Fiscal Year 2006-2007 Budget

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					Fiscal Year 2006-2007 Budget
S a c r a m e n t o R e g i o n a l Tr a n s i t D i s t r i c t




                            Sacramento, California
Table of Contents
 Fiscal Year 2006-2007 Budget                                      Table of Contents


Table of Contents ………………………………………………….... 1

General Manager/CEO Budget Message ………………………….. 3

Board of Directors …………………………………………………... 5
     Budget Adoption Resolution………………………………………….. 7

Executive Team ………………………………………………............. 9

Organizational Structure………………………………………….... 11

District Overview
      Service Area ………………………………………………………. 13
      District Profile …………………………………………………....... 14
      Strategic Plan ……………………………………………………... 17
      Performance ….………………………………………………….... 19
      Financial Policies ………………………………………………....... 21
      Budget Process ……………………………………………………. 24
      Trends ……………………………………………………………. 25
      Peer Comparison …………………………………………………... 27

Operating Budget Summary
        Accomplishments & Goals …………………………………………………..                         33
        Fund Balance……………………………………………………....                                  38
        Revenues ……………………………………………………........                                 39
        Expenditures ……………………………………………………....                                 44
        Positions ………………………………………………….............                            50
        Forecast ………………………………...........................................      51

Division Budgets
        Office of the General Manager ………………………….....................         53
        Office of Legal Counsel …………………………...............................     55
        Facilities & Business Support Services Division …………………………            56
        Operations Division ……………………………...............................        58
        Administrative Services Division …………………………...................        60
        Engineering & Construction Division ………………………….............           62
        Finance Division …………………………........................................   64
        Planning & Transit System Development Division ……………………….             66



                                         1
 Fiscal Year 2006-2007 Budget                                              Table of Contents cont.


Capital Improvement Program
     Revenues …………………………………………….................... 69
     Expenditures ………………………………..................................... 69

Appendix
        Acronyms ……………………………………………………........ 75
        Glossary ……………….................................................................... 77




                                                2
General Manager/CEO Budget Message
 Fiscal Year 2006-2007 Budget                                                  Budget Message


                     General Manager/CEO’s Budget Message

As the Sacramento Regional Transit District (RT) approaches Fiscal Year (FY) 2007,
transportation remains a key issue in the region. Transit ridership is at an all time high. At the
same time, continued growth in both population and employment emphasizes the need for
expansion as well as greater investment in public transportation across the region.
Maintaining service, living within our means, and meeting growing demand are our challenges
for this new Fiscal Year.

The amount of lost time and productivity associated with traffic and increasing congestion has
a tremendous impact on the regional economy, environment, and quality of life. A quality
transit system in the Sacramento metropolitan area is a necessity for the region to remain
competitive with other urban areas and meet increasing growth.

Our FY 2007 Budget carefully balances moderately growing revenues with higher operational
costs and capital replacement needs while enhancing service consistent with our strategic plan
and FY 2007 service plan. The FY 2007 Adopted Operating Budget totals revenues and
expenditures of $148.5 million, reflecting an increase of $14.7 million (11.7%) from the FY
2006 Operating Budget.

                                         (Dollars in Thousands)


                 FY 2004        FY 2005     FY 2006   FY 2007            FY 2006 to FY 2007
                  Actual         Actual    Budgeted Adopted             Amount       Percent
Operating          $115,449       $122,409   $133,844  $148,538            $14,694       11.0%

We estimate 34.2 million passengers in FY 2007, up 1.4 million (4.2%) from our latest FY 2006
estimate (32.8 million). Fare revenue will also grow as we start the second phase of our fare
restructuring program.

Our FY 2006 Capital Budget increase includes $57.2 million for new projects and additional
funding for continuing projects.

                                         (Dollars in Thousands)


                 FY 2004        FY 2005     FY 2006   FY 2007            FY 2006 to FY 2007
                  Actual         Actual    Budgeted Adopted             Amount       Percent
Capital            $25,408        $110,368    $61,772  $118,924            $57,152       92.5%

Most of the new FY 2007 funding supports two major projects; new bus procurement to
provide for replacement of the District’s first generation compressed natural gas fleet
($44.0 million) and completion of the Amtrak/Folsom Corridor project ($7.9 million). The
adopted budget includes a list of all currently funded capital projects and a total forecasted
spending plan of $118.9 million for FY 2007.



                                                  3
 Fiscal Year 2006-2007 Budget                                             Budget Message cont.

In balancing our resources and expenses, the FY 2007 Budget focuses on core activities that
meet District goals and priorities as established by our strategic plan and FY 2007 service plan.
At the same time, we’re also making progress on other major projects, including expansion of
light rail service to Cosumnes River College, limited stop light rail service along the Highway
50 Corridor, Northeast Corridor limited stop service, and light rail service expansion to
Sacramento International Airport.

With this, we are proud to have the opportunity to serve you.

Sincerely,

Beverly A. Scott, Ph.D.
General Manager/CEO




                                               4
Board of Directors
Fiscal Year 2006-2007 Budget                               Board of Directors


                                 Board of Directors

                                Roger Dickinson, Chair
                                 County of Sacramento

                               Ray Tretheway, Vice Chair
                                    City of Sacramento

                                      Steve Cohn
                                   City of Sacramento

                                   Lauren Hammond
                                    City of Sacramento

                                      Eric King*
                                     City of Folsom

                                 Roberta MacGlashan
                                  County of Sacramento

                                     Don Nottoli
                                  County of Sacramento

                                    Bonnie Pannell
                                   City of Sacramento

                                 David Sander, Ph.D.
                                 City of Rancho Cordova

                                    James Shelby*
                                  City of Citrus Heights

                                     Rick Soares*
                                    City of Elk Grove
                                      *Regional Member




                                             5
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Executive Team
Fiscal Year 2006-2007 Budget                                               Executive Team




                                General Manager/CEO

                                   Beverly A. Scott, Ph.D.




                               Deputy General Manager

                                         Mike Wiley




                                Executive Managment

                                        Gloria Boyce
                                     Chief Financial Officer

                                      Larry Corcoran
                           Compliance and Quality Assurance Auditor

                                     Z. Wayne Johnson
                                  Chief Administrative Officer

                                      Mark Lonergan
                                    Chief Operating Officer

                                          Mike Mattos
                         Chief of Facilities & Business Support Services



                                  Chief Legal Counsel

                                        Mark Gilbert




                                               9
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Organizational Structure
 Fiscal Year 2006-2007 Budget                                                              Organizational Structure


Organizational Structure

                                                           Citizens




                                                    Board of Directors




                                                     General Manager                    Chief Legal Counsel


            Compliance & Q/A Auditor


                                                 Deputy General Manager




     Facilities &                                                                                               Planning &
                                             Administrative           Engineering &
  Business Support          Operations                                                    Finance             Transit System
                                              Service/EEO              Construction
       Services                                                                                                Development



     Facilities                Bus          Equal Employment                              Finance/                Service
                                                                      Systems Design
    Maintenance           Transportation       Opportunity                                Treasury               Planning



      Safety &              Operations          Human                  Civil & Track     Office of              Purchased
   Environmental             Training          Resources                  Design       Mgmt & Budget          Transportation



    Information                                Employee                  Program                                Community
                         Bus Maintenance
    Technology                                 Relations                 Control                                Bus Service



                                               Customer                  Project                                  Public
    Procurement             Light Rail
                                                Service                Management                              Information




                          Police Services                                                                       Real Estate




                                                                                                                Accessible
                          Scheduling
                                                                                                                 Services




                                                              11
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District Overview
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                                                                                                                                                   Sacramento Regional Transit Service Area Map




                                                                                                                                             RD.
    Fiscal Year 2006-2007 Budget                                                         District Overview cont.


District Profile

Population

Increases in the population of Sacramento County (26.7%) and the six-county region (33.1%)
are predicted through 2025. Net migration into the area will account for almost 55% of the
increase; natural increase will make up the remaining 45%.

                                     2005             2010             2015             2020           2025
Sacramento County                    1,361,637        1,454,596        1,539,049        1,633,676      1,725,710
Six-County Region1                   2,151,479        2,326,308        2,491,671        2,677,831      2,864,387

1
 Sacramento, El Dorado, Placer, Sutter, Yolo, and Yuba counties.
Source: Sacramento Area Council of Governments, Data for Regional Analysis


Employment

Job growth will continue to increase through 2025 for both Sacramento County (30.1%) and
the six-county region (35.7%). Because Sacramento is the state capital and also the county
seat, government jobs make up the largest sector of the job base, followed by professional and
business services, retail services, and educational and health services.

                                     2005             2010             2015             2020           2025
Sacramento County                      657,100          734,253          775,273          816,876        854,804
Six-County Region2                   1,057,823        1,195,059        1,275,187        1,358,037      1,435,875

2
 Sacramento, El Dorado, Placer, Sutter, Yolo, and Yuba counties.
Source: Sacramento Area Council of Governments, Data for Regional Analysis


Climate

Sacramento enjoys a mild Mediterranean climate with an abundance of sunshine year-round.
Prevailing winds are southerly all year. Over half of total rainfall occurs from November
through February. Fog, sometimes dense, may occur during the wet, cold season. 3

                                                                                              Annual
                                                 January                     July             Average
      Average High                                         55                    94                     74
      Average Low                                          41                    61                     49
      Average Precipitation                              4.2"                  0.1"                 18.0"
      Prevailing Wind/Speed                     SE @ 7.2 mph         SSW @ 8.9 mph           SW @ 7.8 mph
      % Possibility of Sunshine                          48%                   97%                    78%

3
    Source: NOAA Technical Memorandum NWS WR-272, “Climate of Sacramento, California”


                                                         14
 Fiscal Year 2006-2007 Budget                                             District Overview cont.


District Profile cont.

Customers

A survey sample of 2,300 bus and rail passengers, conducted in February-March 2006,
provided the following information:

          72% of RT riders rated the system positively (“5” or higher on a “7” point scale).

          56% of RT riders use a mix of light rail and bus service
          25% of RT riders use only buses
          19% of RT riders use only light rail

          43% of RT riders use transit service six or seven days a week
          38% of RT riders use transit service four or five days a week
          19% of RT riders use transit service one to three days a week

          51% of trips were for work
          11% of trips were for K – 12 school
           9% of trips were for college or vocational school

          54% Women
          46% Men

          56% of RT riders live within the city of Sacramento
          44% of RT riders live outside the city of Sacramento


          Top 5 customer satisfaction ratings were reported for:

            •   Availability of schedule information
            •   Safe and competent operators
            •   Friendly and courteous drivers
            •   Safety from crime on transit vehicles
            •   Frequency of service on the weekdays


          Bottom 5 customer satisfaction ratings were reported for:

            •   Shelters and benches at bus stops and rail stations
            •   Freedom from nuisance behavior of others
            •   Cleanliness of transit vehicles
            •   Frequency of service on the weekend
            •   Time service stops running in the evenings


                                               15
 Fiscal Year 2006-2007 Budget                                                                            District Overview cont.


District Profile cont.

Facts

                                                 Constructs, operates, and maintains a comprehensive mass
         Sacramento Regional Transit
                                                 transportation system that serves 418 square miles in Sacramento County




                              Bus Service                                                    Light Rail Service

        Power        Compressed Natural Gas, Diesel, Gasoline                Power                        Traction

     Routes                               97                                  Miles                        36.87

    Schedule                  5:00 am to 11:30 pm daily                                    4:30 am to 1:00 am daily (Blue Line)
                                                                            Schedule
                                                                                           4:30 am to 7:00 pm daily (Gold Line)
        Stops                            3,600
                                                                              Stops                          45
                                 254 CNG Buses;
     Vehicles                                                               Vehicles                         76
                      17 Shuttle Vans (10 Diesel, 7 Gasoline)




                                                                                         Passenger Amenities/
                           Paratransit
                                                                                           Customer Service
     Passenger                                                              Transfer Centers                      25
        Trips                       296,763 (FY05)
      Provided                                                                Park & Rides                        18
         Service                                                            Annual Customer
          Miles                    3,369,898 (FY05)                                                           488,166
                                                                              Service Calls
        Provided
                                                                           Customer Info line             (916) 321-2877
        Vehicles                            91
                                                                                 Website                  www.sacrt.com




                                                                History

                Apr 1, 1973        Began operations by acquiring the Sacramento Transit Authority

                    1973           Completed new maintenance facility and purchased 103 new buses

                                   Opened the 18.3-mile light rail system, linking the northeastern Interstate 80 and
                    1987
                                   southeastern Highway 50 corridors with Downtown Sacramento
                                   Completed the first light rail extension to Mather Field/Mills station along the
                   Sep 1988
                                   southeastern corridor

                   Sep 2003        Opened the South Line, extending light rail to South Sacramento

                   Jun 2004        Extended light rail from Mather Field/Mills to Sunrise Boulevard

                   Oct 2005        Extended light rail from Sunrise Boulevard to Folsom, including four new stations




                                                                  16
 Fiscal Year 2006-2007 Budget                                            District Overview cont.


Strategic Plan

Adopted by the Board of Directors in January 2004, the RT strategic plan establishes RT’s
commitment to become a more efficient and competitive public transportation provider in the
Sacramento region.

The Strategic Plan outlines the way RT will implement the Regional Metropolitan
Transportation plan and defines RT’s vision and mission. These purposes require that RT align
its goals with the Region’s, shape activities to support the goals, responsibly manage the
things that are done, commit resources, and measure performance.

RT acts as the Region’s focal point for transportation research and development, strategic
planning and system assessment, intermodal research coordination and facilitation, and transit
education and safety training. RT’s programs involve multiple modes of transportation.

