Transit Agency Status FY Current Financial Position: FR=$48,961 surplus as of 8/31/11 SR= $30,446 surplus as of 8/31/11 Current Operations= $233,000/month FR $140,000/month SR Based upon JUL/AUG BUDVAR 11 1

Service Statistics/Trends: Several methods are used- 1) Board packet AUG, 2011, 2)Monthly Stats xls since 03/04, and 3) Executive Directors Report (10/11 YTD & 11/12 YTD) 4) Committee Reviews (Finance, Operations, HR, Compliance, Marketing) Funding Statistics/Trends: Major Funding by Program 5311/ 1513/ Local/ Lottery/ PWD/ MATP 2

Operating Comparison FY10/ PennDOT Operating Comparison 3

Other Information/Assumptions Capital Status Review- 1. Building Expansion Phase II- Completed 6/30/11 2. Roof Replacement/Refurb.- Completed 6/30/11 3. Facility Enhancement/Furnishings- $11,026 bal. 4. Narrow Band Radio Upgrade- $145,000 12/31/11 5. Shared Ride Replacement Buses- 12/31/11 6. Three High Top Vans- 12/31/11 7. Vehicle Refurbishment- 3/31/12 8. LDP, Feasibility Plan 9. Feasibility Study 4

Managers Meetings are held twice a month for the purpose of keeping all management level employees informed on a variety of issues. An example of the most recent meeting notes shows how communication is shared. Managers Meetings have been held the 2 nd Thursday and 4 th Wednesday of each month since

Current Financial Position: Reserves (Per Audit FY2010/2011): SourceBalance PTAF0.00 ASG0.00 BSG0.00 Section 1513$708,124 Local0.00 Other$49,605 Deferred Revenue 6

Current Financial Position: Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing) Name of Financial Institution Amount of Available Credit Interest Rate Current Credit in Use ESSA (East Stroudsburg Savings and Loan) $300,0004%None 7

Current Financial Position: Accounts Payable – Past due 90 days and over Accounts Receivable – Past due 90 days and over VendorAmount Past DueEstimated Pay Date None Program/AgencyAmount Past Due Date Requisitioned Estimated Pay Date None 8

Current Operations: Staffing Level: 67.5FTE as of September, 2011 IT Consultant (12 hrs/week= $1,600/month contract runs through 12/31/11 with a one year extension option) Fuel: Reimer Brothers 2/15/10- 2/14/11 with on year option to 2/13/ per gallon Unleaded or Diesel (Macungie Tank-Wagon $2.0107) Unleaded, 60,000 gallons/yr: $ as of 7/21/11 Diesel, 150,000 gallons/yr: $ as of 7/22/11 Fares: SR Fare increase 11% May 1, 2011 FR waiting to be tied into Farebox Upgrade Project- *Rich 9

Contract Provisions: Highlights from the most recent ATU negotiations Healthcare: Geisinger HRA $ Pension: AIG Valic Three Year Trend: (7%) FY08/09= $121,195 (7%) FY09/10= $153,974 (5%) FY10/11= $ 87,591* Contract Negotiated item 10

Other major factors producing cost increases above inflation: Upgrade to geothermal technology- currently uncertain of it’s ROI, electric and heating oil Cost Savings Initiatives: FR= 1) No Sundays eff. Sep, 2010, 2) Orange Route 6:30pm last drop-off; saving approximately 2 hrs/day Mon-Fri, 3) Discontinued Sanofi service, 4) Removed Stroud Mall driver ‘deadhead’ time by interlining Blue/Red route services/ SR= Fare Increase May 1, 2011, 2) coordination with AAA regarding absorption of Senior co-pay increase so no increase was passed on to the senior, 3) Streamlining Loop Service days (ie: reducing 3 days to 2) 11

Cost containment Highlights: 1) Overtime based on 24 hours/40 hours worked 2) 7% Pension contribution reduced to 5% 3) Medical Opt-Out reduced from $290/month to $250/month 4) Probationary period extended from 60 working days to 90 working days 5) New Hire Wage Progression extended from 36 months to 44 months/beginning at 75% of rate not 85% 6 ) Worker’s Compensation- reduction since departure from SAFTI & 5% rebate from state due to in-house Safety Program (Monthly Committee/Experienced Modification Rate reduced from 1.88 in 2002 to.663 in 2011) 12

