Metropolitan Transportation Authority Presentation...
Transcript of Metropolitan Transportation Authority Presentation...
Metropolitan Transportation AuthorityPresentation to
2019 J.P. Morgan Public Finance Transportation & Utility Conference
July 24, 2019
*This presentation is subject to the disclaimers on the following page and will be removed from the MTA Investor website on August 1, 2019.
Disclaimers• The information contained in this Investor Presentation has been prepared by the Metropolitan Transportation Authority
(MTA) to provide, for the convenience of persons and entities that may in the future consider investing in MTA's bonds, a brief overview of MTA, its operations and capital programs and its currently outstanding credits. It is not intended to and should not be used as a basis for making any investment decisions. Any decision to invest in bonds issued under any of MTA's multiple credits should be made only on the basis of a review of the preliminary official statement and final official statement or other disclosure materials (collectively, Disclosure Documents) provided to investors by MTA for the related bonds, which Disclosure Documents should be read in their entirety. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability as the information, opinions or conclusion expressed herein.
• Many statements contained in this Investor Presentation are forward‐looking statements rather than historical facts. Such statements are based on assumptions made by and information currently available to MTA. Because the forward‐looking statements are based on expectations about future events and economic performance, actual results may differ materially from those projected. The words "estimate", "projection", "plan", "forecast" or similar words are intended to identify such forward‐looking statements. All opinions, estimates projections, forecasts and valuations are preliminary, indicative and are subject to change without notice.
• The information provided in this Investor Presentation does not constitute an offer to sell or buy securities or the solicitation of an offer to sell or buy securities and should not be relied upon to provide specific offering information in connection with any issuance, sale, resale, or remarketing of bonds, notes or other municipal obligations.
• The information contained in this Investor Presentation is provided in summary form and does not purport to be complete.
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Who We Are, What We DoMTA’s essential transportation network in NYC Metro Area
• MTA is the primary mass transportation provider in the New York City metropolitan area, covering over 5,000 square miles and serving a population of over 15.3 million
• MTA’s Network includes:• New York City Transit• Manhattan and Bronx Surface Transit
Operating Authority (MaBSTOA) • MTA Bus Company• Staten Island Railway• Long Island Rail Road• Metro‐North Railroad• Bridges and Tunnels
• MTA serves the five boroughs of NYC and seven New York suburban counties and southern CT
• System Facts:• 2.6 billion annual ridership• 8.3 million average weekday paid rides• 2,939 bus route miles• 1,994 subway and commuter rail track miles• 741 stations (472 subway, 21 Staten Island, 124
LIRR, 124 Metro‐North)• 7 bridges• 2 tunnels
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2019 – Important Legislative Year for MTA
• New York State Enacted Budget – Provided New Revenues for Capital• Lockbox established (§ 553‐j of Public Authorities Law), will receive following revenues:
• Central Business District (CBD) Tolling Program (Article 44‐C of Vehicle and Traffic Law)• Real Estate Transfer Tax (RETT)• NY State Sales Tax• NY City Sales Tax
• Organizational and Related Provisions• Legislation amended §1279‐e of the New York Public Authorities Law, directing MTA to develop a
personnel and reorganization plan by June 30, 2019• AlixPartners hired as restructuring consultant, and submitted an MTA Transformation Plan to MTA• MTA directed to consider the findings and incorporate them into a revised personnel and
reorganization plan within 90 days of receipt• Comprehensive forensic audit of MTA capital program also required by legislation
• Must be completed by January 1, 2020
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Central Business District Tolling and Other Revenues• CBD Tolling Program
• MTA Bridges and Tunnels is directed to establish and operate the CBD Tolling Program in Manhattan• Monies from CBD Tolling Program to be deposited into a capital funding lockbox (CBDT Lockbox) and cannot
be commingled with any other MTA Bridges and Tunnels or MTA monies• Tolling to be implemented in the Manhattan CBD, south of and inclusive of 60th Street, but not including
the FDR Drive or West Side Highway• MTA Bridges and Tunnels must establish a Traffic Mobility Review Board (TMRB)
• TMRB will make recommendations regarding the CBD toll amounts to be established, no sooner than November 15, 2020 and no later than December 31, 2020
• Other Revenues Depositing to CBDT Lockbox• New York State Sales Tax
• Subject to appropriation• SFY 2019‐2020 ‐ $112.5 million (was not appropriated during 2019 Legislative Session)• SFY 2020‐2021 ‐ $150 million• SFY 2021‐2022 and every year thereafter – 101% of amount deposited prior year
