marta fiscal challenge: fy2009 and beyond
DESCRIPTION
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.” - PowerPoint PPT PresentationTRANSCRIPT
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 Glance9th largest transit system in the nation
36 years of experience (transit planning, design, constructionand 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 GlanceRAIL SYSTEM
• 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 • 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)
Fulton & DeKalb County Residents 87%
Work trips* 54%School trips 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
Who Do We Serve?Who Do We Serve?
MARTA TodayRidership - 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
Sales Tax$183.24M52.10%
Passenger Revenue$103.35M29.38%
Lease Income$5.80M1.65%
Other Transit Related$17.54M4.99%
Preventive Maintenance
Rev.$41.79M11.88%
WHERE DOES IT COME FROM?
FY09 Adopted Operating Revenues($351.72M)
Salaries and Benefits$305.62M77.28%
Contractual Services$20.55M
5.20%
Materials and Supplies$39.89M10.09%
Other Non-Labor$29.40M7.43%
WHERE DOES IT GO?
FY09 Adopted Net Operating Expenditures($395.46M)
MARTA Financial Overview
FY09 Budget – Revenue Allocation($Million)
Budget FY09 % of Total
50% Sales Tax 183.24 52.1%Passenger Revenues 103.35 29.4%Sales Tax & Passenger Rev. 286.59 81.5%
Other Transit Related Revenues 11.45 3.3%Interest on Capital Reserves 2.23 0.6%Lease Income 1.57 0.4%Transit Oriented Developmt. Revenue 4.23 1.2%Preventive Maintenance Revenue 41.79 11.9%Lease-to-Service Amoritzed Income 3.86 1.1%Other Revenue 65.13 18.5%
Current Year Operating Revenues 351.72 100.0%
Adopted
MARTA FY09 Capital Program
Prior Year Carryover$94.94M(17.18% )
Sales Tax$174.08M(31.50% )
Interest/ State/Private$3.34M(0.60% )
Federal Grants$110.21M(19.95% )
Financing$170.00M(30.77% )
WHERE DOES IT COME FROM? Capital Revenue by Source
FY09 Adopted Capital Budget($552.57M)
WHERE DOES IT GO?Capital Expenditures by Type FY09 Adopted Capital Budget
($532.22M)
Debt Service$145.7627.38%
Planning$12.39M2.33%
Service Enhancements
$46.13M8.67%
System Expansion$10.73M2.02% Regulatory
Requirements$6.12M1.15%
State of Good Repair$311.09M58.45%
MARTA FY09 Capital Program
MARTA Financial OverviewOriginal Budget Projection
(as of June 2007 – FY07 Un-audited)
Revised Sales Tax Forecast - A
Source: Georgia State University Economic Forecasting Center (GSUEFC)
Operating Budget Projections(FY08 – FY11 Revised – “AS IS”) *
($Million)
FY09/FY10 Reduction Target* Georgia State University Economic Forecasting Center Report
(September 2008)
Revised Sales Tax Forecast - B
Source: Georgia State University Economic Forecasting Center (GSUEFC)
Operating Budget Projections(FY08 – FY11 Revised – “AS IS”) *
($Million)
* Georgia State University Economic Forecasting Center Report (December 2008)
Actual Adopted Preliminary
Forecast ProjectionFY08 FY09 FY09 FY10 FY11
Current Year Operating Revenues 357.11 351.72 333.02 323.18 322.13
% Increase/Decrease 4.4% -1.5% -6.7% -3.0% -0.3%
Net Operating Expenditures 363.99 395.46 400.26 417.84 436.32% Increase/Decrease 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)
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 Productivityand
Cost Containment
Fare Changes
Reduce TransitService LevelsNew Revenue Sources
Average Cost Per Trip
Average Cost Farebox Recovery (%)
Subsidy(%)
Average Cost Per Trip
$ 2.53 27.3 72.7
Bus 2.69 27.3 72.7
Rail 2.21 29.4 71.6
Paratransit 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 FarePasses Paratransit
FareMonthly Weekly
May 1980 $0.25 $10 $0.50 July 1980 $0.50 $17 $4 $1.00 July 1981 $0.60 $21 $5 $1.20July 1985 $0.60 $25 $6 $1.20June 1987 $0.75 $28 $7 * $1.50July 1988 $0.85 $32 $8 * $1.70July 1990 $1.00 $35 $9 * $2.00June 1992 $1.25 $43 $11 * $2.50July 1995 $1.50 $45 $12 * $3.00
March 1997 $1.50 $45 $12 * $3.00Jan 2001 $1.75 $52.50 $13 * $3.50
Today $1.75 $52.50 $13 * $3.50
* Paratransit was outsourced to DAVE Transportation from 1987 until 1997
Transit Service and Price Changes
Note: Pass prices based on the pass multiple “X” (i.e., X times the base fare).
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.
Transit Service and Price ChangesTransit 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 ChangesParking 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.
• 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.
Transit Service and Price ChangesService Considerations
MARTA 2009 Legislative Agenda
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.
Eliminate 50% capital and 50% operations sales tax split requirement
Permit interest income from capital reserves to be used for operations
Amend “Zero Tolerance” provision (permit food and drink in MARTA rail andintermodal facilities) - - not on board trains or buses
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.
Major Opportunities: FY2009 and Beyond
Transportation Infrastructure Investment Key to Economic Stimulus
Linkage of Transportation, Environmental and Energy Policies ─ 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!
Timeframe Event(s) December 2008 – 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
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
Decision-Making Timeline
Timeframe Event(s)
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