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

Metro Cities Transportation & General Government Policy Committee August 12, 2019

Overview of Transit Finance

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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

Regional Transit Services

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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

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Transit Capital Funding Sources

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

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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

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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

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• 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

2019 Session Outcome

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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 $ - $ - $ - TOTAL $ 113.19 $ 102.82 $ 89.07 $ 88.63

Motor Vehicle Sales Tax – SFY 16-21

Forecast Trend

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Dollars in millions

$255 $275 $295 $315 $335 $355 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

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2020 Proposed Budget & Feb-19 State MVST Forecast 2019 2020 2021 2022 2023 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)

State Fiscal Years

Structural & Financial Position

Financial Position by Fund

2019 2020 2021 2022 2023 Financial Position

• (1)

(47) (65) Metro Mobility

• (1)

(35) (42) Rail Operations

• (5)

Bus Operations & Planning

• (12)

(18)

State Fiscal Years

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Proposed 2020 Transportation Budget

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

Expenses $621.5M Revenue $621.5M

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