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Transit Revenue 2009

VIEWS: 10 PAGES: 14

									TRANSIT REVENUE AND FUNDING UPDATE
     Robert Dunlavey – Director Transit & Parking
           Joanne Parker – Transit Planner
                   March 10, 2009
Agenda
 – Overview of Transit Revenue Sources
 – Overview of Transit Revenue Uses
 – Recent Developments in Transit Funding
 – FY08/09 and FY 09/10 Transit Budgets
 – FY09/10 Uncertainties
 – FY10/11 and Beyond Funding Strategies
Overview of Transit Revenue Sources
 • Federal
   – Federal Transit Administration Formula Funds
 • State
   – Transportation Development Account IV
   – State Transit Assistance
   – Proposition 1B (capital only)
 • Regional
   – Air District’s Transportation Fund for Clean Air
 • Local
   – Sonoma County Transportation Authority’s Measure M
   – Fares
Overview of Transit Revenue Uses
 • Federal
    – Preventative Maintenance, capital replacement, operating (historically),
      competitive grants for capital expansion
 • State
    – TDA IV – operating or capital
    – STA – operating or capital
    – Proposition 1B – capital only
 • Regional
    – TFCA – competitive smaller grants, both capital and operating
 • Local
    – Measure M – operating or capital
    – Fares – operating or capital
Recent Developments in Transit Funding
 • Federal
    – Passage of American Recovery and Reinvestment Act (ARRA)
    – Reauthorization of Federal Transportation Legislation 2009/10
 • State
    – Dropping sales tax collection equates to lower TDA revenues
    – State Budget reduced FY08/09 STA payments and eliminates STA
      funds for 5 years
    – Proposition 1B Funds supported by State’s ability to sell bonds,
      currently frozen until further notice (September 2009?)
 • Regional
    – TFCA funds backed by shrinking Vehicle License Fees
 • Local
    – Dropping sales tax means lower Measure M revenues
Developments in Transit Funding
• Federal
  – ARRA adds $3.6m for preventative maintenance for 18 months
• State
  – FY08/09 TDA reduced $437,851 (9% less)
  – FY08/09 STA reduced $514,639 (47% less)
  – FY08/09 Prop. 1B funds frozen $2.1m (Hybrid Bus Purchase)
• Local
  – FY08/09 Measure M reduced $44,068 (7% less)
  – FY08/09 fare revenue up $93,000 (up 9%)
 FY08/09 Transit Operating Budget
 Original Revenues                                  Revised Revenues
• TDA IV           $ 4,743,436                • TDA IV               $ 4,305,585
• STA              $ 1,100,000                • STA                  $    585,361
• Measure M $            620,671              • Measure M            $    576,603
• Other*           $ 4,937,506                • Other*               $ 4,937,506
                                              • Reserves           $      996,558
• TOTAL            $11,401,613                • TOTAL                  $11,401,613
 *Other includes fares (15% of budget), federal formula funds, and misc. smaller grants.
 Beginning FY08/09 TDA-IV reserve $3.5 million; ending FY08/09 $2.5
 million.
    FY09/10 Transit Operating Budget
Original Revenue Estimate                        Revised Revenue Estimate
• TDA IV              $4,582,915                 • TDA IV             $ 4,310,541
• STA                 $1,762,000                 • STA                 $            0
• Measure M $ 620,671                            • Measure M $             518,943
• Other*              $3,834,414                 • Other*             $ 3,834,414
                                                 • Reserves          $ 2,136,102
•     TOTAL           $10,800,000                •   TOTAL             $10,800,000

    *Other includes fares (15% of budget), federal formula funds, and misc. smaller grants.
    Beginning FY09/10 TDA-IV reserve $2.5 million; ending FY09/10 $363,898.
FY08/09 – FY09/10 Budget Summary
• FY08/09 total loss of revenues is 9%
• FY09/10 and forward STA revenue is zero
   – STA revenues were 16% of FY09/10 budget
• FY08/09 to FY09/10 budgeted expenses down
  5.3%
• TDA-IV reserves of $3.5 million enables transit
  service levels to remain “as is” through
  FY09/10
FY09/10 Operating Budget Uncertainties
 • Continuing decline in sales tax revenues
    – Projected 7-10% decline for FY08/09 could
      grow
 • Fuel price expense volatility
    – Last 7 years ave. 25% increase every year
 • Department reorganization costs to transit
    – Currently estimated at $300,000
 • Economic crisis impact to transit ridership?
FY10/11 Forward Funding Strategies
• FY09/10 Transit Budget reduced 5.3% without
  reduction to service
   – Includes increases to fuel, overhead and retirement
• ARRA preventative maintenance funds will end after
  FY09/10
• Sales tax projected to not recover until 2014
• TDA-IV reserves sufficient to maintain service levels
  through FY09/10
• Without increases in revenue, service cuts will be
  required for FY10/11
   – Projected 20% revenue shortfall for FY10/11
FY10/11 Forward Funding Strategies
• Structural revenue problem will result in 20% service
  cuts after FY09/10
• Maintenance of current service levels critical to
  continued support of increasing ridership
• Transit service expansion (particularly increased
  frequency) required to meet all local and state
  greenhouse gas reduction goals
• Revenue/funding from all levels (federal, state, regional
  and local) necessary to maintain current transit service
  and/or reach greenhouse gas reduction goals
FY10/11 Forward Funding Strategies
• Federal
  – Advocate for operating expenses to be eligible use of federal
    funds
  – Advocate for increased share of federal transportation funding
    to flow towards transit service


• State
  – Encourage State to backfill the elimination of the STA revenues
    by creating a reliable source for operating funds
  – Advocate for transit to be an eligible carbon credit market fund
    recipient
FY10/11 Forward Funding Strategies
• Regional
  – Support any efforts the MTC takes towards regional funding
    solutions (gas tax, doubling of the ¼ cent sales tax for TDA-IV)
• Local
  – Encourage any possible flexing of current Measure M funds to
    support transit operations

  – Additional transit fare increases
     – fare increased in August 2007 & August 2008

  – Utilize City parking district funds or redevelopment funds to
    support the maintenance or expansion of transit service levels

								
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