BSTD-FY21of traffic: Big Sky Resort; Moonlight Basin; Spanish Peaks Resort; and, Yellowstone Club....

David Kack Big Sky Transportation District

Printed On: 28 April 2020 FY21 Application for Funding 1

BSTD-FY21

FY21 Application for Funding

Big Sky Transportation DistrictTBD TBD PO Box 161104Big Sky, MT 59716

[email protected]: 406-995-6287M: 406-995-6287

David Kack PO Box 161104PO Box 161104Big Sky, MT 59716

[email protected]: 406-995-6287M: 406-994-7526



Application Form

Guidelines & Applications Tips

Guidelines:

Please direct questions or concerns to Jenny Muscat, Operations Manager, at [email protected] or

406-995-3234

Please only provide the information requested within this application

o Supplemental materials will not be accepted or included in the final board review

Blackmail or bribery of staff or board members is strictly prohibited and will result in disqualification

Please proofread your application for grammar and validate your data prior to submission

When applicable, group themed initiatives into larger project/program requests

o You can apply for funds for up to 8 projects/programs

o Please group all operational (payroll, training, maintenance, etc) costs into 1 project and

individually list capital projects or programs

Avoid organizational jargon and use layman's terms to minimize follow up questions

You may SAVE the application at any time and return to it

Final submission happens upon clicking 'SUBMIT'

The deadline for applications is Thursday, April 30 @ 11:59pm (Mountain Time)

Acknowledgement*

I have read and understand the instructions and guidelines for this application

Document Uploads:

You may be required to upload the following documents in this application. We recommend saving these files in one location on your computer for easy upload.

990 Form

Auditor's Report

Operating Budget Current Fiscal Year

Profit & Loss Budget vs Actual Previous Fiscal Year

Balance Sheet Previous Fiscal Year

You will be asked to download the '3-Year Financial Forecast' and complete both worksheets, 'Itemized Expenses &

Revenues' AND 'Reserves & Cash Flow,' save and upload in the Financial Information section below.

Use the links below to download your preferred format. (We suggest using EXCEL as formulas are set to populate

totals and percentages for you.)

EXCEL (3-Year Financial Forecast)



WORD (3-Year Financial Forecast)

PDF (3-Year Financial Forecast)

Background Information

Please complete the following section with information about your organization:

Request Title*

Please enter your '"Organization Acronym"-FY21' in the following format. For example: BSRAD-FY21

BSTD-FY21

Fees*

Does your organization charge any dues or fees? If yes please explain in the next question.

Yes

Explain Fees

If applicable, please explain any fees or dues your organization charges and what portion of your total revenue this

accounts for:

The Big Sky Transportation District charges a fare on the Link Express service between Big Sky and Bozeman. The fares account for approximately 11 percent of annual revenue.

FTE Count*

Please list the number of full-time employees in your organization. If you have none please enter 0:

12

PTE Count*

Please list the number of part-time employees in your organization. If you have none please enter 0:

2

Volunteer Count*

Please list the number of volunteers in your organization. If you have none please enter 0:

0



Future Personnel Growth*

Please explain any predicted 3-year growth to the numbers listed above (FTE, PTE, Volunteers). And explain if you

anticipate Resort Tax funds will support this growth:

The personnel (FTE/PTE) numbers include contracted personnel, as BSTD has only one true employee, the General Manager. It is anticipated that as the Transportation District is able to obtain additional support/funding, that the number of FTEs may grow by two or three over the next three years.

Organizational Partnerships

Please explain any other organizations you have partnered with and provide details for any ongoing strategic

partnerships:

Key partners that BSTD works with in addition to BSRAD are mostly the larger employers and generators of traffic: Big Sky Resort; Moonlight Basin; Spanish Peaks Resort; and, Yellowstone Club. BSTD also works with private transportation firms (Karst Stage, etc.), as well as with BSCO and other organizations, such as the Big Sky Chamber, to ensure that the community is addressing as many transportation/mobility needs as possible. All partners provide input as to how to improve our services.

Number of Projects/Programs*

How many projects/programs are you requesting Resort Tax funds for?

Applicants can apply for funds for up to 8 projects/programs. When applicable, please consider grouping themed

initiatives into larger project/program requests.

2

For applicants with multiple projects please note that the application will expand and create additional

project/program information sections for each project you are requesting funding for based upon the number

entered above. Please enter your projects in order of highest to lowest priority as you complete the application.

Forecasted Request FY21*

In last year's application, what amount did you predict you would be requesting for this year (FY21)?

If you did not apply last year please enter 0.

Please reference question #5 "Total Cash Flow 3-Year Requirement" on last year's application to gather this data.

$1,000,000.00

Total Funds Requested FY21*

Please enter the total amount of funds your organization is requesting for all projects/programs for this year

(FY21):

Please ensure that all requests for all projects add up to this total, the form does not calculate a total for you.

$900,000.00



Explain Variance

If applicable, please explain any differences in your current request vs the amount entered on last year's

application:

We are being realistic with how much service we can provide, based on the equipment we have and the number of drivers we (Karst Stage) can hire. Further, our request is $200,000 less that we were anticipating, due to some CARES Act funding that we are able to utilize. That is why our request for operations is $650,000. However, we have the opportunity to apply for Federal funding for a bus barn, and need $250,000 in local match to secure a Federal grant of $2,210,000.

State your estimated payment request schedule FY21. Amounts should add up to Total Funds Requested FY21.

For any month you are NOT requesting funds please enter 0.

Important: July 15, 2020, will be the first day a payment can be requested. Funding will not be available until a

contract has been signed and the Award Orientation has been completed.

July 2020 Estimate*

$0.00

August 2020 Estimate*

$65,000.00

September 2020 Estimate*

$65,000.00

October 2020 Estimate*

$65,000.00

November 2020 Estimate*

$65,000.00

December 2020 Estimate*

$65,000.00



January 2021 Estimate*

$65,000.00

February 2021 Estimate*

$65,000.00

March 2021 Estimate*

$65,000.00

April 2021 Estimate*

$65,000.00

May 2021 Estimate*

$315,000.00

June 2021 Estimate*

$0.00

When projecting future requests, please ensure these numbers are as accurate as possible. While calculating

these numbers keep the following in mind:

Economic Growth

Staffing Changes

Changes in Community Needs

Future Funding Request FY22*

What is your forecasted Resort Tax request for FY22 (7/1/21-6/30/22)?

$950,000.00

Future Funding Request FY23*

What is your forecasted Resort Tax request for FY23 (7/1/22-6/30/23)?

$1,000,000.00



Mill Levy Authority*

Does your organization have mill levy authority?

Yes

Tax Levy Information

For applicants with mill levy authority, please provide the following:

District Map*

Please upload a map of your District's boundaries:

BSTD District Map.pdf

Taxable Value*

What is the current taxable value of your District?

$32,000,000.00

Mill Levy Rate*

If applicable, what is your District's current mill levy rate?

If you do not have a mill levy please enter 0

$0.00

Budgetary Breakdown

Using the information above, provide a detailed budgetary breakdown of the potential tax burden per $100,000

value, for property owners within your District if mill levy authority would be used to fund this project rather than

Resort Tax funds:

You may upload an additional file if needed

BSTD FY21 Mill Levy Information.docxSee attached.



Public SafetyPublic Safety*

Does your organization provide a public service that responds to emergency calls?

No

Financial Information

Please complete the following questions and upload all available documents for your organization; if a document is not available please explain why:

3-Year Financial Forecast*

Please download the '3-Year Financial Forecast' and complete both worksheets: 'Itemized Expenses & Revenues'

AND 'Reserves & Cash Flow.' And save the completed workbook, and upload your '3-Year Financial Forecast.'

Use the links below to download your preferred format. (We suggest using EXCEL as formulas are set to populate

totals and percentages for you.)

EXCEL (3-Year Financial Forecast)

WORD (3-Year Financial Forecast)

PDF (3-Year Financial Forecast)

BSTD 3-Year Financial Forecast (FY21).xlsx

990 Form

Please upload a copy of your organization's most recently completed 990 form. If you are unable to provide a 990

form, briefly explain why:

The Big Sky Transportation District is an Urban Transportation District as noted in Montana Code Annotated (MCA 7-14-201 through 7-14-246). The District does not have to file a 990.

Auditor's Report

Please upload a copy of your organization's most recently completed Auditor's Report. If you are unable to provide

an Auditor's Report, briefly explain why:

BSTD FY19 Audit.pdfBSTD FY19 Audit Report uploaded.

Operating Budget Current Fiscal Year

Please upload a copy of your organization's complete operating budget for your current fiscal year. If you are

unable to provide this document, briefly explain why:



BSTD FY 20 Budget.xlsx

Profit & Loss | Budget vs Actual Previous Fiscal Year

Please upload a copy of your organization's Profit and Loss, Budget vs. Actual from your previous completed fiscal

year. If you are unable to provide this document, briefly explain why:

BSTD FY19 P&L & Budget vs. Actual.XLS

Balance Sheet Previous Fiscal Year

Please upload your organization's balance sheet from your previous completed fiscal year. If you are unable to

provide your document, briefly explain why:

BSTD FY19 Balance Sheet.XLS

Funding Sources*

Please explain your approach and sources for funding, including what part Resort Tax currently provides, among

other funding sources. Additionally, describe your long-term plan to supplement Resort Tax Funds:

While the Resort Tax is the largest source of "local funding", the largest source of funding comes from the Federal Transit Administration (FTA). The FTA funding is administered by MDT, which adds in almost $10,000 of state funding. For FY21, the sources of funding are anticipated to be as follows: FTA/MDT $1,018,892; BSRAD $650,000; Fare Revenue $262,825; Gallatin & Madison Counties $90,000 each; Big Sky Owners Association $10,000; and misc. $5,000. The District will also use some of its reserves in FY21 for operational expenses.

