HomeMy WebLinkAbout06-10-2014 B2c Transit Enterprise Fund ReviewCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl R. Grigsby, Director of Public Works
Prepared By: Timothy Scott Bochum, Deputy Director of Public Works
Gamaliel Anguiano., Transit Manager
SUBJECT: 2014 TRANSIT ENTERPRISE FUND REVIEW
RECOMMENDATIONS
1. Review and accept the 2014 Transit Enterprise Fund Review.
2. Conceptually approve the 2014-15 Transit Enterprise Fund budget, with final action on
June 17, 2014 with the adoption of the 2014-15 Financial Plan.
3. Tentatively approve the revisions to the Transit Fund’s revenues, operation costs and
Capital Improvement Plan for 2013-14.
REPORT IN BRIEF
This report presents a review of the annual Transit Enterprise Fund for Fiscal year 2013-14 and
forecast FY 2014-15. This review looks at key issues and trends which could have an impact on
the overall health of the fund. To this regard, we are pleased to report that the Transit Fund is
balanced and the revised 2014-15 budget will be consistent with operating assumptions adopted
in the two year Financial Plan with some minor, but necessary adjustments. Federal funding
shortfalls have been offset by larger, potentially one-time only, State revenue increases. Staff
will continue to monitor Federal funding levels should this become a recurring issue.
Consequently, there is no need for fare increases or service reductions at this time. The 2013-14
Fiscal year budget is forecasted to end with a small year-end working capital surplus. The Transit
Fund is able to maintain the minimum 20% reserve level in working capital, in accordance with
the City Financial Management policy and maintain capital projects as they are currently
programed albeit with other revenue sources than originally forecasted. Restated, there are three
major themes to this report:
a. The Transit Fund is in a solid position for FY 13-14 and more so as we move into
FY 14-15. No rates changes are needed in FY 14-15
b. Federal Funding is slightly down (particularly for capital) but we are able to shift
our State funding to replace these funds – keeping important capital projects
moving forward.
c. State revenue for FY 14-15 are significantly up from projections. We are not
recommending programming all of these funds at this time; instead waiting for
our joint SRTP process to begin with RTA to make sure these dollars are spent
wisely on priority needs.
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2014 Transit Fund Review Page 2
The City of San Luis Obispo’s Transit Fund, in its current state, continues to ensure there is a
viable mobility option for local residents and visitors to the area. A wide range of users continue
to receive services, including the: transit-dependent, elderly, disabled, students and commuters.
This report will briefly touch on some of the accomplishments of the past year, provide information
on Transit Fund revenue sources and expenses, and address overall transportation operations.
DISCUSSION
Transit Accomplishments in 2013-14
Council approval of the Transit Fund budget allows SLO Transit to provide continued multiple
services to transit system users. Although the Transit Fund Review primarily reports on financial
and budgetary information, it is important to reflect on the accomplishments that have occurred
during the past fiscal year. The following is a short list of highlights which SLO Transit has
been able to accomplish during the 2013-14 Fiscal Year.
1. Ridership -It is projected that the total ridership for SLO Transit will once again exceed
one million riders. Ridership is anticipated to reach near 1,145,000 patrons for Fiscal
Year 2013-14. This represents a 3% increase in ridership from the last fiscal year. SLO
Transit staff will continue to pursue avenues that further attract and grow the ridership
base for future service years.
2. Student Pass Sales – One segment in particular which has seen a sharp increase in
ridership is in SLCUSD student ridership. Student ridership has gone up 105% since the
last fiscal year (from 11,433 trips to 23,450 trips). Part of this growth can be attributed to
the continual outreach to student populations, such as the “Youth Ride Free” summer
program and others which call the attention of the benefits of public transit to young
riders. SLO Transit staff continues to identify strategies to address the needs of young
riders.
