Regional Transit Authority of Southeast Michigan Annual Operating Budget and Work Program Fiscal Year Ending: September 30, 2015.

Transcription

1 Regional Transit Authority of Southeast Michigan Annual Operating and Work Program Fiscal Year Ending: September 30, 2015 November 2014

2 Regional Transit Authority of Southeast Michigan Fiscal Year: October 1, September 30, 2015 Abstract: This document summarizes RTA's proposed budget and work program for the Fiscal Year ending September 30, Revenues expenditures and descriptions of major activities are included. Staff positions, one time start up costs, and federal grant dollars are also contained within this document. Permission is granted to cite portions of this publication with proper attribution. The source attribution must be "Regional Transit Authority of Southeast Michigan." Subsequently "RTA" is sufficient. Reprinting in any form must include the publication's full title page. RTA documents and information are available in a variety of formats. Contact RTA Information Services to discuss your format needs. RTA Information Services 1001 Woodward Avenue, Suite 1400 Detroit, MI info@rtasoutheastmichigan.org (313)

3 Table of Contents: Abstract Table Of Contents: Letter to Board Organizational Information Mission and Vision Statements Board Members Operating Overview Assumptions Worksheet Operating Expense Comparison Operating Narrative Grants Monthly Projections Treasurer's Report Template Appendices: A: RTA Work Program Elements B: RTA Organizational Chart

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5 Organizational Description The RTA was created by Public Act No. 387 of Its 10-member board is appointed for three year terms by the county executives of Wayne, Oakland and Macomb counties, the chair of the Washtenaw County Board of Commissioners, the Mayor of Detroit, and the Governor of Michigan. The Governor's appointee serves as chair and without a vote. The purpose of the RTA is to plan for and coordinate public transportation in the four-county region, including the City of Detroit, and to deliver rapid transit in a region where none exists. It is the entity through which transit providers must apply for state and federal funds, and through which those funds are allocated to providers. The RTA is also responsible for developing a Regional Master Transit Plan to guide present and future service and is empowered to put funding questions on the ballot for public vote. DRAFT Mission Statement The Regional Transit Authority of Southeast Michigan's mission is to manage and secure transportation resources that significantly enhance mobility options, to improve quality of life for the residents and to increase economic viability for the region. DRAFT Vision Statement We envision a region with sufficient and secure funding to support enhanced public transportation options that will ensure accessibility, satisfy the integrated mobility needs of the community, and promote livable, healthy, and sustainable growth.

6 Regional Transit Authority of Southeast Michigan Board of Directors Paul Hillegonds, Chairman of the Board Governor Representative Executive and Policy Committee Chair Alma Wheeler Smith, Providers Advisory Council Liaison Washtenaw County Representative Elisabeth Gerber, Ph.D., Vice Chair, CAC Liaison Professor of Public Policy, University of Michigan Washtenaw County Representative Mary Lisa Franklin, Citizens Advisory Council Liaison President, Warriors on Wheels City of Detroit Representative Mark Gaffney, Board Secretary Teamsters Local 214 Wayne County Representative Dr. Curtis L. Ivery, Board Treasurer Chancellor, Wayne County Community College District Wayne County Representative Oakland County Representative Vacancy Roy Rose, Planning and Service Coordination Committee Chair President and CEO of Anderson, Eckstein and Westrick, Inc. Macomb County Representative Donald Morandini, Providers Advisory Council Liaison Tim Soave, Finance and Committee Chair Adjunct Faculty, Macomb Community College, Director of Finance, Older Person's Commission of Macomb County Representative Rochester Hills, Rochester, and Oakland Township Oakland County Representative

