Member Municipalities of the Centre Area Transportation Authority. Hugh A. Mose, General Manager. DATE: April 14, 2010

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2 TO: FROM: Member Municipalities of the Centre Area Transportation Authority Hugh A. Mose, General Manager DATE: April 14, 2010 SUBJECT: CATA s FY 2010/2011 DRAFT Budget On behalf of the Centre Area Transportation Authority (CATA) Board of Directors, I am pleased to present for your consideration CATA=s FY 2010/2011 DRAFT Budget, as approved by the Board at their March 22, 2010 meeting. After several years in which CATA s funding situation was improving, this year the pendulum is swinging the other way. For the third year in a row our allocation of state funding will be absolutely flat, while our federal transit formula assistance will grow only marginally. As a result we expect to raise fares, and we are requesting a small increase in local shares. Even so, we anticipate having to draw on our reserves (our carryforward of unspent federal transit assistance) in order to balance the Operating Budget. As you might expect given these financial constraints, we will not be able to increase transit service this year, even though transit ridership continues to grow. We will make selected revisions, such as replacing tripper buses with regularly scheduled trips, and serving Stormstown and Graysdale with two separate routes. However, overall the total number of bus-hours will be no more than the number operated in the current year. This DRAFT Budget does include one new supervisory position in Maintenance, where we currently have a sole management person running a 22-person, 24-hour operation. Even though we do not anticipate any increase in CATABUS service, we expect to continue to expand the CATACOMMUTE vanpool program. Although we do not have the resources to initiate regional commuter bus service this year, we will work with the Area Transportation Authority to develop service from the Moshannon Valley, and work within Centre County to secure state and/or federal assistance, as well as the required local match, to support future service from Penns Valley. In the CATARIDE paratransit program we will begin to implement the recommendations coming out of the evaluation of paratransit services offered by CATA and the Centre County Office of Transportation (CCOT). The capital budget anticipates a number of significant projects. Federal funding earmarks, the formula capital component of Act 44, the Congestion Mitigation and Air Quality (CMAQ) program and other miscellaneous sources of funding will allow CATA to continue its bus fleet restoration program with the rehabilitation of some buses and the replacement of others. We will finish the replacement of the CNG tanks on our 1996 vintage buses, complete the second phase of CATA s technology initiative, and begin the architectural and engineering work associated with the expansion of our Cato Park maintenance facility. i

3 In their annual budget deliberations, the CATA Board of Directors discussed at length the matter of a fare increase and decided that, after eight years, CATA needs to raise its cash fares, pass rates and token prices. The CATABUS base fare is expected to increase from $1.25 to $1.50 with corresponding increases in token prices and OnePass rates. Proposed CATARIDE fares are $2.00 for seniors and $3.00 for persons with disabilities. However, it should be noted that the very large majority of CATA passengers are riding on programs under which fares are prepaid, and these rates have been, and will continue to be, negotiated upward each year. During the years when state funding was not keeping pace with the cost of providing transit service, CATA s local funding partners repeatedly increased local shares. When CATA s funding situation improved, for three years running CATA returned the favor by not seeking an increase. This year, however, we are once again requesting a 5.0% increase in local funding. The proposed local funding for CATA s Operating Budget is $440,785. Of this amount, only $296,545, or less than 2.5% of the budget, is requested from the taxpayers of CATA s participating municipalities; contributions from Penn State and various public/private partnerships comprise the remainder. For the Capital Budget, CATA is requesting $62,400, the same amount as last year. This request is consistent with the approach adopted eight years ago when the COG Finance Committee first suggested a capital reserve account to even out the large year-to-year fluctuations in local shares required for transit capital projects. The $62,400 is substantially more than the required local share for current projects for which local capital funding has not yet been provided. As was anticipated when the Capital Reserve was created, the excess contributions will be held in the account until needed in future years. Individual municipalities local shares are impacted by a number of factors in addition to the requested 5.0% overall increase. For instance, ridership is up on the student housing corridor routes, which tends to drive down their required local share. The reverse is true on many of our neighborhood routes, where ridership has declined with falling gasoline prices. On the other hand, we have had to add service in the student housing areas, which pushes up the local shares of the affected municipalities, while others fall. In addition, separating the G (Stormstown) Route into two routes, one extending out to Halfmoon Township and the other staying within the confines of CATA s member municipalities, has had the unintended consequence of greatly increasing the local share attributable to Patton Township. The local share allocations in this version of the DRAFT Budget have been revised to account for the closure of the Bank of America facility in Ferguson Township. Bank of America has been providing a substantial Public/Private Partnership contribution to Ferguson Township to help support extended service hours on the K (Cato Park) Route. This $11,160 payment benefits not just the Township and the Borough of State College, but through the Regional Factor component of the Miller Formula the other CATA member municipalities as well. While we could not restate the various line items in the Budget to account for the loss of fare revenue due to the closure and the savings associated with a possible reduction in service, we have, with the concurrence of the COG Finance Committee, reallocated local shares as accurately as possible. I and my colleagues on the CATA staff, as well as members of the CATA Board of Directors, will be pleased to meet with the COG Finance Committee, the COG General Forum and the Boards of Supervisors and Councils of the individual municipalities to discuss the details of the FY 2010/2011 DRAFT Budget and address any issues you may have. ii

