1

FY 2006 BUDGET PROPOSAL

Sacramento Regional Transit District

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Ridership is Up!

Overall Cost Efficiency Is Improving - - Cost Per Revenue Service Hour on Bus & Rail Down.

Cost Containment/Productivity Measures areUnderway - - with Results!

THE GOOD NEWS . . .

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WHY FARE AND SERVICE CHANGES? SINCE FY 2000…

Rail Service Up -- +74%

Bus Service Up -- +32%

ADA/Paratransit Service Up -- +28%

RT Farebox Revenue Flat

No Increased Federal, State, or Local Operating Revenue Sources

One Fare Increase in 18 years!

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BUS & LIGHT RAIL SERVICE

400

450

500

550

600

650

700

750

800

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

Esti

mat

ed

Bu

s R

SV

H/1

00

0

80

100

120

140

160

180

200

Ra

il R

SV

H/1

00

0

BUS RAIL

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DEFICIT REDUCTION STRATEGIES

Reduce & Contain Cost

Improve Productivity

Reduce ServiceIncrease Revenue

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FY 2006 BUDGET CHALLENGES

REVENUE

“Flat” System – Generated Revenue

State Transportation Funding “Erosion”

“Uncertain” Federal Funding

EXPENSES

Cost Increases

System Expansion (significant over past 3 years)

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FY 2006 DEFICIT REDUCTION PLAN

Reduced Staffing Levels

New Health Care Coverage/First-Time Employee Contributions

Workers’ Compensation Case Management

Safety & Security Enhancement

“Contracting Out” Opportunities

Other Reductions (i.e., Travel, Outside Services)

REDUCE & CONTAIN COSTS

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Operator Attendance Improvement Implement CBS Rate ADA/Paratransit Contracting Changes

Reduce Fare Evasion Increase Fares Real Estate Programs (i.e., Fiber Lease, TOD, Surplus Property

Sale, Vendor Program) Pursue Other Opportunities (i.e., Lease Transaction, CIP Update)

Eliminate Non-Productive/Low-Performing Service

IMPROVE PRODUCTIVITY

FY 2006 DEFICIT REDUCTION PLAN

INCREASE REVENUE

REDUCE SERVICE

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OPERATING REVENUE – WHERE DOES IT COME FROM?

Other System Revenue

$4.4M (3.3%)Contract Services$4.7M (3.5%)

Federal$19.3M (14.4%)

State and Local$78.3M (58.6%)

Fare Revenue$27.0M (20.2%)

Total = $133.7 million

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RT AVERAGE FARE PER BOARDING

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

$0.90

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05Estimated

Average Fare Per Boarding Average Fare Per Boarding (2005 $'s)

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FARE RECOVERY RATIO

0%

5%

10%

15%

20%

25%

30%

35%

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05Estimated

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OPERATING EXPENDITURES – WHERE DOES IT GO?

Professional & Contract Services

$5.5M (25.8%)

Transit Security$6.3M (29.6%)

ADA Paratransit$9.5M (44.6%)Services

$21.3M (15.9%)

Debt Service$2.1M (1.6%)

Miscellaneous$4.5M (3.4%)

Insurance & Liability

$9.1M (6.8%)Parts & Supplies$14.1M (10.5%)

Labor & Fringe Benefits

$82.6M (61.8%)

Total = $133.7 million

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RT COST PER REVENUE SERVICE HOUR (RSH)

$0

$50

$100

$150

$200

$250

$300

$350

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05Estimated

Bus Bus (2005 $'s) Rail Rail (2005 $'s)

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RT STAFFING LEVELS(FY 2006)

TOTAL # OF AUTHORIZED POSITIONS 1229

TOTAL # RT MANAGERS* 50 4.1 %

TOTAL %

DIRECT OPERATIONS 986 80.2

OPERATIONS SUPPORT 60 4.9

ENGINEERING & CONSTRUCTION 47 3.8

GENERAL ADMINISTRATION 136 11.1

* Includes all RT Managers/Superintendents/ Administrator Positions

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Transit Oriented Development

0.3%

Overhead Labor & Fringe11.4%

Debt Service1.6%

Other Overhead6.4%

Rail Operations25.5%

ADA Paratransit8.1%

Community Bus Service

2.0%

Fixed Route Bus

44.8%

OPERATING COST BY TRANSIT MODE

Total = $133.7 million

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RT TRANSIT SERVICES COMPARISON*

*Based on FY04 audited data. **Paratransit data based on trips not boardings.

BUSADA/

PARATRANSIT FAREBOX RECOVERY 22.50% 18.80% 6.80%

COST PER BOARDING/TRIP** $ 3.22 3.84 40.48

COST PER REVENUE SERVICE HOUR $ 230.01 107.30 67.93

SUBSIDY PER PASSENGER/TRIP $ 2.66 2.83 37.73

LIGHT RAIL

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FUTURE REALITY…

Focus on “Financial Sustainability”

Live Within Our Means

Balance “System Maintenance & Preservation” with “System Growth”

Align Future Plans with Funding Reality

Help Build Public Support for Increased Local Transportation Funding

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Fare Policy Study

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Recommended Fixed Route Fare Structure

Local Bus Routes

Rail Trips (1-14 stations) Hub Bus Routes Rail Trips (>14 stations)

Rider Category Current Recommended Current Recommended Current Recommended

Full Fare $1.50 $2.00 $0.50 $1.00 n/a $3.00

Reduced Fare $0.75 $1.00 $0.50 $0.50 n/a $1.50

Cash Fares:

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Recommended Fixed Route Fare Structure

Prepaid:

Additional fare policies: eliminate transfers; retain Lifetime Pass for seniors over age 74; $1.00 route deviation charge; $3.00 day pass for classroom trips.

Daily Pass Semi-Monthly Pass Monthly Pass

Rider Category Current Recommended Current Recommended Current Recommended

Full Fare $3.50 $6.00 n/a $40.00 $60.00 $80.00

Reduced Fare:

Senior, Disabled $1.75 $3.00 n/a $20.00 $30.00 $40.00

Student $1.75 $3.00 $7.50 $10.00 $15.00 $20.00

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Recommended ADA Fare Structure

Fare Category Current RecommendedBase Fare

ADA Fares

Cash

Guest

Child

Personal Care Attendant

Monthly Pass

$1.50

$3.00

$3.00

$1.50

Free

$100.00

$2.00

$4.00

$4.00

$2.00

Free

$100.00

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The Recommended Fare Structure Meets RT’s Fare Revenue Targets

FARE STRUCTURE SCENARIO FY2005 FY2006 FY2007 FY2008 FY2009 FY2010BaselineRidership 31,807,000 33,067,000 34,468,000 35,485,000 36,816,000 39,270,000Fare Revenue $22,000,000 $22,909,000 $23,895,000 $24,591,000 $25,499,000 $27,219,000Average Fare Per Trip $0.69 $0.69 $0.69 $0.69 $0.69 $0.69Recommended Fare StructureRidership 31,807,000 32,123,000 32,528,000 33,508,000 34,802,000 37,219,000Fare Revenue $22,000,000 $26,744,000 $32,044,000 $32,972,000 $34,203,000 $36,640,000Average Fare Per Trip $0.69 $0.83 $0.98 $0.98 $0.98 $0.98

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Alternative Fare Considerations

• Earlier new fare start date: September 2005– Base fare increased to $1.75– Retain transfers at 25-cent charge– Daily pass at $4.50

• Increase floating zones to15 stations• Eliminate hub service fares• Retain pre-paid tickets for social service agencies• Equalize discounts for special groups

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Service Change Proposal

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Potential September 2005 Service Reduction Plan

Service Type Revenue HoursExisting Service Level Annualized 736,500 June 2005 Service Reductions* (7,400) September 2005 Service Reductions (18,100) FY06 TOTAL 711,000

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Potential September 2005 Service Reductions

• Entire Route Elimination

• Service Span/Day Reduction

• Frequency Reduction

• Individual Trip Elimination

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Entire Route Elimination

• Route 12 (Exposition)

• Route 76 (La Rivieria-American River)

• Route 79 (River Park- La Rivieria)

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Route 12 (Exposition)Route 12 Ridership per Revenue Hour by Month

FY02-FY04

-

5

10

15

20

25

30

Jul0

1

Sep01

Nov01

Jan02

Mar0

2

May02

Jul0

2

Sep02

Nov02

Jan03

Mar0

3

May03

Ju103

Sep03

Nov03

Jan04

Mar0

4

May04

Month

Passengers p

er R

H

Route 12 RidershipFY02 Service Standard

FY03 Service StandardFY04 Service Standard

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Route 76 (La Rivieria-American River)

Route 76 Ridership per Revenue Hour by MonthFY02-FY04

-

5

10

15

20

25

30

35

Month

Passengers p

er R

H

Route 76 RidershipFY02 Service Standard

FY03 Service StandardFY04 Service Standard

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Route 79 (River Park- La Rivieria)

Route 79 Ridership per Revenue Hour by MonthFY02-FY04

-2468

101214161820

Month

Passengers p

er R

H

Route 79 RidershipFY02 Service Standard

FY03 Service StandardFY04 Service Standard

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Service Span/Day Reduction• Route 5 (Meadowview Valley Hi)

• Saturday: Eliminate trips after 7pm• Sunday: Eliminate trips after 7pm

• Route 6 (Land Park)• Saturday: Eliminate service• Sunday: Eliminate service

• Route 9 (Carmichael)• Saturday: Eliminate service

• Route 10 (Carmichael-Dewey)• Saturday: Eliminate service

• Route 13 (Northgate)• Saturday: Eliminate service• Sunday: Eliminate service

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Service Span/Day Reduction continued

