POTOMAC AND RAPPAHANNOCK TRANSPORTATION COMMISSION PROPOSED FY 2012 PRTC BUDGET & SIX YEAR PLAN Presentation to Potomac and Rappahannock Transportation Commission January 13, 2011
Presentation Overview Background Observations Accomplishments to-date FY 2012 budget In summary In detail FY 2012 FY 2017 six year plan two options With a Prince William general fund supplement Without a Prince William general fund supplement Prospects for federal / state relief 2
Background Observations -- Introduction FY 2012 budget inaugurates the practice of preparing a budget in tandem with transit development plan (TDP) TDP is state mandate to delineate operating and capital needs over six-year period Provides VDRPT an explicit it picture of state t assistance needs based on aspirational and fiscally constrained scenarios TDP will be presented to the PRTC Board for adoption in March, shaped by tonight s action on the FY 2012 budget 3
Background Observations Introduction (Continued) Two FY 2012 / six year plan budget proposals being presented One with a proposed Prince William County general fund supplement in the out-years The other without t such a supplement Differences in two proposals confined to out-years (FY 2012 budget is identical in both) Magnitude of general fund supplement request has been reduced significantly 4
Chronology of General Fund Supplement Request Genesis -- Prince William s combined subsidy for PRTC and VRE exceeds County s current motor fuels tax yield In FY 2011, combined subsidy is $15 million while fuels tax yield is $12 million Increased federal / state assistance would ease this but, in the interim, prior year fuel tax surplus being used to sustain services This time last year, PRTC management projected that Prince William s prior year surplus would be depleted by FY 2014, creating cumulative deficits of $4 million in FY 2014 $6 million in FY 2015 Can be read to mean a sum of $6 million of Prince William general funds was projected to be needed d between FY 2012 & FY 2015 to sustain County-sponsored bus and rail services ($1.5 million/year) 5
Chronology of General Fund Supplement Request (Continued) PRTC management highlighted the same issue in a budget preview presentation at the PRTC December 2010 meeting Advised Board that two alternative FY 2012 budgets would be presented one with and one without a general fund supplement Indicated that magnitude of the prospective supplement would be resized / lowered as part of the FY 2012 budget preparation Re-sizing of prospective supplement completed, and it is substantially less than last year s projection because Ridership / passenger revenue tracking much better than budget One-time discretionary grant award (TIGER; $10 million) has lessened dependency on local funds State capital participation rates better than assumed last year (80% for rolling stock rather than 50%) Substantial carry-forward ($3.3 million) now confirmed as FY 2012 source VRE subsidy in out-years less than last year s projections 6
Accomplishments To-Date Service and Usage Ridership level sustained 4,500,000 despite lingering recession and drop in fuel 4,000,000 Annual PRTC Bus and VRE Ridership prices 3,500,000 3,000,000 Overcrowding conditions 2,500,000 on OmniRide eased but not eliminated resource 2,000,000 constraints 1,500,000 OmniLink on-time performance and call volume challenges being addressed by Board adopted remedial action plan 1,000,000 500,000 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 OmniRide OmniLink PRTC Bus VRE 7
Accomplishments To-Date Asset Management Bus fleet is well maintained and in excellent shape Mid-life overhauls progressing as scheduled Buses continue to be replaced generally as they reach PRTCdefined retirement age Longer than federal standard for commuter buses New commuter park-rideride lot completed Whole bus fleet now camera-equipped Transit Center enhancements progressing as planned New building security system procurement completed Emergency exit plans progressing Existing bus maintenance facility at practical capacity Environmental / design work on second bus maintenance facility to begin shortly 8
Accomplishments To-Date Customer Service Initiatives Completed Interactive voice response phone system enhancements Rider Express instant messaging enhancements Progressing as scheduled CAD/AVL system procurement New itinerary builder imminent; partnership with Google Bus shelter program 9
