Draft of CATA's FY 2024 Operating & Capital Budgets

DRIVING MOBILITY SOLUTIONS

June30,2023

DearBoardMember:

In accordance with Board Policy No. 202, attached is your copy of CATA’s proposed fiscal2024OperatingandCapitalbudgets

Explanations for line-item changes are noted under the Section 10 tab of your budget packet,entitled“References.”

Iinviteyoutoreviewthebudget,andfeelfreetoreachouttomewithquestions.

CATA’sExecutiveStaffand Iappreciate yourthoughtfulreviewofand feedbackon the enclosedbudgetdocuments.

Sincerely,

BradleyT.Funkhouser,AICP ChiefExecutiveOfficer

About CATA

In1972,theCapitalAreaTransportationAuthoritywasformedunderAct55(PublicActof Michigan 1963). At the time, CATA employed 58 individuals and, at year end, delivered 733,000ridesthroughouttheserviceregion.

Forourfiscal2024budget,weproposetoemploy443individuals,mostofwhomresidein the Authority’s five funding jurisdictions, including the cities of Lansing and East Lansing; and Delhi, Lansing and Meridian townships. CATA currently operates 33 fixed routes. Additionally, the Authority responds to the increasing demand for paratransit services, including Spec-Tran, which is designed to meet the needs of people with disabilities. System wide, the agency also maintains 1,400 bus stops, along with approximately 150 shelters – some of which were customized to represent the unique characteristics of the communitiesandneighborhoodsweserve.

Currently,ourserviceareacomprises561squaremilesinInghamCounty,andportionsof Eaton and Clinton counties. We continue to work with Eaton County Transportation Authority(EATRAN)andClintonAreaTransitSysteminacoordinatedefforttoachieveour visionforregionalmobilityandbettermeettheneedsofourriders.

In2022,CATAcelebratedits50-yearanniversary.AsCOVID-19caseswanedintheregion, ridership rebounded from 3,030,644 trips in 2021 to 5,399,227 trips at fiscal 2022 yearend–anincreaseof2,368,583(78.26percent).

CATAownsandoperatesthreetransitfacilities:

• TheCATATransportationCenter,locatedintheheartofdowntownLansing,opened its doors in 1997. It serves as a central boarding and transfer hub for 16 of CATA’s fixed routes, along with Indian Trails’ intercity bus services. The downtown CTC features a Customer Experience Center, complete with security, law-enforcement, communityadvocacyandcustodialservices.

• MSU contracted with CATA in 1999, launching campus service. The MSU-CATA Transportation Center at Ramp 1 on Shaw Lane opened in 2004, serving as a main boarding center for campus routes. For the first time ever, MSU contracted with CATAtoofferfare-freetransportationoncampusduringthe2018academicyear.To date, MSU has renewed its commitment to fare-free service on campus each semester.

• Finally, the state-of-the-art Capital Area Multimodal Gateway, Operated by CATA, opened in November 2015. The Gateway is served by four CATA fixed routes – two year-round (Routes 18 and 20) and two during MSU’s fall and spring semesters (Route35onweekendsandRoute38MondaythroughFriday)–andoffersaccessto

rail, taxis, transportation network companies and city, regional and national bus lines Pay-by-plateparkingisalsoofferedattheGateway.

CATAcontinuestoassessthetransportationandmobilityneedsoftheregion,andiskeenly focusedonenhancingcustomerexperienceandprovidingtransitsolutionsthatreflect the voiceofitscustomers

DRIVING MOBILITY SOLUTIONS

Budget Introduction

Staff is pleased to present, for the Board’s consideration and approval, CATA’s proposed fiscal2024OperatingandCapitalbudgets

Operating Budget

The 2024 Operating Budget reflects expected revenues available for operations of approximately$62.4million.Thisrepresentsanincreaseofapproximately$1.98million(or 3.3percent)overbudgeted revenues available for operations forfiscal2023andanincrease ofapproximately$7.07million(or12.8percent)overactualrevenuesreceivedandavailable foroperationsduringfiscal2022(CATA’slastfullfiscalyear).Theincreaseinexpectedfiscal 2024 revenues can primarily be attributed to funds available through the Coronavirus ResponseandReliefSupplementalAppropriationsAct(CRRSAA)andAmericanRescuePlan Act,inadditiontoincreasesinpropertytaxandfareboxrevenues.

The 2024 Operating Budget reflects expected operating expenditures of approximately $60 million, which is a decrease of approximately $2.06 million (or 3.3 percent) from budgeted operating expenditures for fiscal 2023, and an increase of approximately $6.99 million(or13.2percent)fromactualoperatingexpensesincurredduringfiscal2022.

