MOUNT VERNON — A new fund within Knox Area Transit’s budget will increase transparency and streamline the reporting process.
The Knox County commissioners on Tuesday approved a resolution asking the state to create a Reserve Transit Fund. The fund aims to provide a safety net for unforeseen budget shortfalls and a local match for grants.
The fund balance equals four months of average recurring operating costs. For KAT, that is $150,000.
In addition to creating the fund, KAT created a transit reserve policy.
County Administrator Jason Booth said creating the fund and the policy formalizes something KAT already does.
The Ohio Department of Transportation requires KAT to file quarterly reports. However, the current reporting process is cumbersome because the reserve money is co-mingled with other money in KAT’s general fund.
“Before, the $150,000 was in the cash balance fund. The issue has always been since it’s co-mingled, it’s been hard to report to ODOT,” Booth explained.
“It really is best practice to have it in its own fund. Now, the $150,000 can go into the reserve fund. Once it’s in its own fund, it’s easier to report to ODOT.”
KAT will fund the reserve transit fund with surplus operating funds, the main source of which will be excess contract revenue.
Contract revenue includes KAT’s agreements with Kenyon College for the Kenyon shuttle and Knox County Job & Family Services for the NET program (Non-Emergency Transportation).
Accessing the Reserve Transit Fund
Transit Director Bethany Celmar must get commissioner and ODOT approval to access the reserve fund.
Approved expenditures include one-time expenses such as staff development or investment in infrastructure. The primary use, however, is for a local match.
“Almost everything KAT gets has a local match. We’re running out of local match,” Booth said.
For example, KAT’s share of new buses is $25,000 per bus, and the match for new software is $20,000.
Booth said ODOT approved funding for new bus wraps to support KAT’s rebranding initiative, but the project also requires a local match.
“Every quarter it gets looked at. At the end of March, Bethany [Celmar] reconciled the report and sent ODOT all of the expenses,” Booth explained.
“ODOT determines what they are going to reimburse us for. That’s the money we use for operating expenses in April, May, and June. So we’re always working back.
“We’re stuck in that financial cycle,” he continued. “We’re trying to get ahead by renegotiating and getting our contracts in place.”
Celmar is also exploring other potential contract revenue streams such as with businesses and care facilities.
Water and wastewater
Water and Wastewater Superintendent Jeff Pickrell reports ongoing work at the Pleasant View Acres pump station. He expects a control panel to arrive this week.
“That is kind of the last big piece to be installed,” he told the commissioners.
The contractor’s agreement called for “substantial completion” by March 31. That did not happen for several reasons.
In March, Pickrell said three reasons were valid and agreed to extend those deadlines to June 15. However, the contractor has been paying $600 a day since April 1 because the company did not complete the other work on time.
That equates to $30,000 thus far on a $2 million-plus project.
The Valley View project is also waiting on a control panel. Pickrell said staff cannot operate the generator because they do not have a control switch.
“We’re still holding back a substantial amount of payment. If [the company] cannot provide it, we can purchase it,” he said.
Regarding a recent blowout in Apple Valley, Pickrell said a 62-inch pipe had a crack at the bottom. Crews had a difficult time finding the leak. In terms of volume, the pumps were pumping 875 gallons a minute, and the tank was still empty.
Miscellaneous
•The improvement effort at the rear of the service center should go out to bid in the next few days. The architects revised initial plans to reduce costs.
•Modern Builders is choosing the replacement subcontractor for the window installation project at the service center.
•Several county offices requested ADA entry buttons at their public entrance. The installation cost is around $27,000. Booth will order the equipment, and work will be done this year.
