Valley Metro Fiscal Year 2014 Financial Results. Budget and Finance Subcommittee October 9, 2014

Transcription

1 Valley Metro Fiscal Year 2014 Financial Results Budget and Finance Subcommittee October 9, 2014

2 Regional Fixed Route Bus Ridership 3-Year Comparison

3 Regional Fixed Route Bus Average Daily Ridership

4 Light Rail Ridership 3-Year Comparison

5 Light Rail Average Daily Ridership

6 Valley Metro Operated Paratransit 3-Year Comparison

7 RPTA Budget vs. Actual Report For the Year ending June 30, 2014 Valley Metro RPTA Operating Results $ Millions Year to Date Operations Expenditures Budget Actual Variance (Unfav.) Fixed Route Bus Paratransit Vanpool Regional Services Planning Administration METRO Rail (Salary, Fringe, OH) AZ Lottery Fund Disbursements Total Operations Expenditures

8 Valley Metro RPTA Capital Results RPTA Budget vs. Actual Report For the Year ending June 30, 2014 Year to Date Capital Expenditures Budget Actual $ Millions Variance (Unfav.) Bus Purchases Valley Metro (0.6) Lead Agency (0.1) Paratransit Vehicles Lead Agency Vanpool Vehicles (0.1) Other Capital METRO Rail Total Capital Expenditures

9 Valley Metro RPTA Cash and Investments FY13 vs. FY14 Account Description Type of Funds Balance at Balance at Change Wells Fargo Checking General Fund 5,439,673 2,908,276 (2,531,397) Wells Fargo Savings Capital Projects/Operating Reserves 103,127,288 99,180,546 (3,946,742) Wells Fargo Trust Bond Funds Capital Projects 14,688,406 - (14,688,406) Wells Fargo Certificates of Deposit Capital Projects - 2,979,157 2,979,157 US Bank Revenue Bonds Proceeds Capital Projects - 98,671,228 98,671,228 US Bank Revenue Bonds - Debt Service Reserve Debt service fund - 2,453,186 2,453,186 Local Government Investment Pool - Debt Service Reserve Bond Issuance Debt service fund 144,768 32,265 (112,503) Wells Fargo Cash with Escrow Agent Debt service fund - 7,872,787 7,872,787 Local Government Investment Pool - Other Investments Fiduciary/General Fund 7,359,298 13,196,694 5,837,396 Total Cash and Investments 130,759, ,294,139 96,534,706 Summary of Bond Funds 14,833, ,029,466 94,196,292 All Other Cash Reserves 115,926, ,264,673 2,338,414

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11 Finance FY15 Q1 Report Budget and Finance Subcommittee October 9, 2014

12 Valley Metro RPTA Operating Results Q1 RPTA Budget vs. Actual Report For the quarter ending September 30, st Quarter $ Millions Year to Date Operations Expenditures Budget Actual Variance (Unfav.) Budget Actual Fixed Route Bus Paratransit Vanpool Regional Services Planning Administration METRO Rail (Salary, Fringe, OH) Total Operations Expenditures Variance (Unfav.) Agency FTE's Budget vs. Actual For the quarter ending September 30, st Quarter Variance Valley Metro Integrated Budget Actual (Unfav.) Staff (Full Time Equivalents)

13 Open Positions Status Valley Metro Integrated Agency FY 2015 Adopted Positions - Status Update Division FY14 - Q4 June Open FY15 - Q1 Septempber Open Operations and Maintenance Administrative & Organizational Development 2 1 Planning & Development 2 3 Safety & Security 2 3 Communication & Marketing 1 1 Design & Construction 0 1 Finance 1 1 Total Open Positions % 10% Total Authorized Positions

14 Valley Metro RPTA Capital Results Q1 RPTA Budget vs. Actual Report For the quarter ending September 30, st Quarter Capital Expenditures Budget Actual Year to Date Variance (Unfav.) Budget Actual $ Millions Variance (Unfav.) Bus Purchases Valley Metro Lead Agency Paratransit Vehicles Lead Agency Vanpool Vehicles Other Capital METRO Rail (5.0) (5.0) Total Capital Expenditures

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16 Staffing Level Comparative Metrics Budget and Finance Subcommittee October 9, 2014

17 National Transit Database Summary Information Staffing Level data for comparison derives from annual NTD Reports: NTD submissions are audited by independent accountants Differing service delivery methods render precise comparisons to range from difficult to impossible Most recent reported data is 2012 Peer Profiles are provided in your packet 18

