If this is the best we can do, we need to fire the lot of them and replace them with high school graduates.
Dear C-Tran Board Members,
In reviewing C-Tran’s budget (which will be proposed to you today during the working session); I noticed that on page 26 of your packet (“Cash and Investments” page), that C-Tran is attempting to project their ending cash balance as of December 31, 2014. In doing so, they have budgeted for net revenues in 2013 and 2014 as well as the self insurance and work capital obligations for the next two years.
However, they are budgeting 5 years of capital expenditures (instead of just 2) – a total of $33.8 million.
If you look at Page 25 of your packet, you can see that 2013/2014 capital expenditures are only $13.6M. As such, the cash and investments page on page 26 should be as follows:
Estimated Cash and Investments, January 1, 2013.....$ 48,500,000.00
Plus 2013-2014 Budget Net Income.................................6,256,413.00
Less Proposed Capital Budget 2013/2014.....................(13,680,142.00)
Less: Required Minimum Reserves:
Working Capital (Cash Flow)........................................(10,959,148.00) Self Insurance..................................................................(1,034,883.00)
Estimated Cash & Investments at 12/31/2014........$ 29,082,240.00
As you can see, the additional capital expenditures in 2015-2018 are artificially decreasing the estimated cash balance at 12/31/2014 by more than $20 million, making it appear as if C-Tran is out of money three years before that actually happens (and without the benefit of offsetting those capital expenditures in future years with future revenues).
Because public comment is not generally allowed during work sessions, I wanted to point this out to you in advance of your meeting. I have attached the two pertinent pages of the budget to this email for your information.
Thank you for all you do.
Best regards,
Tiffany
Why do they do garbage like this to us?
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