st. louis metro transit fy2011 operating and capital budget presentation

FY 2011O tiOperating

andandCapital BudgetCapital Budget

Executive ServicesServices

andT itTransit Systemy

May 21, 2010 Metro Moves The Community Forward2

President’s Messageg

FY 2010 Pivotal Year• State of Missouri emergency relief• State of Missouri emergency relief• Partial service restoration • Long-range strategic planning to define public g g g p g p

transit needs for the next 30 years• Diverse, broad-based coalition united to support

passage of Prop Apassage of Prop A• Prop A passage on April 6, 2010


President’s MessagegFY 2010 Accomplishments

• Maintained impressive service & vehicle maintenance performance standards despite downsizing

• Conducted community engagements for education• Completed long-range plan with EWGCGCompleted long-range plan with EWGCG• Committed to fiscal responsibility• Replaced Vandeventer Bridge in 6 days• Constructed state of the art light rail paint booth in

East St. Louis nearly $4 million regional investment• Implemented Oracle’s Human Resource Capital


Implemented Oracle s Human Resource Capital Management system

President’s Messageg

FY 2010 Accomplishments• Provide maintenance program for the City of St• Provide maintenance program for the City of St.

Louis fire trucks• Completed the FTA Triennial Review• Received several awards and recognitions

Comprehensive Financial Annual Reporting AwardDistinguished Budget Awardst gu s ed udget a dRisk Management Director of the Year AwardFTA Award of Excellence to the Director of Program Development and Grants


p

Strategic Planning Overviewg g

Three-year Strategic Planning processE t bli h d Vi i d Mi i• Established new Vision and Mission Statement

• Refined core valuesRefined core values• Established goals and objectives• Benchmarked key performanceBenchmarked key performance

indicators• Assigned accountability


Economic Trends

Current EnvironmentCurrent economic downturn began in• Current economic downturn began in fall of 2008

• Nationwide unemployment rates are p yaveraging 10%

• Segments impacted:Rid hiRidership Passenger revenueSales tax


Sales tax

3540 45 50

Sales Tax Receipts

-5

10 15 20 25 30 35

Actual Actual Actual Actual Actual Actual Actual Actual Actual Proj Bgt

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011County 1/2 cent 39.50 40.90 41.90 42.80 44.10 45.30 47.40 48.48 39.50 34.53 34.61 County 1/4 cent 38.00 38.61 38.09 38.92 39.61 40.42 41.11 41.26 38.97 36.24 36.33

(in millions)

City 1/2 cent 18.43 17.40 16.98 16.32 16.84 17.20 17.77 17.74 17.45 16.23 16.27 City 1/4 cent 9.24 8.83 8.62 8.46 8.66 8.90 9.18 9.27 9.01 8.38 8.40


* Proposition A not included

ExecutiveExecutiveS iServices


FY 2011 Executive Services BudgetgMajor AssumptionsRevenueRevenue

• Increase in Metro Transit System management fee• Defer Riverfront Attractions management fee

Expenses• Implement wage freeze

Assume inflationary pressure on medical expense• Assume inflationary pressure on medical expense• Reduce supplies and other expenses as compared

to the 2010 budget


• Restore resources to Internal Audit

Executive Services Budget Summary g yFY 2011Budget

FY 2010Projection

FY 2010 Budget

Operating revenue $ 2,713,516 $ 2,567,128 $ 2,647,424Operating expense 2,579,259 2,429,807 2,604,628O ti i (l ) 134 257 137 321 42 796Operating income (loss) 134,257 137,321 42,796Non-operating revenue (exp) 7,000 6,794 2,450Net income (loss) before . ( )

….depreciation & amortization 141,257 144,115 45,246Depreciation & amortization (5,687) (5,611) (4,777)Net income (deficit) $ 135 569 $ 138 504 $ 40 469


Net income (deficit) $ 135,569 $ 138,504 $ 40,469(May not sum due to rounding)

Executive ServicesFY 2011 Operating Revenue

St. Louis Downtown

Airport%

National Park Service16.4%

Metro Transit System55.3%

2.6%

Gateway Arch Parking Facility

5.4% Executive ServicesFY 2011 Operating Expense

Gateway Arch20.3%

FY 2011 Operating Expense

Government Affairs18.5%

Executive Office24.7%

General Counsel14.3%


Business Development

16.1%

Audit26.4%

Transit System


FY 2011 Transit BudgetgMajor AssumptionsRevenueRevenue

• Defer consideration of previously Board approved July 2010 fare increaseR d t f 5307 C it l F d l F l• Reduce percent of 5307 Capital Federal Formula funds used in the operating budget through the preventive maintenance program

