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2 TO: Member Municipalities of the Centre Area Transportation Authority FROM: Hugh A. Mose, General Manager Louwana Oliva, Assistant General Manager DATE: April 4, 2014 SUBJECT: CATA s FY 2014/15 DRAFT Budget On behalf of the Centre Area Transportation Authority (CATA) Board of Directors, we are pleased to present CATA s FY 2014/15 Budget, which is scheduled to be adopted by the Board at their June 2014 meeting. For CATA, this has been a year of growth. By June 30 we expect to have set an all-time ridership record on our CATABUS service. In CATACOMMUTE, we will have exceeded 2,200 registrants in the carpool matching program and deployed our 43 rd vanpool, with vans now traveling to the Centre Region from eleven surrounding counties. In CATARIDE, our dial-a-ride service for older adults and people with disabilities, we are also experiencing ridership gains. Providing the higher levels of CATABUS service demanded by the four new student housing complexes that came on-line this past year has also allowed us to extend evening and Sunday service to several new areas of the community, as well as increase operating frequencies. Our apartment pass program, which now extends to nineteen complexes, is expected to account for nearly 30 percent of the CATABUS passenger revenue for the coming year. As a result of the CATABUS service increases instituted last fall, plus a significant mid-year adjustment to address capacity issues in corridors where new student housing has been developed, route and schedule changes over the next fiscal year are expected to be minimal. We have briefly outlined those proposed changes in Section II of this budget document. As we plan for the coming year we are approaching the end of MAP-21, the federal surface transportation authorizing legislation, and entering a new era of state transit funding thanks to Act 89. While MAP-21 took away federal discretionary capital funding, Act 89 holds promise for meeting CATA s large fleet and facility needs. However, both state and federal programs require local match from our member municipalities. i

3 This is also a time of transition within CATA. Over the past year we have added several new positions, increased the number of Bus Drivers as required by the expanded CATABUS service, and reorganized the Operations area. With Hugh s retirement at the end of FY 2013/14 and Louwana s appointment as his successor effective July 1, there will be further reorganization, to address new requirements on the state and federal level. This budget includes an increase in the CATABUS base fare, from $1.50 to $1.75, with corresponding raises in pass rates and token prices. We will negotiate an increase in the hourly rate that Penn State pays for LOOP and LINK service, and we have now moved all nineteen apartment complexes in the pass program to a per-ride model at a uniform rate. Having raised CATARIDE fares for older adults last year to achieve parity with persons with disabilities, no further increases are planned for FY 2014/15. With the possible loss of funding for replacement vehicles for the vanpool program, changes to the fare structure to make the program more sustainable are being investigated. This budget calls for an increase of percent in CATA s operating budget. The additional expenditures will be supported by the higher revenues associated with the fare increase, plus a projected five percent increase in state support. The budget also reflects a three percent increase in local shares from CATA s municipal funding partners and Penn State. Our Facility Expansion project, in planning now for over three years, will break ground this fall with completion expected in As outlined in last year s budget, our local share request for capital will increase by $25,000 each year for the next three years to meet the match requirements of our federal and state funding. The staged construction of the new buildings will require CATA s administrative staff to relocate to temporary quarters; the operations and maintenance functions will remain on-site. We remain concerned about both the age and size of our bus fleet. If we are unable to secure funding to replace buses, we will be forced to install new CNG tanks on 18- and 19-year old buses. In addition, with a spare ratio hovering around 14 percent, we will be unable to expand service during our peak periods. We are cautiously optimistic that state capital bond funds and Act 89 will allow PennDOT to allocate funds so that we can both replace our aging buses and also expand our current fleet to meet the needs of a growing community. Other capital projects to be implemented in FY 2014/15 include the acquisition of five cutaway minibuses for use on commuter-level routes where ridership levels permit, and the deployment of CATA s first CNG-powered sedans. If state funding is forthcoming we will also replace two CATARIDE passenger buses and up to eight vanpool vans. We and our colleagues on the CATA staff, as well as members of the CATA Board of Directors, will be pleased to discuss the details of the FY 2014/15 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 COG Format 7 Local Share Calculation and Allocation 8-20 SECTION II ORGANIZATIONAL INFORMATION CATA Organizational Structure and Chart Federal and State Funding Revenue and Local Support Capital Projects CATABUS Service Plan 31 CATA Fact Sheet FY 2014/15 32 Ridership by Route Report 33 Trends in Revenue SECTION III BOARD ESTABLISHED POLICY LEVEL GOALS FY 2013/14 Goals - Progress Report FY 2014/15 Goals SECTION IV OPERATING BUDGET Budget Introduction 42 Revenues and Expenditures Details - CATABUS Revenues and Expenditures Details - CATARIDE Revenues and Expenditures Details - CATACOMMUTE FY 2014/15 Summary and Line Item Program Budgets (CATA Format) Future Years Projections 75 Projection of Operating Revenues, Expenditures, Deficit-Subsidies, and Reserves 76 SECTION V CAPITAL BUDGET Capital Reserve Local Shares FY 2014/15 Capital Improvement Program iii

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6 SECTION I BUDGET SUMMARY AND LOCAL SHARES Introduction This year, for the first time, budgets have been developed by program for CATABUS, CATARIDE, and CATACOMMUTE, with a summary provided to illustrate the compilation of the three separate program budgets. The following pages are 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 that identifies those capital items for which CATA is requesting local share, as the required match for state and federal capital assistance. At the request of the COG Finance Committee, a set annual local capital match was established in 2002 in the amount of $60,000 per year. That amount was increased to $62,400 in FY 2007/08 and remained at that amount until last year when it was increased to $75,000, with a commitment to increase the amount by $25,000 each year for the next four years. Capital projects planned for the coming year will require local match, and the remainder of the total requested amount will be added to the capital reserve account in anticipation of local capital requirements associated with the facility expansion project, as well as future bus acquisitions. 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 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 IV - Operating Budget. The table below provides a summary of the total and individual local operating and capital contributions requested for FY 2014/15. OPERATING CAPITAL TOTAL Ferguson Township $ 92,760 $ 17,992 $ 110,752 State College Borough $ 90,784 $ 17,609 $ 108,393 Patton Township $ 75,981 $ 14,738 $ 90,719 College Township $ 65,745 $ 12,752 $ 78,497 Harris Township $ 22,189 $ 4,304 $ 26,493 Spring Township $ 17,960 $ 3,484 $ 21,444 Bellefonte Borough $ 14,989 $ 2,907 $ 17,896 Halfmoon Township $ 5,734 $ 1,112 $ 6,846 Benner Township $ 3,662 $ 710 $ 4,372 Penn State University $ 125,754 $ 24,392 $ 150,146 Total $ 515,558 $ 100,000 $ 615,558 1

