Metropolitan Transportation Authority July 2009 Financial Plan 2010-2013 1 MTA 2010 Preliminary...

Metropolitan Transportation Authority1

July 2009 Financial Plan 2010-2013

MTA 2010 Preliminary Budget

July Financial Plan 2010 – 2013



February Financial PlanClosing Cash Balance

($ in millions)

$49

($290)

($457)

($612)

($650)

($550)

($450)

($350)

($250)

($150)

($50)

$50

2009 2010 2011 2012

2009 201023% Fare/Toll Yield Increase $704 $1,183Additional Actions for Budget Balance 261 401

2009 Adopted Budget balanced only through large fare & tollincreases and significant service reductions.



Financial Assistance for MTA

Enacted State legislation provides MTA with $1.1 billion in 2009 and $1.9 billion in 2010 from the following sources:

MTA Board actions:

•Changed the scheduled fare/toll yield increase of 23% to 10%

•Restored planned reductions of scheduled service to the public

2010 ForecastAll within the Metropolitan Commuter Transportation District: ($ in millions)

Mobility Tax 0.34% tax on payroll expenses and net earnings from self employment

$1,540

Auto Registration Fee supplemental fee of $25 per year on the registration and renewal registration of motor vehicles

$27

License Fee supplemental fee of $1 for each 6 month period of validity of a learner's permit or a driver's license

$182

Taxicab Tax .50 cents per taxicab ride imposed on taxicab owners $85

Auto Rental Tax supplemental tax of 5% of the cost of rentals of automobiles $35



Overview of the July Financial Plan

• Recognizes new revenue sources

• Lowers forecasted revenues from real estate taxes, state dedicated taxes, and utilization

• Allocates higher funding for additional pension expense

• Maintains service levels

• Provides funds for new Capital Plan



2009 2010 2011 2012

Pensions ($47) ($77) ($133) ($177)Real Estate Transaction Taxes (424) (270) (244) (220)Utilization (103) (131) (121) (135)State Dedicated Taxes (2) (54) (109) (91)

($576) ($532) ($607) ($622)

Impact of the Worsening EconomyPlan-to-Plan Changes ($ in millions)



Pensions Plan-to-Plan Changes

• The February Plan included a provision for losses in the assets of the MTA Defined Benefit Plans and MABSTOA

• The July Baseline includes additional expenses to account for higher NYCERS costs based on a revised actuarial valuation

• In addition, this plan establishes a reserve for expected increases in NYCERS contributions ($27 million in 2010 growing to $189 million in 2013). Those losses are expected in the NYCERS valuation for the City fiscal year 2009 with cash impacts beginning in late 2010



Monthly Total Real Estate Taxes2007 to 2009 Actuals

( in millions)

128.6

152.2

158.4

151.9

122.2

104.8

86.3

69.264.2

35.0 36.5 35.5

134.9

111.1

79.3

28.629.325.2

$0

$20

$40

$60

$80

$100

$120

$140

$160

January February March April May June

2007 Actual

2008 Actual

2009 Actual



Real Estate Transaction Tax ReceiptsDeclines Have Exceeded Previous Worst Case

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

July 2009 Financial Plan vs. February 2009 Financial PlanJuly 2009 Financial Plan vs. February 2009 Financial PlanReflects decreases from the February Financial Plan to the July Financial Plan.

Real Estate Taxes ($ in millions)

2005 $1,282.82006 $1,432.02007 $1,587.02008 $942.52009 $456.72010 $577.82011 $637.82012 $744.32013 $842.1

2005-2008: Actual Receipts

2009-2013: July Plan

Blue curve represents adjusted real estate transactions taxes from 1983 through 1991.



New York City Employment ChangeYear-over-Year Change in Employment

-3%

-2%

-1%

0%

1%

2%

3%



MTA Consolidated Ridership(in millions)

2,705

2,677

2,657

2,626

2,608

2,588

2,520

2,540

2,560

2,580

2,600

2,620

2,640

2,660

2,680

2,700

2,720

2008 2009 2010 2011 2012 2013



2009 2010 2011 2012

February Closing Cash Balance $49 ($290) ($457) ($612)

Cash Carryover 265 49 0 0

MTA Policy & Gap Closing Actions 118 290 679 796

February Cash Balance before Carryover and Policy & Gap Closing ($334) ($629) ($1,136) ($1,408)

Board Actions (AABB Restorations; Change in Fare/Toll Increase) (572) (913) (903) (907)

New Needs/Investments (47) (33) (26) (93)

Baseline Passenger/Toll Revenue (103) (131) (121) (135)

Other Adjustments (83) 37 (50) (59)

Subsidies (including New State Taxes & Fees) 885 1,618 1,643 1,760

Total Changes $80 $577 $542 $567

July Baseline Cash Balance ($255) ($52) ($595) ($842)

MTA Policy & Cash Management Actions and Gap Closing Programs 20 62 557 489

Cash Carryover 263 29 39 1

July Plan Net Cash Balance after Carryover & Gap Closing $29 $39 $1 ($352)

Changes from the February Financial Plan($ in millions)



2009/10 Expenditure Control

2010 Savings

2009 PEG Program & Maintained AABBs $288

2010 PEG Program 64

$352 5.4% expense reduction



3.3%

7.0%

1.6%

3.6%

7.1%

1.5%

3.5%

7.4%

0.8%

4.0%

8.3%

0.9%

4.8%

9.0%

1.8%

0.0%

5.0%

10.0%

2009 2010 2011 2012 2013

Total Operating Expenses

Uncontrollable Expenses

Controllable Expenses

Year-to-Year Changes in Expenses

Uncontrollable Operating Expenses include Paratransit Service Contracts, Fuel for Buses & Trains, Traction & Propulsion Power, OPEB Current Payment, Health & Welfare, Pensions, and Insurance.

Controllable Operating Expenses include Payroll, Overtime, Claims, Other-Fringe Benefits, Reimbursable Overhead, Maintenance & Other Operating Contracts, Professional Service Contracts, and Materials & Supplies, Other Business Expenses, Other Expense Adjustments, and Gap Closing Actions.

Total Operating Expenses includes the impact of the Gap Closing Actions but excludes Debt Service and the General Reserve.



Financial Plan Risks

• Regional economy does not rebound as anticipated; double-dip recession

• Energy price volatility• Labor arbitration ruling inconsistent with Financial Plan• Revenues from new State taxes and fees do not meet

financial plan assumptions

Metropolitan Transportation Authority July 2009 Financial Plan 2010-2013 1 MTA 2010 Preliminary...

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