Transcript Slide 1

MARTA Fiscal Challenge:
FY2009 and Beyond
January 2009
Realizing the Vision…
Greater investment in transit is necessary to “the
cultural, social, and economic well-being of the
people in the metropolitan area and the
development of the educational, commercial,
and industrial resources.”
---Sec. 3, The MARTA Act of 1965
MARTA at a Glance
9th largest transit system in the nation
36 years of experience (transit planning, design, construction
and operations)
Service area: Fulton and DeKalb Counties; the City of Atlanta;
Clayton County operator
500,000 + daily boardings
5,118 employees
FY09 Adopted Budget
– Operating - $395.46M
– Capital - $535.34M
MARTA at a Glance
RAIL SYSTEM
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38 stations;48 miles of track (double track)
3 rail yards (Avondale, South and Armour)
338 rail cars
Automatic Train Control and
SCADA System
• Traction Power Substations
BUS SYSTEM
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609 large bus, 15 small bus
131 bus routes
3 bus garages (Laredo, Perry and Hamilton)
1 heavy maintenance facility (Brownsmill)
MOBILTY (Paratransit)
• 175 L-Vans
• 1 garage (Brady Facility)
POLICE PRECINCTS
• 5 precincts (Lindbergh, College Park,
Kensington, Five Points, Dunwoody)
Who Serve?
Do We Serve?
Who Do We
Fulton & DeKalb County Residents
87%
Work trips*
School trips
54%
10%
No alternative transportation
46%
Male
51%
16-34 years of age
53%
High school diploma or some college
63%
Household income less than $30,000
63%
*C-Tran work trips – 61%
Source: 2008 Quality of Service Survey
MARTA Today
Ridership - Up
Fleet Reliability - Up
On-time Performance - Up
Safety Performance - Up
Security - Enhanced
Customer Satisfaction - Up
Financial Performance - Better Than FY2008 Budget
Transit Funding Needs
MARTA Financial Overview
WHERE DOES IT COME FROM?
FY09 Adopted Operating Revenues
($351.72M)
Other Transit
Related
$17.54M
4.99%
Lease Income
$5.80M
1.65%
Passenger
Revenue
$103.35M
29.38%
Preventive
Maintenance
Rev.
$41.79M
11.88%
Sales Tax
$183.24M
52.10%
MARTA Financial Overview
WHERE DOES IT GO?
FY09 Adopted Net Operating Expenditures
($395.46M)
Materials and
Supplies
$39.89M
10.09%
Other Non-Labor
$29.40M
7.43%
Contractual
Services
$20.55M
5.20%
Salaries and
Benefits
$305.62M
77.28%
FY09 Budget – Revenue Allocation
($Million)
Adopted
Budget
FY09
% of Total
183.24
103.35
286.59
52.1%
29.4%
81.5%
Other Transit Related Revenues
Interest on Capital Reserves
Lease Income
Transit Oriented Developmt. Revenue
Preventive Maintenance Revenue
Lease-to-Service Amoritzed Income
Other Revenue
11.45
2.23
1.57
4.23
41.79
3.86
65.13
3.3%
0.6%
0.4%
1.2%
11.9%
1.1%
18.5%
Current Year Operating Revenues
351.72
100.0%
50% Sales Tax
Passenger Revenues
Sales Tax & Passenger Rev.
MARTA FY09 Capital Program
WHERE DOES IT COME FROM?
Capital Revenue by Source
FY09 Adopted Capital Budget
($552.57M)
Prior Year
Carryover
$94.94M
(17.18%)
Financing
$170.00M
(30.77%)
Federal Grants
$110.21M
(19.95%)
Sales Tax
$174.08M
(31.50%)
Interest/State/
Private
$3.34M
(0.60%)
MARTA FY09 Capital Program
WHERE DOES IT GO?
