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Financial Update and Roundtable Discussions

Financial Update and Roundtable Discussions. Agenda. Year In Review and Looking Forward Roundtable Discussions: Financial Information and Communications Revenue generating opportunities Cost savings opportunities Other takeaways for BC Transit. Financial Sustainability.

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Financial Update and Roundtable Discussions

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  1. Financial Update and Roundtable Discussions

  2. Agenda Year In Review and Looking Forward Roundtable Discussions: Financial Information and Communications Revenue generating opportunities Cost savings opportunities Other takeaways for BC Transit

  3. Financial Sustainability • Increasing Demand For Transit • Frequency and reliability • Regional connections • Technology

  4. Financial Sustainability • Cost Pressures • Inflationary cost pressures • Expansion • Capital replacement cycle

  5. Financial Sustainability Increasing Demand For Transit Cost Pressures Sustainability and Affordability

  6. Year in Review - Ridership • Year Over Year • Record ridership in 2010/11(5% growth with 3% service expansion) • 2011/12 ridership marginally lower year over year < 1% • Against Targets • Ridership increased 2% to budget • Victoria Conventional higher than budget 1% • RTS Conventional higher than budget 3%

  7. Year in Review - Costs • Year Over Year • Operating cost per passenger increases • 8% RTS conventional • 7% Victoria conventional • 8% for Custom • Against Targets • Victoria Conventional on target • RTS Conventional 6% below • Custom 2% above

  8. Service Expansion and Ridership Growth

  9. Ridership – Growth in Rides Per Capita

  10. Expenditures – Operating Cost Per Hour and Passenger

  11. Industry Trend – Operating Cost Per Hour Victoria (Conventional) • Operating costs per hour: • Cost / hour increases for Canadian benchmarks (CUTA): • Group 2 (150,000 – 400,000) • average 4.2% per annum • Victoria Conventional • average 2.4% per annum source: 2010 CUTA Fact Book

  12. Industry Trend – Operating Cost Per Hour Regional Transit Systems • Operating costs per hour: • Cost / hour increases for Canadian benchmarks (CUTA): • Group 3 (50,000 – 150,000) • average 5.3% per annum • BC Transit Regional Systems • average 3.6% per annum source: 2010 CUTA Fact Book

  13. Performance Benchmarking source: 2010 CUTA Fact Book

  14. Fuel Price History – Fiscal 2010/11 2011/12 Budget Development

  15. Operating Cost Recovery

  16. Operating Cost Inflation + Capital Replacement Cycle - Passenger Revenue Yield Total Cost of Transit

  17. Funding Model Provincial Contributions – operating and capital funding for inflation and expansion Passenger Revenues – increasing at a rate less than inflationary pressures Local Contributions – fund the remaining cost of transit * Victoria only

  18. Continuous Feedback Regional Finance Workshops Enterprise Investment Initiative BC Transit Workshop

  19. What we heard… • Local Partners want: • Improved Information and Communications • Focus on Cost Control and Containment • Longer Term Financial Information

  20. What we did… • Information and Communication: • 3 Year Budgets – timed with local budget development • Detailed Capital Schedules • Finance Road show in the Fall 2011 • Performance reporting

  21. What we did… • Cost Containment: • Service and system reviews • Entered into fixed price fuel contracts below 2012/13 budgeted fuel price • Frozen compensation levels (year 3 for exempt, year 2 for union) • Internal review that included 10% reduction of excluded staff • Investigated further cost savings opportunities • Identified new revenue generating activities

  22. Moving forward… • Focus on continuous improvement of our vision, mission and values • Leverage our strong partnerships (more road shows, workshops and collaborative interaction) • Be innovative – find new ways to solve old problems

  23. Roundtable Discussions • Financial Information and Communications • Revenue generating opportunities • Cost savings opportunities • Other takeaways for BC Transit

  24. Roundtable Discussions Financial Information and Communications (Budgets, Reports, Forecasts, Performance Reporting, Workshops) What financial information do you need? What is of value and why? Timeliness, Frequency

  25. Roundtable Discussions Revenue Generating Opportunities How can we maximize revenue generating opportunities already identified (Whistler, Transfer policy changes, etc)? What other revenue generating opportunities are there? What are the barriers to entry (resources, partners, etc)? How do we remove these barriers?

  26. Roundtable Discussions Cost Savings Opportunities • How can we maximize cost savings opportunities already identified? • What other cost savings opportunities are there? • What are the challenges with implementation of these opportunities? • How do we overcome these challenges?

  27. Roundtable Discussions Takeaways… What are the top 3 things from your roundtable discussion that BC Transit should be focusing on over the next year?

  28. Thank You!

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