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Two-Year Financial Plan and Five-Year Capital Program Operating Budget, Two-Year Financial Plan and Five-Year Capital Program Department of Finance & Performance Management April 2013 Department of Finance and Performance Management 0 March 2014 ii RTA 2014 Operating Budget, Two-Year Financial Plan and Five-Year Capital Program RTA Board of Directors Chairman John V. Frega Sarah Pang John S. Gates, Jr., Appointing Authority: Appointing Authority: Appointing Authority: Suburban Cook City of Chicago RTA Board of Directors County Anthony K. Anderson Phil Fuentes J.D. Ross Appointing Authority: Appointing Authority: Appointing Authority: City of Chicago City of Chicago Will County James Buchanan Al Jourdan Donald L. Totten Appointing Authority: Appointing Authority: Appointing Authority: City of Chicago McHenry County Suburban Cook County William R. Coulson Michael Lewis Douglas M. Troiani Appointing Authority: Appointing Authority: Appointing Authority: Suburban Cook Suburban Cook Suburban Cook County County County Donald DeWitte Dwight A. Magalis Joseph G. Costello Appointing Authority: Appointing Authority: Executive Director Kane County Lake County Patrick J. Durante Christopher C. Melvin, Jr. Appointing Authority: Appointing Authority: DuPage County City of Chicago RTA 2014 Operating Budget, Two-Year Financial Plan and Five-Year Capital Program iii Letter from the Executive Director - December 2013 2013 marks the 30-year anniversary of the RTA as the transit planning, funding, and oversight agency for North- eastern Illinois. In that time, despite periods of economic uncertainty, we have worked with the Service Boards to develop balanced budgets each year resulting in the provision of uninterrupted transit services for the region’s customers. In the last four years, the region’s economy has improved steadily. Sales tax results have been higher than the prior year’s results by over 4% in 2010, 2011, and 2012 as the region emerged from the economic downturn following the 2008 fi nancial crisis; however, sales tax revenue did not surpass 2008 levels until 2012. Projec- tions for 2014 and 2015 are somewhat stronger than 2013, with an increasing national GDP, recovering housing market, and a steady increase in job growth. Looking ahead, the next fi ve years present both opportunities and challenges for our transit system. As ridership continues to grow, we want to capitalize on that momentum and make sure that our system continues to be safe, reliable, affordable, and meets the mobility needs of the region. However, operating budgets continue to be tight. The RTA region relies on sales tax revenue to keep our system running. In an attempt to ensure the region receives all sales tax it is due, the RTA fi led a lawsuit against several municipalities outside of the RTA region and corporations in August 2011, and again in early 2013, for entering into sales tax rebate agreements to impermissibly avoid paying regional sales tax. In November, the Illinois Su- preme Court rendered a favorable and unanimous opinion in a related case in which the RTA was named, dealing a signifi cant blow to businesses that are improperly diverting sales tax revenue from the RTA region. Additionally, our system is aging and requires signifi cant investment in capital infrastructure to achieve a State of Good Repair. Funding from the state and federal governments is limited and less than what is required for annual investments in system renewal. We are pleased that the 2014 budget includes the issuance of $100 million in RTA bonds that will go toward the renewal and rehabilitation of vehicles, track and structure, and transit facilities. With this new State of Good Repair bond program, the RTA can help address the capital funding shortfall. In 2013, the RTA undertook a study on the equitable allocation of public funding to the Service Boards. The study serves as a catalyst for regional discussion on proposals for change in both the funding and governance structure of the transportation system and is available on our website at www.rtachicago.com. We look forward to engaging in the discussion and seeking solutions that lead to improved strategic leadership of the region’s investment in public transportation. Sincerely, Joseph G. Costello Executive Director, Regional Transportation Authority iv RTA 2014 Operating Budget, Two-Year Financial Plan and Five-Year Capital Program Table of Contents 1 Introduction 6 Pace Suburban Service Guide............................................................................... 3 Overview...................................................................... 97 Regional Economic Outlook........................................... 4 Service Characteristics............................................... 97 Strategic Plan, Vision Statement, and Goals................ 4 Budget and Financial Plan......................................... 99 Critical Developments and Key Budget Issues............. 6 Statutory Compliance................................................. 104 Governance....................................................................... 8 2013 Budget vs. 2013 Estimate................................ 105 Budget Process............................................................... 10 Fare Structure............................................................. 105 Financial Policies............................................................ 13 Organizational Structure............................................ 106 The GFOA Award.............................................................. 16 7 Pace ADA Paratransit Service 2 Regional Summary Overview....................................................................... 111 Overview........................................................................... 19 Service Characteristics................................................ 111 Service Characteristics................................................... 19 Budget and Financial Plan.......................................... 113 Budget and Financial Plan............................................. 20 Statutory Compliance.................................................. 117 Five-Year Capital Program.............................................. 24 2013 Budget vs. 2013 Estimate................................ 118 Sources and Uses of Funds............................................ 24 Fare Structure.............................................................. 119 RTA System Map............................................................. 26 3 RTA 8 Performance Measures RTA Operating Plan Goals & Performance Measures Budget and Financial Plan............................................. 29 Background................................................................. 123 2013 Budget vs. 2013 Estimate................................... 37 Vision........................................................................... 123 Goals and Objectives.................................................. 123 Agency Operating Plan Regional and Sub-Regional Performance Budget and Financial Plan............................................. 39 Measures..................................................................... 124 2013 Budget vs. 2013 Estimate................................... 44 RTA Performance Measures....................................... 129 Organization.................................................................... 46 Agency Initiatives............................................................ 48 9 Capital Reference RTA Bonds........................................................................ 55 Regional Overview........................................................ 137 Fund Accounting.............................................................. 58 Source of Funds........................................................... 137 Basis of Budgeting.......................................................... 62 Use of Funds................................................................ 139 CTA Overview................................................................ 140 Metra Overview............................................................ 141 4 CTA Pace Overview.............................................................. 142 Pace Regional ADA Paratransit Overview................... 142 Overview........................................................................... 67 Ten-Year Capital Plan.................................................. 147 Service Characteristics................................................... 67 Impact of Capital Expenditures.................................. 148 Budget and Financial Plan.............................................. 70 Statutory Compliance...................................................... 75 2013 Budget vs. 2013 Estimate.................................... 76 Appendices Fare Structure................................................................. 77 10 Organizational Structure................................................. 77 RTA Ordinance No. 2013-91....................................... 155 Public Hearing Overview.............................................. 180 5 Metra Supplemental Data National Economic Projections................................... 183 Overview.......................................................................... 83 RTA Region.................................................................... 183 Service Characteristics................................................... 83 Budget and Financial Plan.............................................. 85 Glossary.......................................................................
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