valley metro rail adopted annual operating & capital budget...valley metro rail, inc. phoenix,...

FY 2008-09 0 May 2008 Operating and Capital Budget METRO

Valley Metro Rail

Adopted Annual Operating & Capital Budget

Fiscal Year 2018

Valley Metro Rail, Inc. Phoenix, Arizona

Adopted Operating and Capital Budget Fiscal Year 2018

(July 1, 2017 through June 30, 2018)

Five-Year Operating Forecast and Capital Program Fiscal Year 2018 through Fiscal Year 2022

(July 1, 2017 through June 30, 2022)

Board of Directors Chair - Mayor Mark Mitchell, Tempe

Vice Chair - Councilmember Chris Glover, Mesa Vice Mayor Kevin Hartke, Chandler

Mayor Jerry Weiers, Glendale Councilmember Thelda Williams, Phoenix

Executive Management Team Scott Smith, Chief Executive Officer

Robert Antoniak, Chief Operating Officer Raymond Abraham, Chief Operations Officer

Hillary Foose, Director, Marketing and Communication Wulf Grote, Director, Capital and Service Development

Paul Hodgins, Chief Financial Officer Penny Lynch, Director, Human Resources Director

Michael Minnaugh, General Counsel Adrian Ruiz, Director, Safety, Security and Quality Assurance

Annual Budget Table of Contents

Valley Metro Rail Organization ..................................................................................... 1

Valley Metro Rail Vision ................................................................................................ 2

Fiscal Year 2017 Highlights .......................................................................................... 2

Rail Operations Service Plan ....................................................................................... 5

Total Financial Program ............................................................................................... 6

Budget Analysis ......................................................................................... 8

Agency Staff Overview .............................................................................................. 10

Fiscal Year 2018 Budgets:

Operating Budget

Revenue Operations ................................................................................ 13

Future Project Development .................................................................... 14

Agency Operating .................................................................................... 15

Agency Overhead Allocation .................................................................... 16

Capital Budget

Northwest Extension Phase I ................................................................... 17

Central Mesa Extension ........................................................................... 18

Gilbert Road Extension ............................................................................ 19

Tempe Streetcar Extension ..................................................................... 20

50th Street LRT Station ........................................................................... 21

South Central Extension .......................................................................... 22

Operations & Maintenance Center Expansion ......................................... 23

Non-Prior Rights Utilities Relocation ........................................................ 23

Systemwide Improvements ...................................................................... 24

Schedule Capital Debt Service ................................................................ 24

Funds Flow Fiscal Year 2018 ..................................................................................... 25

Five-Year Plan Table of Contents

Executive Summary

Valley Metro Rail Services .................................................................................. 27

Operations & Maintenance ...................................................................... 28

Planning & Development ........................................................................ 28

Design & Construction ............................................................................ 28

Five-Year Plan Summary ................................................................................... 29

Five-Year Operating Forecast

Uses & Sources of Funds ................................................................................... 30

Operations & Maintenance Cost Estimate FY18 - 22 ......................................... 32

Five Year Fares, Costs and Member City Funding ............................................. 33

Project Development Planning ........................................................................... 34

Five-Year Capital Program

All Projects.......................................................................................................... 35

High Capacity Transit Projects ........................................................................... 37

Central Mesa Extension ..................................................................................... 38

Gilbert Road Extension ....................................................................................... 39

Tempe Streetcar Extension ................................................................................ 41

South Central Extension ..................................................................................... 43

50th Street LRT Station ....................................................................................... 45

Operations & Maintenance Center Expansion .................................................... 46

Northwest Extension Phase II............................................................................. 47

Capitol I-10 West Extension Phase I .................................................................. 49

West Phoenix/Central Glendale Extension ......................................................... 51

Systemwide Improvements ................................................................................ 52

Staffing Plan ....................................................................................................... 53

Appendix

A-The Budget Process ....................................................................................... 59

B-Glossary of Terms and Acronyms ................................................................... 60

VALLEY METRO RAIL ORGANIZATION

Valley Metro Rail, Inc. (VMR) is a public non-profit corporation whose members are the cities of Chandler, Glendale, Mesa, Phoenix, and Tempe. VMR was created to manage the design, construction, and operation of the Light Rail Transit (LRT) System within the Metropolitan Area. The Board of Directors includes the mayors of the member cities or their designated representatives. The Board of Directors establishes overall policies and provides general oversight of the VMR agency and its responsibilities.

The Chief Executive Officer (CEO) is responsible for implementing the agency vision and the day-to-day management of the organization. The CEO plans, coordinates, and directs the activities of the Management staff in carrying out the organization’s responsibilities. The VMR Staff includes employees managing operations, performing maintenance, directing planning, design and construction of new rail lines. VMR staff are supported by contracted personnel with specialized experience in light rail planning, design, construction, and operations. The following chart depicts the policy organization for VMR and the relationships to key stakeholders.

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VALLEY METRO

VISION: Valley Metro is a leader in connecting communities and building a vibrant, sustainable region.

MISSION: Valley Metro provides our customers with a safe, efficient and reliable total transit network.

FISCAL YEAR 2017 HIGHLIGHTS

VMR ridership increased, serving 15.6 million riders in Fiscal Year 2016, 9.1%percent more than in Fiscal Year 2015.

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Delivered passenger service achieving the following results:

Valley Metro Rail ridership in FY16 is 15.6 million riders, which is an increase of9.1% over FY15 and is the highest annual ridership since operations began inDec. 27, 2008.

In July 2016, the establishment of the Valley Metro Accessibility Advisory Group(VMAAG) comes as Valley Metro, in partnership with 15 cities and MaricopaCounty, implements local Dial-a-Ride improvements including the elimination oftransfers. More than 200 regional trips were successfully completed on July 1,2016, the first day of regional Dial-a-Ride service

In August 2016, Valley Metro strengthened its commitment to education outreachand sustainability efforts with the delivery of 124 refurbished computers to theCartwright School District. The partnership between Valley Metro, CartwrightSchool District and Cox Communications stems from Cox’s Connect2Competeprogram.

In September 2016, officials from the city of Phoenix and Valley Metro, alongsidecommunity representatives, announced the first light rail project slated underPhoenix Transportation 2050 (T2050). The new 50th Street Station will servelocal businesses and provide added convenience for riders who are travelingfrom across the Valley to access independent lifestyle resources for people withdisabilities at Ability360.

In October 2016, a colorful balloon release kicked off the official start ofconstruction on the Gilbert Road Extension. Valley Metro and city of Mesa hosteda groundbreaking event and community fall festival at Stapley Drive and MainStreet to mark the milestone.

In October 2016, Valley Metro received a $1 million Mobility on Demand (MOD)project grant from the Federal Transit Administration to develop a mobile app thatwill integrate mobile ticketing and multi-modal trip planning information. Theagency is partnering with RouteMatch Software, transit industry technologyprovider, as well as Arizona State University (ASU) and the City of PhoenixPublic Transit Department to create the passenger-based app.

Benchmark FY16 Target FY16 Actual

On Time Perfomance 95% 93.4%

Cost per Boarding $2.42 $2.25

Average Fare $0.94 $0.86

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In November 2016, the Valley Metro RPTA and Valley Metro Rail Boards ofDirectors took action to finalize an employment agreement with Scott Smith thatwill transition his service from interim CEO to CEO.

In December 2016, at the monthly Valley Metro Boards meeting, new ChiefFinancial Officer, Paul Hodgins was announced and Tempe Streetcar designerand artists were approved.

In December 2016, Coors Light Free Rides® on buses, trains and Dial-a-Ridebegan at 7 p.m. New this year is a partnership with Uber to allow two ridesdiscounted by 10 percent to or from a Valley Metro Rail station.

In March 2016, Valley Metro Rail played a key role in providing transportation forthe NCAA Final Four events in downtown Phoenix.

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RAIL OPERATIONS SERVICE PLAN

Service Frequency Fiscal Year 2018 Plan:

Weekday trains will run with two cars at 12 minute intervals during peak hours and 15 to 20 minute intervals off peak. Weekends do not require peak service trains and will operate with two cars at 15 to 20 minute headways. Service headways and train lengths will be adjusted over time to accommodate growth and service patterns. No major changes are expected from FY17.

Time of Day Service Frequency Monday - Friday 4:29 am to 7:00 am 20 minutes Monday - Friday 7:00 am to 6:00 pm 12 minutes Monday - Thursday 6:00 pm to 11:00 pm 20 minutes Friday - 6:00 pm to 2:00 am 20 minutes Saturday - 4:49 am to 6:00 pm 15 minutes Saturday - 6:00 pm to 2:00 am 20 minutes Sunday - 4:49 am to 11:09 pm 20 minutes

Ten weekdays are currently scheduled for holiday schedule frequency (Sunday schedule).

Ridership and Fare Revenue:

Total Ridership is forecasted at 16.8 million passengers for the year with fare revenues generating $14.3 million.

Average fare per ride is forecasted at $0.85 cents per ride.

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TOTAL FINANCIAL PROGRAM

The Fiscal Year 2018 Operating and Capital Budget has been prepared with the goal of delivering a fiscally prudent, balanced budget. Last year, the Board approved a total of $156.8 million (*) for the amended Fiscal Year 2017 Budget. Total uses of funds including debt service for FY18 are estimated to be $298.8 million.

Uses of Funds - The Fiscal Year 2018 Budget includes anticipated operating and capital expenditures in the amount of approximately $270.6 million to support program elements during the period of July 1, 2017 through June 30, 2018, as follows:

Note: See pages 8 and 9 for budget analysis notes.

(*) In FY15, the agency changed its budgetary reporting of Debt Service. Any Debt Service related to PTF bonds are reported on the VM RPTA CAFR and budget documents. Obligations of VM RPTA and VMR related to debt service are reported on a memorandum basis in this and future rail budgets.

USES OF FUNDS ($,000) FY17 FY18Amended Adopted

Budget Budget ChangeOperating Activities:

Revenue Operations 44,890$ 47,943$ 3,053$ 1Future Project Development 11,867 17,592 5,725 2Agency Operating Budget 1,081 1,585 504 3

Subtotal Operating 57,838$ 67,120$ 9,282$

Capital Projects:Northwest Extension 3,203$ -$ (3,203)$ 4Central Mesa Extension 4,673 1,961 (2,712) 5Gilbert Road Extension 43,650 75,245 31,595 6Tempe Streetcar Extension 15,330 50,955 35,625 750th Street LRT Station 6,065 9,998 3,933 8South Central Extension 3,082 33,557 30,475 9Operations & Maintenance Center Expansion - 3,197 3,197 10Non-Prior Rights Utilities Relocations 4,374 - (4,374) 11CNPAs - Mesa Extension 158 - (158) CNPAs - Gilbert Road 1,484 - (1,484) 12CNPAs - Tempe Streetcar - 279 279 Systemwide Improvements 16,905 28,304 11,399 13

Subtotal Capital 98,924$ 203,496$ 104,572$ Total Uses 156,762$ 270,616$ 113,854$

Capital Project Debt Service:Debt Service - Interest 8,366$ 8,961$ 595$ Debt Service - Principal 12,193 19,250 7,057

Subtotal Debt Service 20,559$ 28,211$ 7,652$ Total Uses with Debt Service 177,321$ 298,827$ 121,506$

Budget Analysis Note #

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Sources of Funds - The Fiscal Year 2018 Operating and Capital Budget will be funded with a combination of Fare Revenues, Member City contributions, Public Transportation Funds, Congestion Mitigation and Air Quality funds (CMAQ), and other local funding. The Fiscal Year 2018 Budget includes anticipated capital and operating sources of funds in the amount of approximately $270.6 million (*), as follows:

Note: See pages 8 and 9 for budget analysis notes.

(*) In FY15, the agency changed budgetary reporting of Debt Service. Any Debt Service related to PTF bonds are reported on the VM RPTA CAFR and budget documents. Obligations of VM RPTA and VMR related to debt service are reported on a memorandum basis in this and future rail budgets.

SOURCES OF FUNDS ($,000) FY17 FY18Amended Adopted

Budget Budget ChangeOperating Activities:

Fare Revenue 15,909$ 14,300$ (1,609)$ 14Advertising Revenue 1,100 1,100 -Federal 5307 PM 1,197 1,366 169 Federal 5339 - 1,600 1,600 15Federal CMAQ - 1,426 1,426 16TIGER 175 - (175) Member Cities 31,139 35,092 3,953 17MAG / RPTA (RARF) 1,000 1,000 -PTF Sales Tax Revenue 7,319 11,236 3,917 18

Subtotal Operating 57,838$ 67,120$ 9,282$

Capital Projects:FTA - Section 5309 -$ 29,193$ 29,193$ 19Federal CMAQ 65,349 104,296 38,947 20Federal 5337 SOGR 341 1,311 970 21Federal 5312 MOD 500 501 1Member Cities 14,013 47,969 33,956 22Less Repayment NW Advance (60,000) - 60,000 23PTF Bond Revenue 43,099 - (43,099) 24PTF Sales Tax Revenue 35,622 20,226 (15,396) 25

Subtotal Capital 98,924$ 203,496$ 104,572$

Total Sources 156,762$ 270,616$ 113,854$

Capital Project Debt Service:PTF Sales Tax Revenue 20,559$ 28,211$ 7,652$

Subtotal Debt Service 20,559$ 28,211$ 7,652$

Total Sources with Debt Service 177,321$ 298,827$ 121,506$

Budget Analysis Note #

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Budget Analysis

The following is an analysis of the major changes in the Fiscal Year 2018 Adopted Budget versus the Fiscal Year 2017 Amended Budget. The number in the "Note" column corresponds to the "Note" column in the "Uses of Funds" and "Sources of Funds" located in the Total Financial Program. See Pages 6 and 7.

