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Valley Metro RPTA Preliminary FY16 Budget Overview

Budget and Finance Subcommittee April 2, 2015

Budget Schedule FY16

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Jan 14 - Board approves Agency goals Feb 19 - Board approves service changes effective April 2015 Feb 20 - Prelim FY16 Budget delivered to Fin. Working Group Feb 27 - Executive Summary / 5 year Plan posted to website Mar 20 - 30 day review period….Member City Comments Mar 25 - Draft Budget delivered to TMC/RMC/BFS Apr 1 - Budget presented for information to TMC/RMC Apr 2 - Budget presented for information to BFS Apr 16 - Budget presented to Board of Directors for information May 21 - Board Meeting – Budget Adoption

FY16 Revenues $284.7M

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$0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0

Public Transportation Funds

Transit Service Agreements

Federal Grants

METRO Rail Reimbursement

Fixed Route Fare Revenues

AZ Lottery Proceeds

Regional Area Road Funds

Other Revenues

Carry forwards and Reserves

FY16 FY15 Valley Metro RPTA Sources of Funds FY16 vs FY15

FY16 Revenues $284.7M

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Funding Sources FY16 FY15 Change $

Public Transportation Funds $133.9 $127.7 $6.2Transit Service Agreements 30.1 29.4 0.7Federal Grants 33.7 38.4 -4.7METRO Rail Reimbursement 16.9 15.3 1.6Fixed Route Fare Revenues 16.1 16.1 0.0AZ Lottery Proceeds 11.3 11.5 -0.2Regional Area Road Funds 4.8 4.7 0.1Other Revenues 2.0 1.6 0.4Bond Proceeds 0.0 0.0 0.0Carry forwards and Reserves 35.9 80.0 -44.1Total $284.7 $324.6 -$40.0

FY16 Expenditures $284.7M

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0 20 40 60 80 100 120

+ Passenger ServicesFixed Route Bus Operations

Paratransit OperationsLead Agency Disbursements

Regional Vanpool Service+ Regional Transit Services

Marketing and OutreachCall Center

ADA ComplianceRideshare and Trip Reduction

Service and Capital Planning+ Capital Activities

Bus EquipmentParatransit Lead Agency Capital

Vanpool FleetFacilities and equipment

+ Fiscal & Administrative ServicesValley Metro Rail Staffing

Light Rail Lead Agency CapitalArizona Lottery Fund Disbursements

Debt ServiceValley Metro Administration

FY 16 FY 15 Valley Metro RPTA Uses of Funds FY16 vs FY15 (Millions)

FY16 Expenditures $284.7M

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Uses of Funds FY16 FY15 Change $

Lead agency disbursements $67.7 $77.0 -$9.3Transit service contracts & fuel 88.8 84.3 4.5Capital 25.9 30.5 -4.6RPTA & METRO Personnel Costs 26.4 24.9 1.5Bond Principal & Interest 24.2 24.2 0.0Contractual Agreements 4.0 5.6 -1.6AZ Lottery Disbursements 11.2 11.2 0.0Lead Agency Bond Disbursements 25.0 56.0 -31.0Other Costs 11.2 10.8 0.4Carry forwards to Reserves 0.3 0.1 0.2Total $284.7 $324.6 -$40.0

Baseline: Fixed Route Bus

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FY15 FY16 ChangePassenger Boardings 17,552,346 17,727,822 1%Vehicle Revenue miles delivered 11,780,473 11,876,349 1%

Number of Routes operated 49 49 Number of Fleet (VOMS) 268 268

Boardings per Revenue Mile 1.49 1.49 0%Operating cost per passenger $4.04 $4.08 1%

Operating Costs $70,829,656 $72,383,518 2%Fare Revenues $13,666,247 $14,408,604 5%Fare Recovery 19.3% 19.9%

Fixed Route Bus – Fuel Cost FY16 East Valley (Tempe Facility)

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Tempe Facility Fuel Mileage Gallons Cost/Gal. Total

LNG to CNG* 7,412,151 1,906,410 $ 1.58 $ 3,014,034

Diesel 821,735 271,188 $ 2.50 $ 677,970

LNG* 466,236 367,498 $ 0.93 $ 341,773

Unleaded 174,175 76,853 $ 2.10 $ 161,391

Subtotal 8,874,297 2,621,949 $ 4,195,168

Contingency $ 315,376

Total $ 4,510,544

*LNG is converted to CNG in Tempe. Budget combines both as LNG.