7 Acct. No. Account ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF REVENUES Budgeted Receipts 2012/13 Actual Receipts 2012/13 Budgeted Receipts 2013/14 Projected Receipts 2013/14 Budgeted Receipts 2014/15 INTERGOVERNMENTAL REVENUE FEDERAL GRANTS CMAQ Projects 25, Operating Assistance 2,024,348 1,925, ,856,459 3,715,397 Federal Total 2,049,348 1,925,771 2,452,955 2,856,459 3,715,397 STATE/SPECIAL GRANTS Senior Citizen Shared Ride 275, , , , ,200 Transportation Planning 85,000 80,499 64,000 75,000 53,000 Operating Assistance 3,760,383 3,207,108 3,760,383 2,525,116 2,786,551 State Total 4,120,383 3,565,471 4,126,883 2,952,316 3,203,751 MUNICIPAL CONTRIBUTIONS Ferguson Township 82,118 82,118 84,967 86,021 92,760 State College Borough 75,100 75,100 89,777 89,469 90,784 Patton Township 77,481 77,481 76,298 75,682 75,981 College Township 63,351 63,351 65,212 58,351 65,745 Harris Township 26,394 26,394 25,113 24,781 22,189 Spring Township 17,142 17,142 17,743 17,623 17,960 Bellefonte Borough 16,343 16,343 16,731 16,631 14,989 Halfmoon Township 6,002 6,002 6,351 6,309 5,734 Benner Township 3,498 3,498 3,608 3,584 3,662 Penn State University 118, , , , ,754 Municipal Subtotal 485, , , , ,558 RideShare Support - Penn State 34,800 34,878 36,600 36,098 37,360 Municipal Total 520, , , , ,918 2

8 Acct. No. Account ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF REVENUES Budgeted Receipts 2012/13 Actual Receipts 2012/13 Budgeted Receipts 2013/14 Projected Receipts 2013/14 Budgeted Receipts 2014/15 MISCELLANEOUS REVENUE Farebox 1,054,000 1,110,792 1,090,000 1,210,000 1,411,500 OnePass 1,203,500 1,122,218 1,123,800 1,123,800 1,289,300 Football Shuttle 58,000 50,855 50,800 47,985 48,000 Purchase of Service - Apartments 1,488,185 1,533,257 1,972,200 1,948,000 2,059,500 Purchase of Service - Penn State 2,073,400 2,131,756 2,240,200 2,202,200 2,280,300 Advertising - Interior 35,000 35,063 42,000 45,000 48,000 Advertising - Exterior 100,000 61,158 86,000 69,000 84,000 Miscellaneous - Investment Income Miscellaneous - Transportion 200 1, Miscellaneous - Non-Transportation 4,600 44, , ,305 22,000 CATARide 119, , , , ,100 CATACommute 318, , , , ,290 Subtotal 6,454,335 6,441,619 7,395,550 7,589,585 7,936,240 TOTAL: 13,144,830 12,453,703 14,522,250 13,935,000 15,408,306 3

9 Acct. No. Account ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF APPROPRIATIONS AND EXPENDITURES Budgeted Appropriation 2012/13 Expenditure 2012/13 Budgeted Appropriation 2013/14 Projected Expenditure 2013/14 Budgeted Expenditure 2014/15 PERSONNEL Salaries (Staff) 1,569,400 1,563,952 1,759,900 1,583,000 1,776,100 Salaries (Part-Time Interns) 1, ,000 7,600 10,700 Drivers' Wages 4,025,000 4,200,377 4,570,800 4,450,000 4,826,000 Maintenance Wages 968, ,520 1,046, ,000 1,034,800 Employee Benefits 3,087,530 2,916,581 3,426,450 3,305,100 3,446,500 Subtotal 9,651,530 9,572,895 10,806,350 10,245,700 11,094,100 OPERATING EXPENSES MAINTENANCE Revenue Vehicle Maintenance 556, , , , ,200 Service Vehicle Maintenance 8,000 6,691 7,800 6,800 8,000 Radio Maintenance 9,900 9,391 10,000 10,000 10,500 Building & Equipment Maintenance 112, ,495 95, , ,900 Uniforms & Accessories 21,000 8,584 7,100 6,000 6,200 Utilities 172, , , , ,100 CATARIDE 21,000 31,335 26,200 26,200 29,100 CATACOMMUTE 19,000 46,568 41,700 59,000 63,600 Training 14,000 8,239 14,000 14,000 22,500 Miscellaneous 28,000 31,897 29,200 38,800 40,700 Subtotal 960, , , , ,800 TRANSPORTATION CATARIDE 760, , , , ,800 CATACOMMUTE 315, , , , ,451 Revenue Vehicles - Tires 71,000 83,333 95,400 95, ,000 Service Vehicles - Tires 2,000 1,806 2,000 1,600 2,000 Revenue Vehicles - Fuel & Lube 540, , , , ,000 CNG Tax Credit 0-454, Service Vehicles - Fuel & Lube 43,000 51,263 48,500 48,500 52,500 Safety & Training 33,000 21,322 33,000 33,000 39,500 Property and Liability Insurance 170, , , , ,000 Shelters & Signs 6,800 5,808 6,800 6,800 7,800 Uniforms 4,800 7,198 6,600 8,300 8,300 Miscellaneous 13,000 12,859 12,700 5,700 20,000 Subtotal 1,958,600 1,403,450 2,193,700 2,198,100 2,622,351 4

10 ANNUAL OPERATING BUDGET COMPARATIVE DETAIL OF APPROPRIATIONS AND EXPENDITURES Acct. No. Account Budgeted Appropriation 2012/13 Expenditur e 2012/13 Budgeted Appropriation 2013/14 Expenditur e 2013/14 Expenditur e 2014/15 ADMINISTRATION Corporate Insurance 35,000 34,508 39,500 39,500 42,000 Pass Sales & Supplies 15,000 16,606 14,700 10,500 14,300 Professional Services 276, , , , ,000 Advertising 34,600 31,398 23,800 23,800 21,000 Marketing Support 15,800 12,133 22,700 22,700 27,000 Printing ,600 Schedule Printing & Design 28,000 29,865 30,900 30,900 34,100 Telephone 21,000 23,833 26,000 28,800 29,000 Office Supplies & Services 30,000 41,644 32,400 32,400 35,000 Dues & Subscriptions 28,500 27,529 27,400 27,400 31,000 Travel & Meetings 32,000 34,784 32,000 32,000 40,500 Interest 26,500 36,678 26,600 41,300 30,000 Miscellaneous 20,500 19,826 32,200 22,000 32,500 CATARIDE 3,100 3,976 9,700 7,500 10,400 CATACOMMUTE 7,000 6,635 17,400 17,000 21,655 Subtotal 573, , , , ,055 TOTAL: 13,144,830 12,453,703 14,522,250 13,935,000 15,408,306 5

