operating budget stability budget stability report to fiscal and management control board ... •...

Draft for Discussion & Policy Purposes Only

Operating Budget Stability

Report to Fiscal and Management Control Board

March FY16 YTD Financial Update

Fiscal and Management Control Board

2


Agenda

• Executive Summary

• March FY16 YTD Performance Against FY16 Budget

• March FY16 YTD Performance Against Same Period Last Year

• Appendix

─ Financial Detail: March FY16 YTD Performance Against FY16 Budget and Recast

─ Financial Detail: March FY16 YTD Performance Against Same Period Last Year

─ Revenue Detail: Own-Source, Fare Collection and Sales Tax


3


• Structural deficit is 45% ($78M) below budget and 39% ($62M) below FY15 YTD

• March has maintained a low rate of operating expense growth at -0.4% YTD compared with FY15

─ Operating expense controlled by active management of employee costs (5% below budget) and Materials & Services expenses (15% below budget)

• Own-Source revenues are up 43% ($12.4M) over FY15 YTD

Executive Summary


4


Agenda




• Appendix





5


Structural deficit has been reduced by 45.1% ($78.1M) YTD

March FY16 YTD Performance Against FY16 Budget

MARCH FY16 YTD PERFORMANCE AGAINST FY16 BUDGET

($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

REV

ENU

ES Operating Revenues $498.1 $504.0 $6.0 1.2%Non-Operating Revenues $844.8 $841.5 ($3.2) (0.4%)

Total Revenues $1,342.8 $1,345.6 $2.8 0.2%

EXP

ENS

ES

Wages, Benefits and Payroll Taxes $577.0 $549.4 ($27.7) (4.8%)

Non-Wage $597.9 $558.2 ($39.7) (6.6%)Operating Expenses $1,174.9 $1,107.6 ($67.3) (5.7%)

Debt Service $341.3 $333.3 ($8.1) (2.4%)

Total Expenses $1,516.2 $1,440.8 ($75.4) (5.0%)

Structural Deficit ($173.4) ($95.3) $78.1 (45.1%)

Fare Recovery Ratio 39% 42%Note: March structural deficit higher than year-end deficit due to timing of incurred revenues and expenses; Still on track to hit target FY16 recast


6


Structural deficit has been reduced by $78M YTD


Source: MBTA Internal Data. Analysis above excludes revenue from monthly FY16 Additional Assistance payments (forecast at $187M for full FY16).

$0M

$50M

$100M

$150M

$200M

FY16 YTD Budget

(9 months)

$173.4M

Cost control

-$67.3M

Revenue

Expansion

-$2.8M

Debt Service

-$8.1M

FY16 YTD Actual

(9 months)

$95.3M

YTD Improvement of $78M

March FY16 YTD Budget to Actual Structural Deficit

YTD Improvement of $78M


7


Revenues have exceeded budget by 0.2% ($2.8M), driven by Own-Source growth


$0M

$100M

$200M

$300M

$400M

$500M

$600M

$700M

Fare Revenue

463 463

Own-Source

Revenue

35 41

Sales Tax

740 741

Local

Assessments

81 81

Other Income

24 20

$0.1M $5.9M $0.8M $0.0M -$4.0M $2.8M$ Variance

0.0% 16.6% 0.1% 0.0% -17.1% 0.2%% Variance

Total Revenues - Budget vs. Actual Comparison

FY16 YTD Budget (9 months)FY16 YTD Actual (9 months)

Source: MBTA Internal Data

Total


8


Operating expenses are under budget by 5.7% ($67.3M), due to decreases across the Authority


$0M

$100M

$200M

$300M

$400M

Operating Expense (Excluding Debt Service) Budget vs. Actual Comparison

Wages & OT

385 372

Other

Employee

Costs

193 178

Materials,

Supplies &

Services

203173

Commuter

Rail

285 284

The RIDE &

Local Service

93 87

Financial &

Insurance

16 15

-$12.7M -$15.0M -$30.4M -$1.3M -$6.6M -$1.5M -$67.3M$ Variance

-3.3% -7.8% -14.9% -0.4% -7.0% -9.1% -5.7%% Variance

FY16 YTD Budget (9 months)FY16 YTD Actual (9 months)