Paratransit Demand Service

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FY15 FY16 ChangePassenger Boardings 476,315 521,844 10%Trips delivered 435,316 477,358 10%

Operating cost per Trip $28.13 $29.22 4%

Operating Costs (Gross Project Costs) $12,244,122 $13,949,699 14%Fare Revenues $1,540,711 $1,749,604 14%Fare Recovery 12.6% 12.5% 0%

Vanpool Program

10 * Fuel costs are paid by passengers directly and not a part of operating costs shown

FY15 FY16 ChangePassenger Boardings 1,166,424 1,239,326 6%Vehicle Revenue miles delivered 6,104,716 6,486,261 6%

Number of Vanpools operated 400 425 6%Number of Fleet 432 457 6%

Boardings per Revenue Mile 0.19 0.19 0%Operating cost per passenger $0.87 $0.84 -3%

Operating Costs * $1,012,104 $1,045,350 3%Fare Revenues $1,045,388 $1,087,164 4%Fare Recovery 103% 104% 1%

Regional Services

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Regional Marketing

FY16 Initiative:

Website

Development

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FY16 Personnel Costs

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Personnel costs represent 9% of the overall FY16 Agency Budget

FY16 Personnel Costs

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• Compensation change assumptions

Salary merit increases based on performance 3% over FY15 base, with departmental control

• Fringe Benefits held to 3% increase over FY15 base

Health Care plan design to hold costs within budget ASRS small decrease in rates 11.47% vs. 11.54%

• Salary Ranges adjusted upward by 2%

Ranges last adjusted in July 2007 Based on compensation study – 15 peer employers

Benchmarked more than 50 comparable positions

FY16 Personnel Costs

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Sixteen new agency positions: • IT network systems and security (2 FTE) • increased operations maintenance activities related to six new

miles of Rail Operations service (14 FTE)

FIVE YEAR PLAN OVERVIEW FY 2016 THROUGH FY 2020

Valley Metro RPTA

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Revenue Forecast - PTF

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Five Year Operating Assumptions

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• The Public Transportation Fund grows by approximately 4.5% annually

• Fares grow by 2% annually; with a fare increase assumed in FY17

• Paratransit ridership drives an 8.6% increase in number of trips delivered

• Operating Contracts three percent (3%) general • Fixed Route bus contract rates will rise • Evaluating impacts of labor agreements • Years FY17 and beyond will be updated

• Planning, Administration, and Regional Services costs annual inflated two percent (2%)

Forecast - Fixed Route Service and Funding Changes

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FY16 Enhance service on Route 72, Scottsdale/Rural Road Adjust service on the Main Street and Arizona LINKs due to the LRT extension

FY17 No service changes

FY18 Begin Route 104 Saturday service in Chandler

FY19 Begin PTF funding of Route 50 in Scottsdale

FY20 Begin PTF funding of the Avondale portion of Routes 562 and 563

Service Planning Working Group to bring proposed changes through Board Approval Process with Short Range Transit Plan

Five Year Operating Forecast - Revenues

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(thousands)5-YearTotal

RevenuesPublic Transportation Fund (ADOT) 733,932$ PTF Bond Proceeds 61,257 Less: Debt Service Bus & Rail (149,124) Less: Rail Capital Funding (current) (253,861)

Net PTF for Operations 392,204$

Other Regional Funds 25,749$ Federal Funds 41,119 Transit service reimbursements 165,486 Fare Revenues 96,527 Interest and other revenue 160

Total revenues 721,246$

Five Year Operating Forecast - Expenditures

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(thousands)5-Year

Expenditures TotalOperations

Fixed Route 447,265$ Paratransit - EVDAR 51,398 Alternative Trans. Ridechoice, NWDAR, MS 20,217 Vanpool Service 5,545 ADA 100,992

