TABLE OF CONTENTS SECTION I GENERAL INFORMATION 1 SECTION II OPERATING BUDGET 5 CATABUS 10 CATARIDE 18 CATACOMMUTE 24 SECTION III CAPITAL PROGRAM 29

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2 TABLE OF CONTENTS ITEM PAGE SECTION I GENERAL INFORMATION 1 SECTION II OPERATING BUDGET 5 CATABUS 10 CATARIDE 18 CATACOMMUTE 24 SECTION III CAPITAL PROGRAM 29 SECTION IV LOCAL MATCH SHARES 32

3 SECTION I GENERAL INFORMATION Goals Established by the CATA Board of Directors FY Service Development and Integrity of the Service Ensure that the internal business processes of CATA are kept fully in order, and that the Authority consistently provides safe, on-time, customer-friendly, efficient service within the framework of the approved budget, in all markets that it serves. Special emphasis includes: Completion of a public input process and publishing a final strategic plan document. Minimizing and striving to eliminate service interruptions caused by the facility project. State of Good Repair for Capital Equipment and Facilities Strive to put in place plans and procedures to keep CATA s fleet and facilities in a state of good repair. Special emphasis includes: Continuation of the facility expansion project. Continued long-range tracking and planning for replacement and growth for all fleets where necessary. Evaluation of all shelters and other passenger amenities to develop policies and replacement plan for service quality improvements. Financial Strength Monitor the viability of existing funding sources and pursue potential new sources for support of operating and capital asset needs. Work to build adequate reserves. Special emphasis includes: Development of a reserve policy and starting to build reserves. Improving procurement and inventory management processes. Preparation for a study of fares, pass programs, contracts and fare media as outlined in strategic plan. 1

4 Customer Service and Outreach Foster a customer service culture at all levels of the organization. Increase focus on methods to communicate with CATA s customers, as well as the community. Whenever possible, look for methods to increase usage of CATA s services. Special emphasis includes: Development of targeted marketing plans for attraction of new riders to both legacy and newer service offerings. Identify, evaluate, and implement improvements in customer information content and access and service purchase/payment methods. Continue strong relationships with public and private sector parties to maintain and build support for local, state, and national policies supportive of CATA s funding needs. Human Resources Develop programs and provide a work environment within CATA to facilitate the attraction and retention of exceptional employees. Special emphasis includes: Instilling an agency-wide safety culture and increasing safety committee effectiveness. Developing and implementing new employee orientation and staff training programs to ensure efficient provision of high-quality services. Process Improvement/Regulatory Compliance Strive to conduct CATA s business using methods that increase efficiency and effectiveness while increasing the agency s ability to meet on-going regulatory compliance. Special emphasis includes: Beginning a process for agency-wide documentation of policies and standard operating procedures. Investigating new hardware and software applications to improve internal processes. Tracking, communicating and implementation of changes required for compliance with federal and state performance reporting rules and grant application and management process requirements. 2

5 CATABUS Service Changes CATABUS Community Service changes that started halfway through the FY 2014/15 budget year (effective January 10, 2015): K Cato Park: Routing change in the area of the CATA Cato Park facility The construction at CATA's main office reached the point where the K Route was no longer able turn around in the CATA parking lot. The CATA Main Office Parking Lot stop was eliminated, and the service was rerouted to Whitehall Road and West College Avenue. NE Martin St./Aaron Dr. Express, VE Vairo Blvd Express & WE Havershire Blvd. Express: Local service portion of the route extended These three routes now also serve the existing stop along Park Avenue (Park Ave opposite Nittany Lion Inn - Stop 6A). The addition of this fourth campus stop to these three routes means they will now not start into express mode until after they serve this stop. XB Bellefonte & XG Pleasant Gap: New stop locations added o A pair of new bus stop locations were established in October along East College Avenue between the intersections of Pike Street and Elmwood Street, one in each direction (inbound and outbound). Two new late afternoon trips added o The 4:22 p.m. inbound XB (from Bellefonte to SC) weekday trip that had been moved to 7:07 p.m. in August was restored. o A new 3:26 p.m. outbound XG (from SC to Pleasant Gap & Bellefonte) trip was added. CATABUS Community and Campus Service changes that are included in the FY 2015/16 budget (planned to take effect on August 20, 2015): All routes, but particularly the routes that operate less frequently or not at all on Saturdays: Regular weekday service will now operate on the five weekdays between Christmas Day and New Year s Day instead of Saturday level service. HP Toftrees/Scenery Park: The routing will be changed near Foxdale Village to no longer enter the site. WE Havershire Blvd.: The service hours will be expanded and the frequency will be increased to accommodate the 280 bedroom expansion of The Heights (Turnberry development) and the start of the tenant profile transition at Blue Course Commons. Red Link (Campus Service): Operate Saturday and Sunday Red Link service year round (approx. 400 hours). Second Green Link service AM bus = 320 hours 3

