FY 2017 Proposed PRTC Budget

Transcription

1 POTOMAC AND RAPPAHANNOCK TRANSPORTATION COMMISSION FY 2017 Proposed PRTC Budget January 7, 2016

2 Background Going into FY17 budget preparation Prince William County faced an average funding deficit FY17-21of $11.5 million Budget guidelines charged management with reducing PWC deficit by at least $1.7 million/year via bus service cuts, fare increases, and administrative reductions Management incorporated aforementioned changes, scrubbed the budget, took advantage of changed conditions (e.g., more federal capital funding, additional fare revenue from increased monthly transit subsidy), etc. Bottom line annual deficit reduced by $4 million/year to $7.5 million on average for PWC s portion of the budget

3 How did we get here? Since 2008, PWC has relied solely on 2.1% motor fuels tax revenue for PRTC bus and VRE local subsidy but annual revenue was and continues to be insufficient Reserve fund allowed PWC to eliminate local funding support as recession intensified Local support never reinstituted Reserve will be depleted by early FY17 2.1% revenues dropped by 30% Federal funding fell

4 Proposed Service Cuts Net savings to PWC ~ $1.4 million Required ~$2.5 million in gross service cuts Affects every route ~125,000 annual passenger trips lost On top of ~9% service cuts since 2009

5 Proposed Service Cuts (cont.) Type of Service Route Eliminated or Modified FY17 Projected Net Savings OmniRide Old Bridge Festival and Tackett's Mill $128,300 OmniRide Manassas Mall and Portsmouth Commuter Lot $21,500 OmniRide Capital Hill $48,800 OmniRide RS-1X & RS-2X $1,700 OmniRide P.M. Strategic Bus $78,400 OmniRide Dale City to Washington D.C. (eliminates one trip) $25,100 OmniRide Crystal City Consolidation $29,400 OmniRide Modified Holiday $106,200 OmniRide Reduction of Friday Services $334,700 Metro Direct Linton Hall (one a.m. and one p.m.) $24,700 Metro Direct Prince William Mid-Day Frequency Reduced $31,000 Metro Direct Manassas Off-Peak Trips $120,800 Cross County Reduce Frequency $121,800 OmniLink Eastern Frequency $137,900 OmniLink Western Frequency and Restructuring of Routes $212,000 Total Projected Net Savings FY17 $1,422,300

6 Fares Fare increase proposed for FY17 Annual 5% increases thereafter On top of ~30% fare increase since 2009

7 VRE Impact on Jurisdictional 2.1% Motor Fuels Tax Funds Decline in 2.1% revenue means less funds available for other transportation projects across all jurisdictions VRE s unfunded operating and capital needs compounds problem VRE s PWC budget is $8.47 million more for FY17- FY21 than a year ago : $4.01 million in additional subsidy $4.46 million in unfunded need VRE s subsidy increases 5% in FY17 and 3% in FY19 and FY21 Bottom line PWC s average annual deficit increases from $7.5 million to $9.2 million

8 FY16/FY17 Budget Comparison FY16 FY17 Difference Revenue Expenses Fares $11,338,600 $10,887,400 ($451,200) Local 16,590,300 14,415,300 (2,175,000) Federal/State/other 40,221,100 30,743,600 (9,477,500) Total $68,150,000 $56,046,300 ($12,103,700) Bus service contract $21,487,200 $20,243,800 ($1,243,400) PRTC personnel 5,355,100 5,487, ,100 Fuel 4,606,800 3,524,900 (1,081,900) Facility maintenance 451, ,100 (126,500) Bus shelter maintenance 222, ,400 43,400 Printing and reproduction 485, ,000 7,300 Computer services 349, , ,300 Professional services 961,200 1,148, ,100 All other 2,549,300 2,431,000 (118,300) Total operating budget $36,467,900 $34,484,000 ($1,983,900) Bus purchases/rehabs/other capital improvements 31,682,100 21,562,300 (10,119,800) Total $68,150,000 $56,046,300 $12,103,700