3. Mobility Training - New Freedoms Grant - The City received a grant from the FTA
(Section 5317) in the amount of $20,000 to increase marketing and training services to
the elderly. This program which has continued since 2009 uses Ridership Development
Consultants (RDC) for expanded marketing and outreach to the City’s elderly
stakeholders. During 2013-14, RDC held at ten informational, outreach and training
sessions for senior and disabled riders (through May 2014.) RDC continues to provide
outreach and information materials for interested community members at over 15
locations (centers, senior living, library, mobile home parks) along with having program
materials and signage clearly visible and accessible inside all SLO Transit buses. The
City and RDC have also published advertisements in The Tribune to reach additional
potential riders. This program has increased the number of eligible community members
partaking in the VIP program.
4. 40th Anniversary - SLO Transit reached the 40 years of public service milestone. In
celebration, SLO Transit offered 25¢ fares from May 5th to the 11th (what transit fares
were in 1974) to give back to our riders and community. On May 8th SLO Transit staff
invited City Council Members, Mass Transit Advisory members, past and present, to
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2014 Transit Fund Review Page 3
celebrate the 40th Anniversary of SLO Transit recognition ceremony. The event was
culminated with a special recognition proclamation from 35th District State Assemblyman
Katcho Achadjian, which was presented by Senior Field Representative Kevin Drabinski.
5. FREE Wi-Fi - As part of the 40th Anniversary celebration, staff launched new Wi-Fi
service on select vehicles of our fleet. Based upon a project he completed in his prior job,
the Transit Manager was able to use existing vehicle technology equipment to employ
Free Wi-Fi internet connection for riders on two of our vehicles. Transit staff will
expand this amenity to other vehicles as part of future bus purchases and to the rest of the
existing fleet as funds become available.
6. Bus Shelter Improvement - Solar Powered Lights - Staff was successful in securing a
Cal-EMA, Safety and Security grant in the amount of $40,240 in October 2013. Funds
were dedicated for the purpose of purchasing and installing solar powered lights at poorly
lit bus stops. This was done in efforts to improve the safety, security and visibility of
passengers waiting at bus stops during later service hours. Work on retrofitting the bus
stops commenced in January of 2014. To date, 12 lights have already been installed with
funding remaining for approximately 14 additional stops to be retrofitted.
7. FY 14-15 SLOCOG Unmet Needs Findings – SLOCOG has recently completed its FY
14-15 Transit Unmet Needs findings process. SLO Transit received only three (3)
requests of which two had to do with minor on time issues. This reflects highly that our
current system is running smoothly and meeting rider’s needs.
Staff, with Council’s approval, continues to pursue projects that enhance the performance and
the quality of the SLO Transit service for the benefit of the 1.1 million riders who use it. This
list by no means represents a comprehensive list of all projects undertaken but rather provides a
glimpse of the projects pursued under the current approved budget.
Transit Fund Issues
Federal Funding – Lower than Anticipated
Federal funding assistance is provided to SLO Transit in the form of FTA 5307 grant funds.
These Federal resources are available to urbanized areas, with a population of 50,000 or more.
The SLO Urbanized area includes populations of Cal Poly, county areas and the prison to reach
the 50,000 population criteria. 5307 funds are meant as operating assistance of transit services or
for capital expenses. The federal share for the funding of any one of these activities is not to
exceed 50 percent of operating expenses or 80 percent of capital expenses of the net project cost.
FTA 5307 funds for FY 13-14 are slightly less than expected. $1,918,700 was projected during
the mid-year review budgeting process. Revised numbers from SLOCOG indicate an actual
receipt of $1,725,342. This represents a shortfall of $193,358 or a -10.98% change primarily due
to reduced capital funding for bus replacements and bus stop improvements. Fiscal Year 2014-15
will likely experience a similar but lesser shortfall. Projections are yet to come from SLOCOG
but it is expected that limited capital funding will occur again in 2014-15. It is anticipated that
shortfalls in FTA capital will be made up by higher than expected state funding discussed below.
