Los Angeles County Metropolitan Transportation Authority

FY14 Budget Overview

Community Advisory Council Meeting May 22, 2013

The Office of Management, Budget & Local Programming

FY14 Proposed Budget Highlights

The FY14 Budget is balanced and focused on following services, programs and projects.

Bus & Rail Revenue Service Improvements:

Orange Line service increases to relieve midday overcrowding. Additional late night service added for Expo and Gold Lines Improved headways for weekend service on all Metro Rail Lines

Deferred Maintenance Capital Program :

Total Deferred Maintenance Program is $261M Includes facilities maintenance, bus & rail vehicle maintenance/acquisitions and various stops & stations projects

Transit & Highway Capital Programs:

MR Transit is planned for $1.1B Design/early Measure R construction on: Westside Subway Extension sections 1-3 Regional Connector Crenshaw LRT I-405 Soundwall Improvements Highways are planned for $441M

System Safety & Security Capital Program:

Total System Safety & Security Program is $37M

$20M specifically allocated to address Metro Blue Line (MBL) Safety Improvements
System-wide camera/video enhancements for improved security

Special Programs:
Gate latching for the subway system to rollout through August
Full year operation of I-110 & I-10 Express Lanes Division Inspection Training Programs to prepare for next generation workforce 2

Summary of Resources
Resources and Expenditures ($ in millions) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Sales Tax, TDA and STA Revenues (1) Proposition A Proposition C Measure R Transportation Development Act (TDA) State Transit Assistance (STA) Total Sales Tax, TDA, & STA Operating & Other Revenues Passenger Fares Express Lane Tolls Advertising Other Revenues (2) Subtotal Operating & Other Revenues Capital and Bond Resources Grants Reimbursements (3) Bond Funding Capital Funding from Prior Years Subtotal Capital and Bond Resources Total Resources Agencywide Expenditures (Deficit) / Surplus Note: Totals may not add due to rounding. $ 1,090.1 571.0 1,661.1 4,575.1 4,575.1 $ 987.4 299.8 558.9 1,846.1 4,891.1 4,891.1 -9.4% -47.5% 11.1% 6.9% 6.9% $ FY13 Budget 674.6 674.6 674.6 337.3 123.6 2,484.7 345.3 11.0 24.3 48.7 429.3 $ FY14 Proposed 708.4 708.4 708.4 354.2 115.5 2,594.9 345.1 12.4 20.5 72.2 450.2 % Change FY13-FY14 5.0% 5.0% 5.0% 5.0% -6.6% 4.4% -0.1% 12.7% -15.6% 48.3% 4.9%

$ $

$ $

$ $ $ $

$ $ $ $

(1) (2)

Sales tax and TDA revenues for FY13 Budget represent reforecasted levels based on UCLA's Anderson School Update. Other Revenues includes lease revenues, legal settlements, vending revenues, film revenues, county buy down, auto and other registration miscellaneous fees, transit resources. court fees, CNG credits, EZ Pass, investment income and other miscellaneous revenues. (3) Includes grant reimbursement of preventative maintenance operating capital cost and highway capital costs.

3 3

Expenditures by Program
Program Type (1)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

($ in millions)

FY14 Proposed

% to Total

Metro Operations and Capital: Bus/Rail Operations and related activities Construction Capital Operating Capital Sub-Total Highway Programs: Capital Projects Subsidy Program Sub-Total Regional Subsidy Funding Programs: Regional Transit and Local Agencies Wilshire BRT & Other Federal Pass Throughs Fare Assistance Sub-Total Freeway Services (2) General Planning and Programs Programs and Studies General Planning and Programming Legal, Audit, Transit Court, Oversight and Other Property Management & Development Sub-Total Debt Service Total Expenditures
Note: Totals may not add due to rounding
(1) (2)