Note: Lower energy costs contributed $15.5M of the $67.3M operating expense positive variance against budget ($5.4M CR fuel; $3.4M bus fuel; $6.7M power/utilities).Source: MBTA Internal Data

Total


9


Agenda




• Appendix





10


Structural deficit is down 39.3% ($61.6M) YTD from FY15

March FY16 YTD Performance Against Same Period Last Year

MARCH FY16 YTD PERFORMANCE AGAINST SAME PERIOD LAST YEAR

($M)FY15 YTD ACTUAL

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

REV

ENU

ES Operating Revenues $483.3 $504.0 $20.8 4.3%Non-Operating Revenues $796.0 $841.5 $45.5 5.7%

Total Revenues $1,279.3 $1,345.6 $66.3 5.2%

EXP

ENS

ES

Wages, Benefits and Payroll Taxes $545.1 $549.4 $4.3 0.8%

Non-Wage $567.3 $558.2 ($9.1) (1.6%)Operating Expenses $1,112.4 $1,107.6 ($4.8) (0.4%)

Debt Service $323.7 $333.3 $9.5 2.9%

Total Expenses $1,436.1 $1,440.8 $4.7 0.3%

Structural Deficit ($156.8) ($95.3) $61.6 (39.3%)

Fare Recovery Ratio 41% 42%Note: March structural deficit higher than year-end deficit due to timing of incurred revenues and expenses; MBTA still on track to hit target FY16 recast


11


Total revenue has increased 5.2% ($66.3M) YTD

Revenue—March FY16 YTD Performance Against Same Period Last Year

$0M

$200M

$400M

$600M

$800M

Total Revenue - FY16 YTD vs. FY15 YTD

Sales Tax

708 741

Fare Revenue

454 463

Local

Assessments

82 81

Own-Source

29 41

Other Income*

6 20

$8.3M$32.9M -$0.8M $12.4M $13.4M $66.3M $ Change

1.8%4.7% -1.0% 43.1% 218.8% 5.2% % Change

FY15 YTD Actual (9 months)FY16 YTD Actual (9 months)

*GLX Mitigation income from Mass DOTSource: MBTA Internal Data

Total


12


Own-Source revenue is up 39.8% ($11.7M) YTD due to advertising and recurring real estate

Revenue—March FY16 YTD Performance Against Same Period Last Year

$0M

$5M

$10M

$15M

Own-Source Revenue - FY16 YTD vs. FY15 YTD

Advertising

11

15

Parking

8

13

Recurring Real Estate

9

13

$3.9M $5.1M $3.3M $12.3M $ Change35.1% 61.4% 35.1% 42.7% % Change


Note: Parking booked a large snow removal charge in March 2015 causing a large gap between FY15 and FY16Source: MBTA Internal Data

Total


13


Operating expense growth near zero over first 9 months

Operating Expense—March FY16 YTD Performance Against Same Period Last Year

$0M

$250M

$500M

$750M

$1,000M

$1,250M

Operating Expense (Excluding Debt Service)

FY15 YTD Actual (9 months)

$1,112M

FY16 YTD Actual (9 months)

$1,108M

Year-on-year growth rate:

-0.4% Year-on-year growth rate:

-0.4%



14


Total Expenses (Including Debt Service) up 0.3% ($4.8M) YTD


$0M

$200M

$400M

$600M

Total Expenses (Including Debt Service) - FY16 YTD vs. FY15 YTD

Wages &

Benefits

545 549

Materials &

Services

185 173

Keolis

291 284

The Ride &

Local

Service

77 87

Insurance

and Financial

Svcs.