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2014 Transit Fund Review Page 4
Proposition 1B Grant - the FY 2013-14 budget assumed we would be successful in obtaining a
Proposition 1B grant for $202,600 to assist in a bus replacement. Unfortunately, other
applications in the County received higher priority and we were unsuccessful in obtaining this
amount. The next section discusses how we will be utilizing TDA funding to keep these projects
alive and moving forward. We do not anticipate that the discretionary Proposition 1B account
will be available in 2014-15.
State Funding - Status Quo for FY 13-14; Better than expected for FY 14-15
State funding assistance is provided to SLO Transit in the form of “TDA” funds. The State’s
Transportation Development Act (TDA) funding is comprised of two sources of funding for
transportation programs. The first, Local Transportation Fund (LTF), is derived from ¼ cent
collected in retail sales taxes. The second, State Transportation Assistance (STA), is derived
from the statewide sales tax on diesel fuel. Both of these funds are distributed to the regions by
the State. The regional agency, SLOCOG, then allocates this amount to each of the seven cities,
the County, SLOCOG, and the Consolidated Transportation Services Agency for the San Luis
Obispo region. LTF funds are apportioned according to population numbers, for: public transit,
street/road improvements and bikeway/pedestrian facilities. STA funds are formula-based and
used for public transit purposes.
LTF amounts for FY 2013-14 have come in as projected however, due to capital grant revenue
shortfalls in federal Section 5307, Prop 1B and several minor grants, the 2013-14 budget
projection- now reflects an excess of expenses over revenues in the amount of $39,576.
Because the capital appropriations that were tied to this grant funding will not be expended
during 2013-14, this deficit will not be realized. The unspent capital appropriations will be rolled
over to 2014-15 and previously received LTF revenues in the amount of $328,000 will also be
recognized at that time to fund a portion of these costs, with the remainder funded from working
capital.
For FY 2014-15, the County’s Auditor/Controller is projecting a significant increase in TDA
revenues than previously forecast. This amount has been verified by SLOCOG and is shown in
their revised budget for FY 14-15. Staff anticipates a very positive year end surplus ($677,700)
for FY 2014-15 even after using state funding to assist in backfilling less than expected Federal
capital funds.. Staff is not recommending that these amounts be programed for service changes
or CIP augmentation. SLO TRANSIT and RTA are about to begin a joint effort on updating our
Short Range Transit Plans. Completion of this plan will result in recommendations which could
require use of the above surplus for implementation. Staff will return to Council with both the
recommendations and potential funding scenarios in the FY 14-15 Mid-Year Budget Update and
the FY 15-17 Financial Plan process.
Cal Poly Subsidy Agreement – There are no changes to the Cal Poly Subsidy Agreement at this
time.
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2014 Transit Fund Review Page 5
Table 1 – CalPoly Subsidy Schedule
Fiscal Year Subsidy Amount % Increase
2013/14 403,104 2.00%
2014-15 415, 197 3.00%
2015-16 427,653 3.00%
Farebox – Our farebox projections through the end of FY 2013-14 are on target.
Federal transit policy requires that annual farebox revenue equals 20% of the operating budget.
The 2013-14 Fiscal Year farebox ratios are projected to hover around the 20% requirement. The
$247,696 collected in farebox revenue, along with the CalPoly subsidy program, total $650,800.
This represents 19.8% of the total operating budget for the transit system. Staff is confident that
program savings will occur to attain a 20% farebox recovery by year end. No rate increase is
necessary for FY 14-15.
First Transit Contract
On July 1, 2013 the City Council awarded the contract for Purchase Transportation services to
First Transit through June 30, 2016. A table showing the change in cost for purchased
transportation during the contracted three years is shown in Table 2.
Table 2 – Purchase Transportation Annual Contract Costs
Fiscal Year
Not-to-Exceed
Cost
Administrative
Rate Per
Mile
Not-to-Exceed
Cost
Per Mile Total Cost % Increase
2013-14 $956,982 $2.71 $1,064,556 $2,021,549 2.8%
2014-15 $966,205 $2.81 $1,104,168 $2,070,373 2.4%
2015-16 $982,020 $2.91 $1,146,454 $2,128,475 2.8%
Overall, the City is very satisfied with the level of service and professionalism that First Transit
has provided the City for the last twelve years. First Transit has been a fair and responsive
contractor as well as a safe operator of the City’s bus fleet. Staff will continue to work with the
contractor to monitor costs and stay on budget, and identify ways to save on expenses.
