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Filed in Clerk's Office <br /> OCT 1 1 2024 <br /> Bianca Tirado • <br /> City Clerk,South Bend, IN <br /> Al& <br /> transpo <br /> 2025 OPERATING BUDGET ASSUMPTIONS <br /> REVENUES: <br /> Federal, State, and Local: Transpo continues to avail ourselves of annual federal <br /> capital formula grant funds for preventative maintenance and operating assistance. The <br /> application of such funds towards the operating budget assists with offsetting any <br /> increased expenses. In the past year, expenses have been increasing greater than <br /> revenues. This has increased the challenge of providing a balanced budget. Transpo <br /> will continue to pursue competitive grant opportunities to fund capital improvements and <br /> expenses. <br /> Ridership and Revenue: Transpo, like public transportation agencies across the <br /> country, continues to rebuild ridership following the COVID-19 Pandemic. The 2022 <br /> ridership was 72% of pre-pandemic ridership and 2023 improved to 80% of pre- <br /> pandemic ridership, keeping in line with national trends. Year-to-date through May 2024, <br /> ridership is up approximately 15% compared to 2023. <br /> Transpo continues to build on existing ridership programs with the University of Notre <br /> Dame, Saint Mary's College, Holy Cross College, Indiana University South Bend, Ivy <br /> Tech Community College, South Bend Community School Corporation, School City of <br /> Mishawaka, Purdue Polytechnic High School and Saint Joseph High. The success of the <br /> ridership programs was evidenced by a 48% increase in ridership for the South Bend <br /> Community School Corporation 2023-2024 school year <br /> EXPENSES: <br /> Employee Wages and Benefits: For 2025, Transpo budgeted an increase in wages <br /> and employee benefits from the 2024 budget. Wage increases are dictated by <br /> Collective bargaining agreements. Health insurance premiums have remained <br /> unchanged, for the fourth year in a row, in the 2025 budget. <br /> Vehicular and Operating: 2024 is the first full year providing fixed route service with a <br /> 100% Natural Gas (CNG) fleet. As a result, Transpo is saving over one dollar per gallon <br /> with CNG as compared to diesel fuel over the past year. <br /> Transfer — Capital Improvement Fund/Restricted Liability Reserve: The 2025 <br /> budget does not provide the opportunity to transfer funds into the capital account to fund <br /> capital purchases. If at the end of 2025, a budget surplus would occur, the surplus <br /> would be transferred to the capital account to fund 2026 capital purchases. <br /> 4 <br />