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Fy 2018 Business Plan Dallas Area Rapid Transit FY 2018 BUSINESS PLAN Including FY 2018 Annual Budget and Twenty-Year Financial Plan FY 2018 Business Plan L4.indd 1 7/31/17 9:40 AM DART BOARD MEMBERS Sue Bauman Dallas Catherine Cuellar Dallas and Cockrell Hill Mark C. Enoch Garland, Rowlett and Glenn Heights Tim A. Hayden Carrollton and Irving Ray Jackson Dallas Jonathan R. Kelly Garland Patrick Kennedy Dallas Jon-Bertrell Killen Dallas Michele Wong Krause Dallas Amanda Moreno Dallas Gary Slagel Richardson, University Park, Addison and Highland Park Rick Stopfer Irving Dominique Torres Dallas Paul N. Wageman Plano Faye Moses Wilkins Plano and Farmers Branch FY 2018 Business Plan L4.indd 2 7/31/17 9:40 AM FY 2018 Business Plan (09/26/17) How to Use This Book What’s in this Book This book contains the Business Plan for Fiscal Year 2018 (FY 2018 – which ends September 30, 2018) for Dallas Area Rapid Transit (DART or the Agency). The Business Plan provides the DART Board of Directors, customers, taxpayers, elected officials, and other stakeholder groups of our region with a comprehensive summary of the Agency's plans and commitments to improve regional mobility, enhance the quality of life, and stimulate economic development. This document consolidates the key elements of the FY 2018 Annual Budget, the FY 2018 Twenty-Year Financial Plan, the Transit System Plan, and the Agency's Strategic Plan. A summary of the information contained in the various sections follows. The formal Letter of Transmittal summarizes priorities and issues for the upcoming year. The section titled Who We Are should help those not familiar with DART to understand the basis from which the Agency operates. This section also contains an organization chart along functional lines. The Twenty-Year Financial Plan represents a robust long-term projection of DART operating revenues, funding, operating expenses, capital expenditures, and other financial information. The Plan validates the affordability of system expansion and maintenance commitments, operating requirements, and debt repayment. Approval of the Plan requires an affirmative vote of two-thirds of the appointed and qualified members of the DART Board. The Annual Budget requires a majority vote and corresponds to the first year of the Plan. The Annual Budget enumerates the FY 2018 amounts for operating expenses, capital and non-operating costs, and debt service – including the underlying bases, issues, and factors – with an introductory section that describes the agency’s strategic priorities as the framework for the annual budget. The Organizational Units section contains modal key performance indicators, as well as the goals and budget detail by organizational unit. Lastly, the Reference section contains supporting information including the process employed to develop the Twenty-Year Financial Plan, description of DART financial policies, supplemental financial schedules such as sales tax and debt detail, data on fares, and definitions of terms and acronyms. Dallas Area Rapid Transit FY 2018 Business Plan (Including FY 2018 Annual Budget and FY 2018 Twenty-Year Financial Plan) FY 2018 Business Plan (09/26/17) The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Award to Dallas Area Rapid Transit for its annual budget for the fiscal year beginning October 1, 2016. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. FY 2018 Business Plan (09/26/2017) TABLE OF CONTENTS FY 2018 BUSINESS PLAN Section I – Who We Are Page Organization 1 Governance and Management Structure 3 The DART Transportation System 11 Section II – FY 2018 Twenty-Year Financial Plan Our View 17 FY 2017 Highlights 21 Structural Balance of the Budget and Financial Plan 25 Sources of Funds 28 Uses of Funds 36 Capital Projects Listing 42 Debt Program 49 Supplemental Financial Information 55 Funds and Fund Balances 57 Major Financial Plan Assumptions 61 Potential Risks and Opportunities 67 Section III – FY 2018 Annual Budget Overview 71 Strategic Priorities as Framework for Agency Initiatives 73 Strategic Priority 1 75 Strategic Priority 2 84 Strategic Priority 3 87 Strategic Priority 4 92 Strategic Priority 5 96 Strategic Priority 6 100 Budget Structure / Financial Summary 108 Inside the Numbers 109 Operating Expense Assumptions 111 Operating Budget Highlights 114 Budgeted Positions 116 Capital and Non-Operating Budget 124 Debt Service Budget 125 Section IV – Organizational Units Overview 127 Development of Unit Goals 129 DART Key Performance Indicators 133 Customer Care & Service Delivery 135 Business Solutions & Innovation 