Fuel Costs
While fuel prices have risen recently we project that our fuel budget for FY 2014-15 should be
adequate unless there is a significant increase due to market conditions.
General Government (Staffing)
The Cost Allocation plan is a method for calculating the support expenses incurred, for time
dedicated to managing Transit related projects. The Cost Allocation Plan, which also affects the
performance of farebox ratio, is considered a Central Service Cost Allocation plan by the Federal
Transit Administration and does not require its review or certification. FY 2014-15 cost
allocation will be slightly below the original 2014-15 adopted amount of $329,300 at $290,742.
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2014 Transit Fund Review Page 6
Short Range Transit Plan
It has long been the goal to align the SLO Transit SRTP process with RTA. This joint planning
effort will ensure that findings and recommendations are in sync between the two systems. This
coordination is critical in that man passengers transfer between the two systems. SLO Transit has
delayed its process in pursuing an updated SRTP until RTA has received word of grant funding
which will fund a joint study. RTA will be informed of the grant application outcome in June of
2014. If the grant is not award, the Council has already approved funding for SLO Transit to
complete its portion of the SRTP.
FISCAL IMPACT
As shown in the Transit Enterprise Fund Analysis (Attachment 1), staff is projecting FY 2013-14
to end the year with a small amount of expenses ($39,576) above our revenues because the
unspent capital outlay appropriations will remain in the budget so they can be rolled over into the
2014-15 fiscal year, while the federal grant revenues that did not materialize in 2013-14 are
being reduced. Because the capital outlay costs will not be incurred during 2013-14, the
projected deficit will not be realized . When the capital costs are rolled over into the new fiscal
year, staff will also recognize $328,000 in previously allocated LTF revenues to fund a portion
of those costs in 2014-15. Even with the projected excess of expenses over revenues, the Transit
Fund is projected to end the current year with a solid working capital ($946,571) that meets our
20% reserve policy and allows a cushion for unanticipated changes in operating costs during FY
14-15.
Funding continues to be highly dependent upon Federal and State grants and final budget
appropriations. As mentioned earlier in this report Federal Funds for capital did not come in at
projected levels for FY 13-14 and we anticipate that FY 14-15 will be similar. There is a high
level of need for capital funding between RTA and SLO Transit and so balancing the funding for
the two entities is a major goal of the FTA funding process. Fortunately our stringer than
anticipated State revenues allows us to shift funds to these capital projects to keep them moving
forward in FY 13-14 and next year.
The changes in Financial Position is included as part of the 2014 Transit Fund Review and show
that overall revenues are projected to meet or exceed expenditures in 2014-15, leaving a positive
year-end balance of $1,624,229. The revised 2013-14 budget and projected funding for the
2014-15 Fiscal Year includes assumptions of revenues in key funding sources that have seen
significant changes over the past three years. The significant increases projected in FY 14-15 for
TDA funds may be a onetime only increase or may be a new “normal”. It is difficult to
determine this based upon historical TDA levels and so future years past FY 14-15 are shown as
a conservative budget which minimizes the potential for a big swing in services levels if this
increase in state funding should not continue. Staff is working with SLOCOG to determine the
likelihood of this trend continuing into the future.
ALTERNATIVE
Modify the Fund Analysis. The City Council could choose to accept all or part of the 2014
Transit Fund Review analysis as presented and direct staff to seek additional funding sources,
defer capital projects or provide transit operating cost reductions. Staff does not recommend this
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2014 Transit Fund Review Page 7
option as the proposed fiscal forecast provides the best "snapshot" of funding at this time based
upon the current and the latest information provided by the State and Federal government. Staff
will continue to update the fiscal forecast and information on funding sources as received, with
an intention to defer capital projects if grant funds are not realized.