• Route 15 (Rio Linda Blvd.-T St)• Weekday: Eliminate trips after 7:30 pm

• Route 16 (Del Paso Heights-Norwood) • Weekday: Eliminate trips after 7pm

• Route 17 (Del Paso Heights-McClellan) • Saturday: Eliminate service

• Route 18 (Del Paso Heights- Bell Ave)• Weekday: Eliminate trips after 7pm• Saturday: Eliminate service

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Service Span/Day Reduction continued

• Route 21 (Sunrise)• Weekday: Eliminate trips after 10pm• Saturday: Eliminate trips after 10pm• Sunday: Eliminate trips after 10pm

• Route 22 (Arden)• Saturday: Eliminate service• Sunday: Eliminate trips after 7:30 p.m.

• Route 25 (Marconi)• Saturday: Eliminate service

• Route 28 (Fair Oaks-Folsom Blvd)• Saturday: Eliminate trips after 7:30 pm• Sunday: Eliminate trips after 7:30pm

• Route 30 (J Street)• Saturday: Eliminate trips after 7:30 pm

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Service Span/Day Reduction continued

• Route 36 (Folsom) • Saturday: Eliminate service • Sunday: Eliminate service

• Route 37 (Tahoe Park-21st Ave) • Saturday: Eliminate service

• Route 51 (Broadway – Stockton)• Weekday: Eliminate trips after 10 pm

• Route 54 (Center Parkway) • Sunday: Eliminate service

• Route 55 (Center Parkway) • Weekday: Eliminate trips after 7 pm

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Service Span/Day Reduction continued

• Route 61 (Fruitridge) • Sunday: Eliminate service

• Route 64 (24th St-City College)• Saturday: Eliminate service

• Route 72 (Rosemont-Lincoln Village)• Weekday: Eliminate trips after 7pm

• Route 73 (White Rock)• Weekday: Eliminate trips after 7pm

• Route 74 (International)• Weekday: Eliminate trips after 7pm

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Service Span/Day Reduction continued

• Route 75 (Mather Field)• Weekday: Eliminate trips after 7 pm

• Route 82 (Howe-65th St)• Saturday: Eliminate service• Sunday: Eliminate service

• Route 91 (Citrus Heights-Sunrise)• Weekday: Eliminate trips after 7:30pm• Sunday: Eliminate service

• Route 143 (East End-Amtrak)• Friday: Eliminate special Friday service• Saturday: Eliminate service

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Frequency Reduction

• Route 24 (Madison-Greenback) • Weekday: Increase headways to 60 minutes

• Route 140 (Ziggurat-Downtown)• Weekday: Increase headways to 60 minutes between 9am and

3pm• Route 141 (3rd/16th Streets)

• Weekday: Increase headways to 60 minutes between 9am and 3pm

• Route 142 (9th/10th Streets)• Weekday: Increase headways to 60 minutes between 9am and

3pm• Route 143 (East End-Amtrak)

• Weekday: Increase headways to 60 minutes between 9am and 3pm

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Individual Trip Elimination

Route Route DescriptionService

DayTrip Start

TimeTrip

Direct.Observed

RdshpRdshp per RH

Productivity Threshold

54 CENTER PARKWAY WKD 18:39 Outbound 9 12 1263 24TH ST - HOGAN WKD 17:57 Inbound 5 4 1364 24TH ST - CITY COLLEGE WKD 19:06 Outbound 1 1 1387 HOWE-NORTH SAC SAT 20:29 Inbound 5 7 151 GREENBACK SUN 21:18 Outbound 5 7 15

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NEXT STEPS

April 25, 2005 FY 2006 Budget Proposal (60-day Public Review Period) Fare Restructuring/Increase ProposalService Reduction Plan

Apr 27– May 17 6 Community Information Sessions

May 23 Public Hearing on FY 2006 Budget Proposal City of Sacramento Council Chambers (6:00pm)

June 13 RT Board Meeting

June 27 FY 2006 Budget Adoption

July 1 Fiscal Year 2006 Begins

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COMMUNITY MEETING SCHEDULE(7:00 p.m. – 8:30 p.m.)

April 27 Mills Building (Mather Field/Mills Light Rail Station)

May 2 Oak Park Community Center (3425 Martin Luther King Jr. Blvd)

May 3 Robertson Community Center (3525 Norwood Avenue)

May 4 Citrus Heights City Hall (6237 Fountain Square Drive)

May 11 Sacramento County Sheriff’s Station (2500 Marconi Avenue, Suite 100)

May 17 Sam Pannell Community Center (2450 Meadowview Road)

Email Comments to: fcp_comments@sacrt.com