The URL can be used to link to this page

Home My WebLink AboutX. 2014 Budget Hearing Session 7: Transpo Budget 09-16-13SOUTH BEND PUBLIC TRANSPORTATION CORPORATION I/--- I" 771�- 2014 FISCAL OPERATING & CAPITAL BUDGET January 1, 2014 through December 31, 2014 Prepared By South Bend Public Transportation Accounting Staff SOUTH BEND PUBLIC TRANSPORTATION CORPORATION SOUTH BEND, INDIANA 2014 FISCAL YEAR BUDGET REQUEST TABLE OF CONTENTS BUDGET ESTIMATE FOR 2014 PROJECTIONS / ASSUMPTIONS 2014 Revenue Projection ...................................................... ..............................1 2014 Expense Projection .............................. ............................... ................... ....2 2014 Appropriations .............................................................. ..............................3 2014 Budget Assumptions .................................................... ..............................4 2014 Budget Policy Statements ............................................ ..............................6 2014 Budget Summaries by Category — All Accounts ..... ............................... 7 2014 Capital Requirement ....................................... .............................15 SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2014 REVENUE PROJECTION % CHANGE - 2012 BUDGET VS. 2014 BUDGET 2013 BUDGET 2012 ACTUAL SOURCE 3.51% 2.18% 0.00% 0.00% FAREBOX $ 1,450,230 $ 1,401,113 $ 1,419,226 0.00% -6.48% CHARTER 75.59% $ - $ - $ - 257.22% 2.50% -2.38% ADVERTISING $ 72,000 $ 54,000 $ 54,300 0.00./.l 0.00% LEASE REVENUE 29.57% $ 174,636 $ 174,636 $ 186,736 - 27.18% 0.00% 24.59% CONCESSIONS AND MISCELLANEOUS $ 51,800 $ 27,852 $ 29,500 NA NA INTEREST INCOME N/A $ 12,910 $ 12,845 $ 3,614 0.00% 2.93% -0.38% PROPERTY TAX $ 2,775,000 $ 2,707,200 $ 2,842,622 LICENSE EXCISE TAX $ 200,000 $ 200,000 $ 198,670 FINANCIAL INSTITUTION TAX $ - is - $ - OPTION INCOME TAX $ 396,000 $ 372,000 $ 305,620 STATE ASSISTANCE $ 2,100,000 $ 2,400,000 $ 2,883,983 FEDERAL PREVENTIVE MAINTENANCE $ 1,770,000 $ 1,770,000 $ 1,420,709 FEDERAL ASSISTANCE is 396,000 $ - $ 90,913 FEDERAL EDUCATION & TRAINING Is - $ - $ - FEDERAL ALTERNATIVE FUEL $ - $ - $ - LEASE PAYMENT FROM CITY $ 400,000 $ 400,000 $ 400,000 TOTAL $ 9,798,576 $ 9,519,646 $ 9,835,893 % CHANGE - 2012 BUDGET VS. 2013 BUDGET 2012 ACTUAL 3.51% 2.18% 0.00% 0.00% 33.33%1 32.60% 0.00% -6.48% 85.98°% 75.59% 0.51%1 257.22% 2.50% -2.38% 0.00% 0.67% 0.00./.l 0.00% 6.45% 29.57% - 12.50% - 27.18% 0.00% 24.59% 0.00% 0.00% NA NA NIA N/A 0.00% 0.00% 2.93% -0.38% SOUTH BEND PUBLIC TR,4NSPORTAT!ON CORPORATION 2014 EXPENSE PROJECTION 2014 2013 2012 Expense Category BUDGET BUDGET ACTUAL 2013 BUDGET 2012 ACTUAL Tangible Property / Ficed Assets $ - $ - $ - N/A N/A Salaries & Wages $ 5,063,271 $ 4,910,940 $ 4,941,995 3.10% 2.45% Fringe Benefits $ 1,992,169 $ 1,928,616 $ 1,824,723 3.30% 9.18% Services $ 740,018 $ 824,826 $ 1,354,055 - 10.28% - 45.35% Materials & Supplies $ 1,411,863 $ 1,240,471 $ 1,754,410 13.82% - 19.52% Utilities $ 209,267 $ 209,267 $ 174,807 0.00% 19.71 % Insurance $ 235,477 $ 246,977 $ 207,978 - 4.66% 13.22% Other Taxes $ - $ - $ - N/A N/A Miscellaneous $ 105,335 $ 84,070 $ 67,991 25.29% 54.920L SUB -TOTAL $ 9,757,400 $ 9,445,168 $10,325,959 3.31% -5.51% Transfer - Capital Improvements / Reserve for Liabilit $ 41,176 $ 74,480 $ - - 44.72% 100.00% TOTAL 1 $ 93798,576 1 $ 9,519,6461 $10,325,959 1 2.930/6 - 5.11% 1 TRANSPO Budgeted Appropriations Category O eratin Budget Capital Bud et Total 2013 Appropriations 2014 2013 2014 2013 Personnel Services Other Services and Charges Supplies Capital Outlays 7,055,439 1,331,273 1,411,863 354,000 6,839,556 1,469,620 1,240,471 390,000 1,983,550 795,904 7,055,439 1,331,273 1,411,863 2,337,550 Total Appropriations $10,152,576 1 $ 9,939,647 1 $ 1,983,550 $ 7951904 $ 12,136,126 l 'Ali a 2014 OPERATING BUDGET ASSUMPTIONS REVENUES: Federal, State, and