The Full 2018 Operating and Capital Program and Budget Book

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The Full 2018 Operating and Capital Program and Budget Book OPERATING AND CAPITAL PROGRAM AND BUDGET 2018 metrarail.com UP-N o T ILLINOIS / WISCONSIN STATE LINE Kenosha Winthrop Harbor McHENRY Antioch NCS LAKE Zion METRA BOARD MD-N Lake Villa UP-NW Fox Lake OF DIRECTORS Harvard Ingleside Round Lake Beach Long Lake Washington St. Waukegan McHenry Round Lake (Grayslake) Grayslake Norman Carlson Prairie Crossing North Chicago Prairie Crossing N Chairman Great Lakes Woodstock Libertyville Lake County Lake Bluff LAKE Mundelein MICHIGAN Lake Forest Romayne C. Brown Crystal Lake Cary Lake Vice Chairman Pingree Rd. Vernon Hills Forest Fort Sheridan Prairie View Highwood Cook County Fox River Grove Buffalo Grove Highland Park Deerfield Ravinia Barrington Braeside Lake Cook Wheeling John Plante Rd. Glencoe Northbrook Hubbard Woods Treasurer KANE COOK Palatine Prospect Winnetka Heights N. Glenview Indian Hill Suburban Cook County Arlington Park Kenilworth MD-W Arlington Heights Glenview Wilmette Big Timber Central St. (Evanston) Mt. Prospect Golf Rodney S. Craig Elgin Cumberland Des Plaines Davis St. (Evanston) O'H Dee Road Morton Grove Main St. (Evanston) National St. are Trans Park Secretary (Elgin) Bartlett fer Edgebrook Rogers Park Ridge Hanover Park Schaumburg Roselle Edison Park Medinah Ro Forest Glen Suburban Cook County Itasca semon Norwood Park ood Dale t W Schiller Park Gladstone Park Mayfair Bensenville Jefferson Park Franklin Ravenswood Par Irving k k DU PAGE r Park a P Grayland River Grove Steven K. Messerli n Elmwood Park so Mont Clare n Mars Clybourn ve. Galewood Healy Ha d A UP-W o Director n o r t Elmhurst Franklin Park e Villa Park Mannheim est Chicago r t Berkeley CHICAGO k k r es W Lombard Grand/ W a Mayw Oa P Rive Fores Glen Ellyn Cicero Kane County Elburn Winfield College Wheaton d k o r o a La Fox P ve. Van Buren A Geneva Kedzie ergne Museum Campus/11th St. ose Bellw wyn r V r Cicero el d 18th St. La e M t Be rn Don A. De Graff Harlem te McCormick Place Riverside Hals Hollywood Wes 27th St. estern Springs ville W Director r 35th St./ Hinsdale Clarendon Hills k (Downers Grove) (Downers Grove) “Lou” Jones 47th St. r a ve. P 53rd St. Nape Route 59 Suburban Cook County Aurora A 55th-56th-57th St. ess Brookfield r ve. Summit 59th d Lisle A slan r I e ong 63rd ony Maw Stone St yn hor C Br h S k out Par La Grange Rd. S or Main St. Belmont Highlands s estmont view Wrightwood 75th Wind r W Ashburn 79th 79th St. est Hinsdale Brainerd Alexandra Holt Fai 83rd 83rd St. BNSF W Willow Springs Oak 91st St. Gresham 87th 87th St. Lawn 95th St. 91st St. 93rd St. Director 95th St. Chicago Ridge 99th St. 95th St. 103rd St. 103rd St. 107th St. 107th St. Chicago Worth 111th St. Washington Hghts. 111th St. (Pullman) WILL 115th St. Palos Heights 119th St. 115th St. (Kensington) . e e Lemont 123rd St. n St e e Av t Prairie k Ridg Av a Palos Park a t ullma ine d St O Vermont St. (Blue Island) c W. P hland Ra SS urr ewar slan B Romeoville I Ken Koehler 143rd St. As St 137th St. Hegewisch Robbins lue To S. (Late 2017) (Orland Park) B Bend Director Midlothian 144th St. (Riverdale) 153rd St. 147th St. (Ivanhoe) (Orland Park) Oak Forest (Sibley Blvd.) McHenry County Lockport Harvey Tinley Park Hazel Crest 179th St. Calumet New Lenox (Orland Park) Tinley Park/ Stephen Palmer HC 80th Ave. Homewood Hickory Creek Flossmoor Joliet Mokena-Front St. Director Olympia Fields RI 211th St. (Lincoln Hwy.) Suburban Cook County Laraway Road Matteson (New Lenox) Richton Park John P. Zediker ME University Park ILLINOIS / INDIANA STATE LINE Director Manhattan DuPage County SWS Vacant Director Will County OPERATING and CAPITAL PROGRAM and BUDGET 1 MESSAGE FROM THE CEO/EXECUTIVE DIRECTOR AND THE BOARD OF DIRECTORS DIFFICULT CHOICES Metra has an unsustainable economic model and faces the worst financial crisis in its 33-year history. In addition to a chronic lack of adequate funding for capital assets, such as rolling stock and infrastructure, Metra is now faced with decreased funding for operations. Why is Metra’s current situation so critical for the people of Because capital funding has been inadequate, Metra now has the northeast Illinois? Metra, together with the Chicago Transit oldest commuter fleet in the nation. Approximately 40 percent of Authority and Pace Suburban Bus, are the threads that hold the Metra’s assets are classified as in marginal or worn condition. Half economic fabric of northeast Illinois together. The region is highly of the 800 bridges in Metra’s system are 100 years old or older. dependent on public transportation. These assets, while safe, have exceeded their useful lives. Metra will always run a safe railroad, but continued use will result in Metra’s importance to the Chicago region cannot be higher operating costs and degraded on-time performance. understated. Metra provides about 300,000 passenger trips in northeast Illinois each weekday — safely, reliably and Public funding for operating costs, provided through a comfortably. Metra