The Antelope Valley Transit Authority (AVTA) retained the services of RNR Consulting to develop a ten (10) Year Financial Plan. The plan would enhance the accuracy of financial forecasts and to simplify management decision-making. As part of this engagement, RNR Consulting identified short-term, intermediate, and long-term operating and capital funding requirements for AVTA. This analysis was extended through the year 2018 to estimate financial needs for the authority for each of its operational modes (fixed route, paratransit and commuter).

In order to accomplish the objectives of this project, RNR Consulting analyzed AVTA past and current data and extrapolated existing information for the required future projections. RNR Consulting categorized the financial plan into distinct areas of AVTA’s financials such as operations, capital funding and expenditures. These categories were further broken down by sources of funds (i.e. operating revenues /fares, Federal and State Revenues), operational user funds (i.e. contract services, administrative), and capital uses of funds (i.e. for building, communications systems, equipment).

After collecting and analyzing the above information, RNR Consulting developed the ten (10) year financial model using MS Excel macros. This information was then extrapolated and projected to reflect trends and projections over the short, intermediate and long term. Forecasts were based on well-researched and validated assumptions regarding inflation, fuel costs, population growth and other economic indicators for the agency’s service area and the transit industry in general.

In order to maintain accuracy of the ten (10) Year Financial Plan, the model was updated with the most current available financial information. RNR Consulting also developed an “Executive Decision Board” which serves as a user-friendly “front-end” to the complex ten (10) Year Financial Plan model. Ultimately, the “Executive Decision Board” enabled AVTA management to make decisions based on accurate information that is made available using a few keystrokes, thereby eliminating time spent on browsing through multiple spreadsheets.