700 NE 2nd Street, Suite 100 • Meridian, ID 83642 • p: 208.846.8547 • f: 208.846.8564 • 1.855.345.7433

TOPIC: FY2020 Draft Preliminary Budget

DATE: May 28, 2019

Summary: Background Attached is the FY2020 draft preliminary budget. Division managers developed expense budgets through the early part of the year. The Executive Board approved the rates for the revenue requests at the April 2019 meeting. The Executive Board will review the draft budget at the June meeting. Staff will present a final preliminary budget at the July meeting for the Executive Board to consider presenting, for public comment and consideration, by the VRT Board of Directors in August. The budget presented in this packet is only for base operations to maintain existing service levels. VRT staff is working with several cities on service enhancements. These will come to the VRT Board in future meetings. VRT sent letters requesting revenues for FY2020 a few weeks ago. Rhonda Jalbert is responsible to meet with the local jurisdictions to secure commitments for the FY2020 revenues. The revenue requests for FY2020 are a 4% increase in service operations, and a 4% increase to the per capita rate. VRT staff applied this rate to all jurisdictions except the City of Boise. The financial analysis, completed by staff in FY2018, found the City of Boise is paying above their share for administration overhead for Valley Regional Transit. VRT staff is assuming a 2.5% increase in funding from the City of Boise to fund base-level services in Boise, and to cover administration expenses. FY2020 Preliminary Operations Budgets Findings Employee Compensation System

The budget assumes a 2.5% increase for the compensation pool used to make annual employee wage increases.

Wage increases are merit-based, and at the discretion of the supervisor, as long as the overall increases do not exceed the 2.5% budgeted compensation pool.

Calyx-Weaver, VRT’s third-party human resources consultant, completed a compensation review. They recommend a 6% increase to the salary schedule. The salary schedule has not increased since 2016. This 6% increase would only be applied to those employees at the minimum range in a pay level. The total impact to wages for this change is $11,271.

Division 10, Regional Overhead

Added two new departments in the FY2019 amended budget: Department 178- Fleet media, and Department 179- Mobility Collaborative. VRT funds these departments through advertising sales and public/private partners, respectively.

Overall expenses in Division 10 are 1 % over the FY2019 amended budget. This is due to decreases in wages and fringe benefits realized through attrition and reclassification of regional positions.

ITEM V

1

Division 12, Boise Greenbike

Overall expenses are up by 8%, based on the need for seasonal labor in summer months. Other operating expenses are lower in FY2020, compared to FY2019, based on a decision to cancel the order for new bikes. Sponsors provide the operating funding to support the program.

VRT is projecting increases in FY2020 revenues, which will allow the system to cover regional overhead expenses in both Divisions 10 and 20.

A more detailed analysis on the business model for Boise Greenbike is underway. The change in the business model may lead VRT to select a private vendor to operate the system. In this model, the private vendor provides the equipment and operates the service directly.

Division 20, Information Supports and Specialized Transportation

Staff projects customer service/Help Desk expenses to be 1% higher in FY2020 than FY2019.

The funding for the Lyft Connections to Transit and the VRT Late Night services are shown in the FY2019 budget. There is enough funding available to cover FY2020, so these funds will carry-forward to next year. This reduces the Specialized Transportation expenses in FY2020. Private and public partners cover all the operational expenses for Specialized Transportation projects, including administrative overhead and vehicle depreciation for vehicles in the Shared Vehicle Pool.

Division 21, Boise Fixed-route, and Division 22, Boise ADA Paratransit

The First Transit General Manager changed the allocation for administration expenses between the two divisions in FY2020 based on revenue hours for each division. The two combined divisions project a 1% increase in the overall budget compared to FY2019.

Division 21 includes increases in maintenance expenses and condominium expenses for Main Street Station.

Directly generated projections show the anticipated revenue based on the proposed fare increase. Advertising revenues show the projections based on VRT selling advertising assets in-house.