• New York City Sales Tax• Not subject to appropriation by State Legislature• SFY 2019‐2020 ‐ $127.5 million• SFY 2020‐2021 ‐ $170 million• SFY 2021‐2022 and every year thereafter – 101% of the amount deposited prior year
• Real Estate Transfer Tax• Begins flowing July 1, 2019, can provide PAYGO to CBDT Lockbox
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MTA Flow of Funds
Transportation Revenue Bonds Gross Pledged Revenues
TBTA O&M(and Other
Adj)
Bridges and Tunnels
Toll Revenue
TBTA Bonds Debt Service
Available for Operations
TBTA Surplus
Non‐Pledged Revenues (Concession revenue Penn and GCT, and
Other)
FareboxRevenue(Transit, Bus,
Commuter Rail)
Other Operating
& Investment Income
Real Estate Tax (Urban Tax and Mortgage Recording
Tax)
Other State, Local and City Subsidies
DTF BondsDebt Service
TRB Bonds Debt Service
MMTOA(Sales Tax,
PBT, Franchise Tax and Other)
MTTF (Motor Fuel Tax, PBT, MV Fees)
PMT, PMT Replacement and Aid Trust
Receipts
General Transportation
Account
Subway Action Plan Account
Outer Borough Transportation
Account
New York City Transportation Assistance
Fund(FHV/Pool Veh Surcharges)
Pledged Revenue – Transportation Revenue Credit Non‐Pledged Revenue
Pledged TRB Revenue
MMTOADTF Excess
Available for Capital Projects
2020‐2024Capital Program and
Successors
Pledged to Capital
Real Estate Transfer
Tax
Central Business District Tolls
New York City Sales
Tax
New York State
Sales Tax
CBDT Lockbox
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Central Business District Tolling Capital Fund Distribution
CBDT Lockbox
Available for 2020‐2024 MTA Capital Program and Successor ProgramsMay be used to help fund MTA capital projects and/or pay debt service on bonds and notes issued to pay costs of capital projects
CBDT Program (Operated by MTA Bridges and Tunnels)Capital Costs
Maintenance of InfrastructureToll Collection System
Customer Service Center
NYC Transit(80%)
Long Island Railroad(10%)
Metro‐North(10%)
Priority given to:• New subway cars
• Track repairs• Signaling updates
• Accessibility measures
Priority given to:• Parking facilities
• Accessibility measures
Priority given to:• Parking facilities
• Accessibility measures
Central Business District Tolls Real Estate Transfer Tax New York City Sales Tax New York State Sales Tax
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MTA Transformation Plan
• Report by AlixPartners issued on June 30, 2019
• Key recommendations:• Eliminate duplicative functions across Agencies• Refocus agencies on service delivery, core safety, operations and maintenance activities and
centralize all support functions• Centralize all capital‐related functions into new central group for Capital Program planning,
development and delivery• Create new central engineering function reporting to new Chief Engineering Officer• Create new central customer communication function• Centralize all operating support functions• Centralize all human resource functions• Expand HQ senior leadership by adding Chief Operating Officer, Chief Transformation Officer,
Chief Engineering Officer, and an MTA Accessibility Officer
• Consolidation and efficiency targets of $370 million to $530 million on an annual basis have been identified
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• Negotiations underway for new labor contracts • Typically smaller unions follow the TWU pattern once that is settled
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MTA Update ‐ Labor and Pensions
• Funding Ratios for MTA Sponsored Pension Plans (as of January 1, 2018)• MTA Defined Benefit Pension Plan – 78.2% • MaBSTOA Pension Plan – 79.4%• LIRR Additional Pension Plan – 64.6%
Farebox Revenue38%
Toll Revenue13%
Other Revenue4%
Taxes37%
State & Local Subsidies
3%
Other Funding Agreements
4% Other 1%
Revenues
Farebox Revenue $6,389Toll Revenue 2,121 Other Revenue 684 Taxes 6,178 State and Local & Other 557 Other Funding Agreements 671 Other 1 208 Total $16,809
($ in millions)
By Revenue Source(includes fare/toll increases)
MTA 2020 Preliminary BudgetWhere the dollars come from…where the dollars go
*Preliminary, subject to change, as presented to the MTA Board on July 24, 2019 Notes:1) Includes cash adjustments and prior‐year carryovers2) In the Expenses Category chart, Below‐the‐Line Adjustments (‐$386 million) are reductions to non‐labor expenses, which reduce the category of Non‐Labor and Other
Expense Adjustments from $4,004 million to 3,618 million. These adjustments are below‐the‐line because they are not yet allocated to Agencies3) Operating expenses with debt service excludes non‐cash liability adjustments for depreciation, OPEB obligation, and environmental remediation; MTA Capital
Construction is not included as its budget contains reimbursable expenses only9
Payroll $5,422Overtime 838 Health & Welfare 2,118 Pension 1,461 Other Labor 466 Total Labor $10,306Non-Labor + Other Exp Adj. 4,004 Debt Service 2,830 BTL Adjustments for Expenses 2 (386) Total $16,754
By Expense Category
($ in millions)(includes below-the-line adjustments)
Payroll32%
Overtime5%
Health &Welfare13%
Pension9%
Other Labor3%
Non‐Labor + Other Exp Adj.
