LFC Comments: Thanks to a Lake County lobbyist for sending us the financial reports received from Lake Tran. From those reports we discovered the following information:
As a private business venture this organization would have folded their tent a long time ago. Actual revenue collected from fares in FY 2021 was only $859,410 with total operating expenses being $8,563,836 plus capital expenses of $7,113,683, plus depreciation of $2,040,000 for a grand total of $12,717,519 in expenses.
We compared their costs versus the number of riders served:
Park – N – Ride 25,980
Local Routes 208,460
Dial – A – Ride 169,972
Total Number of Riders 404,212 [June 2020 – July 2021]
The cost per rider is $21.19 when comparing just their operating expenses. [$8,563,836 / 404,212]
The cost per rider is $31.46 when comparing all costs. [$12,717,519 / 404,212]
Here is a summary of their cash balance as of July 31, 2021. Please note the highlighted $10,159,056 already in reserve for the new headquarters and garage.
However, from the CEO report, we found that the headquarters renovation has been put on the shelf for now.
Headquarters Renovation
“On August 6th I notified R. L. Bowen to pause work effective August 6th. I explained
Laketran’s desire to pause the project to review what has been done. I indicated the
project may continue in a similar way, or in a very different way and that would be
determined in the committee process. R.L. Bowen understood and has paused all
work. They also communicated to me that if we chose to resume they would provide a proposal to “remobilize”.”
The previous estimated cost to build their headquarters was $17 million! It is now ~$19.6 million. It is understandable why the board has requested that this project be put on hold for now.
We must compliment Lake Tran management, Board of Directors, and their employees. We have found them to be extremely competent in the performance of their duties and transparent with any and all requests by LFC. Their financial person does a great job presenting their financial statements.
Although Lake Tran is a heavily subsided operation, they are here to stay. We see an increasing trend by the federal government to minimize travel by car because of the false “climate change” narrative. The internal combustion engine is being phased out. Our society is being positioned to operate more like Europe and China with an increasing dependency of public transportation – be it rail or buses. We expect gasoline prices will continue to escalate with the Communist / Socialist Democrats in control, and do not be surprised if we see $7.00 per gallon in the near future. They will also try to institute taxation based on the number of miles that you drive your car.
This is one part of the fundamental transformation of the United States that Barry Obama promised when he took over. Our freedom and liberties are slowing but surely being curtailed, so that eventually we will all become part of the collective. Look to the way China operates as a society, and you can envision what America may look like a few decades from now. There will be the rulers and the ruled…no middle class.
It appears that not enough Republican ‘leaders’ are willing to fight to maintain our Republic. They are very short-term thinkers, and “feathering their own nest” is their priority.
*****
Categories: Lake, Ohio Counties, Uncategorized