11 ANNUAL OPERATING BUDGET PERSONNEL SCHEDULE 2013/ /15 Proposed Salary Medical Account Salary Range FICA Insurance 2014/15 Workers' Retiremen Compensation t Disability/Lif e Insurance Unemployment Insurance General Manager $98,280 N.A. - N.A. $7,819 $ 17,261 $440 $23,509 $419 $0 Director of Information Services $80,496 $52,942 - $84,707 $6,404 $ - $360 $6,697 $343 $0 Director of Finance $75,234 $58,368 - $93,390 $5,986 $ 9,308 $336 $6,259 $321 $0 Maintenance Manager $70,762 $52,438 - $78,657 $5,630 $ 9,308 $316 $5,887 $302 $0 Public Relations Manager $69,638 $47,563 - $71,344 $5,540 $ 24,696 $311 $5,794 $297 $0 Director of Human Resources/Compliance $68,910 $52,942 - $84,707 $5,483 $ 24,696 $308 $5,733 $294 $0 Director of Transportation $66,082 $55,589 - $88,942 $5,257 $ 9,308 $296 $5,498 $282 $0 Accounting Coordinator $61,131 $43,141 - $64,712 $4,864 $ 9,308 $273 $5,086 $261 $0 Operations Manager $52,936 $52,438 - $78,657 $4,212 $ 17,261 $237 $4,404 $226 $0 Lead Supervisor $61,568 $47,563 - $71,344 $4,898 $ 9,308 $275 $5,122 $263 $0 Operations Supervisor $60,944 $43,141 - $64,712 $4,849 $ 17,261 $273 $5,071 $260 $0 Operations Supervisor $60,632 $43,141 - $64,712 $4,824 $ - $271 $5,045 $259 $0 Operations Supervisor $46,197 $43,141 - $64,712 $3,675 $ 24,696 $207 $3,844 $197 $0 Maintenance Supervisor $59,010 $45,298 - $67,947 $4,695 $ 24,696 $264 $4,910 $252 $0 Facility Supervisor $56,243 $45,298 - $67,947 $4,475 $ - $252 $4,679 $240 $0 Executive Assistant/Board Liaison $55,619 $43,141 - $64,712 $4,425 $ 9,308 $249 $4,628 $237 $0 Manager of Safety and Training N/A $45,000 - $55,000 $4,375 $ - $246 $4,576 $234 $0 Commuter Services Manager $54,475 $40,761 - $57,065 $4,334 $ 9,308 $244 $4,532 $232 $0 Financial Analyst $52,998 $47,563 - $71,344 $4,217 $ 17,261 $237 $4,409 $226 $0 Maintenance Supervisor $51,501 $45,298 - $67,947 $3,940 $ 17,261 $221 $4,120 $211 $0 Payroll Benefits Coordinator $46,842 $36,971 - $51,760 $3,727 $ 9,308 $209 $3,897 $200 $0 Purchasing Coordinator $46,530 $36,971 - $51,760 $3,702 $ 17,261 $208 $3,871 $198 $0 Accounts Payable Processor $43,763 $35,210 - $49,294 $3,482 $ 9,308 $196 $3,641 $187 $0 IT Specialist $43,701 $41,086 - $61,629 $1,836 $ 9,308 $103 $1,920 $98 $0 Customer Service Supervisor $34,091 $43,000 - $53,000 $3,579 $ - $201 $3,743 $192 $0 Customer Service Representative $34,861 $30,227 - $39,296 $2,774 $ 9,308 $156 $2,900 $149 $0 Dispatcher $34,632 $30,227 - $39,296 $2,649 $ 9,308 $149 $2,771 $142 $0 Dispatcher $32,240 $30,227 - $39,296 $2,565 $ - $144 $2,682 $137 $0 Dispatcher $32,240 $30,227 - $39,296 $2,565 $ - $144 $2,682 $137 $0 Dispatcher $32,240 $30,227 - $39,296 $2,466 $ 9,308 $139 $2,579 $132 $0 SUBTOTAL $1,583,796 - $129,246 $323,354 $7,265 $150,491 $6,927 $0 Part-Time HR Office Assistant $19.39/Hr. $ $19.84/ Hr. $1,521 $0 $85 $1,590 $0 $0 Part-Time Receptionist/Cust. Serv. Rep $15.16/Hr. $ $17.99/ Hr. $1,218 $0 $68 $1,274 $0 $0 Part-Time Fare Counter $11.72/Hr. $ $15.54/ Hr. $990 $0 $56 $1,035 $0 $0 Part-Time Interns $9.50/Hr $ 9.50 / Hr. $229 $0 $13 $0 $0 $0 TOTAL: $1,583,796 $133,203 $323,354 $7,487 $154,390 $6,927 $0 6

12 CAPITAL PROJECT DESCRIPTION ANNUAL CAPITAL BUDGET FY 2014/15 CAPITAL PROJECT LISTING Total Estimated Project Cost Federal Share (80.000%) State Share (19.355%) (96.775%) (96.333%) Local Share (0.645%) (3.225%) (3.333%) VEHICLE AND EQUIPMENT PURCHASES: Buses (10 40' replacements) $4,750,000 $0 $4,596,813 $153,188 Vanpool Vans (2 expansion, 8 replacements) $350,000 $0 $338,713 $11,288 Service Vehicles (10 replacement sedans) $300,000 $0 $290,325 $9,675 Routine Equipment Needs $100,000 $0 $96,775 $3,225 STATIONS AND FACILITIES: Maintenance Facility & Bus Storage Porject $13,800,000 $11,040,000 $2,670,990 $89,010 Routine Facility Upgrade Needs $300,000 $290,325 $9,675 TECHNOLOGY: ITS System Expansion (Phase 3) $373,000 $0 $360,971 $12,029 Routine Technology Needs $200,000 $0 $193,550 $6,450 OTHER SUPPORT PROGRAMS Routine software, computer, office, and shop $200,000 $0 $193,550 $6,450 $300,989 Impact to Capital Reserve Account * -$200,989 Total requested $100,000 *Note: This portion of the capital contributions for FY 2014/15 will be added to or subtracted from the Capital Reserve Account. TOTAL LOCAL CAPITAL CONTRIBUTIONS Ferguson Township $17,992 State College Borough $17,609 Patton Township $14,738 College Township $12,752 Harris Township $4,304 Spring Township $3,484 Bellefonte Borough $2,907 Halfmoon Township $1,112 Benner Township $710 Penn State University $24,392 7

13 Local Share Calculation and Allocation This section of the budget addresses the Authority s local share request for FY 2014/15, in the amount of $515,557, a 3% increase over the amount requested last year. However, as noted in previous years, changes in each municipality s share will vary from the individual amounts approved in FY 2013/14 based on mileage, ridership and other factors used in the Miller formula. The requested local operating match is driven by the state funding received by CATA. Each year, PennDOT utilizes the applicable formula under the current legislation to determine the funding amount that will be allocated to CATA. The legislation requires that CATA s local funding partners provide a 15% local match on the operating funding provided by PennDOT, but there is a ceiling provision in the regulations stating that the maximum increase that can be required of a transit system in any single year is 5%. Having been historically under-funded, CATA has never come close to the 15% level and will remain in the category of those transit agencies qualifying for the 5% per year cap for the foreseeable future. Should adequate funding to cover the required local operating match not be provided by the municipalities receiving service, CATA would be forced to return the portion of PennDOT funding that is not matched. 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 1990s to address this deficiency. In the late 1990s it was simplified, 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 1998/99, 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 8

14 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 2001/02 to set the University s local share at the percentage of total system route mileage operated on the LOOPs and LINKs. 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. Details of the Formula Note: All data items used in the formula (revenue, expenses, mileage, ridership, etc.) are budgeted or estimated values for FY 2014/ 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 Mileage 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 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. 9

15 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. 6. Federal and State Subsidy equals total budgeted federal and state operating assistance. 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 following 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 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 10

16 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 XB 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 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. 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. 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. 2013/14 Budget % of total 2014/15 Proposed % of total Percent Change Ferguson Township $ 86, % $ 92, % 7.83% State College Borough $ 89, % $ 90, % 1.47% Patton Township $ 75, % $ 75, % 0.40% College Township $ 58, % $ 65, % 12.67% Harris Township $ 24, % $ 22, % % Spring Township $ 17, % $ 17, % 1.91% Bellefonte Borough $ 16, % $ 14, % -9.87% Halfmoon Township $ 6, % $ 5, % -9.11% Benner Township $ 3, % $ 3, % 2.18% Penn State University $ 122, % $ 125, % 3.00% Total $ 500, % $ 515, % 11