Capital Budget

CATA’sCapitalBudgetforfiscal 2024,aspreviouslydevelopedbyCATA,andsubmittedto andapprovedbytheTri-CountyRegionalPlanningCommission,andaspresentedwithinthe “Capital Program” tab of this report, calls for capital expenditures of approximately $11.2 million TheexpectedexpendituresincludeSection5307(UrbanizedAreaFormulaFunds), Section5339(BusandBusFacilities),andSection5310(EnhancedMobilityofSeniorsand IndividualswithDisabilities) Capitalfundingwillbereceivedfrombothfederalgovernment andStateofMichigan(MichiganDepartmentofTransportation)apportionments.

Our fiscal 2024 Capital Program of Projects will continue to be governed by the Transportation Improvement Program, the Unified Planning Work Program and the RegionalTransportationPlanonfilewiththeTri-CountyRegionalPlanningCommission.

Organizational Structure & Staffing Changes

Duringfiscal2023,therewereseveralsignificantchangestoCATA’sorganizationalstructure includingtheadditionofaMaintenanceTrainingSupervisor,MarketingandMediaRelations StrategistandParatransitSupervisor Thecostofthesenewpositionswasconsideredwhen preparingthe2024OperatingBudget.

Five-Year Budget Projection

Asshowninthefive-yearbudgetprojection,therevenuebudgetinfiscal2028isprojected at$68.8million,whiletheexpensebudgetisprojectedtobe$69.9million.Thisnecessitates theuseofCashandInvestedFundsof$1million.Theyear-endbalanceinfiscal2028ofCash and Invested Funds is estimated at $31.9 million, which meets the requirement of CATA BoardPolicyNo.212(PolicyonCurrentOperatingFunds).ThatpolicyrequiresthatCATA maintain a cash balance (cash and invested funds) of at least three months of operating expenses,or$17.5millionforfiscal2028.

Indevelopingthefive-yearprojection,CATAusedconservativerevenuefiguresandliberal expensefiguresinordertoproduceconservativetrendlines.However,CATAmanagement understandsthatthismodelisnotfiscallysustainable.Consequently,overthecourseofthe next few years, it is CATA’s intent to slowly merge the revenue and expense trend lines together,therebyeliminatingtheneedtousesurpluscash.

Truth in Budgeting – Taxes

In accordance with the Truth in Budgeting Act, it is noted that the projected fiscal 2024 OperatingBudgetincludesrevenuesfromananticipatedlevyofadvalorempropertytaxes attherateof3.007mills.ThisistherenewalofthebasetaxrateasapprovedinMarch2020 ThesetaxesareleviedtodefraytheexpendituresandmeettheliabilitiesoftheAuthorityin providingpublictransportation.

Conclusion

The fiscal 2024 Operating and Capital budgets, and the five-year projection incorporate assumptionsthatwerepreviouslyapprovedbyCATA’sBoardofDirectors,aswellassome new assumptions based on current data Further, the proposed budgets confirm CATA’s commitment to the provision of top-quality public transportation to the region and good stewardshipofpublicfunds.

Wehopethatthisintroductionanswersanyquestionsthatmaysurfaceasyoureviewthe proposed budgets and related documents. Thank you for your continued commitment to CATAandtoimprovingpublictransportationintheregion.

Respectfullysubmitted,

ChiefExecutiveOfficer

Date

June30,2023

Department Descriptions

Customer Experience Department

Customer Experience Department personnel focus on delivering optimal, knock-yoursocks-off service from the first point of engagement throughout the lifetime of our relationship with riders in an effort to enhance customer experience. Department personnel are responsible for assisting individuals seeking information about CATA’s services; receiving, documenting and resolving customer complaints and issues; selling tokensandfaremedia;andprovidingpublicandcustomereducationregardingCATA’sfull range of services. A Customer Experience Representative is assigned to the Capital Area MultimodalGateway,OperatedbyCATA,toassistAmtrakandIndianTrails’customersand visitors.ArepresentativeattheCATATransportationCenterisdesignatedtoassistIndian Trails’ customers with trip-planning needs. It is the responsibility of the Customer Experience Department to ensure a safe and secure environment at the CATA TransportationCenterand,inconjunctionwithOperations,aboardfixed-routevehicles.As partofitsCommunityAdvocacyProgram,CATAcontractswithAdventHouseMinistriesto providesocialservicessupporttohomebound/unshelteredpatrons.Headcount:21.