FY 2012 Budget Overview No new service or fare increase $230/month commuter benefit extended to end of calendar year 2011, meaning that benefit could revert to $120/month halfway into FY 2012 Minimal revenue hour allowance for schedule adjustments to compensate for increasing running times Capital investments in FY 2012 confined to: Safety sensitive improvements (e.g., replacement of retirement-age buses in active fleet; bus overhauls) CAD/AVL-related options * Reserve amounting to 2% for minimal COLA / merit adjustment last one was in FY 2009 * Base portion of the CAD/AVL is TIGER funded in FY 2011 10
Proposed FY 2012 Operating & Capital Expenses (PRTC & VRE Combined) PRTC Amount Percent First Transit contract $16,264,000 58% PRTC personnel 4,284,900 15% Fuel 3,810,400 14% Facility improvements / maintenance 603,800 2% Bus shelters / maintenance 521,000 2% Printing and reproduction 510,800 2% Computer equipment / services 378,200 1% Professional services 353,600 1% All other 1,486,900 5% Total operating budget $28,213,600 100% Bus purchases / rehabs / other capital improvements 7,944,720 Total operating and capital budget $36,158,320 VRE Operating and Capital (PRTC & NVTC jurisdictions combined) $87,686,175 11
Proposed PRTC FY 2012 Operating & Capital Budget Sources of Funds Description Admin OmniRide OmniLink Marketing Cap Improv Total Farebox $0 $9,353,600 $879,800 $0 $0 $10,233,400 Reimb. From VRE 80,600 0 0 0 0 80,600 State Grants 1,324,300 2,200,300 1,080,200 239,600 4,509,717 9,354,117 Federal Grants 0 2,366,200 638,700 240,000 2,170,336 5,415,236 Advertising Revenue 0 0 0 100,000 0 100,000 Interest 1,600 500 500 0 0 2,600 Carryover Fed/State/Local Funds 0 25,000 0 0 572,772772 597,772772 Subsidy PWC 192,400 2,327,900 5,974,400 664,100 689,995 9,848,795 Subsidy Manassas 23,900 0 201,600 11,200 1,100 237,800 Subsidy Man Park 14,700 0 151,200 8,400 800 175,100 Subsidy Stafford 60,500 0 0 0 0 60,500 Subsidy - Fredericksburg 22,600 0 0 0 0 22,600 Subsidy Spotsylvania 29,800 0 0 0 0 29,800 Total Revenue $1,750,400 $16,273,500 $8,926,400 $1,263,300 $7,944,720 $36,158,320 12
Proposed PRTC FY 2012 Operating & Capital Budget Uses of Funds Description Admin OmniRide OmniLink Marketing Cap Improv Total Personnel & Fringe Benefits $1,456,700 $1,304,900 $1,228,500 $294,800 $0 $4,284,900 Contractual Services 183,300 10,921,400 6,658,800 252,900 516,500 18,532,900 Other Services 88,600 3,548,800 804,100 709,600 0 5,151,100 Capital Outlay 21,800 498,400 235,000 6,000 7,428,220 8,189,420 Total Expenses $1,750,400 $16,273,500 $8,926,400 $1,263,300 $7,944,720 $36,158,320 13
Proposed PRTC FY 2012 Operating & Capital Budget Jurisdictional PRTC/VRE Subsidies Summary Subsidy by Jurisdiction Net Local Transit Expenditures PWC Proposed Manassas Proposed Man Park Proposed Stafford Proposed Fredericksburg Proposed Spotsylvania Proposed Total Proposed PRTC PRTC Admin Subsidy OmniRide (Commuter Bus) $192,400 $23,900 $14,700 $60,500 $22,600 $29,800 $343,900 2,327,900 0 0 0 0 0 2,327,900 Marketing 664,100 11,200 8,400 0 0 0 683,700 OmniLink (Local Bus) Local Capital Match 5,974,400 201,600 151,200 0 0 0 6,327,200 689,995 1,100 800 0 0 0 691,895 Subtotal $9,848,795 $237,800 $175,100 $60,500 $22,600 $29,800 $10,374,595 VRE Op. Subsidy 5,859,007 817,993 566,504 2,505,805 420,566 577,020 $10,746,895 Total PRTC/VRE Subsidy $15,707,802 $1,055,793 $741,604 $2,566,305 $443,166 $606,820 $21,121,490 14
FY 2012 FY 2017 Six Year Plan -- Overview Two options one with Prince William general fund supplement and one without t Differences are confined to FY 2013 FY 2017 Guided by the principle that service cuts are more of a hardship for riders and should be averted if possible No new or expanded services * Two options differ in two respects Magnitude of fare increases Age of OmniRide buses when they are retired * While there are no new or expanded services envisioned in the six year plan, one existing service OmniRide service to Tyson s seemingly requires bridge funding by PRTC tosustain ti it until the I 95 HOT lanes project and itspledged ld drevenue materializes. As the Commission i knows, the I 95 HOT lanes project has been delayed and consequently state funding to sustain the Tyson s service once the Beltway mitigation funding ceases will not be instantaneously forthcoming. Also, the Board s adopted plan for reconstituting Linton Hall service requires a nominal local expenditure beginning infy 2013 (i.e., $27K) 15
