metro st. louis fy 2012 operating and capital budget
DESCRIPTION
Metro's FY 2012 Operating and Capital Budget has been carefully prepared for optimal use of the resources available to meet customer needs during the coming year. The budget included Metro Transit and Business Enterprises.TRANSCRIPT
Table of Contents
GFOA Budget Award...................................................................................................1
Organizational History and Community Profile
Strategic Plan and Performance Overview
Financial Policies
Board of Commissioners and Executive Officers ........................................................2 Message from the President..........................................................................................4 Executive Summary ......................................................................................................6 Organizational Chart ..................................................................................................10 Employees by Division and Function .........................................................................11 Employees by Paygroup .............................................................................................12
Regional Map .......................................................................................................14 Organization History and Significant Events .......................................................15
Population and Culture .........................................................................................17 Employment by Industry ......................................................................................18
Economic Trends ..................................................................................................19
Purpose of Strategic Plan ......................................................................................21 Long-term Strategic Plan ......................................................................................21 Short-term Strategic Plan......................................................................................22
Strategic Alignment ..............................................................................................23 Goals and Objectives ............................................................................................24 Transit Key Performance Metrics ........................................................................39
Planning and Budgeting Policies..........................................................................42 Audit Policies .......................................................................................................42 Accounting Policies ..............................................................................................43
Projected Sources and Uses of funds ....................................................................46 Investment Policies ...............................................................................................48 Self-insurance Liability ........................................................................................51 Pension Plans ........................................................................................................51
Post Employment Benefit Policies .......................................................................55 Hedging Policy .....................................................................................................55 Debt Policies .........................................................................................................56 Revenue Policies...................................................................................................57
Grants and Assistance ..........................................................................................58 Financial Reserve Policies....................................................................................60
Operating Agreement ...........................................................................................61 Commitments and Contingencies .........................................................................61
Financing Instruments, Obligations and Debt ......................................................62 Long Term Debt ...................................................................................................66 Budget Process and Stakeholder Interface .................................................................73
Operating and Capital Budget and Grant Approval Process Flowchart ...............76 2012 Operating Budget Calendar .........................................................................77
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Table of Contents
Metro Transit System Total System .........................................................................................................78
Functions and Activities of Organizational Units
Capital Budget
MetroBus ..............................................................................................................79 MetroLink .............................................................................................................80
Call-A-Ride ..........................................................................................................81 Metro Transit System Budget Summary .............................................................82 Transit Operating Major Assumptions .................................................................84
Transit Operations ................................................................................................91 Engineering and New Systems .............................................................................96
Human Resources .................................................................................................98 Procurement, Inventory Management & Supplier Diversity ..............................101 Finance ...............................................................................................................103 Information Technology .....................................................................................106
Communications and Community Relations......................................................108 Marketing ...........................................................................................................110
Transit Improvement Plan Explanations ..................................................................112 Transit Improvement Plan Three Year Financial Summary ...............................115
Capital Revenue Assumptions............................................................................117 Capital Expenditure Assumptions ......................................................................120 Impact of Capital Improvements on Operating Budget ......................................124 Federal Programming Needs ..............................................................................127 FY 2012 – 2014 Capital Cash Flow Summary ...................................................128 FY 2012 Capital Programs and Projects ............................................................129 FY 2012 – 2014 Capital Programs and Projects ................................................131 FY 2012 – 2014 Uses of Funds ..........................................................................133
Business Enterprises Overview ................................................................................135 Gateway Arch Overview ....................................................................................136
Gateway Arch Budget Summary ..................................................................137 Gateway Arch Budget Assumptions ............................................................138
Goals and Objectives ....................................................................................141 Gateway Arch Capital Project Summary .....................................................143
Gateway Arch Parking Garage Overview ..........................................................144 Gateway Arch Parking Budget Summary ....................................................145
Gateway Arch Parking Garage Budget Assumptions ..................................146 Goals and Objectives ....................................................................................149
Gateway Parking Garage Capital Project Summary.....................................150 Riverfront Attractions Overview........................................................................151
Riverfront Attractions Budget Summary ......................................................152 Riverfront Attractions Budget Assumptions ................................................153 Goals and Objectives ....................................................................................156 Riverfront Attractions Capital Project Summary .........................................158
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Table of Contents
St. Louis Downtown Airport Overview ...................................................................159
Executive Services
Supplementary
St. Louis Downtown Airport Budget Summary ...........................................160 St. Louis Downtown Airport Budget Assumptions ......................................161
Goals and Objectives ....................................................................................164 St. Louis Downtown Airport Capital Project Summary ...............................166
Executive Services Budget Summary ................................................................167 Executive Services Budget Assumptions ...........................................................168 Executive Services Organization ........................................................................170 Goals and Objectives ..........................................................................................170 Executive Expense by Function .........................................................................173
Combined Operating Budget Summary .............................................................175 Glossary of Terms ..............................................................................................177 Glossary of Acronyms........................................................................................183
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Missouri - Illinois
The Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award reflects Metro’s commitment to meet the highest principles of governmental budgeting. Metro has received this award for five years. For the fiscal year beginning July 1, 2010, Metro received special recognition for documentation of performance measures within the company. We believe that our current budget document meets the program’s requirements and are submitting it to the GFOA to determine its eligibility for another certificate.
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Board of Commissioners
Illinois
Michael Buehlhorn David A. Dietzel Fonzy Coleman Treasurer
Tadas (Tad) Jeffery K. Watson Kicielinski
Missouri
Vincent C. Schoemehl, Jr. Kevin S. Cahill Dr. Richard LaBore Chairman Secretary
Lewis L. McKinney, Jr. Hugh Scott, III
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Authority and Government The Board is comprised of five members from Missouri and five from Illinois. Missouri Board members are appointed by the governor of Missouri. In Illinois, the Chairman of the Board of both St. Clair and Madison Counties appoint their representatives. The commissioners are required to be resident voters of their respective states and must reside within the Bi-State Metropolitan District. Each term is for five years and each serves without compensation.
Since February 1, 2003, the Agency has been doing business in the St. Louis area as “Metro.”
Executive Officers John M. Nations
President & Chief Executive Officer
Raymond A. Friem Kathy Klevorn Chief Operating Officer Interim Chief Financial Officer
Transit Operations Finance
Jennifer S. Nixon Christopher C. Poehler Senior Vice President Senior Vice President Business Enterprises Engineering & New System Development
Melva R. Pete Adella Jones Vice President Vice President Human Resources Governmental Affairs & Public Relations
Debra Erickson Larry B. Jackson Vice President & CIO Vice President, Procurement, Inventory Mgmt Information Technology & Supplier Diversity
James Cali John R. Langa Director Vice President Internal Audit Economic Development
Dee Joyce-Hayes General Counsel
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May 13, 2011
Message from the President
The Bi-State Development Agency/Metro presents for your approval the Fiscal Year 2012 Operating and Capital Budget by company, division, and strategic vision. Included is the federally required three-year Transportation Improvement Plan (TIP), which identifies operating and capital resources necessary to serve our growing customer base and meet the St. Louis region’s increasing transit needs. Metro’s TIP will be incorporated in the region’s list of priorities and projects eligible for federal financial assistance that will be developed by the East-West Gateway Council of Governments (EWGCOG), the region’s Metropolitan Planning Organization (MPO).
Fallout from the 2008 economic downturn continues on the world stage and is expected to influence 2012 operating and financial performance for the Agency as well. Slow growth trends and high unemployment negatively impact all enterprises under the Bi-State Development Agency/Metro umbrella. Tourism and sales tax revenues remain flat. Ridership is in a recovery phase following ridership losses during service cutbacks. Despite these challenges, the Bi-State Development Agency/Metro is moving confidently forward.
A major impact on our ability to recover is a new permanent revenue stream. Despite a recession and voter weariness of new taxes, passage of Proposition A on April 6, 2010 became a landmark event in St. Louis County signaling community understanding of the value of public transit in the region. After voters passed the measure, Metro Transit immediately began to implement restoration of services as outlined in Phase I of the 30-year plan “Moving Transit Forward”. The restoration impacted MetroBus, MetroLink, and Metro Call-A-Ride services. Service restoration was phased in, beginning in June 2010, and completed three months early in August 2010. Minor adjustments were made in November 2010 in response to customer input, restoring the geographic footprint that was scaled back in March 2009.
Now, planning for the future, this budget allocates resources that can be dedicated toward pursuing economic development opportunities which improve both our services and our region. Further, the 2012 Capital Budget incorporates requests for federal funding to provide alternative analysis to prioritize future Bus Rapid Transit (BRT) routes. Expansion of our transit system depends heavily on federal and state resources. Keeping future MetroLink expansion alive in the federal reauthorization process, therefore, remains a priority for Metro Transit.
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The Capital Budget also includes plans for replacement and modernization of revenue vehicles, peripheral equipment, and infrastructure of the Transit Division. Business Enterprises remains focused on preservation and future growth. The St. Louis Downtown Airport recently completed a major capital project, opening a new Fire Station and Emergency Management Center. The CityArchRiver 2015 project will be the primary focus of the Gateway Arch and Arch Parking Facility as the region’s plans to completely transform the St. Louis Riverfront advances into a reality.
The FY 2012 Operating and Capital Budget has been carefully prepared for optimal use of the resources available to meet customer needs during the coming year. The FY 2012 transit budget projects operating expenses before depreciation of $243.1 million. The Agency’s $481.2 million, three-year capital plan will require $83.7 million of local funds to leverage $397.5 million of state and federal funds for critically important capital projects. The Executive Services operating expense before depreciation is $2.9 million. The Business Enterprises Division’s operating revenue budget for FY 2012 is $11.5 million, which includes the Gateway Arch ($5.5 million), Riverfront Attractions ($2.8 million), St. Louis Downtown Airport ($1.4 million), and the Gateway Parking Facility ($1.8 million). The Agency will accrue $12.2 million for Other Post Employee Benefits (OPEB).
Metro Transit provides nationally recognized, award-winning transit service that moves thousands of people every day to work, school, and the other important destinations of a vital community. The Transit Company of the Agency creates economic vitality and jobs, making St. Louis a better place to live and work, and has a comprehensive, long-range plan for meeting the region’s transit needs over the next 30 years. The Agency also supports world class tourism venues through the Gateway Arch Trams and other Riverfront attractions. The Bi-State Development Agency’s St. Louis Downtown Airport represents $300 million in economic impact to the bi-state region.
In 2012, the Bi-State Development Agency/Metro is poised to expand our capability to even better support the region by advancing public transit and transit-oriented development, and by supporting tourism and industry. We will continue to manage our financial resources to assure that this agency continues to play a vital role in helping to shape the region’s quality of life and future economy.
John Nations President and CEO
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Executive Summary
2011 Financial Overview
After years of stagnant or declining revenues, the Bi-State Development Agency/Metro was forced to make transit service cuts in March 2009. In August 2009, the State of Missouri stepped in with a one-time emergency appropriation that provided temporary budget relief while the region continued to pursue a permanent solution to transit’s funding crisis.
St. Louis County leadership led by the St. Louis County Executive, placed Proposition A, a half-cent sales tax, on the April 6, 2010 ballot. The measure passed with 63% of the vote, marking a turning point in the history of the Agency. Passage of Proposition A provides a new permanent St. Louis County revenue stream for transit and also triggered collection of a quarter cent “Proposition M2” tax passed by the City of St. Louis in 1997. Both new revenue sources became effective on July 1, 2010, and the Agency began being paid receipts from St. Louis County Prop A and St. Louis City Prop M2 taxes in September 2010. Phased service restoration to pre-March 2009 levels is complete. While Proposition A stabilizes the Agency’s financial picture, many challenges remain. Prudent cash management is imperative to reduce the nearly $600 million in debt acquired by the Agency as a result of the Cross County MetroLink project. Focus will turn to the long-range strategic goals outlined in “Moving Transit Forward”.
2011 Notable Employees, Accomplishments and Events
A number of Metro employees have been recognized this year. News events related to Metro personnel include the following:
• John M. Nations became the new President and CEO. Among his many government and civic endeavors prior to joining the Agency, Mr. Nations was Mayor of Chesterfield, Missouri for a decade, a land-use and public finance lawyer for more than twenty years, a member of the East-West Gateway Council of Governments’ Board of Directors, and a leader and spokesman for the successful Proposition A Campaign in St. Louis County in 2010.
• Michael Buehlhorn was installed as a new commissioner representing St. Clair County in the State of Illinois. Mr. Buehlhorn has served as Executive Director of the Metro East Park and Recreation District, as a member of the Technology Advisor Group for the City Arch River Foundation and served as a Mayor of Swansea from 1985 to 2003. He also currently serves as the President of the Epilepsy Foundation of Greater Southern Illinois for both the Belleville and Mount Vernon chapters.
• John R. Langa became the new Vice President of Economic Development on March 14, 2011. With the addition of Mr. Langa, the Agency will renew its commitment to promoting economic development to improve the region and public transportation.
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• Jessica Mefford-Miller, Chief of Planning and System Development, was named one of the “Top 30 Business People Under 30 in the St. Louis Region”.
• Debra Erickson, Chief Information Officer and Vice President of Information Technology, was named one of the “Most Influential Business Women” by the St. Louis Business Journal.
• Patricia Hall, Director of ADA Services, was named “Diverse Business Leader Award Winner” by the St. Louis Business Journal.
• Brian Alexander, MetroBus Operator, was honored by Metro and the City of East St. Louis, IL for saving the lives of a family caught in a house fire.
• Michael Mavrogeorge, St. Louis Downtown Airport Fire Chief, received the “Airport Fire Rescue Achievement Award” from the American Association of Airport Executives.
• Former President & CEO Robert Baer, a civic leader who temporarily stepped in to lead the Agency during a time of crisis, resigned his position in October 2010 and was honored by the Metro Board of Commissioners for his help in restoring Agency credibility and goodwill among constituents to the Agency during his 34-month tenure.
Other Agency awards and recognition:
• Second place award from the International Association of Public Participation for the innovative program used by Metro to create the region’s first 30-year long range plan, using community partnerships and working with the East-West Gateway Council of Governments.
• The Finance Division received the Comprehensive Annual Finance Reporting Award from the Government Finance Officers Association (GFOA) for the 15th year in a row. The division also received the GFOA Distinguished Budget Award for the fifth time and a special commendation for performance measurements related to the budget.
Major events during 2011 include the following:
June 2010 • Metro launches first phase of service restoration.
July 2010 • Metro dedicates completed Arts in Transit sculpture at the Rock Road MetroLink Station.
August 2010 • Metro launches and completes additional service restoration three months early.
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September 2010 • Metro and Citizens for Modern Transit team up for the Ten Toes Express program to
encourage seniors to incorporate walking and transit into their lives to foster independence and healthy living.
• Metro’s project to rehabilitate the Eads Bridge is named one of the “100 Recovery Act Projects that are Changing America”.
October 2010 • Metro completes $2.7 million erosion control project in Illinois stabilizing soil along 4.5
miles of MetroLink track between Fairview Heights and Swansea, Illinois. • Metro launches community outreach program to help area seniors sign-up for Metro’s senior
reduced fare permit.
November 2010 • Metro responds to customer input and makes minor changes to transit service. • Metro and MERS/Goodwill team promote the “Donate and Ride” coat drive where
commuters are encouraged to donate coats and other supplies at transit locations throughout the region for charity.
December 2010 • The Gateway Arch Trams and retail operations and Gateway Arch Riverfront attractions,
operated by Metro, become part of the region’s Core of Discovery District, created to focus on art, history and culture of the St. Louis Riverfront.
• Metro completes rehabilitation of the North Hanley Transit Center using American Recovery and Reinvestment Act (ARRA) funds.
• Metro launches revamped, updated website: www.metrostlouis.org.
January 2011 • St. Louis Downtown Airport dedicates the new Fire and Emergency Management Facility
built with ARRA funds. • Metro completes installation of heaters on MetroLink platforms. The heaters are active only
during cold weather conditions and are activated by waiting passengers with the press of a button. The heaters, equipped with 15-minute timers, are designed to be energy efficient.
February 2011 • Metro takes delivery of the first of 50 new, reduced emissions, low-floor buses arriving this
year.
March 2011 • Metro installs new between-car safety bollards at all 37 MetroLink stations. They are
designed to prevent customers, especially the visually impaired, from stepping off the platform between cars during the boarding process.
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April 2011 • The St. Louis Downtown Airport not only represents a $300 million economic impact for the
region, but also put its emergency capability to work landing a number of small aircraft unable to land at Lambert International Airport when tornados ripped through the region, temporarily closing Lambert to air traffic.
2012 Preview
In Fiscal Year 2012, Metro will continue to focus on performance management to further improve the efficiency of operations. The Agency’s long range plan for serving the region’s public transit needs, “Moving Transit Forward”, identifies short-term, mid-range and long-term goals and objectives to be accomplished over the next thirty years. FY 2012 will focus on short-term goals identified in the plan related to alternative analysis for proposed Bus Rapid Transit (BRT) routes and beginning the planning process required to determine how future MetroLink expansions will be achieved. Other major capital projects and programs planned in FY 2012 include progress toward updating the fare collection system, the Eads Bridge rehabilitation, a radio communications project, accessibility upgrades at MetroLink platforms, upgrade of the financial systems (Oracle 12) and ongoing modernization of facilities and structures.
The Bi-State Development Agency/Metro is committed to continuing our mission of providing regional solutions to our regional challenges. As we move ahead into 2012, we will continue to look for efficient operating methods and the resourcefulness of the staff to help reduce costs and increase revenue while maintaining and improving the customer experience.
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Bi-State Development Agency (d.b.a Metro) Organizational Chart
Board of Co mmissioners
Pres ident & CEO Internal Audit
mmunications & munity Relations
Ec Devel
Gateway Arch
ffice l Counsel vernm
Gateway Arch Parking Facility
Gateway Arch Riverfront Attractions
Business Enterprises
ons ing st n Res
ro ent pl
on ce of ystem
rating an Res anage
In Man
St. Louis Downtown Airport
Marketing
ns ation
orkforce versity and
EEO
Capital Budget and Grants
ices aini
ganiz velop
Proc Admi
Accounting and Operating
Budget
on ty Tra Benef Pro
and s ent
Esta or Rel uppli
Executive O Genera Go ent Affairs onomic opment
Co Com
Transit Operati Engineer New Sy
and ems Huma ources
P Inv Sup
curement, ory Mgmt & ier Diversity
Finance Information Technology
Bus Transportati
Maintenan Way
New S Ope
s Hum M
ources ment
ventory agement
Risk Management
and Safety
Information Technology
Rail Transportati Securi Arts in nsit its curement Treasury
Services Office Services
Paratransit Planning
System Developm
Real te Lab ations S er Diversity Passenger Revenue
Vehicle Maintenance ADA Serv
Tr Or De
ng and ational ment
urement nistration
Facility Maintenance
Operatio Administr
W Di
Finance Administration
Executive Services
Business Enterprises
Transit System
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Metro Employees by Division & Function
FY 2012 Budget
Amended FY 2012 FY 2011 FY 2010 Budget* Budget** Variance Budget***
Transit Transit Operations
Bus Transporation 933 897 36 794 Rail Transportation 134 134 - 121 Paratransit Transportation 251 251 - 251 Vehicle Maintenance 336 336 - 295 Maintenance of Way 138 133 5 124 Facility Maintenance 32 31 1 31 Security 34 33 1 33 ADA Services 7 7 - 6 Service Planning 39 38 1 38 Operations Administration 2 2 - 2
Total Operations 1,906 1,862 44 1,695 Finance -
Passenger Revenue 33 33 - 31 Risk Management and Safety 21 21 - 20 Accounting and Operating Budget 23 23 - 23 Capital Budgeting and Grants 5 5 - 4 Treasury 2 2 - 2 Finance Administration 3 3 - 3
Total Finance 87 87 - 83 Procurement 54 53 1 53 Information Technology 44 44 - 43 Engineering and New Systems 20 22 (2) 22 Human Resources 18 18 - 17 Marketing 6 6 - 7 Communications 6 5 1 6
Total Transit 2,141 2,097 44 1,926
Agency 19 16 3 14
Business Enterprises Gateway Arch 11 11 - 11 St. Louis Downtown Airport 11 11 - 11 Gateway Arch Parking Facility 6 6 - 6 Riverfront Attractions 12 14 (2) 14
Total Business Enterprises 40 42 (2) 42
Total Metro 2,200 2,155 45 1,982
* Bus operators in FY 2012 are budgeted more economically by using part-time operators in lieu of full-time operators ** Full time employees for FY 2011 reflect planned service restorations that were made possible by the
passage of the 1/2 cent sales tax in St. Louis County on April 6, 2010. *** Full time employees in FY 2010 reflect service cuts made after the 1/2 cent sales tax referendum failed
in November 2008.
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Metro Employees by Paygroup
FY 2012 Budget
Amended Budget* Budget** Budget*** FY 2012 FY 2011 Variance FY 2010
Transit Operations Bus Operators FT 836 826 10 728 Bus Operators PT 24 - 24 -Rail Operators FT 95 95 - 89 Van Operators FT 202 202 - 202 Total Operators 1,157 1,123 34 1,019 Maintenance 353 352 1 317 IBEW 52 52 - 50 Clerical 28 29 (1) 29 Salaried 306 296 10 274 Capital 10 10 - 6 Total Transit Operations 1,906 1,862 44 1,695
Financial Maintenance 13 13 - 12 Clerical 16 16 - 16 Salaried 58 58 - 55 Total Financial 87 87 - 83
Procurement Maintenance 24 23 1 23 Clerical 3 3 - 3 Salaried 27 27 - 27 Total Procurement 54 53 1 53
Information Technology Clerical 5 5 - 5 Salaried 39 39 - 38 Total Information Technology 44 44 - 43
Engineering and New Systems Salaried 18 20 (2) 20 Capital 2 2 - 2 Total Engineering and New Systems 20 22 (2) 22
Human Resources Salaried 18 18 - 17 Total Human Resources 18 18 - 17
Marketing Salaried 6 6 - 7 Total Marketing 6 6 - 7
Communications Salaried 6 5 1 6 Total Communications 6 5 1 6
Total Transit 2,141 2,097 44 1,926
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Metro Employees by Paygroup
FY 2012 Budget
Amended Budget* Budget** Budget*** FY 2012 FY 2011 Variance FY 2010
Agency Salaried 19 16 3 14
Total Agency 19 16 3 14
Gateway Arch Salaried 11 11 - 11
Total Gateway Arch 11 11 - 11
St. Louis Downtown Airport Salaried 11 11 - 11
Total St. Louis Downtown Airport 11 11 - 11
Gateway Arch Parking Facility Salaried 6 6 - 6
Total Gateway Arch Parking Facility 6 6 - 6
Riverfront Attractions Salaried 12 14 (2) 14
Total Riverfront Attractions 12 14 (2) 14
Total Metro Companies Bus Operators FT 836 826 10 728 Bus Operators PT 24 - 24 -Rail Operators FT 95 95 - 89 Van Operators FT 202 202 - 202
Total Operators 1,157 1,123 34 1,019 Maintenance 390 388 2 352 IBEW 52 52 - 50 Clerical 52 53 (1) 53 Salaried 537 527 10 500 Capital 12 12 - 8
Total Metro Companies 2,200 2,155 45 1,982
* Bus operators in FY 2012 are budgeted more economically by using part-time operators in lieu of full-time operators. ** Full time employees for FY 2011 reflect planned service restorations that were made possible by the passage of the
1/2 cent sales tax in St. Louis County on April 6, 2010. *** Full time employees in FY 2010 reflect service cuts made after the 1/2 cent sales tax referendum failed in November
2008.
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Bi-State Region
(Missouri)
(Missouri)
(Missouri) (Missouri)
(Illinois)
(Illinois)
(Illinois)
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Bi-State Development Agency Profile
Organizational History and Significant Events The Bi-State Development Agency was established on September 20, 1949, by an interstate compact passed by the state legislatures of Illinois and Missouri, and then approved by the governors of the two states. The compact was approved by the United States Congress and signed by President Harry S. Truman on August 31, 1950. The compact created an organization that has broad powers with the ability to plan, construct, maintain, own and operate bridges, tunnels, airports and terminal facilities, plan and establish policies for sewage and drainage facilities and other public projects, and issue bonds and exercise such additional powers as conferred upon it by the legislatures of both states. The Bi-State Development Agency does not have the power to tax. Funding is received from local, state and federal sources. However, it is authorized to collect fees from the operation of its facilities.
In the first years of existence, the Bi-State Development Agency participated in, or conducted several studies which included a comprehensive plan for development of the Missouri-Illinois Metropolitan District, sponsored a survey of chemical and biological pollution of the Mississippi River, and an exhaustive study of the St. Louis County sewer problem that lead to a new sewer law that created the Metropolitan St. Louis Sewer District. The Bi-State Development Agency also sponsored a coordinated interstate highway planning action related to surveying highways and expressways. The most significant project undertaken in the early years was the construction of a 600-foot wharf at Granite City, Illinois in 1953.
History 1949 Agency created and approved by states of Illinois and
Missouri. 1950 Approved by US Congress. 1953 Granite City Dock bonds issued. 1962 Gateway Arch Transportation System bonds issued. 1963 Purchased 15 local transit systems. 1964 Purchased Parks Airport (St. Louis Downtown
Airport). 1967 Gateway Arch Transportation System opens (Arch
opened in 1965). 1983 Gateway Arch Parking Facility bonds issued. 1986 Gateway Arch Parking Facility opens.
Management Innovation Award from APTA. 1990 MetroLink construction begins. 1993 MetroLink opens.
St. Clair County in Illinois approves sales tax to fund future MetroLink corridor.
1994 City of St. Louis and St. Louis County approve ¼ cent sales tax for regional transit improvements.
1995 Best Large Transit System in North America award from APTA.
1997 Outstanding Achievement for Light Rail award from APTA. City of St. Louis passes ¼ cent sales tax contingent on St. Louis County passage.
1999 Outstanding Achievement for Light Rail award from APTA.
2001 St. Clair County Illinois MetroLink extension opens. Purchase of Tom Sawyer and Becky Thatcher riverboats.
2002 First of nine MetroBus transfer centers and garages opens.
2003 MetroLink opens to Shiloh-Scott Agency adopts the name “Metro.”
2004 Bus Transit Access Center opens. 2006 Cross County MetroLink branch opens. 2009 Failure of tax initiative on November 8, 2008 ballot
triggers significant Missouri service reduction. 2010 State of Missouri emergency funding aids partial
service restoration. St. Louis County approved Prop A ½ cent sales tax
2011 Missouri service restoration (all modes)
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Today, the Bi-State Development Agency operates under the name of Metro and is organized into two operational divisions: Business Enterprises and Transit. Included in the Business Enterprises Division are the Gateway Arch Tram System, the St. Louis Downtown Airport, the Gateway Arch Parking facility, and the Riverfront Attractions. The Transit Division includes three modes of public transportation operated by Metro. These transportation modes are the MetroBus, bus operations; the MetroLink, light rail operations; and Call-A-Ride, the demand response operations.
The diversified Business Enterprises Division that exists today began in 1962, when the Bi-State Development Agency was asked to fund and operate the tram system that would carry visitors to the top of the Gateway Arch Monument. A $3.3 million revenue bond issue was completed in July 1962, and the Agency’s relationship with the Gateway Arch began.
An agreement was reached in October 1962 where the Bi-State Development Agency would assist in the re-opening of Parks Metropolitan Airport at Cahokia, Illinois. After a series of approvals and resolutions, the Agency purchased the Airport in 1964 for $3.4 million, and later renamed it to the St. Louis Downtown Airport.
In 1983, the Bi-State Development Agency issued a $10 million revenue bond for construction of the Gateway Arch Parking Facility. This is a multi-level 1,250 space parking facility located on the grounds of the Jefferson National Expansion Memorial.
In July 2001, the Bi-State Development Agency purchased the Becky Thatcher and Tom Sawyer Riverboats to preserve the St. Louis Riverfront experience. Since 2001, the Riverfront Attractions have expanded to include the Arch View Café, a gift shop, bike rentals, concessions and a heliport barge from which helicopter tours are provided over downtown St. Louis.
The Transit Division began in 1963 when the Bi-State Development Agency purchased and consolidated 15 privately owned transit operations using a $26.5 million bond issue. Today Metro is best known for providing three modes of mass transportation services in the Greater St. Louis Region.
Metro expanded into light rail transportation with the design and construction of its first MetroLink light rail route beginning in the late 1980’s. The original 17 ½ mile corridor was constructed between Lambert International Airport and Fifth and Missouri Streets in East St. Louis, Illinois. The MetroLink system opened July 1993, and quickly gained the reputation of being one of the most successful rail systems in the United States. MetroLink doubled in length with the 2001 expansion to Shiloh, Illinois, home of Scott Air Force Base. The most recent light rail expansion occurred in August 2006 when the Cross County extension was completed. This expansion added another eight miles through Clayton south to Shrewsbury, Missouri. Today, MetroLink operates 46 miles of alignment with 37 stations and 20 Park and Ride lots.
In 1988, Metro Call-A-Ride began demand response service to fill a need for alternative transportation service to customers with disabilities and those who were unable to use regular fixed route bus or light rail service. Since then, Metro has created programs to educate and certify all paratransit users. Metro also spearheaded the regional Transportation Management Association (TMA) which consists of private for-profit and non-profit transportation providers working together to provide regional paratransit services.
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Community Profile Population and Culture
Population Trend Region 2000 2010 % Change
St. Louis City 348,189 319,294 -8.3%
St. Louis County 1,016,315 998,954 -1.7%
St. Charles County 283,883 360,485 27.0%
Jefferson County 198,099 218,733 10.4%
Preliminary 2010 data from the US Census Bureau indicates approximately 2.5 million people live in the Greater St. Louis region served by Metro. This data indicates a shift in population from the City of St. Louis to suburban communities in Missouri and Illinois, and a growing need for public transportation outside of the City of St. Louis. Today, Metro’s service area includes the City of St. Louis, St. Louis County, and portions of St. Clair County in Illinois. Residents from Madison County enjoy the benefits of the Metro System through coordinated services with the local services in that area. Other communities such as St. Charles and Jefferson Counties in Missouri, and Monroe County in Illinois may access Metro Transit Centers and park-and-ride lots near the borders of these communities.
St. Clair County 256,082 270,056 5.5%
Madison County 258,941 269,282 4.0%
Monroe County 27,619 32,957 19.3%
Total 2,389,128 2,469,761 3.4%
United States 282,171,957 308,745,538 9.4%
The Greater St. Louis region is a culturally diverse community with much to offer. In the Greater St. Louis region, you will find the cosmopolitan atmosphere of a large city commingling with an energetic urban lifestyle.
Caucasian80.2% African
American16.0%
Asian2.2%
Hispanic & Other
1.6%
Cultural Diversity
Three professional sports teams – Cardinals baseball, Rams football and Blues hockey – play in downtown St. Louis. Laclede’s Landing and a revitalized riverfront district features additional entertainment opportunities including casinos, restaurants, shops and the Gateway Arch and National Park complex. Union Station is a national historic landmark housing a Marriott Hotel, restaurants, special shops and entertainment. The Delmar Loop is a vibrant, eclectic six-block entertainment and shopping district. South Grand Boulevard is a center for many ethnic restaurants and art galleries. Historic Soulard features an open-air farmers’ market and beautifully restored homes around the In-Bev Anheuser-Busch brewery. The Hill is home to Italian neighborhoods, shops and restaurants. The Central West End is famous for its eateries, antique shops and grand old homes as well.
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St. Louis’ famous Forest Park was site of the 1904 World’s Fair. It is frequented by runners, rollerbladers, and picnickers and hosts some of the region’s favorite cultural and educational institutions including the St. Louis Art Museum, St. Louis Zoo, St. Louis Science Center and Missouri History Museum. All are free to the public. Additionally, the 12,000-seat outdoor amphitheatre known as the Muny Opera offers outdoor summer theater productions in Forest Park. The region boasts five state parks and hundreds of neighborhood parks making it a beautiful place to visit. Attractions within driving distance include Fairmont Park, thoroughbred racing; Cahokia Mounds State Historic Site; and Six Flags over Mid-America. St. Louis also has close-knit, friendly communities with a variety of educational opportunities. The region has 162 different school districts, 890 public schools, 370 private and parochial schools, and 30 technical and vocational schools. More than twelve universities and four-year colleges, including Washington University, Saint Louis University and the University of Missouri-St. Louis are located in the greater St. Louis region. Additionally, eighteen two-year institutions and professional schools enhance the quality and skills of the region’s work force and enrich its intellectual creativity and strength. In the heart of the country, St. Louis is a convenient destination from anywhere in the country. Transportation access includes four major interstates, Lambert St. Louis International Airport, several regional airports and Amtrak. Once in St. Louis, a major part of the region is served by Metro’s MetroBus, MetroLink and Metro Call-A-Ride Operations. The same attractions, cultural institutions and negotiability that make the St. Louis region a great place to visit also make it a great place to live. The Greater St. Louis region boasts lowest cost of living among major metropolitan areas and the second most affordable housing compared with the top 20 large metropolitan areas in the country. Employment by Industry The graph below depicts the importance of the services industry to the region. Hospitality is an important segment of the service industry, drawing 22.3 million visitors annually.
0
50,000
100,000
150,000
200,000
250,000
300,000Employment Distribution by Industry
Trade, Transit, UtilitiesEducational, Health ServicesBusiness ServicesGovernmentLeisure, HospitalityManufacturingFinancial ActivitiesAgriculture, Construction, MiningOther ServicesInformation
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The America’s Center Convention Complex welcomes some of the country’s largest meeting groups to its user-friendly facility. The services industry also includes healthcare and education. The five largest employers in the region include BJC HealthCare, Boeing Integrated Defense Systems, Scott Air Force Base, the United States Postal Service and Washington University. Economic Trends The Greater St. Louis region has also been impacted by the economic downturn. Yearend 2010, the national average unemployment rate was 9.6%. Today, unemployment is trending lower. Within the Bi-State area, the City of St. Louis and St. Clair County in Illinois generally track worse than the national unemployment statistics. The next graph demonstrates unemployment rates in the Bi-State area. Since a significant portion of Metro’s ridership is composed of business commuters, unemployment clearly impacts Metro operations.
0.0%
2.0%
4.0%
6.0%
8.0%
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12.0%
14.0%
1980 1990 2000 2010
Unemployment Trends
St. Louis CitySt. Louis CountySt. Charles CountyJefferson CountySt. Clair CountyMadison CountyMonroe CountyUnited States
Other statistics which have a direct correlation to Metro operations are Per Capita income, Poverty Levels and Educational levels. Per Capita Income is defined as the income computed for every man and woman in a geographic area age 16 and over. This statistic is derived by dividing the total income of all people age 16 and over in a geographic area by the total population in that area. As can been seen in the next graph, St. Louis County has exceeded national trends for per
0 5,000
10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
1980 1990 2000 2005 2009
Per Capita Income
St. Louis CitySt. Louis CountySt. Charles CountyJefferson CountySt. Clair CountyMadison CountyMonroe CountyUnited States
(2010 data unavailable at time of printing)
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capita income over the last 25 years while the rest of the Bi-State region has usually been at or below the national trends in Per Capita Income.
0%
5%
10%
15%
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30%
1980 1990 2000 2009
Percent of Families with Income Below Poverty Level
St. Louis City St. Louis County St. Charles CountyJefferson County St. Clair County Madison CountyMonroe County United States
The poverty thresholds are the same for all parts of the country. They are not adjusted for region, state or local variations in the cost of living. According to the 2009 US Census Bureau, the national average of families living below the poverty level was 14.3%. The Bi-State region includes poverty level trends that are both better and worse than the national average. These trends may be influenced by socioeconomic factors relating to environment and education. The graph to the right illustrates the most recent US Census Bureau statistics relating to residents over age 25 in the Greater St. Louis region who are high school graduates. These statistics reveal St. Louis County and St. Charles County have the highest percentage of high school graduates while percentage of high school graduates is lowest in the City of St. Louis. (At the time of printing, the 2010 data was not available.)
0%
20%
40%
60%
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100%
1980 1990 2000 2009
St. Louis City St. Louis County St. Charles CountyJefferson County St. Clair County Madison CountyMonroe County
Percent of High School Graduates
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Strategic Plan Overview Purpose of Strategic Plan To provide a comprehensive vision and sustainable plan for public transportation in the Greater St. Louis Region. Long-term Strategic Plan Several years ago, the Metro management team and community leaders recognized the need to develop a comprehensive long term strategic plan for public transportation in the Greater St. Louis Region. A cooperative planning process was begun involving Metro management, East West Gateway Council of Governments (EWGCOG), community leaders and users of public transportation. In February, 2010, following numerous meetings with all stakeholders and diligent transportation research, a comprehensive strategic long range plan named “Moving Transit Forward” was developed and approved by EWGCOG and Metro’s Board of Commissioners. The “Moving Transit Forward” plan may be viewed on the Metro website at: www.MovingTransitForward.org The “Moving Transit Forward,” long-range strategic plan offers options that EWGCOG, the region’s planning agency, can use when deciding next steps for public transit in the Greater St. Louis Region. As EWGCOG makes those decisions on transit service, Metro will implement and operate those services.
The “Moving Transit Forward” plan was developed to document a fiscally responsible, community-driven vision for restoring, enhancing, and expanding the Metro Transit System and will:
• Promote regional economic development. • Strengthen Metro Transit as a vital regional asset. • Provide quality transit access to more people. • Improve service to low-income, elderly, and disabled residents. • Include projects that are cost-effective.
With the adoption of the long-term plan and approval of a new tax subsidy, the region can confidently proceed with implementation of the long-term plan. Medium- and long-range construction projects will be subject to Federal and State of Missouri matching funds. Plans include:
Short-Range (1-5 years)
• Significant service reductions in March 2009 impacted all three modes: MetroBus, MetroLink, and Metro Call-A-Ride. These services have been restored.
• Plan and design the next MetroLink extension, subject to determination by EWGCOG.
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• Plan two Bus Rapid Transit (BRT) routes, subject to determination by EWGCOG. BRT offers higher speed, high capacity service.
• Improve passenger amenities and technology.
Medium-Range (5-10 Years) (Subject to Federal and State of Missouri funding availability)
• Construct and operate one light-rail expansion route. • Plan additional BRT routes. • Plan and design additional transit centers.
Long-Range (10-30 years) (Subject to Federal and State of Missouri funding availability)
• Plan, construct and operate a second light-rail alignment. • Begin planning and engineering for a third light-rail extension.
Short-term Strategic Plan
In addition to the long-term plan, a three-year plan document provides the Board of Commissioners, customers, elected officials, and key stakeholders with a comprehensive summary of Metro’s plans and commitments to improve regional mobility, enhance the quality of life, improve fiscal responsibility, and stimulate economic development. It also serves as a blueprint to empower every Metro employee to work collaboratively to achieve our shared objectives. Metro’s management immediately began to implement the “Moving Transit Forward” strategic plan. A series of meetings were convened with senior management to identify the vision and mission that would drive Metro in the next decade. Core values were also identified and defined that would guide the actions of all employees going forward as they work collaboratively in support of the identified objectives and goals. These central elements of the plan come together as Metro’s Strategic Alignment. When it came to establishing the specific goals and objectives, senior management engaged every department manager in the process from the outset, helping to ensure their commitment that will be critical to achieving them. Members of the senior management team were assigned responsibility for different objectives and tasked with outlining the strategies and action steps required to meet each objective and goal in the plan. They also are empowered to ensure that individual employees are familiar with the plan and accountable for their actions. The Employee Accountability and Development System (EADS) ensures that Metro goals and objectives set by management will drive the specific objectives and values of each employee on a daily basis. Goals, objectives, and strategies identified in this document will be incorporated into individual and functional objectives in the EADS process.
