Transit Agency Status FY 2011 12 Current Financial

Transit Agency Status FY 2011 -12 �Current Financial Position �Current Operations �Service Statistics/Trends �Funding Statistics/Trends �Other Information/Assumptions �Capital Status Review 1

Current Financial Position: Reserves as of June 30, 2011 (preliminary audited numbers) Source Balance PTAF ASG BSG $ 111, 073 Section 1513 $ 228, 200 Local $ Federal 5311 ** $ 20, 030 11, 210 ** represents carryover monies identified in an State review for the 2004/05, 2005/06 and 2006/07 fiscal years. 2

Current Financial Position: Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing) Name of Financial Institution Amount of Available Credit Interest Rate Current Credit in Use Northwest Savings Bank $ 1, 000 (line of credit) 4. 125% $ 490, 772 Ally (vehicle financing) 5. 34% $ 15, 736 n/a 3

Current Financial Position: Accounts Payable – Past due 90 days and over Vendor Amount Past Due Estimated Pay Date No significant past due payables over 90 days Accounts Receivable – Past due 90 days and over Program/Agency Amount Past Due Date Requisitioned Estimated Pay Date No significant past due receivables over 90 days 4

Current Operations: Staffing Level Contract Provisions Healthcare Pension Fuel Fares Other major factors producing cost increases above inflation Cost Savings Initiatives 5

Staffing Level/Org Chart Provide a current organization chart with vacant and new positions. Include a justification for new planned positions. Attachment 6 A is our organization chart. A new position, mechanic, was added July 1, 2011. This was done with the building completion of our maintenance bays. This was done to provide a much improved response for maintenance along with significant costs savings. We have no other vacant or new positions. From time to time there is a turn over of drivers due to retirement, change of job etc. 6

Employee Provisions Term of current ____ to _____ Drivers Current 2012 -13 Starting wage 10. 50 Top wage 18. 50 18. 75 Average wage 12. 85 13. 10 Wage increase See attachment Job Classification Number- Full Time Drivers 11 Mechanics 1 Director 1 Fiscal Officer 1 Bldg. Maintenance Program Assistant Number-Part Time 7 1 2 1 7

Important Contract Provisions Use of part-time employees – Part time drivers used for extra runs and to fill in for full time drivers not working. Number/percent of “split shift” drivers - None Overtime – Only as needed. Overtime hours minimal – average less than ten hours per week. Outsourcing – Auditor – Snow Plowing – Drug & Alcohol Testing Lawyer Other 8

Healthcare Union Basic Coverage Employee Contributions Co-Payment Non-Union Current $ 319, 898. 64 FY 2012 -13 $ 191, 939. 18* Current N/A FY 2012 -13 N/A Describe any proposed changes and the estimated financial impacts. *We are looking to have our insurance through SAFTI and save approximately 25% on insurance. 9

Pension Union Employee Contributions Non-Union Current $ 22, 315. 20 FY 2012 -13 $ 24, 546. 00 Current Minimum Age to Qualify for Retirement FY 2012 -13 N/A Minimum Number of Years to Qualify for Retirement Current N/A FY 2012 -13 N/A Minimum Number of Years to be Vested Current N/A FY 2012 -13 N/A 10

Pension: Describe any proposed changes and the estimated financial impacts. N/A Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension. The pension plan is available for our full time employees. They must contribute 1% of there gross pay and the Authority matches it 3%. 11

Fuel: Current Cost per Gallon Contract rate or market rate? Gasoline $3. 55 Diesel $3. 99 Terms of contract (if applicable) N/A United refining Company is located in the City of Warren where they own over 90% of the fueling stations. As such we use them as a sole source. For this United Refining does administer our fuel tax credit program plus give us a volume discount on our bill. Projected Cost per Gallon and Basis for Projection Contract rate or market rate? For the short term future we are projecting market rate increase of $. 50/gallon per year. Vary difficult to anticipate what the future cost of fuel will be due to worldwide events. Terms of contract (if applicable) 12

Fixed Route Fares: Fare Type Date of Last Increase Current Amount Date of Planned Increase Amount After Planned Increase Base Fare Nov. 1998 $. 75 2015 $ 1. 00 Transfers N/A Free N/A FREE Zone Fares N/A N/A Other multi-ride tickets/passes (Add as appropriate) Discount ride punch –ticket savings of 10% Provide average fare: Current Amount Future Amount $. 68 2015 $. 93 Describe fare policy Adult fare $. 75, Children 6 -12 years $. 40, children under 6 free, transfers free, children to/from school or pools $. 25, seniors ride free 13

Shared Ride Fares: Date of Last Fare Increase August 30, 2010 Current Average fare $ 13. 50 per trip Sponsorship arrangements - Our local sponsor is Experience Incorporated. They are the umbrella agency for the Warren-Forest Area Agency on Aging. Experience Incorporated pays all of the 15 percent match minus the payment of $. 25 per day made from the senior rider. Planned Changes Date of planned increase – FY 2013 -14. It is possible for fares to hold steady if our trips increase and our health care costs drop due to participation in a pool program thru SAFTI. Estimated average fare - $13. 50 to $14. 00 Sponsorship arrangements – Match for seniors will probably increase from $. 25 per day to $. 25 per trip. This will decrease The Experience Incorporated match Slightly downward. Describe Fare Policy – The fare structure is based on concentric zones. The fare is based on the number of zones traveled. A two tier fare structure is utilized, door to door service and designated stop to designated stop service. The fare for a door to door trip in zone 1 is $ 13. 50. The fare for a designated stop to designated stop in zone is $3. 50. 14