4 TABLE OF CONTENTS ITEM PAGE General Manager s Memo Table of Contents i - ii iii SECTION I BUDGET SUMMARY AND LOCAL SHARES Introduction 1 Annual Operating Budget COG Format 2-6 Annual Capital Budget 7 Local Share Calculation and Allocation 9-20 SECTION II BACKGROUND INFORMATION CATA Fact Sheet CATA Organizational Structure 22 Ridership by Route Report 23 Trends in Revenue SECTION III FY 2009/2010 RECAP Goals Established by the CATA Board of Directors Other Accomplishments SECTION IV FY 2010/2011 POLICY CONSIDERATIONS Background 31 Revenue Issues New Programs, Services & Activities Service Planning 35 Personnel Issues Summary 36 SECTION V FY 2010/2011 WORK PLAN Goals Set by the Board of Directors 37 Other Programs, Services and Activities SECTION VI OPERATING BUDGET FY 2010/2011 DRAFT Operating Budget (CATA Format) Budget Narrative - Introduction 46 Revenue Detail Expenditure Detail SECTION VII CAPITAL BUDGET Introduction 63 Capital Projects Requiring Local Match 63 Capital Local Share Allocation 64 Capital Budget Narrative SECTION VIII LONG TERM OUTLOOK CATA Strategic Plan Operating Budget: Five-Year Projection Capital Improvement Program Capital Program Five Year Projection 75 Capital Reserve Account 76 iii

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6 SECTION I BUDGET SUMMARY AND LOCAL SHARES Introduction The following five pages contain a line-item summary of the FY 2010/2011 Draft Operating Budget, presented in the standard COG Format to facilitate review by the COG Finance Committee, elected officials of CATA s member municipalities, and other local officials. Also included is a one-page summary, replicating the COG Format, which identifies those capital items for which CATA is requesting local share of 3% as the required match for state and federal capital assistance. Again this year, as approved by the COG Finance Committee in FY 2007/2008, the local match amount is $62,400, in anticipation of higher capital funding needs in future years, including a planned expansion of the bus storage and maintenance areas of the Cato Park facility, CNG tank replacements and bus acquisitions. Because the total local funding request for capital projects for the current year is below $62,400, the difference of $54,067 is added to the Capital Reserve Account, established a number of years ago to stabilize annual capital funding requirements from year to year. Following the tables is a narrative describing the calculation and allocation of local shares, accompanied by the spreadsheets used to calculate the miles of service in each municipality, estimate a regional factor for each route, and finally allocate the required local share by route among the participating municipalities and Penn State. The complete budget, with an overview of transit funding and narratives explaining each individual line item, can be found in Section VI - Operating Budget. The table below provides a summary of the total and individual local operating and capital contributions requested for FY 2010/2011. FY 2010/2011 Local Shares: Operating and Capital OPERATING CAPITAL TOTAL State College Borough $79,188 $11,210 $90,398 Ferguson Township $75,447 $10,681 $86,128 Patton Township $70,373 $9,962 $80,335 College Township $45,749 $6,477 $52,226 Harris Township $22,439 $3,177 $25,616 Bellefonte Borough $15,430 $2,184 $17,614 Spring Township $15,261 $2,160 $17,421 Benner Township $4,535 $642 $5,177 Halfmoon Township $4,762 $675 $5,437 Penn State University $107,600 $15,232 $122,832 Total Operating and Capital $440,784 $62,400 $503,184 1

7 AGENCY: Acct. No. ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF REVENUES Centre Area Transportation Authority Prepared 03/16/2010 Budgeted Receipts Actual Receipts Budgeted Receipts Estimated Receipts Account CASH BALANCE N/A N/A N/A 90,000 ** 50,000** Anticipated Receipts DEPARTMENT REVENUES Interest Earnings 18,500 1,782 2,400 2,100 2,100 Subtotal 18,500 1,782 2,400 2,100 2,100 INTERGOVERNMENTAL REVENUE FEDERAL GRANTS CMAQ Projects 96,800 83, Transportation Planning Operating Assistance: Annual Apportionment + 2,042,912 2,106,791 2,199,730 2,160,000 2,203,200 Prior Year Carry-In - 500, ,637 2,181,296 2,367,428 2,363,611 Transferred to Capital Program -487, * Total Operating Available: 2,055,455 2,367,428 4,381,026 4,527,428 4,566,811 Total Operating Used: 1,555,455 1,039,363 1,961,368 2,163,817 2,493,885 * Total Operating Not Used: 500, ,328,065 2,419,657 2,363, ,072,926 Subtotal 1,652,255 1,123,240 1,961,368 2,163,817 2,493,885 STATE/SPECIAL GRANTS Senior Citizen Shared Ride 193, , , , ,000 Transportation Planning Operating Assistance 3,378,252 3,378,286 3,378,286 3,378,286 3,378,286 Special Demonstration Grants RideShare Support 33,862 33,862 33,862 33,862 35,555 Subtotal 3,605,114 3,566,448 3,567,148 3,565,148 3,593,841 MUNICIPAL CONTRIBUTIONS Bellefonte Borough 15,323 15,323 15,288 15,288 15,430 Benner Township 4,374 4,374 4,533 4,533 4,535 College Township 46,883 46,883 46,439 46,439 45,749 Ferguson Township 76,854 76,854 76,692 76,692 75,447 Harris Township 20,374 20,374 21,083 21,083 22,439 Halfmoon Township 0 0 4,601 4,601 4,762 Patton Township 63,803 63,803 61,083 61,083 70,373 Penn State University 102, , , , ,600 State College Borough 74,575 74,575 72,500 72,500 79,188 Spring Township 15,133 15,133 15,100 15,100 15,261 Subtotal 419, , , , ,784 *Memo item only where shaded; only actual amount used added in those columns. **As requested by the COG Finance Committee during last years's buget review,an estimate of unrestricted cash balances are shown. Although the amounts are comparatively low, the Authority's cash flow is at its lowest point at the end of the fiscal year, when Reduced Service decreases the amount of passenger revenue and grant payments for the year have already been received and disbursed. 2

