HomeMy WebLinkAbout47-16 Transpo Budget Ordinance,I pF transpo
south bend public
transportation corporation
Ha Hand Delivery
August 16, 2016
Mr. Tim Scott
President - City of South Bend Common Council
County - City Building - Room 4005
South Bend, IN 46601
Dear President Scott:
Enclosed please find an original and several copies of.
Filed in Clerk's office
AUG 1 `7 2016
KAREEmAH FOWLER
CfiYC ®&i EEND, IN
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION
CORPORTATION'S 2017 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE TAXATION
FOR THE PURPOSE OF RAISING REVNUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION
CORPORATION, SOUTH BEND, INDIANA, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2017
Due to a recent enactment of Indiana law, Transpo is required to submit its proposed budget and tax levy to the City of
South Bend Common Council (the "Council ") for adoption by the Council. Specifically, Indiana Code § 6- 1.1 -17 -20
requires that Transpo, as a political subdivision governed by a majority of unelected officials, submit its proposed budget
and property tax levy to the Council for adoption. Pursuant to I.C. § 6- 1.1- 17- 20(e), the Council should review Transpo's
budget and proposed tax levy and adopt a final budget and tax levy for Transpo.
Transpo's Board of Directors will vote to approve the budget and levy on September 19, 2016. The scheduled public
hearing of the budget with the South Bend Common Council is scheduled to be on September 26,2016
Transpo's budget was filed with the Common Council on August 16, 2016. Transpo will present this Ordinance to the
Council by its Controller, Christopher Kubaszak. Tranpso's General Counsel, Jamie C. Woods, may also attend along
with Members of Transpo's Board of Directors.
On behalf of Transpo's Board of Directors, the Council's assistance in this budget process is greatly appreciated.
Sincerely,
Z,--ak
David Cangany
General Manager/ CEO, South Bend Public Transportation Corporation
(574) 232 -9901 • FAX (574) 239 -2309. 1401 South Lafayette Blvd • South Bend, IN 46613
0
ORDINANCE NO.
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND
PUBLIC TRANSPORTATION CORPORATION'S 2017 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, 2017
Pursuant to Indiana law, the South Bend Public Transportation Corporation is required to submit
its proposed budget and tax levy to the Common Council of the City of South Bend for adoption.
Specifically, Indiana Code § 6- 1.1 -17 -20 requires that the South Bend Public Transportation
Corporation, as a political subdivision governed by a majority of unelected officials, submit its
proposed budget and property tax levy to the Common Council of the City of South Bend.
Pursuant to Indiana Code § 6- 1.1- 17- 20(e), the Common Council of the City of South Bend is
required to review the South Bend Public Transportation Corporation's budget and proposed tax
levy and adopt a final budget and tax levy for the South Bend Public Transportation Corporation.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA, as follows:
SECTION 1. The South Bend Public Transportation Corporation's budget for the year ending
December 31, 2017 in the sum of $13,407,761.00, as shown on Budget Form 4 -A, is
appropriated, adopted, approved and ordered set apart out of the several funds herein named and
for the purposes herein specified, subject to the laws governing the same. Such sums herein
appropriated shall be held to include all expenditures authorized to be made during the year,
unless otherwise expressly stipulated and provided for by law. In addition, for the purpose of
raising revenue to meet the necessary expenses of the South Bend Public Transportation
Corporation, a total property tax levy of $4,308,716.00 and a total tax rate of 0.1359 as shown on
Budget Form 4 -13 are also appropriated, approved and adopted.
SECTION 2. This Ordinance shall be in full force and effect from and after its passage by the
Common Council of the City of South Bend and approval by the Mayor.
Member, South Bend Common Council
Attest:
City Clerk
Presented by me to the Mayor of the City of South Bend, Indiana on the
2016, at o'clock ______. m
Approved and signed by me on the
at o'clock, —.m
1 it READING
PUBLIC NEARING
3 rd READING
NOT APPROVED
REFERRED
PASSED
day of
day of
City Clerk, Deputy
, 2016,
Mayor, City of South Bend, Indiana
Fled in Clerk's Office
AUG 1 7 2016
KAREENIAH FOWLER
CITY CLERK, SOUTH SEND, IN
Adik IF
tran P o
south bend public
transportation corporation
2017 FISCAL OPERATING 8 CAPITAL BUDGET
January 1, 2017 through December 31, 2017
Prepared By
South Bend Public Transportation Corporation
SOUTH BEND PUBLIC TRANSPORTATION CORPORATION
SOUTH BEND, INDIANA
2017 FISCAL YEAR BUDGET REQUEST
TABLE OF CONTENTS
BUDGET ESTIMATE FOR 2017
PROJECTIONS / ASSUMPTIONS
2017 Revenue Projection ..................................................... ..............................1
2017 Expense Projection
.....................................................
