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Financial Update and Roundtable Discussions

Financial Update and Roundtable Discussions. Agenda. Year In Review and Looking Forward Roundtable Discussions: Revenue generating opportunities Cost savings opportunities Financial Information and Communications Other takeaways for BC Transit. Financial Sustainability.

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Financial Update and Roundtable Discussions

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  1. Financial Update and Roundtable Discussions

  2. Agenda Year In Review and Looking Forward Roundtable Discussions: Revenue generating opportunities Cost savings opportunities Financial Information and Communications Other takeaways for BC Transit

  3. Financial Sustainability • Increasing Demand For Transit • Frequency and reliability • Regional connections • Technology

  4. Financial Sustainability • Cost Pressures • Inflationary cost pressures • Expansion • Capital replacement cycle

  5. Financial Sustainability Increasing Demand For Transit Cost Pressures Sustainability and Affordability

  6. Year in Review – Service Hours • Year Over Year • 2011/12 service hours 1% above last year • Custom & Paratransit increased 3% to last year • Against Targets • Below budget 2% • Victoria Conventional on budget • RTS Conventional 3% below

  7. Year in Review - Ridership • Year Over Year • Record ridership in 2010/11(5% growth with 3% service expansion) • 2011/12 ridership marginally lower year over year < 1% • Against Targets • Ridership increased 2% to budget • Victoria Conventional higher than budget 1% • RTS Conventional higher than budget 3%

  8. Service Expansion and Ridership Growth

  9. Industry Trend – Operating Cost Per Hour Victoria (Conventional) • Operating costs per hour: • Cost / hour increases for Canadian benchmarks (CUTA): • Group 2 (150,000 – 400,000) • average 4.2% per annum • Victoria Conventional • average 2.4% per annum source: 2010 CUTA Fact Book

  10. Industry Trend – Operating Cost Per Hour Regional Transit Systems • Operating costs per hour: • Cost / hour increases for Canadian benchmarks (CUTA): • Group 3 (50,000 – 150,000) • average 5.3% per annum • BC Transit Regional Systems • average 3.6% per annum source: 2010 CUTA Fact Book

  11. Fuel Price History 2011/12 Budget Development

  12. Operating Cost Recovery

  13. Operating Cost Inflation + Capital Replacement Cycle - Passenger Revenue Yield Total Cost of Transit

  14. Funding Model Provincial Contributions – operating and capital funding for inflation and expansion Passenger Revenues – increasing at a rate less than inflationary pressures Local Contributions – fund the remaining cost of transit * Victoria only

  15. Continuous Feedback Regional Finance Workshops Enterprise Investment Initiative BC Transit Workshop

  16. What we heard… • Local Partners want: • Improved Information and Communications • Focus on Cost Control and Containment • Stability and Predictability

  17. What we did… • Information and Communication: • 3 Year Budgets – timed with local budget development • Detailed Capital Schedules • Finance Road show in the Fall 2011 • Performance reporting

  18. What we did… • Cost Containment: • Service and system reviews • Entered into fixed price fuel contracts below 2012/13 budgeted fuel price • Frozen compensation levels (year 3 for exempt, year 2 for union) • Internal review that included 10% reduction of excluded staff • Investigated further cost savings opportunities • Identified new revenue generating activities

  19. Moving forward… • Focus on continuous improvement • Leverage our strong partnerships • Be innovative – find new ways to solve old problems

  20. Roundtable Discussions • Financial Information and Communications • Revenue generating opportunities • Cost savings opportunities • Other takeaways for BC Transit

  21. Roundtable Discussions Financial Information and Communications (Budgets, Reports, Forecasts, Performance Reporting, Workshops) What financial information do you need? What is of value and why? Timeliness, Frequency

  22. Roundtable Discussions Revenue Generating Opportunities How can we maximize revenue generating opportunities already identified (Whistler, Transfer policy changes, etc)? What other revenue generating opportunities are there? What are the barriers to entry (resources, partners, etc)? How do we remove these barriers?

  23. Roundtable Discussions • Cost Savings Opportunities • What are some cost savings opportunities? • What are the challenges with implementation of these opportunities? • How do we overcome these challenges?

  24. Roundtable Discussions Takeaways… What are the top 3 things from your roundtable discussion that BC Transit should be focusing on over the next year?

  25. Thank You!

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