chapel hill transit strategic and financial plan update
TRANSCRIPT
Chapel Hill TransitStrategic and Financial
Sustainability Plan Update
Chapel Hill-Carrboro Chamber of Commerce
February 5, 2015
Today’s Agenda
• Overview of Chapel Hill Transit
–Performance Overview
–Funding Overview
–Key Challenges Overview
• Strategic and Financial Sustainability Plan Update
• Questions and Feedback
CHT OverviewCHT is the second largest transit system in North Carolina, serving Chapel Hill, Carrboro and the University of North Carolina at Chapel Hill.
Responsibilities: Fixed-route Bus Service (32 weekday & weekend routes) EZ Rider (ADA Service) Short and Long Range Transit Planning Marketing and Public Relations Major Transit Initiatives
Staff (210 employees): Operations – 165 Maintenance – 31 Administration – 14
Fleet (118 revenue vehicles): Buses – 99 (29 hybrids) Demand Response – 19
Organizational StructureWhile a department of the Town of Chapel Hill, CHT is advised by the Chapel Hill Transit Partners Committee, which provides policy and financial guidance:
• Jim Ward, Chair, Town of Chapel Hill – Council Member
• Ed Harrison, Town of Chapel Hill – Council Member
• Matt Czajkowski, Town of Chapel Hill – Council Member
• Damon Seils, Town of Carrboro – Alderman
• Bethany Chaney, Town of Carrboro – Alderman
• Julie Eckenrode, Town of Carrboro – Assistant to theTown Manager
• Meredith Weiss, University of North Carolina at Chapel Hill – Senior Associate Vice Chancellor for Finance and Administration
• Than Austin, University of North Carolina at Chapel Hill – Associate Director of Transportation and Planning
• Cheryl Stout, University of North Carolina at Chapel Hill – Director, Transportation and Parking
Ridership:
– 6,938,657 annual rides (FY13-14)
– Over 133,435 rides per week
– Over 80 rides per capita
• Service Miles: 2,091,748
• Service Hours: 179,044
Performance standards:
– Rides/Hour: FR – 44.3 DR – 2.58
– Rides/Mile: FR – 3.92 DR – .20
– Cost/Ride: FR – $2.53 DR – $25.15
(FR = Fixed Route and DR = EZ Rider)
CHT Delivers CHT Delivers
CHT Delivers
Median Time Period Performance (Passengers per Hour)
2014 2013 2012 2011
AM PeakStart of service – 9:59 a.m.
62.3 49.7 53.5 39.8
Midday10:00 a.m. –3:29 p.m.
64.1 54.8 56.4 51.1
PM Peak3:30 p.m. –6:59 p.m.
49.5 42.3 43.9 38.0
Night7:00 p.m. –End of service
36.6 30 30.4 26.6
Weekend 39.35 38.5 37.5 29.5
CHT & Sustainability
• 2nd highest transit ridership in the state.• Using ULSD we are producing as little emissions as
possible from our traditional diesel buses.• Hybrid buses are 19% more fuel efficient than diesel
buses and produce 57% less particulate matter than standard diesel buses.
• By putting one Articulated bus on the road CHT can take 2 traditional buses off the road.
• By designing for public transportation in initial development plans, CHT transit vehicles are accommodated, thereby promoting transit as a viable means of transportation.
• More than 90% of transit expenses are directly related to puttingservice on the street and are subject to market rates.
• CHT makes considerable and concerted efforts to mitigateexpense increases in every category.
FY2014-15 Budget Highlights
• FY12-13 included first increase in partner contributions in four years.• FY09 and FY10 included ARRA funding of about $500,000 in each year.
Funding History
State & Federal Funding History
• Note – State Assistance has decreased by ~$1Million since FY10-11
Key Challenges
• Fleet Age:
– 42 buses, 13 demand response and 12 service vehicles need to be replaced.
• Staffing:
– Full Time Operators
– Supervisory Staff
– Additional Maintenance Shift
• Funding
• Community and Partner Goals:– 2020 Plan
– Current and Planned Development
Financial Sustainability Plan
• Development of Strategic and Financial Plans:
– Organizational Staffing Assessment
– Vision and Goal Setting Process
• Consistent with 2020 Comprehensive Plan, 2020 Focus Area Studies, Carrboro Vision 2020 and UNC’s Development Plans
– Develop Strategic and Long Term Financial Plan
• Identify full range of financing strategies to meet operating, maintenance and capital costs
Financial Sustainability Plan
• Current Focus to Inform FY2016 Budget Process:
– Capital Plan and Associated Funding Plan
– Short-Term Staffing Plan
• Future Focus:
– Service Development
– Long-Term Staffing Plan
– Performance Benchmarking
Strategic and Financial Sustainability Plan
Significant Ridership Growth
Nelson\Nygaard Consulting Associates, Inc.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Passen
ger
Tri
ps
■ Source: National Transit Database
95
%
Drop in ridership
reflects 2010
service cuts
Significant Increase in Service Provided
Nelson\Nygaard Consulting Associates, Inc.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Reven
ue H
ou
rs
■ Source: National Transit Database
26
%
Increase in Cost per Hour of Service
Nelson\Nygaard Consulting Associates, Inc.