Division 23, Program Administration and Planning Support

The draft FY2020 preliminary budget does not include capital or sub-recipient projects. This makes the year-to-year change appear more significant. Those projects will be included in the final preliminary budget. The budget reduction, year-to-year, is 27% when accounting for this. The reduction is due to savings in direct labor costs and fewer anticipated special planning projects in FY2020.

Division 24, Canyon Fixed-route, Division 25, Canyon ADA Paratransit, Division 31, Inter-county

The comparison to the FY2019 amended budget reflects the service reductions that went into effect in January 2019.

Wages and fringe benefits increased in FY2020 from FY2019 based on negotiated wages and anticipated increases in medical expenses.

ITEM V

2

ADA paratransit expenses are down by 27% from FY2019 based on projections of fewer service hours.

The First Transit General Manager updated the allocations between the divisions. The overall change to the three divisions from FY2019 to FY2020 shows a 0.4% increase, overall.

Directly generated projections show the anticipated revenue based on the proposed fare increase. Advertising revenues show the projections based on VRT selling advertising assets in-house.

Staff Recommendation/Request: This item is for information only. The final preliminary budget will be presented in July. The final preliminary budget will include operations, capital and sub-recipient projects for FY2020. There will be a year-to-year comparison of both revenues and expenditures for each division as well. Implication (policy and/or financial): VRT staff has been working over the last year to identify reductions in administration overhead. Divisions 10, 20, and 23 show the highest reduction in administrative overhead. More Information: Kelli Badesheim, Executive Director, 208.258.2712, kbadesheim@valleyregionaltransit.org Attachments Table 1 – Expense Summary and Fiscal Year Comparison Table 2 – Revenue Summary Table 3 – Local Allocation by Division

ITEM V

3

Sum of FY2019 Balanced Amounts

Row Labels 2019 2020 %Diff 2019 2020 %Diff 2019 2020 %Diff 2019 2020 %Diff 2019 2020

Revenues by Roll-up

10 12 20 21 22

Expenses by Roll-up

LABOR SALARIES/WAGES (501) 804,178$ 802,758$ 0% 127,966$ 130,239$ 2% 374,997$ 388,126$ 4% 2,949,532$ 2,927,601$ -1% 665,850$ 892,456$

FRINGE BENEFITS (502) 562,313$ 569,605$ 1% 65,778$ 84,583$ 29% 228,542$ 310,843$ 36% 2,601,565$ 2,156,516$ -17% 606,170$ 727,397$

PROFESSIONAL SERVICES (503) 572,328$ 543,479$ -5% 73,562$ 52,030$ -29% 551,975$ 319,800$ -42% 512,445$ 572,124$ 12% 75,720$ 117,635$

MATERIALS & SUPPLIES (504) 22,855$ 31,866$ 39% 14,800$ 30,700$ 107% 92,335$ 80,150$ -13% 762,300$ 753,450$ -1% 153,900$ 191,700$

UTILITIES (505) 93,605$ 91,912$ -2% 3,000$ 5,000$ 67% 2,540$ 3,380$ 33% 123,900$ 109,925$ -11% 14,950$ 32,150$

CASUALITY & LIABILITY (506) 31,182$ 24,345$ -22% 5,250$ 5,250$ 0% 57,676$ 76,035$ 32% 259,820$ 219,682$ -15% 45,851$ 86,435$

PURCHASED TRANSPORTATION (508) -$ -$ -$ -$ 1,746,969$ 1,600,118$ -8% -$ -$ -$ -$

MISCELLANEOUS EXPENSE (509) 144,539$ 180,967$ 25% 12,000$ 21,000$ 75% 236,799$ 232,200$ -2% 85,300$ 143,425$ 68% 8,500$ 8,500$

INTEREST EXPENSE (511) 400$ 400$ 0% -$ -$ -$ -$ -$ -$ -$ -$

LEASE & RENTALS (512) 13,955$ 25,550$ 83% 35,000$ 35,000$ 0% 8,000$ 8,000$ 0% 104,042$ 85,305$ -18% 20,344$ 36,260$

CAPITAL - ASSET ADJUSTMENT -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