Note Budget Analysis - Uses of Funds1 FY18 rail operating costs increase by 7% over FY17 levels. Maintenance costs rise with

scheduled preventive maintenance activities to maintain the system in a state of good repair.Initiatives for FY18 include increased fare inspection and security resources and the deployment of Wi-Fi to all 50 light rail vehicles.

2 Future Project Development costs are up by $5.7M due to increase in planning activities related tofuture corridors and system planning; primarily due to the I-10/I-17 ramp design.

3 Agency operating costs are increased $0.5M due to restructuring of the Executive Office toinclude administration and project management duties.

4 Northwest Extension Phase I capital project is complete.

5 Central Mesa Extension base project costs are down by $2.7M. Remaining activity in FY18 isrelated to the train signal control system upgrade.

6 Gilbert Road LRT Extension base project cost are up $31.6M due to increased constructionactivity and progress payments on 3 vehicles. Annual expenditures forecasted at $75.2M.

7 Tempe Streetcar project costs are up $35.6M. Annual expenditures forecasted at $51.0M, whichincludes NPR costs of $12.5M.

8 50th Street LRT Station costs are up by $3.9M for design and pre-construction activities.

9 South Central Capital Project pre-construction activities to ramp up in FY18. Non-prior rightsutilities relocations ($4.2M) are included. Annual design and project management expendituresforecasted at $33.6M.

10 Operations & Maintenance Center Expansion pre-construction activities begin in FY18. Annualdesign and project management expenditures forecasted at $3.2M.

11 Non-Prior Rights (NPR) costs are now included within the capital projects.

12 No CNPA work planned to occur for Gilbert Road LRT Extension in FY18.

13 Systemwide Improvements include the purchase of 8 light rail vehicles for future extensions($16.0M), LRV overhauls ($3.7M), LRV Wi-Fi ($2.5M), Mobile ticketing ($0.7), improvements forstation lighting and railing, security camera component upgrades, ticket vending machineupgrades and other activities ($5.3M).

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Budget Analysis (continued)

Note Budget Analysis - Sources of Funds14 Fare revenue forecasted at $14.3M, based on current trends in average fare and ridership;

assumes 16.8 million rides with an average fare forecasted to be $0.85 per ride in FY18.

15 Federal 5339 funds are at $1.6M due to the I-10/I-17 Bus Ramp Design project within the FutureProject Development budget.

16 Federal CMAQ funds are programmed at $1.4M due to the Capitol/I-10 West project for pre-construction activities.

17 Member City contributions for Operations are up from $31.1M to $35.1M in FY18 due to baseservice increase of $2.9M, reduced fare revenue -$1.6M, $1.0M decrease for future projects, and$0.5M increase for agency operations.

18 PTF Sales Tax revenue funding requirements for project development are up by $3.9M, primarilyrelated to Northwest Phase II, Phoenix I-10 Capitol projects, I-10/I-17 bus ramp, and Operationsand Maintenance Center expansion.

19 FTA - Section 5309 funds are programmed at $29.2M to support Tempe Streetcar projectconstruction activities.

20 Federal CMAQ increasing by $38.9M due to increasing funding requirements for constructionactivity. FY18 programmed activity includes Central Mesa Extension SCADA ($1.6M), GilbertRoad ($70.9M), Tempe Streetcar ($16.0M), Systemwide Improvements ($13.2M), and Operationsand Maintenance Center expansion ($2.6M).

21 Federal 5337 SOGR programmed at $1.3M to assist in funding O&M activities required to maintain a state of good repair.

22 Member City contributions for Capital Projects total $48.0M for FY18. Project amounts for FY18include South Central funding by Phoenix ($33.6M), 50th Street Station funding by Phoenix($10.0M), Gilbert Road Extension funding by Mesa ($4.3M), and Concurrent Non-Project Activities(CNPA) work for Tempe Streetcar ($0.1M).

23 In FY17, the City of Phoenix was repaid $60.0M in advances the City made in FY13 and FY14 toaccelerate completion of the NW Extension. Funding is from Public Transportation Funds.

24 It is anticipated that RPTA will not issue bonds to support rail capital projects in the FY18.

25 PTF Sales Tax funding will be reduced from $35.6M to $20.2M primarily due to constructioncompletion for Northwest Extension, offset by increased funding requirements for TempeStreetcar, Systemwide Improvements and Non Prior Rights Utilities.

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AGENCY STAFF OVERVIEW

Valley Metro RPTA and Valley Metro Rail budgets are developed with a unified staff plan, with department managers planning the level of effort required to meet the bus and rail activities. For FY18, there are 360 employees budgeted; 151 FTE’s are budgeted to RPTA activities; 209 to VMR activities. Staffing levels are reviewed on an annual basis to fulfill work requirements in the five-year period commencing with the beginning of the new fiscal year. Salary and fringe benefit compensation levels are measured against comparable regional agencies, member cities and peer transit agencies located in the western U.S.

FY18 Compensation and Fringe Benefit Assumptions

Total compensation budget is based on a 3.0% increase. For staff salary changes, merit increases are based on employee performance. Agency health care costs will increase. Program design adjustments are in place to hold total agency fringe benefit cost increases to within 3% of FY17 levels.

FY18-FY20 Staffing Needs

The Valley Metro Regional Public Transportation Authority (RPTA) and Valley Metro Rail, Inc. (VMR) are in a period of significant expansion of the system and services. In order to meet the needs of our members and deliver projects, Valley Metro is in need of additional resources. In looking at the expansion plans over the next decade, it is clear that a number of positions are in demand for an extended period of time. The additional staff resources are categorized in three ways: positions that would otherwise be filled with consultants, positions added as a result of strategic initiatives, and support positions added to address agency growth in general.

Consultant versus Staff 22 of the 35 positions are conversions from consultants Costs of consultants typically include larger overhead plus profit Approximately $1.3M in costs will be avoided by hiring these positions Project positions will be hired for project term or specific term (3-5 years)

Positions to Fulfill Strategic Initiatives 14 positions related to strategic initiatives

o Increase Customer Focus 3 Operations Communications Specialists

o Evaluate and enhance passenger safety and security Senior Project Certification Coordinator Transit Bus Safety Security Coordinator Project Assistant

o Board Adopted Information Technology Strategic Plan 8 positions over the next 3 fiscal years

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General Growth Need for additional support positions with agency growth (HR and Finance)

Below is a table summarizing the changes in staff positions adopted for FY18 and preliminary positions for FY19 and FY20.

Below is a table that summarizes the impacts of funding the FY18 positions, comparing fully burdened costs for the additional positions relative to the base positions at the end of FY17. Costs shown are in millions.

Adopted Mid‐Year Adopted Preliminary Preliminary

Division 2017 Additions 2018 2019 2020

Capital and Service Development 38 4 11 4

Communication & Marketing 29 8 3

Executive Office 10 1 2

Finance 20 2 3

Human Resources 8 2

Information Technology 9 2 3 3

Internal Audit 2

Legal 12 2

Operations and Maintenance ‐ RPTA 58 7 1

Operations and Maintenance ‐ VMR 118 4 2

Safety and Security 6 1 3

Total Positions 310 15 35 15 3

RPTA 129.3 8.6 12.8 8.2 3.0

VMR 180.7 6.4 22.2 6.8 0.0

RPTA Base

FY18

Additions % Change

Planning and Capital Projects (PTF/RARF) $1.24 $0.09 7.0%

Administrative and Regional Projects (PTF/RARF) $8.90 $0.62 7.0%

Operations ‐ Regionally Funded $1.30 $0.05 3.8%

Operations ‐ Member City Contributions $0.93 $0.03 3.5%

Sub‐total RPTA $12.37 $0.79 6.4%

VMR Base

FY18

Additions % Change

Planning (PTF/RARF) $4.14 $0.74 17.8%

Capital (Project funded) $4.37 $1.76 40.3%

Member City Contributions $12.61 $0.65 5.2%

Sub‐total VMR $21.11 $3.15 14.9%

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DETAIL VALLEY METRO RAIL OPERATING AND CAPITAL PROJECTS VMR’s operating and capital activities are broken down into projects. The following pages identify the Sources and Uses of Funds for each project.

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FY18 Adopted Budget - Revenue Operations

FY17 FY18 AmountAmended Adopted Increase/

Budget Budget (Decrease)SOURCES OF FUNDS

Fare Revenue 15,909,000$ 14,300,000$ (1,609,000)$ Federal 5307PM 1,197,000 1,366,000 169,000 Advertising Revenue 1,100,000 1,100,000 - Phoenix Contributions 17,285,000 19,364,000 2,079,000 Tempe Contributions 5,418,000 6,883,000 1,465,000 Mesa Contributions 3,981,000 4,930,000 949,000

TOTAL SOURCES 44,890,000$ 47,943,000$ 3,053,000$

USES OF FUNDSSalaries and Fringe Benefits 9,475,000$ 10,017,000$ 542,000$ RPTA Overhead 870,000 816,000 (54,000) Transportation Contractors Labor & Materials 11,296,000 10,580,000 (716,000) Fare Inspection & Security 4,755,000 5,654,000 899,000 Propulsion Power 3,106,000 2,873,000 (233,000) Vehicle Maintenance Contractor Labor & Materials 2,766,000 3,119,000 353,000 Systems & Facilities Maintenance Contractors 2,729,000 3,845,000 1,116,000 SFM Material / Supplies / Other Direct Costs 891,000 1,047,000 156,000 Utilities 1,905,000 2,009,000 104,000 Data/Telecommunications - 550,000 550,000 General & Administrative Costs 3,086,000 3,111,000 25,000 Consultants 428,000 563,000 135,000 Liability Insurance 1,721,000 1,545,000 (176,000) Contingency Reserve 1,270,000 647,000 (623,000) LRT project capital outlay 592,000 1,567,000 975,000

TOTAL USES 44,890,000$ 47,943,000$ 3,053,000$

Service Provided (miles) 3,323,000 3,330,000

Allocation of Operating Costs

Phoenix Base Costs 25,605,000$ 27,027,000$ 1,422,000$ Regional Security 3,039,000 3,336,000 297,000 Local Security - - -

63.33% 28,644,000 30,363,000 1,719,000 Less Fares,Advertising & Fed PM Distributed (11,359,000) (10,999,000) 360,000

Phoenix Net Contribution 17,285,000$ 19,364,000$ 2,079,000$

Tempe Base Costs 8,538,000$ 9,011,000$ 473,000$ Regional Security 1,013,000 1,112,000 99,000 Local Security 70,000 285,000 215,000

21.71% 9,621,000 10,408,000 787,000 Less Fares,Advertising & Fed PM Distributed (4,203,000) (3,525,000) 678,000

Tempe Net Contribution 5,418,000$ 6,883,000$ 1,465,000$

Mesa Base Costs 5,922,000$ 6,250,000$ 328,000$ Regional Security 703,000 772,000 69,000 Local Security - 150,000 150,000

14.96% 6,625,000 7,172,000 547,000 Less Fares,Advertising & Fed PM Distributed (2,644,000) (2,242,000) 402,000

Mesa Net Contribution 3,981,000$ 4,930,000$ 949,000$

Total Operating Costs 44,890,000$ 47,943,000$ 3,053,000$

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FY18 Adopted Budget - Future Project Development



FTA - Section 5339 -$ 1,600,000$ 1,600,000$ Chandler 239,000 612,000 373,000 Phoenix 2,492,000 969,000 (1,523,000) Mesa - 749,000 749,000 Glendale 644,000 - (644,000) MAG 500,000 500,000 - RPTA (RARF/Other) 500,000 500,000 - PTF Revenue Sales Tax 7,317,000 11,236,000 3,919,000 TIGER 175,000 - (175,000) CMAQ - 1,426,000 1,426,000

TOTAL SOURCES 11,867,000$ 17,592,000$ 5,725,000$

USES OF FUNDSSalaries and Fringe Benefits 2,668,000$ 3,173,000$ 505,000$ RPTA Overhead 232,000 271,000 39,000 Consultants - PM/CM - 1,750,000 1,750,000 Consultants - Planning Support 6,299,000 7,380,000 1,081,000 Consultants - Other 386,000 3,362,000 2,976,000 Consultants - Planning/Environmental 680,000 - (680,000) Advertising 6,000 12,000 6,000 Printing 46,000 59,000 13,000 Postage 51,000 45,000 (6,000) Public meetings & information 28,000 18,000 (10,000) Other direct expenditures 12,000 162,000 150,000 Local meetings & mileage 3,000 4,000 1,000 Business Travel 4,000 8,000 4,000 LRT project capital outlay 5,000 10,000 5,000 Agency Overhead Allocation 1,448,000 1,338,000 (110,000)

TOTAL USES 11,867,000$ 17,592,000$ 5,725,000$

* South Central to be funded by Phoenix ($681,000)* Northwest Phase II EA/ACE to be funded with PTF ($2.6M)* West Phoenix/Glendale Corridor Alternatives Analysis is anticipated to be funded with PTF ($0.9M)* Capitol/I-10 West Phase I is anticipated to be funded with CMAQ ($1.4M) and PTF ($0.4M)

* Northeast Corridor feasibility study to be funded by Phoenix ($228,000)* 16th Street Advanced Feasibility Study ($60,000) to be funded by Phoenix* OMC Master Plan and Phasing Study funded with PTF ($747,000)* I-10/I-17 Bus ramp design funded with FTA 5339 ($1.6M) and PTF ($0.4M)

Note: Future Project Development includes expenditures funded by the Public Transportation Fund for thedevelopment of capital projects as listed in the Regional Transportation Plan. These expenditures includeenvironmental and alternatives analysis studies necessary to qualify the capital projects for federal funding.

