SORTA uncovers $7.9 million in extra money during yearlong audit; plans to buy new buses

The Southwest Ohio Regional Transit Authority has uncovered millions of dollars in surplus cash, some of which it plans to use to buy new buses next year for the Metro bus system.

A total of $7.9 million in cash that wasn't designated for any specific purpose was discovered during a yearlong review of the transit authority's balance sheet, according to SORTA Chair Kreg Keesee.

More: Todd Portune pledges to fight tax levy for Metro with new SORTA nominees

On Tuesday, SORTA voted to use the money to shore up its cash reserves and buy about 30 new buses next year to replace those that are past their 12-year, 500,000-mile service life expectancy.

SORTA will add $4.1 million of the surplus to its cash reserves, and use the remaining $3.8 million to help buy buses, according to Keesee. The new money will allow SORTA to retain about $11.9 million in federal matching funds to replace buses, the agency said.

SORTA last replaced buses in December 2016, when it rolled out 22 new commuter-style buses at a cost of just over $475,000 each.

Keesee said the recently uncovered surplus was mainly the result of money left over from projects that came in under budget or were discontinued, and stronger-than-expected operating cash flows over the past several years.

Still, the money is no panacea, according to Keesee, who said the new cash infusion simply provides a short-term solution to a long-term problem.

“This is kind of a one-time thing, not an ongoing solution,’’ Keesee told The Enquirer. "It doesn’t really change the longer-term discussion. We’re still behind on buses, and we’re still facing some deficits based on ridership and revenue.’’

Projected budget deficits have forced SORTA to cut costs and defer capital projects, including purchasing new buses for its aging fleet of more than 350.

SORTA has said its financial problems could lead to fare increases and reduced transit service as early as next year.

The SORTA board last year voted to place a Hamilton County-wide sales tax levy on the November 2018 ballot to help shore up funding and address the projected budget shortfalls.

But Hamilton County commissioners recently named a new slate of SORTA board members who share Commission President Todd Portune's thinking that it would be "premature'' to ask voters to approve a tax hike for SORTA in November.

This year, SORTA's operating budget is $98.1 million - a 2 percent increase over 2017. But there was no money in this year's budget for capital expenses like bus replacement.

About half of SORTA’s operating budget comes from the portion of the City of Cincinnati earnings tax that is dedicated for transit use.

Fares, service contracts, federal and state funding, and miscellaneous revenue like transit advertising comprise the remainder of SORTA’s revenue, according to the agency.











