1. MARTA Fiscal Challenge: FY2009 and Beyond January 2009

2. Realizing the Vision… Greater investment in transit is necessary to “the cultural, social, and economic well-being of the people in the metropolitan area and the development of the educational, commercial, and industrial resources.” --- Sec. 3, The MARTA Act of 1965

3. MARTA at a Glance 9th largest transit system in the nation 36 years of experience (transit planning, design, construction and operations) Service area: Fulton and DeKalb Counties; the City of Atlanta; Clayton County operator 500,000 + daily boardings 5,118 employees FY09 Adopted Budget – Operating- $395.46M – Capital- $535.34M

4. MARTA at a Glance RAIL SYSTEM 38 stations;48 miles of track (double track) 3 rail yards (Avondale, South and Armour) 338 rail cars Automatic Train Control and SCADA System Traction Power Substations BUS SYSTEM 609 large bus, 15 small bus 131 bus routes 3 bus garages (Laredo, Perry and Hamilton) 1 heavy maintenance facility (Brownsmill) MOBILTY (Paratransit) 175 L-Vans 1 garage (Brady Facility) POLICE PRECINCTS 5 precincts (Lindbergh, College Park, Kensington, Five Points, Dunwoody)

5. Fulton & DeKalb County Residents87% Work trips*54% School trips10% No alternative transportation 46% Male 51% 16-34 years of age 53% High school diploma or some college63% Household income less than $30,00063% *C-Tran work trips – 61% Source: 2008 Quality of Service Survey Who Do We Serve?

6. MARTA Today Ridership - Up Fleet Reliability - Up On-time Performance - Up Safety Performance - Up Security - Enhanced Customer Satisfaction - Up Financial Performance - Better Than FY2008 Budget

7. Transit Funding Needs

8. MARTA Financial Overview WHERE DOES IT COME FROM? FY09 Adopted Operating Revenues ($351.72M)

9. WHERE DOES IT GO? FY09 Adopted Net Operating Expenditures ($395.46M) MARTA Financial Overview

10. FY09 Budget – Revenue Allocation ($Million) Adopted

11. MARTA FY09 Capital Program WHERE DOES IT COME FROM? Capital Revenue by Source FY09 Adopted Capital Budget ($552.57M)

12. WHERE DOES IT GO? Capital Expenditures by Type FY09 Adopted Capital Budget ($532.22M) MARTA FY09 Capital Program

13. MARTA Financial Overview Original Budget Projection (as of June 2007 – FY07 Un-audited)

14. Revised Sales Tax Forecast - A Source: Georgia State University Economic Forecasting Center (GSUEFC)

15. Operating Budget Projections (FY08 – FY11 Revised – “AS IS”) * ($Million) FY09/FY10 Reduction Target * Georgia State University Economic Forecasting Center Report (September 2008)

16. Revised Sales Tax Forecast - B Source: Georgia State University Economic Forecasting Center (GSUEFC)

17. Operating Budget Projections (FY08 – FY11 Revised – “AS IS”) * ($Million) * Georgia State University Economic Forecasting Center Report (December 2008)

18. Major Challenges: FY2009 and Beyond Severe Economic Downturn –Local Sales Tax Receipts Down (52% of MARTA Operating Revenues) Inadequate State, Regional/Local Transit Funding Federal Transportation Funds Depleted –SAFETEA-LU expires 9/30/2009 Regional Transit Expansion Plan Unfunded

19. Transit Deficit Reduction Strategies Internal Productivity and Cost Containment Internal Productivity and Cost Containment Fare Changes Reduce Transit Service Levels Reduce Transit Service Levels New Revenue Sources

20. Average Cost Per Trip Average Cost Farebox Recovery (%) Subsidy (%) Average Cost Per Trip $ 2.5327.372.7 Bus 2.6927.372.7 Rail 2.2129.471.6 Paratransit 39.993.596.5