17 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2014/15 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 Annual Total Percentage 0.59% 0.00% 38.42% 45.69% 0.00% 15.89% 0.00% 0.00% 0.00% 0.00% 0.00% Boalsburg Full AM Peak PM Peak Mid Day/Evening B Ski Season Weekday Total Saturday Annual Total Percentage 2.05% 0.00% 29.38% 0.00% 15.61% 0.00% 55.01% 0.00% 0.00% 0.00% 0.00% Houserville Full Weekday C Annual Total Percentage 1.01% 0.00% 24.06% 0.00% 75.94% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Pine Grove Full Weekday F Annual Total Percentage 1.38% 0.00% 26.55% 73.45% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Stormstown Full Weekday G Annual Total Percentage 2.14% 0.00% 11.58% 5.79% 0.00% 51.13% 0.00% 0.00% 0.00% 0.00% 31.51% Toftrees Full Weekday Short HP Saturday Scenery Park Full Service Totals HP Reduced Weekday Short HP Saturday Reduced Service Totals Annual Total Percentage 7.97% 0.00% 29.70% 0.00% 22.06% 48.24% 0.00% 0.00% 0.00% 0.00% 0.00% Cato Park Full Weekday K Annual Total Percentage 2.77% 0.00% 32.71% 67.29% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 12

18 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2014/15 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Nittany Mall Full Weekday Saturday Sunday Full Service Totals M Reduced Weekday Saturday Sunday Reduced Service Totals Annual Total Percentage 8.13% 0.00% 25.83% 0.00% 74.17% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Martin St Full Weekday Aaron Drive Saturday Sunday Full Service Totals N Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 5.51% 5.51% 0.00% 39.77% 36.36% 0.00% 23.86% 0.00% 0.00% 0.00% 0.00% 0.00% Martin St Weekday NE Annual Total Percentage 2.94% 0.00% 18.03% 52.46% 0.00% 29.51% 0.00% 0.00% 0.00% 0.00% 0.00% Martin St/Vairo Blvd Weekday Toftrees Ave Saturday NV Sunday Annual Total Percentage 3.22% 0.00% 15.51% 36.23% 15.51% 32.74% 0.00% 0.00% 0.00% 0.00% 0.00% Waupelani Dr Full Weekday Saturday Sunday Full Service Totals R Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 5.20% 0.00% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 13

19 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2014/15 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Waupelani Dr Full Weekday Campus RC Annual Total Percentage 2.60% 0.00% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Waupelani Dr Weekday Downtown Saturday RP Annual Total Percentage 0.00% 0.00% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Science Pk Rd Full Weekday S Annual Total Percentage 0.85% 0.00% 43.55% 56.45% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% University Terrace Full Weekday UT Annual Total Percentage 0.81% 0.00% 90.00% 0.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vairo Blvd. Full Weekday Saturday Sunday Full Service Totals V Reduced Weekday Saturday Reduced Service Totals Annual Total Percentage 5.96% 0.00% 36.84% 31.58% 0.00% 31.58% 0.00% 0.00% 0.00% 0.00% 0.00% Toftrees Ave/Vairo Weekday Martin St. Saturday VN Sunday Annual Total Percentage 3.22% 0.00% 15.51% 36.23% 15.51% 32.74% 0.00% 0.00% 0.00% 0.00% 0.00% Vairo Blvd. Weekday VE Annual Total Percentage 5.48% 0.00% 32.39% 42.25% 0.00% 25.35% 0.00% 0.00% 0.00% 0.00% 0.00% 14

20 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2014/15 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Valley Vista Full Weekday Short W Saturday Full Service Totals W Reduced Weekday Short W Saturday Reduced Service Totals Annual Total Percentage 6.00% 0.00% 21.17% 39.42% 0.00% 39.42% 0.00% 0.00% 0.00% 0.00% 0.00% Havenshire Blvd. Weekday WE Annual Total Percentage 0.35% 0.00% 36.54% 63.46% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Bellefonte Full Weekday Saturday XB Annual Total Percentage 3.59% 0.00% 12.41% 0.00% 26.60% 0.00% 0.00% 23.57% 10.40% 27.03% 0.00% Pleasant Gap Full Weekday Saturday XG Annual Total Percentage 3.57% 0.00% 9.98% 0.00% 24.58% 0.00% 0.00% 9.10% 47.23% 9.10% 0.00% White LOOP Full Weekday Thurs/Fri Late Night WLP Saturday Sunday Annual Total Percentage 5.33% % 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 BLP Full Service Totals Reduced Weekday Reduced Service Totals Annual Total Percentage 10.25% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 15

21 REVENUE MILEAGE - ALLOCATION TO MUNICIPALITIES - FY 2014/15 Route Route Description Service Days Service Days Trips Mileage PSU St. College Ferguson College Patton Harris Bellefonte Spring Benner Halfmoon Red LINK Full Weekday Saturday Sunday Full Service Totals RLK Reduced Weekday Reduced Service Totals Annual Total Percentage 6.31% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Green LINK Full Weekday GLK Annual Total Percentage 1.34% % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Mileage Percentage % 23.24% 27.28% 16.41% 11.79% 14.96% 1.13% 1.17% 2.06% 1.29% 0.67% 16