1,338.9 1,148.6 366.8 2,854.3

27.4% 23.5% 7.5% 58.4%

258.3 182.3 440.6

5.3% 3.7% 9.0%

1,008.3 48.1 10.5 1,066.9 73.1

20.6% 1.0% 0.2% 21.8% 1.5%

26.8 47.8 29.6 19.5 123.7 332.5 $ 4,891.1

0.5% 1.0% 0.6% 0.4% 2.5% 6.8% 100.0%

Combines related program costs regardless of GAAP reporting criteria used for fund financial presentation Freeway Services include FSP, Express Lanes, Call Boxes, RIITS and Rideshare

Expenditure Summary: By Department

Department ($ in Millions) 1 Increases 2 3 4 5 6 7 8 Transit Project Delivery Highway Project Delivery Bus & Rail Operations Board of Directors Financial Services Management Audit Services Increases Total $ 862.2 86.7 290.8 17.2 22.3 2.3 $ 1,281.5 $ 994.4 94.9 297.3 22.8 24.6 2.3 $ 1,436.2 $ 132.1 8.1 6.5 5.6 2.3 0.1 $ 154.7 15.3% 9.4% 2.2% 32.7% 10.3% 2.3% 12.1% FY13 Budget FY14 Proposed Change % of Change

10 Decreases 11 12 13 14 15 16 17 Economic Development Operations Capital Chief Executive Office Countywide Planning & Development Administrative Services Communications Decreases Total $ $ 123.4 286.2 227.9 53.9 53.4 11.1 755.9 $ $ 56.1 245.5 214.1 52.8 53.1 11.1 632.9 $ (67.2) (40.7) (13.8) (1.0) (0.2) $ (123.0) $ $ $ 31.8 41.4 21.6 -54.5% -14.2% -6.1% -1.9% -0.5% -16.3% 1.6% 4.6% 16.1% 8.4% 6.9%

18 Total for Controllable Expenditure 19 Wage, Benefits and Allocation Items 20 Subsidy and Debt 21 Exposition Construction Authority* 22 Total Proposed

$ 2,037.4 $ $ 903.6 258.4

$ 2,069.1 $ $ 945.0 280.0

$ 1,375.7

$ 1,597.1

$ 221.3

$ 4,575.1

$ 4,891.1

$ 316.1

* Expo budget will change based on Expo Board's adoption of their FY14 budget.

Bus & Rail Service Change Summary

Bus Service:
Directly Operated & Contract Service: Hours added to reflect revised scheduled run times. Orange Line: Increase midday service to reduce overcrowding

Rail Service: Late-Night Service:

Blue, Purple and Red Lines: In FY13 we improved headways from 12 minutes to 10 minutes from 8pm-midnight. Ridership subsequently increased by 60% in that time period. Expo & Gold Lines: Following suit, in FY14 headways on Expo and Gold line will be improved from 12 minutes to 10 minutes from 8pm-midnight.

Weekend Service:
All Metro Rail Lines: Improve headways from 12 minutes to 7.5 minutes

FY14 Proposed Service Levels

Revenue Vehicle Service Hours Bus Directly Operated Silver Line Orange Line Contract Service Subtotal Bus Rail Blue Line Green Line Gold Line Expo Line Subtotal Light Rail Heavy Rail Subtotal Rail Combined FY13 Forecast 6,327,663 71,362 117,096 519,176 7,035,297 282,384 92,819 158,941 113,325 647,469 296,360 943,829 7,979,126 FY14 Proposed 6,327,663 71,362 130,516 519,176 7,048,717 294,483 93,589 174,613 124,161 686,845 325,510 1,012,355 8,061,072 Increase from Fcst 13,420 13,420 12,099 770 15,672 10,836 39,377 29,150 68,527 81,947 % Inc 0 0 11% 0% 0.2% 4% 1% 10% 10% 6% 9.8% 7.3% 1%

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Includes service increases for improved headways, weekend & late night additions and mitigation of midday overcrowding on the Orange Line