If the bus barn project were to proceed, $2,210,000 would come from Federal funds, with $250,000 requested from Resort Tax, and $140,000 coming from the Transportation District's reserves. This may change, however, as CARES Act funding (100% Federal funding) may be available for the bus barn project.

Strategic Plan/Long-Term Plan*

Does your organization have a strategic plan/long-term plan? If yes, please upload in the next question.

Yes

Strategic/Long-Term Plan Explanation

If your organization has a strategic/long-term plan please upload ONLY the executive summary/overview:

I.E 3 year plan, 5-year plan, etc...

BSTD FY19-FY24 Draft Strategic Plan.doc



Project/Program 1 Information

Please complete the following section pertaining to your organization's 1st priority project/program that you are requesting funds for. There will be subsequent sections to complete for organizations with multiple projects. Please enter your projects in order of highest to lowest priority as you complete the application.

Project/Program 1*

Please enter the name for your 1st priority project/program:

BSTD Operations

Amount Requested | Project/Program 1*

State the amount you are requesting for project/program 1:

$650,000.00

Percent of Total | Project/Program 1*

What percent of your total ask does this project/program represent?

Please enter percentages as numbers only, special characters will not be accepted. I.E. 50% should be entered as

50.

72

Category | Project/Program 1*

Please select the category that best pertains to this project/program:

Infrastructure

Category (Other) | Project/Program 1

If you selected "other" in the previous question, please explain the nature of your project/program:

While we selected Infrastructure, BSTD's public transportation services could easily could easily fit into other categories such as Community Development & Social Services, Recreation & Conservation, or Tourism & Economic Development.

Our Big Sky Strategies | Project/Program 1*

Please select which strategies outlined in the Our Big Sky Community Vision and Strategy this project/program is

working to achieve. Select all that apply:

Improve and maintain infrastructure



Support high-quality community & emergency servicesSupport & enhance social servicesSupport independently-owned small businessesPreserve a cohesive, but distinct character throughout the communityProvide transparency/engagement & governance optionsEmbrace Big Sky's DNA as a destination, born out of a visitor economyExpand & enhance pathways & trail connectionsProvide all-season recreational opportunitiesIncrease transportation options to serve recreation & mobilityPreserve & enhance public access to public lands & waterwaysImprove & develop new park spaces & gathering spacesProtect wildlife habitat & natural resourcesProtect & enhance our water resourcesWork to become a sustainable & resilient community

Strategy Explanation | Project/Program 1*

Briefly explain how your project/program is meeting the needs of the strategies selected in the previous question:

Transportation (mobility) is what allows us to do what we want to do, whether that be to go to school, work, a doctor’s appointment, or to go grocery shopping or out to dinner. If we do not have mobility, we do not have much of a life. In order safely, economically and sustainably get people to and around Big Sky, we need an effective and efficient public transportation system.

We do not want to clog Big Sky’s roads, trail heads and community with cars, what we want is a multi-modal system that allows people to go where they want to go, when they want to go, without everyone jumping in their own car. It is vital, therefore, that the community continues to invest in Skyline’s services, so we can have the community we want, with the mobility we need.

Other Community Needs | Project/Program 1

If applicable, please explain any community needs or priorities that this project/program is assisting with that are

not outlined in the Our Big Sky Plan:

Community Target Segment | Project/Program 1*

Identify the community target segment(s) that applies to this project/program. Please select all that apply. You can

provide more explanation if needed in the next question:

BusinessesChildren/FamiliesProperty Owner/HOAsLocal WorkforceNon-ProfitsOutdoor RecreationalistPart-Time ResidentsResidents in Need of Financial AssistanceTourist/VisitorYear-Round Residents



More Detail Community Segment | Project/Program 1

If applicable, please provide more detail on your community target segment:

Everyone can use Skyline's services. Whether it is an employee who is commuting in from the Bozeman area, or a local who is using the bus to get to the ski hill, everyone in Big Sky can use our services to go where they want.

Schedule | Project/Program 1*

What is the schedule of this project/program? Select all that apply:

Ongoing

Schedule Explanation | Project/Program 1

If applicable, please provide more detail on the schedule of this program/project:

We hope to continue to expand our services to meet the needs of the community. With this year's support from BSRAD and others, we hope to have half-hour service between the Meadow, Town Center and Mountain during the winter season.

Additional Operating Costs | Project/Program 1*

Will the outcome of this project result in a need for additional operating and maintenance costs? If yes, please

explain in the next question.

Yes

Additional Operating Costs Explanation | Project/Program 1

If applicable, please provide more detail on how you plan to fund the additional operating and maintenance costs:

Additional service typically leads to increased maintenance costs. That has been factored into our budget.

Goals | Project/Program 1*

What are the goals of this project/program and how will they be measured?

The goals are to continue and increase service. The priority for FY 21 is to implement half-hour service between the Meadow Village Center, Town Center and Mountain Village Center during the winter season. However, this goal of increasing service may be modified based on the COVID-19 situation. The goals will be measured by whether or not the service is implemented, and to some extent, if there is an increase in ridership.

Shared Goals & Collaboration | Project/Program 1*

Are you collaborating with any other organizations or partners on this project/program? If yes, please explain in

the next question.



Yes

Shared Goals & Collaboration Explanation | Project/Program 1

If applicable, please explain any collaboration on this project/program with other organizations or partners and

your shared goals:

We work with the major employers in Big Sky, and with all interested parties (especially the Chamber and BSCO), through our BSTD Board and Transportation Advisory Committee (TAC) meetings. We need to present a Coordination Plan each year with our request for funding to the Montana Department of Transportation. Further, we receive feedback through our website, and are involved in most community meetings in Big Sky.

Community Outreach | Project/Program 1*

Please explain any community outreach that has led to the development of this project/program:

As noted above, our outreach through our BSTD and TAC meetings, as well as our involvement in most community meetings, has led us to focus on increasing the frequency of our local service this next year. This has to do with the growth in the Town Center area, and the fact that we received additional FTA/MDT funding for local transit services.

Start Date | Project/Program 1*

07/01/2020

Completion Date | Project/Program 1*

06/30/2021

Additional Funding Sources | Project/Program 1*

Does your budget include any additional funding sources for this project/program, including any matches,

assistance, or support you have received? If yes, please explain in the next question.

Yes

Additional Funding Sources Explanation | Project/Program 1

If applicable, please explain any additional funding sources for this project/program, including any matches,

assistance, or support you have received:

Additional funding comes from: FTA/MDT $1,018,892; Fare Revenue $262,825; Gallatin & Madison Counties $90,000 each; and some other miscellaneous revenue, including $10,000 from the Big Sky Owners Association. As noted, due to the CARES Act funding that is coming to BSTD, the FY21 request may even further reduced from the $650,000 requested. However, it is unknown at this time how much the funding request may be reduced. BSTD will notify BSRAD as quickly as possible about any reduced request.



Fees & Revenue | Project/Program 1*

Are there any other fees or revenue associated with this project/program? If yes, please explain in the next

question.

Yes

Fees & Revenue Explanation | Project/Program 1

If applicable, please explain any other fees or revenue associated with this project/program:

As noted previously, we anticipate receiving about $263,000 in fare revenue on the Link Express service, the service that operates between Big Sky and Bozeman, including Gallatin Gateway and Four Corners.

Project/Program 2 Information

Please complete the following section pertaining to your organization's 2nd priority project/program that you are requesting funds for. There will be subsequent sections to complete for organizations with multiple projects. Please enter your projects in order of highest to lowest priority as you complete the application.

Project/Program 2*

Please enter the name for your 2nd priority project/program:

BSTD Big Sky Bus Barn

Amount Requested | Project/Program 2*

State the amount you are requesting for project/program 2:

$250,000.00

Percent of Total | Project/Program 2

What percent of your total ask does this project/program represent?

Please enter percentages as numbers only, special characters will not be accepted. I.E. 50% should be entered as

50.

28

Category | Project/Program 2*

Please select the category that best pertains to this project/program:

Infrastructure



Category (Other) | Project/Program 2

If you selected "other" in the previous question, please explain the nature of your project/program:

Our Big Sky Strategies | Project/Program 2*

Please select which strategies outlined in the Our Big Sky Community Vision and Strategy this project/program is

working to achieve. Select all that apply:

Improve and maintain infrastructureIncrease transportation options to serve recreation & mobility

Strategy Explanation | Project/Program 2*

Briefly explain how your project/program is meeting the needs of the strategies selected in the previous question:

Having a bus barn in Big Sky will significantly improve the Transportation District's ability to provide it's Skyline public transportation services within the community. The facility in Big Sky will mean that we don't have to put 120 miles roundtrip on a bus to get the oil changed, for other maintenance, or simply to get a bus washed. Further, having our buses inside will help maintain them, as they won't sit out in the snow and cold in the winter, and in the sun in the summer. Finally, if we move to using battery-electric buses, the bus barn would give us a facility to where we could charge the buses. As Skyline begins its 15th year of service, this is a needed facility for the Big Sky Transportation District.

Finally, it is likely that the maintenance bay of the bus barn could be used by other community partners, such as the Sheriff, Fire Department, or other entities that may have to do some maintenance on larger vehicles.

