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Metropolitan Council Transportation Division 2008 Operating Budget presented to the Metropolitan Council August 8, 2007.

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Presentation on theme: "Metropolitan Council Transportation Division 2008 Operating Budget presented to the Metropolitan Council August 8, 2007."— Presentation transcript:

1 Metropolitan Council Transportation Division 2008 Operating Budget presented to the Metropolitan Council August 8, 2007

2 2 State Transit Revenue Outlook MVST continues to be a volatile revenue source ­ Current Feb. 07 MVST forecast significantly down from Feb. 06 forecast ­ -5% FY07, -11% FY08 and -10% FY legislative session results impacted long- term funding ­ MVST phase-in at 36%, not 38% ­ GF appropriation held at FY07 level for FY08 & FY09; one-time $20 M in FY08 ­ Hennepin Co. share of Hiawatha LRT operating capped at $5.3 M with no state replacement

3 3 Metro Area Transit MVST Revenue Projections (millions) State Feb NovFeb Forecast: SFY 2004$130.7$ SFY 2005$134.7$122.1$ SFY 2006$133.3$120.8$116.1$ SFY 2007$142.7$126.1$118.0$110.2$112.2 SFY 2008$123.0$ $ $ SFY 2009$127.3$ $ $ Actual receipts 2.Assumed 38% MVST phase-in 3.MVST phase-in at 36%

4 4 CY 2008 Budget Assumptions No service cuts No fare increase No planned service expansion Address shortfalls through: - Cost containment - Service efficiencies - Administrative cost adjustments - State supplemental budget request - Recommended use of reserves

5 5 Metro Transit Budget Highlights Maintains 2007 service levels Continued focus on security Includes diesel fuel at $2.56/gallon Maintenance challenges with bus fleet average age increase from 4.86 years in 2004 to 8.60 years in 2008 Light rail vehicle overhaul program Bus and Rail budgets unbalanced NorthStar revenue source to fund pre-revenue operations

6 6 Metro Transit Bus Revenue & Expenses State General Fund $52.1 (22%) Passenger Fares $70.3 (30%) Federal Grants/CMAQ $3.3 (1%) MVST $91.0 (38%) All Other Sources $8.7 (4%) All Other Expenses $5.5 (2%) Salaries & Benefits $183.4 (77%) Utilities $5.0 (2%) Materials & Supplies $11.2 (5%) Expenses $239.4M Revenue $237.1M RA Allocation $13.9 (6%) Federal Preventive Maintenance $7.0 (3%) Fuel $20.4 (8%) Central NorthStar Capital $4.7 (2%) Note: the 2008 Budget is proposed to be balanced with a $2.3M use of reserves.

7 7 Metro Transit Rail Revenue & Expenses State General Fund $5.3 (22%) Passenger Fares $9.2 (38%) Other $0.8 (3%) Hennepin County $5.3 (22%) All Other Expenses $5.0 (20%) Salaries & Benefits $12.5 (50%) Utilities $1.0 (4%) Expenses $25.0M Revenue $24.3M RA Allocation $1.0 (4%) LRV Propulsion $1.1 (4%) MVST $3.7 (15%) Materials & Supplies $1.8 (8%) Modal Allocations $2.6 (10%) Note: the 2008 Budget is proposed to be balanced with a $0.7M use of reserves.

8 8 Metro Transit - Northstar

9 9 Metro Transit - Bus & Rail Consolidated

10 10 Metro Transit FTEs by Budget Year BusHLRTTotal % Change CentralNorthstar (1.9%) (1.1%) (2.6%) (0.6%) Amended % %

11 11 Metro Transit Reserves – Fund Balance & Retirement Liability BusRail Retirement Liability 2003$13.1$0.6$ $16.3$1.5$ $17.3$2.3$ $21.8$2.5$ Budget$20.1$2.5$ Forecast$21.4$2.8$ Budget$19.1$2.1$41.6 Council Target Fund Balance: 2008 Operating Expense Budget $229.8$24.9 Council Reserve Target 8.3% 2008 Target Fund Bal. $19.1$2.1 Council Target Fund Balance Policy: Reserve equal to one month expenditure or 8.3% $s in millions

12 12 MTS Budget Highlights Shortfall Projected deficit of $420,000 Potential Solutions State General Fund supplemental budget request for Metro Mobility Use of fund balance/reserves if necessary Budget Constraints  Metro Mobility increasing demand combined with federally required denial rate leaves little flexibility

13 13 Metropolitan Transportation Services 2008 Revenue & Expenses Expenses $82.1 M Revenue $81.7 M Metro Mobility $35.4 M 43% STAP $25.0 M 30% Planning $3.5 M 4% Contracted Transit $18.2 M 22% State General Fund $34.5 M 42% MVST $30.3 M 37% Federal $10.9 M 13% Local/ Other $1.0 M 1% Fares $5.0 M 6% 2008 Budget assumes a $420,000 shortfall STAP figures exclude fares and other revenues

14 14 MTS Revenue and Expenditures AdoptedProposed$ Change% Change MVST$30.0$30.3$0.31.0% State Gen Fund$30.3$34.5$ % Federal$10.5$10.9$0.43.8% Local/Other $0.8 $1.0$ % Fares $4.8* $5.0$0.24.2% Total Revenues$76.4$81.7$5.36.9% Planning $3.4 $3.5$0.12.9% Metro Mobility$33.3$35.4$2.16.3% STAP$23.6$25.0$1.45.9% Contracted Transit$17.6*$18.2$0.63.4% Total Expenditures$77.9$82.1$4.25.3% Variance($1.5) ($.4)($1.1) FTE40 *Adjusted for fares retained by providers for comparative purposes. $’s in millions

15 Year End Reserve$8.56$8.08$8.52$9.61$8.11$7.69 Adopted FTEs (1) In FTEs from Metro Commuter Services staff transferred to Metro Transit. Historic Reserves and FTEs $s in millions

16 16 Transportation Division 2008 Revenue & Expenses Expenses $347.1M Revenue $343.7 M MTS $82.1 M 23% MT Bus $239.4 M 70% Northstar $.6 M <1% MT Rail $25.0 M 7% MVST $125.0M 36% GF $91.9 M 27% Federal $21.2 M 6% Local/ Other $21.1 M 6% Fares $84.5 M 25% 2008 Budget assumes a $3.4 M shortfall for MT & MTS Assumes a revenue source for Northstar in Other Revenue


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