Southeastern Pennsylvania Transportation Authority FISCAL YEAR 2022 OPERATING BUDGET PROPOSAL July 1, 2021 through June 30, 2022 and Fiscal Years 2023 – 2027 Financial Projections Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Southeastern Pennsylvania Transportation Authority, Pennsylvania, for its Annual Budget for the fiscal year beginning July 1, 2020. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. i Southeastern Pennsylvania Transportation Authority Board Members Chairman Pasquale T. Deon, Sr. Vice-Chairman Honorable Kenneth Lawrence, Jr. Bucks County Chester County Delaware County Pasquale T. Deon, Sr. Joseph E. Brion, Esquire Thomas E. Babcock John F. Cordisco, Esquire Kevin L. Johnson, P.E. Mark H. Dambly Montgomery County City of Philadelphia Robert D. Fox, Esquire Michael A. Carroll, P.E. Honorable Kenneth Lawrence, Jr. Deborah Mahler Governor’s Appointee Obra S. Kernodle, IV Senate Majority House Majority Leader Appointee Leader Appointee Thomas Jay Ellis, Esquire Honorable Martina White Senate Minority House Minority Leader Appointee Leader Appointee William J. Leonard, Esquire Esteban Vera, Jr. SEPTA Officers General Manager Leslie S. Richards Deputy General Manager - Treasurer Richard G. Burnfield General Counsel Gino J. Benedetti, Esquire Controller to the Board Stephen A. Jobs, CPA Secretary to the Board Carol R. Looby ii SEPTA FY 2022 Operating Budget Proposal Table of Contents PREFACE GFOA Award .............................................................................................................. i SEPTA Board Members and Officers......................................................................... ii Table of Contents ..................................................................................................... iii 1. INTRODUCTION AND PROFILE SEPTA History ........................................................................................................... 1 SEPTA Service Profile at a Glance ............................................................................ 2 SEPTA Rail & Transit Maps ....................................................................................... 3 Passenger Profile ...................................................................................................... 5 Customer Satisfaction Ratings/Key Regional Transportation Trends ......................... 6 Strategic Plan (2021-2026) ....................................................................................... 8 Key Performance Indicators ....................................................................................... 9 2. THE BUDGET PROCESS Budget Development ............................................................................................... 13 Fiscal Year 2022 Calendar ...................................................................................... 14 Key Activities in the Budget Process ........................................................................ 15 3. FISCAL YEAR 2022 ASSUMPTIONS & CONSOLIDATED BUDGET Assumptions ............................................................................................................ 16 Fiscal Year 2022 Consolidated Budget ................................................................... 18 4. FINANCIAL & BUDGETARY POLICIES Financial Planning Policies ...................................................................................... 19 Revenue Policies ..................................................................................................... 20 Expenditure Policies ................................................................................................ 21 Description of Existing Debt and Debt Service Policies ............................................ 21 Statement of Changes in Equity ............................................................................... 28 5. ORGANIZATIONAL STRUCTURE Operating Divisions .................................................................................................. 29 Operating and Staff Departments ............................................................................ 30 Corporate Team Organization Chart ........................................................................ 32 iii SEPTA FY 2022 Operating Budget Proposal Table of Contents 6. THREE YEAR COMPARISON FISCAL YEARS 2020 - 2022 Consolidated .......................................................................................................... 33 City Transit Division ............................................................................................... 34 Victory Division ...................................................................................................... 35 Frontier Division ..................................................................................................... 36 Regional Rail Division ............................................................................................. 37 7. FINANCIAL PROJECTIONS Financial Projections FY 2023 – FY 2027 Assumptions ........................................... 38 Financial Projections of Consolidated Budget .......................................................... 39 8. OPERATING REVENUE AND SERVICE PLAN OVERVIEW Annual Service Plan Overview ................................................................................. 40 Revenue Assumptions by Category ......................................................................... 41 Ten Year Revenue Trends ....................................................................................... 42 Summary of Operating Revenue .............................................................................. 43 9. OPERATING SUBSIDIES Subsidy Allocation and Detail .................................................................................. 44 Service Stabilization Fund ....................................................................................... 47 Detail of Subsidies ................................................................................................... 48 Summary of Operating Subsidies ............................................................................ 49 Detail of Local Subsidies and Other by County ........................................................ 50 Summary of Local Subsidies by County ................................................................... 51 10. OPERATING EXPENSES Expense Assumptions by Category ......................................................................... 52 Ten Year Expense Trends ....................................................................................... 54 Summary of Operating Expenses ............................................................................ 56 FY 2022 Budget Proposal – Detail of Expenses ...................................................... 57 FY 2022 Budget Proposal – Allocation By Company ............................................... 58 FY 2021 Budget – Detail of Expenses ..................................................................... 59 FY 2020 Actual – Detail of Expenses ....................................................................... 60 iv SEPTA FY 2022 Operating Budget Proposal Table of Contents 11. HEADCOUNT AUTHORIZATIONS Headcount Designations .......................................................................................... 61 Fiscal Year 2022 Headcount Authorizations ........................................................... 62 Fiscal Years 2018-2022 Headcount Authorization .................................................. 65 Headcount Authorization Cause of Change ............................................................. 68 12. DEPARTMENTAL SUMMARIES BY DIVISION Corporate Staff... ......................................................................................................... 71 Transit Police... ........................................................................................................... 78 System Safety ............................................................................................................. 82 Operations ................................................................................................................... 89 Engineering, Maintenance and Construction .......................................................... 103 Deputy General Manager/Treasurer’s Staff ............................................................ 112 Deputy General Manager/Operations, EM&C and Vehicles ................................... 120 Finance .................................................................................................................... 127 Planning and Strategic Initiatives ............................................................................ 139 Employee Development and Relations ................................................................... 148 Human Resources ................................................................................................... 156 Procurement, Supply Chain and Disadvantaged Business Enterprise .................. 161 Audit and Investigative