8 Prepared 03/16/2010 AGENCY: Acct. No. Centre Area Transportation Authority Account ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF REVENUES Budgeted Receipts Actual Receipts Budgeted Receipts Estimated Receipts Anticipated Receipts MISCELLANEOUS REVENUE Farebox 688, , , ,000 1,035,800 "ONEPASS" 595, , , , ,000 Football Shuttle 48,500 50,108 52,000 59,172 52,000 Paratransit 90,000 74,671 78,500 76,500 82,500 Vanpool 113, , , , ,000 Special Purchase of Service 1,177,500 1,140,777 1,201,900 1,174,800 1,266,000 LOOP Revenue 1,944,300 1,848,555 1,846,900 1,905,500 2,014,000 Charter Service Advertising 16,000 15,382 12,000 20,000 20,000 Vehicle Lease & Rental Miscellaneous 15,100 41,343 4,600 14,400 7,100 Subtotal 4,687,400 4,844,015 4,990,900 5,144,312 5,558,400 TOTAL: 10,383,064 9,955,280 10,941,611 11,295,172 12,089,010 CENTRE REGION COUNCIL OF GOVERNMENTS 3

9 Prepared 03/16/2010 AGENCY: Acct. No. Centre Area Transportation Authority ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF APPROPRIATIONS AND EXPENDITURES Budgeted Appropriation Actual Expenditure Budgeted Appropriation Estimated Expenditure Anticipated Expenditure Account PERSONNEL Salaries (Staff) 1,195,000 1,205,314 1,295,000 1,293,100 1,405,200 Salaries (Part-Time Interns) 0 1, ,048 7,700 Drivers' Wages 3,322,064 3,326,875 3,607,766 3,835,300 4,084,200 Maintenance Wages 789, , , , ,000 Employee Benefits 2,458,500 2,044,375 2,300,545 2,435,524 2,635,100 Subtotal 7,764,864 7,318,121 8,087,311 8,486,972 9,090,200 OPERATING EXPENSES MAINTENANCE Revenue Vehicle Maintenance 310, , , , ,000 Service Vehicle Maintenance 4,500 3,362 5,500 5,700 5,700 Radio Maintenance 10,100 9,239 10,600 10,000 10,000 Building & Equipment Maintenance 110, , , , ,000 Uniforms & Accessories 18,100 18,414 19,900 19,000 19,000 Contract Maintenance 12,400 3,788 12,400 10,000 12,500 Utilities 150, , , , ,100 Paratransit 18,000 14,855 17,000 24,000 24,500 Vanpool 11,000 18,226 20,000 21,300 22,000 Training 9,600 6,029 12,600 10,000 15,300 Miscellaneous 15,000 26,817 26,000 26,000 26,000 Subtotal 668, , , ,000 1,015,100 TRANSPORTATION Revenue Vehicles - Tires 53,200 51,945 58,500 58,500 63,000 Service Vehicles - Tires 1, , ,560 Revenue Vehicles - Fuel & Lube 684, , , , ,000 Service Vehicles - Fuel & Lube 23,500 18,280 22,000 26,800 29,500 Safety & Training 34,000 11,351 34,000 28,000 35,000 Insurance 157, , , , ,000 Shelters & Signs 5,000 9,148 9,600 6,400 6,800 Paratransit 435, , , , ,100 Vanpool 110, , , , ,000 Uniforms 8,000 5,230 5,500 5,500 2,000 Miscellaneous 12,000 13,126 14,100 17,500 16,400 Subtotal 1,523,000 1,360,356 1,497,100 1,436,500 1,542,360 CENTRE REGIONAL COUNCIL OF GOVERNMENTS 4

10 Prepared 03/16/2010 AGENCY: Acct. No. Centre Area Transportation Authority Account ADMINISTRATION ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF APPROPRIATIONS AND EXPENDITURES Budgeted Appropriation Actual Expenditures Budgeted Appropriation Estimated Expenditures Anticipated Expenditures Temporary Help 0 7,861 1,000 7,300 0 Insurance 32,300 27,237 29,800 30,900 33,000 Pass Sales & Supplies 10,000 10,301 8,500 13,000 11,500 Professional Services 164, , , , ,000 Advertising 25,000 26,597 24,500 25,500 31,150 Marketing Support 38,000 28,911 31,700 38,000 27,400 Printing 2, ,200 3,400 3,400 Schedule Printing & Design 31,300 23,527 32,000 26,500 27,800 Telephone 18,000 12,432 13,500 14,000 14,300 Office Supplies & Services 23,200 36,726 31,500 40,600 41,500 Dues & Subscriptions 24,000 21,873 26,000 27,000 29,000 Travel & Meetings 31,500 24,485 31,500 31,500 30,300 Interest ,000 3,300 Miscellaneous 9,000 10,313 11,500 20,000 19,000 Paratransit 16,200 14,858 15,000 13,500 14,000 Vanpool 1,500 3,063 3,500 3,500 3,700 Subtotal 426, , , , ,350 TOTAL: 10,383,064 9,955,279 10,941,611 11,295,172 12,089,010 CENTRE REGION COUNCIL OF GOVERNMENTS 5

