Scattered thunderstorms early, then mainly cloudy after midnight. Low 76F. Winds NE at 5 to 10 mph. Chance of rain 60%..

Scattered thunderstorms early, then mainly cloudy after midnight. Low 76F. Winds NE at 5 to 10 mph. Chance of rain 60%.

Environmental sustainability is one of the goals reflected in Pinellas Suncoast Transit Authority’s fiscal year 2023 budget, which includes funding for 60 zero emission buses.

Environmental sustainability is one of the goals reflected in Pinellas Suncoast Transit Authority’s fiscal year 2023 budget, which includes funding for 60 zero emission buses.

ST. PETERSBURG — Pinellas Suncoast Transit Authority’s fiscal year 2023 draft budget has a surplus of more than $14 million, according to a report presented to the board June 29.

According to Chief Financial Officer Deborah Leous, the surplus includes COVID 19 funding, which is being used to balance the agency’s budget in both FY 2022 and 2023. The draft budget is balanced and totals $111.6 million.

Plans call for staff to continue to review the budget over the summer so a final version will be ready to present to the PSTA in August. Public hearings will be scheduled in September with final approval set in time for the new fiscal year, which starts Oct. 1.

According to Leous’ budget summary, PSTA’s surplus is due to some favorable financial conditions. For example, property tax revenues are increasing 12.9%, providing an additional $7.9 million over the projected FY 2022 year-end.

In addition, PSTA has $25.4 million from the COVID 19 Federal Transit Administration Relief funds, as well as operating funds from the Florida Department of Transportation that were saved while COVID 19 monies were used.

Beach trolley revenue is budgeted at 6.67% more than the projected FY 2022. State grant revenue is budgeted at 73.5% more; however, federal grant revenue is expected to be down 20.28%.

Still there are challenges. PSTA’s budget remains balanced although it has absorbed increases in the cost of diesel fuel and gasoline in part due to savings from the electric buses being added to the fleet. PSTA’s fleet currently has 183 diesel buses, 80 hybrid-electric, six electric and 25 are fueled by unleaded gasoline.

Labor costs are up 16.6% with salaries budgeted at $45.1 million. The agency has been able to budget wage increases for union workers and PSTA’s bus operators are the highest paid in the state. Administrative employees received a pay adjustment and the goal is to bring them all up to market rate in FY 2023.

Additional challenges include the cost of health insurance, which is increasing by 4.5%. Fringe benefits are budgeted to increase 14.66% and services up 6.56%.

Bus parts are up 8.5%, which is being addressed using bulk purchases. Supplies are expected to cost 5.44% more and utilities at 18%.

PSTA’s five-year capital plan is $154.5 million with $43.8 million budgeted for FY 2023. The budget includes an increase in Federal Transit Administration’s Formula funds due in part to the agency’s commitment to clean transportation.

PSTA has funding for 60 zero emission buses and has budgeted for 13 electric buses in FY 2023 along with a capital lease for support vehicles. The agency also is working on an electric infrastructure project to support the next electrical vehicles, as well as the addition of solar panels for its campus.

Reserves are set at $39.5 million.

PSTA is the state’s seventh largest out of 35 transit systems. It has the fourth highest ridership and fleet size.

The next big accomplishment is the launch of SunRunner scheduled this fall.

In other business, the board:

• Approved FY 2023 employee health benefits, including a two-year contract with three one-year options for medical, prescription, dental, vision, life and accidental death.

• Heard a report on the benefits of electrification.

• Heard a report on FTA funding formula.

Suzette Porter is TBN’s Pinellas County editor. She can be reached at sporter@tbnweekly.com.

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