Staff

CustomerExperienceManager(1)

CustomerExperienceSupervisor(1)

CustomerExperienceRepresentative(9)

CustomerExperienceRepresentative(4–parttime)

AmBUSsadors(6–parttime)

Executive Department

The Executive Department is ultimately responsible for CATA’s entire operation, overseeingalldepartmentsanddirectingtheAuthoritywithintheguidelinesestablished by the Board of Directors. The department prepares all Board information; handles governmentalrelations,unionrelationsandstrategicplanning;representstheAuthority invarioustransitorganizations;andpreparesandmonitorstheAuthority’sbudget.The ExecutiveDepartmentmanagesspeciallarge-scaleprojects.Headcount:4.

Staff

ChiefExecutiveOfficer(1)

DeputyChiefExecutiveOfficer(EEO/CivilRightsOfficer)(1)

ExecutiveSecretary(1)

AdministrativeAssistant(1)

Facilities & Grounds Department

The Facilities & Grounds Department is responsible for the maintenance of CATA’s facilities, including its Administrative Offices, the CATA Transportation Center, Michigan StateUniversity–CATATransportationCenterandtheCapitalAreaMultimodalGateway, OperatedbyCATA.Inaddition,thisdepartmentinstallsandrepairsbusstopsigns,shelters and related amenities in accordance with CATA’s brand standards. The department also manages CATA’s bus schedule distribution to key points throughout the service region; covers the repair and preventive maintenance of equipment and buildings to ensure properoperation,aswellasgroundsandlandscapemanagement,andsnowremovalatbus stops and each CATA facility. The department also manages all facility construction and renovationprojects.Headcount:7.

Staff

Facilities&GroundsManager(1)

FacilitiesRepairTechnician(1)

Sign&ShelterTechnician(1)

Facilities&GroundsMaintenance(3)

Facilities&GroundsMaintenanceCustodian(1)

Finance Department

The Finance Department is responsible for CATA’s financial transactions and the managementofitsfundsinaccordancewithfederal,stateandlocalregulations,strivingto ensure efficiency and cost-effectiveness. The department is also responsible for maintaining an accounting system that accurately records CATA’s financial transactions, including accounts payable, accounts receivable, payroll and investments. The Finance Department also develops (along with all other departments) the annual budget and monitorsitsperformance.Headcount:7.

Staff

DirectorofFinance(1)

FinanceManager(1)

AccountantI–AccountsPayable(1)

AccountantI–General(1)

AccountantI–AccountsReceivable(1)

AccountingClerk–CurrencyProcessing&Support(1–parttime)

SeniorAccountant–Grants&Receivables(1)

Human Resources Department

TheHumanResourcesDepartmentisresponsibleforrecruitmentandhiring,payrolland benefits, employee and labor relations, maintenance of employment records, and ensuringcompliancewithallfederal,stateandlocalemploymentlaws.Headcount:5.

Staff

DirectorofHumanResources(1)

HumanResourcesManager(1)

HumanResourcesAssistant(1)

HumanResourcesGeneralist(2)

Information Technology Services Department

TheInformationTechnologyServicesDepartmentisresponsibleforthedevelopmentand maintenance of CATA’s technology infrastructure, including the computer network and communications systems, i.e., phone, email, short message service, Automated Vehicle Locator system, cellular, radio, etc.; software applications, and fare-collection and management systems. The technology infrastructure at CATA supports and provides efficienciesacrosstheentireorganizationforbothcustomersandemployees. Headcount: 7.

Staff

DirectorofInformationTechnologyServices(1)

InformationTechnologyServicesManager(1)

Server&NetworkAdministrator(1)

InformationTechnologyServicesTechnician(2)

InformationTechnologyServicesTechnician(1–parttime)

VehicleTechnologyCoordinator(1)

Maintenance Department

The Maintenance Department is responsible for maintaining a safe and clean fleet of vehicles,therebyallowingCATAtoeffectivelyservethepublicwithinitsservicearea.The departmentalsomanagesallbusandvehiclemaintenance,repairs,fuelingandwashing; and oversees departmental labor relations, purchasing and inventory control. Headcount:47.