This plan is RT’s commitment to the people of the Sacramento Region to make their lives
better. RT will do this through regional leadership, ethical and sound business practices, and
financial sustainability. RT will continue to focus on customer service and provide safe, clean,
and reliable transportation service. To prepare for future needs in the 21st Century, RT will
build and continuously develop a highly skilled transportation workforce. We will increase our
readiness to respond to transportation emergencies that disrupt communities and affect our
customers throughout the region. RT will continue to challenge itself to meet the growing
transportation needs of the Sacramento Region.

The RT Strategic Plan on the following page is the result of the hard work of many of RT’s
employees and partners who are dedicated to leading the way to transportation excellence in
the 21st Century. The plan is best seen as an evolving process, not a rigid or fixed document.
This strategic plan will change as the needs of the Region change and reflect the
transportation requirements of the Region.




                                              17
 Fiscal Year 2006-2007 Budget                                                                District Overview cont.


Strategic Plan cont.

                                            To promote and enhance regional mobility and serve the public by
             Our Mission                    providing quality transit services and solutions that improve the
                                            overall quality of life in the Sacramento region



 A coordinated regional public transportation system that delivers
 quality and environmentally sensitive transit services that are an
                                                                                           Our Vision
 indispensable part of the fabric of communities throughout the
 Sacramento region




                                               Our Values & Goals


                  Values                                                      Goals

             Customer service               1 Provide safe, reliable, comfortable, and affordable transit services.

     Ethical & sound business practices     2 Use industry best practices and comply with government requirements.

          Financial sustainability          3 Improve efficiency and increase and preserve funding,

             Quality workforce              4 Attract and retain a qualified, talented, and committed workforce.

            Regional leadership             5 Work with all stakeholders to create a “world class” transit system.




                                                        18
 Fiscal Year 2006-2007 Budget                                                                 District Overview cont.


Performance

RT’s strategic plan commits RT to become a more efficient and competitive public
transportation provider. The plan identifies RT’s primary goals and drives performance. To
achieve these goals, RT links them to key performance measures.

                                 Key Performance Measures/Vital Statistics

                                           FY 2004      FY 2005        FY 2006      FY 2007       FY 2006 to FY 2007
                                    Goal   Actuals      Actuals        Budget       Adopted       Amount      Percent
Efficiencies Measures
  Cost Per Passenger                 3
    Bus                                         $3.91          $4.32        $4.48       $5.14           $0.66     14.7%
    Rail                                        $3.33          $3.21        $3.14       $2.86         ($0.28)     (8.9%)
  Cost Per Revenue Mile              3
    Bus                                        $8.69         $9.61        $10.49       $11.90           $1.41     13.4%
    Rail                                      $12.24        $11.91        $12.85       $12.16         ($0.69)     (5.4%)
  Cost Per Revenue Hour              3
    Bus                                      $107.17       $105.73       $113.03      $128.23         $15.20      13.4%
    Rail                                     $235.21       $207.05       $230.04      $226.13         ($3.91)     (1.7%)
  Subsidy Per Passenger              3         $2.72         $3.05         $3.07        $3.25           $0.18       5.9%
Effectiveness Measures
  Farebox Recovery Ratio             3         20.1%         17.6%         21.8%        21.7%         (0.1%)      (0.5%)
  Total Ridership                    1
    Bus                                    19,080,024   18,312,650     17,920,405   17,744,952     (175,453)      (1.0%)
    Rail                                   10,589,500   12,737,284     13,981,329   16,451,850     2,470,521      17.7%
   Total                                   29,669,524   31,049,934     31,901,734   34,196,802     2,295,068        7.2%
  Average Daily Weekday              1
  Ridership
    Bus                                       65,725        62,850        63,515       61,436         (2,079)     (3.3%)
    Rail                                      36,475        41,900        47,792       55,638           7,846     16.4%
   Total                                     102,200       104,750       111,307      117,074           5,767       5.2%
  Passengers Per Mile                1
    Bus                                          2.22           2.22         2.34         2.31         (0.03)     (1.3%)
    Rail                                         3.68           3.71         4.09         4.26           0.17       4.2%
Reliability Measures
  On-Time Performance                1
    Bus                                       No goal       No goal        88.0%        90.0%           2.0%        2.3%
  On-Time Departures 1
    Rail                                      No goal      No goal        No goal       95.0%           0.0%        0.0%
  Completed Trips                    1
    Bus                                       No goal       No goal        99.8%        99.8%           0.0%        0.0%
    Rail                                      No goal       No goal        99.8%        99.8%           0.0%        0.0%
  Miles Between Service Calls        1
    Bus                                        7,846         9,140         9,500        9,000          (500)      (5.3%)
    Rail                                      22,586        14,327        16,000       19,000          3,000      18.8%
  Employee Availability Days 2       4
    ATU operators                                199            206          209          209              0        0.0%




                                                          19
 Fiscal Year 2006-2007 Budget                                                                                                     District Overview cont.


Performance cont.

                                       Key Performance Measures/Vital Statistics

                                                          FY 2004            FY 2005            FY 2006           FY 2007             FY 2006 to FY 2007
                                                Goal      Actuals            Actuals            Budget            Adopted             Amount      Percent
Quality Measures
 Accidents Per 100,000 Miles                     1
      Bus                                                      No goal            No goal                1.16               1.10           (0.06)     (5.2%)
      Rail                                                     No goal            No goal                2.07               2.00           (0.07)     (3.4%)
 Crimes Committed Per Million                    1             No goal             12.46                13.60               8.50           (5.10)    (37.5%)
 Passengers 3
 Lost Time Injuries Per                          4                  0.47               0.55              0.50               0.75            0.25          50.0%
 100 Employees
 Complaints Per Million                          1                101.9                73.7              74.8               46.4           (28.4)    (38.0%)
 Passengers 3
 Average Days To Respond                         1                 20.6                18.0              19.7               30.0            10.3          52.3%
 to Passenger ADA Complaints 4
 Average Days To Complete                        1                 19.6                18.0              21.0               21.0             0.0          0.0%
 ADA Assessments 5
 ADA Trip Denials                                1                1.4%                3.1%              0.0%               0.0%             0.0%          0.0%

 [NOTE: Operating within the annually budgeted cost and revenue projections is also a key annual performance measurement that is tracked and reported on
 a monthly basis.]
 1
     RT is in the process of establishing baseline for FY 2007. Baseline expected 1/1/2007 after collection of one year's data.
 2
  The agency-wide target goal for employee availability is an average of 223 days across all employee groups. That level is currently being achieved or
 exceeded for all RT employee groups with the exception of ATU operators.
 3
     Key Performance Measures planned for intense agency review, refinement, and proposed revision during FY2007.
 4
     Americans With Disabilities Act limits response time to 30 days.
 5
     Federally regulated deadline of 21 days.




                                                                                20
 Fiscal Year 2006-2007 Budget                                                                        District Overview cont.


Financial Policies

Accounting

RT prepares audited financial statements and maintains records using the accrual basis of
accounting. Under this method, RT records revenues when earned and expenses at the time
the liabilities are incurred.

Budgeting

State law requires the RT Board of Directors to adopt an annual budget for the Enterprise
Fund. RT adopts a balanced budget where total revenues are equal to or exceed total
expenses for operations and capital purposes. RT prepares the budget using the accrual basis
of accounting, except for depreciation expense, which is not budgeted.

Several organizational levels control budget development and maintenance. The legal level of
control is at the fund level. The Board of Directors adopts the budget and authorizes budget
amendments at the fund level. The General Manager authorizes budget changes at the
division level. Division Managers (EMTs) authorize changes within their respective divisions at
the line item level.

Capital Improvement

RT adopts a capital improvement plan that prioritizes needs consistent with RT’s strategic
plan.

Cost Allocation

RT allocates direct and indirect costs among three activities or modes: bus, rail, and purchased
transportation.

       Activity/Mode                                                      Methodology
Direct
 Bus Direct Cost                      Dept 32 Bus Transportation Cost + Dept 34 Bus Maintenance Cost +
                                      Dept 77 Community Bus Service Cost + 20%(Dept 36 Police Services Cost)
  Rail Direct Cost                    Dept 35 Light Rail Cost + 75%(Dept 36 Police Services Cost)
  Purchased                           Dept 38 Purchased Transportation Cost
  Transportation Direct
  Cost
Indirect
                     1                Total Operating Cost - Total Direct Cost
  Total Indirect Cost
  Bus Indirect Cost                   [Bus Direct Cost/(Bus Direct Cost + Rail Direct Cost)] * Total Indirect Cost
  Rail Indirect Cost                  [Rail Direct Cost/(Bus Direct Cost + Rail Direct Cost)] * Total Indirect Cost
  1
      Includes remaining 5% of Dept 36 Police Services Cost




                                                                   21
 Fiscal Year 2006-2007 Budget                                           District Overview cont.


Financial Policies cont.

Debt Management

RT uses short and long term debt to fund operating and capital expenses dependent upon the
appropriate circumstances. Circumstances may include temporary cash flow, emergency
shortfalls, or urgent unfunded capital improvements. Generally, RT uses pay-as-you go funds
to accomplish minor projects and debt service funds for major long-life expansion projects.
Using debt requires Board approval and analysis of the fiscal effect on RT’s operations.

Enterprise Fund

RT uses a single fund, the Enterprise Fund, to account for operating and capital transactions.
Similar to private business enterprises, RT operates the fund based on:

   •    The governing body’s intent to finance or recover the costs of providing continuing
        goods or services through user charges, or
   •    The governing body decision that periodic determination of revenues earned, expenses
        incurred, and/or net income is appropriate for capital maintenance, public policy,
        management control, accountability, or other policies.

The fund has its own set of self-balancing accounts, including assets, liabilities, fund
equity/retained earnings, and revenues and expenses, as appropriate. RT allocates and
accounts for resources in each fund based upon the spending purpose and spending control
means. Unreserved retained earnings for the Enterprise Fund represent the net assets
available for future operations.

Governmental Accounting Standards Board (GASB) Compliance

In compliance with GASB Statement No. 20 (Accounting and Financial Reporting for
Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting), RT
applies all applicable GASB requirements (pronouncements). In addition, RT applies applicable
requirements from the Financial Accounting Standards Board, the Accounting Principles Board,
and Accounting Research Bulletins issued on or before November 30, 1989 – unless the
requirements conflict with or contradict GASB requirements.

In compliance with GASB Statement No. 33 (Accounting and Financial Reporting for Non-
Exchange Transactions), RT changed its accounting for contributed capital. This statement
requires governments to recognize capital contributions for proprietary funds as revenues and
not contributed capital. Prior to implementing GASB No. 33, RT reported capital contributions
as contributed capital.




                                             22
 Fiscal Year 2006-2007 Budget                                            District Overview cont.


Financial Policies cont.

Long-Range Planning

RT conducts long-term analysis and planning through the annual budget process and
maintenance of RT’s Financial Capacity Model, respectively.

Revenues & Expenses

RT estimates revenues conservatively, considering government conditions, fare and route
changes, and one-time revenue availability. RT expenses maintain service levels, support
priority services, deliver efficient and effective service, and ensure fiscal stability.

Risk

RT is exposed to various risks of loss related to torts, damage to assets, errors and omissions,
injuries to employees, and natural disasters. RT is self-insured and purchases commercial
insurance for claims in excess of self-insured amounts. For the past six fiscal years, settled
claims have not exceeded commercial coverage. In addition, RT uses various control
techniques including employee accident prevention training to minimize accident-related
losses.




                                              23
 Fiscal Year 2006-2007 Budget                                                           District Overview cont.


Budget Process

RT uses the annual budget to help measure and account for taxpayer dollars. The budget, as
adopted by the Board of Directors, authorizes RT to spend funds. It details how RT allocates
tax resources to expenditures and serves as a benchmark for evaluating accomplishments and
assessing fiscal responsibility.

                                      OMB                                                   OMB
              OMB                                                Exec Mgmt
                                   implements                                              reviews
           identifies                                             sets budget
                                     budget                                                current
          prior budget                                           priorities and
                                     process                                            revenues and
         process issues                                             strategy
                                  improvements                                          expenditures

              July                     August                      September               October



                                                                                            OMB
           Board of
                                                                                          identifies
          Directors
                                                                                        budget issues,
         adopts budget
                                                                                        assumptions,
           by June 30
                                                                                        and estimates

              June                                                                       November*



                                                                                             OMB
             Public
                                                                                          distributes
          reviews and
                                                                                            budget
          comments at
                                                                                         preparation
            hearings
                                                                                         instructions

              May               *The RT Board of Directors Finance and Administration    December*
                                Committee holds meetings for the public to review
                                Interim budget work products.


                                       OMB                            OMB
           Board of                                                                        Depts
                                    prepares &                    reviews dept
           Directors                                                                       submit
                                     presents                      budgets &
            reviews                                                                      preliminary
                                    budget for                      estimates
            budget                                                                        budgets
                                      review                        revenues

              April                   March*                       February*              January*




                                                         24
 Fiscal Year 2006-2007 Budget                                                      District Overview cont.


Trends

                                              Passengers
          25,000,000

          20,000,000

          15,000,000
                                                                                               Bus
                                                                                               Rail
          10,000,000

           5,000,000

                  0
                       FY 2002    FY 2003     FY 2004    FY 2005    FY 2006   FY 2007



               FY 2002    FY 2003    FY 2004    FY 2005     FY 2006   FY 2007
                Actual     Actual     Actual     Actual    Budgeted   Adopted
Bus            18,068,907 19,756,481 19,446,782 18,929,374 17,920,405 17,744,952
Rail            8,541,086  8,859,032 11,022,004 12,008,620 13,981,329 16,451,850
Total         26,609,993 28,615,513 30,468,786 30,937,994 31,901,734 34,196,802




                                            Revenue Miles
          10,000,000
           9,000,000
           8,000,000
           7,000,000
           6,000,000
                                                                                               Bus
           5,000,000
                                                                                               Rail
           4,000,000
           3,000,000
           2,000,000
           1,000,000
                   0
                       FY 2002    FY 2003     FY 2004    FY 2005    FY 2006   FY 2007



               FY 2002           FY 2003        FY 2004            FY 2005     FY 2006         FY 2007
                Actual            Actual         Actual             Actual    Budgeted         Adopted
Bus             7,738,128         7,922,888      8,566,453          8,238,964   7,659,400       7,614,000
Rail            2,128,498         2,170,991      2,878,822          3,429,277   3,415,300       4,164,200


                                                    25
 Fiscal Year 2006-2007 Budget                                                  District Overview cont.


Trends cont.