Other Community Needs | Project/Program 2

If applicable, please explain any community needs or priorities that this project/program is assisting with that are

not outlined in the Our Big Sky Plan:

Community Target Segment | Project/Program 2*

Identify the community target segment(s) that applies to this project/program. Please select all that apply. You can

provide more explanation if needed in the next question:

BusinessesChildren/FamiliesProperty Owner/HOAsLocal WorkforceNon-ProfitsOutdoor RecreationalistPart-Time ResidentsResidents in Need of Financial AssistanceTourist/VisitorYear-Round Residents



More Detail Community Segment | Project/Program 2

If applicable, please provide more detail on your community target segment:

As having a bus barn will improve Skyline's operations, all of those who use Skyline's services will benefit from this project (bus barn).

Schedule | Project/Program 2*

What is the schedule of this project/program? Select all that apply:

One Time

Schedule Explanation | Project/Program 2

If applicable, please provide more detail on the schedule of this program/project:

While purchasing the bus barn will be a one-time expense, it will likely lead to a slight increase in Skyline's operating expenses, as the Big Sky Transportation District (Skyline) will need to maintain the bus barn.

Additional Operating Costs | Project/Program 2*

Will the outcome of this project result in a need for additional operating or maintenance costs? If yes, please

explain in the next question.

Yes

Additional Operating Costs Explanation | Project/Program 2

If applicable, please provide more detail on how you plan to fund the additional operating and maintenance costs:

As noted above, by purchasing the bus barn, the Transportation District will need to maintain and operate the facility. Additional funding should be available from FTA/MDT, although there will be some local match required as well.

Goals | Project/Program 2*

What are the goals of this project/program and how will they be measured?

The main goal of this project is to purchase (secure) a bus barn (bus storage facility) in Big Sky. The outcome of the project will be to improve the state of good repair of the Skyline fleet, as the buses in Big Sky will now have a place to be kept inside during the winter (and all other seasons), and buses will be able to be washed and maintained in Big Sky, and won't have to be driven to Bozeman (120 miles roundtrip) for these services.

Goals will be measured based on whether or not the bus barn is constructed and purchased, reduced mileage on the buses, and more frequently washed buses.



Shared Goals & Collaboration | Project/Program 2*

Are you collaborating with any other organizations or partners on this project/program? If yes, please explain in

the next question.

Yes

Shared Goals & Collaboration Explanation | Project/Program 2

If applicable, please explain any collaboration on this project/program with other organizations or partners and

your shared goals:

We are working with a private developer in Big Sky who will construct the facility. Further, we are communicating with the Big Sky School District, as they may be the other entity that would utilize this facility.

Community Outreach | Project/Program 2*

Please explain any community outreach that has led to the development of this project/program:

The Big Sky Transportation District has been talking to the Big Sky School District about a bus barn (bus storage facility) since 2012. This topic/project has been discussed at most BSTD Board meetings and TAC meetings since. The main factor that has kept the project from moving ahead was finding land for the facility. The on-going conversations are what led to the opportunity with the developer that may make this a reality.

Start Date | Project/Program 2*

05/01/2020

Completion Date | Project/Program 2*

05/31/2021

Additional Funding Sources | Project/Program 2

Does your budget include any additional funding sources for this project/program, including any matches,

assistance, or support you have received? If yes, please explain in the next question.

Yes

Additional Funding Sources Explanation | Project/Program 2

If applicable, please explain any additional funding sources for this project/program, including any matches,

assistance, or support you have received:

The Federal Transit Administration (FTA) will provide the majority of the funding ($2,210,000 out of $2.6 million). BSTD will use $140,000 of its reserves as well.



CARES Act funding may be a source of funding for this project, which would eliminate the need for the $250,000 in funding from BSRAD. BSTD will inform BSRAD as soon as it knows whether it needs this funding from BSRAD or not. However, the decision on this may not be until the fall of 2020.

Fees & Revenue | Project/Program 2*

Are there any other fees or revenue associated with this project/program? If yes, please explain in the next

question.

No

Fees & Revenue Explanation | Project/Program 2

If applicable, please explain any other fees or revenue associated with this project/program:

COVID-19COVID-19*

What, if any, predicted impacts of COVID-19 will directly impact your operation and request?

Based on the Big Sky Resort and Yellowstone Club closing, BSTD modified its operations as of March 23 for the remainder of the 2019-20 winter season, reducing service. Service was to switch to the Shoulder Season schedule on April 19, so less than 30 days of service was affected. It is anticipated that the Summer Season schedule will begin as scheduled on May 26.

The COVID-19 situation changed BSTD's request for FY20 funds. BSTD requested $750,000 of its $800,000 of FY20 allocation, and notified BSRAD that it would not request the remaining $50,000. Further,due to CARES Act funding that is coming to BSTD, it reduced its FY21 request for operational funding from $850,000 to $650,000, and a further reduction may be possible. Finally, the $250,000 request for the bus barn (capital) may not be needed, as CARES Act funding, which does not require local match, may be available for the bus barn. However, a decision on the use of the CARES Act funding for the bus barn may not be made until September or October of 2020. BSTD will keep BSRAD as up to date as possible on any changes to requests for funds for FY21.

Application Verification & SummaryCommunity Messaging*

Please provide a brief description of your application for community messaging purposes:

Skyline continues to try and meet the public transportation needs of the community. This next fiscal year (FY21), the Transportation District hopes to initiate half-hour service between the Meadow Village Center, Town Center and Mountain Village Center during the winter season.



Please ensure that your application is complete, all calculations are accurate, and it has been proofread before submitting for Board review. Once you select Submit you will no longer be able to edit your application.

Completion*

Incomplete applications may not be considered for funding. It is the applicant’s responsibility to provide all the

information requested in the proper format by the application deadline.

I certify this application is complete and accurate

Date Submitted*

04/28/2020

Once you click 'SUBMIT', do not refresh the page. It may take a few moments to process the information and submit the application.

Staff QuestionsStaff Questions for Applicant*



File Attachment Summary

Applicant File Uploads� BSTD District Map.pdf� BSTD FY21 Mill Levy Information.docx� BSTD 3-Year Financial Forecast (FY21).xlsx� BSTD FY19 Audit.pdf� BSTD FY 20 Budget.xlsx� BSTD FY19 P&L & Budget vs. Actual.XLS� BSTD FY19 Balance Sheet.XLS� BSTD FY19-FY24 Draft Strategic Plan.doc

Big Sky Transportation District (BSTD)FY 21 (2020-2021) Application for Resort Tax Funds

Mill Levy Discussion

At $32,000 per mill, a total of 26.6 mills would need to be levied to replace the requested Resort Tax funds of $850,000. At a cost of approximately $3.20 per mill, the tax burden per $100,000 of market value (appraised value) would be $35.91 per year (or about $2.99 per month).

To put this into perspective, there are homes in Ramshorn with appraised values around $500,000. These homes would pay $179.55 per year ($14.96/month) if 26.6 mills were levied to support the Transportation District.

As noted in previous applications, if the Big Sky Transportation District were to try and implement a property tax to support transportation services, it would first seek to increase the size of the District (likely to the boundaries of the Resort Tax District), and then would seek a vote to implement the mill levy. The cost per property would be reduced from the current calculation, as more property would be included in the Transportation District. The Transportation District is currently working on a petition to expand the boundaries to match those of the Resort Tax District.

Results from past surveys show that respondents indicated that the Transportation District should be funded by Resort Tax funds (as opposed to a property tax), and “public transportation” is specifically noted as a service to be funded by the Resort Tax (Section 19. Appropriation, Expenditure and Purpose of Resort Tax).

The Big Sky Transportation District Board is having general discussion about all potential sources of revenue to support the increased, and on-going demand for public transportation service within Big Sky and between Big Sky and the greater Bozeman area.

It should be noted that if the Transportation District were expanded to the same boundaries as the Resort Tax District, a mill would have a value of approximately $72,000, reducing the number of mills needed to 11.8 mills. For a house in Big Sky with a taxable value of $500,000, that home would pay $79.65 per year, or about 44% of what would be charged given the current boundaries of the Transportation District.

* Please be sure to complete both the"Itemized Expenses & Revenues" AND "Reserves & Cash Flow" Worksheets.

GLOSSARY OF TERMS· Full Time Equivalent (FTE): A unit that indicates the workload of an employed person to makes workloads comparableacross various contexts. Please use a 40-hour week as full time. For example, if your organization employs one person at 20hours per week and hires an accountant for 10 hours per week the FTE is ¾. Likewise, if your organization employs twopeople at 40 hours per week each, hires a grant writer at 10 hours per week and a fundraiser at 10 hours per week the FTE is2 ½.

· In-Kind: Goods, services and transactions not involving money. For example, goods or services are exchanged for othergoods or services with no monetary change. Another example, charitable giving in which, instead of giving money to buygoods and services, the goods and services themselves are given. Employee benefits such as a company car or gymmembership would also be considered in-kind.

· On Hand Restricted: A reserve of money that can only be used for specific purposes and the purpose cannot be changedby the organization’s board or director. For example, on hand restricted applies to contributions in which, donors indicatedthat the contributions must be used in a manner the donor has chosen.

· On Hand Unrestricted: A reserve of money given by a donor in which, the organization is free to use as they see fit. Forexample, when given a donation of unrestricted funds, the organization might allocate their use toward helping offsetoperating costs such as rent, labor costs and utility bills.

· Capital Reserves Goal: The ideal end result for a reserve of money that will specifically be used for capital investmentprojects or any other large and anticipated expense(s) that will be incurred in the future.