Staff DirectorofMaintenance(1)

MaintenanceSuperintendent(1)

MaintenanceSupervisor(4)

MaintenanceTrainingSupervisor(1)

BodyTechnician(1)

MechanicFirstClass(20)

MechanicHelper(3)

UtilitySupervisor(1)

UtilityEmployee(13)

MaintenanceParts&InventorySupervisor(1)

MaintenanceMaterialsAdministrator(1)

Marketing Department

CATA’sMarketingDepartmentisresponsibleforbusinessactivitiesinvolvedinmoving CATA’sservices totheconsumer. Thedepartment hasfiveprimaryobjectives:1)raise customerandpublicawarenessofCATA’sservices,aswellasthevalueand benefitsof public transportation; 2) implement creative ridership and branding strategies; 3) develop and implement employee pride-building activities; 4) provide clear and timely communications, targeted promotions, special events and community outreach efforts;and5)manageCATA’sbrandtoensurepositivepublicandmediaperceptionsof the Authority in order to ensure funding support. Major marketing initiatives include websitecontentmanagement,maintenanceanddevelopment;research(brand,market analyses; Title VI, customer satisfaction and trip-purpose surveys; focus groups and publicmeetings,etc.);communityandmediarelations;serviceinformation;faremedia production and testing; annual production of Legislative, Annual, Community, Budget and Development reports; advertising, media-buying and promotions; transit advertising sales and management; internal and external special events; and crisis communications.Headcount:10.

Staff DirectorofMarketing&CustomerExperience(PublicInformationOfficer)–(1)

MarketingManager–Generalist/DeputyPublicInformationOfficer(1)

MarketingManager–ServiceInformation(1)

Marketing&MediaRelationsStrategist(1)

MarketingAssistantManager(1)

MarketingExecutiveAdministrativeAssistant–(1)

MarketingSpecialist(1)

MarketingInterns(3–parttime)

Operations Department

TheOperationsDepartmentdeliversfixed-routeandparatransittransportationservices, striving to provide trips in a safe, cost-efficient and courteous manner. Fixed-route responsibilities include routing, dispatching and street-level supervision. Paratransit responsibilities include management of the Paratransit call center where trips are scheduled,manifestsarebuiltanddailyoperationsaremonitored.Headcount:324.

Staff

DirectorofOperations(1)

OperationsAdministrativeCoordinator(1)

OperationsManager–FixedRoute(1)

OperationsSupervisor(11)

BusOperator(229)

BusOperator(60–parttime)

OperationsManager–Paratransit(1)

OperationsSupervisor–Paratransit(1)

TrainingSupervisor(1)

ParatransitScheduler(5)

ParatransitDispatcher(2)

ParatransitServiceRepresentative(5)

ParatransitServiceRepresentative(5–parttime)

OperationsApplicationAdministrator(1)

Planning & Development Department

The Planning & Development Department is responsible for federal and state compliance; the implementation and coordination of regional transportation planning activities; long-range system plans designed to meet the mobility needs of the Greater Lansing area; planning and scheduling CATA’s fixed-route and directly-operated paratransit services, including the assignment of operators to routes; and securing, managing,administeringandreportingonallstateandfederalgrantsincompliancewith applicableguidelines.Additionally,thisDepartmentisresponsibleforTitleVIplanning andevaluating,providingreportsandinformationtomanagementtofacilitatedecisionmaking, determining fixed-route bus stop locations, and serving as the liaison to the FederalTransitAdministration,theMichiganDepartmentofTransportationandtheTriCountyRegionalPlanningCommission.Headcount:6.

Staff

DirectorofPlanningandDevelopment(1)

ServicePlanning&SchedulingManager(1)

SeniorManagerDataAnalyst(1)

PlanningAide(1–parttime)

GrantsManager(1)

GrantsAdministrativeAssistant(1)

Purchasing & Contracts Department

The Purchasing & Contracts Department is responsible for conducting day-to-day procurementactivities,includingmanagementofthird-partyagreementsandoversight oftheprocurementprocess.ThedepartmentalsoactsastheAuthority’sDisadvantaged BusinessEnterpriseliaisonfortheoutreachandutilizationofDBEfirms.Headcount:4.

Staff

Purchasing&ContractsManager–DBELiaisonOfficer(1)

PurchasingSupervisor(1)

ProcurementSpecialist(1)

ProcurementClerk(1)

Safety Department

The Safety Department is responsible for the development and management of CATA’s safetyprogramsforbusoperators,includingaccidentpreventionandsafety Headcount:1.