                                          Revenue Hours
          800,000
          700,000
          600,000
          500,000
                                                                                           Bus
          400,000
                                                                                           Rail
          300,000
          200,000
          100,000
                0
                    FY 2002     FY 2003   FY 2004    FY 2005    FY 2006   FY 2007



               FY 2002          FY 2003       FY 2004          FY 2005     FY 2006         FY 2007
                Actual           Actual        Actual           Actual    Budgeted         Adopted
Bus               600,925          614,707       696,714          749,023     711,000         708,100
Rail              103,693          105,752       149,763          197,255     190,800         207,500




                                                    26
  Fiscal Year 2006-2007 Budget                                                                                          District Overview cont.


Peer Comparison

                                                   2004 Bus Cost Per Passenger

  $7.00

  $6.00       $ 5.54
                               $ 5.17
  $5.00                                           $ 4.51
                                                                      $ 4.28
                                                                                          $ 3.83
  $4.00                                                                                                   $ 3.67
                                                                                                                           $ 2.95
  $3.00
                                                                                                                                            $ 1.98
  $2.00

  $1.00

   $-
           San Jose, CA     San Carlos, CA     Columbus, OH         Tacoma, WA      Sacramento, CA     Buffalo, NY      Charlotte, NC   Long Beach, CA




                                                   2004 Rail Cost Per Passenger

  $10.00
   $9.00        $ 8.36
   $8.00
   $7.00
   $6.00
   $5.00
   $4.00                            $ 3.48
                                                           $ 3.20
   $3.00                                                                         $ 2.16             $ 2.00              $ 1.81
   $2.00                                                                                                                                   $ 1.58

   $1.00
    $-
             San Jose, CA         Dallas, TX       Sacramento, CA              Denver, CO      Salt Lake City, UT    Portland, OR       San Diego, CA


Source: National Transit Database




                                                                           27
  Fiscal Year 2006-2007 Budget                                                                                        District Overview cont.


Peer Comparison cont.

                                               2004 Bus Cost Per Revenue Mile

    $14.00

    $12.00       $ 11.54
                                $ 10.62
    $10.00                                       $ 8.70
                                                                $ 7.94              $ 7.65
     $8.00                                                                                               $ 7.20
                                                                                                                         $ 6.01
     $6.00                                                                                                                           $ 5.39

     $4.00

     $2.00

         $-
               San Jose, CA   San Carlos, CA Sacramento, CA Columbus, OH          Buffalo, NY     Long Beach, CA Tacoma, WA       Charlotte, NC




                                               2004 Rail Cost Per Revenue Mile

  $30.00
                $ 24.10
  $25.00

  $20.00

  $15.00                            $ 12.24
                                                    $ 11.07
                                                                         $ 9.46
  $10.00
                                                                                                $ 6.74               $ 5.99         $ 5.61
   $5.00

    $-
              San Jose, CA    Sacramento, CA       Dallas, TX       Portland, OR        Salt Lake City, UT        San Diego, CA   Denver, CO


Source: National Transit Database




                                                                    28
  Fiscal Year 2006-2007 Budget                                                                                        District Overview cont.


Peer Comparison cont.

                                                 2004 Bus Cost Per Revenue Hour

  $180.00
  $160.00      $ 144.82
  $140.00
                               $ 117.94
  $120.00                                        $ 106.99
                                                                 $ 101.16
  $100.00                                                                              $ 90.33        $ 85.89
                                                                                                                        $ 77.53        $ 75.19
   $80.00
   $60.00
   $40.00
   $20.00
     $-
             San Jose, CA    San Carlos, CA Sacramento, CA Columbus, OH           Tacoma, WA         Buffalo, NY    Long Beach, CA Charlotte, NC




                                                 2004 Rail Cost Per Revenue Hour

  $500.00


  $400.00       $ 362.34


  $300.00
                                    $ 236.42          $ 235.21

  $200.00                                                                   $ 159.70
                                                                                                 $ 114.98           $ 101.36          $ 100.38
  $100.00


     $-
              San Jose, CA          Dallas, TX     Sacramento, CA      Portland, OR          San Diego, CA      Salt Lake City, UT   Denver, CO



Source: National Transit Database




                                                                       29
  Fiscal Year 2006-2007 Budget                                                                                    District Overview cont.


Peer Comparison cont.

                                              2004 Bus Subsidy Per Passenger

  $6.00

  $5.00       $ 4.75
                              $ 4.24
  $4.00                                        $ 3.75          $ 3.72
                                                                                  $ 3.11
  $3.00                                                                                           $ 2.63
                                                                                                                    $ 2.44

  $2.00                                                                                                                              $ 1.52

  $1.00

   $-
           San Jose, CA    San Carlos, CA    Tacoma, WA      Columbus, OH Sacramento, CA        Buffalo, NY      Charlotte, NC   Long Beach, CA




                                              2004 Rail Subsidy Per Passenger

  $9.00
  $8.00        $ 7.56

  $7.00
  $6.00
  $5.00
  $4.00
                                    $ 2.95
  $3.00                                             $ 2.48
  $2.00                                                                  $ 1.45              $ 1.36              $ 1.18
  $1.00                                                                                                                             $ 0.66

   $-
            San Jose, CA        Dallas, TX      Sacramento, CA    Salt Lake City, UT       Denver, CO         Portland, OR       San Diego, CA



Source: National Transit Database




                                                                        30
  Fiscal Year 2006-2007 Budget                                                                                 District Overview cont.


Peer Comparison cont.

                                            2004 Bus Farebox Recovery Ratio

   40.0%



   30.0%       2 8 .3 %

                               2 3 .6 %

                                               19 .0 %         18 .1%
   20.0%                                                                        17 .5 %           17 .3 %
                                                                                                                  14 .2 %
                                                                                                                                  12 .3 %

   10.0%


    0.0%
              Buffalo, NY   Long Beach, CA Sacramento, CA San Carlos, CA    Columbus, OH     Charlotte, NC     San Jose, CA    Tacoma, WA




                                            2004 Rail Farebox Recovery Ratio

 70.0%
              57.8%
 60.0%

 50.0%

 40.0%                              37.1%          34.8%

 30.0%                                                                  27.4%
                                                                                          22.3%
 20.0%                                                                                                        15.4%
                                                                                                                                 9.5%
 10.0%

  0.0%
           San Diego, CA       Denver, CO       Portland, OR    Salt Lake City, UT    Sacramento, CA         Dallas, TX       San Jose, CA




Source: National Transit Database




                                                                    31
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Operating Budget Summary
 Fiscal Year 2006-2007 Budget                                                     Operating Budget Summary


Accomplishments & Goals

All FY 2006 accomplishments and FY 2007 goals are consistent with RT’s Strategic Plan goals.

                                          Strategic Plan Goals

                1   Provide safe, reliable, comfortable, and affordable transit services.

                2   Use industry best practices and comply with government requirements.

                3   Improve efficiency and increase and preserve funding,

                4   Attract and retain a qualified, talented, and committed workforce.

                5   Work with all stakeholders to create a “world class” transit system.


FY 2006 Selected District-Wide Accomplishments

   Overall

   •    Increased system-wide ridership by 4% to 32.3 million boardings.
   •    Implemented Fare Restructuring Plan and improved farebox recovery by over 6.0%.
   •    Achieved FY 2006 Performance Measurement goals in selected areas.
   •    Implemented a new audible warning device on the light rail vehicle fleet to reduce the
        noise impact of the Federal Railroad Administrations “Horn Rule”.
   •    Achieved RT Board consensus on and participating jurisdiction support of a weighted
        voting governance proposal.
   •    Reported no Code of Ethics violations, fraudulent activities, or conflicts of interest.
   •    Obtained an unqualified independent audit report for FY 2005 and received the
        Government Finance Officers Association Award for Excellence in Financial Reporting.

   Expansion

   •    Expanded Light Rail Service to the City of Folsom on October 15, 2005.
   •    Implemented Community Bus Services Division at McClellan site on January 1, 2006.

   Planning & Funding

   •    Coordinated interagency review of major development proposals in conjunction with
        the Sacramento Area Council of Governments, Sacramento Metropolitan Air Quality
        Management District, and other Sacramento county partners.
   •    Initiated negotiations for joint development at six locations.
   •    Provided design services for development of the Watt Ave Grade Separation Project.




                                                      33
 Fiscal Year 2006-2007 Budget                                  Operating Budget Summary cont.


Accomplishments & Goals cont.

FY 2006 Selected District-Wide Accomplishments

   Planning & Funding

   •    Received "Medium" project rating under the Federal Transit Administration’s New
        Starts Program in February 2006 for the South Sacramento Corridor Project - Phase 2.
   •    Acquired Traffic Congestion Relief Program funding for the Northeast Corridor and
        South Line Phase 2 projects.
   •    Achieved regional and state support for critical bus replacement program.
   •    Completed “grandfathered” leveraged lease transactions, generating $6.2 million in
        revenue.
   •    Negotiated a significantly revised Paratransit Collaborative agreement.

   Customer Service, System Enhancement & Security

   •    Opened new Customer Service Center, by consolidating three service locations. Photo
        Identification, Sales/Fare Media and Lost & Found are now centralized at 1225 R
        Street.
   •    Implemented online trip planning.
   •    Implemented a new Mobility Advisory Council.
   •    Designed and implemented RT’s first multi-media advertising campaign and
        comprehensive customer satisfaction survey.
   •    Continued implementation of security program enhancements: security personnel
        increases and deployment changes, video surveillance, increased fare inspection, and
        partnering for Community Prosecutor program.
   •    Conducted two emergency drills with the City of Folsom involving both the Police and
        Fire Departments. The first scenario simulated an accident between a light rail vehicle
        and an automobile and the second scenario simulated a terrorist attack on a light rail
        vehicle.
   •    Implemented a program of youth forums within the City of Sacramento addressing
        security issues on board the transit system.

   Efficiencies

   •    Continued a preventative maintenance program for all of RT’s buses, light rail vehicles,
        and wayside equipment and track.
   •    Revised safety standard operating procedures in compliance with regulations and
        audit findings.
   •    Created central procurement and revised procurement standard operating procedures.
   •    Completed information technology assessment and started corrective actions.




                                              34
    Fiscal Year 2006-2007 Budget                                               Operating Budget Summary cont.


Accomplishments & Goals cont.

FY 2006 Selected District-Wide Accomplishments

        Efficiencies

        •      Produced significant savings in general liability and insurance premium costs.
        •      Completed design of new training courses or programs, including Customer Service,
               New Employee Orientation, Managing Multiple Priorities, Interpersonal Skills and entry
               level Leadership.
        •      Prepared multi-year operating and capital financial projections to assist the District in
               developing a long-term financial strategy.

FY 2007 District-Wide Initiatives

        Service Plan

                                                             (Revenue Hours)


                                          FY 2004       FY 2005    FY 2006   FY 2007      FY 2006 to FY 2007
                                           Actual        Actual   Budgeted Adopted       Amount      Percent
Fixed Route Bus                             696,714       749,023    711,000   675,980      -35,020       -4.9%
Community Bus Serv.1                         -             -          -         32,120          N/A         N/A
Rail                                        149,763       197,255    190,800   207,500       16,700        8.8%
1
    Community Bus Service starts operation in FY 2007



        Overall

        •      Increase system ridership by 4.2% to 34.2 million boardings.
        •      Achieve FY 2007 vital statistics/key performance measures.
        •      Obtain an unqualified independent audit report for FY 2006 and receive the
               Government Finance Officers Association Award for Excellence in Financial Reporting.

        Expansion

        •      Open light rail to the Sacramento Valley Station in December 2006 according to the
               revised schedule and budget.
        •      Complete Bus Maintenance Facility 2 acquisition.
        •      Advance the District’s major future program initiatives: South Line Phase 2 service,
               Bus Maintenance Facility 2, Gold Line Skip Stop service, Northeast Corridor service,
               Downtown-Natomas-Airport service, Streetcar Feasibility Project, and specific Transit
               Oriented Development plans.
        •      Complete Fiber Optics Network on Highway 50 corridor.



                                                                  35
 Fiscal Year 2006-2007 Budget                                   Operating Budget Summary cont.


Accomplishments & Goals cont.

FY 2007 District-Wide Initiatives

   Planning & Funding

   •    Prepare a comprehensive update to RT's Paratransit Service Plan for adoption in early
        FY 2008.
   •    Complete preparations for entering next round of labor negotiations, including
        installation of new costing software.
   •    Complete compressed natural gas fueling design plans.
   •    Work with the Sacramento Area Council of Governments and other regional partners
        to update the regional Metropolitan Transportation Plan, develop the Plans for future
        local transportation funding enhancement, and implement RT’s Transit Master Plan
        update process.

   Customer Service, System Enhancement & Security

   •    Enhance overall customer service: increase number of bus stops and shelters, improve
        vehicle cleanliness, install security surveillance equipment at all stations, improve
        passenger information during service disruptions, and implement voice annunciators.
   •    Continue participating in regional planning efforts for emergency response.
   •    Develop and implement a plan for improving RT’s compliance rate for ADA required
        stop announcements.