6 Fares, Token Prices and Pass Rates Revenue Sources In FY 2014/15, the CATABUS fare was increased to $1.75, and pass and token prices were adjusted accordingly. While some transit systems will move fares by five or ten cents each year, or at least more often, CATA s practice has been to move the fares by 25 cents, but at longer spans of time. The CATARIDE general public fare was increased to $20.00 in FY 2013/14. Riders under the age of 65 with disabilities pay $3.00, and senior riders are covered through PennDOT by the Lottery program at 85% (PennDOT pays $17.00, and seniors pay $3). CATACOMMUTE fares are adjusted quarterly. Penn State This budget anticipates 3% increases in the hourly rate that Penn State pays for the LOOP/LINK and the fixed amount that the University pays to support CATACOMMUTE, as well as an increase in the current rate for Ride for Five passes. In spite of the higher hourly rate, the Penn State payment still won t cover CATA s direct costs, but the inclusion of the Campus Service helps CATA qualify for additional state and federal funding. Apartment Contracts Apartment complex contracts include per-ride rates. Subsidies Federal Formula Assistance MAP-21, the federal transportation authorization bill, allocates federal formula assistance. CATA uses this funding primarily to supplement the operating budget, and no growth in this funding source is indicated at this time. State Operating Assistance State formula operating assistance is also received annually and used to balance the deficit budget inherent to public transportation. Local match is required to leverage access to this funding source. 4

7 SECTION II OPERATING BUDGET Introduction CATA maintains its financial records in accordance with National Transit Database (NTD) requirements of the Federal Transit Act, which defines specific accounts that cross-classify all revenues and expenditures by functional category and object class in order to present consistent accounting for all transit authorities nationwide. REVENUES CATEGORIES: PASSENGER FARES - revenues derived from passenger fares for fixed route service (CATABUS), demand responsive service (CATARIDE), and the ridesharing program (CATACOMMUTE). OTHER OPERATING INCOME - revenues from operations other than passenger fares, including income from transportation activities such as advertising on buses, or from nontransportation sources, such as the sale of assets. FEDERAL, STATE, AND LOCAL OPERATING SUBSIDIES - income from governmental entities to support general operating costs for transit service, as well as certain special project reimbursements. EXPENDITURES CATEGORIES: MAINTENANCE - expenditures for personnel, materials and supplies, services, and utilities required to perform, supervise, and administer the maintenance and repair of revenue and service vehicles, buildings, grounds, and equipment. TRANSPORTATION - expenditures for personnel, materials and supplies, services, and insurance directly related to operation of revenue service and its supervision and/or administration. ADMINISTRATION - expenditures associated with general administration of the transit system, including, but not limited to, personnel costs, material and supplies, professional services, financing costs, and marketing. Since CATA s overall budget is divided into three separate program budgets based on CATA s three different service modes (CATABUS, CATARIDE, and CATACOMMUTE), the following summary is provided to illustrate the compilation of the three separate program budgets. Fares are proposed to remain level for all modes. An analysis on fares tracking inflation was completed relative to CATABUS fares, which indicated that no increase should be pursued at this time. CATARIDE recently transitioned to PennDOT s mandated Ecolane software, which includes transitioning to mileage based rather than per ride fares, with the net effect to be revenue neutral. CATACOMMUTE fares are recalculated and adjusted quarterly. The budget also includes $108,900 in expenditures for non-routine projects proposed by staff. These projects will result in either gained efficiencies or an improved state of good repair. 5

8 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 REVENUES Actual Budget Year End Budget Adopted Budget Projected Year End Operating Revenues: Passenger Fares - CATABUS 6,385,760 7,088,600 7,060,184 7,212, % 2.15% Passenger Fares - CATARIDE 132, , , , % % Passenger Fares - CATACOMMUTE 381, , , , % 27.66% Total Operating Revenues 6,899,527 7,779,900 7,645,284 7,887, % 3.16% Other Operating Revenues: Other Revenue - CATABUS 493, , , , % % Other Revenue - CATARIDE , % 0.00% Other Revenue - CATACOMMUTE 42,874 39,450 39,900 40, % 2.68% Total Other Revenues 536, , , , % % TOTAL OPERATING REVENUES 7,435,698 8,204,814 8,278,807 8,097, % -2.19% Centre Area Transportation Authority SUMMARY FISCAL YEAR 2015/16 BUDGET 6 * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

9 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 REVENUES Actual Budget Year End Budget Adopted Budget Projected Year End Local Subsidies Detail: Local Operating Assistance - State College Borough 89,469 90,784 90, , % 10.30% Local Operating Assistance - Ferguson Township 86,021 92,760 92,760 95, % 2.63% Local Operating Assistance - Patton Township 75,682 75,981 75,981 74, % -2.40% Local Operating Assistance - College Township 58,351 65,745 65,745 62, % -4.58% Local Operating Assistance - Harris Township 24,781 22,189 22,189 21, % -3.56% Local Operating Assistance - Spring Township 17,623 17,960 17,960 20, % 16.21% Local Operating Assistance - Bellefonte Borough 16,631 14,988 14,988 17, % 16.14% Local Operating Assistance - Halfmoon Township 6,309 5,734 5,734 5, % -6.95% Local Operating Assistance - Benner Township 3,584 3,662 3,662 4, % 16.13% Local Operating Assistance - Penn State University 122, , , , % 3.00% Subtotal - Local Subsidies 500, , , , % 3.00% Centre Area Transportation Authority SUMMARY FISCAL YEAR 2015/16 BUDGET 7 Local Subsidies: CATABUS 500, , , , % 4.13% CATARIDE - 28,356 28,356 23, % % CATACOMMUTE % % Subtotal - Local Subsidies 500, , , , % 3.00% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

