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Home My WebLink About12. 2016 Budget Hearing Session VII - TranspoSouth Bend Public Transportation Corporation (TRANSPO) September 9, 2015 r TABLE OF CONTENTS POWERPOINT PRESENTATION ............................................. ............................2 -9 TRANSPO BUDGET DETAIL .............................................. ............................... 10 -27 transpo _-____________________________________________ ______________________________- o __________________ --_________________ _______________________________ 2016 BUDGET PRESENTATION DAVID CANGANY, GENERAL MANAGER 2016 At A Glance Aft transpo ----- - - - - -- • Transpo 2016 Operating Budget - $10,825,378 2016 Budget is balanced 2015 Service level is maintained 2016 Expenses Adlk transpo -------------------------------------------------------------------------------------------- - - - - -- 0 -------- - - - - -- - - - - ----------------------------------- ■ Wages (51 %) ■ Benefits (21 %) ■ Fuel Expense (8%) ❑ Services (7%) ■ Utilities /Insurance (5%) ■ Bus Loan (5%) ■ Materials /Supplies (4%) Operating Expenses --------------------------------------------------------------------------------------------- - - - - -- 11,000,000 Adlk trans o \I p - - - - - - - - - - - ------------------------------- 10,500,000 10,000,000 9,500,000 9,000,000 2009 1 2010 1 2011 1 2012 1 2013 2014 2015 1 2016 OperatingZxpense 9,634,220 1 9,925,005 1 10,635,365 1 10,325,963 1 9,996,139 10,138,068 10,127,920 1 10,825,378 Labor Expense 5,750,000 5,500,000 - - - -- - - Adik \I o trans p • 5,250,000 777< 1,350,000 5,000,000 1,300,000 4,750,000 4,500,000 2009 2010 1 2011 Labor 5,163,055 5,119,825 5,253,795 2012 2013 4,941,995 4,946,325 2014 5,036,057 2015 2016 5,416,098 5,531,476 1,250,000 1,200,000 Health & Dental Insurance -------------------------------------------------------------------------------------------------- - - - - -- • ------------- - 50,000 - - - -- - - transpo - - - - - - - - - 1,400,000 1,350,000 1,300,000 ■ 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 '- 1,000,000 950,000 900,000 Ilion 850,000 800,000 750,000 700,000 650,000 2009 2010 2011 2012 2013 2014 2015 2016 Health[8®ental®nsurance 807,067 945,219 959,755 1,094,359 1,145,705 1,023,895 1,218,403 1,368,047 Fuel -------- - - - - -- 00 AdIk \I trans o p 1,575,000 IF 0 1,525,000 1,475,000 • Local Tax Revenue M (31 %) 1,425,000 • State Assistance (18 %) • Federal Opertaing 1,375,000 Assistance(16 %) El Federal Prev. Maint. 1,325,000 (15 %) /• Passenger Fares (14 %) 1,275,000 • Lease Revenue (2%) ■ Advertising /Interest /M 1,225,000 1,175,000 1,125,000 1,075,000 1,025,000 975,000 925,000 875,000 825,000 775,000 725,000 675,000 625,000 2009 1 2010 1 2011 2012 1 2013 1 2014 1 2015 1 2016 Fuel 842,166 1,120,055 1,424,734 1,217,527 949,518 1,163,079 986,374 819,807 2016 Revenue Sources Aft transpo IF 0 • Local Tax Revenue M (31 %) • State Assistance (18 %) • Federal Opertaing Assistance(16 %) El Federal Prev. Maint. (15 %) /• Passenger Fares (14 %) • Lease Revenue (2%) ■ Advertising /Interest /M isc. (3%) Passenger Revenue --------------------------------------------------------------------------------------------- - - - - -- - - - - - -- Adlbk transpo - - - - ------------ 1,550,000 trans o p - - - ------------------------------------------ 