   Efficiencies

   •    Continue preventative maintenance and inspection program for all of RT’s buses, light
        rail vehicles, and wayside equipment and track.
   •    Continue Siemens light rail vehicle fleet overhaul: paint 4 vehicles, overhaul 6 trucks,
        and retrofit communications.
   •    Manage the manufacture and inspection of 91 replacement buses with delivery
        anticipated in the second quarter of 2007.
   •    Strengthen RT’s operator training program with an emphasis on improving the
        customer service components of the program.
   •    Develop a 5-year Capital Improvement Plan proposal.
   •    Prioritize implementation of core management information systems enhancements in
        the Human Resources and Finance departments.
   •    Complete a management organization review process, including a district-wide
        workforce development plan for key positions to help the District ensure a well-
        qualified and diverse workforce for the future and the development of a pay-for-
        performance management compensation proposal.




                                               36
 Fiscal Year 2006-2007 Budget                              Operating Budget Summary cont.


Accomplishments & Goals cont.

FY 2007 District-Wide Initiatives

   Efficiencies

   •    Implement Trapeze software that manages RT’s operator extra board and operator
        time keeping functions by June 30, 2007.
   •    Improve Employee Availability through establishment of enhanced medical exam
        protocols, targeted light duty program assignments and wellness programs.
   •    Improve core business processes in key areas: capital program management,
        budgeting, and grants administration.




                                            37
    Fiscal Year 2006-2007 Budget                                                            Operating Budget Summary cont.


Fund Balance

                                   Enterprise Fund Statement (Fund Balance)
                                                          (Whole Dollars)


                                             FY 2004                 FY 2005                  FY 2006             FY 2007
                                              Actual                  Actual                 Budgeted             Adopted
Beginning Balance                           $547,873,868            $696,103,234             $730,299,243        $729,257,464

Operating Revenues
Fares                                          22,003,511                21,101,127            27,033,000          30,036,896
Contract Services                               5,697,324                 4,969,841             4,480,737           5,006,852
State & Local Operating Grants                 69,308,377                70,453,388            78,753,379          93,092,725
Federal Operating Grants                       11,852,702                24,400,487            19,155,873          18,170,782
Other Revenue                                   2,804,750                 2,349,996             4,421,357           2,230,797
  Total Operating Revenue                     111,666,664               123,274,839           133,844,346         148,538,052

Capital Revenue Contributions
State & Local                  54,594,373                                14,778,557              9,537,094         48,248,855
Federal                       115,451,448                                54,333,899             10,907,085          5,203,025
Other Revenue                     -                                         -                   10,000,000          3,700,000
  Total Capital Revenue       170,045,821                                69,112,456             30,444,179         57,151,880

Operating Expenses
Salaries & Benefits                            73,616,511                80,395,676            82,063,053          91,684,121
Professional Services                          16,722,226                17,852,654            22,549,153          26,160,938
Materials & Supplies                            9,325,735                10,275,331            10,219,571          12,235,734
Utilities                                       4,355,406                 4,391,267             5,364,457           5,498,365
Insurance & Liability                           9,308,192                 7,176,616             9,121,828           8,295,668
Debt Service                                      -                          14,061             2,082,258           2,079,258
Other                                           2,120,995                 2,304,149             2,444,026           2,583,968
   Total Operating Expenses                   115,449,065               122,409,753           133,844,346         148,538,052

                                                               1                        1
Operating Expenses For Capital                   3,200,270                  6,499,374                    0                   0

Non-Operating Expenses
Depreciation & Amortization 2                  13,515,240                28,120,749             28,985,958           -
                                                                                                             3                   3
Interest Expense                                  469,877                   633,675                      -           -
Pass Through to Recipients                        751,881                   527,735              2,500,000           -
Extraordinary Loss                                 96,786                   -                            -           -
   Total Non-Operating Expenses                14,833,784                29,282,159             31,485,958                   0

Ending Balance                              $696,103,234            $730,299,243             $729,257,464        $786,409,344
1
  Operating expense related to capital projects and paid with capital grant funding
2
  RT does not budget for depreciation and amortization
3
  Included in Operating Expenses, Debt Service line item




                                                                   38
 Fiscal Year 2006-2007 Budget                                     Operating Budget Summary cont.


Revenues

Federal Funding

This category includes formula-based allocations to RT from the federal government. Each
year Congress authorizes the appropriation and the Federal Transit Administration allocates
the dollars to RT. RT can use the funds for operating, planning, and capital, subject to specific
regulations.

Specifically, RT receives Section 5307 Formula Funds, Section 5309 Fixed Guideway, and
Section 3037 Jobs Access Reverse Commute allocations. The Section 5307 Formula Funds
allocation is distributed by formula to urbanized areas for transit planning, capital, and
preventive maintenance needs based on population served and the amount of service
provided. RT may use these funds either for capital projects or preventive maintenance.
Section 5309 Fixed Guideway allocation is distributed by formula to urban rail transit
operators for rail system repair, rehabilitation, upgrades, and preventive maintenance.

    •   The FY 2007 Budget proposes $18.2 million in federal funding, a decrease of
        $1.0 million (-5.1%) from the FY 2006 Budget ($19.2 million).
    •   This decrease reflects a decrease in Section 3037 Jobs Access Reverse Commute funds
        (-$1.9 million), an increase in Section 5307 Formula funds ($0.4 million), and an
        increase in Section 5309 Fixed Guideway funds ($0.6 million).

State and Local Funding

This category includes formula-based allocations to RT from state and local government sales
taxes. RT receives funding from the California Transportation Development Act Local
Transportation Fund (TDA-LTF), the Transportation Development Act State Transit Assistance
Program (TDA-STA), and Sacramento County Measure A.

        TDA LTF and STA

The California Transportation Development Act of 1971 (TDA), as amended, provides two
sources of funding for public transportation. The first is the county Local Transportation Fund
(LTF) which was established in 1972, whereby one-fourth of 1% of the current Statewide sales
tax is made available for public transportation operating and capital expenditures in the
county in which the sales tax is collected. The second is the State Transit Assistance Program
(STA) which was established in 1979, whereby a portion of gasoline sales and diesel use tax
revenues is appropriated by the State Legislature to the State Public Transportation Account
(PTA) for certain public transportation purposes.

Prior to the passage of the Fiscal Year 2001 State Budget, the PTA received differing portions.
With the passage of the Traffic Congestion Relief Act (TCRA), the Governor and the Legislature
agreed on a transportation-funding plan, which, for a five-year period, would dedicate the



                                               39
 Fiscal Year 2006-2007 Budget                                     Operating Budget Summary cont.


Revenues cont.

State and Local Funding

entire sales tax on gasoline and diesel to transportation programs. Twenty percent of these
funds are to be dedicated to the PTA. Since STA, as part of the PTA, is tied to the value of
sales on these fuels, this funding source is subject to significant fluctuations. However, due to
unanticipated budget shortfalls, the state commitment has not always been met. The passage
of Proposition 42 amended the state constitution to take away the Governor’s and
Legislature’s discretion on this commitment. The distribution of STA Funds, as determined by
the State Transportation Blueprint legislation in 1990 and as amended by Senate Bill 45 in
1997, is as follows:

25% of the funds are distributed to regional transportation planning agencies, such as the
District, on the basis of population, for allocation to programs supported by LTF.

25% of the funds are distributed among the regional transportation planning agencies on the
basis of the proportion of revenues generated in the region to the total fare revenues
generated in the State. Within each region, these funds are distributed among the operators
on the basis of fare generation.

50% of the funds are available for appropriation by the legislature to State transit programs,
including Amtrak contracts, Peninsula Commute Services (the Caltrain), abandoned railroad
right-of-way acquisition, bus rehabilitation, guideway construction, rolling stock acquisition,
grade separations and multimodal interface facilities.

        Measure A

In November 1988, Sacramento County voters approved the passage of Measure A, a one-half
of one percent countywide retail transactions and use tax (“Sales Tax”) to help relieve traffic
congestion, improve air quality, construct new and repair existing highways, local streets and
roads, expand public transit and increase public safety by providing essential countywide
transportation improvements. Measure A incorporated the Sacramento County Transportation
Expenditure Plan (the “Expenditure Plan”), which includes those projects that are eligible for
funding from the proceeds of the Sales Tax. The Sales Tax is set to expire in March 2008, but
the District will receive Sales Tax funds into Fiscal Year 2009.

Revenues generated by the Sales Tax are disbursed through the Sacramento Transportation
Authority (the “Authority”) according to ratios established by an ordinance adopted by the
Authority as follows:

    •   1% to the Authority for administrative costs;
    •   1½% to mitigate motor vehicle emissions;
    •   Portions of the Sales Tax attributable to transactions and uses within the municipal
        boundaries of the cities of Folsom, Galt and Isleton is distributed to such cities.


                                               40
 Fiscal Year 2006-2007 Budget                                     Operating Budget Summary cont.


Revenues cont.

State and Local Funding

Of the remaining Sales Tax collections:

    •   35% is allocated for construction of highways, streets and roads;
    •   28% for maintenance of existing local streets, roads and highways;
    •   35% for increased bus and light rail services;
    •   2% for increased transportation services to senior citizens and handicapped persons.

The 35% allocation for increased bus and light rail services is available for distribution solely
to the District.

The Authority selects those projects which are to be funded from the sales tax collections
consistent with the above allocation formula and according to the Countywide Transportation
Expenditure Plan. The Expenditure Plan includes projects for the District such as the
continuation of transit services to existing service areas and the purchase of buses. The
Expenditure Plan may be amended from time to time only to account for unexpected revenues
or to take into consideration unforeseen circumstances.

    •   The FY 2007 Budget proposes $93.1 million in state and local funding revenue, an
        increase of $14.3 million (18.2%) from the FY 2006 Budget ($78.8 million).
    •   This reflects an increase in revenue receipts ($10.8 million).
    •   The $93.1 million allocation includes $45.5 million Measure A and $47.6 million TDA
        ($41.5 million LTF and $6.1 million STA) funds.

Fares

This category includes rider monies deposited in the fare box and the sale of tickets and
passes.

    •   The FY 2007 Budget proposes $30.0 million in fare revenue, an increase of $3.0 million
        (11.1%) from the FY 2006 Budget ($27.0 million).
    •   This increase is primarily due to the second phase of fare restructuring, adopted by the
        Board in August 2005. Fare restructuring increases the monthly pass price from
        $80.00 to $85.00, increases the base fare from $1.75 to $2.00, and decreases K-12
        student discounts from 70% to 60%. (K-12 students on free or reduced lunches are
        eligible for a discounted pass through their school.) RT projects an $0.88 average fare
        per rider and 34,196,802 riders in FY 2007, resulting in estimated fare revenue of
        about $30.0 million.
    •   Transit fares, representing approximately 20% of all operating revenue, are the only
        significant revenue source that RT directly controls.



                                               41
 Fiscal Year 2006-2007 Budget                                    Operating Budget Summary cont.


Revenues cont.

Contract Services

This category includes contracts with the cities of Citrus Heights, Elk Grove, and Folsom.
These cities purchase RT transit services.

    •   The FY 2007 Budget proposes $5.0 million in contract revenue, an increase of
        $0.5 million (11.8%) from the FY 2006 Budget ($4.5 million).
    •   This increase is primarily due to the Folsom contract. The City of Folsom contracted
        with RT to provide light rail service starting in October 2005 (FY 2006). The FY 2007
        increase reflects full-year costs.

Other

This category includes investment income, commercial real estate leases, advertising income,
bus book sales, fare evasion fines, promotional item sales, and photo identification activities.

    •   The FY 2007 Budget proposes $2.2 million in other revenue, a decrease of $2.2 million
        (-49.6%) from the FY 2006 Budget ($4.4 million). This reflects a shift of Transit
        Oriented Development revenues from the operating budget to the capital budget.




                                              42
 Fiscal Year 2006-2007 Budget                                               Operating Budget Summary cont.


Revenue cont.

                              Operating Revenues By Funding Source

                                       Other
                      Federal           2%                          Fares
                       12%                                          20%



                                                                                             Contract
                                                                                             Services
                                                                                               3%




              State & Local
                  63%


                                           (Dollars in Thousands)


                          FY 2004     FY 2005        FY 2006        FY 2007          FY 2006 to FY 2007
                           Actual      Actual       Budgeted        Adopted         Amount       Percent
Federal                     $11,853     $24,400        $19,156        $18,171            ($985)     (5.1%)
State & Local                69,308      70,453         78,753         93,093           14,340       18.2%
Fares                        22,004      21,101         27,033         30,037            3,004       11.1%
Contract Services             5,697       4,970          4,480          5,007              527       11.8%
Other                         2,805       2,350          4,422          2,230           (2,192)    (49.6%)
Total                     $111,667    $123,275       $133,844       $148,538          $14,694       11.0%




                                                   43
 Fiscal Year 2006-2007 Budget                                     Operating Budget Summary cont.


Expenditures

Salaries & Benefits

This category includes payroll and benefits for all positions authorized by the Board of
Directors. It accounts for wages, overtime, pension, dental, medical, FICA, vision and all other
RT-paid employee benefits.

    •   The FY 2007 Budget proposes $91.7 million for salaries and benefits, an increase of
        $9.6 million (11.7%) from the FY 2006 Budget ($82.1 million).
    •   This is primarily due to increased medical benefits, pension rates, and post-retirement
        costs ($3.3 million); cost of living adjustments, step increases, and other costs
        associated with negotiated labor agreements ($3.2 million); corrected budget
        methodology ($3.0 million), and other changes ($0.1 million).

Professional Services

This category includes purchased transportation to comply with the Americans with Disabilities
Act (ADA), transit security, equipment maintenance, facilities maintenance, attorney fees, and
outside consultants.

    •   The FY 2007 Budget proposes $26.1 million for services, an increase of $3.6 million
        (16.0%) from the FY 2006 Budget ($22.5 million).
    •   Police and security costs will increase $1.5 million (24.3%) from $6.3 million to $7.8
        million, to cover contract rate increases and supplant expired federal funds used to pay
        for security officers.
    •   The Paratransit, Inc. contract cost will increase $0.7 million (7.0%) from $9.6 million to
        $10.3 million due to increased service and inflation.

