HomeMy WebLinkAbout06/01/2004, PHI E - TRANSIT FUND REVIEW FOR 2004-05 council M wwD�
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CITY OF SAN LUIS OBISPO
FROM: Michael D. McCluskey, Public Works Dir to
PREPARED BY: David Elliott,Administrative Services Manage
SUBJECT: TRANSIT FUND REVIEW FOR 2004-05
CAO RECOMMENDATIONS:
1. Review and accept the 2004 annual transit fund review
2. Approve a budget amendment that closes out a) revenue account balances where grant fund-
ing is no longer available and b) expense account balances for completed or cancelled capital
projects
DISCUSSION
Worksheet Assumptions
The attached worksheet, "Changes in Working Capital - Transit Fund", projects sources of
revenue and uses of revenue for the Transit Fund over the five-year period from 2004-05 to
2008-09. Worksheet projections are based on the following assumptions:
1. State Transportation Development Act (TDA) grant apportionments will beat levels stated in
the Short Range Transit Plan.
2. Federal Transit Administration (FTA) grant apportionments will be at levels stated in the
Short Range Transit Plan.
3. Ridership will increase by five percent in 2004-05 and by three percent annually thereafter.
4. Bus pass and cash fare revenue will increase commensurate with ridership.
5. The following grant revenues will be eliminated because associated projects have.been com-
pleted or cancelled:
a. State Proposition 116 grant @ $10,000
b. Unidentified Federal grant @ $1,000,000
c. Unidentified State grant @ $25,000
d. Federal STP/SHA grant @ $100,000
e. State TCI grant @$36,900.
6. The following capital project appropriations will be closed out because the associated pro- .
jects have been completed or cancelled:
a. Bus Yard HVAC Improvements @ $6,050
b. Bus Replacements 2001-02 @ $2,801
c. NARF - Transit Site @ $1,020,054
d. Short Range Transit Plan @ $364
e. Wheelchair Lift Replacement @ $905
f. Emission Reduction Equipment @ $14,294
g. Railroad Transportation Center @ $2,750
Transit Fund Review for 2004-05 Page 2
h. Bus Yard Lot Resurfacing @ $10,803
i. Radio Equipment @ $14,248.
7. Capital project appropriations will include:
a. Capital Cost of Contracting @ $300,000 in 2004-05, $175,000 in 2005-06, $75,000 in
2006-07, $75,000 in 2007-08, and $200,000 in 2008-09
b. Bus Stop Improvements and Bus Identification @ $37,000 each year from 2004-05 to
2006-07
c. Fleet Replacement- Transit @ $275,000 each year from 2005-06 to 2007-08
d. Transit Fund Share of Information Technology Projects @ $2,300 in 2004-05, $81,300 in
2005-06, and$37,300 in 2006-07.
Conclusions
From the worksheet Public Works has concluded that current transit fares, anticipated FTA and
TDA grant apportionments, and accumulated working capital balances will cover all planned
operating expenses and capital outlays from 2004-05 through 2008-09, including replacement of
three buses. Nonetheless, there is one problem that must be addressed. TDA regulations state
that money collected from fares must cover at least 20 percent of operating costs. Projections
show that, under current rates, fares will amount to 20 percent of operating costs in 2004-05 and
2005-06, but this ratio will fall to 19 percent from 2006-07 through 2008-09. Options and
recommendations for resolving this problem may. have to be addressed sometime before the
2006-07 budget is adopted. Projections of fare revenue are fairly conservative because they
assume only modest ridership increases as a result of service changes enacted in January 2004,
along with ongoing marketing efforts. If ridership increases exceed these modest expectations,
the whole concern about meeting fare to cost ratios will be obviated.
Significant Operating Program Change Requests and CIP Project Requests
There are no significant operating program change requests or CIP project requests for 2004-05
that have not already been reviewed and approved by the Council.
FISCAL IMPACT
Closing out revenue account balances where grant funding is no longer available and expense
account balances for completed or cancelled capital projects will reduce the projected working
capital balance at the end of 2003-04 by $238,700, from $401,300 to $162,600.
ATTACHMENTS:
Changes in Working Capital—Transit Fund
I:\lCouncil Agenda Reports\2004 agenda reports\Transportation and Development Review (Bochum)\Transit (O'Dell)\Transit
Fund Review 04-05.doc
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