11 Prepared 03/24/2010 ANNUAL OPERATING BUDGET PERSONNEL SCHEDULE AGENCY: Centre Area Transportation Authority 2009/ / / / / / / /2011 Proposed Salary Medical Workers' Disability/Life Unemployment Acct. No. Account Salary* Range FICA Insurance Compensation Retirement Insurance Insurance General Manager $105,248 N.A. - N.A. $8,293 $11,306 $449 $24,933 $614 $0 Assistant General Manager $82,577 $62,477 - $99,963 $6,601 $11,306 $357 $4,228 $340 $0 Director of Administration $85,635 $56,668 - $90,669 $6,680 $11,306 $361 $20,083 $512 $0 Director of Operations $62,920 $51,400 - $82,240 $5,143 $15,868 $278 $5,378 $381 $0 Service Development Manager $71,198 $50,910 - $76,366 $5,826 $0 $315 $6,093 $430 $0 Director of Maintenance $58,427 $50,910 - $76,366 $4,810 $11,306 $260 $5,030 $293 $0 Human Resources Manager $59,904 $48,486 - $72,729 $4,876 $6,853 $264 $5,099 $248 $0 Marketing Manager $59,904 $46,177 - $69,266 $4,769 $15,868 $258 $4,987 $324 $0 Lead Supervisor N.A. $41,884 - $62,826 $3,517 $6,853 $190 $3,678 $150 $0 Operations Supervisor $53,338 $41,884 - $62,826 $4,354 $0 $236 $4,554 $280 $0 Operations Supervisor $51,866 $41,884 - $62,826 $4,266 $6,853 $231 $4,461 $276 $0 Operations Supervisor $50,398 $41,884 - $62,826 $4,041 $11,306 $219 $4,226 $248 $0 Operations Supervisor $48,650 $41,884 - $62,826 $3,884 $6,853 $210 $4,062 $298 $0 Operations Supervisor $45,656 $41,884 - $62,826 $3,761 $6,853 $203 $3,933 $300 $0 Operations Supervisor $44,533 $41,884 - $62,826 $4,250 $11,306 $230 $4, $226 $0 Accounting Manager $52,936 $41,884 - $62,826 $4,297 $6,853 $232 $4,494 $203 $0 Grants Manager $44,533 $41,884 - $62,826 $3,619 $6,853 $196 $3,784 $165 $0 Assistant to the General Manager $44,533 $41,884 - $62,826 $3,719 $6,853 $201 $3,890 $150 $0 Commuter Services Manager $46,800 $39,573 - $55,402 $3,773 $6,853 $205 $3,943 $244 $0 Facilities Manager N.A. $39,573 - $55,402 $3,034 $6,853 $164 $3,173 $140 $0 Transportation Analyst $41,500 $35,894 - $50,251 $3,228 $11,306 $175 $3,376 $195 $0 Purchasing Coordinator $41,350 $35,894 - $50,251 $3,291 $11,306 $178 $3,442 $219 $0 Bookkeeper $33,114 $31,007 - $43,409 $2,778 $0 $150 $2,905 $155 $0 Customer Service Representative $32,302 $29,347 - $38,151 $2,501 $6,853 $135 $2,616 $194 $0 Customer Service Representative $29,266 $29,347 - $38,151 $2,393 $6,853 $129 $2,502 $174 $0 SUBTOTAL $1,246,588 - $107,704 $204,426 $5,826 $139,314 $6,759 $0 Part-Time HR Office Assistant $15.53/Hr. $ $17.57/ Hr. $1,278 $0 $69 $1,336 $0 $0 Part- Time Receptionist $12.75/Hr. $ $17.57/ Hr. $1,021 $0 $55 $1,068 $0 $0 Part-Time Fare Counter $13.07/Hr. $ $15.15/ Hr. $677 $0 $37 $709 $0 $0 Part-Time Interns N.A. $ $11.84/ Hr. $589 $0 $32 $0 $0 $0 TOTAL: $1,246,588 - $111,269 $204,426 $6,019 $142,427 $6,759 $0 *As of 3/19/10 CENTRE REGION COUNCIL OF GOVERNMENTS 6

12 Prepared 4/5/2010 AGENCY: Centre Area Transportation Authority CAPITAL PROJECT DESCRIPTION ANNUAL CAPITAL BUDGET FY 2010/2011 CAPITAL PROJECT LISTING Total Estimated Project Cost Federal Share (80%) State Share (16 2/3%) Local Share (3.33%) VEHICLES Paratransit Van $100,000 $80,000 $16,667 $3,333 FACILITIES Signs and Shelters $50,000 $40,000 $8,333 $1,667 EQUIPMENT Transit Signal Priority Hardware $100,000 $80,000 $16,667 $3,333 SUBTOTAL CAPITAL EXPENDITURES $250,000 $200,000 $41,667 $8,333 OTHER Addition to Capital Reserve Account N/A N/A N/A $54,067 TOTAL LOCAL CAPITAL CONTRIBUTIONS $62,400 State College Borough $11,210 Ferguson Township $10,681 Patton Township $9,962 College Township $6,477 Harris Township $3,177 Bellefonte Borough $2,184 Spring Township $2,160 Benner Township $642 Halfmoon Township $675 Penn State University $15,232 7