Materials and Supplies

This category includes fuel, bus and light rail parts, small maintenance tools and equipment,
cleaning supplies, printing materials, and general office supplies.

    •   The FY 2007 Budget proposes $12.2 million for materials and supplies, an increase of
        $2.0 million (19.7%) from the FY 2006 Budget ($10.2 million).
    •   This reflects increased compressed natural gas pricing, increased bus and rail parts
        costs and usage, and the anticipated increase in engine rebuilds on second-generation
        CNG buses.




                                               44
 Fiscal Year 2006-2007 Budget                                     Operating Budget Summary cont.


Expenditures cont.

Utilities

This category includes electricity, water, gas, refuse, and telephone for bus, light rail, and
administrative facilities.

    •   The FY 2007 Budget proposes $5.5 million for utilities, an increase of $0.1 million
        (2.5%) from the FY 2006 Budget ($5.4 million).
    •   This increase primarily results from increased traction power usage.

Insurance and Liability

This category includes premiums, claims, and attorney fees related to personal liability
insurance, property damage insurance, worker’s compensation funding reserves, and
commercial insurance for amounts in excess of self-insured amounts.

    •   The FY 2007 Budget proposes $8.3 million for casualty and insurance, a decrease of
        $0.8 million (-9.1%) from the FY 2006 Budget ($9.1 million).

Debt Service

This category includes scheduled payments on incurred debt.

    •   The FY 2007 Budget proposes $2.079 million in debt service, a decrease of
        $3,000 (0.001%) from the FY 2006 Budget ($2.082 million).
    •   The decrease is due to established debt service requirements for the 2003 Farebox
        Revenue Certificates of Participation.

In 2003, the California Transit Finance Corporation issued Certificates of Participation totaling
$18.0 million for RT. RT uses the money to purchase light rail vehicles, trolley vehicles, and
real property used as maintenance facilities. RT makes installment payments based on the
following schedule.

                                 Debt Service Requirements
                                           (Whole Dollars)


                FY 2006    FY 2007    FY 2008    FY 2009    FY 2010 FY 2011-15
               Budgeted Adopted Proposed Proposed Proposed Proposed
Principal       $1,400,000 $1,425,000 $1,470,000 $1,530,000 $1,605,000 $9,200,000
Interest           682,258    654,258    611,508    549,033    472,533   1,199,378
Total          $2,082,258 $2,079,258 $2,081,508 $2,079,033 $2,077,533 $10,399,378




                                                45
 Fiscal Year 2006-2007 Budget                                                Operating Budget Summary cont.


Expenditures cont.

Other

This category includes travel and training, seminars, dues and subscriptions, building leases,
equipment leases, taxes, freight, advertising, legal noticies, and bad debt.

    •     The FY 2007 Budget proposes $2.6 million for other expenditures, an increase of
          $0.1 million (5.7%) from the FY 2006 Budget ($2.4 million).



                        Operating Expenditures By Expense Category


                                    Insurance &    Debt
                                      Liability   Service Other
                        Utilities       6%          1%     2%
         Materials &      4%
          Supplies
            8%




  Professional
    Services
      18%
                                                                                                 Salaries &
                                                                                                  Benefits
                                                                                                   61%


                                                    (Dollars in Thousands)


                                    FY 2004         FY 2005   FY 2006   FY 2007 FY 2006 to FY 2007
                                     Actual          Actual Budgeted Adopted Amount Percent
Salaries & Benefits                   $73,617         $80,395  $82,063   $91,684  $9,621     11.7%
Professional Services                  16,722          17,853   22,549    26,161   3,612     16.0%
Materials & Supplies                    9,326          10,275   10,220    12,236   2,016     19.7%
Utilities                               4,355           4,391     5,364     5,498    134       2.5%
Insurance & Liability                   9,308           7,177     9,122    8,296    (826)    (9.1%)
Debt Service                                0              14     2,082    2,079      (3)    (0.1%)
Other                                   2,121           2,304     2,444    2,584     140       5.7%
Total                               $115,449        $122,409 $133,844 $148,538 $14,694       11.0%




                                                            46
 Fiscal Year 2006-2007 Budget                                            Operating Budget Summary cont.


Expenditures cont.

                                Operating Expenditures By Activity

                                         Purchased
                                       Transportation
                                            7%



      Rail
      32%




                                                                                                 Bus
                                                                                                 61%




                                                (Dollars in Thousands)


                                  FY 2004       FY 2005   FY 2006   FY 2007 FY 2006 to FY 2007
                                   Actual        Actual Budgeted Adopted Amount Percent
Bus                                 $72,493       $75,805  $80,362   $91,262 $10,900     13.6%
Rail                                 34,200        37,703   43,892    47,016   3,124      7.1%
Purchased Transportation              8,756         8,901     9,590   10,261     671      7.0%
Total                             $115,449      $122,409 $133,844 $148,538 $14,694       11.0%




                                                        47
 Fiscal Year 2006-2007 Budget                                                             Operating Budget Summary cont.


Expenditures cont.

                                   Operating Expenditures By Division
                                        Planning &
                                                             General                  Facilities &
                                          Transit
                                                             Manager                   Business
                                         Systems                              Legal
                                                               2%                      Support
                         Finance           11%                                 1%
                                                                                          8%
         Engineering &     3%
          Construction
              1%



  Administrative
    Services
     10%
                                                                                                           Operations
                                                                                                             64%




                                                     (Dollars in Thousands)


                                     FY 2004         FY 2005   FY 2006   FY 2007 FY 2006 to FY 2007
                                      Actual          Actual Budgeted Adopted Amount Percent
General Manager                         $1,414          $1,661   $1,593    $2,593  $1,000     62.7%
Legal                                      979             924     1,138     1,206     68       6.0%
Facilities & Business Support           10,150          10,456   11,448    12,339     891       7.8%
Operations                              70,864          79,764   84,482    95,048  10,566     12.5%
Administrative Services                 15,284          13,313   14,871    14,848     (23)    (0.2%)
Engineering & Construction               1,497           1,165     1,008    1,057      49       4.9%
Finance                                  3,108           2,631     4,589    4,921     332       7.2%
Planning & Transit Systems              12,151          12,495   14,715    16,527   1,812     12.3%
Total                                $115,449        $122,409 $133,844 $148,538 $14,694       11.0%




                                                             48
 Fiscal Year 2006-2007 Budget                                                   Operating Budget Summary cont.


Expenditures cont.

                        Operating Expenditures By Funding Source

                                           Other
                     Federal                2%                          Fares
                      12%                                               20%




                                                                                                    Contract
                                                                                                    Services
                                                                                                      3%




                           State & Local
                               63%


                                               (Dollars in Thousands)


                                  FY 2004   FY 2005   FY 2006   FY 2007 FY 2006 to FY 2007
                                   Actual    Actual Budgeted Adopted Amount Percent
Federal                          $ 12,604 $ 24,264 $ 19,156 $ 18,171 $ (985)         (5.1%)
State & Local                       73,702    70,061    78,753    93,093  14,340     18.2%
Fares                               23,398    20,984    27,033    30,037    3,004    11.1%
Contract Services                     6,059     4,942     4,480     5,007     527    11.8%
Other                                 2,983     2,158     4,422     2,230  (2,192) (49.6%)
Total                            $118,746 $122,409 $133,844 $148,538 $14,694         11.0%




                                                       49
    Fiscal Year 2006-2007 Budget                                              Operating Budget Summary cont.


Positions

The Fiscal Year 2007 Budget proposes 1,233 positions, an increase of 1 position from the
Fiscal Year 2006 Budget (1,232 positions). This reflects a shift of an existing Personnel
Services Contract employee in the Police Services department to a full-time employee. The
employee started working with RT in September 2004 (Fiscal Year 2005).

                                          Planning &
                                            Transit                Facilities &
                                           Systems General          Business
                                                     Manager Legal   Support
                     Engineering & Finance Dev
                                              7%      <1%     1%     Services
                      Construction   3%                                8%
                          4%
           Administrative
              Services
                5%


                                                                                            Operations
                                                                                              72%




                                            FY 2004    FY 2005 FY 2006        FY 2007       FY 2006 to FY 2007
                                             Actual     Actual Budgeted       Adopted        Amount Percent
General Manager                                 3          3        6             6             0         0.0%
Legal                                          11         11       10            10             0         0.0%
Facilities & Business Support                  90         91       93            93             0         0.0%
Operations                                    906        920      899           901     1       2         0.2%
Administrative Services                        70         69       63            63             0         0.0%
Engineering & Construction                     54         54       47            46            (1)      (2.1%)
Finance                                        36         36       32            32             0         0.0%
Planning & Transit Systems                     53         55       82            82             0         0.0%
Total                                        1,223      1,239    1,232    2    1,233            1        0.1%

1
    Position is currently Personal Services Contract
2
    Two positions approved during FY 2006




                                                           50
  Fiscal Year 2006-2007 Budget                                                        Operating Budget Summary cont.


Forecast

                                          Revenue & Expenditure Forecast
                                                   (Dollars in Thousands)


                                                    FY 2007                 FY 2008       FY 2009        FY 2010
Revenues
Federal                                                 $18,171               $18,716         $19,278        $19,856
State & Local                                            93,092                97,882         102,942        107,330
Fares                                                    30,037                31,088          32,176         33,303
Contracted Services                                       5,007                 5,157           5,313          5,472
Other                                                     2,231                 2,926           3,629          4,340
Total                                                  148,538               155,769         163,337        170,302

Expenditures
Salaries & Benefits                                     91,684                94,435          97,268         100,186
Professional Services                                   26,161                27,698          29,345          31,113
Materials & Supplies                                    12,236                12,603          12,981          13,371
Utilities                                                5,498                 5,663           5,833           6,008
Insurance & Liability                                    8,296                 8,420           8,547           8,675
Debt Service                                             2,079                 2,082           2,079           2,078
Other                                                    2,584                 2,662           2,741           2,824
Reserve/Contingency                                          0                 1,200           1,400           1,800
Regional Rail                                                0                     0           1,000           1,030
BMF-2                                                        0                     0           1,200           1,236
Total                                                  148,538               154,762         162,394        168,320

Surplus/Shortfall                                                $0            $1,007            $943         $1,982



                                               Service Plan Forecast
                                                     (Revenue Hours)


                                                    FY 2007                 FY 2008       FY 2009        FY 2010
Service Plan
Fixed Route Bus                                         675,980               689,500        703,290         717,355
Community Bus Service                                    32,120                32,762         33,418          34,086
Rail                                                    207,500               210,198        210,198         210,198


Source: RT’s Financial Forcasting Model




                                                            51
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Division Budgets
 Fiscal Year 2006-2007 Budget                                                           Division Budgets


Office of the General Manager

This division carries out the Board’s policies and ordinances, coordinates inter-agency
activities, oversees RT’s day-to-day operations, and appoints the heads of RT’s operating
divisions.


                                          Board of Directors




                                          General Manager/
                                        Chief Executive Officer




                                  Compliance &                   Deputy
                                   Q/A Auditor               General Manager




    •    The General Manager guides and directs all activities of the District.
    •    The Compliance & Quality Assurance Auditor audits internal controls, government
         compliance, and operational effectiveness and consistency.
    •    The Deputy General Manager assists in guiding and directing RT and acts on behalf of
         the General Manager in his/her absence.

Expenditures

                                      By Expense Category
                                                 (Whole Dollars)


                         FY 2004       FY 2005            FY 2006         FY 2007      FY 2006 to FY 2007
                          Actual        Actual           Budgeted        Adopted        Amount      Percent
Salaries & Benefits        $629,009      $452,611          $526,031        $765,400       $239,369    45.5%
Professional Services       383,761       724,133            557,400       1,246,500       689,100 123.6%
Materials & Supplies          6,705         6,504              9,500           7,500        (2,000) (21.1%)
Utilities                         0             0                  0               0             0     0.0%
Insurance & Liability             0             0                  0               0             0     0.0%
Debt Service                      0             0                  0               0             0     0.0%
Other                       394,551       477,960            500,625         573,846        73,221    14.6%
Total                   $1,414,026    $1,661,209         $1,593,556      $2,593,246      $999,690     62.7%




                                                      53
 Fiscal Year 2006-2007 Budget                                                           Division Budgets cont.


Office of the General Manager cont.

Expenditures

                                              By Department
                                                   (Whole Dollars)


                        FY 2004            FY 2005          FY 2006        FY 2007        FY 2006 to FY 2007
                         Actual             Actual         Budgeted       Adopted         Amount      Percent
General Manager         $1,274,022         $1,508,091       $1,410,603     $2,247,515       $836,912     59.3%
Board of Directors          33,451             37,542           53,400         80,500         27,100     50.7%
Quality Assurance          106,552            115,576          129,553        265,231        135,678    104.7%
Total                  $1,414,026         $1,661,209       $1,593,556     $2,593,246       $999,690      62.7%



Positions

                                FY 2004       FY 2005           FY 2006     FY 2007       FY 2006 to FY 2007
                                 Actual        Actual          Budgeted     Adopted       Amount Percent
General Manager                    2             2                 5           5              0          0.0%
Quality Assurance                  1             1                 1           1              0          0.0%
Total                              3             3                 6           6              0          0.0%




                                                        54
 Fiscal Year 2006-2007 Budget                                                         Division Budgets cont.


Office of Legal Counsel

This division represents RT in all legal matters and provides legal advice to the Board of
Directors, General Manager, and RT staff.


                                             Chief Legal Counsel




    •    The Chief Legal Counsel guides and directs the division.
    •    Transactions prepares ordinances, contracts, policies, and other administrative
         documents.
    •    Litigation engages in court legal proceedings and oversees all litigation assigned to
         outside counsel.