22 MILEAGE/SUBSIDY FORMULA: ALL DATA REPRESENTS FY 2014/15 ESTIMATES Column: Route Vehicle Miles Farepaying Passengers Fixed Route Expense Plus Paratransit & Vanpool Expense Equals Total Expense Less Direct Route Revenue Less Non-Route Revenue Equals Net Expense Less Passenger Revenue Equals Route Deficit Less Federal/State Subsidies Equals Local Subsidy A 9,669 6,235 $81,458 $8,896 $90,354 $0 $4,971 $85,383 $12,417 $72,967 $68, $4,466 B 33,728 12,650 $284,157 $31,032 $315,189 $550 $17,339 $297,300 $25,191 $272,108 $255,452 $16,656 C 16,692 3,635 $140,627 $15,357 $155,984 $0 $8,581 $147,403 $7,239 $140,165 $131,585 $8,580 F 22,690 6,375 $191,168 $20,877 $212,045 $0 $11,665 $200,380 $12,695 $187,685 $176,196 $11,488 G 35,240 6,985 $296,903 $32,423 $329,327 $0 $18,117 $311,210 $13,910 $297,300 $279,102 $18,198 HP 131,488 54,310 $1,107,793 $120,977 $1,228,770 $52,099 $67,597 $1,109,074 $108,154 $1,000,920 $939,652 $61,268 K 45,657 19,325 $384,663 $42,007 $426,670 $0 $23,472 $403,198 $38,484 $364,714 $342,389 $22,325 M 134,065 94,755 $1,129,511 $123,349 $1,252,860 $77,600 $68,922 $1,106,338 $188,697 $917,641 $861,471 $56,170 N 90, ,330 $764,836 $83,524 $848,360 $129,590 $46,670 $672,100 $277,465 $394,635 $370,479 $24,156 NE 48,495 91,530 $408,574 $44,619 $453,193 $237,630 $24,931 $190,632 $182,275 $8,357 $7,845 $512 NV 53,142 26,000 $447,728 $48,894 $496,623 $64,500 $27,320 $404,803 $51,777 $353,026 $331,417 $21,609 R 85, ,310 $723,013 $78,957 $801,970 $114,981 $44,118 $642,871 $530,335 $112,536 $105,648 $6,889 RC 42, ,655 $361,421 $39,469 $400,890 $115,027 $22,054 $263,809 $313,957 -$50,148 -$47,079 -$3,070 RP 23,416 93,755 $197,278 $21,544 $218,822 $41,433 $12,038 $165,351 $186,706 -$21,354 -$20,047 -$1,307 S 14,006 4,288 $118,000 $12,886 $130,886 $0 $7,200 $123,686 $8,539 $115,147 $108,098 $7,048 UT 13,356 2,530 $112,525 $12,288 $124,814 $85,344 $6,866 $32,604 $5,038 $27,565 $25,878 $1,687 V 98, ,765 $828,316 $90,457 $918,773 $259,086 $50,543 $609,143 $399,808 $209,335 $196,522 $12,814 VN 53,142 25,000 $447,728 $48,894 $496,623 $58,564 $27,320 $410,739 $49,786 $360,953 $338,859 $22,094 VE 90,312 59,160 $760,886 $83,093 $843,979 $623,284 $46,429 $174,266 $117,812 $56,453 $52,998 $3,456 W 98,996 55,600 $834,051 $91,083 $925,134 $140,313 $50,893 $733,927 $110,723 $623,204 $585,057 $38,147 WE 5,788 6,040 $48,761 $5,325 $54,086 $59,499 $2,975 -$8,388 $12,028 -$20,417 -$19,167 -$1,250 XB 59,169 30,425 $498,507 $54,440 $552,947 $0 $30,419 $522,528 $60,589 $461,939 $433,663 $28,276 XG 58,835 18,165 $495,693 $54,132 $549,825 $0 $30,247 $519,578 $36,174 $483,404 $453,814 $29,590 WHITE LOOP 87,885 0 $740,438 $80,860 $821,298 $522,874 $45,181 $253,243 $0 $253,243 $224,395 $28,848 BLUE LOOP 169,010 0 $1,423,924 $155,500 $1,579,425 $1,005,531 $86,887 $487,007 $0 $487,007 $431,530 $55,477 RED LINK 104,078 0 $876,866 $95,759 $972,625 $619,215 $53,506 $299,904 $0 $299,904 $265,740 $34,164 GREEN LINK 22,133 0 $186,471 $20,364 $206,834 $131,680 $11,378 $63,776 $0 $63,776 $56,511 $7,265 TOTAL 1,648,803 1,380,823 $13,891,300 $1,517,005 $15,408,305 $4,338,800 $847,640 $10,221,865 $2,749,800 $7,472,065 $6,956,508 $515,557 Notes: Column 1: Total miles operated on each route 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 the 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* Column 12: Column 10 minus column 11* * The Miller Formula was modified in FY 2001/02 to set Penn State's local share at the percentage of total system route mileage operated on the LOOPs and LINKs in order to avoid extremely low local share requirements on these heavily subsidized routes. 17

23 CALCULATION OF "REGIONAL" FACTORS - FY 2014/2015 ROUTE FACTOR RANGE WEIGHT A B C F G HP K M N NE N/V R RC RP S UT V V/N VE W WE XB XG Non-residential destinations served na na na Connections support other routes na na na Non-productive mileage na na na Totals na na na Local Percentage 100% 85% 85% 80% 0% 40% 40% 50% 65% 90% 80% 100% 100% 100% 90% 100% 75% 80% 100% 70% 100% 0% 0% Regional Percentage 0% 15% 15% 20% 68% 60% 60% 50% 35% 10% 20% 0% 0% 0% 10% 0% 25% 20% 0% 30% 0% 39% 35% External Percentage 0% 0% 0% 0% 32% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0% 0% 0% 100% 0% 0% 100% 61% 65% 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 Graysdale / Halfmoon Provides commuter level service to Vista Woods, Graysdale and Stormstown HP Toftrees / Scenery Park Serves Geisinger Gray's Woods, the Village at Penn State and Toftrees; continues through campus to serve Pugh St, Foxdale and Scenery Park K W. College Ave. / Cato Park Serves Cato Park, Old Gatesburg Road and W. College Avenue into downtown and campus M Lemont / Nittany Mall Serves E. College Avenue, Lemont and Dale Summit; heavily used by shoppers N Martin St. / Aaron Dr. / Colonnade Connects apartment complexes on Martin Street and Aaron Drive to campus; also serves Northland Center and the Colonnade NE Martin St. Provides additional capacity and frequency between student housing on Martin Street and Campus N/V Martin St. / Vairo Blvd / Toftrees Provides additional capacity and frequency between student housing on Vairo Blvd., Toftrees Avenue and Martin Street and downtown R Waupelani Dr. Serves an almost entirely residential area; heavily used by students and other residents of SW Borough RC Waupelani Dr. Provides additional capacity and frequency between student housing on Waupelani Drive and Campus RP Waupelani Dr. Provides additional capacity and frequency between student housing on Waupelani Drive and downtown 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 V/N Martin St. / Vairo Blvd / Toftrees Provides additional capacity and frequency between student housing on Vairo Blvd., Toftrees Avenue and Martin Street and downtown VE Vairo Blvd. Provides additional capacity and frequency between student housing on Vairo Blvd. and Campus W Park Forest / Geisinger Serves Northland Center, Circleville Road, Valley Vista Drive, western Park Forest and CVIM WE Havenshire Blvd. Provides additional capacity and frequency between student housing on Havenshire Blvd. and Campus XB Bellefonte Serves E. College Avenue, Lemont and Dale Summit, with continuing service to Bellefonte; mainly commuters XG Pleasant Gap Serves E, College Avenue, Lemont and Dale Summit, with continuing service to Pleasant Gap; mainly commuters 18