4,000,000 - 3,500,000 1,500,000 1,450,000 1,400,000 ■ ■ 2,500,000 1,350,000 2,000,000 2008 1,300,000 2010 2011 2012 2013 1,250,000 2015 2016 Proper[yLifaxfTpproprialio0 3,759,495 2,608,192 2,445,397 2,714,035 2,842,622 2,707,200 2,670,133 2,675,000 2,714,858 1,200,000 1,150,000 1,100,000 2009 2010 2011 2012 2013 2014 2015 2016 Fares 1,210,020 1,390,353 1,401,657 1,419,226 1,401,113 1,432,235 1,421,919 1,504,253 Property Tax Assistance -------------------------------------------------------------------------------------------- - - - - -- 0 ------------ - - - - Aft \I -- - - - - trans o p - - - ------------------------------------------ 4,000,000 3,500,000 3,000,000 ■ ■ 2,500,000 2,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Proper[yLifaxfTpproprialio0 3,759,495 2,608,192 2,445,397 2,714,035 2,842,622 2,707,200 2,670,133 2,675,000 2,714,858 State Operating Assistance (PMTF) \I ----------------------------------------------------------------------------------------------------------- trans o p 3,000,000 Federal Operating Assistance ■ transpo 2,750,000 2,500,000 3,400,000 2,250,000 3,300,000 2,000,000 3,200,000 1,750,000 3,100,000 2009 1 2010 1 2011 2012 1 2013 2014 2015 2016 PMTF 2,889,233 1 2,683,523 1 2,499,114 1 2,883,983 1 2,128,813 1,974,543 1,884,000 1,984,401 2,500,000 2,400,000 Federal Operating Assistance Adbk transpo 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 2,900,000 2,800,000 2,700,000 2,600,000 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 - 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 2009 2010 2011 2012 2013 2014 2015 20" Federal[ EPreventiveMAa!ntenanceMssistanc -rant 1 1,599,293 1,535,769 1,519,715 1,511,622 1,770,000 3,076,108 2,796,100 3,421,866 2015 Challenges Adik trans o 0 \I p Purchase of Revenue Service Vehicles Uncertainty of Federal funding program Uncertainty of State level funding (PMTF) Controlling expenses Preparing for the 2017 Property Tax Caps mm I 2016 Priorities Alk transpo ---------------------------- -------------------------------------------------------------------------- 0 ---------------------- Implementation of designated bus stop system Expand service opportunities with local universities and educational organizations Workforce development partnerships Aging Bus Fleet Managing high cost of maintaining aging fleet Local share on new vehicle purchases Adlbk trans o ------------------------------------------------------------------------------- - - - - -- 0 \I P Thank You! Questions? Felled B". Co'Url -, s C � .'UG i 9 2017 CITY CLERK, Ak transpo \I south bend public transportation corporation 2016 FISCAL OPERATING & CAPITAL BUDGET January 1, 2016 through December 31, 2016 Prepared By South Bend Public Transportation Me SOUTH BEND PUBLIC TRANSPORTATION CORPORATION SOUTH BEND, INDIANA 2016 FISCAL YEAR BUDGET REQUEST TABLE OF CONTENTS BUDGET ESTIMATE FOR 2015 PROJECTIONS I ASSUMPTIONS 2016 Revenue Projection. .................................... ........1 ....... ............................... 2016 Expense Projection ..................................................... ..............................2 2016 Appropriations ............................................................. ..............................3 2016 Budget Assumptions ................................................. ............................... 