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2017 Annual Budget Report ROCK REGION METROPOLITAN TRANSIT AUTHORITY

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2017 Annual Budget Report ROCK REGION METROPOLITAN TRANSIT AUTHORITY 2017 Annual Budget Report ROCK REGION METROPOLITAN TRANSIT AUTHORITY 2017 Annual Budget Report Jarod Varner Executive Director Prepared by: Department of Finance and Administration Wanda Crawford, Chief Financial Officer Justin Avery, Accounting Manager TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................. 1 FOREWORD ............................................................................................................................................... 3 ORGANIZATION OF BUDGET DOCUMENT................................................................................................. 3 EXECUTIVE SUMMARY .............................................................................................................................. 4 SECTION 1: INTRODUCTION AND OVERVIEW ......................................................................................7 METRO AT A GLANCE ................................................................................................................................ 8 DESCRIPTION OF SERVICES AND FLEET ..................................................................................................... 8 BOARD OF DIRECTORS ............................................................................................................................ 10 MOVE CENTRAL ARKANSAS STRATEGIC PLAN ........................................................................................ 11 MISSION, AGENCY GOALS, AND ACCOMPLISHMENTS ........................................................................... 14 ORGANIZATION CHART AND PERSONNEL .............................................................................................. 17 ANNUAL SERVICE ENHANCEMENT REVIEW ............................................................................................ 19 FINANCIAL POLICIES ................................................................................................................................ 22 SECTION 2: FUNCTIONAL FINANCIAL PLAN ........................................................................................ 25 FINANCIAL STRUCTURE ........................................................................................................................... 26 OPERATING BUDGET PROCESS ............................................................................................................... 27 BUDGET CALENDAR ................................................................................................................................ 29 OPERATING BUDGET SUMMARY ............................................................................................................ 30 SIGNIFICANT OPERATING BUDGETARY ITEMS AND TRENDS .................................................................. 30 METRO LOCAL AND METRO LINKS 2017 OPERATING BUDGET .............................................................. 34 METRO LINKS 2017 OPERATING BUDGET ............................................................................................... 38 METRO STREETCAR 2017 OPERATING BUDGET ...................................................................................... 41 SOURCES REVENUE ................................................................................................................................. 42 TABLE OF CONTENTS USES OF REVENUE ................................................................................................................................... 45 FIVE YEAR OPERATING FORECAST .......................................................................................................... 48 CAPITAL BUDGET SUMMARY .................................................................................................................. 49 CAPITAL BUDGET PROCESS ..................................................................................................................... 50 SIGNIFICANT CAPITAL BUDGETARY ITEMS AND TRENDS ....................................................................... 50 2017 CAPITAL BUDGET ............................................................................................................................ 53 MAJOR CAPITAL PROJECTS AND DESCRIPTIONS ..................................................................................... 55 FUND BALANCE ....................................................................................................................................... 67 SECTION 3: DEPARTMENT INFORMATION ......................................................................................... 70 DEPARTMENT OVERVIEW ....................................................................................................................... 71 EXECUTIVE DEPARTMENT ....................................................................................................................... 72 FINANCE AND ADMINISTRATION DEPARTMENT .................................................................................... 73 MAINTENANCE DEPARTMENT ................................................................................................................ 75 OPERATIONS AND PLANNING DEPARTMENT ......................................................................................... 77 PUBLIC ENGAGEMENT DEPARTMENT ..................................................................................................... 79 SECTION 4: GLOSSARY, SUPPLEMENTAL INFORMATION, AND APPENDICES ....................................... 81 BUDGET GLOSSARY ................................................................................................................................. 82 SUPPLEMENTAL INFORMATION ............................................................................................................. 85 SYSTEM MAP ........................................................................................................................... APPENDIX A FLEET REPLACEMENT PLAN ..................................................................................................... APPENDIX B FOREWORD The adoptive budget document contains a variety of information regarding Rock Region Metropolitan Transit Authority (METRO). To assist the reader in locating certain subjects of interest, the organization of the budget document is described below. The reader may also refer to the Table of Contents on pages 1 – 3 for further guidance. An online version of the 2017 budget document can be found on METRO’s website at: www.rrmetro.org/about/learn-more/facts If you have any comments or questions concerning METRO’s annual budget or have any suggestions for improvement, please contact the Finance and Administration Department at (501) 375-6717. Thank you for your interest in METRO. ORGANIZATION OF BUDGET DOCUMENT Throughout the document, the reader will notice references to agency goals (i.e. 2017 AGENCY GOAL #1). It is METRO’s intent to show the reader that each decision made in creating the budget follows the agency’s strategic goals and vision. The following information should assist the reader in finding the most important information about METRO’s budget: Section 1 (Introduction and Overview) contains historical background information on METRO and summarizes the jurisdictions served along with a description of fleet and services provided. Pictures of METRO’s Board of Directors are also included. METRO’s strategic initiative MOVE Central Arkansas, its mission, accomplishments, organizational goals, and an organization-wide chart are provided in this section. The reader will also find a summary of our annual service enhancements and financial policies in this section. Section 2 (Functional Financial Plan) provides an overview of METRO’s financial structure. Summaries of the operating and capital budget and the processes and policies that apply to the budget are also contained in this section. Significant budgetary items and trends for both budgets are discussed, as well as METRO’s sources and uses of revenue. This section also includes the approved operating and capital budgets, fund balances, and the descriptions of major capital projects. A Five (5) Year Operating Forecast is also included in this section. Section 3 (Department Information) is organized by department. Each department section includes a description, functional responsibilities, and the organizational chart. This section also includes each department’s goals and objectives. Section 4 (Glossary, Supplemental Information, and Appendices) contains a budget glossary, a map of METRO’s service area, a summary of the Fleet Replacement Plan, and supplemental information about the communities METRO serves. ROCK REGION METROPOLITAN TRANSIT AUTHORITY 3 2017 ANNUAL BUDGET REPORT EXECUTIVE SUMMARY As the Executive Director of Rock Region Metropolitan Transit Authority (METRO), it is my pleasure to present the 2017 Annual Budget Report. The budget report represents the culmination of a comprehensive process and is rooted in our commitment to improving public transit in central Arkansas for the good of the communities we serve. The funding, goals, and organizational information outlined in this report will allow METRO to provide dependable, safe, accessible, and economical public transportation services for the residents of and visitors to central Arkansas. The 2017 Annual Budget Report aligns with METRO’s agency goals: Pursuing the implementation of the MOVE Central Arkansas strategic plan recommendations,
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