Expenditures

                                          By Expense Category
                                                 (Whole Dollars)


                        FY 2004           FY 2005         FY 2006        FY 2007        FY 2006 to FY 2007
                         Actual            Actual        Budgeted       Adopted          Amount      Percent
Salaries & Benefits       $864,718          $815,088       $960,857      $1,064,579       $103,722     10.8%
Professional Services       62,710            57,442         121,500         81,500         (40,000) (32.9%)
Materials & Supplies        41,695            40,693          43,500         47,000           3,500     8.0%
Utilities                        0                 0               0              0               0     0.0%
Insurance & Liability            0                 0               0              0               0     0.0%
Debt Service                     0                 0               0              0               0     0.0%
Other                       10,345            10,407          11,850         12,970           1,120     9.5%
Total                    $979,467          $923,630      $1,137,707     $1,206,049         $68,342      6.0%



Positions

                                FY 2004      FY 2005          FY 2006    FY 2007        FY 2006 to FY 2007
                                 Actual       Actual         Budgeted    Adopted        Amount Percent
Legal                              11           11               10         10              0          0.0%
Total                              11           11              10         10               0          0.0%




                                                       55
 Fiscal Year 2006-2007 Budget                                                      Division Budgets cont.


Facilities & Business Support Services Division

This division maintains all RT stations, stops, and facilities.

                                        Chief of Facilities &
                                     Business Support Services




               Facilities            Safety &                       Information
                                                                                  Procurement
              Maintenance         Environmental                     Technology




    •    The Chief of Facilities & Business Support Services guides and directs the division.
    •    Facilites Maintenance maintains all facilities and equipment in state of good repair.
    •    Safety & Environmental develops and maintains loss prevention and health practices
         to reduce errors and hazards.
    •    Information Technology develops, installs, and implements computer systems and
         applications.
    •    Procurement acquires goods, services, and assets.

Expenditures

                                      By Expense Category
                                                  (Whole Dollars)


                          FY 2004     FY 2005      FY 2006    FY 2007                FY 2006 to FY 2007
                           Actual      Actual     Budgeted    Adopted                 Amount     Percent
Salaries & Benefits       $5,818,530  $6,348,773   $6,184,696 $6,793,083                $608,387     9.8%
Professional Services      1,515,357   1,515,935    2,191,289  2,267,330                  76,041     3.5%
Materials & Supplies         576,022     626,527      541,750    665,298                 123,548    22.8%
Utilities                  1,668,717   1,288,650    1,614,457  1,635,000                  20,543     1.3%
Insurance & Liability        (47,412)     (2,469)           0          0                       0     0.0%
Debt Service                       0           0            0          0                       0     0.0%
Other                        619,080     678,781      915,404    977,959                  62,555     6.8%
Total                   $10,150,294 $10,456,196 $11,447,596 $12,338,670                $891,074      7.8%




                                                       56
 Fiscal Year 2006-2007 Budget                                                 Division Budgets cont.


Facilities & Business Support Services Division cont.

Expenditures

                                          By Department
                                             (Whole Dollars)


                        FY 2004     FY 2005     FY 2006     FY 2007             FY 2006 to FY 2007
                         Actual      Actual    Budgeted    Adopted              Amount      Percent
Chief of Facilities       $234,240    $296,556    $142,957    $247,415            $104,458     73.1%
Property Mgmt                    0       1,114           0           0                   0       0.0%
Facilities Maint         5,914,394   6,099,527   7,297,144   7,291,803              (5,341)    (0.1%)
Safety & Environmtl        359,353     476,249     560,448     607,824              47,376       8.5%
Information Tech         1,605,681   1,466,842   1,484,542   1,691,156             206,614     13.9%
Procurement              2,036,625   2,115,908   1,962,505   2,500,472             537,967     27.4%
Total                 $10,150,294 $10,456,196 $11,447,596 $12,338,670            $891,074       7.8%



Positions

                                FY 2004   FY 2005         FY 2006   FY 2007     FY 2006 to FY 2007
                                 Actual    Actual        Budgeted   Adopted     Amount Percent
Chief of Facilities                 2         3               1         1           0          0.0%
Property Management                 1         1               0         0           0          0.0%
Facilities Maintenance             38        37              42        42           0          0.0%
Safety & Environmental              4         4               5         5           0          0.0%
Information Technology             15        16              14        14           0          0.0%
Procurement                        30        30              31        31           0          0.0%
Total                              90        91             93        93            0          0.0%




                                                  57
 Fiscal Year 2006-2007 Budget                                                        Division Budgets cont.


Operations Division

This division operates RT’s bus and light rail service.

                                          Chief Operating Officer




      Bus               Operations        Bus                                    Police
                                                                   Light Rail                     Scheduling
 Transportation          Training     Maintenance                               Services




    •    The Chief Operating Officer guides and directs the division.
    •    Bus Transportation operates the daily bus service.
    •    Operations Training provides all bus and rail operators driving and safety training.
    •    Bus Maintenance maintains and repairs the bus fleet.
    •    Light Rail operates the daily light rail service and maintains and repairs the light rail
         vehicle fleet.
    •    Police Services protects all operations, employees, and riders.
    •    Scheduling plans and maintains bus and rail timelines.

Expenditures

                                      By Expense Category
                                                 (Whole Dollars)


                           FY 2004     FY 2005      FY 2006     FY 2007    FY 2006 to FY 2007
                            Actual      Actual     Budgeted     Adopted     Amount     Percent
Salaries & Benefits       $54,877,253 $62,059,879 $63,210,394 $70,488,991   $7,278,597    11.5%
Professional Services       4,881,016   5,264,790    7,966,805   9,350,193   1,383,388    17.4%
Materials & Supplies        8,117,882   9,124,881    9,154,621  10,859,740   1,705,119    18.6%
Utilities                   2,684,270   3,101,975    3,750,000   3,863,365     113,365     3.0%
Insurance & Liability         (69,266)   (156,587)     (11,541)          0      11,541 (100.0%)
Debt Service                        0           0            0           0           0     0.0%
Other                         372,729     368,905      411,476     485,314      73,838    17.9%
Total                    $70,863,886 $79,763,843 $84,481,755 $95,047,603 $10,565,848     12.5%




                                                      58
 Fiscal Year 2006-2007 Budget                                                   Division Budgets cont.


Operations Division cont.

Expenditures

                                          By Department
                                               (Whole Dollars)


                            FY 2004     FY 2005     FY 2006     FY 2007    FY 2006 to FY 2007
                             Actual      Actual    Budgeted    Adopted      Amount     Percent
Chief Operating Ofcr          $472,182    $392,421    $513,500    $544,934     $31,434     6.1%
Bus Transportation          33,000,504  37,046,369  35,470,852  40,048,383   4,577,531    12.9%
Operations Training                  0           0     565,910     673,633     107,723    19.0%
Bus Maintenance             14,688,193  15,969,107  16,852,594  19,055,901   2,203,307    13.1%
Light Rail                  17,412,639  20,448,675  22,690,294  24,737,618   2,047,324     9.0%
Police Services              5,290,369   5,455,126   7,927,011   9,495,839   1,568,828    19.8%
Scheduling                           0     452,145     461,594     491,295      29,701     6.4%
Total                     $70,863,886 $79,763,843 $84,481,755 $95,047,603 $10,565,848     12.5%



Positions

The FY 2007 Budget proposes 901 positions, an increase of 2 positions (0.2%) from the
FY 2006 Budget (899 positions). The increase reflects the transfer of a Bus Service Worker
from the Planning Division’s Community Bus Service Department to Bus Maintenance and the
shift of an existing Personnel Services Contract employee to a full-time employee in Police
Services.

                                FY 2004    FY 2005          FY 2006   FY 2007     FY 2006 to FY 2007
                                 Actual     Actual         Budgeted   Adopted     Amount Percent
Chief Operating Officer             3          3                3         3           0          0.0%
Bus Transportation                554        554              521       521           0          0.0%
Operations Training                 0          0                7         7           0          0.0%
Bus Maintenance                   125        124              124       125           1          0.8%
Light Rail                        199        208              216       216           0          0.0%
Police Services                    19         25               23        24           1          4.3%
Scheduling                          6          6                5         5           0          0.0%
Total                             906        920              899       901           2          0.2%




                                                    59
 Fiscal Year 2006-2007 Budget                                                Division Budgets cont.


Administrative Services & Equal Employment Opportunity Division

This division supports all other divisions in recruitment, employee benefits, labor relations,
board member relations, and inter-governmental relations.


                                    Chief Administrative Officer




            Equal Employment        Human                        Employee    Customer
               Opportunity         Resources                     Relations    Service



    •    The Chief Administrative Officer guides and directs the division.
    •    Equal Employment Opportunity (EEO) administers the EEO program and investigates
         and settles EEO-related complaints.
    •    Human Resources administers employee recruitment, non-operator training, benefits,
         and promotion.
    •    Employee Relations advises, trains, and represents RT in employee collective
         bargaining, grievances, and arbitration.
    •    Customer Service provides assistance to the people who use RT services.

Expenditures

                                     By Expense Category
                                               (Whole Dollars)


                          FY 2004     FY 2005     FY 2006     FY 2007          FY 2006 to FY 2007
                           Actual      Actual    Budgeted    Adopted            Amount      Percent
Salaries & Benefits       $4,610,475  $4,810,362  $4,261,847  $4,454,434          $192,587      4.5%
Professional Services        602,212     597,147     996,600   1,713,710           717,110    72.0%
Materials & Supplies         164,932     136,230      41,400     148,500           107,100 258.7%
Utilities                      2,254         642           0           0                 0      0.0%
Insurance & Liability      9,424,870   7,335,673   9,133,369   8,295,668          (837,701)   (9.2%)
Debt Service                       0           0           0           0                 0      0.0%
Other                        479,490     432,995     438,326     236,091          (202,235) (46.1%)
Total                   $15,284,232 $13,313,048 $14,871,542 $14,848,403          ($23,139) (0.2%)




                                                    60
 Fiscal Year 2006-2007 Budget                                                 Division Budgets cont.


Administrative Services & Equal Employment Opportunity Division
cont.

Expenditures

                                          By Department
                                             (Whole Dollars)


                        FY 2004     FY 2005     FY 2006     FY 2007             FY 2006 to FY 2007
                         Actual      Actual    Budgeted    Adopted              Amount       Percent
Equal Employment          $229,378    $243,194    $228,794    $205,077             ($23,717) (10.4%)
Chief of Staff             103,663     228,226           0           0                    0       0.0%
Chief Admin Officer        168,044     394,553     551,931   1,313,668              761,737   138.0%
Human Resources         12,499,028  10,297,137  11,768,732  10,761,428           (1,007,304)    (8.6%)
Employee Relations         629,107     557,258     648,949     816,999              168,050     25.9%
Customer Service         1,655,012   1,592,680   1,673,136   1,751,231               78,095       4.7%
Total                 $15,284,232 $13,313,048 $14,871,542 $14,848,403             ($23,139)    (0.2%)



Positions

                                FY 2004   FY 2005         FY 2006   FY 2007     FY 2006 to FY 2007
                                 Actual    Actual        Budgeted   Adopted     Amount Percent
Equal Employment Oppty              2         2               2         2           0          0.0%
Chief of Staff                      5         5              0         0            0          0.0%
Chief Admin Officer                 2         2              7         7            0          0.0%
Human Resources                    28        27              20        20           0          0.0%
Employee Relations                  4         4               4         4           0          0.0%
Customer Service                   29        29              30        30           0          0.0%
Total                              70        69             63        63            0          0.0%




                                                  61
 Fiscal Year 2006-2007 Budget                                                                   Division Budgets cont.


Engineering & Construction Division

This division designs, engineers, and constructs major and minor capital projects.

                                            Assistant General Manager
                                                  Construction &
                                                   Engineering




                                      Civil & Track                     Program               Project
             Systems Design
                                         Design                         Control             Management



    •    The Assistant General Manager of Construction & Engineering guides and directs the
         division.
    •    Systems Design plans and creates bus and light rail electrical systems.
    •    Civil & Track Design plans and creates bus and light rail structures and facilities.
    •    Program Control schedules, monitors, and reports on capital projects.
    •    Project Management plan, administer, and direct capital project activity.

Expenditures

                                         By Expense Category
                                                      (Whole Dollars)


                         FY 2004          FY 2005              FY 2006             FY 2007        FY 2006 to FY 2007
                          Actual           Actual             Budgeted            Adopted          Amount      Percent
Salaries & Benefits      $1,372,260       $1,152,143            $865,134            $975,934        $110,800     12.8%
Professional Services        17,401                0               30,000              18,750         (11,250) (37.5%)
Materials & Supplies         73,344           11,776               82,000              20,501         (61,499) (75.0%)
Utilities                         0                0                    0                   0               0     0.0%
Insurance & Liability             0                0                    0                   0               0     0.0%
Debt Service                      0                0                    0                   0               0     0.0%
Other                        34,206              754               30,500              41,668          11,168    36.6%
Total                   $1,497,211       $1,164,673           $1,007,634          $1,056,853         $49,219      4.9%




                                                           62
 Fiscal Year 2006-2007 Budget                                                           Division Budgets cont.


Engineering & Construction Division cont.

Expenditures

                                              By Department
                                                   (Whole Dollars)


                          FY 2004          FY 2005          FY 2006        FY 2007        FY 2006 to FY 2007
                           Actual           Actual         Budgeted       Adopted         Amount      Percent
AGM of Engineering          $208,911         $119,300        $207,750       $185,072        ($22,678) (10.9%)
Systems Design               230,409          259,330          240,590         43,819       (196,771) (81.8%)
Civil & Track Design         320,717          302,872          215,875        180,136        (35,739) (16.6%)
Program Control              349,562          174,976          218,362        549,330        330,968    151.6%
Project Mgmt                 332,776          230,037           85,995         98,496         12,501     14.5%
Environmental Serv            54,836           78,156           39,062              0        (39,062) (100.0%)
Total                    $1,497,211       $1,164,673       $1,007,634     $1,056,853        $49,219       4.9%



Positions

The FY 2007 Budget proposes 46 positions, a decrease of 1 position (-2.1%) from the
FY 2006 Budget (47 positions). The net decrease reflects the transfer of an Environmental
Manager from Environmental Services to the Planning Division’s Service Planning Department
and transfers of 4 positions between departments within the Engineering division.