14 15

Debt Service

324 333

$4.3M -$11.9M -$7.5M $9.7M $0.7M $9.5M $4.8M$ Change

0.8% -6.5% -2.6% 12.6% 5.0% 2.9% 0.3%% Change


Total



15


Employee costs up 0.8% ($4.3M) YTD, with wage increases offset by lower overtime



$0M

$100M

$200M

$300M

$400M

Total Employee Costs - FY16 YTD vs. FY15 YTD

Wages

329339

Overtime

42 33

Pension and

Other Fringe

146149

Payroll

Taxes

28 28

$9.9M -$8.5M $2.8M $0.1M $4.3M$ Change

3.0% -20.5% 1.9% 0.5% 0.8%% Change


Change inemployee costs $4.3M

Wages $9.9M

Overtime ($8.5M)

Fringe expense $2.8M

Payroll taxes $0.1M

Total


16


Materials and services costs down 6.5% ($11.9M)


$0M

$25M

$50M

$75M

$100M

Materials and Services - FY16 YTD vs. FY15 YTD

Services

110112

Materials &

Supplies

75

61

Insurance

10 10

Financial

Service

Charges

4 4

$2.1M -$14.0M $0.6M $0.1M -$11.3M $ Change

1.9% -18.7% 5.7% 2.3% -5.7% % Change


Total

Change in Materialsand Services ($11.9M)

Services $2.1MComputer services $2.5 Contract cleaning ($0.8)Engineering $3.2 Utilities ($5.2)Temporary help $1.3 Other services $1.0

Materials and Supplies ($14.0M)

Equipment components ($11.1)Fuel ($1.9)Maint. supplies/other materials ($1.1)

Insurance $0.6M

Financial Service Charges

$0.1M



17


Agenda




• Appendix





18


MBTA remains on track to reach year-end $95M Structural Deficit; Deficit higher than recast in March due to timing of incurred revenues and expenses



MARCH FY16 YTD PERFORMANCE AGAINST FY16 RECAST

($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

FY16 YTDRECAST

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

REV

ENU

ES

Operating Revenues $498.1 $504.0 $6.0 1.2% $500.1 $504.0 $3.9 0.8%

Non-Operating Revenues $844.8 $841.5 ($3.2) (0.4%) $858.4 $841.5 ($16.8) (2.0%)

Total Revenues $1,342.8 $1,345.6 $2.8 0.2% $1,358.5 $1,345.6 ($12.9) (0.9%)

EXP

ENS

ES

Wages, Benefits and Payroll Taxes

$577.0 $549.4 ($27.7) (4.8%) $552.9 $549.4 ($3.6) (0.6%)

Non-Wage $597.9 $558.2 ($39.7) (6.6%) $559.2 $558.2 (1.0) (0.2%)Operating Expenses $1,174.9 $1,107.6 ($67.3) (5.7%) $1,112.1 $1,107.6 ($4.5) (0.4%)

Debt Service $341.3 $333.3 ($8.1) (2.4%) $335.2 $333.3 ($1.9) (0.6%)

Total Expenses $1,516.2 $1,440.8 ($75.4) (5.0%) $1,447.3 $1,440.8 ($6.4) (0.4%)

Structural Deficit ($173.4) ($95.3) $78.1 (45.1%) ($88.8) ($95.3) ($6.5) 7.3%

Fare recovery ratio 39% 42% 41% 42%


19


Total Revenues are above budget by 0.2% ($2.8M)

Appendix—Financial Detail: March FY16 YTD Performance Against FY16 Budget and Recast



($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

FY16 YTDRECAST

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

OP

ERA

TIN

G

Fares, all modes $462.7 $462.8 $0.1 0.0% $460.6 $462.8 $2.1 0.5%

Own-Source $35.4 $41.2 $5.9 16.6% $39.5 $41.2 $1.8 4.5%

Operating $498.1 $504.0 $6.0 1.2% $500.1 $504.0 $3.9 0.8%

NO

N-O

PER

ATI

NG

Sales Tax $739.7 $740.5 $0.8 0.1% $733.3 $740.5 $7.2 1.0%

Local Assessment $81.4 $81.4 $0.0 0.0% $101.8 $81.4 ($20.3) (20.0%)

Other $23.6 $19.6 ($4.0) (17.1%) $23.3 $19.6 ($3.7) (15.9%)

Non-Operating $844.8 $841.5 ($3.2) (0.4%) $858.4 $841.5 ($16.8) (2.0%)

Total Revenues $1,342.8 $1,345.6 $2.8 0.2% $1,358.5 $1,345.6 ($12.9) (0.9%)

