09-23-2024 Common Council Meeting Minutes (2)

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REGULAR MEETING September 23, 2024 Councilmember Rachel Tomas Morgan—Aye 51-24 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION'S 2025 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE.TAXATION FOR THE PURPOSE OF RAISING REVENUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION, SOUTH BEND, INDIANA,FOR THE FISCAL YEAR ENDING DECEMBER 31, 2025 (PUBLIC HEARING ONLY) Clerk Tirado read the bill to the Council for its second (2nd)reading. After the second (2nd) reading, Councilmember Lee requested the committee report. Council Vice President Niezgodski stated that Bill No. 51-24 went before the Personnel and Finance Committee and comes with a favorable recommendation. Councilmember Lee requested that the petitioner(s) state their name and address and share key points before the Council. Amy Hill, General Manager & Chief Executive Officer (CEO) of Traspo, with offices at 1401 South LaFayette Boulevard, South Bend, IN 46613,gave an overview of the 2025 Transpo budget. Transpo has one hundred and six (106) employees. Transpo operates fifty (50) fixed-route buses and twenty (20) paratransit vans. The paratransit vans are designed for individuals who may, because of a disability, not be able to ride the regular fixed route service. There is an application process for that service that requires medical certification. 2024 is the first (Is`) year with one hundred percent (100%) of Transpo's fixed route fleet fueled by compressed natural gas (CNG). The first (Is') CNG buses will be eligible for replacement in 2026. The CNG buses are used for twelve (12) years before being replaced. The paratransit vehicles can be used for five (5) years before being replaced. The paratransit vehicles have doubled in cost over the last four(4)years.A fuel feasibility study is being conducted to be eligible for Federal grants. Technology upgrades include real-time information, bus tracking, and automated next stop/American with Disabilities Act (ADA) announcements in 2025. Amy Hill stated that Transpo has been focused on expanding its ridership programs. The K-12 Summer Travel Program saw a record-setting thirty-seven thousand (37,000)rides in June, July, and August. Retaining fleet operators has been challenging, but Transpo is close to being fully staffed. The 2025 budget has increased by sixteen thousand dollars($16,000)over the 2024 budget. Most of the tax revenue is from property taxes, about four million dollars ($4,000,000) annually. Two hundred and sixty thousand dollars ($260,000) come from the excise tax and eight hundred thousand dollars ($800,000) from the local income tax. The Public Mass Transportation Fund(PMTF)funds all public transportation agencies state-wide.This funding has not been increased in ten(10)years.The Federal funding will be down nearly twenty percent (20%) in 2025. It is one dollar($1) to ride the fixed route service and two dollars ($2) for the paratransit service. It costs Transpo about eight dollars ($8) for a fixed route ride and twelve dollars ($12) for a paratransit ride. Leased revenue is down as Transpo has one(1)parking garage left that it leases to the City. That lease will end in 2025, and ownership of the parking garage will be turned over to the City. Seventy-seven percent (77%) of the Transpo budget are wages and benefits. The benefits have remained flat due to Transpo being a part of the St. Joseph County Health Plan. Fuel expenses have remained flat. From 2021 through 2023, Transpo has had clean financial audits. The operating budget has increased as Transpo has come closer to being fully staffed.Amy Hill stated that funding uncertainty is always an issue. State and Federal funding for public transportation is uncertain in the next few years. Ridership continues to increase at ninety percent (90%) of pre-pandemic levels. The CONNECT Transit Plan will start to be implemented in 2025. Councilmember Lee held the public hearing, and nobody spoke. 9