Special Audit & Budget Review Meeting: FY16/17 Budget June 23, 2016
Budget Overview Budget Objectives Ensure core service levels are maintained and/or increased across all modes Increase ridership across all modes of service Continue SHIFT to a state of good repair on buses, ferries and trains Increase focus on passenger amenities and safety Address technology needs Budget Assumptions Defer the scheduled second phase of the fixed-route fare adjustment Recognize the incremental fare increase for Paratransit services of $.50 Paratransit card holders may utilize fixed route services free of charge Advertising revenue enhancements to include local and national wine and brewery accounts Reinstate the Ferry 2-ride pass 2
Fare Increase Phase II Business Case Analysis
Revenue Budget (in thousands) FY15/16 FY16/17 Approved Proposed $ r % r Budget Budget Prior Year Prior Year Operating Revenue $ 22,075 $ 22,328 $ 253 1.1% Local Contribution 40,597 42,770 2,173 5.4% State Aid 16,851 17,339 488 2.9% Federal Aid 17,042 17,043 1 0.0% Total Revenues $ 96,565 $ 99,480 $ 2,915 3.0% Budgetary Highlights Flat passenger revenue Enhanced advertising sales Slight increase in Local contribution, primarily due to 2.7% increase in bus service Marginal increase in State funding Flat Federal funding Originally presented: Draft FY16/17 Budget, ABRC, February 27, 2016 Proposed FY16/17 Budget, TDCHR Commission, May 26, 2016 4
Fare Increase Phase II Analysis Phase I Review Phase I implemented October 2014 Base fare adjusted from $1.50 to $1.75 1 Day, 7 Day & 30 Day passes adjusted accordingly Results from Phase I Projected Actual Revenue 16.6% 11.9% Ridership -1.1M -1.5M *Proposed Fare Adjustments, TDCHR Commission, February 27, 2014 5
Increase Phase II Fare Analysis 20 19 GoPass365 $6.50 per pass GoPass365 Restructured Tiered & Per Swipe Phase II Implementation: Base Fare from $1.75 to $2.00 18 Along with base fare, 1 Day, 7 17 Day & 30 Day price points 16 increase 15 Projected Impacts: 14 Revenue Impact - $500K 13 Ridership Impact - (900K) 12 11 10 FY2013 FY2014 FY2015 FY2016 Projected FY2017 Projected Bus LRT Ferry Paratransit 6
Fare Increase Phase II Analysis - Alternative 20 19 18 GoPass365 $6.50 per pass GoPass365 Restructure Tiered & Per Swipe Phase II Implementation Alternative Base Fare from $1.75 to $1.80 17 Affects one-way fare only 16 1 Day, 7 Day & 30 Day price 15 points remain unchanged 14 Projected Impacts: 13 Revenue Impact-($278K) 12 Ridership Impact-(253K) 11 10 FY13 FY14 FY15 FY16 Projected FY17 Projected $0.25 Bus LRT Ferry Paratransit FY17 Projected $0.05 7
Fee Structure Based on a Five Cent Per Year Increase - DRAFT A Transit Cooperative Research Program (TCRP) report suggests rounding fares to the nearest $0.05 for individual payment yield a minor amount of ridership loss. Due to the minor changes year to year, the 1 Day, 7 Day & 30 Day pass price points will adjust on the fourth year. Yearly reviews will continue with recommendations to Management/Governing Board. Year Base Fare Day Pass 7 Day 30 Day Paratransit 2016 $ 1.75 $ 4.08 $ 19.25 $ 61.25 $ 3.50 2017 $ 1.80 $ 4.19 $ 19.80 $ 63.00 $ 3.60 2018 $ 1.85 $ 4.31 $ 20.35 $ 64.75 $ 3.70 2019 $ 1.90 $ 4.43 $ 20.90 $ 66.50 $ 3.80 2020 $ 1.95 $ 4.54 $ 21.45 $ 68.25 $ 3.90 2021 $ 2.00 $ 4.66 $ 22.00 $ 70.00 $ 4.00 2022 $ 2.05 $ 4.78 $ 22.55 $ 71.75 $ 4.10 2023 $ 2.10 $ 4.89 $ 23.10 $ 73.50 $ 4.20 2024 $ 2.15 $ 5.01 $ 23.65 $ 75.25 $ 4.30 2025 $ 2.20 $ 5.13 $ 24.20 $ 77.00 $ 4.40 2026 $ 2.25 $ 5.24 $ 24.75 $ 78.75 $ 4.50 2027 $ 2.30 $ 5.36 $ 25.30 $ 80.50 $ 4.60 2028 $ 2.35 $ 5.48 $ 25.85 $ 82.25 $ 4.70 8
Personnel Services Review
