ARC TAQC. June 12, 2014
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1 ARC TAQC June 12, 2014
2 MARTA AT A GLANCE 9th largest transit system in U.S. Approximately 418,000 weekday boardings 4,536 total employees Major contributor to regional and state economy
3 ECONOMIC IMPACT 7,800 jobs in Fulton/DeKalb Counties 24,800 jobs supported statewide $1.4 billion in economic activity supported annually MARTA impact similar to insurance and hospitality industries in Georgia Of Atlanta s 18 fastest-growing industry sectors, 14 rely heavily on MARTA for work transportation Special Events ( Note: UGA Study 2012)
4 MARTA WAS Employee furloughs Salary and wage freezes Reduced 131 bus routes to 91 Increased headways Closed some restrooms Fare increases Negative public perception
5 MARTA IS A good financial steward of public tax dollars Committed to an excellent customer experience Mobility and accessibility A catalyst for economic development
6 FINANCIAL STEWARDSHIP Fiscal Sustainability Changing Business Practices Realizing Cost Savings Revenue Generation
7 FY2013 FY2018 RESERVES PROJECTION 120,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - BALANCE TREND (20,000,000) Without Transformation Initiatives FY2013 FY2014 FY2015 FY2016 FY2017 FY ,693,8 85,372,60 62,695,25 39,458,90 14,714,66 (8,124,66
8 FY2013 FY2018 Reserves Balance Trend (millions) M FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY15 & Beyond Proposed FY14 & Beyond Adopted FY13 & Beyond Adopted
9 FY15 Operating Budget Operating Budget - $415.6 million Balanced Budget NO Fare Increase in FY14 or FY15 Service Restoration Increased Rail Frequency Bus Service Enhancements 66 Police Officers Additional Station Service Agents Reinstate More Durable Breeze Tickets
10 FY15 Capital Budget Capital Programs - $470.1 million, which includes $149.2 million for debt services. Capital Projects: Brady Garage Elevator/Escalators Restroom Restoration New Vehicles (Buses and Mobility Vans) Safety: Tunnel Ventilation Fire Protection Video Analytics CCTV System Expansion Lighting Upgrades
11 COST SAVINGS IT Department resource reduction -estimated savings $14M Bond refinancing saved $4.5M Electricity $1M $2M Technology improvements in business administration saves $$ millions CNG Conversion at Brady facility $1 per gallon equivalent Laredo Solar Canopy re-sale of solar energy saves $75K
12 ORGANIZATIONAL INITIATIVES Operational Road Map Five-year plan Twelve areas of focus Year one initiatives underway
13 OPEN FOR BUSINESS Revenue Generation: Advertising Naming Rights Parking Concessions Transit - Oriented Development
14 MARTA S ENHANCED SUPPLIER DIVERSITY PROGRAM Fully functioning FTA approved DBE/SBE programs Partnership for Supplier Mentor Program Prime and Subcontractor Networking Events On-going Quarterly DBE/SBE training Partner Training with GDOT and US SBA On-going DBE Technical Assistance with enhanced Resource Center New Supplier Diversity Program (W/M/L/VBE) Coming Soon on a sub-dbe site featuring DBE/SBE and Supplier Diversity information
15 TRANSIT - ORIENTED DEVELOPMENT Strategic TOD Goals: Increase transit ridership Improve neighborhoods Generate stable revenues
16 ENHANCED CUSTOMER EXPERIENCE System Upgrades Service Enhancements Enhanced Security Measures Technology Improvements Customer Satisfaction Survey
17 CUSTOMER SERVICE IMPROVEMENTS New buses and Mobility vans Upgraded station lighting Upgraded elevators/escalators More Restrooms re-opened
18 MARTA POLICE PEER COMPARISONS MARTA Police Peer Comparison 2012 Crimes Reported by Agency (Transit) AWARDS
19 SECURITY/SIGNAGE ENHANCEMENTS Security Cameras on Bus/Rail/Mobility Increased Police Visibility See & Say App Security Video Analytics Ride with Respect (November 9, 2013)
20 SERVICE ENHANCEMENTS Improved weekday rail service offering 5 min frequency during peak hours Improved weekday/peak headway on 20 bus routes Improved on-time performance on selected routes *Service Changes Implemented May 2014
21 Technology Improvements Audio Visual Information System (AVIS) Seeking $21M TIGER VI funding Improved communications Safety/security alerts GA Levi s Call/Amber Alert New Technology Coming Soon Mobile Fare Payment Cellular connectivity and Wi-Fi Website upgrade 21
22 IMPROVING PUBLIC IMAGE 22 POSITIVE COVERAGE EXCEEDS $1 MILLION IN VALUE* MARTA should be commended for their leadership I have been impressed and I think more members of the legislature are impressed (Gov. Deal, Dec. 2013) We re heartened to see lawmakers adopted a more practical outlook in recognizing the work MARTA s been pursuing to improve its financial & operational efficiency (Andre Jackson, AJC, Apr. 2014) MARTA Has turned its fiscal ship around operating in the black again Rep. Jacobs, Mar *The media monitoring system determines publicity value based on an industry standard. During the 3 rd and 4 th Quarters July 1, December 31, 2013
23 FISCAL SUSTAINABILITY Moody s Investor Service Upgraded MARTA s Third Indenture Bonds from A1 to Aa3 Cited improving financial performance and reduction in variable rate exposure MARTA issued fixed rate refunding and new money bonds Total $300 million Upgrade contributed to reducing anticipated fixed rate issue costs by $4.2 million
24 TRANSIT IMPROVES LIVES Helps Environment The private vehicle is the largest contribution to a household s carbon footprint Saves Money Affordable alternative to driving, saving households that use public transit an average of $10,103 Benefits Health Train riders lost 6.5 pounds (American Journal of Preventive Medicine) Source: American Public Transportation Association
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