Capital Expenditures by Type
FY09 Adopted Capital Budget
($532.22M)
System Expansion
$10.73M
2.02%
Regulatory
Requirements
$6.12M
1.15%
State of Good Repair
$311.09M
58.45%
Service
Enhancements
$46.13M
8.67%
Planning
$12.39M
2.33%
Debt Service
$145.76
27.38%
MARTA Financial Overview
Original Budget Projection
(as of June 2007 – FY07 Un-audited)
Revised Sales Tax Forecast - A
Source: Georgia State University Economic Forecasting Center (GSUEFC)
Operating Budget Projections
(FY08 – FY11 Revised – “AS IS”) *
($Million)
* Georgia State University Economic Forecasting Center Report
(September 2008)
FY09/FY10 Reduction
Target
Revised Sales Tax Forecast - B
Source: Georgia State University Economic Forecasting Center (GSUEFC)
Operating Budget Projections
(FY08 – FY11 Revised – “AS IS”) *
($Million)
Actual
FY08
Current Year Operating Revenues
Preliminary
Forecast Projection
Adopted
FY09
FY09
FY10
FY11
357.11
351.72
333.02
323.18
322.13
4.4%
-1.5%
-6.7%
-3.0%
-0.3%
363.99
395.46
400.26
417.84
436.32
11.6%
8.6%
10.0%
4.4%
4.4%
Impact on Reserves
(6.88)
(43.74)
(67.24)
(94.66)
(114.18)
Sales Tax Carryover
136.87
102.29
77.80
(16.86)
(131.04)
MARTA Act Reserves
(34.19)
(35.71)
(35.71)
(33.30)
(32.32)
Available Reserves
102.68
66.58
42.09
(50.16)
(163.36)
% Increase/Decrease
Net Operating Expenditures
% Increase/Decrease
* Georgia State University Economic Forecasting Center Report (December 2008)
Major Challenges: FY2009 and Beyond
Severe Economic Downturn
– Local Sales Tax Receipts Down (52% of MARTA Operating Revenues)
Inadequate State, Regional/Local Transit Funding
Federal Transportation Funds Depleted
– SAFETEA-LU expires 9/30/2009
Regional Transit Expansion Plan Unfunded
Transit Deficit Reduction Strategies
Internal Productivity
and
Cost Containment
Fare Changes
New Revenue
Sources
Reduce Transit
Service Levels
Average Cost Per Trip
Average Cost
Per Trip
Bus
Rail
Paratransit
Average Cost
Farebox Recovery
(%)
Subsidy
(%)
$ 2.53
27.3
72.7
2.69
27.3
72.7
2.21
29.4
71.6
39.99
3.5
96.5
Potential Deficit Reduction Impacts
System-wide Transit Fare Increase
Increase Parking Fees
Severe Transit Service Cuts
Employee Layoffs/Furloughs
Jeopardize Future Federal Transit Funding
─ Ability to operate and maintain existing services
─ Adequate project contingency and reserves
─ Demonstrate “technical capacity”
MARTA Fare Change History
Date
Base Fare
May 1980
July 1980
July 1981
July 1985
June 1987
July 1988
July 1990
June 1992
July 1995
March 1997
Jan 2001
Today
$0.25
$0.50
$0.60
$0.60
$0.75
$0.85
$1.00
$1.25
$1.50
$1.50
$1.75
$1.75
Passes
Monthly
Weekly
$10
$17
$21
$25
$28
$32
$35
$43
$45
$45
$52.50
$52.50
$4
$5
$6
$7
$8
$9
$11
$12
$12
$13
$13
Paratransit
Fare
$0.50
$1.00
$1.20
$1.20
* $1.50
* $1.70
* $2.00
* $2.50
* $3.00
* $3.00
* $3.50
* $3.50
* Paratransit was outsourced to DAVE Transportation from 1987 until 1997
Transit Service and Price Changes
Transit Fares
• MARTA is considering increasing it’s base fare by 25¢ from
$1.75 to $2.00 per trip.
• The fare change will also result in increases to the prices of
multi-trip and time-based passes purchased on Breeze
Cards and Breeze Tickets.
• Three fare change scenarios – A, B, and C – are being
considered.
Note: Pass prices based on the pass multiple
“X” (i.e., X times the base fare).
Transit Service and Price Changes
Transit Fares - Scenario A
• Base fare increases by 25¢ from $1.75 to $2.00 per trip.
• 7-Day/Calendar Weekly Pass increases from $13.00 to $15.00.
• 30-Day/Calendar Monthly Pass increases from $52.50 to $60.00.
• Estimated annual net revenue generated by the fare change is
approximately $6.4 million.
• Estimated loss of approximately 12.7 million annual passenger
boardings*.
*Monetary loss based on predicted decrease in ridership due to fare increase and historical forecasted
indicators such as unemployment, inflation and service levels.
Transit Service and Price Changes
Transit Fares - Scenario B
• Base fare increases by 25¢ from $1.75 to $2.00 per trip.
• 7-Day/Calendar Weekly Pass increases from $13.00 to $15.00.
• 30-Day/Calendar Monthly Pass increases from $52.50 to $64.00.
• Estimated annual net revenue generated by the fare change is
approximately $7.1 million.
• Estimated loss of approximately 14.4 million annual passenger
boardings*.
*Monetary loss based on predicted decrease in ridership due to fare increase and historical forecasted
indicators such as unemployment, inflation and service levels.
Transit Service and Price Changes
Transit Fares - Scenario C
• Base fare increases by 25¢ from $1.75 to $2.00 per trip.
• 7-Day/Calendar Weekly Pass increases from $13.00 to $17.00.
• 30-Day/Calendar Monthly Pass increases from $52.50 to $68.00.
• Estimated annual net revenue generated by the fare change is
approximately $9.4 million.
• Estimated loss of approximately 20.9 million annual passenger
boardings*.
*Monetary loss based on predicted decrease in ridership due to fare increase and historical forecasted
indicators such as unemployment, inflation and service levels.
Transit Service and Price Changes
Parking Fees - Scenario A
• Daily parking rates increase from $1.00 to $5.00, Monday
through Sunday (7 days per week).
• Long-term parking rates increase from $1.00 to $5.00,
Monday through Sunday, (7 days per week).