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Metro’s strategic alignment to The “Moving Transit Forward” long range plan will include periodic review to determine if the strategies and action plans are achieving the desired outcomes or if adjustments are needed. Success in meeting key objectives will be factored into performance evaluations for all management and staff. Strategic Alignment Vision Statement – Metro’s vision statement defines the primary objective which drives the Agency.
To improve the region’s quality of life by providing excellent transportation and promoting economic development.
Mission Statement – Metro’s mission statement defines the fundamental purpose of Metro and informs of the desired level of performance.
Meeting the region’s transit needs by providing safe, reliable, accessible, customer focused service in a fiscally responsible manner.
Core Values – Metro’s core values impact every aspect of our organization and guide the personal work behaviors, decision making, and interpersonal interactions of all employees.
Customer Focus – We strive not only to meet but also exceed our customer’s needs and expectations. Safety & Security – The safety and security of our customers, general public, and employees is our most important priority. Character – We value and practice honesty, integrity, respect, courtesy, teamwork, trust, directness, accountability, being receptive to other viewpoints and are committed to the success of others and Metro. Ethical Practices – We adhere to our code of ethics and other Metro standards of conduct and behavior. We practice and enforce these standards throughout Metro and in all our dealings with the public. Communication – We are committed to providing clear and accurate information and to being transparent at all times. Recognition of Employee Contributions – We recognize our employees who create, innovate, consistently support the day-to-day business requirements, and contribute to the success of Metro.
To achieve the coordinated strategic plan and budgets, Metro has identified four primary, organization level goals. These goals will guide the strategic initiatives of the organization through
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FY 2012. With each new year, these goals will be evaluated for change. Each goal is broken down into key objectives that contribute to the accomplishment of the goal.
Goal Objective 1 Deliver a high quality transit experience
that is recognized by its customers, industry peers, and regional stakeholders for its excellence.
A Efficiently and effectively operate service sectors
B Improve service quality and capacity for van, bus, and rail systems
C Implement innovative technologies
D Improve transit security of van, bus, and rail systems
2 We are a publically-supported organization that is effective and efficient and that is viewed as a transparent and accountable steward of public funds.
A Establish and manage communications plan that improves public perception of Metro programs and credibility of management
B Establish a planning, policy, financial, and operational framework for developing and delivering transit service, projects, and programs over the next 10 years, and introduce potential service concepts that could be implemented over the next 10-30 years
3 We ensure cost-effective and efficient use of resources and aggressively pursue funding partnerships to supplement existing resources.
A Implement internal process improvements
B Implement cost reduction strategies
C Implement revenue enhancement strategies
D Identify and implement shared services programs with other entities where beneficial
E Deliver quality capital projects on time and within budget
4 We value all members of our staff and endeavor to help all of our employees develop to their fullest potential.
A Continue to develop a safety conscious culture throughout Metro, its customers, and business partners
B Invest in employee development
C Strengthen the labor – management working relationship
D Provide timely, honest feedback on performance through EADS program
Linking Strategic Plan to Budgets - Both the long- and short-term strategic plans are the primary drivers for annual operating and capital budgets. The annual operating and capital budgets reflect updated, short-term goals and objectives identified in the strategic plan by quantifying expected revenues and expense needed to meet the short-term goals.
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Following is each goal and objective broken down as to how each of Metro’s organizational functions proposes to achieve those goals.
Goal #1: Deliver a high quality transit experience that is recognized by its customers, industry peers, and regional stakeholders for its excellence.
Objective 1A: Efficiently and effectively operate service sectors Strategy Action Steps Performance Measurements
Division: Transit Operations Improve Rail Operation Management Information System (ROMIS) by integrating with the Supervisory Control and Data Acquisition (SCADA) system and incorporating information regarding rail system defects which are recorded elsewhere
• Perform needs assessments for performance reporting tool
• Analyze current Rail Operations Management Information System (ROMIS) Tool to determine if it meets needs
• Develop specifications for new tool or modifications to existing tool
• Develop or procure new rail operations management tool
• Implement new or modified tool to meet needs assessment
• Needs assessment completed (Jun 2011)
• Determination made if current ROMIS tool will be modified or a new tool will be developed/procured (Aug 2011)
• New specification for tool completed (Dec 2011)
• New or modified management tool complete and in use (Dec 2012)
Division: Finance (Risk Management & Safety) Continue six year trend to reduce accidents and injuries
• Design training module to address broken switches and red signal violations (i.e., human factors)
• Develop a comprehensive wellness program and corresponding training for frontline employees
• Red signal violation and broken switch training module completed
• Wellness training program in place • Healthcare representative residing
on-site • Agency accident and injury metrics
Objective 1B: Improve service quality and capacity for van, bus, and rail systems Division: Transit Operations Continue a program of enhancing bus stops in compliance with ADA standards and optimizing bus stop spacing
• Identify bus stops most in need of improvement due to ridership, location, or condition
• Actively pursue grant funding to support bus stop improvement program
• Create an amenity component of bus stop improvement program
• Optimize bus stop spacing by eliminating redundant, inaccessible bus stops
• Locate new bus stops that are accessible and proximal to ridership generators
• Encourage customers to submit requests for new bus stop locations and improvements to existing bus stops
• Completed construction of first phase New Freedom bus stops (Jun 2010)
• Completed construction of second phase New Freedom bus stops (Dec 2010)
• Update of prioritization plan for remaining inaccessible bus stops completed (Sep 2010)
• Integrate bus stop amenity improvement plan in “Moving Transit Forward” long-range plan (Sep 2011)
• Created communications plan for accessibility programs (Jun 2010) and release Communications (Sep 2011)
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Strategy Action Steps Performance Measurements
Division: Engineering & New Systems Implement the new Fare Collection System
• Continue procurement of equipment and services
• Develop and manufacture software, hardware and equipment
• Complete installation of service systems
• Develop and implement customer information program
• Perform pilot and acceptance testing
• Smart card system successfully procured (Mar 2010)
• Fareboxes procured (Sep 2011) • Infrastructure procured (Jun 2011) • Fareboxes installed (Mar 2012) • Infrastructure installed (Feb 2012) • Smart card system operational
(May 2012)
Objective 1C: Implement innovative technologies Division: Transit Operations Utilize Computer Aided Dispatch/Automated Vehicle Locator (CAD/AVL) technology to promote early identification of service issues which will allow for quicker field response to issues effecting customer service
• Re-evaluate fleet replacement schedule due to service changes and deferred fleet delivery
• Develop replacement report for current trouble log utilizing AVL technology
• Identify and develop standard operating procedures (SOP) necessary to integrate CAD/AVL information with service planning and execution
• Identify interface methodologies to support real-time customer notifications of schedule and location data from AVL
• Fleet replacement evaluation completed (Jun 2010)
• Trouble log replacement report complete (Jun 2011) with ongoing maintenance
• SOPs developed (Jun 2010) with ongoing maintenance
• Customer interface methodologies reviewed and recommendation presented to management (Jan 2012)
• Infrastructure for utilization of CAD/AVL technology in place (Dec 2012)
• Customer outreach deployed (Dec 2013)
Identify “Green” technologies that can be incorporated into Metro System Maintenance
• Provide maintenance representative to the “Green” committee
• Identify which “Green“ technologies identified by the “Green” committee can be incorporated into routine maintenance activities
• Determine which maintenance items should be replaced with “Green” technology identified by the “Green” committee as funding becomes available
• Provided maintenance representative to be included in “Green” Committee (as of Mar 2010)
• Report on ”Green” technologies incorporation into maintenance activities completed (Dec 2010)
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Strategy Action Steps Performance Measurements Division: Transit Operations Implement ArcGIS ArcServer technology for storing, creating, and serving geospatial data and maps
• Develop geo-database format for all primary datasets
• Create a framework for serving data and maps to the public using the Agency or a companion website
• Create a single Agency GIS framework including software and data that is shared and supported by all business units including Operations, Engineering, IT, and Business Enterprises
• Cross-train employees in the use of ArcServer and ancillary products
• Complete MetroLink substructures inspection database (Mar 2012)
• Create interactive system map with routes and bus stop attribute data (Jul 2012)
Objective 1D: Improve transit security of van, bus, and rail systems Division: Transit Operations Engage independent security specialist to evaluate existing combination of internal personnel, local police, and security contractors and analyze security deployment options
• Develop Scope of Work for independent contractor
• Issue RFP and contract for required services
• Present analysis and recommendations to senior management
• Requirements defined (Jun 2011) • Contractor identified and on-board
(Jul 2011) • Recommendations and analysis
presented to management (Sep 2012)
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Goal #2: We are a publically-supported organization that is effective and efficient and that is viewed as a transparent and accountable steward of public funds.
Objective 2A: Establish and manage communications plan that improves public perception of Metro programs and credibility of management
Strategy Action Steps Performance Measurements Division: Communications & Community Relations Support (or create) internal (Agency) and external (Community) events and projects with event planning and media relations support.
• Work with Agency departments to support internal events with planning, collateral material, and publicity
• Work with outside organizations on event logistics, creating/providing support materials, and/or media relations support
• Recruit, train, and schedule Metro Ambassador volunteers needed to educate customers or help with logistics at large community events
Events planned for FY 12 include: • East Riverfront Interlocking (Jul
2011) • Fair St. Louis (Jul 2011) • Eads Bridge Construction Project
(Fall 2011) • Try Transit Promotion (FY 2012) • Holiday Train (Nov-Dec 2011) • First Night Celebration (Dec 2011) • Black History Month Celebration
(Feb 2012) • Soulard Mardi Gras Service (Mar
2012) • St. Louis Earth Day (Apr 2012) • Clean Air Festival (Spring 2012) • Grand Bridge MetroBus Stops
(May 2012) • Komen Race for the Cure (Jun
2012) • Dump the Pump (Jun 2012) • Bicycle Trail Installation (FY 2012)
Events created, coordinated or supported in FY 11 include: • Fair St. Louis (Jul 2010) • Rock Road Art Installation (Jul
2010) • Lou Fest Concerts (Aug 2010) • IL Slopes ARRA Project (Oct
2010) • Donate & Ride (Nov 2010) • Developed partnership with St.
Louis Convention & Visitors Commission to design, operate and promote first ever Metro Holiday Train & partnered with KDHX radio to provide on-board entertainment.
• ARRA Project Press Conf. (Dec 2010)
• First Night Celebration (Dec 2010) • STL Downtown Airport Fire
Station Opening (Jan 2011) • MetroLink Heater Installation (Jan
2011) • MetroBus Operator Award (Feb
2011) • Black History Month Celebration
(Feb 2011) • Soulard Mardi Gras Service (Mar
2011) • Grand Bridge Demolition &
Service Modifications (Mar-Apr 2011)
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Strategy Action Steps Performance Measurements Division: Communications & Community Relations Further develop the content and reach of the Agency’s social media/digital platform.
• Research methods to better utilize Metro Memo and better integrate its use with blog and other social media
• Conduct interviews with Agency executive staff on future direction of social media/digital communications
• Review and evaluate current social media/digital information content and reach
• Create plan to market social media tools to internal and external audiences
Plan for FY 12 include: • Execute strategy to expand social
media reach and influence
• Completed Redesign of Metro Memo (Aug 2010)
• Increased Metro Memo frequency and coordinated its release with blog posts (Aug 2010)
• Produced report on current status of Social Media (Feb 2011) and conducted executive staff interviews (Apr 2011)
• Increased followers on Facebook & Twitter (FY 2011)
• Created draft of social media plan for FY 12 (Apr 2011)
Educate internal and external audiences about major Agency initiatives.
Prepare ongoing internal and external communications (print, digital, face-to-face, etc.) that inform publics about significant Agency initiatives Plans for FY 12 include: • Execute communication plans to
insure audiences receive Agency information
• Communicated launch of Phase 2 of service restoration and supported with Ambassador education events
• Communicated progress of major construction projects including Rock Road Art Installation, North Hanley Station & Parking Facility construction, Illinois Slopes Project, St. Louis Downtown Airport Fire Station and the Grand Bridge-Scott Transit Plaza construction project
• Laying groundwork for introduction of Smart Card technology
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Strategy Action Steps Performance Measurements Division: Communications & Community Relations Develop stronger internal communications
• Continue online communications with internal audience, i.e. Metro in the News, Metro Memo, Quarterly print newsletter, employee updates, etc.
• Create Advisory Committee to inform the communications process to better reach frontline employees
• Redesign Agency Intranet • Identify internal ‘hot topics’ • Establish protocols and procedures
for updating information in a timely manner
Plans for FY 12 include: Determine effectiveness of communication with employees who lack access to Agency email – calculate hits on Intranet, evaluate success of other mediums (digital display boards, etc.)
• Produce and print quarterly employee newsletter
• Convened committee to explore options for communicating more frequently with front line employees
Division: Finance Expand public outreach efforts in safety, security and emergency management
• Public service announcement through bus and LRV poster program and literature about safety, security and emergency preparedness
• Provide safety, security and emergency preparedness information for new Metro website
• Safety, Security and Emergency Preparedness posters on MetroBus and MetroLink
• MetroLink evacuation poster and brochure available
• Safety, Security and Emergency Preparedness information posted to website
Division: Marketing Redesign Metro’s website to improve communications with stakeholders and customers
• Design new site • Develop project plan • Execute project plan
• Completed website Phase II (Dec 2010)
Division: Procurement, Inventory Management & Supplier Diversity Improve transparency of Metro DBE contracting and expenditures
• Determine data to be displayed on the Metro website
• Redesign Metro DBE website to better communicate program goals, process, accomplishments, and data
• Develop a training program to help contractors understand “DBE” requirements
• Completed and implemented redesign of website with DBE performance information
• Developed online DBE training and certification assistance
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Objective 2B: Establish a planning, policy, financial, and operational framework for developing and delivering transit service, projects, and programs over the next 10 years, and introduce potential service concepts that could be implemented over the next 10-30 years
Strategy Action Steps Performance Measurements Division: Transit Operations Develop expanded, modern communications mechanism to engage employees and customers in conversations about services, needs, wants, etc.
• Establish e-mail and cell phone outreach programs for customers and employees
• Expand the use of live chat media opportunities
• Created customer and employee contact database (Mar 2010)
• Developed communication mechanism for Metro customers including service updates (Sep 2010)
• Started customer contacts (Sep 2010)
Goal #3: We ensure cost-effective and efficient use of resources and aggressively
pursue funding partnerships to supplement existing resources.
Objective 3A: Implement internal process improvements Strategy Action Steps Performance Measurements
Division: Transit Operations Conduct a comprehensive review of the Agency’s Customer Service Program, including Customer Service department and related customer service functions
• Conduct an assessment of all existing Customer Service functions and practices
• Pursue opportunities for direct interaction between Metro Customer Service and the public outside of the call center environment
• Examine customer service contact processes within Operations including MetroBus, MetroLink, Metro Call-A-Ride, Security, and ADA Services
• Identify opportunities for improved customer service training for front-line Operations staff and management
• Explore alternative customer service models
• Recommended improvements to departmental processes (Mar 2010)
• Started customer service field experiences (Jun 2010)
• Presented customer service alternatives analysis to management (Sep 2010)
• Revise Customer Service training processes for all front-line staff (Dec 2011)
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Strategy Action Steps Performance Measurements Division: Finance Increase income from investments • Circulate Metro’s internal
investment policies to our banks and peers for review
• Review investment policy to determine if authorized investment categories are overly restrictive
• Develop more sophisticated cash flow analysis to enable funds to be invested longer term
• Compile a list of bank and peer recommendations and revise investment policy containing implementable plan of action (Completed Fall 2010)
• Recommend investment category changes to Board, if changes are deemed prudent, and increase investment income
• Develop various cash flow scenarios\models. Develop a “worst case” scenario wherein Metro would still have some reserves that could be invested long term
Conduct the first of a series of management and operations audits pursuant to the trustee agreement of the Cross County MetroLink project, and the St. Louis County Proposition A sales tax ordinance
• Engage consultants • Review management and operating
policies • Develop report of audit findings
• Present audit report to Board of Commissioners and Legal Counsel before June 30, 2012
• Implement audit recommendations in FY 2013
Identify opportunities to reimburse cost of staff training and administrative time through grant resources
• Identify grant funds to support front-line employee training for emergency preparedness and security awareness - e.g., Homeland Security, FTA, Public Education and Enforcement Research Study
• Identify grant funds to support administrative effort to procure and manage grant funded projects
• Identify sources of revenue to support agency’s capital and eligible operating needs
• Maintain line of communication with funding sources to identify agency needs and identify available resources to support capital needs
• Receive funding authorizations prior to start of Fiscal Year 2012
Provide project management and coordination for the FTA funded state of good repair transit asset management (TAM) research project
• In conjunction with TAM consultant, develop hierarchical structure of Metro’s assets including facilities, rolling stock, right-of-way, and other infrastructure
• Identify useful life, life cycle costs • Document process to facilitate use
at other transit agencies
• Provide research documentation and recommendations to FTA in support of its “state of good repair” goals and objectives for transit properties nationwide by May 2013
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Strategy Action Steps Performance Measurements Division: Finance Develop and implement a comprehensive Business Continuity Plan to supplement the IT Disaster Recovery Plan and Metro’s Emergency Preparedness Program Plan
• Establish a working group to include Operations, Maintenance, ENSD, Communications and others to establish conceptual design
• Prepare department by department drafts
• Coordinate plans
• First draft of plan by Dec 2011 • Implementation and testing in fiscal
year 2012
Division: Procurement, Inventory Management & Supplier Diversity Identify and implement improvements to the Procure-to-Pay process
• Expand Evaluated Receipt Settlement (ERS) process to include parts and/or service contracts where appropriate
• Investigate alternative invoice payment processes such as ProCard or credit card
• Investigate alternatives available to automate or otherwise improve processing of manual check requests
• ERS implemented for at least two parts contacts (Jul 2010)
• Prepare analysis of process changes required to implement ERS for service contracts and present for management review
• Prepare analysis of alternative invoice processing options for management review
Develop standards and system to accommodate electronic storage and archiving of procurement contract files
• Evaluate current file management practices and establish format for electronic archival
• Transition new contracts and solicitations to new standards
• Review of requirements completed and management recommendation submitted for approval (Mar 2010)
• Process in place and in use for new solicitations and contracts
Division: Procurement, Inventory Management & Supplier Diversity Implement planned maintenance process in partnership with maintenance for all Metro divisions as mirrored with bus maintenance
• Establish project teams • Evaluate current maintenance and
material requirement plans • Develop process improvement
recommendations • Implement recommendations
• Project teams established and operating (Jan 2010)
• Process improvement recommendations and implementation schedule for ML rail operations completed (Apr 2010)
• Process improvement recommendations and implementation schedule for MOW completed (Jul 2010)
Objective 3B: Implement cost reduction strategies Division: Finance Refund\remarket the $150 million Series 2005 Bonds in the most cost effective manner possible. (Direct pay Letter of Credit on the bonds with Chase expires in November 2010, requiring action on Metro’s part to ensure the bonds are marketable)
• Research and analyze various options with regards to replacing the LOC or refunding or remarketing all or part of the bonds. Analysis should consider credit markets, municipal market, overall Metro debt structure, etc. (To a large extent, analysis will be dependent on result of 2010 sales tax referendum in St. Louis County)
• Transaction completed in Oct 2010 as $75 million in fixed debt and $75 million in variable debt
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Strategy Action Steps Performance Measurements Division: Finance Extend Metro’s bonding authority to allow 40-year retirement window
• Prepare legislation • Develop speaking points • Identify sponsors • Advance through state and federal
legislatures
• Legislative approval from both Illinois and Missouri achieved
• Seek Congressional approval (Jul 2011)
Evaluate alternatives and cost containment measures for Other Post Employment Benefits (OPEB) in order to utilize for collective bargaining activities
• Engage financial consultant to provide guidance on how to reduce the unfunded liabilities
• Establish a baseline cost and examine the true cost of retiree health care benefits
• Survey current market strategies • Evaluate each strategy’s cost
implications • Determine appropriate
implementation strategy, collective bargaining and other elements of post employment benefits
• Identification and analysis of alternative cost containment strategies completed (Fall 2010)
• Proposed cost containment strategies to be negotiated with collective bargaining units (Fall 2011)
Division: Human Resources Improve the no-fault attendance program to reduce absenteeism
• Evaluate all aspects of the program to determine where improvements can be made to reduce absenteeism and abuse
• Implement improvements to attendance program to achieve improved attendance
• Establish attendance program review committee including Labor Relations and facilities management for bus, rail and van (October, 2011)
• Hold bi-weekly meetings to discuss and review suggestions, alterations, and expected results
• Present program improvements in monthly management/union meeting
• Implement improved attendance reporting program (In progress)
Division: Information Technology Implement the new Human Capital Management System.
• Move system into production environment
• Complete consultant support of development activities
• Report progress on benefits of system as compared to plan
• Production Go Live completed on schedule and within budget
• End of outside support completed on schedule
• Progress report completed (Dec 2011)
Reduce personnel related expenses and improve management information used for decision making
• Evaluate business intelligence systems and present improvement recommendations to management for funding approval
• Evaluate systems and recommend approach (Dec 2012)
Note: Completion of this strategy dependent upon timing of completion of AVL infrastructure
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Strategy Action Steps Performance Measurements Division: Information Technology Convert paper forms to electronic to reduce costs in paper and processing
• Inventory and analyze paper forms • Prioritize and select candidates for
conversion • Prepare schedule to covert selected
forms • Convert paper forms to electronic
data capture and reporting
• Forms inventory completed as scheduled
• Prioritization completed as scheduled
• Conversion schedule completed as scheduled (four forms were identified and converted from paper to online.
Division: Marketing Develop cooperative marketing partnerships to extend marketing budget
• Identify target partners • Develop programs • Execute programs
• Completed $250K in-kind placements (Jun 2010)
• Additional $500K in-kind placements (Dec 2011)
Division: Procurement, Inventory Management & Supplier Diversity Improve MetroLink warehouse and materials management processes
• Identify and categorize parts and supplies
• Identify ML critical spares • Evaluate inventory item attributes • Implement recommendations
• Parts identification completed for all operating systems (Mar 2011)
• Process recommendations and implementation schedule completed (Jun 2011)
Objective 3C: Implement revenue enhancement strategies Division: Marketing Develop new sources of revenue through marketing
• Develop plan to address bus shelter advertising and maintenance to replace expiring Wall USA contract
• Evaluate and execute approved new opportunities for marketing and/or advertising revenue
• Evaluate and execute marketing opportunities related to implementation of Smart Card program
• Bus Shelter advertising program in place (Dec 2012)
• Develop one additional product that generates $100k in new revenue (Dec 2011)
• Opportunities related to Smart Cards to be implemented in conjunction with card program (Dec 2011,dependent upon timing of program implementation)
Objective 3D: Identify and implement shared services programs with other entities where beneficial
Division: Transit Operations Manage the preventative, and break down repair activities for the City of St. Louis Fire Department in order to maximize our building and system resources while developing a positive relationship with the City of St. Louis and their Fire Department
• Review all current procedures and training necessary for the successful repair and maintenance of fire trucks and ancillary equipment or systems
• Prepare work areas, recruit and train mechanic and supervisory personnel, prepare inventory and set up procurement and accounting systems in order to maintain auditable systems.
• Schedule and complete inspection, grief and breakdown repair of fire trucks and systems
• All fire trucks 90-day PM inspection completed on time during FY 2011
• Program to end by Dec 2011
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Objective 3E: Deliver quality capital projects on time and within budget Strategy Action Steps Performance Measurements
Division: Engineering & New Systems Development Construct Scott Avenue Plaza
• Perform design activities • Procure construction services • Award construction contract
• Design completed (Apr 2010) • Award construction contract (Jun
2011) • Complete project construction
(Aug 2012) Complete American Recovery and Reinvestment Act (ARRA) Public Art projects
• Identify constituent communities for each project
• Form artist selection panels • Select artists • Develop Artwork Designs • Fabricate and install Artwork
• Stakeholder groups established (Mar 2010)
• Completed advertising for artists for interest in being considered for commissions (Jan 2010)
• Artist selected (Dec 2010) • Artwork is commissioned (Jun
2011) • Complete artwork (Jul 2012)
Completion of the East Riverfront Interlocking on time and within budget
• Procurement of long lead items • Timely responses to the designer
and open sharing of information • Create work around plans as
needed
• Design completed (Mar 2010) • Award construction contract
(Feb 2011) • Complete construction (Nov
2011) Division: Engineering & New Systems Development Completion of the Eads Bridge Rehabilitation Project
• Identify concurrent activities that can occur during completion of the East Riverfront Interlocking
• Completion of a Design that incorporates all possible rehabilitation and repair elements
• Abide by the requirements and restrictions of the ARRA Program
• Complete design and advertise for construction services (Jul 2011)
• Award construction contract (Sep 2011)
• Achieve 50% completion of the project (Sep 2013)
• Complete construction (Nov 2014)
Design and Construct New UMSL S. Interlocking
• Perform Design of UMSL S. Interlocking
• Perform Construction of UMSL S. Interlocking
• Complete Final Design (Mar 2011)
• Complete Construction (Aug 2012)
Division: Engineering & New Systems Development Enhance safety measures at MetroLink Track Crossings
• Perform in-house design for standard pedestrian barriers and fence at UMSL N., Civic Center, and Richmond Hts. Stations
• Perform construction
• Awarded Construction Services Contract (Apr 2010)
• Substantially complete construction (Feb 2012)
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Goal #4: We value all members of our staff and endeavor to help all of our employees develop to their fullest potential.
Objective 4A: Continue to develop a safety conscious culture throughout Metro, its customers, and business partners
Strategy Action Steps Performance Measurements Division: Transit Operations Implement Trip Error Reduction effort for Reservations
• Develop Crystal Reports to identify Reservation errors
• Develop proofing report for staff to use to review and correct work
• Hold weekly review sessions with staff exhibiting difficulty performing error-free work
• Report development completed and in use with staff (Jul 2010)
Division: Finance Enhance system safety training for employees and contractors
• Complete development of on-line, computer based testing (CBT) version of Tier 1 system Safety Training program
• Computer based testing program is complete awaiting IT implementation
Improve employee health while maintaining or reducing medical plan costs
• Develop and implement an incentive based, wellness oriented medical plan to complement the health & wellness initiative
• Develop and implement plan (calendar year 2012)
Objective 4B: Invest in employee development Division: Finance Improve agency-wide understanding of transit and transit financial management techniques by utilizing Transit Finance Learning Exchange (TFLEX) TRANSIT 101 as a way to educate staff who are new to the transit industry about primary industry issues and requirements
• Identify list of recent Metro new hires and promotions to supervisor and above
• Circulate communications on the program and access protocols
• TFLEX training program initiated in summer 2010
• Ongoing TFLEX training opportunities announced via e-mail notification
Division: Human Resources Improve employee competency by management and leadership training agency-wide
• Conduct biennial management training for supervisors and management level staff
• Establish a leadership development program for high potential employees
• Conduct mandatory management training for newly minted supervisors
• Conduct annual skills training for bus/van/train operators
• Management training for supervisors and managers program first session completed (Sep 2011)
• Leadership development program developed and in place (Sep 2011)
• New manager training program to be developed by (Dec 2011)
• Annual operator skills training program in place (Implemented October 2010)
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Objective 4C: Strengthen the labor – management working relationship Strategy Action Steps Performance Measurements
Division: Human Resources Maintain a positive working relationship with union management to ensure an open communication process for resolving work related issues.
• Continue to hold monthly meetings between union and management.
• Labor/management informational meeting in place (Implemented December 2010)
• Labor/management communication plan implemented (Implemented September 2010)
Objective 4D: Provide timely, honest feedback on performance through EADS program Division: Human Resources Evaluate current Metro employee measurement and feedback systems and develop approach to improve performance management
• Solicit feedback from management and staff concerning current performance management systems
• Develop recommendations for enhancement and/or replacement of current processes and systems
• Implement updated performance management system
• Report on current systems submitted to management for review and discussion (Completed March, 2010)
• Recommendation for enhanced or new system to management (Completed, March 2010)
• Revised performance measurement system in use (January, 2012)
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Transit Key Performance Metrics Our success in meeting our strategic goals and objectives will be measured by key performance metrics. Some of these metrics are used to compare Metro to peer transit agencies while others are used to evaluate progress towards strategic goals and objectives. The first three graphs show certain performance metrics of Metro compared to peer transit agencies in the United States for FY 2005 through FY 2009. The source of this data is the Federal Transit Administration National Transit Database.
$1
$2
$3
$4
$5
$6
$7
FY 05 FY 06 FY 07 FY 08 FY 09
Subsidy per Boarding
St. Louis Baltimore Cleveland DallasDenver Pittsburgh San Diego
The first graph “Subsidy per Boarding” shows the Metro (St. Louis) subsidy per boarding is rising more quickly than most peer transit agencies, but still compares favorably to most peer transit agencies in subsidy per boarding rates.
The “Annual Boardings per Capita” graph shows St. Louis has had a steady increase resulting in nearly 31% improvement from FY05 to FY09. This percentage increase has exceeded all other peer cities. Although data for peer transit agencies is not yet available for FY10, it is expected the trend for St. Louis will shift downward due to service cuts in FY10.
Metro’s farebox recovery has remained in the average range compared to peer transit agencies over the past five years.
5%
25%
35%
45%
FY 05 FY 06 FY 07 FY 08 FY 09
Farebox Recovery
15%
St. Louis Baltimore Cleveland DallasDenver Pittsburgh San Diego
25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0
FY 05 FY 06 FY 07 FY 08
Annual Boardings per Capita
FY 09St. Louis Baltimore Cleveland DallasDenver Pittsburgh San Diego
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In FY 2012, Metro will utilize the following performance metrics to monitor Transit operations:
$0
$5
$10
$15
$20
$25
FY10 Actual FY11 Bgt FY11 Proj FY12 Bgt
Expense per Revenue Mile
MetroLink MetroBus Call-A-Ride
$0$5
$10$15$20$25$30$35$40$45
FY10 Actual FY11 Bgt FY11 Proj FY12 Bgt
Expense per Passenger Boarding
MetroLink MetroBus Call-A-Ride
$0
$100
$200
$300
$400
$500
$600
FY10 Actual FY11 Bgt FY11 Proj FY12 Bgt
Expense per Revenue Hour
MetroLink MetroBus Call-A-Ride
0.01.02.03.04.05.06.07.0
FY10 Actual FY11 Bgt FY11 Proj FY12 Bgt
Passengers per Revenue Mile
MetroLink MetroBus Call-A-Ride
0%
5%
10%
15%
20%
25%
30%
35%
FY10 Actual FY11 Bgt FY11 Proj FY12 Bgt
Farebox Recovery
MetroLink MetroBus Call-A-Ride
$0
$5
$10
$15
$20
$25
$30
FY10 Actual FY11 Bgt FY11 Proj FY12 Bgt
Subsidy per Passenger Boarding
MetroLink MetroBus Call-A-Ride
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Performance Indicators: Metro Transit System FY 2012 Budget Projection Budget
FY 2011 FY 2010 Actual
* Passenger boardings: System 44,267,424 42,569,255 42,770,917 MetroBus 27,334,431 26,269,023 26,023,861 MetroLink 16,356,616 15,741,432 16,178,391 Call-A-Ride 576,377 558,800 568,665
40,629,717 24,255,130 15,828,981
545,606 Revenue miles: System 27,145,673 25,650,403 25,599,582
MetroBus 19,235,017 17,853,659 17,770,936 MetroLink 3,251,749 3,137,838 3,233,291 Call-A-Ride 4,658,907 4,658,906 4,595,355
23,612,378 16,082,276
2,913,199 4,616,903
Revenue hours: System 1,831,415 1,712,716 1,687,925 MetroBus 1,399,050 1,284,852 1,260,843 MetroLink 135,174 130,673 135,219 Call-A-Ride 297,191 297,191 291,863
1,576,280 1,168,685
116,975 290,620
Passenger revenue System 48,522,966$ 46,071,275$ 46,592,433$ (excluding TMA and MetroBus 29,794,530 28,262,831 27,857,467 contractual) MetroLink 17,828,712 16,936,200 17,882,831
Call-A-Ride 899,724 872,244 852,135
44,631,129$ 26,509,803 17,300,389
820,937 TMA (regional van services) & contractual Medicaid services 5,531,000$ 5,098,283$ 5,250,000$ 5,363,446$ Operating expense by mode: System $ 243,117,784 $ 226,794,536 231,322,578$
MetroBus 156,521,080 146,012,048 146,282,967 MetroLink 64,495,924 60,165,582 63,740,890 Call-A-Ride 22,100,781 20,616,905 21,298,721
$ 204,859,954 128,756,345
56,645,493 19,458,115
Passenger boardings per System 1.6 1.7 1.7 revenue mile: MetroBus 1.4 1.5 1.5
MetroLink 5.0 5.0 5.0 Call-A-Ride 0.1 0.1 0.1
1.7 1.5 5.4 0.1
Operating expense: Per revenue mile: System 8.96$ 8.84$ 9.04$
MetroBus 8.14 8.18 8.23 MetroLink 19.83 19.17 19.71 Call-A-Ride 4.74 4.43 4.63
Per revenue hour: System 132.75$ 132.42$ 137.05$ MetroBus 111.88 113.64 116.02 MetroLink 477.13 460.43 471.39 Call-A-Ride 74.37 69.37 72.98
Per passenger boarding System 5.49$ 5.33$ 5.41$ MetroBus 5.73 5.56 5.62 MetroLink 3.94 3.82 3.94 Call-A-Ride 38.34 36.89 37.45
8.68$ 8.01
19.44 4.21
129.96$ 110.17 484.25
66.95 5.04$ 5.31 3.58
35.66 Farebox recovery: System 20.0% 20.3% 20.1%
MetroBus 19.0% 19.4% 19.0% MetroLink 27.6% 28.1% 28.1% Call-A-Ride 4.1% 4.2% 4.0%
21.8% 20.6% 30.5%
4.2% Subsidy per passenger boarding: System 4.16$ 4.00$ 4.09$
MetroBus 4.52 4.36 4.44 MetroLink 2.74 2.62 2.73 Call-A-Ride 27.42 26.09 26.61
3.70$ 4.11 2.38
24.22 * The FY 2011 budget for passenger boardings has been changed to reflect more accurate reporting.
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Financial Policies, Fund Balances, Debt Obligations
All fiscal policies apply to the Transit System and Business Enterprises.
Planning and Budgeting Policies
Budget Policies
Annual Budget (Policy 30.030)
Each year the President & CEO shall prepare an annual budget for the forthcoming fiscal year that will be presented to the Board of Commissioners. The President & CEO will work with the Board in setting strategic objectives, update the Agency’s long range planning document, and prepare both operating and capital budgets. The operating budget shall include proposed expenditures for current operations during the ensuing fiscal year and the method of financing such expenditures. The transit system shall present a balanced budget whereas revenues equal expenditures. The capital budget shall include capital expenditures during the ensuing fiscal year and the proposed method of financing such expenditures.
Basis of Budgeting
Metro budgets expenses on the accrual basis of accounting that is consistent with accounting policy whereby revenues are recognized when earned and expenses are recognized at the time the liability is incurred.
Balanced Budget Guideline
For purposes of the Transit operating budget, a balanced budget shall be where revenues equal expenditures except for depreciation and unfunded OPEB expenses.
Audit Policies
Internal Audit (Policy 30.020)
It is the policy of the Agency to employ an Internal Auditor who shall report directly to the Board of Commissioners. The Internal Auditor shall supervise and direct the staff of the Internal Audit Department. The Internal Audit Department shall provide independent, objective analysis and recommendations to assist the President & CEO and management in effectively discharging their administrative responsibilities. The Internal Audit Department shall perform routine audits of compliance of Agency divisions with internal Agency rules and regulations. The Internal Audit Department shall at all reasonable times have access to the accounts, books, and records of the Agency, and the Department may interview the President & CEO and other employees of the Agency as necessary.
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External Audit (30.010)
It is the policy of the Agency to submit its books and records to annual audit by a nationally recognized CPA firm. The firm shall have broad experience in auditing large local government and/or agencies in compliance with relevant federal rules and regulations such as the Single Audit Act.
Accounting Policies
Financial Reporting Entity
The basic financial statements encompass all proprietary functions for which Metro is responsible. These functions include: General Agency, Gateway Arch Tram System, Gateway Arch Parking Facility, Gateway Arch Riverboats, St. Louis Downtown Airport, and the Transit System.
Additionally, Metro evaluated whether there were any potential component units which should be included in these financial statements based on the following criteria: financial accountability, access to resources, responsibility for debts and deficits, and fiscal independence. Metro has a retiree medical trust which is a component unit; however, Metro is not a component unit of any other entity or government. The City of St. Louis, Missouri, the Missouri counties of St. Louis, St. Charles and Jefferson, the Illinois counties of Madison, St. Clair, and Monroe and the States of Illinois and Missouri have limited decision-making authority over Metro and have limited responsibility for Metro's debts or deficits except as provided in the Memorandum of Agreement.
Basis of Accounting
Metro follows the accrual basis of accounting and uses the economic resources measurement focus for all of its enterprise funds and fiduciary funds. Revenues are recognized when earned and expenses are recognized at the time liabilities are incurred regardless of the timing of related cash flows. Under GASB Statement No. 20, “Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting,” Metro applies all applicable GASB pronouncements and Financial Accounting Standards Board (“FASB”) Statements and interpretations issued on or before November 30, 1989, unless these pronouncements conflict with or contradict GASB pronouncements. Metro has also elected to apply all FASB statements and interpretations issued after November 30, 1989 except for those that conflict with or contradict GASB pronouncements.
Interim Reporting
Monthly and year to date financial reports are prepared for Metro managers to compare actual financial results to the budget. Monthly operating performance indicator reports are prepared for St. Clair County, and quarterly operating performance indicator reports are prepared for the Board of Commissioners, East West Gateway Counsel of Governments, the City of St. Louis and St. Louis County, the Missouri Department of Transportation and the Illinois
43
Department of Transportation. All interim budget and performance indicator reports are also published on the Metro website.
Fund Accounting
Metro maintains its accounting records on the basis of funds. A fund is a fiscal and accounting entity with a self-balancing set of accounts. Cash and other financial resources, together with all related liabilities and residual equities balances and changes therein are segregated for the purpose of carrying on the specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.
The fund financial statements provide information about Metro’s funds, including fiduciary funds. Separate statements for each fund category – proprietary and fiduciary – are presented. The emphasis of fund financial statements is on the enterprise funds.
All funds used in accounting for the financial operations of Metro are enterprise funds or fiduciary funds. For financial reporting purposes, Metro is considered a single enterprise fund in which all subsidiary enterprise funds are combined and interfund transactions are eliminated. Metro is required to adopt a balanced budget; however, it is not required to adopt legally enforceable budgets and does not adopt such budgets.
