Preliminary Fiscal Year 2016 Budget Update Standing Committee on Finance & Audit February 5, 2015 Leading the Nation in Transportation Excellence Massachusetts Bay Transportation Authority Ten Park Plaza, Suite 3910, Boston, MA 02116 www.mbta.com DRAFT
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Preliminary Fiscal Year 2016 Budget Update
Standing Committee on Finance & Audit
February 5, 2015
Leading the Nation in Transportation Excellence Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
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Agenda• Statement of Revenue & Expenses - Departmental Budget Requests
FY 2016 Revenue OverviewDedicated Sales Tax RevenuePursuant to MBTA’s enabling act, Dedicated Sales Tax receipts to
MBTA are the greater of the base revenue amount (BRA) or the dedicated sales tax revenue amount, which is 16% of statewide sales tax excluding the meals tax. An additional $160 million (previously a separate appropriation) was added to the BRA ($810,637,174) commencing in FY2015 and resetting the BRA to the amount of $970,637,174.
State AssistanceAdditional assistance projected to be provided by the
Commonwealth from Transportation Finance legislation.
Fare RevenuesRevenue generated from transportation services provided by the
Authority.
Non-fare RevenuesRevenue generated from advertising, parking and income from
real estate operations.
Local AssessmentsRevenue generated from the communities served by the MBTA.
All communities associated with the Authority must contribute to the MBTA.
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Dedicated State Sales Tax Revenue
$985.1 48%
Local Assessments
$162.9 8%
Non-fare Revenues
$70.8 4%
Fare Revenues $614.4 30%
State Assistance$202.4 10%
State Contribution$ Amount % of Revenue
$1.2 Billion 58%
State and Local Funding = $1.35 BillionTotal Revenue = $2.03 Billion
___________________________1. Amounts are from POS;; BRA for FY15 was confirmed February 28, 2014.2. FY15 Dedicated Sales Tax is an estimate based upon Office of Comptroller report dated February 28, 2014.
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FY 2016 Fare Revenue & Ridership
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Fiscal A ct ual/ A verage FareYear Project ion Ridersh ip Fare Revenue
FY 2013 A ct ual 391,879,047 $1.44 $564,560,142
FY 2014 A ct ual 397,161,378 $1.45 $576,686,288
FY 2015 Forecast 400,527,210 $1.51 $606,007,645
FY 2016 Project ion 409,123,337 $1.51 $617,848,214
Total - All Modes
System-wide ridership from FY2013 to FY2014 increased by 1.3%. FY2015 is forecast to increase at more moderate levels—0.8%, which is lower than FY2014 due to impacts from the July 2014 fare increase. FY2016 is expected to see ridership growth at a rate of 2.1% if recent trends hold.
For most modes, the baseline ridership growth is sufficient to offset impacts of the 5% fare increase from July 2014. In the case of bus, growth rate from FY2013 to FY2014 was lower than other modes at 0.9%, and so when combined with the July 2014 fare increase, the FY2015 forecast is for a slight 0.7% decrease in ridership. Without a fare increase in FY2016 bus ridership is projected to grow by 2.6%.
*Note: Operating Revenue is net of Operating Costs
Revenue Type
FY 12 Actual
FY13 Actual
FY14 Actual
FY15 Budget
FY16 Budget
Advertising $11.4 $13.5 $14.9 $16.2 $16.2
Parking* $15.3 $17.2 $16.4 $16.2 $17.2
Real Estate $14.2 $16.1 $13.6 $13.3 $12.5
All Other $57.4 $80.2 $25.9 $33.9 $24.9
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FY 2016 Advertising Programs
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Con t ract or Type of Revenue Descr ip t ionTit an Syst emw ide adver t ising Sells al l adver t ising on all rap id t ransit , t rol ley , bus and
commut er rai l st at ions and p lat forms, bot h above and below g round . Includes carcards, bus k ings, bus queens, veh icle w raps, d ig it al.
