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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 09/23/2009 - Workshop 7777 i iI REGIONAL TRANSPORTATION AUTHORITY BOARD OF DIRECTORS' BUDGET WORKSHOP MEETING MINUTES WEDNESDAY, SEPTEMBER 23, 2009 SUMMARY OF ACTIONS 1. Heard Presentation on August 2009 Financial Report 2. Heard Update on Budget Status The Regional Transportation Authority Board of Directors met at 9:30 a.m. in the Regional Transportation Authority Facility located at 5658 Bear Lane,.Corpus Christi, Texas. Board Members Present: Crystal Lyons (Board Chair), Vangie Chapa, David Martinez, Mike Rendon, John Valls Board Members Absent: Anna Flores (Board Vice-Chair), John Longoria, Ricardo Ramon, Mary Saenz , Judy Telge Staff Present: Eduardo Carrion (CEO), Jorge Cruz-Aedo, Beth Vidaurri, Sharon Montez, Twila Mouttet, Susan Vinson Public Present: Rosie Aguiar, RTAEA; Eloy Soza, RCAT Call to Order Ms Lyons called the meeting to order at 9:41 a.m. Presentation on August 2009 Financial Report Ms. Vinson reported that August's budget variance was positive by $0.6 million compared to budget. Contributing to the positive variance, as explained by Ms. Vinson, was that year-to-date operating costs were below budget by about $2.3 million which was offset by revenues being below budget by about $1.5 million; fuel and health insurance had experienced lower costs; other savings had come from staff vacancies, and invoice timing differences. Additionally, disposal of assets had experienced a net loss of$0.2 million. Regarding revenue for July 2009, Ms. Vinson stated that sales tax had decreased by 23.0 percent compared to July 2008 and passenger and investment income were below budget. She said that the sales tax revenue for August was projected at 14.5 percent. If the amount received was less, then critical budget adjustments would need to be made or use funding from reserves. All revenue sources were expected to be below budget except for grant revenue since preventive maintenance funding could be used to balance the budget. SCANNED Regional Transportation Authority Board of Directors Workshop Meeting Minutes September 23,2009 Page 2 In response to. Mr. Valls, Ms. Vinson stated that the internally designated net assets were approximately $13.352 million. The undesignated net assets were about $19 million with about $6 million set aside for capital assets. Ms. Vinson acknowledged that using reserves to create a balanced budget would be part of the budget process but any changes to the reserve policy would need to be approved by the Board of Directors. Responding to Ms. Lyons, Ms. Vinson said that the August sales tax revenue for the Agency would be released on approximately October 6, 2009. Continuing with her report, Ms. Vinson reported that year-to-date budget line items under budget were Services by $155,672; Materials — Bus Parts - by $207,000; Utilities by $26,000; and Property, Liability and Health Insurance by $347,000 primarily due to stop loss reimbursements and lower utilization and included $48,000 in property insurance due to lower rates and return on equity. Salary and Benefits line item was over budget by approximately $185,000 primarily due to the pension plan contribution. In response to a discussion on salary savings, Mr. Carrion stated that historically when developing the budget, estimated hire dates were identified for vacant positions and the salary was prorated. He also informed the Board that the largest salary savings had been in overtime due in part to improved bus operator retention. In response to Mr. Valls, Ms. Vinson explained that large health claims were not predictable and savings could be used up without advance notice. Mr. Carrion explained that this line item was to provide for catastrophic claims on the health plan and not for plan administration. Mr. Valls initiated a discussion on returning some of the savings to employees. Mr. Carrion said that staff was investigating the feasibility of setting up a duel health care premium scale which would allow wellness plan participants to pay reduced premiums. Update on Budget Status Ms. Vinson summarized that when developing the 2009 budget approximately $853,389 was designated to be carried over into that year's budget to cover an anticipated deficit. The actual revenues in 2008 exceed expensesby approximately $1,044,711. This amount, plus the original designated carryover amount, which totaled $1,898,100 was available to carryover into the 2010 budget. She noted that the plan was to utilize preventive maintenance funds available on open FTA capital grants to cover operating losses for both 2009 and 2010. r Regional Transportation Authority Board of Directors Workshop Meeting Minutes September 23,2009 Page 3 Presenting the preliminary 2010 budget, Ms. Vinson explained that when the budget committee initially reviewed the department budgets, there had been about a $1.8 million shortfall compared to the departments' requested funding. Ms. Vinson cited the following actions that have been undertaken to align projected revenue with projected expenses for FY 2010: reduced projected spending for 2009 by about $293,000; reduced estimated 2010 fuel costs by about $300,000; reduced estimated self funded health insurance costs for 2010 by about $225,000; reduced salaries and benefits for 2010 by about $175,000 by leaving two position unfunded and reduced overtime; reduced projected parts costs for 2010 by about $200,000; identified about $75,000 in additional department savings for 2010; increased grant revenue for 2009 by using about $460,000 in preventive maintenance; and also increased grant revenue for 2010 by about $90,000. Ms. Vinson discussed various revenue and expense projections for 2010 and the potential actions that would need to be taken to response to these scenarios. Ms. Telge questioned whether the budget presented at the September 22, 2009 Marketing Subcommittee for marketing initiatives had been included in the 2010 budget. Ms. Vinson stated that the budget presented would be reviewed and considered for inclusion in the 2010 budget. Budget amendment for the fuel and pension at least switch some of the money between them. There being no further business, the meeting was adjourned at 10:33 a.m. t I • ltha Mary Saen', Board S:P'etary Date Submitted by: Beth Vidaurri