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Transit Agency Status FY 2011-12 Current Financial Position Current Operations Service Statistics/Trends Funding Statistics/Trends Other Information/Assumptions Capital Status Review 1

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Statement of Revenues & Expenditures 7/1/11 1/31/12 REVENUE INTEREST INCOME238.34 APPLIED DPW WAIVER SERVICES1,305.50 PROGRAM INCOME1,900.00 EARNED REV FROM MJAAA26,857.95 PWD REVENUE15,577.45 APPLIED OTHER110.12 APPLIED SHARED RIDE 65+185,355.60 MIFF CO MATP258,622.24 JUN CO MATP68,312.84 CASH FARES TRANSPORTATION49,175.45 APPLIED WELFARE TO WORK (PADOT)14,735.35 Total REVENUE622,190.84 EXPENSES GROSS WAGES230,402.80 MJ REGIONAL SERVICES103,000.00 HEALTH INSURANCE69,696.44 UNEMPLOYMENT COMP INS1,696.95 FICA17,464.46 PENSION PLAN14,441.00 LEWISTOWN OFFICE UTILITIES3,321.43 TELEPHONE4,814.51 EXPENDABLE SUPPLIES208.29 STAFF TRAVEL61.16 STAFF MEALS AND LODGING184.56 VEHICLE MAINTENANCE27,976.54 GASOLINE81,391.54 TRAINING345.00 PURCHASED TRANSPORTATION71,101.87 COMPUTER SUPPORTS6,300.00 ADVERTISING786.95 ASSOC DUES & MEMBERSHIPS1,535.00 BOARD OF DIRECTORS EXPENSE47.88 OPERATING EXPENSE MISC336.01 LEGAL CONSULTATION LABOR4,008.15 DEPRECIATION82,124.85 FIXED ASSETS- COMPUTER EQUIP1,756.00 Total EXPENSES723,001.39 PROFIT/LOSS(100,810.55) BACK OUT CAPITAL / DEPR(83,209.69) PROFIT/LOSS(17,600.86) MONTHLY AMOUNT DUE TO PENNDOT(24,927.00) PROFIT/LOSS(42,527.86) 2

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Current Financial Position: Reserves/Retained Earnings SourceBalance Lottery MATP MH/MR Area Agency on Aging Other State $ Other Local $ 3

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RESERVES July 2011- January 2012-17,600.86 2010-201133,058.06 2009-201012,773.56 2008-200928,455.53 2007-2008-48,290.34 2006-200790,064.55 2005-2006-35,517.47 2004-2005-19,829.50 overall profit/loss(reserves) after payback $43,113.53 Currently the amount of reserves is $171,309.53 amount still due to PennDot $128,196. Remaining balance of reserves $43,113.53 4

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Cost based on expenditures vs. cost based on trips 5 total trips# 65+ trips%totalamt based85%amount billed bydifference by monthfor month65+billable expenseon % of tripscars to pdot85% and billed (excludes purch transp and capital/depr) July565220920.3788,684.8732,825.3327,901.5325,055.802,845.73 August583123580.4092,527.4937,417.2231,804.6429,198.002,606.64 September444822100.5050,582.0525,131.8221,362.0527,852.85-6,490.80 October446421380.48100,838.7748,295.9941,051.5926,013.4515,038.14 November427020240.47106,708.9950,580.5642,993.4825,482.0017,511.48 December414920320.4977,791.8238,099.0532,384.2026,077.606,306.60 January423520460.4885,726.5341,415.9335,203.5425,675.909,527.64 47,345.42

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Current Financial Position: Level of Short-Term Debt/LoansIdentify each line of credit (excludes long-term bond financing) Name of Financial Institution Amount of Available Credit Interest Rate Current Credit in Use Kish Bank600,000.00Not at this time 6

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Current Financial Position: Accounts Payable Past due 90 days and over Accounts Receivable Past due 90 days and over VendorAmount Past DueEstimated Pay Date Juniata County Matp21,715.03March 2012 PennDot payback$128,196Over the next 3 years Program/AgencyAmount Past Due Date Requisitioned Estimated Pay Date Mifflin County Matp 17,707.83Ongoing County Assistance Offices 15,333.55Ongoing 7