4 2016 Budget Policy Statements ........................................... ..............................6 2016 Budget Summaries by Category — All Accounts .......... ..............................7 2016 Capital Requirement.... ............................................................... 16 is SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2016 REVENUE PROJECTION CHANGE - 2016 BUDGET VS. Actual 2016 BUDGET 2015 BUDGET 2014 ACTUAL 2016 BUDGET 2014 ACTUAL SOURCE FAREBOX $ 1,504,253 $ 1,421.919 $ 1,432,235 5.79% 5.03% ADVERTISING $ 72,000 $ 72,000 $ 72,000 0.00% 0.00% LEASE REVENUE $ 174,516 $ 174,516 $ 174,527 0.00% -0.01% CONCESSIONS AND MISCELLANEOUS $ 68,500 $ 68,500 $ 20,667 0.00% 231.45% INTEREST INCOME $ 12,985 $ 12,985 $ 759 0.00% 1611.55% PROPERTY TAX $ 27714,858 $ 2,675,000 $ 2,670,133 1.49% 1.67% LICENSE EXCISE TAX $ 210,000 $ 200,000 $ 221,276 5.00% -5.10% OPTION INCOME TAX $ 462,000 $ 423.000 $ 445,847 9.22% 3.62% STATE ASSISTANCE $ 1,984,401 $ 1,884,000 $ 1,974,543 5.33% 0.50% FEDERAL PREVENTIVE MAINTENANCE $ 1,640,000 $ 1,620,000 $ 1,355,800.0 1% 20.96% FEDERAL ASSISTANCE $ 1,781,866 $ 1,176,000 $ 900,501.0 52% 97.87% LEASE PAYMENT FROM CITY $ 200,000 $ 400,000 $ 400,000.0 0% - 50.00% TOTAL $10,825,378 $10,127,920 $ 9,668,286.6 6.89%1 11.97% SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2016 EXPENSE PROJECTION CHANGE - 2016 BUDGET VS. Actual 2016 BUDGET 2015 BUDGET 2014 AUDITED 2015 BUDGET 2014 AUDITED Expense Category Tangible Property / Fixed Assets $ - $ - $ - N/A N/A Salaries & Wages $ 5,531,476 $ 5,416,098 $ 5.036,057 2.13% 9.84% Fringe Benefits $ 2,272,399 $ 2,049,701 $ 1,7795273 10.86% 27.72% Services $ 779,867 $ 780,292 $ 1,037,940 - 0.05% - 24.86% Materials & Supplies $ 1,110,466 $ 1,277,033 $ 1,740,194 - 13.04% - 36.19% Utilities $ 278,857 $ 244,420 $ 200,050 14.09% 39.39% Insurance $ 230,477 $ 230,477 $ 193,395 0.00% 19.17% Other Taxes $ - $ - $ - N/A N/A Miscellaneous $ 121,835 $ 121,835 $ 151,159 0.00% - 19.40% SUB -TOTAL $ 10,325,378 $10,119,856 $ 10,138,068 2.03% 1.85% Transfer - Capital Improvements / Reserve for Liability $ 500,000 $ 8,063 $ - 6101.17% 100.00% TOTAL $ 10,825,378 1 $10,127,91§-F$ 10,138,068 6.89%T 6.78% TRANSPO Budgeted Appropriations Categoa O eratin q Budget Capital Bud et Total 2015 Appropriations 2016 2015 2016 2015 Personnel Services Other Services and Charges Supplies Capital Outlays 7,803,874 1,911,036 1,110,466 208,628 7,465,799 1,385,087 1,277,033 375,461 1,043,138 1,877,305 7,803,874 1,911,036 1,110,466 1,251,766 Total Appropriations $11,034,004 1 $10,503,380 1 $ 1,043,138 1 $1,877,305 1 $ 12,077,143 14 Adik trans P o .1 - 2016 OPERATING BUDGET ASSUMPTIONS REVENUES: Federal, State, and Local: Given past and continued success in securing adequate capital funds through Federal Capital Grants for major capital projects that are becoming less common. 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 2016, 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 2016 PMTF revenue on 2015 actual approved budget. This caused our budget figure to be increase by $100,401 from the 2015 budget. Property Tax revenue was budgeted at $39,858 increase from the prior year. Ridership and Leases: Farebox revenues from regular services include a slight increase from our 2015 budgeted levels. The revenue increase is due to slight change in the fare structure in 2015 eliminating transfers. 