21. Potential Deficit Reduction Impacts System-wide Transit Fare Increase Increase Parking Fees Severe Transit Service Cuts Employee Layoffs/Furloughs Jeopardize Future Federal Transit Funding ─ Ability to operate and maintain existing services ─ Adequate project contingency and reserves ─ Demonstrate “technical capacity”

22. MARTA Fare Change History DateBase Fare Passes Paratransit Fare MonthlyWeekly May 1980$0.25$10 $0.50 July 1980 $0.50$17$4 $1.00 July 1981$0.60$21$5 $1.20 July 1985$0.60$25$6 $1.20 June 1987$0.75$28$7* $1.50 July 1988$0.85$32$8* $1.70 July 1990$1.00$35$9* $2.00 June 1992$1.25$43$11* $2.50 July 1995$1.50$45$12* $3.00 March 1997$1.50$45$12* $3.00 Jan 2001$1.75$52.50$13* $3.50 Today$1.75$52.50$13* $3.50 * Paratransit was outsourced to DAVE Transportation from 1987 until 1997

23. Transit Service and Price Changes Note: Pass prices based on the pass multiple “X” (i.e., X times the base fare). Transit Fares MARTA is considering increasing it’s base fare by 25¢ from $1.75 to $2.00 per trip. The fare change will also result in increases to the prices of multi-trip and time-based passes purchased on Breeze Cards and Breeze Tickets. Three fare change scenarios – A, B, and C – are being considered.

24. Transit Service and Price Changes Transit Fares - Scenario A Base fare increases by 25¢ from $1.75 to $2.00 per trip. 7-Day/Calendar Weekly Pass increases from $13.00 to $15.00. 30-Day/Calendar Monthly Pass increases from $52.50 to $60.00. Estimated annual net revenue generated by the fare change is approximately $6.4 million. Estimated loss of approximately 12.7 million annual passenger boardings*. *Monetary loss based on predicted decrease in ridership due to fare increase and historical forecasted indicators such as unemployment, inflation and service levels.

25. Transit Service and Price Changes Transit Fares - Scenario B Base fare increases by 25¢ from $1.75 to $2.00 per trip. 7-Day/Calendar Weekly Pass increases from $13.00 to $15.00. 30-Day/Calendar Monthly Pass increases from $52.50 to $64.00. Estimated annual net revenue generated by the fare change is approximately $7.1 million. Estimated loss of approximately 14.4 million annual passenger boardings*. *Monetary loss based on predicted decrease in ridership due to fare increase and historical forecasted indicators such as unemployment, inflation and service levels.

26. Transit Service and Price Changes Transit Fares - Scenario C Base fare increases by 25¢ from $1.75 to $2.00 per trip. 7-Day/Calendar Weekly Pass increases from $13.00 to $17.00. 30-Day/Calendar Monthly Pass increases from $52.50 to $68.00. Estimated annual net revenue generated by the fare change is approximately $9.4 million. Estimated loss of approximately 20.9 million annual passenger boardings*. *Monetary loss based on predicted decrease in ridership due to fare increase and historical forecasted indicators such as unemployment, inflation and service levels.

27. Transit Service and Price Changes Parking Fees - Scenario A Daily parking rates increase from $1.00 to $5.00, Monday through Sunday (7 days per week). Long-term parking rates increase from $1.00 to $5.00, Monday through Sunday, (7 days per week). Estimated annual net revenue generated @ a 50% occupancy level and a parking fee of $1.00 is approximately $2 million.

28. Transit Service and Price Changes Parking Fees – Scenario B Daily parking rates increase from $1.00 to $5.00, Monday through Friday (5 days per week). Long-term parking rates increase to $4.00 for Inner Stations and $7.00 for End of Line Stations, Monday through Sunday (7 days per week). Estimated annual net revenue generated @ a 50% occupancy level and a parking fee of $1.00 is approximately $2.2 million.

29. Transit Service and Price Changes Parking Fees – Scenario C Daily parking rates increase from $1.00 to $5.00, Monday through Sunday (7 days per week). Long-term parking rates increase to $4.00 for Inner Stations and $7.00 for End of Line Stations, Monday through Sunday (7 days per week). Estimated annual net revenue generated @ a 50% occupancy level and a parking fee of $1.00 is approximately $3.4 million.