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14 LOCAL SHARE CALCULATION AND ALLOCATION This section of the budget addresses the Authority s local share request for FY 2010/2011, in the amount of $440,784, a 5% increase over the amount requested and approved for the past several years. However, as noted in previous years, changes in each municipality s share will vary from the individual amounts approved in FY 2009/2010 based on mileage, ridership and other factors used in the Miller formula. Once total local match has been determined, the Authority allocates amounts to each funding partner using a formula which first calculates costs, revenues, and deficit for each route, and then computes federal, state, and local funding needed to finance that deficit. Each route s deficit is then distributed to the municipalities based on mileage operated in each municipality; for certain routes, a second factor allocates a portion of local share on a regional basis. The formula calculates each municipality s share as follows: OVERVIEW For many years, the total local share provided was distributed among member municipalities solely on the portion of total system miles operated in each municipality. Each route s mileage in a particular municipality was determined and then added to calculate the percentage of total system miles in that municipality. The resulting percentages were then used to distribute total local funding. This version of the formula did not account for differing levels of cost recovery on each route due to variations in ridership (productivity); two routes with identical mileage were weighted equally in determining local share even if one covered a higher portion of its costs due to higher ridership. A new formula was developed by Dr. Jim Miller in the early 90's to address this deficiency. It was simplified several years ago, but accomplishes the same result: both the costs of each route and its revenues are used to determine a net route deficit which takes into account differing levels of cost recovery. Federal, state and local subsidies are then allocated to each route to cover the deficit. In FY 1998/1999, the formula was further modified in two ways. First, estimated ridership, mileage, revenue and expense data for the budget year replaced audited data from the most recently completed fiscal year. This change more accurately incorporates the impact of new and/or changed service planned for the budget period. Second, a regional component was added to the standard mileage-based portion of the formula to recognize that certain routes benefit the entire community. The formula was again modified in FY 2001/2002 to set the University s local share at the percentage of total system route mileage operated on the LOOPs and LINKs, to avoid extremely low local share requirements on these heavily-subsidized routes. It is important to note that changes in ridership, cost, and/or mileage data used in the formula impact the percentage of total local share contributed by a given municipality even if total local funding does not change from one year to the next. For example, individual municipal shares will change if ridership on a route changes significantly, even though all other data, such as cost, mileage and total local share do not change from the previous year. 9

15 DETAILS OF THE FORMULA Note: All data items used in the formula (revenue, expenses, mileage, ridership, etc.) are budgeted or estimated values for FY 2010/ Expenses are separated into fixed route and paratransit/vanpool categories and allocated to each route as follows: a) Total annual fixed route costs (excluding paratransit and vanpool service) are divided by total fixed route miles to determine cost per mile of fixed route service. b) Total miles for each route detailed on the separate Revenue Milage Allocation spreadsheet are multiplied by the cost per mile to derive the cost of each fixed route. c) Total paratransit and vanpool expenses are added to the fixed route expense of each route by calculating the percentage of total miles for each fixed route and multiplying that percentage times total paratransit expenses. For example, a route with 14% of total fixed route miles will be allocated 14% of total paratransit and vanpool expenses. d) Fixed route, paratransit and vanpool expenses for each route are added for total route expense. The sum of the total expense for each route equals total budgeted expense. 2. Revenues are broken into different categories, depending on their source, for allocation to each route and then subtracted from each route s expense to determine each route s deficit before any subsidy funding is applied. a) Revenues from apartment complex agreements and other contracts which provide fare-free transit on specified routes are allocated directly to those routes. b) Operating revenues which cannot be directly attributed to specific routes, such as charter revenue, investment income, lottery-funded state senior citizen grants, and miscellaneous revenue, are totaled and allocated to each route based on the percentage of total fixed route miles for each route. For example, a route with 14% of total fixed route miles will be allocated 14% of total non-route revenue. 3. Net Route Expense is the total cost of each route after subtracting the total direct revenue and non-route revenue allocated to each route as noted above. 4. Passenger Revenue includes all receipts from fares, tokens, ONEPASS sales and PSU employee passes sold through the University s Ride for Five program. Total passenger revenue is divided by total fare, token and pass riders to derive a systemwide average revenue per passenger. Total fare, token and pass riders on each route are multiplied by the average revenue per passenger to obtain the passenger revenue for each route. 5. Net Route Deficit is the amount remaining after passenger revenue for each route is subtracted from net route expense. At this point, total expenses and revenues have been allocated to each route and only subsidy funding remains to be assigned to each route to cover the deficit. 10

16 6. Federal and State Subsidy equals total budgeted federal and state operating assistance, state dedicated funding for asset maintenance, and state supplemental funding. a) Federal and state subsidies are allocated to each route by calculating the percentage of total net route deficit for each fixed route and multiplying that percentage times total federal and state subsidy. For example, a route with 14% of the total net route deficit will be allocated 14% of total federal and state subsidies. b) Federal and state subsidies allocated to each route are subtracted from net route deficit for each route to derive the remaining deficit to be funded by local subsidy. 7. Local Subsidy for each route is the amount of deficit remaining after federal and state subsidies have been applied. The attached spreadsheet shows the above calculations for each route; the last column identifies the total local subsidy required for each route. ALLOCATING LOCAL SUBSIDY FOR EACH ROUTE Once the formula has calculated each route s total local subsidy, those amounts are allocated to each municipality and funding partner using route mileage and, for selected routes, a regional factor to account for service which benefits and impacts a wider area than the municipalities in which it operates. a) For routes with no regional impact, mileage is used to allocate local share by calculating the percentage of miles for each route which are operated in each municipality and multiplying that percentage times the total local subsidy for each route. For example, Patton Township will be allocated 14% of the local subsidy required for a route with 14% of its miles in Patton Township. b) The regional impact of each route is assessed using three weighted criteria: non-residential destinations served, connections to other routes, and non-productive mileage. For each route, a subjective assessment assigns a score between 0 and 5 for each of the three criteria; these scores are then multiplied by the weight for each criteria and summed, with the sum then used as the percentage of the route s local subsidy to be allocated regionally. The regional portion of the route is allocated based on the current COG formula for Parks and Recreation services. The process is detailed on the attached spreadsheet Calculation of Regional Factors. c) For routes which operate outside of the Centre Region, such as the X Route, all mileage outside of the Centre Region is considered external and is allocated on a mileage basis to the municipalities, such as Spring Township, Benner Township, Halfmoon Township and Bellefonte Borough, which have contracted with CATA for the service. All mileage on these routes inside the Centre Region is considered to be regional, and allocated based on the COG formula. d) Once the local, regional and external percentages of each route s total local subsidy have been determined, a complex formula is used to apply those percentages to each route s local subsidy amount, as detailed in the spreadsheet titled CATA Local Share Allocation - Local, Regional and External Tiers. Note that any Public/Private Partnership funds collected by a municipality to support service on a particular route are subtracted from that route s local subsidy. 11