Expense Budget (in thousands) FY15/16 FY16/17 Approved Proposed $ r % r Budget Budget Prior Year Prior Year Personnel Services $ 56,269 $ 60,963 $ 4,694 8.3% Contracted Services 9,440 9,807 367 3.9% Materials & Supplies 13,257 11,135 (2,122) -16.0% Utilities & Taxes 1,328 1,319 (9) -0.7% Casualty & Liability 5,174 4,977 (197) -3.8% Purchased Transportation 7,987 8,452 465 5.8% Fees, Licenses & Misc. 3,110 2,827 (283) -9.1% Total Expenses $ 96,565 $ 99,480 $ 2,915 3.0% Budgetary Highlights Originally presented: Draft FY16/17 Budget, ABRC, February 27, 2016 Proposed FY16/17 Budget, TDCHR Commission, May 26, 2016 Personnel services increase of 8.3% is primarily due to additional Technology & Facilities staff in Admin.; Bus Operators in Ops. Contracted services increase of 3.9% due to improving facility cleanliness Materials & supplies decrease of 16% due to fuel savings of $2.3 M Utilities remain flat Casualty & liability savings continue in FY16/17 Purchased transportation increase of 5.8% due to a significant uptick in Paratransit trips 10
Active Position Count Comparison Position Additions in FY16/17 FY16/17 FY15/16 r Division FT PT FT PT FT PT Administrative 194 24 183 17 11 7 Operations Administration 128 11 124 8 4 3 Operators 505 66 491 66 14 0 Maintenance 148 7 146 6 2 1 Total Operations 781 84 761 80 20 4 Total Active Positions 975 108 944 97 31 11 Originally presented: Proposed FY16/17 Budget, TDCHR Commission, May 26, 2016 Administrative Division: (FT) 6 Technology, 4 Facilities, 1 Marketing; (PT) 1 Technology, 4 Facilities, 2 Revenue Service Operations Division: (FT) 14 bus operators, 2 bus supervisors, 1 safety trainer, 1 safety manager, 2 LRT maintenance; (PT) 1 seasonal bus supervisor, 1 security video tech, 1 file clerk, 1 seasonal cleaner 11
Achieving Agency Objectives & Priorities Administrative Address Technology Needs Six full time staff to manage increases in technology needs due to new systems, cyber security needs, and agency wide staff technical development Focus on Passenger Amenities Four full time staff to address cleanliness of shelters and transfer centers Four part time temporary staff to support grant funded asset management project (FTA Requirement) Increase ridership across all modes of service One full time public outreach and ridership liaison developments and collaborates with public, private, community and civic organizations to assist achievement of our ridership goals. 12
Achieving Agency Objectives & Priorities Operations Ensure core service levels are maintained and/or increased across all modes 14 full time bus operators to address service coverage and lessen the amount of overtime Two full time bus supervisors to provide increase field supervision Two full time light rail track maintainers to address safety audits and other federal railway safety mandates Focus on Passenger and Employee Safety One full time safety trainer as identified in the Training Internal Audit One full time safety manager as identified in the Training Internal Audit One part time security video technician Seasonal Staff (July through September) One bus supervisor One Cleaner Two Revenue Attendants 13
Next Steps Recommendations Staff respectfully recommends approval of the FY16/17 Budget as submitted Fare Increase deferred Base fare to remain $1.75 Recognize the incremental fare increase for Paratransit services of $.50 Review ridership trends in six months for recommendations for FY17/18 (beginning July 2017) Personnel in support of Agency s objectives and priorities Alternative Recommendation Approve FY16/17 Budget with noted adjustments Five (5) cent base fare adjustment From $1.75 to $1.80 Personnel in support of Agency s objectives and priorities 14