Staffing Level/Org Chart Provide a current organization chart with vacant and new positions. Include a justification for new planned positions. (We are looking to replace* [Experience Works- Rich] a PM Admin. position in Dispatch who may also perform some Scheduling duties while our Scheduler is out on maternity leave in Feb, 2012). 13

Contract Provisions Term of current union contract 7/1/ /30/2013 DriversCurrent Starting wage (Common Pool) FR= $12.75 SR= $9.69FR= $13.07 SR= $9.93 Top wageFR= $17 SR= $12.92FR= $17.43 $13.24 Average wageFR= $17.00 SR= 11.72FR= $17.43 SR= $11.92 Contract wage increase2%2.5% Job ClassificationNumber- Full TimeNumber-Part Time DriversFR= 15 SR=9FR= 7 SR= 11 Mechanics70 NON Contract DispatchersFT= 20 NON Contract SchedulerFT=1 NON Contract AdminFT= 15 (1 ED, 1 AED, 1 Ex. Asst, 5 Mgrs, 2 Finance, 2 HR, 1 Mx, 2 SR Cross-Trained 2 Marketing, 2 HR/Training & Driver Observer 14

Important Contract Provisions Use of part-time employees Expected to work (3) 8 hr days weekly/ common pool/ must have CDL/ 1.9% bonus quarterly in Shared Ride for drivers who meet this criteria (new this contract year) *Example: 312 hrs x $11.72= $3,656 x.019 bonus= $70 bonus Number/percent of “split shift” drivers: 1 (Toby Express) Overtime : Varied= FR usually hrs weekly, SR usually depending on driver availability and demand. Outsourcing (Taxi) MATP and Welfare to Work Programs only FY2010/2011= MATP= $121,000/ WTW= $62,000 Other: Mileage Reimbursements FY2010/2011= MATP= $130,000/ WTW= $8,000 15

Healthcare Describe any proposed changes and the estimated financial impacts. (We are currently evaluating the HRA for Deductible changes for FY2012/2013) UnionNon-Union Basic Coverage CurrentGeisinger HRA ($2000 co- payment) Same FY Pending RenewalSame Employee Contributions CurrentNone FY None Deductibles (Individual) Current$250 FY $250 16

Pension UnionNon-Union Employee Contributions CurrentNone (Employer only 5%) Same FY NoneSame Minimum Age to Qualify for Retirement Current65Same FY Same Minimum Number of Years to Qualify for Retirement CurrentN/A FY N/A Minimum Number of Years to be Vested Current<2 years= 0% 2= 20% 3= 40% 4= 60% 5= 80% 6= 100% Same FY Same 17

Pension: Describe any proposed changes and the estimated financial impacts. *See new ATU contract. Reduced 2%. 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. Accrued annually/Employer contribution only based on gross wages for qualifying employees only. Contributions by MCTA are made: 1/31, 4/30, 7/31. MCTA offers a 100% voluntary contribution plan known as a 457. This is offered to all employees who would like to put a little more away for retirement. It affords them the opportunity to have funds taken from their paycheck now, pre-taxed and as allowed by law. MCTA also offers the guidance of a Retirement specialist quarterly for employees who would like to discuss other, non company sponsored programs. 18

Fuel: (Also, see slide #9) Current Cost per Gallon Contract rate or market rate? Contract based on market plus mark-up; not a flat rate per gallon. $3.05 diesel/ $3.10 unleaded Projected Cost per Gallon and Basis for Projection Contract rate or market rate? Contract rate based on Macungie tank wagon date. Terms of contract (if applicable) One year contract with 2 nd year option. (Feb, 2012) Net 30. (In preparing our last RFP, we reviewed LANTA, Indigo and Lebanon’s contracts for peer Best Practices) 19

Fixed Route Fares: Describe fare policy Fare Type Date of Last Increase Current Amount Date of Planned Increase Amount After Planned Increase Base Fare Aug Avg. Fare (Pax Fares/TTL Trips) 1992$1.25 $1.07 7/1/2012, 13 and 14 $1.50, $1.60 and $1.75 est. Transfers.25Pending Zone Fares Flat rate only Other multi-ride tickets/passes (Add as appropriate) Sheltered Workshop, Behavioral Health (Clubhouse) Prepaid/ billed MHMR riders only. 20

