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Metra Board of Directors June 10, 2011 Presented by Alex Clifford Executive Director/CEO

Defeating the Deficit 2011, 2012 and Beyond. Metra Board of Directors June 10, 2011 Presented by Alex Clifford Executive Director/CEO. 2011 Fuel Price Effect On Budget. 1. Metra 2011 Forecast. $ in millions. 2. Metra 2011 Forecast. $ in millions. 3. Metra 2011 Forecast.

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Metra Board of Directors June 10, 2011 Presented by Alex Clifford Executive Director/CEO

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  1. Defeating the Deficit 2011, 2012 and Beyond Metra Board of Directors June 10, 2011 Presented by Alex Clifford Executive Director/CEO

  2. 2011 Fuel Price Effect On Budget 1

  3. Metra 2011 Forecast $ in millions 2

  4. Metra 2011 Forecast $ in millions 3

  5. Metra 2011 Forecast $ in millions 4

  6. Metra 2011 Forecast $ in millions 5

  7. Metra 2011 Forecast $ in millions 6

  8. Funding and fare gaps How we have managed through The future as it stands today Next steps Financial Picture 2012 and Beyond 7

  9. Growing Sales Tax Shortfall Metra 85% Sales Tax and New Transit Funding 2008 – 2013 Actual/Estimated vs. RTA Projections Made in 2007 $353.6 ( In $Millions) CumulativeShortfall Shortfall 8

  10. Growing Fare Gap Metra vs. Peer Agency Fares Monthly Fares, 1990 and 2011 9

  11. Depleting Capital to Fund Operations Actual and Planned Transfers from Capital to Operating 2008-2009 temporary relief from 2008 fare increase & sale tax increase ( In $Millions) 10

  12. Operating Cuts • Management Depletion • Vacancies not filled • Lack of training • Lack of competitive pay • Systems Decline • Outdated IT systems • Outdated financial systems • Lack of strategic technology planning • Operating Cuts • Deferred apprentice program • Uniforms and other customer interface • Fewer Double-Header Locomotives 11

  13. 2011 Cash Situation 2011 Cash Balance Without Transfer of Capital Funds 12

  14. Growing Operating Deficit Metra Historical Financial Results – Percent Growth from 2006 Deficit 2010 Deficit = $319M Expense = $616M Revenue = $296M Expense 2006 Deficit = $250M Expense = $525M Revenue = $275M Revenue 13

  15. Growing Capital Deficit State of Good Repair – Capital Budget* $7.37B NeededOver 10-Years ( In $Millions) Funding needed to achieve a State of Good Repair 14 * 2012 – 2015 amounts are projected estimates † Not inclusive of State of Illinois Bond funding

  16. Growing Funding Deficit Capital Funds / Credits / Other Sources to cover Operating Expense Growth Estimated 2011 Sales Tax Surplus ( In $Millions) 2010 Sales Tax to cover 2009 deficit 15

  17. Operating/Capital Downward Spiral • Reduced On-Time Reliability • Rising Delays • Slow orders • Locomotive failures • Inferior Customer Environment • Heating & Air Conditioning • Station environment • More over-crowding, shorter trains • Service cuts, less frequent service • Failure to Meet Recovery Ratio • Shrinking instead of Growing • Lost New Starts opportunities 16

  18. Request for Finance Committee Meeting Late June Next Steps 17

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