FY2011 Budget Forum. District of Columbia. October 19, 2009

Transcription

1 FY2011 Budget Forum District of Columbia October 19,

2 Meeting agenda What is Metro and what is the value of Metro service? What are the Fiscal Year 2011 budget challenges? What are the potential budget options? 1

3 Budget calendar Key budget milestones: October Public forums December 2009 GM presents s proposed budget to Board January March 2010 Board considers budget Spring 2010 Public hearings on possible service and fare changes June 2010 Budget approval July 1, 2010 Fiscal Year 2011 begins 2

4 What is Metro? 10,000+ budgeted employees 1,524 buses 589 escalators and 229 elevators 106 miles of track 1, rail vehicles 86 rail stations 57,732 parking spaces - Largest parking provider in region 9 bus garages 3

5 What is Metro s value to the region? Congestion Relief - Metrorail takes 600,000 cars off the road each weekday and eliminates the need for 1,400 highway lane miles Mobility Choice - Washington region: 2nd highest share of commuting trips on transit - Riders save an average of $9,700 a year riding Metro and having one less car Economic Catalyst Supports region s $359B economy Every y$ $1 invested in Metro yields $10 Environmental Impacts Metro eliminates more than 1 million tons of air pollutants every year 4

6 Metro s FY10 annual budget Total Budget= $2,097.8 (in millions) Operating $1, % DC s Operating Contribution $201.6 DC s Capital Contribution $75.5 Capital $ % 5

7 What s in the capital budget? Bus mid-life rehab & replacements Rail system rehab Railcar rehab & replacements Rail maintenance facilities rehab Replace obsolete bus garages IT Software, security & data centers 6

8 What s in the operating budget? System safety Rail power, utilities and fuels Bus, rail and paratransit operations Bus and rail car maintenance Transit police force Facilities and grounds maintenance 7

9 Metro s FY10 Capital Budget Sources of funds Debt Management $59.2 8% Other Sources $20.5 3% Total Capital Budget= $739.9 (in millions) State and Local Funds $ % Federal Funds $ % 8

10 Metro s FY10 Capital Budget Uses of funds Total Capital Budget= $739.9 Reimbursable Projects $34.7 ARRA 5% "Stimulus" Program $ % Other Capital Projects $28.6 4% Metro Matters $ % (in millions) 9

11 Metro s FY10 Capital Budget Metro Matters Total Metro Matters Budget= $527.4 Buses $ % Rail Cars (in millions) $14.0 3% Other $ % Pass. Facilities $31.0 6% Bus Improvement Capital Initiative $11.5 2% EightCar Trains $37.9 7% Maint. Facilities $38.5 7% Track and Structures $26.7 5% 10

12 Metro s FY10 Operating Budget Sources of funds Total Operating Budget= $1,357.9 (in millions) Metrobus Revenues $ % Local Subsidy $ % Metrorail Revenues, MetroAccess $621.2 Revenues 45.7% $5.0.4% 11

13 Metro s FY10 Operating Budget Uses of funds* Total Operating Budget= $1,357.9 (in millions) MetroAccess $85.6 6% Metrobus $ % Metrorail $ % *Debt service/other credit of $16.6M included 12

14 Budget challenges in FY2011 and beyond Capital Program: - $11.4 billion in needs over next 10 years - Current six-year agreement e expires June 30, 2010 Operating Budget: - $100+ million shortfall projected for FY 11 (even after a cost of living fare increase) 13

15 Capital program challenge Metro has identified $11.4B* of capital needs over the next 10 years: - For the first time, Metro must replace hundreds of older railcars - Many system components are at the end of lifecycle and must be replaced - Some needs, such as bus garages, have been deferred - *NTSB recommendations have yet to be identified d or quantified 14

16 Operating budget challenge Projected budget gap of more than $100 million, even after a cost of living increase Estimated operating cost increases Fringe benefits Labor Paratransit Insurance & claims Energy & utilities Unknown operating cost increases Higher maintenance costs as system ages $35 million $20 million $20 million $13 million $10 million Less fare revenue as unemployment reduces the number of riders NTSB recommendations 15

17 Budget options To balance the budget, Metro can: Cut costs Increase revenues Increase jurisdiction contributions Combination of the above 16

18 What has Metro done to cut costs? In recent budgets, Metro has worked to reduce costs without impacting service: Cut 350 positions in this year s budget, including nearly 10% reduction of administrative i ti positions Reduced overtime expenses by 45% during the last two years Reduced travel, training and consultant costs by $10 million in this year s budget 17

19 What has Metro done to increase revenues? Metro has worked to find new sources of nonpassenger revenue: Negotiated increased revenue of $2.3M from fiber optics leases between FY08 and FY09 (budget actuals) Provided additional advertising opportunities in stations Sought and received CNG tax rebate - $3M annually since FY2007 Issued RFP for retail in stations FY09 revenue from leased bank ATM service in rail stations = $1.2M 18

20 Growth of DC Contributions to Metro $300 $250 $65 $73 $60 $200 $52 $150 $100 $175 $191 $203 $202 Capital Operating $50 $ (dollars in millions) DC s operating subsidy to Metro increased by 15% from 2007 to DC s capital subsidy to Metro increased by 40% from 2007 to

21 Summary $100+ million operating shortfall for FY11 (even after an assumed cost-of-living fare increase) Increasing capital costs Early indications that local jurisdictions are not able to afford increased Metro subsidies 20

22 Your Ideas, Priorities, & Questions Revenue ideas? Fare changes? Service changes? Cost savings? Increase local government contributions? Other solutions? 21

23 Panel and public discussion 22

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