FY 2013 Operating and Capital Budget - Metro Transit

Transit Operating Major Assumptions
Priorities
The short-term priorities for the Transit operating budget are to maintain and build ridership,
effectively manage resources of the system, and provide future stability and growth.
Assumptions
The FY 2013 budget projects a $10.7 million deficit before depreciation, which is within the
unfunded other post employment benefit (OPEB) obligation. Government Accounting
Standards Board (GASB) ruling number 45 requires the accruing of other postemployment
benefits. GASB 45 dictates recording the OPEB liability and expenses, but leaves the
method of funding to the discretion of the entity. Metro currently funds the annual, normal
cost portion of this obligation using “pay as you go” methodology.
A passenger fare increase that has been delayed the last few years has been applied to the
FY 2013 Budget. The proposed fare increase will only apply to discounted fares and is
projected to increase passenger revenue by $1.8 million. Passenger revenue in total
accounts for 19.2% of the total transit revenue.
Service Miles/Hours for all three modes are planned to remain at levels consistent with
prior year levels, which include service route efficiencies.
Passenger boardings on MetroBus, MetroLink and Call-A-Ride are expected to show
modest growth compared to FY 2012 budget.
Operating Revenue
Passenger revenue is budgeted at $50.5 million for FY 2013 which is a $2.0 million or
4.0 % increase from the 2012 projection. The anticipated growth in passenger revenue is
due to the expected fare increase and a modest growth in ridership. The increase in
ridership is anticipated due to increase in fuel prices and people returning to the workforce.
67