Fund Equity
Fund equity is calculated by deducting the liabilities from the assets. In its simplest terms, it is what would be left over if all liabilities were paid at fiscal year-end. Fund equity is one indicator of financial health.
Enterprise Funds
Metro’s enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises.
The business purposes of the various enterprise funds of Metro are as follows:
• General Agency Fund - performs certain developmental activities and acts as the administrative head of Metro;
• Gateway Arch Tram System Fund - operates and maintains the transportation system within the Gateway Arch in accordance with a cooperative agreement with the United States Government;
• Gateway Arch Parking Facility Fund - operates and maintains the parking garage at the Jefferson National Expansion Memorial Park in accordance with a cooperative agreement with the United States Government;
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• Gateway Arch Riverboat Fund – owns, operates and maintains both the Tom Sawyer and Becky Thatcher Riverboats docked along the Mississippi River just below the Gateway Arch;
• St. Louis Downtown Airport Fund – owns, operates and maintains the St. Louis Downtown Airport and an adjacent business park located in Cahokia, Illinois;
• Transit System Fund – owns, operates and maintains the St. Louis metropolitan area mass transportation system which includes MetroBus, MetroLink and Metro Call-A-Ride services.
The following chart shows the FY 2012 budget for all Metro’s sources and uses of funds.
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Metro
Operating and Capital Budget
Projected Sources and Uses of Funds
Fiscal Year 2012
(in thousands)
Beginning available funds
en General Ag cy
Operating Capital$800 $0
tGa eway Arch Tram
Operating Capital $6,800 $5,500
Arch Parking Facility
Operating Capital $1,400 $1,100
s tRiverfron
Attraction Operating Capital
$100 $0
rp St. Louis
Downtown Ai ort Operating Capital
$500 $0
ystem Metro
Transit S Operating Capital
$20,500 $87,500
Totals Operating Capital
$30,100 $94,100
Intercompany transfers - - - - - - - - - - - - - -
Sources of funds: State and local assistance Passenger and service fees Federal assistance Other (adm. fees, interest & misc.)
Total Sources
-2,998
-
3 3,000
---
--
-5,462
-
23 5,485
956 --
-956
-1,821
-
5 1,826
31 --
-31
-2,768
-
-2,768
15 --
-15
-1,442
-
-1,442
160 -
2,375
-2,535
181,687 53,564 21,577
406 257,234
79,753 -
276,325
-356,078
181,687 68,054 21,577
437 271,755
80,915 -
278,700
-359,615
Uses of funds: Wages and benefits Services Materials and supplies Utilities and fuel Casualty and liability costs Other Capital Projects - Metrolink New revenue vehicles Capital projects, equipment, and other capital Debt service
Total Uses
1,754 694
29 8 -
260 --
--
2,745
--------
---
1,602 866 236
92 40
1,170 --
--
4,006
--------
956 -
956
452 460
23 76 27
148 --
-84
1,270
--------
31 -
31
1,261 321 592 194 160 159
--
--
2,687
--------
15 -
15
753 44
103 179
59 122
--
--
1,260
--------
2,535 -
2,535
151,080 24,794 18,410 27,449
4,799 5,385
--
-22,570
254,487
------
121,441 69,049
165,589 -
356,078
156,902 27,179 19,393 27,998
5,085 7,244
----
22,654 266,455
------
121,44169,049
-169,126
-359,615
Ending available funds $1,055 $0 $8,279 $5,500 $1,956 $1,100 $181 $0 $682 $0 $23,246 $87,500 $35,400 $94,100
(Totals may not sum due to rounding.)
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Estimates and Assumptions
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Metro Operating Revenues and Expenses
Operating revenues and expenses generally result from providing services in connection with Metro’s ongoing operations. Revenues are recorded as income in a manner consistent with the timing of the provided service. The principal operating revenues of the various funds of Metro are as follows:
• General Agency Fund – interfund charges for management services;
• Gateway Arch Tram System Fund – charges to tourists for admissions to attractions at the Jefferson National Expansion Memorial and rentals;
• Gateway Arch Parking Facility Fund – charges to customers for parking fees;
• Gateway Arch Riverboat Fund – charges to tourists for riverboat excursions along the Mississippi and memorabilia sales;
• St. Louis Downtown Airport Fund – charges to customers for aviation and runway services provided, including hangar rentals and fuel;
• Transit System Fund – fares charged to passengers for public transportation, advertising, and rentals.
Operating expenses include the cost of services, administrative expenses and depreciation expenses on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Expenditure Controls
Metro utilizes several different methods for controlling expenditures. A tiered approval system is utilized to secure management approval on various levels of expenditures. The approval tiers are as follows:
Supervisors $5,000 and under Managers $10,000 and under Directors $25,000 and under Vice Presidents $100,000 and under Chief Executive Officer Unlimited
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Additional expenditure control tools utilized include purchase orders, procurement cards, and work orders for project related expenditures, service contracts and labor contracts. Monitoring tools utilized include budget reports by cost center, and quarterly performance indicator reports.
Cash and Cash Equivalents
Metro pools all cash for investment purposes when most beneficial. Each fund has equity in the pooled amount. Investment earnings are allocated to each individual fund on the basis of their investment or equity in the pooled amount. Metro considers all highly liquid investments readily convertible into cash with original maturities of three months or less to be cash equivalents. Metro carries all cash equivalents at cost, which approximates fair value.
Investments Policies (Policy 30.040)
Funds of Metro shall be invested pursuant to the Board approved Investment Policy and Investment Procedures and Trust Indentures.
Investments consist of U.S. Treasury and Agency securities, bankers' acceptances, commercial paper, money market funds, repurchase agreements and certificates of deposits with original maturities greater than three months. These investments are carried at fair value unless their remaining maturity at the time of purchase is one year or less, in which case they are carried at amortized cost. Metro determines fair value to be the amount at which financial instruments could be exchanged in a current transaction between willing parties, at quoted market prices. Also, certain money market investments having a remaining maturity of one year or less at the time of purchase and non-negotiable certificates of deposit with redemption terms that do not consider market rates are carried at amortized cost.
• Interest rate risk -- Interest rate risk is the risk that the fair value of an investment will decline as interest rates increase, and if it is sold before its maturity a loss will result. Metro’s investment policy specifies that all funds may be invested in maturities that match anticipated obligations to a maximum of five years. The policy is not applicable to restricted investments or collateral securities related to lease finance obligations or bond indentures, for which investment maturities are generally matched to specific debt amortization requirements. Due to the short duration of the majority of Metro’s non-lease or bond related investments at June 30, 2010, interest rate risk is not significant to Metro.
• Credit risk -- Credit risk is the risk that the financial counterparty will fail to meet its defined obligations. Metro’s investment policy authorizes the unlimited purchase of direct obligations of the U.S. Government or its agencies, obligations of the states of Missouri or Illinois which carry the highest rating issued by a nationally recognized credit rating organization, repurchase and reverse repurchase agreements, commercial paper, banker’s acceptances, and money market funds. Repurchase and reverse repurchase agreements are entered into only with pre-approved credit-worthy banks or dealers, and a written repurchase agreement is completed for each bank or dealer.
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Metro’s investment policy limits investments in commercial paper, negotiable (uncollateralized) certificates of deposit, and banker’s acceptances to the top two ratings issued by nationally recognized credit rating organizations, and further limits these instruments to five million per issuer. The policy also stipulates that money market funds used have over $500 million in assets and carry the highest rating issued by a nationally recognized credit rating organization. The policy is not applicable to restricted investments, or collateral securities related to lease finance obligations or bond indentures. Provisions of the lease agreements or bond indentures stipulate that financial counterparties have and maintain the highest rating issued by a nationally recognized credit rating organization. If the counterparty does not maintain the required rating it is required to collateralize the investment with securities which carry the highest rating issued by a nationally recognized credit rating organization. (In the case of the investment contracts listed above, the rating requirement is applicable to the senior debt rating of the issuer of the contract; the contracts themselves are not rated separately.)
As of June 30, 2010, Metro’s non-fiduciary, non-lease related money market funds and other broker accounts were in the amount of $66,813,082. Of this amount, $65,766,011 was deposited in eleven different institutional money market funds, $645,404 was deposited in a trading account with Metro’s energy commodities broker, and $401,667 was deposited in the Illinois Funds, a state run money market investment pool. Of the money market fund balance, $50,464,603 was deposited in six different money market funds managed by Columbia Funds, Merrill Lynch, or Black Rock, all owned by Bank of America-Merrill Lynch; $9,086,607 was deposited in a money market fund managed by UBS Financial; and $4,132,660 was deposited in two different money market funds managed by Federated Investors. All institutional money market funds and investment pools used had the highest rating of Standard and Poor’s, Moody’s, or Fitch Rating Services. For all money market funds and investment pools, net asset value equals reported fair value. The Illinois Funds are managed by the State Treasurer of Illinois, per provisions of state statute.
• Custodial Credit Risk -- Custodial credit risk is the risk that, in the event of the failure of the counter-party, Metro will not be able to recover its investments or collateral securities that are in possession of an outside party. Metro’s investment policy specifies that all investments be delivered to Metro’s securities safekeeping agent and held in the name of Metro. The policy is not applicable to restricted investments or collateral securities related to lease finance obligations or bond indentures, which generally are held in trust according to specific provisions of the lease agreement or bond indenture. As of June 30, 2010, Metro’s investment safekeeping agent held all of Metro’s non-lease or bond related investments in treasury securities or government agency securities in Metro’s name. As of June 30, 2010, collateral for repurchase agreements was either being held by Metro’s agent or by the financial counterparty in a segregated customer account in the name of Metro. Metro’s investment policy specifies that collateral for repurchase agreements with a term of longer than 14 days be placed in joint custody with Metro at the Federal Reserve Bank or other third party custodian. No repurchase agreements in effect at June 30, 2010 had a term of longer than 14 days.
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Fair Value of Financial Instruments
The following table presents the carrying amounts and estimated fair values of Metro's financial instruments at June 30, 2010. The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged between willing parties in a current open market transaction.
Financial Liabilities 2010 (in millions) Carrying Value Fair Value Total long-term debt 583.7 586.9
The fair value of Metro's total debt is estimated based on the quoted market prices for similar issues or by discounting expected cash flows at the rates currently offered to Metro for debt of the same remaining maturities, as advised by Metro's bankers.
Materials and Supplies
Metro transit inventories of materials and supplies are recorded at cost, using the moving weighted average method and are expensed when inventories are consumed in operations. Business Enterprise inventories are also recorded at cost.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are recorded at cost, when acquired or constructed. Capital assets are defined by Metro as assets with an initial, individual cost of more than $5,000 and an estimated useful life of 1 year or more. Improvements to existing plant and equipment, which extend the useful lives of the related assets, are capitalized. Donated capital assets are recorded at their fair value at the time of donation. Expenditures for maintenance and repairs are charged to expense as incurred. When capital assets are retired or otherwise disposed of, the cost of the assets and the related accumulated depreciation are removed from the accounts and gains and losses on disposals are recorded. Prorated shares of the proceeds from the sale of property and equipment, which were acquired with federal or state funds, are returned to the United States Department of Transportation – Federal Transit Administration or the related state Department of Transportation, respectively.
Depreciation and Amortization
Depreciation of capital assets is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
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Years Airport runways and related facilities 15-25 Buildings and improvements 15-25 Gateway Arch tram facilities 15-25 Riverboats and barges 15-20 Light rail structures and improvements 12-30 Autos and trucks 5-10 Buses, vans, light rail and other revenue vehicles 3-25 Furniture, fixtures, computers and other equipment 3-10
Self-insurance Liability
Liabilities for workers' compensation, employee medical and dental insurance claims, and public liability and property damage claims are recognized as incurred on the basis of the estimated cost to Metro upon resolution.
Workers’ compensation benefits are awarded on the basis appropriate for the governmental authority in each state in which Metro operates. Estimated liabilities for injury and damage claims and medical and dental insurance claims are charged to operations in the year the claim events occur; estimated liabilities for outstanding claims are made by management.
Self-insured liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported.
Since self insured claims depend on such complex factors as inflation, changes in legal doctrines, and damage awards, the process used in computing claims liability does not necessarily result in an exact amount. Claims liabilities are evaluated on a case-by-case basis and are re-evaluated periodically to take into consideration historical experience of recently settled claims, the frequency of claims, and other economic and social factors. On an annual basis, our external auditors review claim liabilities as well as our actuaries.
Pension Plans
Metro sponsors four defined benefit pension plans. The Board of Commissioners is required to appoint trustees to an administrative pension committee for each plan. Each pension committee oversees the funded status and trustee administration; and approves plan amendments, benefits, funding and investment policy guidelines. The Board of Commissioners authorizes the trustees of the pension committees to administer, construe and interpret the pension plans in a uniform and nondiscriminatory manner. The trustees of the pension committees are authorized to determine eligibility for benefits under the plans and to construe the plans terms as well as administer the plan assets. There are no separate audited GAAP-basis reports for the pension plans or the OPEB plan.
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The Pension Plan for Salaried Employees of Metro is a noncontributory single employer defined benefit pension plan for salaried employees (“Salaried Plan”). All Metro full-time salaried employees are eligible to participate in the Salaried Plan. Employees who retire after attaining the normal service retirement age as defined in the plan, provided the employees have five years of credited service, are entitled to normal retirement benefits, payable monthly for life, based upon final average monthly earnings and years of credited service. Final average monthly earnings are the employee’s average monthly earnings for the three consecutive Plan years preceding cessation of employment producing the highest average. Participants who have attained age 55 and completed ten years of credited service may retire and receive reduced benefits. The Salaried Plan also provides death and disability benefits. The amortization periods for the plans are closed.
All Metro full-time employees who are included in one of the collective bargaining units recognized by Metro are required to participate in the applicable Union Plan. The Union Plans are contributory single employer defined benefit pension plans. Participants must satisfy minimum age and service requirements for retirement and are eligible for a deferred vested pension if they leave the service of the Agency with at least 10 years credited service.
The Union Plans are as follows:
• Bi-State Development Agency Missouri-Illinois Metropolitan District and Division 788 Amalgamated Transit Union, AFL-CIO Employees’ Pension Plan and Agreement (“788 O&M Plan”)
• Bi-State Development Agency Missouri-Illinois Metropolitan District and Division 788, Clerical Unit, Amalgamated Transit Union, AFL-CIO Employees’ Pension Plan and Agreement (“788 Clerical Plan”)
• Bi-State Development Agency Missouri-Illinois Metropolitan District and Locals No. 2 and No. 309 of the International Brotherhood of Electrical Workers Employees’ Pension Plan and Agreement (“IBEW Plan”)
The 788 O&M Plan members are eligible for full retirement benefits at (a) age 65, (b) the completion of 25 years of credited service or (c) age 55 with 20 years of credited service. Participants who have attained age 55 with 15 years of credited service may retire and receive reduced benefits.
Under the 788 Clerical Plan, members are eligible for retirement benefits at (a) age 65 with 10 years of credited service or (b) the completion of 25 years of credited service. Participants in the Clerical Unit Plan who have attained age 55 with 15 years credited service may retire and receive reduced benefits.
The IBEW Plan members are eligible for retirement benefits at (a) age 65 with 12 years of credited service or (b) the completion of 25 years of credited service.
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All Union employees are required to contribute each week. If a union employee leaves the employment of the Agency prior to being eligible to receive a monthly benefit, he or she is eligible for a refund of contributions. Upon retirement, employees are entitled to a benefit, payable monthly for life. The Union Plans also provide survivor and disability benefits.
Each plan has an annual actuarial valuation that includes financial statements and required supplementary information for that plan. The actuarial valuation is publicly available. Those reports may be obtained from the Benefits Section, Bi-State Development Agency, 707 North First Street, Mail Stop #125, St. Louis, MO 63102, or by calling 314-982-1471.
Total Metro covered payroll for plan years ending in 2010 was $82,519,393. Below are the total employees and retirees covered under the Salaried Plan for plan years ending May 31, 2010 and for the Union Plans for plan years ending March 31, 2010.
Fiscal Year 2009 Union Plans
Total 1,266
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186 1,217
569 3,256
Retirees & beneficiaries Vested long-term disability claims Terminated vested Fully vested Non-vested active Total participants
Salaried Plan
248 8
145 280 180 861
788 O&M
950 10
36 862 357
2,215
788 Clerical
61 -
2 43 9
115
IBE W
7 -
3 32 23 65
Funding Policy, Annual Pension Cost and Actuarial Assumptions
For the Salaried Plan, Metro contributes the actuarially recommended contribution. For the Union Plans, Metro has agreed within each collective bargaining agreement, to fund 70 percent of the actuarially recommended contribution, with the remaining 30 percent funded from employee contributions. There are no separate audited GAAP-basis reports for the pension plans or the OPEB plan. Following is Metro's annual pension cost for the current year and related information for each plan.
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Salaried Plan 788 O&M Union Plans 788 Clerical IBEW
Actuarial valuation date Jun 01, 2009 Apr 01, 2009 Apr 01, 2009 Apr 01, 2009
Contributions Employee Employer Total contributions made
none 2,234,053 2,234,053 $
2,054,808 $ 4,854,000 6,908,808 $
96,048 $ 216,471 312,519 $
54,564 $ 125,842 180,406 $
Contribution rates (as percent of covered payroll)
Employee Employer
Employer Annual Pension Cost
0.0% 8.8%
2,234,053 $
3.9% 9.3%
4,854,000 $
5.7% 13.0%
216,471 $
1 4.3%
125,842 $
.9%
Actuarial cost method Projected Unit Credit Cost *
Entry Age Entry Age Entry Age
Amortization method 30 years, * Level dollar, ifgreater than $0
Closed
Level dollar, fixed period
Closed
Level dollar, fixed period
Closed
Level dollar, fixed period
Closed
Remaining amortization period na 24 years 25 years 26 years
Asset valuation method
Assumed yield, with market
value adjustment
Assumed yield, with market
value adjustmen t
Assumed yield, with market
value adjustment
Assumed yield, with market
value adjustment
Actuarial assumptions: Investment rate of return Inflation rate of return Projected salary increases Post-retirement benefit increases
8.0% 3.5% 4.5% 0.0%
8.0% 3.5% 4.5% 0.0%
8.0% 3.5% 4.5% 0.0%
8.0% 3.5% 4.5% 0.0%
* Effective Jun 01, 2004
Other Post-Employment Benefits
In addition to the pension benefits described above, Metro provides post-employment health care benefits to all employees who meet retirement requirements and provide an employee share of premiums. The benefits for union retirees are determined by contractual agreement and the benefits for salaried retirees represent a voluntary payment. As of June 30, 2010, 1,107 union and salaried retirees met those requirements.
Three plan options are offered, and retiree contributions are three-tiered based on retirement date. The retiree contributions range from $2 per month Tier 1 Economy Plan coverage to $304 per month for family Tier 3 Premium Plan coverage. Metro reimburses a minimum of eighty percent of the amount of validated claims for medical and hospitalization costs incurred by retirees and their dependents.
For each retiree eligible for Medicare, Metro’s Plan coordinates benefits with Medicare.Expenditures for post-employment health care benefits are recognized as retirees report
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claims and include a provision for estimated claims incurred but not yet reported (IBNR) to Metro. In addition, some retirees are included in health maintenance organizations for which Metro pays fixed premiums.
Plan Description
Metro Self-Insured Comprehensive Medical Plan is a single-employer healthcare plan. Metro provides healthcare benefits to retirees, their spouses and their eligible dependents, and life insurance benefits to its retirees.
Post Employment Benefit Policies
GFOA Reporting Requirements
Metro’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASBS No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years.
Meeting Budgeting and Funding Challenges
For budgeting purposes, Metro budgets OPEB costs in two categories. The annual normal OPEB costs are budgeted as retiree medical expense. This portion is funded on a pay-as-yougo basis. The current year portion of the OPEB unfunded liability is accrued and shown as OPEB expense in the financial statements.
Hedging Policy
The Agency will engage only in financial hedge transactions that are consistent with prudent risk management practices related to the Agency’s principal business. The hedge is a financial tool used to reduce the risk associated with buying diesel fuel, electricity and natural gas as well as financial lending or borrowing activities.
Metro has adopted GASB 53 for the fiscal years 2010 and restated the 2009 financial statements. Because the fuel hedge is an effective hedge as defined by GASB 53, the unrealized gain (loss) on the fuel hedge is reported on the Statement of Net Assets and as an investment and a deferred inflow/outflow. The hedging instruments affected are weekly fuel hedge contracts with a notional amount of 42,000 gallons each with an index of Harbor Heating Oil #2 as listed on the NYMEX. There were 114 open contracts at June 30, 2010. On average it costs Metro $32 to receive a contract. The contracts in aggregate cover a rolling 18-month period.
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Basis risk -- Metro is exposed to basis risk on its fuel hedge contracts because the future fuel purchases are based on a pricing point different from the pricing point at which the future contracts are expected to settle (New York Harbor Heating oil #2).
There is no termination or interest rate risk.
Debt Policies
Legal Debt Limits
Currently, Metro is not subject to legal debt limits. The Agency is not required to obtain voter approval to issue debt or refinance bonds.
Metro Debt
Debt may be incurred only by the specific authority of the Board of Commissioners through special action. Notwithstanding funds specifically identified by Board Policy to be exempt, all funds under such debt resolutions or indentures of trust shall be controlled by the investment set forth in such documents.
Metro may not enter into a debt or financing arrangement unless the transaction is in full compliance with all state and federal laws.
Sinking Funds
Sinking funds shall be established to ensure that cash is available to make timely debt service payments on debt issuances that have maturities of one year or more and have periodic interest payments. Metro shall deposit amounts into the established sinking fund account in accordance with the Trust Indenture specific to each debt issuance.
Reserve Funds
Reserve funds may be required by the financial markets. These reserves may be funded by cash and securities, insurance, or surety bonds, but shall not be accessed unless the sinking funds have insufficient money to make the principal and interest payments as due. For financial planning purposes, reserve projections shall be based on the actual requirement on existing debt, plus the lower of maximum annual debt service or 10% of principal outstanding on projected debt.
Legal Security Structure
Metro shall establish a legal security structure of liens, agreements, pledged revenues, and other covenants which will be sufficient to secure credit enhancement from a financial institution or bond insurer with a rating of “AA” or better from Standards and Poor’s or Fitch and a rating of “Aa” or better from Moody’s.
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Debt Coverage Ratios
Certain debt service coverage ratios are required to access the financial markets. For financial planning purposes for both long-term debt and short-term debt, sales tax revenues plus operating revenues, plus interest income, less operating expenses (excluding debt service and depreciation), for the prior twelve months, must be sufficient to cover maximum annual debt service and financing lease payments by 1.00 times. The same calculation for future years must be sufficient to cover maximum annual debt service and lease payments, including payments on any debt to be issued, varying with each financing.
Revenue Policies
Revenue Diversification
Since revenue from passenger fares only covers a portion of operating expenses, Metro seeks to diversify its sources of revenue wherever possible.
Operating Revenues Operating revenues are recorded in the accounting period in which they become earned and measurable.
• Transit- passenger fares, bus and shelter advertising, real property rental income, and miscellaneous non-capital project billings.
• Agency (Executive Services)- Management fees from each operating unit.
• Gateway Arch Tram System- passenger ticket sales and site rental for special receptions.
• Gateway Arch Parking Facility- daily and monthly parking and special event parking fees.
• Riverfront Attractions- riverboat cruise fee revenues, food, beverage and gift shop sales associated with riverboat cruises, bicycle rentals, helicopter tours and concession revenues.
• St. Louis Downtown Airport- aircraft parking, leased acreage, hangar rentals, aviation fuel sales, concession revenues, and other revenues for security, utilities and trash removal.
Establishing Fares and Fees
• Transit - passenger fares require approval by the Board of Commissioners and 30-day public notice prior to implementation.
• Business Enterprises fares require approval by the Board of Commissioners.
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Non-Operating Revenues
Non-operating revenues are recorded in the accounting period in which they become earned and measurable. There are primarily two sources of non-operating income: sales tax appropriations and grants and assistance.
Grants and Assistance
All capital grants and assistance are recorded in the accounting period in which they become earned and measurable. Unrestricted, irrevocable operating assistance grants are recorded as nonoperating income. Capital grants and assistance, which are restricted to use for payments of debt service or acquisitions of capital assets, are credited directly to fund equity (capital grants and assistance).
Capital projects are defined as expenditures or projects with an estimated useful life of one year or more and a total cost of at least $5,000. Types of capital projects include construction of new transit facilities, purchase of rolling stock or support equipment and enhancements to the transit system for passenger comfort and safety.
Federal Aviation Administration Capital Improvement Grants
Capital improvement projects for airport engineering and construction costs at the St. Louis Downtown Airport are funded by capital improvement grants from the Federal Aviation Administration and the Illinois Department of Aeronautics. The terms and conditions of capital grants require that a portion of the project costs be funded locally.
Capital and Operating Assistance Grants
The purpose of the Capital Assistance Grants is to provide financial assistance in the undertaking of urban mass transportation capital improvement projects. Additionally, beginning in fiscal year 1999, a portion of the Capital Assistance Grants may be used for fleet maintenance. The terms of the capital assistance grants require that a portion of the project costs be funded locally. The local share of the capital assistance grants has been funded by grants from the State of Illinois and by application of local Missouri sales tax appropriations. Metro is the recipient of the following type of assistance grants.
Federal Transit Administration -- Metro is the recipient of several Federal Transit Administration Assistance Grants awarded by the United States Department of Transportation under the Federal Transit Act of 1964, as amended.
State of Missouri -- In 1996 the Governor of the State of Missouri approved temporary transit operating assistance grant funding through the Missouri Department of Transportation. Metro began receiving this assistance in July 1996. The grant was renewed for fiscal year 2011 and is expected to be renewed in fiscal year 2012.
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Illinois Department of Transportation Grants -- The Illinois Department of Transportation is authorized under provisions of Illinois Revised Statutes, Chapter 127, Section 49 through 51 and Illinois Revised Statues, Chapter 127, Section 701 (“Illinois Acts”) to provide capital assistance to Metro. Metro uses a portion of the Illinois capital assistance grants to meet local share requirements on certain federal transit administration capital improvement projects.
Sales Tax Appropriations
The Missouri Legislature has authorized certain cities and counties to levy a ½-cent sales tax to be used for transportation purposes. The bill does not require that revenues be paid directly to the Transit System, but authorizes the collecting agencies to appropriate such revenues for transportation purposes. Therefore, all sales tax revenues are subject to appropriation risk. A minimum of 2 percent of any appropriation for public mass transportation must be passed through to the St. Louis Office of Mentally Retarded/Developmentally Disabled Resources (“City Board”) and Productive Living Board for the Developmentally Disabled (“County Board”). Sales tax receipts, which are passed through to the City and County Boards, are recorded as operating assistance and the corresponding expense is recorded as a contribution to outside entities in the statement of revenues and expenses of Metro.
Additionally, a ¼-cent sales tax was established, is restricted to mass transit use, and annually appropriated from the City of St. Louis and St. Louis County. Metro, in accordance with certain debt agreements, has authorized the bond trustee to receive these payments. The remaining funds, after debt service, are then transferred to Metro.
In April 2010 voters in St. Louis County approved an additional ½ cent sales tax (Prop A) initiative to be used for transportation purposes. Under previously approved sales tax initiative in the City of St. Louis, this initiated an additional ¼ cent sales tax. Both of these new sales taxes are regulated under the same statutes as the original ½ cent and ¼ cent sales taxes. Both are subject to appropriation risks.
That portion of the sales tax receipts which is restricted for capital expenditures, for improvements to properties used in providing public mass transportation, for parts inventory, or for debt related payments is recorded as a restricted asset in the sales tax capital accounts, with a corresponding credit to capital grants and assistance. The restricted asset balance is reduced as funds are expended for the authorized purposes.
The Agency has restricted funds, which are recorded in the Sales Tax Capital Account, for the purchase or construction of new transportation equipment or facilities. Temporary advances for operating purposes are allowed from the fund, to be repaid when federal, state or local operating assistance is received.
Illinois Service
Metro contracts with the St. Clair County Transit District to provide public mass transportation services for the Illinois Counties of St. Clair and Monroe. The contract
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specifies the amount of services to be provided, and the method of reimbursement for operating costs associated with the services provided in these counties.
Financial Reserve Policies
Restricted Funds Policies
That portion of the sales tax receipts which is restricted for capital expenditures, for improvements to properties used in providing public mass transportation, for parts inventory, or for debt related payments is recorded as a restricted asset in the sales tax capital accounts, with a corresponding credit to capital grants and assistance. The restricted asset balance is reduced as funds are expended for the authorized purposes.
Metro has restricted funds, which are recorded in the Sales Tax Capital Account, for the purchase or construction of new transportation equipment or facilities. Temporary advances for operating purposes are allowed from the fund, to be repaid when federal, state or local operating assistance is received.
Cash, Cash Equivalents and Investments
Cash, cash equivalents and investments of Metro are presented on the combined statements of net assets as restricted cash and cash equivalents and restricted investments and as unrestricted cash and cash equivalents.
Restricted Assets
At June 30, 2010, the following assets were restricted to the purposes for which the funds were created.
2010 Restricted Assets Restricted accounts receivable $ 48,585 Restricted under Cooperative 5,940,449Agreement Restricted under Revenue Bond 1,377,619Indenture Sales tax capital 13,836,415 Self-insurance 14,809,358 Capital lease obligations 151,680,821 Mass transit sales tax bond indenture 34,129,623 Other 56,501,712
Total Restricted Assets $ 278,324,582
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Operating Agreement
Gateway Arch Cooperative Agreement
According to a cooperative agreement (“Agreement”) dated May 14, 1962, as amended, with the United States Government acting through the National Park Service, Metro agreed to construct and operate a transportation system in the Gateway Arch. According to the Agreement, Metro will operate the transportation system (“Tram”) until January 1, 2013, and is to receive a monthly management fee based upon the prior month's operating results. The United States Government retains legal title to the Gateway Arch Transportation Facilities. Upon termination of the Agreement, the Agency is required to transfer to the United States Government all assets remaining from the operations of the transportation system after discharge of all liabilities.
Through the Agreement, Metro agreed to construct and operate a 1,200 space parking facility on the Jefferson National Expansion Memorial site, the Gateway Arch. The United States Government retains legal title to the Gateway Arch Parking Facility. Metro is required to establish parking rates, fees and charges to operate and maintain the parking garage and to pay debt service on the Arch Parking Facility Revenue Refunding Bonds, Series 1997. Upon termination of the Agreement, Metro is required to transfer to the United States Government all assets remaining from the operations of the parking facility after the discharge of all liabilities.
Commitments and Contingencies
Expenditures financed by State and Federal grants are subject to audit by the granting agencies to determine compliance with conditions of the grants. Management believes that Metro is in compliance with the terms of such grants and that no significant liability will arise from audits previously performed or to be performed.
In the ordinary course of business, a number of claims and lawsuits arise from individuals seeking compensation for personal injury, death, and/or property damage resulting from accidents occurring in the operation of the system. In addition, Metro has been named as a defendant in a number of lawsuits relating to personnel and contractual matters. Management does not believe that the outcome of these claims will have a material adverse effect on Metro’s financial position. However, in the event of an unfavorable outcome in one or more of these matters, the impact could be material to Metro’s financial position or results of operations.
Conduit Debt Obligations
From time to time, Metro has issued Industrial Development Bonds and Special Facility Revenue Bonds to provide financial assistance for the acquisition and construction of facilities deemed to be in the public interest.
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Financing Instruments, Obligations and Debt
Finance Obligations Under Lease
On October 1, 1995 Metro entered into a transaction to lease 30 Series 1000 light rail vehicles to investors (the “headlease”) and simultaneously sublease the vehicles back (the “sublease”). Metro entered into similar transactions on August 26, 1997, leasing four of its Missouri facilities (DeBaliviere, Brentwood, Main Repair and MetroLink Yards and Shops). Additionally, Metro entered into similar transactions on August 30, 2001 and November 29, 2001 leasing 34 of its Series 2000 and Series 3000 light rail vehicles, respectively.
1995 Lease/Leaseback of 30 Light Rail Vehicles
At closing, the Series 1000 rail cars had a fair value of approximately $63.0 million. As part of the light rail headlease, Metro received a prepayment equivalent to the net present value of the headlease obligations totaling approximately $63.0 million. With the prepayment, Metro purchased investments sufficient to make the payments under the sublease. Approximately $52.7 million was deposited with AIG-FP Capital Preservation Corporation (“AIG-FP”) according to the terms of the Guaranteed Investment Contract (“GIC”) that AIG-FP committed to pay the debt portion of the sublease obligations and repurchase options. The GIC is guaranteed by American International Group Incorporated, rated “A3” by Moody’s, “A1” by Standard & Poor’s and “BBB” by Fitch. In addition, $6.8 million was invested in RTC STRIP obligations, which, at maturity, will be sufficient to pay the remaining equity portion of the sublease obligation and exercise the repurchase option, if Metro chooses to do so. Under this transaction, Metro maintains the right to continued use and control of the assets through the end of the leases and is required to insure and maintain the assets.
1997 Lease/Leaseback of Transit Facilities
In 1997, Metro prime leased its Brentwood and DeBaliviere Bus Facilities, Main Repair Shop, and MetroLink Light Rail Facility to Bi-State SPVI Trust. Bi-State SPVI Trust leased the Facilities to State Street Bank and Trust. State Street subleased the Facilities to Bi-State SPVII Trust. Bi-State SPVII Trust subleased the Facilities to Metro. The facilities were leased for various periods, the last repurchase option occurring in 2018. The four facilities had a fair market value of approximately $92.3 million. As part of the head lease, Metro received prepayments equivalent to the net present value of the head lease obligations which totaled approximately $68.4 million. Approximately $57.6 million was deposited with AMBAC Asset Funding to pay the debt portion of the sublease obligation and exercise the lease repurchase option. In addition, $7.2 million was invested in a Guaranteed Investment Contract (GIC) with AMBAC Capital to satisfy the remaining equity portion of the sublease obligation. Metro received approximately $3 million as net proceeds from the transaction. The lease was fully defeased at closing. AMBAC Assurance Company guaranteed the payments of AMBAC Asset and AMBAC Capital, and also provided a surety policy for the transaction. Provisions of the lease
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agreement provided that if AMBAC’s credit rating was downgraded, that the payment agreements be collateralized and the surety policy be replaced. AMBAC was downgraded initially in November 2008 and then received further downgrades in 2009, eventually receiving a Caa2 (“extremely speculative”) rating from Moody’s in July 2009. Upon initial downgrade in November 2008, AMBAC Assurance Corporation transferred collateral to the Collateral Agent with respect to the GIC.
In October 2009, AMBAC initiated discussion with Metro on early termination of the 1997 Lease. Subsequently, Metro entered into lease termination negotiations with the lease investor, who was also the investor in the F1 Tranche of the 2001 Railcar Lease. The investor offered to terminate the lease at a substantial discount from the accreted value of their future revenue from the lease, provided that Metro also terminates the F1 Tranche of the 2001 Lease. Metro accepted these terms. The transaction closed on December 15, 2009. AMBAC made a termination payment to Metro for the GIC reflecting the current value of the investment contract. Metro also received proceeds from the securities in the F1 payment obligation account (see below). With these funds, plus as additional amount of Metro funds, the required termination payment was made to the investor for both lease transactions. Due to the investor being involved in similar negotiations with other transit agencies, the termination agreement provides that Metro not disclose the specific amount of this payment. Management believes the amount of the payment was reasonable, was significantly below the maximum exposure in the transactions, and does not materially affect Metro financial results for the year. The charge is recorded as interest expense in the financial statements.
2001 Metro LRV Leveraged Lease- Cure Narrative
In 2001 Metro entered into a lease\leaseback for 34 of its Light Rail Vehicles (LRVs). There were three lease tranches (C1, C2, F1) with two investors: Comerica (C1, C2) and Fleet (F1). Fleet was subsequently acquired by Bank of America:
• In August 2001, Metro entered into leases for 30 LRVS. There were two tranches, the Fleet (F1) tranche for seven cars (LRVs 3001 through 3007), and the Comerica tranche (C1) for 23 cars (2001 through 2010, and 3008 through 3020.) The 30 LRVs at closing had a market value of $120 million.
• In November 2001, a lease transaction was entered into with Comerica (C2) for four (4) LRVs (3021 through 3024). The four (4) LRVs at closing had a market value of $16 million.
• The first 20 of the 3000 series, for the “original” St. Clair County Extension were paid for by the FTA; the last four (4), for the final part of the St. Clair extension were paid for by the St. Clair County Transit District (SCCTD) making the approximate effective split on the transaction 70%- SCCTD (24/34), and 30%- Metro (10/34).
Metro received a prepayment equivalent to the net present value of the head lease obligations totaling approximately $120.0 million for the C1 and C2, and $16 million for the F1. Approximately $93.6 million (C1,C2) and $12.9 million (F1) was deposited with Premier
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International Funding, to partially meet Metro’s rent obligations under the sublease and to set aside funds to enable Metro to exercise its repurchase option. Financial Security Assurance Company, Inc. (FSA, now Assured Guaranty), an AAA rated insurance company, guaranteed, with a surety policy, the payments under the agreement with Premier. Approximately $16.5 million (C1,C2) and $1.8 million (F1) was deposited with an Equity Payment Undertaker, AIG-Matched Funding Corporation, an AAA rated company, to meet Metro’s remaining payment obligations under the F-1 and C-1 C2 subleases, and to set aside funds to enable Metro to exercise its repurchase options.
AIG was downgraded below AAA in May 2008, which triggered a provision in the lease document that Metro replace the payment undertaker, or provide substitute acceptable collateral. Additionally, a downgrade of FSA in November 2008 triggered a provision within the Participation Agreement requiring Metro to replace the surety policy. The remedial actions of Metro were required, in each case, within thirty days. Since Metro was not able to make the required remedial actions within the stipulated period, Metro was placed in technical default regarding the leases, potentially exposing it to significant financial penalties. Both lease investors issued waivers of enforcement (for default) to allow Metro time to remedy the defaults.
With respect to the F-1 payment obligation, on June 10, 2009, Metro terminated the agreement with AIG and deposited securities sufficient, at maturity, to meet Metro’s obligations under the sublease. In December 2009, the F1 Tranche was early terminated, and the securities were sold and the proceeds used as part of the required termination payment. Per agreement, SCCTD contributed 70% of the termination payment of the F1 Tranche.
At June 30, 2010, Metro reached a tentative agreement with lease investor to cure the lease default pertaining to the C1 and C2 Tranches. The agreement called for Metro to pledge additional collateral to the investor, equal to a percentage (40%) of the investor’s stipulated future revenue from the transaction, less the value of collateral already deposited by AIG per terms of the payment agreement. The amount of the additional collateral was initially estimated at $9 million. The collateral will be returned in entirety to Metro at the end of the lease, or if AIG of FSA regain the required ratings. The collateral will be marked to market annually, and any portion of the collateral amount exceeding the specified amount will be returned to Metro. Further, interest earnings on the collateral will revert to Metro and SCCTD. It is expected that as the investor’s stipulated future revenue amount declines, as the lease termination date (2025) approaches, the collateral amount will be reduced. The collateral will also be returned if the insurance companies retain the required credit rating. SCCTD agreed to contribute their portion of the collateral, approximately 70% of the total requirement.
