Revised 2011 Draft Operating and Capital Budgets

Transcription

1 Revised 2011 Draft Operating and Capital Budgets Board Meeting & Public Hearing November 17, 2010 Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 1

2 Mission We are dedicated to providing safe, accessible, convenient, and efficient public transportation services to Spokane neighborhoods, business and activity centers; We are leaders in transportation and a valued partner in the community s social fabric, economic infrastructure, and quality of life; We aspire to be a source of pride for the region. Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 2

3 Organizational Priorities Emphasize h i safety in all aspects of our operations Provide outstanding customer service Earn the community s trustt Provide organizational & employee development Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 3

4 2011 Budget Guidance Sustain quality regardless of service level. Maintain flexibility add revenue or reduce service when required. Continue with sustainable plan by avoiding long-term commitments that may not be funded. Implement phase 2 of service reduction plan. Preserve essential capital projects. Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 4

5 Service Fixed Route Draft 2011 Strategic Plan Reduce service by approximately 7% Retain 85% of our 2009 ridership level (9.4M rides) Paratransit Modify service with fixed route changes Add 5 vans to the Special Use Vanpool Program for a total of 12 Vanpool Deploy 10 new vans (state funded) Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 5

6 Draft 2011 Strategic Plan (Continued) Major Projects Publish Central City Transit Alternatives Analysis Continue Smart Bus Program (Phase 1: Cameras) Initiate Business System Upgrade Project Continue Plaza Improvement Program Initiate FCC Required Radio System Project Complete Facility Master Plan Implement Trapeze Operations and Customer Service Software Modules Award of Contract for Vanpool Software Execute Temporary Extended Vehicle Replacement Schedule Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 6

7 Draft 2011 Strategic Plan (Continued) Constraints No New Positions in 2011 Reduce the Scope of Phase 2 of Facility Camera Project Reduce all Travel not Associated with Training by 20% from 2009 Levels Constrain Training to 2009 Levels Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 7

8 Cost Containment Initiatives pg. 1 Budget Conservatively Manage Effectively: Projected 2010 favorable operating expense variance of $4.0M - $4.5M $1M Savings Two Year Contract Extension ( ) from First Transit Vehicle Capital $22.3M Reduction in Capital Plan Primarily due to Need for Fewer Vehicles and No Building Expansion Reduce approximately 50 positions by 2013 in process of service reductions Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 8

9 Cost Containment Initiatives pg Salary Adjustments 0.0% Management & Administrative 1.0% AFSCME 3939 (Paratransit) 1.0% ATU 1598 (Supervisors) 1.5% ATU 1015 (FR Operators, Maintenance, CS, Etc.) for last 6 months of contract Negotiated Medical & Retirement Plans to achieve significant long- term savings: Estimated 2011 Savings: Medical: $1.0M and Retirement: $350,000 Employee medical premium share to 5% for employees and 15% for dependants Deferred 9 Essential Positions Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 9

10 Deferred Essential Positions Position Justification No. Transportation Supervisors (FR) Restructure for CAD/AVL (Smart Bus) 3 Customer Service Representative Increased demand over last several years 1 2nd Class Mechanic Expansion of Vanpool program 1 Paratransit Reservationist Increased demand (temporarily filled with driver) 1 Web Developer Bring function in-house 1 HR Specialist Compensation & Benefits 1 IT Applications Specialist Increasing technology requirements associated with ithtrapeze operating software suite, facility cameras, phone system, and smart bus 1 Total Deferred Positions 9 Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 10

11 Canceled Capital Projects Facility Expansion $6,000, Fixed Route Buses (6 added back to CIP for 2012 $1.2M grant) 12,245,684 Direct Service Related Reductions 18,245,684 Park and Ride Expansion 4,470,000 Ticket Vending Machines 375,000 3 Non-Revenue Vehicle Replacements 150,000 6 Non-Revenue Vehicles Replaced with Retired Rideshare Vans 225,000 Other Capital Reduction 5,220,000 Total Capital Reduction $23,465, Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 11

12 Total Canceled, Extended, and Deferred Capital Projects Extended Deferred Canceled Projects Vehicles (Net Change) Projects (Net Change) Total Cumm ($3,150,000) ($3,150,000) ($3,150,000) 2009 ($870,000) 000) (4,114,246) (4,984,246) (8,134,246) 2010 (500,000) (5,630,895) (6,130,895) (14,265,141) 2011 (3,736,640) ($1,311,000) 1,845,141 (3,202,499) (17,467,640) 2012 (8,335,916), (932,456) 8,158,000, (1,110,372), (18,578,012), 2013 (4,805,020) 330,465 3,050,000 (1,424,555) (20,002,567) 2014 (3,618,108) 1,617,551 0 (2,000,557) (22,003,124) 2015 (1,600,000) (95,280) 0 (1,695,280) (23,698,404) Total ($23,465,684) ($390,720) $158,000 ($23,698,404) ,013, , ,003,638 Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 12