Shared Ride Fares: Date of Last Fare Increase: May 1, 2011 Current Average fare $20.74 (August, 2011) Sponsorship arrangements: AAA, Salisbury House/MATP [AUG, 2011] (Clubhouse) Planned Changes Date of planned increase 2013 tentative (based on regular monitoring) Estimated average fare $22.81 (estimate based on 9.9% increase of the most recent fare increase). Sponsorship arrangements: Describe Fare Policy 21

Other Major Factors Producing Cost Increases Beyond Inflation: FactorsCurrent Amount Projected Future Amount Explanation Discontinued Sanofi Service/New National Park Service Review Rich- NPS Power Point. Revenue Decrease; reduced driver hours/wages, fuel, maintenance costs Example: Employee Retention (Add others or change as appropriate) Fuel volatility, technology’s uncertainty of what future product(s) would benefit MCTA LDP Phase II= $30,000 Development Costs have yet to be estimated. 22

Cost Savings Initiatives: InitiativeCurrent Cost Planned Action and Implementation Date Projected Savings Geisinger HRA/$342,000 FY10/11 FY11/12= Budgeted for $320,000; hoping for $270,000 (depends on the $80,000 HRA risk; estimated to use 38%= $49,600 (62%)savings; but budgeted 100%) Pending Dues/Subscriptions eliminated $17,000 (10/11) $9,000 (11/12)$8,000 Auditor$21,000 (10/11) $14,000 (11/12)$7,000 Small Tools/Equip$24,000 (10/11) $18,000 (11/12)$6,000 23

Fixed Route Funding (Worksheet for SR/Other Stats) FY FY FY FY FY Total Operating Expenses $3,198,926$3,070,506$3,177,801$3,206,543$3,239,927 Total Operating Revenue $ 635,360$ 341,227$ 399,247$ 438,743$ 482,587 Total Operating Deficit $2,563,566$2,729,279$2,778,555$2,767,800$2,757,339 Subsidies: Federal $908,394$1,331,205$1,389,278$1,348,640$1,295,949 State $1,532,243$1,276,315$1,261,429$1,201,616$1,292,313 Local $115,961$121,759$127,847$ 147,024$ 169,078 Total Funding $2,556,598$2,729,279$2,778,555$2,697,280$2,757,340 24

Fixed Route Service Statistics/Trends: Describe Any Proposed Changes Fixed RouteFY FY FY FY FY Rev. Veh. Miles515,278530,659530,000 Rev. Veh. Hours28, ,305 Passenger Trips217,153227,142237,591248,520259,952 ACT 44 PERF. MEASURES Pass. Trips/Hour Op. Cost/Hour$112.08$101.32$104.86$105.81$ Op. Rev./Hour$22.26$11.26$13.17$14.48$15.92 Op. Cost/Trip$14.73$13.52$13.38$12.90$

Shared Ride Funding FY FY FY FY FY Operating Expense$1,353,076$1,393,461$1411,703$1,444,384$1,477,657 Passenger Revenue64,03470,43073,95177,64981,531 Lottery484,267544,346571,563600,141630,148 MATP431,248495,749520,536546,563573,891 Other (Ad/Inter, AAA, PWD, Waste Mgmt) 362,908278,936286,277296,571309,899 Balance-10,619-4,00040,62476,540117,812 26

Shared Ride Statistics/Trends 27 Shared-RideFY FY FY FY FY Total Veh. Miles534,020549,414576,885570,000 Cost per Mile Total Veh. Hours21,44724,14125,34826,61527,000 Cost per Hour Total Pass. Trips60,91168,25071,66275,24579,008 Cost per Trip Rev. per TripSee attachment Trips per Hour

Other Information/Assumptions: Fixed-Route: LDP, TDP (2010) attached Shared Ride: MATP update Jump Drive: NPS Planning Power Point- Rich, Building Project photos, Featherman Wing Dedication 28

Capital Status Review Fixed-Route/Shared Ride: Decade of Needs for both FR and SR. There will be added projects- particularly as we move further into the LDP and the Township has the Public Sewer connections complete (wash bay refurbishment). MCTA generally seeks 5311 funding at 80% with the remainder using See attached pdf for detail of balances currently available (Bonds/1517)for future projects. We hope to move the work done to this point forward regarding VanPooling- this will take additional coordination to prepare grant requests/prepare a plan. We have had history in this arena since