* Please be sure to complete both the "Itemized Expenses & Revenues" AND "Reserves & Cash Flow" Worksheets.

ITEMIZED EXPENSES AND REVENUES(Include all organization projects and programs, not only those requesting resort tax funding)

Please enter the dates of your Organization's CurrentFiscal Year below:

07/01/19 - 06/30/20

Previous FiscalYear (Budgeted)

Previous FiscalYear (Actual)

Current FiscalYear (Budgeted)

Next Fiscal YearAnticipated

% Change FromPrevious Fiscal

Year

% of TotalRevenue (Current

Fiscal Year)

Revenue

Resort Tax $ 700,000.00 $ 700,000.00 $ 800,000.00 $ 650,000.00 14% 31%

Other Public Grants (FTA/MDT) $ 1,005,398.00 $ 1,005,398.00 $ 1,350,068.00 $ 1,334,892.00 34% 52%

Gallatin & Madison Counties $ 249,387.00 $ 178,774.00 $ 158,433.00 $ 180,000.00 -36% 6%

Fundraising Events (Net Amount) $ - $ - $ - $ - N/A N/A

Dues & Fees $ 217,000.00 $ 217,192.00 $ 266,825.00 $ 262,825.00 23% 10%

Other* $ 58,000.00 $ 38,215.00 $ 15,000.00 $ 215,000.00 -74% 1%

Total $ 2,229,785.00 $ 2,139,579.00 $ 2,590,326.00 $ 2,642,717.00 16% 100% Should total 100%

Expenses

Administration

Payroll $ 108,448.00 $ 105,247.00 $ 113,015.00 $ 120,000.00 4% 6%Fundraising N/A N/A

Marketing $ 26,200.00 $ 17,791.00 $ 26,200.00 $ 20,000.00 0% 1%

Operations/Programming

Payroll $ 999,544.00 $ 1,105,941.00 $ 1,225,825.00 $ 1,374,170.00 23% 60%Other $ 561,540.00 $ 313,935.00 $ 471,445.00 $ 524,048.00 -16% 23%

Other** $ 190,000.00 $ 214,170.00 $ 205,000.00 $ 215,000.00 8% 10%Total $ 1,885,732.00 $ 1,757,084.00 $ 2,041,485.00 $ 2,253,218.00 8% 100% Should total 100%

CapitalExpenditures Total $ 329,248.00 $ 329,248.00 $ 530,000.00 $ 395,000.00 38% N/A

Income Net Income $ 14,805.00 $ 53,247.00 $ 18,841.00 $ (5,501.00) 27% N/A

* Revenue Other: Bus Wraps & BSOA Support ($15,000) and BSTD Reserves ($200,000). The $200,000 in reserves is due to the unanticipated CARES Act funding that BSTD will receive for the period of January 20 - June 30, 2020.

**Expenses Other: Maintenance on Buses

***Explain Variances: Fuel & Insurance costs (FY 19) less than budgeted

* Please be sure to complete both the"Itemized Expenses & Revenues" AND "Reserves & Cash Flow" Worksheets.

3-YEAR CASH FLOW(Include all organization projects and programs, not only those requesting resort tax funding)

Current(7/1/19 - 6/30/20)

Year 2(7/1/20 - 6/30/21)

Year 3(7/1/21 - 6/30/22)

TOTAL

Payroll $ 1,338,840.00 $ 1,494,170.00 $ 1,576,349.00 $ 4,409,359.00Total # of FTE Personnel 12 13 14 N/A

Operations/Programming $ 702,645.00 $ 759,048.00 $ 821,819.00 $ 2,283,512.00Capital Expenditures $ 530,000.00 $ 395,000.00 $ 600,000.00 $ 1,525,000.00

Total $ 2,571,485.00 $ 2,648,218.00 $ 2,998,168.00 $ 8,217,871.00

RESERVES: Capital, Programming, and/or OperatingOn Hand Restricted**

On Hand Unrestricted** $ 391,028.00Goal (if currently no reserves)

**Purpose of Restricted and Unrestricted Capital Reserves: The purpose of the reserves is to pay for unanticipatedexpenses, such as increases in fuel costs, unexpected maintenance, or the loss of an expected revenue (such as asignificant decrease in fare revenue).Note that BSTD expects reserves to increase at least $200,000 in FY20 due to CARES Act funding, and receiving100% Federal funding for the period of January 20-June 30, 2020. Note that payroll includes contracted employees, and the Capital Expenditures line does not include the BusBarn project.

BIG SKY TRANSPORTATION DISTRICT

ANNUAL FINANCIAL REPORT

JUNE 30, 2019


TABLE OF CONTENTS Independent auditor's report 1 Basic financial statements: Statement of net position 3 Statement of activities 4 Balance sheet – governmental fund 5 Reconciliation of the balance sheet of the governmental fund to the statement of net position 6 Statement of revenues, expenditures, and changes in fund balance – governmental fund 7 Reconciliation of the statement of revenues, expenditures and changes in fund balance of the governmental fund to the statement of activities 8 Notes to the financial statements 9

Independent auditor' s report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 14

Independent auditor’s report on compliance for each major program and on internal control over compliance required by the Uniform Guidance 16

Schedule of expenditures of federal awards 18 Schedule of findings and questioned costs 19 Summary schedule of prior audit findings 20

‐1‐

3382 Monida Street Bozeman, Montana 59718

Tel: 406.209.0411 barndtcpa.com

INDEPENDENT AUDITOR'S REPORT Board of Directors Big Sky Transportation District Big Sky, Montana Report on the Financial Statements I have audited the accompanying financial statements of the governmental activities and major fund of the Big Sky Transportation District (District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express opinions on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions.

‐2‐

November 22, 2019 Board of Directors Page two Opinions In my opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and major fund of the Big Sky Transportation District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. My opinion on the basic financial statements is not affected by this missing information. Other Information My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Big Sky Transportation District's basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements. The schedule of expenditures of federal awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In my opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, I have also issued my report dated November 22, 2019 on my consideration of the Big Sky Transportation District's internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Big Sky Transportation District's internal control over financial reporting and compliance.

Governmental Activities:

ASSETS

Cash and cash equivalents 456,827$ Receivables:

Fares 34,462 Grants 22,289

Capital assets depreciable, net 1,103,905

Total assets 1,617,483

LIABILITIES Accounts payable 119,801 Accrued payroll liabilities 2,749

Total liabilities 122,550

NET POSITIONNet investment in capital assets 1,103,905 Unrestricted 391,028

Total net position 1,494,933$

BIG SKY TRANSPORTATION DISTRICTSTATEMENT OF NET POSITION

JUNE 30, 2019

The accompanying notes are an integral part of these financial statements.

‐3‐

Expenses:

Public works ‐ public transportation 1,912,093$

Program revenues:Charges for services 220,087 Program‐specific operating grants and contributions 548,962 Program‐specific capital grants 449,213

Total program revenues 1,218,262

Net program expense (693,831)

General revenues:Resort tax revenue 700,000 Other local revenue 223,424 Interest revenue 1,859

Special item:

Gain/(loss) on asset disposal (112,443)

Total general revenues and special item 812,840

Change in net position 119,009

Net position ‐ beginning 1,375,924

Net position ‐ ending 1,494,933$


‐4‐


YEAR ENDED JUNE 30, 2019STATEMENT OF ACTIVITIES

ASSETS

Cash and cash equivalents 456,827$ Receivables:

Fares 34,462 Grants 22,289

Total assets 513,578$

LIABILITIES AND FUND BALANCE

Liabilities:

Accounts payable 119,801$ Accrued payroll liabilities 2,749

Total liabilities 122,550

Fund balance:Unassigned 391,028

Total fund balance 391,028

Total liabilities and fund balance 513,578$

‐5‐

BIG SKY TRANSPORTATION DISTRICTBALANCE SHEET

GOVERNMENTAL FUNDJUNE 30, 2019


Total fund balance, governmental fund 391,028$

statement of net position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are notreported in the governmental fund. 1,103,905

Net position of governmental activities 1,494,933$

‐6‐

BIG SKY TRANSPORTATION DISTRICTRECONCILIATION OF THE BALANCE SHEET OF THE

GOVERNMENTAL FUND TO THE STATEMENT OF NET POSITIONJUNE 30, 2019

Amounts reported for governmental activities in the


Revenues:

Federal grants 1,167,528$ Resort tax revenue 700,000 Other local revenue 223,424 Charges for services 220,087 Investment earnings 1,859

Total revenues 2,312,898

Expenditures:

Current

Public works ‐ public transportation:Personnel services 61,178 Supplies 1,685,416

Capital outlay 528,487 Total expenditures 2,275,081

Excess (deficiency) of revenues over expenditures 37,817

Other financing sourcesProceeds from insurance proceeds 15,430

Total other financing sources 15,430

Net change in fund balance 53,247

Fund balance ‐ beginning 337,781

Fund balance ‐ ending 391,028$

BIG SKY TRANSPORTATION DISTRICTSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDYEAR ENDED JUNE 30, 2019


‐7‐

Net change in fund balance ‐ total governmental fund 53,247$

Amounts reported for governmental activities in the statement of activities are different because:

The governmental fund reported capital outlay expenditures. However, in the

statement of activities, the cost of those assets is allocated over their estimated useful

lives and reported as depreciation expense.Capital outlay 528,487 Depreciation expense (165,499) Disposal of capital assets (127,873)

Revenues in the statement of activities that do not provide current financial resources

are not reported as revenues in the governmental fund:Increase (decrease) in unavailable grant revenue (169,353)

Change in net position of governmental activities 119,009$

‐8‐

BIG SKY TRANSPORTATION DISTRICTRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUND

TO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2019


BIG SKY TRANSPORTATION DISTRICT NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED JUNE 30, 2019

‐9‐

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Financial Reporting Entity On November 18, 1991 the Big Sky Transportation District (District) was created under MCA 7‐14‐203. The purpose of the District is to provide transportation services within the District. It is a separate political entity, the affairs of which are governed and managed by an elected Board. The District is not a component unit of another entity and has no component units. Government‐wide and Fund Financial Statements The government‐wide financial statements (i.e., the statement of net position and the statement of activity) report information on all the activities of the District. Governmental activities, which are generally financed through taxes, intergovernmental revenues, and other nonexchange revenues are reported separately from business‐type activities, which rely to a significant extent on fees and charges for support. For the fiscal year ended June 30, 2019, the District did not have any business‐type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include program‐specific grants and contributions arising from mandatory and voluntary nonexchange transactions with other governments, organizations or individuals and charges for services. Resort tax revenue, other local revenue, and interest income are reported as general revenues. The District has one fund, the general fund. This fund accounts for all revenues and expenditures of the District. The fund financial statements provide information about the general fund. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences are recorded only when payment is due. Estimates The preparation of the basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.



