Proposed FY2017 Budget Overvie Library/goHART/pdfs/board/Budget overview.pdf · • Continued ad valorem growth of 7.543% for FY17 (DOR estimate 7.9%) ... over FY16 ATU 653.5 639

Proposed FY2017 Budget Overview

HART Board of Directors June 6, 2016

Budget Overview

• The FY2017 Proposed Operating and Capital Budget is balanced at $91,581,278 $6,921,453 higher, or 8.18% more than the FY2016 Budget

• The FY2017 Proposed Operating Budget is $72,237,977 $4,212,498 higher, or 6.19% more than the FY2016 Budget Actually, represents over $7.5 million of additional investment

• The FY2017 Proposed Capital Budget is $19,343,301 $2,708,955 higher, or 16.29% more than the FY2016 Budget

FY2017 Budget DevelopmentKey Drivers and Assumptions

• Incremental growth in operating revenue • Bus ridership continuing to plateau (1% growth estimated FY17)• Continued ad valorem growth of 7.543% for FY17 (DOR estimate 7.9%)

Additional revenue includes CNG State rebates  MegaBus/Red Coach/Hidden River P&R revenue

• Continued stagnate growth in capital funding • Slowing of community focused capital projects• ATU and Teamster bargaining negotiations on‐going• Shift to performance based compensation for NB employees

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FY2017 Budget Development Key Goals

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• Maintain current service levels  Provide limited enhancements to current service based on Transit 

Development Plan (TDP) TDP is baseline for budget development as funding allows –

commitment to HART Board beginning in FY2014 budget prep Enhancements to routes during non‐peak service

• Expansion of “innovative programs” like First/Last Mile and Taxi Program• Continued long‐term fiscal sustainability – migration from Federal 

reliance for operating support over next 5 years• Prepare HART for future growth• Strategic investments in Community, Employees and Organization

FY2017 Operating Budget DevelopmentKey Drivers

• Investment in community• Pursuant to the TDP’s Status Quo plan• 5.2% increase in service; $1.1 million of enhanced/new service; 18,500 revenue miles

• Third consecutive year of service enhancement• FDOT partnership – funding operating/capital for New Tampa Flex

• Route 8 – 30 minute frequency on Saturday• Route 36 – 30 minute frequency on Saturday/extend to 10:00 p.m. weekdays• Route 37 – 30 minute frequency on Saturday• Route 46 – Extend to 10:00 p.m. weekdays• Route 57 – Sunday service• Route 572 – Northdale Flex – 30 minute service weekdays• Route 575 – New Tampa Flex – Commence service – Weekday and Saturday

FY2017 Operating Budget DevelopmentKey Drivers

• Investment in employees Lynda.com online training Capstone USF training program IT Certification ESMS Auditor training Roadeo Pay for Performance

• Investment in the organization Project Management Office (PMO) Performance Scorecard ISO 14001 Certification/ESMS

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Balancing Needs with Revenues• HART’s FY2017 proposed budget offers the following key elements:

– Maintains current bus and paratransit service levels – Addition of over 18,500 hours of service enhancements to 6 routes and the 

commencing of the new Tampa Flex route– Bargaining step increases and performance bonuses (based on current contract)– Non‐bargaining Pay For Performance– Addition of new 21.5 FTEs for increased operational service levels and operational 

support – Funding for the following additional activities for FY2017:

• Taxi‐Voucher Program and First Mile/Last Mile• Parts inventory• Environmental remediation • Full TDP Update/Comprehensive Operations Analysis/Shelter Study• Facility Assessment• IT Modernization/Final Phase of Wi‐Fi• Continued smartcard implementation• Voice of the Customer surveys

– Nominal use of fund balance (mitigate prior to public hearings)

FY2017 Proposed Operating Revenues

Ad Valorem$36,847,650 

51%

Passenger Fares$17,320,549 

24%

Formula Grant$9,799,499 

14%

Other Grants$6,692,098 

9%

Other Revenues$1,578,181 

2%

$72,237,977

FY2017 Proposed Operating Revenues

FY2014 FY2015 FY2016 FY2017 Year to Year Actual Actual Budget Proposed Differential

Revenue Fare Revenues 3,671,294$ 4,505,139$ 4,659,140$ 4,705,819$ 46,680$ Pass Revenues 12,751,865$ 12,092,177$ 12,542,271$ 12,614,729$ 72,458$ Advertising Income 903,308$ 1,033,518$ 774,942$ 755,770$ ( 19,172 )$ Interest Income 20,823$ 84,466$ 43,726$ 84,466$ 40,740$ Other Income 517,016$ 301,262$ 562,776$ 737,945$ 175,169$ Ad Valorem Tax Revenue 30,171,450$ 32,398,547$ 35,139,712$ 36,847,650$ 1,707,938$ Ad Valorem Transfers ( 408,756 )$ ( 80,609 )$ ( 255,000 )$ 0$ 255,000$ Federal Operating Grants 11,508,660$ 10,726,311$ 9,793,406$ 9,799,499$ 6,093$ State Operating Grants 5,295,505$ 4,906,810$ 5,319,707$ 5,691,159$ 371,452$ Local Operating Grants 1,058,756$ 650,000$ 650,000$ 650,000$ -$ Tampa Historic Streetcar, Inc. 215,107$ 120,884$ 350,939$ 350,939$ -$ Grand Total 65,705,028$ 66,738,505$ 68,025,479$ 72,237,977$ 4,212,498$

