PUBLIC HEARING - SCRRA PROPOSED

FISCAL YEAR 2017-18 BUDGET -

ADOPTION

JUNE 23, 2017

BOARD OF DIRECTORS MEETING

IN PREPARATION FOR TODAY’S BOARD

MEETING:

• Members of the public have been notified of this public hearing in

accordance with applicable requirements, in English and foreign

languages by advertising in newspapers throughout the five county areas

served by the Authority.

• These include the Orange County Reporter, Ventura County Star, Daily

News (Los Angeles), Press Enterprise (Riverside) and the San

Bernardino County Sun, Iranshahr Weekly C/O KETAB Corp, Korea Daily,

Nguoi Viet, Philippine Media, Armenian Media Network, Beirut Times,

Rafu Shimpo, World Journal (Chinese Daily News), and Panorama.

• The Proposed Fiscal Year 2017-18 (FY18) Budget was also posted on

the Metrolinktrains.com website and a printed copy made available at

headquarter offices at One Gateway Plaza, Floor 12, Los Angeles,

California.2

ACTION BY MEMBER AGENCIES’ BOARDS

SBCTA San Bernardino June 4 Approved

VCTC Ventura County June 2 Approved

OCTA Orange County June 26

Public

Hearing

held*

RCTC Riverside County June 14 Approved

Metro Los Angeles County June 22 Committee*

SCRRA Board June 23*OCTA held their public hearing for the budget adoption on June 12 and will

presented to their Board for approval on June 26.

*Metro Finance, Budget & Audit Committee approved the operating subsidy

on June 14 and referred it to their Board for approval on June 22.3

FY18 BUDGET THEMES

Improve safety with PTC the centerpiece of our efforts.

Improve reliability and on-time performance by a fleet enhanced

by 11 new Tier 4 locomotives.

Maintain state of good repair on existing assets.

Enhanced customer experience with upgraded mobile ticketing,

passenger car refurbishment, and service on the holidays.

4

KEY BUDGET ASSUMPTIONS

Ridership steady

No increase in regular service

No Fare Increase

Cost of living salary adjustment of 2.0%, Merit Pool of 3%

Diesel Fuel Hedging Program

Eliminate 2.0 FTE in headcount from FY17 Budget

5

REVENUE ALLOCATION BY MEMBER AGENCY

6

(In 000's)

TOTAL

FY17-18

Metro

Share

OCTA

Share

RCTC

Share

SBCTA

Share

VCTC

Share

Revenues

Gross Farebox $85,159 $42,031 $22,453 $7,759 $10,512 $2,404

Dispatching/Other 2,137$ 1,136$ 687$ 7$ 57$ 250$

Maintenance-of-Way 13,350$ 8,052$ 2,531$ 667$ 1,556$ 544$

Total Revenues FY2017-18 Budget $100,646 $51,219 $25,671 $8,433 $12,124 $3,199

FY 2016-17 Budget $101,825 $51,822 $25,528 $8,434 $12,665 $3,377

over/(under) last year ($1,179) ($603) $143 ($1) ($541) ($178)

Percent Change (1.2%) (1.2%) 0.6% (0.0%) (4.3%) (5.3%)

Numbers may not foot due to rounding.

EXPENSE ALLOCATION BY MEMBER AGENCY

7

(In 000's)

TOTAL

FY17-18

Metro

Share

OCTA

Share

RCTC

Share

SBCTA

Share

VCTC

Share

Expenses

Train Operations & Services $143,486 $72,153 $33,859 $15,861 $15,429 $6,185

Maintenance-of-Way 41,607 22,046 8,446 3,200 5,458 2,458

Administration & Services 40,289 19,261 7,314 5,736 4,172 3,806

Insurance 17,662 9,418 4,290 1,342 2,026 586

Total Expense FY2017-18 Budget $243,045 $122,877 $53,910 $26,139 $27,084 $13,035

FY 2016-17 Budget $243,814 $123,820 $53,822 $25,779 $27,506 $12,888

over/ (under) last year ($769) ($943) $88 $360 ($422) $147

Percent Change (0.3%) (0.8%) 0.2% 1.4% (1.5%) 1.1%

Numbers may not foot due to rounding.

OPERATING SUBSIDY BY MEMBER AGENCY

8

(In 000's)

Total Net Local

Subsidy

Metro

Share

OCTA

share

RCTC

Share

SBCTA

Share

VCTC

Share

FY 15 ACTUAL 110,257 59,030 22,251 9,388 11,605 7,983

FY16 ACTUAL 127,173 66,469 24,975 13,799 13,058 8,872

FY17 BUDGET 141,989 71,998 28,294 17,345 14,841 9,511

FY18 BUDGET 142,399 71,659 28,239 17,705 14,960 9,836

YEAR OVER YEAR CHANGE

Total Net Local

Subsidy

Metro

Share

OCTA

share

RCTC

Share

SBCTA

Share

VCTC

Share

FY15 vs FY16

$ Increase 16,916 7,439 2724 4411 1453 889

% Increase 15.3% 12.6% 12.2% 47.0% 12.5% 11.1%

FY16 vs FY17

$ Increase 14,816 5,529 3,319 3,546 1,783 639

% Increase 11.7% 8.3% 13.3% 25.7% 13.7% 7.2%

FY17 vs FY18

$ Increase/(Decrease) 410 (339) (55) 360 119 325

% Increase/(Decrease) 0.3% (0.5%) (0.2%) 2.1% 0.8% 3.4%

FY18 BUDGET

Operations $243.0

New Rehabilitation Projects 89.6

New Capital Projects 5.3

______

Total Budget $337.9

9

RECOMMENDATION

10

1. Conduct a public hearing on SCRRA FY18 Budget

2. Adopt Budget upon conclusion of hearing

3. Approve salary resolution