Staff SafetySupervisor(1)

Organizational Charts

Board of Directors

Executive Department

Maintenance Department Operations Department Information Technology Department

Planning & Development Department

Finance Department

Human Resources Department

Marketing Department

Purchasing & Contracts

Training Department

Facility & Grounds Department

Department/DBE Liaison Officer Safety Department

Customer Experience Department

Executive Assistant

Board of Directors

Executive Leadership & Oversight

Deputy Chief Executive Officer

Administrative Assistant

Chief Executive Officer

Safety Supervisor

Director of IT Services

Director of Planning & Development Director of Finance

Director of Human Resources

Director of Marketing & Customer Experience

Marketing Executive Assistant Operations Secretary

Purchasing & Contracts

Manager/DBE Liaison Officer

Customer Experience Manager

AmBUSsadors (6 part time)

Customer Experience Department

Director of Marketing & Customer Experience

Customer Experience Manager

Customer Experience Representative (9) (4 part time)

Customer Experience Supervisor

All positions are full time unless otherwise noted.

Deputy Chief Executive Officer

Facilities & Grounds Department

Facilities & Grounds Manager

Facilities Repair Technician Sign & Shelter Technician Custodian

Facilities & Grounds Maintenance (3)

All positions are full time unless otherwise noted.

Director of Finance

Finance Department

Finance Manager

Accountant I –Accounts Receivable Accountant IGeneral Accountant I –Accounts Payable

Accounting Clerk –Currency Processing & Support (1 part-time)

Senior Accountant –Grants & Receivables

All positions are full time unless otherwise noted.

All positions are full time unless otherwise noted.

unless otherwise noted.

Marketing Manager – Service Information

Marketing Department

Director of Marketing, Customer Experience & Public Information

Marketing Executive Assistant

Marketing Manager – Generalist & Deputy Public Information Officer

Marketing & Media Relations Strategist

Marketing Assistant Manager

Marketing Specialist

Marketing Intern (3 part time)

All positions are full time unless otherwise noted.

Operations Administrative Coordinator Director of Operations

Operations Department

Training Supervisor

Operations Manager –Fixed Route

Operations Manager –Paratransit

Operations Supervisors (11)

Bus Operators (229) (60 part time)

Paratransit Scheduler (5)

Operations Supervisor –Paratransit

Paratransit Service Representative (5 part time)

Paratransit Dispatcher (2)

Operations Application Administrator

All positions are full time unless otherwise noted.

Director of Planning & Development

Planning & Development Department

Service Planning & Scheduling Manager Grants Manager

Senior Manager Data Analyst

Grants Administrative Assistant Planning Intern (1 part time)

All positions are full time unless otherwise noted.

Purchasing & Contracts Department

Chief Executive Officer

Purchasing & Contracts Manager/ DBE Liaison Officer

Procurement Clerk

Purchasing Supervisor

Procurement Specialist

All positions are full time unless otherwise noted.

Executive Officer

All positions are full time unless otherwise noted.

Chief

Safety Supervisor

Goals & Objectives

Mission Statement

To meet the mobility needs of our region by providing innovative solutions in partnershipwiththecommunitiesweserve.

Vision Statement

CATAwillensurepublictrustbyre-imaginingregionalmobilitychallengesandhowwe betterengagethoseweserve.

Values

• CATAiscommittedtotransparencyinaction,whichinherentlyfosterstrustand innovation.

• Wewillapproachcommunitypartners,customersandemployeesinthespiritof cooperation.

• CATAiscommittedtoprovidingasafeexperienceforourcustomers,employees andthepublicweserve.

• CATA seeks to implement sustainable solutions as stewards of the community weserve;theplanetanditsfiniteresources.

• ProfessionalismandintegritydriveCATA’sactionsanddecisions.

• Accountability and the desire to always do the right thing serve as our guiding compass.

Goal No. 1

Regional Mobility

Facilitateseamlessandinnovativemultimodaltransportationsolutionsthroughoutthe tri-countyarea.

• ToensureongoingtaxpayersupportofCATAbyeffectivelycommunicatingthe valueoftheregion’sinvestmentinpublictransportationandtransparently stewardingpublicfunds,resultinginvoterpassageofourmillages.

• Toidentifyandrespondtomobilityopportunities.

• Topursueandnurturekeypartnershipsinthetri-countyregion.

• Toidentifyandreduceoreliminatebarrierstoridership.

• Toexploreandimplementsmall-scaleservices.

Goal No. 2

Customer Experience Excellence

Employbestpracticesthatleadtonewandreturningcustomers.

• ToenhanceCATA’sabilitytoengagecustomers.

• Toimprovethereliabilityofourservices.

Goal No. 3

Organizational Strength

Promoteorganization-wideefficiencyandeffectiveness.Leadbyexampletoward continuousimprovement.

• Tocommittocontinuousimprovementthroughprocessorientation.

• Toworkmorecollaborativelyacrossdepartmentlines.

