09-06-16 Personnel and Finance - Laserfiche WebLink

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has also continued to add alternative fuel vehicles to their fleet, and is seeing the lower costs associated with that decision. Labor expenses have continued to grow over the past year due mainly to increases in health and dental insurance. Committee Chair White asked Mr. Cangany if he had a sense of what that increase is for 2017 in comparison to prior years. Mr. Cangany responded that they've budgeted a ten (10 %) increase which is probably the lowest they've seen; unfortunately, the Affordable Care Act has contributed to increases in overall coverage resulting in additional expenses for TRANSPO. As far as revenue goes, explained Mr. Cangany, it's mainly dependent on levying local taxes and other sources of state and federal support, plus, ridership fares. Ridership fares have been down since the economy is up so people ride the bus less. Leasing opportunities (e.g. South Street Station, parking garages) and marketing opportunities have contributed a small amount to the revenue side. Federal Operating Assistance has continued to be the life support of the entity, and according to Mr. Cangany, the funding source that has kept public transportation alive in our community. A major challenge of the entity is considering how to find funding to replace an aging fleet. There are a few opportunities on the table, but none are certain; especially, as it relates to state and federal opportunities which are politically determined. TRANSPO is also looking at creative public - private partnerships to help reduce costs. A second future concern, is the 2018 property tax caps which are reflected in the 2017 budget priorities. TRANSPO has signed a contract to have the designated bus stops in order to make the system more user - friendly once the Smart Streets initiative is complete. The entity also intends to renegotiate their contract with the University of Notre Dame and St. Mary's College to offer free fares to students. Additionally, they hope to explore opportunities with South Bend Community Schools and Ivy Tech for similar agreements. TRANSPO has also been working on Workforce Development partnerships in conversations relating to an aging and retiring workforce. The Fleet Modernization Project continues to be a major accomplishment and continued goal of the entity. TRANSPO aims to be completely CNG by 2020, but a major challenge continues to be the federal grant funding share. Mr. Cangany wrapped up his presentation and welcomed questions. Committee Chair White directed questions to the Committee. Committeemember John Voorde asked a question regarding advertising on the buses. Mr. Cangany responded that TRANSPO is looking to hire another advertisement agency to do a better job. Committeemember Voorde asked if they used an outside agency. Mr. Cangany responded, yes, they use a local company. 0) .-i