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RTAChicago.org MEETING OF THE RTA BOARD OF DIRECTORS SEPTEMBER 10, 2020 Welcome! Meeting Starts at 9 a.m. Meeting Agenda @ RTAChicago.org/about-us/boardmeetings RTA BOARD OF DIRECTORS MEETING 1. CALL TO ORDER Please feel free to listen to

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RTAChicago.org

MEETING OF THE RTA BOARD OF DIRECTORS SEPTEMBER 10, 2020

Welcome! Meeting Starts at 9 a.m. Meeting Agenda @ RTAChicago.org/about-us/boardmeetings

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RTA BOARD OF DIRECTORS MEETING

1. CALL TO ORDER

Please feel free to listen to the meeting and view slides related to it here. The meeting agenda can be found at rtachicago.org/about-us/boardmeetings

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PLEDGE OF ALLEGIANCE

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RTA BOARD OF DIRECTORS MEETING

2. ROLL CALL 3. APPROVAL OF MINUTES 3a: From the Board of Directors Meeting held on August 20, 2020

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4. PUBLIC COMMENT

Public comments were accepted online in advance of this meeting.

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RTAChicago.org

5. EXECUTIVE DIRECTOR’S REPORT

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BUDGET PROCESS

  • This is not a normal budget year
  • Planning for the unknown with flexibility
  • Latest forecast shows a systemwide reduction of

$415.4 million in operating funds.

  • Next steps
  • Monthly updates, online hearings, public comment,

regional budget for approval in December

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RECOVERY SCENARIO PLANNING

  • Two stakeholder

workshops conducted in August

  • Public survey

distributed after workshops

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INVESTMENT FRAMEWORK

  • Commits RTA and the Service Boards to more

transparency in the capital programming process.

  • Changes in response to COVID-19 and stakeholder

feedback.

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STATE DELINQUENCY FIGURES

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Month Amount Delinquent September $237.3 million August $214.5 million

2020 Cost of Short Term Borrowing YTD

$3.7 million

2019 Cost of Short Term Borrowing

$5.2 million

Short-Term Borrowing Authority

$400 million

Outstanding Short-Term Borrowing

$150 million

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RTAChicago.org

6. INFORMATION ITEMS

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  • 6a. UPDATE ON THE

STRATEGIC COVID-19 RECOVERY PLANNING FOR REGIONAL TRANSIT

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RTA’S SCENARIO PLANNING ACTIVITIES

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  • Develop several potential scenarios
  • Explore impacts of each scenario on:
  • Economy
  • Commuting
  • Transit Mode Choice
  • Estimate relative impact to funding
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THREE SCENARIOS FOR DISCUSSION

Congested Recovery Regional Remix

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Stalled Economy

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STAKEHOLDER INPUT

  • Two virtual workshops
  • Survey
  • Smaller groups and discussions

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GOAL 1 QUESTION

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How does the transit system Deliver Value on Our Investment if funding levels change?

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COMMON FEEDBACK FOR GOAL 1

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  • Federal funding is desirable but tenuous
  • New local and regional funding sources could be

leveraged to reinforce value of transit

  • Farebox recovery ratio is limiting
  • Flexibility needed in the way that operating and

capital funding is programmed

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GOAL 2 QUESTION

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Invest in Transit Six Key Transit Markets

How does the transit system Build on the Strengths of Our Network to meet the region’s changed mobility needs?

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COMMON FEEDBACK FOR GOAL 2

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  • Focus first on meeting mobility needs of those who rely

upon transit

  • Prioritize improvements to bus service
  • Create regional network of bus and mobility hubs to

balance out downtown Chicago focus of rail system

  • Provide an integrated transit service and experience

across Service Boards and with new provider partners

  • Maintain safe and clean service
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GOAL 3 QUESTION

How do we Stay Competitive if people change the way that they travel?