24 CATA LOCAL SHARE ALLOCATION - FY 2014/15 Route A Route Description Subsidy Public/Pvt. Park Forest Local Share Tier Percentage Penn State State College Boro Ferguson Twp. College Twp. $4,466 $0 $4,466 Local % 0.00% $ % $1, % $2, % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Patton Twp. Harris Twp. Bellefonte Boro Spring Twp. Benner Twp. Halfmoon Twp. Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 B Boalsburg $16,656 $0 $16,656 Local 85.00% 0.00% $ % $4, % $ % $2, % $ % $7, % $0 0.00% $0 0.00% $0 0.00% $0 Harris Regional 15.00% 0.00% $ % $ % $ % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 C Houserville $8,580 $0 $8,580 Local 85.00% 0.00% $ % $1, % $ % $5, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 15.00% 0.00% $ % $ % $ % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 F Pine Grove $11,488 $0 $11,488 Local 80.00% 0.00% $ % $2, % $6, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 20.00% 0.00% $ % $ % $ % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 G Stormstown $18,198 $0 $18,198 Local 0.00% 0.00% $ % $0 5.79% $0 0.00% $ % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $ % $0 Regional 68.49% 0.00% $ % $2, % $3, % $2, % $2, % $1, % $0 0.00% $0 0.00% $0 0.00% $0 External 31.51% % $5,734 HP Toftrees $61,268 $0 $61,268 Local 40.00% 0.00% $ % $7, % $ % $5, % $11, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Scenery Park College Regional 60.00% 0.00% $ % $8, % $10, % $6, % $8, % $3, % $0 0.00% $0 0.00% $0 0.00% $0 K Cato Park $22,325 $22,325 Local 40.00% 0.00% $ % $2, % $6, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 60.00% 0.00% $ % $3, % $3, % $2, % $2, % $1, % $0 0.00% $0 0.00% $0 0.00% $0 M Nittany Mall $56,170 $0 $56,170 Local 50.00% 0.00% $ % $7, % $ % $20, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 College Regional 50.00% 0.00% $ % $6, % $7, % $4, % $6, % $2, % $0 0.00% $0 0.00% $0 0.00% $0 N Martin St. $24,156 $0 $24,156 Local 65.00% 0.00% $ % $6, % $5, % $ % $3, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Aaron Drive Patton Regional 35.00% 0.00% $ % $1, % $2, % $1, % $1, % $ % $0 0.00% $0 0.00% $0 0.00% $0 NE Martin St. $512 $0 $512 Local 90.00% 0.00% $ % $ % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 N/V Aaron Drive Regional 10.00% 0.00% $ % $ % $ % $ % $ % $5 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Martin St./ Vairo Blvd. $21,609 $0 $21,609 Local 80.00% 0.00% $ % $2, % $6, % $2, % $5, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Toftrees Ave. Regional 20.00% 0.00% $ % $1, % $1, % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 R Waupelani Dr. $6,889 $0 $6,889 Local % 0.00% $ % $6, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 RC Waupelani Dr. -$3,070 $0 -$3,070 Local % 0.00% $ % -$3, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Campus Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 RP Waupelani Dr. -$1,307 $0 -$1,307 Local % 0.00% $ % -$1, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Downtown Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 S Science Park $7,048 $0 $7,048 Local 90.00% 0.00% $ % $2, % $3, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 10.00% 0.00% $ % $ % $ % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 UT $1,687 $0 $1,687 Local % 0.00% $ % $1, % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 V Vairo Blvd. $12,814 $0 $12,814 Local 75.00% 0.00% $ % $3, % $3, % $ % $3, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Patton Regional 25.00% 0.00% $ % $ % $ % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 Toftrees Ave. V/N $22,094 $0 $22,094 Local 80.00% 0.00% $ % $2, % $6, % $2, % $5, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Martin St Regional 20.00% 0.00% $ % $1, % $1, % $ % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 VE Vairo Blvd. $3,456 $0 $3,456 Local % 0.00% $ % $1, % $1, % $ % $ % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 W Valley Vista $38,147 $0 $38,147 Local 70.00% 0.00% $ % $5, % $10, % $ % $10, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 30.00% 0.00% $ % $2, % $3, % $1, % $2, % $1, % $0 0.00% $0 0.00% $0 0.00% $0 WE Havenshire Blvd. -$1,250 $0 -$1,250 Local % 0.00% $ % -$ % -$ % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Regional 0.00% 0.00% $ % $ % $ % $ % $0 9.56% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 19

25 CATA LOCAL SHARE ALLOCATION - FY 2014/15 Route Route Description Subsidy Public/Pvt. Local Share Tier Percentage Penn State State College Boro Ferguson Twp. College Twp. Patton Twp. Harris Twp. Bellefonte Boro Spring Twp. Benner Twp. Halfmoon Twp. XB Bellefonte $28,276 $0 $28,276 Local 0.00% 0.00% $ % $0 0.00% $ % $0 0.00% $0 0.00% $ % $ % $ % $0 0.00% $0 Bellefonte Regional 39.01% 0.00% $ % $2, % $3, % $1, % $2, % $1, % $0 0.00% $0 0.00% $0 0.00% $0 External 60.99% 42.00% $7, % $8, % $1,725 XG Pleasant Gap $29,590 $0 $29,590 Local 0.00% 0.00% $0 9.98% $0 0.00% $ % $0 0.00% $0 0.00% $0 9.10% $ % $0 9.10% $0 0.00% $0 Spring Regional 34.56% 0.00% $ % $2, % $2, % $1, % $2, % $ % $0 0.00% $0 0.00% $0 0.00% $0 External 65.44% 40.00% $7, % $9, % $1,936 WLP White LOOP $28,848 $0 $28,848 Local % % $28, % 0.00% 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 BLP Blue LOOP $55,477 $0 $55,477 Local % % $55, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 RLK Red LINK $34,164 $0 $34,164 Local % % $34, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 GLK Green LINK $7,265 $0 $7,265 Local % % $7, % $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 Totals $515,557 $0 $515,557 Local Tax Support $0 $90,784 $92,760 $65,745 $75,981 $22,189 $14,989 $17,960 $3,661 $5,734 Public/Private Partnerships $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Penn State Support $125,754 $0 $0 $0 $0 $0 $0 $0 $0 $0 Summary Penn State Stat College Ferguson Twp. College Twp. Historical Local Share Allocation Patton Twp. Harris Twp. Bellefonte Boro Twp. Benner Twp. Halfmoon Twp Local Tax Support $389,803 FY 14/15 Local Shares $125,754 $90,784 $92,760 $65,745 $75,981 $22,189 $14,989 $17,960 $3,661 $5,734 Public/Pvt. Partnerships $0 Penn State Support $125,754 FY 13/14 Local Shares $122,091 $89,469 $86,021 $58,351 $75,682 $24,781 $16,631 $17,623 $3,584 $6,309 Total Local Share $515,557 FY 12/13 Local Shares $118,535 $75,100 $82,117 $63,351 $77,481 $26,394 $16,343 $17,142 $3,498 $6,002 FY 11/12 Local Shares $112,980 $81,977 $74,562 $60,092 $76,120 $23,803 $15,848 $15,826 $3,297 $6,467 FY 10/11 Local Shares $107,600 $79,188 $75,447 $45,749 $70,373 $22,439 $15,430 $15,261 $4,535 $4,762 FY 09/10 Local Shares $102,476 $72,499 $76,691 $46,439 $61,083 $21,083 $15,288 $15,100 $4,533 $4,601 FY 08/09 Local Shares $102,476 $74,575 $76,854 $46,883 $63,803 $20,374 $15,323 $15,133 $4,374 $0 FY 07/08 Local Shares $51,021 $4,261 $0 FY 06/07 Local Shares $14,731 $0 FY 05/06 Local Shares $81,651 $64,191 $14,091 $0 FY 04/05 Local Shares $61,301 $0 FY 03/04 Local Shares $53,711 $0 FY 02/03 Local Shares FY 01/02 Local Shares FY 00/01 Local Shares FY 99/00 Local Shares $12,991 $0 $47,071 $0 $0 $58,751 $0 20

26 SECTION II ORGANIZATIONAL INFORMATION CATA Organizational Structure In 2009, the CATA Board of Directors had the foresight to recognize the need to start a transition process for the retirement of long-time General Manager Hugh Mose. Following some unplanned internal staff events, the Board was forced to look outside the agency to select a candidate who would succeed Hugh at the time of his planned retirement. In January of 2010, Louwana Oliva, a candidate with 16 years of experience working in various levels of public transportation in Ohio, was chosen to become the agency s Assistant General Manager. On June 30 of this year, Hugh will retire, and the Board of Directors will turn the reins over to Louwana to begin her tenure as the agency s next General Manager. In preparation for this transition, the Board has approved Louwana s staff reorganization plan set to go into effect on July 1, The new plan reorganizes the staff in four areas of focus: Transportation, Information Services, Human Resources and Finance. Most existing positions will move forward into the new plan, a few positions have been upgraded or removed, and a position of Safety and Training Manager has been added. Ryan Harshbarger has been appointed the Director of Transportation. He will be responsible for guiding the maintenance and operations functions of the agency. The operations portion will include managing CATABUS, CATARIDE and CATACOMMUTE services and their employees. Mark Kutzer remains CATA s Maintenance Manager, and Christopher Jordan has been appointed as Operations Manager. Eric Bernier, CATA s Service Development Manager, has been promoted to the position of Director of Information Services. Under his guidance will be the customer service, public relations, and information technology functions. CATA hired its first Information Technology Specialist this spring in order to prepare for a new IT service model with the Regional Technology Consortium (RTC), and to assist with the facility construction project for which CATA will break ground in the fall. Sylvia Rosa-Ortiz has been promoted to Director of Human Resources and Compliance. In this area, Sylvia and her staff will assist CATA in functions such as payroll and benefits, as well as monitor compliance issues in a number of areas. The new Safety and Training Manager will be assigned to this division. Kimberly Fragola will become CATA s Director of Finance. Kimberly and her staff will be responsible for maintaining and improving CATA s financial health, our financial compliance and reporting, as well as the pursuit of additional sources of funding to assist CATA in meeting community needs. 21

