Finance & Administration Committee

Information Item IV-A

March 8, 2012

Capital and Operating Budget Discussions

TITLE:

Operating & Capital Budget Discussion

PURPOSE:

To provide additional information to the Finance & Administration Committee regarding FY2012 financial performance and Board member requests concerning the FY2013 Proposed Budget.

DESCRIPTION:

During the FA Committee meeting held on February 2, 2012, the Board inquired about the operating and capital FY2013 proposed budget and current financial performance. This presentation will provide an update on the FY2012 second quarter financial performance of the operating budget. In addition, this informational presentation will focus on FY2013 capital staffing costs, Silver line fare update and the FY2013 multi-year initiatives. It will also review Metro's multi-year financial and business planning.

FUNDING IMPACT:

No funding impact. These discussions will assist to inform the Board about the FY2013 budget due for Board approval in June 2012.

RECOMMENDATION:

This is for information purposes only; a recommendation is not applicable.

Washington Metropolitan Area Transit Authority

Board Action/Information Summary

Action Information MEAD Number: Resolution: Yes No

Operating & Capital Budget Discussion Finance and Administration Committee March 8, 2012

Washington Metropolitan Area Transit Authority

Committee Requests

FY2012 Financial Performance

• Second Quarter Financial Update

FY2013 Budget Discussion • Capital Staffing Costs

• Silver Line Fare Update

• 2013 - Multi Year Initiatives

Business Planning

FY2012 Operating Budget

Q2-FY11Actuals Actual Budget $ Percent

Revenue 191$ 191$ 193$ (3)$ -1%

Expense 356$ 346$ 365$ 19$ 5%

Subsidy 165$ 155$ 172$ 17$ 10%

Cost Recovery 54% 55% 53%

FY2011Actual Actual Budget $ Percent

Revenue 395$ 397$ 401$ (4)$ -1%

Expense 714$ 711$ 731$ 20$ 3%

Subsidy 319$ 314$ 330$ 17$ 5%

Cost Recovery 55% 56% 55%

FY2012

Q2-FY12Q2

YTD

Variance FY12

Variance FY12

$100M

$105M

$110M

$115M

$120M

$125M

$130M

$135M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

FY2012 Operating Expenses

FY12 Budget

FY11 Actual

FY12 Actual

FY2012 Operating Revenue

$55M

$60M

$65M

$70M

$75M

$80M

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

FY12 Budget

FY11 Actual

FY12 Actual

8

10

12

14

16

18

20

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

in M

illio

ns

Bus Budget

FY2012 Rail and Bus Ridership

Rail -0.9% -4.3% -0.3% -3.5% 1.8% 0.1% Bus 7.7% 5.0% 5.0% 8.4% 8.6% 16.3%

Monthly Variance

Rail

Actual

FY2013 Budget Discussion

• Capital Staffing Costs

• Silver Line Fare Update

• 2013 - Multi Year Initiatives

Historical Capital Program Costs

0

100

200

300

400

500

600

700

800

900

1,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13

$ in

Mill

ions

Metro Labor Costs

Rolling Stock Equipment and Materials Construction Contracts

Capital Staffing Discussion

2013 Staff Configuration Track and Structures Repair 247 Systems Rehabilitation 180 Station Rehabilitation 106 Engineering, Inspection, Program Mgmt. 326 Bus Rehabilitation 190 Railcar Rehabilitation 86 Information Technology 64 Procurement 24 Planning, Support and Oversight 51 Total Capital Program Headcount 1,274 Work accomplished by Metro Staff Track Production Automatic Train Control Production Power Cable Replacement Track Circuit Replacement Facility Repair Engineering/Design Support Contract Inspection/Escort Bus and Rail Rehabilitation

