FY 2013 Operating and Capital Budget - Metro Transit

Expenses
Wages and benefits budgeted for 2013 are
expected to be 4.2% higher than FY 2012
projection. This increase is primarily due to
budgeting at full staffing and higher medical
and pension benefits.
Other postemployment benefits arose from
the implementation of GASB Statement No.
45, Accounting and Financial Reporting for
Employers for Postemployment Benefit Plans
Other Than Pension. FY 2013 is the sixth
annual budget that includes this benefit
obligation. FY 2013 OPEB costs are
expected to be near the same level as the FY
2012 projection.
Fuel &
lubrications
8.1%
Utilities
3.1%
Other
4.2%
Parts &
supplies
7.5%
Metro Transit
FY 2013 Operating Expense
Services
11.0%
Wages,
benefits &
OPEB
66.0%
Services increased 10.8% from the FY 2012 budget primarily due to the outsource of
technical support and non-capital projects and includes the following (in thousands):
Security guard, contracted police, and fare enforcement $ 7,199
Contract custodial 5,949
Contract maintenance 5,257
Financial services and fees 1,740
Consultant Fees for IT, HR, Safety & Risk Mg. and Others 3,023
Transit Operations, Engineering and Other Outside Service 2,031
Temporary Help in Transit Operations, Financial and Other 978
Legal Fees 501
Other Services 787
Total $ 27,465
Fuel hedging (realized) helps neutralize the outcome of a rise in the price of fuel. The
fuel hedging program involves purchasing heating oil contracts up to 18 months into the
future. In times of rising prices, contracts rise in value at time of sale and generate a
savings that slows the effect of the market increase on the financial statements. The
projected realized gain on the hedging program is $1.6 million in FY 2013.
Fuel & lubrications expense for the FY 2013 budget is anticipated to increase 5.9%
compared to the FY 2012 projection. The expected increase in diesel prices is driving
thisxincrease.
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