Due to the complexities in negotiating the additional collateral transaction, it did not close until February 4, 2011. On January 31st, Comerica provided the amount of their additional collateral requirement, which was $6,972,941.29 for the C1, and $1,747,706.91 for the C2, for a total of $8,720,648.20. This was based on 40% of their future stipulated loss, less the market value of the collateral deposited by AIG, as of 12/31/10. SCCTD was advised of the additional collateral plus the known transaction fees.
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On February 3, Metro purchased $8.7 million Par Treasury bills as collateral for the C1 and C2. On February 4, the above securities were delivered to Wells Fargo Trust and the transaction closed.
All of the leases discussed above have been recorded as capital leases for accounting purposes. The following chart highlights pertinent information on the subleases:
1995 Transaction
1997 Transaction
2001 Transactions Total
Sublease balances, 6/30/09 Interest accrued in 2010 Lease payments and reductions
70,034,940 $ 5,215,550
(4,448,769)
93,891,905 $ 170,123,048 $ 334,049,893 $ 3,038,205 7,869,839 16,123,594
(96,930,110) (101,513,076) (202,891,955)
Total sublease balances, 6/30/10 $ 70,801,721 -$ 76,479,811 $ 147,281,532 $
Purchase option dates February 2017 January 2025
Sublease termination dates February 2018 January 2025
The following is a schedule by fiscal year of future lease payments and purchase option payments, to the extent they are exercised, and interest expense for the above transactions as of June 30, 2010:
Payments
2011 $ 7,223,349 2012 7,398,402 2013 6,376,274 2014 7,921,613 2015 4,448,769 2016 - 2020 86,348,769 2021 - 2025 121,617,693
Total future lease payments 241,334,869
Less amount representing interest (94,053,337)
Net obligation at June 30, 2010 $ 147,281,532
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Long-Term Debt
Debt and capital lease obligations at June 30, 2010, consisted of the following:
2009 2010 Amortization,
Beginning Payments and Ending Due Within Balance Borrowings Other Adjustments Balance One Year
Missouri Transportation Finance Corporation Loan $ 2,306,077 $ - $ (2,306,077) $ - $ -
Capital Lease Obligations 334,049,893 16,123,594 (202,891,955) 147,281,532 7,223,349 Subordinate Mass Transit Sales Tax
Appropriation Bonds, Series 2005 A 150,000,000 - - 150,000,000 -Mass Transit Sales Tax Appropriation
Bonds, Series 2002 A, B, C 396,016,761 - (75,000,000) 321,016,761 9,650,000 Plus: Unamortized debt premium 4,240,251 - (1,114,267) 3,125,984 -
Mass Transit Sales Tax Appropriation Bonds, Series 2007 20,820,000 - 20,820,000 -Plus: Unamortized debt premium 35,885 - (1,480) 34,405 -
Mass Transit Sales Tax Appropriation Bonds, Series 2009 - 97,220,000 97,220,000 -Less: Unamortized debt discount - (212,867) 4,143 (208,724) -
Interest Rate Swaps 9,299,800 - (9,299,800) - -Arch Parking Facility Revenue
Refunding Bonds, Series 1997 2,660,000 - (615,000) 2,045,000 645,000 Less: Unamortized debt discount (41,003) - 18,508 (22,495) -
Debt and capital lease obligations $ 919,387,664 113,130,727 $ (291,205,928) $ $ 741,312,463 17,518,349 $
Arch Parking Facility Revenue Refunding Bonds
The construction of the Gateway Arch Parking Facility was financed through the April 29, 1986 issuance of revenue bonds (1986 revenue bonds). On February 10, 1997, Metro issued $8,110,000 of revenue bonds at 3.9 percent to 5.875 percent (“1997 revenue bonds”). The proceeds from the 1997 revenue bonds were used to redeem all of the previous outstanding revenue bonds. The 1997 revenue bonds are not a general obligation of Metro, but rather are collateralized by future operations of the garage as well as the debt service reserve. According to the indenture under which the revenue bonds were issued, the Gateway Arch Transportation Facilities fund must maintain a debt service reserve at the required balance of $790,686. The indenture and resolutions under which the bonds were issued also specify certain restrictive covenants. The significant covenants include not taking action to make the bonds private activity bonds, as defined by the United States Tax Code, and having specified operating profits in excess of 150 percent of the next year’s debt service requirement and the debt service reserve. As of June 30, 2010, Metro was in compliance with such covenants.
Long-term debt principal and interest maturities subject to mandatory redemption for the bonds are as follows:
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Fiscal Interest Year Principal Expense
2011 645,000 $ 98,039 $ 2012 680,000 58,947 2013 720,000 17,626
2,045,000 $ 174,612 $
Mass Transit Sales Tax Appropriation Bonds
In November 2002, Metro issued $414.1 million in Mass Transit Sales Tax Appropriation Bonds to finance the design, engineering, acquisition of equipment and construction of the 8.2 mile Cross County MetroLink Extension. The Series 2002 A, B and C Bonds are expected to be paid from the revenues received by St. Louis County and the City of St. Louis from a one-quarter cent mass transit sales tax (“Proposition M Sales Tax”) annually appropriated for such purpose.
The $100 million Series 2002A Bonds were originally issued as weekly Variable Rate Demand Notes. The notes had a weekly put feature which provided the investor an opportunity to redeem the bonds. In the event the bonds were redeemed and another buyer could not be found for them, Metro entered into a stand-by bond purchase agreement with a large bank. In exchange for a fee, the bank agreed to buy any unsold bonds. Due to events related to the global credit crisis which began in summer 2007, approximately $75 million of the Series A Bonds were put back to the stand-by bond purchase provider, beginning in September 2008 through February 2009. Terms of the bond purchase agreement provided that Metro makes early amortization on any such bonds. Consequently, in March, 2009, Metro remarketed $25 million of the Series A as fixed rate bonds at rates between 4.5% and 5.2%, maturing in 2019 – 2023. The remaining $75 million of the Series A Bonds were refunded in November 2009 with the Series 2009 Bonds.
The $313,305,000 Series 2002B bonds bear interest at rates of 3.05 percent to 5.25 percent, with maturities beginning fiscal year 2009 through fiscal year 2033. In December 2007, Metro refunded the first two principal payments of the Series 2002B Bonds with the Series 2007 Refunding Bonds (see below).
The $816,760 Series 2002C Capital Appreciation Bonds accrete interest at 4.125 percent (maturing October 2012,) 4.75 percent (maturing 2017) and 5.25 percent (maturing 2022) with a value of $1,855,000 at maturity.
Long-term debt principal and interest maturities subject to mandatory redemption for the bonds are as follows:
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Fiscal Interest Year Principal Expense
2011 9,650,000 $ 15,786,698 $ 2012 10,120,000 15,348,829 2013 10,531,930 14,829,326 2014 11,185,000 14,216,046 2015 11,775,000 13,618,684 2016-2020 68,711,114 58,107,619 2021-2025 74,813,717 39,645,346 2026-2030 71,770,000 21,546,125 2031-2033 52,460,000 3,365,750
$ 321,016,761 $ 196,464,423
The Mass Transit Sales Tax Appropriation Bonds were collectively issued at premium of $11,102,583, which is reported in long-term debt. The premium is being amortized as a reduction of interest expense under the effective interest rate method. At June 30, 2010, the unamortized premium was $3,125,984. The Agency also incurred and deferred $6,191,902 of issuance costs related to the issuance of the bonds and $436,478 for the remarketing costs. At June 30, 2010, the remaining balance is $4,209,309.
To provide additional security to the bondholders, the trust indenture for the Series 2002 Bonds specified that a Debt Service Reserve Fund (DSR) be established in the amount of one year’s debt service, or approximately $28 million. Metro had the option of cash funding this requirement or purchasing an AAA rated surety. Metro chose to purchase a surety from Financial Security Assurance Corporation (FSA, subsequently acquired by Assured Guaranty), which at the time of issuance had an AAA rating from all three major credit rating agencies. In 2008, two of the rating agencies (Moody’s and Fitch) downgraded FSA below AAA, and the third (Standard & Poor’s) put FSA on a negative outlook. On October 25, 2010, Standard & Poor’s downgraded Assured to AA+. Since there are no remaining AAA rated municipal bond insurers, this downgrade requires that Metro cash fund a Debt Service Reserve Fund of $28 million by October 25, 2011. Metro is currently analyzing options for fulfilling this requirement.
Series 2005 (Subordinate)
In November 2005, Metro issued $150 million in Subordinate Mass Transit Sales Tax Appropriation Bonds (Series 2005A) to complete the MetroLink Cross county light rail extension project, pay certain costs of issuance, and provide funds for interest expense up to three years. The Series 2005A Bonds are expected to be paid from the revenues received by St. Louis County and the City of St. Louis from a one-quarter cent mass transit sales tax annually appropriated for such purposes, but have a subordinate lien on the tax to the Series 2002 Bonds and subsequent bond issues refunding or remarketing the Series 2002 Bonds. (see below). The Series 2005A Bonds were initially issued as weekly Variable Rate Demand Notes, with liquidity to the bondholders provided through a direct pay Letter of Credit (LOC) which would expire on November 2, 2010. The expiration of the LOC required that Metro
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either extend or replace the LOC, or refund or remarket the bonds. At its August 2010 meeting, the Metro Board of Commissioners approved a plan of finance related to refunding the 2005A bonds, which included splitting the bonds into two modes:
• The $75,000,000 Series 2010A Variable Rate (weekly reset) Demand Notes, enhanced with a bank letter of credit.
• The $75,000,000 Series 2010B Fixed (for three years) Rate Bonds.
The Series 2010 B Bonds were sold on October 6, 2010, in the par amount of $70,290,000 with a premium of $4,712,944. The coupon rate on the bonds was 4.00%, which made Metro’s effective rate on the transaction 1.70%. The bonds mature on October 15, 2013, which coincides with the first call date on the Series 2002 B Bonds. The Series 2010 A Bonds were sold on October 13, 2010, with an initial weekly rate of .27%. The bonds have credit enhancement provided by a three year direct pay LOC issued by J.P. Morgan Chase. Both the Series A and B bond transactions settled on October 14, 2010.
Series 2007
In December 2007, Metro issued $20.82 million in Mass Transit Sales Tax Appropriation Refunding Bonds (Series 2007) to advance refund $18.1 million of the Series 2002B Mass Transit Sales Tax Appropriation Bonds. A Debt Service Reserve in the amount of $2.08 million was established at the time of the bond sale. The net proceeds of $18.49 million were deposited in an irrevocable trust with an escrow agent to provide for the payment of principal and interest of the aforementioned Series 2002B bonds. The Series 2007 Bonds are expected to be paid from the revenues received by St. Louis County and the City of St. Louis from a one-quarter cent mass transit sales tax annually appropriated for such purposes. The bonds bear interest at rates of 5.00 percent to 5.25 percent and mature in fiscal year 2034.
As a result of the refunding, Metro increased its total debt service requirements by $29.31 million, which resulted in an economic loss of $3.21 million. As of June 30, 2010, the amount of defeased debt outstanding, but removed from the financial statements, amounted to $9.43 million.
The bonds were collectively issued at a premium of $38,224 that is recorded in long-term debt. The premium is being amortized as a reduction of interest expense. At June 30, 2010 the unamortized premium was $34,405. The Agency incurred and deferred $276,296 of costs related to the issuance of the bonds. At June 30, 2010, the remaining balance is $248,693.
Long-term debt principal and interest maturities subject to mandatory redemption for the bonds are as follows:
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Fiscal Interest Year Principal Expense
2011 $ - $ 1,074,425 2012 - 1,074,425 2013 - 1,074,425 2014 - 1,074,425 2015 - 1,074,425 2016-2020 - 5,372,125 2021-2025 - 5,372,125 2026-2030 - 5,372,125 2031-2034 20,820,000 3,760,488
$ 20,820,000 $ 25,248,988
Series 2009
In October 2009, the Executive Committee of the Metro Board of Commissioners authorized the issuance of $97.2 million in Mass Transit Sales Tax Appropriation Bonds. The transaction closed on November 9, 2009. Metro issued a total of $97,220,000 in fixed rate serial and term bonds at an average rate of 4.97%. The bond proceeds were used as follows:
• Approximately $75 million was used to refund the remaining $75 million of the $100 million par Series 2002A Variable Rate Bonds.
• Approximately $9.9 million was used to terminate (net) two interest rate swaps Metro had in connection with the Series 2002 A Variable Rate Bonds.
• Approximately $9.1 million was used to create a Debt Service Reserve Fund for the bonds.
• The balance of approximately $2.6 million was used to purchase a bond insurance policy ($1.6 million), for underwriters discount ($.45 million), and to pay other costs of issuance (.55 million).
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Fiscal Interest Year Principal Expense
2011 - 4,767,975 2012 - 4,767,975 2013 - 4,767,975 2014 - 4,767,975 2015 - 4,767,975 2016-2020 - 23,839,875 2021-2025 8,555,000 23,618,925 2026-2030 10,035,000 21,114,113 2031-2035 31,745,000 19,082,725 2036-2040 46,885,000 7,088,375
$ 97,220,000 $ 118,583,888
Terms
Special Facility Revenue Bonds
For the construction of the second phase of the MetroLink system, Metro utilized funds provided by the proceeds from three special revenue bond issuances. These bonds are not general obligations of Metro. The bonds are to be repaid by a party other than Metro. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. The following is a description of the three bond issuances:
St. Clair County MetroLink Extension Project Bonds, Series 1998 A
The $48,550,000 Series 1998 A Bonds, issued July 1, 1998, are special, limited obligations of Metro, payable solely from certain project payments to be made by the Metro East Transit District of St. Clair County (the “District”), pursuant to the Project Financing, Construction, and Operation Agreement dated July 1, 1998 (“Project Agreement”) between the District and Metro. These bonds mature serially. On September 26, 2009, St. Clair County Transit District deposited cash with the Trustee to legally defease the bond issue.
St. Clair County MetroLink Extension Project Refunding Revenue Bonds, Series 2004
The $5,590,000 Series 2004 Bonds, issued April 15, 2004 are special, limited obligations of Metro, payable solely from revenue and other sources provided in the indenture, and are not general obligations of Metro. These bonds mature serially in varying amounts through 2028. The Series 2004 bonds provide funds to refund a portion of the Series 1998 A bonds on July 1, 2004 through July 1, 2008. As of June 30, 2010, $5,435,000 remains outstanding.
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2006 St. Clair County MetroLink Extension Project Refunding Revenue Bonds, Series
The $39,155,000 Series 2006 Bonds, issued December 20, 2006 are special, limited obligations of Metro, payable solely from revenue and other sources provided in the indenture, and are not general obligations of Metro. These bonds mature serially in varying amounts through 2028. The Series 2006 bonds provide funds to refund a portion of the Series 1998 A bonds on July 1, 2009 through July 1, 2028. As of June 30, 2010, the entire amount was outstanding.
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The Budget Process and Stakeholder Interface
The Compact between the States of Missouri and Illinois adopted in 1949 requires the Bi-State Development Agency of the Missouri-Illinois Metropolitan District (Metro) to prepare and adopt an annual budget. Such a budget must set forth proposed expenditures to be undertaken during the budget year for administration, operations, maintenance, debt service and capital projects. In addition, the budget identifies the anticipated income funding options for financing the proposed expenditures. The transit system is required to present a balanced budget where revenues equal expenses. The budget is a financial and strategic plan for the upcoming year developed in accordance with Agency policies. It seeks to optimize resources and maintain consistency with defined organizational objectives and the Agency’s Strategic Plan. The preparation and eventual approval of the annual operating and the tri-annual capital budgets are both an internal and external process. Operating Budget Internal Preparation Each year the budget begins with a budget message to Agency cost center managers imparting objectives for the upcoming budget year, including indications of the Agency’s expected financial condition for the coming year and details of procedures to be followed in preparation of the budget.
Agency cost center managers submit operating requests to the budget department using an online application. Metro’s senior management reviews these preliminary operating budgets and sets parameters for the coming year. Through a series of meetings, cost center managers refine their preliminary operating budget requests per management’s
parameters, goals and objectives. Final decisions are then made by Metro’s President and CEO to allow the operating budget document to be prepared and presented to the Board. The Board of Commissioners approval completes the internal process.
The Operating Budget Internal Process
Board Policyand Direction
Management Input
Financial Parameters
Goals and
Objectives
Budget Preparedby
Cost Center Managers
Strategic Plan
Submission
Operating Budget Approval by Board of Commissioners
Internal AnalysisPreliminary
ReviewSenior Mgmt
ReviewFinal DecisionsBoard Adoption
Operating Budget Process
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Submission Internal Analysis
Preliminary Review Senior Mgmt Review
Final Decisions Board Adoption
Capital Improvement Needs Identified by
Cost Center Managers
Projects Reviewed and Prioritized by
Senior Mgmt
Draft CIP Developed
Financial Parameters
Capital Budget Implementation
Operating Budget External Review and Approval Process
Each of the Transit System’s funding jurisdictions has a separate operating budget approval process. In St. Louis County, Metro’s operating budget is reviewed and recommended by the Public Transportation Commission and advanced to the County Executive. The County Executive submits a funding bill to the County Council, which debates and acts upon the bill. In the City of St. Louis, the Ways and Means Committee of the Board of Aldermen reviews the bill prior to adoption of funding ordinances by the Board. Subsequently, the Board of Estimates and Apportionment authorizes payments.
In Illinois, Metro contracts with the St. Clair County Transit District for funds for operations.
The Gateway Arch operating budget is approved by the National Park Service.
Capital Budget Internal Preparation
Each year the capital budget process begins with a meeting of Metro’s senior management serving as the Capital Improvement Program Prioritization Committee. Projected federal, state and local revenue sources covering three fiscal years are discussed and the budget message to Agency cost center managers is communicated regarding the agency’s capital improvement objectives for the upcoming capital budget cycle.
Capital projects are solicited from the The Capital Budget Internal Process Agency cost center managers and reviewed and prioritized. Projects from the region’s long-range plan formulated b y the East-West Gate way Council of Governme nts (EWGCOG), t he federally recognized St. Louis Metropolitan Planning Organization, are incorporated as
Board Policy and Direction
Capital Budget Process
Management Input
appropriate. Internally, a Transportation Improvement Plan (TIP) is formulated, which documents all federal transit grants for which the Agency plans to apply.
Metro’s President and CEO then makes the final decisions to allow the capital budget document to be prepared and presented to the Board of Commissioners for approval.
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Capital Budget External Review and Approval Process
East-West Gateway Council of Governments has a rigorous review process for the TIP, an important part of Metro’s overall budget. That process includes public hearings and committee review prior to consideration for approval by its Board of Commissioners. After the EWGCOG approval, the TIP is forwarded to the Illinois Department of Transportation and the Missouri Highway Department of Transportation for review and inclusion in each state’s Transportation Improvement Program. Final review by the Federal Transit Authority is required for grant application and receipt of federal funds.
In Illinois, with approval of the St. Clair County Transit District, Metro applies for grants from the Illinois Department of Transportation.
The Gateway Arch capital budget is approved by the National Park Service.
Operating and Capital Budget Amendment Process
A budget amendment for either the operating or capital budget is deemed necessary when a shortfall requiring the identification of additional funds is created by a significant event that could not have been reasonably foreseen at the time of budget adoption. Additionally, an amendment may be necessary due to local, state or federal government action. Presentation of the amendment to the Board of Commissioners is necessary, identifying proposed changes along with the justification and funding mechanism. Adoption by a majority of the Board formally amends the budget.
The budget and grant approval process is illustrated on the next page.
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Operating and Capital Budget and Grant Approval External Process
d ew
val
Preparation of Boar Strategic Plan Revi
and and Budget Appro
view t
ation Improvement Plan
irectors
lan
way
on s Department
ments
istrict
Transportation ay
n Improvement Plan
air County
n Improvement Plan
EXTERNAL PLANNING AND INPUT EXTERNAL APPROVAL PROCESS
Community Inpu
East-West Gateway East-West Gate Council of Governments
Council of Govern - Transportation Planning Committee Re Long-Range P - Hearings
- Executive Advisory Committee Review
- Board of D
Illinoi of Transportati
State TransportState Transportatio
Missouri Highw Department of
State Transportatio
Federal Transit Administration St. Louis County - grant application and approval
- Transportation Committee - County Executive - County Council Federal Aviation Administration
- grant application and approval
St. Louis City - Ways and Means - Board of Aldermen - Board of Estimates and
Internal Planning and Approval Process Apportionment
St. Cl Transit D
' - Board of Trustees
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FY 2012 Operating Budget Calendar
Oct 2010 Develop budget calendar. Update budget system structure for new year. Request projections for miles, hours, operator manpower, passengers,
passenger revenue, investment income, and sales tax revenue. Obtain FY 2011 payroll calendar.
11/05/2010 Send “New/Upgrade Positions Request” form to managers. 11/19/2010 Receipt of projections for miles, hours, operator manpower, passengers,
passenger revenue, investment income, and sales tax revenue. 11/30/2010 Complete draft budget using current personnel data and service levels.
12/02/2010 Deadline for approval of new/upgraded positions by HR and VP. 12/03/2010 Announce budget system is open at the Budget Kick-Off Meeting. 12/17/2010 Submit Request for Operating Goods and Services form.
12/30/2010 Managers submit/lock all budget requests in the Budget System.
1/07/2011 Vice Presidents evaluate/approve/reject/submits budget requests.
Jan 10 -14 2011
Review projected revenues by senior management.
2/15/2011 Review initial budget requests with President for his perspective.
Feb 16 -28 2011
Review of budget requests with cost center managers.
Mar 1 – 25 2011
Review of budget requests with President and Division Sr. Vice Presidents. Final decisions made.
Mar 26 – Apr 15 2011
Enter any changes into the budget system.
Apr 15 – 30 2011
Complete written budget document and PowerPoint presentation.
5/06/2011 Mail budget document to Board of Commissioners. 5/13/2011 Present the Operating and Capital Budget document to the Finance and
Audit Committees. 5/20/2011 Present Operating and Capital Budget document during the Board of
Commissioners meeting for Board approval.
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Ridership - All Modes(in millions)
2007
2008
2009
2012
Metro Transit System
Total SystemOverview:
Metro Transit System provides transit services in three modes - bus, light rail, and demand response using service names of MetroBus, MetroLink and Metro Call-A-Ride, respectively.
Website: www.metrostlouis.org
Service levels (FY 2010 actual):6040.6 million passenger boardings
129,591 average weekday ridership 5023.6 million revenue miles1.6 million revenue hours 40
1.2 million customer calls answered30
475,431 visits to TripFinder website 20104,876,911 diesel gallons consumed 20
2011Service area (569 square miles): 10
Missouri:City of St. Louis 0
St. Louis CountyIllinois:Illinois:
St. Clair CountyMadison CountyMonroe County
Union contracts:Amalgamated Transit Union,Division 788:
Bus and Rail Operations and MaintenanceClerical UnitDemand Response
The International Brotherhoodof Electrical Workers:
Local No. 2 (MO)Local No. 309 (IL)
0
10
20
30
40
50
60
Ridership - All Modes(in millions)
2007
2008
2009
2010
2011
2012
0
5
10
15
20
25
30
Revenue Miles - All Modes(in millions)
2007
2008
2009
2010
2011
2012
78
10
40
MetroBus Ridership(in millions)
2007
2009
2010
2011
Completed:
Metro Transit System
MetroBusOverview:
Since 1963, Metro has continuously provided bus service in the Greater St. Louis Region. Currently Metro operates 58 fixed bus routes in Missouri and 17 fixed bus routes in Illinois. Special bus service is provided in Missouri for New Year's Eve and Mardi Gras festivities. Additional special bus service is offered in Illinois for all St. Louis Cardinals home baseball games, and St. Louis Rams home football games.
Service levels (FY 2010 actual):24.3 million passenger boardings78,596 average weekday ridership16.1 million revenue miles1.2 million revenue hours340 buses (279 used at peak) 30 20084,185,172 gallons of diesel consumed75 bus routes at the end of FY 2010
20
Facilities:3 garages and 1 maintenance facility 0 201213 free park - ride lots
Development:Completed:
M B R MilGravois - Hampton (February 2002)Ballas Road (January 2003)North Broadway (May 2004)North Hanley Parking Garage (2004)Clayton (June 2004)Civic Center (September 2004)Central West End (August 2006)Shrewsbury (August 2006)Riverview (December 2006)Brentwood Meridian (June 2007)Catalan Bus Loop Improvements (2008)Maplewood Bus Loop (2009)Delmar Transit Plaza (2009)
0
10
20
30
40
MetroBus Ridership(in millions)
2007
2008
2009
2010
2011
2012
0
5
10
15
20
MetroBus Revenue Miles(in millions)
2007
2008
2009
2010
2011
2012
79
5
MetroLink Ridership(in millions)
2007
2008
2009
2010
2011
2012
MetroLink Revenue Miles(in millions)
Metro Transit System
MetroLinkOverview:
Since 1993, Metro has provided light rail service in the Greater St. Louis Region. The MetroLink system covers 38 miles from Lambert International Airport in Missouri to Scott Air Force Base in Illinois. In addition, the Cross County extension covers 8 miles from Forest Park south to Shrewsbury, Missouri. The overall alignment serves St. Louis County, the City of St. Louis in Missouri and St. Clair County in Illinois.
25Service levels (FY 2010 actual):
15.8 million passenger boardings 2049,083 average weekday ridership2.9 million revenue miles 15
116,974 revenue hours 1087 rail cars (50 used at peak)
Facilities0
2 rail yards2 maintenance facilities37 stations20 free park - ride lots
Development (in miles):Original alignment, July 1993 (17)St. Clair corridor, May 2001 (17.4)Shiloh-Scott Station, June 2003 (3.5)Cross County, August 2006 (8.0)
0
5
10
15
20
25
MetroLink Ridership(in millions)
2007
2008
2009
2010
2011
2012
0
1
2
3
4
MetroLink Revenue Miles(in millions)
2007
2008
2009
2010
2011
2012
80
0
100
200
Call-A-Ride Ridership(in thousands)
2007
2008
2011
2012
at
Metro Transit System
Call-A-RideOverview:
Since FY 1988, Call-A-Ride has provided alternative transportation to residents who have limited access to MetroBus or MetroLink service and/or disabled residents who are unable to use these services. Another important function of the Call-A-Ride organization is scheduling and dispatching paratransit vehicles operated by other members of the Transportation Management Association which coordinates paratransit operations in eastern Missouri.
Service levels (FY 2010 actual):545,606 passenger boardings93.5% ADA passenger boardings1,912 average weekday ridership 800
4.6 million revenue miles 700
290,620 revenue hours 600
448,367 reservation/assistance calls 5002009
691,739 gallons of diesel consumed 400
120 vans (80 used at peak) 300 2010
FacilitiesParatransit maintenance facility
at Main Shop Main Shop
DevelopmentADA Training Center, February 2004
0
100
200
300
400
500
600
700
800
Call-A-Ride Ridership(in thousands)
2007
2008
2009
2010
2011
2012
0
1
2
3
4
5
6
Call-A-Ride Revenue Miles(in millions)
2007
2008
2009
2010
2011
2012
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Metro Transit System Budget Summary
Fiscal Year Ending June 30, 2012
Operating revenue: FY 2012 Budget Projection Budget
FY 2011 FY 2010 Actual
Change 12 Bgt
vs. 11 Proj
Passenger revenue Bus/Rail revenue $ 47,623,242 $ 45,199,031 $ 45,740,298 $ 43,810,192 5.4% C-A-R revenue 899,724 872,244 852,135 820,937 3.2% Total Passenger Revenue 48,522,966 46,071,275 46,592,433 44,631,129 5.3%
TMA revenue 1,565,000 1,498,283 1,750,000 1,598,269 4.5% Other operating revenue 3,475,648 3,341,281 2,858,539 2,911,101 4.0%
Total operating revenue 53,563,614 50,910,839 51,200,972 49,140,499 5.2%
Operating expenses:
Wages and benefits excluding OPEB 151,079,876 142,357,055 146,762,735 130,672,600 6.1% OPEB 12,185,896 12,155,926 12,132,980 10,648,224 0.2% Services 24,794,433 23,935,598 23,807,798 20,921,946 3.6% Realized gain fuel hedging (1,510,652) (1,115,297) (1,054,850) 2,905,316 35.4% Fuel and lubrications 21,385,205 16,321,989 16,718,426 11,014,443 31.0% Parts & supplies 18,409,573 16,986,286 16,421,587 14,121,413 8.4% Casualty and liability costs 4,798,754 5,156,915 5,131,172 4,832,084 -6.9% Utilities 7,575,385 7,234,638 7,727,781 6,656,919 4.7% Taxes, leases, & other 2,599,314 2,261,426 2,174,949 1,687,008 14.9% Agency fees 1,800,000 1,500,000 1,500,000 1,400,000 20.0%
Total operating expenses 243,117,784 226,794,536 231,322,578 204,859,954 7.2%
Operating income (loss) (189,554,169) (175,883,697) (180,121,606) (155,719,455) 7.8%
Non-operating revenue (expense):
Grants & assistance 200,674,483 198,901,254 200,559,913 172,027,397 0.9% Investment income 406,300 371,764 286,849 242,228 9.3% Capital lease revenue 5,071,191 9,833,314 9,833,314 16,123,598 -48.4% Capital lease expense (5,071,191) (9,833,314) (9,833,314) (16,123,598) -48.4% Interest expense (22,570,380) (22,130,062) (28,865,441) (26,391,830) 2.0% Realized gain/(loss) capital lease - (6,488,743) - - -100.0% Interest rate swap-term accrual - - - (575,200) Sheltered workshop (1,025,997) (1,025,997) (1,017,695) (1,025,997) 0.0% Contributions (to) from outside entities 40,000 62,000 25,000 68,800 -35.5% Other misc nonoperating revenue (expense) - 746,318 - (1,885,699) -100.0%
Total nonoperating revenues (expenses) 177,524,406 170,436,535 170,988,626 142,459,699 4.2%
Net Income (deficit) before depreciation & amortization (12,029,763) (5,447,162) (9,132,979) (13,259,755) 120.8%
Depreciation and amortization 72,559,537 74,438,674 72,023,437 74,813,944 -2.5%
Net surplus (deficit) $ (84,589,300) $ (79,885,836) $ (81,156,417) $ (88,073,700) 5.9%
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Metro Transit System Detail of Grants and Assistance
Budget Summary Fiscal Year Ending June 30, 2012
Change FY 2012 FY 2011 FY 2010 12 Bgt Budget Projection Budget Actual vs. 11 Proj
Missouri subsidies: City of St. Louis 1/2 cent sales tax $ 16,191,203 16,191,203$ 15,945,832$ $ 16,191,203 0.0% City of St. Louis 1/4 cent sales tax 7,113,316 6,480,981 6,457,934 7,023,415 9.8% City of St. Louis Prop M2 sales tax 6,009,301 4,604,135 4,549,929 - 30.5%
Total City of St. Louis 29,313,820 27,276,319 26,953,695 23,214,618 7.5% St. Louis County 1/2 cent sales tax 34,082,627 34,082,628 33,921,222 34,082,628 0.0% St. Louis County 1/4 cent sales tax 26,664,612 27,296,947 27,924,217 29,882,132 -2.3% St. Louis County Prop A sales tax 41,316,000 39,500,000 39,445,521 - 4.6%
Total St. Louis County 102,063,239 100,879,575 101,290,960 63,964,760 1.2% State of Missouri 196,671 1,033,655 1,033,655 1,644,028 -81.0% State of Missouri ARRA - - - 8,000,000
Total State of Missouri 196,671 1,033,655 1,033,655 9,644,028 -81.0% Paratransit contracts 3,966,000 3,600,000 3,500,000 3,765,177 10.2% Planning & demonstration
reimbursement 160,000 160,000 160,000 160,000 0.0% Total Missouri local & state subsidies: 135,699,730 132,949,549 132,938,310 100,748,582 2.1% Illinois subsidies: Madison County - - - 11,009 St. Clair County 42,098,180 39,250,060 40,672,183 33,680,825 7.3% State of Illinois 1,300,000 570,419 - 80,803 127.9%
Total Illinois local & state subsidies: 43,398,180 39,820,479 40,672,183 33,772,637 9.0% Total local & state subsidies: 179,097,910 172,770,028 173,610,493 134,521,219 3.7%
Federal assistance: Vehicle maintenance subsidy 16,000,000 16,000,000 16,000,000 30,000,000 0.0% CMAQ grant 2,919,096 2,856,311 3,700,000 3,674,606 2.2% JARC grants 2,657,477 3,108,803 3,083,308 3,831,571 -14.5% ARRA funds - 4,166,112 4,166,112 - -100.0%
Total Federal assistance: 21,576,573 26,131,226 26,949,420 37,506,178 -17.4%
Total grants & assistance $ 200,674,483 198,901,254$ 200,559,913$ $ 172,027,397 0.9%
Totals may not sum due to rounding
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Transit Operating Major Assumptions Priorities The short-term priorities for the Transit operating budget are to sustain the recently restored service, build ridership, effectively manage resources of the system, and provide future stability and growth. Assumptions The FY 2012 budget projects an $12.0 million deficit before depreciation, which is within the unfunded other post employment benefit (OPEB) obligation. Historically, Metro has presented a balanced budget until FY 2008, when the Government Accounting Standards Board (GASB) issued ruling number 45 which required the accruing of other postemployment benefits. GASB 45 dictates recording the OPEB liability and expenses, but leaves the method of funding to the discretion of the entity. Metro currently funds the annual, normal cost portion of this obligation using “pay as you go” methodology. FY 2012 revenue and service have been favorably impacted by the passing of Proposition A (Prop A) which is a ½ cent sales tax. The passing of this County initiative also triggered the collection of a quarter-cent sales tax in the City of St. Louis. The St. Louis City voters passed their quarter-cent (Prop M2) sales tax initiative in 1997 contingent upon the approval of a similar initiative by St. Louis County voters. The additional funds from Proposition A allowed for service restorations during FY 2011 to levels similar to those in FY 2008. The region is anticipating flat sales tax revenue growth in FY 2012. Service Miles/Hours for all three modes are planned to remain at levels consistent with the service delivery in effect after the November 2010 service change. Passenger boardings on MetroBus, MetroLink and Call-A-Ride are expected to show modest growth compared to FY 2011.
Operating Revenue Passenger revenue is budgeted at $48.5 million for FY 2012 which is a $2.5 million or 5.3 % increase from the 2011 projection. The anticipated growth in passenger revenue is expected to be driven by ridership increases due to higher gasoline prices. The budget assumes no fare increases during FY 2012.
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2001 Actual
2002 Actual
2003 Actual
2004 Actual
2005 Actual
2006 Actual
2007 Actual
2008 Actual
2009 Actual
2010 Actual
2011 Proj
2012 Budget
Rail 8.6 9.5 10.0 9.3 11.0 12.6 17.1 16.5 17.2 17.3 16.9 17.8
Paratransit 0.5 0.6 0.7 0.8 0.9 1.0 1.0 1.0 1.0 0.8 0.9 0.9
Bus 22.3 21.7 21.6 21.3 24.1 24.8 24.7 28.0 29.0 26.5 28.3 29.8
-
10.0
20.0
30.0
40.0
50.0
60.0 Passenger Revenue(in millions)
TMA revenue is received from Transit Management Association participants. The TMA is a network of social service agencies, funding agencies, and transportation service providers who coordinate services and share costs to achieve efficiencies in operations. FY 2012 will mark the 13th year of the TMA. The FY 2012 budget is 4.5% higher than the FY 2011 projection. Other operating revenue includes advertising on revenue vehicles, bus shelters, and MetroLink stations; pay phone and vending machine concessions; rental income and other revenue. Other operating revenues are expected to increase over the FY 2011 projections by 4.0% primarily due to improved revenue vehicle advertising revenues.
Grants & assistance
78.6%
Other operating revenue
1.9%
Passenger revenue19.5%
Metro Transit FY 2012 Operating Revenue
and Grants & Assistance
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Expenses
Wages, benefits &
OPEB67.2%
Parts & supplies
7.5%
Other3.8%
Utilities3.1%
Fuel & lubrications
8.2%
Services10.2%
Metro TransitFY 2012 Operating Expense
Wages and benefits budgeted for 2012 are expected to be 6.1% higher than FY 2011 projection. This increase is predominately due to higher pension costs and return of service. Other postemployment benefits arose from the implementation of GASB Statement No. 45, Accounting and Financial Reporting for Employers for Postemployment Benefit Plans Other Than Pension. FY 2012 is the fifth annual budget that includes this benefit obligation. FY 2012 OPEB costs are expected to be virtually the same as those in the FY 2011 budget. Services include the following (in thousands):
Security guard, contracted police, and fare enforcement $ 7,055 Contract custodial 5,901 Contract maintenance 5,341 Financial consultants and services 889 Passenger revenue services including armored car, money processing, special event ticket sales and temporary help 882 Information technology, consultants and other services 1,770 MetroLink support services and structure inspections 185 Human resources services including medical exams and employment verifications 360 Outside services, legal fees, and professional services 2,411 Total $ 24,794
Fuel hedging (realized) Instability in world energy markets has caused the diesel price per gallon to increase sharply from the $2.86 per gallon budgeted in the FY 2011 budget. Currently prices are trending upward and expected to average $3.33 per gallon in FY 2012. The fuel hedging program involves purchasing heating oil contracts up to 18 months into the future. In times of rising prices, this generates a savings and slows the effect of the market increase on the financial statements. The projected realized gain on the hedging program is $1.5 million in 2012. The projected gain partially neutralizes the outcome of a rise in price on the actual cost of fuel. Fuel & lubrications expense has increased significantly between FY 2012 and FY 2011. The major reasons for this increase are service restorations for Metro Call-A-Ride services and diesel fuel prices.
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Parts & supplies expense increased 8.4% between FY 2012 and FY 2011 projection. The major reason for the increase is for revenue vehicle parts. Since FY 2009 revenue vehicle maintenance had been delayed. Metro plans to undertake previously deferred maintenance and return to a systematic maintenance program in FY 2012. Casualty and liability expense is dependent on a variety of factors including the insurance market, passenger boardings, the number of miles driven, population density of the service area and the number of accidents and injuries. The insurance market has been unfavorable, but Metro has performed exceedingly well for several years which helps to mitigate upward market trends in insurance premiums. Casualty and liability expense for 2012 is expected to be 6.9% lower than FY 2011 projection. This decrease is attributable to Metro’s successful efforts to decrease accidents and insurance claims. Utilities, including electric propulsion, are budgeted to increase 4.7% in FY 2012 compared to the FY 2011 projection. However, the FY 2012 budget considers offsetting impacts of rate increases with lower usage being achieved through conservation efforts, and therefore, is lower than the FY 2011 budget.