* Fiesta/Downtown Chandler Transit Corridor Study ($1.4M) to be funded by Chandler ($0.6M) and Mesa ($0.8M)

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FY18 Adopted Budget - Agency Operating



Chandler 32,000$ 48,000$ 16,000$ Glendale 32,000 48,000 16,000 Mesa 195,000 285,000 90,000 Phoenix 541,000 792,000 251,000 Tempe 281,000 412,000 131,000

TOTAL SOURCES 1,081,000$ 1,585,000$ 504,000$

USES OF FUNDSSalaries and Fringe Benefits 543,000$ 854,000$ 311,000$ RPTA Overhead 47,000 73,000 26,000 Memberships & Subscriptions - 44,000 44,000 Consultants - Other 37,000 39,000 2,000 Conferences 11,000 17,000 6,000 Business Travel 20,000 70,000 50,000 Advertising 1,000 - (1,000) Printing 2,000 4,000 2,000 Public meetings & information 41,000 - (41,000) Other direct expenditures 23,000 46,000 23,000 LRT audit and accounting costs 50,000 52,000 2,000 Bank Charges 5,000 - (5,000) Agency Overhead Allocation 301,000 386,000 85,000

TOTAL USES 1,081,000$ 1,585,000$ 504,000$

Note: The Cities of Chandler and Glendale contribute $50,000 each annually to VMR. $48,000 is applied toAgency Operating funds and the balance of the funds are held by VMR for future project studies to be usedwhen requested by the Member City.

Agency operating costs are general and administrative costs of Valley Metro Rail, Inc. which are not directlyallocable to passenger operations or to capital projects. Typical expenses include agency memberships,public meetings, legislative representation, annual financial audit, and leadership management activities whichaddress interactions with member cities and strategic policy making.

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Agency overhead costs include general and administrative costs of Valley Metro Rail, Inc. which are directly allocable to passenger operations, future project development and to capital projects. Expenditures include human resource costs for information technology, accounting and procurement, office building, supplies and equipment, computer software maintenance and offsite hosting. Overhead costs are allocated based on ratios of actual wage expended for VMR operating and capital projects.

FY18 Adopted Budget - Agency Overhead Allocation


Budget Budget (Decrease)ALLOCATION OF COSTS Revenue Operations 693,000$ 629,000$ (64,000)$ Future Projects 1,498,000 1,338,000 (160,000) Agency Operating 252,000 386,000 134,000 Northwest Extension 25,000 - (25,000) Central Mesa 59,000 36,000 (23,000) Gilbert Road 378,000 447,000 69,000 Tempe South 296,000 487,000 191,000 50th Street LRT Station 140,000 282,000 142,000 South Central Capital Project 19,000 354,000 335,000 NPR Utilities 22,000 - (22,000) Systemwide Improvements - 4,000 4,000 TOTAL ALLOCATION 3,382,000$ 3,963,000$ 581,000$

USES OF FUNDSSalaries & Fringes 1,124,000$ 1,077,000$ (47,000)$ RPTA Overhead 98,000 92,000 (6,000) Building Rent 826,000 1,096,000 270,000 IT Services and Consultants 177,000 287,000 110,000 Office Supplies 138,000 119,000 (19,000) Telecommunication Services 166,000 192,000 26,000 Employee Development 142,000 106,000 (36,000) Memberships & Subscriptions - 15,000 15,000 Business Travel - 71,000 71,000 Vehicle Related 31,000 36,000 5,000 Other Office Expense 73,000 98,000 25,000 Computer/Software/Equipment 569,000 480,000 (89,000) LRT project capital outlay 38,000 294,000 256,000

TOTAL USES 3,382,000$ 3,963,000$ 581,000$

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FY18 Adopted Budget - Northwest Extension Phase I



PTF Revenue Bonds 43,098,000$ -$ (43,098,000)$ PTF Revenue Sales Tax 20,105,000 - (20,105,000) Less Repayment Phoenix NW Advance (60,000,000) - 60,000,000

TOTAL SOURCES 3,203,000$ -$ (3,203,000)$ -

USES OF FUNDSSalaries and Fringe Benefits 45,000$ -$ (45,000)$ RPTA Overhead 4,000 - (4,000) Consultants - PM/CM 95,000 - (95,000) Consultants - Other 24,000 - (24,000) LRT project office expense 10,000 - (10,000) NWX Advance - Interest 3,000,000 - (3,000,000) Agency Overhead Allocation 25,000 - (25,000)

TOTAL USES 3,203,000$ -$ (3,203,000)$

17

FY18 Adopted Budget - Central Mesa Extension



PTF Revenue Sales Tax 934,000$ 392,000$ (542,000)$ CMAQ 3,739,000 1,569,000 (2,170,000)

TOTAL SOURCES 4,673,000$ 1,961,000$ (2,712,000)$

USES OF FUNDSSalaries and Fringe Benefits 117,000$ 154,000$ 37,000$ RPTA Overhead 10,000 14,000 4,000 Contractor - Design Build 4,479,000 1,757,000 (2,722,000) Consultants - Other 7,000 - (7,000) Agency Overhead Allocation 60,000 36,000 (24,000)

TOTAL USES 4,673,000$ 1,961,000$ (2,712,000)$

FY18 Adopted Budget - Central Mesa: Concurrent Non-Project Activities (CNPA)



Mesa 158,000$ -$ (158,000)$ TOTAL SOURCES 158,000$ -$ (158,000)$

USES OF FUNDSContractor - Design Build 158,000$ -$ (158,000)$

TOTAL USES 158,000$ -$ (158,000)$

18

FY18 Adopted Budget - Gilbert Road Extension



Mesa 2,488,000$ 4,289,000$ 1,801,000$ CMAQ 41,162,000 70,956,000 29,794,000

TOTAL SOURCES 43,650,000$ 75,245,000$ 31,595,000$

USES OF FUNDSSalaries and Fringe Benefits 783,000$ 1,103,000$ 320,000$ RPTA Overhead 68,000 95,000 27,000 Consultants - PM/CM 2,275,000 2,200,000 (75,000) Consultants - Planning Support 122,000 402,000 280,000 Consultants - Design & Construction Support 2,618,000 1,703,000 (915,000) Contractor - CM@R 21,278,000 50,568,000 29,290,000 City Construction Management 1,178,000 1,846,000 668,000 Consultants-Facilities Construction 100,000 607,000 507,000 Consultants - Art Design 317,000 469,000 152,000 Consultants - Other 476,000 510,000 34,000 Real estate acquisition 9,375,000 5,091,000 (4,284,000) Business Assistance 150,000 150,000 - Light Rail Vehicles 4,025,000 7,647,000 3,622,000 Community Advisory Board 120,000 80,000 (40,000) Data/Telecommunications 10,000 - (10,000) Advertising 6,000 1,000 (5,000) Printing 23,000 25,000 2,000 Postage 15,000 15,000 - Public meetings & information 6,000 4,000 (2,000) Other direct expenditures 23,000 33,000 10,000 Computer unit cost under 5K 25,000 - (25,000) Copier 8,000 - (8,000) LRT project office expense 82,000 - (82,000) Software Licenses/Maintenance 89,000 94,000 5,000 Local meetings & mileage 6,000 2,000 (4,000) Business Travel 4,000 10,000 6,000 LRT project capital outlay 90,000 - (90,000) Gilbert Rd Extension NPR Utilities 2,143,000 2,143,000 Agency Overhead Allocation 378,000 447,000 69,000

TOTAL USES 43,650,000$ 75,245,000$ 31,595,000$

FY18 Adopted Budget - Gilbert Road - Concurrent Non-Project Activities (CNPA)



Mesa 1,484,000$ -$ (1,484,000)$ TOTAL SOURCES 1,484,000$ -$ (1,484,000)$

USES OF FUNDSContractor - Design Build 1,484,000$ -$ (1,484,000)$

TOTAL USES 1,484,000$ -$ (1,484,000)$

19

FY18 Adopted Budget - Tempe Streetcar Extension



PTF Revenue Sales Tax 3,066,000$ 5,749,000$ 2,683,000$ FTA Section 5309 - 29,193,000 29,193,000 CMAQ 12,264,000 16,013,000 3,749,000

TOTAL SOURCES 15,330,000$ 50,955,000$ 35,625,000$

USES OF FUNDSSalaries and Fringe Benefits 609,000$ 1,216,000$ 607,000$ RPTA Overhead 53,000 104,000 51,000 Consultants - PM/CM 1,632,000 1,855,000 223,000 Consultant-Planning Support 238,000 360,000 122,000 Consultants - Design & Construction Support 3,420,000 4,227,000 807,000 Contractor - CM At Risk 1,000,000 16,485,000 15,485,000 City Construction Management 200,000 600,000 400,000 Consultants - Art Design 175,000 - (175,000) Consultants - Other 249,000 523,000 274,000 Consultants - Utility Relocation 100,000 1,309,000 1,209,000 Consultants - Vehicle Design/Procurement 7,000,000 10,500,000 3,500,000 Real estate acquisition - 400,000 400,000 Business Assistance 150,000 150,000 - Community Advisory Board - 60,000 60,000 LRT project capital outlay 100,000 - (100,000) Business Travel 4,000 10,000 6,000 Other direct expenditures 104,000 153,000 49,000 Tempe Streetcar NPR Utilities 12,516,000 12,516,000 Agency Overhead Allocation 296,000 487,000 191,000

TOTAL USES 15,330,000$ 50,955,000$ 35,625,000$

FY18 Adopted Budget - Tempe Streetcar: Concurrent Non-Project Activities (CNPA)



Tempe -$ 125,000$ 125,000$ PTF Revenue Sales Tax 154,000 154,000

TOTAL SOURCES -$ 279,000$ 279,000$

USES OF FUNDSConsultant-D&C Support -$ 125,000$ 125,000$ Consultants-Art Design - 154,000 154,000

TOTAL USES -$ 279,000$ 279,000$

20

FY18 Adopted Budget - 50th Street LRT Station



Phoenix 6,065,000$ 9,998,000$ 3,933,000$ TOTAL SOURCES 6,065,000$ 9,998,000$ 3,933,000$

USES OF FUNDSSalaries and Fringe Benefits 253,000$ 665,000$ 412,000$ RPTA Overhead 22,000 57,000 35,000 Business Assistance 60,000 60,000 - Consultants - PM/CM 1,017,000 405,000 (612,000) Consultants - Planning Support - 39,000 39,000 Consultants - Design & Construction Support 1,186,000 156,000 (1,030,000) Contractor-CM@R 1,662,000 6,036,000 4,374,000 City Construction Management 954,000 439,000 (515,000) Consultants - Art Design 76,000 141,000 65,000 Consultants - Other 58,000 225,000 167,000 Real Estate/ROW Acquisition 542,000 131,000 (411,000) Advertising 3,000 - (3,000) Printing 10,000 12,000 2,000 Postage 3,000 3,000 - Public meetings & information 4,000 4,000 - Other direct expenditures 22,000 23,000 1,000 Software Licenses/Maintenance agreements - 30,000 30,000 Local meetings & mileage 3,000 4,000 1,000 50th St LRT Station NPR Utilities - 1,266,000 1,266,000 LRT project capital outlay 50,000 20,000 (30,000) Agency Overhead Allocation 140,000 282,000 142,000

TOTAL USES 6,065,000$ 9,998,000$ 3,933,000$

21

FY18 Adopted Budget - South Central Extension



Phoenix 3,082,000$ 33,557,000$ 30,475,000$ TOTAL SOURCES 3,082,000$ 33,557,000$ 30,475,000$

USES OF FUNDSSalaries and Fringe Benefits 58,000$ 785,000$ 727,000$ RPTA Overhead 5,000 69,000 64,000 OMC Expansion - 3,279,000 3,279,000 Business Assistance - 150,000 150,000 Consultants - PM/CM 771,000 2,000,000 1,229,000 Consultants - Planning Support 229,000 446,000 217,000 Consultants - Design & Construction Support 1,000,000 10,484,000 9,484,000 Contractor-CM@R - 3,593,000 3,593,000 Consultants - Art Design - 300,000 300,000 Consultants - Other - 530,000 530,000 Real estate acquisition - 7,196,000 7,196,000 Advertising - 3,000 3,000 Printing - 18,000 18,000 Postage - 15,000 15,000 Public meetings & information - 9,000 9,000 Other direct expenditures - 21,000 21,000 Software unit cost under $5k - 54,000 54,000 Local meetings & mileage - 3,000 3,000 South Central -NPR 1,000,000 4,248,000 3,248,000 Agency Overhead Allocation 19,000 354,000 335,000

TOTAL USES 3,082,000$ 33,557,000$ 30,475,000$

22

FY18 Adopted Budget - Operations & Maintenance Center (OMC) Expansion



CMAQ -$ 2,558,000$ 2,558,000$ PTF Revenue Sales Tax - 639,000 639,000 South Central Capital Project - 3,279,000 3,279,000

TOTAL SOURCES -$ 6,476,000$ 6,476,000$

USES OF FUNDSConsultants (direct) -$ 5,400,000$ 5,400,000$ Consultant-PM/CM - 1,076,000 1,076,000

TOTAL USES -$ 6,476,000$ 6,476,000$

Note: Expansion of the Operations and Maintenance Center is required in order to support future extensions.FY18 South Central Capital Project budget includes $3.3M of OMC Expansion costs.

