[PPT] - Management and Financial Advisory Committee October 23, 2017 1 PowerPoint Presentation

SLIDE 1

Management and Financial Advisory Committee

October 23, 2017

1

SLIDE 2

FY18 Q1 Snapshot Ridership By Mode

Total l Trips Local Bus 3,229,880 85% MAX Bus 104,593 3% PCR Bus 18,960 1% Ferry 81,084 2% LRT 348,953 9%

FY 17 Q1

Local Bus 3,117,528 84% MAX Bus 99,683 3% PCR Bus 17,659 0% Ferry 115,947 3% LRT 378,539 10%

FY 18 Q1 Mode FY17-FY18 FY17-FY18 Change % Change Local

112,352
3.5%

MAX

4,910
4.7%

PCR

1,301
6.9%

Ferry 34,863 43.0% LRT 29,586 8.5% Total

54,114
1.4%

SLIDE 3

Year-Over-Year Ridership Increases

Total l Trips

Route FY 17 FY 18 Change % Change Route 31 25,641 31,119 5,478 21.4% Route 108 37,368 41,933 4,565 12.2% Route 22 20,022 21,814 1,792 9.0% Route 23 85,580 89,579 3,999 4.7% Route 29 22,931 23,944 1,013 4.4% Ferry 81,084 115,947 34,863 43.0% LRT 348,953 378,539 29,586 8.5% Max 966 2,787 3,443 656 23.5%

SLIDE 4

Year-Over-Year Ridership Decreases

Total l Trips

Route FY17 FY 18 Change % Change Route 26 17,161 14,032

3,129
18.2%

Route 36 42,128 34,965

7,163
17.0%

Route 58 14,915 12,604

2,311
15.5%

Route 44 31,446 26,804

4,642
14.8%

Route 14 28,743 25,885

2,858
9.9%

Route 57 28,933 26,317

2,616
9.0%

Route 4 23,657 21,523

2,134
9.0%

Route 33 34,214 31,900

2,314
6.8%

Route 15 168,659 157,282

11,377
6.7%

Route 3 155,914 146,020

9,894
6.3%

Route 9 53,673 50,820

2,853
5.3%

PCR 403 2,803 1,779

1,024
36.5%

PCR 414 6,011 5,010

1,001
16.7%

Max 918 1,580 674

906
57.3%

Max 919 6,602 5,388

1,214
18.4%

Max 922 5,196 4,493

703
13.5%

Max 961 48,830 46,344

2,486
5.1%

SLIDE 5

Year-Over-Year VB Wave Trends

Total l Trips

VB Wave FY17 FY 18 Change % Change Route 31 25,641 31,119 5,478 21.4% Route 30 161,440 163,559 2,119 1.3% Route 35 (new) n/a 31,900 n/a n/a Route 32 (Eliminated) 8,903 n/a n/a n/a

SLIDE 6

MFAC

FY 2019 TRANSPORTATION SERVICE PLAN CALL LETTERS - HIGHLIGHTS

OCTOBER 23, 2017

SLIDE 7

NORTHSIDE CITIES

SLIDE 8

FY19 TSP Highlights

TSP Letters

▪ October 4th -TSP letters were sent to the six cities ▪ October 6th - Four cities received supplemental letters providing clarifying information

Hampton
Newport News
Norfolk
Virginia Beach

▪ Supplemental letters provided explanations for year over year revenue hours in excess of 100 hours

8

SLIDE 9

FY19 TSP HIGHLIGHTS

City of Hampton

▪ Route 114 –. – ▪ Route 118 -. –

9

Route Descripti ription

n

Modifica cati tion n Summar ary y Antici cipat pated d Imp mpact: t: Revenue nue/Eq /Equi uipme pment/ nt/Hour urs 114 Weaver Rd. Realign Route to run along Mercury Blvd. Revenue neutral and equipment neutral. 118 18 Armistead Ave. No longer serve Langley Air Force Base. Serve Boo Williams Rec Center. Revenue neutral and equipment neutral.