                                FY 2004       FY 2005           FY 2006     FY 2007       FY 2006 to FY 2007
                                 Actual        Actual          Budgeted     Adopted       Amount Percent
AGM of Engineering                  4             4                 4           5             1         25.0%
Systems Design                     10            10                 9           9             0          0.0%
Civil & Track Design               14            14                12          13             1          8.3%
Program Control                    10            10                 7           9             2         28.6%
Project Management                 13            13                12          10            (2)      (16.7%)
Environmental Services              3             3                 3           0            (3)         0.0%
Total                              54            54               47          46             (1)       (2.1%)




                                                        63
 Fiscal Year 2006-2007 Budget                                                              Division Budgets cont.


Finance Division

This division provides all financial services to the District.


                                          Chief Financial Officer




                                      Finance/                 Office of
                                      Treasury               Mgmt & Budget



    •    The Chief Financial Officer guides and directs the division.
    •    Finance/Treasury performs, records, and reports on all financial transactions.
    •    Office of Management & Budget (OMB) allocates, monitors, and reports all resources
         and expenditures.

Expenditures

                                         By Expense Category
                                                   (Whole Dollars)


                         FY 2004          FY 2005           FY 2006           FY 2007        FY 2006 to FY 2007
                          Actual           Actual          Budgeted          Adopted          Amount      Percent
Salaries & Benefits      $2,316,230       $2,039,375        $1,999,929        $2,125,800        $125,871     6.3%
Professional Services       329,287          134,305           183,355           153,450         (29,905) (16.3%)
Materials & Supplies        310,500          234,233           286,100           402,300         116,200    40.6%
Utilities                        (5)               0                 0                 0               0     0.0%
Insurance & Liability             0                0                 0                 0               0     0.0%
Debt Service                      0           14,061         2,082,258         2,079,258          (3,000)    0.0%
Other                       152,470          209,314            37,850           159,850         122,000 322.3%
Total                   $3,108,483       $2,631,287        $4,589,492        $4,920,658        $331,166      7.2%



                                             By Department
                                                   (Whole Dollars)


                         FY 2004          FY 2005           FY 2006       FY 2007            FY 2006 to FY 2007
                          Actual           Actual          Budgeted      Adopted             Amount      Percent
Chief Financial Ofcr       $114,014         $305,957         $276,487      $302,084             $25,597       9.3%
Finance/Treasury          2,800,051        1,759,959         3,800,176     4,114,726            314,550       8.3%
Ofc of Mgmt & Bud           194,418          565,371           512,829       503,848             (8,981)    (1.8%)
Total                   $3,108,483       $2,631,287        $4,589,492    $4,920,658           $331,166       7.2%




                                                        64
 Fiscal Year 2006-2007 Budget                                             Division Budgets cont.


Finance Division cont.

Positions

                                FY 2004   FY 2005     FY 2006   FY 2007     FY 2006 to FY 2007
                                 Actual    Actual    Budgeted   Adopted     Amount Percent
Chief Financial Officer             2         2          2         2            0          0.0%
Finance/Treasury                   25        24          22        22           0          0.0%
Office of Mgmt & Budget             9        10          8         8            0          0.0%
Total                              36        36         32        32            0          0.0%




                                                65
 Fiscal Year 2006-2007 Budget                                                             Division Budgets cont.


Planning & Transit System Development Division

This division develops short-term and long-term service goals.

                                          Assistant General Manager
                                             of Planning & Transit
                                             System Development




     Service              Purchased      Community                      Public                          Accessible
                                                                                   Real Estate
    Planning            Transportation   Bus Service                 Information                         Services




    •    The Assistant General Manager of Planning & Transit System Development guides and
         directs the division.
    •    Service Planning develops and maintains transportation schedule and route programs.
    •    Purchased Transportation contracts with an outside vendor to provide transportation
         for disabled riders who cannot use fixed-route bus service.
    •    Community Bus Service schedules, dispatches, and maintains neigborhood bus service.
    •    Real Estate acquires, develops, and disposes of land and buildings.
    •    Accessible Services develops and maintains practices to serve disabled riders.
    •    Public Information markets RT to customers, potential customers, and the public.

Expenditures
                                         By Expense Category
                                                       (Whole Dollars)


                             FY 2004     FY 2005     FY 2006     FY 2007                    FY 2006 to FY 2007
                              Actual      Actual    Budgeted    Adopted                      Amount      Percent
Salaries & Benefits          $3,128,034  $2,717,445  $4,054,165  $5,015,900                   $961,735     23.7%
Professional Services         8,930,481   9,557,703  10,502,204  11,329,505                     827,301      7.9%
Materials & Supplies             34,656      94,487      60,700      84,895                      24,195    39.9%
Utilities                           168           0           0           0                           0      0.0%
Insurance & Liability                 0           0           0           0                           0      0.0%
Debt Service                          0           0           0           0                           0      0.0%
Other                            58,125     125,034      97,995      96,270                      (1,725)   (1.8%)
Total                      $12,151,465 $12,494,669 $14,715,064 $16,526,570                  $1,811,506     12.3%




                                                            66
    Fiscal Year 2006-2007 Budget                                                                                                    Division Budgets cont.


Planning & Transit System Development Division cont.

Expenditures

                                                                       By Department
                                                                               (Whole Dollars)


                                        FY 2004     FY 2005     FY 2006     FY 2007                                                    FY 2006 to FY 2007
                                         Actual      Actual    Budgeted    Adopted                                                      Amount      Percent
AGM of Planning                           $229,145    $242,856    $218,162    $252,197                                                     $34,035    15.6%
Service Planning                         1,318,246     787,032   1,192,261   1,489,740                                                     297,479    25.0%
Purchased Transport                      8,036,497   8,900,773   9,590,404  10,261,000                                                     670,596      7.0%
Community Bus Serv                               0      43,969   1,294,475   2,071,381                                                     776,906    60.0%
Public Information 1                     1,468,503   1,286,071   1,089,813   1,491,197                                                     401,384      0.0%
Real Estate                                510,988     614,666     645,228     267,162                                                    (378,066) (58.6%)
Accessible Services                        588,085     619,303     684,721     693,893                                                       9,172      1.3%
Total                                 $12,151,465 $12,494,669 $14,715,064 $16,526,570                                                  $1,811,506     12.3%

1
    In FY 2006, RT reorganized the Marketing and Public Relations Division between the Planning Division and Administrative Services Division. The Planning Division
received the Public Information & Marketing Department.



Positions

The FY 2007 Budget proposes 82 positions, which represents no net change from the
FY 2006 Budget. However, the 82 positions reflect the transfer of a Bus Service Worker from
Community Bus Services to the Operations Division’s Bus Maintenance Department and the
transfer of an Environmental Manager from the Engineering Division’s Environmental Services
Department to Service Planning.

                                                  FY 2004               FY 2005              FY 2006               FY 2007              FY 2006 to FY 2007
                                                   Actual                Actual             Budgeted               Adopted              Amount Percent
AGM of Planning                                       2                     2                    2                     2                   0           0.0%
Service Planning                                     23                    23                   22                    23                    1          4.5%
Purchased Transportation                              0                     0                    0                     0                   0           0.0%
Community Bus Service                                 0                     2                   34                    33                   (1)       (2.9%)
Public Information                                   14                    14                   10                    10                   0           0.0%
Real Estate                                           6                     6                    6                     6                   0           0.0%
Accessible Services                                   8                     8                    8                     8                   0           0.0%
Total                                                53                    55                  82                    82                    0           0.0%




                                                                                    67
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Capital Improvement Program
 Fiscal Year 2006-2007 Budget                                     Capital Improvement Program


Capital Improvement Program

RT’s capital budget allocates resources to improve infrastructure by acquiring, constructing,
purchasing, rehabilitating, and replacing facilities and major equipment. Improvement
projects generally occur in phases over multiple years.

The FY 2007 Budget focuses on the following capital priorities:

   •     Complete Amtrak-Folsom light rail extension.
   •     Replace first generation compressed natural gas buses.
   •     Overhaul Siemens and retrofit UTDC light rail vehicles.
   •     Continue Northeast Corridor and South Line Phase II development.
   •     Complete Downtown, North Natomas, and Airport Extension environmental studies.
   •     Finalize multi-year capital improvement & expenditure plan.
   •     Implement fare collection, radio communications, and information systems.

Revenues

RT relies primarily on local, state, and federal grants to pay for capital projects. The FY 2007
Budget proposes $118.9 million for capital projects, with 65% of funding from state grants,
23% from federal grants, and 12% from local grants.

     •    The FY 2007 Budget proposes $118.9 million in capital revenue from grants, an
          increase of $57.2 million (92.5%) from the FY 2006 Budget ($61.8 million).
     •    The increase includes $46.8 million in state funds, $5.2 million federal, and $5.1
          million local.

Expenditures

RT’s capital budget allocates resources to improve infrastructure by acquiring, constructing,
purchasing, rehabilitating, and replacing facilities and major equipment. Improvement
projects generally occur in phases over multiple years.

   •     The FY 2007 Budget proposes $118.9 million for capital projects, an increase of
         $57.2 million (92.5%) from the FY 2006 Budget ($61.8 million).
   •     The increase reflects $10.1 million for existing projects and $47.1 million for new
         projects.




                                              69
 Fiscal Year 2006-2007 Budget                                     Capital Improvement Program cont.


Expenditures cont.

                                  Expenditures By Program


                                  Paratransit    Other
                     Light Rail      1%           3%
                        10%


      Bus
      7%




                                                                                        Major
                                                                                     Construction
                                                                                        79%



                                                (Whole Dollars)


                                         Budgeted
                                          Through      FY 2007       Future       Total
                                          FY 2006      Adopted     Estimated     Project
Major Construction                       $471,669,866  $41,714,553  $91,847,252 $605,231,671
Bus                                        39,181,920   41,302,183      104,016   80,588,119
Light Rail                                 60,521,536   23,958,073   11,926,492   96,406,101
Paratransit                                 3,324,850    5,154,839                 8,479,689
Other                                      16,295,255    6,794,108      253,832   23,343,195
Total                                   $590,993,427 $118,923,756 $104,131,592 $814,048,775




                                                     70
 Fiscal Year 2006-2007 Budget                                                     Capital Improvement Program cont.


Expenditures cont.

The following tables identify the specific projects within each program.

                                   Major Construction Expenditures By Project
                                                         (Whole Dollars)


                                                     Budgeted
                                                      Through               FY 2007         Future          Total
                                                      FY 2006               Adopted       Estimated        Project
Amtrak Depot Restoration Project                         $500,000            $1,477,011                     $1,977,011
Amtrak/Folsom Light Rail Extension                    230,668,866            20,246,377      5,084,757     256,000,000
Bus Maintenance Facility #2                             1,666,150               511,439     21,762,882      23,940,471
Downtown-Natomas-Airport Light Rail                     8,901,149             2,000,000      6,609,040      17,510,189
So Sac Light Rail Extension Phase 1                   220,860,274             1,139,726                    222,000,000
So Sac Light Rail Extension Phase 2 (Partial)           9,073,427            16,340,000     58,390,573      83,804,000
Total                                               $471,669,866           $41,714,553    $91,847,252    $605,231,671



                                                Bus Expenditures By Project
                                                         (Whole Dollars)


                                                     Budgeted
                                                      Through               FY 2007         Future          Total
                                                      FY 2006               Adopted       Estimated        Project
Passenger Auto-Counters on Buses                          $80,000               $25,000                      $105,000
Stockton Blvd Bus Rapid Transit Phase 2                                         100,000                        100,000
Bus Stop Improvement Program                              182,146                39,441                        221,587
Bus System Security Cameras                                97,963                41,759                        139,722
CNG Bus Acquisition                                    36,817,382               196,493                     37,013,875
CNG Bus Replacement (95 in 2008)                                             40,776,630                     40,776,630
CNG Rebuild Parts Kit                                      70,367                 2,000                         72,367
Non-Revenue Vehicle Replacement                           955,924                 4,076                        960,000
Bus Shop Equipment                                        196,892                16,784                        213,676
Trolley/Neighbor. Ride Vehicle Acquisition                781,246               100,000        104,016         985,262
Total                                                $39,181,920           $41,302,183       $104,016     $80,588,119




                                                              71
 Fiscal Year 2006-2007 Budget                                                    Capital Improvement Program cont.


Expenditures cont.