10 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 SUBSIDIES Actual Budget Year End Budget Adopted Budget Projected Year End State Subsidies: CATABUS 5,412,467 2,837,200 2,607,957 3,607, % 38.33% CATARIDE 687, , , , % % CATACOMMUTE 53,525 2,351 52,038 (63,099) % % Subtotal - State Subsidies 6,153,742 3,203,751 3,024,195 3,824, % 26.46% Federal Subsidies: CATABUS - 3,324,225 3,324,225 4,037, % 21.45% CATARIDE - 388, , , % -5.31% CATACOMMUTE - 2,528 58, % % Subtotal - Federal Subsidies - 3,715,397 3,820,960 4,452, % 16.52% Total Operating Subsidies 6,654,284 7,434,706 7,360,713 8,807, % 19.66% Centre Area Transportation Authority SUMMARY FISCAL YEAR 2015/16 BUDGET 8 Total Revenues and Subsidies 14,089,982 15,639,520 15,639,520 16,905, % 8.09% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

11 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Maintenance Expenditures Maintenance - CATABUS 2,382,051 2,729,633 2,799,121 2,947, % 5.31% Maintenance - CATARIDE 16,630 29,100 33,524 26, % % Maintenance - CATACOMMUTE 59,686 63,600 81,079 73, % -9.01% Total Maintenance Expenditures 2,458,367 2,822,333 2,913,724 3,048, % 4.62% Transportation Expenditures Transportation - CATABUS 8,559,732 9,130,900 8,975,059 10,042, % 11.89% Transportation - CATARIDE 800, , , , % -6.32% Transportation - CATACOMMUTE 405, , , , % -6.19% Total Transportation Expenditures 9,765,792 10,572,651 10,281,376 11,266, % 9.58% Total CATA Departmental Expenditures 14,089,982 15,635,336 15,600,396 16,905, % 8.36% Centre Area Transportation Authority SUMMARY FISCAL YEAR 2015/16 BUDGET 9 Administration Expenditures Administration - CATABUS 1,850,071 2,208,297 2,377,679 2,543, % 6.97% Administration - CATARIDE 3,334 10,400 9,632 24, % % Administration - CATACOMMUTE 12,417 21,655 17,985 22, % 24.94% Total Administration Expenditures 1,865,822 2,240,352 2,405,296 2,590, % 7.69% Unallocated Expenditures - 4,184 39,124 - Total CATA Consolidated Expenditures 14,089,982 15,639,520 15,639,520 16,905,189 * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

12 CATABUS Revenues Details Passenger Fares - Revenue for Farebox, Tokens, and OnePass sales is projected to maintain the current levels being observed. This represents a slight decline from FY 2014/15 in total, because collections were at a higher level during the first few months of the current fiscal year. - Revenue from Ride for Five passes through Penn State s program is expected to continue increasing for FY 2015/16, after which is might flatten. The program was expanded to include graduate students in the fall of Apartments revenue has been estimated per the anticipated ridership level and rate increase. - Penn State s contract is anticipated to increase by 3.0%. The comparison of the proposed FY 2015/16 Proposed Budget to the FY 2014/15 Adopted Budget is negative, because historically the local match share contributed by Penn State was budgeted in both this line item and as a subsidy. Other Operating Revenues - Advertising revenues are projected to increase for interior and wrap advertising, but decline for exterior tail advertising due to fewer tail spaces being available as more buses are wrapped. It is not budgeted that all twelve permitted wraps will be sold, and the timing necessary to make new wrap sales has been considered. - No revenue has been projected from municipal fueling since our ability to provide that service will cease due to the building project for the 2015/2016 fiscal year. - The CNG tax credit was recently extended for 2014, but no information is available regarding the 2015 or 2016 calendar years. Therefore, no CNG tax credit revenue is included in the proposed budget. - The large totals shown in Non-Transportation Revenue Other for FY 2013/14 Actual and the FY 2014/15 Adopted Budget columns represent large refunds on our workers compensation insurance, as was the previous directive for reporting this revenue. A federal mandate was recently issued requiring that this refund instead be reported directly against the expenditure accounts from which workers compensation insurance is paid, so it is removed from the FY 2014/15 Adjusted Budget column. However, recall that during FY 2014/15 there was also the clean up of the $93,147 in Advances for Working Capital on our balance sheet that needed to be recognized as both a revenue and an expenditure to remove it from our books. This increases the FY 2014/15 Adjusted Budget by that amount, and the FY 2015/16 Proposed Budget has been prepared absent of the large influxes reflected in recent years. Subsidies - No Transportation Planning Assistance has been budgeted, as there is not currently a grant on the horizon, but this could change between now and the time the final budget is approved. - Local subsidies are budgeted at the 3.0% recommended by the COG Finance Committee and anticipated to be approved by the COG General Forum. - State subsidies are anticipated to increase by 3.0%, and they will be used as needed. - Federal subsidies received are anticipated to remain flat and will be used as needed. 10

