1. HART Board of Directors Meeting June 5, 2017
Budget Overview
HART Board of Directors Meeting
June 5, 2017

2. Budgetary Pressures for FY2018
Continued increases in personnel fringes and liability costs
Balanced FY2018 Budget
Cash Flow and Fund Balance
Bargaining Agreements
Decrease in Ridership
Increases in Cost of Doing Business
Decrease in Fund Balance since 2014 of $10,400,000
As the decline in ridership nationwide continues, our impact has been a decrease of 11% since 2014
3 year total impact of $4,971,766 for wages and benefits (FY16-FY18)

3. Tentative FY2018 Operating Revenue
Revenue Highlights
Ridership decrease of 1,200 results in less Fare/Pass revenue
8.29% increase in preliminary property valuation of $3,062,434
Increase in ad valorem dropped to Fund Balance
5307 decrease due to shifts in formula calculation and more directed to Capital projects

4. Tentative FY2018 Operating Expenses
Expenditure Highlights
Salaries include $1.9 million Collective Bargaining increase and a $160,000 “pool” for NB
Fringes reflect additional $4,000,000 for Healthcare claims
Contract service increase for Taxi Voucher program
Fuel and oil decrease due to further shifting of Fleet to CNG
Marketing and Printing being adjusted to accommodate impact of JonesWorley contract
Other administrative expenses reduction result of “scrubbing” of overhead

5. Tentative FY2018 Operating Budget Deficit
Original deficit prior to ZBB work was $13,000,000
Reduced to $8,500,000 per May Committee
Currently at $6,282,229
Does not include any adjustments based on service model changes (e.g COA or TDP)
Does not include $3,000,000 ad valorem increase
Does include elimination of non-critical vacant FTEs
Does include adjustments to budget due to proposed outsourcing of several support functions
Elimination of several accounting adjustments which historically have been budgeted (FRS, OPEB liabilities)

6. Upcoming Budget Related Events
July 17 HART Board Meeting
Setting of Not-to-Exceed Millage Rate
August 7 HART Board Meeting
Proposed FY2018 Budget presented
September Public Hearings (TBD)
Adoption of FY2018 Operating and Capital Budgets