..............................2
2017 Appropriations .............................................................
..............................3
2017 Budget Assumptions
...................................................
..............................4
2017 Budget Policy Statements ...........................................
..............................6
2017 Budget Summaries by Category — All Accounts
.......... ..............................7
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TRANSPO
Budgeted Appropriations
Category
O eratin
Budget
Ca itaI
Bud et
Total 2017
Appropriations
2017
2016
2017
2016
Personnel Services
Other Services and Charges
Supplies
Capital Outlays
8,245,274
1,594,187
1,029,736
181,310
7,465,799
1,385,087
1,277,033
375,461
906,550
1,877,305
8,245,274
1,594,187
1,029,736
1,087,860
Total Appropriations
$11,050,508 1
$10,503,380 1
$ 906,550 1
$1,877,305 1
$ 11,957,058
A� trans P o
IF
2017 OPERATING BUDGET ASSUMPTIONS
REVENUES:
Federal, State, and Local: Historically, Transpo has been successful in securing
capital funds through Federal Capital Grants for major capital projects; however,
opportunities are becoming less common. Transpo continues to avail ourselves of
annual federal capital formula grant funds toward preventative maintenance and
operating assistance, such funds available for the operations budget. In 2017, the State
of Indiana has fixed a PMTF rate for the next two years and has made it a line item in
the State's Budget. We based the 2017 PMTF revenue on 2016 actual approved
budget. This caused our budget figure to increase by $45,082 from the 2016 budget.
Property Tax revenue was budgeted at a $168,843 increase from the prior year.
Ridership and Leases: Farebox revenues from regular services include a slight
decrease from our 2016 budgeted levels. Transpo Access has realized an increase in
ridership since 2008 and is expected to continue this trend in future years.
EXPENSES:
Employee Wages and Benefits: For 2017, Transpo budgeted, a slight increase in
wages for employees. Employee benefits reflect an estimated 6.68% increase over
2016. This increase is mainly due to an estimated increase of ten percent in health
insurance premiums and other employee benefits outlined in the collective bargaining
agreement and contingencies for future premiums given their historical trends.
Vehicular and Operating: Vehicular and other insurances costs will be maintained at
the 2016 budget. Diesel fuel has been budgeted at an average of $2.00 per gallon and
gasoline at $2.20 per gallon. In 2016, Transpo received an additional three CNG fueled
vehicles, increasing our total CNG vehicles to nineteen. Transpo budgeted a decrease,
in its overall fuel cost of $80,730. This decrease in fuel expenses should continue as
more fixed route vehicles are converted to CNG.
Utilities: Utility costs were budgeted with an increased from the 2016 forecasted levels.
Marketing: Marketing contracts, services, and advertising placement accounts have not
been changed from 2016 budgeted figures.
4
Training: The 2017 budgeted amounts increased from 2016 budgeted provisions.
Transpo plans to use federal grants to offset most of the cost associated with training.
The current budget provides continued opportunities for all positions.
Transfer — Capital Improvement Fund /Restricted Liability Reserve: The 2017
budget provides the opportunity to transfer up to $500,000 to the Capital Improvements
fund for future capital expenditures or deposit up to $500,000 into a restricted liability
reserve account, to be used pay off the second year installments on sixteen fixed route
vehicles.
➢ UPON THE ADOPTION OF THE ANNUAL BUDGET BY THE SOUTH BEND
PUBLIC TRANSPORTATION BOARD OF DIRECTORS, A MONTHLY BUDGET,
BASED ON HISTORICAL AND FUTURE TRENDS, WILL BE ESTABLISHED.
THIS WILL HELP FACILITATE THE MONTHLY REVIEW OF FINANCIAL
REPORTS BY BOARD MEMBERS AND INTERNAL MANAGEMENT.
5
trans P o
2017 OPERATING BUDGET POLICY STATEMENTS
FINANCIAL CAPACITY:
The proposed budget does not reflect any fare changes. A fare analysis may
be conducted and recommendations will follow, based upon the results of the
analysis.
2. Management will continue to search for investment, grant and funding
opportunities so as to maximize revenues.
3. Management will assure cash handling practices to safeguard funds in its
protection and toward timely collection of funds owed.
SERVICE POLICY:
4. A review of current services levels will be conducted and recommendations
will follow based upon the results of the analysis.
5. Management will continue to work within the current FTA charter regulations
and existing agreements with private charter providers in order to provide
charter services.