13 CATABUS Expenditures Details Maintenance Expenditures - Revenue Vehicle Maintenance is anticipated to see only a slight increase, thanks to the ten replacement buses received in the middle of FY 2014/15. - With the aging service vehicle fleet, it quickly became apparent that the FY 2014/15 Adopted Budget was too low for Service Vehicle Maintenance. The FY 2014/15 Adjusted Budget reflects a more realistic expectation, and that increase is expected to continue into the FY 2015/16 Proposed Budget, since the older vehicles are continuing to be used. - Building and Equipment Maintenance is showing decreases, because extra funding was included in the FY 2014/15 Adopted Budget given the unknowns of the facility expansion project, which has turned out not to be needed. - The Safety, Training, Travel & Meetings line item includes a non-routine project of $10,000 for training on the RoadBase software used in the Maintenance Department. Transportation Expenditures - In addition to reflecting anticipated service levels for FY 2015/16, the Driver Wages line item includes non-routine projects of $27,200 for route timing improvements, $56,400 for driver training, and $54,400 for bus cleaning. - Fuel & Lubricants Revenue Vehicles has been budgeted with the assumption that we will be permitted to continue purchasing our own CNG through the end of FY 2015/16. CNG has already been secured through December 2015, but PennDOT has told us not to extend our CNG purchasing contract into 2016 due to their P3 fueling station project. However, that project will not be completed until at least the second half of calendar year 2016, and we have relayed our need to extend the contract for purchasing our own CNG through at least the end of June (PennDOT estimates that CNG costs will be roughly double that which we currently pay once we are using the P3 fueling station. However, it should be noted that their estimate includes capital costs.) - The Safety, Training, Travel & Meetings line item includes a non-routine project of $2,000 for purchase of TAPTCO Trainer s Course materials. - The Shelters and Signs line item includes a non-routine project of $25,000 for improvements to and maintenance of our shelters. - The Utilities line item includes a non-routine project of $3,000 for the data plan for a Tablets Headway/Supervisor project. - The Miscellaneous line item includes non-routine projects of $1,500 for materials to update the driver manual, and $5,400 for the hardware needed for the Tablets Headway/Supervisor project. 11

14 CATABUS Administration Expenditures - Pass Sales & Supplies includes a non-routine project of $8,000 for replacement equipment. - Professional Services includes non-routine projects of $25,000 for developing specifications for procurement of a barcoding system for the parts room and $21,000 for website improvements. - The Advertising and Marketing Support line items are both increased to reflect a planned new approach. - Schedule Printing and Design is budgeted to increase relative to a new vendor having been awarded the contract for producing our Ride Guides. - The Telephone line item is reduced due to the new IT Specialist s efforts to corral our various services, as well as due to a change to reporting employee cell allowances as benefits. - Office Supplies includes a non-routine project of $8,000 for a point of sale system upgrade at the downtown office. - Interest Expense is budgeted to continue for cash flow needs as the facility expansion project continues. - Regarding FY 2014/15 Adjusted Budget for the Miscellaneous line item, recall that during FY 2014/15 there was the clean up of the $93,147 in Advances for Working Capital on our balance sheet that needed to be recognized as both a revenue and an expenditure to remove it from our books. 12

15 Total Operating Revenues 6,878,845 7,424,564 7,653,807 7,381, % -3.56% Centre Area Transportation Authority CATABUS FISCAL YEAR 2015/16 BUDGET 13 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 REVENUES Actual Budget Year End Budget Adopted Budget Projected Year End Passenger Fares Passenger Fares - Farebox 788, , , , % -0.27% Passenger Fares - Half-fare Coupons 2,036 2,000 5,400 5, % 0.00% Passenger Fares - Tokens 368, , , , % -2.48% Passenger Fares - OnePass 611, , , , % -1.72% Passenger Fares - PSU Ride-for-$5 Passes 544, , ,600 1,000, % 5.20% Passenger Fares - State College Borough Passes 1,920 1,900 1,900 1, % 0.00% Passenger Fares - JASI Passes 5,180 5,000 17,900 15, % % Passenger Fares - Park & Ride Subscriptions % 0.00% Passenger Fares - Football Shuttle 47,985 48, % 0.00% Purchase of Service - Apartments 1,812,181 2,059,500 1,943,300 2,002, % 3.05% Purchase of Service - Penn State University 2,202,207 2,279,300 2,247,834 2,315, % 3.00% Purchase of Service - Other 1,000 1,000 1,000 1, % 0.00% Subtotal - Passenger Fares 6,385,760 7,088,600 7,060,184 7,212, % 2.15% Other Revenues Auxiliary Transp. Revenue - Interior Advertising 41,202 48,000 29,000 32, % 12.07% Auxiliary Transp. Revenue - Exterior Advertising 44,033 54,000 52,000 52, % 0.00% Auxiliary Transp. Revenue - Exterior Wraps 16,350 30,000 19,000 50, % % Miscellaneous Transportation Revenue % 0.00% Investment Income % % Interest Income - State State Operating Assistance % 0.00% Interest Income - Cash Reserves % 0.00% Non-Transportation Revenue - CNG Tax Credit 177, , % 0.00% Miscellaneous Non-Transportation Revenue - Other 213, , ,597 34, % % Subtotal - Other Revenue 493, , , , % % * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

16 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 SUBSIDIES Actual Budget Year End Budget Adopted Budget Projected Year End Local Subsidies Local Operating Assistance - State College Borough 89,469 85,760 85,760 95, % 11.51% Local Operating Assistance - Ferguson Township 86,021 87,626 87,626 90, % 3.76% Local Operating Assistance - Patton Township 75,682 71,776 71,776 70, % -1.33% Local Operating Assistance - College Township 58,351 62,106 62,106 59, % -3.54% Local Operating Assistance - Harris Township 24,781 20,961 20,961 20, % -2.50% Local Operating Assistance - Spring Township 17,623 16,966 16,966 19, % 17.48% Local Operating Assistance - Bellefonte Borough 16,631 14,159 14,159 16, % 17.41% Local Operating Assistance - Halfmoon Township 6,309 5,417 5,417 5, % -5.93% Local Operating Assistance - Benner Township 3,584 3,460 3,460 4, % 17.40% Local Operating Assistance - Penn State University 122, , , , % 4.13% Subtotal - Local Subsidies 500, , , , % 4.13% Federal Subsidies Federal Operating Assistance - 3,324,225 3,324,225 4,037, % 21.45% Subtotal - Federal Subsidies - 3,324,225 3,324,225 4,037, % 21.45% Total Subsidies 5,913,009 6,648,450 6,419,207 8,151, % 26.99% Total Operating Revenues and Subsidies 12,791,854 14,073,014 14,073,014 15,533, % 10.38% Centre Area Transportation Authority CATABUS FISCAL YEAR 2015/16 BUDGET 14 State Subsidies State Operating Assistance 5,354,968 2,784,200 2,554,957 3,607, % 41.20% Transportation Planning Assistance 57,499 53,000 53, % % Subotal - State Subsidies 5,412,467 2,837,200 2,607,957 3,607, % 38.33% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

