Finance & Audit Committee

September 19, 2016

FY2017 Budget Workshop

Agenda

AGENDA
1. FY2017 Funding Envelope
2. Goals
3. FY2017 Operating Budget

4. FY2017 Capital Budget

5. FY2017 Budget Summary
2

Cash Flow Summary

FY2016 FY2021 Draft Sources & Uses Scenario
Summary FY2017 Funding Envelopes
2016 Projected

Sales Tax Growth Adjustment

Total Sales Tax Collections
GMP Transfer
Sales Tax Available to METRO
Farebox Revenue (includes Vanpool)
HOT Lanes Revenue
Transfer of Unascribed GMP funds from Escrow
Miscellaneous Revenue
Grants Revenue
Bond Proceeds
TOTAL SOURCES OF FUNDS

2017

2018

2019

2020

2021

689,083
(171,802)
517,281
65,896
8,050
18,342
119,660
729,230

-1.00%
679,367
(169,842)
509,526
73,195
8,453
1,000
6,442
118,629
51,353
768,597

-1.00%
687,112
(171,556)
515,557
75,227
8,875
6,542
105,578
56,711
768,489

-0.75%
736,515
(177,731)
558,784
77,903
9,319
6,642
91,488
74,293
818,429

-0.50%
778,423
(182,969)
595,454
80,059
9,785
6,742
90,669
61,838
844,546

-0.25%
817,422
(187,844)
629,578
82,279
10,274
6,842
105,489
56,891
891,353

Debt Service
Operating Expenses
METRORail Completion
Capital Improvement Program
TOTAL USES OF FUNDS
Net Flow of Funds

94,749
538,775
67,001
81,521
782,046
(52,816)

99,308
568,071
47,183
131,037
845,599
(77,001)

114,525
578,420
25,955
86,431
805,331
(36,841)

130,936
589,100
12,533
98,425
830,994
(12,564)

142,985
601,449
10,623
86,321
841,378
3,168

132,572
607,696
40,115
84,607
864,990
26,362

Ending Cash Balance

283,850

206,848

170,007

157,442

160,610

186,973

Reserves Included in Ending Cash Balance

15% Operating Reserve (Debt Policy)
10% Operating Reserve (Board Policy)
$10 million additional Reserve (Board Policy)
Total Reserves

80,816
53,878
10,000
144,694

85,211
56,807
10,000
152,018

86,763
57,842
10,000
154,605

88,365
58,910
10,000
157,275

90,217
60,145
10,000
160,362

91,154
60,770
10,000
161,924

Ending Cash Net of Reserves

139,156

54,830

15,402

167

248

25,049

10

Universal Accessibility

Enhance the Customer Experience

State of Good Repair

Marketing our Service

Planning for the Future

13

Total FY2017 Proposed Operating

Budget: $568.1 million
FY2016 Operating Budget
$558.3 million

Proposed FY2017
$566.7 million
$1.4 million (Super Bowl)*
$568.1 million

1.5%

* Super Bowl is expected to bring approximately $5.4 million in additional Sales Tax revenue to METRO

FY2016

FY2017

Proposed Operating Budget

Breakdown by Service Category
FY2016

FY2017

Total FY2017 Proposed Workforce:

4,082
FY2016 Authorized
Workforce

FY2017 Proposed
Workforce

3,984

4,082
Initiatives:
Urban Designer
Office of Innovation
METRO Star Vanpool
Fare Inspectors
Bus/ Rail Operator Trainees

FY2016

$260.2 million

FY2017

$178.2 million
31.5% under FY2016
9

2016 Projected

Capital Improvement Program

Contracted/Obligated + Committed
Non-Obligated Capital

81,521
81,521
-

2017

2018

2019

2020

2021

131,037
128,009

86,431
45,189

98,425
35,609

86,321
7,331

84,607
-

3,028

41,242

62,816

78,990

84,607

10

10

FY2017
Non-Bus Acquisition Examples:
FY17
Budget
Facilities SOGR
$
13.0
El Dorado P&R
$
10.8
US290 Cypress Ramp
$
9.0
Bus SOGR
$
4.6
Burnett Escalator
$
4.6
Rail SOGR
$
2.8
West Belfort P&R
$
4.7
Universal Accessibility Projects
$
3.0
NW Transit Center
$
2.8
Reconfiguration & Parking
Expansion
Magnolia Transit Center
$
2.6
Expansion
West Loop Bus Lane
$
1.4
Westheimer Corridor
$
0.5
Improvements

$131.0 million

Local
Costs
$
10.7
$
9.7
$
1.8
$
4.6
$
2.1
$
2.5
$
0.0
$
1.0
$
0.6

0.5

$
$

1.4
0.5

(in millions)

26.0% under FY2016

10

11

Description

Approved
Proposed
FY2016
FY2017
Budget
Budget
Operating Budget
$
558.3 $
568.1 $
GMP Transfer
172.6
169.8
Capital Budget
260.2
178.2
Debt Service
96.9
99.3
Total
1,088.0
1,015.4

Change

9.8 1.8%
(2.8) (1.6%)
(82.0) (31.5%)
2.4 2.5%
(72.6) (6.7%)

(in millions)

12

September

METRO Board Responsibilities

June 27
June 23

Spring
2015
Finance
begins
discussion
of budget
issues

May 23

June 13 Staff

Budget
Workshop

Board
Retreat

May
Departments
develop
Capital needs

- Budget
Workshop

August
11

- Review of
presents
Discretionary
Financial
Capital
Parameters Projects

Budget
Workshop

May - June

July 1

- Departments
develop
Operating needs
- Capital Budget
due June 3

August
Operating
Budget due - Review of
Operating
Budget
- Review of
Capital Budget

- Two Week Public

Review of Budgets
Sept. 7
- Finance & Audit
Committee Briefing
- Public Hearing
Sept. 21 12:00 PM
- Board Approval
Sept. 22

July

METRO Staff Responsibilities

13