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Two-Year Financial Plan and Five-Year Capital Program 1

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Two-Year Financial Plan and Five-Year Capital Program 1 RTA-4cCover 3/25/08 12:17 PM Page 1 C M Y CM MY CY CMY K Composite Table of Contents 1 Introduction 5 Metra RTA Board of Directors.................................................... 2 Overview....................................................................... 91 Letter from the Executive Director................................. 3 Service Characteristics................................................ 91 Guide............................................................................... 4 Budget and Financial Plan........................................... 96 Budget Issues.................................................................. 5 2007 Budget vs. 2007 Estimate................................. 99 Legislative Update........................................................... 6 Statutory Compliance................................................... 100 Vision Statement & Strategic Plan................................. 6 Fare Structure.............................................................. 100 Governance Organizational Structure.............................................. 101 Overview........................................................................... 7 Budget Process............................................................... 8 Financial Policies............................................................ 10 6 Pace Ordinance 2007-63........................................................ 13 The GFOA Award.............................................................. 24 Suburban Service Overview....................................................................... 105 Service Characteristics................................................ 105 Budget in Brief Budget and Financial Plan.......................................... 108 2 2007 Budget vs. 2007 Estimate................................ 115 Overview........................................................................... 27 Statutory Compliance.................................................. 116 Service Characteristics................................................... 27 Organizational Structure............................................. 116 Operating Budget............................................................ 28 ADA Paratransit Statutory Compliance..................................................... 33 Overview....................................................................... 119 Source and Use of Funds............................................... 33 Service Characteristics................................................ 119 Capital Program............................................................... 34 Budget and Financial Plan.......................................... 120 2007 Budget vs. 2007 Estimate................................. 124 Statutory Compliance.................................................. 125 3 RTA Region Operating Plan Capital Budget and Financial Plan.............................................. 37 7 2007 Budget vs. 2007 Estimate.................................... 44 Capital Program............................................................... 44 Regional Overview........................................................ 129 Source of Funds........................................................... 130 Agency Operating Plan Use of Funds................................................................ 133 Budget and Financial Plan.............................................. 45 CTA Overview................................................................ 135 2007 Budget vs. 2007 Estimate.................................... 47 Metra Overview............................................................ 137 Organization..................................................................... 47 Pace Overview.............................................................. 139 Funding Goal Highlights.................................................. 54 Capital Impact on Operations..................................... 145 2008 Strategic & Short-Term Goal................................. 56 Goals & Performance Measures Introductions.................................................................... 59 8 Appendices Vision................................................................................ 59 Goals................................................................................ 59 2008 Budget Call Calendar......................................... 151 Objectives & Specific Measures..................................... 59 Budget Hearing Schedule............................................ 152 Reference Public Hearing Overview.............................................. 153 RTA Bonds........................................................................ 65 Glossary........................................................................ 153 Fund Accounting.............................................................. 67 Supplemental Data Basis of Budgeting.......................................................... 70 National Economic Projections................................... 161 RTA Region.................................................................... 161 RTA System Map.......................................................... 166 4 CTA Overview........................................................................... 75 Service Characteristics................................................... 75 Budget and Financial Plan.............................................. 78 2007 Budget vs. 2007 Estimate.................................... 85 Statutory Compliance...................................................... 86 Organizational Structure................................................. 86 RTA 2008 Budget, Two-Year Financial Plan and Five-Year Capital Program 1 1 Introduction 2 RTA 2008 Budget, Two-Year Financial Plan and Five-Year Capital Program RTA Board of Directors Jim Reilly, Chairman Fred T. L. Norris Appointing Authority: Appointing Authority: RTA Board of Directors Kane, Lake, McHenry and Will Counties Carole L. Brown Patrick V. Riley, Jr. Appointing Authority: Appointing Authority: Chicago Transit Authority Suburban Board Members of Cook County James Buchanan Michael Rosenberg Appointing Authority: Appointing Authority: City of Chicago City of Chicago William R. Coulson Judy Baar Topinka Appointing Authority: Appointing Authority: Suburban Board Members Suburban Board Members of Cook County of Cook County Patrick J. Durante Douglas M. Troiani Appointing Authority: Appointing Authority: DuPage County Suburban Board Members of Cook County Armando Gomez, Sr. Rev. Addie L. Wyatt Appointing Authority: Appointing Authority: City of Chicago City of Chicago Dwight A. Magalis Stephen E. Schlickman Appointing Authority: Executive Director Kane, Lake, McHenry and Will Counties RTA 2008 Budget, Two-Year Financial Plan and Five-Year Capital Program 3 Letter from the Executive Director The mass transit system has faced significant challenges over the past year. Insufficient operating and capital funding have forced the Regional Transportation Authority and its partners at the Chicago Transit Authority, Metra and Pace to make tough decisions in order to maintain vital transportation services for millions of riders throughout northeastern Illinois. Despite these challenges, the system was able to fulfill its critical responsibility throughout 2007 to the people, businesses and institutions of the nation’s third largest metro- politan region. Great challenges remain for 2008. Without a comprehensive, long-term operating and capital funding plan approved by the Illinois General Assembly, the transit agencies will be forced to address budget shortfalls by cutting services, raising fares and laying off employees. Reducing service and increasing costs for riders are not actions any agency wants to pursue. But we are required by law to implement a balanced budget. Without additional resources, we have no choice but to reduce the size of the system. This could not happen at a worse time, as demand for transit is increasing and traffic congestion is worsening throughout the region. The enclosed 2008 budget contains the financial outlook for the RTA, CTA, Metra and Pace. Unlike previous years, the transit agencies’ 2008 budgets do not include significant transfers of capital funds to operations. Shifting dollars from construction, maintenance and capital budgets has allowed day-to-day operations to con- tinue, but it has undermined our ability to repair, replace and upgrade vital components of the transit network. We must reinvest in the buses, trains, tracks, bridges and other infrastructure in order to maintain a viable, efficient and safe system as called for in ourMoving Beyond Congestion strategic plan. Over 700 organiza- tions and over 20,000 individuals have signed up in support as we work to create a world class, convenient, affordable, reliable and safe transit system that is the keystone of the regions’ growing business opportunities, thriving job market, clean air and livable communities. As we move forward and are faced with the possibility of shrinking the transit system due to the lack of funding, we will look to our strategic plan for direction as we maximize the funding we do have, and how we can best serve the transit needs for the people of northeastern Illinois. We will continue to work with state and local elected officials, the business community, civic and labor groups, the education community, our Partners for Transit and, most importantly, our riders, to achieve a comprehensive
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