859 Infrastructure

2013 Bus Rehabilitation Program $30.9 Million

Bus Average Fleet Age and Mean Distance Between Failures

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0

2

4

6

8

10

12

03 04 05 06 07 08 09 10 11 12

Mean Distance Between Failures

Average Age of the Fleet

Age

in Y

ears

Dis

tanc

e in

Mile

s

Fiscal Years

Customer Benefits • Improves Safety • Improves service reliability by

reducing service interruptions

Scheduling Track Work

• Planning for multiple areas of track work is accomplished two months in advance

• Determining force account versus contractor is based upon type of work, scope and size of work zone

• Example - March 18 shutdown from Rockville Metrorail Station to Shady Grove Station • NTSB recommended track circuit replacement • Work performed by contractor with Metro force account oversight • Large work zone presents the opportunity to supplement work

• Customer Benefits • Improves safety • Improves service reliability by reducing service interruptions

• Impact of Proposed Fare Increase on Silver Line • Estimated passenger average fare: $3.00 increases to $3.26 • Minimal ridership impact on Silver Line trips • Passenger fare revenue: additional $1.1 million in FY2014 and $2.2 million in

FY2015

Silver Line Phase I Estimated Impacts of Fare Proposal

FY2014 (6 Months Service)

FY2015 (12 Months Service)

Original Estimate

GM’s Fare Proposal Var

Original Estimate

GM’s Fare Proposal Var

Fare Revenue of New Passenger Trips $13.5 $14.8 $1.3 $27.0 $29.6 $2.6

Add’l Fare of Current Passeng. who switch to Silver Line 2.0 1.8 (0.2) 4.1 3.6 (0.5)

Total Revenue 15.5 16.6 1.1 31.1 33.2 2.2

Operating Expenses 45.0 45.0 0.0 47.0 47.0 0.0

Gross Subsidy Total $29.5 $28.4 ($1.1) $16.0 $13.8 ($2.2)

Farebox Recovery 35% 37% 7% 66% 71% 7%

Multi-year Initiatives FY2013-2015 Impact

CATEGORY 2013 BUDGET

2014 PLAN

2015 PLAN

Safety and Security $17.3M $18.1M $18.7M

System Improvements 5.0M 10.5M 10.7M

Maintenance 12.7M 13.0M 13.4M

Operational System Maintenance

0.0M 3.2M 3.5M

Total Request $35.0M $44.8M $46.9M

• Will return to FA Committee in April with multi-year financial plans • Cost/growth Assumptions used in producing multi-year budgets will be provided

Business Planning Process

APPENDIX

ID Project Manager &Office Contact #

ProjectId

Outage Type Task Name RSA Location Start Finish Start Time FinishTime

0 Single Tracking Operations Sun 2/19/12 Thu 12/27/12

1 Red Line Red Line Tue 2/21/12 Thu 12/27/12

2 TSSM Track & Structures Fri 3/9/12 Mon 7/2/12

3 Tony Talley(202) 962-5124

RL252 Total Shutdown Tk. Maint. & Prod.-Rail, Fastener & Insulator Renewal,Struc.-Grout Pad Repair, Cat Walk Repair, Leak Work &Drain/Track Bed Clean-up & Neutral Host-Fiber Clic & Pull(10pm Friday to 4am Monday)

Dupont Circle (A03) to VanNess (A06) (NOTE: Dupont

Circle (A03) and VanNess-UDC (A06) will remain

in service.)

Fri 3/9/12 Mon 3/12/12 10PM 4AM

5 Mike Thomas(202) 962-5087

RL184 Nightshift Early Outs10PM Track Access

Prod. & Tk. Maint.-Fastener Renewal Trk 1(Early Outs 10pm to 4:30am)

Friendship Heights (A08) toMedical Center (A10)

Sun 3/25/12 Thu 5/24/12 10PM 4:30AM

14 Mike Thomas(202) 962-5087

RL256 Total Shutdown Prod.-Rail, Ties, Fastener & Insulator Renewal & Tamping,Struc.-Grout Pad Renewal, IRPG.-Platform Rehabilitation & ETSCable Replacement(10pm Friday to 4am Monday)

Rhode Island Avenue (B04)to Silver Spring (B08)(NOTE:Rhode Island Avenue (B04)& Silver Spring (B08) will

remain in service.)

