Agenda - Council Work Session - 02/23/2016

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Major sources of revenue include passenger fares, Motor Vehicle Sales Tax revenue, and contributions from the Counties Transit Improvement Board, Sherburne County, and Greater Minnesota MnDOT. Major sources of expenses include salaries and benefits, diesel fuel, materials and supplies, and a professional services contract with Burlington Northern Santa Fe (BNSF) to operate the commuter rail. Operations of the commuter rail are performed under contract by BNSF with maintenance performed by Metro Transit. METRO TRANSIT GREEN LINE LIGHT RAIL The METRO Green Line (Central Corridor Light Rail) began operations in June 2014 with service between downtown Saint Paul and downtown Minneapolis via University Avenue and the University of Minnesota. The corridor also travels through the State Capital Complex and the Midway area. The Metro Transit METRO Green Line operating budget reflects a full year of revenue -service expenses of $35.5 million. Major revenue sources will include passenger fares, the state General Fund and a 50% net subsidy contribution from the Counties Transit Improvement Board. Major sources of operating 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. CONTRACTED REGULAR ROUTE Metropolitan Transportation Services provides regional transit service through its contracted regular -route program. MTS contracts with private vendors to operate regularly scheduled service throughout the metropolitan area. The 2015 program budget for the contracted regular -route program is $19.9 million, a 2% decrease from the 2014 budget. The decrease is driven by the Council's restructuring of bus service to connect to the Green Line to meet riders' needs as well as changes in bus sizes. Contracted Services will provide 16,000 more service hours than in 2014. C-5 TRANSIT LINK Metropolitan Transportation Services' Transit Link program provides unscheduled, demand -responsive transit service in portions of the metropolitan area. MTS contracts with private vendors to operate Transit Link service. The 2015 program budget for Transit Link is $6.7 million, an 8% increase over 2014. The increase is driven by cost inflation and a modest increase in service levels to better meet demand. METRO MOBILITY Metropolitan Transportation Services provides Metro Mobility transit service for certified riders who cannot use regular fixed -route buses due to a disability or health condition. The service offers dial -a -ride service to persons certified under the Americans with Disabilities Act. Service is provided by private vendors un- der contract with MTS. The 2015 program budget for Metro Mobility is $62.2 million, an increase of 3.8% over the 2014 adopted budget. Increased expenses are due to providing additional Metro Mobility service to meet demand. CAPITAL The Transportation Division capital budget reflects the primary priorities of (1) maintaining the current system by replacing vehicles according to fleet management plans and maintaining/repairing existing facilities, and (2) building transitways and expanding the bus system to meet future ridership and service demands. The 2015 capital program reflects the following assumptions: • Federal funding under the MAP -21 legislation will increase 1.5% to 2.5% per year. • Regional transit capital expenditures increase at 3.3% per year. • Inflation affecting construction and bus operations increase at 2.5% to 3.5% per year. •There will be additional rail maintenance needs with operations of the METRO Green Line and Green Line Extension.