DART approves budget, financial plan to fund operations, expansion
Written by jrood
The $1.25-billion FY 2011 budget and updated 20-year financial plan approved by the Dallas Area Rapid Transit (DART) Board of Directors supports the doubling of DART Rail to 90 miles. The FY 2010 budget was $1.6 billion. The decrease is primarily due to a lower capital budget, largely the result of the completion of the Green Line this December.
The budget and financial
plans were approved September 28. There are three components to the budget:
Operating Budget: $422
million
Capital Budget: $707.1
million
Debt Service Budget: $127.4
million
Total FY 2011: $1.25
billion
The heart of the expansion
from 48 miles to 90 miles by 2014 is the December 6 opening of the final 24 miles
of the Green Line light rail. The full 28-mile, $1.8-billion project connects
Southeast Dallas with Downtown, Northwest Dallas, Farmers Branch and
Carrollton. DART also will open the Lake Highlands Station on the Blue Line
between White Rock and LBJ/Skillman stations on December 6.
The budget and financial
plan fund ongoing construction of the Orange Line to Irving (first phase
opening 2012) and a Blue Line extension from Garland to Rowlett (2012).
Other projects in the
Financial Plan include the completion of the Orange Line to DFW Airport and the
Blue Line extension in South Oak Cliff from Ledbetter Station to the UNT Dallas
campus. Completion of these projects is contingent on continued sales tax
growth and contributions from a mix of project cost savings, increased debt
and, if approved, additional federal funds.
At the same time, DART
staff continues the environmental assessment and preliminary engineering for a
second light rail alignment through downtown Dallas. This will help position
the project for possible future federal funds. The adjustment in DART Rail
operating headways from 10 to 15 minutes lessens the need to immediately
construct the alignment. There are also new considerations with the potential
inclusion of new streetcar lines in the Central Business District and to Oak
Cliff. Work on the second alignment will be coordinated with streetcar line
proposals under consideration by the City of Dallas. Staff will be
simultaneously developing a new funding plan to insure the project will be
constructed in the appropriate timeframe.
More than 75 percent of the
agency’s income is from the collection of the one-percent sales tax in each of
the 13 cities served by DART. Anticipated sales tax receipts for fiscal year
2010 are expected to be between $12 and $14 million below the original estimate
of $387.8 million.
In March, DART reported
long-term (for fiscal years 2012 and beyond) projections of lower than expected
sales tax receipts. In addition to requiring adjustments in current service
levels the sales tax projections will also have a significant impact on the
ability of the agency to undertake future expansion projects such as the Orange
Line to DFW, the Blue Line extension to UNT Dallas and the second downtown
alignment. Updated 20-year sales tax projections show DART receiving
approximately $3 billion less in sales tax income than the amount projected as
recently as May 2009. However, all estimates confirm DART will be able to
continue the routine replacement of fleet vehicles and maintain a state of good
repair for its current facilities and those under construction.
The updated 20-year
financial plan includes $4.46 billion in capital project funds for the rail
expansion and other projects such as the planned purchase of new buses and
other items required to maintain the agency’s state of good repair.
In addition to major
revisions to the capital improvement program the agency has also undertaken a
comprehensive review of all operating, construction and administrative
functions. The plan anticipates significant reductions in construction and
administrative expenses by fiscal 2013.
