Massachusetts Transportation Trust Fund

Transcription

1 Massachusetts Department of Transportation Report ID: BUD-001B-MTTF Statement of Revenue and Expenses - Actual vs. Budget Run Date: 4/11/2013 For the Fiscal Year 2013 Through Period Ending March 31, 2013 YTD Actual Year to Date (YTD) July - March Seasonally Adjusted Budget Massachusetts Transportation Trust Fund Variance Favorable / (Unfavorable) % (000's = Thousands) 13 Accounting Periods Budget Fiscal Year YTD Actual + Projected Annual Budget Variance Favorable / (Unfavorable) % REVENUE Toll Revenue Pledged - MHS and WT Toll Collections 225, ,731 (1,528) -1% 300, ,308 (1,967) -1% Departmental 10,491 12,385 (1,894) -15% 15,751 16,513 (762) -5% Rental/Lease Income 25,795 24,396 1,399 6% 32,549 32, % Unpledged - Tobin 23,058 23,462 (404) -2% 30,752 31,283 (531) -2% Total Toll Revenue 284, ,974 (2,427) -1% 379, ,632 (3,239) -1% Non-Toll Revenue Departmental 14,406 15,166 (760) -5% 16,322 18,277 (1,955) -11% Rental/Lease Income 3,050 4,043 (993) -25% 5,060 5,390 (330) -6% Total Non-Toll Revenue 17,456 19,208 (1,752) -9% 21,382 23,667 (2,285) -10% Commonwealth Trust Fund Transfer Operations funding 108, ,175-0% 180, ,655 50,809 39% Metropolitan highway system bonds 75,000 75,000-0% 100, ,000-0% Central artery operations and maintenance 25,000 25,000-0% 25,000 25,000-0% Total Commonwealth Trust Fund Transfer 208, ,175-0% 305, ,655 50,809 20% Commonwealth grants and contract assistance 111, ,135 (3,500) -3% 115, ,135-0% Investment Income 2,002 1, % 2,248 1, % Use of Reserves 15,250 15,250-0% 15,938 15, % Total Revenues 639, ,860 (6,795) -1% 839, ,829 46,732 6% EXPENSES Operating Expenses AERONAUTICS Employee Payroll and Benefits % % Materials, Supplies, Services % 7 7-0% Office and Administrative Expenses % % Construction and Maintenance 3 - (3) 0% 3 - (3) 0% Total Aeronautics % % HIGHWAY Employee Payroll and Benefits 82,527 88,128 5,601 6% 112, ,986 9,435 8% Materials, Supplies, Services 22,570 27,672 5,102 18% 41,211 39,796 (1,415) -4% Office and Administrative Expenses 20,685 24,373 3,688 15% 33,353 34,988 1,635 5% Construction and Maintenance 3,519 4,648 1,129 24% 5,315 6,656 1,341 20% Grants, Subsidies, Contract Assistance % % Paygo Maintenance 57,280 91,837 34,557 38% 91, ,071 41,700 31% Snow & Ice 83,025 35,678 (47,347) -133% 109,002 45,400 (63,602) -140% Total Highway 269, ,394 2,789 1% 392, ,982 (10,900) -3% RAIL AND TRANSIT Employee Payroll and Benefits % % Office and Administrative Expenses 2 1 (1) -82% 2 1 (1) -67% Grants, Subsidies, Contract Assistance 117, , % 121, ,635-0% Total Rail and Transit 117, , % 121, , % REGISTRY Employee Payroll and Benefits 29,103 31,262 2,160 7% 40,406 42,828 2,422 6% Materials, Supplies, Services 5,754 6,756 1,002 15% 9,030 9,008 (22) 0% Office and Administrative Expenses 7,643 8, % 11,157 10,712 (445) -4% Construction and Maintenance % % Total Registry 42,500 46,051 3,550 8% 60,593 62,549 1,956 3% OFFICE OF THE SECRETARY Employee Payroll and Benefits 14,008 26,524 12,517 47% 20,667 37,363 16,696 45% Materials, Supplies, Services 1,909 2, % 3,408 3, % Office and Administrative Expenses 13,000 15,372 2,372 15% 20,207 22,108 1,901 9% Construction and Maintenance 4,609 4,362 (247) -6% 4,738 4,561 (177) -4% Grants, Subsidies, Contract Assistance 1,573 1,334 (239) -18% 1,902 1, % Paygo Maintenance 1,398 4,876 3,478 71% 3,506 7,000 3,494 50% Snow & Ice (74) -389% (77) -329% Total Office of Programming and Planning 36,590 55,102 18,512 34% 54,528 76,733 22,205 29% Subtotal Operating Expenses 466, ,301 25,504 5% 630, ,725 13,359 2% Debt Service Principal 55,045 55,045-0% 55,045 55,045-0% Interest 95,255 94,012 (1,243) -1% 95,255 94,012 (1,243) -1% Cost of issuance % % Total Debt Service 150, ,057 (1,243) -1% 150, ,057 (1,243) -1% Total Operating Expenses and Debt Service 617, ,358 24,261 4% 780, ,782 12,116 2% Net Revenue (Expense) before Transfers 21,968 4,502 58,895 - Net Revenue (Expense) 21,968 4,502 58,895 - Numbers shaded in green denote both a significant variance of more than 5% and a magnitude of dollar amount, more than $500,000. Explanation for variances are on the attached Budget Highlight report. This report is presented on the cash basis of accounting. See accompanying notes for further information. C:\Users\brooksj\Desktop\Workspace\financials\[Operating FY13 FP9 Mar v2.xlsx]report 1 Board