■ Source: National Transit Database
68%
$0
$20
$40
$60
$80
$100
$120
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Op
era
tin
g E
xp
en
se p
er
Reven
ue
Ho
ur
Operator Salary/Wages: 53%
Fringe Benefits: 104%
Fuel/Lube: 382%
Casualty/Liability Costs: 86%
Nelson\Nygaard Consulting Associates, Inc.
Revenue Trends: Federal Funding
■ Source: Town of Chapel Hill
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Nelson\Nygaard Consulting Associates, Inc.
Revenue Trends: State Funding
■ Source: Town of Chapel Hill
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
-26%
Chapel Hill Transit – Partner Contributions
Nelson\Nygaard Consulting Associates, Inc.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
UNC Carrboro Chapel Hill
■ Source: Town of Chapel Hill
49%
State of the System
■ Growth has Stabilized
– Ridership and service hours remained steady
– Cost increases largely reflect inflation
■ But, Impact of Growth and Expansion Still Being Felt
– Providing more service
– Cost of each unit of service increased
– Funding equation changed
• Federal and state funds flat, declining and changing
• Partner increases offset declines
■ Growth Occurred Without Corresponding Investments
• Capital – mostly vehicles but also some facilities
• Staffing – operators, mechanics, and supervisors
Nelson\Nygaard Consulting Associates, Inc.
State of the System
■ Chapel Hill Transit Operations are Financially
Unsustainable
■ $80 million (estimated) additional revenues needed
over next 10 years
– Invest in capital investments
• Buses, paratransit vehicles, technology, and park-and-ride lots
– Invest in staff and operations
• Operators, mechanics, and supervisors
Nelson\Nygaard Consulting Associates, Inc.
Opportunities
Potential Opportunities
■ Orange County Bus and Rail Investment Plan
■ Reduce Service Levels
■ Additional Revenue Sources (Fares)
■ Finance Vehicle Purchases/Lease Vehicles
■ Increase Local Taxes/Partner Contributions
Nelson\Nygaard Consulting Associates, Inc.
Orange County Bus and Rail Investment Plan
■ New (2012) Revenues for Transit in Orange County
– One-half Cent Sales Tax
– New or increased Vehicle Registration Fees
■ Full Year Revenues Estimated at $6.7 million – All Sources
– Most for regional services and future light rail
■ Existing Service (Chapel Hill Transit) has Access to New
Vehicle Registration Fee Revenues Only
– Estimated revenue - $338,000/yr
– 2% per year is assumed growth rate
– Already assumed in financial projections for operations and
capital
Nelson\Nygaard Consulting Associates, Inc.
Reduce Service/Operate Fewer Routes
Opportunities
■ Potential strategy to
reduce cost and demands
on capital resources
Challenges
■ Big impact on riders
■ Contrary to CHT Partner
priorities and community
goals
■ Less service results in
fewer federal and state
funds
Nelson\Nygaard Consulting Associates, Inc.
Fares and User Fees
Opportunities
■ Shares costs with users
Challenges
■ Requires capital investment
(fare boxes)
■ Will impact service
operations and staffing
■ Will impact ridership
Nelson\Nygaard Consulting Associates, Inc.
Leasing and Debt Financing
Opportunities
■ Allows CHT to acquire
vehicles relatively quickly
■ Spreads costs evenly over
several years
■ Town of Chapel Hill
already has vehicle leasing
program
Challenges
■ Current governance
structure means Town of
Chapel Hill alone would
hold the debt
■ Adds financing costs
Nelson\Nygaard Consulting Associates, Inc.
Raise Taxes/Partner Contributions
Opportunities
■ Increase funding to system
needs
■ Share burden across
partners
Challenges
■ Contrary to CHT Partner
priorities
■ Just raised taxes and
increased fees
Nelson\Nygaard Consulting Associates, Inc.
Questions/Feedback
Brian M Litchfield
Director
Chapel Hill Transit
(919) 969-4908
www.chtransit.org
www.facebook.com/chtransit
www.twitter.com/chtransit
Customer Service Line: (919) 969-4900
It’s about Community Goals