MTA | Preliminary 2005 Budget and Financial Plan

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Transcript MTA | Preliminary 2005 Budget and Financial Plan

MTA 2006 Preliminary Budget

July Financial Plan 2006 – 2009

DJC

July 27, 2005 July Financial Plan 2006-2009

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State & Local Subsidies 7%

Where the Dollars Come From

Before Gap Closing and Other Actions 2005 2006

Farebox Revenue 43% State & Local Subsidies 7% Farebox Revenue 43% Dedicated Taxes 31% Toll Revenue 14% By Revenue Source (in millions)

Farebox Revenue Toll Revenue Other Revenue Dedicated Taxes State & Local Subsidies Total $3,623 1207 410 2,613 613 $8,466

Other Revenue 5%

Metropolitan Transportation Authority

Dedicated Taxes 30% Toll Revenue 15% Other Revenue 5% By Revenue Source (in millions)

Farebox Revenue $3,694 Toll Revenue 1,244 Other Revenue Dedicated Taxes 425 2,569 State & Local Subsidies Total 583 $8,515 July Financial Plan 2006-2009

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Other Expenses 2% Non-Labor Expenses 23%

Where the Dollars Go

Before Gap Closing and Other Actions 2005 2006

Other Expenses 2% Payroll 40% Non-Labor Expenses 22% Payroll 39% Debt Service 13% Pension 8% Health & Welfare 10% Overtime 4% By Expense Category (in millions)

Payroll Overtime Health & Welfare Pension Debt Service Non-Labor Expenses $3,375 353 806 643 1,080 1,917 Other Expenses Total

Expenses exclude depreciation.

161 $8,335 Metropolitan Transportation Authority

Debt Service 15% Pension 8% Health & Welfare 10% By Expense Category (in millions)

Payroll Overtime Health & Welfare $3,481 349 883 Pension Debt Service Non-Labor Expenses Other Expenses Total

Expenses exclude depreciation.

737 1,342 1,990 173 $8,955

Overtime 4%

July Financial Plan 2006-2009

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February Financial Plan

Closing Cash Balance Before Gap Closing and Other Actions ($ in millions) $500 $0 $466 $76 -$500 -$1,000 -$737 -$1,105 -$1,398 -$1,500 -$2,000 2004 2005 2006 2007 2008

The 2004 closing balance has been adjusted downward to $466 million to reflect the establishment of the $200 million Real Estate Stabilization Reserve.

Metropolitan Transportation Authority July Financial Plan 2006-2009

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July Financial Plan

Baseline Before Gap Closing and Other Actions ($ in millions) $1,000 $500 $0 -$500 -$1,000

$507 $833 $461 -$194 -$1,077 -$1,453

-$1,500 -$2,000 -$2,500 2004 2005 2006 2007 2008 2009

The 2004 closing balance has been adjusted downward to $507 million to reflect the establishment of the $200 million Real Estate Stabilization Reserve.

Metropolitan Transportation Authority July Financial Plan 2006-2009

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February vs. July Plans

Closing Cash Balances Before Gap Closing and Other Actions ($ in millions) $1,000 $500 $466 $507 $0 -$500 $76 $833 $461 -$737 -$1,000 -$1,500 -$2,000 2004 2005 Metropolitan Transportation Authority 2006 -$1,105

Closing Cash Balance, July Financial Plan Closing Cash Balance, February Financial Plan

-$194 -$1,398 -$1,077 -$1,453 2007 2008 2009 July Financial Plan 2006-2009

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July Financial Plan

Reasons for Baseline Net Improvements ($ in millions) 2005 February Plan Baseline Changes to the July Plan

Effect of 2004 Results Real Estate Tax Yields Debt Service New State Revenues (Sales, MRT, DMV) Service & Cleaning Enhancements 2005 Security Measures (MTA, B&T, NYPD) Additional Agency Changes / Other Change in Cash Balance from Previous Year

Total Changes July Plan Baseline $76

$85 365 128 170 (2) (10) (21) 42

$757 $833 2006 2007 2008 2009 ($737) ($1,105) ($1,398) ($1,751)

