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Metropolitan Council Transportation Division 2008 Operating Budget

The 2008 budget for Metropolitan Transit details revenue projections, budget assumptions, and highlights, emphasizing the need for cost containment and service efficiency to offset revenue shortfalls. The budget includes detailed breakdowns of expenses and revenue sources.

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Metropolitan Council Transportation Division 2008 Operating Budget

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  1. Metropolitan CouncilTransportation Division2008 Operating Budget presented to the Metropolitan Council August 8, 2007

  2. State Transit Revenue Outlook • MVST continues to be a volatile revenue source • Current Feb. 07 MVST forecast significantly down from Feb. 06 forecast • -5% FY07, -11% FY08 and -10% FY09 • 2007 legislative session results impacted long-term funding • MVST phase-in at 36%, not 38% • GF appropriation held at FY07 level for FY08 & FY09; one-time $20 M in FY08 • Hennepin Co. share of Hiawatha LRT operating capped at $5.3 M with no state replacement

  3. Metro Area Transit MVST Revenue Projections(millions) • Actual receipts • Assumed 38% MVST phase-in • MVST phase-in at 36%

  4. CY 2008 Budget Assumptions • No service cuts • No fare increase • No planned service expansion • Address shortfalls through: • Cost containment • Service efficiencies • Administrative cost adjustments • State supplemental budget request • Recommended use of reserves

  5. Metro Transit Budget Highlights • Maintains 2007 service levels • Continued focus on security • Includes diesel fuel at $2.56/gallon • Maintenance challenges with bus fleet average age increase from 4.86 years in 2004 to 8.60 years in 2008 • Light rail vehicle overhaul program • Bus and Rail budgets unbalanced • NorthStar revenue source to fund pre-revenue operations

  6. Metro Transit Bus - 2008 Revenue & Expenses Revenue $237.1M Expenses $239.4M State General Fund $52.1 (22%) Salaries & Benefits $183.4 (77%) MVST $91.0 (38%) Passenger Fares $70.3 (30%) Central NorthStar Capital $4.7 (2%) Materials & Supplies $11.2 (5%) Utilities $5.0 (2%) Fuel $20.4 (8%) RA Allocation $13.9 (6%) All Other Sources $8.7 (4%) All Other Expenses $5.5 (2%) Federal Grants/CMAQ $3.3 (1%) Federal Preventive Maintenance $7.0 (3%) Note: the 2008 Budget is proposed to be balanced with a $2.3M use of reserves.

  7. Metro Transit Rail - 2008 Revenue & Expenses Expenses $25.0M Revenue $24.3M Salaries & Benefits $12.5 (50%) State General Fund $5.3 (22%) Hennepin County $5.3 (22%) Modal Allocations $2.6 (10%) LRV Propulsion $1.1 (4%) MVST $3.7 (15%) Utilities $1.0 (4%) Materials & Supplies $1.8 (8%) RA Allocation $1.0 (4%) Other $0.8 (3%) All Other Expenses $5.0 (20%) Passenger Fares $9.2 (38%) Note: the 2008 Budget is proposed to be balanced with a $0.7M use of reserves.

  8. Metro Transit - Northstar

  9. Metro Transit - Bus & Rail Consolidated

  10. Metro TransitFTEs by Budget Year

  11. Metro TransitReserves – Fund Balance & Retirement Liability $s in millions

  12. MTS Budget Highlights Shortfall • Projected deficit of $420,000 Potential Solutions • State General Fund supplemental budget request for Metro Mobility • Use of fund balance/reserves if necessary Budget Constraints • Metro Mobility increasing demand combined with federally required denial rate leaves little flexibility

  13. Metropolitan Transportation Services2008 Revenue & Expenses Revenue $81.7 M Expenses$82.1 M Metro Mobility $35.4 M 43% MVST $30.3 M 37% State General Fund $34.5 M 42% STAP $25.0 M 30% Planning $3.5 M 4% Fares $5.0 M 6% Local/ Other $1.0 M 1% Contracted Transit $18.2 M 22% Federal $10.9 M 13% • 2008 Budget assumes a $420,000 shortfall • STAP figures exclude fares and other revenues

  14. MTS Revenue and Expenditures $’s in millions *Adjusted for fares retained by providers for comparative purposes.

  15. Historic Reserves and FTEs $s in millions

  16. Transportation Division2008 Revenue & Expenses Revenue $343.7 M Expenses$347.1M MT Bus $239.4 M 70% GF $91.9 M 27% MVST $125.0M 36% MTS $82.1 M 23% Fares $84.5 M 25% Northstar $.6 M <1% Local/ Other $21.1 M 6% MT Rail $25.0 M 7% Federal $21.2 M 6% • 2008 Budget assumes a $3.4 M shortfall for MT & MTS • Assumes a revenue source for Northstar in Other Revenue

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