7 RTA Operating Revenue FY2015 Proposed FY2016 Projection Variance % Change FY2017 Projection Beginning Balance 571, ,371 (348,010) -61% 196,081 Federal Revenue (Administration) 259, ,000 16,800 6% - State Match (Administration) 64,800 55,200 (9,600) -15% - State Revenue* 900,000 1,100, ,000 22% - Other Revenue/Contributions 100, , , % 200,000 Total Revenue 1,895,381 1,854,571 (40,810) -2% 396,081 Expenditures Salary* 571, , , % 643,633 Fringe 257, ,506 58, % 321,817 Worker's Compensation Insurance 980 1, % 1,400 Administrative Contracts 473, ,600 (80,500) -17% 213,900 Marketing/Printed Materials 200, ,000 (50,000) -25% 100,000 Rent 20,000 42,000 22, % 42,000 Hardware/Software* 20,000 10,000 (10,000) -50% 7,500 Phone Equipment* 2,500 1,000 (1,500) -60% 1,000 Phone and Internet Service Fees 5,780 6, % 5,033 Supplies 5,000 3,000 (2,000) -40% 2,500 Utilities 1,200 3,600 2, % 3,600 Furniture* 15,000 2,000 (13,000) -87% 1,500 Meetings/Retreats 40,000 40,000-0% 40,000 Travel/Professional Development 35,000 35,000-0% 35,000 Subscriptions/Memberships 10,000 10,000-0% 10,000 Board Compensation 15,000 15,000-0% 15,000 Total Expenditures 1,672,010 1,658,491 (13,519) -1% 1,443,883 Ending Balance 223, ,081 (1,047,802) *State Revenue in FY15 was appropriated in FY14 and is reflected in FY15, the actual year of expenditure. *State Revenue in FY16 has been appropriated in FY15 and is reflected in FY16, which will be the actual year of expenditure.

8 RTA Assumptions Worksheet Fiscal Years Defined Year 1 FY /1/14-9/30/15 Year 2 FY /1/15-9/30/16 Year 3 FY /1/16-9/30/17 Staffing % of Full Time Staff 5 Fringe 50% BLS/CPI 2.0% FY15 FY16 FY17 Part Time Staff/Interns 2 Fringe 0 BLS/CPI 2.0% 55% 57% 67% Total Staff 7 * - 7% of Federal Contracts will support staffing, specifically, Grants Administration in Years 1 and 2. FY17 assumes no Federal grant administration staff support. *BLS/CPI, Bureau of Labor Statistics and Consumer Price Index report that annual salary increases for government workers is 2% Federal Contracts Staffing Federal Grants Administration % of Administrative Year 1 Expenditure 54% FY15 FY16 FY17 Year 2 Expenditure 46% 19% 20% 0% * - It is anticipated that just over half of the planning work will be completed in the first 8 months, ending FY15. The remaining work will be completed in FY16 (May 2016). 15 month timeline. * - Woodward NEPA study, it is expected, will achieve 80% completion in FY15 and the remaining work will be completed in early FY16 (by December 2015). Admin. Contract % of Administrative Contracts FY15 FY16 FY17 D&O Liability Insurance 1.20% 1.21% 1.52% Legal 4.49% 4.52% 3.46% PEO/Human Resources 0.18% 0.18% 0.21% Accounting Services 0.90% 0.60% 0.69% Financial Audit 0.90% 0.90% 1.04% Web Development/Content Management 0.75% 0.15% 0.17% Communications 2.99% 3.01% 3.46% Public Education Initiatives 5.98% 12.06% 3.46% User Satisfaction Survey 8.97% 0.00% 0.00% Information Technology Support 0.45% 1.03% 0.79% Other Contract 1.50% 1.51% 1.73% Total 28.30% 23.67% 14.81%

9 Regional Transit Authority of Southeast Michigan FY 2015 Operating Expense Comparison FY 2014 Approved FY2015 Proposed Change % Change Salary* 481, ,367 89,867 19% Fringe 224, ,083 33,083 15% Worker's Compensation Insurance % Total Compensation 705, , ,930 18% Administrative Contracts 74, , , % Marketing/Printed Materials - 200, , % Rent 40,000 20,000 (20,000) -50% Hardware/Software* 19,740 20, % Phone Equipment* 2,700 2,500 (200) -7% Phone and Internet Service Fees 2,700 5,780 3, % Supplies - 5,000 5, % Utilities 3,600 1,200 (2,400) -67% Furniture* 14,000 15,000 1,000 7% Meetings/Retreats - 40,000 40, % Travel/Professional Development 20,000 35,000 15,000 75% Subscriptions/Memberships 10,000 10,000-0% Board Compensation 14,676 15, % Total Expenditures 907,416 1,672, ,594