SLIDE 10

FY19 TSP HIGHLIGHTS

City of Newport News

10

Route Descripti ription

n

Modifica cati tion n Summar ary Antici cipat pated d Imp mpact: t: Revenue nue/Eq /Equi uipme pment/ nt/Hour urs 107 Warwick/ Denbigh Streamlining of route structure. Revenue neutral and equipment neutral. 111 Jefferson/

Thomas Nelson

Streamlining of route structure. Revenue neutral and equipment neutral. 114 Weaver Rd. Realign Route to run along Mercury Blvd. Revenue neutral and equipment neutral. 116 Jefferson/ Lee Hall “One-seat ride” to CNU. Increases annual hours for this Route by 4,515 hours. 119 Oyster Point Recommended for elimination. Coverage provided by Route 116. Decreases annual hours for this Route by 4,515. 121 Williamsburg Extend Route slightly to provide service into NNSY. Revenue neutral and equipment.

SLIDE 11

SOUTHSIDE CITIES

SLIDE 12

FY19 TSP HIGHLIGHTS

City of Chesapeake

▪ No changes requested by the City of Chesapeake ▪ New Route 24 – Kempsville Road requested by City of Virginia Beach (runs to Greenbrier Mall). Must be accepted by City of Chesapeake.

12

SLIDE 13

FY19 TSP HIGHLIGHTS

City of Norfolk

13

Route Descripti ription

n

Modifica cati tion n Summar ary Antici cipat pated d Imp mpact: t: Revenue nue/Eq /Equi uipme pment/ nt/Hour urs 4 4 Church St. Streamlining alignment by eliminating a deviation on Goff St. Revenue neutral. 9 9 Sewells Point Rd. Streamlining alignment by eliminating a deviation on Widgeon Rd. Revenue neutral.

SLIDE 14

FY19 TSP HIGHLIGHTS

City of Portsmouth

▪ No changes requested by the City of Portsmouth

14

SLIDE 15

FY19 TSP HIGHLIGHTS

City of Virginia Beach

15

Route Descripti ription

n

Modifica cati tion n Summar ary Antici cipat pated d Imp mpact: t: Revenue/Eq nue/Equi uipm pment/ nt/Hour urs 24 (New) Kempsville Rd. Connects Town Center to Greenbrier Mall. Increases FY19 revenue hours by 15,608 hours and requires four (4) additional buses. 33 33 General Booth Blvd. Realignment onto Birdneck Road at request of City. Cost and equipment neutral. 35 35 VB Wave Route Two options presented: 1. Change route to year round service 2. Keep route seasonal, but change service frequencies to 30 minutes and extend route along Shore Dr. to Pleasure House Dr. 1. Year Round – 20,266 additional hours 2. 30-minutes with extension – 3,481 additional hours

SLIDE 16

16

Fleet Inventory and Demand

Victori

ria

Fleet et Invent ntor

ry 82

High h Demand 63

18 18th

th Stree

eet

Fleet et Invent ntor

ry 194

94 High h Demand 147

Park Parks s (Seaso

sona nal) Fleet et Invent ntor

ry 14

High h Demand 16

Tot

tal

al Flee eet t Inven entor

ry

y 290 Tot

tal

al High h Demand mand 226

SLIDE 17

17

Average Fleet Age

Aver erage ge Fl Fleet eet Age ge

9. 9.8 Y 8 Year ears

Oldest est Un Unit t 18 18.7 Years Newest est Un Unit t 1. 1.7 years

Federal eral Transit nsit Administ inistrati ation

n recommends
mmends a 1

12 year life e expe pectanc ctancy y of a transit nsit Bus and an Average age Fleet t Age of 6.5 to 7.5 years. s.

