Overview of Transit Finance Metro Cities Transportation & - PowerPoint PPT Presentation

Overview of Transit Finance Metro Cities Transportation & General Government Policy Committee August 12, 2019

Regional Transit Services Metropolitan Council • Bus Regular Route • METRO Blue Line and METRO Green Line LRT • METRO Red Line, A Line, C Line BRT • Northstar Commuter Rail • Metro Mobility • Contracted Bus Regular Route • Transit Link Dial-a-Ride • Metro Vanpool Suburban Transit Providers (Opt Outs) • Bus Regular Route and dial-a-ride 2

Transit Operating Funding Sources • Motor Vehicle Sales Tax (MVST) – Metropolitan area transit receives 36% of statewide MVST • State General Fund – Legislatively appropriated for Metro Mobility and transit purposes • Federal Funds – Formula capital funds, can be used for preventive maintenance in operating budget • Fares – Passenger fares from all services • Local and Other – Counties – Advertising and other revenue 3

Transit Capital Funding Sources • State bonds • Regional Transit Capital bonds • Federal Funds • County Sales Taxes • Regional Rail Authorities/Other Local 4

Regional Transit Capital • Source of capital funds for basic transit system • Legislature authorizes the sale of bonds • Debt service paid with property taxes levied by Council • Levy paid by Transit Capital Levy Communities 5

Governor’s Budget Proposal 2019 • 1/8-cent metro area sales tax – $770 million over 10 years to maintain and expand the regional bus and transitway system • Raise Motor Vehicle Sales Tax (MVST) from 6.5% to match general rate of 6.875% – $205 million over 10 years • Separate General Fund appropriations for Metro Mobility and transit operations • $230 million in general obligation bonds over 10 years for transit 6

2019 Session Outcome • Separate General Fund line items for Metro Mobility and transit operations – One-time funding in FY2020-21 for Metro Mobility to meet need • No new funding for transit operations • New Regional Transit Capital (RTC) bonding was authorized • No capital investment bill 7

State General Fund Appropriation General Fund Appropriation SFY 2020 2021 2022 2023 Metro Mobility Base $ 57.17 $ 57.17 $ 56.42 $ 55.98 One Time $ 23.17 $ 13.00 $ - $ - Subtotal $ 80.34 $ 70.17 $ 56.42 $ 55.98 Light Rail Base $ 25.51 $ 25.51 $ 25.51 $ 25.51 One Time $ - $ - $ - $ - Subtotal $ 25.51 $ 25.51 $ 25.51 $ 25.51 Commuter Rail Base $ 7.15 $ 7.15 $ 7.15 $ 7.15 One Time $ - $ - $ - $ - Subtotal $ 7.15 $ 7.15 $ 7.15 $ 7.15 Bus Base $ - $ - $ - $ - One Time $ - $ - $ - $ - Subtotal $ - $ - $ - $ - Pass Through (MVTA) $ 0.20 $ - $ - $ - 8 TOTAL $ 113.19 $ 102.82 $ 89.07 $ 88.63

9 Motor Vehicle Sales Tax – SFY 16-21 Forecast Trend $355 $335 $315 $295 $275 $255 SFY 16 SFY 17 SFY 18 SFY 19 SFY 20 SFY 21 SFY 22 SFY 23 16-Feb 16-Nov 17-Feb 17-Nov 18-Feb 18-Nov 19-Feb Dollars in millions

Structural & Financial Position State Fiscal Years 2020 Proposed Budget & 2019 2020 2021 2022 2023 Feb-19 State MVST Forecast Base Revenues for Operations 547 576 598 609 626 Operating Expenses 588 619 647 668 691 Structural Position (41) (43) (49) (59) (65) Non-Base State Appropriation 40 23 13 - - Available Reserves 2 20 35 12 - Financial Position - - (1) (47) (65) 10

Financial Position by Fund State Fiscal Years 2019 2020 2021 2022 2023 Financial Position - - (1) (47) (65) Metro Mobility - - (1) (35) (42) Rail Operations - - - - (5) Bus Operations & Planning - - - (12) (18)

Proposed 2020 Transportation Budget Expenses Revenue $621.5M $621.5M Metro Transit Bus Federal Metro State $358.8 $37.7 Transit $113.9 MVST 58% 6% Capital 19% $267.0 $23.3 43% 4% Metro Green Line Mobility Fares $43.5 $94.3 $113.2 7% 15% 18% Regular Blue Line Route $40.6 $23.1 Counties Northstar 7% 4% $37.9 $20.8 Other Transp. 6% Transit Link 3% Funds Other Planning Reserves $8.3 Transfer $8.8 $6.9 $19.6 1% $25.3 1% 1% 3% 4% 12 12