27 While CATA had planned to reach 113 bus drivers last year, we were never able to hire more than 109 due to a number of issues. CATA expects to hire six new drivers over the coming months to reach an optimal staff of 115 total drivers by the start of full service in the fall. In the maintenance area, CATA has struggled to find candidates for mechanic positions. As a result, CATA will begin to focus on a process of bringing in staff in entry level positions and then training and promoting from within. A program using Automotive Service Excellence (ASE) Master Transit certification has been instituted to reward continued training and growth in this area. The biggest challenge for CATA s staff for the next few years will be to efficiently operate our services through a construction project that will in some cases cause a relocation of staff, and in other areas mean that staff will work from cramped or shared spaces. The staff is focused on the operational efficiencies that will come from the project in the long term and committed to the overall quality of CATA s service during the three-year-long project. Employee Compensation CATA is in the last year of a two-and-a-half year collective bargaining agreement with AFSCME Council 83 and Local 1203-B. Under that contract CATA s represented employees receive a two percent wage increase in April. The current contract will expire at the end of March, 2015, so there is likely to be another increase prior to the end of FY 2014/15. The amount of any such wage and benefit adjustment is yet to be negotiated. For the current fiscal year, reflecting the Board s desire to maximize the relationship between performance and compensation increases, the budget included no general market adjustment, while 3.0% was programmed for merit increases. In addition, because the entire pay plan had moved only one percent in three years, all pay ranges were adjusted upward by 3.0%, but individual salaries were not changed. For the coming year, based on a survey of local public sector employers, the Board has approved a 1.0% market adjustment, plus a merit pool of 3.0% to be allocated based on employee performance. 22

28 Purchasing Coord. CATA Organizational Chart FY 2014/15 Director of Transportation Maintenance Manager Commuter Serv. Manager Facilities Supervisor Maintenance Supervisors (2) Facilities Staff (2) Maintenance Staff (19) CATA Board of Directors General Manager Director of HR / Compliance Operations Manager Payroll/ Benefits Coord. Manager of Safety and Training Lead Supervisor H.R. Assistant Operations Supervisors (3) Bus Drivers (115) Dispatchers (4) Solicitor MWN Executive Assistant / Board Liaison Director of Information Services Public Relations Manager Customer Service Supervisor IT Specialist Customer Serv. Representatives (1.5) CRPA Planner Director of Finance Accounting Coordinator PT Money Counter Accounts Payable Proc. Financial Analyst 23

29 State and Federal Funding Federal Formula Assistance MAP-21, the federal transportation authorization bill passed in 2012, increased CATA s formula funding, which is allocated mainly to the operating budget, by $600,000, to $2,560,000. The new federal bill also promised annual increases of 1.0%, subject to the appropriations process, and so far MAP-21 has lived up to expectations. In fact, for the current fiscal year CATA received an increase of approximately 3.0%. However, the law will expire at the end of September, and at this point there is no indication what the next transportation authorization bill will look like. Many observers of Congress expect that the reauthorization of MAP-21 will stretch on beyond its expiration date, which would then mean one or more continuing resolutions. As a result, to be conservative, CATA s fiveyear projections show no growth in federal formula assistance. Federal Discretionary Funding Federal discretionary capital funding, often referred to as the Bus and Bus Facility program, was eliminated in MAP-21. The funding level was reduced by half, and the remaining amount was formularized and allocated to the states rather than to individual transit systems. This has been a crushing blow to small transit operators like CATA, because this was the major funding source for bus replacements. Likewise, the JARC (Job Access Reverse Commute) funding that CATA had used regularly to fund vanpool vans was rolled into the overall formula program. The result has been that the federal discretionary capital program has essentially disappeared, and with it CATA s opportunity to work with our Congressional delegation, or the staff at the Federal Transit Administration, to secure grant funding. Consequently, future projections show no funding available from this quarter. State Operating Assistance Over the past several years, as the state s economy has continued to recover, the catch-up provision of Act 44 has been yielding additional operating assistance for CATA. In the current year our state funding has grown by 18%, to $4,420,000. However, the recently passed Act 89 modifies the way that the allocation formula operates, with the effect that there is less money available to help historically under-funded systems like CATA to catch up to our better-funded counterparts. Fortunately, there appears to be some flexibility in the new Act, which may mean that over time CATA will gradually be able to catch up on operating assistance. Expecting that there will continue to be some amount of growth in the operating assistance program, but not at the level of the last several years, a 5.0% increase has been programmed into future projections. 24

30 State Capital Assistance Act 89 eliminated the formula capital program that was generating in excess of $1,000,000 annually for CATA, but replaced it with a much more robust program of discretionary capital funding. As a result, between Act 89 and the recently-passed state capital bond bill, PennDOT now has the ability to award discretionary capital grants. At this point everything is so new it s hard to ascertain how much capital funding will be made available to small urban and rural transit systems, but early indications are that it will be substantial. In fact, CATA has been told that the $20 million requested for our facility expansion project can be accommodated over a multi-year period. The two unknowns at this time are whether the commitment of such a large amount to CATA will preclude additional funding for bus replacement, and how transit systems are expected to fund routine capital needs, such as computers and other office equipment. 25

31 Fares, Token Prices and Pass Rates Revenues and Local Support It has been more than three years since CATA raised CATABUS fares. Last year the staff recommended moving the Shared Ride general public fare from $16.65 to $20.00, which moved the senior fare to $3.00, and the Board concurred with that recommendation. The reason for the increase was two-fold: First, it allowed CATA to capture substantially more PennDOT support (the Lottery program covers 85% of the fare, while seniors pay 15%), and, second, it brought the senior fare up to the level already being charged for persons with disabilities. 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. This year, the staff has recommended moving the CATABUS fare to $1.75, and moving all pass and token prices up accordingly. Following CATA s public hearing in February, the Board concurred with this recommendation. Although the American s with Disabilities Act allows for transit systems to charge up to double the regular fixed route fare for complementary paratransit for persons with disabilities, the staff has not recommended increasing that fare this year to keep parity with the senior Shared Ride fare. Penn State This budget slightly adjusts Blue and White LOOP service in response to changing ridership trends, and retains a provision for additional service hours for situations where extremely heavy ridership demands that we run additional trips. It also anticipates 3.5% increases in the hourly rate that Penn State pays for the LOOP/LINK and the fixed amount that the University pays to support CATACOMMUTE, but maintains the current rate for Ride for Five passes. Penn State is considering an expansion of the Ride for Five pass program also at the current cost per pass. Data on any higher utilization on will be gathered over the next year, so the effect of this expansion is not known at this time. 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 Over the past several years CATA has gradually been moving all of our apartment complex contracts from a flat fee, negotiated in advance, to per-ride pricing, in which we bill each complex for the actual number of rides taken. This has not been an overnight process, because of the staggered expiration dates of each of the contracts. Last year we reached the milestone of having all contracts moved to the per-ride rate. This year, all of the contracts will also move to the same per-ride rate across the 26