Fri 4/20/12 Mon 4/23/12 10PM 4AM

15 Tony Talley(202) 962-5124

RL294 Nightshift Early Outs10PM Track Access

Contractor-GW Peoples & Prod.-Rail & Fastener Renewal Trk 2(Early Outs 10pm to 4:30am)

Dupont Circle (A03) to VanNess-UDC (A06)

Mon 4/23/12 Thu 4/26/12 10PM 4:30AM

17 Tony Talley(202) 962-5124

RL280 Weekend SingleTracking

Tk. Maint.-Rail & Fastener Renewal & Prod.-Joint EliminationTrk 2(10pm Friday to 4am Monday)

Dupont Circle (A03) to VanNess-UDC (A06)

Fri 4/27/12 Mon 5/14/12 10PM 4AM

42 IRPG IRPG Tue 2/21/12 Mon 8/27/12

43 Doug Simkins(202) 962-1238

RL283 Nightshift Early Outs8PM Track Access

IRPG-ATP Track Circuit Replacement (Per NTSBRecommendation) & Contractor-GW Peoples-Rail & FastenerRenewal Trk 2(Early Outs 8pm to 4am)

Van Ness-UDC (A06) toMedical Center (A10)

Tue 2/21/12 Thu 3/22/12 8PM 4AM

46 Doug Simkins(202) 962-1238Kenny Spain(202)-962-6038

RL287 Nightshift Early Outs10PM Track Access

IRPG-Cable Trough/Cable Installation & Station PlatformRehabilitation Trk 1&3(Early Outs 10pm to 4am)

Takoma (B07) to ForestGlen (B09)

Tue 2/21/12 Thu 3/15/12 10PM 4AM

50 Doug Simkins(202) 962-1238

RL307 Weekend SingleTracking

IRPG-ATP Track Circuit Module Replacement Trk 1(Per NTSB Recommendation)(10pm Friday to 4am Monday)

Twinbrook (A13) to ShadyGrove (A15)

Fri 2/24/12 Mon 2/27/12 10PM 4AM

51 Doug Simkins(202) 962-1238

RL306 Nightshift Early Outs8PM Track Access

IRPG-ATP Track Circuit Replacement Trk 1(Per NTSB Recommendation)(Early Outs 8pm to 4am)

Grosvenor (A11) toTwinbrook (A13)

Mon 2/27/12 Thu 3/1/12 8PM 4AM

52 Doug Simkins(202) 962-1238

RL254 Total Shutdown IRPG-ATP Track Circuit Module Replacement (Per NTSBRecommendation) & Prod. & Contractor-Tie & Insulator Renewal& Prod.-Tamping(10pm Friday to 4am Monday)

White Flint (A12) to ShadyGrove (A15) (NOTE: WhiteFlint (A12) will remain in

service.)

Fri 3/2/12 Mon 3/5/12 10PM 4AM

53 Doug Simkins(202) 962-1238

RL321 Nightshift Early Outs8PM Track Access

IRPG-ATP Track Circuit Module Replacement Trk 1(Per NTSB Recommendation)(Early Outs 8pm to 4am)

Twinbrook (A13) to ShadyGrove (A15)

Mon 3/5/12 Thu 3/8/12 8PM 4AM

55 Doug Simkins(202) 962-1238

RL322 Nightshift Early Outs8PM Track Access

IRPG-ATP Track Circuit Replacement & Prod.-Fastener RenewalTrk 1 (Per NTSB Recommendation)(Early Outs 8pm to 4am)

Van Ness-UDC (A06) toMedical Center (A10)

Tue 3/13/12 Thu 3/15/12 8PM 4AM

57 Doug Simkins(202) 962-1238

RL255 Total Shutdown IRPG-ATP Track Circuit Module Replacement (Per NTSBRecommendation) & Prod. & Contractor-Tie & Insulator Renewal& Prod.-Tamping(10pm Friday to 4am Monday)

Rockville (A14) to ShadyGrove (A15) (NOTE:

Rockville (A14) will remainin service.)