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Cash Flow as of 1/31/12 Cash on hand @ 1/31/12 $96,981.67 Receivables @ 1/31/12 Mifflin Co. Matp 82,676.07 PADot 20356,955.72 Cash Fares 9,964.81 PADot W2W13,304.78 PWD 4,369.45 DPW Waiver474.95 AAA9,729.00 total receivables177,474.78 Payables @ 1/31/12 Juniata Co. Matp32,120.19 general ap vendors31,158.28 misc payroll deductions246.26 accrued leave39,621.50 total payables103,146.23 Total171,310.22 less penndot payback 128,196.09 Total$43,114.13 8

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Current Operations: Staffing Level Contract Provisions Healthcare Pension Fuel Fares Other major factors producing cost increases above inflation Cost Savings Initiatives 9

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Staffing Level/Org Chart Provide a current organization chart with vacant and new positions. Include a justification for new planned positions. Next page 10

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11 9-Jan-12 Board of Directors I I Director of Transportation II I Office Dispatch I FT Dispatch Supervisor-FT clerk/vacant Dispatch II FT Monitor Supervisor I I I I 100-2 100-3 100% Steve Ayres Linda WoodsCathy Yohn 100-4 Judy Dalton 75-1 75-2 75-3 75%Donna Hoover Bob IddingsManuel Irizarry 75-4 Scott Charles 50-250-3 50% Art Huffnagle Marc Auker Nelson Wilson 50-550-6 vacant No Benefits 40-1 40-2 40-3 40% Terry Searer Wilbur VanalmanJay Auker 40-4 40-540-6 Steve GrahamvacantRoxie Davis 40-7 40-8 40-9 vacant Meth-1 Meth-2Meth-3 Jim Krick Methadone Driver Methadone Driver vacant Sub/Temp Temp ****No benefits will be given to any part time driver hired past 10-1-2011***

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Labor Provisions Term of current union contract 10/1/11 to 09/30/14 DriversCurrent2012-13 Starting wage8.18 reg. 8.56 w/c8.47 reg. 8.83 w/c Top wage12.91 reg. 13.30 w/c13.26 reg. 13.65 w/c Average wage10.6911.00 Contract wage increaseApprox..55 per hour.35 per hour 10/1/12 Job ClassificationNumber- Full TimeNumber-Part Time Drivers414 MechanicsLocal service provider Dispatchers2 Clerical2 Other Positions (Identify)1 (Director of Trans.) Regional ServicesParent Corp. contracted 12

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Important Labor Provisions Use of part-time employees Part time employees are necessary to provide coverage in our service area. Senior center associated routes. Others as client needs demand. Number/percent of split shift drivers 78% of drivers would be considered available for a split shift Overtime Overtime is an area that we continue to work on See next sheet Outsourcing CARS does coordinate with PCTA and USTA to provide out of county trips to locations in their service area. CARS subcontracts with Scotty Taxi to provide trips after service hours for Welfare to Work eligible clients only. CARS is contracted to provide Welfare to Work Transportation and PCTA is part of the Project. PCTA contracts with APEX to provide after hours transportation to Perry County clients. Other 13

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Overtime Statistics Overtime pay is an area we are continuing to work on. # of hrs# of hrsavg ot hrs period #pays of ot pd of dt pd total per pay 1/1/11- 26 1,125.50 202.00 1,327.50 51.06 12/31/11 1/1/12-4104.250104.254.01 2/29/12 14

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Healthcare See following sheet: UnionNon-Union Basic Coverage CurrentMedicalMedical & prescriptions FY 2012-13MedicalMedical & prescriptions Employee Contributions Current2% FY 2012-134% Co-Payment Current$10/$15 No deductible $20/$30 $500 individual deductible $1,500 family deductible FY 2012-13$10/$15 No deductible $20/$30 $500 individual deductible $1,500 family deductible 15

