Briefing on Fare Structure

Transcription

1 Briefing on Fare Structure Budget & Finance Committee January 22, 2019 Joseph G. Costello Senior Vice President, Finance 0

2 Calendar Date Subject Jan 22 Fare Structure Briefing Feb 26 FY 2018 Operating Financial Review (Including DART Mobility Service LGC) / Annual Disclosure Statement Fare Structure Briefing Proposed Changes to Fare Structure Mar 26 FY 2019 Financial Outlook and Preliminary FY 2020 Financial Outlook Mobility Development Fund Briefing Request for Public Hearing Regarding Proposed Changes to Fare Structure New Reduced Fare Program New Fares for Streetcar Apr 23 May 14 Approval of Financial Standards for FY 2020 Budget and Financial Planning Process Public Hearing on Reduced Fare Program and New Fares for Streetcar 1

3 Calendar (Cont.) Date Subject May 28 FY 2020 Capital Budget Overview Jun 18 FY 2020 Operating Budget Overview Departmental Budget Reviews Approval of Proposed Fare Structure Changes Jul 9 Departmental Budget Reviews Proposed FY 2020 Annual Budget & Twenty-Year Financial Plan Aug 13 August Aug 27 Sep 24 Approval to Distribute FY 2020 Annual Budget and Twenty-Year Financial Plan to Service Area Cities Briefing for Service Area City Managers and Finance Directors Budget & Finance Committee recommends approval of FY 2020 Annual Budget and Twenty-Year Financial Plan to the Committee-of-the-Whole Board Approval of FY 2020 Annual Budget and Twenty-Year Financial Plan 2

4 Presentation Outline Low Income Discount Agency Comparisons o o o o DART (example) Denver Seattle Portland Scenarios 3

5 Agency Comparisons 4

6 Agency Comparisons Denver Seattle Portland 5

7 Agency Comparison of Low-Income Programs Category Dallas (example) Denver Seattle Portland Program Name TBD TBD ORCA Lift Program HOP Program Poverty Level various 185% 200% 200% Existing Programs TANF SNAP CEAP Medicaid/ Medicare (CHIP) TBD Program Card GoPass TBD TANF, Apple Health/Medicaid, EBT, unemployment benefits, receiving SSI, Social Security, Railroad Retirement Recipients ORCA Lift Card - (issued by US Veterans Affairs, Washington State DCHS, Kitsap County buses, and Seattle Streetcar) Oregon Health Plan, SNAP/TANF, Free & Reduced Price Lunch, HUD Housing Choice Voucher, LIHEAP (Home Energy Assistance), Employment Related Daycare, WIC HOP Fastpass Program Start Year 2020 mid Discount % 50% 40% $1.50 Flat Fare 50% - 72% Expected Eligibility / Current User 6.7% of current ridership 79,000 expected users 69,000 registered users 30,000 to 45,000 expected users Residency Requirement Texas Resident TBD Washington Resident Oregon Resident 6

8 Low Income Eligibility Annual Income Eligibility Family of 2 Annual Income Eligibility Family of 4 Comprehensive Energy Assistance Program (CEAP) $24,630 $37,650 TANF / SNAP $16,460 $25,100 Medicare / Medicaid / Children's Health Insurance Program (CHIP) $16,910 $34,638 7

9 DART Existing Programs Reduced Fares are applicable on bus and rail for the following: a. Seniors and non-paratransit disable with valid ID b. DART Shuttle bus route c. Children elementary through middle school d. Students attending high schools within DART service area, with DART-issued student ID. e. Service area residents participating in a transitional program administered by an approved social agency with a DART-issued ID. f. Discount fare with Lone Star TANF benefits. Reduced fare passes are Regional passes. Discounted Day Pass vouchers available to government, alternative schools, and non-profit institutions to be issued to DART Service Area clients. Discounted at 40%. Payment System offers stored value, best value, fare capping, and lost card value protection. 8

10 Scenarios 9

11 Low Income EVERY FIVE YEARS 25.0% 20.0% 17.0% 19.1% 20.3% 22.2% 15.0% 10.0% 5.0% 0.0% <1% of Riders 6.7% Riders 9.7% of Riders 12.7% of Riders 10

12 Days in the Month Discount Change and Revenue Units Cost Revenue Revenue Lift Revenue Lift Revenue Lift Revenue Lift Monthly Passes 16 Days 17 Days 18 Days 19 Days 20 Days Local 105,011 $96 $10,081,056 $630,066 $1,260,132 $1,890,198 $2,520,264 Regional 2,247 $192 $431,424 $26,964 $53,928 $80,892 $107,856 Annual Passes Local 142 $960 $136,320 $8,520 $17,040 $25,560 $34,080 Regional 5 $1,920 $9,600 $600 $1,200 $1,800 $2,400 Total $10,658,400 $666,150 $1,332,300 $1,998,450 $2,664,600 11

13 Monthly Discount 17.5% EVERY FIVE YEARS 17.0% 17.0% 16.5% 16.3% 16.0% 15.7% 15.5% 15.0% 15.1% 14.5% 14.4% 14.0% 13.5% 13.0% 16-Days 17-Days 18-Days 19-Days 20-Days 12

14 Frequency Every - 5 Yrs Every - 4 Yrs Every - 3 Yrs Every - 2 Yrs Every - 1 Yrs 13

15 Potential DART Low-Income Program Low-income program would begin in FY 2020 Fare increase every two years beginning in 2021 Monthly pass discount at 18 days Results in 7.3% fare increase every 2 years 14

16 Calendar Date Subject Jan 22 Fare Structure Briefing Means Testing Feb 26 FY 2018 Operating Financial Review (Including DART Mobility Service LGC) / Annual Disclosure Statement Fare Structure Briefing Proposed Changes to Fare Structure Mar 26 FY 2019 Financial Outlook and Preliminary FY 2020 Financial Outlook Mobility Development Fund Briefing Request for Public Hearing Regarding Proposed Changes to Fare Structure New Reduced Fare Program New Fares for Streetcar Apr 23 May 14 Approval of Financial Standards for FY 2020 Budget and Financial Planning Process Public Hearing on Reduced Fare Program and New Fares for Streetcar 15

17 Calendar (Cont.) Date Subject May 28 FY 2020 Capital Budget Overview Jun 18 FY 2020 Operating Budget Overview Departmental Budget Reviews Approval of Proposed Fare Structure Changes Jul 9 Departmental Budget Reviews Proposed FY 2020 Annual Budget & Twenty-Year Financial Plan Aug 13 August Aug 27 Sep 24 Approval to Distribute FY 2020 Annual Budget and Twenty-Year Financial Plan to Service Area Cities Briefing for Service Area City Managers and Finance Directors Budget & Finance Committee recommends approval of FY 2020 Annual Budget and Twenty-Year Financial Plan to the Committee-of-the-Whole Board Approval of FY 2020 Annual Budget and Twenty-Year Financial Plan 16