Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
APRIL 14, 2016
Subject/Action
SUBJECT: FISCAL YEAR 2017 (FY17) BUDGET DEVELOPMENT STATUS
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE report on Fiscal Year 2017 Budget Development Status.
Issue
ISSUE
The FY17 Budget Development process started at the beginning of 2016 with the board adoption of the Risk Allocation Matrix (RAM) to identify a strategic mix of cost savings and revenue generating new initiatives with the goal to foster a culture of financial discipline throughout Metro to ensure Metro's long term financial stability. Next, the major budget planning parameters were reviewed such as sales tax, Consumer Price Index (CPI) and service hours which determine the revenue available as well as the primary key cost drivers in the budget. The preliminary FY17 capital program was discussed next which covered 41 percent of the total budget.
This monthly status report for the FY17 Budget will include a summary of the preliminary budget shown by program, the preliminary bus and rail operations budget comprising 28 percent of the budget, a summary of the Full-Time Equivalent (FTE) position requests and an update on the sales tax assumption.
Discussion
DISCUSSION
Expenditures Summary
The agency implemented a zero-based budget process for FY17 which is a deliverable based approach in building the budget. Through this process, we were able to prioritize projects and redeploy expenditures and resources to the core needs for the upcoming fiscal year. This also further reinforces the agency's commitment to tighten budget controls, exercise fiscal discipline in the allocation of limited resources and drive accountability.
As a result, the FY17 Budget includes a decrease in total agency expenditures of $118.8 million, which is a 2 percent decrease, from $5.8 billion in FY16 to $5.68 billion in FY17. This budget decrease is reached despite absorbing increases in costs for fuel and propul...
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