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HEALTH INSURANCE 16 UNION NAMEDENTALHEALTH PLANvisiondentalgeisingerTOTALpd by eepd by er fully pd by eefully pd by employer driver ftFAMILYES0$64.88$1,303.22$1,368.1026.061,342.04 officeFAMILYES14.75$64.88$1,303.22$1,382.8540.811,342.04 driver ftFAMILYES14.75$64.88$1,303.22$1,382.8540.811,342.04 driver 75%FAMILY14.75$64.88$0.00$79.6314.7564.88 driver 50%SINGLE8.45$0.00 $8.458.450.00 driver 75%FAMILYSINGLE14.75$24.58$543.01$582.34161.36420.98 officeFAMILY 14.75$64.88$1,486.44$1,566.0744.481,521.59 driver ftFAMILYES14.75$64.88$1,303.22$1,382.8540.811,342.04 driver ftSINGLE 8.45$24.58$543.01$576.0419.31556.73 $105.40$438.44$7,785.34$8,329.18$396.86$7,932.32 NON-UNION fully pd by eefully pd by employer officeSINGLE 21.1$24.58$570.73$616.4132.51$583.90 officeFAMILYSINGLE0$64.88$570.73$635.6111.41$624.20 officeFAMILYES14.75$64.88$1,369.75$1,449.3842.15$1,407.24 $35.85$154.34$2,511.21$2,701.40$86.07$2,615.33 Union Plan % Increases2009 = 8%Non Union Plan % Increases2009 = 9% 2010 = 7.5%2010 = 12% 2011 = 7.84%2011 = 8.99%

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Pension UnionNon-Union Employee Contributions CurrentSee following sheet FY 2012-13 Minimum Age to Qualify for Retirement CurrentNone FY 2012-13None Minimum Number of Years to Qualify for Retirement Current3 months FY 2012-133 months Minimum Number of Years to be Vested CurrentNone but 5yrs to get retirement bonus FY 2012-13None but 5yrs to get retirement bonus 17

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PENSION EXCERPT FROM UNION CONTRACT 18

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19 RETIREMENT PER MONTH NAMECOMPANY PAYSEMPLOYEE PAYS driver - union ft$186.00$56.00 driver - union pt$66.00$18.00 driver - union pt$90.00$0.00 driver - union ft$216.00$40.00 driver - union ft$175.00$32.00 driver - union pt$68.00$100.00 driver - union ft$213.00$40.00 driver - union ft$173.00$32.00 office - union ft$184.00$36.00 office - union ft$150.00$24.00 office- non union ft$368.00$66.00 office -non union ft$221.00$40.00 $2,110.00$484.00

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Pension: Describe any proposed changes and the estimated financial impacts. As previous charts indicate, employees receive pension according to salary. So, with raises each year pension costs increase. However, any new part-time hire after October 2011 will not be eligible for benefits. Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension. Pension is fully funded. 20

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Fuel: Current Cost per Gallon $3.79 Contract rate or market rate? CARS has an agreement with the County that allows CARS to obtain fuel through the county approved contractor with the states discounted fuel rates. (approximately $.50 per gallon savings) Terms of contract (if applicable) No contract Projected Cost per Gallon and Basis for Projection Contract rate or market rate? Due to ongoing fuel crisis and the world economic status, we expect gas prices to continue to rise. Terms of contract (if applicable) Will continue to follow agreement with the county. 21

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Shared Ride Fares: Date of Last Fare Increase February 2006 Current Average fare16.99 Sponsorship arrangements Planned Changes Date of planned increase July 1, 2012 Estimated average fare18.69 Sponsorship arrangements Describe Fare Policy We have a zone based fare structure. See Zone Fare Matrix See Zone Detail 22