2,245,355$ 2,270,881$ 1% 337,355$ 363,802$ 8% 3,299,833$ 3,018,651$ -9% 7,398,904$ 6,968,028$ -6% 1,591,284$ 2,092,533$

1,166,464$ 1,175,533$ 1% 8,990,189$ 9,060,561$ 1%

ITEM V

4

Sum of FY2019 Balanced Amounts

Row Labels

Revenues by Roll-up

Expenses by Roll-up

LABOR SALARIES/WAGES (501)

FRINGE BENEFITS (502)

PROFESSIONAL SERVICES (503)

MATERIALS & SUPPLIES (504)

UTILITIES (505)

CASUALITY & LIABILITY (506)

PURCHASED TRANSPORTATION (508)

MISCELLANEOUS EXPENSE (509)

INTEREST EXPENSE (511)

LEASE & RENTALS (512)

CAPITAL - ASSET ADJUSTMENT

%Diff 2019 2020 %Diff 2019 2020 %Diff 2019 2020 %Diff 2019 2020 %Diff

22 23 24 25 31

34% 398,569$ 351,416$ -12% 338,254$ 374,808$ 11% 89,540$ 60,915$ -32% 519,157$ 496,544$ -4%

20% 195,470$ 178,157$ -9% 171,936$ 168,604$ -2% 41,871$ 22,963$ -45% 253,759$ 223,353$ -12%

55% 289,280$ 99,500$ -66% 97,823$ 90,543$ -7% 8,483$ 11,907$ 40% 87,242$ 93,701$ 7%

25% -$ -$ 105,700$ 154,400$ 46% 24,730$ 18,225$ -26% 155,170$ 188,325$ 21%

115% 4,480$ 3,360$ -25% 27,700$ 21,328$ -23% 3,889$ 5,942$ 53% 32,320$ 32,003$ -1%

89% -$ -$ 54,450$ 41,916$ -23% 4,271$ 5,802$ 36% 48,044$ 52,284$ 9%

-$ -$ -$ -$ -$ -$ -$ -$

0% 464,470$ 12,970$ -97% 10,350$ 13,568$ 31% 2,800$ 3,022$ 8% 7,100$ 10,819$ 52%

-$ -$ 500$ -$ -100% 100$ -$ -100% 500$ -$ -100%

78% -$ -$ 2,500$ 3,200$ 28% 150$ 400$ 167% 1,300$ 4,400$ 238%

9,845,369$ -$ -100% -$ -$ -$ -$ -$ -$

31% 11,197,639$ 645,404$ -94% 809,212$ 868,366$ 7% 175,834$ 129,176$ -27% 1,104,591$ 1,101,429$ 0%

887,800$ -27% 2,089,637$ 2,098,972$ 0.4%

ITEM V

5

FY 2019 Preliminary Budget Revenue Summary10 20 23 21 22 24 25 31 12 Total

Total Costs $2,270,880.62 $3,018,651.22 $645,403.58 $6,968,027.66 $2,092,532.86 $868,320.85 $129,176.37 $1,101,429.10 $363,801.87 $17,458,224.12

Revenues

Total Federal 442,049 2,034,543 516,323 1,424,634 1,061,223 471,078 75,069 565,861 - 6,590,781

Total Directly Generated 20,000$ 676,800 97,000 40,300 5,900 122,100 142,150.00$ 1,104,250

Total Advertising 169,884$ 191,485 74,466 10,000 445,835

Total Local 1,658,948 964,108 129,081 4,675,109 934,310 282,476 48,207 413,468 225,494$ 9,331,201

Other Local -

Total Revenues 2,270,881$ 3,018,651$ 645,404$ 6,968,028$ 2,092,533$ 868,321$ 129,176$ 1,101,429$ 377,644$ 17,472,066

Difference 0 0 0 - - (0) (0) 0 13,842

ITEM V

6

Division 10 % Total 20 % Total 23 % Total 21 % Total 22 % Total 24 % Total 25 % Total 31 % Total 12 % Total