$0 31 59 457 (10) 0 (97) 757

$1,198 $461

$0 34 58 458 (10) 0 (90) 461

$911 ($194)

$0 52 29 415 (10) 0 (166) 0

$321 ($1,077)

$0 80 (24) 437 (10) 0 (187) 0

$297 ($1,454) Metropolitan Transportation Authority July Financial Plan 2006-2009

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Annual Real Estate Tax Collections

February Financial Plan Millions $1,200 Mortgage Recording Tax Urban Tax $1,000 $800 $600 $400 $200 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 February Financial Plan 2009

These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to suburban accounts.

Metropolitan Transportation Authority July Financial Plan 2006-2009

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Millions

Monthly Real Estate Tax Collections

February Financial Plan $140 Budget - MRT & Urban Actual - MRT & Urban $120 $100 $80 $60 $40 $20 $0 Jan Feb Mar Apr May Jun Metropolitan Transportation Authority Jul Aug Sep Oct Nov Dec July Financial Plan 2006-2009

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Millions

2005 Real Estate Tax Collections

February vs. July Financial Plan $1,200 Mortgage Recording Tax Urban Tax $996 $1,000 $800 $600 $400 $200 $421 $606 $227 $434 $631 $0 Feb Plan Actual Jan - June Feb Plan July Plan July - Dec Feb Plan July Plan Jan - Dec

These figures do not include the MRT-1 rate increase. The reduction for the suburban transfer allocation (net -$26 million change) is reflected in the annual figure but not in the first and second half of the year figures.

Metropolitan Transportation Authority July Financial Plan 2006-2009

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Annual Real Estate Tax Collections

July Financial Plan Millions $1,200 Mortgage Recording Tax Urban Tax $1,000 $800 $600 $400 $200 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 July Financial Plan 2009

These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to suburban accounts.

Metropolitan Transportation Authority July Financial Plan 2006-2009

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TUESDAY, JULY 26, 2005

“There is no sign of it ending anytime soon.”

Joshua Shapiro, Chief US Economist, MFR Inc.

Metropolitan Transportation Authority

“The longer bubbles are allowed to go unchecked the more painful they are.”

Stephen S. Roach, Chief Economist, Morgan Stanley

July Financial Plan 2006-2009

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New State Revenues

Changes Since February Plan ($ in millions) New Sales Tax Increase in MRT-1 New Motor Vehicle Fees Re-Estimate of Base Taxes State Appropriation of 2005 Tax Receipts Total Changes 2005 149 24 $0 (3) 0 $170

Favorable / (Unfavorable)

2006 184 46 $86 91 50 $457 2007 188 47 $71 102 50 $458 2008 190 47 $71 107 0 $415 2009 191 46 $71 129 0 $438 Metropolitan Transportation Authority July Financial Plan 2006-2009

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Debt Service

Changes Since February Plan ($ in millions) Refunding Savings Variable Rate Interest Savings Capital Expense Timing Cost of Issuance Savings Total Changes 2005 $8 76 18 26 $128 Favorable / (Unfavorable) 2006 $9 0 49 0 $59 2007 $9 0 49 0 $58 2008 $10 0 19 0 $29 2009 $10 0 (34) 0 ($24) Metropolitan Transportation Authority July Financial Plan 2006-2009

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Service & Cleaning Enhancements

Funded By Recurring Debt Service Savings ($ in millions) Debt Service Refunding Savings 2005 $8 2006 $9 2007 $9 2008 $10 2009 $10 NYCT Subway

Cleaning Initiatives: Track, Infrastructure and Stations

NYCT Bus / SIR

Additional Service to match increased SI Ferry Service

LIRR

Additional AM Peak Service and Early Afternoon Service from Penn Station

MNR

Expanded Late-Night Service

TOTAL:

$6.4

$0.3

$1.5

$1.5

$9.7

Metropolitan Transportation Authority July Financial Plan 2006-2009

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2005 Security Measures

Heightened MTA-Wide Security Costs in 2005: $10 million

Enhanced Police Visibility

NYPD, MTAPD and B&T BTO

Increase in Subway Station Personnel At Prime Locations Trained in Evacuation Procedures