‐10‐

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and Investments Cash is held by the County Treasurer and pooled in the County external investment pool. The fair value of the position in the pool is the same as the value of the pool shares. The County Treasurer invests the pooled cash pursuant to state law (MCA 20‐9‐213[4]). Allowable investments include time and savings deposits with a bank, savings and loan association, or credit union in the state, obligations of the United States Government, securities issued by agencies of the United States, repurchased agreements, and the State Short‐ Term Investment Pool (STIP). The audited financial statements of Gallatin County, which include information about the investment pool, are available at https://lgs.mt.gov/. Grants Receivable The District receives grant monies, on a reimbursement basis, to operate the public transportation system. Grants receivable is the amount for which the District has submitted a request for reimbursement but has not received the funds. Capital Assets Capital assets, which include vehicles and bus shelters, are reported on the statement of net position. The District uses the Federal guidelines regarding capitalization of equipment. Capitalized assets are recorded at historical cost. The costs of normal maintenance and repairs that do not add to the value of an asset or materially extend an asset’s life are not capitalized.

Assets Years Vehicles 7‐10 Bus shelters 20

The capital assets are depreciated using the straight‐line method. Fund Balance The Government Accounting Standards Board (GASB) has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). This Statement defines the different types of fund balances that a governmental entity must use for financial reporting purposes. In accordance with GASB 54, the District reports fund balance in two general classifications: non‐spendable and spendable. Non‐spendable represents the portion of fund balance that is not in spendable form such as prepaid expenses. Spendable fund balance is further categorized as restricted, committed, assigned, and unassigned.



‐11‐

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance (continued) The restricted fund balance category contains balances that can be spent only for the specific purposes stipulated by external parties. External parties include granters, debt covenants, votes, and laws and regulations of other governments. The committed fund balance category includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision‐making authority, the Board of Directors. The Board needs to formally adopt a Resolution in order to establish, modify, or rescind a fund balance commitment. Amounts in the assigned fund balance are to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. Unassigned fund balance is the residual classification for the government's general fund. When an expense is incurred for purposes for which both restricted and unrestricted fund balance are available, the District’s policy is to apply restricted fund balance first. Budget The District is not legally required to adopt a budget; therefore, management has decided not to present the budget in the financial statements. NOTE 2. CASH AND INVESTMENTS The District participates in an investment pool managed by the Gallatin County Treasurer. The pool is not registered with the Securities and Exchange Commission as an investment company and is not subject to regulatory oversight. Investments of the pool consist primarily of repurchase agreements, the State of Montana’s Short‐Term Investment Pool (STIP), U.S. Treasury Bills, and securities of the U.S. Government, it’s agencies, or government sponsored entities and are carried at quoted market prices. The fair value of investments is determined annually, and is based on quoted market prices. The District’s balance in the investment pool is reported as cash in the accompanying financial statements, as the District has full access to these funds upon request. Interest earnings are allocated to the individual funds of the District based on the District’s month end balance in relation to the total pool investments. Montana law allows the local governing body to require security for the portion of deposits not guaranteed or insured. Deposit insurance is administered by the FDIC. Since the District invests in a pool managed by the County Treasurer, pledged securities for the various individual deposits and repurchase agreements are managed by the County Treasurer.



‐12‐

NOTE 3. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2019 was as follows:

Depreciation expense was charged to the following function/program of the District: Public works – public transportation $ 165,499

The vehicles were purchased using funding provided by the Department of Transportation, which was passed through Montana Department of Transportation. The District holds the title to these vehicles with Montana Department of Transportation being the first secured party. NOTE 4. CONCENTRATION The District received approximately 50% of its total funding for the year ended June 30, 2019 from grants passed through the Montana Department of Transportation. The District received approximately 30% of its total funding for the year from allocations of local resort tax revenues collected by the Big Sky Resort Area District. The District is also dependent on these funds to match the federal monies received. NOTE 5. RISK MANAGEMENT The District requires proof of public liability and property damage liability insurance from the contractor for transportation services. The contractor is also required to provide proof of workers’ compensation insurance coverage. In addition, the District also maintains a Board errors and omissions insurance policy. Finally, the District provides workers’ compensation insurance on its employee, as required by law.

Balance Balance

June 30, 2018 Additions Deletions June 30, 2019

Capital assets, being depreciated:Vehicles 1,660,705$ 528,487$ (411,291)$ 1,777,901$ Bus shelters 45,441 ‐ ‐ 45,441

Total 1,706,146 528,487 (411,291) 1,823,342 Accumulated depreciation (837,356) (165,499) 283,418 (719,437) Net depreciation capital assets 868,790 362,988 (127,873) 1,103,905

Total capital assets 868,790$ 362,988$ (127,873)$ 1,103,905$



‐13‐

NOTE 6. COMMITMENTS Transportation provider

The District has contracted with a Montana corporation (Contractor) to provide the District personnel, equipment and supplies necessary to operate a public transportation service. The term of the contract was extended to June 30, 2021. The hourly rates through June 30, 2019 were as follows:

The hourly rates shown above will be revisited for 2020 and 2021 and will be finalized between the District and the Contractor prior to the setting of the budget for the District for those fiscal years. Coordinator The Montana Department of Transportation desires to have each FTA Section 5311 provider designate a “Coordinator” to provide planning and operation expertise to the transit system, and to coordinate with other transportation providers in the area. The District has contracted with an entity to provide these services for the District. During the fiscal year ended June 30, 2019, the District paid approximately $50,500 to this entity for services provided. The contract was extended through June 30, 2021 and states that the District will determine a project budget at the beginning of each fiscal year and will be billed according to this budget and the services performed. The District committed to a maximum of $52,000 to be paid for services during fiscal year ending June 30, 2019. The District or the entity may terminate the contract in whole or in part without cause with 60 days written notice.

Contractor driving District's vehicles 42.11$ Contractor driving Contractor's vehicles 74.53$ Maintenance 54.85$ Parts mark‐up 18%

Subcontractor maintenance mark‐up 5%

‐14‐



INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Big Sky Transportation District Big Sky, Montana I have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and major fund of Big Sky Transportation District (District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements and have issued my report thereon dated November 22, 2019. Internal Control Over Financial Reporting In planning and performing my audit of the financial statements, I considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, I do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. My consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

‐15‐

November 22, 2019 Board of Directors Page two Purpose of this Report The purpose of this report is solely to describe the scope of my testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

‐16‐



INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

Board of Directors Big Sky Transportation District Big Sky, Montana Report on Compliance for Each Major Federal Program I have audited Big Sky Transportation District's (District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the District's major federal program for the year ended June 30, 2019. The District's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility My responsibility is to express an opinion on compliance for the District's major federal program based on my audit of the types of compliance requirements referred to above. I conducted my audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that I plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion on compliance for the major federal program. However, my audit does not provide a legal determination of the District’s compliance. Opinion on Each Major Federal Program In my opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2019.

‐17‐

November 22, 2019 Board of Directors Page two Report on Internal Control Over Compliance Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing my audit of compliance, I considered the District’s internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, I do not express an opinion on the effectiveness of the District's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. My consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. I did not identify any deficiencies in internal control over compliance that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of my testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Federal Pass‐Through Total

Federal Grantor/Pass‐Through CFDA Grantor's Federal

Grantor/Program Title Number Number Expenditures

Department of Transportation Federal Transit Administration

Passed through Montana Department of Transportation Planning Division:

Section 5311Formula Grants for Other than Urbanized Areas 20.509 110101 451,966$

Section 5311 (f)Formula Grants for Other than Urbanized Areas 20.509 110102 266,349

Total program 718,315

Section 5339Bus and Bus Facilities 20.526 110533 139,930 Bus and Bus Facilities 20.526 110534 139,930 Bus and Bus Facilities 20.526 109342 169,353

Total program 449,213

Total federal financial assistance 1,167,528$

NOTE 1. BASIS OF PRESENTATION

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

De Minimis Indirect Cost Rate

‐18‐

BIG SKY TRANSPORTATION DISTRICTSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal

grant activity of the Big Sky Transportation District under programs of the federal government for

the year ended June 30, 2019. The information in this Schedule is presented in accordance with the

requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Because the Schedule presents only a selected portion of the operations of the District, it is not

intended to and does not present the financial position, changes in net position, or cash flows of the

District.