FY18 Adopted Budget - Non-Prior Rights Utilities Relocation (NPR)



City of Mesa 114,000$ -$ (114,000)$ Phoenix 621,000 - (621,000) CMAQ 3,237,000 - (3,237,000) PTF Revenue Sales Tax 402,000 - (402,000)

TOTAL SOURCES 4,374,000$ -$ (4,374,000)$

USES OF FUNDSSalaries and Fringe Benefits 39,000$ -$ (39,000)$ RPTA Overhead 3,000 - (3,000) Tempe Streetcar NPR Utilities 1,689,000 - (1,689,000) 50th St LRT Station NPR Utilities 621,000 - (621,000) Gilbert Rd Extension NPR Utilities 2,000,000 - (2,000,000) Agency Overhead Allocation 22,000 - (22,000)

TOTAL USES 4,374,000$ -$ (4,374,000)$

Note: Non-Prior Rights (NPR) costs have been included within the capital projects beginning in FY18.

23

*Debt Service is shown in the VMR budget for information only. The Debt Service budget is developed and included within the RPTA budget. The figures above represents the combined interest and principal amounts due for PTF Bond issuance to support Capital Rail projects.

FY18 Adopted Budget - Systemwide Improvements



Federal 5337 SOGR 341,000$ 1,311,000$ 970,000$ Federal 5312 MOD 500,000 501,000 1,000 PTF Revenue Sales Tax 11,114,000 13,292,000 2,178,000 CMAQ 4,950,000 13,200,000 8,250,000

TOTAL SOURCES 16,905,000$ 28,304,000$ 11,399,000$

USES OF FUNDSSalaries and Fringe Benefits -$ 10,000$ 10,000$ RPTA Overhead - 1,000 1,000 Consultants - General/Prelim Engineering - 125,000 125,000 Computer unit cost under 5K - 128,000 128,000 Software Licenses/Maintenance agreements - 35,000 35,000 Light Rail Vehicles 6,000,000 16,000,000 10,000,000 Systemwide Capital 10,905,000 12,001,000 1,096,000 Agency Overhead Allocation - 4,000 4,000

TOTAL USES 16,905,000$ 28,304,000$ 11,399,000$

FY18 Adopted Budget - Scheduled Capital Debt Service



PTF Revenue Sales Tax 20,559,000$ 28,211,000$ 7,652,000$ TOTAL SOURCES 20,559,000$ 28,211,000$ 7,652,000$

USES OF FUNDSDebt Service - Interest 8,366,000$ 8,961,000$ 595,000$ Debt Service -Principal 12,193,000 19,250,000 7,057,000

TOTAL USES 20,559,000$ 28,211,000$ 7,652,000$

24

FY18 Adopted Budget - Funds Flow

Funding Sources ($,000)Central Mesa

Gilbert Road

Tempe Streetcar

50th Street

StationSouth

Central OMC

ExpansionOther

Capital OperatingTotal

FundingFare Revenue -$ -$ -$ -$ -$ -$ -$ 14,300$ 14,300$ Advertising Revenue - - - - - - - 1,100 1,100 Phoenix - - - 9,998 33,557 - - 21,125 64,680 Tempe - - - - - - 125 7,295 7,420 Mesa - 4,289 - - - - - 5,964 10,253 Glendale - - - - - - - 48 48 Chandler - - - - - - - 660 660 Federal 5309 - - 29,193 - - - - - 29,193 Federal 5337 SOGR - - - - - - 1,311 - 1,311 Federal 5339 - - - - - - - 1,600 1,600 Federal CMAQ 1,569 70,956 16,013 - - 2,558 13,200 1,426 105,722 Federal 5307 PM - - - - - - - 1,366 1,366 Federal 5312 MOD - - - - - - 501 - 501 Regional PTF Sales Tax 392 - 5,749 - - 639 13,446 11,236 31,462 RPTA - - - - - - - 500 500 MAG Arranged Funding - - - - - - - 500 500

Total Funding 1,961$ 75,245$ 50,955$ 9,998$ 33,557$ 3,197$ 28,583$ 67,120$ 270,616$

25

Five – Year Operating Forecast and Capital Program

Fiscal Year 2018 – Fiscal Year 2022

26

VALLEY METRO RAIL SERVICES VMR was formed to plan, design, construct, and operate the VALLEY METRO Light Rail Transit System. The Approved Light Rail Alignment (the initial 20-mile segment) was completed on time and commenced serving passengers in Phoenix, Tempe, and Mesa in December 2008. An additional 40 miles of High Capacity Transit, to be funded by local taxes, Proposition 400 revenues, and Federal Funds, are planned for future years. See “Future Projects” for further information.

In 2015 the City of Phoenix voters approved Prop 104 providing transportation funding. Based on City of Phoenix projections, the map below shows projects moving forward in advance of the current Transit Life Cycle Plan.

27

VALLEY METRO RAIL SERVICES (continued) Operations & Maintenance: VMR is responsible for overseeing the day-to-day operations of the VMR system with the ultimate goal of providing a safe, reliable and customer focused transit system. In December of 2008, revenue operations began and VMR commenced comprehensive management of rail passenger services including safety, security, public information and marketing, risk management, fare collection, finance, transportation service delivery and LRT systems maintenance. VMR is self-performing core systems maintenance including track, power, signals and communication systems. Future Project Planning and Development: The proposed high capacity/light rail transit system will include over 66 miles of service in four cities within the next 17 years. Before any specific transit corridor is initiated, VMR will study and configure the system to better understand how corridors connect, determine facility requirements, and define operating parameters. System planning is the first step in developing the high capacity transit network. It is followed by the corridor planning for individual corridors. Once technologies and alignments are determined in each corridor, proposed engineering is engaged. A key objective during project development is to define all aspects of each high capacity transit corridor project, identify the appropriate transit technology, the alignment, stations, park-and-rides, maintenance facilities, traction power substations, and bus interface. VMR staff is committed to working closely with policy makers, public agencies, businesses, community stakeholders, utility companies to assure an early and complete understanding of their needs and issues, before design begins. VMR is responsible to assure that adequate funding is in place to implement, maintain and operate the light rail program. VMR staff works closely with federal, state, regional and local agencies that provide present and future funding for the light rail system. VMR, in coordination with all affected agencies, annually updates the HCT element of the Transit Life Cycle Program, which defines light rail projects, funding, and schedule. Finally, VMR assists with light rail station area planning by actively engaging to support member cities’ efforts to facilitate Transit Oriented Development (TOD). Design and Construction: VMR is responsible for the design and construction of the regional rail transit system. Efforts include design for guideway, passenger stations, LRV traction power, signals and communications systems and maintenance facilities. VMR coordinates right-of-way acquisitions and public and private utility relocations to make way for construction. Construction contract specifications are developed and competitive procurements executed. Construction is managed to meet planned budget and schedule requirements. Emphasis is placed on delivering a high quality product focused on meeting the long-term needs to operate and maintain systems for rail passenger services.

28

FIVE-YEAR OPERATING AND CAPITAL PROGRAM The By-Laws of the Corporation call for the Board of Directors to approve a Five-Year Operating and Capital Program annually, which identifies anticipated operating costs, capital projects and costs, and the associated funding sources. The Fiscal Year 2018 – Fiscal Year 2022 Five-Year Operating and Capital Program will be completed and submitted to the Board of Directors for approval along with the Fiscal Year 2018 Operating and Capital Budget. Five-Year Operating and Capital Program Forecast Summary

FY18 FY19 FY20 FY21 FY22 TOTALUSES OF FUNDS ($,000)

Operations & Maintenance 47,943$ 49,944$ 53,374$ 58,520$ 61,846$ 271,627$ Project Development Planning 17,592 11,272 9,178 8,176 8,412 54,629 Agency Operating Budget 1,585 1,633 1,681 1,730 1,781 8,410

Subtotal - Operating 67,120 62,849 64,233 68,426 72,039 334,666

Central Mesa 1,961 - - - - 1,961 Gilbert Rd 75,245 39,742 12,044 - - 127,031 Tempe Streetcar 50,955 56,418 40,045 9,726 2,386 159,530 50th Street Station 9,998 2,969 349 64 - 13,380 South Central 33,557 96,726 120,955 87,757 175,891 514,886 OMC Expansion 3,197 8,076 5,612 2,895 - 19,780 Northwest Phase II - 70,740 50,191 54,725 51,312 226,968 Capitol I-10 West Phase I - 14,521 29,698 37,000 46,374 127,593 West Phoenix Central Glendale - - 22,703 129,204 147,500 299,407 CNPA Projects 279 - - - - 279 Systemwide Improvements 28,304 24,598 4,375 3,521 2,567 63,365

Subtotal - Capital 203,496 313,790 285,972 324,892 426,030 1,554,180

Total Uses 270,616$ 376,639$ 350,205$ 393,318$ 498,069$ 1,888,846$

SOURCES OF FUNDS ($,000)

Phoenix 64,684$ 116,286$ 55,472$ 89,520$ 121,184$ 447,146$ Tempe 7,420 14,075 14,116 12,126 13,675 61,412 Mesa 10,253 7,096 8,942 8,974 9,366 44,631 Glendale 48 1,439 4,703 37,205 44,006 87,400 Chandler 661 45 46 43 45 839 MAG / RPTA 1,000 1,000 1,000 1,000 1,000 5,000

Subtotal 84,065 139,941 84,278 148,868 189,275 646,428

PTF Sales Tax Revenue (Allocation 43.24%) 43,487 47,060 50,924 54,607 58,102 254,179 PTF (Reserve) / Bond Borrowing (12,032) 29,290 32,234 12,359 13,008 74,860

PTF Regional Revenue - Demand 31,455 76,350 83,158 66,966 71,110 329,039

TPAN Funds - 21,815 12,044 - - 33,859 LRT Fares 14,300 14,842 15,180 15,600 15,894 75,816 Advertising 1,100 1,100 1,100 1,100 1,100 5,500

FTA Section 5309 29,193 72,213 136,913 122,372 167,878 528,568 FTA Section 5339 1,600 - - - - 1,600 CMAQ 105,724 46,048 14,346 35,503 49,396 251,017 Federal 5307 PM 1,366 1,429 1,495 1,564 1,635 7,489 Federal 5337 SOGR 1,812 2,900 1,691 1,345 1,781 9,531

Subtotal Federal 139,696 122,590 154,445 160,784 220,690 798,204

Total Sources 270,616$ 376,639$ 350,205$ 393,318$ 498,069$ 1,888,846$

29

Five-Year Operating Forecast The Operations & Maintenance (O&M) costs are projected based on current cost history with a general inflation escalation factor of 3.0%. Anticipated structural changes to staffing, contract and materials expenses are forecasted to meet customer demand and maintain the system in a state of good repair. System-wide and specific corridor LRT Project Development Planning activities are included in the operating budget. Once a project has been approved for proposed engineering, the costs are thereafter capital in nature. Agency Operating costs include those costs not directly allocable to capital projects or to passenger operations. Included are costs of annual audit, federal and state legislative representation, and memberships to transportation related organizations. Operating costs and funding planned for the Fiscal Year 2018 through Fiscal Year 2022 planning horizon are as follows:

5-Year Operating Assumptions:

Gilbert Rd opens revenue service in May 2019 Tempe Streetcar opens revenue service in September 2020


Operations & Maintenance 47,943$ 49,944$ 53,374$ 58,520$ 61,846$ 271,627$ Project Development Planning 17,592 11,272 9,178 8,176 8,412 54,629 Agency Operating Budget 1,585 1,633 1,681 1,730 1,781 8,410

Total Uses 67,120$ 62,849$ 64,233$ 68,426$ 72,039$ 334,666$

SOURCES OF FUNDS ($,000)LRT Fares:

Phoenix 9,361$ 9,717$ 9,905$ 10,012$ 10,206$ 49,201$ Tempe 3,036 3,143 3,200 3,493 3,555 16,427 Mesa 1,903 1,982 2,075 2,095 2,133 10,188