Local: Given past and continued success in securing adequate capital funds through congressionally designated funding for major capital projects, we are able to continue to avail ourselves of annual federal capital formula grant funds toward preventative maintenance and education /training, making such funds available to the operations budget. In 2014, 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 2014 PMTF revenue on 2013 actual approved budget. This caused our budget figure to be decreased 13% from 2013 budget. Property Tax revenue v ✓as budgeted at $67,800 more than prior year. Ridership and Leases: Farebox revenues from regular services include a 3.51% increase from our 2013 forecasted levels. The revenue increase is due the service agreement changes with local universities and new summer pass. TRANSPO ACCESS has realized an increase in ridership since 2008 and is expected to continue this trend in future years. Lease revenues reflect current tenant agreements and renewals of existing contracts. EXPENSES: Employee Wages and Benefits: TRANSPO will see an increase in wages for all employees in 2014. due to the finalization of a three year collective bargaining agreement in 2012. Employee benefits reflect an estimated 3.30% increase over 2013. This increase is mainly due to an estimated increase of five percent in health insurance premiums. Other benefits reflect current bargaining agreement terms and contingencies for future premiums given their historical trends. Vehicular and Operating: Vehicular and commercial insurance costs increased from the 2013 budget. Diesel fuel has been budgeted at an average of $3.07 per gallon and gasoline at $3.30 per gallon. Both of these markets have been extremely volatile and it is projected that future world developments could cause costs to increase, Utilities: Utility costs have been budgeted at no increase form the 2013 forecasted levels, due to TRANSPO cost savings experienced in the new Administration, Maintenance and Operations facility. Marketing: Marketing contracts, services, and advertising placement accounts have not been changed from 2013 budgeted figures. 4 Training: The 2014 budgeted amounts increased from 2013 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 2014 budget provides the opportunity to transfer up to $41,176 to the Capital Improvements fund for future capital expenditures or deposit up to $41,176 into a restricted liability reserve account, to be used for general liability purposes. v 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 e5 2014 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, DEPARTMENT: ACCOUNT TITLE: TRANSPO 2014 BUDGET SUBMISSION All Salaries & Wages Summary 2012 ACTUAL $ 4,933,658 2014 BUDGET REQUEST $ 5,063,271 2013 APPROVED BUDGET $ 4,910,940 BUDGET CHANGE $ 152,331 Account Title Operators Access Drivers & Clerk Operations Administration Revenue - Vehicle Maintenance Maintenance Administration Non - Revenue - Vehicle Maintenance General Administration Total 7 2013 2014 $3,081,293 $ 3,168,660 344,042 352,799 308,637 364,312 660,670 637,598 124,945 131,288 102,036 71,006 289,317 337,607 $4,910,940 $ 5,063,271 TRANSPO 2414 BUDGET SUBMISSION DEPARTMENT; All ACCOUNT TITLE: Fringe Benefits Summary 2012 ACTUAL $1,805,942 2014 BUDGET REQUEST $ 1,992,169 2013 APPROVED BUDGET $ 1,928,616 BUDGET CHANGE $ 63,553 Account Title 2013 2014 FICA $ 375,687 Pension plan 211,694 Medical Insurance 1,101,551 Dental Insurance 44,154 Life Insurance 26,730 Short -Term Disability 18,412 Unemployment Insurance 12,423 Worker's Compensation 88,198 Uniforms 46,267 Tool Allowance 3,500 Total $1,928,616 0 $ 387,341 214,535 1,155,878 47,775 21,478 17,968 11,032 85,700 46,462 4,000 $ 1,992,169 TRANSPO 2014 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Services Summary /fad. -ft 7w - "l[ _ - _ _ _11 - , i_glinll Yi.B 0rhUMI:n w7a=40WA . - .f.