• Toprovideafiscallysustainablefinancialapproach.

• ToempowertheBoardtoserveasambassadorsofthestrategicplan.

• Toidentifyregionalprioritiesforpartnering.

• Toimplementsustainablebusinesspracticesandoperations.

• Toimplementmeasurablestrategiesandtacticstoensureworkplacediversity, equityandinclusion.

Goal No. 4

Community Partnership

Exhibitresponsibleleadershipthroughcommunityengagementandpublicservice.

• Toimproveourcommunity’squalityoflifebyhelpingtomakeitagreatplaceto live,workandplay.

• TobuildCATA’sreputationbysupportingcommunitypartners,creating goodwillandgivingbacktoourcommunity.

• Tobuildstrongerrelationshipsandhelpincreasepartners’effectiveness.

Goal No. 5

Dynamic Workplace

Createameaningfulworkplacethatengages,empowersandvaluesitsemployees.

• Topracticeacultureoftransparency.

• Tostrivetobecomeanemployerofchoiceinthecapitalregion.

• Towelcomechallengesasanopportunitytoimproveservice.Think,problemsolve,innovateandchannelenergyintopositivesolutions.

• Toacknowledgeareasofimprovementtocultivatebestpracticesaswebuildon existingsuccesses.

• Tocreateaculturethatvaluesandcelebratesdiversity,equityandinclusion.

Action Item – FY 2023 Budget Approval

AtCATA’sAugust16,2023,BoardofDirectorsmeeting,apublichearingwillbeheldon theFY2024OperatingandCapitalbudgetsandthe2023propertytaxlevy.

StaffrecommendsthattheBoardofDirectorsadoptthefollowingproposedmotion.

Proposed Motion

The CATA Board of Directors, as its general appropriations act, adopts the following resolutions:

1. The proposed Operating and Capital budgets for FY 2024, upon which a public hearing was held at a regular meeting of the Board on August 16, 2023, is adoptedasthegeneralappropriationoftotalrevenuesoftheAuthoritytodefray expenditures and meet liabilities in FY 2024 (October 1, 2023, through September30,2024).

2. In accordance with the Truth in Budgeting Act, the Board states that the Authority'slevyfor2023of3.007millsofadvalorempropertytaxesasprovided forintheOperatingbudgetandauthorizedbyresolutionadoptedonAugust16, 2023, are for the purpose of defraying the expenditures and meeting the liabilitiesoftheAuthorityinprovidingpublictransportation.

3. The CEO/Executive Director shall have authority within the overall Operating and Capital budgets to manage operations and the capital program, as well as maketransferstoandfrominvestedfundstofacilitatedailyoperationsandmeet cash-flowneedswithoutrequiringfurtherapprovalbytheBoard.

4. Theannualgoalsand objectives,andtheorganization charts, aspresented with theOperatingandCapitalbudgetsforFY2024,areapproved.

Action Item – 2023 Property Tax Levy

AtCATA’sAugust16,2023,BoardofDirectorsmeeting,apublichearingwillbeheld ontheFY2024budgetandthe2023propertytaxlevy.

StaffrecommendsthattheBoardofDirectorsadoptthefollowingproposedmotion setforthbelow.

Proposed Motion

The CATA Board of Directors authorizes the levy of ad valorem property taxes for theyear2023 of 3.007 mills. TheBoard of Directorsfurther directs Stafftofilethe requiredFormL-4029withtheappropriatejurisdictions.

Annual Budget & Capital Program, Property Taxes, Goals & Objectives and Organizational Charts

The Board of Directors shall review and approve the annual operating budget and capitalprogram,theannualpropertytaxlevy,theAuthority’sgoalsandobjectives,and theAuthority’sorganizationchartsforeachfiscalyear,asfollows:

A. Prior to March 15 each year, the Board, the Executive Director, Department Directors and administrative employees, as deemed necessary by theExecutive Director, will meet to discuss in a public meeting the goals*, objectives* and futuredirectionoftheAuthority.

B. TheExecutiveDirectorshallprepareandsubmittotheBoard:

1. The recommended operating budget and capital program for the ensuing year(together,the“budget”);

2. Theproposedpropertytaxlevy;

3. Goalsandobjectives;

4. Organization charts with a brief description of each department, listing all administrativepositionsbytitle;

5. Suggestedlanguageforthegeneralappropriationsact;

6. Thefive-yearcapitalprogram;

7. Afive-yearprojectionoftheoperatingbudget(the“Five-yearProjection”)for backgroundandplanning;and

8. OtherdatarelationtofiscalconditionsthattheExecutiveDirectorconsiders tobeusefulinconsideringthefinancialneedsoftheAuthority.