FY 2012 FY 2017 Six Year Plan Differences* * With Prince William general fund supplement A sum of $1.9 million spread over the FY 2013 FY 2017 period Fare increases amount to (on average) 8% in FY 2013 8% in FY 2015 8% in FY 2017 14 year life for OmniRide buses Without general fund supplement Fare increases amount to (on average) 10% in FY 2013 10% in FY 2015 10% in FY 2017 15 year life for OmniRide buses * Both six year plans sustain existing services, exclude new or expanded services,and nearly deplete PrinceWilliamCounty s fuel tax fund balance by end of six year period absent additional federal and/or state help 16
Six Year Plan Summary of flocal lsubsidy -- PRTC Jurisdiction FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Total Prince William (with supplement) Prince William (without supplement) $9.85M $11.18M $11.29M $10.36M $11.76M $11.99M $66.43M $9.85M $11.01M $10.96M $10.19M 19M $11.18M 18M $10.96M $64.15M Stafford $0.06M $0.06M $0.06M $0.06M $0.07M $0.07M $0.38M Fredericksburg $0.02M $0.02M $0.02M $0.02M $0.03M $0.03M $0.14M Manassas $0.24M $0.26M $0.26M $0.28M $0.29M $0.30M $1.63M Manassas Park $0.17M $0.20M $0.19M $0.20M $0.21M $0.22M $1.19M Spotsylvania $0.03M $0.06M $0.06M $0.07M $0.08M $0.08M $0.38M Total (with supplement) Total (without supplement) $10.37M $11.78M $11.88M $10.99M $12.44M $12.69M $70.15M $10.37M $11.61M $11.55M $10.82M $11.86M $11.66M $67.87M 17
Jurisdiction Six Year Plan Summary of flocal lsubsidy -- VRE FY FY FY FY FY FY 2012 2013 2014 2015 2016 2017 Total Prince William $5.86M $5.70M $5.80M $4.97M $4.78M $4.58M $31.69M Stafford $2.51M $2.43M $2.48M $2.13M $2.04M $1.96M $13.55M Fredericksburg $0.42M $0.41M $0.42M $0.36M $0.34M $0.33M $2.28M Manassas $0.82M $0.80M $0.81M $0.69M $0.67M $0.64M $4.43M Manassas Park $0.57M $0.55M $0.56M $0.48M $0.46M $0.44M $3.06M Spotsylvania $0.58M $1.17M $1.19M $1.02M $0.98M $0.94M $5.88M Total $10.76M $11.06M $11.26M $9.65M $9.27M $8.89M $60.89M 18
Jurisdiction Prince William (with supplement) Prince William (without supplement) FY 2012 Six Year Plan Summary of Local Subsidy PRTC & VRE Combined FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Total $15.71M $16.88M $17.09M $15.33M $16.54M $16.57M $98.12M $15.71M $16.71M $16.76M $15.16M $15.96M $15.54M $95.84M Stafford $2.57M $2.49M $2.54M $2.19M $2.11M $2.03M $13.93M Fredericksburg $0.44M $0.43M $0.44M $0.38M $0.37M $0.36M $2.42M Manassas $1.06M $1.06M $1.07M $.97M $.96M $.94M $6.06M Manassas Park $0.74M $0.75M $0.75M $0.68M $0.67M $0.66M $4.25M Spotsylvania $0.61M $1.23M $1.25M $1.09M $1.06M $1.02M $6.26M Total (with supplement) Total (without supplement) $21.13M $22.84M $23.14M $20.64M $21.71M $21.58M $131.04M $21.13M $22.67M $22.81M $20.47M $21.13M $20.55M $128.76M 19
Fuel Tax Fund Balances Over Time Millions of Dolla ars $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- Prince William County With Supplement FY12 FY13 FY14 FY15 FY16 FY17 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- Prince William County Without Supplement FY12 FY13 FY14 FY15 FY16 FY17 PRTC & VRE Project Subsidy Fund Balance Fuel Tax Reciepts 20
Fuel Tax Fund Balances Over Time llions of Dollars Mi $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $- Stafford County FY12 FY13 FY14 FY15 FY16 FY17 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $- City of Manassas FY12 FY13 FY14 FY15 FY16 FY17 City of Manassas Park Millions of Dolla ars $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- FY12 FY13 FY14 FY15 FY16 FY17 Total Subsidy and Other Transportation Projects PRTC & VRE Project Subsidy Other Transportation Projects Fund Balance 21
Fuel Tax Fund Balances Over Time City of Fredericksburg Spotsylvania County Millio ons of Dollars $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $- FY12 FY13 FY14 FY15 FY16 FY17 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $- FY12 FY13 FY14 FY15 FY16 FY17 Total Subsidy and Other Transportation Projects PRTC & VRE Project Subsidy Other Transportation Projects Fund Balance 22
Prospects for Federal / State Relief Federal reauthorization still in a holding pattern 6-12 month wait New bill could be shorter than six years, and its magnitude / complexion is highly uncertain in light of mid-term election result Also uncertainty about earmarks Governor McDonnell s proposals Increased transportation funding employing one-time sources Increased bonding supported by multiple sources Sale of ABC stores One-time revenue identified by VDOT audit Possible recurring sources TBD Increased use of tolling, HOT lanes Constitutional prohibition on diversion of Trust Fund revenues 23
Questions? 24