10 Regional Transit Authority of Southeast Michigan Operating Narrative Fiscal Year 2015 The purpose of the budget narrative is meant to expand the information provided in the budget spreadsheet by explaining how the budget cost elements are necessary to implement project objectives and accomplish the results. The budget narrative is a tool to help the Board of Directors and key stakeholders fully understand the budgetary needs of the organization and is an opportunity to provide descriptive information about the costs beyond the constraints of the budget template. Together, the budget narrative and budget spreadsheets should provide a complete financial and qualitative description that supports the proposed budget. Revenue: The Operating Revenue for FY15 includes carryover funding of $571,381 from FY14. The RTA did not employ full time staff in FY14. Beginning FY15, the RTA began payroll activity for staffing operations and has begun work in earnest. The RTA Operations revenue consist of State Revenue, Charitable Contributions, seven percent of administrative fees from a Federal Transit Administration Planning Grant, and State Match funding to support the FTA grant. The total revenue in FY15 is $1,877,376. Please note that the RTA has no cash on hand. Once the system of accounts has been established, the Michigan Department of Transportation will novate their grant funding from SEMCOG to the RTA and release cash in advance to satisfy approximately four months of funding, which will continue quarterly over the life of the appropriation. Expenses: As of November, 2014, RTA has identified additional operating expenses totaling $764,594 over FY14. These additional costs are illustrated on the Expense Comparison Worksheet and explained in further detail below. The comparison highlights differences in the approved FY14 budget relative to the FY15 proposed budget. Total expenses for FY15 are $1,672,010. TOTAL COMPENSATION Total Compensation increased by 18%. The salaries and fringe benefits were adjusted to reflect more accurately the job descriptions identified in the staffing plan. Median salaries were researched resulting in the increases over FY14. The Fringe benefits will cover health care costs, vacation and paid holidays, and retirement contributions. Until the RTA is staffed with 5 full time employees, it is not possible to sign up for a group health insurance plan. As such, exact costs are to be determined. Various fringe benefit options are being evaluated. The RTA will pursue a 50% fringe rate, consistent with MDOT and SEMCOG and will not exceed this rate. ADMINISTRATIVE CONTRACTS Administrative Contracts increased by 535%. During FY14, there was limited need for letting administrative contracts. Primarily, administrative contracts in FY14 were related to legal expenses associated with building institutional capacity to run the organization and securing Directors and Officers liability insurance. Beginning FY15, many of the non-core operations of the RTA will be contract services such as; Accounting, Human Resources (ASO), Web Development and Content Management, Communications, Information Technology, Public Education Initiatives, and Financial Audit.

11 MARKETING/PRINTED MATERIALS The Marketing and Printed Materials budget increased by 100%. The RTA did not incur expenses in this category during FY14. The production of the Regional Map will increase this cost category substantially. The RTA will seek to partner with organizations that are willing to share in this expense to realize potential cost savings RENT The RTA is temporarily housed in the SEMCOG office space. It is anticipated that the RTA will find a permanent office location by the end of the Fiscal Year. Costs were calculated to account for four months of rental and utility expenses. MEETINGS/RETREATS The Meetings and Retreats budget increased by 100%. This line item did not appear in the FY14 budget. SEMCOG has covered many of the costs for meeting expenses on behalf of the RTA. These costs include accommodations for items such as food, interpreters to meet ADA requirements, rental space (public meetings), and parking fees associated with RTA business. TRAVEL/PROFESSIONAL DEVELOPMENT The Travel and Professional Development budget increased by 75%. The RTA is required to meet federal and state requirements, coordinate existing services, and provide compelling evidence to the public to support a dedicated funding mechanism for an enhanced public transportation system. RTA management believes that a staff of five individuals should have equal access to professional development opportunities to become and continue to be subject matter experts, which will be critical to ensure the RTA's success. Summary: The RTA has adopted a long term planning approach and has developed a forecast through Fiscal Year We have identified a budget deficit of $1.1 million in FY17. In order to minimize that shortfall, the RTA will continuously seek spending reductions over the next two years. The RTA is currently exploring additional sources of potential revenue to ensure uninterrupted operations for the organization. The RTA legislation and the Master Agreement allow the Authority to capture up to a 1% share of the Local Bus Operating (LBO) Funds for oversight and coordination of services for the public transit agencies. The RTA is committed to exhausting all other funding possibilities before exercising the LBO option. We are optimistic that our ballot proposal will be successful, but the RTA will begin working with the transit agencies now to ensure they are prepared for the possibility of a 1% reduction in their LBO funding in FY17. Our primary goal is to secure a source of dedicated funding that will ultimately benefit all of public transportation.