17 Centre Area Transportation Authority CATABUS FISCAL YEAR 2015/16 BUDGET 15 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Maintenance Expenditures: Maintenance Management Wages - CB 281, , , , % 14.80% Maintenance Management Benefits - CB 98, , , , % 7.26% Mechanics Wages - CB 573, , , , % 1.21% Mechanics Benefits - CB 230, , , , % 11.27% Servicepersons Wages - CB , , % 4.63% Servicepersons Benefits - CB ,671 79, % 29.35% Custodian Wages - CB 333, , , , % 1.88% Custodian Benefits - CB 173, , , , % 20.66% Facilities Supervision Wages - CB ,000 59, % 6.54% Facilities Supervision Benefits - CB ,543 14, % 28.77% Facilities Wages - CB ,614 77, % 8.02% Facilities Benefits - CB ,222 57, % 13.73% Revenue Vehicle Maintenance - CB 339, , , , % 2.14% Service Vehicle Maintenance - CB 7,690 8,000 11,575 15, % 29.59% Radio Maintenance - CB 9,903 10,500 10,500 12, % 19.05% Building & Equipment Maintenance - CB 93, , , , % -9.51% Utilities - CB 204, , , , % -8.98% Safety, Training, Travel & Meetings - CB 9,767 22,500 18,993 32, % 71.12% Miscellaneous - CB 26,120 40,700 40,700 29, % % Subtotal - Maintenance Expenditures 2,382,051 2,729,633 2,799,121 2,947, % 5.31% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

18 Centre Area Transportation Authority CATABUS FISCAL YEAR 2015/16 BUDGET 16 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Transportation Expenditures: Transportation Management Wages - CB 546, , , , % 5.26% Transportation Management Benefits - CB 175, ,900 71, , % % Supervisors & Dispatch Wages - CB , , % 0.00% Supervisors & Dispatch Benefits - CB ,183 82, % % Driver Wages - CB 4,775,224 4,826,000 4,804,193 5,141, % 7.03% Driver Benefits - CB 2,101,671 2,336,700 2,288,470 3,084, % 34.77% Tires - Revenue Vehicles - CB 95, , , , % 1.50% Tires - Service Vehicles - CB 2,835 2,000 1,000 2, % % Fuel & Lubricants - Revenue Vehicles - CB 545, , , , % 17.20% Fuel & Lubricants - Service Vehicles - CB 46,802 52,500 41,558 40, % -3.75% Safety, Training, Travel & Meetings - CB 39,191 39,500 23,242 25, % 8.61% Insurance - CB 210, , , , % 11.41% Shelters & Signs - CB 8,317 7,800 7,800 33, % % Utilities - Transportation - CB , % % Miscellaneous - CB 11,885 20,000 20,000 24, % 20.63% Subtotal - Transportation Expenditures 8,559,732 9,130,900 8,611,898 10,042, % 16.61% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

19 Total CATABus Departmental Expenditures 12,791,854 14,068,830 13,701,104 15,533, % 13.37% Centre Area Transportation Authority CATABUS FISCAL YEAR 2015/16 BUDGET 17 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Administration Expenditures: Executive Office Salaries - CB , , % % Executive Office Benefits - CB ,740 56, % 20.60% Finance Salaries - CB 822, , , , % 52.27% Finance Benefits - CB 272, , , , % 17.88% Human Resources Salaries - CB , , % 19.98% Human Resources Benefits - CB ,446 88, % 27.13% Information Services Salaries - CB , , % 3.47% Information Services Benefits - CB 1,865 4,000 99, , % 13.15% Intern Wages - CB 7,691 10,700 19,760 10, % % Intern Benefits - CB % -7.33% Insurance - CB 39,892 42,000 42,000 44, % 4.76% Pass Sales & Supplies - CB 13,107 14,300 12,800 19, % 52.11% Professional Services - CB 394, , , , % 15.21% Advertising - CB 23,050 22,820 23,150 28, % 24.41% Marketing Support - CB 22,700 27,000 25,500 37, % 47.06% Printing - CB 770 2,600 2,600 1, % % Schedule Printing & Design - CB 30,859 34,100 37,000 40, % 8.11% Telephone - CB 30,979 29,000 29,000 16, % % Office Supplies - CB 32,230 35,000 21,300 39, % 85.92% Dues & Subscriptions - CB 29,362 31,000 31,000 30, % -1.61% Safety, Training, Travel & Meetings - CB 48,027 40,500 62,465 71, % 15.18% Interest Expense - CB 70,821 30, , , % 37.47% Miscellaneous - CB 8,037 32, ,147 38, % % Subtotal - Administration Expenditures 1,850,071 2,208,297 2,290,086 2,543, % 11.06% Unallocated Expenditures - 4, ,910 - Total CATABUS Expenditures 12,791,854 14,073,014 14,073,014 15,533,357 * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