167 Workforce & Customer Safety 195 Growth/Regional Development 203 Workforce Leadership & Intergovernmental Relations 227 i FY 2018 Business Plan (09/26/2017) Section V – Reference Business Planning Development 231 Financial Policies 241 Sales Tax 249 Debt Program 251 Fares 255 Operational Information 267 DART’s Economic Environment 281 DART Facts 299 Glossary/Acronyms 303 ii FY 2018 Business Plan (09/26/2017) FY 2018 Business Plan Exhibit List Section Exhibit Number and Description Page Who We Are 1 - Board of Directors Listing and Photos 4-5 Who We Are 2 - DART Service Area Graphic 6 Who We Are 3 - DART's Executive Management 8 Who We Are 4 - Functional Organization Chart 10 Who We Are 5 - Ridership by Mode 11 Who We Are 6 - System Map 14 Financial Plan 7 - 5-Year Sources & Uses 24 Financial Plan 8 - Structural Budget Balance 26 Financial Plan 9 - Financial Plan 27 Financial Plan 10 - Distribution of Sources of Funds 28 Financial Plan 11 - Sales Tax Receipts 30 Financial Plan 12 - Operating Revenues 31 Financial Plan 13 - Fixed Route Average Fare 31 Financial Plan 14 - Anticipated Grant Funding 33 Financial Plan 15 - OPEX by Mode 37 Financial Plan 16 - 5-Year Modal Expense Comparison 38 Financial Plan 17 - 5-Year Modal Capital Expenditures 40 Financial Plan 18 - FY18 Capital / Non-Operating List 42-48 Financial Plan 19 - Debt Assumptions 50 Financial Plan 20 - Principal and Interest Payments 52 Financial Plan 21 - Projected Coverage Ratio Comparisons 53 Financial Plan 22 - Projected Coverage Ratio Comparison Graph 53 Financial Plan 23 - Interest Rate Assumptions 54 Financial Plan 24 - 5-Year Balance Sheet 55 Financial Plan 25 - Cashflows by Fund 60 Budget 26 - Customer Service Call Types 83 Budget 27 - Capital Non-Operating Program by Category 84 Budget 28 - D2 Map 85 Budget 29 - LRT Service Dates 86 Budget 30 - DLM 99 Budget 31 - Railroad Management Revenue 106 Budget 32 - Oil & Gas Lease Agreements 107 Budget 33 - Annual Budget 108 Budget 34 - Sources of Funds 109 Budget 35 - Breakdown of Sources of Funds 109 Budget 36 - Sales Tax Data - historical & projected 110 Budget 37 - Departmental Expense Comparison 113 Budget 38 - OPEX by Object Class Table 114 Budget 39 - OPEX by Object Class Pie Chart 115 iii FY 2018 Business Plan (09/26/2017) FY 2018 Business Plan Exhibit List Section Exhibit Number and Description Page Budget 40 - Budgeted Positions 116 Budget 41 - Benefits Expenses by Type - Table 117 Budget 42 - Benefits Budget by Component- Pie Chart 118 Budget 43 - Services Expenses by Type -Table 119 Budget 44- Services Budget by Component - Pie Chart 120 Budget 45 -Materials & Supplies Expenses by Type - Table 121 Budget 46- Materials & Supplies Budget by Component - Pie Chart 121 Budget 47 - Utilities & Communications Expense Comparison 122 Budget 48- Purchased Transportation Expenses by Type - Table 123 Budget 49-Purchased Transportation by Component - Pie Chart 123 Budget 50 - Capital & Non-Operating Project Expenditure Comparison 124 Budget 51 - Debt Service Expense Comparison 125 Org Units 52 - Strategic Alignment 129 Org Units 53 - Strategic Measurements 132 Org Units 54 - Scorecard of KPIs 133 Org Units 55 - Bus Scorecard 138 Org Units 56 - Bus Overview 141 Org Units 57 - Bus Ridership 142 Org Units 58 - Bus Cost Model 142 Org Units 59 - LRT Scorecard 146 Org Units 60 - LRT Overview 147 Org Units 61 - LRT Ridership 147 Org Units 62 - LRT Cost Model 148 Org Units 63 - Materials Mgmt. Scorecard 153 Org Units 64 - Paratransit Scorecard 159 Org Units 65 - Paratransit Overview 160 Org Units 66 - Paratransit Ridership 161 Org Units 67 - Paratransit Net Subsidy Comparison 165 Org Units 68 - Paratransit Subsidy per Passenger 165 Org Units 69 - Paratransit Cost Model 166 Org Units 70 - Financial Reporting KPIs 168 Org Units 71 - Payroll Processing KPIs 168 Org Units 72 - Accounts Payable Payments Processed 169 Org Units 73 - Accounts Payable On-Time Payments Record 170 Org Units 74 - Fare Media Purchases by Month - Chart 171 Org Units 75 - DLM Scorecard Revenue - TVM 173 Org Units 76 - Count Room Productivity 173 Org Units 77 - Fund Yields 175 iv FY 2018 Business Plan (09/26/2017) FY 2018 Business Plan Exhibit List Section Exhibit Number and Description Page Org Units 78 - Risk Mgmt. Graphs (STD, WC, Gen Liability) 177 Org Units 79 - It - Vision, Mission, Guiding Principles 178 Org Units 80 - Strategic Priorities 179 Org Units 81 - President's Goals 179 Org Units 82 - Major Projects/Programs 180-183 Org Units 83 - Functions and overview of the Team 185 Org Units 84 - Requisitions in Progress 192 Org Units 85 -
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