Agenda - Council Work Session - 02/23/2016

Home

revenues and expenses over four years • Mitigate gaps in the transit financial structure over time • Minimize impact on Council property tax levies • Maintain reserves at policy levels •The Transportation Division operating budget for 2015 includes a planned use of reserves and includes a number of assumptions: * Maintain 2014 service levels and begin the A Line BRT in fall Quarter 2015 * Meet a projected 8% ridership growth in the Metro Mobility ADA program * Attain Metro Transit ridership of 87.5 million, including 10.0 million for the METRO Green Line * Pay an average diesel fuel cost of $3.35 per gallon and $3.75 per gallon for gasoline * Receive operating funding from the Counties Transit Improvement Board for METRO Blue Line, Northstar, METRO Green Line, I -35W South BRT Express, Cedar Avenue BRT Express, and METRO Red Line BRT * Complete Project Development and seek entry into the next federal phase (engineering stage) for the Green Line Extension * Include full -year METRO Green Line light rail service * Do not increase regional fares and continue review of the regional fare policy METRO TRANSIT BUS SERVICE Metro Transit is the largest operator of regular -route bus service in the Twin Cities region and is a key part of the Council's commitment to operating quality transit service in an inclusive, customer -focused and efficient manner. Metro Transit is one of the country's largest transit systems, providing more than 90% of the regular -route public transportation in the Minneapolis -Saint Paul metro area. The Metro Transit budget for bus operations reflects expenses of $319.7 million, with a planned use of reserves of $7.0 million. Major sources of revenues include passenger fares, Motor Vehicle Sales Tax revenue, and the state General Fund. Property taxes of $2 million are included as the source of funding to reflect the transfer of Community Development's transit -oriented development unit to Metro Transit. Major sources of expenses include salaries and benefits, fuel, allocations from Regional Administration, and materials and supplies. Expense increases in 2015 are attributed to additional employee costs for planned service increases expected in the fall quarter 2015 for the A Line BRT, service for overloads, bridge -support bus service that substitutes for light rail, diesel fuel, Council support services for computer systems and maintenance sup- port, and support for the Strategic Initiatives Department and additional police operations. METRO TRANSIT BLUE LINE LIGHT RAIL The METRO Blue Line operates between downtown Minneapolis, MSP Airport and the Mall of America. Metro Transit's operating budget for the METRO Blue Line reflects expenses of $31.9 million, with a planned use of reserves of $0.1 million. Major sources of revenue include passenger fares, the state General Fund, and a 50% net subsidy contribution from the Counties Transit Improvement Board. Major sources of expenses include salaries and benefits; electricity expenses for light rail vehicle propulsion; allocations for shared Metro Transit administrative services, materials and supplies; and allocations from Regional Administration. METRO TRANSIT NORTHSTAR COMMUTER RAIL The Northstar Commuter Rail operates between Big Lake and Target Field in downtown Minneapolis, with six stations along the route. Weekday service consists of five trains serving Minneapolis and one train serving the reverse commute. The Metro Transit operating budget for commuter rail reflects expenses of $17.6 million, with a planned use of reserves of $3 million. C-4