SLIDE 18

18

Pr Projec jected ed Cap apital tal Ne Needs eds Thr hru u Fiscal cal Yea ear 202 024

FY-16-17 (In process) FY-18 FY-19 (Projected) FY-20 (Projected) FY-21 (Projected) FY-22 (Projected) FY-23 (Projected) FY-24 (Projected) 5,479,392 $ 710,440 $ TBD TBD

$
$
$
$

11,022,271 $ 13,981,999 $ 6,358,282 $ 11,943,448 $ 21,634,388 $ 23,537,261 $ 8,241,309 $ 4,977,892 $ 35 10 6 7 5 43 22 11 3,034,281 $ 908,468 $ 530,566 $ 631,130 $ 459,477 $ 4,026,057 $ 2,097,989 $ 1,068,067 $ Projected Need 19,535,944 $ 15,600,907 $ 6,888,848 $ 12,574,579 $ 22,093,864 $ 27,563,319 $ 10,339,298 $ 6,045,959 $ Funded 19,535,944 $ 15,380,939 $

$
$
$
$
$
$

10 21 3 TBD TBD Rebuild Replace Mid-Life Overhaul 23 26 14 26 46 49 17

SLIDE 19

19

Forecasted State Transit Capital Revenue (Source: DRPT)

SLIDE 20

Forecasted State Match Rates for Capital Projects by Tier (Source: DRPT)

20

SLIDE 21

Project Case Study: Hampton Roads Transit (Source: DRPT)

21

SLIDE 22

SEPTEMBER 2017 FINANCIAL REPORT

FISCAL YEAR 2018

Draft Financial Statement

SLIDE 23

REVENUE & RIDERSHIP KPI’s SEPTEMBER 2017

1

15% 16% 17% 18% 19% 20% 21% 17% 20%

Farebox Recovery Ratio

Target Actual $5.50 $5.60 $5.70 $5.80 $5.90 $6.00 $6.10 $6.20 $6.30 $6.28 $5.82

Average Cost per Rider

Target Actual

SLIDE 24

OPERATING FINANCIAL STATEMENTS SEPTEMBER 2017

2

FISCAL YEAR 2018

Budget Actual

Dollars in Thousands

Annual Budget YTD Actual Operating Revenue 1,460.7 $ 1,673.0 $ 212.2 $ 14.5% Passenger Revenue 17,686.1 $ 4,496.1 $ 13,190.0 $ 25.4% 110.4 51.3 (59.1)

53.6%

Advertising Revenue 1,325.0 192.6 1,132.4 $ 14.5% 186.3 179.1 (7.2)

3.9%

Other Transportation Revenue 2,236.1 537.3 1,698.8 $ 24.0% 5.0 16.8 11.8 236.0% Non-Transportation Revenue 60.0 34.4 25.6 $ 57.3% Non-Operating Revenue 1,371.8 1,445.6 73.7 5.4% Federal Funding 16,347.0 4,374.3 11,972.7 $ 26.8% 1,669.7 1,625.5 (44.2)

2.6%

State Funding 20,036.2 4,876.4 15,159.8 $ 24.3% 3,800.5 3,688.1 (112.4)

3.0%

Local Funding 45,605.7 11,064.2 34,541.5 $ 24.3% 8,604.5 $ 8,679.2 $ 74.8 $ 0.9% TOTAL REVENUE 103,296.1 $ 25,575.3 $ 77,720.8 $ 24.8% 5,287.1 $ 5,087.5 $ 199.6 $ 3.8% Personnel Services 64,133.5 $ 15,657.1 $ 48,476.4 $ 24.4% 912.6 397.2 515.4 56.5% Contract Services 10,402.3 1,396.4 9,005.9 13.4% 1,001.4 940.3 61.1 6.1% Materials & Supplies 11,830.5 2,706.1 9,124.4 22.9% 92.2 104.4 (12.2)

13.3%

Utilities 1,195.3 331.5 863.7 27.7% 392.4 348.4 44.0 11.2% Casualties & Liabilities 4,709.0 1,047.4 3,661.6 22.2% 725.5 678.2 47.3 6.5% Purchased Transportation 8,706.4 2,112.6 6,593.8 24.3% 193.2 56.0 137.2 71.0% Other Miscellaneous Expenses 2,319.1 317.2 2,001.9 13.7% 8,604.5 $ 7,612.0 $ 992.5 $ 11.5% TOTAL EXPENSE 103,296.1 $ 23,568.3 $ 79,727.8 $ 22.8% 0.0 1,067.2 (1,067.2) OPERATING PROFIT (LOSS) 0.0 2,007.0 (2,007.0) Monthly Year to Date Variance Variance