20 CATARIDE Revenues Details Passenger Fares - The anticipated decrease reflects recent trends toward lower ridership. Other Operating Revenues - CATARIDE has no other operating income. - The FY 2014/15 Adopted Budget column shows an amount planned as an infusion of revenue to support the wages and benefits associated with the new ADA/Paratransit Manager position. This was done at a time when the refund on our workers compensation insurance was to be reported as revenue. Since then, a federal mandate was issued requiring that the workers compensation refund instead be reported directly against the expenditure accounts from which workers compensation insurance is paid, so it is removed from the FY 2014/15 Adjusted Budget column. This will result in greater subsidies being needed for the CATARIDE service when viewed individually, but it will have no impact to the overall revenues and subsidies of CATA as an entire organization. Subsidies - Local subsidy was calculated at 5.5% of the total needed subsidy based on CATARIDE s percent of expenditures in the overall budget for FY 2013/14. - State subsidy includes Senior Citizen Shared Ride Assistance from PennDOT through lottery proceeds. The anticipated decrease in this line item reflects recent trends toward lower ridership. Expenditures Details Please note that the majority of the direct costs associated with CATARIDE have been captured. Indirect costs will be determined and assigned at the time when an FTA approved cost allocation plan is in place. Maintenance Expenditures - Mechanics Wages, Mechanics Benefits, and Revenue Vehicle Maintenance are all anticipated to decrease with arrival of the three replacement vehicles that are currently on order. Transportation Expenditures - The anticipated decrease in Purchased Transportation Services reflects recent trends toward lower ridership. - The Fuel and Lubricants line item was under budgeted in the FY 2014/15 Adopted Budget, but it has been adjusted to reflect actual experiences in the FY 2014/15 Adjusted Budget. The FY 2015/16 Proposed Budget includes a similar amount. - The Utilities line item includes funding for the data plan for tablets used in conjunction with the new Ecolane software. FY 2014/15 numbers include this service for a partial year, with FY 2015/16 Proposed Budget reflecting an amount appropriate for the full year. 18

21 CATARIDE Administration Expenditures - Staff Wages and Staff Benefits are no longer needed with the addition of the ADA/Paratransit Manager position. - The Professional Services line item includes funding for any legal needs that may arise. - Advertising and Marketing Support includes amounts associated with the planned new approach. - Additional funding is included for the printing of new policies, brochures, and quarterly newsletters. - The Office Supplies line item includes the postage cost for quarterly newsletters. - The Miscellaneous FY 2014/15 Adjusted Budget amount is elevated because it includes hiring expenses. 19

22 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 REVENUES Actual Budget Year End Budget Adopted Budget Projected Year End Passenger Fares CATARIDE Revenue 132, , , , % % Subtotal - Passenger Fares 132, , , , % % Other Revenues Miscellaneous Non-Transportation Revenue - Other , % 0.00% Subtotal - Other Revenues , % 0.00% Total Operating Revenues 132, , , , % % Centre Area Transportation Authority CATARIDE FISCAL YEAR 2015/16 BUDGET * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session. 20

23 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 SUBSIDIES Actual Budget Year End Budget Adopted Budget Projected Year End Local Subsidies Local Operating Assistance - State College Borough - 4,993 4,993 4, % -9.73% Local Operating Assistance - Ferguson Township - 5,102 5,102 4, % % Local Operating Assistance - Patton Township - 4,179 4,179 3, % % Local Operating Assistance - College Township - 3,616 3,616 2, % % Local Operating Assistance - Harris Township - 1,220 1, % % Local Operating Assistance - Spring Township % -4.94% Local Operating Assistance - Bellefonte Borough % -5.02% Local Operating Assistance - Halfmoon Township % % Local Operating Assistance - Benner Township % -5.17% Local Operating Assistance - Penn State University - 6,916 6,916 5, % % Subtotal - Local Subsidies - 28,356 28,356 23, % % Federal Subsidies Federal Operating Assistance - 388, , , % -5.31% Subtotal - Federal Subsidies - 388, , , % -5.31% Total Subsidies 687, , , , % % Total Revenues and Subsidies - CATARIDE 820, , , , % % Centre Area Transportation Authority CATARIDE FISCAL YEAR 2015/16 BUDGET 21 State Subsidies State Operating Assistance 366, % 0.00% Senior Citizen - Shared Ride Assistance 321, , , , % % Subtotal - State Subsidies 687, , , , % % * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

24 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Maintenance Expenditures: Mechanics Wages - CR 7,473 11,040 9,805 9, % -0.05% Mechanics Benefits - CR 3,256 4,140 6,059 4, % % Revenue Vehicle Maintenance - CR 5,901 12,420 15,500 8, % % Utilities - 1,500 2,160 3, % 66.67% Subtotal - Maintenance Expenditures 16,630 29,100 33,524 26, % % Centre Area Transportation Authority CATARIDE FISCAL YEAR 2015/16 BUDGET 22 Transportation Expenditures: Supervisory Wages - CR 11,710 49,067 25,927 49, % 90.71% Supervisory Benefits - CR 4,345 21,433 13,403 23, % 77.50% Purchased Transportation Services - CR 769, , , , % % Tires - Revenue Vehicles - CR 4,896 5,000 5,000 5, % 0.00% Fuel & Lubricants - Revenue Vehicles - CR 10,453 6,300 13,000 13, % 0.00% Miscellaneous - CR - 3,000 1,500 1, % 0.00% Subtotal - Transportation Expenditures 800, , , , % -6.32% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