Taxes, leases & other expenses for FY 2012 reflect an increase of 14.9% compared to the FY 2011 projection. Key increases in this category are for state self insurance excise tax, training, grant application fees, direct hire fees, and miscellaneous expenses. Agency fees are payments to Executive Services for providing management services to Metro Transit System. For FY 2012, Transit’s portion will increase to $1,800,000 compared to $1,500,000 as in FY 2011. This increase in Agency fees is needed to fund increased Executive Services operating costs. Grants and Assistance City of St. Louis and St. Louis County sales taxes include ½ cent for transportation and ¼ cent for light rail development, operation and maintenance. The ¼ cent levy began in the middle of FY 1995. Only the ½ cent tax is subject to deductions for tax increment financing (TIF). St. Louis City forwards to Metro all taxes collected net of TIF’s. St. Louis County appropriates a portion of the ½ cent tax and all of the ¼ cent tax to Metro. Prop A ½ cent sales tax was passed by St. Louis County voters April 6, 2010 to fund service restoration, enhancements and future expansion. FY 2012 will be the first budget to reflect a full twelve months of receipts from the Prop A sales tax. Therefore, Prop A receipts are expected to increase 4.6% compared to the FY 2011 projection. Prop M2 ¼ cent sales tax in the City of St. Louis was activated when Prop A was passed by St. Louis County voters April 6, 2010. FY 2012 will be the first budget to reflect a full twelve months of receipts from the Prop M2 sales tax. Prop M2 receipts are expected to be 30.5% higher than the FY 2011 projection due to a combination of a full year of receipts and a higher allocation to the operating budget.
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The local economy continues to negatively impact Metro. The general weakness in the economy is expected to cause relatively flat growth in FY 2012 for both St. Louis City and the St. Louis County sales taxes. Budgeted sales tax receipts are allocated between operating needs and capital programs. Gross sales tax receipts (after TIF reductions):
2001 Actual
2002 Actual
2003 Actual
2004 Actual
2005 Actual
2006 Actual
2007 Actual
2008 Actual
2009 Actual
2010 Actual
2011 Proj
2012 Budget
County 1/2 cent 39.50 40.90 41.90 42.80 44.10 45.30 47.40 48.48 39.50 34.78 34.78 34.78
County 1/4 cent 38.00 38.61 38.09 38.92 39.61 40.42 41.11 41.26 38.97 36.28 36.25 36.28
County Prop A 39.54 44.00
City 1/2 cent 18.43 17.40 16.98 16.32 16.84 17.20 17.77 17.74 17.45 16.54 16.52 16.52
City 1/4 cent 9.24 8.83 8.62 8.46 8.66 8.90 9.18 9.27 9.01 8.61 8.61 8.61
City Prop M2 7.10 8.61
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
(in millions)
Sales Tax Receipts
State of Missouri Assistance is expected to decrease 81% compared to the FY 2011 projection due to the state’s own budget shortfalls. The FY 2012 budget recognizes the reduction in their annual appropriation to $0.2 million. Paratransit contracts include Medicaid and dialysis revenue, and other contractual receipts related to trips provided by Paratransit Operations. This is expected to grow approximately 10.2 % compared to the FY 2011 projection. St. Clair County assistance is based on a service agreement between St. Clair County Transit District and Metro. The St. Clair County Transit District administers St. Clair County tax collections and Illinois Department of Transportation subsidies and contracts with Metro for services. This assistance is expected to grow 7.3% compared to the FY 2011 projection to reflect St. Clair County Transit District’s portion of increased transit operating expenses. Federal vehicle maintenance assistance represents federal capital formula funds that the Agency chooses to program for vehicle maintenance per the Federal Transit Administration’s guidelines. Metro is planning to use nearly 50% or $16 million of their 5307 Federal Formula Funds in the FY 2012 operating budget for preventive maintenance.
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CMAQ grant includes Congestion Mitigation and Air Quality Improvement Program federal awards. In 2010, the FTA awarded a grant for 2 years related to service restoration. FY 2012 reflects the remaining portion of this award in the amount of $2.9 million. JARC grants include anticipated revenues from Job Access and Reverse Commute Programs. This funding is expected to decrease 14.5% to $2.7million in FY 2012, as compared to FY 2011 projection.
Non-Operating Revenue (Expense) Investment income, which includes interest earned on invested funds, is expected to remain low in FY 2012 due to unattractive money market rates. Capital lease revenue and expense recognize the revenue and expense associated with capital leases. The revenue and expense offset exactly. For FY 2012, these amounts are $5.1 million in both revenue and expense. Interest on debt results primarily from interest paid on bonds issued to finance the Cross County expansion, and reflects the refinancing of Series 2005 bonds at lower interest rates. Sheltered workshop expense is 2% of the Missouri ½ cent sales tax and is budgeted at $1.0 million in FY 2012. As the City of St. Louis and St. Louis County ½ cent sales taxes are projected with 0.0% growth through FY 2012, this expense is remaining the same as the FY 2011 projection. Contributions (to) from outside entities – “(to) outside entities” results from Metro contributions to another Agency. “(From) outside entities” represents contributions to Metro from organizations such as the Missouri Arts Council. Outside contributions are expected to decrease 35.5% from the FY 2011 projections. Depreciation and amortization in public transit systems is generally not funded by operating income, which is different than private industry that must generate profits for purchase/replacement of property and equipment. Depreciation is presented as required by generally accepted accounting principles. Depreciation is not funded to provide equity for capital replacements because such capital assets are predominately funded by federal grants. For FY 2012, depreciation is expected to decrease 2.5% compared to the FY 2011 projection.
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Metro System Operating Expense
Change FY 2012 FY 2011 FY 2010 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
By type of expense: Wages & benefits without OPEB $ 151,079,876 $ 142,357,055 $ 146,762,735 $ 130,672,600 6.1% Other postemployment benefits 12,185,896 12,155,926 12,132,980 10,648,224 0.2% Services 24,794,433 23,935,598 23,807,798 20,921,946 3.6% Fuel & lubrications 19,874,553 15,206,692 15,663,576 13,919,759 30.7% Parts & supplies 18,409,573 16,986,286 16,421,587 14,121,413 8.4% Casualty & liability 4,798,754 5,156,915 5,131,172 4,832,084 (6.9)% Utilities 7,575,385 7,234,638 7,727,781 6,656,919 4.7% Taxes, leases & other 2,599,314 2,261,426 2,174,949 1,687,008 14.9% Agency fees 1,800,000 1,500,000 1,500,000 1,400,000 20.0% Total operating expense $ 243,117,784 $ 226,794,536 $ 231,322,578 $ 204,859,954 7.2%
By function: Transit Operations $ 198,978,653 $ 183,260,254 $ 187,165,433 $ 164,526,250 8.6% Engineering & New Systems 1,996,458 4,086,372 1,648,045 2,978,636 (51.1)% Human Resources 10,481,970 9,931,962 10,685,403 9,152,731 5.5% Procurement, Inventory Management
& Supplier Diversity 4,585,027 4,251,857 4,428,403 4,413,532 7.8% Finance 18,724,582 17,497,041 19,227,586 15,671,284 7.0% Information Technology 6,576,845 6,238,404 6,518,585 6,432,857 5.4% Communications & Community Relations 703,794 553,855 614,119 568,231 27.1% Marketing 1,070,454 974,790 1,035,003 1,116,433 9.8% Total Metro System $ 243,117,784 $ 226,794,536 $ 231,322,578 $ 204,859,954 7.2%
(Totals may not sum due to rounding)
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Functions and Activities of Organizational Units Transit System
Transit Operations
Operational Overview: Transit Operations manages three modes of transportation and the associated support functions including the following:
Bus Transportation includes MetroBus activities related to bus operations management, bus operators, operator training, and bus cleaning operating out of the DeBaliviere, Brentwood, and Illinois facilities.
Rail Transportation includes MetroLink activities related to light rail operations management, light rail operators, operator training, and rail car cleaning operating out of the Ewing (Missouri) and 29th Street (Illinois) facilities.
Paratransit includes all Call-A-Ride activities related to paratransit operations management, van operators, operator training, passenger scheduling, and paratransit programs. Paratransit also operates the Green Line van service in the Washington University campus area.
Vehicle Maintenance is responsible for maintaining and cleaning all revenue and non-revenue vehicles. Vehicles maintained include buses, light rail cars, vans, and support vehicles. In addition to development and management of predictive, preventative, and condition-based maintenance programs, this function also operates a heavy repair facility, which includes a body and paint shop, engine overhaul shop, radiator shop, transmission overhaul shop, and radio communications maintenance shop. Also included are the vehicle maintenance management, vehicle maintenance training, maintenance analysis, and product development groups.
Facilities Maintenance is responsible for maintaining and cleaning the DeBaliviere, Brentwood, and Illinois bus operations facilities, the paratransit facility, and Metro headquarters.
Maintenance of Way is responsible for the inspection, maintenance, and repair of assets along the MetroBus and MetroLink routes.
MetroBus responsibilities include transfer centers, shelters, loops, and bus stops.
MetroLink responsibilities cover all rail systems including communications, signals, and traction power right of way including light rail stations, maintenance facilities, tunnels, structures, track, and rail right of way.
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Security is responsible for the safeguarding of Metro’s customers, personnel, and property as well as fare enforcement. The Agency utilizes Metro employees, jurisdictional police officers, outside security service guards, and undercover police officers.
Planning & Systems Development plans efficient and effective routes and operating schedules for bus and light rail service, reports on passenger boardings and service miles and hours, operates the Metro call center, and researches service opportunities and trends.
ADA Services administers and oversees compliance with transportation provisions of the Americans with Disabilities Act. The group also administers and coordinates the ADA activities related to Metro’s Call-A-Ride paratransit service including certification of customers as eligible for ADA complementary paratransit service, monitors service to the disability community, and actively participates in community outreach. A Travel Training Program designed to train disabled customers in the use of Metro’s fixed route bus and light rail service is managed by the department.
Operations Administration provides overall management of the Transit Operations functions.
Transit Operations: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
Bus Transportation: On-time performance * 89.0% 88.8% 92.5% 93.2% Accidents per 100,000 vehicle miles 2.3 2.3 2.3 2.1 Passenger injuries per 100,000 boardings 1.1 1.7 1.1 1.2 Customer complaints per 100,000 boardings 11.1 16.8 11.1 10.5
On-time performance 96.0% 98.6% 96.0% 99.0% Accidents per 100,000 vehicle miles 0.1 0.1 0.1 0.1 Passenger injuries per 100,000 boardings 1.0 0.7 1.0 0.4 Customer complaints per 100,000 boardings 2.5 0.9 2.7 1.7
On-time performance 98.5% 98.7% 97.4% 99.9% Accidents per 100,000 vehicle miles 1.3 1.4 1.3 1.4 Passenger injuries per 100,000 boardings 4.5 8.3 4.5 5.5 Customer complaints per 100,000 boardings 14.5 21.6 15.2 12.1
Rail Transportation:
Paratransit Transportation:
Vehicle Maintenance: Average revenue miles between incidents: MetroBus roadcalls 19,165 17,476 19,165 20,153
MetroLink failures * 29,400 27,303 29,400 28,987 Call-A-Ride roadcalls 50,000 65,359 23,500 38,156
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Maintenance of Way (MOW): MOW system reliability (on-time
performance) 98.6% 98.5% 99.0% 98.3% Elevator and escalator availability 98.9% 99.4% 98.0% 99.4% On-time performance of equipment
inspections 94.3% 97.0% 92.0% 97.7% Security:
Security incidents per 100,000 boardings 3.0 3.7 3.0 3.9 ADA Services;
Percent of incoming calls answered 95.0% 95.0% 96.0% 95.0% Percent of claims (applications) processed
within ADA 21-day guideline 100.0% 100.0% 100.0% 100.0%
Transit Operations: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Target
* MetroBus on-time performance calculation method and data sampling methods will be changed as Metro is going to begin the use of 100% satellite retrieved data.
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Transit Operations Operating Expense
Change FY 2012 FY 2011 FY 2010 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
Transit Wages & benefits without OPEB $ 125,788,395 $ 118,813,815 $ 121,758,982 $ 107,463,931 5.9% Operations Other postemployment benefits 10,505,410 10,542,769 10,457,537 9,064,428 -0.4%
Services 18,248,391 15,628,075 16,691,348 14,890,147 16.8% Fuel & lubrications 19,874,553 15,206,692 15,663,576 13,919,759 30.7% Parts & supplies 16,684,135 15,490,986 14,674,467 12,357,855 7.7% Utilities 7,014,786 6,790,834 7,221,933 6,200,597 3.3% Taxes, leases & other 862,985 787,084 697,589 629,532 9.6% Operating expense $ 198,978,653 $ 183,260,254 $ 187,165,433 $ 164,526,250 8.6%
Bus Wages & benefits without OPEB 63,770,689 59,604,421 61,947,845 51,972,598 7.0% Transportation Other postemployment benefits 5,642,035 5,719,345 5,583,280 4,823,952 -1.4%
Services 216,550 132,308 177,323 130,923 63.7% Parts & supplies 225,945 165,475 162,010 102,605 36.5% Utilities 31,848 26,108 33,192 27,937 22.0% Taxes, leases & other 122,254 56,367 57,629 29,713 116.9% Operating expense 70,009,321 65,704,024 67,961,278 57,087,727 6.6%
Rail Wages & benefits without OPEB 9,830,187 9,459,209 9,840,160 8,207,606 3.9% Transportation Other postemployment benefits 892,017 915,721 907,104 753,732 -2.6%
Services 6,514 2,464 1,750 1,737 164.3% Parts & supplies 18,300 12,244 17,300 5,189 49.5% Utilities 23,244 18,804 22,080 17,823 23.6% Taxes, leases & other 78,450 55,015 52,450 8,199 42.6% Operating expense 10,848,712 10,463,458 10,840,845 8,994,286 3.7%
Paratransit Wages & benefits without OPEB 11,651,019 10,764,613 11,208,297 9,865,817 8.2% Transportation Other postemployment benefits 255,250 254,327 265,380 231,567 0.4%
Services 369,517 323,316 280,469 317,572 14.3% Parts & supplies 47,590 25,392 47,722 25,967 87.4% Utilities 21,240 17,335 21,240 23,937 22.5% Taxes, leases & other 38,800 39,834 44,400 27,249 -2.6% Operating expense 12,383,416 11,424,817 11,867,508 10,492,108 8.4%
Vehicle Wages & benefits without OPEB 22,945,943 21,704,267 22,527,113 20,690,033 5.7% Maintenance Other postemployment benefits 2,085,100 2,084,163 2,123,077 1,873,892 0.0%
Services 1,948,043 1,948,905 1,932,015 1,598,306 0.0% Fuel & lubrications 19,874,193 15,204,073 15,663,576 13,919,715 30.7% Parts & supplies 13,423,172 12,693,085 12,063,940 9,951,468 5.8% Utilities 104,671 15,202 82,820 15,003 588.5% Taxes, leases & other 156,088 202,661 142,679 161,209 -23.0% Operating expense 60,537,211 53,852,356 54,535,220 48,209,626 12.4%
Facility Wages & benefits without OPEB 2,231,530 2,106,255 2,116,922 2,170,496 5.9% Maintenance Other postemployment benefits 205,238 199,151 201,960 182,624 3.1%
Services 1,900,306 1,766,989 1,910,646 1,712,044 7.5% Parts & supplies 827,914 678,742 689,372 531,821 22.0% Utilities 2,469,163 2,278,632 2,403,917 2,251,292 8.4% Taxes, leases & other 39,720 45,790 37,720 34,143 -13.3% Operating expense 7,674,232 7,078,178 7,360,539 6,882,465 8.4%
Maintenance Wages & benefits without OPEB 9,044,313 9,402,640 8,380,872 8,872,815 -3.8% of Way Other postemployment benefits 921,565 871,729 893,564 737,089 5.7%
Services 6,412,186 4,498,275 5,292,786 4,282,861 42.5% Parts & supplies 1,656,595 1,586,919 1,373,495 1,538,759 4.4% Utilities 4,313,646 4,371,181 4,608,560 3,794,237 -1.3% Taxes, leases & other 121,170 139,970 119,270 177,875 -13.4% Operating expense 22,469,475 20,870,713 20,668,547 19,403,636 7.7%
Security Wages & benefits without OPEB 2,812,363 2,743,271 2,581,161 2,846,977 2.5% Other postemployment benefits 181,770 170,512 175,523 180,193 6.6% Services 7,033,856 6,767,682 6,829,153 6,303,704 3.9% Parts & supplies 8,600 10,008 8,727 10,059 -14.1% Utilities 31,164 43,932 31,104 49,904 -29.1% Taxes, leases & other 53,366 40,429 53,366 28,131 32.0% Operating expense 10,121,118 9,775,835 9,679,033 9,418,968 3.5%
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Transit Operations Operating Expense
FY 2012 FY 2011 FY 2010 Change 2012 Bgt
Budget Projection Budget Actual vs. 2011 Proj Planning & Systems Development
Wages & benefits without OPEB Other postemployment benefits Services Parts & supplies Utilities
2,621,235 235,611 220,668 276,033
5,652
2,244,496 254,170 161,109 300,374
5,592
2,350,698 223,917 228,014 284,608
5,160
2,043,032 216,934 492,508 172,237
5,400
16.8% -7.3% 37.0% -8.1% 1.1%
Taxes, leases & other 62,386 40,963 43,275 15,299 52.3%
ADA Services
Operating expense Wages & benefits without OPEB Other postemployment benefits Services
3,421,584 609,784 58,876 25,601
3,006,703 522,911 45,538 21,625
3,135,672 547,553 55,810 23,601
2,945,411 532,452 39,899 22,491
13.8% 16.6% 29.3% 18.4%
Parts & supplies Utilities
22,513 13,258
17,461 13,181
24,513 12,960
18,904 13,785
28.9% 0.6%
Taxes, leases & other 159,981 139,069 116,831 127,070 15.0% Operating expense 890,013 759,786 781,268 754,601 17.1%
Operations Wages & benefits without OPEB 271,331 261,731 258,361 262,103 3.7% Administration Other postemployment benefits 27,948 28,112 27,921 24,545 -0.6%
Services 115,150 5,402 15,591 28,002 2031.5% Parts & supplies 177,472 1,285 2,781 845 13707.4% Utilities 900 867 900 1,280 3.8% Taxes, leases & other 30,770 26,986 29,970 20,645 14.0% Operating expense 623,571 324,383 335,525 337,420 92.2%
(Totals may not sum due to rounding)
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Engineering and New Systems
Operational Overview: Engineering and New Systems designs, engineers, and constructs the rail expansion and capital projects of the system. The operating budget includes only those activities not specifically charged to a capital project grant. Capital projects are typically funded from capital grants.
New Systems Operating is responsible for the design and engineering of emerging transit technologies including:
Capital Projects manages the design and construction of projects that repair, upgrade or expand the MetroLink and MetroBus facilities.
Project Controls tracks and monitors project schedules and budgets and provides quality assurance. All project documents are maintained within this department.
Arts in Transit creates customer-friendly, aesthetically-appealing, community-oriented environments at transit properties and integrates artists into the construction design process of new properties and projects.
Real Estate acquires land for transit projects, negotiates leases from public and private property owners, and leases Metro property to outside interests.
Engineering & New Systems Development: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
New Systems Operating:
Fare collection infrastructure installed
Complete construction of East Riverfront interlocking
Award contract for Eads Bridge Rehabilitation
Enhance safety measures at MetroLink crossings
Feb 2012 NA NA Nov 2011 NA NA Sep 2011 NA NA Feb 2012 NA NA
NA
NA
NA
NA Real Estate:
Metro leases accounts receivables current (30 days or less)
Metro leases accounts payable - current 85% 80% NA 100% 100% 100%
75% 100%
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Engineering and New Systems Operating Expense
Change FY 2012 FY 2011 FY 2010 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
Engineering & Wages & benefits without OPEB $ 1,277,427 $ 1,267,487 1,287,644$ $ 1,349,094 0.8% New Systems Other postemployment benefits 171,714 120,061 124,975 193,535 43.0%
Services 291,516 2,499,710 137,498 1,228,680 -88.3% Fuel & lubrications 1,000 - - - na Parts & supplies 40,367 26,996 38,606 20,220 49.5% Casualty & liability 35,000 92,450 - 124,999 -62.1% Utilities 84,339 23,504 9,300 12,029 258.8% Taxes, leases & other 95,095 56,164 50,021 50,080 69.3% Operating expense $ 1,996,458 $ 4,086,372 1,648,045$ $ 2,978,636 -51.1%
New Systems Wages & benefits without OPEB 1,013,229 1,176,590 1,153,399 1,258,326 -13.9% Other postemployment benefits 153,684 115,198 118,596 173,830 33.4% Services 271,416 2,464,515 50,992 1,226,544 -89.0% Fuel & lubrications 1,000 - - - na Parts & supplies 38,240 25,145 36,434 17,824 52.1% Casualty & liability 35,000 8,391 - - 317.1% Utilities 82,119 21,802 8,040 10,213 276.7% Taxes, leases & other 82,558 46,723 43,485 32,389 76.7% Operating expense 1,677,247 3,858,364 1,410,945 2,719,127 -56.5%
Real Estate Wages & benefits without OPEB 197,219 24,195 71,418 21,405 715.1% Other postemployment benefits 1,906 251 - 2,726 660.3% Services 20,000 19,026 50,000 29,488 5.1% Parts & supplies - 368 - 1,504 -100.0% Utilities 900 875 - 1,074 2.9% Taxes, leases & other 7,125 5,651 1,125 3,901 26.1% Operating expense 227,150 50,365 122,543 60,099 351.0%
Arts In Transit Wages & benefits without OPEB 66,979 66,702 62,827 69,363 0.4% Other postemployment benefits 16,123 4,612 6,379 16,979 249.6% Services 100 16,169 36,507 7,418 -99.4% Parts & supplies 2,127 - 2,172 892 na Utilities 1,320 828 1,260 741 59.5% Taxes, leases & other 5,412 3,790 5,412 643 42.8% Operating expense 92,060 93,584 114,557 96,035 -1.6%
Cross County Services na Casualty & liability - 84,059 - 124,999 -100.0% Taxes, leases & other - - - 13,147 na Operating expense - 84,059 - 103,375 -100.0%
97
Human Resources
Operational Overview: The Human Resources Division provides human resources services in the areas of talent acquisition and management, compensation and benefits, labor relations, staff training and development. The Human Resources Division also provides coaching and consulting in the areas of organizational effectiveness and workforce diversity. The division endeavors to provide these services and the pursuit of excellence in all employee-oriented programs, while influencing positive management-workforce relationships.
Human Resources Management includes the staff of the Vice President of Human Resources, workforce planning, talent management, compensation, human resources data maintenance, and the four specialty areas that follow.
Benefits develops and administers employee benefit plans for both active employees and retirees. The primary benefits include medical insurance, pension, life insurance, 401(k), and health and welfare programs. Current period cost of medical, dental, and life insurance benefits of active retirees are recorded as a responsibility of the Benefits Department. However, other retiree costs including accrued OPEB costs are allocated to other cost centers.
Labor Relations maintains relationships with bargaining units, negotiates labor contracts, manages grievance processes, and maintains data unique to union personnel.
Training and Organizational Development provides staff development programs that include leadership development, supervisory training, succession planning and employee relations coaching.
Workforce Diversity and EEO is responsible for ensuring a diverse workforce in a safe and discrimination/harassment free environment by: maintaining compliance with employment laws and government regulations; providing management and employee training; and developing EEO policies and procedures.
Human Resources: Performance Indicators FY 2012 FY 2011 FY 2010
Target Projection Target Actual Benefits:
Annual analysis of employer/employee medical & dental cost ratio Sep 2011 Yes Yes Yes
Annual evaluation of health & welfare plans to explore “family-oriented” options Sep 2011 Yes Yes Yes
Continuously review retiree programs to reduce Metro’s costs where government subsidized programs are available Sep 2011 Yes Yes Yes
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Human Resources: Performance Indicators FY 2012 FY 2011 FY 2010
Target Projection Target Target Labor Relations:
Develop a hiring panel consisting of HR, union leadership, and operations to Mar participate in candidate interviews 2012 Yes Yes Yes
Plan and sponsor annual career fair with ATU and IBEW leadership to attract Aug experienced candidates 2012 Yes Yes Yes
Training and Organizational Development: Conduct an annual training needs Jun
assessment 2012 Yes Yes Yes Develop an in-house “train the trainer”
program to reduce cost of hiring external Aug trainers 2012 Yes Yes Yes
Workforce Diversity and EEO: Continuously educate managers and
supervisors on EEO laws and guidelines Provide bi-monthly on-site training to
managers and supervisors on creating a work environment that is free of harassment and discrimination
Human Resources Management: Develop (salaried) compensation programs
that reward performance that meets or exceeds the Agency’s goals and objectives
Conduct tri-annual market review and make appropriate salary structure adjustments to maintain market competitive pay rates
Annual review of application and on-boarding process to identify improvements
May 2012 Yes Yes Yes
June 2012 Yes Yes Yes
Aug 2011 Yes Yes Yes
Sep 2011 NA NA NA
Nov 2011 Yes Yes Yes
99
Human Resources Operating Expense
Change FY 2012 FY 2011 FY 2010 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
Human Wages & benefits without OPEB $ 8,949,660 8,827,686$ 9,425,754$ $ 8,278,398 1.4% Resources Other postemployment benefits 150,050 174,885 204,251 192,943 -14.2%
Services 1,178,393 729,926 874,238 604,869 61.4% Parts & supplies 32,942 27,183 18,484 18,816 21.2% Utilities 3,744 10,698 2,940 1,856 -65.0% Taxes, leases & other 167,182 161,584 159,737 55,850 3.5% Operating expense $ 10,481,970 9,931,962$ 10,685,403$ $ 9,152,731 5.5%
Benefits Wages & benefits without OPEB 7,949,100 7,975,314 8,481,570 7,556,618 -0.3% Other postemployment benefits 48,611 44,085 52,209 16,035 10.3% Services 609,536 337,675 272,667 276,528 80.5% Parts & supplies 11,500 14,227 7,200 8,033 -19.2% Utilities 1,524 723 840 690 110.8% Taxes, leases & other 24,745 21,550 23,720 16,733 14.8% Operating expense 8,645,016 8,393,574 8,838,206 7,874,636 3.0%
Labor Wages & benefits without OPEB 161,369 126,089 153,870 111,640 28.0% Relations Other postemployment benefits 57,932 31,248 59,151 83,381 85.4%
Services 332,357 210,953 382,257 190,113 57.6% Parts & supplies 2,700 455 2,548 234 493.1% Utilities 420 8,321 420 - -95.0% Taxes, leases & other 4,100 2,469 4,100 3 66.1% Operating expense 558,878 379,535 602,346 385,370 47.3%
Training & Wages & benefits without OPEB - 33 - 47,222 na Organizational Other postemployment benefits - - - 4,840 na Development Services 25,000 - - - na
Parts & supplies 8,400 1,133 3,400 238 641.2% Taxes, leases & other 69,200 69,200 69,200 3 0.0% Operating expense 102,600 70,366 72,600 52,303 45.8%
Workforce Wages & benefits without OPEB 99,132 93,343 94,858 95,346 6.2% Diversity Other postemployment benefits 9,816 10,239 9,904 10,662 -4.1% & EEO Services 10,750 4,372 10,650 5,495 145.9%
Parts & supplies 3,050 1,721 2,609 1,878 77.2% Utilities 900 1,128 840 766 -20.2% Taxes, leases & other 16,450 7,616 15,530 4,713 116.0% Operating expense 140,097 118,420 134,391 118,861 18.3%
Human Wages & benefits without OPEB 740,059 632,907 695,455 467,572 16.9% Resources Other postemployment benefits 33,692 89,314 82,987 78,025 -62.3% Management Services 200,750 176,926 208,665 132,732 13.5%
Parts & supplies 7,292 9,646 2,727 8,432 -24.4% Utilities 900 526 840 400 71.0% Taxes, leases & other 52,687 60,749 47,187 34,398 -13.3% Operating expense 1,035,379 970,068 1,037,861 721,559 6.7%
(Totals may not sum due to rounding)
100
Procurement, Inventory Management & Supplier Diversity
Operational Overview: The Procurement, Inventory Management, and Supplier Diversity Division consists of the following units that are responsible for delivering on a timely basis the best value product or service, while maintaining the public’s trust and fulfilling public policy goals.
Inventory Management is responsible for managing and safeguarding Metro’s inventory of repair parts and supplies required for efficient day-to-day operations. The department also interprets maintenance and operations plans and forecasts materials requirements to support the needs of the organization.
Procurement is responsible for purchasing and/or contracting for all equipment, goods, and services Metro requires for operations and expansion. The department is also responsible for ensuring compliance with all federal, state, and local laws and regulations and Metro Board policy requirements relating to procurement.
Supplier Diversity is responsible for administering Metro’s Disadvantaged Business Enterprise program in accordance with the Code of Federal Regulations Chapter 49 Part 26. The department is also responsible for achieving the maximum possible Disadvantaged Business Enterprise participation on Metro contracts.
Procurement Administration provides overall management of the procurement, inventory management, and supplier diversity functions.
Procurement, Inventory Management & Supplier Diversity: Performance Indicators
FY 2012 FY 2011 FY 2010 Target Projection Target Actual
Inventory Management: Accuracy of bus parts inventory 98.0% 98.0% 98.0% 97.3% Accuracy of rail parts inventory 96.0% 95.0% 96.0% 95.5% Bus parts inventory turnover 3.00 2.90 2.50 2.94 Rail parts inventory turnover 0.75 0.75 1.00 0.68
Procurement: Percent of purchases competitively sourced 90.0% 93.0% 90.0% 95.3%
Supplier Diversity: DBE annual participation rate that meets or exceeds FTA annual goal 11.0% 12.0% 11.0% 11.7%
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Procurement, Inventory Management & Supplier Diversity Operating Expense
Change FY 2012 FY 2011 FY 2010 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
Procurement, Wages & benefits without OPEB $ 3,722,661 3,473,269$ 3,549,339$ $ 3,520,684 7.2% Inventory Other postemployment benefits 342,878 340,678 343,491 323,294 0.6% Management Services 88,500 22,397 42,655 45,894 295.1% & Supplier Parts & supplies 345,662 329,914 408,986 498,508 4.8% Diversity Utilities 5,028 4,122 3,528 4,622 22.0%
Taxes, leases & other 80,299 81,478 80,404 20,529 -1.4% Operating expense $ 4,585,027 4,251,857$ 4,428,403$ $ 4,413,532 7.8%
Inventory Wages & benefits without OPEB 2,339,150 2,248,390 2,217,371 2,242,869 4.0% Management Other postemployment benefits 216,095 216,004 213,117 230,955 0.0%
Services 20,000 7,045 20,433 37,081 183.9% Parts & supplies 337,663 321,349 399,853 488,226 5.1% Utilities 3,504 2,542 2,472 2,603 37.8% Taxes, leases & other 15,278 9,592 10,733 4,441 59.3% Operating expense 2,931,689 2,804,922 2,863,980 3,006,174 4.5%
Procurement Wages & benefits without OPEB 907,901 767,348 875,730 770,899 18.3% Other postemployment benefits 81,456 78,160 84,297 41,940 4.2% Services 62,000 9,617 10,000 6,953 544.7% Parts & supplies - - - 291 na Utilities - 139 - 57 na Taxes, leases & other - 1,052 - 2,826 na Operating expense 1,051,357 856,315 970,028 822,965 22.8%
Supplier Wages & benefits without OPEB 178,749 164,121 170,451 168,440 8.9% Diversity Other postemployment benefits 15,942 16,388 16,222 16,978 -2.7%
Services - 70 - 407 na Parts & supplies - 2,510 634 1,726 -100.0% Utilities 624 548 420 1,023 13.9% Taxes, leases & other 42,590 42,879 42,590 9,145 -0.7% Operating expense 237,905 226,515 230,318 197,719 5.0%
Procurement Wages & benefits without OPEB 296,861 293,410 285,786 338,477 1.2% Administration Other postemployment benefits 29,386 30,125 29,855 33,422 -2.5%
Services 6,500 5,665 12,221 1,453 14.7% Parts & supplies 7,999 6,055 8,499 8,265 32.1% Utilities 900 894 636 940 0.7% Taxes, leases & other 22,431 27,955 27,081 4,117 -19.8% Operating expense 364,077 364,104 364,078 386,674 0.0%
(Totals may not sum due to rounding)
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Finance
Operational Overview: Finance manages risk, collects and protects passenger revenue collections, and maintains financial integrity of financial plans and records:
Risk Management and Safety is responsible for the Agency-wide self insurance and insurance programs as well as the administration of workers’ compensation, property and auto liability claims. The department investigates accidents and oversees all elements of employee and facility safety, identifies hazards and develops recommendations to reduce or eliminate problems. The department administers the federal drug and alcohol program including random testing and accident investigation. The department also coordinates emergency response planning with federal, state and local authorities and provides training for local emergency first responders. Finally, it is also responsible for the review of contracts and agreements and oversees contractor safety programs.
Treasury Services is responsible for cash management including cash receipts, disbursements, banking relations, investments and commodities hedging programs. The department is responsible for debt and structured lease administration and financial disclosures. The department works closely with the Chief Financial Officer structuring short-term and long-term financing.
Passenger Revenue is responsible for the overall management and maintenance of fare collection and bus headsign equipment. The department is responsible for the controls surrounding the accounting and handling of bus and light rail transit passenger fares. The department is responsible for the bus pass distribution, lock box program, and manages the MetroLink special-event ticketing program. The department is responsible for timely and accurate revenue reporting.
Accounting and Operating Budget is responsible for coordinating, planning, and reporting on the financial activities of Metro. The department sets financial policies, and oversees the activities of the Accounting, Budgeting, Payroll and Accounts Payable sections. The department coordinates the activities of the external auditor, and is responsible for all external financial reporting. The department provides analytical support to management and prepares detailed indicators reports measuring the performance of the Agency.
Capital Budgets and Grants is responsible for the development and administration of all federal, state and local grants. The department is responsible for the coordination of all sub-recipient grant relations. The department is responsible for coordinating the development and ranking of internal grant requests. The department coordinates grant applications with federal, state and local authorities, as well as the municipal planning organization.
Finance Administration is responsible for overall management of all financial functions.
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Finance: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
Risk Management: Lost work days due to employee injury Employee injuries
MetroBus preventable accidents per 100,000 miles
Call-A-Ride preventable accidents per 100,000 miles
Passenger injuries per 100,000 boardings Liability & WC subrogation recoveries
1,916 160
0.75
0.95 0.95
$487,732
2250 1,500 190 175
0.72 0.75
0.93 0.95 1.0 1.1
$459,000 $427,000
1,942 165
0.71
1.01 0.97
$487,732 Treasury:
Percent of months in which: Yield on working capital funds exceed
90-day T-Bill by five basis points Yield on longer term funds exceed monthly 180-day T-Bill by five basis
points Treasury Module closed within three
working days after month end All EFTs timely made with no errors Positive pay issue files transmitted in a
timely manner Monthly Treasurer’s Report completed
before Board deadline
100%
100%
100% 100%
95%
100%
100% 100%
100% 100%
83% 100% 100% 100%
90% 95%
100% 100%
100%
100%
100% 100%
90%
100% Passenger Revenue:
Percent of TVM refund claims processed within three days of receipt Percent of special events staffed with ticket
sales where TVMs are unable to handle demand
Percent of pass/ticket distributions to third party vendors meeting deadline
Percent of month-end journal entries meeting closing schedule Percent of working fund balances
reconciled with general ledger Number of farebox revenue audits
performed
100%
100%
100%
100%
100%
12
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
12 12
100%
100%
100%
100%
100%
11
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Finance Operating Expense
Change FY 2012 FY 2011 FY 2010 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
Finance Wages & benefits without OPEB $ 6,503,973 5,592,974$ 6,221,537$ $ 5,630,427 16.3% Other postemployment benefits 592,481 556,176 598,080 519,267 6.5% Services 3,276,594 3,399,561 4,196,494 2,070,404 -3.6% Fuel & lubrications (1,000) - - - na Parts & supplies 774,246 638,860 741,475 686,436 21.2% Casualty & liability 4,763,754 5,064,465 5,131,172 4,707,085 -5.9% Utilities 91,596 50,684 112,876 57,256 80.7% Taxes, leases & other 922,938 694,321 725,952 600,409 32.9% Agency fees 1,800,000 1,500,000 1,500,000 1,400,000 20.0% Operating expense $ 18,724,582 17,497,041$ 19,227,586$ $ 15,671,284 7.0%
Risk Wages & benefits without OPEB 1,757,420 1,510,103 1,658,664 1,469,274 16.4% Management Other postemployment benefits 151,294 128,625 151,371 111,866 17.6% & Safety Services 819,582 816,998 747,743 (70,190) 0.3% Claims Parts & supplies 248,595 193,468 197,684 132,905 28.5% & Safety Casualty & liability 4,763,754 5,064,465 5,131,172 4,707,085 -5.9%
Utilities 85,116 44,006 107,080 49,784 93.4% Taxes, leases & other 437,036 298,093 274,925 250,922 46.6% Operating expense 8,262,798 8,055,758 8,268,638 6,651,645 2.6%
Treasury Wages & benefits without OPEB 225,206 90,382 235,652 236,749 149.2% Other postemployment benefits 22,633 22,697 25,387 20,310 -0.3% Services 1,269,000 1,561,233 2,489,970 1,203,688 -18.7% Fuel & lubrications (1,000) - - - na Parts & supplies 2,000 510 524 195 292.2% Taxes, leases & other 14,900 8,664 7,395 12,561 72.0% Agency fees 1,800,000 1,500,000 1,500,000 1,400,000 20.0% Operating expense 3,332,740 3,183,486 4,258,928 2,873,503 4.7%
Passenger Wages & benefits without OPEB 2,138,817 1,957,936 2,059,693 1,947,502 9.2% Revenue Other postemployment benefits 192,257 194,899 194,675 188,369 -1.4%
Services 973,321 875,055 837,091 781,173 11.2% Parts & supplies 495,575 403,793 505,571 504,698 22.7% Utilities 4,956 5,760 4,956 7,473 -14.0% Taxes, leases & other 353,077 311,736 353,077 298,048 13.3% Operating expense 4,158,004 3,749,178 3,955,064 3,727,263 10.9%
Controller's Wages & benefits without OPEB 1,645,086 1,335,804 1,530,740 1,360,411 23.2% Group Other postemployment benefits 151,602 144,394 149,491 138,225 5.0%
Services 23,441 93,056 37,500 129,520 -74.8% Parts & supplies 20,050 22,753 28,170 31,309 -11.9% Taxes, leases & other 18,570 19,421 19,200 19,757 -4.4% Operating expense 1,859,373 1,615,428 1,765,101 1,679,222 15.1%
Program Wages & benefits without OPEB 363,848 329,306 346,580 307,926 10.5% Development Other postemployment benefits 34,074 32,071 34,424 30,079 6.2% & Grants Services 2,350 16,386 20,350 17,428 -85.7% Department Parts & supplies 5,950 3,729 6,950 3,768 59.6%
Taxes, leases & other 83,530 16,727 30,530 13,332 399.4% Operating expense 489,752 398,219 438,833 372,533 23.0%
Finance Wages & benefits without OPEB 373,595 369,443 390,209 308,565 1.1% Administration Other postemployment benefits 40,620 33,490 42,732 30,418 21.3%
Services 188,900 36,833 63,840 8,784 412.8% Parts & supplies 2,075 14,608 2,575 13,560 -85.8% Utilities 900 919 840 - -2.0% Taxes, leases & other 15,825 39,680 40,825 5,790 -60.1% Operating expense 621,916 494,972 541,022 367,117 25.6%
(Totals may not sum due to rounding)
105
Information Technology
Operational Overview: Information Technology oversees, plans, directs, and coordinates the efforts of all information technology activities of the Agency.
