HomeMy WebLinkAbout54-17 TRANSPO Budget Filed in Clerk's Office
transpo
south bend public AUG 2 3 2017
transportation corporation KAFiEEMAH FOWLER
Via Hand Delivery CITY CLERK,SOUTH BEND,IN
August 22,2017
Mr. Tim Scott
President-City of South Bend Common Council
County-City Building-Room 400S
South Bend, IN 46601
Dear President Scott:
Enclosed please find an original and several copies of:
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION
CORPORTATION'S 2018 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, 2018
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 18, 2017. The scheduled public
hearing of the budget with South Bend Common Council is scheduled to be on September 25, 2017.
Transpo's budget was filed with the Common Council on August 22, 2017. 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,
David Cangany
General Manager and Chief Executive Officer
(574) 232-9901 • FAX (574) 239-2309 • 1401 South Lafayette Blvd • South Bend, IN 46613
Bill No. 54-17
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 2018 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, 2018
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, 2018 in the sum of$13,505,827.00, as shown on Budget Form 4-A, filed with the
Common Council on August 22, 2017, 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$4,481,065.00 and a total
tax rate of 0.1422 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 approved 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 day of
2017, at o'clock_. m
City Clerk, Deputy
Approved and signed by me on the day of , 2017,
at o'clock, —.m
Mayor, City of South Bend, Indiana
Filed in Clerk's Office
5t READING 017
PUBLIC HEARING AUG 2 3 2
3 rd READING
NOT APPROVED KAREEMAH FOWLER
REFERRED CITY CLERK,SOUTH REND, IN
'SASSED
SOUTH BEND PUBLIC TRANSPORTATION CORPORATION
SOUTH BEND, INDIANA
2018 FISCAL YEAR BUDGET REQUEST
TABLE OF CONTENTS
BUDGET ESTIMATE FOR 2017
PROJECTIONS / ASSUMPTIONS
2018 Revenue Projection....................................................................................1
2018 Expense Projection....................................................................................2
2018 Appropriations............................................................................................3
2018 Budget Assumptions..................................................................................4
2018 Budget Policy Statements..........................................................................6
2018 Budget Summaries by Category— All Accounts.........................................7
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TRANSPO
Budgeted Appropriations
Operating Budget Capital Bud et Total 2018
Category 2018 2017 2018 2017 Appropriations
Personnel Services 8,005,711 8,245,274 8,005,711
Other Services and Charges 1,641,092 1,594,187 1,641,092
Supplies 1,015,466 1,029,736 1,015,466
Capital Outlays 239,620 181,310 1,087,860 1,043,138 1,327,480
Total Appropriations $10,901,888 $11,050,507 $ 1,087,860 $1,043,138 $ 11,989,748
3
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2018 OPERATING BUDGET ASSUMPTIONS
REVENUES:
Federal, State, and Local: In the past, Transpo has been successful in securing
adequate funding through Federal Capital Grants for major capital projects; however,
funding opportunities are decreasing. Transpo is able to continue to avail ourselves of
annual federal capital formula grant funds toward preventative maintenance and
operating assistance, such funds available to the operations budget. In 2018, the State
of Indiana has fixed PMTF rate for the next two years and has made it a line item in the
State's Budget. We based the 2018 PMTF revenue on discussion with Indiana
Department of Transportation. This caused our budget figure to be increase by
$101,475 from the 2017 budget. Property Tax revenue was budgeted at $51,386
increase from the prior year.
Ridership and Revenue: Transpo has entered into new contracts with Notre Dame and
St. Mary's College's in 2017 that have provided increases in farebox revenues. Transpo
is also looking into other options to increase future revenues, for example the DTSB
Game Day express that will begin this fall. 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 2018, Transpo budgeted, a slight decrease in
wages for employees. Employee benefits reflect an estimated decrease of 10.63% from
2017 budget. This decrease is mainly due to changing health insurance carriers in
2017.
Vehicular and Operating: Vehicular and other insurances costs will be maintained at
the 2017 budget. Diesel fuel has been budgeted at an average of $2.00 per gallon and
gasoline at $2.00 per gallon. In 2017, Transpo received an additional three CNG fueled
vehicles, increasing our total CNG vehicles to twenty-two. Transpo budgeted a
decrease, in its overall fuel cost, of $86,605. This decrease in fuel expenses should
continue to as more of fixed route vehicles are converted to CNG.