• Estimated annual net revenue generated @ a 50% occupancy
level and a parking fee of $1.00 is approximately $2 million.
Transit Service and Price Changes
Parking Fees – Scenario B
• Daily parking rates increase from $1.00 to $5.00, Monday
through Friday (5 days per week).
• Long-term parking rates increase to $4.00 for Inner Stations
and $7.00 for End of Line Stations, Monday through Sunday
(7 days per week).
• Estimated annual net revenue generated @ a 50%
occupancy level and a parking fee of $1.00 is approximately
$2.2 million.
Transit Service and Price Changes
Parking Fees – Scenario C
• Daily parking rates increase from $1.00 to $5.00, Monday
through Sunday (7 days per week).
• Long-term parking rates increase to $4.00 for Inner Stations
and $7.00 for End of Line Stations, Monday through Sunday
(7 days per week).
• Estimated annual net revenue generated @ a 50%
occupancy level and a parking fee of $1.00 is approximately
$3.4 million.
Transit Service and Price Changes
Parking Fees
• Currently, daily parking is free and long-term parking
costs between $4.00 and $7.00 per day at MARTA rail
stations.
• MARTA is considering changing its parking fee
structure and increasing the rates charged per day.
• Three scenarios – A, B, and C – are being considered.
• Within each scenario, the daily parking fee options
being considered range from $1.00 to $5.00 per day.
Transit Service and Price Changes
Service Considerations
• Unproductive Service
• Preservation of service on all identified “Lifeline” routes.
Routes can be modified to maintain minimum service.
• Adjustment to hours of service based on ridership
• Low-performing segments of routes (maintain service in
critical areas.
• Duplicative routes and segments
• Reduce weekday service to peak-only where off-peak
service productivity is low.
• Saturday and/or Sunday service on routes with low
performance when compared to similar services.
MARTA 2009 Legislative Agenda
Eliminate 50% capital and 50% operations sales tax split requirement
The original intent of this provision was to ensure that capital funds would be available
to build the system at the outset. Additionally, at the time this was enacted public
transit organizations received significant annual federal operating assistance, which is
no longer the case for large and mid-size transit systems like MARTA.
Permit interest income from capital reserves to be used for operations
MARTA has been in the past authorized to use interest earnings on its capital reserve
accounts for the Authority’s operating expenses, with the General Assembly
authorizing such use in 1989, 1991, 1994, 1996, 2000, 2003 and 2006. The 2006
legislation allowed such use only through June 30, 2008.
Amend “Zero Tolerance” provision (permit food and drink in MARTA rail and
intermodal facilities) - - not on board trains or buses
Major Opportunities: FY2009 and Beyond
Transportation Infrastructure Investment Key to Economic Stimulus
Linkage of Transportation, Environmental and Energy Policies
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─
─
─
Jobs Creation and Economic Competitiveness
Environmental Sustainability
Energy Independence and Homeland Security
Quality of Life (Healthy Communities and Lifestyles)
The Public “Gets It”!
– Transit Ridership Growth
– State, Regional & Local Polls
– National Transit Referenda
The State of Georgia and Atlanta Region Must Move Now!
Decision-Making Timeline
Timeframe
December 2008
Event(s)
– MARTA implements cost containment measures; Board approves State
Legislative “Financial Relief” Package; directs FY 2010 Budget Deficit
Reduction (i.e., possible fare increases, parking changes, service cuts) as
last resort
– Stakeholder Organization Briefing
– Media Briefing
January 2009
– 1st Community Forum/Listening Sessions; Employee Meeting; Expanded
EDAAC Meeting
– MARTA Community Survey
– State Legislative Session Commences (1/12/09) – MARTA Legislative
requests; various transportation funding bills (“Get Georgia Moving”
Coalition)
January 29, 2009
– MARTA Board Business Management Committee (FY 2010 Budget
Development Work Plan)
February 11, 2009
– Annual “State of MARTA” General Assembly Presentation
February - March 2009
– MARTA staff attend local community/stakeholder meetings
Decision-Making Timeline
Timeframe
Event(s)
February 23, 2009
– MARTA Board Business Management Committee (FY 2010 Budget
Development Update)
March 30, 2009
– MARTA Board Business Management Committee (FY 2010 Budget
Development Update)
March - April 2009
– 2nd Round Community Meetings (State Legislation Status; Results of
Community Meetings & Survey Input; Update Financial Status; ID
Preliminary Findings & FY 2010 Budget Recommendations
April 6, 2009
– MARTA Staff Presents FY 2010 Budget Proposal to MARTA Board
April 28, 2009
– MARTA Board Business Management Committee (FY 2010 Budget
Proposed Budget)
May 11-12, 2009
– MARTA Board Holds FY 2010 Budget Public Hearings
May 27, 2009
– MARTA Board Business Management Committee (FY 2010 Recommended
Budget)
June 8, 2009
– MARTA Board Adopts FY 2010 Budget
Contact Us
Community Hotline
404-848-5026
or
Website
www.itsmarta.com
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