DRAFT September 25, 2017
FY2018 Business Plan & Budgets 1. FY2018 Funding Envelope 2. FY2018 Goals 3. FY2018 Targeted Investments 4. FY2018 Capital Budget 5. FY2018 Operating Budget 6. FY2018 Budget Summary 2
Cash Flow Summary FY2018 FY2022 Draft Sources & Uses Summary Metropolitan Transit Authority of Harris County, TX Fixed Assumptions: Base Operating Expenses Increase 3.0% from FY2017 to FY2018; 2% thereafter DRAFT FY2018 Business Plan Sources & Uses Scenario Summary 50% of GMP Increment to Debt, 25% to Operating, 25% to Capital ($ in Thousands) 15% Operating Reserve (Debt Policy) 10% Emergency Reserve (Board Policy) For Discussion Purposes Only Additional $10 million Reserve (Board Policy) (Removed in FY2018 to cover potential expenses from Hurricane Harvey) 2017 2018 2019 2020 2021 2022 A. Sales Tax Growth Adjustment 1.00% 0.75% 0.50% 0.25% B. Sales Tax Available to METRO (after GMP Transfer) 520,554 552,376 590,086 627,760 666,807 708,873 C. Operating Budget 555,071 620,063 613,017 625,913 639,916 655,817 D. METRORail Completion 20,974 51,532 16,297 13,041 19,253 33,521 Phase 1 (three rail lines, facilities and equipment) 20,501 36,926 2 - - - Phase 2 (additional vehicles and facility expansion) 473 14,606 16,295 13,041 19,253 33,521 E. Capital Improvement Program 120,850 166,186 149,418 131,478 113,878 106,108 - Contracted / Obligated 104,410 94,662 62,392 30,525 1,005 - - Committed 10,041 65,524 81,026 94,953 112,872 97,651 - Non-Obligated or Committed 6,399 6,000 6,000 6,000 0 8,457 F. Ending Cash Balance 269,330 172,331 156,227 164,279 168,187 186,396 Reserves Included in Ending Cash Balance 15% Operating Reserve (Debt Policy) 83,261 93,010 91,953 93,887 95,987 98,373 10% Operating Reserve (Board Policy) 55,507 62,006 61,302 62,591 63,992 65,582 $10 million additional Reserve (Board Policy) 10,000-2,500 7,500 7,500 10,000 Total Reserves 148,768 155,016 155,754 163,978 167,479 173,954 G. Ending Cash Net of Reserves 120,562 17,315 473 300 708 12,441 10 3
FY2018 Goals Safety Security Universal Accessibility State of Good Repair Customer Experience Planning for the Future Marketing our Service 13 4
Safety Initiatives reduce accidents and incidents to our patrons and employees. Safety Investments Capital Budget: $ in millions Rail Alignment Fencing 3.6 Traffic Signal Arms on Main St. 1.7 Pavement Markings 1.2 Audible Pedestrian Signals on Red Line 1.2 Bluetooth Proximity Alert System 1.0 LRV Cab Cameras 0.8 Sunset Reconstruction 0.7 Quad Gates at Wheeler & U of H 0.5 Shared Lanes at TMC 0.5 11.2 Operating Budget: Safety Department 8.6 Bus & Rail Training 2.5 Operations: Safety Initiative & Audit 1.7 12.8 Total $24.0M 5
Security Initiatives reduce crime that can occur on METRO vehicles and at METRO facilities. Security Investments Capital Budget: $ in millions Northwest Transit Center Reconfiguration & Parking Upgrade 6.3 Magnolia Transit Center Expansion 4.6 Northwest BOF Security Camera Installation 0.5 11.4 Operating Budget: METRO Police Department 26.2 Security Services 2.1 Security Technology 1.0 29.3 Total $40.7M 6
Universal Accessibility Initiatives enhance or upgrade METRO facilities to enable all customers to access METRO service. 7
State of Good Repair Initiatives extend the life of METRO s capital assets, including revenue vehicles and public facilities. State of Good Repair Investments Capital Budget: $ in millions Bus Replacements 69.2 Rail Tie Overhauls 4.2 Engine Assemblies 4.1 METROLift Vans 3.5 Traction Power Pull Box Upgrade 3.2 Data Center Management 3.1 Rail Car Brake Overhaul 2.8 Hybrid Bus Batteries 2.1 Network Upgrades and Management 1.6 Northwest BOF Bus Wash 1.3 95.1 Operating Budget: Bus Maintenance 82.7 Rail Maintenance 19.0 Facilities Maintenance Department 25.4 State of Good Repair Division 0.3 127.4 Total $222.5M 8
Customer Experience Initiatives focus on providing quality service and amenities to our riders. Capital Budget: $ in millions Westheimer Enhanced Bus Service 2.8 Bluetooth Beacons * 0.4 Mobile Ticketing 0.1 Total $3.3M * Includes technology to improve accessibilty for disabled community. 9
FY2017 FY2018 METRORail Expansion, $47.2, 26% METRORail Completion, $51.5, 24% Capital Improvement Program, $131.0, 74% Capital Improvement Program, $166.2, 76% $178.2 million $217.7 million 22.2% over FY2017 10 8
FY2018 $166.2 million Non-Bus Acquisition Examples FY18 Budget Local Grant Tier 1 Bus Stop ADA $ 4.6 $ 4.2 $ 0.4 Compliance Traffic Signal Arms $ 0.5 $ 0.5 $ - Rail Alignment Fencing $ 3.6 $ 3.6 $ - Northwest Transit Center $ 6.3 $ 0.0 $ 6.3 Reconfiguration & Parking Expansion Magnolia Transit Center $ 4.6 $ 1.6 $ 3.0 Expansion Rail Tie Overhauls $ 4.2 $ 4.2 $ - Engine Assemblies $ 4.1 $ 4.1 $ - Westheimer Enhanced Bus $ 2.8 $ 2.8 $ - Service Trapeze Scheduling Software $ 0.7 $ 0.7 $ - US 290 Cypress L-Ramp $ 10.3 $ 1.9 $ 8.4 West Loop Bus Lane $ 1.7 $ 1.7 $ - (in millions) 10 11
2018 Proposed Operating Budget: $620.1 million FY2017 Operating Budget $ 568.1 2017 Budget $ (1.4) Super Bowl $ 3.9 2017 Additional Service $ 570.6 Million - BASE Financial Parameter FY2018 Proposed Operating Budget $ 587.6 Million BASE 3% $ 10.0 Allowance for Hurricane Harvey $ 5.6 Security Investments $ 4.3 Long Range Plan (LRP) Development $ 2.7 Draft LRP Public Outreach $ 2.5 Final LRP Public Engagement & Education $ 3.4 Bond Referendum Education $ 1.0 Legal Expenses $ 3.0 Real Estate Fund - Safety Investments $ 620.1 Million 124
FY2017 FY2018 5 13
Total FY2018 Proposed Workforce: 4,229 FY2017 Authorized Workforce 4,082 FY2018 Proposed Workforce 4,229 Fare Inspectors Police Officers/Cadets Increased Service Increased Cleanliness 14
Description Approved FY2017 Budget Proposed FY2018 Budget Change Operating Budget $ 568.1 $ 620.1 $ 52.0 9.2% Capital Budget 178.2 217.7 39.5 22.2% GMP Transfer 169.8 176.8 7.0 4.1% Debt Service 99.3 97.0 (2.3) (2.3%) Total $ 1,015.4 $ 1,111.6 $ 96.2 9.5% (in millions) 153