LakeTran…..financial statistics..’CliffNote version’

laketran bus image

In anticipation of LakeTran asking for additional revenue, be it either a sales tax increase or a property tax increase, we thought we would do a cursory review of their financial statements.

LakeTran, as with other political sub-divisions, is a product of the Ohio Revised Code.Lake Tran ORC sections

Here are the links to the two section of the Ohio Revised Code they cite:

http://codes.ohio.gov/orc/306.30

http://codes.ohio.gov/orc/306.71

Their mission statement and future plans are in this link: LakeTran Mission Statement

Here is the management of LakeTran:  LakeTran Management

Let’s look at some financial information:

Revenue and Operating Expenses 2015 – 2017:  LakeTran Income Statement 2015 – 2017
Interesting statistics to note:
1. In 2017, only 15% of their total revenues was from passenger fares ($2,519,175 / $16,832,722)
2. Sales tax revenue accounted for 55.1% of their total revenue ($9,281,207 /  $16,832,722)
3. Federal Grants accounted for  23.0% of of their total revenue ($3,867,040 / $16,832,722)
4. Labor and fringe benefits account for 58.6% of their total expenses. ($11,472,773 / $19,586,826)

Balance Sheet:Lake Tran Balance Sheet 2017 – 2016
Interesting statistics to note:
1. They have over $16.4 million in cash and investments as of 12/31/17.

Hmmmm image

2. Of the $10.8 in investments $5 million matures in 2 – 5 years – meaning that they do not need this money for daily operations. [We are finding that many of these political sub-divisions are ‘squirreling” away money for some rainy day.  The taxpayers would like to be able to do the same with their personal finances]
LakeTran Investment details

3. They also show a liability of $10.7 for “Net Pension Liability”. No doubt this is due to the accounting requirements of GASB 68.   When we have brought this subject up with Lakeland Community College or the Lake County Commissioners they strenuously object to that figure being placed on their balance sheet.  LFC has still not been able to get to the bottom of this issue, but we will keep trying.  LakeTran pension liability

They spent $869382 in pension costs for 2017, which represents 13% of their annual payroll of $6,687,554.

Did you ever wonder how much investment has been made on the LakeTran transportation vehicles?  How does $40 million sound?
LakeTran Capital Assets 2017

For the “hard core” out there that enjoys reading annual reports, here is LakeTran’s  complete 76 page report for 2017.  Agency_Laketran_2017_Lake_ CAFR

We have been promised the 2018 report as soon as it is ready, and we will update this article when we receive it.

 



Categories: Lake County, Lake Tran, Uncategorized

Tags:

5 replies

  1. Thank goodness for. LFC. The average taxpayer would not have know any of this. 16.4. Million in cash !!!

    Like

  2. Thank goodness for LFC. The average taxpayer would have no idea about any of this. 16.4 million in cash !!!!!

    Like

  3. I found it to be extremely informative that only 15% of Lake Tran’s income is derived from passenger fares. So everyone who pays sales tax or federal income tax subsidizes those who ride Lake Tran.

    This is another opportunity to reduce our tax burden by eliminating another program that isn’t self-supporting. We can’t afford it!

    Like

  4. And it is unfathomable that they have accumulated over $16 million dollars in cash and investments??? Let’s get the government out of what should be a free market solution.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: