Valley Metro Governance, Funding, and Finance Overview

Valley Metro Governance, Funding and Finance

Governance 2

Milestones Proposition 300 approved 1985 Regional Public Transportation Authority (RPTA) is established 1986 1989 Valtrans is presented to voters but fails Regional tax to support transit/freeways fails 1994 Tempe voters approve a dedicated transit tax 1996 Phoenix voters approve a dedicated transit tax 2000 Glendale voters approve transportation tax 2001 Valley Metro Rail, Inc. was established 2002 Maricopa County voters approve Proposition 400 half-cent sales tax (1/3 dedicated to transit) 2004 Valley Metro RPTA and Valley Metro Rail Boards of Directors select a single CEO for both agencies 2012 Phoenix voters approve increase and extension of dedicated transit tax (T2050) 2015 3

Governance Structure RPTA VMR Board of Directors Board of Directors Audit & Finance Subcommittee Chief Executive Officer RPTA & VMR Board Subcommittee Rail Transit Management Committee Management Committee Regional Transit Advisory Group Intergovernmental Representatives Regional Marketing Committee Financial Working Group Service Planning Working Group Security Steering Committee East Valley Dial-a-Ride Working Group Risk Management Committee Service Standards Working Group Regional Fare Working Group TOD Working Group Valley Metro Governance and Policy Structure Standing Member Agency Staff Committees Ad Hoc Member Agency Staff Committees 4

RPTA Board of Directors RPTA is a political subdivision of the State. Membership is open to all cities and towns in the County as well as the County government. Each member appoints an elected official to the Board of Directors. Voting is normally done with each member having an equal vote, however a weighted vote option is available based on population. Member agencies (18): City of Avondale City of Buckeye City of Chandler City of El Mirage Town of Fountain Hills Town of Gilbert City of Glendale City of Goodyear Maricopa County City of Mesa City of Peoria City of Phoenix City of Scottsdale City of Surprise City of Tempe City of Tolleson Town of Wickenburg Town of Youngtown Councilmember Pat Dennis Councilmember Eric Orsborn Councilmember Kevin Hartke (Vice Chair) Vice Mayor Robert Jones Mayor Linda Kavanagh Vice Mayor Brigette Peterson Vice Mayor Lauren Tolmachoff (Chair) Councilmember Bill Stipp Supervisor Steve Gallardo Councilmember Chris Glover Vice Mayor Jon Edwards Councilmember Thelda Williams (Treasurer) Councilmember Suzanne Klapp Councilmember Skip Hall Vice Mayor Robin Arredondo-Savage Councilmember Linda Laborin Mayor Everett Sickles Mayor Michael LeVault 5

Valley Metro Rail Board of Directors Valley Metro Rail (VMR) is a public nonprofit entity created through a Joint Powers Agreement to plan, design, build and operate light rail. Local governments contribute to funding the operation of the light rail system. All voting is done with a weighted vote, based on a formula that uses funding level and planned or constructed rail track miles. Member agencies (5): City of Chandler City of Glendale City of Mesa City of Phoenix City of Tempe Vice Mayor Kevin Hartke Mayor Jerry Weiers Councilmember Chris Glover Councilmember Thelda Williams (Chair) Vice Mayor Robin Arredondo-Savage (Vice Chair) 6

Joint Board Sub-Committee In 2012, the Boards merged the agency staff. The Board Sub-Committee was formed to ensure that the CEO would receive unified direction from the two Boards. Should any conflict arise between the two Boards on policy direction, the Sub-Committee would meet to resolve the conflict. Members (4): City of Chandler City of Glendale City of Mesa City of Phoenix Vice Mayor Kevin Hartke Vice Mayor Lauren Tolmachoff Councilmember Chris Glover (Chair) Councilmember Thelda Williams (Vice Chair) 7

Audit and Finance Sub-Committee The Audit and Finance Sub-Committee was established to monitor and oversee the two agencies budgets, finances and audits, both external and internal. Members (5): City of Buckeye Town of Gilbert City of Phoenix City of Surprise City of Tempe Councilmember Eric Orsborn (Chair) Councilmember Brigette Peterson Councilmember Thelda Williams (Vice Chair) Councilmember Skip Hall Vice Mayor Robin Arredondo-Savage 8

Finance and Funding 9

Federal Funding FY18 Federal Apportionments (posted to FTA web site on May 7, 2018) FY18 FInal Apportionments Avondale/ Goodyear $52,641,177 $0 $0 $3,166,848 $4,159,451 $4,028,855 $6,478,523 Program Phoenix/ Mesa Valley Metro 5307 Urbanized Area 5309 Core Capacity 5309 Small/New Starts 5310 Enhanced Mobility 5337 SOGR - FG 5337 SOGR - HiBus 5339 Bus & Bus Facilities 5339 Bus & Bus Facilities CMAQ flex CMAQ flex (ALCP) STP flex STP flex (ALCP) Total - Total FTA formula - Total FTA discretionary - Total FHWA flex $3,195,661 $22,977,298 $0 $0 $0 $0 $592,000 $4,159,451 $94,957 $0 $6,478,523 $17,396,571 $1,213,106 $3,005,310 $10,627,204 $102,717,045 $70,474,854 $0 $0 $0 $0 $17,396,571 $1,213,106 $2,710,000 $10,627,204 $66,154,153 $34,207,272 $3,290,618 $3,290,618 $0 $0 $0 $0 $32,242,191 $31,946,881

State Funding Constitution restricts the use of motor vehicle taxes Street/highway purpose only Arizona Lottery Funds $11.5 million per year Mandated by court

Local Funding Regional Prop 400 one-third of 0.5% for transit (2025) Board policy allocates between bus and rail programs Phoenix 0.7% for transportation (2050) Tempe 0.5% for transit (perpetuity) Glendale 0.5% for transportation (perpetuity) Mesa general funds

Transit Life Cycle Program Developed in 2005 to support Proposition 400 implementation Ensures transit projects supported by cent tax are balanced Guiding Principles to develop policies Policies to guide implementation Policies to guide changes to program Financial model Updated annually to ensure revenues are sufficient Life of the current cent transportation tax 13

Prop 400 Revenues $450.00 $400.00 $350.00 $300.00 $2.0 billion shortfall $250.00 Millions $200.00 $150.00 $100.00 $50.00 $0.00 Fiscal Year 14 RTP Forecast 2017 Forecast

Regionally Supported Projects Revenues from Prop 400 may be used for: Operations for bus, ADA paratransit services Regional support services Planning Purchases of fleet Construction of capital facilities Construction of rail extensions Revenues may not be used for: Operations for light rail, circulator services Non-ADA paratransit service 15

System-wide Financial Information 16

Transit Ridership 17

FY19 RPTA Revenues Sources of Funds FY17 Actual FY18 Budget FY19 Budget Operating Public Transportation Funds Regional Area Road Funds Transit Service Reimbursements AZ Lottery Funds Federal Funds Fares MAG Funds Other Carry Forward & Reserves Sub-Total Operating *Note 1 73,966,000 $ 5,150,000 30,767,000 1,140,000 12,351,000 13,960,000 250,000 1,346,000 138,930,000 77,423,000 $ 4,900,000 39,101,000 11,010,000 15,130,000 225,000 862,000 4,842,000 153,493,000 81,225,000 $ 4,960,000 42,039,000 9,872,000 12,989,000 500,000 304,000 4,763,000 156,652,000 2 - - 3 4 - Pass-Through VMR Reimbursements AZ Lottery Funds Sub-Total Pass-Through 15,073,000 11,524,000 26,597,000 21,409,000 11,200,000 32,609,000 23,146,000 11,200,000 34,346,000 5 Total Operating 165,527,000 186,102,000 190,998,000 Capital Public Transportation Funds Federal Funds Other Carry Forward & Reserves Total Capital 40,044,000 7,418,000 327,000 47,789,000 24,378,000 54,317,000 196,000 21,708,000 100,599,000 23,751,000 37,304,000 194,000 18,754,000 80,003,000 6 7 - 8 Pass-Through VMR Public Transportation Funds Program Other Sub-Total Pass-Through 71,275,000 380,000 71,655,000 43,487,000 43,487,000 47,072,000 47,072,000 9 - - Total Capital 119,444,000 144,086,000 127,075,000 18 Total Sources of Funds 284,971,000 $ 330,188,000 $ 318,073,000 $

