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Fy2017 Proposed Budget Effective July 1, 2016

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Fy2017 Proposed Budget Effective July 1, 2016 S A F E T Y, S E R V I C E A N D F I N A N C I A L R E S P O N S I B I L I T Y FY2017 PROPOSED BUDGET EFFECTIVE JULY 1, 2016 FOCUSING ON THE CUSTOMER W A S H I N G T O N M E T R O P O L I TA N A R E A T R A N S I T A U T H O R I T Y Fiscal Year 2017 Proposed Budget Prioritizing Safety, Service Reliability, and Financial Responsibility General Manager’s Message As I reach out across the region in my new role as Metro’s Chief Executive, I am privileged to meet and hear from our many, diverse stakeholders: Metro riders, employees and union leaders, our jurisdictional partners and funders, oversight authorities, community leaders, and so many others. It is clear that our region expects and deserves a world class transit system with the highest safety culture. The system must also provide frequent, reliable service to customers and be supported by adequate funding and sound financial management. Delivering on these expectations will be my top priorities. This proposed budget is a good beginning, and it will be refined going forward as we reexamine Metro’s challenges, resources and management in the context of the region’s needs. Our vision and business plan will incorporate the result of an on-going efficiency analysis and will build upon the hard work of our employees. In the meantime, the FY2017 proposed budget provides a good foundation for future actions that reinforce my core priorities of safety first, service reliability, and responsible fiscal management. The proposed budget funds important safety investments, including full compliance with the 91 corrective actions required by the Federal Transit Administration’s (FTA) Safety Management Inspection (SMI) report, as well as National Transportation Safety Board (NTSB) recommended projects. Other key safety investments include the installation of a new rail radio system and continuation of Metro’s fatigue management system for safety sensitive positions. Very importantly, the proposed budget takes steps to refocus on our customers with proposed actions that recognize that we are working to improve service and want to regain their confidence along the way, as well as attract even more riders. A new pass is designed to attract more college students during off-peak times, and current rail riders will find that existing Metrorail passes will be more attractive with new, unlimited access to Metrobus at no additional charge. We have also proposed a 15-minute “grace period” so riders who quickly enter and exit a station, particularly during a service disruption, will not be charged. For Metrorail, we will continue our railcar modernization with the scheduled delivery of 168 new 7000 series railcars in FY2017, which will greatly improve reliability and the customer experience. We will also upgrade infrastructure at Metro’s Rail Operations Control Center and launch a modern customer contact center to better engage our customers through digital media. Finally, we have proposed a balanced operating budget for FY2017 without raising fares for customers, reducing service, or increasing support from jurisdictions. I look forward to working with the Board, our customers and our funding partners to finalize the budget in the coming months. I know we are all united behind improving Metro’s safety and service in the most financially responsible way. Paul J. Wiedefeld Chief Executive Officer WMATA Board of Directors The Washington Metropolitan Area Transit Authority is governed by a 16-member Board of Directors composed of eight Principal and eight Alternate members. The District of Columbia, Maryland, Virginia and the federal government each appoint two Principal and two Alternate members. Below are the members currently serving on the Board. Mortimer L. Downey, Chair, joined the Board in January 2010 as the first member appointed by the federal government. He served as the Deputy Secretary of Transportation from 1993 to 2001. Since 2001, he has been a transportation consultant, working on a wide variety of institutional, financial and organizational issues. Michael Goldman, First Vice Chair, was appointed to the Board in June 2013 as a Principal Director representing the State of Maryland. Mr. Goldman has practiced in the areas of international, antitrust and transportation law. Catherine Hudgins, Second Vice Chair, joined the Board in January 2004 as an Alternate Director. She was appointed as Principal Director in 2008 representing Fairfax County, Virginia. Mrs. Hudgins was first elected to the Fairfax County Board of Supervisors in November 1999. Jack Evans was appointed to the Board as a Principal Director in January 2015 representing the District of Columbia. Mr. Evans has served on the Council of the District of Columbia (Ward 2) since 1991. Harriet Tregoning joined the Board in November of 2014 as a Principal Director representing the federal government. She is currently the Director of HUD’s Office of Economic Resilience. She is also the former director of the District of Columbia’s Office of Planning. Keturah Harley was appointed to the Board as a Principal Director in April of 2015 representing Maryland. She has worked in the federal government as an Appellate Litigation Attorney at the U.S. Department of Veterans Affairs and with the District of Columbia Public Employee Relations Board (PERB), where she served as General Counsel and Executive Director (Acting). Jim Corcoran was appointed as a Principal Director to the Board in February 2015 representing the Commonwealth of Virginia. Since April 2010, he has served as President & CEO of the Fairfax County Chamber of Commerce. Under Mr. Corcoran's leadership, the Chamber is the preeminent Northern Virginia membership organization for businesses. Corbett A. Price was appointed to the Board in March 2015 as a Principal Director representing the District of Columbia. He currently serves as Chairman and CEO of Quantix Health Capital, LLC. Anthony R. Giancola, P.E. joined the Board in February 2007 as Alternate Director representing the District of Columbia and was designated an Alternate Director for the federal government in April 2011. From 1993 to 2011, Mr. Giancola served as the Executive Director of the National Association of County Engineers. Kathy Porter joined the Board in January 2011 as an Alternate Director from Montgomery County, Maryland. She was Mayor of the City of Takoma Park, Maryland, from 1997 to 2007. William D. Euille joined the Board in July 2000 as Alternate Director representing the City of Alexandria, Virginia. Mr. Euille is currently the Mayor of Alexandria, and he has served on the Alexandria City Council since May 1994. Tom Bulger was appointed to the Board in July 2011 as an Alternate Director for the District of Columbia. He is President of Government Relations Inc., and has been a federal advocate and policy consultant. Anthony E. Costa joined the Board in July 2014 as an Alternate Director representing the federal government. He is currently Senior Advisor to the Administrator of the General Services Administration (GSA) and is leading GSA's efforts to help direct federal real estate activities to encourage the provision of environments where communities and employees can live, work and thrive. Malcolm Augustine joined the Board in July of 2015 as an Alternate Director for Prince George's County. With over twenty years of experience, Mr. Augustine is a seasoned multi-channel marketing, sales, analytics and customer relationship executive in the direct marketing sector with specialty in higher education, non-profit, and healthcare. Mary Hynes was appointed by the Northern Virginia Transportation Commission to the Board in January 2011 as a Principal Director, and currently serves as a Virginia Alternate Director representing Arlington. She was first elected to the Arlington County Board in November 2007. Leif A. Dormsjo joined the Board in March of 2015 after being appointed as an Alternate Director representing the District Department of Transportation (DDOT). Prior to becoming DDOT Director, Mr. Dormsjo served as Deputy Secretary of the Maryland Department of Transportation (MDOT). Table of Contents Chapter I. Introduction to Metro .................................................................................................. I-1 FY2017 Executive Summary .................................................................................... I-12 Chapter II. FY2017 Proposed Budget ..........................................................................................II-1 Chapter III. FY2017 Proposed Operating Budget ..................................................................... III-1 Chapter IV. FY2017 Proposed Capital Budget.......................................................................... IV-1 Appendix A Capital Program ......................................................................................... A-1 Appendix B Human Capital Summary ............................................................................B-1 Appendix C Budget Process ............................................................................................C-1 Appendix D Financial Standards .................................................................................... D-1 Appendix E Debt Service ................................................................................................. E-1 Appendix F Operating Statistics ...................................................................................... F-1 Appendix G Glossary of Terms .....................................................................................
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