Utilities: Utility costs were budgeted with an increased from the 2017 forecasted levels.
Marketing: Marketing contracts, services, and advertising placement accounts have not
been changed from 2017 budgeted figures.
4
I
Training: The 2018 budgeted amounts increased from 2017 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 2018
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
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2018 OPERATING BUDGET POLICY STATEMENTS
FINANCIAL CAPACITY:
1. Management will continue to search for investment, grant and funding
opportunities so as to maximize revenues.
2. Management will assure cash handling practices to safeguard funds in its
protection and toward timely collection of funds owed.
SERVICE POLICY:
3. A review of current services levels will be conducted and recommendations
will follow based upon the results of the analysis.
4. Access service will be provided in accordance with all applicable FTA
guidelines.
MANAGEMENT:
5. 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.
6. Assumes continuation of team development, employee recognition, and
continuation of increased opportunities for employee training.
7. Assumes continued pursuit of programs of wellness and accident prevention
in an effort to stem, to whatever extent possible, rising insurance costs.
6
TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Salaries & Wages Summary
2016 ACTUAL $ 5,036,056 2018 BUDGET REQUEST $ 5,801,603
2017 MONTHLY AVERAGE $ 444,901 2017 APPROVED BUDGET $ 5,806,671
2017 EST EXPENSE $ 5,338,806 BUDGET CHANGE $ (5,068)
Account Title 2017 2018
Operators $3,548,243 $ 3,486,899
Access Drivers & Clerk 460,277 472,854
Operations Administration 457,724 525,115
Revenue-Vehicle Maintenance 722,279 686,318
Maintenance Administration 123,792 127,216
Non-Revenue-Vehicle Maintenance 73,064 74,136
General Administration 421,292 429,065
Total $5,806,671 $ 5,801,603
7
TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Fringe Benefits Summary
2016 ACTUAL $ 1,779,272 2018 BUDGET REQUEST $ 2,204,108
2017 MONTHLY AVERAGE $ 163,404 2017 APPROVED BUDGET $ 2,438,604
2017 EST EXPENSE $ 1,960,847 BUDGET CHANGE $ (234,496)
Account Title 2017 2018
FICA $ 444,211 $ 443,822
Pension plan 248,694 257,216
Medical Insurance 1,492,087 1,245,731
Dental Insurance 53,878 54,464
Life Insurance 27,221 28,000
Short-Term Disability 20,664 21,420
Unemployment Insurance 10,925 11,246
Worker's Compensation 89,805 89,654
Uniforms 47,119 48,555
Tool Allowance 4,000 4,000
Total $2,438,604 $ 2,204,108
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TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Services Summary
2016 ACTUAL $ 984,072 2018 BUDGET REQUEST $ 479,200
2017 MONTHLY AVERAGE $ 45,751 2017 APPROVED BUDGET $ 502,661
2017 EST EXPENSE $ 551,509 BUDGET CHANGE $ (23,461)
Account Title 2017 2018
Professional & Technical $ 240,939 $ 205,939
Board Travel 10,000 10,000
Temporary Help 2,500 2,500
Contract Services Operations 12,050 12,050
Contract Services Maintenance 118,582 130,121
Contract Services Administration 54,540 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 $ 502,661 $ 479,200
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TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Materials& Supplies Summary
2016 ACTUAL $ 1,479,781 2018 BUDGET REQUEST $ 1,015,465
2017 MONTHLY AVERAGE $ 52,285 2017 APPROVED BUDGET $ 813,732
2017 EST EXPENSE $ 627,425 BUDGET CHANGE $ 201,733
Account Title 2017 2018
Fuel & Lubricants Operations $ 511,118 $ 640,517
Fuel & Lubricants Maintenance 11,954 10,981