Continued Employee and Customer Awareness Education

e.g. “See Something, Say Something” and “Eyes and Ears” Metropolitan Transportation Authority July Financial Plan 2006-2009

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Additional Agency Changes

Changes Since February Plan ($ in millions) Inflation and Energy Adjustments New Needs/Investments: Maintenance Other New Needs 2005 PEG Program Re-Forecast Toll/Farebox Revenue Baseline Re-Estimates Other Net Change to Baseline 2005 ($15) (26) (11) (3) 20 5 7 ($21) 2006 ($74) (71) (9) (20) 26 39 13 ($96) 2007 ($121) (42) (8) (11) 28 62 2 ($90) 2008 ($155) (85) (10) (12) 35 55 6 ($166) 2009 ($209) (75) (10) (11) 34 80 4 ($187) Metropolitan Transportation Authority July Financial Plan 2006-2009

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Reductions in Agency Budgets

July Financial Plan ($ in millions) 2006 2007 Baseline Re-Estimates $39 2006 PEGs $42 Baseline Re-Estimates $62 2007 PEGs $46 Total Savings: $81 Metropolitan Transportation Authority Total Savings: $108 July Financial Plan 2006-2009

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Examples of Agency PEGs

NYCT

– Health, Welfare Savings: Elimination of Ineligible Employees, Retirees & Dependents – Central Electronics Shop Productivity Savings from Streamlining Operations, Use of Technology & Consolidation

LIRR

– Revaluation of Right-Of-Way Leased Line Fees – Crew Efficiencies Stemming from Reduction in On-Board Ticket Sales

MNR

– Increase Revenue Collection Through Expansion of Ticket Vending Machine Network – Process Review for Productivity Savings

Metropolitan Transportation Authority July Financial Plan 2006-2009

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Examples of Agency PEGs (continued)

B&T

– Reduce Arrest Processing Overtime – Reduce Administrative Positions

MTAHQ

– Administrative Savings from Headcount and Contractual Service Reductions – Police Overtime Efficiencies

SIR

– Operational Efficiencies Result from New Rail Control Center in October 2005

Metropolitan Transportation Authority July Financial Plan 2006-2009

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Reinvestment Fund Proposed Amount: $481 million 2 Recommended Possible Uses:

Platform Over the West Side Rail Yards to Support Mixed-Use Development

Reduction in Pension Liabilities

Metropolitan Transportation Authority July Financial Plan 2006-2009

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July Financial Plan

With Gap Closing and Other Actions ($ in millions) July Plan Baseline Gap Closing Actions:

Reinvestment Fund Real Estate Tax Stabilization Account 2006 Program to Eliminate the Gap 2007 Increased Fare and Toll Yields 2009 Increased Fare and Toll Yields Change in Cash Balance from Previous Year

Total Changes July Plan Closing Cash Balance 2004 $507

$0 0 0 0 0 0

$0 $507 2005 $833

($481) 0 18 0 0 0

($463) $370 2006 $461

$0 200 42 0 0 (463)

($221) $239 2007 2008 ($194) ($1,077)

$0 0 46 241 0 (222)

$66 ($128)

$0 0 63 243 0 0

$306 ($771) 2009 ($1,453)

$0 0 73 244 256 0

$573 ($880)

The 2004 closing balance of $507 has been adjusted downward to reflect the establishment of the $200 million Real Estate Stabilization Reserve.

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July Financial Plan

Closing Cash Balance After Gap Closing and Other Actions ($ in millions) $1,000 $500 $0 -$500 -$1,000 -$1,500 $370 $239 -$128 Closing Cash Balance - After Gap Closing Actions * -$771 -$880 -$2,000 2005 2006 2007

* Includes additional 5% revenue increases in 2007 and 2009, consistent with prior plans.

2008 Metropolitan Transportation Authority 2009 July Financial Plan 2006-2009

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