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DESCRIPTION OF ZONES FOR C.A.R.S LWW Begins at Zeke Acker's (formerly Country Garden Markets) above Walmart but below Industrial Park entrance and extends to traffic light on Juniata St. Proceeds up first block of W Market St (odd numbers) to the corner of N. Grand St. (even numbers) then straight up to the beginning of Big Ridge Rd. It will also encompass the first block of W 3rd St., and W 4th St. At Juniata St. will extend across the river bridge up to Wilson Lane, which is just past Terrace Blvd. on 103. Malta Home will be considered RUR#2 LWE All but the first block of W Market St. (odd side) Will proceed up first block of N Grand St. (odd side) Will encompass Shady Dr around to N Walnut St and up Academy Hill Will include all of South Side of town to Red's Diner Proceeds to the traffic light at the Burnham intersection where Mattress world is and will include Vermont Ave. On Ort Valley Rd./ LWE will extend past Dr. Kittings office to the ramp of 322 E Extends to Marker's on 522N Extends to the Hartley Chip Factory on Back Maitland Rd. Parchey Twn Rd. will be LWE up to and including Kish Pike Beyond that point it will become YTN YTN Begins at the traffic light in Burnham, extends through Yeagertown just beyond Wagner's Tire to the bridge Extends down W Freedom Ave to but does not include the Super 8 Motel Begins on Parcheytown Rd. beyond Kish Pike Covers all of Burnham including Ewardtown Rd/Old Park Rd Ending at East Freedom Ave at Long Lane RVL 655S to the Old Woolen Mill/across from Coffee Run Rd Begins at the end of Yeagertown/Bridge Extends to (not including) Dr Murray's office Proceeds out 322W to Hime's Garage/just beyond Locust Dr and Brooknar Dr. MIL Begins at Dairy Queen on 322W to Hartman Center Includes all Village of Milroy MCV All McVeytown Borough Includes Mattawana to the Yoder's Bus Garage and up 103 to the old school house AVL Allensville and Whitehall BEL Includes village of Belleville Dr Fowler, Belleville Med Ctr, Valley View and Valley View Terrace will be considered BEL ATM Small area surrounding the Country Crossroads Sr Center 4 miles radius Will include Ferg.Valley Rd. to the underpass before Will include area known as the Vineyard Will Include Fairview Rd. May be used in transporting Newton Hamilton clients to Mt Union for groceries, and doctors, etc. (lowest fare) This zone should be used when transporting any Wayne Twnship. Client to Huntingdon for medical appointments. Their fare will be the $28.90. MIF Will include the town of Mifflintown and Mifflin Extends to the area of the Weis Store and pharmacy Includes Mt View Med Ctr and the Locust Grove Retirement Home Extends/includes area into Industrial Park to the traffic light on SR35 MCA Village of McAlisterville Will include Keefer's pharmacy and Dr. Aldinger's office OLM Village of Oakland Mills PR Port Royal only EW E Waterford only RIC Village of Richfield will include County Line Restaurant HG Village of Honey Grove RUR#1 0-4 MILES $ 12.05 When the origin or destination is outside of a zone RUR#2 5-9 MILES $ 18.20 the "rural" zones are used. The rate charged depends RUR#3 10 OR MORE MILES $ 28.90 on the mileage from the origin to the destination. Out of County Rates LA Hershey, Elizabethtown, Altoona, Williamsport $120.00 LB Danville, Lewisburg, Harrisburg, Camp Hill $ 90.00 LC State College, Huntingdon, Newport, Selinsgrove $ 50.00 HB Harrisburg MCC McClure HDN Huntingdon MPM Mt. Pleasant Mills 23