TheaboveitemsshallbemailedordeliveredtotheBoardmembersnolaterthan July 1 of each year with a copy of this policy and shall be the first order of businesstobediscussedbytheBoardatitsJulymeeting.

C. Public hearing(s), with notice as required by law, shall be held at the regular Board meeting in August so that public input can be heard on the proposed millage rate for ad valorem taxes to be levied and on the proposed Budget. Following the public hearing(s) in the August meeting, the Board shall set the millage tax levy and may also approve the Budget, goals and objectives, organization chartsas provided in paragraphDbelow, and thefive-yearcapital program. If the tax millage rate isnot approved by theBoard within10 days of the public hearing, another public hearing on taxes must be scheduled. If the budgetisnotapprovedintheAugustmeeting,itshallbescheduledforactionin theSeptembermeeting.

D. InitsAugustorSeptembermeeting,aftertherequiredpublichearing,theBoard shall approve the Budget, as well as the goals and objectives, organizational charts, and the five-year capital program, by adoption of a general appropriations act for all funds and revenues of the Authority to defray expendituresandmeetliabilitiesfortheensuingyear.AsmandatedbytheTruth inBudgetingAct,thegeneralappropriationsactshallalsosetforthandconfirm the prior resolution setting forth the total number of mills of ad valorem property taxes to be levied and the purposes for which that millage is levied. Further, except as permitted by law, the general appropriations act or any amended act adopted by the Board shall not cause the estimated total expenditures, including any accrued deficit, to exceed estimated revenues, including invested funds and other available surplus and proceeds of bonds or otherobligations.

E. Thebudgetisnotaline-itembudget.TheExecutiveDirectorshallhaveauthority withintheoverallbudgettomanageoperationsandthecapitalprogram,aswell astomaketransferstoandfrominvestedfundstofacilitatedailyoperationsand meet cash-flow needs without further approval by the Board. The Board, by agendaitem,maychoosetoamendthegeneralappropriationsactandadjustthe budgetwheneverdeemednecessary.

F. The budget shall not be construed to require CATA to make expenditures. It is thegoalofCATAtoachievesavingsagainstthebudgetwheneverpossible.

SummaryrevenueandexpensebudgetvariancereportsshallbesubmittedtotheBoard Treasureratleastquarterly,andmorefrequentlyasrequested.TheBoardChairandthe Treasurermayrequirefurtherandmoredetailedinformationfromtimetotime.

Thebudgetshallconsistof:

1. Comparative details regarding expenditures and revenues for the most recently completed fiscal year and budget estimates for the current fiscal year;

2. Details regarding the anticipated revenues and sources of revenues for the comingyear;

3. Details regarding the expenditure plan, by operational function, for the comingyear;

4. Theamountofsurplusordeficitthathasaccumulatedfrompriorfiscalyears, together with the budget estimate of the amount of surplus or deficit expectedinthecurrentfiscalyear;

5. An estimate of amounts needed for deficiency, contingent or emergency purposes,aswellastherecommendedsourceoffunds;and

6. Thecapitalprogramfortheupcomingyear.

* DEFINITIONS:

Goals–Ageneralstatementofanareaofcriticalimportanceandkeyresultsshallbe usedtodevelopspecificobjectives.

Objectives – A statement of results to be achieved. As such, it must be specific, realistic, quantifiable and understandable. Objectives can be both long term (taking much more than one year to accomplish) and short term (taking a year or less to accomplish),butaregenerallyofamoreshort-termnature.

Fiscal 2024 Operating Budget

Fiscal 2024 Operating Budget

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Departmental Analysis

Fiscal 2024 Capital Program

Five-Year Plan

References

1 Consists of Federal Insurance Contributions Act Funds (FICA) and State of Michigan Unemployment Tax (SUTA). FICA is computed as approximately 7.65 percent of total wages. SUTA is estimated as approximately 1 percent of total wages.

2 Overtime pay is calculated and included in the labor line for each affected department, as applicable. Wages are budgeted based on existing staffing levels (as reflected in the organizational charts included within this Budget Book) and assuming a 3 percent increase for administrative staff. ATU wages are based on rates adopted in the most recent agreement, which became effective November 7, 2022.

3 This line-item relates to fees that CATA pays to be a member of various professional and civic organizations. The four largest fees go to the American Public Transportation Association, Michigan Public Transportation Association, Tri-county Regional Planning Commission and the Lansing Economic Area Partnership.