30. Transit Service and Price Changes Parking Fees Currently, daily parking is free and long-term parking costs between $4.00 and $7.00 per day at MARTA rail stations. MARTA is considering changing its parking fee structure and increasing the rates charged per day. Three scenarios – A, B, and C – are being considered. Within each scenario, the daily parking fee options being considered range from $1.00 to $5.00 per day.

31. Unproductive Service Preservation of service on all identified “Lifeline” routes. Routes can be modified to maintain minimum service. Adjustment to hours of service based on ridership Low-performing segments of routes (maintain service in critical areas. Duplicative routes and segments Reduce weekday service to peak-only where off-peak service productivity is low. Saturday and/or Sunday service on routes with low performance when compared to similar services. Transit Service and Price Changes Service Considerations

32. MARTA 2009 Legislative Agenda The original intent of this provision was to ensure that capital funds would be available to build the system at the outset. Additionally, at the time this was enacted public transit organizations received significant annual federal operating assistance, which is no longer the case for large and mid-size transit systems like MARTA. Eliminate 50% capital and 50% operations sales tax split requirement Permit interest income from capital reserves to be used for operations Amend “Zero Tolerance” provision (permit food and drink in MARTA rail and intermodal facilities) - - not on board trains or buses MARTA has been in the past authorized to use interest earnings on its capital reserve accounts for the Authority’s operating expenses, with the General Assembly authorizing such use in 1989, 1991, 1994, 1996, 2000, 2003 and 2006. The 2006 legislation allowed such use only through June 30, 2008.

33. Major Opportunities: FY2009 and Beyond Transportation Infrastructure Investment Key to Economic Stimulus Linkage of Transportation, Environmental and Energy Policies ─Jobs Creation and Economic Competitiveness ─Environmental Sustainability ─Energy Independence and Homeland Security ─Quality of Life (Healthy Communities and Lifestyles) The Public “Gets It”! –Transit Ridership Growth –State, Regional & Local Polls –National Transit Referenda The State of Georgia and Atlanta Region Must Move Now!

34. Timeframe Event(s) December 2008– MARTA implements cost containment measures; Board approves State Legislative “Financial Relief” Package; directs FY 2010 Budget Deficit Reduction (i.e., possible fare increases, parking changes, service cuts) as last resort – Stakeholder Organization Briefing – Media Briefing January 2009– 1 st Community Forum/Listening Sessions; Employee Meeting; Expanded EDAAC Meeting – MARTA Community Survey – State Legislative Session Commences (1/12/09) – MARTA Legislative requests; various transportation funding bills (“Get Georgia Moving” Coalition) January 29, 2009– MARTA Board Business Management Committee (FY 2010 Budget Development Work Plan) February 11, 2009– Annual “State of MARTA” General Assembly Presentation February - March 2009– MARTA staff attend local community/stakeholder meetings Decision-Making Timeline

35. February 23, 2009– MARTA Board Business Management Committee (FY 2010 Budget Development Update) March 30, 2009– MARTA Board Business Management Committee (FY 2010 Budget Development Update) March - April 2009– 2 nd Round Community Meetings (State Legislation Status; Results of Community Meetings & Survey Input; Update Financial Status; ID Preliminary Findings & FY 2010 Budget Recommendations April 6, 2009– MARTA Staff Presents FY 2010 Budget Proposal to MARTA Board April 28, 2009– MARTA Board Business Management Committee (FY 2010 Budget Proposed Budget) May 11-12, 2009– MARTA Board Holds FY 2010 Budget Public Hearings May 27, 2009– MARTA Board Business Management Committee (FY 2010 Recommended Budget) June 8, 2009– MARTA Board Adopts FY 2010 Budget Decision-Making Timeline Timeframe Event(s)

36. Contact Us Community Hotline 404-848-5026 or Website www.itsmarta.com

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