Description

Regional

Overhead

Programs

Information

Supports

Specialized

Transportation

Federal

Programs

Boise Fixed-

route

Boise

Paratransit

Canyon

Fixed Route

Canyon

Paratransit

Canyon Inter-

county Bike Share Total

Expenses 2,270,881$ 3,018,651$ 645,404$ 6,968,028$ 2,092,533$ 868,321$ 129,176$ 1,101,429$ 363,802$ 17,458,224$

Local 1,658,948$ 73% 964,108$ 32% 129,081$ 20.00% 4,675,109$ 67% 934,310$ 45% 282,476$ 33% 48,207$ 37% 413,468$ 38% 211,652$ 58% 9,317,358$

LOCAL REVENUE SOURCES % Total Assessment Service Totals Special Projects Division 10 % Total Division 20 % Total Division 23 % Total Division 21 % Total Division 22 % Total Division 24 % Total Division 25 % Total Division 31 % Total Division 12 % Total Total Unallocated

Ada County 0.5% 25,526$ 22,166 47,693$ 22,974$ 1.4% 2,553$ 1.98% -$ 0.0% -$ 0.0% -$ 0.0% -$ 0.0% 22,166$ 5.4% -$ 0.0% 47,693$ (0)$

ACHD 0.0% 3,106 - 3,106 3,106 0.2% 3,106 (0)

Boise State University 0.4% 6,210 33,774 39,984 6,210 0.4% 33,774 8.2% 39,984 (0)

College of Western Idaho 0.7% 5,682 60,924 66,605 5,682 0.3% 27,150 9.6% 33,774 8.2% 66,606 (1)

CCDC 0.3% 28,507 - 28,507 100,000 100,000 6.0% 2,851 2.21% 102,851 25,657

City of Boise 71.5% 100,172 7,192,422 7,292,594 100,000 1,169,350 70.5% 444,284 46.1% 105,064 81.39% 4,675,109 100.0% 934,310 100.0% 14,006 3.4% 7,342,127 50,467

City of Boise Capital 17.2% - - 1,757,261 0.0% - 1,757,261

City of Eagle 0.3% 13,449 20,470 33,920 9,500 12,104 0.7% 9,500 1.0% 1,345 1.04% 22,949 20,470

City of Kuna 0.1% 9,819 - 9,819 8,837 0.5% 982 0.76% 9,819 (0)

City of Meridian 1.5% 49,324 99,349 148,673 169,184 53,128 3.2% 160,447 16.6% 4,932 3.82% 99,349 24.0% 317,858 (0)

City of Star 0.0% 4,727 - 4,727 4,254 0.3% - 473 0.37% 4,727 (0)

City of Garden City 1.3% 5,264 130,542 135,807 4,738 0.3% 526 0.41% 5,264 130,542

Meridian Development Corporation 0.0% 3,654 - 3,654 3,288 0.2% 365 0.28% 3,654 (0)

TOTAL ADA COUNTY 93.9% 255,441$ 7,559,648$ 9,572,349$ 378,684$ 1,393,672$ 84.0% 614,231$ 63.7% 119,091$ 92.26% 4,675,109$ 934,310$ 27,150$ -$ 203,070$ 49.1% -$ 7,966,638$ 1,984,395$

0.0%

Canyon County 0.4% 20,653$ 18,646 39,299$ 18,588$ 1.1% -$ 2,065$ 1.60% -$ -$ -$ -$ 18,646$ 4.5% -$ 39,299$ (0)$

Canyon County Highway District 0.0% 956 - 956 860 0.1% 96 0.07% 956 (0)

City of Caldwell 1.9% 25,303 166,830 192,133 26,408 1.6% 2,530 1.96% 110,491 39.1% 15,908 33.0% 36,795 8.9% 192,133 0

City of Greenleaf 0.0% 374 - 374 337 0.0% 37 0.03% 374 (0)

City of Melba 0.0% 254 - 254 228 0.0% 25 0.02% 254 (0)

City of Middleton 0.0% 4,176 - 4,176 6,556 3,759 0.2% - 418 0.32% 4,176 (0)