17 e) Once local taxpayer support for each route is determined, that amount is allocated to each municipality based on the local, regional and external percentages. The amounts for each route are then summed to determine each municipality s local support for the coming year. These amounts are then added to any Public/Private Partnership monies expected to be collected to give the total local share required from each municipality. This amount is shown in the long box across the bottom of the spreadsheet. These numbers, plus the local share payment made by Penn State, equal CATA s total local share requirement for the year. These totals are in turn shown in the following table. Although details of routing and scheduling for the new fiscal year have not yet been finalized, the mileage and ridership estimates used in the formula are based on the best information currently available and incorporate the most significant features of planned service for the budget year. Municipality 2009/2010 Budget % of total 2010/2011 Proposed % of total Percent Change College Township $46, % $45, % -1.49% Ferguson Township $76, % $75, % -1.62% Harris Township $21, % $22, % 6.43% Patton Township $61, % $70, % 15.21% State College Borough $72, % $79, % 9.22% Bellefonte Borough $15, % $15, % 0.93% Spring Township $15, % $15, % 1.07% Benner Township $4, % $4, % 0.04% Halfmoon Township $4, % $4, % 3.50% Penn State University $102, % $107, % 5.00% TOTAL $419, % $440, % 5.00% 12

18 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2010/2011 4/13/2010 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Park Forest Full Weekday A B C F Overlook Hgts. Annual Total Percentage 0.81% 0.00% 38.54% 45.83% 0.00% 15.63% 0.00% 0.00% 0.00% 0.00% 0.00% University Dr. Full AM Peak Boalsburg PM Peak Mid Day/Evening Weekday Total Saturday Annual Total Percentage 2.97% 0.00% 30.33% 0.00% 16.11% 0.00% 53.55% 0.00% 0.00% 0.00% 0.00% Houserville Full Weekday Penn Hills Annual Total Percentage 1.15% 0.00% 23.08% 0.00% 76.92% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Stonebridge Full Weekday Pine Grove Annual Total Percentage 1.92% 0.00% 26.55% 73.45% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Graysdale Full Weekday G H K Annual Total Percentage 1.45% 0.00% 16.90% 8.45% 0.00% 74.65% 0.00% 0.00% 0.00% 0.00% 0.00% Toftrees Full Weekday Colonnade Saturday Annual Total Percentage 6.09% 0.00% 18.29% 0.00% 23.17% 58.54% 0.00% 0.00% 0.00% 0.00% 0.00% W. College Ave Full Daytime Cato Park Evening Weekday Total Saturday Annual Total Percentage 2.74% 0.00% 37.63% 62.37% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 13

19 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2010/2011 4/13/2010 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Lemont Full Weekday Nittany Mall Saturday M MX N N/V P R Sunday Annual Total Percentage 4.38% 0.00% 28.26% 0.00% 71.74% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Nittany Mall Full Weekday Blfnte / PL Gap Annual Total Percentage 4.48% 0.00% 11.08% 0.00% 36.65% 0.00% 0.00% 13.64% 21.88% 16.76% 0.00% Martin St Full Weekday Aaron Drive Trippers Colonnade Saturday Sunday Full Service Totals Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 8.52% 0.00% 39.58% 36.85% 0.00% 23.57% 0.00% 0.00% 0.00% 0.00% 0.00% Martin St Full Wkdy O/B Pattee Vairo Blvd. Wkday O/B C&A Annual Total Percentage 3.38% 0.00% 28.05% 41.46% 0.00% 30.49% 0.00% 0.00% 0.00% 0.00% 0.00% Scenery Park Full Weekday Medical Center Wkdy Airport Univ. Pk Airport Saturday Annual Total Percentage 4.65% 0.00% 44.21% 0.00% 44.48% 8.39% 0.00% 0.00% 0.00% 2.92% 0.00% Waupelani Dr Full Weekday Trippers Saturday Sunday Full Service Totals Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 7.71% 0.00% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

20 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2010/2011 4/13/2010 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Science Pk Rd Full Weekday S UT V W X Haymarket Annual Total Percentage 1.16% 0.00% 43.55% 56.45% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% University Dr. Full Weekday Bellaire Ave Trippers Annual Total Percentage 0.89% 0.00% 89.54% 0.00% 10.46% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vairo Blvd. Full Weekday Colonnade V Express Trippers Saturday Sunday Full Service Totals Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 10.24% 0.00% 38.07% 31.37% 0.00% 30.56% 0.00% 0.00% 0.00% 0.00% 0.00% Park Forest Full Weekday Colonnade Trippers Saturday Full Service Totals Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 5.27% 0.00% 21.34% 39.75% 0.00% 38.91% 0.00% 0.00% 0.00% 0.00% 0.00% Bellefonte Full Weekday Pleasant Gap Saturday Annual Total Percentage 3.11% 0.00% 0.00% 0.00% 15.03% 0.00% 0.00% 14.51% 39.90% 30.57% 0.00% Halfmoon Full Weekday Z Annual Total Percentage % 0.00% 11.58% 5.79% 0.00% 51.13% 0.00% 0.00% 0.00% 0.00% 31.51% 15