21%
Debt Service17%
Expenses
($ in millions)
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($ in millions) Actual2018
Mid‐Year Forecast
2019
Preliminary Budget2020
Projected 2021
Projected2022
Projected 2023
Operating Revenue:
Fares, Tolls and Other Revenues $8,774 $9,089 $9,195 $9,206 $9,232 $9,260Dedicated Taxes and State/Local Subsidies 7,177 7,314 7,406 7,581 7,803 7,969
Total Operating Revenue 15,951 16,403 16,601 16,787 17,035 17,229Expenses:
Labor Expenses 9,799 10,116 10,306 10,592 10,881 11,121Non‐Labor and Other Expenses 3,611 3,877 3,748 3,841 3,945 4,054Other 129 175 86 36 22 23General Reserve 0 165 170 175 180 185Debt Service (excludes Service Contract Bonds) 2,541 2,683 2,830 3,041 3,265 3,513
Total Operating Expenses with Debt Service 16,079 17,016 17,140 17,685 18,293 18,896
Net Surplus/Deficit After Subsidies and Debt Service (128) (613) (539) (898) (1,258) (1,667)
Conversion to Cash Basis 379 229 147 60 125 101
Cash Balance Before Prior Year Carryover 251 (384) (392) (838) (1,133) (1,566)
Total Below‐the‐Line Adjustments 0 73 386 757 852 1,133Prior‐year Carryover 121 372 61 55 0 0Net Cash Balance $372 $61 $55 ($26) ($281) ($433)
Notes:1) Total operating expenses with debt service excludes non‐cash liability adjustments for depreciation, OPEB obligation, and environmental remediation2) Adjustments are below‐the‐line adjustments affecting revenue and expense totals that have not yet been allocated to Agencies3) Numbers may not total due to rounding
Preliminary Budget and July Financial PlanSummary of MTA Consolidated Statement of Operations by Category
*Preliminary, subject to change, as presented to the MTA Board on July 24, 2019
($ in millions)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Achieved Savings
2012 November Plan
2013 November Plan
2014 November Plan
2015 November Plan
2016 November Plan
2017 November Plan
2018 November Plan
2019 July Plan
$2.8 billion
Aggressive Savings TargetsAnnually recurring savings targets are added in Financial Plans
11*Preliminary, subject to change, as presented to the MTA Board on July 24, 2019
• Proposed biennial fare and toll increases of 4% in 2021 and 2023 (versus projected 2‐year CPI inflators of 4.9% and 4.7% in 2021 and 2023, respectively)
• Maintained investments from prior plans, including maintenance of the Subway Action Plan funded from Phase 1 of the Congestion Pricing/For‐Hire Vehicle fees
• Renewed emphasis to gain control of, and reduce, fare evasion (investment of $62 million over the Plan period)
• MTA is using “one‐shots” to balance the budget in the transition years 2019 and 2020• 2019 ‐ 2018 favorable year‐end balance – due mostly to timing and impacts 2019 ($372 million)
‐ Freeze on filling all non‐operational/non‐essential vacancies ($68 million)
‐ Other restrictions on non‐essential spending, including non‐revenue vehicle purchases, travel, andprofessional memberships ($44 million)
‐ One‐time reduction of committed to capital contributions ($64 million)
• 2020 – Drawdown of 2019 General Reserve ($165 million)
• Annual recurring savings targets of $350 million, beginning in 2020, have been identified by MTAHQ and Agencies
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Highlights of the July Financial Plan
*Preliminary, subject to change, as presented to the MTA Board on July 24, 2019
Transportation Revenue$27,105 64.8%
Dedicated Tax Fund$5,934 14.2%
TBTA General$7,770 18.6%
TBTA Sub$1,003 2.4%
Debt by Credit
Notes:1) Debt Outstanding for Transportation Revenue credit reflects the draws on the Railroad Rehabilitation and Improvement Financing (RRIF) Program loan (TRB Series 2015X)2) Debt by Credit chart incorporates BANs into their respective credits3) Term Rate bonds have a fixed rate for a defined period (until the mandatory tender date) and do not have a fixed rate for the entire life of the bonds4) Excludes outstanding $214.67 million Special Obligation Bonds and $883.97 million Hudson Rail Yards Trust Obligations, in each case, not secured by MTA revenues5) Numbers may not total due to rounding
(1)
MTA Debt Overview$41.8 billion – Debt Outstanding on Core Credits (as of 7/16/2019)
Fixed Rate$30,255 72.4%
Synthetic Fixed Rate$2,246 5.4%
Variable Rate$2,138 5.1%
Bond Anticipation Notes (BANs)
$6,000 14.4%
Term Rate$1,172 2.8%
Debt by Type$ in millions
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250
500
750
1,000
1,250
1,500
1,750
2,000
2,250
2,500
2,750
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$ Millions
TRB DTF TBTA TBTA Sub
Debt Service on Outstanding Bonds by CreditStated Debt Service as of 7/16/2019
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Note:1) 2019 reflects partial year remaining, stated debt service
MTA Investor ContactAvailable as a direct resource for any questions
For more information:
Investor Contact:Marcia Tannian
Deputy Director, Finance(212) 878‐7278
Connect: http://web.mta.info/mta/investor/https://twitter.com/MTABonds
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