Information Technology is responsible for developing, operating, and maintaining information and telecommunications systems; designing, programming, and purchasing software that supports all business processes within the company; providing help-desk support for computer-dependent employees; designing and maintaining both internet and intranet websites; supporting customers, employees, and the general public.
Office Services is responsible for in-house publishing, mail delivery services, copying services, off-site record retention and quality assurance testing.
Information Technology: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
System uptime 98.7% 99.7% 98.7% 99.6% Quality of customer support per customer
survey 3.2 3.1 3.2 3.1 Applications meet business needs per customer survey 3.1 3.0 3.1 3.0 Information Technology personnel turnover < 10.0% 4.7% < 10.0% 2.4% Complete Oracle 12 upgrade on time and
within budget Yes Yes Yes NA
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Information Technology Operating Expense
Change FY 2012 FY 2010FY 2011 2012 Bgt Budget Projection Budget Actual vs. 2011 Proj
Information Wages & benefits without OPEB 4,026,426$ 3,688,370$ 3,812,336$ 3,672,000$ 9.2% Technology Other postemployment benefits 416,175 396,579 394,583 373,674 4.9%
Services 1,285,829 1,384,226 1,491,451 1,688,383 -7.1% Parts & supplies 330,316 279,108 299,216 250,733 18.3% Utilities 368,692 349,131 370,004 375,241 5.6% Taxes, leases & other 149,406 140,989 150,996 72,827 6.0% Operating expense 6,576,845$ 6,238,404$ 6,518,585$ 6,432,857$ 5.4%
(Totals may not sum due to rounding)
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Communications & Community Relations
Operational Overview: Communications & Community Relations is responsible for the Agency’s contact with external audiences through the news media to the general public.
Communications & Community Relations employs a number of methods to promote Agency services and achievements to both external and internal audiences. Those methods include the use of media releases, media coordination, internal bulletins and reports, special events, special community reports, speaker bureaus, an employee Ambassador Program, and Twitter and Facebook social media. This department reports to the Executive Services office of Government Affairs.
Communications & Community Relations: Performance Indicators FY 2012 FY 2011 FY 2010
Target Projection Target Actual Total number of favorable/neutral (traditional) media reports 1,350 1,300 1,350 1,300 Percent of favorable/neutral media reports 74.0% 72.0% 74.0% 73.0% Estimated dollar value of favorable/ neutral media exposures (in millions) $3.0 $2.5 $4.0 $3.5 Number of Speakers Bureau engagements
and facility tours 120 115 100 170 Number of Agency and public events
created and/or supported 40 30 36 50 Estimated number of recipients of
communications with general public through reports, newsletters, mailings, and other traditional media 115,000 95,000 75,000 55,000 Number of communications distributed to employees through email, newsletters, and other materials 350 300 300 250 Published Social Media (blog posts, Twitter/Facebook/YouTube/Flickr updates) 1,500 1,300 1,000 800
Blog visits/YouTube views 60,000 50,000 43,000 35,000 Twitter followers/Facebook fans 4,000 3,000 1,500 925
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Communications & Community Relations Operating Expense
FY 2012 FY 2010 Budget Projection Budget Actual
FY 2011 Change 2012 Bgt
vs. 2011 Proj
Communications & Community Relations
Wages & benefits without OPEB Other postemployment benefits Services Parts & supplies Utilities Taxes, leases & other Operating expense
441,554$ 390,595$ 374,456$ 344,369$ 41,420 41,025 37,723 37,352
159,000 58,882 127,560 129,599 30,500 33,697 49,000 32,706
3,120 2,051 2,940 2,360 28,200 27,605 22,440 21,845
703,794$ 553,855$ 614,119$ 568,231$
13.0% 1.0%
170.0% -9.5% 52.1%
2.2% 27.1%
(Totals may not sum due to rounding)
109
Marketing
Operational Overview: Marketing is responsible for overseeing and assisting with marketing plans for all of Metro including Gateway Arch, Gateway Arch Parking Facility, Gateway Arch Riverfront Attractions and the St. Louis Downtown Airport.
Marketing develops and implements marketing programs, project-specific marketing, and graphic design service programs. Metro’s customers may also purchase tickets, passes and transfers at the MetroRide Store, which fall under the Marketing umbrella. The Marketing division reports to the Executive Services office of Business Development.
Marketing: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
Conduct discovery interviews with key people representing staff, partners and community stakeholders
Review current brand assets annually Review brand architecture annually Competitively bid out advertising
contract Complete program (Respect Your Ride)
to build confidence in safety and security of system
Audit the user experience by riding system routes and visiting stations
Annually review best practices of peer organizations and attend annual APTA conference
Review Metro’s existing marketing practices and partnerships annually
Quarterly Mar 2012 Mar 2012
Fall 2014
80%
Mar 2012
Dec 2011
Yes Yes Yes Yes Yes Yes
Yes Yes
Completed Aug 2010 Yes
50% 50%
Yes Yes
Yes Yes
NA NA NA
NA
NA
NA
NA
NA
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Marketing Operating Expense
Change FY 2011
Projection Projection Budget FY 2011 FY 2010
Actual 2012 Bgt
vs. 2011 Proj
Marketing Wages & benefits without OPEB 369,780$ 302,860$ 332,688$ $ 413,698 22.1% Other postemployment benefits 34,270 27,427 32,680 40,166 24.9%
Services 197,709 169,147 186,214 167,536 16.9% Parts & supplies 171,406 159,541 191,352 256,140 7.4% Utilities 4,080 3,613 4,260 2,957 12.9% Taxes, leases & other 293,209 312,202 287,809 235,936 -6.1% Operating expense 1,070,454$ 974,790$ 1,035,003$ $ 1,116,433 9.8%
(Totals may not sum due to rounding)
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Metro Transit System
Transit Improvement Plan Explanations
Major Assumptions
The three-year projection reflects known factors currently in existence to estimate net income/ (deficit) before depreciation. Deficits projected for FY2013 through FY 2015 represent the unfunded portion of OPEB obligations.
Operating Revenue
Passenger revenue for FY 2013 through FY 2015 reflects the same service levels as used in the FY 2012 budget. Passenger revenue projections also assume a 5% fare increase at the beginning of FY 2013, and ridership increases of 0.5%, 1.0% and 2.0% in FY 2013, FY 2014 and FY 2015 respectively.
TMA revenue to be received from Transit Management Association participants is expected to grow at 3.0% annually for FY 2013 through FY 2015.
Other operating revenue consists of advertising on revenue vehicles, shelters and MetroLink stations; property rental; contracted maintenance for St. Clair ATS service and the City of St. Louis fire truck maintenance; concessions; and other revenue. For FY 2013 through FY 2015, other operating revenues are expected to increase modestly at 1.4% annually. The increases are due to new bus advertising contracts implemented in FY 2011.
Operating Expense
Expenses for FY 2013 include a one-time special maintenance expense of $6.1 million for slope repair along the Illinois MetroLink tracks. This expense is offset by a grant from the State of Illinois. Other than this one-time expense impacting FY 2013, operating expenses are projected to increase at the modest rate of 3.5% annually for FY 2013 through FY 2015 when compared to the FY 2012 operating budget. These increases are primarily related to wages and benefits and fuel costs. No additional employee positions are planned from the FY 2012 budget.
Grants and Assistance
City of St. Louis ½ cent sales tax assumes 98% of the total tax collected will be allocated to operations in FY 2013 through FY 2015. For the three year period, tax receipts from the city are projected to increase 0.5% annually.
St. Louis County ½ cent sales tax assumes that the county will continue to appropriate to
112
Metro 50% of collections for FY 2013 through FY 2015. The allocation to operations is expected to continue at 98% for FY 2013 through FY 2015. Tax receipts from St. Louis County are projected to increase 2.0% annually.
City of St. Louis and St. Louis County 1/4 cent sales tax (Prop M) incorporates the regional plan for funding MetroLink. Tax receipts will be allocated, net of principal requirements, 98.0% to operations in FY 2013 through FY 2015. Principal requirements are $10.4 million annually for FY 2013 through FY2015. Prop M sales tax receipts from the City of St. Louis are projected to increase 0.5% annually, and St. Louis County Prop M sales tax receipts are projected to increase 2.0% annually for FY 2013 through FY 2015.
St. Louis County ½ cent sales tax (Prop A) assumes an allocation to operating and capital necessary to sustain current operating and capital initiatives. The operating growth is just over 3%. Prop A sales tax receipts from St. Louis County are projected to increase 2.0% annually in FY 2013 through FY 2015.
City of St. Louis ¼ changing to ½ cent sales tax (Prop M2) assumes voters in the City of St. Louis will adopt an additional ¼ cent sales tax in April 2012 with additional receipts appropriated to Metro beginning in September 2012. All City Prop M2 tax receipts will be allocated to operations at a rate of 85% for FY 2013 through FY 2015. Prop M2 sales tax receipts from the City of St. Louis are projected to increase 0.5% annually for FY 2013 through FY 2015.
Paratransit contract revenues are associated with Call-A-Ride operations primarily to Missouri Medicaid customers. These revenues are expected to increase 5% in FY 2013 and 3% in FY 2014 and FY 2015.
State of Missouri subsidy for FY 2013 is expected to remain at the same level as the FY 2012 budget. For FY 2014 and FY 2015 the local economy is expected to improve so that this subsidy is projected to return to a level similar to that of FY 2008.
St. Clair County subsidy assumes continuation of St. Clair County, Illinois MetroBus and MetroLink service at the same levels as used in the FY 2012 budget. The subsidy is expected to change at the same rate as overall operating expenses for FY 2013 through FY 2015.
Federal vehicle maintenance (Federal Formula Funds) is budgeted at $16 million for FY 2013 through FY 2015. Using these funds for operations will result in Metro deferring capital spending for vehicles. Deferring capital replacement and rehabilitation spending is extremely detrimental to our investment in assets which the FTA expects Metro to keep in good condition. Examples of projects that should be funded with 5307 money include technology and infrastructure. Most of Metro’s facilities are 20-plus years of age.
CMAQ (Congestion Mitigation and Air Quality) grants for FY 2013 through FY 2015 are planned at a nominal level of $1 million per year.
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JARC grants include planned revenues from Job Access and Reverse Commute Programs and federal monies used for non-capital projects. JARC grants are expected to be $2.6 million in FY 2013, $2.7 million in FY 2014, and $2.6 million in FY 2015.
New Freedom grants expected to be $41 thousand annually for FY 2013 through FY 2015. These will be used for funding ADA training and travel expenses.
Non-operating revenue (expense)
Investment income is projected to increase 5.0% annually for FY 2013 through FY 2015.
Interest on debt is expected to decrease from FY 2012 levels due to favorable refinancing activities and reduction in principal. For FY 2013 interest expense is projected to be $22.2 million, $20.7 million in FY 2014, and $20.3 million in FY 2015.
Deficit before depreciation
Net deficits projected for FY 2013 through FY 2015 represent annual unfunded OPEB obligations. Actual deficits may differ from these projections due to adverse economic conditions, or unexpected expenditures.
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Metro Transit System Transit Improvement Plan
Three Year Financial Summary (Dollars in thousands)
FY 2012 FY 2013 FY 2014 FY 2015 Budget Projection Change Projection Change Projection Change
Operating revenue: Passenger revenue 48,$ 523 $ 52,423 8.0% $ 52,947 1.0% $ 54,006 2.0% TMA revenue 1,565 1,612 3.0% 1,660 3.0% 1,710 3.0% Other 3,476 3,526 1.4% 3,576 1.4% 3,626 1.4%
53,564 57,560 7.5% 58,183 1.1% 59,342 2.0%
Operating expense 243,118 257,689 (b) 6.0% 260,647 1.1% 269,769 3.5%
Operating income (loss) (189,554) (200,129) (5.6)% (202,464) (1.2)% (210,427) 3.9%
Non-operating revenue (expense): Grants & assistance 200,674 214,661 7.0% 215,737 0.5% 220,497 2.2% Investment income 406 427 5.0% 448 5.0% 470 5.0% Interest on debt (22,570) (22,201) (1.6)% (20,710) (6.7)% (20,327) (1.9)% Sheltered workshopp (1,( )026) (1,042)( ) 1.5% (1,057)( ) 1.5% (1,074) ( ) 1.5% Other non-operating revenue/expense 40 42 5.0% 44 4.8% 46 4.5%
177,524 191,886 8.1% 194,462 1.3% 199,613 2.6%
Net income (deficit) before depreciation $ (12,030) (a) $ (8,243) (a) 31.5% $ (8,002) (a) 2.9% $ (10,814) (a) (35.1)%
(a) A deficit under $12 million represents the unfunded OPEB annual obligation. (b) Includes a one-time slope repair expense of $6,062,430
Totals may not sum due to rounding.
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Three Year Grants and Assistance Detail (Dollars in thousands)
FY 2012 FY 2013 FY 2014 FY 2015 Budget Projection Change Projection Change Projection Change
Local & state subsidies: Missouri subsidies: City of St. Louis 1/2 cent sales tax 16,$ 191 $ 16,272 0.5% $ 16,354 0.5% $ 16,435 0.5% City of St. Louis 1/4 cent sales tax 7,113 7,156 0.6% 7,198 0.6% 7,241 0.6% City of St. Louis Prop M2 sales tax 6,009 12,265 104.1% 14,791 20.6% 14,865 0.5% Total City of St. Louis 29,314 35,692 21.8% 38,343 7.4% 38,541 0.5% St. Louis County 1/2 cent sales tax 34,083 34,764 2.0% 35,460 2.0% 36,169 2.0% St. Louis County Prop M 1/4 cent sales tax 26,665 27,376 2.7% 28,101 2.6% 28,841 2.6% St. Louis County Prop A 1/2 cent sales tax 41,316 41,936 1.5% 43,338 3.3% 44,768 3.3% Total St. Louis County 102,063 104,076 2.0% 106,898 2.7% 109,778 2.7% Paratransit contracts 3,966 4,164 5.0% 4,289 3.0% 4,418 3.0% State of Missouri 197 197 0.0% 1,200 510.2% 1,200 0.0% Planning & demonstration reimbursement 160 160 0.0% 160 0.0% 160 0.0% Total Missouri local & state subsidies: 135,700 144,289 6.3% 150,890 4.6% 154,096 2.1%
Illinois subsidies: St. Clair County 42,098 44,621 6.0% 45,133 1.1% 46,713 3.5% State of Illinois 1,300 6,062 366.3% - NA - NA Total Illinois local & state subsidies: 43,398 50,684 16.8% 45,133 (11.0)% 46,713 3.5%
Total local & state subsidies 179,098 194,973 8.9% 196,024 0.5% 200,810 2.4%
Federal assistance: Vehicle maintenance 16,000 16,000 0.0% 16,000 0.0% 16,000 0.0% CMAQ grants* 2,919 1,000 (65.7)% 1,000 0.0% 1,000 0.0% JARC grants 2,616 2,647 1.2% 2,672 1.0% 2,646 (1.0)% New Freedom 41 41 0.0% 41 0.0% 41 0.0% Total Federal Assistance 21,577 19,688 (8.8)% 19,714 0.1% 19,687 (0.1)%
Total Grants & Assistance $ 200,674 $ 214,661 7.0% $ 215,737 0.5% $ 220,497 2.2%
*CMAQ grants will be budgeted as funding becomes available.
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Metro Transit System
Capital Revenue Assumptions FY 2012 – FY 2014_________________________ Federal Funding Safe, Accountable, Flexible and Efficient Transportation Equity Act - A Legacy for Users (SAFETEA–LU) SAFETEA-LU was signed into law on August 10, 2005 and authorized a total of $52.6 billion in guaranteed funding for Federal transit programs for FY 2005 through FY 2009. SAFETEA-LU is structured to increase investments in public transit through common sense transit solutions. The law expired September 30, 2009 but remains in effect under a series of continuing resolutions, currently authorized through September 30, 2011. The Agency’s primary funding through SAFETEA-LU is from the 5307 Urbanized Area Formula program and the Fixed Guideway Modernization program. In most cases, capital formula and fixed guideway dollars are used to fund 80% of capital projects with a 20% local match. For FY 2012 - FY 2014, Metro projects the formula capital assistance appropriation will total approximately $34 million each year. Formula funds are apportioned to urbanized areas based on population, population density, and other criteria. Fixed Guideway Modernization funds are allocated by formula to urbanized areas with exclusive or controlled rights-of-way that have been in operation for at least seven years. Metro projects Fixed Guideway assistance to total $10 million each year over this three-year period. Other programs under SAFETEA-LU include Section 5309 Capital Investment discretionary programs including Bus and Bus Facilities for bus purchases, construction of related facilities, and similar projects. In addition, several formula based regional programs have been established through SAFETEA-LU including the New Freedom and Job Access Reverse Commute (JARC) programs. These regional programs are formula based but are considered discretionary funds that require competitive bidding for project funding. The New Freedom program provides funding to support new public transportation services beyond those required by the Americans with Disabilities Act (ADA). Funds will be used to assist individuals with disabilities with various transportation services. JARC funds will continue to support the development and maintenance of transportation services designed to transport low-income individuals to area employment and activities and to support reverse commute projects. IDOT
3.2%
Local14.3%
Other4.2%
Federal 78.3%
(Includes .002%
MODOT Federal
Pass-thru)
Capital Cash Flow by SourceFY 2012 - FY 2014
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The FY 2012- FY 2014 capital budget also includes funding planned through FTA’s Paul S. Sarbanes Transit in the Park (TRIP) program. These funds will support the agency’s business enterprise and partnership with the Jefferson National Expansion Memorial. The TRIP program was established to address the challenge of increasing vehicle congestion in and around national parks and other federal lands. Funds included in this program will support the construction of bicycle trails at the foot of the Gateway Arch and better connectivity to the park.
The American Recovery and Reinvestment Act, 2009 (ARRA); (The Recovery Act) [Pub. L. 111-5]; was signed into law on February 17, 2009 and includes $8.4 billion for transit capital improvements. The goals of the statute include the preservation or creation of jobs and promotion of an economic recovery, as well as the investment in transportation, environmental protection and other infrastructure that will provide long-term economic benefits.
Funds appropriated through the ARRA for public transportation have been apportioned for three different programs: Transit Capital Assistance, Fixed Guideway Infrastructure Investment, and Capital Investment Grants (New/Small Starts). The Agency has received an allocation of funding through the Transit Capital Assistance program under the Section 5307 Urbanized Area Formula program for $45,792,022 [$4,130,901 was passed through to Madison County Transit District based on their reporting of regional transportation data to the National Transit Database (NTD)]. The Agency also received ARRA funds through the Fixed Guideway Infrastructure Investment/Modernization program for $1,289,449.
As a result of the ARRA funding, the Agency has obligated $42,950,570 in additional 5307 Urbanized Area Formula and 5309 Fixed Guideway Modernization funds to implement critical regional projects that have been deferred due to funding.
Department of Homeland Security Transit Security Grant Program (TSGP)
The Transit Security Grant Program is an increasingly important funding source for Metro. These funds provide for the critical hardening of Metro’s assets by enhancing various security measures. The capital budget includes projects and planned applications throughout the FY 2012 – FY 2014 period.
State Funding
Illinois Department of Transportation (IDOT)
IDOT funds are used as the local match to fund bus and non-bus capital projects located in Illinois. Metro also uses Illinois funds for a share of the cost of capital projects that benefit Illinois but are located in Missouri.
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Missouri Department of Transportation (MoDOT)
The Missouri Department of Transportation assembles a capital grant application for transportation entities within the State of Missouri. The funding is comprised of federal pass through funds as well as general revenue funds allocated directly from the state.
Local and Other Funding
Missouri Local Sales Tax Funds
Metro uses a combination of ½ cent and ¼ cent local sales tax capital funds generated by St. Louis City and County as the local match to Federal funding for bus and non-bus capital projects located in the City and County. Currently, 98% of the ½ cent sales tax receipts will be used for operating purposes for FY 2012 - FY 2014.
Funds generated by the ¼ cent sales tax approved as “Proposition M” in August 1994 are applied first to cover debt service requirements of the Cross County bond issuance. After covering debt service requirements, a portion of the remaining funds may be used as the local match to fund specified capital projects located in Missouri as approved by St. Louis City and County.
Proposition A was authorized through a referendum passed in St. Louis County on April 6, 2010. Proposition A will provide an additional ½ cent sales tax to fund public transit capital and operating needs for the St. Louis region. Prop A’s passage in the County also triggered a ¼ cent sales tax in the City of St. Louis that voters there approved in 1997.
St. Clair County (Illinois) Transit District
The St. Clair County Transit District will supply funds for specific projects related to their Transit District.
Other Financing
Other financing is made up of operating dollars used to match capital projects such as preventive maintenance of vehicles and facilities. State Infrastructure Bank (SIB) loan funds will be used to match the debt service reserve fund. From time to time, funding is also identified from sources other than local sales taxes.
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Metro Transit System Capital Expenditure Assumptions FY 2012 – FY 2014 Capital Expenditures The capital expenditure program for FY 2012 – FY 2014 encompasses a wide range of initiatives over the next three years meeting the Agency’s major capital projects and priorities. A capital project is defined as costing more than $5,000 and having a useful life of more than one year. Total capital expenditures planned for FY 2012 is $356.0 million. Total capital expenditures planned for the three-year capital program is $481.2 million. The FY 2012 – FY 2014 capital expenditure program includes both recurring and non-recurring capital expenditures. The recurring capital expenditures are those that are included in almost every budget and will have no significant impact on the operating budget. These recurring investments include bus and paratransit revenue rolling stock replacements; various security upgrades; hardware and software upgrades to support advances in technology; and preventive maintenance along the MetroLink Right-of-Way and at MetroBus stations. Federal Formula funds will be allocated to the vehicle maintenance program throughout this capital budget period. One percent of capital funds will be designated for the Arts in Transit Program as directed by Board policy. As part of the FTA 1% enhancement requirement, MetroBus and MetroLink enhancements will also be included in these recurring capital activities.
Rail Projects31.2%
Vehicles & Support
Equipment36.7%
IT & Other4.1%
Develop, Enhance,
Environment7.5%
Operating Assistance
1.6%Infrastructure, Veh Maint &
Rehab13.0%
Debt Service Reserve
5.9%
Capital Cash Flow by UseFY 2012 - FY 2014
The three-year capital budget assumes approximately $151.5 million for MetroLink infrastructure projects, $7.5 million for operating assistance, $11.8 million for safety and security enhancements, and $6.2 million for information technology improvements. Vehicles and supporting equipment needs assume $176.3 million; infrastructure and vehicle maintenance needs assume $62.5 million. In addition, the capital budget assumes $28 million for a debt service reserve fund.
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Peripheral equipment is planned to improve operating efficiencies, customer enhancements and support “smart bus” technology which includes automatic passenger counters, an automated vehicle locator system, closed circuit TV systems, additional ticket vending machines, and a farebox upgrade for “smart card” capability. These improvements will meet regional Intelligent Transportation System architecture requirements.
Various security upgrades will be met through this capital program period including additional cameras and digital recording devices on light rail vehicles, buses and paratransit vehicles and in various MetroLink tunnels and bridges. In addition, various security enhancements will be implemented at Metro bus and light rail facilities.
Upgrades at various MetroLink stations and bus stops throughout Metro’s service area will serve to address the Americans with Disabilities Act (ADA) requirements. Improvements include the upgrade of tactile warning strips at all MetroLink stations. In addition, a Travel Training program is planned to continue to support persons with disabilities in using the fixed guideway and bus systems.
Various technological advancements are planned over the next three years to support Metro’s premiere transit operations. Hardware and software upgrades will be implemented throughout the system. In addition, the agency’s Oracle based financial system is planned for upgrade through this capital budget period.
Transit enhancement projects will be undertaken to provide increased passenger amenities including upgrades to passenger shelters, signage and other station improvements. The Arts in Transit Department works closely with community groups and organizations in the development of these projects.
Major facility improvements planned over the next three years include the replacement of 15-20 year-old major components such as heating, ventilation and air conditioning systems, elevators, escalators, electrical systems and doors. In addition, MetroLink infrastructure projects over the next three years include bridge and tunnel repairs, surface and alignment of the mainline track, substations and catenary insulators.
Non-Routine Capital Expenditures
There are a number of non-recurring capital expenditures planned in the FY 2012 – FY 2014 capital budget. These non-recurring expenditures are intended to address an immediate capital need within the Agency’s transit system. These non-recurring capital expenditures may impact the operating budget after initial capitalization. Included in this budget are funds appropriated through the American Recovery and Reinvestment Act (ARRA) of 2009 to rehabilitate critical infrastructure within the system including: Eads Bridge rehabilitation, replacement of rail ties and track along the Phase I portion of the MetroLink system, and construction of an interlocking system near the UMSL MetroLink station. In addition to the shovel ready economic stimulus projects, additional major enhancements of the system infrastructure include the construction of a new bus transfer
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center in the North County portion of the service area, the construction of an interlocking system near the East Riverfront MetroLink station, the replacement of the Grand Avenue Bridge Elevator, and transit plaza enhancements at the street level below the Grand Avenue Bridge in conjunction with the City of St. Louis. These improvements total $7.2 million.
Additionally, the Agency plans to upgrade its interoperable communications system to be compliant with FCC regulations and to enable communications with first responders within the region. These improvements total $34 million. Funds in this capital program period totaling $16 million dollars annually will be allocated to the vehicle maintenance program through Federal Formula funds. During the FY 2012 – FY 2014 capital expenditure program, Federal Fixed Guideway Funds totaling $18 million dollars will be obligated for the Agency’s debt service reserve fund. One percent of capital funds will be designated for the Arts in Transit Program as directed by Board policy.
Metro is also seeking funding for several capital planning activities. Through FTA’s Notice of Funding Availability (NOFA) Metro has planned funding to develop a Transit Asset Management (TAM) database as a pilot program in response to FTA’s State of Good Repair program. The TAM database will provide a complete and up-to-date capital asset inventory and improve the level of asset management for Metro. As a part of Metro’s adopted Long Range Transit Plan, bus rapid transit (BRT) is planned to support several transit corridors. In coordination with the region’s metropolitan planning organization, Metro has planned funding during this capital budget period to support an alternatives analysis which will lead to future design and construction of the selected corridors.
The three-year capital budget of $481.2 million addresses all major elements of the Agency. Included within this plan are eight significant non-routine capital expenditures. They include:
(in millions)
Integrated Fare System Upgrade $ 25.0 Radio Replacement 33.8 MetroLink Right-of-Way Improvements 50.0 UMSL Interlocking 8.5 Union Station Tunnel Rehabilitation East Riverfront Interlocking 35.0* North County Bus Transfer Center 11.1 Bus Rapid Transit Planning 8.2
.7 Total non-routine projects $ 172.3
Funding for all programs will be derived from Federal Formula, Economic Stimulus, Fixed Guideway, Discretionary, Surface Transportation Program, Job Access and Reverse Commute, Homeland Security, Congestion Mitigation & Air Quality and New Freedom funds appropriately matched by local sources of funding. This plan is
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progressive and when effectively implemented will ensure that Metro is on target to meet the needs of the community.
* Funding to support this project is planned beyond the current FY 2012 - FY 2014 capital budget period.
Non-Routine Capital Grant Administration Agreements
In FY 2005, Metro assumed the grant administration responsibilities of the region’s JARC and New Freedom funding. The JARC funding was previously administered as a competitive grant program awarded directly to Metro. As a part of the SAFETEA-LU authorization the JARC funding was changed to a formula program. The New Freedom program is a relatively new program that was introduced in SAFETEA-LU and is also a formula program. The East-West Gateway Council of Governments (EWGCOG) was identified as the designated recipient for JARC and New Freedom funds. Funding was identified in the SAFETEA-LU authorization for the four year budget period (FY06-FY09) and remains authorized under the continuing resolution currently authorized through September 30, 2011.
EWGCOG solicits applications and recommends funding to Metro and several non-profit sub-recipients. Through an agreement with EWG, Metro is the grant administrator for the JARC and New Freedom grants which includes the non-profit agency applications. Metro applies for and administers the third-party subrecipients grant activities and ensures compliance with the federal program guidelines.
In addition to the JARC and New Freedom program, Metro is also administering a project funded under the Surface Transportation Program (STP) on behalf of the region.
While Metro is responsible for the administration of the grants and the reimbursement of expenditures generated by these partner agencies, Metro is not a direct recipient of these funds. Therefore, these projects and funds are not included in Metro’s capital improvement program. Metro serves as administrator for the following subrecipients:
(in millions) Jefferson County Community Partnership $ .2 Paraquad .1 OATS, Inc .4 Madison County Transit District .5 St. Clair County Transit District .1 Challenge Unlimited .1 Independent Transportation Network – St. Charles County .3 Total non-routine capital grant administration agreements $ 1.7
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Metro Transit System
Impact of Capital Improvements on Operating Budget Included in the capital budget is a three-year program designed to build, maintain or replace Metro’s core infrastructure critical to the operation of the system. The effect of these projects on the operating budget is as varied as the projects. The capital budget provides the funding to implement necessary improvements and upgrades to the system infrastructure as well as various expenditures for asset replacements that occur on an infrequent basis and have an expected long term useful life. The operating budget provides the funding to support everyday maintenance and resources necessary to support those maintenance efforts. This section addresses the expected operating budget impact of significant, current active capital projects or those planned to begin during the FY 2012 – FY 2014 capital program period and that directly affect the FY 2012 operating budget period.
Current and Future Rail Projects
Track, catenary, alignment, bridge, tunnel and maintenance projects generally have the effect of stabilizing maintenance activity in the operating budget by avoiding expense peaks and valleys. One very important project in this group is the Eads Bridge rehabilitation project, along the original MetroLink alignment. This project is being funded and is expected to start during FY 2012. The Eads Bridge rehabilitation project will return the bridge to a state of good repair condition and reduce operating related maintenance expenses. In addition, the capital budget plans for a significant upgrade of the Union Station MetroLink Tunnel. This project is projected to cost $35 million and is planned through FY 2015. Capital funding included in the FY 2012 – FY 2014 capital budget is $30.5 million. This tunnel has experienced significant repairs over the past three years. The $35 million capital investment in this infrastructure is expected to reduce operating expenditures related to the tunnel by 15%.
Vehicles and Supporting Equipment
Timely replacement of vehicles that have met their useful life will ensure that operating expenses remain stable. Revenue vehicles currently on order include 72 buses.
Capital expenditures are planned for upgrades to peripheral equipment including the fare collection system replacement, which is currently underway. This project is expected to improve efficiency of operations by improving equipment reliability and labor related repairs. Initially, parts will be under warranty as well. Smartcard technology will likely increase the cost of supplies as materials related to card production are higher than paper related to tickets. Customer services during the transition will also increase. Estimated first year operating cost increases may be over $1 million.
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A multi-year radio system replacement project is underway with design and planning of optimal sites for location of new radio towers being planned. This $34 million project is the result of FCC regulations requiring changes in technology and operating frequency to be in place by 2013. The radio system upgrade will incorporate Automated Vehicle Locator (AVL) technology. The addition of AVL should result in operating savings of more than $500,000 annually. If the radio project were not undertaken, the operational issues that would result from losing operating radio frequency would be unacceptable.
Transit Development - Facility, Centers, Stations, Parking Lots, Loops, Other
Planning is underway for a downtown bus transfer center and a transfer center in the North County portion of our service area. With the construction of these two new facilities there are expected operating costs to add additional positions as well as maintenance contracts and utilities. Seven other centers have been built since 2002. They include Ballas, North Broadway, Clayton, Civic Center at 14th and Spruce, Shrewsbury, Riverview and Meridian MetroBus Center. These centers permit improved transfers between bus routes in a safe and secure location. Those maintenance contracts, utilities, additional positions, and landscaping have added $160,000 annually for these facilities.
Parking lot upgrades at our five operating facilities and ADA access improvements and other service improvements at our North Hanley transit center will decrease current maintenance efforts. These projects continue the hub and spoke system Metro created nine years ago to support better transfer options for customers connecting via bus-to-bus or bus-to-rail.
Information Technology Improvements
The Oracle version 12 upgrade (Metro’s business system) will begin in the next few months and be completed during FY 2012. This upgrade will provide a number of enhancements to the system and ensures the appropriate support from the vendor. This project avoids support costs.
Long Range Capital and Operating Budget Impacts
Planning and alternative analysis for Bus Rapid Transit (BRT) is planned during the current capital budget period. As a part of long range capital planning, funding will be sought to support system improvements and equipment needs to build and operate BRT corridors. Capital and operating costs will be determined based on outcomes of the alternatives analysis and design of the BRT corridors.
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Significant Capital Improvement Projects and Operating Impacts Planned in FY 2012 – FY 2014
Capital Description Investment Annual Operating Impact
(in millions) FY $ North County Transfer Center $8.2 2014 $300,000 North Hanley Transit Center Improvements $0.5 2013 -Bus Operating Facility Parking Lot Improvements $1.0 2012 ($0.2) Radio-CAD/AVL Upgrades $33.8 2013 ($0.5) Replacement Rolling Stock $111.6 2012-2014 ($3.0)
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Metro Transit System
Federal Programming Needs FY 2012 – FY 2014 To meet the goals identified in the capital budget, appropriate federal funding must be secured to support capital programs for the planned three-year fiscal period. This section describes the planned projects and identifies the anticipated sources of funding and the fiscal year in which grant funds must be obligated. Any delay or reduction in federal, state or local funding will necessitate modifications to the capital improvements contained in this capital program.
The Safe, Accountable, Flexible and Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU), was enacted August 10, 2005 as public Law 109-59. SAFETEA-LU authorized federal surface transportation programs for highways, highway safety, and transit for FY 2005 through FY 2009. The law expired September 30, 2009 but remains in effect under a series of continuing resolutions, currently authorized through September 30, 2011.
SAFETEA-LU addresses many challenges facing the transportation system today including improving safety, reducing traffic congestion, increasing intermodal connectivity, and protecting the environment. SAFETEA-LU also promotes more efficient and effective Federal surface transportation programs by focusing on transportation issues of national significance, while giving State and local transportation decision makers more flexibility for solving transportation problems in their communities. The reauthorization of SAFETEA-LU will impact the planned program and will be key in addressing the public transportation challenges.
Several projects were authorized under SAFETEA-LU and will be requested in the upcoming reauthorization. These projects are not included in the FY2012 – FY2014 sources and uses tables that follow. The region must determine that the project is viable and make the local commitment necessary to proceed to the federal level. Federal dollars will only be available if the project survives a rigorous national competition for federal discretionary dollars. At the point that federal dollars are awarded to the project, it will become part of the capital budget.
Projects currently being requested for inclusion under SAFETEA-LU reauthorization include Metro North-South Corridor, Daniel Boone Corridor, Downtown Transfer Center, South-Side Rapid Transit and Union Station Tunnel Rehabilitation. Funding for these requested projects is not included in the capital budget at this time. East-West Gateway Council of Governments will make final decisions on funding for the corridor and extension projects.
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Metro System Transportation Improvement Plan
FY 2012 - FY 2014
Capital Cash Flow Summary
Sources of Funds FY 2012 FY 2013 FY 2014 TOTAL
Economic Stimulus Funding Federal Formula Funds - ARRA* 33,922,613 - - 33,922,613
Federal Formula Funds - New 30,370,645 31,841,107 32,159,519 94,371,271
Federal Formula Funds - Carryover 61,739,115 - - 61,739,115
Fixed Guideway Funds - New 10,169,655 10,271,352 12,428,336 32,869,343
Fixed Guideway Funds - Carryover 40,181,643 - - 40,181,643
Approved Federal Discretionary Funds** 81,632,630 1,041,427 300,276 82,974,333
Planned Federal Discretionary Funds 18,308,990 6,292,512 6,292,512 30,894,014
IDOT Funding 14,288,362 568,804 507,380 15,364,546
Missouri Local Sales Tax Capital Funding 11,977,550 - - 11,977,550
Missouri Local Prop M Sales Tax Funding 32,063,187 6,617,385 7,346,558 46,027,130
St. Clair County Transit District Funds 10,767,022 55,142 12,899 10,835,063
Other Financing 10,657,027 5,081,670 4,340,520 20,079,217
Grand Total $ 356,078,439 $ 61,769,399 $ 63,388,000 $ 481,235,838
* ARRA - The American Recovery and Reinvestment Act, 2009 ** Includes MoDOT Federal Pass-Thru Funding
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FY 2012 Capital Programs and Projects
Current and Future Rail Projects Light Rail Infrastructure Construction Program Track, Catenary, Alignment, Bridge, Tunnel, and Maintenance Projects
Operating Assistance CMAQ Funded Service Job Access/Reverse Commute Service
Vehicles and Supporting Equipment Peripheral Equipment Peripheral Support Revenue Vehicles Support Vehicles
New Development, Enhancement, Environmental Projects Bike Trail Community Development Projects Enhancement Projects Transit Development-Facility, Centers, Stations, Parking Lots, Loops, Other
Information Technology Improvements Hardware and Software Data Systems Office Equipment
23,532,179 97,908,696
121,440,875
3,148,870 1,709,278
4,858,148
25,937,082 33,857,144 65,900,149 2,073,085
127,767,460
9,352,598 719,781
5,077,069 19,713,512
34,862,960
6,062,462 106,300
6,168,762
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FY 2012 Capital Programs and Projects
Infrastructure, Vehicle Maintenance and Rehab Programs Existing Facilities - Maintenance and Rehab 1,568,225 Maintenance Equipment - Fleet, Warehouse, 960,830 Facilities, Storeroom Preventative Maintenance 20,000,000
22,529,055 Health, Safety, and Security
Health and Safety Projects 256,838 Security 9,388,946
9,645,784 Program Administration
Program Administration 805,395 805,395
Debt Service Reserve Debt Service Reserve 28,000,000
28,000,000
Grand Total 356,078,439
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FY 2012 - FY 2014 Capital Programs and Projects
Current and Future Rail Projects Light Rail Infrastructure Construction Program Track, Catenary, Alignment, Bridge, Tunnel, and Maintenance Projects
Operating Assistance CMAQ Funded Service Job Access/Reverse Commute Service
Vehicles and Supporting Equipment Peripheral Equipment Peripheral Support Revenue Vehicles Support Vehicles
New Development, Enhancement, Environmental Projects Bike Trail Community Development Projects Enhancement Projects Transit Development-Facility, Centers, Stations, Parking Lots, Loops, Other
Information Technology Improvements Hardware and Software Data Systems Office Equipment
23,532,179 128,003,441
151,535,620
3,148,870 4,392,685
7,541,555
25,937,082 33,857,144
111,632,624 4,874,148
176,300,998
9,352,598 719,781
6,032,519 19,713,512
35,818,410
6,149,837 106,300
6,256,137
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FY 2012 - FY 2014 Capital Programs and Projects
Infrastructure, Vehicle Maintenance and Rehab Programs Existing Facilities - Maintenance and Rehab 1,568,225 Maintenance Equipment - Fleet, Warehouse, 960,830 Facilities, Storeroom Preventative Maintenance 60,000,000
62,529,055 Health, Safety, and Security
Health and Safety Projects 256,838 Security 11,641,668
11,898,506 Program Administration
Program Administration 1,355,557 1,355,557
Debt Service Reserve Debt Service Reserve 28,000,000
28,000,000
Grand Total 481,235,838
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Metro System Transportation Improvement Plan FY 2012 - FY 2014
Capital Cash Flow Summary
Uses of Funds FY 2012 FY 2013 FY 2014 TOTAL
Track, Catenary, Alignment, Bridge, Tunnel, and Maintenance Projects $ 97,908,696 $ 13,866,764 $ 16,227,981 $ 128,003,441
Light Rail Infrastructure Construction Program 23,532,179 - - 23,532,179
CMAQ MetroBus Expansion* 3,148,870 - - 3,148,870
Job Access/Reverse Commute Service 1,709,278 2,082,854 600,553 4,392,685
Peripheral Equipment 25,937,082 - - 25,937,082
Peripheral Support 33,857,144 - - 33,857,144
Revenue Vehicles 65,900,149 22,954,995 22,777,480 111,632,624
Support Vehicles 2,073,085 925,238 1,875,825 4,874,148
Bike Trail 9,352,598 - - 9,352,598
Community Development Projects 719,781 - - 719,781
Enhancement Projects 5,077,069 475,548 479,902 6,032,519
Transit Development - Facility, Centers, Stations, Parking, Lots, Loops, Other 19,713,512 - - 19,713,512
Hardware and Software Data Systems 6,062,462 87,375 - 6,149,837
Office Equipment 106,300 - - 106,300
Existing Facilities - Maintenance and Rehab 1,568,225 - - 1,568,225
Preventative Maintenance 20,000,000 20,000,000 20,000,000 60,000,000
Maintenance Equipment - Fleet,Warehouse, Facilities, Storeroom 960,830 - - 960,830
Health and Safety Projects 256,838 - - 256,838
133
Metro System Transportation Improvement Plan FY 2012 - FY 2014
Capital Cash Flow Summary
Uses of Funds FY 2012 FY 2013 FY 2014 TOTAL
Security 9,388,946 1,126,361 1,126,361 11,641,668
Debt Service Reserve 28,000,000 - - 28,000,000
Program Administration 805,395 250,264 299,898 1,355,557
Grand Total $ 356,078,439 $ 61,769,399 $ 63,388,000 $ 481,235,838
* The FY 2009 CMAQ grant for MetroBus Expansion which began in FY2010 will be expended through FY2012
134
Business Enterprises The Business Enterprises division of Metro functions as stand-alone, revenue-generating and business development entities. The Business Enterprises division includes the Gateway Arch Tram ticketing and reservation systems, Gateway Arch Parking Facility, Gateway Arch Riverfront Attractions and the St. Louis Downtown Airport. Each of these companies operates independently from the Agency’s transit organization from managerial, financial and policy standpoints. The Agency’s Metro Transit System division is reimbursed for the cost of various administrative services provided to the Business Enterprises division.
