Post on 04-Jul-2020
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Review of FY 2020 Financial Projections & Preliminary FY 2021 Financial Outlook
Budget & Finance CommitteeApril 28, 2020
Joseph G. CostelloChief Financial Officer
Sherry FosterInterim AVP, Business Planning & Analysis
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FY 2021 Budget and Financial Planning Process Calendar
Finance Department
Date Subject
Apr 14 • Briefing on Agency Preparedness – COVID-19
Apr 28 • Approval of Financial Standards for FY 2021 Budget and Twenty-Year Financial Plan Process
• Briefing on FY 2021 Outlook and FY 2020 Projections
May 26 • FY 2021 Budget and Financial Planning Process – Capital Budget Overview
Jun 23 • FY 2021 Budget and Financial Planning Process - Operating Budget Overview
• FY 2021 Budget and Financial Planning Process – Departmental Presentations
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FY 2021 Budget and Financial Planning Process Calendar (Cont.)
Finance Department
Date Subject
Jul 7 • Departmental Budget Reviews• Briefing on FY 2021 Budget and Financial Planning Process - Draft FY
2021 Annual Budget & Twenty-Year Financial Plan
Aug 11 • Approval to Distribute Proposed FY 2021 Annual Budget and Twenty-Year Financial Plan to Service Area Cities for Review
August • Briefing for Service Area City Managers and Finance Directors
Aug 25 • DART Presentation of Proposed FY 2021 Annual Budget and Twenty-Year Financial Plan to the service area cities
Sep 22 • Board Approval of FY 2021 Annual Budget and Twenty-Year Financial Plan
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• Financial Plan Priorities• Order of Magnitude• Summary• Potential Resulting Key
Performance Indicators
Presentation Outline
Finance Department
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Financial Plan Priorities
Finance Department
• The Financial Plan demonstrates the financial sustainability of the agency with the following priorities. SGR: Preserve the capital assets of the agency (state-of-
good-repair). Workforce: Retain agency institutional knowledge and
expertise. Service: Provide the highest levels of effective mobility
service.
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Financial Plan Priorities (continued)
Finance Department
• The potential budget and financial plan actions, below, preserve the financial sustainability of the agency within these priorities as follows:Action (priority)o Secure maximum federal and other funding. (All)o Draw on agency reserves. (All)o Defer projects other than state-of-good-repair projects.
(SGR)
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Financial Plan Priorities (continued)
Finance Department
• Retain employees required to provide service. (Service)• Achieve operating budget savings through non-personnel
cost reductions, program deferrals, and personnel related cost constraints. (Workforce)
• Review SGR projects for effectiveness. (All)• Modify service levels as appropriate for existing demand.
(All) • Examine personnel and procedures for efficiencies and take
actions necessary to enact. (All)
7Finance Department
l Order of Magnitude ~----J I Change from FY 2020 Financial Plan ! ' .................................................................................................................................................................................... .;
I Positive (Negative) Impact in Millions I
!··························································:·················································: ...................................................................... .1 i FY 2020 i FY 2021 i 20 - Year Plan
! Revenues: I I ----+-! -!--------------------------------------------------------------------------------------------------i _____________________________________ ---,i_ ---
!::::::::::!:~::~::~:::::========== (~~~::;: I (~~~~:~: I ($1;:~:::: I
: ................................................................................................................................................... , ........................................................ .l ................................................ i ....................................................................... : I Operating Cost: COVID-19 Increase I ($6.1) I $0.0 I ($6.1) I
l__ ___ ___ ___ __ __ _ _________________________ L_ ___ ___ ___ ___ __i __ _ ________ J _____________________ :
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Operating Expense Operating Cost- COVID 19 Increase FY 2020
Increase temps for cleaning (3.2)
Increased emergency costs - Cleaning (0.4) MATA funding (0.4) Heroes/Hazard Pay (1.7) Work from Home (0.5) Additional Operating Expense (6.1)
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Sales Tax Loss
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Sales Tax Receipts (in Millions)
~~~~~##~~#~~~~~~~~~~ - Aproved Budget - Proposed Budget
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I April - September 50% Loss Approved Proposed Incremental
Year Budget Budget Loss FY20 628.1 470.5 (157.7) FY21 653.3 470.5 (340.5) FY22 686.0 522.3 (504.1) FY23 727.2 590.3 (641.0) FY24 763.6 679.0 (725.6) FY25 794.2 746.9 (772.8) FY26 818.0 806.8 (784.1) FY27 818.5 807.3 (795.3)
11Finance Department
Order of Magnitude Change from FY 2020 Financial Plan
------------------------------------------------- ---------------------------------------------------------------------- ----------------
Positive (Negative) Impact in Millions ....................... .................................... , ..................................................................................
FY 2020 FY 2021 20 - Vear Plan
Operating Cost: $14.8 $39.4 $628.9
• Non-Service & Non- 7.3 19.3 Personnel Reductions
• Attrition, Bonus, & Merit 7.5 20.2 Raise Reductions
:
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CARES Act Funding
• On March 27, President Trump signed the CARES Act into law.