25 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Administration Expenditures: Staff Wages - CR 1, , % % Staff Benefits - CR % % Professional Services - CR , % 0.00% Advertising - CR , % 0.00% Marketing Support - CR , % 0.00% Printing - CR 1,481 9,220 6,220 9, % 48.23% Office Supplies - CR , % 0.00% Miscellaneous - CR , % % Subtotal - Administration Expenditures 3,334 10,400 9,632 24, % % Total CATARide Departmental Expenditures 820, , , , % -5.12% Centre Area Transportation Authority CATARIDE FISCAL YEAR 2015/16 BUDGET 23 Unallocated Expenditures ,790 - Total CATARIDE Expenditures 820, , , ,961 * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

26 CATACOMMUTE Revenues Details Passenger Fares - Fares have been projected in the historical fashion and may differ once the new CATACOMMUTE structure is determined. Other Operating Revenues - CATACOMMUTE receives dues from vanpool members to join the Emergency Ride Home program. Contributions from Penn State cover this fee for their employees, and funding has been allocated to reflect such. Subsidies - CATACOMMUTE receives an annual contribution from Penn State, which is anticipated to increase by 3.0%. - Local subsidy was calculated at 3.5% of the total needed subsidy (following subtraction of the Penn State contribution) based on CATACOMMUTE s percent of expenditures in the overall budget for FY 2013/14. - Funding was reallocated from the Rideshare Assistance PSU line item to Emergency Ride Home under Other Revenues to reflect the intent of Penn State s contribution to cover this program s dues for their employees. Expenditures Details Please note that the majority of the direct costs associated with CATACOMMUTE have been captured. Indirect costs will be determined and assigned at the time when an FTA approved cost allocation plan is in place. Maintenance Expenditures - Mechanics Wages, Mechanics Benefits, and Revenue Vehicle Maintenance are all projected to decrease with the arrival of seven replacement vans that are currently on order. Transportation Expenditures - Tires are showing an increased amount because of the change to using winter tires. - Fuel & Lubricants is anticipated to be lower since gas prices have dropped. Administration Expenditures - The Professional Services line item includes funding for any legal needs that may arise. 24

27 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 REVENUES Actual Budget Year End Budget Adopted Budget Projected Year End Passenger Fares: CATACOMMUTE fares 381, , , , % 27.66% Subtotal - Passenger Fares 381, , , , % 27.66% Other Revenues: Auxiliary Transp. Revenue - Emergency Ride Home - PSU , % 0.00% Auxiliary Transp. Revenue - Emergency Ride Home 1,820 2,090 7,500 2, % % PSU Rideshare Assistance 36,098 37,360 31,950 33, % 3.51% Miscellaneous Transportation Revenue - Other % % Miscellaneous Non-Transportation Revenue - Other 4, % 0.00% Subtotal - Other Revenues 42,874 39,450 39,900 40, % 2.68% Total Operating Revenues 423, , , , % 25.51% Centre Area Transportation Authority CATACOMMUTE FISCAL YEAR 2015/16 BUDGET 25 * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

28 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 SUBSIDIES Actual Budget Year End Budget Adopted Budget Projected Year End Local Subsidies: Local Operating Assistance - State College Borough % % Local Operating Assistance - Ferguson Township % % Local Operating Assistance - Patton Township % % Local Operating Assistance - College Township % % Local Operating Assistance - Harris Township % % Local Operating Assistance - Spring Township % % Local Operating Assistance - Bellefonte Borough % % Local Operating Assistance - Halfmoon Township % % Local Operating Assistance - Benner Township % % Local Operating Assistance - Penn State University % % Subtotal - Local Subsidies % % Federal Subsidies: Federal Operating Assistance - 2,528 58, % % Subtotal - Federal Subsidies - 2,528 58, % % Total Subsidies 53,525 5, ,806 (63,099) % % Total Revenues and Subsidies - CATACOMMUTE 477, , , , % -9.73% Centre Area Transportation Authority CATACOMMUTE FISCAL YEAR 2015/16 BUDGET 26 State Subsidies: State Operating Assistance 53,525 2,351 52,038 (63,099) % % Subtotal - State Subsidies 53,525 2,351 52,038 (63,099) % % * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

29 Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Maintenance Expenditures: Mechanics Wages - CC 25,719 30,528 25,384 27, % 10.00% Mechanics Benefits - CC 12,768 13,992 18,895 13, % % Revenue Vehicle Maintenance - CC 21,199 19,080 36,800 31, % % Service Vehicle Maintenance - CC % 0.00% Radio Maintenance - CC % 0.00% Building & Equipment Maintenance - CC % 0.00% Uniforms and Accessories - CC % 0.00% Utilities - CC % 0.00% Safety, Training, Travel & Meetings - CC % 0.00% Miscellaneous - CC % 0.00% Subtotal - Maintenance Expenditures 59,686 63,600 81,079 73, % -9.01% Centre Area Transportation Authority CATACOMMUTE FISCAL YEAR 2015/16 BUDGET 27 Transportation Expenditures: Supervisory Wages - CC 55,239 57,249 57,249 58, % 1.87% Supervisory Benefits - CC 17,275 18,778 20,813 22, % 7.40% Tires - Revenue Vehicles - CC 8,859 12,960 18,000 20, % 13.33% Tires - Service Vehicles - CC % 0.00% Fuel & Lubricants - Revenue Vehicles - CC 232, , , , % % Safety, Training, Travel & Meetings - CC 5, , % % Insurance - CC 80,171 88,560 83,430 96, % 15.07% Shelters & Signs - CC % 0.00% Emergency Ride Home - CC 5,063 5,400 5,400 4, % % Miscellaneous - CC 312 7,136 10,056 7, % % Subtotal - Transportation Expenditures 405, , , , % -6.19% * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