ATTACHMENTS
1. 2014 Transit Enterprise Fund Analysis
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ATTACHMENT 1
Transit Enterprise Fund
2013-15 Financial Plan
Transit Enterprise Fund
2014 Fund Analysis
June 10, 2014
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Attachment 1
Page 2
2014 Transit Fund
TABLE OF CONTENTS
I. Contents
I. OVERVIEW ........................................................................................................................... 3
II. TRANSIT FUND ISSUES ..................................................................................................... 3
A. Federal Funding................................................................................................................ 3
B. Proposition 1B Grant ........................................................................................................ 4
C. State Funding.................................................................................................................... 4
D. Cal Poly Subsidy Agreement ........................................................................................... 5
E. Farebox. ............................................................................................................................ 5
F. First Transit Contract ........................................................................................................ 5
G. Fuel Costs ......................................................................................................................... 6
H. General Government ........................................................................................................ 6
I. Short Range Transit Plan ................................................................................................. 6
III. FISCAL IMPACT ................................................................................................................ 6
IV. EXHIBIT A – Changes in Financial Position ...................................................................... 7
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Attachment 1
Page 3
2014 Transit Fund Report
I. OVERVIEW
This report presents a review of the annual Transit Enterprise Fund for Fiscal year 2013-14 and
forecast FY 2014-15. This review looks at key issues and trends which could have an impact on
the overall health of the fund. To this regard, we are pleased to report that the Transit Fund is
balanced and the revised 2014-15 budget will be consistent with operating assumptions adopted
in the two year Financial Plan with some minor, but necessary adjustments. Federal funding
shortfalls have been offset by larger, potentially one-time only, State revenue increases. Staff
will continue to monitor Federal funding levels should this become a recurring issue.
Consequently, there is no need for fare increases or service reductions at this time. The 2013-14
Fiscal year budget is forecasted to end with a small year-end working capital surplus. The Transit
Fund is able to maintain the minimum 20% reserve level in working capital, in accordance with
the City Financial Management policy and maintain capital projects as they are currently
programed albeit with other revenue sources than originally forecasted. Restated, there are three
major themes to this report:
a. The Transit Fund is in a solid position for FY 13-14 and more so as we move into
FY 14-15. No rates changes are needed in FY 14-15
b. Federal Funding is slightly down (particularly for capital) but we are able to shift
our State funding to replace these funds – keeping important capital projects
moving forward.
c. State revenue for FY 14-15 are significantly up from projections. We are not
recommending programming all of these funds at this time; instead waiting for
our joint SRTP process to begin with RTA to make sure these dollars are spent
wisely on priority needs.
The City of San Luis Obispo’s Transit Fund, in its current state, continues to ensure there is a
viable mobility option for local residents and visitors to the area. A wide range of users continue
to receive services, including the: transit-dependent, elderly, disabled, students and commuters.
This report will briefly touch on some of the accomplishments of the past year, provide information
on Transit Fund revenue sources and expenses, and address overall transportation operations.
II. TRANSIT FUND ISSUES
A. Federal Funding – Lower than Anticipated
Federal funding assistance is provided to SLO Transit in the form of FTA 5307 grant funds.
These Federal resources are available to urbanized areas, with a population of 50,000 or more.
The SLO Urbanized area includes populations of Cal Poly, county areas and the prison to reach
City of
San Luis Obispo
B2c - 10
Attachment 1
Page 4
the 50,000 population criteria. 5307 funds are meant as operating assistance of transit services or
for capital expenses. The federal share for the funding of any one of these activities is not to
exceed 50 percent of operating expenses or 80 percent of capital expenses of the net project cost.