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24 ZONE CODEAREAS LWWLWEYTNRVLMILMCVAVLBELATMMIFMCAOLMPREWRICH H GROVE RUR 1 RUR 2 RUR 3LALBLCHBGHTG MT PL MILLSMCCLURE 001LWWLewistown West8.8012.0518.2028.90 18.2028.90 18.2028.90 002LWELewistown East12.058.8012.0518.20 28.90 18.2028.90 12.0518.2028.90120.0090.0050.00 003YTNYeagertown18.2012.058.8012.0518.2028.9018.20 28.90 12.5018.2028.9050.00 004RVLReedsville28.9018.2012.058.8012.0528.9018.2012.0528.90 12.0518.2028.90 005MILMilroy28.9018.20 12.058.8028.90 18.2028.90 12.0518.2028.9050.00 006MCVMcVeytown18.2028.90 8.8018.20 12.0528.90 12.0518.2028.90 007AVLAllensville28.90 18.20 28.9018.208.8012.1018.2028.90 12.1018.2028.90 008BELBelleville28.9018.20 12.1018.20 12.108.8018.2028.90 12.1018.2028.90 009ATMAtkinson Mills18.2028.90 12.1018.20 8.8028.90 12.1018.2028.90 010MIFMifflintown28.90 8.8018.2012.10 28.90 18.2012.1018.2028.9050.00 011MCAMcAlisterville28.90 18.208.8012.1028.90 18.2028.9012.1018.2028.9090.00 012OLMOakland Mills28.90 12.10 8.8018.2028.9018.2028.9012.1018.2028.90 013PRPort Royal28.90 12.1028.90 8.8018.2028.9018.2012.1018.2028.90 014EWEast Waterford28.90 18.208.8028.9012.10 18.2028.90 015RICRichfield28.90 18.20 28.90 8.8028.9012.1018.2028.90 016HGHoney Grove28.90 18.2028.90 18.2012.1028.908.8012.1018.2028.90 017RUR1Rural 112.10 018RUR2Rural 218.20 019RUR3Rural 328.90 50.00 020LALong Distance120.00 021LBLong Distance90.00 0.00 022LCLong Distance50.00 0.0050.00 023HBHarrisburg90.00 8.8050.00 024MCCMcClure50.00 90.0050.008.80 025HDNHuntingdon0.00 28.900.00 8.800.00 026MPMMt. Pleasant Mills28.90 18.20 28.90 12.1028.9012.1018.2028.90

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Other Major Factors Producing Cost Increases Beyond Inflation: FactorsCurrent Amount Projected Future Amount Explanation Example: Subcontracts Example: Employee Retention (Add others or change as appropriate) None that we are aware of at this point in time. 25

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Cost Savings Initiatives: InitiativeCurrent Cost Planned Action and Implementation Date Projected Savings Example: Travel Limitations We have very little travel expense as seen on the statement of revenues and expenditures. Through January $245.72. Example: Compensation Changes Effective 10/1/11 new part time employees will not receive benefits. However, other costs set according to Union Contract. Vehicle InsuranceSwitched providers and sold vans to lower this expense from $56,104(10/11) to $26,512(11/12). MATP mileage reimb..12 per mileOctober 15, 201150% OvertimeWe are attempting to stop overtime wherever possible. Regional Services does time studies twice a year which has proven to reduce CARS contracted costs. 26

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Shared Ride Funding FY 2010-11FY 2011-12FY 2012-13FY 2013-14FY 2014- 15 Operating Expense1,203,2971,176,8001,173,0001,182,5001,198,000 Passenger Revenue30,59733,00036,300 38,000 Lottery433,889406,359441,700 460,500 Agency Rev(matp trips and other sources) 625,243565,000575,000 580,000 MATP-mileage reib. And amt rec over fare 138,899114,000115,000117,000 Other-mgmt fee, int7,8368,6608,700 Balance33,167(49,781)3,700(3,800) Payback to penndot-42,732 -42732 Balance(9,565)(92,513)(39,032)(46,532)6,200 27

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Shared Ride Statistics/Trends 28 Shared-RideFY 2010-11FY 2011-12FY 2012-13FY 2013-14FY 2014-15 Total Veh. Miles51452558553155022553566052830 Cost per Mile2.121.882.002.072.13 Total Veh. Hours1824822180226852275023130 Cost per Hour59.8349.5448.4948.7748.64 Total Pass. Trips6930762907635006412365125 Cost per Trip15.7517.4717.3217.3017.28 Rev. per Trip15.1115.3015.9215.7716.57 Trips per Hour3.82.8

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Other Information/Assumptions: Syncretic- Ongoing legal pursuit. Our legal counsel has requested $32,000 - $37,000 for the formula error. CARS Legal Counsel sent demand letter Jan. 31, 2012 There has been no response from Syncretics Legal Counsel as of this date 29

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Capital Status Review See 5 Year Capital Plan 30