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COMMON FEEDBACK FOR GOAL 3

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  • Staying competitive is going to be difficult
  • The Ventra App needs to provide integration across

more services as soon as possible

  • New and more flexible types of transit and connecting

services are still needed

  • Invest in technology and infrastructure for bus

priority and speed improvements

  • Real-time information, clear messaging, transit

marketing can be used to bring back riders

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NEXT STEPS FOR RECOVERY PLANNING

  • Support budget process and continued advocacy

for Federal relief funding

  • Focus RTA 2021 work plan on recovery
  • Work with RTA Board toward next generation of

transit structural improvements

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RTAChicago.org

  • 6b. REPORT ON

MONTHLY FINANCIAL RESULTS – JULY 2020

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  • 6b. REPORT ON MONTHLY FINANCIAL

RESULTS – YTD THRU JULY 2020 (in millions)

Actual Budget Variance % Variance CTA 135.5 132.4 3.0 2.3% Metra 16.0 16.5 (0.6) (3.3%) Pace 9.3 9.2 0.2 1.8% Pace ADA 1.5 1.4 0.1 9.7% Total 162.3 159.5 2.8 1.7%

RIDERSHIP

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  • 6b. REPORT ON MONTHLY FINANCIAL

RESULTS – YTD THRU JULY 2020 (in millions)

Actual Budget Variance % Variance CTA $387.9 $393.1 ($5.2) (1.3%) Metra $212.0 $221.8 ($9.8) (4.4%) Pace $29.6 $28.2 $1.4 5.0% Pace ADA $4.4 $4.6 ($0.2) (3.3%) Total $633.9 $647.7 ($13.8) (2.1%)

OPERATING REVENUE

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  • 6b. REPORT ON MONTHLY FINANCIAL

RESULTS – YTD THRU JULY 2020 (in millions)

Actual Budget Variance % Variance CTA $525.5 $474.4 $51.1 10.8% Metra $226.9 $227.9 ($1.0) (0.4%) Pace $90.2 $73.4 $16.7 22.8% Pace ADA $90.9 $90.9 ($0.0) (0.0%) Total $933.5 $866.6 $66.9 7.7%

PUBLIC FUNDING

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  • 6b. REPORT ON MONTHLY FINANCIAL

RESULTS – YTD THRU JULY 2020 (in millions)

Actual Budget Variance % Variance CTA $912.7 $917.9 $5.1 0.6% Metra $430.7 $449.7 $19.0 4.2% Pace $119.4 $138.8 $19.4 13.9% Pace ADA $109.8 $104.0 ($5.8) (5.6%) Total $1,572.6 $1,610.3 $37.7 2.3%

EXPENSES

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  • 6b. REPORT ON MONTHLY FINANCIAL

RESULTS – YTD THRU JULY 2020 (in millions)

Actual Budget Variance CTA $0.6 ($50.4) $51.0 Metra $8.2 $0.0 $8.2 Pace $0.4 ($37.1) $37.5 Pace ADA ($14.4) ($8.5) ($5.9) Total ($5.2) ($96.0) $90.8

NET RESULTS

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  • 6b. REPORT ON MONTHLY FINANCIAL

RESULTS – YTD THRU JULY 2020

CTA 28.8% $183.7 52.2% 52.4% (0.2) Metra 28.7% $98.1 53.1% 53.0% 0.1 Pace 21.8% $10.6 31.9% 25.9% 5.9 Pace ADA 6.8% $0.0 6.8% 8.1% (1.3) Total 27.4% $292.4 49.7% 49.0% 0.7 YEAR-TO-DATE RECOVERY RATIOS Without CARES CARES $ With CARES Budget Variance

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RTAChicago.org

7. ACTION ITEMS

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RTAChicago.org

  • 7a. ORDINANCE

APPROVING THE FRAMEWORK FOR TRANSIT CAPITAL INVESTMENTS

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INVESTMENT FRAMEWORK DEVELOPMENT PROCESS

WNBC

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1. 3. 5. 2. 4.

The RTA and Service Board leadership agreed to develop a new Framework to provide greater transparency in capital programming. The committee reviewed opportunities to improve communications with stakeholders and developed Goals & Outcomes for the five-year regional capital program based on peer examples and current planning documents. The committee outlined the Tools & Methods to be used to develop the five-year regional capital program going forward. The committee created a Process for making changes to increase transparency in capital programming. The information was summarized in a document for public comment. 9/10/2020 Meeting of the RTA Board of Directors

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NEW FRAMEWORK SUMMARY

  • Communicate the Goals, Process, and Outcomes of

capital program in transparent, engaging way.