Fare recovery ratio 39% 42% 41% 42%


20


Employee expenses are below budget by 4.8% ($27.7M)




($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

FY16 YTDRECAST

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

WA

GES

Regular Wages $356.6 $338.8 ($17.8) (5.0%) $338.6 $338.8 $0.1 0.0%

Overtime $27.9 $33.1 $5.2 18.5% $36.8 $33.1 ($3.7) (10.1%)

Wages $384.5 $371.9 ($12.7) (3.3%) $375.4 $371.9 ($3.6) (0.9%)

BEN

EFIT

S A

ND

TAX

ES

Pension* $61.9 $58.5 ($3.3) (5.4%) $58.4 $58.5 $0.1 0.3%

Health $82.8 $74.8 ($8.1) (9.7%) $75.5 $74.8 ($0.7) (0.9%)

Retiree Health

Health & Welfare Fund $9.0 $8.8 ($0.2) (1.7%) $8.7 $8.8 $0.1 1.1%

Other Fringes $8.6 $7.1 ($1.5) (17.4%) $7.2 $7.1 ($0.1) (0.9%)

Payroll Taxes $30.3 $28.3 ($2.0) (6.5%) $27.8 $28.3 $0.5 1.8%

Benefits and taxes $192.5 $177.5 ($15.0) (7.8%) $177.5 $177.5 $0.0 0.0%

Total Wages, Benefits, Taxes $577.0 $549.4 ($27.7) (4.8%) $552.9 $549.4 ($3.6) (0.6%)

*Pension includes Main Fund, Police, Deferred Compensation Supplement, 401(a) MBTA Match


21


Total Non-Wage Expenses are below budget by 6.6% ($39.7M) [pp. 1/2]




($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

FY16 YTDRECAST

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

MA

TER

IALS

AN

D

SER

VIC

ES

Materials $52.1 $45.0 ($7.1) (13.6%) $49.1 $45.0 ($4.2) (8.5%)

Services $72.9 $61.1 ($11.8) (16.1%) $61.5 $61.1 ($0.4) (0.7%)

Fuel $19.1 $15.7 ($3.4) (17.7%) $15.1 $15.7 $0.6 4.0%

Utilities $40.3 $33.6 ($6.7) (16.6%) $32.1 $33.6 $1.5 4.5%

Contract Cleaning $19.1 $17.6 ($1.4) (7.5%) $18.7 $17.6 ($1.1) (5.9%)

Materials and Services $203.3 $173.0 ($30.4) (14.9%) $176.6 $173.0 ($3.6) (2.1%)

INS

UR

AN

CE

Insurance $11.3 $10.3 ($1.0) (8.4%) $11.4 $10.3 ($1.1) (9.4%)


22


Total Non-Wage Expenses are below budget by 6.6% ($39.7M) [pp. 2/2]




($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

FY16 YTDRECAST

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

CO

MM

UTE

R

RA

IL

Fixed Price $230.6 $230.6 ($0.0) 0.0% $230.6 $230.6 $0.0 0.0%Extra Work and Services $24.0 $28.1 $4.1 17.0% $24.1 $28.1 $4.0 16.6%

Fuel $30.4 $25.0 ($5.4) (17.6%) $23.8 $25.0 $1.2 5.0%

Commuter Rail $285.0 $283.7 ($1.3) (0.4%) $278.5 $283.7 $5.2 1.9%

LOC

AL

SER

VIC

E THE RIDE $81.7 $75.4 ($6.3) (7.8%) $76.6 $75.4 ($1.2) (1.5%)Ferry $9.8 $9.7 ($0.1) (1.4%) $9.7 $9.7 $0.0 0.0%LSS Other $1.9 $1.8 ($0.1) (4.3%) $1.8 $1.8 ($0.0) (1.2%)

Local Service $93.4 $86.8 ($6.6) (7.0%) $88.0 $86.8 ($1.2) (1.4%)

OTH

ER Financial Service Charges

$4.8 $4.3 ($0.5) (10.6%) $4.6 $4.3 ($0.3) (6.3%)

