C-TRAN Budget Factors Streamlining the Organization
And Service Reduction Implementation
For immediate release: February 3, 2005
Vancouver, WA: The proposed 2005 Budget will be considered by the C-TRAN Board of Directors at its regular Board meeting scheduled for Tuesday, February 8, 2005 at the Fisher’s Landing Transit Center. The Board meeting will begin at 5:15 p.m. and will be preceded by a workshop on the 2005 Budget at 4:30 p.m.
C-TRAN’s 2005 Budget assumes the continuation of current service levels until September 25 of this year, at which time the service reduction plan approved by the Board in December 2004 will be implemented. The following highlights just a few of the adjustments in the proposed 2005 Budget:
- 11.47% decrease in salaries and wages ($1.6 million in savings)
- 7.88% decrease in benefits ($0.6 million in savings)
- 7.92% decrease in net expenses ($2.2 million in savings)
An important contributor to C-TRAN’s reduced 2005 Budget was the realignment of the organization that occurred in January 2005 when five of C-TRAN’s existing departments were consolidated into three. This resulted in the elimination of 14 management/administrative positions, including 2 director positions. By moving forward on these changes now rather than waiting for the full service reductions in September, C-TRAN will save an additional $270,000 in salary and benefits associated with these positions. In addition, the existing management staff voluntarily agreed to not receive a cost-of-living or merit increase in 2005, which means an additional savings of $68,000 will be realized.
The total number of budgeted positions at C-TRAN will be reduced from 389 to 226 positions on September 25 of this year due to the implementation of the service reduction plan.
C-TRAN’s projected 2005 revenue of $23.2 million is slightly higher than the $22.9 million budgeted in 2004. This is due in part to the proposed 2005 fare increase, which will also be considered by the Board at its February 8 meeting. The projected revenue assumes a decline in ridership expected as a result of both the proposed fare increase and the September service reduction.
C-TRAN’s net expenses in 2005 are budgeted at $26.1 million, which is 7.92 percent below 2004’s budget of $28.3 million. This factors both the organizational realignment as well as the major service reduction in September. The following graph highlights the projected 2005 operating expenses and revenues by month:
“C-TRAN’s 2005 Budget reflects the tough decisions made by the Board of Directors, who have invested tremendous time and energy to achieve a balance with the challenging issues C-TRAN is faced with,” said Lynne Griffith, C-TRAN’s Executive Director/CEO. “The agency will expend no less energy in seeking a balance in its budget, which must match the cost of providing service with the revenue available to support those services, and an 8 percent reduction in the agency’s costs is a good start.”
Following the elimination of half of its tax revenue in 2000, C-TRAN cut service to rural Clark County, implemented two fare increases (with a third planned for this year) and redirected its capital reserves to pay for current service levels. Capital reserve funding available to support the operation will not be available after 2005. Last year C-TRAN asked voters in Clark County to approve a 0.3 percent local sales tax increase, which would have restored the funding C-TRAN lost in 2000. The ballot measure did not pass, which prompted the Board to approve a Service Reduction Plan in December 2004 that eliminates 46 percent of C-TRAN’s service on September 25, 2005. The action approved by the Board in December also calls for the agency to:
- Solicit public input and adopt a new fare increase in early 2005;
- Realign the organization from its existing five departments into three;
- Freeze all management salary increases for 2005; and
- Develop and adopt a new service and taxing boundary for C-TRAN.
C-TRAN is Clark County’s public transit system and provides 27 bus routes throughout the county and downtown Portland. In 2003, C-TRAN provided 6.91 million passenger trips.