saves its riders time and money, enhances the regional transportation sales tax and a partial state match, environmental health of the region and fuels its economic engine. is falling short. Sales tax collections have fluctuated with Metra benefits even those who do not ride its trains. If Metra did economic conditions and have not met projections, even after not exist, 27 more expressway lanes would be needed during rush the tax was increased in 2008. In recent years the shift from hours to accommodate the extra vehicles and arterial roads would purchasing at brick-and-mortar stores to internet purchases has be clogged with traffic trying to reach those expressway lanes. also hurt tax collections. The public transportation fund, a match to sales tax which came from general appropriations from the Contrary to public perception that fares cover most of our costs, state budget, has been cut 10 percent in the most recent state the facts are just the opposite. Metra’s mandate, under the RTA budget. Collections from the RTA sales tax have had a 2 percent Act, requires it charge fares that cover approximately half of its surcharge imposed by the state. The ADA program is increasing operating costs. Metra is dependent on government funding, in cost, causing less and less money from sales taxes to be made primarily a sales tax levied in the six-county region, for the available to Metra, CTA and Pace. remainder of its operating costs and on federal and state funding for virtually all of its capital needs. Combining the annual capital Public funding for capital is also falling short. In past decades, and operating budgets, fares presently cover about one-third of the state recognized the need to fund capital improvements for Metra’s yearly costs. In fact, if adequate operating and capital public transportation and did so regularly. In recent years, the lack funding were provided, fares would cover only one-fifth of Metra’s of a state bond program for capital investment has had impacts on yearly costs. funding for public transportation. Over the last several years, public funding has not kept up with Metra understands it cannot continue to ask its customers to pay needs. Metra has been and is now receiving about a quarter of the higher fares in the absence of adequate public funding. capital funding needed annually to achieve and maintain a state of good repair on its existing system — never mind expanding or The current situation is unsustainable, and threatens enhancing its system to address regional changes and growth. As the future viability of the important service Metra a result, Metra has fallen behind on its maintenance investments provides. Funding levels will need to change to ensure and will continue to fall even further behind. Metra can continue to provide the service its riders depend upon, or else that service will have to be cut. Railroads are very capital-intensive, requiring substantial annual investment to maintain rolling stock and infrastructure. Railroads After reading this budget and program document, we hope own and maintain their own rights-of-way and track structure, that you clearly understand our overriding message: we unlike bus operations, which use streets that are owned and cannot continue as we are. We either need to fund our public maintained by the public. Metra’s capital assets are diverse transportation properly or be willing to watch it continue to and extensive: locomotives, passenger cars, track signal and degrade, including reductions in service. communications equipment, yard and maintenance facilities, station buildings, platforms, parking lots and headquarters. Each With the proper amount of sustained public investment, we can day, the delivery of safe, reliable, efficient train service depends create a system with a long and bright future. It is clearly in the on these assets; though many are never seen by riders. Constant interest of the citizens of northeast Illinois for Metra to do so. maintenance, rehabilitation and replacement, and significant funding, are required to keep Metra’s facilities and equipment in DONALD A. ORSENO - CEO/Executive Director working order. JAMES M. DERWINSKI - Incoming CEO/Executive Director NORMAN CARLSON - Chairman of the Board Metra must make significant investment in its people in addition to its capital assets. Long-tenured, well-trained employees assure the safe transport of Metra’s most precious asset: its riders. Metra must invest in people and compensate them on a level that will attract and retain them. Metra competes for talent among railroads, not government agencies. 2 OPERATING and CAPITAL PROGRAM and BUDGET TABLE OF CONTENTS 1 Difficult Choices 3 2018 Budget: A Perfect Storm 6 System Overview 7 Funding Overview 8 Ridership 9 Fares 10 Service Changes 11 Organization 16 Oversight 17 Other Major Initiatives 19 Capital Program 20 Non-Capital Programs 22 2018 Budget Overview 25 Appendix OPERATING and CAPITAL PROGRAM and BUDGET 3 2018 BUDGET A PERFECT STORM Metra is facing a $45 million budget gap in 2018.
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