City of Nampa 3.8% 43,883 339,502 383,385 46,903 2.8% 4,388 3.40% 144,835 51.3% 32,299 67.0% 154,958 37.5% 383,385 0

City of Notus 0.0% 245 - 245 221 0.0% 25 0.02% 245 (0)

City of Parma 0.0% 925 - 925 832 0.1% 92 0.07% 925 (0)

City of Wilder 0.0% 757 - 757 681 0.0% 76 0.06% 757 (0)

Golden Gate Highway District #3 0.0% 676 - 676 609 0.0% 68 0.05% 676 (0)

Nampa Highway District #1 0.0% 1,103 - 1,103 993 0.1% 110 0.09% 1,103 (0)

Notus/Parma Highway District 0.0% 593 - 593 533 0.0% 59 0.05% 593 (0)

TOTAL CANYON COUNTY 6.1% 99,898$ 524,978$ 624,876$ 100,951$ 6.1% -$ 9,990$ 7.74% -$ -$ 255,326$ 90.4% 48,207$ 100.0% 210,399$ 50.9% -$ 624,875$ 1$

TOTAL JURISDICTION REVENUE 355,339$ 8,084,626$ 10,197,225$ 1,494,623$ 90.1% 614,231$ 63.7% 129,081$ 100.00% 4,675,109$ 934,310$ 282,476$ 100.0% 48,207$ 100.0% 413,468$ 100.0% -$ 8,591,513$ 1,984,396$

0.0%

Bike Share Local Assistance 272,965 32,539 2.0% 14,932 1.5% 225,494 106.5% 272,965 0

Partners Local Assistance 131,785 7.9% 334,945 34.7% 692,224

VRT Inkind match 0.0% -

Shared Vehicle Partners 0.0% -

TOTAL OTHER REVENUES -$ -$ 272,965$ 164,324$ 9.9% 349,877$ 36.3% -$ -$ -$ -$ -$ -$ 225,494$ 106.5% 739,695$

Over/Under (0) 0.0% (0) 0.0% (0) 0.00% - - 0 0.0% 0 (0) 0.0% (13,842) -6.5% (13,850)$

ITEM V

7

Valley Regional Transit

FY 2019 Second Quarter Budget Report

October 2018 - March 2019

Budget Actual % Variance Budget Actual % Variance Budget Actual % Variance Budget Actual % Variance

Directly Generated Funds 421,841$ 437,566$ 104% 117,414$ 101,143$ 86% 13,899$ 7,865$ 57% 17,767$

Auxillary Revenue 45,000$ 29,027$ 65% 16,874$ 8,206$ 49% 225,186$ 8,395$ 4%

Non-Transportation Revenue 1,860$ 161$ 1,229$

Federal Assistance - Operating/Administration 1,164,508$ 636,704$ 55% 528,607$ 205,383$ 39% 1,675,638$ 1,394,037$ 83%

Federal Assistance - Capital 3,645,208$ 701,166$ 19%

Local Assistance - Operating/Administration 2,857,912$ 3,126,628$ 109% 379,424$ 608,174$ 160% 1,138,977$ 1,046,224$ 92% 168,677$ 116,516$ 69%

Local Assistance - Capital 499,522$ 167,300$ 33%

Total Revenues 4,489,261$ 4,231,785$ 94% 1,042,319$ 923,067$ 89% 7,198,430$ 3,326,217$ 46% 168,677$ 134,283$ 80%

Wages and Salaries 1,807,691$ 1,717,348$ 95% 473,476$ 370,738$ 78% 773,397$ 595,480$ 77% 63,983$ 56,484$ 88%

Capital 3,910,396$ 712,819$ 18%

Fringe Benefits 1,603,868$ 1,535,188$ 96% 233,783$ 165,475$ 71% 485,416$ 392,837$ 81% 32,889$ 37,153$ 113%

Professional Services 288,249$ 240,673$ 83% 94,274$ 94,038$ 100% 616,370$ 550,731$ 89% 36,781$ 9,281$ 25%

Materials and Supplies 458,100$ 410,056$ 90% 142,800$ 197,438$ 138% 57,595$ 32,883$ 57% 7,400$ 9,063$ 122%