32 program. As a result of the change-over for the remaining complexes, an increase in the overall rates, and continued ridership growth, revenue from the apartment complexes is expected to increase 6.1% over mid-year projections for FY 2013/14. As will be discussed later in the service planning section of this chapter, CATA added service mid-year during the current fiscal year. As a result, changes this fall should be minimal, but a full year of growth due to these changes has been calculated in the increase. Local Shares Operating In this year s budget, CATA has requested a 3.0% increase in local shares. Please recall, though, that through the calculations of the Miller Formula based on metrics such as miles operated, productivity, etc. the municipalities and the University s individual shares change relative to one another, resulting in percentages that may be more or less than that amount. Although this year saw the passage of a new state funding bill in Act 89, requirements for a 15% local match on state operating assistance have not changed. Transit systems like CATA, whose local shares have historically been below 15%, are allowed to reach that level gradually the maximum annual local share increase that PennDOT can require is 5.0%. At the present time CATA is only $16,260, or 3.26%, above the minimum required local match, so increasing our local share by 5.0% each year keeps us from falling any closer to the absolute minimum. However, with an increased local capital share required for our facility expansion project, we have requested a smaller 3.0% increase in local operating shares. Over the past four years, CATA has made some major service changes including serving different corridors with different routes, cutting route segments where performance was low, and adding service to meet new demands. As a result, this year CATA revisited the regional factors contained in the Miller Formula to better match new route alignments and regional destinations served. CATA is considering taking this process on annually to better match service changes with the Miller Formula calculations. CATA has also made a change this year in how Private/Public Partnerships (PPPs) are allocated in the Miller Formula. For the past decade or longer, whenever a municipality collected PPP funds, the Miller Formula has allocated those dollars to all municipalities through which the supported route traveled. For example, if Harris Township collects $4,500 from Tussey Mountain, the formula distributes the benefits of that agreement to College Township and State College Borough as well as Harris. At the time the PPPs were first incorporated into the Miller Formula, the thinking was that if a municipality collects money to support the cost of the particular route, the benefit should extend to all entities supporting the route. This concept works well in the case of additional trips on an existing route. However, more often the PPP funds are used 27

33 to support route extensions that don t have an impact on the other municipalities along the established route. This year, service changes made to accommodate new student housing complexes would cause large percentage increases for some municipalities, while the others would see major reductions. Many of the municipalities collecting PPP funds were also the communities seeing the largest increases. By making the move now to assign the benefit of the PPP to the municipality that collects it acts to smooth out those spikes. Capital Last year, CATA embarked on a four-year process of gradually increasing capital share in order to match funds from a $12.3 million federal State of Good Repair grant, and an additional $20 million in state funds for our facility project described later in this chapter. As a result, CATA is requesting capital local match in the amount of $100,000 for the current fiscal year, and increasing that amount by an additional $25,000 for the next three years in order to draw down these funds. It is expected that at the end of the facility project, rates will drop back to the FY 2012/13 rate. This request is consistent with the approach adopted in 2002 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. That concept had allowed CATA to cover the required local match for every capital project, and still accumulate in excess of $300,000. However, going forward the local match for the $32 million in state and federal funding that has been committed for CATA s Facility Expansion project will require the staged increase in local contributions. 28

34 Capital Projects Facility Expansion Back in , CATA constructed its current facility at the corner of Research Drive and Whitehall Road. The facility was designed to maintain and store foot buses that were each 96-inches wide. CATA currently has a fleet of 71 buses that are predominantly 40-feet long and 102-inches wide. CATA s overgrowth has impacted operating efficiency across the board. Buses are moved multiple times during the night in order to clean and fuel the fleet. Additionally, the maintenance staff has been moved to three shifts because adequate repair space is not available. Travel lanes have been turned into work bays with the use of portable lifts, and buses now back out of the bays into bus traffic flow causing safety concerns. Parts are stored in various locations across the facility forcing mechanics to gather parts from various locations around the building. Even with CATA reverting a small conference space and a storage room into offices, in some cases offices are being shared by two and three employees. In 2010, CATA started work on the design and engineering of a new facility on the site of our current operation. We were fortunate in securing a $12.3 million federal State of Good Repair grant, and an additional $20 million from the state. Early in the project the team identified two interim projects that have been completed. Our natural gas detection system was well beyond its useful life, and the system had become obsolete. Parts for repairs were no longer available. The project architects designed and procured a system that could be sized for the expansion. As a result, this system will be used in the expanded bus storage facility eliminating loss of investment. A temporary outside bus parking lot was also constructed to bridge the gap until we could put together funding to expand our facility, the storm water treatment for the future facility was done underground at the time the temporary lot was constructed. The building construction is scheduled to go to bid this summer, with groundbreaking in the fall. The work will be staged in a manner that allows CATA to keep all of the buses and maintenance on site through construction, as well as most of our employees. Only the administrative employees will be relocated. The first stage calls for the demolition of the current administrative building to make way for the construction of a parking structure with operations functions on the bottom floor. CATA s drivers and dispatch will be relocated on the property during this stage. This stage will take approximately 10 months. Once completed all operations employees will be relocated to the new structure, as will all vehicles other than buses. In the next stage of construction, the current employee parking lot will be removed and a three story maintenance and administration building will be built in its place. This stage is expected to take approximately 12 months. Once this stage is complete, all maintenance functions will be moved to the new building, and the administrative employees will also return. In the final stage, the internal walls of the current bus storage facility will be taken down, and the building expanded to house 96 buses. Architect renderings of the facility are located at the end of this chapter. The total project is expected to take 31 months from start to finish. 29

35 Fleet Planning Over the last three years, CATA has been working to reduce the average age of its fleet. The Federal Transit Administration has set 12 years as the useful life of a full-sized transit bus. Research shows that by the age of 12, the cost to maintain the bus rises exponentially. Using that logic, the ideal fleet plan would add and remove buses in a manner that kept an average fleet age of six years. Three years ago CATA s average fleet age was 13. CATA has developed a fleet plan aiming at replacing buses before they reach 18 years of age. We have aggressively pursued funding that has resulted in the purchase of 30 new 40-foot coaches and five 26-passenger cut-a-ways to be used on routes with lower ridership. However, we still have a major fleet issue that must be corrected prior to the summer of Prior to 2004, CNG-powered coaches had tanks that were certified for 15 years. Several years ago, a number of our oldest buses went through a refurbishment that included new CNG tanks. As those older buses were retired, their newer tanks were transferred to our oldest buses to allow us additional years to find the funds to replace the buses before the tanks expired. Our time is running out. Ten of those buses, vintage 1996 and 1997, remain. The tanks on those buses will begin to expire in We must find the funds to replace them, or we will be forced to put $40,000 in tanks on nearly 20-year-old buses to meet our current service levels. To make matters worse, the frames on these buses are also showing severe corrosion. CATA has ten options left on its current contract with New Flyer Industries. We are pursuing the funds to purchase those buses before the contract ends and the tanks expire. 30