Fri 3/16/12 Mon 3/19/12 10PM 4AM

58 Kenny Spain(202)-962-6038

RL355 Weekend SingleTracking

IRPG-Platform Rehabilitation Trk 1(8pm Friday to 4am Monday)

Takoma (B07) to SilverSpring (B08)

Fri 4/27/12 Mon 7/2/12 8PM 4AM

68 Doug Simkins(202) 962-1238

RL351 Nightshift Early Outs10PM Track Access

IRPG-Cable Installation/TCR Testing Trk 2&3(Early Outs 10pm to 4am)

Takoma (B07) to ForestGlen (B09)

Mon 4/30/12 Thu 8/9/12 10PM 4AM

72 Kenny Spain(202)-962-6038

RL356 Nightshift Early Outs8PM Track Access

IRPG-Platform Rehabilitation Trk 1(Early Outs 8pm to 4am)

Takoma (B07) to SilverSpring (B08)

Mon 4/30/12 Thu 6/28/12 8PM 4AM

113 JDAC ESCV/JDAC Fri 2/24/12 Thu 12/27/12

114 Thomas P. Crone(301) 618-1016

RL319 Weekend SingleTracking

JDAC-Contractor-Fort Myer Construction-Bridge Pier Work &IRPG-ETS Installation Trk 1 (NOTE: This is a DDOT project.)(10pm Friday to 4am Monday)

New York Avenue (B35) toRhode Island Avenue (B04)

Fri 2/24/12 Mon 7/2/12 10PM 4AM

125 Thomas P. Crone(301) 618-1016

RL227 Nightshift Early Outs10PM Track Access

JDAC-Contractor-Fort Myer Construction-Bridge Pier WorkTrk 1 (NOTE: This is a DDOT project.)(Early Outs 10pm to 4am)

New York Avenue (B35) toRhode Island Avenue (B04)

Mon 3/5/12 Thu 12/27/12 10PM 4AM

Red Line

3/9Total Shut Down

3/25Early Outs 10pm to 4:30am

4/1 4/8Early Outs 10pm to 4:30am

4/15 4/30Early Out

4/20Total Shut Down

4/23Early Outs 10pm to 4:30am

4/27Weekend Single Trac

IRPG

8pm to 4am3/19

Early Outs 8pm to 4am

10pm to 4am2/27 3/12

Early Outs 10pm to 4am

2/24Weekend Single Tracking

2/27Early Outs 8pm to 4am

3/2Total Shut Down

3/5Early Outs 8pm to 4am

3/13Early Outs 8pm to 4am

3/16Total Shut Down

4/27Weekend Single Trac

4/30Early Ou

4/30Early O

2/24Weekend Single Tracking

3/5Early Outs 10pm to 4am

3/19Early Outs 10pm to 4am

3/25 4/2Early Outs 10pm to 4am

4/8 4/15Early Outs 10pm to 4am

4/23

W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M2 Feb 26, '12 Mar 4, '12 Mar 11, '12 Mar 18, '12 Mar 25, '12 Apr 1, '12 Apr 8, '12 Apr 15, '12 Apr 22, '12 Apr 29

Task Red Tag Outage

Task Super. Outage

Split

Progress

Milestone

Summary

Project Summary

External Tasks

External Milestone

Deadline

SSRM

CONS/IRPG

Department of Transit Infrastructure and Engineering ServicesOffice of Track & Structures, System Maintenance

Single Tracking & Shut Down Operations February 2012 to April 2012

Blue text indicates multiple crew work area with no physical barrier between adjacent tracks. PRIORITIES ARE SUBJECT TO CHANGEPage 1

Project: Single Tracking OperationsDate: Wed 2/22/12

metrobusTop 10 US Bus Transit Operating Cost, 2010

Maintenance Cost per Mile Maintenance Expenditures 

Annual Maintenance  Cost per Bus  NY City:

CA:NJ:IL:

MTA New York City Transit(NYCT)Los Angeles County Metropolitan Transportation Authority(LACMTA)New Jersey Transit Corporation(NJ TRANSIT)Chicago Transit Authority(CTA)

Tuesday, January 03, 2012

5.89

 

4.77

 

4.13

 

3.39

 

3.05

 

2.74

 

2.72

 

2.69

 

2.53

 

2.48

 

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

NY City NY State

IL PA DC FL TX CA WA NJ

680 

260 

248 

227 

168 

153 

145 

104 

101 

94 

$0

$100

$200

$300

$400

$500

$600

$700

NY City CA IL NJ NY State

PA DC TX WA FL

Millions

149.75

 

0 $120

$140

$160

DC:PA:

NY State:WA:TX:FL:

State BusCount Miles MechWages FBenefits Services Materials tires fuel Total CPMNY City 4538 115,398,189       248,439,716     212,464,900 18,872,203       82,919,584     8,673,482     108,191,623 679,561,508   5.89               NY State 1347 35,247,849         62,871,310       52,317,174                  21,733,838     2,414,872     28,634,964   167,972,158   4.77               IL 2056 59,940,922         58,258,805       42,920,694 2,383,261          38,230,451     3,039,230     102,970,878 247,803,319   4.13               PA 1409 45,027,501         42,037,736       32,860,590 1,193,398          20,660,396     2,241,524     53,708,143   152,701,787   3.39               DC 1482 47,560,420         44,443,097       30,964,848 3,958,988          26,027,187     4,723,509     34,972,177   145,089,806   3.05               FL 902 34,508,219         29,789,622       14,711,833 9,793,703          12,564,104     4,176,496     23,388,523   94,424,281     2.74               TX 1017 38,330,213         25,879,721       17,277,494 569,964             11,585,527     2,418,532     46,361,425   104,092,663   2.72               CA 2529 96,705,636         84,995,634       60,851,781 612,704             48,315,092     6,230,022     59,311,443   260,316,676   2.69               WA 1178 39,989,680         29,941,959       21,557,301 738,531             23,076,451     2,764,645     23,247,803   101,326,690   2.53               NJ 2146 91,270,379         62,759,987       46,284,173 1,942,200          53,308,580     4,276,269     58,168,525   226,739,734   2.48               

Miami‐Dade Transit(MDT)

g y( )Washington Metropolitan Area Transit Authority(WMATA)Southeastern Pennsylvania Transportation Authority(SEPTA)MTA New York Bus Company(MTABUS)King County Department of Transportation(King County Metro)Metropolitan Transit Authority of Harris County, Texas(Metro)

124.70

120.53

108.38

 

105.66

 

104.68

 

102.93

 

102.35

 

97.90 

86.02 

$0

$20

$40

$60

$80

$100

NY City NY State

IL PA WA FL TX CA NJ DC

Thou

sand

s

2.3103

2.2290

1.9482

1.6779

1.6596

1.6139

1.6074

1.5891

1.3801

1.2612

0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

WA IL FL NJ PA CA DC TX NY NY

Bus to Mechanic Ratio

State FullName ActiveFleet Mech Count BustoMechRatioWA King County Department of Transportation ‐ Metro Transit Division(King County Metro) 1,178 510 2.3103IL Chicago Transit Authority(CTA) 2,056 922 2.2290FL Miami‐Dade Transit(MDT) 902 463 1.9482NJ New Jersey Transit Corporation(NJ TRANSIT) 2,146 1,279 1.6779PA Southeastern Pennsylvania Transportation Authority(SEPTA) 1,409 849 1.6596CA Los Angeles County Metropolitan Transportation Authority(LACMTA) 2,529 1,567 1.6139DC Washington Metropolitan Area Transit Authority(WMATA) 1,482 922 1.6074TX Metropolitan Transit Authority of Harris County, Texas(Metro) 1,017 640 1.5891NY MTA Bus Company(MTABUS) 1,347 976 1.3801NY MTA New York City Transit(NYCT) 4,538 3,598 1.2612

