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i p <br />2014 OPERATING BUDGET ASSUMPTIONS <br />REVENUES: <br />Federal. State. and Local: Given past and continued 'success in securing adequate <br />capital funds through congressionally designated funding for major capital projects, we <br />are able to continue to avail ourselves of annual federal capital formula grant funds <br />toward preventative maintenance and education /training, making such funds available to <br />the operations budget. In 2014, the State of Indiana has fixed PMTF rate for the next two <br />years and has made it a line item in the State's Budget. We based the 2014 PMTF <br />revenue on 2013 actual approved budget. This caused our budget figure to be <br />decreased 13% from 2013 budget. Property Tax revenue was budgeted at $67,800 <br />more than prior year. <br />Ridership and Leases: Farebox revenues from regular services include a 3.51% <br />increase from our 2013 forecasted levels. The revenue increase is due the service <br />agreement changes with local universities and new summer pass. TRANSPO ACCESS <br />has realized an increase in ridership since 2008 and is expected to continue this trend in <br />future years. Lease revenues reflect current tenant agreements and renewals of existing <br />contracts. <br />EXPENSES: <br />Employee Wages and Benefits: TRANSPO will see an increase in wages for all <br />employees in 2014. due to the finalization of a three year collective bargaining <br />agreement in 2012. Employee benefits reflect an estimated 3.30% increase over 2013. <br />This increase is mainly due to an estimated increase of five percent in health insurance <br />premiums. Other benefits reflect current bargaining agreement terms and contingencies <br />for future premiums given their historical trends. <br />Vehicular and Operating: Vehicular and commercial insurance costs increased from <br />the 2013 budget. Diesel fuel has been budgeted at an average of $3.07 per gallon and <br />gasoline at $3.30 per gallon. Both of these markets have been extremely volatile and it is <br />projected that future world developments could cause costs to increase. <br />Utilities: Utility costs have been budgeted at no increase form the 2013 forecasted <br />levels, due to TRANSPO cost savings experienced in the new Administration, <br />Maintenance and Operations facility. <br />Mar_ ketina: Marketing contracts, services, and advertising placement accounts have not <br />been changed from 2013 budgeted figures. <br />4 <br />