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such

expenditures are recognized following the cost principles contained in the Uniform Guidance,

wherein certain types of expenditures are not allowable or are limited as to reimbursement.

The District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform

Guidance.

BIG SKY TRANSPORTATION DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS


‐19‐

Section I ‐ Summary of Auditor’s Results Financial Statements The auditor’s report expresses an unmodified opinion on whether the financial statements of Big Sky Transportation District were prepared in accordance with GAAP. Internal control over financial reporting:

There were no material weaknesses identified.

There were no significant deficiencies identified.

No instances of noncompliance material to the financial statements of Big Sky Transportation District were disclosed during the audit.

Federal Awards: Internal control over the major program:

There were no material weaknesses identified.

There were no significant deficiencies identified. The auditor’s report on compliance for the major federal award program for Big Sky Transportation District expresses an unmodified opinion on the major federal program. There were no audit findings that are required to be reported in accordance with 2 CFR section 200.516(a).

The program tested as a major program is as follows:

CFDA #20.509 U.S. Department of Transportation Passed‐through Montana Department of Transportation Section 5311 and Section 5311(f), Formula Grants for Other than Urbanized Areas

The $750,000 threshold was used in distinguishing between Type A and Type B programs.

Big Sky Transportation District was determined to be a low‐risk auditee.

Section II – Financial Statement Findings None reported.

Section III – Federal Award Findings and Questioned Costs None reported.

BIG SKY TRANSPORTATION DISTRICT SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS


‐20‐

None reported.

Big Sky Transportation District - FY 20 Budget

RevenuesFTA/MDT $ 964,961.00BSRAD $ 800,000.00All Other $ 440,258.00

TOTAL REVENUE $ 2,205,219.00

Operating ExpensesServicesFacilities/Bus Storage $ 15,000.00Advertising Fees $ 26,200.00

Materials and Supplies ConsumedFuel and Fuel Additives $ 230,000.00

Purchased Transportation Service (Contractor)Purchased Transportation Service $ 1,225,825.00

Other Operating ExpensesOther Expenses $ 70,800.00

TOTAL OPERATING EXPENSES $ 1,567,825.00

Administrative ExpensesLaborManager/Coordinator, Admin. Personnel $ 103,765.00

Fringe BenefitsManager/Coordinator, Admin. Personnel $ 9,250.00

Materials and SuppliesOffice Supplies $ 1,525.00

Casualty and Liability CostsCasualty and Liability Insurance $ 154,500.00

Utilities(Gas, Electric, Sewer, Phone & Internet) $ 4,200.00

Miscellaneous ExpenseDues and Subscriptions (transit-related) $ 720.00Travel and Meetings (transit-related) $ 300.00

Other Administrative ExpensesOther Expenses $ 16,400.00

TOTAL ADMINISTRATIVE EXPENSES $ 290,660.00

Maintenance ExpensesVehicle Maintenance Parts and Service $ 205,000.00

TOTAL MAINTENANCE EXPENSES $ 205,000.00

Capital Expenses (Local Portion) $ 122,893.00

TOTAL EXPENSES $ 2,186,378.00

EXCESS REVENUE (LOSS) $ 18,841.00

Big Sky Transportation District FY 19 P&L - Budget vs. Actual Data

(for the period July 1, 2018 through June 30, 2019)

BUDGET ACTUAL VARIANCEREVENUE Total Revenue $ 1,900,537 $ 1,810,331 $ (90,206)

EXPENSES Operating Expenses

Facilities/Bus Storage $ 15,200 $ 16,355 $ (1,155)

Advertising Fees $ 26,200 $ 17,791 $ 8,409

Fuel and Lubricants $ 235,000 $ 180,342 $ 54,658

Purchased Transportation Service $ 999,544 $ 1,015,941 $ (16,397)

Other Expenses (Misc.) $ 120,000 $ 88,347 $ 31,653

TOTAL OPERATING EXPENSES $ 1,395,944 $ 1,318,776 $ 77,168

Administrative Expenses

Mgr. & Coord (includes benefits) $ 108,448 $ 105,247 $ 3,201

Office Supplies $ 2,320 $ 803 $ 1,517

Casualty and Liability Costs $ 164,000 $ 99,145 $ 64,855

Utilities $ 5,400 $ 3,576 $ 1,824

Vehicle Lease $ - $ - $ -

Dues and Subscriptions (transit-related) $ 420 $ 709 $ (289)

Travel and Meetings (transit-related) $ 1,200 $ - $ 1,200

Drug Testing $ -

Other Expenses (Accounting, Misc.) $ 18,000 $ 14,658 $ 3,342

TOTAL ADMINISTRATIVE EXPENSES $ 299,788 $ 224,138 $ 75,650

Maintenance Expenses

TOTAL MAINTENANCE EXPENSES $ 190,000 $ 214,170 $ (24,170)

TOTAL EXPENSES $ 1,885,732 $ 1,757,084 $ 128,648

Increase (Decrease) in Cash $ 14,805 $ 53,247 $ 38,442

Note: Does not included capital revenues or expenses

Big Sky Transportation District FY 19 Balance Sheet (Governmental Fund)

June 30, 2019

ASSETS

Cash $ 456,827 Accounts receivable $ 34,462 Grants receivable $ 22,289 Prepaid assets $ -

Total assets $ 513,578

LIABILITIES

Accounts payable $ 119,801 Payroll liabilities $ 2,749

Total liabilities $ 122,550

FUND BALANCE

Nonspendable $ 391,028 Unassigned $ 391,028

Total liabilities and fund balance $ 513,578

Draft

Big Sky Transportation District Five-Year Plan

(FY 19-FY 24)

May 29, 2019 - DRAFT

BSTD Five-Year Plan Disclaimer

DISCLAIMER

The information noted herein is provided by the Big Sky Transportation District for planning purposes and does not represent a guarantee of service, nor that any agency or organization noted herein agrees with the conclusions or opinions expressed in this document.

Analysis of the Snow Express Transportation System Table of Contents

Big Sky Transportation District i

Table of Contents

List of Figures......................................................................................................................ii

List of Tables ......................................................................................................................iii

Introduction..........................................................................................................................5

Current service .....................................................................................................................6

growth scenarios ..................................................................................................................8

Ridership Analysis .............................................................................................................12

Funding Analysis ...............................................................................................................16

Conclusions and Recommendations ..................................................................................19

Conclusions ................................................................................................................19

Recommendations ......................................................................................................19

Analysis of the Snow Express Transportation System List of Figures

Big Sky Transportation District ii

LIST OF FIGURES

Figure 1: Skyline Local Ridership.....................................................................................13

Figure 2: Skyline Link Express Ridership.........................................................................14

Figure 3: Skyline Ridership for all Services......................................................................15

Big Sky Transportation District iii

LIST OF TABLES

Table 1: Link Express Upgraded Service ............................................................................8

Table 2: Local Upgraded Service ........................................................................................8

Table 3: Link Express High Frequency Service ..................................................................9

Table 4: High Frequency Link Express Service ................................................................10

Table 5: High Frequency Local Service ............................................................................10

Table 6: Link Express Service Comparisons.....................................................................11

Table 7: Local Service Comparisons.................................................................................11

Table 8: Skyline FY 18 Operating Budget Analysis .........................................................16

Table 9: Potential (Estimated) Funding Sources and Levels.............................................17

Big Sky Transportation District iv

BSTD Five-Year Plan Introduction

Big Sky Transportation District 5

INTRODUCTION

The Big Sky Transportation District (“BSTD” or “District”), was formed in 1991 under the laws of Montana and the rules governing an Urban Transportation District (Montana Code Annotated or “MCA” 7-14-201 through 7-14-246). Immediately after being formed, the District began providing transportation services under the name of “Snow Express.” This service, which operated from about mid-December to mid-April, provided transportation to and from major destinations within the Big Sky area, such as the Corral and Buck’s T-4 (Canyon), the Meadow Village Center and West Fork area (Meadow) and the Mountain Village Center and Moonlight Lodge/Basin (Mountain). When the service started, it was free to riders, with operational funding provided by the Big Sky Resort Tax Area District (Resort Tax Board).

The District began working with the Western Transportation Institute at Montana State University-Bozeman (WTI) in late 2002, initially focused on WTI assisting the District with drafting a new Request for Proposals (RFP) for its Snow Express services. After an initial meeting between WTI and the District, a contract was executed, and work on the project began. The project had three main tasks, which were:

1. Reviewing transportation related RFP’s or contracts from other resort areas;2. Conducting passenger surveys on the Snow Shuttle; and,3. Drafting an RFP for the District, including researching all related issues.

After the initial contract, the District contracted with WTI to provide an annual review of services, including assistance in developing schedules and routes. In 2005, WTI informed the District that additional funding from the Federal Transit Administration (FTA) would be coming to Montana, and that there was the potential to receive additional funds to support transit services in the Big Sky community. After discussions between the District, the Montana Department of Transportation (MDT) and WTI, it was decided that the District would apply for FTA Section 5311 funds and the transit services in Big Sky would be expanded. With this transition, going from a seasonal “ski-season” based service to a year-round public transportation service, it was decided to select a new name for the transit service. The name Skyline was ultimately selected, and the new service began in December 2006. In addition to the new name, a new service was added, as the “Link Express” service provided a route connecting Big Sky with the greater Bozeman area.