Subtotal Fares 14,300 14,842 15,180 15,600 15,894 75,816

Other Revenues:Phoenix 21,129 20,673 20,737 20,800 21,869 105,206 Tempe 7,295 7,469 7,509 12,126 13,675 48,074 Mesa 5,964 6,074 8,942 8,974 9,366 39,320 Glendale 48 1,439 46 43 45 1,620 Chandler 661 45 46 43 45 839 Advertising 1,100 1,100 1,100 1,100 1,100 5,500

Subtotal Local Revenues 36,196 36,800 38,380 43,086 46,098 200,560

Capital Planning Funds - PTF 11,229 8,778 8,178 7,176 7,412 42,773

Federal 5307 PM 1,366 1,429 1,495 1,564 1,635 7,489 FTA 5339 1,600 - - - - 1,600 RPTA 500 500 500 500 500 2,500 MAG 500 500 500 500 500 2,500 CMAQ 1,429 - - - - 1,429

Total Sources 67,120$ 62,849$ 64,233$ 68,426$ 72,039$ 334,666$

30

Passenger Operations & Maintenance Rail Transportation Service Delivery: Rail Transportation is responsible for ensuring the overall safety and reliability of the VMR system. This includes the Rail Control Center, Field Supervision and Train Operators. Rail Transportation will be responsible for monitoring the VMR system on a 24/7 basis. LRV Maintenance: LRV Maintenance is responsible for the preventive and corrective maintenance required to ensure a high level of LRV availability and reliability. In addition, each LRV will be cleaned on a daily basis. System Maintenance: Systems Maintenance is responsible for maintaining all VMR systems and facilities, including: track, communications, signals, stations, traction power distribution and overhead centenary systems. Administration: Rail transportation and maintenance operations are supported by administrative activities including public safety and security, marketing and customer service, legal and procurement, finance and accounting, risk management, and information systems. Fares: Effective March 2013, the current Regional Fare Policy is as follows:

***Reduced Fare – ADA Certified, Youth (6-18) and Seniors (age 65 and over)

31

Rail Operations and Maintenance Cost Forecast Fiscal Year 2018 through 2022

The total $47.9 million operating cost forecast in FY18 is composed of the following components:

Base 26 mile system $ 47.9 M


Base 26 mile system $ 49.5 M Gilbert Rd Extension $ 0.4 M


Base 26 mile system $ 50.5 M Gilbert Rd Extension $ 2.9 M


Base 26 mile system $ 51.8 M Gilbert Rd Extension $ 3.0 M Tempe Streetcar $ 3.7 M


Base 20 mile system $ 54.0 M Gilbert Rd Extension $ 3.1 M Tempe Streetcar $ 4.7 M

Forecasted Rail Ridership and Average Fare Fiscal Year 2018 to Fiscal Year 2022

Annual Cost Projection ($,000) FY18 FY19 FY20 FY21 FY22 TOTALTransportation $19,664 $20,493 $22,412 $25,457 $26,956 $114,982Vehicle Maintenance 8,425 8,859 9,019 9,430 10,336 46,069Systems and Facilities Maintenance 13,233 13,721 14,603 15,620 16,208 73,385Administration 6,621 6,871 7,340 8,013 8,346 37,191

Total Annual Cost Projection $47,943 $49,944 $53,374 $58,520 $61,846 $271,627

FY18 FY19 FY20 FY21 FY22 TOTAL

Ridership (,000)Phoenix 11,013 11,432 11,653 11,878 12,108 58,084Tempe 3,572 3,698 3,765 4,144 4,218 19,397Mesa 2,239 2,331 2,442 2,486 2,530 12,028

Total Ridership 16,824 17,461 17,860 18,508 18,856 89,509

Avg Fare - Rail $0.85 $0.85 $0.85 $0.85 $0.85

Avg Fare - Streetcar $0.43 $0.43

32

Rail Operations Uses and Sources of Funds Fiscal Year 2018 to Fiscal Year 2022

Fare revenue is forecasted to grow from FY18 through FY22 with increased ridership. Baseline ridership is forecasted to grow by 2% per year. Additional passenger rides are developed in FY18 through FY22 with the addition of the Gilbert Road and Tempe Streetcar Extensions.


Phoenix $30,363 $31,241 $31,414 $31,479 $32,729 $157,226Tempe $10,408 $10,711 $10,777 $15,828 $17,461 $65,185Mesa $7,172 $7,992 $11,183 $11,213 $11,656 $49,216

Total Uses $47,943 $49,944 $53,374 $58,520 $61,846 $271,627

SOURCES OF FUNDS ($,000) FY18 FY19 FY20 FY21 FY22 TOTALFares

Phoenix $9,361 $9,717 $9,905 $10,012 $10,206 $49,201Tempe $3,036 $3,143 $3,200 $3,493 $3,555 $16,427Mesa $1,903 $1,982 $2,075 $2,095 $2,133 $10,188

Subtotal Fares $14,300 $14,842 $15,180 $15,600 $15,894 $75,816

Advertising

Phoenix $765 $765 $724 $679 $669 $3,602Tempe $198 $198 $184 $245 $258 $1,083Mesa $137 $137 $192 $176 $173 $815

Subtotal Advertising $1,100 $1,100 $1,100 $1,100 $1,100 $5,500

Federal 5307 PMPhoenix $873 $903 $889 $853 $876 $4,394Tempe $291 $301 $296 $414 $454 $1,756Mesa $202 $225 $310 $297 $305 $1,340

Subtotal Federal $1,366 $1,429 $1,495 $1,564 $1,635 $7,489

Member City FundingPhoenix $19,364 $19,856 $19,896 $19,935 $20,978 $100,029Tempe $6,883 $7,069 $7,097 $11,676 $13,194 $45,919Mesa $4,930 $5,648 $8,606 $8,645 $9,045 $36,873

Subtotal Member City Funding $31,177 $32,573 $35,599 $40,256 $43,217 $182,822

Total Sources $47,943 $49,944 $53,374 $58,520 $61,846 $271,627

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Project Development Planning Project development planning consists of the following subcategories of System Planning and Corridor Planning activities:

Light rail/high capacity transit system planning.

Alternatives analysis, environmental analysis, and conceptual engineering for future light rail/high capacity transit corridors.

Developing and updating LRT design criteria, standards and specification

Working with the Maricopa Association of Governments and the Regional Public Transportation Authority to participate in their regional transit planning studies and to update regional project programming documents.

Support of Transit Oriented Development initiatives by Member Cities.

Development of a comprehensive Geographic Information System (GIS) for the agency.

The projected uses and sources of funds in connection with Capital Project Development over the next five years are summarized as follows: Capital Project Development Fiscal Year 2018 to Fiscal Year 2022


Capitol/I-10 West 1,786$ -$ -$ -$ -$ 1,786$ Capitol/I-10 West Phase II - 85 157 301 301 844 South Central 683 - - - - 683 West Phoenix/Central Glendale 940 2,270 1,375 - - 4,585 Northeast Phoenix 228 - - - - 228 I-10/I-17 Bus Ramp Design (FTA) 2,000 - - - - 2,000 Fiesta/Downtown Chandler 1,362 100 - - - 1,462 Northwest Phase II 2,577 - - - - 2,577 16th Street Advanced Feasibility Study 60 - - - - 60 West Glendale Feasibility Study - 1,394 - - - 1,394 OMC Master Plan and Phasing Study (PTF) 748 - - - - 748 Systems Planning & Project Development 5,962 6,141 6,325 6,515 6,710 31,651 Capital Project Development Administration 1,245 1,282 1,321 1,360 1,401 6,610

Total Uses 17,592$ 11,272$ 9,178$ 8,176$ 8,412$ 54,629$

SOURCES OF FUNDS ($,000)Phoenix 972$ -$ -$ -$ -$ 972$ Mesa 749 100 - - - 849 Glendale - 1,394 - - - 1,394 Chandler 613 - - - - 613 CMAQ 1,429 - - - - 1,429 FTA 5339 1,600 - - - - 1,600 PTF 11,229 8,778 8,178 7,176 7,412 42,773 RARF RPTA 500 500 500 500 500 2,500 MAG 500 500 500 500 500 2,500

Total Sources 17,592$ 11,272$ 9,178$ 8,176$ 8,412$ 54,629$

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Five-Year Capital Program – Fiscal Year 2018 through Fiscal Year 2022 Capital projects included in the five year program include:

Central Mesa: continuation of the train signal control system upgrade known as

SCADA project. Gilbert Road Extension: 1.9 mile alignment extending from terminus of Central

Mesa extension eastbound to Gilbert Road. Tempe Streetcar: 3.0 mile alignment extending southward along Mill Avenue in

downtown Tempe from Rio Salado to Southern. Capitol / I-10 West: 11.0 mile alignment from downtown Phoenix westward to the

vicinity of 79th Avenue. South Central: 5.0 mile southern extension of the existing Valley Metro light rail

line along Central and 1st Avenues in central Phoenix. 50th Street LRT Station: station will enhance mobility options by serving a regional

facility for persons with disabilities and other developments in the area. Northwest Extension Phase 2: a 1.5 mile extension which will extend west on

Dunlap Ave., north on 25th Ave. and across I-17 near Mountain View Rd. with a terminus on the west side of the freeway near Metrocenter Mall.

West Phoenix Central Glendale: a 5.0 mile extension connecting the light rail system at 19th Avenue and Camelback Road in Phoenix with downtown Glendale at 58th Avenue and Glenn Drive

Systemwide Improvements: Includes 8 additional light rail vehicles, fare technology improvements, system component overhauls to maintain a state of good repair, and small capital improvement elements which benefit the entire LRT system.

The Capital Program report is a multiple year (five fiscal years) forecast of the capital projects managed by VMR. Costs and revenues are reported on an accrual basis. Actual cash flow impacts may lag pending receipt of contractor billings and receipt of federal funding.

35

Five-Year Capital Forecast All Capital Projects -- Uses of Funds: VMR currently has a number of transit projects in various stages of planning, design or construction. The overall uses of funds associated with these projects and activities are projected to be $1,544.2 million through the five-year planning horizon. These uses of funds are summarized as follows:

All Capital Projects -- Sources of Funds: Funding is derived from three primary sources: Regional Sales Taxes (Public Transportation Fund), Federal Grants, and member city contributions. These sources of funds are summarized as follows:

FY18 FY19 FY20 FY21 FY22 TOTAL

USES OF FUNDS ($,000)

Central Mesa 1,961$ -$ -$ -$ -$ 1,961$

Gilbert Rd 75,245 39,742 12,044 - - 127,031

Tempe Streetcar 50,955 56,418 40,045 9,726 2,386 159,530

50th Street Station 9,998 2,969 349 64 - 13,380

South Central 33,557 96,726 120,955 87,757 175,891 514,886

OMC Expansion 3,197 8,076 5,612 2,895 - 19,780

Northwest Extension Phase II - 70,740 50,191 54,725 51,312 226,968

Capitol I-10 West Phase I - 14,521 29,698 37,000 46,374 127,593

West Phoenix Central Glendale - - 22,703 129,204 147,500 299,407

Subtotal HCT Corridors 174,913 289,192 281,597 321,371 423,463 1,490,536

CNPA Projects 279 - - - - 279

Systemwide Improvements 28,304 24,598 4,375 3,521 2,567 63,365

Total Uses 203,496$ 313,790$ 285,972$ 324,892$ 426,030$ 1,554,180$

FY18 FY19 FY20 FY21 FY22 Total

SOURCES OF FUNDS ($,000)

Phoenix 43,555$ 95,614$ 34,735$ 68,721$ 99,316$ 341,940$

Tempe 125 6,606 6,607 - - 13,338

Mesa 4,289 1,022 - - - 5,311

Glendale - - 4,656 37,162 43,961 85,779

Subtotal 47,969 103,242 45,998 105,882 143,277 446,368

PTF Sales Tax Revenue (Allocation 43.24%) 32,258 38,282 42,746 47,431 50,690 211,407

PTF (Reserve) / Bond Borrowing (12,032) 29,290 32,234 12,359 13,008 74,860

PTF Regional Revenue - Demand 20,226 67,572 74,980 59,790 63,698 286,266

TPAN - 21,815 12,044 - - 33,859

Federal Revenues:

FTA 31,005 75,113 138,604 123,717 169,659 538,098

CMAQ 104,296 46,048 14,346 35,503 49,396 249,588

Subtotal Federal 135,301 121,161 152,950 159,220 219,055 787,686

Total Sources 203,496$ 313,790$ 285,972$ 324,892$ 426,030$ 1,554,180$

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High Capacity Transit Projects: The Regional Transportation Plan (RTP), adopted by the Maricopa Association of Governments (MAG) and financed under the one-half cent sales tax extension, identifies 66 miles of major high capacity/ light rail transit corridors to be implemented by 2034. Currently the 1.9-mile Gilbert Road extension to serve east Mesa is under construction. The 3.0-mile Tempe Streetcar project is in final design. City of Phoenix voters approved Proposition 104, a 35-year transportation plan that would expedite several miles of light rail/high capacity transit and add additional corridors to the regional high capacity transit system. Under the plan additional service areas are identified; 5.0-miles into south Phoenix, 5.0-miles west into West Phoenix and Central Glendale, 1.5-mile Northwest extension (phase II), 1.5-mile Capitol/I-10 West extension (phase I), an additional 9.5-miles Capitol/I-10 West extension (phase II) and 12.0-miles into northeast Phoenix. Valley Metro is the agency charged with planning, designing, building and operating the light rail transit (LRT)/high capacity transit (HCT) system in the area. The timing of the projects in the program is depicted on the following schedule shown below:

Funding for future projects has two phases:

1) Planning Budget Phase: Alternative Analysis and the draft environmental document

are funded from Member City contributions, and PTF. 2) Capital Budget Phase: After environmental clearance and completion of 30%

design, costs are included in the capital budget and funded by Federal, regional, and local sources.