13 Sales Tax Assumptions 2011 Budget 2008 Actual -3.5% 2009 Actual -8.4% 2010 Budget / Projection -2.7% 2011 Projection -2.0% 2012 Projection 0.0% 2013 Projection 2.0% Projection 3.0% Estimated Decrease in Sales Tax Revenue $98.6M Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 13

14 $80.0 $70.0 $60.0 $50.0 Millions $40.0 $30.0 $20.0 $10.0 $ 2007 A 2008 A 2009 A 2010 P 2011 B 2012 P 2013 P 2014 P 2015 P 2016 P 2017 P 2018 P 2019 P 2020 P Current Sales Tax Projection $46.8 $45.1 $41.3 $40.2 $39.4 $39.4 $40.2 $41.4 $42.6 $43.9 $45.2 $46.6 $48.0 $ Budget Sales Tax $46.8 $48.1 $49.6 $51.1 $52.6 $54.2 $55.8 $57.5 $59.2 $61.0 $62.8 $64.7 $66.6 $ ST $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 $46.8 Change from 2008 Sales Tax Projection $ $(3.0) $(8.3) $(10.9) $(13.2) $(14.8) $(15.6) $(16.1) $(16.6) $(17.1) $(17.6) $(18.1) $(18.7) $(19.2) Cumm. Change from 2008 Sales Tax Projection $ $(3.0) $(11.2) $(22.1) $(35.4) $(50.2) $(65.8) $(82.0) $(98.6) $(115.7) $(133.3) $(151.4) $(170.1) $(189.3) Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 14

15 Revised 2011 Draft Budget Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 15

16 Spokane Transit Estimated Revenue by Source (Excluding Capital Assistance) Percent of Revenue 2011 Bud Bud Act. Sales Tax 65.5% 67.3% 69.8% Operating Revenue 17.8% 15.7% 14.2% Federal Prev. Maint. Grant 13.4% 13.3% 13.9% Miscellaneous 2.7% 2.5% 0.9% State Grant 0.6% 1.2% 1.3% Operating Revenue $10,708, % Federal Prev. Maint. Grant $8,037, % $60,084,333 Miscellaneous $1,611, % State Grant $348, % Sales Tax $39,377, % Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 16

17 Spokane Transit Operating Expense by Division (Excluding Capital Expenditures & Cooperative Projects ) Operating Expense (Million $) Change From 2010 Budget % Change From 2010 Budget 2011 Budget 2010 Budget Fixed Route $39.1 $41.1 ($2.0) -4.8% Paratransit $11.1 $11.9 ($0.8) -6.5% Vanpool $0.6 $0.7 ($0.0) -4.1% Plaza $1.3 $1.3 ($0.0) -0.1% Administrative $5.8 $5.7 $ % Total Operating Expense $57.9 $60.6 ($2.7) -4.4% Paratransit $11,134, % Fixed Route $39,100, % $57,931,596 Vanpool $638, % Plaza $1,260, % Administrative $5,798, % Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 17

18 Spokane Transit Operating Expense by Object (Excluding Capital Expenditures & Cooperative Projects ) Operating Expense (Million $) Change From 2010 Budget % Change From 2010 Budget 2011 Budget 2010 Budget Labor $23.5 $24.2 ($0.6) -2.6% Benefits $16.1 $16.5 ($0.4) -2.5% Services $7.7 $8.2 ($0.5) -5.7% Materials $7.7 $8.8 ($1.1) -12.0% All Others (1) $2.9 $3.0 ($0.1) -4.8% Total Operating Expense $57.9 $60.6 ($2.7) -4.4% (1) All Others include Utilities, Insurance, Taxes, Leases, & Miscellaneous Services $7,731,982, Utilities 13.3% Materials $969,654 $7,722, % 13.3% Insurance $1,134, % Benefits $16,057, % $57,931,596 Taxes $72, % Misc. $593, % Leases $102, % NOTE: As required by federal accounting standards, Labor includes wages for work time only. Benefits includes wages for paid time off. Materials include fuel costs. Services include contracted transportation, legal, etc. Labor $23,547, % Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 18

