FY2020 Preliminary Operating and Capital Budgets Board of - - PowerPoint PPT Presentation

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FY2020 Preliminary Operating and Capital Budgets Board of - - PowerPoint PPT Presentation

Apr 17, 2023 428 likes •620 views

FY2020 Preliminary Operating and Capital Budgets Board of Directors May 2, 2020 Agenda Item # 10 Key Assumptions Increasing baseline service costs Concerns about ridership Costs of PTC implementation Minimal additions

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FY2020 Preliminary Operating and Capital Budgets

Board of Directors May 2, 2020 Agenda Item # 10

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SLIDE 2

Key Assumptions

  • Increasing baseline service costs
  • Concerns about ridership
  • Costs of PTC implementation
  • Minimal additions to staffing
  • Work with members on Operating and

Capital funding

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Approach to the FY20 Budgets

Focus on:

  • Delivering status quo service efficiently
  • Mitigating impact of budget increases on riders
  • Bridge to electrification

Requesting additional member funding for Operations

  • $4.5 million additional, total of $29.9 million

Requesting maintained member funding for Capital of $22.5 million

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Farebox & OPEX (per Passenger)

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  • FY11-FY18 Actuals, FY19 Forecast, and FY20 Preliminary Budget
  • FY16 and FY18 OPEX were abnormally low due to release of insurance reserves

$6.79 $6.25 $6.54 $3.87 $5.35 $5.36 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Operating Expense Farebox

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SLIDE 5

Farebox and Contribution (per Passenger)

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  • FY11-FY18 Actual, FY19 Forecast, and FY20 Preliminary Budget

$2.77 $1.31 $1.51 $3.87 $5.35 $5.36 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Contributions Farebox

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SLIDE 6

Operating Contribution (in millions)

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$35.1 $25.3 $33.5 $17.2 $19.8 $19.7 $20.4 $20.4 $25.4 $29.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Total Contributions

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SLIDE 7

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FY20 Preliminary Revenues (in $ millions)

68% 4% 2% 1% 1% 5% 19%

Fares Parking Shuttles Rental Income Other Income AB434 & Grants Member Agencies

Fares $106.0 Parking 5.5 Shuttles 2.9 Rental Income 2.1 Other Income 1.6 AB434 & Grants 7.2 Member Agencies 29.9 Total Revenue $155.1

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FY20 Preliminary Expenses (in $ millions)

59%

7% 16% 10% 8%

Rail Ops & PTC Fuel & Lubricants Other Operating Expense Other Admin Expense Wages and Benefits

Rail Ops & PTC $93.3 Security Services 6.5 Shuttle Services 5.7 Fuel 11.0 Timetables & Tickets 0.1 Insurance 5.5 Facilities and Equip Maint 3.5 Utilities 2.1 Maint & Services 1.6 Administrative 25.6 Long-term debt 2.6 Total Expenses $157.6

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FY20 Preliminary Budget Outlook

(in $ millions)

FY19 Budget FY19 Forecast FY20 Prelim Budget Revenue $151.5 $147.1 $155.1 Expense 152.7 148.0 157.6 Surplus/Deficit $ $(1.2) $(0.9) $(2.5)

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SLIDE 10

Key Expense Drivers

Rail Operator Service

  • Built in salary increases in the TASI labor contracts
  • Contractual increase in General & Administration rate from

6.0% to 7.5%

PTC Operating Expenses

  • FY20 – maintenance contract with TASI, hiring and training of

5 additional FTEs

  • BCCF lease for 3 months preceding the purchase of BCCF

facility; FY20- Del Secco Menlo Park ROW lease for full year

Diesel Fuel

  • FY20 budget assumes $2.10/gallon (without taxes)
  • Current invoice price is $2.18/gallon and has ranged between

$1.67 and $2.38

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Key Expense Driver – Agency Staffing

  • 2.4 annualized FY19 new FTEs
  • 2.6 new operating FTE requests in FY20

spread across 8 positions

  • Adjustments in wages and fringe benefits
  • Vacancy factor of 4%

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Staff Allocation for Caltrain

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FU FUNCTION FTE allocated to JPB JPB Full-Time Personnel OPERATING CAPITAL Rail, Calmod, & Bus Divisions 34.6 53.4 63 Grants and Administration* 15.4 23.7 10 Marketing, Communications and Customer Service 16.4

  • Total

66.4 77.1 73

*includes Finance, Contracts & Procurement, and Safety & Security

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Caltrain’s Fiscal Challenges

Preliminary FY20 Budget is nearly balanced

  • Gap closing measures will be included in the June

Proposed Budget

FY21 is expected to be more challenging

  • Continued growth in Baseline expenditures
  • Increasing PTC operating expenses
  • Dependence on farebox revenue
  • Financial constraints of member agencies

Continued lack of a dedicated funding source

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FY2020 PRELIMINARY CAPITAL PROGRAM

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Overview of FY20 Preliminary Program Costs

(in $ millions)

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10% 35% 21% 1% 16% 17%

Stations & Intermodal Access Right of Way/ Signals & Communications Rolling Stock Legal Mandates Operational Improvements/Enhancements Planning/Studies

SOGR Stations & Intermodal Access $7.0 Right of Way/ Signals & Communications 25.8 Rolling Stock 15.4 Legal Mandates 0.5 Operational Improvements/Enhancements 11.7 Planning/Studies 12.5 Total $72.9

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FY2020 Preliminary Funding Sources

(in $ millions)

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33% 14% 54%

Federal Grants State & Regional Grants JPB Member Agency Contribution

*Assumes $7.5M contribution from each member

Federal Grants $13.7 State & Regional Grants 5.8 JPB Member Agency Contribution 22.5 Total $42.0

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Next Steps

  • Continue working with members to finalize the
  • perating and capital investments for FY2020
  • Based on input from the Board and finalized

investments, develop budgets for presentation in June

  • Continue to work with the Board and members to

study and address the funding gaps for FY2021 and beyond

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