IBTTA BOARD BOOK

VOLUME 2

September 13-14, 2019 Halifax, Nova Scotia CANADA

Revised September 10, 2019

IBTTA Board of Directors and Committee Meetings September 13-14, 2019

Halifax, Nova Scotia CANDAD Table of Contents – Volume 2

1. Memo on DRAFT 2020 Budget ......................................................................................................... 3

2. Statement of Financial Position (Balance Sheet), June 30, 2019 ..................................................... 5

3. 2019 Budget vs. 2019 Full Year Projection ....................................................................................... 6

4. Proposed 2020 Budget ..................................................................................................................... 7

5. 2019 Peer Exchange Program Overview Paper ................................................................................ 8

Date: September 9, 2019

To: IBTTA Board of Directors and Finance Standing Committee of the Board

From: Pat Jones, Executive Director & CEO

Subject: DRAFT 2020 Budget

SUMMARY

Attached is the proposed 2020 budget for IBTTA.

• It supports the ongoing activities of IBTTA under our strategic plan.• It supports the specific efforts for 2019 and 2020 that we envision under the Three-Year Plan

approved by the Board on October 13, 2018. Those outcomes are further described in theDeliverables as Part of IBTTA Three-Year Plan beginning on page 48 of the September 2019Board Book Volume 1.

The 2020 budget incorporates the compensation budget. The Compensation Policy Committee will meet on September 13, 2019 and is expected to endorse the proposed overall compensation budget for 2020 as being consistent with IBTTA’s compensation philosophy, policy, and marketplace definition and sources.

SPECIFIC ITEMS OF NOTE IN 2020 BUDGET

The 2020 budget is similar to the 2019 budget with some differences as follows:

Dues

We project membership dues revenue to grow to $3,436,000, an increase of 11% over the 2019 budget of $3,107,000 and an increase of 8% over the 2019 projected actual of $3,171,000. We achieved this figure by:

• applying the 2020 dues schedule to all current members to yield gross dues of $3,505,000• factoring in membership attrition of $180,000 based on the history of the last three years; and• factoring in new member acquisition of $111,000 based on recent history.

The 2020 dues projection reflects zero growth in toll revenues which would normally push dues higher. We expect toll revenues to grow, but we use this zero-growth assumption to be conservative for budgeting purposes.

The proposed dues increase for 2020 is illustrated in the Three-Year Plan on page 41 of Board Book Volume 1 and needs to be approved by the Board. Dues increases range from a 4% for members with the lowest revenues to 16% for operators with the highest toll revenues.

3

Meeting Revenues

In 2020, we expect meeting revenues to be $272,000 higher than the projection for 2019. This includes:

• $156,000 more in registration revenues • $94,000 more in sponsorships and host contributions • $22,000 more in exhibit revenues.

The higher registration revenue is equivalent to about 195 more paid attendees in 2020 versus 2019. We expect most of the additional registrations to appear at the Finance Summit in Denver, the Technology Summit in San Diego, and the Annual Meeting in Austin. This is based on historical experience with performance at the 2020 venues and the fact that the Finance Summit is co-located and organized with TRB and four of its committees.

Personnel and Benefits

Personnel expense will increase about 7% over the 2019 projection. This includes a 3% market adjustment for salaries. It also accounts for two new employees hired mid-year in 2019 that translate to full year salaries in 2020. The 2020 budget also includes a new data analyst position to support TollMiner and other efforts. This position may be a consultant or an employee, but it’s budgeted as an FTE.

Program Expenses

In 2020, we are increasing program expenses as follows:

• $50,000 to develop a Continuity of Operations Plan (COOP) and pay for other process changes as a result of the internal controls assessment (ICA) and the enterprise risk assessment (ERA). (Note: there is a separate presentation on ICA and ERA that will be made to the Board by Deb Sharpless, Chair, Audit Committee and Susan Buse, Vice Chair, Finance Committee. The presentation and reports are on pages 91-123 of Board Book Volume 1.)

• $48,000 for a Human Resources consultant, also in response to the ICA and ERA.

Technology and Data expenses for TollMiner, web hosting, and our AMS are experiencing a slight increase over 2019.

To sum up, 2020 Expenses are roughly $500,000 higher than 2019 in these areas:

Meeting venue and meals $53,000 Other direct meeting $83,000 Personnel and Benefits $174,000 Professional Services $104,000 Technology and Data $81,000

Total $495,000

4

International Bridge, Tunnel and Turnpike AssociationStatement of Financial Position

June 30, 2019

ASSETS

CURRENT ASSETSCash and Cash Equivalents 529,782$ Investments 2,031,989 Accounts Receivable 138,327 Meeting Expenses Paid in Advance 123,274 Prepaid Expenses and Other Assets 77,207 Due from Related Party 19,016

Total Current Assets 2,919,595

INVESTMENTS 1,779,178

PROPERTY AND EQUIPMENT, NET 15,194

INTANGIBLE ASSETS, NET 263,329

DEPOSITS 28,985

Total Assets 5,006,281$

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts Payable and Accrued Expenses 265,070$ Deferred Revenue 686,673 Deferred Rent 30,618