FY2017 Proposed Operating Expenses

Employee costs$43,095,808 

60%

Health care$5,415,414 

7%Parts and Supplies

$4,755,271 7%

Fuel and Fluids$5,438,375 

7%

Legal fees, claims, premiums$3,347,174 

5%

Contract/Professional Services$4,613,236 

6%Other

$5,572,699 8%

$72,237,977

• Materials Management Manager• Network VOIP Administrator• Talent Acquisition & Organizational Development Coordinator• Labor Relations Coordinator• Bi‐Lingual Travel Trainer • Data Analyst • New Tampa Flex ‐ 6 Flex Operators (ATU)• Service enhancements– 2.5 Flex Operators (ATU)• Service enhancements – 6 Bus Operators (ATU)• Streetcar Master Paint and Body Technician (Teamsters)

21.5 FTE’s = increase of $955K in personnel services

Proposed FY2017 Additional FTE’s

Position Breakdown

ATU ‐ 653.50 (78%) Teamsters ‐ 50.00  

(6%)

Non‐bargaining ‐ 132.81 (16%)

ATU: Bus and Van Operators, Customer Service Reps, Mechanics, and Inventory Specialists

Teamsters:Maintenance and Transportation Supervisors and Dispatchers

Non‐Bargaining: CEO,Executive Leadership Team, Management, Professional staff and Administrative support

Positions by UnitFY2017 Proposed FY2016

Increase over FY16

ATU 653.5 639 14.5Teamsters 50 49 1

Non‐bargaining 138.81 132.81 6Total Positions 842.31 820.81 21.5

5-Year Operating “Look Ahead”

Assumptions:

• Ad valorem based on June 1st preliminary Hillsborough County 7.543% growth rate; State DOR predicted 7.9%– FY2018 estimated at 7% – FY2019 – FY2021 based on a conservative 4.5% ad valorem growth rate

• FY2018 – FY2021 expenditure growth based on 2% TDP Status‐Quo service enhancements• Fare revenue reflects fare increase in FY2018 (FY2012 last year of fare increase); 1% increase per year in 

ridership only FY2019‐FY2021• Formula grant “calibration” from operating/preventative maintenance to Capital programming• 5‐Year “Look Ahead” represents HART’s service model as it exists today (per TDP)

Adopted Tentative Planned Planned Planned PlannedFY16 FY17 FY18 FY19 FY20 FY21

Property Taxes $35,139,712 $36,847,650 $39,426,986 $41,201,200 $43,055,254 $44,992,740Fares/Passes $17,201,411 $17,320,549 $17,666,960 $17,843,630 $18,022,066 $18,202,287Operating Grants $6,368,387 $6,692,098 $6,692,098 $6,692,098 $6,692,098 $6,692,098Formula  $9,745,665 $9,799,499 $9,000,000 $8,000,000 $7,000,000 $6,000,000Other $1,381,444 $1,578,181 $1,593,963 $1,609,902 $1,626,001 $1,642,261Revenue $69,836,619 $72,237,977 $74,380,006 $75,346,830 $76,395,419 $77,529,386

Expenses $68,025,479 $72,237,977 $73,682,737 $74,419,564 $75,907,955 $77,426,114Shortfall/Overage $1,811,140 $0 $697,270 $927,266 $487,464 $103,272

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Capital Budget

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Project Budget Funding SourceBus replacement $7,378,660 Surface Transportation Program

Regional Fare Collection $2,831,024 5307 Formula

Demand Response Vehicles $1,801,574 5339 Formula

21st Avenue HM Roof Construction $1,657,488 5307 Formula

Streetcar Capital Maintenance $1,346,500 5339 Formula

Premium Transit Feasibility Study $1,000,000 FDOT

IT Modernization $239,675 5339/5307 Formula

Security Projects $568,514 5307 Formula

TDP/COA/Bus Stop Analysis $475,000 5307 Formula

Engine/Transmission Replacements $429,000 5307 Formula

Wireless Phase III (Para/Flex) $331,000 5307 Formula

21st Avenue Admin Bldg Roof $250,000 5339/5307 Formula

21st Avenue Stormwater Assessment $117,223 5307 Formula

Van Maintenance Facility Study $200,000 MPO (tentative)/5307 Formula

Customer Service MTC – Remodel $151,500 5339/5307 Formula

Transit Center Restroom Renovations $138,491 HART ad valorem

Basic Transit Infrastructure $127,652 5307 Formula

Procurement Facility Renovation $100,000 5307 Formula

Operator Breakrooms $100,000 5307 Formula

Facility Assessment $100,000 5307 Formula

Total $19,343,301

Next Steps• July 1st Final property valuation

Proposed Budget to Charter Jurisdictions• July 18th Board Meeting – budget review and setting of 

“Not To Exceed” millage rate• Sept (TBD) Public Hearings for budget adoption

Historic Budgets

*proposed

Fiscal Year Operating Capital Total % Change in annual operating budgets

FY03 $33,833,000  $16,328,438  $50,161,438 FY04 $36,154,894  $15,249,374  $51,404,268  6.9%FY05 $39,440,700  $18,376,804  $57,817,504  9.1%FY06 $50,173,433  $15,720,795  $65,894,228  27.2%FY07 $59,365,060  $13,127,660  $72,492,720  18.3%FY08 $59,412,080  $16,720,590  $76,132,670  0.1%FY09 $63,884,330  $59,690,740  $123,575,070  7.5%FY10 $62,490,300  $85,635,460  $148,125,760  ‐2.2%FY11 $62,729,270  $77,488,520  $140,217,790  0.4%FY12 $60,730,750  $40,087,692  $100,818,442  ‐3.2%FY13 $61,580,511  $43,785,649  $105,366,160  1.4%FY14 $63,668,388  $22,881,766  $86,550,154  3.4%FY15 $65,966,577  $18,084,813  $84,051,390  3.6%FY16 $68,025,479  $16,634,336  $84,659,815  3.1%FY17* $72,237,977  $19,343,301  $91,581,278  6.2%