Operating Statistics
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 RVSH Impact on Operating Statistics Bus Subsidy/Boarding Cost/Pass Mile Boarding/RVSH Fare Recovery Rail Subsidy/Boarding Cost/Pass Mile Boarding/RVSH Fare Recovery Combined Subsidy/Boarding Cost/Pass Mile Boarding/RVSH Fare Recovery FY13 Budget $1.82 $0.65 51.33 28.0% FY14 Proposed $1.88 $0.66 52.17 27.0% % Change 3.3% 1.5% 1.6% -3.6% Improvement No No Yes No

$2.37 $0.52 110.71 24.0%

$2.04 $0.44 122.64 25.4%

-13.9% -15.4% 10.8% 5.8%

Yes Yes Yes Yes

$1.95 $0.61 58.58 27.3%

$1.92 $0.58 61.02 26.2%

-1.5% -4.9% 4.2% -4.0%

Yes Yes Yes No

Operating Statistics by Mode

Bus FY13 Budget 6,856 77,471 FY14 Proposed 7,049 78,667 FY13 Budget 953 20,356 7,532 Rail FY14 Proposed 1,012 21,279 8,096 FY13 Budget 7,808 97,827 7,532 Total FY14 Proposed 8,061 99,946 8,096
1 2 3

Service Statistics by Mode Service Provided (000): Revenue Hours Revenue Miles Train Miles Service Consumed (000): Unlinked Passenger Passenger Miles Revenue & Cost Data(000): Fare Revenue Advertising/SCRRA Operating Cost Statistics: Fare Recovery % Boardings/Hr Revenue/Hr Cost/Hr Subsidy per Boarding Fare Revenue per Boarding FTE's per thousands Operators per RSH Mechanics per RSM Service Attendants RSM MOW Inspectors per RM * Transit Operations Supervisors * per route mile

% Inc 2.8% 1.5%

% Inc 6.3% 4.5% 7.5%

% Inc 3.2% 2.2% 7.5%

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

351,927 1,435,863

367,753 1,484,885

4.5% 3.4%

105,448 639,656

124,152 771,985

17.7% 20.7%

457,375 2,075,519

491,905 2,256,870

7.5% 8.7%

$ 265,671 $ 27,821 $ 934,284

$ 258,031 $ 23,572 $ 972,954

-2.9% $ 79,603 -15.3% $ 2,600 4.1% $ 330,516

$ 87,110 $ 2,191 $ 342,729

9.4% $ 345,274 -15.7% $ 30,421 3.7% $ 1,264,800

$ 345,142 $ 25,763 $ 1,315,684

0.0% -15.3% 4.0%

$ $ $ $

28.4% 51.33 42.81 136.28 1.82 0.75

$ $ $ $

26.5% 52.17 39.95 138.03 1.88 0.70

-6.7% 1.6% -6.7% 1.3% 3.2% -7.9%

$ $ $ $

24.1% 110.71 86.30 347.00 2.35 0.75

$ $ $ $

25.4% 122.64 88.21 338.55 2.04 0.70

5.5% 10.8% 2.2% -2.4% -13.3% -7.9%

$ $ $ $

27.3% 58.58 48.11 161.98 1.94 0.75

$ $ $ $

26.2% 61.02 46.01 163.21 1.92 0.70

-3.9% 4.2% -8.2% 0.8% -1.2% -7.9%

0.53 0.01 0.01 0.04

0.53 0.01 0.01 0.04

0.0% 0.0% 0.0% -2.7%

0.38 0.01 0.01 2.45 0.11

0.36 0.01 0.01 2.45 0.11

-5.9% 0.0% 0.0% 0.0% -5.9%

0.55 0.01 0.01 2.45 0.06

0.54 0.01 0.01 2.45 0.05

-1.8% 0.0% 0.0% 0.0% -3.4%

FY14 Proposed Operating Capital

Operating Capital Projects plan for $366.8M in FY14; Total Rail mode budget comprises $80.7M or 22% of the total Operating Capital Budget. Older rail lines such as the Blue Line and Red Line have 42% and 47% of the allocations respectively for the rail mode subtotal. Total Bus/Tollways mode budget takes $215.9M or 58% of the total Operating Capital budget Infrastructure and system-wide accounts for $70.1M or 20% of Operating Capital budget