Mar
keti
ng
Clear Channel A dver t ising in "New St at ions" w h ich includes A irpor t , Cou r t house,
Wor ld Trade St at ions and d isp lay screen syst em of t he Sou t h St at ion
Kiosk syst em
Sells al l adver t ising at t he fol low ing st at ions: A irpor t , Cou r t house, Wor ld Trade St at ions and d isp lay screen syst em of t he Sou t h St at ion Kiosk syst em
Mun icipal Med ia Solu t ions Web A dver t ising License for al l w eb adver t ising on mb t a.comWardMaps Merchand ising sales License t o develop , manage, and market MBTA b randed
merchand ise on line and t h rough t h ird -par t y ret ailers
Filming and Samp ling Syst emw ide Includes revenue f rom f i lms using MBTA p roper t y , and organ izat ions t hat p rov ide samp le p roduct s t o MBTA r iders on t he p remises
Cemusa Inc. Bus Shelt ers License for 207 cu r ren t bus shelt ers & 25 f reest and ing panels at MBTA st ops. A n add it ional 35 bus shelt ers w il l be inst alled du r ing FY16.
MRG
Clear Channel Bil lboards License for 165 ou t door b il lboard locat ions (bot h st at ic and d ig it al).
CBS Ou t door (Former ly know n as Van Wagner
Commun icat ion )
Sponsorsh ip License for adver t ising r igh t s on 5 MBTA bu ild ings/ st ruct u re locat ions w here t here is a t ot al of 8 ou t door adver t ising panels.
Bus Maintenance - $27.5MPreventive & Corrective Maintenance for Bus Fleet, Tires, Rims, Lubricants
Subway Maintenance - $15.1MRed LineSpin Slide Unit, Floor Blower, Door LocksOrange LineDoor Locks, Propulsion Relay, HVAC, Air CompressorsBlue LineDoor Monitoring System, Tread BrakesGreen LineAir Compressor Assemblies, Battery Replacement, ASI Control Boards
Everett Main Repairs Shop - $16.8MReplace and Repair Truck Motors, Painting and Body Repair on 200 Buses, Brakes, Suspensions, Axels, A/C & Heating Supplies
Maintenance of Way - $4.5MRail Grinding, Platform Gap Analysis, Ties, Tree Service, Rubbish Removal
Transit Facilities Maintenance - $25.2MRoof Repairs, Emergency Environmental Services, Ventilation, Hazardous Material Transport & Disposal, Support for Fareboxes and Sales Devices
Power Systems Maintenance - $5.8MDistribution Cables, Duct Bank Repair, Manhole Repairs, Gas Turbine Repairs
Signals & Communications - $4.9MSignal Bungalows Upgrade, Tunnel Lighting, Rewiring Woodland, Waban, Eliot, Newton Highlands, Newton Centre and Chestnut Hill, Signal Cutover at Reservoir and Beaconsfield Stations, System-Wide Upgrades for Vent Fans, Elevators, Escalators and Controls
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Maintenance Costs - $99.9 Million
FY 2016 Materials & Services
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FY16 Other Materials & Services by Department
Department Professional Services Training Interns Office Supplies &
*Note: $5.3M in “Other Expenses” consists of $3.2M MassDOT Cost-Sharing ISA, $406K agreement with MBTA Advisory Board and $1.6M lease payment for 100 Summer St.
FY 2016 Materials & Services
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FY16 Professional Services by DepartmentDepartment Engineering
Design & Construction Certifications, SSPP Tracking System ($168K D&C)
Materials Business Analysis of Purchasing Specialists ($320K Materials), IT Consulting ($350K Materials), Supplier Diversity Web Portal - How to Do Business with MBTA ($135K Supplier Diversity)
General Manager Workforce Recruitment ($115K)
Diversity Telephonic Interpreting ($98K Diversity), Translation Services at Public Meetings ($50K Diversity), DBE & Small Business Development ($480K Diversity)
System-Wide Accessibility
DRS Technologies Monitors ($250K SWA), Testing of Applications to Meet Accessibility Standards ($170K SWA), Sign Language Services ($50K SWA), Boston Center for Independent Living Coordinator ($30K SWA), Design Guide to Website Access ($500K SWA),
OCC & Training Automated External Defibrillator Services ($44K OCC), Bus Simulator Warranty ($46K OCC), All Traffic Solutions ($6K OCC), BP Logix ($10K OCC), AlterSense ($13K OCC)
FY 2016 Purchased Local Services
Service FY13 Actual FY14 Actual FY15 Budget FY16 Budget $ Increase over prior year
% Increase over prior year
THE RIDE $100,730,091 $105,923,101 $105,373,056 $110,936,812 $5,563,756 5.28%
Private Carrier Bus $2,082,554 $2,217,765 $2,261,600 $2,296,100 $34,500 1.53%
Suburban Bus $199,119 $184,413 $199,412 $207,390 $7,978 4.00%
Total Subsidy $113,015,494 $121,179,407 $122,116,771 $126,512,941 $4,396,170 3.60%
Provides door-to-door, shared-ride transportation to eligible people who cannot use fixed-route transit all or some of the time because of a physical or cognitive disability. By combining an innovative Request for Proposals process, and in-depth and rigorous procurement process, and strategic policy changes, the MBTA secured three contracts to provide RIDE services through 2019.
