Loading...
HomeMy WebLinkAboutFY 2027 (Transportation Agency) TRANSPORTATION AGENCY FY 2027 BUDGET AND OPERATIONS SYNOPSIS Celia Mahikoa Executive Leonard Peters Assistant Executive 1 Fund: HIGHWAY FUND Department: TRANSPORTATION FY 2026 FY 2027 $ + / -% + / - Salary and Wages 2,051,873 3,248,865 1,196,992 58.3% Benefits 1,298,224 2,148,045 849,821 65.5% Utilities 5 5 0 0.0% Vehicle/Equip, Lease 6 5 -1 -16.7% Operations 32 32 0 0.0% 3,350,140 5,396,952 2,046,812 61.1% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 61% 39% 0%0%0% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 60% 40% 0%0%0% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 2 Fund: G.E. Tax FUND Department: TRANSPORTATION FY 2026 FY 2027 $ + / -% + / - Salary and Wages 4,529,417 3,866,295 -663,122 -14.6% Benefits 3,108,841 2,446,724 -662,117 -21.3% Utilities 94,000 100,000 6,000 6.4% Vehicle/Equip, Lease 1,671,003 1,521,003 -150,000 -9.0% Operations 2,239,467 2,233,467 -6,000 -0.3% 11,642,728 10,167,489 -1,475,239 -12.7% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 39% 27%1% 14% 19% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 38% 24%1% 15% 22% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 3 MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET Highway Fund Salary and Benefit expenses are being increased by $2,046,812 due to union pay increases along with an increase in the amount of total full-time bus driver payroll expenses covered by the Highway Fund to reflect approximately 50% of full-time bus driver salaries. There are no other changes in Transportation’s Highway Fund accounts. General Excise Tax Fund Salary and Wages reflect a decrease of $663,122, which is the net result of the incremental increase in salaries and wages from the collective bargaining agreements along with the increase in full-time bus driver payroll expenses covered by the Highway Fund described above. Benefits expenses are being decreased by $662,117 primarily due to the full-time bus driver fringe expenses being covered by the Highway Fund, as well as regular adjustments in fringe estimates. Administration funded equipment decreased by $150,000 as the equipment purchase was completed in fiscal year 2026. Operations funds reflect several minor adjustments to address the shift between expenses such as $6,000 additional electricity expenses offset by a decrease in gasoline expenses and the movement of $6,000 from Building R&M to IT Arrangement (SBITA) due to the additional technology requirements prompted by electric bus diagnostics and maintenance. OPERATIONAL CHALLENGES Kaua‘i’s Short-Range Transit Plan was completed in 2018 and provides the County with a list of useful recommendations for improving Kaua‘i Bus service that continues to increase the effectiveness, efficiency, and user-friendly nature of this essential public transit service for the people of Kaua‘i. The ongoing support provided by our Mayor, Councilmembers, and many other partners in public service has provided the Transportation Agency the resources and capability to continue to successfully implement some of the significant changes recommended. A few of the operational challenges experienced more recently follow. Personnel Shortages Staffing shortages have continued to present significant operational challenges, to the point where it has been necessary to continue the removal of Sunday bus service which was initiated in August 2023. The removal of service will need to remain until enough bus drivers and dispatchers can be retained in active service to support the reinstatement of Sunday bus service. A net increase in hiring and training eight full-time bus drivers and three transit dispatchers into existing vacancies should provide a level of staffing sufficient to do so. An effective strategy employed for driver recruitment has been the hiring of on-call Van Drivers who are provided an extensive training program that supports drivers in obtaining the CDL-P license required for a full-time Bus Driver position. There have been some ongoing challenges with meeting the licensing requirements causing delays, however ongoing consultation with the applicable agencies, and enhancements to the Agency’s driver training program should provide more success with getting drivers qualified to fill full-time Bus Driver vacancies. 