2 Massachusetts Department of Transportation FY 2013 Third Quarter Report (July to March) Massachusetts Transportation Trust Fund SUMMARY The attached Statement of Revenue and Expenses through Q3 13, ending March 31 details line item variances in revenue and expense categories, which have resulted in total net revenue of $21.9 million. Through March 2013, total revenue was $639.0 million, which is $6.8 million or 1% less than budget. Total expenses were $617.1 million, or $24.3 million (4%) below budget. The major items contributing to the operating surplus against the seasonally adjusted budget are: Paygo Maintenance (less than budget by $38.0 million), Employee Payroll and Benefit costs ($20.4 million), Materials, Services, and Supplies ($6.8 million), Office and Administrative expenses ($6.5 million). These positive variances, which are explained more fully below, were offset by a Snow and Ice deficiency of $47.3 million. DOT anticipates supplemental funding from the Legislature to recover Snow and Ice costs incurred over budget. NOTE: Each variance equal to or greater than 5% of budget AND is of a magnitude of $500,000 or more is explained below. REVENUE Toll Revenue-Toll Collection: Toll collection for Metropolitan Highway System (MHS) and Western Turnpike (WT) totaled $225.2 million and is under budget by $1.5 million or 1.0%. While this is an unfavorable variance it was expected due to reduced toll usage as a result of Hurricane Sandy, the 2013 Blizzard that caused a twoday state of emergency and numerous snow storms causing cities and town across that state to call-off school on three days. These meteorological events had a significant impact on toll usage more than a normal season. Toll Revenue-Departmental: Departmental Revenue of $10.5 million has an unfavorable variance of $1.9 million or 15% under budget. Departmental revenue is a combination of court fines and other miscellaneous revenues. Court fines through March 2013 of $3.8 million are in line with anticipated revenue. However, other miscellaneous revenues (towing, advertising, permit fees, reducible load permits, special hauling permits, state police details and other miscellaneous items) fluctuate throughout the year and are inherently less predictable. As of March 2013, $6.7 million has been collected in miscellaneous revenues, well under budgeted revenue of $8.6 million. Miscellaneous revenues are currently projected to end the fiscal year under budget by $762,000 or 5%. Toll Revenue-Rental/Lease Income: Rental/Lease Income of $25.8 million has a favorable variance of $1.4 million or 6% over budget. This additional revenue is attributable to two large payments by Nextel in September associated with the optional termination of a wireless communication agreement in the Ted Williams Tunnel ($975,000) and Summer Tunnel ($618,000). While positive in terms of both cash flow and budget variance, the loss of ongoing revenue from Nextel will be a consideration in future MassDOT budgets. 1

