Metropolitan Transportation Authority July Financial Plan 2006-2009 1 Metropolitan Transportation...

Metropolitan Transportation Authority July Financial Plan 2006-20091

Metropolitan Transportation Authority

July 27, 2005

MTA 2006 Preliminary Budget

July Financial Plan 2006 – 2009

DJC


Where the Dollars Come FromBefore Gap Closing and Other Actions

2005

Other Revenue

5%

State & Local

Subsidies7%

Toll Revenue

14%

Dedicated Taxes31%

Farebox Revenue

43%

2006

Other Revenue

5%

State & Local

Subsidies7%

Toll Revenue

15%

Dedicated Taxes30%

Farebox Revenue

43%

By Revenue Source (in millions)

Farebox Revenue $3,694

Toll Revenue 1,244

Other Revenue 425

Dedicated Taxes 2,569

State & Local Subsidies 583

Total $8,515

By Revenue Source (in millions)

Farebox Revenue $3,623

Toll Revenue 1207

Other Revenue 410

Dedicated Taxes 2,613

State & Local Subsidies 613

Total $8,466


Where the Dollars GoBefore Gap Closing and Other Actions

2006

Payroll39%

Other Expenses

2%

Non-Labor Expenses

22%

Overtime4%

Debt Service15%

Pension8%

Health & Welfare

10%

By Expense Category (in millions)

Payroll $3,481

Overtime 349

Health & Welfare 883

Pension 737

Debt Service 1,342

Non-Labor Expenses 1,990

Other Expenses 173

Total $8,955

Expenses exclude depreciation.

2005

Payroll40%

Health & Welfare

10%

Pension8%

Debt Service13%

Overt ime4%

Non-Labor Expenses

23%

Other Expenses

2%

By Expense Category (in millions)

Payroll $3,375

Overtime 353

Health & Welfare 806

Pension 643

Debt Service 1,080

Non-Labor Expenses 1,917

Other Expenses 161

Total $8,335

Expenses exclude depreciation.


February Financial PlanClosing Cash Balance

Before Gap Closing and Other Actions($ in millions)

$466$76

-$737

-$1,105

-$1,398

-$2,000

-$1,500

-$1,000

-$500

$0

$500

2004 2005 2006 2007 2008

The 2004 closing balance has been adjusted downward to $466 million to reflect the establishment of the $200 million Real Estate Stabilization Reserve.


July Financial PlanBaseline Before Gap Closing and Other Actions

($ in millions)

$507$833

$461

-$194-$1,077

-$1,453

-$2,500

-$2,000

-$1,500

-$1,000

-$500

$0

$500

$1,000

2004 2005 2006 2007 2008 2009

The 2004 closing balance has been adjusted downward to $507 million to reflect the establishment of the $200 million Real Estate Stabilization Reserve.


$466 $507

$76

$833

-$737

$461

-$1,105

-$194

-$1,398

-$1,077

-$1,453

-$2,000

-$1,500

-$1,000

-$500

$0

$500

$1,000Closing Cash Balance, July Financial Plan

Closing Cash Balance, February Financial Plan

February vs. July PlansClosing Cash Balances

Before Gap Closing and Other Actions($ in millions)

2004 2005 2006 2007 2008 2009


2005 2006 2007 2008 2009

February Plan Baseline $76 ($737) ($1,105) ($1,398) ($1,751)

Changes to the July Plan Effect of 2004 Results $85 $0 $0 $0 $0 Real Estate Tax Yields 365 31 34 52 80 Debt Service 128 59 58 29 (24) New State Revenues (Sales, MRT, DMV) 170 457 458 415 437 Service & Cleaning Enhancements (2) (10) (10) (10) (10) 2005 Security Measures (MTA, B&T, NYPD) (10) 0 0 0 0 Additional Agency Changes / Other (21) (97) (90) (166) (187)

Change in Cash Balance from Previous Year 42 757 461 0 0 Total Changes $757 $1,198 $911 $321 $297

July Plan Baseline $833 $461 ($194) ($1,077) ($1,454)

July Financial PlanReasons for Baseline Net Improvements

($ in millions)


$0

$200

$400

$600

$800

$1,000

$1,200

Millions

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mortgage Recording Tax Urban Tax

Annual Real Estate Tax Collections February Financial Plan

February Financial Plan

These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to suburban accounts.


Monthly Real Estate Tax CollectionsFebruary Financial Plan

Millions

$0

$20

$40

$60

$80

$100

$120

$140

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Budget - MRT & Urban

Actual - MRT & Urban


2005 Real Estate Tax CollectionsFebruary vs. July Financial Plan

$0

$200

$400

$600

$800

$1,000

$1,200

M illions

Feb Plan Actual Feb Plan July Plan Feb Plan July Plan


Jan - June July - Dec Jan - Dec

These figures do not include the MRT-1 rate increase. The reduction for the suburban transfer allocation (net -$26 million change) is reflected in the annual figure but not in the first and second half of the year figures.

$421

$606

$227

$631

$434

$996


$0

$200

$400

$600

$800

$1,000

$1,200

Millions

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


Annual Real Estate Tax Collections July Financial Plan

July Financial Plan

These figures represent gross collections. They do not include the MRT-1 increase, and they do not reflect transfers from MTA to suburban accounts.


“The longer bubbles are allowed to go unchecked the more painful they are.”