Total Current Liabilities 982,361

DEFERRED RENT 15,451

Total Liabilities 997,812

NET ASSETSUnrestricted:

Undesignated 4,008,469

Total Liabilities and Net Assets 5,006,281$

35

2019 Budget vs. 2019 Full Year Projection as of June 30, 2019

2019 Budget 2019 YE

Projection

Variance 2019

Projection v 2019 Budget

Revenue

75xx Member Dues 3,106,700 3,171,000 64,300

Total 76xx Meeting Revenues 2,485,631 2,562,600 76,969

Total 79xx Other Income 10,000 10,000 -

Total Revenue 5,602,331 5,743,600 141,269

Gross Profit 5,602,331 5,743,600 141,269

Expenditures

Total Bank Fees 64,429 69,215 4,786

Total Design, Printing & Postage 132,200 131,509 (691)

Total Insurance 27,800 26,384 (1,416)

Total Meeting Venue & Meals 1,118,200 1,187,130 68,930

Total Miscellaneous 24,800 23,300 (1,500)

Total Occupancy 370,644 409,444 38,800

Total Office Expense 39,502 40,600 1,098

Total Other Direct Meeting Expenses 109,900 193,386 83,486

Total Personnel 2,551,342 2,502,992 (48,350)

Total Professional Services 475,365 504,134 28,769

Total Promotion & Advertising 25,500 31,500 6,000

Total Reference & Research 13,400 16,000 2,600

Total Technology & Data 482,000 418,000 (64,000)

Total Travel 77,400 78,871 1,471

Total Expenditures 5,512,482 5,632,465 119,983

Net Operating Income 89,849 111,135 21,286 77xx Investment Income - Total

771x Investment Income - Portfolio

7711 Dividends 40,000 40,000 -

7716 Investment Advisory Fees (13,000) (13,000) -

Total 771x Investment Income - Portfolio 27,000 27,000 -

Total 77xx Investment Income - Total 27,000 27,000 -

Net Income $ 116,849 $ 138,135 $ 21,286

6

Proposed 2020 Budget with Comparison to 2019 Budget and 2019 Year End Projection

Total Meetings

Total Programs

Total Supporting

Services TOTAL 2020

Budget 2019 Budget

Variance 2020 Budget

v 2019 Budget

2019 YE Projection

Variance 2020 Budget

v 2019 Projection

Revenue

75xx Member Dues - - 3,436,000 3,436,000 3,106,700 329,300 3,171,000 265,000 Total 76xx Meeting Revenues 2,834,164 - - 2,834,164 2,485,631 348,533 2,562,600 271,564 Total 79xx Other Income - - 20,000 20,000 10,000 10,000 10,000 10,000 Total Revenue 2,834,164 - 3,456,000 6,290,164 5,602,331 687,833 5,743,600 546,564 Expenditures

Total Bank Fees 64,400 - 1,500 65,900 64,429 1,471 69,215 (3,315) Total Design, Printing & Postage 102,950 19,800 29,500 152,250 132,200 20,050 131,509 20,741

Total Insurance 10,000 - 20,000 30,000 27,800 2,200 26,384 3,616

Total Meeting Venue & Meals 1,134,900 5,500 99,500 1,239,900 1,118,200 121,700 1,187,130 52,770

Total Miscellaneous - - 18,300 18,300 24,800 (6,500) 23,300 (5,000)

Total Occupancy - - 409,444 409,444 370,644 38,800 409,444 -

Total Office Expense - - 38,702 38,702 39,502 (800) 40,600 (1,898)

Total Other Direct Meeting Expenses 265,200 250 11,400 276,850 109,900 166,950 193,386 83,464

Total Personnel - 2,100 2,674,666 2,676,766 2,551,342 125,424 2,502,992 173,774

Total Professional Services 82,500 253,900 272,200 608,600 475,365 133,235 504,134 104,466

Total Promotion & Advertising 22,500 - 5,000 27,500 25,500 2,000 31,500 (4,000)

Total Reference & Research - 12,100 600 12,700 13,400 (700) 16,000 (3,300)

Total Technology & Data - 499,000 - 499,000 482,000 17,000 418,000 81,000

Total Travel 58,600 4,850 24,750 88,200 77,400 10,800 78,871 9,329

Total Expenditures 1,741,050 797,500 3,605,562 6,144,112 5,512,482 631,630 5,632,465 511,647

Net Operating Income 1,093,114 (797,500) (149,562) 146,052 89,849 56,203 111,135 34,917 Total 77xx Investment Income - Total - - 26,000 26,000 27,000 (1,000) 27,000 (1,000)

Net Income $ 1,093,114 $ (797,500) $ (123,562) $ 172,052 $ 116,849 $ 55,203 $ 138,135 $ 33,917

7

1

Leadership

Innovation

Toll Networking

Exchange8

2019 President’s Vision

• Opportunity for a more in-depth form of networking, where agenciescan move beyond panel discussions and PowerPoint presentations.

• Introduce the next generation of toll agency leaders to their peers atother agencies, while giving them an opportunity to learn from andinteract with executive leadership beyond their own home agency.