4 Baseyard Space Another ongoing challenge faced by the Kaua‘i Bus continues to be the limited space on which the bus baseyard, repair shop, and administrative facility are located. This issue has intensified with the need to move most of the buses off-site in preparation for the repair shop and baseyard expansion construction project anticipated to begin within the next month. The Transportation Agency is extremely grateful to be provided space by Public Works to provide the transit fleet with a safe, spacious parking area until the construction project is completed. Electric Fleet Transition The State of Hawai‘i’s renewable energy and transportation electrification goals prompted a County Proclamation made December 12, 2017 that describes the County’s commitment to converting 100% of the County’s fleet to renewable-powered fuels by the year 2035. The County Transportation Agency will continue to utilize the federal grant funds awarded specifically for the purchase of zero emission buses in the next two fiscal years. Federal funding for these initiatives has begun to decrease, so adjustments will continue to be made to most effectively keep the Kaua‘i Bus fleet operating efficiently. Battery Disposal Although the electric buses were just placed in service in January 2026, and electric bus batteries have an anticipated lifespan of 10-12 years, research and communication with transit industry representatives is currently underway to establish disposal procedures for the bus batteries once they are no longer usable. Additionally, the Transportation Agency is monitoring the progress of the Electric Vehicle (EV) Battery Recycling and Reuse Working Group convened by the Hawai‘i State Energy Office (HSEO) and the Hawai‘i Department of Health (DOH) pursuant to Act 209 (SLH 2025) to keep apprised of progress being made as they develop a plan for best management practices for the recycling, reuse, or repurposing of electric vehicle batteries that would be applicable statewide. OPERATIONAL HIGHLIGHTS FROM FY 2026 One of the Transportation Agency’s operational highlights for fiscal year 2026 is directly related to one of the operational challenges shared above. The collaborative effort with statewide partners in the “Hawai‘i Zero Emission Bus Pilot Project” provided the support needed to purchase and receive the delivery of its first four electric buses in late 2025. The new buses were placed into service on January 5, 2026, providing our customers with a new transit service route that improves rider comfort and convenience by expanding location access and time options, as well as significantly expanding the capacity of the transit fleet . The Federal Transit Administration (FTA) provided a $3.5 million grant requiring no local matching funds to proceed with the design, engineering, and construction of additional repair shop space. The design was promptly completed, after which the extensive environmental review and approval by the FTA was completed last fiscal year. Construction is therefore anticipated to begin in April 2026. Another FTA grant was awarded to fund a second phase of base yard expansion that will provide additional fleet parking that includes significant structural improvements to the currently unusable water basin area adjacent to the bus base yard. The project will also assist with ensuring there will be sufficient space for the additional electric infrastructure required to continue the fleet transition. 5 Another significant operational highlight is the successful expansion of the electronic fare payment system that was first activated in January 2025, after which the acceptance of Holomua scan cards and digital payment acceptance was successfully activated. The Kaua‘i Bus’ mobile app that continues to provide Kaua‘i Bus riders (and potential riders) a live map of bus routes and the real time status of Kaua‘i Buses, continues to provide riders and potential riders the Kaua‘i Bus real time tracking of estimated bus arrival times, and the ability to receive text updates of service changes. It provides a service portal for paratransit customers, with so far, over 280 clients registered for paratransit system information access. The app is available for download through the Apple Store and Google Play Store. Additionally, Wi-fi continues to be available on the Kaua‘i Buses, providing passengers the benefit of connectivity while also providing the County with portable Wi-Fi connection points in periods of disaster and emergency response. The Kaua‘i Bus is committed to utilizing the various technologies available to improve the passenger experience and increase efficiency of transit operations. One of the most rewarding highlights to note each year is the Agency’s ongoing communication with its customers and team members who continue to provide the Kaua‘i Bus leadership team with comments and suggestions that are taken into consideration when employing efforts to enhance transit service and information access for customers. Regular attendance at public school career days, public information gatherings, and the Kaua‘i Developmental Disability Council’s monthly meeting provides attendees with updates that impact Kaua‘i Bus riders and addresses questions or concerns that riders and potential riders might have. These events provide the community with various forums to share their questions, comments, and experiences with the leadership team. The Kaua‘i Bus team is extremely grateful for the ongoing support from our customers, County Administration, County Council, and so many others that graciously assist with what’s needed to continue successfully providing and improving essential public transit service for our community.