Stephen S. Roach, Chief Economist, Morgan Stanley

“There is no sign of it ending anytime soon.”

Joshua Shapiro, Chief US Economist, MFR Inc.

TUESDAY, JULY 26, 2005


2005 2006 2007 2008 2009

New Sales Tax 149 184 188 190 191

Increase in MRT-1 24 46 47 47 46

New Motor Vehicle Fees $0 $86 $71 $71 $71

Re-Estimate of Base Taxes (3) 91 102 107 129

State Appropriation of 2005 Tax Receipts 0 50 50 0 0

Total Changes $170 $457 $458 $415 $438

Favorable / (Unfavorable)

New State RevenuesChanges Since February Plan

($ in millions)


2005 2006 2007 2008 2009

Refunding Savings $8 $9 $9 $10 $10

Variable Rate Interest Savings 76 0 0 0 0

Capital Expense Timing 18 49 49 19 (34)

Cost of Issuance Savings 26 0 0 0 0

Total Changes $128 $59 $58 $29 ($24)

Favorable / (Unfavorable)

Debt ServiceChanges Since February Plan

($ in millions)


Service & Cleaning EnhancementsFunded By Recurring Debt Service Savings

($ in millions)

NYCT SubwayCleaning Initiatives: Track, Infrastructure and Stations $6.4

NYCT Bus / SIRAdditional Service to match increased SI Ferry Service $0.3

LIRRAdditional AM Peak Service and Early Afternoon Service $1.5from Penn Station

MNRExpanded Late-Night Service $1.5

TOTAL: $9.7

2005 2006 2007 2008 2009Debt Service Refunding Savings $8 $9 $9 $10 $10


2005 Security Measures

Heightened MTA-Wide Security Costs in 2005: $10 million

• Enhanced Police Visibility• NYPD, MTAPD and B&T BTO

• Increase in Subway Station Personnel At Prime Locations Trained in Evacuation Procedures

• Continued Employee and Customer Awareness Education• e.g. “See Something, Say Something” and “Eyes and Ears”


Additional Agency ChangesChanges Since February Plan

($ in millions)

2005 2006 2007 2008 2009

Inflation and Energy Adjustments ($15) ($74) ($121) ($155) ($209)

New Needs/Investments: Maintenance (26) (71) (42) (85) (75)Other New Needs (11) (9) (8) (10) (10)

2005 PEG Program Re-Forecast (3) (20) (11) (12) (11)

Toll/Farebox Revenue 20 26 28 35 34

Baseline Re-Estimates 5 39 62 55 80

Other 7 13 2 6 4

Net Change to Baseline ($21) ($96) ($90) ($166) ($187)


Reductions in Agency Budgets July Financial Plan

($ in millions)

2006 2007

Baseline

Re-Estimates

$39

2006 PEGs

$42

2007 PEGs

$46

Total Savings: $81 Total Savings: $108

Baseline

Re-Estimates

$62


Examples of Agency PEGs

● NYCT– Health, Welfare Savings: Elimination of Ineligible Employees, Retirees & Dependents– Central Electronics Shop Productivity Savings from Streamlining Operations, Use of Technology & Consolidation

● LIRR– Revaluation of Right-Of-Way Leased Line Fees– Crew Efficiencies Stemming from Reduction in On-Board Ticket Sales

● MNR– Increase Revenue Collection Through Expansion of Ticket Vending Machine Network– Process Review for Productivity Savings


Examples of Agency PEGs(continued)

● B&T– Reduce Arrest Processing Overtime– Reduce Administrative Positions

● MTAHQ– Administrative Savings from Headcount and Contractual Service Reductions– Police Overtime Efficiencies

● SIR– Operational Efficiencies Result from New Rail Control Center in October 2005


Reinvestment Fund

Proposed Amount: $481 million

2 Recommended Possible Uses:

• Platform Over the West Side Rail Yards to Support Mixed-Use Development

• Reduction in Pension Liabilities


2004 2005 2006 2007 2008 2009

July Plan Baseline $507 $833 $461 ($194) ($1,077) ($1,453)

Gap Closing Actions: Reinvestment Fund $0 ($481) $0 $0 $0 $0 Real Estate Tax Stabilization Account 0 0 200 0 0 0 2006 Program to Eliminate the Gap 0 18 42 46 63 73 2007 Increased Fare and Toll Yields 0 0 0 241 243 244 2009 Increased Fare and Toll Yields 0 0 0 0 0 256

Change in Cash Balance from Previous Year 0 0 (463) (222) 0 0 Total Changes $0 ($463) ($221) $66 $306 $573

July Plan Closing Cash Balance $507 $370 $239 ($128) ($771) ($880)

July Financial PlanWith Gap Closing and Other Actions

($ in millions)

The 2004 closing balance of $507 has been adjusted downward to reflect the establishment of the $200 million Real Estate Stabilization Reserve.


July Financial PlanClosing Cash Balance After Gap Closing and Other Actions

($ in millions)

$370$239

-$128

-$771-$880

-$2,000

-$1,500

-$1,000

-$500

$0

$500

$1,000

2005 2006 2007 2008 2009

Closing Cash Balance - After Gap Closing Actions *

* Includes additional 5% revenue increases in 2007 and 2009, consistent with prior plans.

Metropolitan Transportation Authority July Financial Plan 2006-2009 1 Metropolitan Transportation...

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