Gateway Arch47.5%
Parking Facility15.8%
Riverfront Attractions
24.2%
Airport12.5%
Business EnterprisesFY 2012 Operating Revenue
The chart to the right summarizes the sources of the Business Enterprises division operating revenues. The Gateway Arch is expected to provide 47.5% of those revenues in FY 2012.
Actual 2008 Actual 2009 Actual 2010 Projected 2011 Budget 2012
Riverfront Attractions $123 $0 $0 $0 $0 Ticket center 428 472 448 439 443Airport 70 60 69 71 72Arch 448 763 597 589 536 Garage 151 134 143 145 146
-
200
400
600
800
1,000
1,200
1,400
1,600 Revenue to Executive Services
Business Enterprises
(in thousands)
Total 1,220 1,429 1,257 1,244 1,197
135
Business Enterprises
Gateway Arch
Overview:In 1962, as the construction of the Gateway Arch was beginning, National Park Service officials recognized that existing funds were insufficient to construct a tram system to carry visitors to the top of the monument. Metro proposed its first major public transaction which was for the sale of revenue bonds to finance the Gateway Arch Tram System. Since its opening in 1967, Metro has overseen the tram system operation. Today, Metro employees handle all aspects of ticketing and reservations for the monument in partnership with the National Park Service.
Strategic focus:
The Gateway Arch is a premier tourist destination in the Midwest and one of the most visited monuments in the United States. Our focus is to create a sustainable increase in visitation to the Gateway Arch, the Gateway Arch riverfront, and surrounding area through targeted marketing and capital improvements to meet the demands of our visitors. Metro is partnering with the National Park Service and other organizations to leverage and enhance the unique entertainment and educational products at the Gateway Arch Riverfront with the goal of creating a higher perceived value to our visitors. The Gateway Arch Riverfront hosts more than 2.5 million visitors each year and generates more than $200 million of direct and peripheral economic benefit for the St. Louis Region.
Attractions:Journey to the TopThe North tram load zone recalls "Fitting the Final Piece"; the South load zone area "When Riverboats Ruled."
Westward Expansion MuseumCommemorates Native Americans, Lewis and Clark, pioneers, and the American West.
Odyssey TheatreFour-story tall screen showing the giant-screen film "Lewis and Clark: Great Journey West."
Tucker Theater Also on the St. Louis Riverfront:Features the film "Monument to the Dream" recapping construction of the Arch.
Gateway Arch Parking Facility, Old Courthouse, Gateway Arch Riverboats, helicopter tours, bike rentals, Laclede's Landing MetroLink station.
Museum StoresIncludes museum gift shop and nostalgic recreation of 1870's general store.
Website:www.gatewayarch.com
400,000
600,000
800,000
1,000,000Tram Ridership
FY07 Act
FY08 Act
FY09 Act
FY10 Act
FY11 Proj
FY12 Bud
136
Gateway Arch Operating Budget Summary
Fiscal Year Ending June 30, 2012
Change FY 2012 FY 2011 FY 2010 12 Budget Budget Projection Budget Actual vs 11 Proj
Operating revenue: Arch ticket sales 5,414,352$ 5,382,919$ 5,434,629$ $ 5,333,027 0.6% Site rental and other revenues 47,290 46,313 52,763 56,554 2.1%
5,461,642 5,429,232 5,487,392 5,389,581 0.6%
Operating expense: Wages & benefits excluding OPEB 1,601,876 1,506,231 1,587,506 1,239,281 6.3% Other postemployment benefits (OPEB) 68,255 63,048 64,693 65,130 8.3% Services 866,372 791,863 822,058 868,298 9.4% Materials and supplies 235,953 212,550 200,924 167,658 11.0% Utilities 91,634 96,690 89,456 89,054 -5.2% Casualty & liability 39,624 33,033 43,354 37,991 20.0% Other expenses 1,169,694 1,173,823 1,181,252 1,295,163 -0.4%
4,073,408 3,877,236 3,989,244 3,762,575 5.1%
Operating income (loss) 1,388,234 1,551,996 1,498,148 1,627,006 -10.6%
Non-operating revenue (expense): Investment income Gain (loss) on disposal of federal assets Contributions to outside entities
Total non-operating revenue (expense)
23,100 -
(58,600) (35,500)
19,952 -
(263,380) (243,428)
27,000 -
(23,400) 3,600
13,974 (210,243) (292,216) (488,486)
15.8%
-77.8%
Net income before depreciation 1,352,734 1,308,568 1,501,748 1,138,520 3.4%
Depreciation & amortization (540,300) (384,063) (404,061) (392,188) 40.7%
Net income (loss) $ 812,434 $ 924,505 $ 1,097,687 $ 746,332 -12.1%
137
Business Enterprises Gateway Arch - Budget Assumptions _ In FY 2012, the Gateway Arch and its partners will focus on the future of the Jefferson National Expansion Memorial and the implementation of the City Arch River 2015 project. The role of Bi-State Development Agency in this process will be further defined as the winning design from the international design competition is molded into a feasible, regionally beneficial reality. While the major infrastructure redesign of the Arch grounds and surrounding areas takes center stage, the Gateway Arch will be busy implementing several smaller-scale upgrades in FY 2012. Several Arch Visitor Center projects, including a new Ticket Center, facility-wide activity time communication monitors, and redesigned security entrances will be completed by mid-Summer. These new amenities and services will greatly improve visitor flow through the facility, decreasing queuing times and increasing the overall efficiency of the guest experience. The Gateway Arch will also be focused on improving its ticketing and reservations software to seamlessly integrate these enhancements. A new website with an updated e-Ticketing engine as well as new cross-selling functionality at all points of sale will greatly leverage these improvements. These upgrades will create a simpler way for guests to purchase tickets to multiple activities, creating additional perceived value while increasing per visit revenue. Revenue
Adult ticket sales
78.8%
Child ticket sales
20.3%
Site rental and other
0.9%
Gateway ArchFY 2012 Operating Revenue
Arch ticket sales in FY 2012 result from a budgeted 848,992 tram passengers which is essentially at the same level as the FY 2011 projection. The current tram fares are $7.00 for adults and $5.00 for children. Site rental and other revenues represent tram rental fees for receptions held at the Gateway Arch.
138
Expense Wages and benefits excluding OPEB are 6.3% higher than the FY 2011 projection. Efficient part-time staffing management during the FY 2011 closure of one tram for upgrades allowed for a significant reduction in part-time staffing levels. Other postemployment benefits (OPEB) include $68,255 for retiree benefits expense related to the implementation of GASB Statement No. 43 in FY 2008. Services increased 9.4% over the FY 2011 projection primarily due to increases in National Park Service maintenance mechanics services and credit card fees as a result of increased bank fees and credit card usage. Services include the following (in thousands):
Mechanics employed by the National Park Service to service and repair the Gateway Arch transportation system $ 625 Credit card fees, armored car service for cash handling, banking services 150 Legal 10 Internet web site maintenance and development 30
Consultant fees 12 Other 39
$ 866
Materials and supplies are comprised mostly of repair parts and materials that the National Park Service purchases for the Gateway Arch Tram System. An increase of 11.0% over the FY 2011 projection is anticipated for repairs to aging museum exhibits.
Wages & Benefits &
OPEB41.0%
Materials & supplies
5.8%Utilities2.2%
Casualty & liability
1.0%
Services21.3%
Management fee to Agency
13.2%
Other15.5%
Gateway ArchFY 2012 Operating Expense
Utilities are primarily electricity costs which are budgeted at $87,646 of the overall $91,634 utility budget in FY 2012.
139
Casualty and liability cost is budgeted in FY 2012 at 8.6% below the FY 2011 budget but 20.0% higher than the FY 2011 projection. The FY 2011 projection reflects favorable claims history and FY 2012 is budgeted conservatively. Other expense includes the following (in thousands): Management fee to Metro $ 536 Advertising and promotion 575 Travel, training, lease expense and other 59 $ 1,170 Other expense is budgeted in FY 2012 to be similar to the FY 2011 projection and the FY 2011 budget. Contributions to outside entities for FY 2012 include contributions to the National Park Service for a canine bomb unit vehicle, Old Courthouse signage, and Arch campus “Wayfinding” signage. In FY 2011, these contributions were for the Arch visitor center and lobby renovation and the Arch parking facility crosswalk. Income Net income before depreciation in FY 2012 is 3.4% higher than the FY 2011 projection. The Gateway Arch must generate income which is held in the Jefferson National Expansion Memorial Capital Fund to fund capital improvements. The capital budget for FY 2012 is $955,575. Actual
2008Actual 2009
Actual 2010
Projected 2011
Budget 2012
Operating revenue 4,616 6,387 5390 5,429 5,462 Net income before
depreciation (317) 2,164 1139 1,309 1,353
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Gateway ArchRevenue & Net Income
In thousands
140
Goal #1: Deliver a high quality experience that is recognized by its customers, industry peers, and regional stakeholders for its excellence
Strategy Action Steps Performance Measurements
Objective 1B: Improve service quality Understand our customers’ expectations and take steps to exceed them
• Update the Arch Transportation System to a Programmable Logic Controller (PLC) system. Install new glass doors and additional monitoring systems • Implement hoist system
improvements
• Increase reliability of Arch Transportation System • Enhance the customer experience of
the product • Enable dynamic operational
adjustments to limit congestion and increase efficiency
Goal #3: Ensure cost-effective and efficient use of resources and aggressively pursue funding partnerships to supplement existing resources
Objective 3C: Implement revenue enhancement strategies Increase ticket sales • Increase revenue opportunities
through advanced ticket sales, by expanding existing partnerships and by establishing new relationships for ticket sales
• Develop loyalty programs with tour and travel companies • Continue partnership with the St.
Louis Convention and Visitors Commission, Missouri History Museum and others through ARES • Continue to improve online sales
functionality and promotion Objective 3D: Identify and implement shared services programs with other entities
where beneficial Work closely with local • Maximize public relations and • Partner with the National Park communities and public awareness opportunities Service to coordinate and promote organizations to ensure the on-site activities success of all as we are a • Renew Cooperative Agreement with regional cooperative partner NPS that supports regional • Coordinate financial resources and economic development strategic partnerships in preparation
for implementation of JNEM Design Competition
Objective 3E: Deliver quality capital projects on time and within budget Aggressively pursue and • As determined from guest • Design, construct, and install Arch complete capital projects research and in conjunction with
the National Park Service General Management Plan, address key guest experience issues through capital investments
lobby exhibits to improve the guest experience • Design, fabricate, and construct the
rehabilitation of the Gateway Arch Ticket Center • Design and install activity times
communication system in the Gateway Arch Visitor Center
141
Gateway Arch: Performance Indicators FY 2012 FY 2011 FY 2010
Target Projection Target Actual Increase operating income ($ in thousands) Tram ridership
$1,388 848,992
$1,552 $1,498 844,489 848,094
$1,627 840,296
142
Business Enterprises
Gateway Arch FY 2012 Capital Project Summary (in thousands)
Sources of Funds:
Jefferson National Expansion Memorial Capital Improvement Fund $ 956
Total Sources of Funds $ 956
Uses of Funds:
Remote ticketing and welcome center $ 956 This project is for the design and construction of an approximately 2,000 square foot building. This building would potentially be utilized during the Arch grounds reconstruction to provide remote guest services andreconstruction to provide remote guest services and amenities, such as wayfinding, ticketing, and restrooms. The project includes all earthwork, utilities, and exterior/interior building design and construction. Outfitting the facility with furniture and fixtures is not included in this capital project.
Total Uses of Funds $ 956
143
Business Enterprises
Gateway Arch Parking Facility
Overview:
In 1983, Metro issued the bonds to build and operate the Gateway Arch Parking Facility, extending its original Cooperative Agreement with the National Park Service that began with the funding of the Arch Transportation System. Completed in 1986, the facility contains three levels of parking, the offices of Metro garage personnel and the National Park Service law enforcement and safety division which patrols the Gateway Arch grounds.
The Gateway Arch Parking Facility was built for visitors to the Gateway Arch and surrounding areas. Additionally, the facility provides a monthly parking option for employees in Laclede's Landing and the Downtown central business district. Through the St. Louis Convention and Visitors' Commission and the Laclede's Landing Merchants Association, the facility is an advertised parking location for events at the America's Center, the Edward Jones Dome and Busch Stadium. The parking facility entrance is located on the north end of the Arch campus on Washington Avenue and also has direct pedestrian access to the Gateway Arch grounds.
Strategic focus:
The goal of the Gateway Arch Parking Facility is to provide a high quality of guest services and amenities consistent with its role as the entrance to the Gateway Arch campus. Additionally, it seeks to offer a competitive alternative for parking to employees of businesses in the St. Louis downtown area.
Date of operation:Officially opened May 6, 1986
Parking spaces:1,250
Dai y vehicle transactions (FY 2010):l746
Yearly vehicle transactions (FY 2010):272,258
100,000
150,000
200,000
250,000
300,000
350,000Parking Transactions
FY07 Act
FY08 Act
FY09 Act
FY10 Act
FY11 Proj
FY12 Bud
144
Gateway Arch Parking Facility Operating Budget Summary
Fiscal Year Ending June 30, 2012
Operating revenue: Daily parking & special events Monthly parking Other revenue
$
FY 2012 Budget
1,499,578 255,000 66,410
1,820,988
FY 2011 Projection Budget
$ 1,537,054 1,514,293$ 222,069 252,012 67,838 70,712
1,826,961 1,837,017
FY 2010 Actual
1,533,162$ 221,944 34,896
1,790,002
Change 12 Budget vs 11 Proj
(2.4)%14.8%(2.1)% (0.3)%
Operating expense: Wages & benefits excluding OPEB Other postemployment benefits (OPEB) Services Materials & supplies Utilities Casualty & liability Other expenses
452,104 27,133
460,321 23,085 76,012 26,891
148,361 1,213,907
385,969 25,001
442,259 26,897 73,514 26,727
147,591 1,127,958
432,308 24,568
449,139 22,880 74,313 34,450
160,361 1,198,019
359,951 25,959
465,255 24,521 67,851 30,502
145,486 1,119,525
17.1%8.5%4.1%
(14.2)%3.4%0.6%0.5% 7.6%
Operating income (loss) 607,081 699,003 638,998 670,477 (13.2)%
Interest
Non-operating revenue (expense): Investment income Debt expense Interest expenseexpense Total non-operating revenue (expense)
4,620 (21,518) (62,275)(62,275) (79,173)
1,562 (14,767)
(113,,828)(113 828) (127,033)
11,290 (12,789) (98,,039)(98 039) (99,538)
711 (18,508)
(137,,441)(137 441) (155,237)
195.8%45.7%
(45.3)%(45.3)%(20.5)%
Net income before depreciation 527,909 571,970 539,460 515,239 (7.7)%
Depreciation & amortization (75,635) (272,594) (358,179) (411,411) (72.3)%
Net income (loss) $ 452,274 299,376$ 181,281$ 103,828$ 51.1%
145
Business Enterprises Gateway Arch Parking Facility – Budget Assumptions_ The Gateway Arch Parking Facility will have completed an upgrade to the parking facility revenue management system by the beginning of FY2012. The new system includes two key components that will benefit future profitability of the operation. The ability to accept credit cards as a form of payment is expected to increase revenues in the future. As a cash only operation, many parking customers are unable to pay at the time of exit and may elect to avoid our facility altogether. As credit cards have become the preferred method of payment for the average consumer, we have adapted our operation and look to benefit from this change. The inclusion of a self-service pay machine is anticipated to benefit the operation. As a 24-hour a day operation, the Gateway Arch Parking Facility currently requires a booth attendant to be active at all times. The cost of these positions, particularly during low visitation hours or the use of temporary employees resulting from employee turnover, can be greatly mitigated by the pay machine. In FY 2012, the Gateway Arch Parking Facility will take full advantage of these upgrades and work with its partners to determine the long term role of parking at the Jefferson National Expansion Memorial as the City Arch River 2015 Project is further refined and implemented. Revenue Daily parking and special events revenue in FY 2012 is budgeted at 265,300 transactions. The early bird customer rate is $4.00. Customers arriving after 9:00 a.m. are charged a $6.00 flat rate for a maximum of nine hours. Significant monthly fluctuations of budgeted revenues, ranging from $45,355 in the winter to $272,548 in the summer coincide with the tourist season, sports events, conventions and concerts on the Gateway Arch grounds.
Daily parking82.4%
Other3.6%
Monthly parking14.0%
Gateway Arch Parking FacilityFY 2012 Operating Revenue
Monthly parking rates are $60.00 per month. The monthly rates are very competitive in the downtown St. Louis market.
146
Other revenue in the FY 2011 budget included revenues from 14,143 customer transactions at the proposed, but never materialized, leased parking lot on Poplar Street on the south end of the Gateway Arch campus. In FY 2012, Other revenue includes internet fee revenues related to sales of All-Access Passes which include a complimentary parking pass. Expense Wages & benefits are budgeted to increase 17.1% over the FY 2011 projection primarily due to a Parking Garage Supervisor position that has remained unfilled. Services include the following (in thousands): National Park Service security $ 299 Custodial services 75 Contract maintenance 63 Temporary help 5 Money collection 14 Other 4 $ 460
Materials & supplies include the following (in thousands):
Services37.9%
Utilities6.3%
Casualty & liability
2.2%
Materials & supplies
1.9%
Other12.2%
Wages & Benefits &
OPEB39.5%
Gateway Arch Parking FacilityFY 2012 Operating Expense
Repair parts & small tools $ 15 Facility parking tickets 4 Other 4 $ 23 Utilities are budgeted in FY 2012 at 3.4% higher than the 2011 projection. The total budget for utilities is $76,012, of which $65,528 is for electricity.
Casualty and liability costs are budgeted in FY 2012 at 0.6% higher than the FY 2011 projection. Other expenses include $146,961 for management fees to Metro. Other expenses are budgeted in FY 2012 at 0.5% higher than the FY 2011 projection but 7.5% less than the FY 2011 Budget. The FY 2011 Budget included the lease expense for a proposed new parking lot which did not materialize south of the Gateway Arch grounds.
147
Income Net income before depreciation will primarily be used to make a partial principal payment on the Parking Facility Revenue Refunding Bonds on December 1, 2011. The expected principal payment will be $680,000. Although the parking facility has a positive cash flow, the expected cash flow from operations is not sufficient to cover future principal and interest amounts. The expected cash shortage will require a draw on the Debt Service Fund. Under the indenture, the Gateway Arch Tram Fund is required to transfer funds necessary to replenish the Debt Service Fund. Depreciation & amortization for FY 2012 has decreased 78.9% from the FY 2011 projection due to the Parking Facility being fully depreciated as of May 2011.
Actual 2008
Actual 2009
Actual 2010
Projected 2011
Budget 2012
Operating revenue 1,891 1,680 1,790 1,827 1,821 Income before depreciation 654 224 515 572 528
-
500
1,000
1,500
2,000
In thousands
Gateway Arch Parking FacilityRevenue & Net Income
148
Goal #1: Deliver a high quality transit experience that is recognized by its customers, industry peers, and regional stakeholders for its excellence.
Objective 1B: Improve service quality
Strategy Action Steps Performance Measurements Understand our customers’ expectations and take steps to exceed them
• Improve parking presentation and experience at the facility by replacing the 1986 vintage lighting system with brighter energy efficient lighting • Provide for customer use of
credit cards at parking facility
• Improve visitor perception of safety and security of the facility • Lower environmental impact through the
use of green lighting • Increase customer satisfaction and
improved repeat business
Goal #3: Ensure cost-effective and efficient use of resources and aggressively pursue funding partnerships to supplement existing resources
Objective 3C: Implement revenue enhancement strategies Identify and complete revenue creation opportunities
• Update aging infrastructure and key operational components through capital investments
• Upgrade parking facility revenue and access control system • Replace cashier booths that are
nearing the end of their useful lives Objective 3D: Identify and implement shared services programs with other entities
where beneficial Work closely with local communities and organizations to ensure the success of all stakeholders
• Improve way-finding signage to the Jefferson National Expansion Memorial parking facilities
• Partner with the St. Louis CVC to implement a new city-wide attraction signage program • Reduce the number of guest
complaints related to highway directions
Gateway Arch Parking Facility: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
Operating income to exceed 33% of operating revenue ($ in thousands) $607 $737 $639 $670 Vehicle transactions (including south lot) 265,300 270,784 276,933 272,258
149
Business Enterprises
Gateway Arch Parking Facility FY 2012 Capital Project Summary (in thousands)
Sources of Funds:
Garage Renewal and Replacement Fund $ 31
Total Sources of Funds $ 31
Uses of Funds:
Cashier booths replacement $ 31
The cashier booths are nearing the end of their usable lives. The sliding doors on the booths are no longer usable, creating a challenge for cashiers simply to enter and exit the booths. Additionally, the doors create a security issue when not opening quickly in case of emergency. The booths are very difficult to secure as a result of several broken locks. The cost for repairs to the most pressing needs of the booths approaches their cost of replacement, while not dealing with other aging issues, such as HVAC.
Total Uses of Funds $ 31
150
Business Enterprises
Riverfront Attractions
Overview:
Established in 1891, the Gateway Arch Riverboats is the oldest excursion boat company to continuously operate on the Mississippi River. Originally known as Streckfus Steamers, the now Gateway Arch Riverboats have made St. Louis its home port since 1917. In July 2001, Metro purchased the Becky Thatcher and Tom Sawyer riverboat operation to preserve the riverboats as a part of the overall St. Louis Riverfront experience. Through on board narrations by National Park Service rangers, the Gateway Arch Riverboats are a natural extension of the educational programs currently offered at the Jefferson National Expansion Memorial.
The Gateway Arch Riverboats offer two primary public cruises. The one-hour sightseeing cruise departs five times a day seasonally, with additional times added as needed to accommodate demand. The evening dinner cruise features dinner, live riverboat style-jazz music, and magnificent views of the St. Louis skyline. The Gateway Arch Riverboats are also utilized for corporate/convention functions, weddings, reunions, fundraisers, and other special events.
The Gateway Arch Riverboats also operate the Arch View Café, gift shop, bike rental concessions, and a public use heliport barge offering helicopter tours.
Strategic focus:
The goal of the Gateway Arch Riverboats is to complement the unique entertainment and educational opportunities at the Gateway Arch while generating additional revenue. This requires the combined efforts of Metro and the National Park Service through creative and aggressive marketing strategies. These efforts have resulted in a National Award being presented to the National Park Service for its Riverboat Educational Programs, and in the creation of new river cruises. In FY 2012, our goal to increase passenger revenue includes the introduction of a new program of cruises that focuses on St. Louis' involvement in the Civil War.
Website:www.gatewayarchriverboats.com
Num er of passengers yearlyb(FY 2012 Budget):
Sightseeing 96,700Dinner cruise 12,200Charter cruise 12,500
Tom Sawyer Riverboat:Capacity 350 passengersYear built 1966
Becky Thatcher Riverboat:Capacity 300 passengersYear built 1963
50,000
100,000
150,000
200,000
Passengers
FY07 Act
FY08 Act
FY09 Act
FY10 Act
FY11 Proj
FY12 Bud
151
Riverfront Attractions Operating Budget Summary
Fiscal Year Ending June 30, 2012
Change FY 2012 FY 2011 FY 2010 12 Budget Budget Projection Budget Actual vs 11 Proj
Operating revenue: Cruise 1,438,600$ 1,194,225$ 1,654,900$ 1,304,976$ 20.5% Food 816,925 640,565 902,708 722,918 27.5% Beverage 280,491 221,459 263,572 225,443 26.7% Retail 106,300 92,279 110,963 98,284 15.2% Other 125,705 132,394 128,572 151,236 (5.1)%
2,768,021 2,280,923 3,060,715 2,502,857 21.4%
Operating expense: Wages & benefits excluding OPEB 1,260,984 1,130,507 1,416,763 1,125,441 11.5% Other postemployment benefits (OPEB) 75,011 61,136 71,777 69,360 22.7% Services 321,025 288,652 289,595 415,636 11.2% Materials and supplies 592,565 462,638 655,965 519,248 28.1% Fuel & lubrications 85,000 74,001 83,000 63,419 14.9% Utilities 108,620 91,893 90,420 91,714 18.2% Casualty & liability 160,023 155,162 152,970 142,838 3.1% Other expenses 158,669 171,574 200,318 192,160 (7.5)%
2,761,897 2,435,563 2,960,808 2,619,815 13.4%
Operating income (loss) 6,124 (154,640) 99,907 (116,958) 104.0%
Non-operating revenue (expense): I t t iInvestment income - 213213 900900 278278 (100 0)%(100.0)% Misc. non-operating revenue (expense) - (4,419) - (4,363) (100.0)% Total non-operating revenue (expense) - (4,206) 900 (4,085) (100.0)%
Net income(loss) before depreciation 6,124 (158,846) 100,807 (121,043) 103.9%
Depreciation & amortization (256,342) (265,639) (266,138) (294,367) (3.5)%
Net income (loss) $ (250,218) $ (424,485) $ (165,331) $ (415,409) 41.1%
Totals may not sum due to rounding
152
Business Enterprises Riverfront Attractions – Budget Assumptions__ The Riverfront Attractions, which include the Gateway Arch Riverboats, bike rental concession, and the heliport, create a complete family and tourist destination. The ability to provide these additional offerings to guests has created cross-promotional marketing opportunities, which leverage the success of the Gateway Arch Journey to the Top and increase per capita revenues. In the 2010 tourist season, nearly 1,500 Gateway Arch Riverfront All Access Passes were sold which package several offerings into a single pass, including the one-hour sightseeing cruise and lunch at the Arch View Café. This same packaging strategy is effective with school musical groups, attracting over 1,500 participants in the River City Music Days package. In FY 2012, the Gateway Arch Riverboats, in partnership with the National Park Service, will introduce a new program of cruises that focus on St. Louis’ involvement in the Civil War. Also, the National Park Service educational programs will continue its popular “Bike With a Ranger” opportunities each Saturday along the north riverfront trail. This partnership between Metro, the National Park Service and Confluence Greenway highlight the Mary Meachum Freedom Crossing site, while at the same time increasing the awareness of Metro’s operations on the riverfront. Revenue Cruise revenue is based on a budget in FY 2012 of 96,700 sightseeing passengers, 12,200 dinner cruise passengers and 12,500 charter and special cruise passengers. Cruise revenue for FY 2012 is budgeted at 20.5% higher than the FY 2011 projection. The Riverboats passenger counts are negatively impacted in the FY 2011 projection as approximately 35 cruising days were lost by Mississippi River flooding during July 2010 and April 2011. An adult sightseeing ticket can be purchased for $14.00 and the child sightseeing fare is $8. A base dinner cruise ticket is $42.00 for adults.
Cruise52.0%
Retail3.8%
Other4.6%
Beverage10.1%
Food29.5%
Riverfront AttractionsFY 2012 Operating Revenue
Food revenue includes food sold on dinner dance cruises and at the concession stands on the dock and boats. Food revenue is budgeted in FY 2012 to increase by 27.5% from the FY 2011 projection as we expect fewer cruise days lost to flooding.
153
Beverage revenue for FY 2011 is generated from beverage sales on the various types of cruises and from the Arch View Café. Beverage revenue is budgeted at 26.7% higher than the FY 2011 projection primarily due to optimistic projections of fewer cruising days lost to high river levels. Retail revenue is generated from gift shop sales. These revenues are budgeted 15.2% higher than the FY 2011 projection. Other miscellaneous revenue in FY 2012 includes $125,705 from the bike rental, helicopter tours and concessions, and a contracted passenger cruise photography service. Expense
Wages & benefits &
OPEB48.4%
Fuel and lubrications
3.1%
Services11.6%
Casualty & liability
5.8%
Utilities3.9%
Other expenses
5.8%
Materials and supplies21.4%
Riverfront AttractionsFY 2012 Operating Expense Wages and benefits are budgeted
in FY 2012 at 11.5% higher than the FY 2011 projection due to lower staffing levels required during the cruising days lost to flooding in FY 2011. Other postemployment benefits (OPEB) include $75,011 of retiree benefits expense. Services in FY 2012 are budgeted to increase 11.2% from the FY 2011 projection primarily due to riverboat repair services and credit card bank service fees.
Materials and supplies are budgeted 28.1% higher than the FY 2011 projection. Materials and supplies include the following (in thousands): Cost of food $ 314 Cost of beverages 87 Other marine operations supplies 62 Cost of retail shop items 71 Food and beverage service supplies 44 Office supplies, other 15 $ 593
154
Fuel and lubrications expense is budgeted to increase 14.9% in FY 2012 over the FY 2011 projection due to anticipated higher fuel prices in FY 2012 and fewer cruises in FY 2011 due to flooding. Utilities are comprised of $44,000 for electricity, $16,420 for telephone, $12,000 for natural gas, $15,000 for waste removal, and $21,200 for water and sewer. Casualty and liability costs are budgeted in FY 2012 at 3.1% higher than the FY 2011 projection. Other expense is 7.5% lower than the FY 2011 projection and includes $111,000 in advertising fees. Following the practice since FY 2008, a 5% management fee to the Bi-State Development Agency is being waived in the FY 2012 budget. Net income (loss) before depreciation of $6,124 budgeted in FY 2012 will assist in funding future Riverfront Attractions capital improvements.
Actual Actual Actual Projected Budget
2008 2009 2010 2011 2012
Operating revenue 2,517 2,182 2,503 2,281 2,768 Income before depreciation (299) (111) (121) (159) 6
(1,000)
-
1,000
2,000
3,000
4,000
in thousands
Riverfront AttractionsRevenue & Net Income
155
Goal #1: Deliver a high quality experience that is recognized by its customers, industry peers, and regional stakeholders for its excellence
Objective 1B: Improve service quality Strategy Action Steps Performance Measurements
Understand our customers’ expectations and take steps to exceed them
• Continue to insure safety and quality of food and service by exceeding Federal, State and local safety and health guidelines • Given changes in the corporate
and educational markets, assess the degree to which product offerings match client needs
• High scores from Food and Drug Administration with regard to training of employees and safety/health inspections • High scores from City of St. Louis Health
Department with regard to training of employees and safety/health inspections • Reduced number of guest food and
service complaints • Conduct email-based product assessment
with previous and current clients
Goal #3: Ensure cost-effective and efficient use of resources and aggressively pursue funding partnerships to supplement existing resources
Objective 3C: Implement revenue enhancement strategies Seek increasing revenue • Increase revenue opportunities • Increased attendance on cruises offered from all available sources by offering variety of cruise,
food, beverage, retail options to meet entertainment needs of Riverfront visitors • Continue availability of vessels
for revenue service through on-going compliance with United States Coast Guard (USCG) regulations • Increase community awareness
of operation through continued involvement in regional Homeland Security drills • Develop sustainable bike rental
co-op relationship with supplier to replace aging equipment • Develop and implement
programmable-based and seasonal event offerings
• Increased sales of food items • Increased sales of beverage items • Increased sales of retail items • Increased cross sales of other riverfront
partners (i.e. increased carriage rides) • Conduct current client referral-based sales
lead generation survey • USCG Certification: Vessels meet all
requirements; crew is properly trained; vessels comply with USCG regulations related to Americans with Disabilities Act • Press release to local media about
Homeland Security preparedness • Participation in U.S. Coast Guard harbor
safety drills • Participate in Transportation Safety
Administration drills • Lower cost of supplies • Lower equipment replacement costs • Improved maintenance support • Improved rental equipment quality • Better product mix to meet guest demands • Work with heliport concessionaire to
develop and implement seasonal trip offerings
156
Gateway Arch Riverfront Attractions: Performance Indicators FY 2012 FY 2011 FY 2010 Target Projection Target Actual
Increase operating income (in thousands) $6 $50 100 ($117) Passengers 119,675 101,166 123,800 105,887 Cruises 1,151 1,004 1,193 1,022 Days of operation 286 255 286 234
157
Business Enterprises
Gateway Arch Riverfront Attractions FY 2012 Capital Project Summary (in thousands)
Sources of Funds:
Riverboat Renewal and Replacement Fund $ 15
Total Sources of Funds $ 15
Uses of Funds:
Automatic Identification System (AIS) installation $ 15
The United States Coast Guard (USCG) will require all vessels to have on board an Automatic Identification System, an electronic device which continually transmists the location of the vessel as well as receives trasmission of other vessels in the area. The system informs the Captain of the location of nearby vessels, their identity, and their course as well as informing those vessels in the area our vessel's location, identity, and course. This system equipment will be installed in the pilot house on our two vessels. The USCG will not permit our vessels to operate without this equipment.
Total Uses of Funds $ 15
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h d d l i h i O h l i l d i i i
Business Enterprises
St. Louis Downtown Airport
Overview:Purchased in 1964 for $3.4 million, today the St. Louis Downtown Airport is a full-service aviation center offering an extensive line of general aviation services just eight minutes from downtown St. Louis in Cahokia/Sauget, Illinois. As the primary general aviation reliever airport for Lambert International Airport, St. Louis Downtown Airport ranks as the third busiest airport in Illinois and the busiest general aviation airport in the St. Louis region.
Strategic focus:St. Louis Downtown Airport supports the National Aviation System Plan and the St. Louis region through its mission, which is to provide world-class airport facilities and services to the public. St. Louis Downtown Airport does this by providing the best possible infrastructure with the highest-quality benchmark services provided through our employee team and airport tenant businesses.
Our vision is to set the standard for reliever airports and continue to be the general aviation "airport of choice" for people traveling to and from downtown St. Louis and the Bi-State region. This vision is reflected in our motto, "A World Class Reliever Airport Serving Downtown St. Louis and the People of the Bi-State Region."
Our primary goals are safety and security, infrastructure preservation and enhancement, and organizational excellence. Our goals support the "National Plan of Integrated Airport Systems" by providing the general aviation flying public with a safe, secure, convenient, and well-equipped facility and by providing the local community with over 1,900 high-paying jobs and acting as a catalyst for
i th d d l t i th i O h t t l i l d i i ieconomic growt an eve opment n t e reg on. ur s ort term goa s nc u e mprov ng econom c performance by increasing land lease revenue, fuel flowage revenue, transient aircraft operations and enhancing airport services and capabilities.
Website:www.stlouisdowntownairport.com
Op ions (FY 2010):erat2.0 million gallons of fuel sold116,267 aircraft movements297 based aircraftLocation of Flight Training Department,
St. Louis University
Facilities:90 small, 36 midsize and 21 large hangers1,013 acres
Airport recognition:Busiest general aviation airport in
St. Louis regionBusiest in Illinois outside ChicagoTwo hangars named to National
Register of Historic PlacesIllinois 2009 Reliever Airport of the Year
40,000
80,000
120,000
160,000
200,000Aircraft Movements
FY07 Act
FY08 Act
FY09 Act
FY10 Act
FY11 Proj
FY12 Bud
500,000
1,000,000
1,500,000
2,000,000
2,500,000Fuel Sales in Gallons
FY07 Act
FY08 Act
FY09 Act
FY10 Act
FY11 Proj
FY12 Bud
159
St. Louis Downtown Airport Operating Budget Summary
Fiscal Year Ending June 30, 2012
Change FY 2012 FY 2011 FY 2010 12 Budget Budget Projection Budget Actual vs. 11 Proj
Operating revenue: Aircraft parking 133,557$ 128,395$ 131,317$ 127,418$ 4.0% Leased acreage 449,910 429,368 430,807 427,835 4.8% Hangar rentals 457,349 456,733 457,351 456,834 0.1% Aviation fuel sale - flowage fee 190,492 160,759 189,500 177,989 18.5% Concession fees 115,944 115,000 115,944 102,671 0.8% Other revenues 94,850 90,674 96,600 87,927 4.6%
1,442,101 1,380,928 1,421,519 1,380,674 4.4%
Operating expense: Wages & benefits excluding OPEB 753,048 758,155 736,559 750,485 (0.7)% Other postemployment benefits (OPEB 69,511 70,070 65,000 67,984 (0.8)% Services 44,335 37,671 45,076 8,298 17.7% Materials and supplies 103,018 94,985 110,018 96,429 8.5% Fuel & lubrications 12,265 24,659 12,265 23,957 (50.3)% Utilities 167,019 137,815 160,682 138,225 21.2% Casualty & liability 58,687 49,101 57,200 51,318 19.5% Other expenses 121,624 103,091 125,900 123,133 18.0%
1,329,507 1,275,548 1,312,700 1,259,829 4.2%
Operating income (loss) 112,594 105,380 108,819 120,845 6.8%
e
Nonoperating revenue (expense): FAA operating assistance Investment income Other income (expense) Total nonoperating revenue (expens
-370 -370
-297 -297
-5,300
-5,300
52,900415
40,72094,035
24.8%
24.8%
Net income before depreciation 112,964 105,677 114,119 214,880 6.9%
Depreciation & amortization* (1,946,581) (1,286,662) (1,134,952) (1,297,391) 51.3%
Net income (loss) $ (1,833,617) $ (1,180,985) $ (1,020,834) $ (1,082,511) 55.3%
*Capital assets of the St. Louis Downtown Airport are predominately funded by federal grants. This is different than private industry funding which must generate profits for purchase/replacement of property and equipment. Depreciation is presented as required by generally accepted accounting principles. Depreciation is not used to provide equity for capital replacements.