Total operations expenditures 625,417$

Transportation Demand Management 7,140$ Planning & Administration 24,594 Regional Services 41,731 Safety & Security 1,835 Operations Contingency 1,150

Total expenditures 701,867$

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0

20

40

60

80

100

120

140

FY16 FY17 FY18 FY19 FY20

Bus Fleet Purchases by Member City Five Year Plan FY16-FY20

Glendale Phoenix RPTA Scottsdale Tempe

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0

20

40

60

80

100

120

140

FY16 FY17 FY18 FY19 FY20

Vanpool Purchases by Type Five Year Plan FY16-FY20

Replacement Expansion

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$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

FY16 FY17 FY18 FY19 FY20

$ m

illio

ns

Facilities and Equipment Five Year Plan FY16-FY20

Facilities Equipment

FY16 Facilities and Equipment: Scottsdale/ Rural Road bus stop improvements and traffic signal priority Peoria Transit Center & PNR 59th Avenue and Laveen PNR North Glendale PNR 51 Bus APC installations Regional Communications Upgrade Fare Collection System Development State of Good Repair 34 Bus engine rebubilds/ 5 transmissions

Five Year Capital Program- Revenues

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Five Year Capital Program- Expenditures

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Fund Balance Projection

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Fund Balance Projection

End of Presentation

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Finance Division FY15 Q3 Report

Valley Metro Budget and Finance Subcommittee April 2, 2015

Valley Metro RPTA Operating Results – Q3

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Agency FTE's Budget vs. ActualFor the quarter ending March 31, 2015

3rd Quarter

Valley Metro Integrated Budget ActualVariance (Unfav.)

Staff (Full Time Equivalents) 296 264 32

RPTA Budget vs. Actual Report $ MillionsFor the quarter ending March 31, 2015

3rd Quarter Year to Date

Operations Expenditures Budget ActualVariance (Unfav.) Budget Actual

Variance (Unfav.)

Fixed Route Bus 20.3 19.0 1.3 60.8 58.8 2.0Paratransit 7.0 6.7 0.3 21.1 19.7 1.4Vanpool 0.2 0.1 0.1 0.6 0.5 0.1Regional Services 2.8 2.5 0.3 8.3 7.2 1.1Planning 0.9 0.2 0.7 2.8 1.6 1.2Administration 0.6 0.5 0.1 1.8 1.5 0.3METRO Rail (Salary, Fringe, OH) 3.9 3.5 0.4 11.8 11.2 0.6

Total Operations Expenditures 35.7 32.5 3.2 107.2 100.5 6.7

Open Positions Status

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Valley Metro Integrated AgencyFY 2015 Adopted Positions - Status Update

FY15 - Q2 FY15 - Q3

DivisionDecember

OpenMarch Open

Operations and Maintenance 16 21Administrative & Organizational Development 3 4Planning & Development 3 3Safety & Security 2 2Communication & Marketing 0 0Design & Construction 0 1Finance 0 1

Total Open Positions 24 328% 11%

Total Authorized Positions 296 296

Valley Metro RPTA Capital Results – Q3

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RPTA Budget vs. Actual Report $ MillionsFor the quarter ending March 31, 2015

3rd Quarter Year to Date

Capital Expenditures Budget ActualVariance (Unfav.) Budget Actual

Variance (Unfav.)

Bus PurchasesValley Metro 0.2 0.0 0.2 0.7 0.0 0.7Lead Agency 0.0 0.0 0.0 0.1 0.0 0.1

Paratransit VehiclesLead Agency 0.1 0.0 0.1 0.2 0.0 0.2

Vanpool Vehicles 0.5 0.0 0.5 1.6 0.0 1.6Other Capital 0.4 0.0 0.4 1.1 0.0 1.1METRO Rail 27.2 22.5 4.7 81.6 71.0 10.6

Total Capital Expenditures 28.4 22.5 5.9 85.2 71.0 14.2