19 Spokane Transit Capital Expenditures Capital Expenditures (Million $) Amount Percent Local Funds $ % Federal Capital Grants $ % State Capital Grants $ % Total Capital $13.4 Customer Service & Technology Projects $5,613, % Planning Projects $1,998, % $13,364,686 Revenue Vehicles $1,632,000, % Non-Revenue Vehicles $351, % Maintenance, Facilities & Equipment $3,770, % Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 19

20 Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 20

21 Spokane Transit Source and Use of Funds Revenues: Expenditures: Operating Revenues $10,708,939 Fixed Route $39,100,165 Sales Tax 39,377,926 Paratransit 11,134,386 State Grant 348,654 Vanpool 638,032 Miscellaneous 1,611,814 Plaza 1,260,769 Federal Prev. Maintenance Grant 8,037, Administrative 5,798,244 Subtotal: (Exc. Capital) 60,084,333 Operating Expense 57,931,596 Federal Capital Grants 4,346,301 Capital Expenditure 13,364,686 State Capital Grants 40,000 Total Expenditures 71,296,282 Subtotal: Capital 4,386,301 Cooperative Street/Road Projects 1,728,473 Total Revenue 64,470,634 Decrease in Cash 8,554,122 Increase in Cash - Total Source of Funds $73,024,755 Total Use of Funds $73,024,755 Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 21

22 2011 Budget - Source of Funds 2011 Budget - Use of Funds Capital Grants $4,386, % From Cash Balance $8,554, % Capital Expenditures $13,364, % Cooperative Street & Road Projects $1,728, % $73,024,755 $73,024,755 Revenue $60,084, Operating Expense 82.3% $57,931, % Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 22

23 Spokane Transit Cash and Reserves Analysis 2011 Budget OPERATING ACTIVITIES Revenue (excluding capital grants) $60,084,333 Operating Expense (57,931,596) Revenue Over / (Under) Operating Expenses $2,152,736 CAPITAL ACTIVITIES (Local Funds) Purchase of Property, Plant, and Equipment ($8,978,385) Cooperative Street and Road Projects (1,728,473) Total Local Cash Used for Capital Activities (10,706,858) NET DECREASE IN CASH (8,554,122) CASH (Beginning of 2011) 44,714,817 CASH (End of 2011) 36,160,695 RESERVES Self Insurance Reserve (5,500,000) Board Designated Operating Reserve (8,689,739) 2011 End of Year Cash Balance After Reserves $21,970,956 Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 23

24 Millions $100 Spokane Transit Projection Model $59.5 $50 $46.8 $47.8 $45.1 $43.7 $44.7 $41.3 $ $39.4 $39.4 $40.2 $41.4 $42.6 $43.9 $45.2 $46.6 $48.0 $49.4 $36.2 $26.2 $20.6 $19.1 $18.1 $- $(50) $(100) $12.8 $13.9 $13.6 $13.9 $14.2 $14.1 $14.1 $14.5 $14.9 $15.3 $15.7 $16.1 $16.5 $16.9 $12.9 $6.4 $5.5 $0.0 3Q $7.8 Revised 2011 Draft 2011 Draft Budget d tf Forecast t Assumptions: Sales Tax Growth (Adjusted for 2009 Actual): 2010: 2.7%; 27%; 2011: 20%; 2.0%; 2012: 0.0%; 00%; 2013: 2.0% 20% 2014 & Beyond: 3.0% Fare Increase in , 2015 & 2018 Service Reductions (FR Equivalent September) 2010: 3%; 2011: 7%; 2012: 7% 2015 Cash Balanced After Reserve: $3.2M 2007 A 2008 A 2009 A 2010 P B P 2013 P 2014 P 2015 P 2016 P 2017 P 2018 P 2019 P 2020 P -$17.0 Operating Expense Local Capital Expense Co-Op Project Expense Revenue Misc Revenue Self Insurance Risk Reserve Board Designated Reserve Cash Balance (EOY) Sales Tax Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 24

25 2011 Budget Accomplishments Sustains quality services Maintains flexibility Continues a sustainable plan through h 2015 Implements Phase 2 of service reduction plan Preserves essential capital projects Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 25

26 Outreach Process October 20 Board Meeting: Draft 2011 Budget October 21 & 22: Four Employee Briefings Individual Board Member Sessions if Requested Early November: Board Workshop if Requested Early November: Employee & Public Workshops November 17 Board Meeting: Public Hearing on Revised Draft Budget December 15 Board Meeting: Adoption of Budget Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 26

27 Thank You Concludes Public Hearing Presentation Spokane Transit: Revised 2011 Draft Operating and Capital Budgets 27