Comprehensive Annual Financial Report for the ... - WMATA.com

Washington Metropolitan Area Transit AuthorityFY 2009 Comprehensive Annual Financial ReportEconomic ConditionLocal EconomyLocated in the nation's capital, the Authority's operations are influenced by the economic conditionsof the District of Columbia (DC), and the surrounding jurisdictions of Maryland and Virginia.During the first part of fiscal year 2009, the region experienced growth as a result of an expansionin federal spending and jobs. However, during the latter part of the fiscal year, the loss of privatesector jobs led to the increase in the DC unemployment rate to 10.9 percent, directly impacting busand rail ridership. Rail capacity and ridership were also impacted by the June 22, 2009 rail caraccident.Current economic indicators are mixed. While the impact of the recession is lessened by thepresence of the federal government, the unemployment rate will continue to impact the region'seconomy and the Authority's ridership. Additional growth of the federal government - andspending - is anticipated. In addition to direct federal job creation, the region's defense and othercontractors are anticipated to benefit from increased government spending in the short-term. This isexpected to continue to lessen the impact that the recession has on the DC area.Long-term Financial PlanningMetro MattersThe Authority and the local jurisdictions developed and executed a formal long-range comprehensivefunding agreement for capital improvements, commonly known as "Metro Matters". This is the sixthyear of the six-year Metro Matters program. Metro Matters uses a pay-as-you-go funding strategyand has the following six main components:• Infrastructure Renewal Program: including Metrorail and Metrobusmaintenance and rehabilitation,Rail Car Program: including purchase of new rail cars, the upgrade of powerand signal systems required for eight-car train operations and modificationsto facilities to create additional maintenance capacity for fleet expansion,Bus Program: including purchase of advanced technology buses to addressovercrowding, regional bus stop database, maps and stop improvements,and analysis of future service requirements,• Security Program: including providing a continuity of operations, mainly inthe form of an alternative operations control center,System Expansion Program: including providing for future investments,• Credit facility: including providing funds as required.The current version of Metro Matters will expire on June 30, 2010. The Authority and the localjurisdictions are working on a new funding agreement that will support a continuing commitment tofund the Authority's capital improvement program after June 30, 2010.American Recovery and Reinvestment Act of 2009The Authority has received a commitment of nearly $202 million from the American Recovery andReinvestment Act of 2009 to fund 29 projects. The Authority's projects are focused on stimulating thelocal and national economy by creating jobs and building a stronger regional transit system. All of theprojects are linked to the Authority's strategic goals of ensuring safety, delivering quality service,improving reliability and using resources wisely.3