Utilities 69,425$ 67,873$ 98% 31,955$ 27,170$ 85% 49,610$ 41,049$ 83% 1,500$ 3,191$ 213%

Casualty and Liability 152,835$ 149,739$ 98% 53,382$ 59,147$ 111% 44,429$ 50,370$ 113% 2,625$ 2,625$ 100%

Purchased Transportation 798,485$ 665,763$ 83%

Miscellaneous 46,900$ 38,072$ 81% 10,125$ 9,060$ 89% 421,248$ 170,165$ 40% 6,000$ 2,686$ 45%

Interest 550$ 200$

Leases and Rentals 62,193$ 67,009$ 108% 1,975$ -$ 10,978$ 10,243$ 93% 17,500$ 13,800$ 79%

Total Expenses 4,489,261$ 4,225,958$ 94% 1,042,319$ 923,067$ 89% 7,168,122$ 3,222,341$ 45% 168,678$ 134,283$ 80%

Valley Regional Transit

Capital Spending

October 2018 - March 2019

Capital Budget Budget Qtr-2 Budget - Annual Actuals - Qtr-2

Bike/Pedestrian Improvements 148,808.31$ 214,925.00$ 6,889.88$

Capital - Facilities - Multi-Modal Center -$ -$ 10,746.32$

Capital - Facility - Facilities/Bldgs/Grounds 455,394.30$ 1,241,183.00$ 356,017.26$

Capital - Non-Revenue Vehicles 35,988.66$ 75,466.00$ 43,698.92$

Capital - Other -$ -$ 49,728.09$

Capital - Revenue Vehicles 1,473,568.65$ 3,385,706.00$ 46.00$

Capital - Revenue Vehicles - Sub-Recipient 423,427.98$ 919,890.00$ 100,176.00$

Capital -Booked Assets Adjustment -$ -$ (137,488.00)$

Capital Equipment - Communications -$ -$ 17,089.98$

Capital Equipment - Farebox 18,783.66$ 56,351.00$ 3,735.58$

Capital Information Technology - Hardware 269,505.00$ 786,591.00$ 181,076.75$

Capital Projects - Sub-Recipient 990,000.00$ 2,970,000.00$ 92,785.21$

Capital -Shop Equipment 91,500.00$ 185,000.00$ 177.12$

System Enhancements - Stops/Shelters 3,418.98$ 10,257.00$ (11,860.00)$

Total Capital Expenses 3,910,395.54$ 9,845,369.00$ 712,819.11$

Category

Ada County System Canyon County System Regional Boise GreenBike

ITEM V

8

VALLEY REGIONAL TRANSIT

FY 2019 BUDGET REPORT COMMENTS

October 2018 - March 2019

At the end of March, Fiscal Year 2019 was fifty percent (50%) complete. The following is a

review of the budgetary status of the Ada, Canyon, Regional, and Boise GreenBike

Systems as of March 31, 2019. A ten percent (+/- 10%) tolerance threshold is utilized for

analysis purposes in this report.

Ada County System

Revenues

Auxiliary Revenues (65% of budget) - This line item is unfavorably below budget estimates

due to less amounts of advertising being purchased for fixed line operations.

Federal Operating Assistance (55% of budget) - This line item is unfavorably outside of

budget parameters due to FY2019 federal funds not being available. VRT will be utilizing

more local operating revenues to cover the federal operating amounts not available.

Expenses

Total Ada County System operating expenses were 94% of budget through QR-2.

Professional Services (83% of budget) - This line item is favorably less than budget

parameters due to expenses being lower than anticipated.

Materials and Supplies (90% of budget) - This line item is favorably below budget

parameters due to expenses being lower than anticipated.

Miscellaneous (81% of budget) - This line item is favorably less than budget parameters

due to expenses being lower than budgeted for.

Canyon County System

Revenues

Directly Generated Funds (86% of budget) - This line item is unfavorably below budget

estimates due to lower farebox sales than budgeted for in divisions 24 and 25, lower

ridership program sales in divisions 24 and 31, and lower pass sales in divisions 25 and 31.