While there have been some ups and down in the economy and pace of growth in Big Sky since 2006, the last few years have seen tremendous growth in the Big Sky community. The purpose of this document, therefore, is to show how the District plans to address the growth, through increasing the services (routes/schedules) it has within Big Sky and between Big Sky and Bozeman.

BSTD Five-Year Plan Current Service


CURRENT SERVICE

This section provides a brief overview of the transportation services offered by the District for Fiscal Year 2018 (July 1, 2017 through June 30, 2018). During FY 18, service was provided for 339 days, and the budget for operations (service) was approximately $1.8 million.

Winter SeasonThe winter season is the busiest season for Skyline, and typically runs for approximately 150 days of service (late-November through mid-April). Service during the winter season operates seven days per week, and there is no break in service during holidays (Christmas, New Year’s, etc.). Nearly 80 percent of all ridership occurs during the winter season.

Local service during the winter season consists of four local routes: two connecting the Canyon, Meadow Village, Town Center and Mountain Village areas; one serving the Mountain Village and Moonlight areas (the “Mountain”); and one circulating in the Town Center and Meadow Village areas. Local service begins around 7:30 am and goes until 11:30 pm, with most stops having hourly service.

The intercity (or Link Express) service provides thirteen roundtrips per day between Big Sky and Bozeman, with an emphasis on getting employees and guests from the Bozeman area to Big Sky in the morning and returning employees and guests from Big Sky to Bozeman at the end of the day. The first bus typically leaves Bozeman around 4:30 am, and the final bus leaves Big Sky at 2:15 am (for those working the late shift in Big Sky). The bus schedule shows it takes approximately two hours travel time when traveling between Walmart (in Bozeman) and the Mountain Village Center (in Big Sky). This route has a one-way distance of approximately 60 miles.

Summer SeasonThe summer season is the second busiest season for Skyline and runs for approximately 120 days (late May or early June until late September). Service during the summer season is seven days per week, and there is no break in service during holidays (4th of July, Labor Day, etc.). Approximately 20 percent of ridership occurs during the summer season.

Local service during the summer season consists of two local routes, connecting the Canyon, Meadow Village, Town Center and Mountain Village Center areas. During the summer season, service is hourly during the morning and late afternoon, with a few breaks in service during the day. The service starts around 7:30 am and goes until approximately 11:30 pm.

The intercity (or Link Express) service provides five trips per day between Bozeman and Big Sky, and six trips per day between Big Sky and Bozeman. As with the winter service, there is an emphasis on getting employees and guests from the Bozeman area to Big Sky in the morning and returning employees and guests from Big Sky to Bozeman at the end

BSTD Five-Year Plan Current Service


of the day. The first bus typically leaves Bozeman around 6:00 am, and the final bus leaves Big Sky at 11:15 pm (for those working a later shift in Big Sky).

Shoulder SeasonThere are two shoulder seasons in Big Sky, one from mid-April (when the ski season concludes) until late May or early June (when the resorts open); and then again from late September (when the resorts close) until late November (around Thanksgiving). During the shoulder seasons, service is provided five days per week (Monday-Friday), and both shoulder season periods comprise approximately 75 days of service.

Local service during the shoulder season is provided on a demand-response basis, meaning someone needs to call in to schedule a ride. The first pick up is available at 8:00 am, and the last drop off is by 6 pm.

The Link Express (or intercity service) consists of two roundtrips per day, one in the morning and one at the end of the day.

BSTD Five-Year Plan Growth Scenarios


GROWTH SCENARIOS

Given the growth in Big Sky, there is a desire to expand the Skyline service, to not only provide more service within Big Sky, but to also provide more service between Big Sky and Bozeman. Two scenarios are provided herein to highlight what additional services could be provided, and the budget for these scenarios. It should be noted that service can be added on an ad-hoc, or “as needed” basis. For example, with sufficient funding, it could be possible to add two additional roundtrips to the Link Express service during the winter season, without expanding additional local service during the winter, or adding any additional service during the summer season. These scenarios simply provide two “options” for discussion purposes.

Upgraded Service (Operations budget approximately $3.4 million/year)This “Upgraded Service” scenario would provide the same number of days of service per year (approximately 345 days of service), but would add service during all seasons, and to both services (local and intercity service). The budget of $3.4 million is split evenly between the local and intercity service.

Under the Upgraded Service scenario, the Link Express service would expand as noted in Table 1.

Table 1: Link Express Upgraded Service

Season of Service Current Service Upgraded Service

Winter Season 13 roundtrips/day 18 roundtrips/day

Summer Season 6 roundtrips/day 8 roundtrips/day

Shoulder Season 2 roundtrips/day 4 roundtrips/day

The local service would also expand, which would allow for more frequent service between the Meadow Village Center, Town Center, and Mountain Village Center areas. During the winter season, service between these areas/stops would likely be every twenty to thirty minutes, and during the summer season, we would ensure hourly service (throughout the day) to these areas/stops. The potential increase to local service is shown in Table 2.

Table 2: Local Upgraded Service

Season of Service Current Service Upgraded Service

Winter Season 4 routes/16 hours per day 6 routes/18 hours per day

Summer Season 1 route/16 hours per day 2 routes/18 hours per day

Shoulder Season Demand Response Demand Response

In addition to higher frequency between the Meadow Village Center, Town Center and Mountain Village Center, there is the potential during the winter season to have a local route provide service to the Spanish Peaks Resort and Yellowstone Club (Lot 1 at the entrance) and/or to have more frequent service from the Mountain Village Center to Moonlight Basin (both the Lodge and the Madison Base area).



High Frequency Service (Operations budget approximately $3.9 million/year)The “High Frequency” scenario would provide significant service throughout the year and should provide enough capacity for the foreseeable future. It provides more frequency both within Big Sky, and between Big Sky and Bozeman. This service expands service not only during the winter season, but during the summer season as well. Under this scenario, about $1.8 million per year is spent on the intercity service, with $2.1 million spent on the local service.

The Link Express service, under the High Frequency scenario would be as shown in Table 3.

Table 3: Link Express High Frequency Service

Season of Service Current Service High Frequency Service

Winter Season 13 roundtrips/day 24 roundtrips/day

Summer Season 6 roundtrips/day 10 roundtrips/day

Shoulder Season 2 roundtrips/day 4 roundtrips/day

During the winter season, this expansion would allow for Link Express service every half hour during the peak morning and afternoon times, and hourly service during off-peak times. During the summer, it would provide sufficient service so that a bus would be available between Big Sky and Bozeman at least every two hours. Table 4 shows an example of what the Link Express schedule could look like during the winter season.



Table 4: High Frequency Link Express Service

BZN to Big Sky Big Sky to BZN

4:30 AM 6:30 AM

5:00 AM 7:00 AM

5:30 AM 7:30 AM

6:00 AM 8:00 AM

6:30 AM 8:30 AM

7:00 AM 10:30 AM

7:30 AM 11:00 AM

8:00 AM 12:00 PM

8:30 AM 1:00 PM

9:00 AM 2:00 PM

10:00 AM 3:00 PM

11:00 AM 3:30 PM

12:00 PM 4:00 PM

1:00 PM 4:30 PM

2:00 PM 5:00 PM

3:00 PM 5:30 PM

4:00 PM 6:00 PM

5:00 PM 7:00 PM

6:00 PM 8:00 PM

7:00 PM 9:00 PM

8:00 PM 10:00 PM

9:00 PM 11:00 PM

10:00 PM 12:00 AM

11:00 PM 1:00 AM

Times could be adjusted as necessary to address employment and recreation (visitation) needs.

The local service would also expand, which would allow for more frequent service between the Meadow Village Center, Town Center, and Mountain Village Center areas. During the winter season, service between these areas/stops would be every twenty minutes, and during the summer season, we would ensure hourly service (throughout the day) to these areas/stops. During the summer there could also be service to the Ousel Falls Trailhead, and there should be sufficient service to address all the cyclists who want to ride the bus up the mountain. The increase is highlighted in Table 5.

Table 5: High Frequency Local Service

Season of Service Current Service High Frequency Service

Winter Season 4 routes/16 hours per day 8 routes/18 hours per day

Summer Season 1 route/16 hours per day 4 routes/18 hours per day

Shoulder Season Demand Response Demand Response



The increased service during the winter would allow for better connections between the Mountain Village Center and Moonlight Basin, as well as connections between the Town Center and Spanish Peaks Resort (and Yellowstone Club, Lot 1).

A comparison of the Link Express for the current service level and two scenarios is highlighted in Table 6.

Table 6: Link Express Service Comparisons

Season of Service Current Service Upgraded Service High Frequency Service

Winter Season 13 roundtrips/day 18 roundtrips/day 24 roundtrips/day

Summer Season 6 roundtrips/day 8 roundtrips/day 10 roundtrips/day

Shoulder Season 2 roundtrips/day 4 roundtrips/day 4 roundtrips/day

For the local service, the comparison between the current service and two scenarios is highlighted in Table 7.

Table 7: Local Service Comparisons

Season of Service Current Service* Upgraded Service^ High Frequency Service^

Winter Season 4 routes per day 6 routes per day 8 routes per day

Summer Season 1 route per day 2 routes per day 4 routes per day

Shoulder Season Demand Response Demand Response Demand Response

* = service 16 hours per day, ^ = service 18 hours per day

BSTD Five-Year Plan Ridership Analysis


RIDERSHIP ANALYSIS

Since starting operations as Skyline, ridership has generally increased each year. One can see the effect that the recession had on ridership when looking at Figures 1-3. Figure 1 indicates ridership on Skyline’s local service (within Big Sky), while Figure 2 highlights Skyline’s Link Express (or intercity) service, which operates between Big Sky and Bozeman. Figure 3 shows ridership for all of Skyline’s service, which includes the vanpool service, and the service which operated between Big Sky and West Yellowstone for two years.



