Q1 Financial Performance Report June 20, 2019 NO ACTION REQUIRED - - PowerPoint PPT Presentation

Q1 Financial Performance Report

June 20, 2019

NO ACTION REQUIRED TODAY

PRESENTATION FOR: Information | Feedback | Discussion

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Executive Summary – 2019 Q1 Performance

• Tax revenues closely tracking budget.
• Capital spending lower than budget due to weather impacts,

slower right of way acquisition, and other factors.

• Operating spending currently lower than budget, continues to

increase year-over-year at a rate outpacing CPI.

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Executive Summary – Financial Projections Long Term Outlook

• Capacity as currently projected remains sufficient

to fund voter-approved program.

• Long term capacity could be under stress due to

continued hot construction and real estate market, and higher operating cost growth.

Q1 Financial Performance

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2019 Q1 Revenue & Financing Performance

• Total Q1 revenues of $496.7M

are 2% below budget mainly due to a delayed federal grant drawdown of $19.5M for Lynnwood Link

• Q1 tax revenues of $429.3M are

1% above budget

• Revenues are forecasted to

meet annual budget of $2.4B

($M)

$507 $497 $2,422 $2,422

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2019 Q1 Budget 2019 Q1 Actuals 2019 Budget 2019 Forecast

7 $401 $303 $2,280 $2,188

$- $500 $1,000 $1,500 $2,000 $2,500 Q1 Budget Q1 Actuals 2019 Budget 2019 Forecast

($M)

2019 Q1 Capital Project Performance - System Expansion

$102M or 25% below budget. Projected to be at 96% of budget at year- end

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2019 Q1 Capital Project Performance - System Expansion (continued)

Main drivers of performance variance:

• Significant adverse weather conditions impacted construction

performance

• Protracted negotiations with GCCM contractors caused delay in

start of early construction work for Lynwood Link Extension

• Protracted negotiations with property owners resulted in delays in

ROW acquisition (Lynnwood and Downtown Redmond)

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• LRV fleet expansion manufacturer was challenged meeting Q1

milestone, resulting in no payment

• Prolonged negotiations on agreements and settlements with cities,

WSDOT, and contractors delayed planned payments Despite the delays in the first quarter, it is anticipated that progress will pick up in subsequent quarters to maintain year end projection/performance at 96%

Main drivers of capital project performance variance (continued)

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2019 Q1 Capital Project Performance - Non-System Expansion

$5 $4 $39 $34

$- $5 $10 $15 $20 $25 $30 $35 $40 $45 Q1 Budget Q1 Actuals 2019 Budget 2019 Forecast

$4 $1 $26 $36

$- $5 $10 $15 $20 $25 $30 $35 $40 Q1 Budget Q1 Actuals 2019 Budget 2019 Forecast

$1 $1 $8 $8

$- $1 $2 $3 $4 $5 $6 $7 $8 $9 Q1 Budget Q1 Actuals 2019 Budget 2019 Forecast

• Escalator Modernization program

procurement delay; PIMS and TOD projects are behind budget schedule.

• Expected 88% at year-end.
• Five projects are behind budget

schedule; DSTT SOGR work pending agency agreement on scope.

• Expected 140% at year-end due to

early delivery of 12 buses.

• Delay in procurement of the SharePoint

Upgrade and the Operations Performance Reporting Software.

• Expected 98% at year-end.

Enhancement Projects

$1.4M or 28% below budget

State of Good Repair

$2.9M or 78% below budget

Administrative Projects

$0.2M or 20% below budget

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2019 Q1 Transit Modes Operating Budget Performance

• Fare Revenue

$24 $23 $103 $98

$0 $20 $40 $60 $80 $100 $120 Q1 Budget Q1 Actuals 2019 Budget 2019 Forecast Dollars (Millions)

• 4% below budget
• Ridership lower than budget across

all modes, partially due to snow storms in February.

• Expected to be at 95% of budget at

year-end

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2019 Q1 Transit Modes Operating Budget Performance

• Expenditures
• 8% under budget in Q1
• Main drivers:
• Lower security hours
• High vacancies
• Lower spare parts

consumption

• Delayed rail grinding
• 12% year over year cost growth
• Year-end performance is

expected to meet or potentially exceed budget

$89 $82 $354 $353

$0 $100 $200 $300 $400 Q1 Budget Q1 Actuals 2019 Budget 2019 Forecast Dollars (Millions)

Thank you.

soundtransit.org