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Measure R
Transit Programs

Transit Construction Projects plan for $1.12B in FY14; $711.2M increase over forecasted FY13 expenditures of $410.6M. Net increase of $43.5M over FY13 budget Transit Planning Projects plan for $26.8M in FY14; $19.4M greater than forecasted FY13 expenditures of $7.4M. Net increase of $5.0M over FY13 budget Measure R Transit Program plans for $1.15B in FY14; $730.6M greater than forecasted FY13 expenditures of $418.0M. Net increase of $48.6M over FY13 budget

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Highway Projects
Project (In $Millions) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I-405 Car Pool Lane HOV Construction at Rte. 5/14 Interchange Phase II ACE Grade Separation I-710 South Early Action Projects Soundwall Packages I-710 North Gap Closure I-605 Corridor "Hot Spot" Highway Operational Improvements-Virgenes/Malibu High Desert Corridor SR-134 Improvement Hollywood Way/Alameda Highway Operational Improvements-Arroyo Verdugo 405 110 105 SR91 Ramp & Interchanges I-5 N Enhance SR14/Kern Cnty SR-138 Capacity Enhancements HOV Lane On 405 From Rte. 90 To Rte. 10 - Design Sub-Total Freeway Beautification Program $ Total 181.4 100.0 32.0 30.0 18.8 17.6 10.4 10.3 6.5 5.0 4.3 2.3 1.5 1.1 0.9 422.2 3.0 15.4 $ 440.6 % to Total 41.2% 22.7% 7.3% 6.8% 4.3% 4.0% 2.4% 2.3% 1.5% 1.1% 1.0% 0.5% 0.3% 0.3% 0.2% 95.8% 0.7% 3.5% 100.0%

19 Project Administration 20 21 Total Highway Projects

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Regional Subsidies
Regional Subsidy Funding Program ($ in thousands)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

FY12 Actual

FY13 Budget

FY14 Proposed

FY13 to FY14 $ Change

Regional Transit: Municipal and Local Operators $ Access Services Metrolink Regional Transit Subtotal Local Agencies: Prop A, Prop C and MR Local Returns TDA Articles 3 & 8 Call for Projects Transit Oriented Development Local Agencies Subtotal Federal Pass Throughs: Wilshire BRT Regional Grantee-FTA JARC Program Captl & Ops New Freedom Captl & Operating Highway Pass Through Program Federal Pass Throughs Subtotal Fare Assistance: Immediate Needs Transportation Rider Relief Shore/General Relief Tokens Fare Assistance Subtotal Regional Subsidy Funding Program Total Note: Totals may not add due to rounding. $

278.6 50.0 59.7 388.3

287.2 57.0 78.2 422.4

333.2 66.8 79.1 479.1

46.0 9.8 0.9 56.7

373.2 22.8 40.3 436.3

366.3 25.4 80.2 5.2 477.1

412.5 30.9 79.4 6.4 529.2

46.2 5.5 (0.8) 1.2 52.1

2.8 2.9 0.1 1.8 0.3 7.9

21.2 5.2 1.9 1.0 1.7 31.0

30.9 5.2 5.0 4.8 2.2 48.1

9.7 3.1 3.8 0.5 17.1

4.8 2.3 0.5 7.6 840.1 $

5.0 5.0 0.5 10.5 941.0 $

5.0 5.0 0.5 10.5 1,066.9 $

125.9

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Amendments
Increases to non-represented salaries (2% or 5%) and ranges (10%)

Add 44 FTEs to support capital projects, improve safety, and enhance customer service

Increase Expo Phase II budget $87 million to match Construction Authority (no change to LOP)

Add $3.0 million for I-5 North capacity enhancements

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