Non-Wage Expenses: $597.9 $558.2 ($39.7) (6.6%) $559.2 $558.2 ($1.0) (0.2%)


23


Debt Service expense is below budget by 2.4% ($8.1M)




($M)FY16 YTDBUDGET

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

FY16 YTDRECAST

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE

DEB

T S

ERV

ICE

Interest $178.6 $171.6 ($7.0) (3.9%) $173.5 $171.6 ($1.9) (1.1%)

Principal $159.3 $158.3 ($1.0) (0.6%) $158.3 $158.3 $0.0 (0.0%)

Lease $3.4 $3.4 ($0.0) (0.8%) $3.4 $3.4 ($0.0) (0.0%)

Debt Service $341.3 $333.3 ($8.1) (2.4%) $335.2 $333.3 ($1.9) (0.6%)


24


Agenda




• Appendix





25


Total Revenues are above FY15 YTD by 5.2% ($66.3M)

Appendix—Financial Detail: March FY16 YTD Performance Against Same Period Last Year


($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE

%VARIANCE EXPLANATION

OP

ERA

TIN

G

Fares, all modes $454.5 $462.8 $8.3 1.8% • Ridership improvement

Own-source $28.8 $41.2 $12.4 43.1% • Stronger advertising and real estate proceeds

Operating $483.3 $504.0 $20.8 4.3%

NO

N-O

PER

ATI

NG

Sales Tax $707.6 $740.5 $32.9 4.7%

• ~$11M in difference between FY16 and FY15 due to increase in Base Tax Revenue; ~$10M due to timing of booked revenue; timing discrepancy to be corrected in March

Local Assessment $82.3 $81.4 ($0.8) (1.0%) • Higher statutory amount

Other $6.1 $19.6 $13.4 218.8% • Federal preventative maintenance funds• GLX mitigation income

Non-Operating $796.0 $841.5 $45.5 5.7%

Total Revenues $1,279.3 $1,345.6 $66.3 5.2%

Fare recovery ratio 41% 42%


26


Total Wage, Benefit and Tax expenses are below FY15 YTD by 0.8% ($4.3M)



($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE


WA

GES

Regular Wages $328.9 $338.8 $9.9 3.0% • Collective bargaining increases

Overtime $41.6 $33.1 ($8.5) (20.5%) • Storm overtime down

Wages $370.5 $371.9 $1.4 0.4%

BEN

EFIT

S A

ND

TAX

ES

Pension* $53.0 $58.5 $5.5 10.4% • Tied to higher wage spending and higher contribution rate

Health $77.5 $74.8 ($2.7) (3.5%) • GIC cost control

Retiree Health • GIC cost control

Health & Welfare Fund $10.9 $8.8 ($2.1) (19.2%) • Higher participation rates

Other Fringes $5.0 $7.1 $2.1 42.9%

Payroll Taxes $28.1 $28.3 $0.1 0.5% • FICA tied to wages

Benefits and taxes $174.6 $177.5 $3.0 1.7%

Total Wages, Benefits and Taxes $545.1 $549.4 $4.3 0.8%

*Pension includes Main Fund, Police, Deferred Compensation Supplement, 401(a) MBTA Match


27


Non-Wage Expenses are below FY15 YTD by 1.6% ($9.1M) [pp. 1/2]



($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE


MA

TER

IALS

AN

D

SER

VIC

ES

Materials $57.0 $45.0 ($12.1) (21.1%) • Equipment components and maintenance supplies

Services $53.0 $61.1 $8.1 15.2% • Computer engineering, temporary help, consulting services

Fuel $17.6 $15.7 ($1.9) (10.7%) • Bus fuel savings

Utilities $38.9 $33.6 ($5.3) (13.7%) • Electricity and traction power savingsContract Cleaning $18.4 $17.6 ($0.8) (4.1%) • Contractual

Materials and Services $184.9 $173.0 ($11.9) (6.5%)

INS

UR

AN

CE

Insurance $9.8 $10.3 $0.6 5.7% • Added underground station coverage


28


Non-Wage Expenses are below FY15 YTD by 1.6% ($9.1M) [pp. 2/2]