F

igu

re 1

: S

kyli

ne

Loca

l R

ider

ship



Fig

ure

2:

Sk

yli

ne

Lin

k E

xp

ress

Rid

ersh

ip



Fig

ure

3:

Sk

yli

ne

Rid

ersh

ip f

or

all

Ser

vic

es

BSTD Five-Year Plan Funding Analysis


FUNDING ANALYSIS

When transitioning from the Snow Express service to the Skyline service, the Big Sky Transportation District was able to obtain funding through the Montana Department of Transportation (MDT), which receives from the Federal Transit Administration (FTA). Further, MDT also provides some state funds to Skyline through the TransADE program.

The FTA funding Skyline receives through MDT is part of FTA’s Section 5311 program, public transportation funds for rural areas (currently defined as an area or community with a population under 50,000 people). These funds are distributed by MDT based on a formula which includes consideration of ridership. Therefore, if more rides are provided, funding tends to increase.

For Fiscal Year 2018, the FTA funds provided approximately 46 percent of Skyline’s overall operating budget. Table 8 provides a basic analysis of the sources of funding for Skyline’s operating budget.

Table 8: Skyline FY 18 Operating Budget Analysis

Item Amount

Revenue $1,749,460

Expenses

Operating $1,384,925

Admin $251,300

Maintenance $199,980

Total $1,836,205

Gain (Loss) ($86,745)

Local Service $900,830

Intercity Service $935,375

If the Skyline services were to be expanded significantly, it is likely that an additional source of funding would have to be added. Under Montana Code Annotated, an Urban Transportation District, such as the Big Sky Transportation District, can levy a property tax to fund the operations of the District, through a vote of the people (registered voters) in the District. There is current discussion related to the possibility of such a vote. The details of the process of such a vote are not discussed herein. However, a potential property tax is included as one source of revenue for an expanded Skyline system. Table 9 shows potential sources of funding, and funding levels, for the current, expanded and high-frequency services.



Table 9: Potential (Estimated) Funding Sources and Levels

Funding Source

Current Service

(FY 18 budget)

Upgraded Service

Scenario

High Frequency

Scenario

FTA/MDT $787,550 $850,000 $1,000,000

Resort Tax $600,000 $750,000 $850,000

Fare Revenue $239,195 $270,000 $325,000

Gallatin County $15,000 $100,000 $100,000

Madison County $80,000 $100,000 $100,000

Property Tax $0 $1,000,000 $1,250,000

Big Sky Resort $0 $125,000 $150,000

Moonlight Basin $0 $70,000 $75,000

Spanish Peaks $0 $70,000 $75,000

Yellowstone Club $0 $125,000 $150,000

Misc. $27,715 $40,000 $50,000

Budget Target $1,836,000 $3,502,000 $4,130,000

Balance* ($86,745) ($2,000) ($5,000)Notes: The Yellowstone Club is paying approximately $75,000 per year for operating six vans in a vanpool program. Gallatin County support in FY 18 was for vehicle and other capital match.

The bus passes/fare cards that the resorts purchase for the employees is shown in the Fare Revenue category and is not credited to any one resort. Further, it is again important to note that the amounts noted in Table 9 are for discussion/illustration purposes only.

Further, the balance show in Table 9 reflects the anticipated funding needed for the local match for capital (vehicle) purchases, which is discussed further in the next section.

CAPITAL/VEHICLE NEEDS

In addition to needing additional revenue for operational needs, the District will need additional vehicles to address the additional routes and frequency. After receiving the vehicles it will get through the TIGER Grant, the District should have seven larger buses for the Link Express/Intercity service. Also, after receiving the vehicles it expects to get through MDT, the District should have six buses for the local service. However, depending upon how much more service is implemented, there would be a need for additional vehicles.

Under the Upgraded Service scenario, there would be six local buses operating at any one time, which means that two additional buses would be needed as spares (back up vehicles). If the High Frequency scenario were implemented, eight buses would be in service at any one time, which means that two more buses would be needed beyond what the District has at the moment for service, and an additional three buses would be needed as spares.



Under the Upgraded Service scenario, a total of seven buses would be needed for the Link Express service, which is what the District would have. However, there would be no spare buses available at this time. So, the District will likely need at least two buses for spares. The High Frequency scenario would require eight buses in service, and with the desire for three spare buses, four more buses would be required.

It is important to note that the District procures most of its buses through MDT, and typically pays just 20 percent of the amount of the vehicle, with the balance of funding provided by FTA. Further, it is important to replace the buses at the end of their useful life, so it is likely that the District would need to replace three to four buses each year (or every-other year). The match needed for bus purchases could vary from $160,000 to $300,000 per year depending upon how many buses are purchased, and the cost of each bus.

The District is also exploring the opportunity to move from diesel buses to electric buses for some or all of its fleet. While currently more expensive than diesel buses, from an initial purchase price, electric buses cost less to operate due to fuel and maintenance savings. While the transition from diesel to electric buses will likely up to five or more years, it is likely that public transportation vehicles (including Skyline buses) will transition from diesel to electric.

In addition to needing more vehicles, the District also needs a location to charge its future electric buses, and to store and maintain its vehicles in the Big Sky area. Currently, all buses that stay in Big Sky are stored outside at a leased facility (yard). If the Big Sky community desires a world-class transit system, a “bus barn” will need to be constructed in Big Sky. As with vehicles, FTA generally provides funding equal to 80 percent of the cost of constructing a bus storage facility.

It is estimated that a bus barn for the District would need to be approximately 9,000 square feet, and that around an acre of land would be needed for placement of the facility. Depending upon the cost of the land, the full facility may cost between $1.5 and $2.0 million dollars. Therefore, the District would need to come up with matching funds of $300,000 to $400,000 for this capital project. It should be noted that the budgets shown in Table 9 do not include the added operational costs (heat, water, etc.) that would come from having a bus storage facility (a “bus barn”).

BSTD Five-Year Plan Conclusions & Recommendation


CONCLUSIONS AND RECOMMENDATIONS

This section provides an overall review of the document, issues to be incorporated into future planning, and recommendations for changes to the system for upcoming seasons.

Conclusions

There is no doubt that the Big Sky community is growing. New facilities such as the hotel in the Town Center, the expansion of the Warren Miller Lodge at the Yellowstone Club, and the groundbreaking at the Spanish Peaks Lodge highlight some of the growth. In addition, the number of visitors to Big Sky has also increased. These increases highlight a growing demand for transit services.

The information herein shows that the Big Sky Transportation District has clearly transitioned from the Snow Express system to the Skyline system. Further, ridership data (Figures 1-3) indicates that there is a growing need for increasing services, not only within Big Sky, but also between Big Sky and Bozeman.

The demand for additional service has outpaced the ability of the District to obtain the necessary funding. While the Big Sky Resort Area District has had increases in its support in the last several years, the District has struggled to find additional funding from entities such as Gallatin and Madison Counties. Additionally, not only will more funding be needed for operations, but more funding will be needed for capital equipment, buses and vans, as well as hopefully a facility for the District.

In order to address the growing demand, and to help try and increase safety on the roadways, and reduce congestion, Skyline will need to expand to address the public’s desire for additional routes and services. It is likely to expand services that an additional source of funding be added.

Recommendations

Based on the increasing demand for service and capital equipment (and facilities), it is recommended that the Transportation District explore a new source of funding. This funding would not supplant any existing (other) sources, but would potentially bring in the extra funded needed to significantly expand existing services. Based on Montana Code Annotated and input from stakeholders, it is likely that this new source of funding would be a property tax levied on those within the District. Of course, the tax can only be levied if the registered voters within the District vote to levy the tax.

It is recommended that the District work to levy a property tax such that the property tax, along with the funding from FTA/MDT be sufficient to operate a system with services as noted under the High Frequency Service for the local service, which includes eight buses during the winter, four during the summer, and demand response service during the shoulder season. The Resort Tax funds, fare revenue, FTA/MDT funding, and any other funding (bus wraps, etc.) would be used to fund the intercity (Link Express) service between Big Sky and Bozeman. It is recommended that the Link Express service be

BSTD Five-Year Plan Conclusions & Recommendation


expanded to a level as shown in the Upgraded Service scenario, with eighteen roundtrips per day during the winter season, with eight roundtrips per day during the summer season, and four roundtrips per day during the shoulder season. The service levels for the Link Express may need to be further evaluated and perhaps expanded, based on the growth in Big Sky, and the potential for more employees commuting between Big Sky and Bozeman.

Regarding employees commuting between Big Sky and the Bozeman area, it is ideal if the majority of employees are housed as close to Big Sky as possible. If it is not possible to house all employees in the Big Sky community, having them in Gallatin Gateway is the next best option. This is due to the fact that a one-way trip from Gallatin Gateway to Big Sky (Mountain Village Center) is approximately one hour, where a trip from Walmart in Bozeman to the Mountain Village Center is approximately two hours. Therefore, with the same number of buses and funding, more roundtrips could be made between Gallatin Gateway and the Mountain Village Center, as opposed to service from Walmart to the Mountain Village Center.

Date post:	06-Oct-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

BSTD-FY21of traffic: Big Sky Resort; Moonlight Basin; Spanish Peaks Resort; and, Yellowstone Club....

Documents