's 2021 Budget

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transpo 2021 OPERATING BUDGET ASSUMPTIONS REVENUES: Federal, State, and Local: Transpo continues to avail ourselves of annual federal capital formula grant funds for preventative maintenance and operating assistance. The application of such funds towards the operating budget assists with offsetting loss in revenues from the State of Indiana's Public Mass Transportation Fund (PMTF) and local Property Tax revenue. This allocation decreases the funds available for routine maintenance and equipment replacement. A decrease in PMTF funding is anticipated for 2021. Ridership and Revenue: After several years of decreasing fixed route ridership, Transpo had five consecutive months of increasing ridership in late 2019 and early 2020. With the onset of COVID-19 in March 2020, ridership and passenger revenue decreased dramatically. As a result, Transpo implemented a reduced service schedule in April 2020. Transpo resumed full service in July 2020; however, fixed route ridership continues to be down approximately 50%. Transpo's Access paratransit ridership and revenue also decreased dramatically and continues to be down over 50%. It is anticipated that ridership and revenue recovery will be a long-term process. Transpo has renewed ridership programs with the University of Notre Dame, Saint Mary's College, Holy Cross College and Ivy Tech Community College. In addition, Transpo is in the process of finalizing ridership programs with South Bend Community School Corporation, School City of Mishawaka and Purdue Polytechnic High School. CARES Act: Transpo was awarded $8.5 million in funding of the CARES Act which will be used towards COVID-19 expenditures, the purchase fixed route and paratransit replacement vehicles, preventative maintenance, and operating assistance. EXPENSES: COVID-19: Significant costs were incurred in preventative measures, increased cleaning and disinfecting protocols and ensuring Personal Protective Equipment (PPE) remains available for all employees and the general public utilizing Transpo's services. Employee Waaes and Benefits: For 2021, Transpo budgeted, a slight increase in wages for employees and benefits from the 2020 budget. This is mainly due to an anticipated increase in health insurance premiums and pension contributions (to be determined during the collective bargaining process).