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REGULAR MEETING September 28, 2015 <br /> <br /> <br /> <br /> <br />This is something that has become popular among transit agencies as we’ve since seen declining <br />state and local revenue sources. It is something that we continue to do to keep the band aid on so <br />we don’t have to raise fares. When you operate a system that is mainly used most transit <br />deficient individuals keeping the fare low is one of the most important things. We anticipate a <br />slight uptick in revenue and that’s from a change we made in our fare structure. The normal cash <br />fare to ride a bus is one (1) dollar and that remains the same as it has for several years. There will <br />be no increase in our fare. <br /> <br />Property taxes is where we receive quite a bit of our operating revenue as well. We are showing <br />just a slight increase in that area. State operating assistance is an area we’ve taken quite a <br />significant hit in over the last couple of years. Actually Transpo’s taken over a one (1) million <br />dollar hit in the dollars we receive from the state of Indiana through the public mass transit fund. <br />This is the first year in quite some time that we will see an increase. It is small about $36,000 <br />but anything helps. Our hard efforts of lobbying down in Indianapolis are starting to pay off. <br />This is our federal operating assistance the last couple of years in order to maintain service we’ve <br />been converting over capital dollars as I mentioned. We are pretty much maxed out on federal <br />operating assistance of the 2016 fiscal year. It leaves a lot of question about what will ultimately <br />happen in 2017. Some of our challenges this year and in the year ahead is to continue to purchase <br />revenue service vehicles or new buses. We operate one of the old fleets of vehicles in the state <br />of Indiana, which means it cost a lot of money to operate those vehicles. <br /> <br />We are running a bus that has an average useful life of twelve (12) years but when it’s fifteen <br />(15) years old it becomes very costly to maintain that vehicle. We are going to continue to learn <br />how to weather the storm of uncertainty of our federal funding program. As the Congress keeps <br />extending it through continuous resolutions instead of finding some sort of definitive answer to <br />that. The same with the state. The folks in the legislature and the Governor’s Office understand <br />the importance of funding public transportation. We’re working very hard to control our <br />expenses and be good stewards of the tax payer dollars. We are also continuing to develop a plan <br />to weather the storm of uncertainty, for the 2017 property tax cap is very close to us. In 2016 we <br />will continue to work toward our designated stop program. It has taken a little longer than we <br />had hoped for but we are getting a lot of great things out of the way as well. We are continuing <br />to work and expand our opportunities with local universities and educational organizations. One <br />of the things we are doing is we are looking to Ivy Tech for workforce development. We have a <br />very aging workforce as well. Forty percent (40%) of our workforce is eligible to retire within <br />the next four (4) years. It makes it very hard to replace employees that have been with your <br />organization for twenty (20), thirty (30), even forty (40) years. It’s tough to get folks who even <br />want to come and do a really thankless job of driving a bus and getting our folks in our <br />community where they need to go. Then as I mentioned our aging bus fleet. We just signed a <br />five (5) agreement with a manufacturer to buy buses from. Our board just approved that five (5) <br />year agreement as well as the purchase of up to six (6) new buses this year. We’re continuing to <br />work hard on maintaining our aging fleet but replacing that aging fleet. The hardest issue is <br />coming up with that local match. We’re taxed on the dollars that we have to spend. We are <br />required to come with a twenty percent (20%) local match to purchase any new vehicles or any <br />capital we might have. We are working creatively to make that happen through competitive <br />grants and other things. That is the Transpo budget for 2016. <br /> <br />Committee of the Whole Chairperson White – Asks for questions from the council. <br /> <br />Councilmember Dr. Ferlic- So fifty percent (50%) of your money comes from either the state or <br />federal funds basically? That’s a tough nut to crack if the state cuts back and fed cuts back. <br />Right? <br /> <br />Presenter- Correct. <br /> <br />Councilmember Dr. Ferlic- Think people have to realize that. You’re subsidizing fifty percent <br />(50%) so that’s a tough problem. <br /> <br />Councilmember Oliver Davis- Is that a typical or standard number across transit agencies across <br />the country? Are we higher or are we right in the middle when it comes to being at fifty percent <br />(50%)? <br />16 <br /> <br /> <br />