Fiscal Year 2005 Adopted Budget

BUDGET SUMMARY

MISSION STATEMENT: To stimulate smart growth while maximizing mass transit opportunities for Arlington residents and visitors.

The Washington Metropolitan Area Transit Authority (WMATA) is a regional public transportation partnership among and between the area's state and local governments and the federal government. WMATA's member jurisdictions are: Arlington and Fairfax counties, the cities of Alexandria, Fairfax and Falls Church in Virginia, the District of Columbia and Montgomery and Prince George's counties in Maryland. WMATA provides an integrated bus and rail system for the metropolitan area. The authority's major programs are Metrorail, Metrobus and MetroAccess operations, the Metrorail Construction Program and the Capital Improvement Program (CIP), which includes the Infrastructure Renewal Program (IRP), the System Access/Capacity Program (SAP) and the System Expansion Program (SEP).

FY 2005 PRIORITIES: The FY 2005 Adopted priorities of WMATA are:

• Maintain current level of services.

• Increase police and security.

• Cost control through Management streamlining and Program streamlining.

SIGNIFICANT BUDGET CHANGES: The FY 2005 Adopted General Fund transfer for WMATA is $11.8 million reflecting a 7 percent increase from the FY 2004 adopted budget.

The operating subsidy increases by three percent, which reflects:

• A fourteen percent increase in the Metrobus subsidy resulting from annualized changes in the Metrobus service in the Columbia Pike area.

• A thirteen percent decrease in the Metrorail budget, due to changes in the Metrorail fares.

• An increase of $233,125, which represents a 70 percent increase in the MetroAccess budget, due to adjustments made by Metro.

• A decrease in the Metro Audit Adjustment.

BUDGET DESCRIPTION: WMATA's FY 2005 adopted operating budget for the Metrobus, Metrorail and MetroAccess systems would require a $27 million operating subsidy from Arlington County, a three percent increase from the FY 2004 Arlington subsidy budget.

The FY 2005 adopted WMATA CIP totals $311.3 million. This program funds procurement of replacement Metrobuses, bus overhaul, escalator/elevator rehabilitation and Metrorail station and railcar capital improvements and enhancements. Arlington County expects to contribute approximately $14.6 million to WMATA's CIP in FY 2005 from bond funds and state grants.

WMATA's adopted FY 2005-2010 CIP includes $1.5 billion unfunded program. This number is comprised of IRP shortfall for $537.9 million; SAP and SEP shortfall for $796.1 million; and Security Priority for $150 million. WMATA is seeking additional federal government contributions for up to 50% of the unfunded program. The local jurisdictions, including Arlington County would have to fund the difference. Discussions on this matter will be done at Metro Board and Metro Budget Committee.

Funding for WMATA programs is provided by passenger fares and federal, state and local government assistance. The adopted WMATA budget contains a $28.8 million - $36.2 million shortfall which may result in a fare increase, the second increase in two years; reduction in the level of service provided by WMATA, and/or additional contribution from the local governments. Federal grants that support the WMATA CIP and Metrorail construction and grants for operating assistance flow directly to WMATA. Some federal funds allocated to the state are also allocated directly to WMATA.

The Northern Virginia Transportation Commission (NVTC) receives state transit funds on behalf of Northern Virginia jurisdictions and federal funds not directly allocated to WMATA. In addition, the state collects a two‑percent regional gas tax on behalf of NVTC and distributes the proceeds to NVTC for payment to WMATA for qualifying operating and capital costs. These revenues are reflected as State Transit Aid and Regional Gas Tax receipts in the County budget. Local governments provide the remaining funding for transit operating programs. Arlington County uses General Fund dollars to finance this portion of its share of WMATA operations.

Between 1993 and 1999, the state issued approximately $327.6 million of recordation tax-backed bonds for transportation projects in Northern Virginia. Arlington County has received $29.79 million of proceeds from these state bond issues for Metrorail construction and CIP costs. In CY 2001, the state issued $16.0 million of right‑of‑way fee backed bonds of which Arlington received approximately $3.9 million for Metrorail cars. The balance of the WMATA CIP and Metrorail construction program is primarily funded from County general obligation bond proceeds, with a small portion coming from state transit aid and gas tax proceeds. On May 28, 2002, the Commonwealth of Virginia sent $18.0 million to Metro as an initial payment for the procurement of 50 railcars Series 6000. Subsequent year contributions of $9.0 million will be used to pay Virginia's contribution. Arlington County would pay its FY 2005 contribution of the 50 railcars procurement with grants available at NVTC.

FUTURE BUDGET CONSIDERATIONS: The following factors may impact the WMATA operating budget and County's Capital Improvement Program in the future:

• Restricting growth of MetroAccess service.

• Metro Matters – Unfunded Program

• Continue growth of insurance costs, health and property and casualty.

• Transit fares structure.

• Metrorail capacity and reliability.

• Metrobus operation and promotion.

• Additional Safety and Security measures to be taken.

(1)      State Transit Aid, Regional Gas Tax, and Other revenues for FY 2005 are not available.

(2)      Credit available at WMATA and NVTC.