4 Line item relates mainly to cost of online job-recruitment board postings (e.g., Zip Recruiter, Handshake, Indeed, etc.), which was categorized as advertising in the FY 2023 budget.

5 Line item relates to the cost of parking for employees working at the CATA Transportation Center and rental vehicles for the CATAguides program.

6 Entire line item relates to ADP fees for payroll processing.

7 Entire line item relates to Brinks fees for armored courier service and actuarial service fees.

8 Entire line item relates to Plante Moran for audit fees.

9 Line item includes technology programing and consulting services.

10 Line item includes window cleaning, snow removal and landscaping services. Janitorial services were reclassified to Customer Experience in FY 2023.

11 Line item includes all contracted services other than window cleaning, snow removal and landscaping.

12 During FY 2023, the "Unallocated" Department was eliminated. Budgeted expenses previously considered "Unallocated" were reclassified to other departments in the FY 2023 and FY 2024 budgets.

13 Entire line item relates to the cost of paratransit passenger certifications.

14 Entire line item relates to communications tower rental.

15 Line item relates almost exclusively to contracted security services being provided at the CATA Transportation Center in downtown Lansing.

16 CATA self-insures much of its risk. This expense includes the cost of claims in addition to insurance policies.

17 CATA is no longer tracking purchases previously considered to be pandemic related. These budgets were either eliminated or merged with other similar supply expense items in the FY 2024 budget.

18 The vast majority of this line-item relates to the cost of mobile telephones for management and select staff.

19

Line item represents expenses that CATA incurs during the fiscal year for the Union and Administration pension plans. At year-end, CATA records changes in the liability of the plan based upon a valuation report provided by CATA's actuaries. Adjustments to the liabilities on CATA's books can cause significant swings in actual expenses for the year and were not included in previous budgets. CATA has included an estimate for the actuarial adjustment for FY 2024 that is about $2.7 million less than the FY 2023 estimate, which is the reason for the significant change in the overall amount.

20 Line item represents expenses that CATA incurs during the fiscal year for the OPEB Trust. At year-end, CATA records changes in the liability of the plan based upon a valuation report provided by CATA's actuaries. Adjustments to the liabilities on CATA's books can cause significant swings in actual expenses for the year and were not included in previous budgets. CATA has included an estimate for the actuarial adjustment for FY 2024 that is nearly $3.3 million less than the FY 2023 estimate, which is the reason for the significant change in the overall amount.

21 Line item represents rug cleaning, car washes for admin vehicles and other miscellaneous outsourced services.

22 Represents janitorial contracts that were reclassifed from Facilities to Customer Experience during FY 2023.

23 Line item includes expenses for legal services associated with the collective bargaining agreement in addition to standard legal fees.

24 Marketing Department expenses, including advertising media, advertising production, contracted services, printing and program materials related to numerous advertising and public education campaigns developed and managed by CATA's Marketing Department.

25 Certain types of expenses are not eligible for reimbursement by either federal or state operating assistance. CATA tries to limit the amount of ineligible expenses that it incurs in any fiscal year.

26 This entire line item relates to temporary help assigned by the Planning & Development Department to perform ridership surveys.

27 Maintenance costs are allocated based upon the number of work hours associated with the work orders for each line of business: fixed route (large buses), paratransit (small buses) and administration (service vehicles).

28 Based upon extensive analysis, including review of information provided by the U.S. Energy Information Administration, CATA believes that fuel prices will remain fairly constant in fiscal 2024 after having risen sharply in fiscal 2022 and 2023.

29 This line item represents the cost of replacement and maintenance parts for CATA's fleet.

30 A portion of CATA's paratransit service is outsourced to Transdev.

31 All of CATA's rural service is outsourced to Transdev.

32 Assumes 93,378 service hours.

33 Assumes 36,313 service hours.

34 CATA partially self-insures medical costs for its employees and retirees.

35 Training staff that was previously classified in the Safety Department was reassigned to the Operations Department for FY 2024.

36 Represents temporary employee who transitioned to permanent employee in FY 2023.

37 Increase anticipated due to significant amount of new employees planned.

38 This line consists mainly of drug and alcohol screening tests, which are required by FTA.

39 CATA's recent experience with increased worker's compensation claims led to a significant budget increase for FY 2023.

40 Increase is due to the signing bonus that was included as a part of the ATU agreement that was ratified in November 2022.

41 Amount reclassified from Professional and Technical Service to Contracted Services in FY 2024.

42 Amount reclassified from Advertising Media and Production to Dues and Subscriptions in FY 2024.