Proposed 2011 Budget

Board Overview
September 23, 2010
 Program Realignment & 2011 Budget
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ‐‐‐‐‐> 2040

Operations
Annual Budget Capital

Operations
TIP CAPITAL (portion of project approved by board)

Board Focus  Program/Fin Plan

2
 Revenue Down $3.9 b. (-25%)
2009-2023

Total Tax Revenue *

Jul-08 Aug-09 Aug-10 Aug-09 Aug-10 Aug-09 Aug-10
S o o s
Snohomish 2,041
,0 1,509
,509 1,458
, 58 (532))
(53 (583) ((26.1%)
6 %) ((28.5%)
8 5%)
North King 4,111 3,494 3,451 (617) (660) (15.0%) (16.1%)
South King 2,757 2,241 1,906 (515) (851) (18.7%) (30.9%)
East King 4,150 3,281 3,058 (868) (1,092) (20.9%) (26.3%)
Pierce 2,684 2,107 1,991 (577) (692) (21.5%) (25.8%)
T
Totall 15 742
15,742 12 633
12,633 11 865
11,865 (3 109)
(3,109) (3 877)
(3,877) (19 7%)
(19.7%) (24 6%)
(24.6%)

* Includes Car Rental Tax

*Millions of year-of-expenditures dollars

3
 Proposed 2011 Budget
• Challenge
– Severe national recession has reduced agency
revenues by 25%
• Reality
– All elements of ST2 pprogram
g no longer
g affordable within
original 15-year timeframe
• Response
p
– Recommended program re-alignment which sets path to
implement
p regional
g system
y within constrained resources
4
 ST2 Financial Policies
If subarea projected expenditures exceed projected revenues
by 5%, Board shall:
• “Correct the shortfall through use of such subarea’s uncommitted
funds and/or bonding capacity which is available to the subarea;
and/or
• Scale back the subarea plan or projects within the plan to match a
revised budget; and/or
• Extend the time pperiod of completion
p of the subarea pplan; and/or
• Seek legislative authorization and voter approval for additional
resources.”

5
 Guiding Principles in Facing New Fiscal Reality
• Lessons learned from Sound Move
– Face
F ffullll scope off problem
bl
– Be transparent
– Exhibit fiscal responsibility
• Opportunity to
– re-affirm core mission and most critical deliverables
– re-examine all assumptions and approaches
– Seek operational efficiencies
• Still early in design for many projects – cost risks remain

6
 Priorities For Realignment
g
• High priorities
– Best achieve the stated goals of voter approved system plan
– Projects underway or near completion
– Maintenance of assets
• Low priorities
– Lowest utility in achieving goals of voter approved system plan
– Discretionary programs
– Reserves now ready for release
– Projects
P j t with ith undefined
d fi d scope or uncertain
t i partner
t commitments
it t
– Low ridership services

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 Program Realignment Categories
11. Design & Construct as planned
2. Keep Moving: schedule and cost uncertainties &
risks
3. Retain only limited funding to develop options
4. Suspend – no activity, defund from finance plan
5. Delete from program
p g

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 Proposed North Corridor Realignment:
(Snohomish & North King County Subareas)

• Design
g & Construct as Planned
– Projects in construction, under contract
– U Link - Mountlake Terrace Freeway Station
– Northgate - Edmonds Permanent Station
• Keep Moving
– Northgate-Lynnwood HCT C
– Mukilteo Station south platform
• Suspend
– Edmonds ST2 Station

9
 Proposed East Corridor Realignment
(East King County Subarea)

• Design
g & Construct as Planned
– Projects in construction, under contract
– Kirkland Transit Center, R8A
• Keep Moving
– East Link
• Limited funding
f
– Overlake-Redmond PE
• Suspend
– Passenger Rail Partnership on Eastside rail corridor
– Renton HOV direct access
– Bothell TC 10
 Proposed South Corridor Realignment
(South King & Pierce County subareas)

• Design & Construct as Planned

– Projects in construction, under contract
– D-Lakewood
– Sounder easements
• Keep Moving
– Link South 200th (Accelerated)
– Tacoma Link extension
– Sounder track work
– Tukwila Sounder Station
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 Proposed South Corridor Realignment
(S th King
(South Ki & Pierce
Pi County
C t subareas)
b )