  • Integrate regional goals into regional capital program

development process to clarify linkages

  • Implement three changes to current process:
  • Clarified Requirements & Goals
  • Improved Data Collection
  • Enhanced Information Products and Updates

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PUBLIC COMMENTS

  • Orland Park

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PUBLIC COMMENTS

  • CMAP

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PUBLIC COMMENTS

  • Active Transportation Alliance, Center for

Neighborhood Technology, Chicagoland Chamber

  • f Commerce, the Civic Committee of the

Commercial Club of Chicago, Elevated Chicago, Environmental Law & Policy Center, Illinois Environmental Council, Metropolitan Planning Council, Respiratory Health Association and the Shared-Use Mobility Center.

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PUBLIC COMMENTS

  • Active Transportation Alliance, Center for

Neighborhood Technology, Chicago Chapter of the Climate Reality Project, Environmental Law and Policy Center, Illinois Environmental Council, Metropolitan Planning Council, Natural Resources Defense Council, Respiratory Health Association, and Sierra Club, Illinois Chapter

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ORDINANCE RECOMMENDATION

  • Adopt the Framework for Transit Capital

Investments as written.

  • Program the 2025 PAYGO and federal formula

capital funds in a regional set-aside allocated to RTA until such time as a new process for allocating these funds can be established.

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  • 7b. ORDINANCE

AUTHORIZING AN AMENDMENT TO THE 2020 SERVICE BOARD AND AGENCY OPERATING FUNDING AMOUNTS

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REASONS FOR 2ND 2020 AMENDMENT

  • Additional $13.0 million required for ADA Paratransit
  • Required by sections 4.11(a) and 4.11(c)(1) of RTA Act
  • Recognize improved regional sales tax projections

– Full year sales tax decline of 16% now expected, not 28% – Preserves more CARES Act funding for 2021

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2020 ADA PARATRANSIT FUNDING

$181.3 $129.4 $129.4 $129.4 $18.4 $31.4 Original 2020 Budget May Funding (Estimate) August Budget Amendment Latest Estimate (Today) RTA and State Funding ADA Reserve

Additional $13 million

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+3% +3%

  • 25%
  • 50%
  • 50%
  • 50%
  • 40%
  • 30%
  • 20%
  • 20%
  • 25%
  • 30%

+9% +1%

  • 15%
  • 28%
  • 22%
  • 16%
  • 18%
  • 18%
  • 18%
  • 20%
  • 20%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

May Funding Amendment Proposed Funding Amendment (Actual thru May)

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ASSUMPTION - 2020 SALES TAX GROWTH

REVISED FULL YEAR AVERAGE GROWTH: -16.1%

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2020 May Amendment 2020 Proposed Change CTA $610.2 $706.7 +$96.5 Metra 297.7 359.2 +61.5 Pace 124.8 148.4 +23.6 ADA Paratransit 129.4 160.8 +31.4 RTA Agency, Regional Services and Debt Svc 90.4 107.8 +17.4 Total Funding $1,252.5 $1,483.0 +$230.5

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RTA PUBLIC FUNDING (IN MILLIONS)

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CARES ACT FUNDING 2020 AND 2021

(IN BILLIONS)

  • A. Total regional apportionment:

$1.438 100%

  • B. Utilized in August 2020 revised budgets:

$1.097 76%

  • C. Mitigation with this funding amendment:

$0.199 14%

  • D. Revised requirement for 2020 (B – C):

$0.898 62%

  • E. Revised remainder for 2021 (A – D):

$0.540 38%

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NEXT STEPS

  • Ordinance requires Pace ADA Paratransit to submit a

revised 2020 operating budget to RTA within 30 days.

  • Ordinance requires CTA, Metra, and Pace to utilize the

amended, increased funding amounts in their 2020 estimated financial results to be submitted with their proposed 2021 budgets in October.

