Transit Agency Status FY Current Financial Position Current Operations Service Statistics/Trends Funding Statistics/Trends Other Information/Assumptions Capital Status Review 1

Current Financial Position: Reserves SourceBalance PTAF$ 65,935 ASG0 BSG0 Section Local$ 32,211 Other0 2

Current Financial Position: Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing) Name of Financial Institution Original Balance Date of Loan Interest Rate Balance as of 11/7/2011 Monthly Payment (15 th of month) Farmers & Merchants National Bank $ 200,0008/15/086.5%$ 81,084$ 3, Farmers & Merchants National Bank $ 200,0008/15/086%$ 135,493$ 4,000 3

Current Financial Position: Accounts Payable – Past due 90 days and over Accounts Receivable – Past due 90 days and over VendorAmount Past DuePayment Plan Byers Taxi$ 95,066Current Month + Minimum of $ 3,000 Pittsburgh North Aire Ride $ 78,843Current Month + Minimum of $ 3,000 Program/AgencyAmount Past Due Date Requisitioned Estimated Pay Date Not Applicable 4

Current Operations: Staffing Level Contract Provisions Healthcare Pension Fuel Fares Other major factors producing cost increases above inflation Cost Savings Initiatives 5

Staffing Level/Org Chart 6

Contract Provisions Term of current union contract 6/1/2010 to 6/30/2013 * Probationary wage is $1.00 above prevailing minimum wage for 60 working days ** Contract wage increase calculated at 3% across board. Contract calls for no increase, although the union reserves the right to request that wages and healthcare be revisited within 30 days of FYE annually. DriversCurrent FRSRFRSR Starting wage *$ 11.01$ 10.47$ 11.35$ Top wage$ 13.77$ 13.09$ 14.20$ Average wage$ 12.39$ 11.78$ 12.78$ Contract wage increase$ 0 ** 7

Contract Provisions Job ClassificationNumber- Full TimeNumber-Part Time Drivers142 Mechanics30 Dispatchers10 Clerical20 General Manager10 Operations Manager10 Financial Manager10 8

Important Contract Provisions Use of part-time employees Permitted by CBA Number/percent of “split shift” drivers Not explicitly addressed in CBA, Management retains right to assign work as needed Overtime Paid at time and a half after 40 hours worked Outsourcing Shared Ride Subcontractors Maintenance Vendors Other Annual CDL physical Employee contributes 3% of Insurance Benefits + first half of $2,500 Deductible 9

Healthcare Describe any proposed changes and the estimated financial impacts. PATH is SAFTI’s proposed Health Insurance. Estimated savings is in excess of $14,000 annually, excluding potential dividends. UnionNon-Union Basic Coverage Current145 FY PATH Employee Contributions Current3% FY PATH Co-Payment Current$ 2,500 FY $ 2,500 10

Pension Mid-County Transit Authority (401)k Plan John Hancock UnionNon-Union Employee Contributions Current 3% 5% 7% FY % 5% 7% Minimum Age to Qualify for Retirement Current60 FY Minimum Number of Years to Qualify for Retirement Current55 FY Minimum Number of Years to be Vested Current55 FY

Pension: Describe any proposed changes and the estimated financial impacts. Preliminary discussions regarding moving plan from John Hancock to Hartford to realize savings in management fees of approximately $ 2,500 annually. Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension. Pension is fully funded. Eligible Employees may elect to participate after 1 year of employment or 1,000 hours worked during January or July enrollment periods. Participation is not mandatory. Employee elects participation level and Employer matches up to 7%. 12

Fuel: Current Cost per Gallon Contract rate or market rate? Market Rate Weighted Average $ 3.23 Bradigan’s Kardguard primary fuel supplier Preliminary meeting with Guttman Fuel Terms of contract (if applicable) Not applicable Projected Cost per Gallon and Basis for Projection Contract rate or market rate? Market Rate Weighted Average $ 4.00 U.S. Energy Information Administration Terms of contract (if applicable) Not applicable 13

Fixed Route Fares: Provide average fare: Current Amount $1.23 Future Amount $1.26 Fare Type Date of Last Increase Current Amount Date of Planned Increase Amount After Planned Increase Base Fare 11/1/1992$ 1.00N/A Transfers 25¢N/A Zone Fares $ 1.25 $ 1.50 N/A Other multi-ride tickets/passes $ / Book N/A 14