18 Peer Agencies 2012 National Transit Database 2012 NTD Dallas Denver Houston Sacramento Salt Lake City San Diego Full Time Employees 3,542 2,529 2, ,153 1,216 Passenger Trips (millions) Total Annual Budget $765.2 $ $895.2 $166.3 $509.9 $406.5 Vehicle Revenue Miles (millions) Effective service delivery denominators : Passenger Trips Vehicle Revenue Miles delivered 19

19 Comparative Metrics Average of six peers vs. Valley Metro 2012 NTD Dallas Denver Houston Sacramento Salt Lake City San Diego Peer Average Valley Metro 2015 Budget Full Time Employees 3,542 2,529 2, ,153 1,216 2, Passenger Trips (millions) Total Annual Budget (millions) $765.2 $ $895.2 $166.3 $509.9 $406.5 $643.6 $357.1 Vehicle Revenue Miles (millions) Valley Metro Staffing level below peers: Peers use more internal staff for major bus and rail operations Valley Metro uses contracted staff for bus transportation & maintenance Valley Metro Rail uses contracted staff for transportation Valley Metro Rail uses internal staff for vehicle and systems maintenance Drill down of labor to look for higher level of comparability 20

20 Breaking down labor Average of six peers vs. Valley Metro 2012 NTD Dallas Denver Houston Sacramento Salt Lake City San Diego Peer Average Valley Metro 2015 Budget Full Time Employees 3,542 2,529 2, ,153 1,216 2, Operations Employees 2,990 2,056 2, ,774 1,188 1, Capital Employees Regional Services FTE Gen Administration Employees Part Time Employees Valley Metro Operations employees just 7% of peer average Valley Metro Capital employees 31% of peer average Valley Metro has about half as many Gen Administration Employees as peers Of the 144 Gen Admin, 67 are serving region-wide customer service/marketing Valley Metro Gen& Admin staff serves greater passengers and revenue mile 21 services than our denominators indicate

21 Number of Employees to serve passengers 2012 NTD Dallas Denver Houston Sacramento Salt Lake City San Diego Peer Average Valley Metro 2015 Budget Full Time Employees 3,542 2,529 2, ,153 1,216 2, Operations Employees 2,990 2,056 2, ,774 1,188 1, Capital Employees Regional Services FTE Gen Administration Employees Passenger Trips (millions) Full Time EE per 100,000 Passenger trips Operations EE per 100,000 Passenger trips Gen Admin EE per 100,000 Passenger trips Valley Metro tracks significantly below peer average for total employees and operations employees due to varying service delivery methods Valley Metro tracks close to peer average for General Admin employees per passenger ride We are actually better than peer average: General Admin FTE per ride should be adjusted for Regional Services which serve over 75Million passenger trips adjustment would reduce FTEs per 22 trip

22 Number of Employees per Vehicle Miles 2012 NTD Dallas Denver Houston Sacramento Salt Lake City San Diego Peer Average Valley Metro 2015 Budget Full Time Employees 3,542 2,529 2, ,153 1,216 2, Operations Employees 2,990 2,056 2, ,774 1,188 1, Capital Employees Gen Administration Employees Vehicle Revenue Miles (millions) Operations EE per 100,000 Revenue Miles Gen Admin EE per 100,000 Revenue Miles Full Time EE per 100,000 Revenue Miles Valley Metro employee counts per vehicle miles delivered compare well below peers primarily due to variations in service delivery methods. Vehicle revenue miles include all modes that we serve: Bus, Rail, Paratransit, Vanpool 23

23 Recommendations Keep the benchmark simple Understand the metric is not a perfect measure of efficiency Keep perspective: Employee salary and fringe benefit costs are less than 8% of annual budget Track total FTE per 100,000 passenger rides Track total FTE per 100,000 vehicle revenue miles 24

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25 RPTA Cash Investment Policy Follow-up Discussion Budget and Finance Subcommittee October 9, 2014

26 Cash and Investments June 30,

27 FY14 Investment Results FY14 earned $281,000 Up from FY13 earnings $251,000 FY14 Average cash balance $158 million FY14 Average Yield 0.17% FY14 Average 6 month T Bill Yield 0.07% 28