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 2016, Transpo budgeted, a slight increase in wages for employees. Employee benefits reflect an estimated 10.86% increase over 2015. This increase is mainly due to an estimated increase of fifteen 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 decreased slightly from the 2015 budget. Diesel fuel has been budgeted at an average of $3.09 per gallon and gasoline at $2.50 per gallon. Starting in 2016, Transpo will have all sixteen fixed route CNG vehicles providing service. Transpo budgeted a decrease, in its overall fuel cost, of $219,707. 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 2015 forecasted levels. Marketing: Marketing contracts, services, and advertising placement accounts have not been changed from 2015 budgeted figures. 4 15 Training: The 2015 budgeted amounts increased from 2014 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 2016 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 first 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 i Adh� r nsp 14 P, tra 0 2016 OPERATING BUDGET POLICY STATEMENTS FINANCIAL CAPACITY: 1. 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. 6 17 DEPARTMENT: All TRANSPO 2016 BUDGET SUBMISSION ACCOUNT TITLE: Salaries & Wages Summary 2014 ACTUAL $ 5,036,056 2016 BUDGET REQUEST $ 5,531,476 2015 MONTHLY AVERAGE $ 424,345 2015 APPROVED BUDGET $ 5,416,098 2015 EST EXPENSE $ 5,092,138 BUDGET CHANGE $ 115,378 Account Title 2015 2016 Operators $3,391,192 $ 3,464,685 Access Drivers & Clerk 438,306 464,052 Operations Administration 371,078 374,166 Revenue - Vehicle Maintenance 684,971 690,547 Maintenance Administration 119,174 119,725 Non - Revenue - Vehicle Maintenance 70,241 71,058 General Administration 341,136 347,242 Total $5,416,098 $ 5,531,476 7 18 TRANSPO 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Fringe Benefits Summary 2014 ACTUAL $ 1,779,272 2016 BUDGET REQUEST $ 2,272,399 2015 MONTHLY AVERAGE $ 170,765 2015 APPROVED BUDGET $ 2,049,701 2015 EST EXPENSE $ 2,049,179 BUDGET CHANGE $ 222,698 Account Title 2015 2016 FICA $ 414,331 $ 423,158 Pension plan 211,694 211,694 Medical Insurance 1,175,516 1,377,570 Dental Insurance 42,887 50,477 Life Insurance 24,032 24,032 Short -Term Disability 22,189 22,189 Unemployment Insurance 10,925 10,925 Worker's Compensation 97,337 101,235 Uniforms 46,790 47,119 Tool Allowance 4,000 4,000 Total $2,049,701 $ 2,272,399 2. Enwe 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Services Summary 2014 ACTUAL $ 984,072 2016 BUDGET REQUEST $ 779,867 2015 MONTHLY AVERAGE $ 181,802 2015 APPROVED BUDGET $ 780,292 2015 EST EXPENSE $ 846,235 BUDGET CHANGE $ (425) Account Title 2015 2016 Management Service Fees Professional & Technical Board Travel Temporary Help Contract Services Operations Contract Services Maintenance Contract Services Administration Security Services Physical Damage Repairs Recoveries of Physical Damage Repairs 09 $ 263,868 $ 263,868 279,939 274,939 10,000 10,000 2,500 2,500 12,050 12,050 115,000 115,000 37,460 37,460 59;475 64,050 20,000 20,000 (20,000) (20,000) Total $ 780,292 $ 779,867 TRANSPO 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Materials & Supplies Summa 2014 ACTUAL $ 1,479,781 2016 BUDGET REQUEST $ 1,110,466 2015 MONTHLY AVERAGE $ 121,488 2015 APPROVED BUDGET $ 1,133,496 