($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE


CO

MM

UTE

R

RA

IL

Fixed Price $216.0 $230.6 $14.5 6.7% • Contractual increasesExtra Work and Services $48.1 $28.1 ($19.9) (41.4%) • Contractual increases

Fuel $27.2 $25.0 ($2.2) (8.0%) • Train fuel pricesCommuter Rail $291.3 $283.7 ($7.5) (2.6%)

LOC

AL

SER

VIC

E THE RIDE $66.1 $75.4 $9.3 14.0% • Contractual increasesFerry $9.5 $9.7 $0.2 2.0% • Contractual increasesLSS Other $1.6 $1.8 $0.2 15.4% • Contractual increases

Local Service $77.2 $86.8 $9.7 12.6%

OTH

ER Financial Service Charges

$4.2 $4.3 $0.1 2.3% • Credit Card fees from higher fare revenue

Non-Wage Expenses: $567.3 $558.2 ($9.1) (1.6%)


29


Debt Service Expense is below FY15 YTD by 2.9% ($9.5M)



($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE


DEB

T S

ERV

ICE

Interest $180.1 $171.6 ($8.5) (4.7%) • Contractual per amortization schedule

Principal $139.9 $158.3 $18.3 13.1% • Contractual per amortization schedule

Lease $3.7 $3.4 ($0.3) (7.5%) • Contractual per amortization schedule

Debt Service $323.7 $333.3 $9.5 2.9%


30


Agenda




• Appendix





31


Own-Source revenues are above FY15 YTD by 42.7% ($12.3M)

Appendix—Revenue Detail: Own-Source

March FY16 YTD PERFORMANCE AGAINST SAME PERIOD LAST YEAR

($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE


OW

N-S

OU

RC

E R

EVEN

EUE

Advertising $11.1 $15.0 $3.9 35.1% • Steady static advertising growth, maturity of digital urban panels

Parking $8.3 $13.4 $5.1 61.4% • Decrease in snow removal expense from FY15 due to better weather

Recurring Real Estate (non-parking)

$9.4 $12.9 $3.3 35.1%

Own-Source revenue $28.8 $41.2 $12.4 43.1%


32


Recurring Real Estate revenues are above FY15 by 35.1% ($3.3M)

Appendix—Revenue Detail: Own-Source

March FY16 YTD Performance Against Same Period Last Year(9 MONTHS)

($M)FY15 YTDACTUAL

FY16 YTD ACTUAL

$VARIANCE


REC

UR

RIN

G R

EAL

ESTA

TE R

EVEN

EUE Massport

(airport) shuttle $1.5 $1.5 $0.0 1.5% • Consistent with prior year

South Station Intermodal+CR $0.7 $1.3 $0.6 85.7%

Net MRG (Mass Realty Group)Revenue

$7.2 $10.1 $2.9 40.3% • (See Below)

Land Rental $1.6 $2.2 $0.6 37.5% • Renegotiation of contractUtilities $0.8 $0.8 $0.0 0% • Consistent with prior yearTelecom $4.4 $5.7 $1.3 29.5% • Renegotiation of contractConcessions $1.9 $1.7 ($0.2) (10.5%) • Lease expirationsAdvertising $2.3 $2.9 $.6 26.1% • New lease rolloutMRG fees andexpenses ($3.8) ($3.2) $.6 3.3%

Recurring Real Estate Revenue

$9.4 $12.9 $3.3 35.1%


33


Fare revenue is up 1.8% ($8.3M) YTD

Appendix—Revenue Detail: Fare Collection

$0M

$50M

$100M

$150M

$200M

$250M

$300M

Fare Revenue - FY16 YTD vs. FY15 YTD

Subway, Bus,

Ferry, RIDE

300 301

Commuter Rail (Unallocated)

154 162

$7.6M$0.7M $8.3M $ Change4.9%0.2% 1.8% % Change


Note: Chart above shows “unallocated” commuter rail revenue, prior to CTPS allocation for linked trips to other modes. Source: MBTA Internal Data

Total


34


Commuter rail revenue is up 5% over FY15, and up 11% from FY14

$0M

$50M

$100M

$150M

$200M

YTD (9 months) Commuter Rail Fare Revenue (Unallocated)