Auxiliary Revenues (49% of budget) - This line item is unfavorably below budget estimates

due to less amounts of advertising being purchased for fixed line operations than budgeted

for.

ITEM V

9

Federal Operating Assistance (39% of budget) - This line item is unfavorably lower than

budget parameters due to FY2019 federal funds not being available. VRT will be utilizing

more local operating revenues to cover the federal operating amounts not available.

Local Operating Assistance (160% of budget) - This line item is outside of budget

parameters. Lower amounts available in federal operating revenues required more local

operating assistance to be recognized as revenue in order to balance total expenses that

were incurred within the system through March. This condition is defined as overmatch

and will reverse as the 2019 grants are executed at the end of QR-3.

Expenses

Total Canyon County System operating expenses were 89% of budget through QR-2.

Wages and Salaries (78% of budget) - This line item is favorably below budget

parameters. There were less expenses than budgeted for due to positions being open.

Fringe Benefits (71% of budget) - This line item is favorably below budget parameters.

Fringe benefits were overestimated due to union negotiations not being complete.

Materials and Supplies (138% of budget) - This line item is unfavorably above budget

parameters. This is due to Division 24 and 31 being over budget for fuel, supplies and

parts for vehicles. Staff will continue to monitor this expense category.

Utilities (85% of budget) - This line item is favorably below budget parameters.

Casualty and Liability (111% of budget) - This line item is unfavorably above budget

parameters. This is typical because VRT pays the regional liability for the year in the first

quarter.

Miscellaneous (89% of budget) – This line item is favorably below budget parameters due

to lower expenses in the first and second quarters.

Regional Operations

Revenues

Directly Generated Funds (57% of budget) - This line item is unfavorably below budget

estimates due to lower farebox sales in division 20 than budgeted for.

Auxiliary Revenue (4% of budget) - This line item is unfavorably below budget parameters

due to lower advertising sales than anticipated.

Federal Operating Assistance (83% of budget) – This line item is unfavorably below budget

parameters due to lower expenses.

ITEM V

10

Federal Capital Assistance (19% of budget) - This line item reflects lower levels of capital

spending or sub-recipient capital pass-through transactions when compared to the budget

through March.

Local Capital Assistance (33% of budget) - This line item reflects lower levels of capital

spending or sub-recipient capital pass-through transactions when compared to the budget

through March.

Expenses

Regional operating expenses are 45% of budget through QR-2

Wages and Salaries (77% of budget) - This line item is favorably below budget

parameters. This is primarily due to some positions being open.

Capital (18% of budget) - This expense category is favorably below budget parameters. It

should be noted that the timing of capital projects throughout the year do not always align

with how the Capital Budget is spread equally (monthly/quarterly) throughout the year.

Fringe Benefits (81% of budget) - This expense category is favorably below budget

parameters. This is primarily due to some positions being open.

Professional Services (89% of budget) – This expense category is favorably below

budget parameters.

Material and Supplies (57% of budget) – This expense category is favorably below budget

parameters.

Utilities (83% of budget) – This expense category is favorably below budget parameters.

Casualty and Liability (113% of budget) - This line item is unfavorably above budget

parameters. This is typical because VRT pays the regional liability for the year in the first

quarter.

Purchased Transportation (83% of budget) – This expense category is favorably below

budget parameters.

Miscellaneous (40% of budget) - This expense category is favorably below budget

parameters due to lower expenses than budgeted for.

Leases and Rentals (93% of budget) - This expense category is favorably below budget

parameters due to expenses being lower than budgeted for.

ITEM V

11

Boise GreenBike

Revenues

Directly Generated Funds – Directly generated funds were $17,767 at the end of March.

This is common for the first and second quarters of the fiscal year.

Local Operating Assistance – (69% of budget) - This line item is unfavorably below

budget parameters due to more of the costs being covered by directly generated funds and

lower than anticipated expenses. This trend will shift as the busy season for bike share

kicks off in the third quarter.

Expenses

Total Boise GreenBike System operating expenses are at 80% of budget through QR-2.