6. ACCESS service will be provided in accordance with all applicable FTA
guidelines.
MANAGEMENT:
7. A professional workforce will carry out our Mission Statement. Management
will assure fairness, even - handedness, consistency, and effective Equal
Employment Opportunity and Affirmative Action policies and practices.
8. Assumes continuation of team development, employee recognition, and
continuation of increased opportunities for employee training.
9. Assumes continued pursuit of programs of wellness and accident prevention
in an effort to stem, to whatever extent possible, rising insurance costs.
0
DEPARTMENT:
All
TRANSPO
2017 BUDGET SUBMISSION
ACCOUNT TITLE: Salaries & Wages Summary
2015 ACTUAL
$
5,077,761
2017 BUDGET REQUEST
$
5,806,671
2016 MONTHLY AVERAGE
$
434,460
2016 APPROVED BUDGET
$
5,574,841
2016 EST EXPENSE
$
5,213,517
BUDGET CHANGE
$
231,830
Account Title
2016
2017
Operators
$3,464,685
$ 3,548,243
Access Drivers & Clerk
464,052
460,277
Operations Administration
374,166
457,724
Revenue - Vehicle Maintenance
690,547
722,279
Maintenance Administration
119,725
123,792
Non - Revenue - Vehicle Maintenance
71,058
73,064
General Administration
347,242
421,292
Total
$5,531,475
$ 5,806,671
7
TRANSPO
2017 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Fringe Benefits Summary
2015 ACTUAL
$
2,153,932
2017 BUDGET REQUEST
$ 2,438,603
$ 444,211
2016 MONTHLY AVERAGE
$
180,826
2016 APPROVED BUDGET
$ 2,272,399
1,492,087
2016 EST EXPENSE
$
2,169,916
BUDGET CHANGE
$ 166,204
Account Title
2016
2017
FICA
$ 423,158
$ 444,211
Pension plan
211,694
248,694
Medical Insurance
1,377,570
1,492,087
Dental Insurance
50,477
53,878
Life Insurance
24,032
27,221
Short -Term Disability
22,189
20,664
Unemployment Insurance
10,925
10,925
Worker's Compensation
101,235
89,805
Uniforms
47,119
47,119
Tool Allowance
4,000
4,000
Total $2,272,399 $ 2,438,603
1;1
DEPARTMENT:
ACCOUNT TITLE:
TRANSPO
2017 BUDGET SUBMISSION
eau
Services Summary
2015 ACTUAL
$ 985,704
2017 BUDGET REQUEST
$ 452,661
2016 MONTHLY AVERAGE
$ 45,412
2016 APPROVED BUDGET
$ 525,599
2016 EST EXPENSE
$ 528,740
BUDGET CHANGE
$ (72,938)
Account Title
2016
2017
Management Service Fees
$ 263,868
$ -
Professional & Technical
274,939
190,939
Board Travel
10,000
10,000
Temporary Help
2,500
2,500
Contract Services
Operations
12,050
12,050
Contract Services
Maintenance
115,000
118,582
Contract Services
Administration
37,460
54,540
Security Services
64,050
64,050
Physical Damage Repairs
20,000
20,000
Recoveries of Physical Damage
Repairs
(20,000)
(20,000)
Total $ 779,867 $ 452,661
9
TRANSPO
2017 BUDGET SUBMISSION
DEPARTMENT:
All
ACCOUNT TITLE:
Materials & Supplies Summary
2015 ACTUAL
$
1,555,767 2017 BUDGET REQUEST
$ 1,029,736
2016 MONTHLY AVERAGE
$
70,666 2016 APPROVED BUDGET
$ 1,110,466
2016 EST EXPENSE
$
847,994 BUDGET CHANGE
$ (80,730)
Account Title
2016
2017
Fuel & Lubricants
Operations $
806,391
$ 727,122
Fuel & Lubricants
Maintenance
13,415
11,954
Tires & Tubes
Maintenance
2,560
2,560
Materials & Supplies
Operations
25,000
25,000
Materials & Supplies
Maintenance
210,000
210,000
Materials & Supplies
Marketing
35,600
35,600
Other Materials & Supplies
Operations
4,500
4,500
Other Materials & Supplies
Maintenance
2,600
2,600
Other Materials & Supplies
General Administration
10,400
10,400
Total $1,110,466 $ 1,029,736
10
2017 BUDGET SUBMISSION
DEPARTMENT: Administration & Maintenance