• Subtract the one-time $8 million State of Missouri emergency funds (originally $12m)


FY 2011 Transit BudgetgMajor AssumptionsRevenueRevenue

• Add Proposition A sales tax funds projected to be available to the Agency September 20102010

Replaces one-time State of Missouri fundingRestores 5307 federal capital funding back to capital programp og aReplaces sales tax shortfall due to economic downturn

• Add $4.1 million in Federal ARRA funds Bridges the gap between 2010 expiration of funds and


Bridges the gap between 2010 expiration of funds and Prop A availability

FY 2011 Transit BudgetgMajor AssumptionsExpensesExpenses

• Phase service restoration• Freeze wages other than contractual

i trequirements• Re-hire only mission critical positions

predominantly related to service restorationy• Provides for anticipated increases in medical

expenses, fuel, and utilities; other areas remain flat


remain flat

Transit System Budget Summaryy g y(in millions)

FY 2011Budget

FY 2010Projection

FY 2010 Budget

Operating revenue $ 51.2 $ 49.8 $ 49.4Operating expense 232.4 204.0 208.3Operating (loss) (181 2) (154 2) (158 9)Operating (loss) (181.2) (154.2) (158.9)

Non-operating revenue (expense)Grants & assistance 200.5 174.0 177.7Other (28.5) (27.3) (29.8)Total 172.0 146.7 147.9

Net (deficit) before depreciation (9.2) (7.5) (11.0)Depreciation 72.0 74.7 73.8

Net (deficit) $ (81 2) $ (82 2) $ (84 8)


Net (deficit) $ (81.2) $ (82.2) $ (84.8)

Passenger Revenue

40.0

45.0

50.0

Passenger Revenue

20.0

25.0

30.0

35.0

Actual Actual Actual Actual Actual Actual Actual Actual Actual Proj Bgt-

5.0

10.0

15.0

(In millions)2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Rail 8.6 9.5 10.0 9.3 11.0 12.6 17.1 16.5 17.2 17.4 17.9 Paratransit 0.5 0.6 0.7 0.8 0.9 1.0 1.0 1.0 1.0 0.8 0.9 Bus 22.3 21.7 21.6 21.3 24.1 24.8 24.7 28.0 29.0 27.3 27.8

(In millions)


FY 2011 Transit Operating Expense Budgetp g p g(in millions)

FY 2010 Projection $204.0

Additional SCCTD service 4.8Restoration of Missouri service 17.6Fuel price increase 4.5Medical increases 1.2Utilities rate increase 0.3

FY 2011 Budget $232.4


FY 2011 Budget $232.4

Major Transit System Assumptions(in millions)

FY 2009 Budget $221.6

Subtract: service cost savings (4 5)Subtract: service cost savings (4.5)Add: SCCTD 2-years service expansion 8.3FY 2010 inflationary growth 1.0FY 2010 inflationary growth 1.0FY 2011 inflationary growth

Fuel 4.5Medical 1.2Utilities 0.3

FY 2011 B d t $232 4


FY 2011 Budget $232.4

Operating RevenueGrants & AssistanceGrants & Assistance

Passenger revenue

18.5%Grants &

assistance79.7%

Other operating revenue

1.8% Transit SystemFY 2011 Operating ExpenseFY 2011 Operating Expense

Services10.2%

Wages, benefits & OPEB

68.4%

Fuel & lubrications

7.2%Utiliti

Parts & supplies

Other3.8%

Utilities3.3%


Parts & supplies7.1%

Three-Year Transit Improvement Plan(in millions)

FY 2011Budget

FY 2012Projection

FY 2013Projection

Operating revenue $ 51.2 $ 55.5 $ 58.5Operating expense 232.4 241.2 250.4Operating (loss) (181.2) (185.7) (191.9)Non-operating revenue (expense)(expense)

Grants & assistance 200.5 204.2 209.4Other (28.5) (29.0) (31.4)Total 172.0 175.2 178.0

Net (deficit) before


depreciation $ (9.2) $ (10.5) $ (11.9)

Capital BudgetCapital Budget


Sources of FundsFY 2011 FY 2013 $430 8 illiFY 2011 - FY 2013 -- $430.8 million

Local Funding Federal Funding 81.0%g19.0%

gIncludes .01% MoDOT Federal Pass-thru Funds


Federal Sources of Funds FY 2011 FY 2013 $349 1 illiFY 2011 - FY 2013 -- $349.1 million

