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[Cover Page] CTA: BUILDING a 21ST CENTURY TRANSIT SYSTEM President’S 2016 Budget Recommendations

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[Cover Page] CTA: BUILDING a 21ST CENTURY TRANSIT SYSTEM President’S 2016 Budget Recommendations [Cover Page] CTA: BUILDING A 21ST CENTURY TRANSIT SYSTEM President’s 2016 Budget Recommendations [Transit Board page] Chicago Transit Board Terry Peterson, Chairman Appointed by: Mayor, City of Chicago Ashish Sen, Vice Chairman Appointed by: Governor, State of Illinois Arabel Alva Rosales Appointed by: Governor, State of Illinois Andre Youngblood Appointed by: Governor, State of Illinois Rev. Charles E. Robinson Appointed by: Mayor, City of Chicago Alejandro Silva Appointed by: Mayor, City of Chicago Kevin Irvine Appointed by: Mayor, City of Chicago Dorval R. Carter Jr., President CTA FY16 Budget Table of Contents Letter from the President............................................................................................................................................... 1 CTA Organizational Chart............................................................................................................................................... 3 Executive Summary........................................................................................................................................................... 3 2015 Operating Budget Performance 2015 Operating Budget Performance Summary ..............................................................................................21 2015 Operating Budget Schedule.............................................................................................................................27 President’s 2016 Proposed Operating Budget President’s 2016 Proposed Operating Budget Summary ............................................................................28 President’s 2016 Proposed Operating Budget Schedule .............................................................................33 President’s 2017-2018 Proposed Operating Financial Plan President’s 2017-2018 Proposed Operating Financial Plan Summary ................................................35 President’s 2017-2018 Proposed Operating Financial Plan Schedule .................................................38 2016-2020 Capital Improvement Plan & Program Introduction ........................................................................................................................................................................39 Uses of Funds ......................................................................................................................................................................49 Sources of Funds ...............................................................................................................................................................62 Competitive Grant Opportunities.............................................................................................................................66 Unfunded Capital Need ..................................................................................................................................................68 Operating Budget Impact .............................................................................................................................................71 Capital Program Acronyms .........................................................................................................................................72 Appendices History of the Agency ....................................................................................................................................................73 Transit Facts.......................................................................................................................................................................76 System Map.........................................................................................................................................................................77 Operating Funding Summary ....................................................................................................................................77 Debt Administration ......................................................................................................................................................84 Annual Budget Process ...............................................................................................................................................101 Accounting Systems and Financial Controls....................................................................................................103 Financial Policy ...............................................................................................................................................................106 Economic Indicators ....................................................................................................................................................108 Operating Statistics.......................................................................................................................................................114 Performance Management........................................................................................................................................116 Comparative Performance Analysis ....................................................................................................................131 Climate Change Impact on the CTA ......................................................................................................................136 CTA Fare Structure .......................................................................................................................................................138 Comparative Fare Structure.....................................................................................................................................140 Acronyms and Glossary..............................................................................................................................................142 [Printed page 1] Letter from the President Dear CTA Customers: Earlier this year, I was honored to receive a phone call from Mayor Rahm Emanuel, asking me to return to Chicago to head the CTA. I was working at the time as Acting Chief of Staff to U.S. Department of Transportation Secretary Anthony Foxx, where I was involved with all modes of transportation, including roads, aviation, freight and passenger rail, pipelines and more. But the opportunity to return to Chicago to work on one of its most critical assets— public transportation—was impossible to resist. In fact, this is my third stint at CTA, where I began 31 years ago as a staff attorney. In that time, I’ve held a number of positions at the local and federal level in transportation. All of these experiences have prepared me to take on the role of CTA President and to lead the nation’s second-largest transit agency, which provides more than 1.6 million rides each day. I thank my predecessor, Forrest Claypool, CTA Board Chairman Terry Peterson and the CTA Board for their efforts to put this agency on sound financial footing and their hard work to carry out Mayor Emanuel’s vision to modernize and reinvest in the CTA, creating a world-class, 21st century transit system. And I’m committed to building on the sturdy foundation to solidify CTA’s position as a transit leader for years to come by closely monitoring costs and seeking efficiencies where it makes sense. As we contemplate 2016, I am committed to preserving fiscal stability while continuing to provide affordable, reliable transportation to customers. That’s why our 2016 operating budget of $1,475.2 million is balanced without spending capital dollars on operations – the fifth straight year for CTA. Very importantly, this budget is balanced without fare increases or service cuts, preserving affordability and service for our passengers, while continuing to find efficiencies and cutting 100 positions from the budget. The 2016 budget is based on 2015 state funding levels, in the absence of the passage of a state 2016 budget as of October 2015. Throughout 2015, we’ve continued to have productive conversations with lawmakers about the importance of protecting transit funding, recognizing that access to good transit means access to jobs, education and economic growth for our region. The 2016 budget also continues the $5 billion of transit modernization begun under Mayor Emanuel since he took office in 2011. We continue the transformational reconstruction of major rail stations including 95th Street and Wilson on the Red Line, the CTA’s busiest line, as well as modernization of the CTA’s busy Blue Line O’Hare branch and portions of the Purple Line Express and Brown Line as rail ridership continues to grow. We also continue the extensive planning work necessary to pursue a complete rebuild of the Red and Purple Lines north of Belmont and to extend the Red Line south from its southern endpoint at 95th Street to 130th Street. For bus customers, we’ve worked with the Chicago Department of Transportation on the completion by the end of 2015 on transformative service projects like Loop Link, which will improve bus speeds and the pedestrian environment in the Loop; and restoring express bus service on two of our busiest three bus routes, to increase bus speeds and improve service to our customers – the start of my efforts to improve the customer experience for bus riders. Investment in technology continues, with the rollout of 4G wireless service in our entire subway system by the end of 2015; the launch of the Ventra app, which
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