Proposed FY2017 Budget Overview. HART Board of Directors June 6, 2016

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1 Proposed FY2017 Budget Overview HART Board of Directors June 6, 2016

2 Budget Overview The FY2017 Proposed Operating and Capital Budget is balanced at $91,581,278 $6,921,453 higher, or 8.18% more than the FY2016 Budget The FY2017 Proposed Operating Budget is $72,237,977 $4,212,498 higher, or 6.19% more than the FY2016 Budget Actually, represents over $7.5 million of additional investment The FY2017 Proposed Capital Budget is $19,343,301 $2,708,955 higher, or 16.29% more than the FY2016 Budget

3 FY2017 Budget Development Key Drivers and Assumptions Incremental growth in operating revenue Bus ridership continuing to plateau (1% growth estimated FY17) Continued ad valorem growth of 7.543% for FY17 (DOR estimate 7.9%) Additional revenue includes CNG State rebates MegaBus/Red Coach/Hidden River P&R revenue Continued stagnate growth in capital funding Slowing of community focused capital projects ATU and Teamster bargaining negotiations on going Shift to performance based compensation for NB employees 3

4 FY2017 Budget Development Key Goals Maintain current service levels Provide limited enhancements to current service based on Transit Development Plan (TDP) TDP is baseline for budget development as funding allows commitment to HART Board beginning in FY2014 budget prep Enhancements to routes during non peak service Expansion of innovative programs like First/Last Mile and Taxi Program Continued long term fiscal sustainability migration from Federal reliance for operating support over next 5 years Prepare HART for future growth Strategic investments in Community, Employees and Organization 4

5 FY2017 Operating Budget Development Investment in community Key Drivers Pursuant to the TDP s Status Quo plan 5.2% increase in service; $1.1 million of enhanced/new service; 18,500 revenue miles Third consecutive year of service enhancement FDOT partnership funding operating/capital for New Tampa Flex Route 8 30 minute frequency on Saturday Route minute frequency on Saturday/extend to 10:00 p.m. weekdays Route minute frequency on Saturday Route 46 Extend to 10:00 p.m. weekdays Route 57 Sunday service Route 572 Northdale Flex 30 minute service weekdays Route 575 New Tampa Flex Commence service Weekday and Saturday

6 FY2017 Operating Budget Development Key Drivers Investment in employees Lynda.com online training Capstone USF training program IT Certification ESMS Auditor training Roadeo Pay for Performance Investment in the organization Project Management Office (PMO) Performance Scorecard ISO Certification/ESMS 6

7 Balancing Needs with Revenues HART s FY2017 proposed budget offers the following key elements: Maintains current bus and paratransit service levels Addition of over 18,500 hours of service enhancements to 6 routes and the commencing of the new Tampa Flex route Bargaining step increases and performance bonuses (based on current contract) Non bargaining Pay For Performance Addition of new 21.5 FTEs for increased operational service levels and operational support Funding for the following additional activities for FY2017: Taxi Voucher Program and First Mile/Last Mile Parts inventory Environmental remediation Full TDP Update/Comprehensive Operations Analysis/Shelter Study Facility Assessment IT Modernization/Final Phase of Wi Fi Continued smartcard implementation Voice of the Customer surveys Nominal use of fund balance (mitigate prior to public hearings)

8 FY2017 Proposed Operating Revenues Passenger Fares $17,320,549 24% $72,237,977 Ad Valorem $36,847,650 51% Formula Grant $9,799,499 14% Other Grants $6,692,098 9% Other Revenues $1,578,181 2%

9 FY2017 Proposed Operating Revenues FY2014 FY2015 FY2016 FY2017 Year to Year Actual Actual Budget Proposed Differential Revenue Fare Revenues $ 3,671,294 $ 4,505,139 $ 4,659,140 $ 4,705,819 $ 46,680 Pass Revenues $ 12,751,865 $ 12,092,177 $ 12,542,271 $ 12,614,729 $ 72,458 Advertising Income $ 903,308 $ 1,033,518 $ 774,942 $ 755,770 $ ( 19,172 ) Interest Income $ 20,823 $ 84,466 $ 43,726 $ 84,466 $ 40,740 Other Income $ 517,016 $ 301,262 $ 562,776 $ 737,945 $ 175,169 Ad Valorem Tax Revenue $ 30,171,450 $ 32,398,547 $ 35,139,712 $ 36,847,650 $ 1,707,938 Ad Valorem Transfers $ ( 408,756 ) $ ( 80,609 ) $ ( 255,000 ) $ 0 $ 255,000 Federal Operating Grants $ 11,508,660 $ 10,726,311 $ 9,793,406 $ 9,799,499 $ 6,093 State Operating Grants $ 5,295,505 $ 4,906,810 $ 5,319,707 $ 5,691,159 $ 371,452 Local Operating Grants $ 1,058,756 $ 650,000 $ 650,000 $ 650,000 $ - Tampa Historic Streetcar, Inc. $ 215,107 $ 120,884 $ 350,939 $ 350,939 $ - Grand Total $ 65,705,028 $ 66,738,505 $ 68,025,479 $ 72,237,977 $ 4,212,498