• Limited funding
– Link South of 200th (awaiting options review by board)
– P.E./ROW
P E /ROW S.S 272nd to Tacoma Dome
– South King Sounder Station Access projects
• Suspend
– Sounder Platform extension

12
 Proposed Operating Cost Savings
• Regional Express Bus
– Overall 2011 service up 17,000
17 000 hours (2
(2.5%)
5%)
– 2011 service will rise more slowly than anticipated in 2010 SIP
due to service reductions
• 78,000 of original 100,000 ST2 new hours will be implemented
• Other route changes, restructuring and reductions
• Sounder Commuter Rail
– 1 year delay of four new ST2 Sounder round trips

13
 System-wide
System wide Savings
• $112 million cuts in system
system-wide
wide programs
– Agency admin
– Research and Technology
– Fare Integration
– ST3 Planning
– Insurance
• Delete
– System Access (grants) $88 m.
14
 Realignment Next Steps
• Starting point for Board and public review
• By end year 2010, finalize current status of all
projects
• 2011 forward…
– Project-by-project updates and reviews as cost and
revenue information changes

15
2010 Accomplishments
• Implemented 66k hours of
ST2 new bus service
• Executed agreements to add
additional Sounder
commuter rail service
• II-90
90 Stage 2 groundbreaking
• Edmonds Station
groundbreaking
• PE on East Link
• AA on Lynnwood extension
• Burien TC partnership
• Carry est. 25m passengers

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 FY 2011 Budget
Prepares for Continued Transit Expansion
• Still one of nation’s
nation s largest transit capital programs
• Selectively add resources to
–SSupportt andd manage capital
it l projects
j t
– Continue safe, effective operation and maintenance of
ST services
– Keep assets in state of good repair

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 2011 Proposed Budget
$(000)
Revenue $844,339
Miscellaneous
Interest Earnings Revenue
1% 3%

Farebox Revenue
5%
Retail Sales &
Use Tax
64%
Expenditures
p $1,091,594
Federal Grants
19%

Agency
Rental Car Tax Administration
0% 15%

Motor Vehicle
Excise Tax
8%
Project Delivery
68% Service Delivery
17%

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Proposed
p 2011 Project
j Delivery
y
($000s)

Other Agency
$744
$744,567
567
1%
Service Delivery
6%

Regional
Express Bus
5% Link Light Rail
73%

Sounder Commuter
Rail
15%

19
 2011 Capital Highlights
• University Link tunneling underway
• Final design North Link
• N th Corridor
North C id HCT alternatives
lt ti analysis
l i
• Design East Link and Link to South 200th
• Open
– Kirkland Transit Center
– Mountlake Terrace Freeway Station
• Purchase 25 new ST express buses
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Proposed
p 2011 Service Deliveryy
($000s)

Sounder Commuter
Rail $187,077
,
18%

Central Link Light

Rail
27%

Tacoma Link Light

Rail
2%

Contingency ST Express Bus

1% 52%

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 Carrying More Riders Each Year

22
 Proposed 2011 Agency
Administration
($000s)
Capital
Administrati
Administrativee Replacement $159,950
Capital 25%
3%

Net Staff Operating

Budget
15%

Net Non-Operating
Expenses
4%

Emergency/Loss Debt Service

Reserve 47%
6%

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 Budget Schedule
• Budget Kickoff- Sept 23rd
• Board budget workshop- Sept 30
• Executive Financial Plan review- Oct 7
• Capital and Ops Committee reviews - Oct-Nov
• Public
• Open Houses – Oct
• Public Hearing
Hearing- Nov 4
• Executive Committee - Dec 4
• Board budget adoption- Dec 16
• Ongoing – phase/gate actions to monitor and
review program changes

24
 Budget Workshop
• Staff present additional Proposed 2011 Budget
details
• Introduction of realignment tool – 5 colored status
indicators
• Board
B d initial
i iti l input
i t sought
ht

25
Fulfilling the Sound Transit Promise
• Retain commitment to build
build-out
out system
• Quality transit services in all modes
• Transparent,
T t realistic
li ti planning
l i kkey ffor success

-end-
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