Finance, Administration and Oversight Committee Information Item IV-B January 14, 2009 FY2010 Monthly Financial Report (November 2009) Washington Metropolitan Area Transit Authority Fiscal 2010 Financials Monthly Financial Report November 2009 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY MONTHLY FINANCIAL REPORT FY2010 November 2009 _________________________________________________________________ REPORT SECTIONS Operating Budget • Ridership • Revenue • Expense Capital Finances • Revenues • Costs • Projects Outstanding Debt Appendix Operating budget variances, by mode Ridership analysis Capital expenditures, by project Capital budget and expenditures, Metro Matters by ARRA Jurisdictional balances on account Transit Infrastructure Investment Fund Grant Activity (November 2009) Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 OPERATING BUDGET Summary Total operating revenue in November was $54.3 million, $4.9 million or 8 percent less than budget. The greatest shortfall for the month occurred in passenger and parking revenues which totaled $47.9 million, $4.1 million or 8 percent below the budgeted total of $52.0 million. Non-passenger revenues for the month were $6.4 million, $0.9 million less than the budgeted amount of $7.3 million. Following recent trends, in November rail passenger revenues totaled $36.3 million, $2.7 million or 7 percent below the budgeted amount of $39.0 million. Bus passenger revenue was $7.8 million, $1.2 million or 13 percent below the budget amount of $9 million. MetroAccess revenue for November was $0.3 million, 10 percent less than budgeted. Total expenses for the month of $113.3 million were unfavorable by $2.1 million. Jurisdictional subsidy for the month was unfavorable by $7 million or 13 percent, and through the first five months of Fiscal 2010, jurisdictional subsidy of $267.8 million was unfavorable by $29.6 million or 12 percent. Nov 2008 Nov 2009 Budget ($ Millions) Actual Actual Budget Variance November Budget Variance Variance Revenue $54.7 $54.3 $59.2 ($4.9) -8% Expense $101.9 $113.3 $111.2 ($2.1) -2% Subsidy $47.2 $59.0 $52.0 ($7.0) -13% Cost Recovery 54% 48% 53% Year to Date Budget Variance Variance Revenue $316.0 $307.0 $329.2 ($22.2) -7% Expense $545.2 $574.8 $567.4 ($7.4) -1% Subsidy $229.2 $267.8 $238.2 ($29.6) -12% Cost Recovery 58% 53% 58% Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 Ridership Average weekday ridership in November was 709,321 trips, a decrease of 1 percent below the same period last year. Rail ridership declined in every weekday time- period this month, with the largest decline, -1.73 percent, in the evening. However, year-to-year comparisons of growth rates show some improvements, with November’s decline the lowest since the beginning of the fiscal year. Average Saturday rail ridership increased almost 2 percent over last year, while average Sunday ridership of 191,272 trips is almost the same as last year. Through the first five months of FY2010, total rail ridership was 91.6 million trips, 1.9 million trips below the same period last year and 5.3 million trips below budget. Changes in Average Weekday and Average Weekend Rail Ridership FY2010 Avg. AM Peak Avg. Midday Avg. PM Peak Avg. Evening Avg. Weekday Avg. Sat. Avg. Sun. Growth Rate Compared to FY09 July -5.14% -1.29% -4.03% -4.02% -3.82% 7.30% 4.91% August -3.73% -0.69% -1.95% -3.83% -2.49% -6.65% -8.56% September -4.84% 0.80% -3.27% -1.33% -2.83% 13.19% -4.89% October -3.45% 1.65% -1.78% 0.51% -1.42% -5.96% 2.84% November -1.08% -0.78% -1.24% -1.73% -1.15% 1.72% 0.31% Average Metrobus ridership in November was 399,143 trips, a decrease of 9 percent below last year and 12 percent below budget. Bus ridership fell in all periods, with average Saturday and Sunday trips decreasing by 12 and 6 percent, respectively. For the month, total bus trips of 9.5 million trips were almost 700,000 trips below the same month last year, even though November had one extra weekday when compared with last year. Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 Nov 2008 Nov 2009 Above/(Below) Actual Actual Budget Last Year Budget Trips Average Weekday Ridership Growth Rate Metrorail 717,571 709,321 742,333 -1% -4% Metrobus 436,756 399,143 453,134 -9% -12% MetroAccess 6,542 7,727 7,589 18% 2% System Total 1,160,869 1,116,191 1,203,057 -4% -7% Trips (Thousands) Year to Date Ridership Growth Rate Metrorail 93,519 91,637 96,986 -2% -6% Metrobus 58,290 54,851 60,596 -6% -9% MetroAccess 834 993 951 19% 4% System Total 152,643 147,482 158,533 -3% -7% Revenues Rail passenger revenue of $36.3 million was $2.7 million lower than expected, contributing to an average fare of $2.22, five cents below the budgeted average fare of $2.27. The year-to-date rail average fare is $2.24, $0.04 below the budgeted $2.28. On Metrobus, the passenger revenue shortfall of $1.2 million translated to a shortfall in the average fare of $0.01. Expenses Authority wide operating expenses are over budget by $2.1 million for the month of November and ($7.4 million) over budget year to date. YTD includes work associated with the red line accident. Total personnel expenses are over budget by ($2.4 million) or -3% for the month. Total labor is ($1.6 million) over budget in November. Straight time salary and wages are over budget by ($567,000) for the month. The continuing accrual for the labor arbitration and lighter than anticipated capitalization of engineering expenses, combine for the variance. Overtime for the month is over budget by $1 million; almost evenly split in bus and rail. The majority of the overtime is associated with coverage for vacant positions or absenteeism coverage. Fringe benefits are ($789,000) over budget for the month. This is due to Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 timing issues in the health care payments and an unbudgeted charge for DC workers compensation special assessment of $300,000 per month. Non-personnel expenses are under budget by $318,000 for the month. Services and Materials and Supplies are over budget, but this is offset by savings in fuel and power. Services are over budget by $461,000 for the month, with the ADA variance of ($848,000) being the primary driver. Materials and supplies are over budget by ($1.5 million) for the month. Energy and utilities are under budget by $2.5 million in November due to favorable rates/pricing of $764,000 in diesel fuel and the remainder due to lighter usage and better electricity rates. Casualty and liability is over budget by ($225,000) due to higher insurance premium payments. Leases and miscellaneous items are over budget by ($131,000) due to a $200,000 charge for settling a rail vendor dispute. CAPITAL FINANCES Revenues Revenues received to date for the FY2010 capital budget total $387 million. The State and Local Contributions were received, totaling $78 million. The FY2010 debt balance is $59 million. Note: That total revenue increased by $61 million to include Security Grants. Federal grants are $8 million higher and miscellaneous funds are $7 million lower than anticipated. Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 Costs The capital budget for FY2010 is $825 million. Capital spending through November is as follows: $445 million has been obligated, and $137 million has been expended. Note, the FY2010 approved budget was increased by $95 million, $34 million due to the annual roll-over of unexpended budget and $61 million in the Security Program. The appendix includes budget and spending data for each capital project. Capital Revenues FY2010 (dollars in millions) Received To be Metro Matters Program Budget to Date Received Federal Grants $ 282 $ 42 $ 240 State & Local Contributions 188 78 110 Miscellaneous 33 2 31 Debt Issuance 59 59 - Subtotal $ 562 $ 181 $ 381 Security Grants 61 6 55 Subtotal $ 623 $ 187 $ 436 ARRA Program Federal Grants $ 202 $ 200 $ 2 Total $ 825 $ 387 $ 438 Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 Capital Spending FY2010 Year to Date (dollars in millions) Metro Matters Program Budget Obligated Expended Unexpended Infrastructure Renewal Program $ 461 $ 265 $ 99 $ 362 Eight-Car Train Initiative 39 26 10 29 Bus Improvement Initiative 10 3 1 9 Program Management 31 25 17 14 Borrowing Expense 21 9 - 21 Subtotal $ 562 $ 328 $ 127 $ 435 Security Program 61 - - 61 Sub-Total $ 623 $ 328 $ 127 $ 496 ARRA Program Vehicles and Vehicle Parts $ 40 $ 39 $ 4 $ 36 Maintenance Facilities 62 23 2 60 Passenger Facilities 20 17 - 20 Safety and Security 12 9 3 9 Maintenance and Repair Equipment 30 7 - 30 Operations System 26 20 - 26 Information Technology 10 2 - 10 Miscellaneous 2 - - 2 Subtotal $ 202 $ 117 $ 10 $ 192 Total $ 825 $ 445 $ 137 $ 688 Washington Metropolitan Area Transit Authority November 2009 Monthly Financial Report -- FY2010 PROJECTS MetroAccess Van Procurement Funding for eighty (80) vehicles has been allocated under the American Recovery and Reinvestment Act of 2009 (ARRA). Contracts were awarded on July 16, 2009. First Article Inspection of the pilot vehicle was performed on October 7, 2009. Production of the remaining 79 vehicles commenced November 9, 2009. Deliveries are on schedule to begin late-December 2009 and continue through the end of January 2010. Bus Procurement As of November 17, Metrobus has received 163 buses in its procurement of 203 diesel-electric hybrid buses, 135 of which are in revenue service.