FTA 5307 funds for FY 13-14 are slightly less than expected. $1,918,700 was projected during
the mid-year review budgeting process. Revised numbers from SLOCOG indicate an actual
receipt of $1,725,342. This represents a shortfall of $193,358 or a -10.98% change primarily due
to reduced capital funding for bus replacements and bus stop improvements. Fiscal Year 2014-15
will likely experience a similar but lesser shortfall. Projections are yet to come from SLOCOG
but it is expected that limited capital funding will occur again in 2014-15. It is anticipated that
shortfalls in FTA capital will be made up by higher than expected state funding discussed below.
5307 funds for FY 13-14 are slightly less than expected. $1,918,700 was projected during the
mid-year review budgeting process. Revised numbers from SLOCOG indicate an actual receipt
of $1,725,342. This represents a shortfall of $193,358 or a -10.98% change primarily due to
reduced capital funding for bus replacements and bus stop improvements.
B. Proposition 1B Grant
The FY 2013-14 budget assumed we would be successful in obtaining a Proposition 1B grant for
$202,600 to assist in a bus replacement. Unfortunately, other applications in the County received
higher priority and we were unsuccessful in obtaining this amount. The next section discusses
how we will be utilizing TDA funding to keep these projects alive and moving forward. We do
not anticipate that the discretionary Proposition 1B account will be available in 2014-15.
C. State Funding - Status Quo for FY 13-14; Better than expected for FY 14-15
State funding assistance is provided to SLO Transit in the form of “TDA” funds. The State’s
Transportation Development Act (TDA) funding is comprised of two sources of funding for
transportation programs. The first, Local Transportation Fund (LTF), is derived from ¼ cent
collected in retail sales taxes. The second, State Transportation Assistance (STA), is derived
from the statewide sales tax on diesel fuel. Both of these funds are distributed to the regions by
the State. The regional agency, SLOCOG, then allocates this amount to each of the seven cities,
the County, SLOCOG, and the Consolidated Transportation Services Agency for the San Luis
Obispo region. LTF funds are apportioned according to population numbers, for: public transit,
street/road improvements and bikeway/pedestrian facilities. STA funds are formula-based and
used for public transit purposes.
LTF amounts for FY 2013-14 have come in as projected however, due to capital grant revenue
shortfalls in federal Section 5307, Prop 1B and several minor grants, the 2013-14 budget
projection- now reflects an excess of expenses over revenues in the amount of $39,576.
Because the capital appropriations that were tied to this grant funding will not be expended
during 2013-14, this deficit will not be realized. The unspent capital appropriations will be rolled
over to 2014-15 and previously received LTF revenues in the amount of $328,000 will also be
recognized at that time to fund a portion of these costs, with the remainder funded from working
capital.
For FY 2014-15, the County’s Auditor/Controller is projecting a significant increase in TDA
revenues than previously forecast. This amount has been verified by SLOCOG and is shown in
B2c - 11
Attachment 1
Page 5
their revised budget for FY 14-15. Staff anticipates a very positive year end surplus ($677,700)
for FY 2014-15 even after using state funding to assist in backfilling less than expected Federal
capital funds.. Staff is not recommending that these amounts be programed for service changes
or CIP augmentation. SLO TRANSIT and RTA are about to begin a joint effort on updating our
Short Range Transit Plans. Completion of this plan will result in recommendations which could
require use of the above surplus for implementation. Staff will return to Council with both the
recommendations and potential funding scenarios in the FY 14-15 Mid-Year Budget Update and
the FY 15-17 Financial Plan process.
D. Cal Poly Subsidy Agreement
There are no changes to the Cal Poly Subsidy Agreement at this time.
Table 1 – CalPoly Subsidy Schedule
Fiscal Year Subsidy Amount % Increase
2013/14 403,104 2.00%
2014-15 415, 197 3.00%
2015-16 427,653 3.00%
E. Farebox – Our farebox projections through the end of FY 2013-14 are on target
Federal transit policy requires that annual farebox revenue equals 20% of the operating budget.
The 2013-14 Fiscal Year farebox ratios are projected to hover around the 20% requirement. The
$247,696 collected in farebox revenue, along with the CalPoly subsidy program, total $650,800.
