File #: 2016-0036   
Type: Budget Status: Filed
File created: 1/12/2016 In control: Executive Management Committee
On agenda: 2/18/2016 Final action: 2/18/2016
Title: RECEIVE AND FILE the FY17 Budget Planning Parameters.
Sponsors: Finance, Budget and Audit Committee
Indexes: Azusa, Budget, Budgeting, Contracts, Fuels, Gold Line Foothill Extension 2A, Metro Gold Line, Metro Rail A Line, Metro Rail L Line, Non-contract, Santa Monica, Transportation Development Act of 1971, Westside Cities subregion, Westside/Central Service Sector
Attachments: 1. Attachment A - FY17 Planning Parameters Financial Summary, 2. Attachment B - Presentation
Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
FEBRUARY 18, 2016
FINANCE, BUDGET AND AUDIT COMMITTEE
FEBRUARY 17, 2016

Subject/Action
SUBJECT: FY17 BUDGET PLANNING PARAMETERS
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE the FY17 Budget Planning Parameters.
Issue
ISSUE

The budget planning parameters describe the revenue and cost growth factors for the regional transportation system, and include sales tax revenues, fare revenue, levels of service, labor and Consumer Price Index (CPI) assumptions that guide the allocation of resources for the development of the upcoming annual budget.
As the budget development process continues and additional information becomes available, these parameters may be modified accordingly. Changes and updates will be incorporated and reported back to the Board in the upcoming budget process.
Discussion
DISCUSSION

Metro projects a balanced budget for FY17. The budget will align resources according to the following CEO goals:
- Advance safety and security for our customers, the public and Metro employees
- Exercise fiscal discipline to ensure financial stability
- Plan and deliver capital projects on time and on budget while increasing opportunities for small business development and innovation
- Improve the customer experience and expanding access to transportation options
- Increase transit use and ridership
- Implement an industry-leading state of good repair program
- Invest in workforce development and promoting extraordinary innovation

Budget Planning Parameters and Rationale

A. Sales Tax & TDA Revenue Forecast: Sales tax growth has been in a cooling mode from the post-recession recovery peak as indicated in Figures 1 and 2. It has slowed down from a growth rate of 4.4% in FY14 to 4.0% in FY15 and 2.4% (estimated) in FY16. It is assumed that the FY17 sales tax growth rate will continue at the FY16 level at 2.4%. This assumption will be re-evaluated as ...

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