TWIN CITIES METRO AREA TRANSIT FUNDING NEEDS ASSESSMENT Transportation Funding Advisory Committee August 2012
TWIN CITIES METRO
AREA TRANSIT FUNDING
NEEDS ASSESSMENT
Transportation Funding Advisory Committee
August 2012
Agenda
2
• Basis of the needs assessment
• Scenario 1 – Status Quo
• Scenario 2 – Maintain Current
Performance
• Scenario 3 – Economic Competitiveness
• Scenario 4 – World Class
Base Bus System Expansion in
the Regional Plan
3
• Local bus
– Increased frequency, span of service,
coverage
– Improved quality and speed of service
• Express bus
– Increase service on existing routes to meet
demand
– Add service to new park & rides
4
Transitways
in the
Regional
Plan
Funding Assumptions in the
Needs Assessment
5
• State general fund constant
– Approximately $65 million/year
• Federal revenues in operating constant
– Approximately $38.5 million/year
• MVST
– Consistent with current State forecast to 2015
– Constant growth of 3.2% per year after 2015
• Fares increases to keep up with inflation (every
3 years)
Funding Needs Scenarios
6
• Scenarios 1 and 2 include projects already
operating or actively in development
• Scenarios 3 and 4 are more conceptual in
nature
– Some transitway corridors are still being
studied to determine mode and alignment
Scenario 1 – Status Quo
7
• Continue to operate the transit system that exists
today and finish Central LRT and Cedar Stage 1
• System includes:
– Existing bus and Metro Mobility service levels
– Mandatory Metro Mobility (ADA) service increases
– Hiawatha LRT
– Northstar Commuter Rail
– Central LRT starting in 2014
– Cedar Ave BRT Stage 1 starting in 2013
Status Quo/No Growth Structural
Transit Operating Revenue Issues
8
2015 2020 2025 2030
Other
Federal
State GF
Fares
MVST
Gap
Expenses
46%
Inflation Growth
of ExpensesNo Growth
Revenues
14%
25%
9%
6%
46%
25%
9%5%6%
Scenario 1 – Status Quo
9
• Expected Outcomes:
↑ Increased fares
↓ Reduced service
↓ Reduced ridership
• Does not address growing demand
Scenario 1 – Status Quo
10
• $10 million gap in 2015
• $14 million gap in 2016
• After 2016, gap continues to grow
because of structural funding issues
Total Investment Need 2015-2030 =
$570 M ($36 M per year)**Non-inflated figure
Scenario 2 – Maintain Current
Performance
11
• Regional growth requires more transit
investments to maintain current mobility levels
• System includes:
– Scenario 1 service levels
– Bus service expansion (0.5% growth / year)
– Southwest LRT (SWLRT)
– I-35W South BRT
– Cedar Ave BRT Stage 2
– Three Arterial BRT corridors
Scenario 2 – Maintain Current
Performance
12
Expected Outcomes:
+ Positive results for residents
+ Addresses growing transit demand and makes
progress toward doubling ridership by 2030
+ New connections between home, school, work and
entertainment
+ Positive results for businesses
+ Transit spurs economic development
+ Solid infrastructure attracts jobs & development
Scenario 2 – Maintain Current
Performance
13
• Scenario 1 investment needs– About $570 million over 16 years ($36 M per year)
• Plus Scenario 2 investments needed to
fund capital and operating expansions– About $1.03 billion over 16 years ($64 M per year)
Total Investment Need 2015-2030 =
$1.6 B ($100 M per year)**Non-inflated figure
Scenario 3 – Economic
Competitiveness
14
• Improved mobility levels for residents and
businesses and enhanced regional economic
competitiveness
• System includes (conceptual example):– Scenario 1 and 2 service levels
– Bus service expansion (1.0% total growth/year over status quo)
– Two additional LRT (after SWLRT)
– Six additional Arterial BRT corridors
– Three additional Highway BRT/Managed Lane corridors
Scenario 3 based on the transit vision in the Council's 2030 Transportation Policy Plan and
the Program of Projects
Scenario 3 – Economic
Competitiveness
15
Expected Outcomes:
• Positive results for residents– Addresses more growth in demand and doubling of ridership by 2030
– Significantly better connections between home, school, work and entertainment
– Faster, cheaper transportation options that are safe and environmentally-friendly
• Positive results for business– Additional 500,000 employees will have access to jobs via transit
– Freight and logistics savings
– Investments compete well with similar investments in peer regions
• Positive result for all taxpayers: A return on investment
(ROI) between $6.6 and $10.1 billion to 2030
Scenario 3 – Economic
Competitiveness
16
• Scenarios 1 and 2 investment need– About $1.6 billion over 16 years ($100 M per year)
• Plus Scenario 3 investments needed to
fund capital and operating expansions– About $1.6 billion over 16 years ($100 M per year)
Total Investment Need 2015-2030 =
$3.2 B ($200 M per year)**Non-inflated figure
Scenario 4 – World Class
17
• Accelerated transit investment program, sustained
beyond 2030
• A more robust, balanced and comprehensive regional
transit system
• System includes (conceptual example):
– Scenario 1, 2, and 3 service levels
– Bus service expansion (1.5% total growth/year over status quo)
– Three additional Arterial BRT corridors
– Two additional rail lines
– Two additional Highway BRT/Managed Lane corridors
– Six streetcar lines
Scenario 4 – World Class
18
Expected Outcomes:
• Positive results for residents– Significantly address growth in demand and more than double ridership by 2030
– Extensive connections between home, school, work and entertainment
– Additional faster, cheaper transportation options that are safe and
environmentally-friendly
• Positive results for business– Additional employees will have access to jobs via transit
– Additional freight and logistics savings
– Position the region to surpass investments in peer regions and further enhance
regional competitiveness
• Positive result for all taxpayers: an ROI between $10.7
and $16.5 billion in 2030
Scenario 4 – World Class
19
• Scenarios 1, 2, and 3 investment need– About $3.2 billion over 16 years ($200 M per year)
• Plus Scenario 4 investment needs to fund
capital and operating expansions– About $1.6 billion over 16 years ($100 M per year)
Total Investment Need 2015-2030 =
$4.8 B ($300 M per year)**Non-inflated figure
In Summary
20
• Scenario 1: results in service cuts and less
mobility and leaves this region falling behind
peers and losing competitiveness
• Scenario 2: brings the region in line with
existing conditions of competing peer regions
• Scenarios 3 and 4: make the region
competitive with peers and provide
opportunities to attract additional investment