• Forge new relationships and introductions that might not haveotherwise had an opportunity to occur.

29

North-East

Group

NEW JERSEY TURNPIKE

AUTHORITY

PENNSYLVANIA TURNPIKE

COMMISSION

ILLINOIS TOLLWAY

2019 Pilot Participants

3

East-West

Group

TRANSPORTATION CORRIDOR AGENCIES

NORTH CAROLINA TURNPIKE

AUTHORITY European Group

10

2019 LITE Peer Exchange Overview

East-West Group

Five Subject Area Focused Meetings

Interactive conference calls and TCA site visit

with planned workshop in NC

North-East Group

Eight Working Groups

Subject area workshops – Conference calls and

on-site meetings

European Group

IBTTA Orlando Round-table Meeting

International Peer-to-Peer Exchange & Young Professionals Meeting

in Lisbon

411

Exchange ParticipantsExpertise TCA NCTA

Customer Service Aaron WatsonAlex LeyvaOsman Aziz

Trulie Bachor

Angela Queenland

Program Management Natasha Ahsan Amy Neidringhaus

Tolling Systems Rick Carrier Kristen PearceRachel Ruiz

Communication Lori OlinNatasha Ahsan

Carly Olexik

Public Relations Jeff Bott Warren Cooksey

Executive SponsorsTCA NCTA

Samuel JohnsonKit Cole

Mike Chesney

JJ EdenAndy LelewskiMarvin Butler

Rodger Rochelle

5

East-West Peer Exchange

12

IBTTA Peer Exchange Program

6

NCTA TCA Peer

Exchange Program

1Site Visit

Additional Visit

Planned

5Meetings/ Calls Held2

Meetings/ Calls

Remain

10+ Topics

Covered

20+ Hours of

Information Exchanged

NCTA Communications Team members visited TCA facilities in July. This photo captures the 241 Environmental Mitigation area with animal jump off point.

East-West Peer Exchange

13

Exchange Leads & ParticipantsSub-Group Illinois Tollway PA Turnpike NJ Turnpike

Engineering Paul KovacsRocco Zucchero

Wayde Tabor

Bradley J. Heigel Robert Fischer

Back Office Shana WhiteheadKathleen Goeden

Laura Marriott Jose Dios

Maintenance & Operations

Kevin ArtlPat Taylor

Craig Shuey Kenneth McGoldrickKevin Dunn

IT Joseph Kambich Robert Taylor Jose Dios

Finance Michael Colsch Nikolaus Grieshaber Donna Manuelli

Tolls Dolores McLaughlin Craig Shuey John PagilaruloScott Barton

Communications Rich BossertJoelle McGinnisDiana Stewart

Carl DeFebo Tom FeeneyShawn Taylor

Executive SponsorsIllinois Tollway PA Turnpike NJ Turnpike

Jose AlvarezEmily Tapia-Lopez

Mark P. Compton John Keller

7

North-East Peer Exchange

14

IBTTA Peer Exchange Program

8

NJ, IL, & PA Peer

Exchange Program

2Site Visits

1Additional

Visits Planned

20+ Meetings/ Calls Held8

Meetings/ Calls

Remain

50+ Topics

Covered

40+ Hours of

Information Exchanged

North-East Peer Exchange

Engineering Track Web-Meeting

15

2020 LITE Peer Exchange

• Goal: A true peer exchange to see how other agencies conduct the business of tolling and deal with challenges⎯ Quality time with the management and staff at each agency⎯ Small group break-out sessions (agencies to select disciplines and content)⎯ Networking opportunities

• Structure: Two to three sets of agencies; Three Quarterly meetings ⎯ Multi-disciplinary delegation from each agency including a team lead⎯ Leadership Track/Next-gen Agency Leaders

• Outcome: Knowledge Exchange⎯ Internal: Frank/Candid Info Exchange at working-level⎯ External: Report out on best practices for toll

industry based on the peer exchange

916

Key Roles in 2020

10

• President’s point person to assist with selection process and oversight• Staff to coordinate workshops, round-tables and/or receptions held at IBTTA

IBTTA Staff & President

• Champion of Program• Support President’s point person with matching and selection process• Resource for participating agencies

IBTTA Past Presidents

• CEO to Champion the exchange and report out on key takeaways from program• Commit to traveling to other peer exchange agency workshop• Identify 4-6 participants and team lead* to facilitate home agency meeting• Commit to hosting a workshop at home agency

Agencies

*Opportunity for Leadership Academy Graduates. 17

• Survey of Interested Agencies in October

• 2019 Program Overview Presentation in Halifax

• Survey of interests & Conference Calls with interested agencies

Fall 2019

• Compilation of survey results• Recommendation of Agency

Pairings • Announcement of Agency

Pairings in December

Winter 2019• Kick-off & planning meetings

with new teams• Peer Exchange participants

identified & rosters finalized• 2020 Peer Exchange Schedule

finalized

Spring 2020

2020 Selection Schedule

1118

12

Thank you for your interest.

The survey of interested participants will be open from October 1-31st.

19