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Central Mesa Extension: The Central Mesa Extension remaining activity in FY18 is related to the train signal control system upgrade known as SCADA.

Central Mesa Extension Alignment

Central Mesa Extension Sources and Uses of Funds: The total capital cost of the Central Mesa Extension project through Fiscal Year 2018 is budgeted to be approximately $183.8 million, excluding financing costs.

- - - - - - - ($,000) - - - - -

Concurrent Non-Project Activities Related to Central Mesa:

- - - - - - - ($,000) - - - - - -

Central Mesa Extension Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation 605$ -$ -$ -$ -$ -$ 605$ Project Costs 181,278 1,961 - - - - 183,239 Financing Costs 5,905 - - - - - 5,905

Total Capital Costs 187,788$ 1,961$ -$ -$ -$ -$ 189,749$

CAPITAL REVENUES FTA Section 5309 75,000$ -$ -$ -$ -$ -$ 75,000$ CMAQ 43,847 1,569 - - - - 45,416 Subtotal Federal 118,847 1,569 - - - - 120,416

PTF Revenue 68,941 392 - - - - 69,333 Subtotal Local 68,941 392 - - - - 69,333

Total Capital Revenue 187,788$ 1,961$ -$ -$ -$ -$ 189,749$

CNPA Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTAL

Total CNPA Costs 7,568$ -$ -$ -$ -$ -$ 7,568$

REVENUESMesa 7,568$ -$ -$ -$ -$ -$ 7,568$

Total Local Revenue 7,568$ -$ -$ -$ -$ -$ 7,568$

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Gilbert Road Extension -- The Gilbert Road Extension will improve mobility and provide additional capacity in the Main Street corridor in Mesa. In addition, the project will connect the corridor with major activity and employment centers located east and west of the project corridor, such as Downtown Phoenix, Downtown Tempe, Sky Harbor International Airport and Arizona State University. The project will also enhance connectivity to the Mesa Link BRT (with in-street mixed traffic operations) that currently operates as a feeder to the end-of-line Sycamore LRT station in Mesa and serves East Mesa including Superstition Springs Mall. In 2009, Valley Metro, the Mesa City Council and the Maricopa Association of Governments (MAG) approved extending light rail for 3.1 miles along Main Street from the current end-of-line station at Sycamore to Mesa Drive. This extension, known as the Central Mesa Extension, completed construction ahead of schedule and commenced passenger operations in August 2015. As part of the 2009 recommendations, a 1.9-mile extension on Main Street east to Gilbert Road was included as a future project. This segment, the Gilbert Road Extension, was recommended because of strong transit ridership, opportunities to optimize regional transportation connections, and an optimal location for an end-of-line park-and-ride. Valley Metro and the City of Mesa began a study of the potential Gilbert Road Extension in 2011 and completed it in summer 2012. This planning study identified and evaluated various alternatives, on where and how light rail could be placed in this 1.9-mile segment of Main Street. Valley Metro and the City of Mesa have entered the next phase of the planning process, the Environmental Assessment (EA), which was introduced to the public in September. In this phase, alternatives were analyzed in more detail and defined potential station locations and a park-and-ride facility. Design for the Gilbert Road Extension began in FY14, with construction commencing in 2016. Passenger operations is scheduled to begin in May 2019.

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Gilbert Road Extension Alignment

Gilbert Road Extension Sources and Uses of Funds: The total capital cost of the Gilbert Road Extension project is budgeted to be approximately $181.5 million.

- - - - - - ($,000) - - - -

Gilbert Rd Extension Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTAL

CAPITAL COSTS

NPR Utilities Relocation 3,031$ 2,143$ -$ -$ -$ -$ 5,174$

Project Costs 47,442 65,455 39,742 6,857 - - 159,496 Vehicle Procurement 4,025 7,647 - 5,187 - - 16,859

Total Capital Costs 54,498$ 75,245$ 39,742$ 12,044$ -$ -$ 181,529$

CAPITAL REVENUES

City of Mesa 3,106$ 4,289$ 1,022$ -$ -$ -$ 8,417$

TPAN - - 21,815 12,044 - - 33,859

CMAQ Flex 51,392 70,956 16,905 - - - 139,253

Total Capital Revenue 54,498$ 75,245$ 39,742$ 12,044$ -$ -$ 181,529$

40

Tempe Streetcar Extension -- The Tempe Streetcar extension project is located on Rio Salado Parkway from the Marina Heights development west to Mill Avenue, downtown loop on Mill and Ash avenues and south to Apache Boulevard, then east to Dorsey lane. The Tempe Streetcar will run in a one-way loop between Rio Salado Parkway and University Drive, going north on Mill Avenue and south on Ash Avenue. The Tempe Streetcar will operate weekday trains at approximately 10 minute intervals during peak hours and 15 to 20-minute intervals off-peak. Weekends do not require peak service trains and will operate at 15 to 30-minute headways. Service headways will be adjusted over time to accommodate growth and service patterns. This project is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax, local funding, and federal grants. Project Development activities including final design, pre-construction activities and ROW acquisition for the Tempe Streetcar project is anticipated to be completed by the end of FY18. Pending FTA Small Starts Grant Agreement execution in FY18, construction could be complete in FY20.

Tempe Streetcar Extension Alignment

41

Tempe Streetcar Extension Sources and Uses of Funds: The total capital cost of the Tempe Streetcar project over the Fiscal Year 2018 to Fiscal Year 2022 period is budgeted to be approximately $176.6 million, excluding financing costs.

- - - - - - ($,000) - - - -

Concurrent Non-Project Activities Related to Tempe Streetcar:

Tempe Streetcar Extension Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation 1,689$ 12,516$ 1,140$ 213$ -$ -$ 15,558$ Project Costs 8,403 27,939 55,278 29,740 6,226 2,386 129,972 Vehicle Procurement 7,000 10,500 - 10,092 3,500 - 31,092 Financing Costs 176 4,172 3,508 1,616 - - 9,472

Total Capital Costs 17,268$ 55,127$ 59,926$ 41,661$ 9,726$ 2,386$ 186,094$

CAPITAL REVENUES FTA Section 5309 -$ 29,193$ 23,850$ 16,711$ 3,901$ 957$ 74,612$ CMAQ 3,341 16,013 - - - - 19,354 Subtotal Federal 3,341 45,206 23,850 16,711 3,901 957 93,966

Tempe - - 6,606 6,607 - - 13,213 PTF Revenue 13,927 9,921 29,470 18,343 5,825 1,429 78,915 Subtotal Local 13,927 9,921 36,076 24,950 5,825 1,429 92,128

Total Capital Revenue 17,268$ 55,127$ 59,926$ 41,661$ 9,726$ 2,386$ 186,094$

CNPA Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTALTotal CNPA Costs -$ 279$ -$ -$ -$ -$ 279$

REVENUESTempe -$ 125$ -$ -$ -$ -$ 125$ PTF Revenue - 154 154

Total Local Revenue -$ 279$ -$ -$ -$ -$ 279$

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South Central Extension – The South Central Light Rail Extension will consist of an approximately 5.0-mile-long southern extension of the existing Valley Metro light rail line along Central and 1st Avenues in central Phoenix. The extension tracks would connect to the existing light rail system at Central Avenue and Washington Street in the northbound direction and at 1st Avenue and Jefferson Street in the southbound direction. The track would continue south along 1st and Central Avenues to Hadley Street, where the southbound track would follow the 1st Avenue one-way couplet curve to the east to rejoin Central Avenue. From Hadley Street to the extension’s southern terminus at Baseline Road, the tracks would operate bi-directionally along Central Avenue. The South Central Light Rail Extension Project is scheduled to begin operations in 2023. The South Central Light Rail Extension will operate weekday trains at approximately 12 minute intervals during peak hours and 15 to 20-minute intervals off-peak. Weekends do not require peak service trains and will operate at 15 to 30-minute headways. Service headways will be adjusted over time to accommodate growth and service patterns. Preliminary engineering for the South Central LRT Extension began in FY17, with design commencing in FY18. FTA issued a Finding of No Significant Impact (FONSI) on January 6, 2017. Valley Metro will request entry to FTA New Starts engineering phase in FY18. Passenger operations are scheduled to begin in 2023.

South Central Extension Alignment

43

South Central Extension Sources and Uses of Funds: The total capital cost of the South Central project is estimated to be approximately $690.0 million. This extension is part of the Regional Transportation Plan and is planned to be funded by City of Phoenix Transit 2050 local sales tax and federal grants.

- - - - - - ($,000) - - - -

South Central Extension Pre-FY18 FY18 FY19 FY20 FY21 FY22 Post-FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation 1,000$ 4,248$ 14,343$ 14,343$ 1,434$ -$ -$ 35,368$ Project Costs 2,082 26,030 34,064 74,166 83,353 122,514 172,032 514,241 Vehicle Procurement - - 40,033 26,688 - 53,377 - 120,098 OMC Expansion - 3,279 8,286 5,758 2,970 - - 20,293

Total Capital Costs 3,082$ 33,557$ 96,726$ 120,955$ 87,757$ 175,891$ 172,032$ 690,000$

CAPITAL REVENUESFuture Federal -$ -$ 48,363$ 60,478$ 43,879$ 87,946$ 86,016$ 326,681$

Subtotal Federal - - 48,363 60,478 43,879 87,946 86,016 326,681

Phoenix 3,082 33,557 29,018 36,287 26,327 52,767 51,610 232,647 PTF Revenue - - 19,345 24,191 17,551 35,178 34,406 130,672

Subtotal Local 3,082 33,557 48,363 60,478 43,879 87,946 86,016 363,320

Total Capital Revenue 3,082$ 33,557$ 96,726$ 120,955$ 87,757$ 175,891$ 172,032$ 690,000$

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50TH Street LRT Station: The 50th Street Light Rail station will enhance mobility options by serving a regional facility for persons with disabilities and other developments in the area. The project is completely funded by City of Phoenix as part of the voter approved Proposition 104. The project is currently in design phase and is expected to begin construction in spring 2017.

50TH Street Station

50th Street LRT Station Sources and Uses of Funds: The total capital cost of the 50th Street LRT station project over the FY18 to FY22 period is budgeted to be approximately $20.1 million.

- - - - - - ($,000) - - - -

50th Street LRT Station Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation 621$ 1,266$ 445$ -$ -$ -$ 2,332$ Project Costs 6,065 8,732 2,524 349 64 - 17,734

Total Capital Costs 6,686$ 9,998$ 2,969$ 349$ 64$ -$ 20,066$

CAPITAL REVENUESPhoenix 6,686$ 9,998$ 2,969$ 349$ 64$ -$ 20,066$

Total Capital Revenue 6,686$ 9,998$ 2,969$ 349$ 64$ -$ 20,066$

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Operations and Maintenance Center Facility Expansion – Valley Metro plans to expand the existing Operations and Maintenance Center (OMC), located east of Phoenix Sky Harbor International Airport and southwest of the intersection of the Grand Canal and Loop 202. The OMC expansion would include modifications to the Maintenance of Equipment (MOE) building, storage tracks and cleaning platform. The MOE building modifications would consist of an approximately 23,000-square-foot expansion to the east with improvements/modifications to the existing mezzanine, office space, inspection pits and cranes. Expansion of vehicle storage would include construction of seven new storage tracks (north and south of the existing storage tracks) to increase total storage capacity to 100 vehicles. Finally, two new tracks and a second cleaning platform would be constructed south of the existing cleaning platform. The OMC expansion would occur within the existing facility boundaries; thus, no additional property would be required.

OMC Facility Expansion

46

OMC Expansion Sources and Uses of Funds: This extension is part of the Regional Transportation Plan and is planned to be funded by PTF funds and federal grants. The total capital cost of the project over the FY18 to FY22 period excluding finance costs is budgeted to be approximately $40.1 million. Note: South Central Capital Project budget includes $20.3M of OMC Expansion costs.

