Yesterday afternoon, the board of directors approved a long-range financial plan that incorporates the forecasts for revenue and expenditures and financing options for Capital Metro for the next seven years. The plan itself is not posted online yet, but here’s an overview.
This landmark plan outlines a strategy to address several funding challenges over the next few years while increasing our savings to a projected $68 million by 2018.
As outlined in Capital Metro’s new strategic plan, we are taking steps to strengthen the financial health of the agency. The long-range financial plan will help Capital Metro meet its financial goals by:
- Maintaining current service in the short-term
- Providing funding for bus fleet replacements
- Helping meet cash reserve targets of Senate Bill 650
- Continuing MetroRapid plans as scheduled
- Planning for federally-required Positive Train Control implementation
- Supporting the labor structure transition
Of significant concern has been ensuring that Capital Metro’s ageing fleet can be replaced on a regular schedule. The long-range plan includes a seven-year strategy that will replace a total of 292 vehicles.
That strategy includes Capital Metro borrowing $20 million to jumpstart the vehicle replacement program in FY2013-14 and to allow the agency to stay on track to meet the Texas Legislature’s cash savings requirements as specified in SB650. Capital Metro expects to save millions in vehicle maintenance costs over the life of the loan.