VIRGINIA RAILWAY EXPRESS
RECOMMENDED BUDGET
FOR FISCAL YEAR 2014
AND
REVISED BUDGET
FOR FISCAL YEAR 2013
DECEMBER 21, 2012
TABLE OF CONTENTS
RECOMMENDED FY 2014 BUDGET
Mission Statement
3
Fiscal Year 2014 Goals
3
Fiscal Year Performance Measures
3
Fiscal Year 2014 Budget Assumptions
4
Local Subsidy Calculation from Oct 2012 Survey
6
Source and Use Statement
7
FY 2014 Budget Worksheet
8
Proposed Capital Improvement Program FY 2014 – FY 2019
10
Six-year Financial Forecast Assumptions
18
Six-year Financial Forecast Worksheet
19
REVISED FY 2013 BUDGET
Revised FY 2013 Budget Assumptions
20
Fiscal Year 2013 Revised Budget Worksheet
23
2
MISSION STATEMENT
The Virginia Railway Express, a joint project of the Northern Virginia
Transportation Commission and the Potomac and Rappahannock Transportation
Commission, will provide safe, cost-effective, accessible, customer-responsive,
reliable rail passenger service as an integral part of a balanced, intermodal
regional transportation system.
GOALS FOR FISCAL YEAR 2014

Achieve at least a 50 percent operating ratio (cost recovery).

Operate trains on time at least 92 percent of time.

Achieve at least 20,100 average daily ridership
PERFORMANCE MEASURES FOR FISCAL YEAR 2014
MEASURE
PERFORMANCE MEASURE
TARGET
Safety
Injuries to Passengers
On-Time Performance
Percent On-time Each Month
92%
Average Daily Seat Occupancy
Utilization of Available Seating
90%
Operating Ratio
Ratio of Fare Income to Operating Costs
50%
Ridership Growth
Minimum Growth over Prior Year
2%
3
0
BUDGET ASSUMPTIONS FOR FISCAL YEAR 2014
Major Assumptions in FY 2014 Budget:
1. Subsidy level of $16,428,800; no increase from the FY 2013 subsidy.
2. State funding for operations is projected at below the FY 2013 amount.
The state operating grant is budgeted at 23% below the FY 2013 state
award (a reduction from $9.3M to $7.2M), as FY 2013 contained state
one-time funds. The state capital match is budgeted at 50%.
3. Average daily ridership of 20,100 assumes a 30 revenue train operation
and an overall 32 train schedule.
4. A 4% fare increase is proposed. Fare revenue is budgeted at $36.6M.
5. Keolis contract costs are budgeted at a net increase of $1.0M to reflect a
CPI increase of 2.16% and the lengthening of one Fredericksburg and one
Manassas train from FY 2013.
6. Amtrak costs for mid-day storage and services are increased by $362,000
to reflect current contract provisions and the estimated increase to the
AAR index.
7. Fuel costs continue to be volatile. Projected costs are in the amount of
$5.6M, based on a cost per gallon of $3.50.
8. Restoration of the $9.6M of track access funding for total grants of 83% of
costs.
Sources by Jurisdiction ($ in thousands)
Jurisdiction
Fairfax County
Fredericksburg
Manassas
Manassas Park
Prince William County
Stafford County
Spotsylvania County
Alexandria
Arlington
Total
FY 2013
FY 2014
Net
$ 5,155,355 $ 4,747,685 $ (407,670)
421,616
427,728
6,112
777,205
757,804
(19,401)
526,460
574,709
48,249
5,687,222
5,748,203
60,981
2,347,707
2,529,281
181,574
1,183,444
1,313,600
130,156
133,894
133,894
195,897
195,897
$ 16,428,800 $ 16,428,800 $
-
4
Percent
-7.9%
1.4%
-2.5%
9.2%
1.1%
7.7%
11.0%
0.0%
0.0%
Source and Use of Funds
Fare Increase
Subsidy Increase
$
Number of Trains
Average Daily Ridership
Sources
Fare Revenue
$
Local Subsidy
State Operating Grant
State Capital Grant used for Debt and Other
State Capital Grant used for Capital Programs
Federal/State Capital Funding for Track Access
Federal Capital Grant used for Debt and Other
Federal Capital Grant used for Capital Programs
Other Income
Total Sources
$
Uses
Operating Expenses
$
Debt Service
Federal Capital Program
Operating Reserve and Other
Total Uses
$
4%
32
20,100
36,600,000
16,428,800
7,200,000
4,111,344
1,315,300
11,880,000
6,077,429
8,922,400
456,300
92,991,573
67,404,408
13,664,795
11,153,000
769,369
92,991,573
Six-Year Financial Plan
The final FY 2014 budget recommendation includes a six-year financial plan as
required by the Master Agreement. The six-year financial plan was reviewed with
the CAO Budget Task Force. The VRE capital planning process reflects current
priorities identified by the Operations Board as well as long-term planning
assumptions through 2025 as outlined in the Phase II Strategic Plan, approved
by the Operations Board in May 2004, and the Strategic Plan retreat in July
2011. The CIP is fiscally constrained and the program of projects is based on
reasonably assumed funding only. Parking projects are assumed to be the
responsibility of the jurisdiction, with VRE support and assistance, and are
therefore not funded in the CIP.
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