F Y 2015 BUSINESS PLAN DALLAS AREA RAPID TRANSIT (Including FY 2015 Annual Budget and Twenty-Year Financial Plan) We’ve Arrived! DFW Airport Station Front and Back Cover | We’ve arrived! Pulling into DFW Airport in August 2014. DART Current and Future Services DART Current and Future Services to 2016 A-Train to Denton (operated by DCTA) NW PLANO PARK & RIDE PLANO PARKER ROAD JACK HATCHELL TRANSIT CTR. DOWNTOWN PLANO Presiden t G e sh Turnpike orge Bu BUSH TURNPIKE NORTH CARROLLTON/FRANKFORD Dallas North Tollway GALATYN PARK TRINITY MILLS RICHARDSON ADDISON ARAPAHO CENTER DOWNTOWN CARROLLTON ADDISON TRANSIT CTR. CARROLLTON SPRING VALLEY FARMERS BRANCH DOWNTOWN FARMERS BRANCH GARLAND GARLAND LBJ/CENTRAL DOWNTOWN DFW ROWLETT AIRPORT FOREST LANE FOREST/JUPITER Open 2014 ROYAL LANE LBJ/SKILLMAN DFW BELT LINE ROWLETT WALNUT LAKE HIGHLANDS WALNUT HILL/DENTON HILL IRVING CONVENTION CENTER Lake Ray PARK LANE Hubbard NORTH LAKE LAS COLINAS S. GARLAND COLLEGE URBAN CENTER TRANSIT CTR. UNIVERSITY WHITE ROCK BACHMAN LOVERS UNIVERSITY OF DALLAS PARK LANE LAKE RAY LOVE HUBBARD BURBANK HIGHLAND TRANSIT CTR. PARK White MOCKINGBIRD Rock INWOOD/LOVE FIELD Lake IRVING SOUTHWESTERN MEDICAL DISTRICT/ PARKLAND DALLAS To Fort Worth CENTREPORT/ WEST IRVING DOWNTOWN IRVING/ MEDICAL/ MARKET CENTER DFW AIRPORT HERITAGE CROSSING MARKET CENTER CITYPLACE/UPTOWN DEEP ELLUM PEARL/ARTS DISTRICT VICTORY ST. PAUL BAYLOR UNIVERSITY MEDICAL CENTER AKARD WEST END FAIR PARK UNION STATION MLK, JR. Tr r in it y Rive CONVENTION CENTER LAWNVIEW CEDARS HATCHER COCKRELL HILL TRE to Fort Worth 8TH & CORINTH DALLAS ZOO LAKE JUNE TYLER/VERNON MORRELL BELL HAMPTON ILLINOIS RICHLAND HILLS WESTMORELAND BUCKNER KIEST FORT WORTH ITC VA MEDICAL CENTER T&P STATION FORT WORTH RED BIRD LEDBETTER TRANSIT CTR. CAMP WISDOM Downtown Dallas UNT DALLAS VICTORY GLENN DEEP HEIGHTS Rail System Legend ELLUM GLENN HEIGHTS PARK & RIDE WEST TRANSFER PEARL/ARTS DISTRICT Currently Operating ST. PAUL DART Rail Red Line WEST END DART Rail Blue Line AKARD EAST TRANSFER DART Rail Green Line ROSA PARKS PLAZA DART Rail Orange Line DART Rail Orange Line (Selected Weekday Trips Rush Hour Only) UNION STATION CONVENTION Trinity Railway Express (TRE) CENTER DCTA A-train Under Design/Construction DART Rail Blue Line Extension to UNT Dallas opens 2016. How to Use This Book What’s in this Book This book contains the Business Plan for Fiscal Year 2015 (FY 2015 – which ends September 30, 2015) for Dallas Area Rapid Transit (DART or the Agency). The Business Plan provides the DART Board of Directors, customers, taxpayers, elected officials, and other stakeholder groups of our region with a comprehensive summary of the Agency's plans and commitments to improve regional mobility, enhance the quality of life, and stimulate economic development. This document consolidates the key elements of the FY 2015 Annual Budget, the FY 2015 Twenty- Year Financial Plan, the Transit System Plan, and the Agency's Strategic Plan. A brief summary of the information contained in the various sections follows. The formal Letter of Transmittal summarizes priorities and issues for the upcoming year. The section titled Who We Are should help those not familiar with DART to understand the basis from which the Agency operates. This section also contains an organization chart along functional lines. The Twenty-Year Financial Plan represents a robust long-term projection of DART operating revenues, funding, operating expenses, capital expenditures, and other financial information. The Plan validates the affordability of system “If you read only one expansion and maintenance commitments, operating section, read the requirements, and debt repayment. Approval of the transmittal letter” Plan requires an affirmative vote of two-thirds of the appointed and qualified members of the DART Board. The Annual Budget requires a majority vote and corresponds to the first year of the Plan. The Annual Budget enumerates the FY 2015 amounts for operating expenses, capital and non-operating costs, and debt service – and describes the underlying bases, issues, and factors. The Organizational Units section contains modal key performance indicators, as well as the goals and budget detail by organizational unit. Finally, the Reference section contains supporting information including the process employed to develop the Twenty-Year Financial Plan, description of DART financial policies, supplemental financial schedules such as sales tax and debt detail, data on fares, and definitions of terms and acronyms. Dallas Area Rapid Transit FY 2015 Business Plan (Including FY 2015 Annual Budget and FY 2015 Twenty-Year Financial Plan) FY 2015 Business Plan (09/16/14) Table of Contents TABLE OF CONTENTS FY 2015 BUSINESS PLAN Page Section I – Who We Are Organization 1 Governance and Management Structure 3 The DART Transportation System 8 Section II – FY 2015 Twenty-Year Financial Plan FY 2014 – FY 2015 Comparison 15 Sources of Funds 22 Uses of Funds 29 Capital Projects Listing 36 Debt Program 44 Major Financial Plan Assumptions 57 Potential Risks