ACCOUNT TITLE: Utilities
ACCOUNT NUMBER: 505 - 0x50 -00 505- Ox2x -00
2015 ACTUAL $ 263,460 2017 BUDGET REQUEST $ 278,857
2016 MONTHLY AVERAGE $ 22,582 2016 APPROVED BUDGET $ 278,857
2016 EST EXPENSE $ 270,980 BUDGET CHANGE $ 0
Account Title 2016 2017
Electricity
Electricity -CNG
Water & Sewage
Trash Collection
Telephone
Natural Gas
11
$
98,014
$
98,014
$
45,941
$
45,941
$
16,654
$
16,654
$
5,000
$
5,000
$
34,000
$
34,000
$
79,248
$
79,248
Totals $
278,857
$
278,857
TRANSPO
2017 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Insurance Summary
2015 ACTUAL
$
215,752
2017 BUDGET REQUEST
$ 230,477
2016 MONTHLY AVERAGE
$
17,592
2016 APPROVED BUDGET
$ 230,477
2016 EST EXPENSE
$
211,108
BUDGET CHANGE
$ -
Insurance - Liability & Physical Damage $ 224,192
Other Corporate Insurance 6,285
Total $ 230,477
12
TRANSPO
2017 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Miscellaneous Summary
2015 ACTUAL $ 185,740 2017 BUDGET REQUEST $ 132,192
2016 MONTHLY AVERAGE $ 13,994 2016 APPROVED BUDGET $ 121,835
2016 EST EXPENSE $ 187,928 BUDGET CHANGE $ 10,357
Account Title 2016 2017
Dues & Subscriptions $ 27,835
Travel & Meetings 20,000
Community Services 15,000
Promotion 3,000
Advertising Placements 45,500
Interest Expense on Tax Warrants 10,500
Total $ 121,835
13
$ 25,192
30,000
15,000
6,000
45,500
10,500
$ 132,192
2017 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Transfer - Capital Improvement Fund /Reserve for Liability
ACCOUNT NUMBER: 301 - 0101 -00
2015 ACTUAL $ - 2017 BUDGET REQUEST $ 500,000
2016 MONTHLY AVERAGE 2016 APPROVED BUDGET $ 500,000
2016 EST EXPENSE BUDGET CHANGE $ -
This account is used for the transfer to the Capital Improvement Fund for the
"Local Share" or to fund a reserve for future liabilities. The capital expenditures
are detailed in the monthly Capital Improvement resolutions.
Loan Payment $ 500,000
Detail of Capital Funds required to match existing grants on following page
Total $ 500,000
14
DEPARTMENT:
ACCOUNT TITLE:
ACCOUNT NUMBER:
TRANSPO
2017 BUDGET SUBMISSION
All
Capital Fund Requirements
301 - 0101 -00
2015 ACTUAL
$ 6,121,744
2017 BUDGET REQUEST
$ 906,550
$
2016 MONTHLY AVERAGE
$ 173,785
2016 APPROVED BUDGET $ 1,043,138
2016 EST EXPENSE
$ 2,085,425
BUDGET CHANGE
$ (136,588)
Grant -IN -90 -X650 $
300,000
$$$
FTA/State
Total
Grant Number
Available
Funded
Required
Grant- IN -04 -0053 $
1,612,750
$
1,290,200
$
322,550
Grant IN -90 -X628 $
120,000
$
96,000
$
24,000
Grant -IN -90 -X650 $
300,000
$
240,000
$
60,000
Grant -IN -90 -X685 $
500,000
$
400,000
$
100,000
2016 -2017 FTA GRANT $ 2,000,000
Total $ 4,532,750
15
$ 1,600,000 $ 400,000
$ 3,626,200 $ 906,550
TRANSPO
2017 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Passenger Fares Summary
ACCOUNT NUMBER: 413 - 0100 -00
Account Title
2016
2017
Passenger Revenue
$ 802,698
2015 ACTUAL:
2016 AVERAGE:
2016 ESTIMATED:
$
$
$
1,408,767
117,420
1,409,034
2017 BUDGET REQUEST
2016 APPROVED BUDGET
BUDGET CHANGE:
$ 1,469,079
$ 1,504,253
$ (35,174)
Account Title
2016
2017
Passenger Revenue
$ 802,698
$ 775,121
Access Passenger Revenue
51,187
49,218
Access Punch Card Revenue
73,321
88,719
Passport Revenue
166,075
152,250
Student Pass Revenue
41,130
40,560
Tripper Revenue
9,623
9,623
Two Ride Pass Revenue
-
Two Week Pass
90,048
99,072
One Day Pass
263,721
250,617
Student Summer Pass
6,450
3,900
$ 1,504,252 $ 1,469, 079
16