Northwest Extension Phase II - The Northwest extension will enhance mobility options for a largely transit-dependent community and provide connectivity with employment centers near the I-17 freeway. It will support nearly 10,000 family housing units and help up to 20,000 employees get to work. It will also bolster community revitalization. In 2004, the Phoenix City Council approved the Northwest Light Rail Extension, which included 4.7 miles of additional light rail service, extending from the current end-of-line at 19th Ave. and Montebello Ave. to Mountain View Rd. and 25th Ave. In 2007, the route was divided into two phases. The 3.2-mile Phase I on 19th Ave. from Montebello Ave. to Dunlap Ave. began revenue operations in March 2016. Phase II of the project will extend west on Dunlap Ave., north on 25th Ave. and across I-17 near Mountain View Rd. with a terminus on the west side of the freeway near Metrocenter Mall. The Phoenix City Council approved the I-17 crossing in 2014. Preliminary engineering and environmental assessment on the project is currently underway. Phase II is scheduled to open in 2023.

OMC Expansion Pre-FY18 FY18 FY19 FY20 FY21 FY22 TOTALCAPITAL COSTS

Project Costs -$ 6,476$ 16,362$ 11,370$ 5,865$ -$ 40,073$

Total Capital Costs -$ 6,476$ 16,362$ 11,370$ 5,865$ -$ 40,073$

CAPITAL REVENUESCMAQ -$ 2,558$ 6,461$ 4,490$ 2,316$ -$ 15,824$

Subtotal Federal - 2,558 6,461 4,490 2,316 - 15,824

South Central Extension - 3,279 8,286 5,758 2,970 - 20,293 PTF Revenue - 639 1,615 1,122 579 - 3,956

Subtotal Local - 3,918 9,901 6,880 3,549 - 24,249

Total Capital Revenue -$ 6,476$ 16,362$ 11,370$ 5,865$ -$ 40,073$

47

Northwest Extension Phase II Alignment

Northwest Extension Phase II Sources and Uses of Funds: The total capital cost of the Northwest Phase II Extension project is budgeted to be approximately $280.9 million.

- - - - - - ($,000) - - - -

Northwest Extension Phase II Pre-FY18 FY18 FY19 FY20 FY21 FY22 Post-FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation -$ -$ 3,626$ 3,721$ 3,356$ -$ -$ 10,703$ Project Costs - - 58,114 33,228 51,263 51,312 53,923 247,840 Vehicle Procurement - - 9,000 13,242 106 - - 22,348

Total Capital Costs -$ -$ 70,740$ 50,191$ 54,725$ 51,312$ 53,923$ 280,891$

CAPITAL REVENUES FTA Section 5309 -$ -$ -$ 48,372$ 21,890$ 20,525$ 21,569$ 112,356$ Subtotal Federal - - - 48,372 21,890 20,525 21,569 112,356

Phoenix - - 63,627 (3,896) 26,403 27,708 29,119 142,961 PTF Revenue - - 7,113 5,715 6,432 3,079 3,235 25,574

Subtotal Local - - 70,740 1,819 32,835 30,787 32,354 168,535

Total Capital Revenue -$ -$ 70,740$ 50,191$ 54,725$ 51,312$ 53,923$ 280,891$

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Capitol / I-10 West Extension Phase I -- The Capitol / I-10 West Extension Phase I will improve mobility and provide additional capacity in the I-10 corridor in West Phoenix. In addition, the project will connect the West valley with major activity and employment centers located near Downtown Phoenix, such as State Capitol, Maricopa County and City of Phoenix Governmental Mall. The project will also enhance regional connectivity by connecting with the existing Valley Metro light rail. In May 2012, the City of Phoenix Council adopted a locally preferred alternative (LPA), consisting of an 11.0-mile light rail transit project from the 79th Avenue Park-and-Ride (P&R) on I-10 to the existing light rail transit system in downtown Phoenix to be carried forward for environmental analysis. In July 2012, MAG Regional Council approved the recommendation for light rail as the preferred mode on the route shown on the map below. This extension is part of the Regional Transportation Plan and funded by Proposition 400 regional sales tax and federal grants that are included in the TLCP and the Transportation Improvement Program (TIP). In addition, the City of Phoenix passed an extension of their transportation tax (Proposition 104) that included this extension. In June 2016, Valley Metro Rail Board recommended this project be built in two phases. Phase 1 would be from Downtown Phoenix to the State Capitol and be completed in 2023 and Phase 2 would extend out to 79th Avenue and be completed in 2030. The Environmental Assessment phase in compliance with the National Environmental Policy Act is anticipated to be complete in late 2017. Concurrent with the environmental analysis, Valley Metro Rail will generate detailed engineering designs of the selected alignment and station layouts.

Capitol / I-10 West Extension Phase I & Phase II Alignment

49

Capitol / I-10 West Extension Phase I Sources and Uses of Funds: The total capital cost of the Capitol/I-10 West Extension Phase I project is budgeted to be approximately $174.8 million.

- - - - - - ($,000) - - - -

Capitol/I-10 West Ext. Phase I Pre-FY18 FY18 FY19 FY20 FY21 FY22 Post-FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation -$ -$ -$ 13,465$ 6,911$ -$ -$ 20,376$ Project Costs - - 9,790 8,348 23,037 41,288 47,204 129,667 Vehicle Procurement - - 4,731 7,885 7,052 5,086 - 24,754

Total Capital Costs -$ -$ 14,521$ 29,698$ 37,000$ 46,374$ 47,204$ 174,797$

CAPITAL REVENUESCMAQ -$ -$ 7,832$ 6,678$ 18,430$ 33,030$ 37,763$ 103,733$

Subtotal Federal - - 7,832 6,678 18,430 33,030 37,763 103,733

PTF Revenue - - 6,689 23,020 18,570 13,344 9,441 71,064 Subtotal Local - - 6,689 23,020 18,570 13,344 9,441 71,064

Total Capital Revenue -$ -$ 14,521$ 29,698$ 37,000$ 46,374$ 47,204$ 174,797$

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West Phoenix / Central Glendale - West Phoenix/Central Glendale high capacity transit corridor is currently programmed as a 5.0-mile corridor connecting the existing 19th Ave LRT extension serving West Phoenix and Downtown Glendale. Valley Metro initiated a transit corridor study in 2013 to identify high capacity transit options in partnership with the cities of Phoenix and Glendale. After completing three levels of technical analysis and extensive public outreach, staff is considering up to a 7.0-mile leading alternative connecting 19th Avenue and Camelback LRT station through Camelback Road, north along 43rd Avenue and west along Glendale Ave and Glenn Drive. Additional technical analysis and community outreach will be conducted in FY17 and FY18 with a proposed recommendation taken for city council actions and Valley Metro Rail Board action in late 2017/early 2018. The 2018 TLCP will be updated to reflect the revised alignment following Board action.

West Phoenix / Central Glendale Alignment

West Phoenix/Central Glendale Source and Uses of Funds: The estimated capital cost of the project is budgeted to be approximately $837.3 million.

- - - - - ($,000) - - - -

West Phoenix/Central Glendale Pre-FY18 FY18 FY19 FY20 FY21 FY22 Post-FY22 TOTALCAPITAL COSTS

NPR Utilities Relocation -$ -$ -$ -$ 23,800$ 30,600$ 6,289$ 60,689$ Project Costs - - - 22,703 105,404 116,900 531,605 776,612

Total Capital Costs -$ -$ -$ 22,703$ 129,204$ 147,500$ 537,894$ 837,301$

CAPITAL REVENUES FTA Section 5309 -$ -$ -$ 11,352$ 52,702$ 58,450$ 265,803$ 388,307$ CMAQ - - - 3,178 14,757 16,366 74,425 108,726 Subtotal Federal - - - 14,530 67,459 74,816 340,228 497,033

Phoenix - - - 1,996 15,926 18,840 48,488 85,251 Glendale - - - 4,656 37,162 43,961 113,139 198,918

PTF Revenue - - - 1,521 8,657 9,883 36,039 56,099

Subtotal Local - - - 8,173 61,745 72,684 197,666 340,268

Total Capital Revenue -$ -$ -$ 22,703$ 129,204$ 147,500$ 537,894$ 837,301$

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Systemwide Improvements -- Systemwide Improvements are incorporated in the Regional Transportation Plan in order to provide funding for new system components as well as for the capital overhaul programs necessary to maintain the system in a state of good repair. During FY18 VMR perform LRV component overhauls, make improvements for station lighting and railing, security camera component upgrades, ticket vending machine upgrades, and other activities. During FY18 and continuing into FY19, progress payments will be made on the 8 light rail vehicles and major light rail vehicle components such as the pantographs, HVAC, gears, traction motors, couplers, and motor and center trucks will be scheduled for overhaul. Systemwide Improvements Sources and Uses of Funds: The total capital cost of the Systemwide Improvements plan through Fiscal Year 2022 is budgeted to be approximately $63.4 million.

- - - - - - ($,000) - - - -

Systemwide Improvements FY18 FY19 FY20 FY21 FY22 TOTALCAPITAL COSTS

All Other 8,653$ 2,973$ 2,261$ 1,840$ 340$ 16,066$ LRV Capital PM 3,651 3,625 2,114 1,681 2,227 13,299

Vehicle Procurement 16,000 18,000 - - - 34,000

Total Capital Costs 28,304$ 24,598$ 4,375$ 3,521$ 2,567$ 63,365$

CAPITAL REVENUESFederal 5337 SOGR 1,311$ 2,900$ 1,691$ 1,345$ 1,781$ 9,030$ Fed MOD Grant 501 - - - - 501

CMAQ 13,200 14,850 - - - 28,050 Subtotal Federal 15,012 17,750 1,691 1,345 1,781 37,581

PTF Revenue 13,292 6,848 2,684 2,176 786 25,784 Subtotal Local 13,292 6,848 2,684 2,176 786 25,784

Total Capital Revenue 28,304$ 24,598$ 4,375$ 3,521$ 2,567$ 63,365$

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Valley Metro FY18 Staffing Plan Staffing levels are planned to optimize the appropriate relationship of internal staff versus contractor labor. Internal staffing provides a lower cost solution so long as project activities require full-time effort throughout the lowest period of design and construction project cycles. Following is the level of effort stated in Full-Time Equivalent employees (FTE) relating to the projects schedule listed on page 37. Authorization of positions by the VMR Board is executed by adoption of the Annual Budget.

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Pay Grade Position Title RPTA VMR

Total FTE

I Cleaner 22,824$ - 34,237$ 0.00 3.00 3.00

III Administrative Assistant I 28,179$ - 42,268$ 0.50 0.50 1.00Customer Service Representative 45.00 0.00 45.00Document Control Clerk 0.10 0.90 1.00LRV Yard Operator 0.00 1.00 1.00Stockroom Clerk 0.00 2.00 2.00Transit Distribution and Signage Assistant 0.50 0.50 1.00

IV Customer Service Application Technician 31,310$ - 46,965$ 1.00 0.00 1.00Lead Document Control Clerk 0.10 0.90 1.00LRV Inspector 0.00 13.00 13.00Materials Handler 0.00 1.00 1.00

V Accounting Technician 34,441$ - 51,661$ 3.20 0.80 4.00Administrative Assistant II 5.50 7.50 13.00Lead Customer Service Representative 6.00 0.00 6.00LRV Lead Inspector/Cleaner 0.00 1.00 1.00

VI Contracts Specialist 37,884$ - 56,827$ 0.50 0.50 1.00Human Resources Technician 2.00 0.00 2.00LRV Maintenance Technician I 0.00 17.00 17.00Project Assistant 1.37 1.63 3.00Track Maintainer 0.00 7.00 7.00

VII Accountant I 41,673$ - 62,510$ 3.50 0.50 4.00Administrative Assistant III 0.70 1.30 2.00Eligibility Specialist 1.00 0.00 1.00Internal Audit Specialist 0.50 0.50 1.00IT Administrative Specialist 0.50 0.50 1.00LRV Maintenance Technician II 0.00 12.00 12.00Paralegal 0.50 0.50 1.00Planner I 1.00 2.00 3.00Program Representative 3.25 0.75 4.00Signal and Communications Systems Maintainer 0.00 9.00 9.00Utility Relocation Specialist 0.05 0.95 1.00Vehicle Parts Coordinator 0.00 1.00 1.00

VIII Art Specialist 45,841$ - 68,762$ 0.00 1.00 1.00Construction Inspector 0.00 1.00 1.00Engineering Technician 0.05 0.95 1.00Executive Administrative Coordinator 1.00 1.00 2.00Facilities Maintenance Coordinator 1.40 0.60 2.00Graphics Designer 2.10 0.90 3.00LRV Lead Maintenance Technician 0.00 3.00 3.00Signal and Communications Systems Technician 0.00 8.00 8.00Traction Power Systems Technician 0.00 15.00 15.00

Valley MetroRegional Public Transportation AuthorityFY18 Adopted FTE Count by Pay Grades and Ranges

Adopted Pay Range

FTE Effort

54


Total FTE

IX Accountant II 50,425$ - 75,637$ 3.50 1.50 5.00Budget Analyst 1.00 1.00 2.00Contracts Administrator 1.40 1.60 3.00Customer Service Supervisor 4.00 0.00 4.00Data Analyst 1.00 0.00 1.00GIS Coordinator 0.75 0.25 1.00Human Resources Generalist 1.00 0.00 1.00LRV Systems and Equipment Specialist 0.00 1.00 1.00Management Analyst 1.00 0.00 1.00Office and Business Services Administrator 0.50 0.50 1.00Planner II 0.60 2.40 3.00Program Coordinator 13.50 11.50 25.00Public Information Specialist 1.05 0.95 2.00Service Analyst II 1.45 0.55 2.00Transit Bus Safety Security Coordinator 1.00 0.00 1.00Transit Safety Specialist 0.25 0.75 1.00Transit Security Coordinator 0.20 0.80 1.00Web Developer 2.00 0.00 2.00