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RTAChicago.org

  • 7c. ORDINANCE ESTABLISHING

ESTIMATES OF AMOUNTS AVAILABLE TO THE SERVICE BOARDS FOR THEIR 2021-2023 OPERATING BUDGETS, THE REQUIRED RECOVERY RATIOS FOR 2021, AND THE PRELIMINARY 2021-2025 CAPITAL PROGRAM FUNDS

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RTA ACT REQUIREMENTS

  • Funding amounts for upcoming year required to be

established by September 15th

  • Service Boards develop budgets that do not exceed the

funding amounts set by the RTA Board

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COVID-19 IMPACT

  • Sales tax drop of 28% in April 2020, has since moderated
  • Regional unemployment reached 16%, has since improved
  • Federal stimulus impact will wane, virus may resurge
  • Direct RTA sales tax on online transactions effective Jan 2021

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SALES TAX AND RETT FORECAST

Growth In: 2020 Base 2021 Budget 2022 Plan 2023 Plan Sales Tax

  • 16.1%
  • 0.5%

+6.0% +5.7% RETT

  • 20.8%
  • 5.4%

+6.0% +5.7%

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RTA SALES TAX (IN MILLIONS)

$931 $976 $1,022 $1,071 $1,124 $1,169 $1,185 $1,186 $1,237 $1,254 $1,053 $1,047 $1,110 $1,174

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

P r o j e c t e d

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PROPOSED 2021 OPERATING FUNDING

(IN MILLIONS)

Previous Proposed Change % Change CTA $902.0 $671.3

  • $230.7
  • 25.6%

Metra $444.9 $340.5

  • $104.4
  • 23.5%

Pace $182.4 $141.1

  • $41.3
  • 22.6%

ADA Paratransit $193.3 $165.7

  • $27.6
  • 14.3%

Debt Svc and JSIF $84.0 $90.3 +$6.3 +7.5% RTA Agency $36.3 $19.0

  • $17.3
  • 47.7%

Total $1,842.9 $1,427.9

  • $415.0
  • 22.5%

Includes sales tax, PTF, ICE, and RETT.

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SYSTEM-GENERATED REVENUE RECOVERY RATIOS

2020 Requirement Proposed 2021 CTA 54.75% 54.75% Metra 52.5% 52.5% Pace 30.3% 30.3% Region 50.0% 50.0% ADA Paratransit 10.0% 10.0%

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2021 CAPITAL PROGRAM SOURCES

(IN MILLIONS)

Federal $681.3 State Bonds $147.1 State Pay-Go $227.0 Service Boards/Local $220.7

$1.276 billion

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FRAMEWORK ORDINANCE RECOMMENDATION

  • Adopt the Framework for Transit Capital

Investments as written.

  • Program the 2025 PAYGO and federal formula

capital funds in a regional set-aside allocated to RTA until such time as a new process for allocating these funds can be established.

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2021 CAPITAL PROGRAM ALLOCATION

(IN MILLIONS)

CTA $825.8 Metra $386.4 Pace Suburban Service $59.9 Pace ADA $4.0

$1.276 billion

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5 YEAR CAPITAL PROGRAM BY FUNDING SOURCE

(IN MILLIONS)

Federal $3,354 State Bond $1,073 State PAYGO $1,135 RTA Funding $142 Service Board/Local $450

$6.154 billion

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2021 BUDGET CALENDAR

  • May 21

Board Adoption of Budget Call

  • July

Release of Preparatory Funding Amounts

  • Sep 10

Presentation of Proposed Funding Amounts to RTA Board

  • Sep 15

RTA Act funding allocation deadline

  • Oct 16

Submission of Proposed Service Board Budgets and Capital Programs

  • Oct/Nov/Dec

Public Hearings and County Board Presentations

  • Nov 15

Statutory Date for Submission of Service Board Adopted Budgets

  • Nov 19

Transit Agencies Budget Presentations to Finance Committee

  • Dec 17

Regional Budget Considered for Adoption

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  • 7d. TRAVEL EXPENSE

REIMBURSEMENTS

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8. NEW BUSINESS

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9. EXECUTIVE SESSION

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9a. IOMA SECTION 2(C)(21) - DOCKET REVIEW

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NEXT MEETING AND ADJOURNMENT

The next meeting of the RTA Board of Directors is scheduled for Thursday, October 15. We will advise you of the location or virtual nature

  • f this meeting as the date approaches and the

status of the COVID-19 situation is updated.

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RTAChicago.org RTA “Ride On.” Blog - RideOnRTAChicago.com Facebook.com/ChicagoRTA @RTA_Chicago @RTA_Chicago Youtube.com/RTAChicagoland

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STAY CONNECTED

9/10/2020 Meeting of the RTA Board of Directors