and Opportunities 63 Section III – FY 2015 Annual Budget Overview 67 Priorities 70 FY 2015 Annual Budget 98 Inside the Numbers 99 Operating Budget Highlights 104 Capital and Non-Operating Budget 112 Debt Service Budget 113 DART Key Performance Indicators 114 Section IV – Organizational Units Customer Care & Service Delivery 121 Business Solutions & Innovation 149 Workforce & Customer Safety 159 Growth & Development 167 Workforce Leadership & Intergovernmental Relations 195 Departmental Expense Comparison 199 Budgeted Positions 200 Section V – Reference Business Plan Development 201 Financial Policies 213 Sales Tax 221 Debt Program 223 Fares 227 Operational Information 237 DART’s Economic Environment 253 DART Facts 263 Glossary/Acronyms 267 -i- FY 2015 Business Plan (08/08/14) FY 2015 BUSINESS PLAN Section 1 Who We Are FY 2015 Business Plan (09/16/14) Who We Are Who We Are We are Dallas Area Rapid Transit – DART. We’ve arrived! We’ve arrived! Pulling into Dallas/Fort Worth International Airport in August 2014 is just one of many ways in which DART has arrived. Indeed, DART has arrived at 61 other light rail stations – not to mention ten commuter rail stations and over 12,000 bus stops – throughout its service area. Witness that in the past five years, DART has doubled the size of its light rail system (from 45 miles in August of 2009 to 90 miles currently). Further, DART has not only expanded its physical system, we have expanded our information system. The past twelve months have seen the successful implementation of a mobile ticketing product called GoPass SM that permits customers to purchase tickets and download them to their phones, obtain trip plans and status of buses and trains, and receive information about area events – even combine the purchase of a transit pass with the purchase of tickets for those events! We’ve arrived at the information age – providing information and connections to destinations around the Dallas area. The DART system provides mobility options. Organization Dallas Area Rapid Transit (DART) is a regional transportation authority, created by a voting majority of the citizens on August 13, 1983, to organize and provide public transportation and complementary services to jurisdictions pursuant to Chapter 452 of the Texas Transportation Code (the “Act”). Our service area is comprised of 13 North Texas cities (Addison, Carrollton, Cockrell Hill, Dallas, Farmers Branch, Garland, Glenn Heights, Highland Park, Irving, Plano, Richardson, Rowlett, and University Park) as shown in Exhibit 2, and our headquarters are located in downtown Dallas. Under the Act, we are authorized to collect a 1% sales and use tax on certain transactions. DART provides bus, light rail, commuter rail, paratransit, and other services to our 13 municipalities across a 700 square mile service area with a population of 2.3 million in the Dallas, Texas “DART operates the area. DART has operated bus service since its longest light rail inception in 1983; the first segment of the light rail system in the U.S.” system opened in 1996. Since then, DART has worked to expand light rail considerably. As of August 2014 DART operates a total of 90 miles of light rail, with an extension to UNT-Dallas scheduled to open in 2016 bringing the total to 93 miles. DART operates commuter rail service jointly with the Fort Worth Transportation Authority (The T) along a 34-mile rail line between the cities of Dallas and Fort Worth. Exhibit 6 is the DART System Map as of August 18, 2014. 1 FY 2015 Business Plan (09/16/14) Who We Are Mission Statement – DART’s mission statement defines the purpose for which the Agency was created: The mission of Dallas Area Rapid Transit is to build, establish, and operate a safe, efficient, and effective transportation system that, within the DART Service Area, provides mobility, improves the quality of life, and stimulates economic development through the implementation of the DART Service Plan as adopted by the voters on August 13, 1983, and as amended from time to time. Board Strategic Priorities – To achieve this mission and ensure Agency alignment, in April 2009 the Board adopted six Strategic Priorities: Strategic Priority I: Strive to Exceed Customer Expectations Strategic Priority II: Manage System Development & Maintain Infrastructure Strategic Priority III: Build & Maintain DART’s Regional Transportation Leadership Strategic Priority IV: Drive Change Through Employee Engagement Strategic Priority V: Maximize Funding Resources Strategic Priority VI: Use Technology to Integrate and Advance Services and Systems Vision Statement – To help achieve the Board's mission and strategic priorities, the Board has approved a vision statement to address DART’s customers and stakeholders. DART: Your preferred choice of transportation for now and in the future. 2 FY 2015 Business Plan (09/16/14) Who We Are DART Organizational Values – DART’s Five-Year Strategic Plan is grounded in DART’s Values Statement, as follows: ° Focused on Our Customers V We are dedicated to meeting our customers’ needs.