9 FY17 PRTC Subsidy Comparison Jurisdiction FY17 Projected in FY16 Six Year Plan FY17 Proposed Budget Variance Prince William County $17,263,700 $13,643,100 ($3,620,600) City of Manassas 376, ,600 6,300 City of Manassas Park 272, ,600 (99,400) Stafford County 74,900 80,700 5,800 City of Fredericksburg 32,400 36,000 3,600 Spotsylvania County 142, ,300 (42,100) Total $18,161,700 $14,415,300 ($3,746,400)

10 $3.7 Million in FY17 PRTC Subsidy Savings Variances Service cuts, net of reduced fares and funding Fuel savings (without consideration of service cuts) Postponing capital outlay Net changes in Federal and State capital funding Savings in salary and benefits and maintenance expenses Changes in fuel tax revenue forecast Total subsidy savings Savings/(Increases) $1.4 million $0.8 million $1.7 million $3.1 million $0.2 million ($3.5 million) $3.7 million

11 Revenue Assumptions Includes DRPT capital grant estimated funding of: Tier 1 (Rolling Stock) -68% Tier 2 (Large Capital) 5% Tier 3 (Other Capital) 0% Includes Federal Fixing America s Surface Transportation Act (FAST Act) of 80% funds for Rolling Stock Includes annual fare increases of approximately 5% throughout the six year plan Does not assume Fuel tax floor enacted Additional funding from Prince William County

12 Bus Service Level Assumptions Significant service cuts with approximately $1.4 million in annual savings No new services in FY17 Multiple state-sponsored services beginning in FY21

13 Western Maintenance Facility Assumptions Pay-go funding for construction assumed for western maintenance facility Revenue sources include NVTA DRPT CMAQ Increase in expenses due to construction delay $2.1 million Funding source indeterminate Assumed State Tier 2 (5%) and local match debt financed

14 Other Services Assumptions Vanpool Alliance financially selfsupporting Wheels-to-Wellness Program, previously funded by PHF and PWC, will not continue in FY17 unless additional funding is awarded Staff is seeking a fiduciary intermediary The program continues to receive small community donations

15 2.1% Motor Fuels Tax Floor Pursuit Being pursued at the 2016 General Assembly session Without a floor, revenue projections remain low due to continued lower fuel prices PRTC retained lobbyist to represent its interest

16 2.1% Motor Fuel Tax Fund Balance Projections Jurisdiction FY17 FY18 FY19 FY20 FY21 FY22 Prince William County City of Manassas City of Manassas Park Stafford County City of Fredericksburg Spotsylvania County ($5,665,472) ($13,854,968) ($24,925,665) ($34,310,991) ($43,939,016) ($55,041,960) $($124,338) ($593,420) ($1,252,774) ($1,953,726) ($2,809,150) ($3,723,958) $1,420,390 $1,046,867 $349,609 $125,743 ($191,645) ($548,574) $1,555,632 $1,809,473 $1,740,749 $1,541,079 $872,797 $13,482 $2,049,537 $1,790,194 $1,476,366 $1,188,671 $837,793 $460,438 $4,105,348 $2,811,884 $1,255,102 $589,785 ($16,431) $50,329

17 Next Steps February - Public participation process commences March - Responses compiled April - Management presents final recommendations to PRTC Board for approval July - Changes implemented

18 Next Steps (cont.) Should PWC require additional cuts rising to level invoking public participation (25% change in any route or service overall and/or fare change), process needs to begin again Halt services on July 1, 2016, since reductions will not be able to be implemented until late 2016 (unless one-time funding to temporarily sustain services is provided)

19 Next Steps (cont.) Should PWC-required savings exceed ~$3.5 million/year, wholesale bus service transformation into Metroprail feeder routes and elimination of local service will be necessary and procuring a wholly new bus services contract will be compulsory

20 Questions?