Tires &Tubes Maintenance 2,560 2,560
Materials&Supplies Operations 25,000 25;000
Materials & Supplies Maintenance 210,000 285,307
Materials & Supplies Marketing 35,600 33,600
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 $ 813,732 $ 1,015,465
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TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: Administration & Maintenance
ACCOUNT TITLE: Utilities
ACCOUNT NUMBER: 505-0x50-00 505-Ox2x-00
2016 ACTUAL $ 209,394 2018 BUDGET REQUEST $ 299,223
2017 MONTHLY AVERAGE $ 21,906 2017 APPROVED BUDGET $ 278,857
2017 EST EXPENSE $ 262,868 BUDGET CHANGE $ 20,366
Account Title 2017 2018
Electricity $ 98,014 $ 98,014
Electricity-CNG $ 45,941 $ 65,307
Water& Sewage $ 16,654 $ 16,654
Trash Collection $ 5,000 $ 6,000
Telephone $ 34,000 $ 34,000
Natural Gas $ 79,248 $ 79,248
Totals $ 278,857 $ 299,223
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TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Insurance Summary
2016 ACTUAL $ 190,051 2018 BUDGET REQUEST $ 230,477
2017 MONTHLY AVERAGE $ 17,592 2017 APPROVED BUDGET $ 230,477
2017 EST EXPENSE $ 211,108 BUDGET CHANGE $ -
Insurance - Liability & Physical Damage $ 224,192
Other Corporate Insurance 6,285
Total $ 230,477
12
TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Miscellaneous Summary
2016 ACTUAL $ 151,083 2018 BUDGET REQUEST $ 1321192
2017 MONTHLY AVERAGE $ 15,522 2017 APPROVED BUDGET $ 132,192
2017 EST EXPENSE $ 188,537 BUDGET CHANGE $ -
Account Title 2017 2018
i
Dues & Subscriptions $ 25,192 $ 25,192
Travel & Meetings 30,000 30,000
Community Services 15,000 15,000
Promotion 6,000 6,000
Advertising Placements 45,500 45,500
Interest Expense on Tax Warrants/Loans 10,500 10,500
Total $ 132,192 $ 132,192
13
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Transfer - Capital Improvement Fund/Reserve for Liability
ACCOUNT NUMBER: 301-0101-00
2016 ACTUAL $ - 2018 BUDGET REQUEST $ 500,000
2017 MONTHLY AVERAGE $ 41,667 2017 APPROVED BUDGET $ 450,000
2017 EST EXPENSE $ 500,000 BUDGET CHANGE $ 50,000
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
Total $ 500,000
14
TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Capital Fund Requirements
ACCOUNT NUMBER: 301-0101-00
2016 ACTUAL $ 6,121,744 2018 BUDGET REQUEST $ 1,087,860
2017 MONTHLY AVERAGE $ 173,785 2017 APPROVED BUDGET $ 1,043,138
2017 EST EXPENSE $ 2,085,425 BUDGET CHANGE $ 44,722
$$$ FTA/State Total
Grant Number Available Funded Required
Grant- IN-34-019
$ 56,391 $ 45,113 $ 11,278
Grant- IN-95-0048 $ 185,097 $ 148,078 $ 37,019
Grant- IN-04-0053 $ 1,600,000 $ 1,290,200 $ 309,800
Grant IN-16-21 $ 26,000 $ 26,000
Grant-IN-90-X650 $ 100,000 $ 80,000 $ 20,000
Grant-IN-90-X685 $ 200,000 $ 160,000 $ 400,000
Grant- IN- 90-X694 $ 100,000 $ 80,000 $ 20,000
2016-2017 FTA GRANT $ 2,000,000 $ 1,600,000 $ 400,000
Total $ 4,267,488 $ 3,429,390 $ 1,198,098
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TRANSPO
2018 BUDGET SUBMISSION
DEPARTMENT: All
ACCOUNT TITLE: Passenger Fares Summary
ACCOUNT NUMBER: 413-0100-00
2016 ACTUAL: $ 1,408,767 2018 BUDGET REQUEST $ 1,642,051
2017 AVERAGE: $ 117,420 2017 APPROVED BUDGET $ 1,504,253
2017 ESTIMATED: $ 1,409,034 BUDGET CHANGE: $ 137,798
Account Title 2017 2018
Passenger Revenue $ 802,698 $ 778,419
Access Passenger Revenue 51,187 63,013
Access Punch Card Revenue 73,321 104,770
Passport Revenue 166,075 189,840
Student Pass Revenue 41,130 47,320
Tripper Revenue 9,623 9,676
Two Week Pass 90,048 133,254
One Day Pass 263,721 311,860
Student Summer Pass 6,450 3,900
$ 1,504,252 $ 1,642,051
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