21 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2010/2011 4/13/2010 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon White LOOP Full Weekday Thurs/Fri Late Night WLP BLP RLK GLK Saturday Sunday Annual Total Percentage 5.79% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Blue LOOP Full Weekday Thurs/Fri Late Night Saturday Sunday Full Service Totals Reduced Weekday Reduced Service Totals Annual Total Percentage 11.11% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Red LINK Full Weekday Saturday Sunday Full Service Totals Reduced Weekday Reduced Service Totals Annual Total Percentage 8.65% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Green LINK Full W/B Trips E/B Trips Annual Total Percentage 1.42% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Mileage Percentage % 26.97% 26.77% 14.24% 10.19% 14.46% 1.59% 1.06% 2.22% 1.84% 0.66% 16

22 MILEAGE/SUBSIDY FORMULA: ALL DATA REPRESENTS FY 2010/2011 ESTIMATES Column: Fixed Plus Less Less Equals Less Equals Less Equals Vehicle Farepaying Route Paratransit & Vanpool Equals Direct Route Non-Route Net Passenger Route Federal/State Local Route Miles Passengers Expense Expense Total Expense Revenue Revenue Expense Revenue Deficit Subsidies Subsidy A 12,240 12,035 $ 91,913 $ 8,923 $ 100,835 $ 0 $ 5,968 $ 94,868 $ 18,141 $ 76,727 $ 71,888 $ 4,840 B 44,658 19,090 $ 335,347 $ 32,554 $ 367,901 $ 1,574 $ 21,773 $ 344,554 $ 28,775 $ 315,780 $ 295,862 $ 19,918 C 17,238 6,640 $ 129,444 $ 12,566 $ 142,010 $ 0 $ 8,404 $ 133,605 $ 10,009 $ 123,597 $ 115,801 $ 7,796 F 28,815 13,280 $ 216,378 $ 21,005 $ 237,383 $ 0 $ 14,049 $ 223,335 $ 20,017 $ 203,317 $ 190,493 $ 12,824 G 21,726 4,150 $ 163,145 $ 15,838 $ 178,983 $ 0 $ 10,592 $ 168,390 $ 6,255 $ 162,135 $ 151,908 $ 10,227 H 91,585 45,650 $ 687,732 $ 66,762 $ 754,494 $ 49,843 $ 44,652 $ 659,999 $ 68,809 $ 591,190 $ 553,901 $ 37,290 K 41,264 30,710 $ 309,860 $ 30,080 $ 339,940 $ 7,056 $ 20,118 $ 312,766 $ 46,290 $ 266,477 $ 249,668 $ 16,808 M 65, ,900 $ 494,610 $ 48,015 $ 542,624 $ 0 $ 32,113 $ 510,511 $ 162,639 $ 347,872 $ 325,929 $ 21,943 MX 67,320 24,900 $ 505,520 $ 49,074 $ 554,594 $ 0 $ 32,822 $ 521,773 $ 37,532 $ 484,241 $ 453,697 $ 30,544 N 128, ,500 $ 961,570 $ 93,346 $ 1,054,916 $ 233,676 $ 62,431 $ 758,808 $ 305,232 $ 453,577 $ 424,967 $ 28,610 NV 50,848 20,790 $ 381,829 $ 37,066 $ 418,895 $ 121,150 $ 24,791 $ 272,955 $ 31,337 $ 241,618 $ 226,378 $ 15,240 P 69,895 29,880 $ 524,857 $ 50,951 $ 575,808 $ 75,130 $ 34,077 $ 466,600 $ 45,039 $ 421,562 $ 394,971 $ 26,590 R 115, ,600 $ 870,115 $ 84,467 $ 954,583 $ 128,960 $ 56,493 $ 769,130 $ 650,558 $ 118,572 $ 111,093 $ 7,479 S 17,391 9,960 $ 130,593 $ 12,677 $ 143,270 $ 0 $ 8,479 $ 134,791 $ 15,013 $ 119,778 $ 112,223 $ 7,555 UT 13,372 1,660 $ 100,413 $ 9,748 $ 110,161 $ 72,636 $ 6,519 $ 31,005 $ 2,502 $ 28,503 $ 26,705 $ 1,798 V 153, ,000 $ 1,156,156 $ 112,235 $ 1,268,392 $ 528,344 $ 75,065 $ 664,983 $ 367,785 $ 297,198 $ 278,452 $ 18,746 W 79,272 63,080 $ 595,271 $ 57,787 $ 653,057 $ 47,632 $ 38,649 $ 566,776 $ 95,082 $ 471,695 $ 441,942 $ 29,752 X 46,754 28,880 $ 351,086 $ 34,082 $ 385,168 $ 0 $ 22,795 $ 362,373 $ 43,531 $ 318,842 $ 298,731 $ 20,111 Z 31,722 5,000 $ 238,207 $ 23,124 $ 261,332 $ 0 $ 15,466 $ 245,866 $ 6,255 $ 239,610 $ 224,497 $ 15,114 WHITE LOOP 87,107 0 $ 654,105 $ 0 $ 654,105 $ 432,681 $ 0 $ 221,424 N.A. $ 221,424 $ 198,308 $ 23,116 BLUE LOOP 166,960 0 $ 1,253,739 $ 0 $ 1,253,739 $ 829,329 $ 0 $ 424,409 N.A. $ 424,409 $ 380,102 $ 44,307 RED LINK 130,021 0 $ 976,356 $ 0 $ 976,356 $ 645,845 $ 0 $ 330,511 N.A. $ 330,511 $ 296,006 $ 34,505 GREEN LINK 21,369 0 $ 160,464 $ 0 $ 160,464 $ 106,144 $ 0 $ 54,321 N.A. $ 54,321 $ 48,649 $ 5,672 TOTAL 1,503,314 1,301,705 $ 11,288,710 $ 800,300 $ 12,089,010 $ 3,280,000 $ 535,255 $ 8,273,755 $ 1,960,800 $ 6,312,955 $ 5,872,171 $ 440,784 NOTES: Column 1: Total miles operated on each route Column 2: OnePass, cash, and token passengers only Column 3: Cost per mile for all fixed route service (excluding paratransit) multiplied by route miles Column 4: Allocation of paratransit expenses to each route by its percentage of total fixed route miles Column 5: Column 3 plus Column 4; column total equals total operating expense Column 6: Purchase of service revenue, such as apartment contracts, attributed directly to appropriate routes Column 7: Allocation of other operating revenues (advertising, etc.) to each route by its percentage of total fixed route miles Column 8: Column 5 minus the sum of Columns 6 and 7 Column 9: Average revenue per OnePass, cash, or token passenger times passengers on each route Column 10: Remainder of each route's expense (deficit) requiring federal, state and local subsidy Column 11: Allocation of total federal and state subsidies to each route by its percentage of total route deficit 17 Column 12: Column 10 minus Column 11