SLIDE 25

LOCAL FUNDING SEPTEMBER 2017

3

FISCAL YEAR 2018

(Dollars in Thousands) Annual Budget YTD Actual Payments YTD Cost Due to/ (from) HRT Local Funding Chesapeake 2,547.6 $ 636.9 $ 573.1 $ (63.8) $ Newport News 7,280.2 1,820.0 1,673.1 (146.9) Hampton 4,531.0 1,132.7 1,056.0 (76.7) Norfolk 19,552.2 4,888.2 3,600.1 (1,288.1) Portsmouth 2,977.4 744.3 630.2 (114.1) Virginia Beach 7,368.2 1,842.1 1,524.7 (317.4) TOTAL LOCAL FUNDING 44,256.6 $ 11,064.2 $ 9,057.2 $ (2,007.0) $

LOCAL FUNDING

SLIDE 26

OPERATING FINANCIAL STATEMENTS SEPTEMBER 2017

4

0.25

0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE

Farebox Revenue

(in millions)

FY17 ACTUAL FY18 BUDGET FY18 ACTUAL 5.00 6.00 7.00 8.00 9.00 10.00 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE

Total Expenses

(in millions)

FY17 ACTUAL FY18 BUDGET FY18 ACTUAL

SLIDE 27

RIDERSHIP GRAPHS SEPTEMBER 2017

5

200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1 2 3 4 5 6 7 8

BUS

FY15 FY16 FY17 FY18

SLIDE 28

RIDERSHIP GRAPHS SEPTEMBER 2017

6

5,000

10,000 15,000 20,000 25,000 30,000 1 2 3 4 5 6 7 8

FERRY

FY16 FY17 FY15 FY18

SLIDE 29

RIDERSHIP GRAPHS SEPTEMBER 2017

7

110,000 112,000 114,000 116,000 118,000 120,000 122,000 124,000 126,000 128,000 130,000 1 2 3 4 5 6 7 8

LIGHT RAIL

FY16 FY17 FY15 FY18

SLIDE 30

RIDERSHIP GRAPHS SEPTEMBER 2017

8

27,000 27,500 28,000 28,500 29,000 29,500 30,000 30,500 31,000 31,500 32,000 1 2 3 4 5 6 7 8

PARATRANSIT

FY16 FY17 FY15 FY18

SLIDE 31

PROCUREMENTS BETWEEN $50K-$100K SEPTEMBER 2017

9 Contract Number Contract Description Cost Center Funding Source Method of Procurement Award Amount Award Date Awarded Vendor Performance Period

17-75526 Information Technology Research and Advisory Services Technology Operating Sole Source $79,500.00 9/1/2017 Gartner, Inc. 1 Year

September 2017

SLIDE 32

OPERATING FINANCIAL STATEMENTS SEPTEMBER 2017

(PROPOSED BUDGET REVISION)

10

Annual Budget Proposed Budget Revision Operating Revenue Passenger Revenue 17,686.1 $ 17,686.1 $

$

100% Advertising Revenue 1,325.0 1,325.0

100%

Other Transportation Revenue 2,236.1 2,236.1

100%

Non-Transportation Revenue 60.0 60.0

100%

Non-Operating Revenue Federal Funding 16,347.0 16,347.0

100%

State Funding 20,036.2 20,036.2

100%

Local Funding 45,605.7 44,256.6 (1,349.1) 97% TOTAL REVENUE 103,296.1 $ 101,947.0 $ (1,349.1) $ 99% Personnel Services 64,133.5 $ 64,133.5 $

$

100% Contract Services 10,402.3 9,053.2 (1,349.1) 87% Materials & Supplies 11,830.5 11,830.5

100%

Utilities 1,195.3 1,195.3

100%

Casualties & Liabilities 4,709.0 4,709.0

100%

Purchased Transportation 8,706.4 8,706.4

100%

Other Miscellaneous Expenses 2,319.1 2,319.1

100%

TOTAL EXPENSE 103,296.1 $ 101,947.0 $ (1,349.1) $ 99%

FISCAL YEAR 2018

Dollars in Thousands

Variance