Totals may not sum due to rounding.
160
Business Enterprises St. Louis Downtown Airport – Budget Assumptions_ As the aerial front door to downtown St. Louis and the primary general aviation reliever for Lambert International Airport, St. Louis Downtown Airport is the busiest Illinois airport outside the Chicago area. It is the third busiest airport in Illinois, and the busiest general aviation airport in the St. Louis region. In FY 2012, the Airport is proposing a significant infrastructure capital project that will widen runway 12R/30L to accommodate large charter aircraft. In order to attract these larger aircraft, the Airport will further promote the Commercial Airport Operating Certificate and Aircraft Rescue and Firefighting (ARFF) capabilities established in August 2008. Aircraft movements, or takeoffs and landings, are projected to be 106,780 in FY 2011 and 112,000 in FY 2012. Revenue Aircraft parking revenue for FY 2012 is budgeted 4.0% higher than the FY 2011 projection due to an increase in tenants moving from other airports in the region. Leased acreage revenue is budgeted in FY 2012 to increase 4.8% from the FY 2011 projection primarily due to a rate increase from 13.5 cents per square foot to 15.0 cents. Hangar rentals are budgeted in FY 2012 at the same level as the FY 2011 projection, as there are no expected increases in the number of hangar leases. Aviation fuel sale-flowage fee revenues are budgeted to increase by 18.5% from the FY 2011 projection resulting from an expected increase in gallons of fuel sold and fuel flowage rates. Hangar rentals
31.7%
Aircraft parking9.3%
ons
t
Concessi8.0%Other revenue
6.6%
Aviation fuel sale-flowage fee
13.2%
Leased acreage31.2%
St. Louis Downtown AirporFY 2012 Operating Revenue
Concession fees include farm income, rentals for the concourse from Midcoast Aviation and the restaurant, and rental space in the administrative building. The FY 2012 budget is 0.8% above the FY 2011 projection.
161
Other revenues include reimbursements from tenants for contract security, utilities, trash removal services and promotional participation fees paid by Midcoast Aviation. The FY 2012 budget is 4.6% above the FY 2011 projection for other revenues. Expense Wages and benefits including OPEB are budgeted at 0.7% below the FY 2011 projection. Services include the following (in thousands): Legal and consultants fees $ 39 Contract maintenance 5 $ 44 Services are budgeted in FY 2012 at 17.7% higher than the FY 2011 projection. The key item in the FY 2012 budget is consultant fees for general engineering services and capital project related issues.
Materials and supplies are budgeted in FY 2012 to be higher than the FY 2011 projection by 8.5% primarily due to acquiring firefighting supplies and building repair parts for maintaining aging facilities.
Wages & Benefits &
OPEB61.9%
Other9.1%
Services3.3%
Casualty & liability
4.4%
Utilities12.6%
Materials & Supplies
8.7%
St. Louis Downtown AirportFY 2012 Operating Expense
Utilities include electricity, gas, telephone, waste removal and water and are budgeted in FY 2012 to be 21.2% higher than the FY 2011 projection on the high probability of rate increases and the new fire department building. Casualty and liability costs are budgeted conservatively at 19.5% above the FY 2011 projection.
162
Other expense includes the following (in thousands): Management fees to Metro $ 72 Advertising and promotion 20 Travel, training, and meetings 13 Other 17 $ 122 The FY 2012 budget is 18.0% higher than the FY 2011 projection. The FY 2011 projection reflects reduced advertising costs which are restored in the FY 2012 budget. Income Net income before depreciation will provide cash flow to assist in funding capital improvements. This is expected to be 6.9% higher than the FY 2011 projection. Actual Actual Actual Projected Budget In thousands 2008 2009 2010 2011 2012
Operating revenue 1,495 1,168 1,381 1,381 1,442 Income before depreciation 355 (291) 215 106 113
(400)
(200)
-
200
400
600
800
1,000
1,200
1,400
1,600
St. Louis Downtown AirportRevenue & Net Income
163
Goal #3: Ensure cost-effective and efficient use of resources and aggressively pursue funding partnerships to supplement existing resources
Objective 3C: Implement revenue enhancement strategies Strategy Action Steps Performance Measurements
Ensure cost-effective and • Promote the Airport’s • Increased operations by large efficient use of resources for Commercial Airport Operating aircraft charter operators such as revenue enhancement Certificate and Aircraft Rescue
and Firefighting (ARFF) capabilities to attract new customers and increase revenues • Continue to increase revenue
through airport tenant business growth and expansion • Increase transient aircraft
operations by promoting aviation group activities and local events
those carrying professional sports teams resulting in increased fuel sales
• Personnel training, customer education, and safety inspections which result in a positive safety-awareness environment
• Continued construction of new facilities on existing leased parcels that are not fully developed
• Conversion of existing option-to-lease agreements to lease agreements
• Local aviation organizations conduct more flying events at the airport (e.g., Experimental Aircraft Association conducts more Young Eagle rallies, Parks College hosts flying competitions, the Greater St. Louis Air & Space Museum conducts additional special events)
• Transient aviation organizations select the airport and the St. Louis region for their annual conventions
Objective 3E: Deliver quality capital projects on time and within budget Aggressively pursue • Maintain and enhance Airport • Rehabilitate and widen runway funding, and deliver quality infrastructure and services 12R/30L to extend service life and capital projects through continued capital
investments in infrastructure and equipment
accommodate large charter aircraft such as the Airbus 320, Boeing 757 and similar large business jets
• Enhance airport security through improved perimeter fencing
• Maintain and improve the airport vehicle and equipment inventory through timely replacement and additions
• Continued construction of public infrastructure (parking lots, ramps, taxi lanes, and roadways) on public airport property
164
St. Louis Downtown Airport: Performance Indicators FY 2012 FY 2011 FY 2010
Target Projection Target Actual Increase operating income ($ in thousands) $112 $105 $109 $121 Fuel sales in gallons (thousands) 1,900 1,857 2,100 2,030 Aircraft movement 112,000 106,780 115,000 116,267 Based aircraft 280 286 280 297
165
Business Enterprises
St. Louis Downtown Airport FY 2012 Capital Project Summary (in thousands)
Sources of Funds: Federal grants Airport Fund Illinois State and Local grants
Total Sources of Funds
$
$
2,375 97 63
2,535
Uses of Funds: Construction:
Widen runway 12R/30L
Runway 12R/30L will be widened from its existing 100 ft. width to 150 ft. for the full length of the runway (7,001 ft) and overlaid with asphalt to increase its weight bearing capacity and extend its service life. It was originally designed to be 150 ft. wide but was only constructed 100 ft. wide due to budget constraints. The number of larger business jets using our airport continue to increase and 150 ft. is the required runway width to safely operate them. It was last overlayed in 1990 and has recently been deteriorating rapidly. Current developments at the airport require the runway to be strengthened. The airport's largest fixed based operator, Midcoast Aviation, constructed a hangar to accommmodate Boeing 757 aircraft in 2008. The max takeoff weight of the 757 is apporximately 220,000 pounds and exceeds the current runway capacity of 71,000 pounds dual and 100,000 poundas dual tandem. Routine runway maintenance costs will be significantly reduced for several years as a result of the new pavement. This project will allow us to continue to support existing traffic and accept larger aircraft.
$ 2,500
Equipment and Facilities Replacements: Replace vehicle 703
Replace non-revenue vehicle 4WD pickup which will be 11 years old in 2011.
Crack sealing machine Purchase a new crack sealing machine for hot tar crack sealing.
Total Uses of Funds
$ 30
5 $
$
35
2,535
166
Executive Services Operating Budget Summary
Fiscal Year Ending June 30, 2012
Change FY 2012 FY 2011 FY 2010 12 Budget Budget Projection Budget Actual vs. 11 Proj
Operating revenue: Management fees: Metro Transit System 1,800,000$ 1,500,000$ 1,500,000$ 1,400,000$ 20.0% Gateway Arch 536,490 589,442 550,578 597,491 (9.0)% Gateway Arch Parking 145,679 144,938 146,961 143,196 0.5% National Park Service 443,394 438,585 444,636 447,745 1.1% Airport 72,124 70,878 71,341 69,054 1.8%
2,997,687 2,743,843 2,713,516 2,657,486 9.3%
Operating expense: Wages & benefits (excluding OPEB) 1,754,112 1,379,834 1,376,696 1,209,151 27.1% Other postemployment benefits (OPEB) 148,222 141,397 145,196 121,539 4.8% Services 693,657 669,208 805,050 599,322 3.7% Parts & supplies 29,298 18,463 16,421 16,543 58.7% Utilities 7,800 6,449 7,320 3,363 21.0%
Other expense 259,672 176,801 228,577 158,870 46.9% 2,892,761 2,392,152 2,579,259 2,108,787 20.9%
Operating income (loss) 104,926 351,692 134,257 548,698 (70.2)%
Nonoperating revenue (expense) Investment incomeInvestment income 2,6502,650 3,1213,121 7,0007,000 7,0817,081 (15.1)%(15.1)%
Other nonoperating revenue (expense) - - - 30,100 Total nonopertating revenue (expense) 2,650 3,121 7,000 37,181 (15.1)%
Net income (loss) before depreciation & amortization 107,576 354,813 141,257 585,880 (69.7)%
Depreciation & amortization (2,433) (6,702) (5,687) (7,320) (63.7)%
Net surplus (deficit) 105,143$ 348,111$ 135,569$ 578,560$ (69.8)%
Totals may not sum due to rounding.
167
Metro
Executive Services – Budget Assumptions________ Executive Services is a service company that represents Metro’s headquarters and provides support for the five Metro operative companies (Metro Transit System, Gateway Arch, Gateway Arch Parking Facility, Riverfront Attractions, and St. Louis Downtown Airport). Revenue Metro Transit System management fee is a $1.8 million assessment representing services provided by Executive Services to Metro System. Gateway Arch management fee is calculated based on a formula negotiated with the National Park Service including seven percent of total Arch revenues and ten percent of revenue net of expenses. Gateway Arch Parking Facility management fee is calculated at eight percent of the Parking Facility operating revenue.
Metro Transit System60.0%
Gateway Arch17.9%
Gateway Arch Parking Facility4.9%
St. Louis Downtown
Airport2.4%
National Park Service14.8%
Executive ServicesFY 2012 Operating Revenue SourcesRiverfront Attractions
management fee was initiated in FY 2004. Because of extensive hull repairs in FY 2009 and 2010, the fee was waived and will continue to be waived for FY 2012. St. Louis Downtown Airport management fee is calculated at five percent of the Downtown Airport operating revenue and interest income. National Park Service management fee is calculated at twenty percent of Arch entrance fees and movie admissions.
168
Expense Compensation and benefits for the FY 2012 budget exceeds FY 2011 budget due to the new Economic Development department and a new Compliance Manager in the General Counsel Department. Overall, the number of employees budgeted for FY 2012 has increased by three positions from the FY 2011 budget. Other postemployment benefits (OPEB) are primarily retiree medical expenses related to the implementation of GASB Statement No. 43 in FY 2008.
Services primarily consist of fees for outside consultants, auditors, lawyers, lobbyists and temporary help. Lobbyist expenses and audit services to support internal audit were reduced.
Executive Office20.7%
Audit24.3%
Business Enterprises
Admin11.1%
Economic Develop.
7.4%
General Counsel17.5%
Government Affairs19.0%
Executive ServicesFY 2012 Operating Expense
Parts and supplies include printing, graphics, reproductions and office supplies. Utilities include cell phone costs.
Other expense includes employee and commissioner travel, employee training and dues for regional, state, and national transportation and economic organizations.
2007Actual
2008Actual
2009Actual
2010 Actual
2011Projected
FY 2012 Budget
Operating revenue 2,546 2,887 2,829 2,657 2,744 2,998 Operating income 101 5 474 549 352 105
-500
1,000 1,500 2,000 2,500 3,000
Executive ServicesRevenue and Net Income
In thousands
169
Executive Services _ Descriptions of organization: Executive Services is a service company that supports the other Metro companies including Metro System, Gateway Arch, Gateway Arch Parking Facility, Riverfront Attractions, and St. Louis Downtown Airport, and is supported by management fee revenue collected from each of the other companies. Functional areas of Executive Services include:
Executive Office is responsible for the management of the Agency in support of the goals and objectives of the Board of Commissioners.
Audit includes internal and assists with independent outside audits. Internal Audit plans and conducts audits of Agency programs and operations, identifying problem areas and developing recommendations for improved control mechanisms or organizational performance.
Government Affairs establishes and maintains working relationships with government officials that support Metro’s funding, legislative program, policies, and services. Government Affairs supervises the Communications and Community Relations function in the Metro System company.
General Counsel is responsible for managing and coordinating Metro’s legal activities.
Economic Development is responsible for identifying alternative sources of funding and partners for Metro initiatives, including real estate development around Metro stations; as well as promoting regional infrastructure via the Bi-State Development Agency charter in support of job creation and new private investment.
Business Development provides management overview for the Business Enterprises companies and explores business opportunities.
Goal # 1: Deliver a high quality transit experience that is recognized by its customers, industry peers, and regional stakeholders for its excellence.
Objective 1B: Improve service quality and capacity for van, bus, and rail systems
Strategy Action Steps Performance Measurements
Division: Economic Development Lead economic development component of Transit Oriented Development (TOD) planning and development
• Interface with Metro planning staff regarding TOD • Interface with community
partners on TOD planning/ finance/ development
• Ongoing TOD, improving quality of Metro station experience
170
Goal #2: We are a publically-supported organization that is effective and efficient and that is viewed as a transparent and accountable steward of public funds
Objective 2A: Establish and manage Agency communications plan that improves public perception of Metro programs and credibility of management
Strategy Action Steps Performance Measurements
Division: Executive Services Establish and maintain an agency-wide records retention policy
• Review existing policies to ensure legal compliance • Evaluate policies for consistency
and accountability of records maintenance across departments • Establish a process that ensures
compliance and accountability for records maintenance in each department
• Policy review completed , policy recommendations presented to management and updated policy in place and functioning (Aug 2012) • Ongoing review and maintenance of
policy
Division: Economic Development Promote Metro by having active, ongoing meeting and speaking engagements
• Regularly meet with local and regional economic developers • Regularly meet with lenders and
developers • Arrange speaking engagements
with key stakeholder groups
• Average five engagements and ongoing meetings during FY 2011 - 2012 period
Goal #3: We ensure cost-effective and efficient use of resources and aggressively pursue funding partnerships to supplement existing resources
Objective 3A: Implement internal process improvements Strategy Action Steps Performance Measurements
Division: Internal Audit Perform a Quality Assurance review of the Internal Audit Department to reduce costs through improved processes
• Research Institute of Internal Auditors Quality Assurance Standards • Develop a work plan • Complete the work plan
• Research and work plan complete (2010) • Ongoing improvements in
department efficiency
Objective 3C: Implement revenue enhancement strategies Division: Executive Services Address federal, state, and local policies to include better transit funding, planning, & infrastructure
• Identify the uses of the current transit sales tax revenue collections • Prepare detailed financial reports
showing the uses of the transit sales tax revenue for road construction, road maintenance, TIF’s, debt service and public transit operations
• Publish a quarterly report of transit sales tax collections and expenditures
171
Strategy Action Steps Performance Measurements Division: Economic Development Create a charitable foundation for Call-A-Ride and Paratransit
Resolve Metro’s conduit debt service issues for regional infrastructure
• Establish 501c (3) for collection/distribution of donations
• Link Bi-State to job creation and economic development initiatives
• Write down cost of Metro services (on-going) • Bond issuance, project installation
(on-going)
Objective 3D: Identify and implement shared services programs with other entities where beneficial
Division: Economic Development Cultivate finance and project partners for Transit Oriented Development (TOD) project development
• Identity and structure project development teams and financial product layering for specific project development, based on developer capitalization, market demand and deal structure
• Successful TOD development, in terms of job creation, tax base enhancement (on-going) and additional Metro projects
Executive Services: Per FY 2012 FY 2011 FY 2010 Target Projection
formance Indicators
Target Target
Timely preparation of Board Resolutions Timely preparation of Board Minutes Respond to all Sunshine Law requests
within 3 days Respond to all EEO/AAP complaints within the prescribed timeframe
Executive Office and General Counsel: Yes Yes Yes Yes Yes Yes
Yes Yes Yes
Yes Yes Yes
Yes Yes
Yes
Yes
Actively participate in regional and national
transit organizations Actively participate in regional economic
development and transportation planning
Government Affairs:
Yes Yes Yes
Yes Yes Yes
Yes
Yes Audit:
Audits planned Audits completed Audit recommendations accepted by management Audit recommendations implemented
27 19 31 27 13 24
10 17 57 10 17 57
23 23
15 15
172
Executive Services Operating Expenses
By type of expense: Wages & benefits without OPEB Other postemployment benefits (OPEB) Services Fuel & lubrications Parts & supplies Utilities Taxes, leases & other
Operating expense
FY 2012 Budget
1,754,112 148,222 693,657
460 28,838 7,800
259,672 2,892,761
Projection Budget FY 2011
1,374,107 1,376,696 147,789 145,196 668,694 805,050
1,036 920 17,374 15,501 6,444 7,320
176,708 228,577 2,392,152 2,579,259
FY 2010 Actual
1,209,151 121,539 599,322
1,062 15,482 3,363
158,870 2,108,787
Change 12 Budget vs. 11 Proj
27.7% 0.3% 3.7%
(55.6)% 66.0% 21.0% 46.9% 20.9%
By function: Executive Office 593,541 457,017 480,380 455,006 29.9% Audit 696,891 688,678 837,256 555,544 1.2% Government Affairs 550,397 432,729 476,983 455,933 27.2% General Counsel 500,580 344,380 369,225 315,236 45.4% Economic Development 232,403 53,474 - - na Business Enterprises Administration 318,949 415,873 415,415 327,070 (23.3)%
Operating expense 2,892,761 2,392,152 2,579,259 2,108,787 20.9%
Totals may not sum due to rounding.
173
Executive Services Operating Expense
FY 2012 FY 2011 FY 2010 Change
12 Budget Budget Projection Budget Actual vs.11 Proj
Executive Office
Wages & benefits without OPEB Other postemployment benefits (OPEB) Services
378,321 33,308
125,750
340,392 37,011 43,607
296,207 32,395 95,600
317,663 32,849
5,423
11.1% (10.0)% 188.4%
Fuel & lubrications 153 51 153 - 201.0% Parts & supplies Utilities Taxes, leases & other
5,000 624
50,385
6,181 804
28,972
5,750 840
49,435
2,215 -
96,856
(19.1)% (22.4)%
73.9% Operating expense 593,541 457,017 480,380 455,006 29.9%
Audit Wages & benefits without OPEB Other postemployment benefits (OPEB) Services Fuel & lubrications Parts & supplies Taxes, leases & other
378,724 30,881
256,300 -
9,838 21,147
243,606 27,078
396,529 62
7,888 13,515
349,934 36,132
424,366 307
5,851 20,667
224,353 22,801
289,605 -
8,312 10,472
55.5% 14.0%
(35.4)% (100.0)%
24.7% 56.5%
Operating expense 696,891 688,678 837,256 555,544 1.2% Government Affairs
Wages & benefits without OPEB Other postemployment benefits (OPEB) Services
154,288 13,929
259,507
126,197 14,601
189,186
133,031 13,762
215,680
123,562 12,358
279,174
22.3% (4.6)% 37.2%
Fuel & lubrications 153 51 153 - 201.3% Parts & supplies Utilities Taxes, leases & other
1,250 624
120,645
888 885
100,922
1,650 1,680
111,027
546 824
39,470
40.7% (29.5)%
19.5% Operating expense 550,397 432,729 476,983 455,933 27.2%
General Counsel
Wages & benefits without OPEB Other postemployment benefits (OPEB) Services
378,904 30,925 52,100
265,501 29,314 36,357
254,968 26,866 69,404
255,920 27,719 20,331
42.7% 5.5%
43.3% Fuel & lubrications Parts & supplies Parts & supplies Utilities
-1 7501,750 2,700
51 1 1871,187 1,469
153 1 7501,750 1,680
-1 3001,300 1,527
(100.0)% 47 5%47.5% 83.7%
Taxes, leases & other 34,200 10,501 14,403 8,440 225.7% Operating expense 500,580 344,380 369,225 315,236 45.4%
Economic Development
Development
Wages & benefits without OPEB Other postemployment benefits (OPEB) Services Parts & supplies Utilities
198,253 17,250
-10,500
900
45,039 4,055 3,015
455 360
-----
-----
Department only active 3
months. Taxes, leases & other 5,500 550 - - Operating expense 232,403 53,474 - -
Business Enterprises Administration
Wages & benefits without OPEB Other postemployment benefits (OPEB) Services
265,620 21,928
-
353,373 35,730
-
342,556 36,041
-
287,653 25,812
4,788
(24.8)% (38.6)%
na Fuel & lubrications Parts & supplies Utilities
153 500
2,952
821 775
2,926
153 500
3,120
1,062 3,109 1,012
(81.3)% (35.5)%
0.9% Taxes, leases & other 27,795 22,248 33,045 3,633 24.9% Operating expense 318,949 415,873 415,415 327,070 (23.3)%
Totals may not sum due to rounding.
174
Metro Combined Operating Budget Summary
Fiscal Year Ending June 30, 2012 (Dollars in thousands)
FY 2012 Budget Metro Business Executive FY 2012 FY 2011 Percent System Enterprises Services Total Budget change
Operating revenue: Transit passenger revenue $ 48,523 - - $ 48,523 $ 46,592 4.1% TMA revenue 1,565 - - 1,565 1,750 -10.6% Business Enterprises
operations revenue - 11,492 - 11,492 11,639 -1.3% Agency management fees - - 2,998 2,998 2,713 10.5% Other 3,476 - - 3,476 3,027 14.8%
53,564 11,492 2,998 68,054 65,721 3.5%
Operating expense: Wages & benefits excluding OPEB 151,080 4,068 1,754 156,902 152,314 -3.0% Other postemployment benefits (OPEB) 12,186 239 148 12,573 12,505 -0.5% Services 24,794 1,691 694 27,179 26,219 -3.7% Riverboat hull repairs - - - - 45 100.0% Fuel & lubrications 19,875 97 - 19,972 16,813 -18.8% Parts & supplies 18,410 954 29 19,393 17,383 -11.6% Casualty & liability 4,799 286 - 5,085 5,419 6.2% Utilities 7,575 444 8 8,027 8,149 1.5% Taxes, leases & other 2,599 844 260 3,703 3,302 -12.1% Agency fees 1,800 755 - 2,555 2,269 -12.6%
243,118 9,378 2,893 255,389 244,418 -4.5%
Operating income (loss)
Non-operating revenue (expense): Grants & assistance Other revenue source Investment income Capital lease revenue Capital lease expense Interest on debt Sheltered workshop Contributions from (to) other entities Other
(189,554) 2,114 105 (187,335) (178,697) -4.8%
200,675 - - 200,675 200,560 0.1% - - - - -406 28 2 436 338 29.0%
5,071 - - 5,071 9,833 -48.4% (5,071) - - (5,071) (9,833) 48.4%
(22,570) (84) - (22,654) (28,976) 21.8% (1,026) - - (1,026) (1,018) -0.8%
40 (59) - (19) 2 1050.0% - - - - 1,055 100.0%
177,525 (115) 2 177,412 171,961 -3.2%
Net income (deficit) before depreciation (12,029) 1,999 107 (9,923) (6,736) -47.3%
Depreciation & amortization (72,560) (2,819) (2) (75,381) (74,192) -1.6%
Net surplus (deficit) $ (84,589) $ (820) $ 105 $ (85,304) $ (80,928) -5.4%
Totals may not sum due to rounding
175
Operating revenue: Business Enterprises
operations revenue Other revenue
Business Enterprises Operating Budget Summary
Fiscal Year Ending June 30, 2012 (Dollars in thousands)
FY 2012 Budget Gateway Arch St. Louis
Tram Operations
Parking Facility
Riverfront Downtown Attractions Airport
FY 2012 Total
FY 2011 Budget
Percent change
5,461$ -
1,821$ 2,768$ 1,442$ 11,492$ - - -
11,807$ -2.7%
Operating expense: Wages & benefits excluding OPEB Other postemployment benefits (OPEB) Services Riverboat Hull Repairs Fuel & lubrications Parts & supplies Casualty & liability Utilities Taxes, leases & other Agency fees
5,461 1,821 2,768 1,442 11,492
1,602 452 1,261 753 4,068 68 27 75 69 239
866 460 321 44 1,691 - - - - -- - 85 12 97 236 23 592 103 954
40 27 160 59 286 92 76 109 167 444
633 2 159 50 844 536 147 - 72 755
4,073 1,214 2,762 1,329 9,378
11,807
4,174 227
1,606 45 95
945 288 414 898 769
9,461
-2.7%
2.5% -5.3% -5.3%
100.0% -2.1% -1.0% 0.7%
-7.2% 6.0% 1.8% 0.9%
Operating income (loss) 1,388 607 6 113 2,114 2,346 -9.9%
Non-operating revenue (expense): Investment income 23 5 - - 28 44 -36.4% Interest on debt Contributions from (to) other entities Other
-(59) -
(84) --
---
---
(84) (59) -
(111) (23)
-
24.3% -156.5%
(36) (79) - - (115) (90) -27.8%
Net income (deficit) before depreciation 1,352 528 6 113 1,999 2,256 -11.4%
Depreciation & amortization (540) (76) (256) (1,947) (2,819) (2,163) -30.3%
Net surplus (deficit) $ 812 $ 452 $ (250) $ (1,834) $ (820) $ 93 981.7%
176
Glossary of Terms
ADA The Americans with Disabilities Act of 1990 – A federal act which prohibits discrimination against people with disabilities thereby promoting access to jobs, public accommodations, telecommunications, and public services, including public transit. Both operating and capital programs have been initiated by Metro in response to ADA legislation.
ADA paratransit service Call-A-Ride van service provided to ADA-eligible passengers. Administration Metro’s human resources, communications, purchasing, material
management, and ADA services cost centers. Agency Bi-State Development Agency doing business as “Metro.”
Agency may also refer to “Executive Services.” Aircraft movement Takeoff or landing recorded by the St. Louis Downtown Airport
tower. Movements when the tower is closed are not included. Appropriation A law enabling and limiting availability of funds from a funding
jurisdiction. Metro disbursements may not exceed appropriations. Generally, Metro budgets precede appropriation.
ATS Alternative Transportation Service, paratransit service provider in St. Clair County, IL. Metro is contracted by SCCTD for maintenance of the ATS vehicles.
Average weekday ridership Average passenger boardings for weekday service. Excludes Saturdays, Sundays, and scheduled holidays.
Balanced budget Balanced budget The Compact between the states of Missouri and Illinois requires The Compact between the states of Missouri and Illinois requires Metro to prepare and adopt an annual budget. That budget must be balanced whereas revenues exceed or at least equal expenses.
Based aircraft Number of aircraft stored in owned or leased hangars or outside ramps at St. Louis Downtown Airport at end of each month.
Benefits Fringe benefit expenses including health, life, and disability insurance; social security; vacations; holidays; sick leave; unemployment; workers’ compensation, and employer’s 401(k) contribution.
Board of Commissioners Ten-member board with five members each appointed by the governors of Illinois and Missouri.
Business Enterprises Metro operating companies other than Metro System. Includes Gateway Arch, Gateway Arch Parking Facility, Gateway Arch Riverboats, and St. Louis Downtown Airport.
Call-A-Ride Metro service name for demand-response van service. CMAQ grant A federal Congestion Mitigation/Air Quality grant program
designed to support transportation projects that reduce traffic congestion.
Compensation The cost of wages and salaries including overtime for the performance of work.
177
Glossary of Terms
Complaint Passenger or general public dissatisfaction expressed to Customer Service by phone call, letter or email for which there is no immediate, satisfactory explanation; includes operator behavior, service, equipment maintenance or suitability, or other concerns.
Continuing Resolution Legislation that allows a government organization to operate while its budget is still yet to be approved
Cross County MetroLink corridor extending through Clayton, Missouri and ending at Shrewsbury, Missouri, adding eight miles and nine stations to the system.
Customer Complaint See complaint. Deadhead The time and distance in which a transit vehicle is traveling
toward a yard, shop, or the start of a run but is not in revenue service.
DMH Missouri Department of Mental Health, which subsidizes Call-A-Ride paratransit passenger trips.
EADS Employee Accountability and Development System, Metro’s employee evaluation and development program.
Engineering & New System Development (ENSD)
Metro’s engineering, construction, and rail and facilities management cost centers.
EWGCOG The East-West Gateway Council of Governments is designated by federal, state, and local officials as the Metropolitan Planning O i ti (MPO) f th i Th MPO i ibl fOrganization (MPO) for the region. The MPO is responsible for carrying out the urban transportation planning process in this region.
Executive Services A Metro service company supporting the other Metro companies. Expense (operating) Excludes depreciation, amortization, debt expense and sheltered
workshop expense. Allocations by mode are based on a management-developed model.
Failure MetroLink revenue service interruption whereby a train is delayed by five minutes or more or removed from service because of a mechanical reason.
Farebox recovery Farebox recovery – Passenger revenue as a percent of expense. Fares The amount charged to passengers for use of various services. Finance Metro’s accounting, budget, grants, passenger revenue, risk
management, safety, and treasury cost centers. Fiscal year (FY) The fiscal year for Metro ends on June 30 of each year. FY 2008
ends on June 30, 2008. FY 2008 of the federal government extends from October 1, 2007, through September 30, 2008.
Fixed guideway system A system of vehicles that can operate on its own surface or track and its supporting structure constructed for that purpose.
178
Glossary of Terms
Fixed route service MetroBus and MetroLink vehicles that operate according to fixed schedules and routes.
FTA (Federal Transit Administration) – The federal agency that helps cities and communities provide mobility to their citizens. Through its grant programs, FTA provides financial & planning assistance to help plan, build, and operate transit systems. Since 1988, the only FTA funding available to Metro has been for capital projects.
Fund A fiscal and accounting entity with a self-balancing set of accounts.
Gateway Arch Jefferson National Expansion Memorial and park grounds operated by the National Park Service in downtown St. Louis. In reference to Metro, the tram system and ticketing operation managed by Metro under contract with the National Park Service.
Gateway Arch Riverboats Becky Thatcher and Tom Sawyer riverboats owned and operated by Metro adjacent to the Gateway Arch park grounds.
General Agency See Executive Services. IDOT Illinois Department of Transportation. IT Information technology including hardware and software
management and office services. JARC Job Access and Reverse Commute Program - FTA grant program
to provide funding for local programs that offer job access and t i t id t t ti f lreverse commute services to provide transportation for low
income individuals who may live in the city core and work in LRV Light rail vehicle. Management fee Assessment by Executive Services to other Metro companies to
finance Agency company expenses. Metro Since February 1, 2003, the Bi-State Development Agency has
been doing business in the St. Louis region as “Metro.” Metro consists of six companies: Metro System, Agency (also called “Executive Services”), Gateway Arch, Gateway Arch Parking Facility, Gateway Arch Riverboats, and St. Louis Downtown Airport.
Metro System The Metro company that provides transit services under service names MetroBus, MetroLink, and Call-A-Ride.
MetroBus Metro service name for bus service. MetroLink Metro service name for light rail service. MoDOT Missouri Department of Transportation. MTIA Major Transportation Investment Analysis.
179
Glossary of Terms
New Freedom FTA formula grant program that aims to provide additional tools to overcome existing barriers facing Americans with disabilities seeking integration into the work force and full participation in society.
New Start FTA grant program that is the primary funding option for local “guideway” transit projects, such as rapid rail, light rail, commuter rail, people movers, and exclusive facilities for buses and other high-occupancy vehicles (such as bus rapid transit).
NPS National Park Service. On-time performance MetroBus and MetroLink: Automated passenger counters record
early and late departures for selected MetroBus routes and MetroLink runs compared to published schedules. A trip is considered “on-time” if the vehicle departs within the time frame of 59 seconds before schedule or arrives within 4:59 minutes after schedule. Deleted from the results are no-shows or extreme weather days. Call-A-Ride: Appointments are made giving the passenger an estimated arrival time. A trip is considered on time if arrival for the appointment is within 20 minutes before or after the appointment time.
Ontira Provider of automated traveler information systems for the people transportation industry.p y
Operations Metro’s vehicle operator and maintenance, security, custodial, service planning, and customer service cost centers.
Passenger boardings Includes original revenue vehicle boardings and all transfers based on MetroBus farebox counts, MetroLink ridership modeling using Automatic Passenger Counter (APC) technology, and actual Call-A-Ride passengers.
Passenger injury Physical harm or alleged physical harm to a passenger or bystander involved in an Agency accident. One vehicle accident may result in multiple injuries.
Prop M One-quarter of a cent sales tax collected in St. Louis City and County used for MetroLink development and operations.
Revenue hours Time that MetroBus/Call-A-Ride vehicles or MetroLink trains operate in passenger service including special service. Beginning in January 2005, revenue hours include layover/recovery time.
Revenue miles Distance that MetroBus/Call-A-Ride vehicles or MetroLink trains operate in passenger service including special service.
Reverse commute City-to-suburb commute. This phrase refers to the fact that most riders commute from the suburbs to the city.
Ridership Metro System: Total passenger boardings. Gateway Arch tram: Number of adult and child tickets sold.
180
Glossary of Terms
Roadcall MetroBus or Call-A-Ride revenue service interruption whereby the vehicle is delayed because of mechanical, tire, farebox, wheelchair or other equipment failure. A delay is not counted as a roadcall unless the delay is five minutes or more for MetroBus or fifteen minutes or more for Call-A-Ride.
SAFETEA Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 for the six years through September 30, 2009, which authorizes federal transit funding.
SCORE (Systems Connectivity Opportunity Responsiveness Efficiency) – Metro’s state of the art business system that brings a new level of integration of automation between business functions.
Sheltered workshop Vocational programs designed to provide work for persons with mental retardation/developmental disabilities. Two percent of the Missouri ½ cent sales tax (City of St. Louis and St. Louis County) when received by Metro is forwarded to support these programs.
Smart Card Pocket-sized card with embedded integrated circuits which can process data to be used for transit fare collection.
SMSA Standard Metropolitan Statistical Area. STP Surface Transportation Program; provides funds for projects that
include road maintenance and construction, public transit projects, bridge improvements, traffic flow improvement projects, and bicycle and pedestrian projectsbicycle and pedestrian projects.
Subsidy per passenger Operating subsidies related to transit operations divided by passenger boardings.
TEA-21 Transportation Equity Act for the 21st Century for six years through September 30, 2003, which authorized federal transit funding.
TIF Tax increment financing which creates tax incentives for redevelopment. TIF programs may reduce sales tax receipts for Metro.
TIP Transit Improvement Plan, a planning document prepared by Metro for review and implementation by state Departments of Transportation and Federal Transit Authority to enable grant applications and receipt of federal funds.
TMA Transit Management Association, which coordinates paratransit operations in the region using Metro’s reservation and dispatching system.
Total hours Revenue hours plus deadhead hours (e.g., from the facility to the start of a revenue trip).
Total miles Revenue miles plus deadhead miles (e.g., from the facility to the start of a revenue trip).
181
Glossary of Terms
Trapeze Trapeze Software, a major software provider specializing in transportation systems.
TRIP Transit in the Park - (Paul S. Sarbannes) - Program goals are to conserve natural, historical, and cultural resources; reduce congestion and pollution; improve visitor mobility and accessibility; enhance visitor experience; and ensure access to all, including persons with di biliti Unscheduled absenteeism Operator, mechanic and facility support sick time and unauthorized leave as a percent of current staffing, excluding overtime.
Vehicle accident Incident in which an Agency vehicle makes physical contact with another vehicle, a fixed object or a person. It also includes derailments or leaving the road.
Vehicle transactions Number of vehicles exiting the Gateway Arch Parking Facility.
182
Glossary of Acronyms
ADA Americans with Disabilities Act AIT Arts in Transit APC Automatic Passenger Counter ArcGIS Collection of software products that runs on standard desktop computers to
create, import, edit, query, map, analyze and publish geographic information.
ArcGIS Server ArcGIS Server delivers dynamic maps and GIS data and services via the Web.
ARRA American Recovery and Reinvestment Act of 2009 ATS Alternative Transportation Service, paratransit service provider in St. Clair
County, IL. Metro is contracted by SCCTD for maintenance of the ATS vehicles.
AVL Automated Vehicle Locator BRT Bus Rapid Transit CAD/AVL Computer Aided Dispatch / Automated Vehicle Location CCC Cross County Collaborative CCTV Closed Circuit Television (Cameras) CMAQ A federal Congestion Mitigation/Air Quality grant program designed to
support transportation projects that reduce traffic congestion. CMS Constant Maturity Swap DBE Disadvantaged Business Enterprise DMH Department of Mental Health DOT United States Department of Transportation EADS Employee Accountability and Development System ERS Evaluated Receipt Settlement EWGCOG East-West Gateway Council of Governments FASB Financial Accounting Standards Board FTA Federal Transit Administration FY Fiscal Year GASB Governmental Accounting Standards Board GIS Geographic Information System HCMS Human Capital Management System IDOT Illinois Department of Transportation IDS Intrusion Detection System IT (Metro's) Information Technology Division
183
Glossary of Acronyms
JARC Job Access and Reverse Commute Program LIBOR London Interbank Offering Rate LRV Light Rail Vehicle MoDOT Missouri Department of Transportation MOW Maintenance of Way MPO Metropolitan Planning Organization MTIA Major Transportation Investment Analysis NPS National Park Service NTD National Transit Database OPEB Other Post Employment Benefits ROMIS Rail Operations Management Information System SAFETEA Safe, Accountable, Flexible and Efficient Transportation Equity Act SAFETEA-LU Safe, Accountable, Flexible and Efficient Transportation Equity Act - A
Legacy for Users SCADA Supervisory Control and Data Acquisition SCCTD St. Clair County Transit District (Illinois) SCORE Systems Connectivity Opportunity Responsiveness Efficiency (Business
System)
SMSA SMSA Standard Metropolitan Statistical Area Standard Metropolitan Statistical Area STP Surface Transportation Program TEA-21 Transportation Equity Act for the 21st Century TFLEX Transit Finance Learning Exchange TIF Tax Increment Financing TIGER Transportation Investment Generating Economic Recovery - supplemental
discretionary grant program managed by the DOT. TIP Transportation Improvement Plan TMA Transportation Management Association TSGP (Department of Homeland Security) Transit Security Grant Program TVM Ticket Vending Machines UMSL University of Missouri - St. Louis USO United Services Organization
184