Fixed Route Fares: Fare Policy Fares Fares are based on zones as shown in the table below. Students 12 or under ride at 1/2 fare. Children under 6 ride free when accompanied by an adult. 15 ABKCDE A Ford City/ Valley View B Manor K Kittanning C Lemon Way D Applewold/ West Kittanning E Mall/ Hospital Senior Citizen Pennsylvania Free Transit Program

Shared Ride Fares: Current Most recent Fare Increase 08/01/2010 Average fare $18.35 Sponsorship arrangements AAA 10% Medical and Center Trips 5% Bi-Weekly Shopping Trips Planned Changes Date of planned increase 07/01/2012 Estimated average fare $19.73 Sponsorship arrangements Unknown 16 Fare Policy Majority Passengers Pay/Enter Each Trip on Co-Pays Some Standing Order Trips Pay Monthly in Advance

Other Major Factors Producing Cost Increases Beyond Inflation: 17 Subcontractors Continue reduction of subcontracted trips Issue RFP for Subcontracting Services Fuel Reduce dependence on diesel vehicles with higher operating costs Maintenance Replace Opus with cutaways Achieve a higher level of fleet standardization

Cost Savings Initiatives: 18 Health Benefits SAFTI’s PATH Health Benefit Package Service Adjustments – Shared Ride Restricting trips by destination Mandate strict adherence to No-Show/Cancellation Policy Issue RFP for Subcontracting Services Fiscal Management Stricter controls on discretionary spending Implemented aggressive monitoring over all spending

Fixed Route Funding FY FY FY FY FY Total Operating Expenses $620,180 $555, , , ,275 Total Operating Revenue 43,439 61,250 67,153 73,650 78,925 Total Operating Deficit - 576, , , , ,350 Subsidies: Federal 350, , ,350 State 168, , , , ,250 Local 46,193 15,076 23,750 25,250 30,750 Total Funding $576,741$494,000$511,397$557,350$632,350 19

Fixed Route Service Statistics/Trends: Describe Any Proposed Changes Continue to monitor customer needs across service area and make adjustments accordingly. Fixed RouteFY FY FY FY FY Rev. Veh. Miles145,547146,250147, ,000 Rev. Veh. Hours10,53210,40010,50010,75011,000 Passenger Trips52,15156,00062,00065,75067,750 ACT 44 PERF. MEASURES Pass. Trips/Hour Op. Cost/Hour$58.85$53.39$55.10$58.70$64.66 Op. Rev./Hour$ 4.12$ 5.89$ 6.40$ 6.85$ 7.18 Op. Cost/Trip$11.89$ 9.92$ 9.33$ 9.60$

Shared Ride Funding FY FY FY FY FY Operating Expense $969,900$913,600$934,500$1,043,386$1,117,800 Passenger Revenue 51,02255,90065,90069,00073,750 Lottery 435,357498,304588,000618,750662,000 Third Party 155,859149,000158,400165,000172,740 Other 24,70923,06412,88112,8729,761 Total 666,947726,268825,181865,622918,251 Balance * ($302,953)($187,332)($109,319)($177,764)($199,549) 21 * Deficit funded by Act 44

Shared Ride Statistics/Trends 22 Shared-RideFY FY FY FY FY Total Veh. Miles 270,956256,000279,000295,000303,750 Cost per Mile Total Veh. Hours 13,27513,71614,25015,70016,000 Cost per Hour Total Pass. Trips 34,81045,62053,75057,00058,700 Cost per Trip Rev. per Trip Trips per Hour

Other Information/Assumptions: Adjust to meet customer needs / demands Raise organizational awareness through participation in various community organizations Fixed-Route Route Changes Yellow Line – Kittanning Cottages / YMCA Red Line – Trader Horn Career Link Implemented consistent headways and departure times Shared Ride Cultivate relationship with Partners Area Agency on Aging Armstrong County Link to Aging & Disability Resources Various Human Service Agencies Utilize active Advisory Board for Shared Ride Program 23

Capital Status Review System-Wide Master Site Plan Renovate Granary Vehicle Storage Building Fixed-Route Opus Bus Replacement Maintain / Expand Fleet Shared Ride Maintain / Expand Fleet Upgrade Scheduling Software 24

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