This represents 19.8% of the total operating budget for the transit system. Staff is confident that
program savings will occur to attain a 20% farebox recovery by year end. No rate increase is
necessary for FY 14-15.
F. First Transit Contract
On July 1, 2013 the City Council awarded the contract for Purchase Transportation services to
First Transit through June 30, 2016. A table showing the change in cost for purchased
transportation during the contracted three years is shown in Table 2.
Table 2 – Purchase Transportation Annual Contract Costs
Fiscal
Year
Not-to-Exceed
Cost
Administrative
Rate
Per
Mile
Not-to-
Exceed Cost
Per Mile Total Cost
%
Increase
2013-14 $956,982 $2.71 $1,064,556 $2,021,549 2.8%
2014-15 $966,205 $2.81 $1,104,168 $2,070,373 2.4%
2015-16 $982,020 $2.91 $1,146,454 $2,128,475 2.8%
Overall, the City is very satisfied with the level of service and professionalism that First Transit
has provided the City for the last twelve years. First Transit has been a fair and responsive
contractor as well as a safe operator of the City’s bus fleet. Staff will continue to work with the
contractor to monitor costs and stay on budget, and identify ways to save on expenses.
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Attachment 1
Page 6
G. Fuel Costs
While fuel prices have risen recently we project that our fuel budget for FY 2014-15 should be
adequate unless there is a significant increase due to market conditions.
H. General Government
The Cost Allocation plan is a method for calculating the support expenses incurred, for time
dedicated to managing Transit related projects. The Cost Allocation Plan, which also affects the
performance of farebox ratio, is considered a Central Service Cost Allocation plan by the Federal
Transit Administration and does not require its review or certification. FY 2014-15 cost
allocation will be slightly below the original 2014-15 adopted amount of $329,300 at $298,800.
I. Short Range Transit Plan
It has long been the goal to align the SLO Transit SRTP process with RTA. This joint planning
effort will ensure that findings and recommendations are in sync between the two systems. This
coordination is critical in that man passengers transfer between the two systems. SLO Transit has
delayed its process in pursuing an updated SRTP until RTA has received word of grant funding
which will fund a joint study. RTA will be informed of the grant application outcome in June of
2014. If the grant is not award, the Council has already approved funding for SLO Transit to
complete its portion of the SRTP.
III. FISCAL IMPACT
As shown in the Transit Enterprise Fund Analysis (Attachment 1), staff is projecting FY 2013-14
expenses to exceed revenues by $39,576. As stated earlier, the deficit will not be realized since
it assumes that all capital appropriations will be spent by 6/30/14. Those capital appropriations
tied to the grants which did not materialize will not be expended before that time and are being
carried in the budget so they may be rolled over into 2014-15. Once those appropriations are
rolled over into 2014-15, they will be partially offset by $328,000 in previously received LTF
revenues, with the balance of the costs being covered by working capital. The Transit Fund is
projected to end the year with a solid working capital ($946,571) that meets our 20% reserve
policy and allows a cushion for unanticipated changes in operating costs during FY 14-15.
Funding continues to be highly dependent upon Federal and State grants and final budget
appropriations. As mentioned earlier in this report Federal Funds for capital did not come in at
projected levels for FY 13-14 and we anticipate that FY 14-15 will be similar. There is a high
level of need for capital funding between RTA and SLO Transit and so balancing the funding for
the two entities is a major goal of the FTA funding process. Fortunately our stringer than
anticipated State revenues allows us to shift funds to these capital projects to keep them moving
forward in FY 13-14 and next year.
The changes in Financial Position is included as part of the 2014 Transit Fund Review and show
that overall revenues are projected to meet or exceed expenditures in 2014-15, leaving a positive
year-end balance of $1,624,229. The revised 2013-14 budget and projected funding for the
2014-15 Fiscal Year includes assumptions of revenues in key funding sources that have seen
significant changes over the past three years. The significant increases projected in FY 14-15 for
TDA funds may be a onetime only increase or may be a new “normal”. It is difficult to
determine this based upon historical TDA levels and so future years past FY 14-15 are shown as
B2c - 13
Attachment 1
Page 7
a conservative budget which minimizes the potential for a big swing in services levels if this
increase in state funding should not continue. Staff is working with SLOCOG to determine the
likelihood of this trend continuing into the future.