Other Major Factors Producing Cost Increases Beyond Inflation: Factors Current Amount Projected Future Amount Explanation Example: Subcontracts Example: Employee Retention (Add others or change as appropriate) Fuel Health Insurance Premiums Gasoline $ 3. 49/gal. Diesel $ 3. 99/gal Gasoline $3. 99/gal Diesel $ 4. 49/gal Unpredictable world market conditions for oil. Could increase by 15 -20 percent unless pool program can be developed thru SAFTI. 15

Cost Savings Initiatives: Initiative Current Cost Planned Action and Implementation Date Projected Savings Step system in place for up to 30 years of service 34% increase per year. Put a cap in place for wage/salary increases at 30 years of service. No increase in wage/salary after 30 years of service. $ 1, 000 a year for employees reaching 30 years of service. Example: Travel Limitations Example: Compensation Changes (Add others or change as appropriate) In 2012 health insurance will be covered thru SAFTI as a self insured group. 16

Fixed Route Funding FY 2010 -11 unaudited FY 201112 FY 2012 FY FY -13 2013 -14 2014 -15 Total Operating Expenses $700, 762 858, 218 840, 000 850, 000 Total Operating Revenue $ 37, 255 56, 500 57, 000 57, 300 Total Operating Deficit (663, 507) (818, 218) (783, 000) (792, 700) Federal 100, 265 100, 825 105, 000 State 531, 769 684, 346 649, 128 654, 653 Local including advertising 31, 473 33, 047 663, 507 818, 218 783, 000 792, 700 Subsidies: Total Funding 17

Fixed Route Service Statistics/Trends: Fixed Route FY 2012 -13 FY 2013 -14 FY 2014 -15 182, 963 Rev. Veh. Hours 12, 446 12, 400 Passenger Trips 68, 195 66, 000 66, 200 66, 400 66, 600 Pass. Trips/Hour 5. 3 5. 4 Op. Cost/Hour 56. 30 69. 21 67. 74 68. 54 Op. Rev. /Hour 3. 00 4. 55 4. 59 4. 62 Op. Cost/Trip 10. 63 13. 00 12. 68 12. 65 12. 76 Rev. Veh. Miles FY 2010 -11 183, 736 FY 2011 -12 Describe Any Proposed Changes ACT 44 PERF. MEASURES Describe Any Proposed Changes 18

Shared Ride Funding FY 2010 - FY 2011 - FY 201211 unaudited 12 13 FY 2014 -14 15 Operating Expense 501, 814 536, 952 525, 000 530, 000 Passenger Revenue 4, 783 7, 670 7, 700 7, 800 8, 000 Lottery 380, 309 405, 883 402, 000 MATP 64, 945 64, 285 65, 000 67, 000 Other 71, 248 59, 114 50, 300 50, 200 53, 000 Balance 19, 471 0 0 19

Shared Ride Statistics/Trends Shared-Ride FY 2010 -11 FY 2011 -12 FY 2012 -13 FY 2013 -14 FY 2014 -15 Total Veh. Miles 167, 253 162, 400 162, 600 163, 000 164, 000 Cost per Mile $3. 00 3. 30 3. 22 3. 23 Total Veh. Hours 14, 800 14, 850 14, 900 15, 050 Cost per Hour 33. 90 36. 15 35. 23 35. 00 35. 21 Total Pass. Trips 40, 379 40, 300 40, 400 40, 500 40, 600 Cost per Trip 12. 49 13. 32 12. 99 12. 96 13. 05 Rev. per Trip 12. 97 13. 32 12. 99 12. 96 13. 05 Trips per Hour 2. 7 20

Other Information/Assumptions: Fixed-Route – The three fixed routes were realigned two years and people are now familiar with these route changes. This was done to create greater efficiency and reduce route duplication. The new Allegheny Community Center, located on the second floor of our transit building is becoming a gathering point in downtown Warren. The third positive issue is the status of the Warren Mall. The mall went through bankruptcy and has been sold to a new developer. These three items will hopefully cause a slow steady increase in ridership. The negative issue for Warren County is the continuing poor economy. A poor economy will obviously affect ridership in a negative fashion. No jobs means reduced work related trips and no jobs means reduced spending for general shopping and reduced shopping trips. Shared Ride – We assume the new Allegheny Community Center will draw seniors to this facility and will therefore generate additional ridership on the Shared Ride buses. A negative factor with this new center is that three senior centers were closed as part of this new Allegheny Community Center. This may create a wash with no significant change in ridership to the nutrition sites. For the first time seniors and escorts are required to pay $. 25 per day for transportation service. A future challenge will be to obtain the necessary local match for all of the senior riders from our program sponsor, Experience Incorporated. 21

Capital Status Review Fixed-Route –Our current capital project is an upgrade of our two-way radio system to meet new FCC regulations regarding narrow bandwidth radio spectrum. A new fleet of five Gillig buses were purchased two years ago. We do not anticipate the need to purchase any buses for at least 12 to 15 years. We recently completed the rehabilitation and construction of our intermodal transit facility at a cost of seven million dollars. This will satisfy any building/facility needs for nearly 40 years. We therefore have no new capital needs for at least 12 -15 years. We plan on replacing our fleet in 2021. Shared Ride – Our current upgrade of our two-way radio system includes the Shared Ride fleet. Our current capital project (FY 11) is for the replacement of two buses. Over each of the next three years we plan on replacing two buses in each of these years as noted on the Northwest TIP for FY 12, FY 13 and FY 14. The long range TIP calls for the following bus replacement – FY 15, FY 16, FY 17 and FY 18, two buses to replace in each of these years. For FY 2220, FY 2224, FY 2228 and FY 2232 four buses to be replaced in each of these years. The recent completion of our transit facility means no building/facility needs for nearly 40 years. This is not to say that we may have some small unforeseen capital projects through this time period affecting both the Shared Ride and Fixed Route programs. 22