FY19 RPTA Operating Budget FY17 Actual FY18 Budget FY19 Budget FY19 Operating Operating Valley Metro Rail 12% Fixed Route Operations Paratransit Operations Vanpool Operations Planning Commute Solutions Regional Services Administration and Finance Sub-Total Operating 85,908,000 35,161,000 862,000 1,679,000 1,337,000 10,091,000 2,513,000 137,551,000 $ 93,311,000 38,767,000 952,000 2,547,000 1,283,000 11,560,000 4,573,000 152,993,000 $ 94,867,000 39,087,000 952,000 3,923,000 1,270,000 12,082,000 4,158,000 156,339,000 $ Fixed Route Operations 50% AZ Lottery Funds Disbursements 6% VMR RARF Disbursements Less than 1% Paratransit Operations 20% Pass-Through VMR RARF Disbursements AZ Lottery Funds Disbursements Valley Metro Rail Sub-Total Pass-Through Commute Solutions 1% Administration and Finance 2% Regional Services 6% Planning 2% 500,000 11,524,000 15,952,000 27,976,000 500,000 11,200,000 21,409,000 33,109,000 500,000 11,200,000 22,959,000 34,659,000 Total Operating 165,527,000 $ 186,102,000 $ 190,998,000 $ 19

FY19 RPTA Capital Budget FY17 Actual FY18 Budget FY19 Budget FY19 Capital Capital Regional Fleet 32% Regional Fleet Regional Facilities Other Regional Projects Member Agency Disbursements Debt Service Sub-Total Capital $ 7,436,000 320,000 2,768,000 13,791,000 23,474,000 47,789,000 57,915,000 6,587,000 3,578,000 8,327,000 24,192,000 100,599,000 $ $ 40,783,000 7,284,000 1,502,000 7,065,000 23,369,000 80,003,000 VMR Reserve for Capital 13% Regional Facilities 6% Other Regional 1% Member Agency Disbursements 6% Pass-Through Rail Program Disbursements VMR Reserve for Future Use Sub-Total Pass-Through VMR PTF Disbursements 24% Debt Service 18% 71,655,000 71,655,000 29,817,000 13,670,000 43,487,000 29,897,000 17,175,000 47,072,000 - Total Capital 119,444,000 $ 144,086,000 $ 127,075,000 $ 20

FY19 VMR Revenues FY17 Actual FY18 Budget FY19 Budget Sources of Funds Operating Advertising Fares Federal Funds MAG Funds Member City Contributions Public Transportation Funds Regional Area Road Funds Other Total Operating *Note 1,100,000 13,363,000 2,394,000 500,000 29,837,000 6,075,000 500,000 53,810,000 $ 1,100,000 14,300,000 4,392,000 500,000 35,092,000 14,362,000 500,000 70,246,000 $ 1,100,000 14,343,000 2,682,000 500,000 38,177,000 11,382,000 500,000 68,684,000 $ 1 2 3 41,000 - - Capital Federal Funds Member City Contributions Public Transportation Funds TPAN Other Total Capital 45,339,000 7,573,000 3,349,000 188,000 56,449,000 126,206,000 53,060,000 15,541,000 392,000 195,199,000 164,286,000 33,657,000 18,515,000 23,000,000 239,458,000 4 5 6 7 - - - Total Sources of Funds 110,259,000 $ 265,445,000 $ 308,142,000 $ 21

FY19 VMR Operating Budget FY17 Actual FY18 Budget FY19 Budget Operating Rail Operations & Maintenance Future Project Development Agency Operating 41,481,000 $ 11,185,000 1,144,000 47,943,000 $ 20,718,000 1,585,000 52,041,000 $ 14,909,000 1,734,000 FY19 Operating Total Operating 53,810,000 $ 70,246,000 $ 68,684,000 $ Rail Operations & Maintenance 76% Future Project Development 22% Agency Operating 2% 22

FY19 VMR Capital Budget FY17 Actual FY18 Budget FY19 Budget Capital Gilbert Road Extension 50th Street Station Tempe Streetcar South Central Northwest Phase II OMC Expansion Northwest Phase I Central Mesa Extension Systemwide Improvements 33,233,000 $ 3,816,000 8,058,000 691,000 1,213,000 9,380,000 77,789,000 $ 11,363,000 46,477,000 36,100,000 3,197,000 1,961,000 18,312,000 65,901,000 $ 8,779,000 48,071,000 62,353,000 21,737,000 7,114,000 234,000 25,269,000 FY19 Capital 6,000 - - South Central 26% - Northwest Phase II 9% - - OMC Expansion 3% Tempe Streetcar 20% Systemwide Improvements 11% Total Uses of Funds 56,397,000 195,199,000 239,458,000 Central Mesa Extension <1% 50th Street Station 4% Gilbert Road Extension 27% 23

Economic Investment 24

Questions