30 Total CATACommute Departmental Expenditures 477, , , , % -5.59% Centre Area Transportation Authority CATACOMMUTE FISCAL YEAR 2015/16 BUDGET Adopted *Projected Proposed % Change vs. % Change vs. FY 2013/14 FY 2014/15 FY 2014/15 FY 2015/16 FY 2014/15 FY 2014/15 EXPENDITURES Actual Budget Year End Budget Adopted Budget Projected Year End Administration Expenditures: Professional Services - CC 2,550 4,000 4,000 6, % 63.75% Advertising - CC 3,833 5,750 5,750 5, % 0.00% Marketing Support - CC 5,514 3,750 3,750 3, % 0.00% Printing - CC % 50.00% Dues & Subscriptions - CC % 0.00% Interest Expense - CC - 4,245-4, % 0.00% Miscellaneous - CC 520 3,510 3,510 1, % % Subtotal - Administration Expenditures 12,417 21,655 17,985 22, % 24.94% Unallocated Expenditures ,179 - Total CATACOMMUTE Expenditures 477, , , , * Note: Projected FY 2014/15 year end numbers are as presented at the March 12, 2015 board work session.

31 SECTION III CAPITAL PROGRAM Facility Expansion Project Over the last fiscal year CATA has begun construction on a $32 million facility expansion project at the site of its current operations. CATA s current facility was built to house and maintain a fleet of 40 thirty-foot buses, and CATA has grown to 71 forty-foot buses, nearly twice the building s capacity. The project, slated for completion in 2018, will be constructed in three phases. The first phase will be the demolition of the current administration building and construction of a combined parking and operations/dispatch structure in its place. The second phase will be the construction of a building on the current employee parking area to house all maintenance functions on the first floor, training and parts storage on the second floor, and administrative offices on the third floor. Finally the last phase will move the current maintenance functions to their new location and allow expansion of the current bus storage building to facilitate housing up to 96 buses. The project has been funded with a $12.3 federal State of Good Repair grant, $20 million in funds provided by PennDOT, and the remainder supplied through local capital match from CATA s member municipalities. We are entering the third year of a five-year plan for local capital share that increases by $25,000 each year to a total of $175,000. It is expected that for FY 2018/19 local capital shares will return to lower levels. 29

32 Fleet Replacement The Federal Transit Administration (FTA) sets the useful life of a large transit bus at 12 years. Studies have shown that after 12 years the cost to repair and operate the vehicle starts to climb, and service reliability issues can arise. Based on this, an optimum average fleet age would be 6, with half of the fleet being less than 6 years old and half the fleet exceeding that age. In addition, the FTA recommends a spare ratio (the percentage of fleet that will not be on the street during the system s peak service times) of close to 20 percent. In 2010, CATA s average fleet age was 13, and its spare ratio had fallen to 8 percent. Adding to the crisis was a 100 percent Compressed Natural Gas (CNG) fueled fleet with a number of buses equipped with tanks that had certifications set to expire. At a time when CATA not only needed to expand its fleet to meet the needs of the growing Centre Region, CATA also desperately needed to replace its existing aging fleet. Over the last five years, CATA staff vigorously pursued federal discretionary grants successfully funding the replacement of 40 forty-foot buses, and purchasing five expansion 26-passenger buses to be used on a handful of routes with lower ridership. After the passage of new federal legislation called Map 21 (Moving Ahead for Progress in the 21 st Century Act), smaller bus-only systems such as CATA lost the ability to compete for discretionary funds for bus and bus facilities. The funding in this area was cut by nearly 45 percent and allocated to large bus and rail systems. Small and medium bus-only systems received a small portion of funds allocated by a formula, and for CATA this equates to the purchase of one bus every other year. By late 2014, CATA had ten 1996 and 1997 vintage buses with rusting frames and tanks that would begin to expire over the next 8 months. In December, PennDOT funded the purchase of ten 40-foot buses. CATA will celebrate the retirement of the 1996 Orion buses, part of CATA s original CNG fleet, this coming summer. While it is beneficial that CATA has been able to replace nearly two-thirds of its fleet over a fiveyear period, for the future the challenge will be to create a replacement plan that softens the large swell of bus replacements that will come due in approximately 12 to 15 years. CATA has prepared a fleet plan that looks to replace large transit buses before they reach 16 years of age, as well as increase the size of the fleet to maintain reasonable spare ratios to assure adequate preventative maintenance and allow for growth expected to meet upcoming community development and demand. In addition, growth in the vanpool program has been put on hold as the previous funding source used for vehicle replacement has been eliminated as well. CATA has joined other small and medium transit systems across the country to draw attention to the need for adequate bus and bus facility funding to retain a state of good repair, as well as some level of discretionary funding to assist these systems with purchases that must be made on a non-regular basis or to meet unmet needs. Until a new funding bill is passed, capital funding is uncertain. With the passage of Act 89 on the state level, there could be the opportunity for some relief on capital funding, but adequate funding for all capital needs from these sources is not expected. 30