IV. EXHIBIT A – Changes in Financial Position
2013-15 TRANSIT FUND
FINANCIAL SCHEDULES
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CHANGES IN FINANCIAL POSITION - TRANSIT FUND
2010-11 2011-12 2012-13 2012-13 2012-13 2013-14 2013-14 2014-15 2014-15
Actual Actual Mid-Year Budget
Year-End
Revised Budget Actuals Mid Year Budget Revised Budget Budget Revised Budget
Revenues
Investment and Property Revenues 10,531 24,100 5,700 5,700 3,100 5,800 5,800 5,800 5,800
Subventions and Grants
TDA Grants (LTF) 1,046,1531,177,5001,618,700 1,050,700 1,118,034 1,799,700 1,715,494 1,065,694 1,941,563
TDA Grants (STA)273,766 - 177,706 177,706 176,137
Other Grants (ARRA, Prop 1B, Other)312,893 620,600 539,700 544,300 322,947 395,900 22,100 30,300 30,300
FTA Grants 2,103,5921,419,7001,757,900 1,890,800 1,690,100 1,918,700 1,725,342 1,764,000 1,570,000
Service Charges 592,032 626,500 618,600 639,400 625,300 650,700 650,800 669,500 669,500
Other Revenues 957 35,900 5,000 5,000 29,700 20,400 5,000 4,000 4,000
Total Revenues 4,066,158 3,904,300 4,545,600 4,135,900 4,062,947 4,791,200 4,302,242 3,717,000 4,397,300
Expenditures
Operating Programs
Transportation 2,536,2962,617,0002,989,300 2,826,500 2,746,600 2,965,809 2,968,425 2,930,900 2,939,600
General Government 257,200 476,500 416,900 416,900 416,900 320,400 320,400 329,300 290,742
Total Operating Programs 2,793,496 3,093,500 3,406,200 3,243,400 3,163,500 3,286,209 3,288,825 3,260,200 3,230,342
Capital Improvement Plan Projects 1,010,636 826,3001,002,800 1,175,800 903,200 1,052,993 1,052,993 528,500 497,200
Total Expenditures 3,804,132 3,919,800 4,409,000 4,419,200 4,066,700 4,339,202 4,341,818 3,788,700 3,727,542
Other Sources (Uses)
Cashflow adjustment for working capital (700)
% PERS Employer Contribution (1,400)
Estimated Non-Staffing Savings -
Estimated Staffing Savings -
Potential MOA Adjustments - - - - - - -
Savings 0
Loss on Disposition - - - - -
Other Sources (Uses)(2,100)7,400 - - -
Total Other Sources (Uses)(2,100) 7,400 - - (700) - - - (1,400)
Revenues and Other Sources (Over/Under)
Expenditures and Other Uses 259,926 (8,100) 136,600 (283,300) (4,453) 451,998 (39,576) (71,700) 677,658
Working Capital, Beginning of Year 838,600 998,700 990,600 990,600 990,600 986,100 986,147 1,238,400 946,571
Working Capital, End of Year Fund Reserves 1,098,526 990,6001,127,200 707,300 986,147 1,438,098 946,571 1,166,700 1,624,229
20% Minimum Reserve Fund Balance - Operating Costs 618,700$ 648,680$ 632,700$ 657,242$ 657,765$ 652,040$ 646,068$
Available WC for 1x Capital Expenses or other 371,900$ 58,620$ 353,447$ 780,856$ 288,806$ 514,660$ 978,161$
Farebox Ratio (20% State Transit Development Act Requirement)
Total Fares / Total Operating Expenditure 21.2%20.3%18.2%#19.7%19.8%19.8%19.8%20.5%20.7%
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