WA IL FL NJ PA CA DC TX NY NY

metrobusTOP 10 US Bus Transit Fleets, 2010

State Locale MDBFNJ New Jersey Transit Corporation(NJ  6,544DC Washington Metropolitan Area  6,053TX Metropolitan Transit Authority of  5,922NY MTA New York City Transit(NYCT) 5,741PA Southeastern Pennsylvania  4,711IL Chicago Transit Authority(CTA) 3,369FL Miami‐Dade Transit(MDT) 3,189CA Los Angeles County Metropolitan  3,085WA King County Department of  3,077NY MTA Bus Company(MTABUS) 2,686

State Locale Failure Per BusCA Los Angeles County Metropolitan  15.01WA King County Department of  13.94FL Miami‐Dade Transit(MDT) 13.24NY MTA Bus Company(MTABUS) 11.76IL Chicago Transit Authority(CTA) 10.42PA Southeastern Pennsylvania  7.82NJ New Jersey Transit Corporation(NJ  7.61TX Metropolitan Transit Authority of  7.51DC Washington Metropolitan Area  6.33NY MTA New York City Transit(NYCT) 5.17

State Locale miler Per BusNJ New Jersey Transit Corporation(NJ  49,793CA Los Angeles County Metropolitan  46,293TX Metropolitan Transit Authority of  44,467WA King County Department of  42,907FL Miami‐Dade Transit(MDT) 42 238

Wednesday, January 04, 2012

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

CA WA FL NY IL PA NJ TX DC NY

Failure Per Bus

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

NJ DC TX NY PA IL FL CA WA NY

MDBF

40,000

50,000

60,000

Miles per Bus

FL Miami‐Dade Transit(MDT) 42,238DC Washington Metropolitan Area  38,293PA Southeastern Pennsylvania  36,847IL Chicago Transit Authority(CTA) 35,115NY MTA Bus Company(MTABUS) 31,584NY MTA New York City Transit(NYCT) 29,704

State Locale Fleet AgePA Southeastern Pennsylvania  12.5NJ New Jersey Transit Corporation(NJ  11.5NY MTA Bus Company(MTABUS) 11.5CA Los Angeles County Metropolitan  11.3TX Metropolitan Transit Authority of  10.9NY MTA New York City Transit(NYCT) 10.3DC Washington Metropolitan Area  9.9WA King County Department of  9.3FL Miami‐Dade Transit(MDT) 8.6IL Chicago Transit Authority(CTA) 6.3

State MILES Veh Oper at Max Service Total FailuresNY MTA New York City Transit(NYCT) 115,398,189 3,885 20,102CA Los Angeles County Metropolitan Transportation Authority(LACMTA) 96,705,636 2,089 31,351NJ New Jersey Transit Corporation(NJ TRANSIT) 91,270,379 1,833 13,947IL Chicago Transit Authority(CTA) 59,940,922 1,707 17,794DC Washington Metropolitan Area Transit Authority(WMATA) 47,560,420 1,242 7,857PA Southeastern Pennsylvania Transportation Authority(SEPTA) 45,027,501 1,222 9,557NY MTA Bus Company(MTABUS) 35,247,849 1,116 13,124WA King County Department of Transportation ‐ Metro Transit Division(King County Metro) 39,989,680 932 12,995TX Metropolitan Transit Authority of Harris County, Texas(Metro) 38,330,213 862 6,472FL Miami‐Dade Transit(MDT) 34,508,219 817 10,820

Source: National Transit Database (NTD), Annual 2010

Locale

0

10,000

20,000

30,000

40,000

50,000

NJ CA TX WA FL DC PA IL NY NY

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

PA NJ NY CA TX NY DC WA FL IL

Fleet Age  in 2010