Chicago Transit Authority: Building on 70 Years of Service President’s 2017 Budget Recommendations Chicago, Illinois CTA FY17 Budget Chicago Transit Board and CTA President Chicago Transit Board Terry Peterson, Chairman Appointed by: Mayor, City of Chicago Ashish Sen, Vice Chairman Appointed by: Governor, State of Illinois Kevin Irvine Appointed by: Mayor, City of Chicago Rev. Johnny L. Miller Appointed by: Mayor, City of Chicago Arabel Alva Rosales Appointed by: Governor, State of Illinois Alejandro Silva Appointed by: Mayor, City of Chicago Andre Youngblood Appointed by: Governor, State of Illinois Chicago Transit Authority Dorval R. Carter Jr., President CTA FY17 Budget Table of Contents Letter from the President............................................................................................................................................... 1 CTA Organizational Chart............................................................................................................................................... 3 Executive Summary........................................................................................................................................................... 5 2016 Operating Budget Performance 2016 Operating Budget Performance Summary ..............................................................................................23 2016 Operating Budget Schedule.............................................................................................................................24 President’s 2017 Proposed Operating Budget President’s 2017 Proposed Operating Budget Summary ............................................................................31 President’s 2017 Proposed Operating Budget Schedule .............................................................................38 President’s 2018-2019 Proposed Operating Financial Plan President’s 2018-2019 Proposed Operating Financial Plan Summary ................................................41 President’s 2018-2019 Proposed Operating Financial Plan Schedule .................................................45 2017-2021 Capital Improvement Plan & Program Introduction ........................................................................................................................................................................47 Sources of Funds ...............................................................................................................................................................49 Uses of Funds......................................................................................................................................................................55 Capital Program Historical .Comparison…………………………………............................................................73 Competitive Grant Opportunties.............................................................................................................................77 Unfunded Capital Need…. ............................................................................................................................................81 Operating Budget Impact……………………………………………………………………………………………..…84 Capital Program Acronyms ........................................................................................................................................86 Appendices History of the Agency ..................................................................................................................................................89 Transit Facts.....................................................................................................................................................................93 System Map.......................................................................................................................................................................95 Operating Funding Summary ..................................................................................................................................97 Debt Administration ....................................................................................................................................................105 Annual Budget Process ...............................................................................................................................................125 Accounting Systems and Financial Controls....................................................................................................129 Financial Policy ...............................................................................................................................................................135 Economic Indicators ....................................................................................................................................................139 Operating Statistics.......................................................................................................................................................145 Performance Management........................................................................................................................................149 Comparative Performance Analysis ....................................................................................................................169 Climate Change Impact on the CTA ......................................................................................................................177 CTA Fare Structure .......................................................................................................................................................181 Comparative Fare Structure.....................................................................................................................................183 Acronyms and Glossary..............................................................................................................................................185 (THIS PAGE INTENTIONALLY LEFT BLANK) CTA FY17 Budget Letter from the President Dear CTA Customers: In 2017, the Chicago Transit Authority (CTA) will mark 70 years of service transporting customers to work, school and everywhere else they need to go in Chicago and the neighboring suburbs. Next year will also mark 125 years since rail transit service began operating in Chicago. Through all of that time, our primary mission has remained the same: Provide the Chicago region with on-time, affordable, convenient transportation that connects people, places and jobs. Though the core mission of public transit is providing bus and train rides, public transit also plays a vital -- and sometimes underappreciated -- role in generating economic growth and connecting communities to opportunity. Transit investment has proven to attract employers and residents to Chicago. With each major investment we make in transit, we are investing in our communities and in the people who live and work here. For 2017, I am pleased to propose a balanced operating budget of $1.524 billion. I am also proposing a five-year, $3.5 billion Capital Improvement Plan (CIP) for 2017-2021. Our operating budget freezes base fares for an 8th straight year and continues the expanded service we began in 2015 and 2016. We have been able to maintain fares by strategically pursuing additional efficiencies and cost savings, reducing ongoing maintenance needs by modernizing the fleet and pre-purchasing diesel fuel and electricity at historically low levels, while maximizing ways to grow revenue beyond the farebox to support operations and the 1.6 million bus and train rides we provide each day. CTA continues to face funding challenges to meet our ambitious modernization goals, including a lack of funding from the state for capital projects and sufficient reimbursements for the mandated free and reduced-fare rides we provide to eligible customers. However, our operating budget is balanced for the sixth straight year without diverting capital dollars critically needed for safe and efficient operations. What’s more, our capital budget preserves the historic level of transit investment being made under the leadership of Mayor Emanuel -- more than $5 billion of reinvestment and modernization of our bus and rail system that is building a world-class, 21st century transit system that will serve the Chicago region for generations to come. In 2017, we will continue to pursue our long-term priorities, which focus on improving service to our customers. We’re continuing to make extensive investments in our bus and rail system – including some of the largest station reconstruction projects in CTA history that are modernizing our transportation system, such as the Red-Purple Modernization project, a $2.1 billion investment to modernize and add capacity to the CTA’s busiest rail corridor. We also continue to enhance the overall customer experience by investing in public art at our rail stations. And we have also recently strengthened and updated our passenger code of conduct to make CTA more comfortable, safe, and pleasant for riders. Leveraging technology for customers also plays an important role in heightening the customer experience. These investments include the release of our popular Ventra fare payment app that recently exceeded one million downloads, the expansion of digital transit 1 CTA FY17 Budget Letter from the President tracker displays across our system and providing full 4G wireless communications in