DCTA Looks to Tighten the Belt, Bring in Extra Dollars to Avoid Projected Losses in Long-Range Plan
dentonrc.com
The Denton County Transportation Authority may see a negative net income in the future if it doesn’t begin to lower operating costs.
Jane Filarowicz, senior manager of budget and grants, told the DCTA Board of Directors during last Thursday’s meeting that the transit agency could see a negative net income in 2035 and 2036.
Net income is the amount of money remaining after subtracting expenses from total revenue or sales. Negative net income means a company has incurred more expenses than its revenue — resulting in a loss.
This was part of the long-range financial plan of the proposed fiscal year 2025 budget presented by Filarowicz.
Filarowicz told the board that inflation and expenses had led the agency to this point.
“Under 2035 and 2036, you see that we started to go negative on net income,” Filarowicz told the board.
“That’s another reason why we have to be very conservative on what we’re doing today to be sure that we don’t go negative in the future.”
DCTA CEO Paul Cristina said the agency needs to do business differently to avoid a potential negative net income. That means lowering operating costs, getting more partnerships with other cities and getting more riders through the University of North Texas.
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