12 RTA Federal Grant FY2015 Proposed FY2016 Projection FY2017 Projection Federal Planning Grant Funding Federal Revenue 3,336,400 3,163,600 - State Match 834, ,900 - Total Revenue 4,170,500 3,954,500 - Expenditures Woodward EA 200,000 50,000 - Michigan AA 1,242,000 1,058,000 - Gratiot AA 1,026, ,000 - Regional Plan*(TBD) 1,026, ,000 - M-59 AA (TBD) 352, ,500 - Grants Administration* 324, ,000 - Total Expenditure 4,170,500 3,954,500 - Remaining *7% of the Grants Allocated to the Administrative totaling $600,000 in staff support over two years for the $6.5 million FTA award

13 Regional Transit Authority As created under Public Act 387 of 2012 RTA BOARD Treasurer's Report Report for the month of: October 2014 CHAIR Paul Hillegonds Beginning Balance FY 15 $ 571, VICE CHAIR Elisabeth Gerber SECRETARY Mark Gaffney TREASURER Dr. Curtis Ivery Jean Chamberlain Mary Lisa Franklin Don Morandini Roy Rose Alma Wheeler Smith Timothy Soave REVENUES Monthly YTD Remaining Beginning Balance FY , ,381 Federal Grants (Administration) , ,200 State Match (Administration) ,800 64,800 State Revenue , ,000 Other , ,000 TOTAL REVENUE: - - 1,895,381 1,895,381 EXPENSES: Salary Fringe Total Compensation Administrative Contracts D&O Liability Insurance Legal Monthly YTD Remaining 4,808 4, , ,559 1,577 1, , ,486 6,385 6, , ,045 20,000 20,000 10,488 10,488 75,000 64,513 3,000 3,000 ASO Accounting Services 15,000 15,000 Audit 15,000 15,000 Website 12,500 12,500 Communications 50,000 50,000 Public Education Initiatives 100, ,000 User Satisfaction Survey 150, ,000 IT Support 7,600 7,600 Other Contract 25,000 25,000 Total Administrative Contracts 10,488 10, , ,613 Marketing/Printed Materials* 200, ,000 Rent Hardware/Software Phone Equipment 20,000 20,000 20,000 20,000 2,500 2, ,780 5,724 Phone and Internet Service Fees Supplies 5,000 5,000 Utilities 1,200 1,200 Furniture 15,000 15,000 Meetings/Retreats 1,183 1,183 40,000 38,817 Travel/Professional Development 35,000 35,000 Subscriptions/Memberships 10,000 10,000 Board Compensation ,000 14,428 TOTAL EXPENSES: 18,684 18,684 1,672,010 1,653,326 Treasurer's Signature: Dr. Curtis L. Ivery * Future obligation - Maps - $24,253

14 Appendix A: Regional Transit Authority of Southeast Michigan Fiscal Year 2015: Work Program Categories The purpose of this document is to identify critical tasks necessary to accomplish the work of the organization during its first year of staffed operations. Development of a Culture of Inclusion and Transparency Office Management and Regulatory Compliance Regional Transit Plan Woodward Avenue NEPA study Gratiot Avenue Corridor Planning Study Michigan Avenue Corridor Planning Study M-59 Corridor Planning Study Public Education Initiative User Satisfaction Survey 5310 Paratransit Funding Allocation Coordination of Existing Services FTA Triennial Review Preparation Board and Committee Monthly Meetings (Preparation: pre and post) Stakeholder Meetings and Public Engagement Website Development and Content Management Development and Management of Accounting Systems Strategic Planning: Ballot Proposal Revision and Implementation of Master Agreement Review of all State and Federal Grant Applications from Public Transit Providers PAC and CAC Relationship Building

15 Appendix B: Regional Transit Authority of Southeast Michigan: Organizational Chart Board of Directors Chairman of the Board Chief Executive Officer Executive Administrative Assistant/Board Clerk and Office Manager Legal Counsel Deputy CEO Chief Operating Officer Regulatory Compliance/ Civil Rights Information Technology/Web Human Resources Manager of Financial Analysis and Planning Community Outreach Manager Communications Accounting Contract:TBD Contract: ASO Staff: Planning Intern Staff: Outreach Intern Contract: Vendor TBD Contract: Vendor TBD