New Freedom0 4%TEA 21 Demo Earmark

Federal Formula43.6%

0.4%TEA 21 Demo1.4%

Homeland Security1.9%

15.9%

JARC

Fixed Guideway

17.7% STP1 0%

ARRA12 1% CMAQ


JARC0.5%

1.0% 12.1% CMAQ5.5%

Local Sources of Funds FY 2011 FY 2013 $81 7 illiFY 2011 - FY 2013 -- $81.7 million

Prop M OthIllinois Department of Transportation

St. Clair County Transit DistrictProp M

Sales Tax (1/4 Cent)45.6%

Other 0.5%

of Transportation (IDOT)12.4%

Transit District 8.0%

Sales Tax Capital Fund (1/2 Cent)

Operating Funds Supporting

Eligible Capital Projects


Fund (1/2 Cent)16.0%

j17.5%

Capital Cash Flow By UseFY 2011 FY 2013 $430 8 illiFY 2011 - FY 2013 -- $430.8 million

Operating Assistance

IT & Other4.3%

Rail Infrastructure & Maintenance

2.7% Programs26.8%

Vehicles & Support Equipment

42.5%

Safety & Security

1 7%

Development, Enhancement,

Infrastructure, Vehicle Maint &

Rehab


1.7%Environmental5.5%

16.5%

SAFETEA-LU FY 2005 - FY 2009 • Safe, Accountable, Flexible, Efficient Transportation Equity

Act: A Legacy for Users (SAFETEA-LU) signed by President Bush on August 10, 2005

• Expired September 30, 2009The Hiring Incentives to Restore Employment (HIRE) Act 2010The Hiring Incentives to Restore Employment (HIRE) Act, 2010 was signed into law March 18, 2010 by President Obama extends authorized levels through December 31, 2010Funding supports several programs including Urbanized AreaFunding supports several programs including Urbanized Area Formula Program; Fixed Guideway Modernization; Bus and Bus-Related Facilities; JARC and New Freedom at the 2009 levels


levels

CurrentFederal Formula Funds For

Vehicle Maintenance(in millions)

FY10 FY11 FY12 FY13 TotalFY10 FY11 FY12 FY13 TotalTotal Formula $32.4 $33.3 $34.3 $35.4 $135.5

Vehicle Maintenance $30.0 $16.0 $16.0 $16.0 $78.0

Revenue Vehicles $0.0 $16.0 $16.0 $16.0 $48.0


American Recovery & Reinvestment Act (ARRA)On February 17, 2009 the “American Recovery and Reinvestment Act, 2009” (Pub. L. 111-5; “ARRA”) was signed into law by President Barack Obamasigned into law by President Barack Obama

(in millions)

Eads Bridge Rehabilitation $24.50UMSL Interlocking 8.40Operating Assistance 4.10Ties and Track Replacement 1.60North Hanley Parking Lot/Bus Bay Improvements 2.40MetroLink Slope Stability Improvements* 3.50 Public Art 0 45


Public Art 0.45* Includes $1.28 ARRA and $2.21 Fixed Guideway

ARRA Projects & FundingNon-Transit

• U. S. Department of TransportationU. S. Department of TransportationAirport Rescue Firefighting Buildingand Equipment $4.6 million


FY 2011 – FY 2013 Major Projectsj j• Integrated Fare System Upgrade• Radio Replacement• Union Station Tunnel Rehabilitation

Funding to support this project is planned beyond the current FY11 - FY13 capital budget period

• ADA enhancementsInstallation of between-car barriers and tactile warning strips at all MetroLink stations

• Transit enhancementsInstallation of heaters at MetroLink stations, upgrades to passenger shelters and signage


L R Fi i l Pl F t L kLong-Range Financial Plan: Future Look

• Shift all 5307 federal capital formula funds back to the capital programfunds back to the capital program

• Accelerate debt re-payment


Capital Planning: Future NeedsCapital Planning: Future Needs

• North County Transfer Center• North County Transfer Center• Planning for Bus-Rapid-Transit• Light Rail Vehicle replacements g p

FY 2018 (31 LRVs original alignment 1000 series)


Questions?Questions?


Board ActionTo obtain the approval of the Board of Commissioners for:

Board Action

Commissioners for:

• The FY 2011 Executive Service and Metro Transit System Operating and Capital BudgetSystem Operating and Capital Budget

• The three-year Transportation Improvement Plan• Grant resolutions required to apply for federal and

state funding necessary to support Metro’s projects and programs


st. louis metro transit fy2011 operating and capital budget presentation

Documents

community forward fy

operating budget

executive services fy

transit t

projection fy

operating revenuest

executive services s

operating o ti