10 FY2017 Proposed Operating Expenses Employee costs $43,095,808 60% $72,237,977 Health care $5,415,414 7% Parts and Supplies $4,755,271 7% Fuel and Fluids $5,438,375 7% Legal fees, claims, premiums $3,347,174 5% Contract/Professional Services $4,613,236 6% Other $5,572,699 8%

11 Proposed FY2017 Additional FTE s Materials Management Manager Network VOIP Administrator Talent Acquisition & Organizational Development Coordinator Labor Relations Coordinator Bi Lingual Travel Trainer Data Analyst New Tampa Flex 6 Flex Operators (ATU) Service enhancements 2.5 Flex Operators (ATU) Service enhancements 6 Bus Operators (ATU) Streetcar Master Paint and Body Technician (Teamsters) 21.5 FTE s = increase of $955K in personnel services

12 Position Breakdown ATU: Bus and Van Operators, Customer Service Reps, Mechanics, and Inventory Specialists Teamsters: Maintenance and Transportation Supervisors and Dispatchers ATU (78%) Teamsters (6%) Non Bargaining: CEO, Executive Leadership Team, Management, Professional staff and Administrative support FY2017 Proposed Increase over FY16 Positions by Unit FY2016 ATU Teamsters Non bargaining Total Positions Non bargaining (16%)

13 5-Year Operating Look Ahead Adopted Tentative Planned Planned Planned Planned FY16 FY17 FY18 FY19 FY20 FY21 Property Taxes $35,139,712 $36,847,650 $39,426,986 $41,201,200 $43,055,254 $44,992,740 Fares/Passes $17,201,411 $17,320,549 $17,666,960 $17,843,630 $18,022,066 $18,202,287 Operating Grants $6,368,387 $6,692,098 $6,692,098 $6,692,098 $6,692,098 $6,692,098 Formula $9,745,665 $9,799,499 $9,000,000 $8,000,000 $7,000,000 $6,000,000 Other $1,381,444 $1,578,181 $1,593,963 $1,609,902 $1,626,001 $1,642,261 Revenue $69,836,619 $72,237,977 $74,380,006 $75,346,830 $76,395,419 $77,529,386 Expenses $68,025,479 $72,237,977 $73,682,737 $74,419,564 $75,907,955 $77,426,114 Shortfall/Overage $1,811,140 $0 $697,270 $927,266 $487,464 $103,272 Assumptions: Ad valorem based on June 1 st preliminary Hillsborough County 7.543% growth rate; State DOR predicted 7.9% FY2018 estimated at 7% FY2019 FY2021 based on a conservative 4.5% ad valorem growth rate FY2018 FY2021 expenditure growth based on 2% TDP Status Quo service enhancements Fare revenue reflects fare increase in FY2018 (FY2012 last year of fare increase); 1% increase per year in ridership only FY2019 FY2021 Formula grant calibration from operating/preventative maintenance to Capital programming 5 Year Look Ahead represents HART s service model as it exists today (per TDP)

14 Capital Budget 14

15 Project Budget Funding Source Bus replacement $7,378,660 Surface Transportation Program Regional Fare Collection $2,831, Formula Demand Response Vehicles $1,801, Formula 21 st Avenue HM Roof Construction $1,657, Formula Streetcar Capital Maintenance $1,346, Formula Premium Transit Feasibility Study $1,000,000 FDOT IT Modernization $239, /5307 Formula Security Projects $568, Formula TDP/COA/Bus Stop Analysis $475, Formula Engine/Transmission Replacements $429, Formula Wireless Phase III (Para/Flex) $331, Formula 21 st Avenue Admin Bldg Roof $250, /5307 Formula 21 st Avenue Stormwater Assessment $117, Formula Van Maintenance Facility Study $200,000 MPO (tentative)/5307 Formula Customer Service MTC Remodel $151, /5307 Formula Transit Center Restroom Renovations $138,491 HART ad valorem Basic Transit Infrastructure $127, Formula Procurement Facility Renovation $100, Formula Operator Breakrooms $100, Formula Facility Assessment $100, Formula Total $19,343,301 15

16 Next Steps July 1 st Final property valuation Proposed Budget to Charter Jurisdictions July 18 th Board Meeting budget review and setting of Not To Exceed millage rate Sept (TBD) Public Hearings for budget adoption

17 Historic Budgets Fiscal Year Operating Capital Total % Change in annual operating budgets FY03 $33,833,000 $16,328,438 $50,161,438 FY04 $36,154,894 $15,249,374 $51,404, % FY05 $39,440,700 $18,376,804 $57,817, % FY06 $50,173,433 $15,720,795 $65,894, % FY07 $59,365,060 $13,127,660 $72,492, % FY08 $59,412,080 $16,720,590 $76,132, % FY09 $63,884,330 $59,690,740 $123,575, % FY10 $62,490,300 $85,635,460 $148,125, % FY11 $62,729,270 $77,488,520 $140,217, % FY12 $60,730,750 $40,087,692 $100,818, % FY13 $61,580,511 $43,785,649 $105,366, % FY14 $63,668,388 $22,881,766 $86,550, % FY15 $65,966,577 $18,084,813 $84,051, % FY16 $68,025,479 $16,634,336 $84,659, % FY17* $72,237,977 $19,343,301 $91,581, % *proposed