3 Non-Toll Departmental: Non-toll Departmental revenue of $14.4 million has an unfavorable variance of $760,000 or 5% below budget. The variance is due to the late execution implementing the fee for the Ignition Interlock Device and the later than anticipated increase in the Irreducible load truck permit fees. The Interlock Device fee was implemented in February instead of last summer. Further, it was determined by our Legal office that the Interlock Device fee is considered Registry revenue and as such must be deposited into the Commonwealth Transportation Fund (CTF). We are requesting to have those funds returned to the Massachusetts Transportation Trust Fund (MTTF) through a supplemental budget. The Irreducible Load Truck Permit fee has yet to be implemented. The fee was approved on March 29 th and is now in the process of being programmed into the online permit system. Non-Toll Rental/Lease Income: Non-toll Rental/Lease Income of $3.1 million has an unfavorable variance of $993,000 or 25% below budget. The variance is the result of unbudgeted rental credits owed to McDonalds by MassDOT for environmental clean-up costs incurred and paid for by McDonalds on their MassDOT rental properties located in Newton and Lexington. The credits of $2.3 million due McDonalds will be offset with rental income in FYs 13, 14, and 15. Commonwealth Trust Fund Transfer: For FY 13, MassDOT is budgeted to receive $129.6 million from the CTF transfer for operations. Additionally, we are expecting to receive $50.8 million in additional CTF transfer funds by fiscal year end due to the Legislature approving supplemental funding for snow and ice operations in the amount of $55.7 million. The additional revenue is offset by a 9C budget reduction of $4.9 million. Investment Income: Investment Income of $2 million reflects a favorable variance of $885,000 or 79% over budget. This $2 million earned through March includes both interest earnings on MassDOT cash balances as well as interest earnings on debt service bank accounts held by the trustee. When the budget was established for investment income, we included interest earnings on MassDOT cash balances only. Previously, interest earnings on debt service bank accounts were netted within debt service payments in prior years; this year, it s been determined that these interest earnings should be included specifically in Investment Income. EXPENSES Highway Division Employee Payroll and Benefits: The Highway Division has expended $82.5 million on Employee Payroll and Benefits through Q3 and has a favorable variance of $5.6 million or 6% under budget, a positive variance that is due to delays in hiring. At fiscal year-end we are forecasting spending of $112.5 million, which will be $9.4 million under budget, a surplus resulting from unfilled vacancies. Materials, Supplies, Services: Spending for Materials, Supplies, and Services through Q3 is $22.6 million and reflects a favorable variance of $5.1 million or 18% below budget. The positive variance is primarily due to a delay in billing emanating from the State Police for Troop E charges. Through Q3 13 we had only received and 2

4 processed Troop E bills for services through January of However, in the final quarter of the fiscal year, we anticipate spending will accelerate and the budget will be exceeded by $1.4 million, due to the addition of troopers in Troop E that were not factored in to the original budget. Office and Administrative Expenses: Office and Administrative Expenses total $20.7 million through Q3 with a favorable variance of $3.7 million or 15% below budget. The positive variance can be attributed to lower than anticipated utility costs. Office and Administrative Expenses are currently projected to end the fiscal year $1.6 million below budget. Construction and Maintenance: Construction and Maintenance expenditures total $3.5 million through Q3 and are $1.1 million or 24% below budget. Although maintenance expenditures should escalate during the fourth quarter of the fiscal year as spring activities such as sweeping, mowing, and the litter removal programs are mobilized, we are forecasting spending below budget by $1.3 million through the end of the fiscal year. Paygo Maintenance: The Highway Division has expended $57.3 million on Pay go Maintenance through Q3 and is $34.6 million or 38% under budget. The positive variance is occurring in the Metropolitan Highway System (MHS) due to delays in awarding contracts. In order to accelerate the awarding of contracts, MassDOT has transferred 30 employees from the Accelerated Bridge Program to the MHS to assist with assembling bid documents. However, it should be noted that Western Turnpike and Tobin are spending close to budget as of Q3. The overall forecast for year-end is to spend a total of $92.7 million, which is still $40.4 million under budget. Snow and Ice: As of the close of Q3 13, Snow and Ice expenditures totaled $83.0 million, with an unfavorable variance of $47.3 million or 133% over budget. This unfavorable variance is the result of the Blizzard of 2013 and other significant snow storms. There were 23 Snow and Ice events during FY 13. The forecasted spending on Snow and Ice operations for the full fiscal year is $109 million, which is $63.6 million over budget. We are seeking supplemental funds from the Legislature in the amount of $55.7 million to cover our non-toll Snow and Ice operating deficiency. We are not requesting supplemental funds for snow and ice operations on toll roads, instead covering that budget shortfall with toll funds. Registry Employee Payroll and Benefits: The Registry expended $29.1 million on Employee Payroll and Benefits and has a favorable variance of $2.1 million or 7% due to delays in hiring although it anticipates filling a large portion of vacancies during Q4. The Registry is forecast to spend a total of $40.4 million which will be $2.4 million under budget at year end. Materials, Supplies, Services: Spending on Materials, Supplies, Services totaled $5.7 million through Q3 and is $1.0 million or 15% below budget. The two major components of this expenditure category are credit card fees and license production. Although spending is below the seasonally adjusted budget, it is anticipated that overall spending in this category will exceed the budget by a nominal $22,000 by year end. This is due to credit card expenses that are trending 20% higher than the previous fiscal year. DOT continues to encourage customers to use online services, which results in increased credit card charges. 3

