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 $200 million Real Estate Stabilization Reserve.
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February vs. July Plans
Closing Cash Balances Before Gap Closing and Other Actions ($ 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.
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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
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2005 Security Measures
Heightened MTA-Wide Security Costs in 2005: $10 million
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Enhanced Police Visibility
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NYPD, MTAPD and B&T BTO
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Increase in Subway Station Personnel At Prime Locations Trained in Evacuation Procedures
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Continued Employee and Customer Awareness Education
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e.g. “See Something, Say Something” and “Eyes and Ears” Metropolitan Transportation Authority July Financial Plan 2006-2009
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Additional Agency Changes
Changes Since February Plan ($ 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
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NYCT
– Health, Welfare Savings: Elimination of Ineligible Employees, Retirees & Dependents – Central Electronics Shop Productivity Savings from Streamlining Operations, Use of Technology & Consolidation
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LIRR
– Revaluation of Right-Of-Way Leased Line Fees – Crew Efficiencies Stemming from Reduction in On-Board Ticket Sales
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MNR
– Increase Revenue Collection Through Expansion of Ticket Vending Machine Network – Process Review for Productivity Savings
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Examples of Agency PEGs (continued)
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B&T
– Reduce Arrest Processing Overtime – Reduce Administrative Positions
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MTAHQ
– Administrative Savings from Headcount and Contractual Service Reductions – Police Overtime Efficiencies
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SIR
– Operational Efficiencies Result from New Rail Control Center in October 2005
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Reinvestment Fund Proposed Amount: $481 million 2 Recommended Possible Uses:
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Platform Over the West Side Rail Yards to Support Mixed-Use Development
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Reduction in Pension Liabilities
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July Financial Plan
With Gap Closing and Other Actions ($ 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.
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