Wages and Salaries (88% of budget) - This line item is favorably below budget

parameters.

Fringe Benefits (113% of budget) - This line item is unfavorably above budget parameters.

Staff will continue to monitor this expense category.

Professional Services (25% of budget) – This line item is favorably below budget

parameters. This trend will change during the third quarter when the temporary seasonal

labor is procured to support the busy season.

Material and Supplies (122% of budget) - This line item unfavorably above budget

parameters. 60 LCD screens required replacement due to sun damage. Staff will continue

to monitor this expense category.

Utilities (213% of budget) – This line item is unfavorably above budget parameters. This

will be monitored through the year. This is the first year the system is operating out of the

Garden City location. Adjustments to actual expenses will be addressed in the FY2020

budget.

Miscellaneous (45% of budget) – This line item is favorably below budget parameters.

Staff will be looking at this budget area to balance the unfavorable utilities expenses.

Leases and Rentals (79% of budget) - This line item is favorably below budget

parameters.

ITEM V

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700 NE 2nd Street, Suite 100 • Meridian, ID 83642 • p: 208.846.8547 • f: 208.846.8564 • 1.855.345.7433

TOPIC: Operating Cash Balance Report - FY2019 Qtr. 2

DATE: June 3, 2019

Summary: Attached to this memo is the operating cash balance report as of March 31, 2019. The following items need to be pointed out:

Regional operating cash balance was $3,274,360 at the end of March. This amount was made up of a cash account balance of $3,136,551 and $137,809 of funds in float. VRT utilizes local funds to pay for expenses that are related to certain federal grant funding that was not readily available at the end of March. Once the federal grant is executed, funding becomes available for drawdown, reversing funds in float into cash. The operating cash balance is considerably higher than the cash balance benchmark for the system due to funds not being transferred from regional’s bank account to Ada County’s bank account.

The Ada County system operating cash balance was $239,267 at the end of March. This amount was made up of a cash account balance of $27,682 and $211,585 of funds in float. The operating cash balance is considerably lower than the cash balance benchmark for the system due to funds not being transferred from regional’s bank account to Ada County’s bank account.

The Canyon County system operating cash balance was $332,160 at the end of March. This amount was made up of a cash account balance of $7,860 and $324,300 of funds in float. The operating cash balance is lower than the cash balance benchmark for the system.

Boise GreenBike Operating Cash Balance was $271,746. This System had no funds in float at the end of March. The balance at the end of March is higher than the cash balance benchmark for the system.

Overall, the total operating cash balance exceeds the total cash balance benchmark.

Staff Recommendation/Request:

The Executive Board will review and accept the FY2019 Operating Cash Balance

Report.

Attachments

Operating Cash Balance Report – FY2019 Qtr. 2

For detailed information contact: Jason Jedry, Finance Controller, 208-258-2709,

jjedry@valleyregionaltransit.org.

ITEM V

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Valley Regional Transit

Operating Cash Balance Analysis

March 31, 2019

Regional Operations

GL Cash Balance at 12/31/18 3,136,551$

Funds in Float 137,809$

Operating Cash Balance 3,274,360$

Cash Balance Benchmark (Note 1) 596,745$

Ada County System

GL Cash Balance at 12/31/18 27,682$

Funds in Float 211,585$

Operating Cash Balance 239,267$

Cash Balance Benchmark (Note 1) 2,501,817$

Canyon County System

GL Cash Balance at 12/31/18 7,860$

Funds in Float 324,300$

Operating Cash Balance 332,160$

Cash Balance Benchmark (Note 1) 351,746$

Boise Greenbike

GL Cash Balance at 12/31/18 271,746$

Funds in Float -$

Operating Cash Balance 271,746$

Cash Balance Benchmark (Note 1) 111,656$

Cash Balance 3,443,839.26$

Funds in Float Balance 673,694.00$

Total Operating Cash Balance 4,117,533.26$

Total Cash Balance Benchmark 3,561,964.18$

Note 1: Average of 2016, 2017 and 2018 at March 31

ITEM V

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