23 CALCULATION OF "REGIONAL" FACTORS - FY 2010/2011 April 2, 2010 FACTOR RANGE WEIGHT A B C F G H K M MX N N/V P R S UT V W X Z Non-residential destinations served na na na Connections support other routes na na na Non-productive mileage na na na ROUTE Totals na na na Local Percentage 100% 82% 78% 84% 90% 42% 66% 32% 0% 52% 100% 32% 84% 76% 100% 42% 74% 0% 0% Regional Percentage 0% 18% 22% 16% 10% 58% 34% 68% 47% 48% 0% 66% 16% 24% 0% 58% 26% 15% 68% External Percentage 0% 0% 0% 0% 0% 0% 0% 0% 53% 0% 0% 2% 0% 0% 0% 0% 0% 85% 32% ROUTE AREA SERVED NOTES A Park Forest / Overlook Hgts. Provides commuter level service to exclusively residential areas B University Dr. / Boalsburg Serves University Drive, S. Atherton Street, residental areas of Boalsburg; most trips extend to Tussey Mountain C Houserville / Penn Hills Serves Houserville and Penn Hills; commercial areas served are covered better by other routes; commuter level service only F Stonebridge / Pine Grove Provides commuter level service to Greentree, Pine Grove Mills and western Ferguson Twp. G Vista Woods / Graysdale Provides commuter level service to Vista Woods and Graysdale H Toftrees / Colonnade Serves the Village at Penn State and Toftrees; continues across the Mt. Nittany Bypass to the Colonnade and Patton Forest K W. College Ave. / Cato Park Serves Cato Park, Bristol Court, commercial areas along W. College Avenue; heavy ridership to Bank of America M Lemont / Nittany Mall Serves E. College Avenue, Lemont and Dale Summit; provides connecting service to X Route; heavily used by shoppers MX Mall / Bellefonte / Pleasant Gap Serves E, College Avenue, Lemont and Dale Summit, with continuing service to Bellefonte and Pleasant Gap; mainly commuters N Martin St. / Aaron Dr. / Colonnade Connects apartment complexes on Martin Street and Aaron Drive to campus; also serves Northland Center and the Colonnade N/V Martin St. / Vairo Blvd. Provides additional capacity and frequency between student housing on Vairo Blvd. and Martin Street and campus, downtown P Scenery Pk. / Medical Ctr. / Airport Serves Pugh Street, Foxdale, Scenery Park on the south, Mt. Nittany Medical Center on the north, with selected trips continuing to the Airport R Waupelani Dr. Serves an almost entirely residential area; heavily used by students and other residents of SW Borough S Science Park Rd. / Haymarket Serves employment centers along Science Park Road, residential areas further west, commercial areas along W. College Avenue UT University Dr. / Bellaire Ave. Serves University Drive and Bellaire Avenue; operates during the school year only V Vairo Blvd. / Colonnade Connects apartment complexes on Vairo Blvd to campus; also serves Wal-mart and the Colonnade W Park Forest / Geisinger Serves Northland Center, Circleville Road, Valley Vista Drive, western Park Forest, Vista Woods and Geisinger X Bellefonte / Pleasant Gap Connects Bellefonte with the Mall; alternating trips travel via Pleasant Gap H Halfmoon Provides commuter level service to Stormstown and other areas of Halfmoon Township WLP White LOOP Travels counter-clockwise around campus; uses Beaver Avenue in downtown State College BLP Blue LOOP Travels clockwise around campus; uses College Avenue in downtown State College RLK Red LINK Travels back and forth from the West Campus to Innovation Park via Curtin Rd. and East Park Ave. GLK Green LINK Provides "express" service between preipheral parking lots and the core campus 18