                                            Light Rail Expenditures By Project
                                                        (Whole Dollars)


                                                     Budgeted
                                                      Through             FY 2007          Future         Total
                                                      FY 2006             Adopted        Estimated       Project
13th & 16th Station LR Improvements                      $115,000           $793,000          $80,000      $988,000
47th Ave Station Traffic Signal                           207,500                                            207,500
Folsom Park & Ride Facilities                           2,190,376                                          2,190,376
Amtrak/Folsom Right of Way Activities                     248,727               17,893          5,573        272,193
Metro Heavy Repair Facility                            10,670,175                                         10,670,175
Metro Heavy Repair Facility Equip.                        466,321                                            466,321
Butterfield/Mather Mills Station Improve.                  41,000              75,600          17,889        134,489
Central Streetcar Starter Line                                                564,780                        564,780
Central Train Tracking                                  1,305,828             179,481                      1,485,309
Cordova Town Center Station Improvements                  137,700                                            137,700
Crossing Protection Modifications                         169,077             193,423                        362,500
Dos Rios LR Station                                       271,053             198,947                        470,000
Existing System Soundwalls                                952,325                                            952,325
Florin Road Grade Separation                            6,346,751              100,000                     6,446,751
K Street Mall Improvements                                                     545,520                       545,520
Light Rail Fleet Improvements                           2,586,000            1,200,000                     3,786,000
Light Rail Vehicle Procurement                          5,241,650              333,350                     5,575,000
LRT System Noise Attenuation                              790,717                                            790,717
LRV Comm. Kits-LRT Security Cameras                       165,947              434,053                       600,000
LRV Mid-Life Overhaul (Partial)                         3,645,397            1,295,603                     4,941,000
LRV Operator Seat Replacements                             71,494                                             71,494
LRV Retrofit Communication Kits                         2,471,250            1,000,000                     3,471,250
Major LRT Station Rehabilitation                        4,661,959              587,857                     5,249,816
Midtown Dispatch Facility                               1,517,787               48,423                     1,566,210
Northeast Corridor Enhancements                         3,311,528           12,664,969     10,000,000     25,976,497
OCS/Substation Upgrades                                   371,665              146,100         16,235        534,000
Richards Blvd/12th & 16th Ave Grade Crossing                                   295,141                       295,141
South Sacramento Light Rail Related Projects            1,540,454                                          1,540,454
Starter Line Station Enhancement Design                                       841,519                        841,519
Substation Upgrade                                       339,025              560,975                        900,000
Swanston Pedestrian Bridge                                92,991                            1,806,795      1,899,786
Track & Grade Crossing Improvements                      583,652                49,626                       633,278
UTDC Light Rail Vehicle Acquisition & Retrofit         9,515,902             1,824,098                    11,340,000
Wayside Signal Reconfiguration                           492,285                 7,715                       500,000
Total                                               $60,521,536           $23,958,073    $11,926,492    $96,406,101




                                                             72
 Fiscal Year 2006-2007 Budget                                                 Capital Improvement Program cont.


Expenditures cont.

                                         Paratransit Expenditures By Project
                                                      (Whole Dollars)


                                                  Budgeted
                                                   Through              FY 2007         Future          Total
                                                   FY 2006              Adopted       Estimated        Project
Paratransit Vehicle Replacement                     $3,324,850           $5,154,839                     $8,479,689
Total                                              $3,324,850           $5,154,839              $0     $8,479,689


                                           Other Expenditures By Project
                                                      (Whole Dollars)


                                                  Budgeted
                                                   Through              FY 2007         Future         Total
                                                   FY 2006              Adopted       Estimated       Project
ADA Transition Plan Improvements                      $161,227             $158,862                     $320,089
Capital Project Reserve                                                   1,400,000                     1,400,000
Computing and Telecommunications Systems               141,734                8,266                       150,000
Computer Software Licensing & Compliance               131,050                                            131,050
Document Archival                                       50,000                                             50,000
Facilities Maintenance and Improvements              1,069,659              235,565                     1,305,224
Facilities Management and Improvements                 767,175                                            767,175
Fare Vending Machines                                6,175,509               34,165                     6,209,674
Farebox Collection Technology Study                    150,000                                            150,000
Farebox Collection / Smart Media Study                 137,082                                            137,082
Fiber Optics Program                                 1,419,483               83,017                     1,502,500
General Construction Mgmt Support Services             351,744               33,256                       385,000
General Engineering Support Services                   286,949               58,051                       345,000
Homeland Security Equipment                            108,600                                            108,600
Incremental Lighting of Fiber                          261,454              243,546                       505,000
IT Software & Hardware Enhancement                      40,000               10,000                        50,000
JARC and Other Transit Grants                        2,730,296            3,156,652                     5,886,948
JPA Project                                              3,773               21,227                        25,000
Regional Rail (Phase 1 - RT Partner)                   419,021              300,000        253,832        972,853
SAP Fixed Asset Tracking                                10,000                                             10,000
Transit Oriented Development Planning                                       300,000                       300,000
Transportation Efficiency & Management Sys           1,394,823              606,177                     2,001,000
Wayside Backhoe                                         75,000                                             75,000
Watt Ave Grade Separation (RT Partner)                 410,676              145,324                       556,000
Total                                             $16,295,255           $6,794,108       $253,832    $23,343,195




                                                           73
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Appendix
Fiscal Year 2006-2007 Budget                                                    Appendix


Acronyms

ADA              Americans with Disabilities Act
A EA             Administrative Employee Association
AFSCME           American Federation of State, County and Municipal Employees
ATU              Amalgamated Transit Union
BMF-2            Bus Maintenance Facility 2
CAFR             Comprehensive Annual Financial Report
CBS              Community Bus Service
CIP              Capital Improvement Program
CNG              Compressed Natural Gas
CTC              California Transportation Commission
CTEP             Countywide Transportation Expenditure Plan (Measure A)
EMT              Executive Management Team
FTA              Federal Transit Administration
FY               Fiscal Year
GASB             Governmental Accounting Standards Board
IBEW             International Brotherhood of Electrical Workers
JA R C           Jobs Access and Reverse Commute
LTF              Local Transportation Fund
MCEG             Managerial and Confidential Employees Group
PTA              Public Transportation Account
RT               Regional Transit
SACOG            Sacramento Area Council of Governments
STA              State Transportation Assistance
STIP             State Transportation Improvement Program
TCRA             Traffic Congestion Relief Act
TCRP             Traffic Congestion Relief Program
TDA              Transportation Development Act




                                            75
This page intentionally left blank
 Fiscal Year 2006-2007 Budget                                                  Appendix cont.


Glossary

Accidents Per 100,000 Miles

The collisions and passenger incidents on vehicles.

        Accidents Per 100,000 Miles = Total Number of Accidents / 100,000

Accountability

The state of being obliged to explain one’s actions, to justify what one does. Accountability
requires governments to answer to the citizenry to justify the raising of public resources and
the purposes for which they are used.

Accounting

The methods and records established to identify, assemble, analyze, classify, record and report
a government’s transactions and to maintain accountability for the related assets and
liabilities.

Accrual Basis

The recording of the financial effects on a government of transactions and other events and
circumstances that have cash consequences for the government in the periods in which those
transactions, events and circumstances occur, rather than only in the periods in which cash is
received or paid by the government.

ADA Trip Denials

The percentage of trip requests for service that Paratransit cannot provide.

        ADA Trip Denials = Total ADA Trip Denials / Total ADA Trip Requests

Amalgamated Transit Union (ATU)

The union representing mechanics and other maintenance employees.

American Federation of State, County and Municipal Employees (AFSCME)

The union representing maintenance and transportation supervisors.




                                               77
 Fiscal Year 2006-2007 Budget                                                   Appendix cont.


Glossary cont.

Americans with Disabilities Act (ADA)

Federal law passed in 1990 that prohibits discrimination in service facilities and employment
against individuals with disabilities.

Annual Budget

A budget applicable to a single fiscal year. See Budget and Operating Budget.

Average Daily Weekday Ridership

The measurement of average weekday passenger boardings. Bus average daily weekday
ridership is based on farebox data gathered at the trip-level. Light rail average daily weekday
ridership is based on two random daily physical ride checks and any other available light rail
counts from the given time period (or month).

Average Days To Complete ADA Assessments

The average number of days to assess applications for ADA service.

        Average Days To Complete ADA Assessments =
                      Total Days Processing Applications /
                      Total Number of Applications

Average Days To Respond To Passenger ADA Complaints

The average number of days to resolve a filed ADA complaint.

        Average Days To Respond To Passenger ADA Complaints =
                      Total Days Investigating and Responding to Complaints /
                      Total Number of Complaints

Basis of Accounting

A term used to refer to when revenues, expenditures, expenses, transfers, and the related
assets and liabilities are recognized in the accounts and reported in the financial statements.
Specifically, it relates to the timing of the measurements made, regardless of the nature of the
measurement, on either the cash or the accrual method.




                                              78
 Fiscal Year 2006-2007 Budget                                                Appendix cont.


Glossary cont.

Budget

A plan of financial operation embodying an estimate of proposed expenditures for a given
period and the proposed means of financing them. Used without any modifier, the term
usually indicates a financial plan for a single fiscal year. The term “budget” is used in two
senses in practice. Sometimes it designates the financial plan presented to the appropriating
governing body of adoption, and sometimes, the plan finally approved by the body.

Budget Process

A cycle involving a series of recurrent and continuous planning steps to arrive at a viable
financial plan.

Budgetary Control

The control or management of a government or enterprise in accordance with an approved
budget to keep expenditures within the limitations of available appropriations and available
revenues.

Capital

The government’s general fixed assets, also known as infrastructure, including facilities and
major equipment.

Capital Budget

The expenditures resulting in the acquisition of or addition to the government’s general fixed
assets.

Complaints Per Million Passengers

The complaints filed by transit riders.

        Complaints Per Million Passengers = Total Number of Complaints / 1,000,000


Commendations Per Million Passengers

The commendations filed by transit riders.

        Commendations Per Million Passengers = Total Number of Commendations/
                                               1,000,000


                                             79
 Fiscal Year 2006-2007 Budget                                                   Appendix cont.


Glossary cont.

Cost Per Passenger

The fully allocated cost of providing service, by mode (bus or rail), to a passenger, required by
California Public Utilities Code Section 99246(d).

        Modal Cost Per Passenger = Modal Operating Expenses / Modal Ridership

Cost Per Revenue Hour

The fully allocated cost of providing service, by mode (bus or rail), for one revenue vehicle
hour, required by California Public Utilities Code Section 99246(d).

        Modal Cost Per Revenue Hour = Modal Operating Expenses /
                                      Modal Revenue Vehicle Hours

Cost Per Revenue Mile

The fully allocated cost of providing service, by mode (bus or rail), for one revenue vehicle
mile.

        Modal Cost Per Revenue Mile = Modal Operating Expenses /
                                      Modal Revenue Vehicle Miles

Crimes Committed Per Million Passengers

The crimes reported by transit riders.

        Crimes Per Million Passengers = Total Number of Crimes Reported / 1,000,000

Debt

An obligation resulting from the borrowing of money or from the purchase of goods and
services. Debts of governments include bonds, time warrants and notes.

Employee Availability Days

The average number of employee work days per year by employee group (union).

        Group Employee Availability Days = Group Potential Workdays –
                                           Group Absent Workdays




                                               80
 Fiscal Year 2006-2007 Budget                                                   Appendix cont.


Glossary cont.

Enterprise Fund

The fund used to finance and account for operation and maintenance of self-supporting
facilities and services.

Expenditures

The decreases in net financial resources. Expenditures include current operating expenses
requiring the present or future use of net current assets, debt service and capital outlays, and
intergovernmental grants, entitlements and shared revenues.

Fairbox Recovery Ratio

The percentage of operating costs paid by transit riders, required by California Public Utilities
Code Section 99268.2 and 99268.3.

        Farebox Recovery Ratio = Fare Revenue /
                                (Total Operating Expenses - Purchased Transportation)

Fare Revenue

The amount of revenue paid by transit riders.

        Fare Revenue = Farebox Revenue + Prepaid Sales + Special Fare Revenue

Federal

The United States government.

Fiscal Year

A 12-month period to which the annual operating budget applies and at the end of which a
government determines its financial position and the results of its operations. District’s Fiscal
Year begins July 1 and ends on June 30.

Fund

A fiscal and accounting entity with a self-balancing set of accounts in which cash and other
financial resources, all related liabilities and residual equities, or balances, and changes
therein, are recorded and segregated to carry on specific activities or attain certain objectives
in accordance with special regulations, restrictions or limitations.



                                                81
 Fiscal Year 2006-2007 Budget                                                   Appendix cont.


Glossary cont.

Light Rail

The lightweight passenger rail cars operating with traction power on fixed rails in right-of-way
that is not separated from other traffic for much of the way.

Mean Distance Between Failures

The average miles between mechanical service calls for revenue vehicles in revenue services.

        Mean Distance Between Failures = Total Fleet Miles / Total Road Calls

Miles Between Service Calls

See Mean Distance Between Failures.

On-Time Performance

The percentage of bus arrivals at the scheduled time.

        On-Time Performance = (Total Time Point Events – Total Late Events) /
                               Total Time Point Events

Operating

Maintaining the ongoing functions of an agency or service. “Operating expenses” include
wages, benefits, supplies, and services. “Operating Assistance” is used to pay for the costs of
providing public transit service.

Operating Budget

The plans of current expenditures and the proposed means of financing them. The annual
operating budget (or, in the case of some state governments, the biennial operating budget) is
the primary means by which most of the financing, acquisition, spending and service delivery
activities of government are controlled. The use of an annual operating budget is usually
required by law. Even when not required by law, however, annual operating budgets are
essential to sound financial management and should be adopted by every government. See
Budget.

Operating Expense

The total expenses paid to operate and maintain service, including salaries and benefits,
contracts, materials and supplies, utilities, debt, and taxes.



                                              82
 Fiscal Year 2006-2007 Budget                                                   Appendix cont.


Glossary cont.

Overhead

The production costs not directly traceable to the product or service produced. These costs do
not become an integral part of the finished product or service, such as rent, heat, light,
supplies, management and supervision.

Paratransit

The comparable transportation service required by the ADA for individuals with disabilities
who are unable to use fixed-route service.

Principal

In the context of bonds other than deep-discount debt, the face value or par value of a bond or
issue of bonds payable on stated dates of maturity.

Program

The group activities, operations, or organizational units directed to attaining specific purposes
or objectives.

Public Transit

The provision of general or special transportation service by a public agency to the public on a
regular and continuing basis.

Revenue

The receipts derived from or for the operation of transit service including farebox revenue,
revenue from other commercial sources, and operating assistance from governments. Farebox
revenue includes all fare, transfer charges, and zone charges paid by transit passengers.

Revenue Vehicle

The vehicles that carry fare-paying passengers.

Subsidy

The funds granted by federal, state or local government.




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