28 Increasing yields in FY15 Investments with longer maturities cash requirement limitations 2014 Capital Bond Trust Funds (Rail Projects) Policy limitations Investment management City of Phoenix, Avondale, Gilbert experience Initiatives underway Bond Trust Funds High Liquidity to 20bps Explore Investment Management Contract Explore policy changes Broaden investment choices available under Az Title 35 29

29 Cash and Investments Three Year Forecast Allocations by Fund Type Fund type FY14 Q4 FY15 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 $ Millions Working Cash Operating Fund Reserve Capital Fund - RPTA Reserve Capital Fund - VMR Capital Bond Funds Totals

30 Cash and Investments Building an Investment Maturity Profile Work in Progress Fund type FY14 Q4 FY15 Q1 Avg Mat FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1 FY17 Q1 FY17 Q1 FY17 Q1 $ Millions Yrs Working Cash Operating Fund Reserve Capital Fund - RPTA Reserve Capital Fund - VMR Capital Bond Funds Totals Percent of Portfolio 30% 17% 17% 6% 6% 6% 4% 4% 4% 4% 4% Maturity in Years zero to Recap FY15 Maturities % FY16 Maturities % FY17 Maturities % Total Portfolio % 31

31 Next Steps Refine Cash Flow forecasts Further modeling with sensitivity analysis Extend maturities to improve yields Analyze new investment opportunities Potential Investment Management Contract Possible recommendations to amend Investment Policy Report back to BFS at next meeting 32

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34 Federal Funds Review Budget and Finance Subcommittee October 9, 2014

35 FY15 Funding Sources $324.6 Million 43

36 Federal Funds Overview Highway Trust Fund Mass Transit Account Urban Area Formula Funds State of Good Repair Bus and Bus Facilities Highway Account Surface Transportation Program Congestion Mitigation/Air Quality (CMAQ) TIGER program (discretionary) General Fund Capital Investment Program (New Starts) Supplements HTF Shortfalls 44

37 HTF Balance FY14 $12.0 $10.0 $8.0 $ Billions $6.0 $4.0 $2.0 $0.0 Highway Account Mass Transit Account 45

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39 Formula Funds Projects funded 5-Year Budget Operations $39 million Preventive maintenance support Fixed route service (JARC) Paratransit service (New Freedom) Commute Solutions Capital $206 million Fleet purchases (bus, paratransit, vanpool) Passenger facilities Light rail construction 47

40 Discretionary Funds Projects funded 5-Year Budget Capital $189 million Light rail construction Solar panels South Central planning 48

41 Short term Impacts from HTF Shortfall Delays in reimbursements Reimbursements less than full request Long term Reduction in future funding 49

42 Formula Projects Potential Delays Scenario 1 6 month delay in reimbursements Operating projects Additional cash float required $4 million Capital projects Additional cash float required $20 million Mitigation Strategies Additional bonding, short term financing Delay project implementation, short term Reduce operating costs 50

43 Formula Projects Potential Delays Scenario 2 18 month delay in reimbursements Operating projects Additional cash float required $12 million Capital projects Additional cash float required $60 million Mitigation Strategies Delay projects Additional bonding Reduce operating costs 51

44 Formula Projects Funding Level Scenario 1 Zero growth in funding No impact to current budget Regional Transportation Improvement Program assumes zero growth 52

45 Formula Projects Funding Level Scenario 2 5% reduction in funding $3 million annual reduction for region Operations $900,000 Increase local funding Increase fares Reduce service Capital $2,100,000 Increase local funding Delay projects Reduce scope of projects 53

46 Discretionary Projects Funding Level Scenario 3 5% reduction in funding National Impact Increase competition nationally for limited funds FY14 national funding level $2.1 billion 5% reduction would be $105 million FY15 recommended national funding level $2.5 billion $9.3 billion remaining commitments in existing grants $27.1 billion projects in process 54

47 Discretionary Projects Funding Level Scenario 3 5% reduction in funding Local Impact Reduce funding for future rail construction TLCP assumes 50% federal participation $910 million federal funding for future projects 5% reduction would be $45 million Mitigation strategies Increase local funding Additional local funds could prevent delays Delay projects One project possibly delayed beyond Prop 400 sunset Additional bonding/finance costs 55

48 Moving Forward HTF currently funded through May 2015 Continue to monitor status HTF fund balances Congressional action DOT cash management policies Develop mitigation strategies and procedures Ensure adequate cash reserves 56