FY2018 Budget Development Preview HART Board of Directors Meeting - - PowerPoint PPT Presentation
FY2018 Budget Development Preview HART Board of Directors Meeting May 1, 2017 Budgetary Pressures for FY2018 Continued increases in Decrease in Fund Balance personnel fringes and Cash Flow since 2014 of $10,400,000 and Fund liability costs
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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 3 year total impact of $4,971,766 for wages and benefits (FY16-FY18) As the decline in ridership nationwide continues, our impact has been a decrease of 11% since 2014 Continued increases in personnel fringes and liability costs
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– Commitment to “drop to Fund Balance and not to appropriate”
– $900,000 less than projected to collect in FY2017
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– $1,954,201 contractual increase for Bargaining units – Pool for potential lump-sum increase for Non-Bargaining Pay for Performance
– $4,000,000 increase to ensure healthcare claims are properly funded – $1,000,000 increase to ensure general liability claims are properly funded
– $500,000 increase to support Taxi Voucher program (total program estimated cost of $1,000,000 for 62,500 trips; however, if services was provided internally the cost would be $2,000,000)
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– Based on actual FY2016/FY2017 spending patterns – Includes reduction in fare revenue and new expenditure increases
– Through Zero-Based Budgeting (ZBB) process, reduction of out-year capital financing payments and actual spend analysis deficit reduced to $8,550,439
– Analysis of current service model for possible route adjustments (TDP Workshop on April 25 ) – Support function business model analysis – Review of non-critical FTE vacancies – Healthcare coverage option exploration
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– Tentative FY2018 Budget presented
– Setting of Not-to-Exceed Millage Rate
– Proposed FY2018 Budget presented
– Adoption of FY2018 Operating and Capital Budgets