X Bus and Paratransit Fleet/Facilities Supervisor 55,468$ - 83,201$ 2.00 0.00 2.00Civil Engineer 0.00 1.00 1.00Database Administrator 0.40 0.60 1.00Lead Graphic Designer 0.70 0.30 1.00LRV Maintenance Supervisor 0.00 3.00 3.00Network Administrator 0.40 0.60 1.00Program Control Lead 0.00 1.00 1.00Program Control Specialist 0.00 2.00 2.00Program Supervisor 1.00 0.00 1.00Senior Contracts Administrator 1.10 2.90 4.00Server Administrator 0.40 0.60 1.00Supervisor, Maintenance of Way 0.05 2.95 3.00VMware Storage Administrator 0.40 0.60 1.00

XI Deputy Manager, Community Relations 61,014$ - 91,521$ 0.30 1.70 2.00Employee Relations Administrator 1.00 0.00 1.00Fixed Route Operations Administrator 1.00 0.00 1.00Human Resources Administrator 1.00 0.00 1.00IT Project Manager 0.40 0.60 1.00Light Rail Technical Trainer 0.00 1.00 1.00Project Manager 0.25 0.75 1.00Public Arts Administrator 0.05 0.95 1.00Quality Assurance Administrator 0.10 0.90 1.00SCADA System Administrator 0.00 1.00 1.00Senior Management Analyst 0.75 1.25 2.00Senior Project Certification Coordinator 0.00 1.00 1.00Senior Project Compliance Coordinator 0.00 1.00 1.00Training & Development Administrator 1.00 0.00 1.00


Adopted Pay Range

FTE Effort

55


Total FTE

XII Architect / Urban Designer 67,115$ - 100,673$ 0.00 1.00 1.00Assistant Manager, LRT System 0.00 1.00 1.00Assistant Manager, Rail Operations 0.00 1.00 1.00Assistant Superintendent LRV Maintenance 0.00 2.00 2.00HR Program Manager 1.00 0.00 1.00Manager, Administrative Support Services and Project Management 0.50 0.50 1.00Manager, Budget and Operations Financial Controls 0.50 0.50 1.00Manager, Communications 0.40 0.60 1.00Manager, Community Relations 0.25 0.75 1.00Manager, Customer Service 1.00 0.00 1.00Manager, Environmental Program 0.10 0.90 1.00Manager, Facilities Maintenance 0.10 0.90 1.00Manager, General Accounting 0.65 0.35 1.00Manager, Geographic Services 0.75 0.25 1.00Manager, Human Resources Support Services 1.00 0.00 1.00Manager, Marketing 0.50 0.50 1.00Manager, Service Planning 0.80 0.20 1.00Manager, Transportation Demand Management 1.00 0.00 1.00Manager, Utility 0.00 1.00 1.00Office Engineer 0.20 0.80 1.00Security Engineer 0.45 0.55 1.00Senior Application Developer 0.40 0.60 1.00

XIII Maintenance Engineer 73,827$ - 110,740$ 0.00 1.00 1.00Manager, Accessible Transit Services 0.90 0.10 1.00Manager, Bus Services Delivery 1.00 0.00 1.00Manager, Financial Reporting 0.50 0.50 1.00Manager, LRT Systems 0.05 0.95 1.00Manager, Operations Support and Analysis 0.30 0.70 1.00Manager, Transit Safety 0.00 1.00 1.00Manager, Transit Security 0.20 0.80 1.00Quality Assurance Manager 0.00 1.00 1.00Senior Project Engineer 0.00 1.00 1.00Systems Engineer 0.05 0.95 1.00

XIV Chief Maintenance Engineer 83,632$ - 125,448$ 0.00 1.00 1.00Controller 1.00 0.00 1.00Government Relations Officer 0.50 0.50 1.00Manager, Business Performance Improvement 0.50 0.50 1.00Manager, Capital Planning 0.15 0.85 1.00Manager, Contracts and Procurement 0.40 0.60 1.00Manager, Information Technology 0.50 0.50 1.00Manager, Internal Audit 0.50 0.50 1.00Rail Systems Engineering Manager 0.00 1.00 1.00Resident Engineer 0.30 1.70 2.00Senior Database Architect 0.40 0.60 1.00Senior Project Manager 0.00 1.00 1.00Superintendent LRV Maintenance 0.00 1.00 1.00


Adopted Pay Range

FTE Effort

56


Total FTE

XV Chief Procurement Officer 93,182$ - 139,773$ 0.40 0.60 1.00Manager, Construction and Utilities 0.04 0.96 1.00Manager, Design 0.02 0.98 1.00Manager, Rail Operations 0.00 1.00 1.00T2050 Program Manager 0.00 1.00 1.00

XVI Deputy Director, Capital Program 102,206$ - 153,310$ 0.00 1.00 1.00Deputy Director, Service Planning and Accessible Transit 0.85 0.15 1.00Director, Communication and Marketing 0.50 0.50 1.00Director, Human Resources 1.00 0.00 1.00Director, Safety, Security and Quality Assurance 0.20 0.80 1.00

XVII Chief Financial Officer 114,880$ - 172,320$ 0.50 0.50 1.00Chief Operating Officer 0.50 0.50 1.00Chief Operations Officer 0.30 0.70 1.00Chief Technology Officer 0.50 0.50 1.00Director, Capital and Service Development 0.20 0.80 1.00

GC General Counsel 119,591$ - 179,387$ 0.50 0.50 1.00

ED Chief Executive Officer Salary Negotiated 0.50 0.50 1.00

FY18 FTEs 150.68 209.32 360.00

FY17 FYEs 137.90 187.10 325.00

Change 12.78 22.22 35.00


Adopted Pay Range

FTE Effort

57

Valley Metro

Regional Public Transportation AuthorityFY18 Summary of New Positions

Department Position In Lieu of

Consultant/Contract BLANK

Division Position Current New Term

CEO Executive Office Manager, Business Processes Developer

CEO Executive Office Project Assistant X

Communication & Marketing Deputy Manager, Community Relations (Construction) X X

Communication & Marketing Deputy Manager, Community Relations (Planning) X X

Communication & Marketing Program Coordinator (Marketing) X

Communication & Marketing Program Coordinator (Community Relations) X X



Communication & Marketing Program Coordinator (Business Assistance) X X

Communication & Marketing Lead Graphic Designer X

Capital and Service Development Program Controls Lead X X

Capital and Service Development Senior Project Manager ‐ Design X X

Capital and Service Development Civil Engineer X X

Capital and Service Development Construction Inspector X X

Capital and Service Development Office Engineer X X

Capital and Service Development Art Specialist X XCapital and Service Development Rail Systems Engineering Manager X

Capital and Service Development Planner II X

Capital and Service Development Planner I X

Capital and Service Development GIS Coordinator

Capital and Service Development Eligibil ity Specialist

Finance Accountant I X

Finance Accountant II

Human Resources HR Program Manager

Human Resources Training & Development Administrator

Information Technology Manager, Information Technology X

Information Technology IT Administrative Specialist X

Operations and Maintenance Administrative Assistant II

Operations and Maintenance Assistant Manager, Rail Operations

Operations and Maintenance Assistant Superintendent LRV Maintenance

Operations and Maintenance Assistant Manager, LRT System

Operations and Maintenance Systems Engineer

Safety and Security Senior Project Certification Coordinator X XSafety and Security Transit Bus Safety Security Coordinator

Safety and Security Project Assistant X

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Appendix A – The Budget Process VMR’s continuing goal is to provide the highest quality services to our member communities in the most cost effective manner. The VMR budget process is a key piece of the strategy to achieve these results in a coordinated manner and to make fiscally responsible decisions that will ultimately produce a premier transit system in Maricopa County. VMR’s budget process serves two principal purposes. Within the Corporation, development of the budget provides a forum for joint planning of objectives and tasks, with managerial and board review of programs. It sets the expectations for performance in the coming year(s). For the Corporation’s Members and partner agencies, the budget reports on the status of projects and services, detailing the agency’s operational objectives, capital improvements, and funding plans. The annual budget is prepared on an accrual basis and adopted by the Board of Directors each fiscal year. The legal level of budgetary control is the total annual appropriated budget. With respect to Capital Budgets, project contingency accounting is used to control expenditures within available project funding limits. With respect to Operating Budgets, encumbrance accounting is not used and all appropriations lapse at the end of the year. Prior to final adoption, a proposed budget is presented to the Board of Directors for review and public comment is received. Final adoption of the budget must be on or before June 30 of each year. VMR also develops a Five-Year Capital Program and Operating Forecast as part of the annual budget process. The five-year budget focuses on the capital improvements that are planned to occur within the planning horizon, and includes:

projected costs of LRT capital expenses, projected amounts to be paid by each Member to VMR, projected amounts to be paid directly for LRT expenses by each Member

(for example, for acquiring rights-of-way), and projected revenues to be received from federal funds or other funding sources.

The internal process is a collaborative and iterative one, with the agency’s senior management providing strategic direction and critical review, managers and project managers preparing resource proposals, and financial staff (Including the Financial Working Group) providing feedback and technical support for the process. A review by the Regional Transit Advisory Group and Rail Management Committee will precede drafting of the proposed budget. Once the proposed annual budget and five-year capital plan have been published, the VMR Board provides final review and adoption.

59

Appendix B – Glossary of Terms and Acronyms

TERM / ACRONYM DEFINITION 5309 A reference to FTA New Starts Program, Title 49 U.S.C., Section 5309

providing funding for the design and construction of transit systems including the CP/EV LRT VMR system.

5339 Section 5339 allows FTA to make grants and agreements, under criteria established by the Secretary, to States, authorities of the States, metropolitan planning organizations, and local governmental authorities to develop alternatives analyses as defined by section 5309(a)(1). Eligible study sponsors must be able to incorporate the results of this work into an ongoing alternatives analysis study or must commit to initiate an alternatives analysis study within 12 months of the grant approval.

ADOT Arizona Department of Transportation

CADD Computer aided design and drafting

CMAQ Federal funding program intended for Congestion Mitigation and Air Quality improvement.

CME Central Mesa Extension-additional 3.1 miles

CNPA Concurrent Non-Project Activities

CP/EV LRT Central Phoenix/East Valley Light Rail Transit - the initial 20 mile project segment of light rail in Maricopa County - with scope definition provided as part of the Full Funding Grant Agreement dated January 24, 2005.

DEIS Draft Environmental Impact Statement - Submitted in advance of application for the FFGA, the DEIS identifies impacts anticipated by the prospective construction and operation of an LRT system including impacts on traffic, noise, air quality, historic and archeological sites, as well as impacts to properties along the alignment.

FEIS Final Environmental Impact Statement- Submitted in advance of application for the FFGA, the DEIS identifies impacts anticipated by the prospective construction and operation of an LRT system including impacts on traffic, noise, air quality, historic and archeological sites, as well as impacts to properties along the alignment.

FFGA Full Funding Grant Agreement - Inter-Governmental Agreement between the FTA and the Grantee responsible for the design and construction of a transit project. In the case of the CP/EV project, the City of Phoenix is the Grantee and VMR is acting as a sub-recipient.

FTA Federal Transit Administration

GRE Gilbert Road Extension – additional 1.9 miles

Headways The time interval between arriving trains or buses along a transit route. (Service Frequency)

60

Appendix B – Glossary of Terms and Acronyms (Cont’d)

TERM / ACRONYM DEFINITION HCT High Capacity Transit – includes heavy rail, Light Rail Transit, Bus Rapid

Transit modes of urban transportation

LPA The Locally Preferred Alternative alignment for a transit route among a set of options which have been analyzed.

LRT Light Rail Transit

LRV Light Rail Vehicle

MAG Maricopa Association of Governments

Member Cities VMR equity members, currently Phoenix, Tempe, Mesa and Glendale

NWX Northwest Extension – additional 3.2 miles O&M Operations and Maintenance activities required for rail passenger service.

OMC Operations and Maintenance Center

Proposition 400 Legislative initiative to create a Public Transportation Fund passed into Arizona law in November 2004 providing roadway and public transit improvements in accordance with the Regional Transportation Plan.

PTF Public Transportation Fund. See Proposition 400.

ROW Right-of-Way- real property required for the LRT alignment

RPTA Regional Public Transportation Authority the designated agency to receive and distribute public transit improvement funding under Proposition 400

RTP Regional Transportation Plan - for Maricopa County, a comprehensive, performance-based, multi-modal and coordinated regional plan providing a blueprint for future regional transportation investments.

TIP Transportation Improvement Program

TOD Transit Oriented Development - real property development typically incorporating residential and commercial uses into the areas adjacent to a transit route.

TPAN Transportation Project Advancement Notes.

TSC Tempe Street Car Extension – additional 3.0 miles

VMR Valley Metro Rail, Inc.

VMT Vehicle Miles of Travel for each LRT vehicle operated

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