• FTA allocated $25B to grantees receiving formula funds.
• The Dallas Area Urbanized Area (UZA) was allocated $318,629,129. • DART’s allocation was $229,627,520.
• DART is working with FTA to file our grant application for operating expense reimbursement beginning on January 20, 2020.
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] Operating Costs i
Impact in Millions :
I :
i !
I I
FY 2020 FY 2021 , .. I
Personnel i 2.8 5.4
• Hourly Open 5.1 I 11.9 -<·
• Salaried Open ! (2.8) I (7.6) • •••o .. o•••o•O o o•oo 0 .... - - .. .... .. 0 ....
j
Less Budgeted Turnover 5.0 9.7 i : i ,-
Personnel ,_
• Eliminate positions - Open Positions 5.0 : 9.7
• Merit elimination J. 8.0 I
• Bonus elimination : 2.5 2.5 i
• Personnel Reductions 7.5 20.2 . •.
- - -j-Non-personnel I
Consulting I 2.0 1.5 i
Outside Training I 1.2 1.0 Travel i 0.7 0.6 !
Inflation 10.3 Other 3.4 5.9
:
Non-personnel Reductions 7.3 19.3 Total Reductions 14.8 39.4
14Finance Department
[ __________________________________________________________ 0 rd_e r ___ o~ ___ Mag n_ it u_d_e _______________________________________________________ __J
1 ---i:s~;~=-~~:;a:~:i°1::~:a~c:1ri~~;s-·-1 FY 2020 i FY 2021 i 20 - Year Plan !
------------------------------------------------------------------------------------------------------------------------+----------------------------------------------j _______________________________________ J __________________________________________________________ i I Capital Projects (cash flow): i $96.8 i $270.6 I ($137.6) I i--------------------------------------------------------------------------------------------------------------------------i-------------------------------------------------i----------------------------------------+----------------------------------------------------------1
! • D2 ! $79.2 ! $250.3 ! ($150.6) !
I • Streetcar Extension 1 so.6 1 $8.5 r ($18.3) I l=-~--=·=·=-~-Other _ Ca-pita ___ Projects --~--~--~--t-~--=-~--=--$17 .0 --1=··--·=··~ $11. 9---1---~-=--~-=--~-=--~ $31.3 __ j
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Capital Projects
Finance Department
Life to date D2 Expenditure FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Total
Current
Budget $15 $107 $312 $355 $355 $226 $42 $1,413
Grant Fund ing $100 $100 $100 $300
Debt $100 $120 $240 $400 $240 $1,100
Three Year Deferral
Budget $15 $6 $5 $5 $113 $341 $388 $393 $251 $47 $1,563
Grant Fund ing $150 $200 $150 $150 $650
Debt $140 $120 $150 $100 $240 $130 $880
Life to date Streetcar Expenditure FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Total
Current
Budget $0 $1 $8 $32 $37 $18 $96
Grant Fund ing $24 $24 $48
Debt $48 $48
Five Year Deferral
Budget $0 $1 $10 $38 $44 $22 $114
Grant Fund ing $29 $29 $57
Debt $57 $57
16Finance Department
Order of Magnitude Change from FY 2020 Financial Plan
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Positive (Negative) Impact 1n Millions !
FY 2020 j FY 2021 I 20 - Year Plan ]
Finance Borrowing ($100.0) ($120.0) ($211.0)
Debt Service $0.8 $8.7 $414.7
Reserves $0.0 $0.0 $66.7
Federal Relief (net of $0.4m to MATA) $174.9 $6.5 $229.2
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Summary
Finance Department
In millions FY 2020 FY 2021 20-year Impact
Sales tax ($157.7) ($182.8) ($1,309.9)
Passenger revenues ($24.5) ($22.0) ($46.5)
Increased operating costs ($6.1) $0.0 ($6.1)
Total financial impact ($188.3) ($204.8) ($1,362.5)
Operating cost savings $14.8 $39.4 $628.9
Capital project deletions $17.0 $11.9 $31.3
Streetcar central link deferral $0.6 $8.5 ($18.3)
D2 deferral $79.2 $250.3 ($150.6)
Long-Term Debt Issued ($100.0) ($120.0) ($211.0)
D2 Grant $0.0 $0.0 $350.0
Reserve Adjustment $0.0 $0.0 $66.7
Debt service changes $0.8 $8.7 $414.7
Fed relief (net of $0.4 to MATA) $174.9 $6.5 $229.2
Other Misc. $0.2 $0.0 $5.5
Total offset $187.5 $205.2 $1,346.3 D
Net change ($0.8) $0.3 ($16.2)
18Finance Department
Potential Resulting Key Performance Indicators
FY 2020 FY 2021 20 - Year Plan
Ratio:
• Internal 1.41 1.60 1.24
• External 2.67 2.76 2.49
Cash Ending Balance:
• Unrestricted (in millions) 528.3 500.3 183.7
Total (in millions) 750.3 684.0 442.8