5 Office of the Secretary Departments Employee Payroll and Benefits: Employee Payroll and Benefits for the Office of the Secretary total $14 million through Q3 and is $12.5 million or 47% below budget. This is primarily due to the delay in transferring employees from capital to operating. While some employees have been transferred off of capital, not all have been transferred. Fiscal wants to ensure there is adequate non-toll revenue to cover the transferred employees. The yearend forecast is $20.7 million, or $16.7 million under budget. Fiscal is responsible for managing the Employee Payroll and Benefits budget and variances. Materials, Supplies, Services: The Office of the Secretary has expended $1.9 million on Materials, Supplies, and Services and is $707,000 or 27% under budget. The major reason for the positive variance is minimal spending in Interdepartmental Service Agreements (ISA). For example, although we have entered in to an ISA with the Inspector General s Office for audit services, it has incurred minimal expenses this fiscal year. We are forecasting total spending in this category of $3.4 million by fiscal year end, which is $380,000 under budget. The positive variances are occurring in and being managed by the following areas within Office of the Secretary: Chief Administrative Office, General Counsel, Real Estate and Development, and Fiscal. Office and Administrative Expenses: The Office of the Secretary has expended $13 million on Office and Administrative Expenses which is indicative of a favorable variance of $2.4 million or 15% below budget. A major component in this expenditure category is liquidity fees. Through March, we have paid six months of liquidity fees. The third quarter payment was processed in April. We are forecasting spending $20.2 million in this category with savings of $1.9 million. Although most divisions within the Office of the Secretary has an Office and Administrative Expense budget, the major budget variances are occurring in and being managed by the following divisions: Fiscal, Chief Administrative Office, and Real Estate and Development. Paygo Maintenance: Paygo Maintenance spending at the end of the Q3 is $1.4 million and is $3.5 million or 71% below budget. As noted above, the reduced spending is due to the delay in awarding contracts. We are forecasting spending by year-end of $3.5 million, which is $3.5 million under budget. The positive variances are primarily occurring in and being managed by the following divisions: Chief Administrative Office, General Counsel, and Chief Information Office. FULL YEAR TRENDS AND PROJECTIONS Revenue Trends and Projections: Toll revenue is projected to be 1% under budget due Hurricane Sandy and numerous snow events. Collection of toll violations is higher than the prior fiscal year. In FY 12, average monthly revenue from violations was just under $600,000 per month while in FY 13, the monthly average through March of 2013 is slightly over $850,000. Non-Toll revenue is projected to be lower than budgeted due to the delay in implementing fees and the McDonald s credit described above. The CTF Operations funding transfer is $50.8 million higher than budgeted due to supplemental funding for snow and ice operations and offset by a 9C budget reduction. 4

6 Expense Trends and Projections: Operating expenses are projected to be $13.1 million or 2% below budget at year end for the following major reasons; o The Paygo Maintenance budget is forecast to be under budget by $43.9 million o Employee Payroll and Benefits is forecast to be under budget by $28.7 million due to delays in hiring and the transfer of employees from capital to operating o Snow and ice spending is forecast to be over budget by $63.5 million. 5