The MBTA’s ferry services are provided by a contract operator and governed by operating agreements administered by the MBTA Railroad Operations & Water Transportation Department. The service is comprised of three routes and seven docks categorized into two service types: Inner Harbor Ferry (Charlestown Navy Yard to Long Wharf) & Commuter Boats (serve Hingham, Rowes Wharf, Long Wharf, Hull, and Logan Airport).
Consists of MBTA-funded bus routes which were taken over by the MBTA when previous operators were no longer able to continue. These routes are operated by private contractors (Paul Revere & Joseph’s Transportation currently) and were awarded through a bidding process. The Winthrop routes are operated using 35-foot transit buses, while the others are operated with smaller vehicles.
A subsidy program that provides partial support to municipalities that contract to provide transportation services, typically in areas which are not extensively served by MBTA transit services.
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FY 2016 Commuter Rail ExpensesFY 16 Budget
$ 319.9
$ 42.8
$ 3.7 $ 19.2 $ 12.2 $ 1.7 $ 1.0
$ 0.3
Contracted Services FuelService Changes Capital MaintenanceEquipment Maintenance Claims Run-OutLit igation Other
Description FY 2016 Budget
Contracted Services
$319.9M
Fuel $42.8M
Service Changes
$3.7M
Capital Maintenance
$19.2M
EquipmentMaintenance
$12.2M
Claims Run-Out
$1.7M
Litigation Contingency
$1.0M
Other $0.3M
Total $400.8M
Capital Maintenance
Amtrak Northeast Corridor $1.3MMBTA Capital Support Costs $12.7MMansfield Secondary Line $2.0MCSX – Annual Trackage Rights $1.2MOther $2.0M
Total $19.2M
Service Changes
New Service $1.0MCape Flyer Weekend Summer Service $0.3MWorcester Layover Facility $0.2MWachusetts Layover Facility $0.5MFairmount Weekend Service $0.5MOld Colony Weekend Service $1.2M
Punitive Damages & InterestPursuant to Transportation Reform legislation enacted in 2009 and subsequent amendments, the MBTA is no longer liable at all for punitive damages or any interest pre-judgement or post-judgement and is capped at $100,000. There is no limitation on compensatory damages involving serious bodily injury.
Miscellaneous Insurance $51,010 $30 $51,040 Total $7,352,899 $243,896 $7,596,795
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*Note: The increase in liability costs are related to added MBTA exposure (ridership going up and services added). Future liability insurance increases anticipated are due to limited rail/transit markets, anticipated claims/losses due to greater exposure and continued expansion of services and ridership. Based on market conditions over the past few years other rail/transit systems have experienced premium increases between 8-10% over expiring premiums. The MBTA has been able to negotiate with underwriters to keep premiums within 3-5% increase.
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FY 2016 Debt Profile• MBTA currently has
approximately $5.5 Billion in outstanding debt
• $4.8 Billion fixed
• $659.18 Million variable including $101.03 Commercial Paper
Date Principal AmortizationMarch 1, 2015 66,725,000 March 1, 2016 23,450,000 March 1, 2017 9,630,000 March 1, 2018 17,315,000 March 1, 2019 18,840,000 March 1, 2020 19,095,000 March 1, 2021 20,420,000 March 1, 2022 10,955,000 March 1, 2023 10,740,000 March 1, 2024 11,495,000 March 1, 2025 12,300,000 March 1, 2026 13,160,000 March 1, 2027 14,080,000 March 1, 2028 15,065,000 March 1, 2029 16,120,000 March 1, 2030 17,250,000
Total 296,640,000
Prior Obligations
Debt Assumed on 7/1/2000 Under Forward Funding Legislation = $3.6 Billion