— "�_ 2012 ACTUAL $1,218,960 2014 BUDGET REQUEST $ 740,018 2013 APPROVED BUDGET $ 710,656 BUDGET CHANGE $ 29,362 Account Title 2013 2014 Management Service Fees $ 253,407 $ 255,469 Advertising Fees 7,500 7,500 Professional & Technical 254,039 279,039 Tuition & Registration - Employees - 2,500 Tuition & Registration - Board - - Temporary Help 2,500 21500 Contract Services Operations 19,150 18,950 Contract Services Maintenance 100,000 100,000 Contract Services Administration 13,260 13,260 Security Services 55,800 55,800 Physical Damage Repairs 35,000 35,Q00 Recoveries of Physical Damage Repairs (30,000) (30,000) Total $ 710,656 $ 740,018 0 TRANSPO 2014 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Materials & Supplies Summary 2012 ACTUAL. $1,589,038 2014 BUDGET REQUEST 2013 APPROVED BUDGET BUDGET CHANGE Account Title 2013 Fuel & Lubricants Fuel & Lubricants Tires & Tubes Tires & Tubes Materials & Supplies Materials & Supplies Materials & Supplies Other Materials & Supplies Other Materials & Supplies Other Materials & Supplies Operations Maintenance Operations Maintenance Operations Maintenance Marketing Operations Maintenance General Administration 10 $ 1,411,863 $ 1,251,192 $ 160,671 2014 $ 960,239 $ 1,103,363 16,353 17,840 - 2,560 - 25,000 210,000 210,000 37,600 35,600 6,000 4,500 3,600 2,600 17,400 10,400 Total $ 1,251,192 $ 1,411,863 TRANSPO 2014 BUDGET SUBMISSION DEPARTMENT: Administration & Maintenance ACCOUNT TITLE: Utilities ACCOUNT NUMBER: 505 - 0x50 -OO 505- Ox2x -00 2012 ACTUAL $ 174,807 2014 BUDGET REQUEST $ 209,267 Account Title Electricity Water & Sewage Trash Collection Telephone Natural Gas 11 2013 APPROVED BUDGET $ 209,267 BUDGET CHANGE $ - Totals $ 209,267 $ 209,267 2013 2014 $ 98,014 $ 98,014 $ 16,654 $ 16,654 $ 5,000 $ 5,000 $ 10,351 $ 10,351 $ 79,248 $ 79,248 $ 209,267 $ 209,267 TRANSPO 2013 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Insurance Summary 2012 ACTUAL $ 215,208 2014 BUDGET REQUEST $ 235,477 2013 APPROVED BUDGET $ 246,971 BUDGET CHANGE $ (11,494) Insurance - Liability & Physical Damage Other Corporate Insurance 12 $ 229,192 6,285 Total $ 235,477 2014 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Miscellaneous Summary 2012 ACTUAL $ 52,118 2014 BUDGET REQUEST $ 105,335 2013 APPROVED BUDGET $ 84,070 BUDGET CHANGE $ 21,265 Account Title 2013 2014 Dues & Subscriptions $ 28,070 $ 29,835 Travel & Meetings 2,000 11,500 Community Services 15,000 15,000 Promotion 1,000 1,000 Advertising Placements 38,000 38,000 Interest Expense on Tax Warrants - 10,000 Miscellaneous Total $ 84,070 $ 105,335 13 TRANSPO 2014 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Passenger Fares Summary ACCOUNT NUMBER: 413 -0100 -00 2012 ACTUAL: $ 1,419,226 2014 BUDGET REQUEST $ 1,450,230 2013 BUDGET REQUEST $ 1,400,953 $ 1,400,953 $ 1,450,230 14 BUDGET CHANGE: $ 49,277 Account Title 2012 2013 Passenger Revenue 938,141 980,146 Access Passenger Revenue 35,366 J6,J26 Access Punch Card Revenue 61,967 63,190 Passport Revenue 185,675 183,890 Student Pass Revenue 28,320 31,590 Tripper Revenue 9,623 9,623 Two Ride Pass Revenue 65,334 62,628 Two Week Pass 76,527 82,638 $ 1,400,953 $ 1,450,230 14 TRANSPO 2013 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Capital Fund Requirements ACCOUNT NUMBER: 301- 0101 -00 2012 ACTUAL $ 413,354 2014 BUDGET REQUEST $ 1,983,550 2013 APPROVED BUDGET $ 795,904 BUDGET CHANGE $ 1,187,646 �:+��_:. —._. _�- .:.a, =�.�- ra�za.a •i lyorre +ter- �.1 -w�s• - -- $$$ FTA/State Grant Number Available Funded Total Required Grant -IN -90 -X591 $ 40,000.00 $ 32,000 $ 8,000 Grant IN -90 -X621 $ 315,000 $ 252,000 $ 63,000 State of Good Repair $ 300,000 $ 240,000 $ 60,000 Bus Livability Grant $ 1,612,750 $ 1,290,200 $ 322,550 Grant -IN -04 -0044 $ 4,150,000 $ 3,320,000 $ 830,000 Grant IN -90 -X628 $ 1,000,000 $ 800,000 $ 200,000 Grant -IN -90 -X650 $ 2,500,000 $ 2,000,000 $ 500,000 Total $ 9,917,750 15 $ 7,934,200 $ 1,983,550