FY14 YTD Actual

(9 months)

$146M

FY15 YTD Actual

(9 months)

$154M

FY16 YTD Actual

(9 months)

$162M

Note: Chart above shows “unallocated” commuter rail revenue, prior to CTPS allocation for linked trips to other modes. Subway, Bus, Ferry, RIDE revenue includes all adjustments to total fare revenueSource: MBTA Internal Data

Commuter Rail Revenue Overview

YTD Commuter Rail Revenue Growth

(9 months)

FY16 / FY15: 5%

FY16 / FY14: 11%


35


• Total annual (12 month) unallocated commuter rail revenue:

› FY12: $152M› FY13: $186M› FY14: $196M› FY15: $205M› Mar FY16 TTM: $212M

• If current growth trend continues (5% year-on-year), FY16 commuter rail revenue could reach $215M by fiscal-year end


Commuter rail fare revenue could reach $215M in FY16


36


Monthly trend in commuter rail revenue has been positive

$0M

$5M

$10M

$15M

$20MAverage

$17.3M

Dec

14

17.1

Jan1

5

Feb1

5

14.7M

ar15

Apr

15

May

15

15.6

Jun1

5

18.0

Jul1

5

18.4

Aug

15

17.6

Sep

15

18.4

Oct

15

19.2

Nov

15

18.5

Dec

15

17.8

Jan1

6

17.4

Feb1

6

Mar

16

18.1

4.4% 2.0% 0.9% 1.5% 5.2% 3.8% 3.8% 14.0%10.9%

Monthly MBTA Commuter Rail Revenue (Unallocated)

Average

$17.3M16.8

16.316.7 16.7

YTD FY16/FY15 Growth: 5%

Year-over Year Growth




37


Commuter rail revenue is up 4.9% for the first 9 months of FY16

0%

5%

10%

15%

Commuter Rail Fare Revenue (Unallocated) Monthly Revenue Growth Rate over FY15

YTD FY16/FY15

Growth: 4.9%

0.9%

5.2%

14.0%

Jul16 Aug16 Sep16 Oct16 Nov16 Dec16 Jan16 Feb16 Mar16

Commuter Rail Revenue (Unallocated) - Monthly Growth Rate

YTD FY16/FY15

Growth: 4.9%4.4%2.0%

1.5%3.8% 3.8%

10.9%



38


Subway, Bus, Ferry & RIDE total revenue is level for the first 9 months

$0M

$10M

$20M

$30M

$40M

Average

$32.8M

Dec

14

Jan1

5

Feb1

5

28.6

Mar

1534.5

Apr

15

33.3

May

15

Jun1

5

33.5

Jul1

5

36.2

Aug

15

34.4

Sep

15

36.0

Oct

15

35.8

Nov

15

32.4

Dec

15

Jan1

6

Feb1

6

Mar

16

33.3

0.5% -1.7% 1.0% 1.8% -0.1% 0.8% -2.3% 6.8% -3.7%

Monthly Subway, Bus, Ferry & RIDE Revenue

Average

$32.8M31.2 31.4 31.0 31.5 30.7 30.5

Year-over Year Growth

YTD FY16/FY15 Growth: 0.2%

Note: Includes adjustments to total fare revenueSource: MBTA Internal Data


39


Dedicated sales tax up 5.6% over FY15 YTD

$0M

$20M

$40M

$60M

$80M

$100M

Jul

6872

Aug

6266

Sep

6063

Oct

6568

Nov

6064

Dec

6165

Jan

7679

Feb

5658

Mar

5660

Apr

56

May

65

Jun

70

6.1% 5.4% 6.5% 5.4% 5.3% 6.3% 3.8% 4.6% 7.2%Growth %

(month-on-month)

Sales and Use Tax Collections (Exclusive of Meals) dedicated to MBTA*

FY15 FY16

YTD FY16/FY15 Growth: 5.6%

Appendix—Revenue Detail: Sales Tax

*MBTA receives 16% of Sales and Use Tax Collections excluding Meals Tax^Does not include $160M in annual additional dedicated revenueSource: MBTA Internal Data; MA Monthly Revenue Collection

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