2015 EST EXPENSE $ 1,457,851 BUDGET CHANGE $ (23,030) Account Title 2015 2016 Fuel & Lubricants Operations $ 825,408 $ 806,391 Fuel & Lubricants Maintenance 17,428 13,415 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 $1,133,496 $ 1,110,466 DEC TRANSPO 2016 BUDGET SUBMISSION DEPARTMENT: Administration & Maintenance ACCOUNT TITLE: Utilities ACCOUNT NUMBER: 505 - 0x50 -00 505- Ox2x -00 2014 ACTUAL $ 209,394 2016 BUDGET REQUEST $ 278,857 2015 MONTHLY AVERAGE $ 25,018 2015 APPROVED BUDGET $ 244,420 2015 EST EXPENSE $ 300,221 BUDGET CHANGE $ 34,437 Account Title 2015 2016 Electricity $ 98,014 $ 98,014 Electricity -CNG $ 35,153 $ 45,941 Water & Sewage $ 16,654 $ 16,654 Trash Collection $ 5,000 $ 5,000 Telephone $ 10,351 $ 34,000 Natural Gas $ 79,248 $ 79,248 Totals $ 244,420 $ 278,857 1212 TRAINSPO 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Insurance Summary 2014 ACTUAL $ 190,051 2016 BUDGET REQUEST $ 230,477 2015 MONTHLY AVERAGE $ 17,354 2015 APPROVED BUDGET $ 230,477 2015 EST EXPENSE $ 208,250 BUDGET CHANGE $ - Insurance - Liability & Physical Damage Other Corporate Insurance 1A $ 224,192 6,285 Total $ 230,477 I KAN6HU 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Miscellaneous Summa 2014 ACTUAL $ 151,083 2016 BUDGET REQUEST $ 121,835 2015 MONTHLY AVERAGE $ 9,450 2015 APPROVED BUDGET $ 121,835 2015 EST EXPENSE $ 150,567 BUDGET CHANGE $ - Account Title 2015 2016 Dues & Subscriptions $ 27,835 $ 27,835 Travel & Meetings 20,000 20,000 Community Services 15,000 15,000 Promotion 3,000 3,000 Advertising Placements 45,500 45,500 Interest Expense on Tax Warrants 10,500 10,500 Total $ 121,835 $ 121,835 1'A 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Transfer - Capital Improvement Fund /Reserve for Liability ACCOUNT NUMBER: 301 - 0101 -00 2014 ACTUAL $ - 2016 BUDGET REQUEST $ 500,000 2015 MONTHLY AVERAGE 2015 APPROVED BUDGET $ 8,063 2015 EST EXPENSE BUDGET CHANGE $ 491,937 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 121 $ 500,000 TRANSPO 2016 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Passenger Fares Summary ACCOUNT NUMBER: 413 - 0100 -00 2014 ACTUAL: $ 1,432,235 2016 BUDGET REQUEST $ 1,504,253 2015 AVERAGE: $ 117,420 2015 APPROVED BUDGET $ 1,421,919 2015 ESTIMATED: $ 1,409,034 BUDGET CHANGE: $ 82,334 Account Title 2015 2016 Passenger Revenue $ 944,883 $ 802,698 Access Passenger Revenue 43,742 51,187 Access Punch Card Revenue 67,891 73,321 Passport Revenue 174,755 166,075 Student Pass Revenue 40,110 41,130 Tripper Revenue 9,623 9,623 Two Ride Pass Revenue - Two Week Pass 72,007 90,048 One Day Pass 65,759 263,721 Student Summer Pass 3,150 6,450 15 26 $ 1,421,919 $ 1,504,253 TRANSPO 16 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Capital Fund Requirements ACCOUNT NUMBER: 301 - 0101 -00 2014 ACTUAL $ 6,121,744 2016 BUDGET REQUEST $ 1,043,138 2015 MONTHLY AVERAGE $ 173,785 2015 APPROVED BUDGET $ 1,877,305 2015 EST EXPENSE $ 2,085,425 BUDGET CHANGE $ (834,167) $$$ FTA/State Total Grant Number Available Funded Required Grant- IN -04 -0053 $ 1,612,750 $ 1,290,200 $ 322,550 Grant- IN -34 -0002 $ 202,942 $ 162,354 $ 40,588 Grant -IN -95 -X048 $ 750,000 $ 600,000 $ 150,000 Grant IN -90 -X628 $ 350,000 $ 280,000 $ 70,000 Grant -IN -90 -X650 $ 300,000 $ 240,000 $ 60,000 2015 -2016 FTA GRANT $ 2,000,000 $ 1,600,000 $ 400,000 Total $ 4,172,554 $ 5,215,692 $ 1,043,138 1&