New slide:  President’s Report October 6, 2010

New slide: Recent Grant Awards
Bus Garage Rehabilitation & Equipment Upgrades Grant. 
New Transit Asset Management System Grant. 
Two pictures show the deteriorated conditions of a bus garage inspection pit and a roof.  A third picture shows a CTA bus parked at the Navy Pier bus terminal.  

New slide:  Competitive Grant Applications
In 2010, CTA has applied for 43 competitive grants and been awarded $53 million thus far. 
Continue to aggressively pursue additional capital funding under competitive grant programs.
A rendering shows how lanes on a street would be designated for bus rapid transit.  A pie chart demonstrates CTA’s Total Capital Need in 2011 to 2015 as $9.4 billion dollars.  $2.6 billion is funded, while $6.8 is unfunded.  

New slide:  Meetings in Washington D.C.
Emphasized importance of investing in CTA infrastructure.
Discussed critical funding needs.
Outlined state of good repair projects. 
One picture shows a train passing through a downtown subway station.  A second picture is of a CTA bus, route 77 Belmont, at a bus stop while customers board it. 

New slide:  Saigon Sisters – Open for Business
The picture shows the interior of the restaurant Saigon Sisters.

New slide:  3rd Quarter 2010 Ridership
133.7 million rides provided from July thru September.
A graphic explains that ridership on the CTA system was down 1.1 million rides (0.8%).  Also shown is that bus ridership was down 3.1 million rides (3.9%), while rail ridership was up 2 million rides (3.8%).

New slide:  3rd Quarter, Change by Time Period
Ridership fairly stable during rush.
Off-peak, particularly weekends, has suffered from economy and service cuts.
A graphic explains that weekday rush ridership was down 0.1%.  Bus weekday rush ridership was down 1.9%, while rail was up 2.4%.  The same graphic explains that weekday off-peak ridership was down 0.5%.  Bus weekday off-peak ridership was down 3.6%, while rail was up 4.6%.  Lastly, the graphic shows weekend and holiday ridership was down 3%.  Bus weekend and holiday ridership was down 8%, while rail was up 4.8%.

New slide:  Month-by-Month Ridership, 2008-10
Year-to-Date ridership is down 0.6% compared to 2009.
A graphic shows January through September ridership compared for 2008, 2009, and 2010.  

New slide:  Disciplined Management Again in 2011
A picture of a CTA bus, route 28 Stony Island Express, traveling downtown is shown.


New slide:  2011 Expenses
Labor costs make up 70% of CTA’s budget.
Labor controls and fuel / power hedging help offset increased expenses. 
$67M increase versus 2010 budget.
Expense Drivers.
ATU – Bus/Rail Union (3.5% Increase) up $12 million.
Prevailing Wage – Trade Coalition up $12 million.
Healthcare/Pension and Other Benefits up $74 million.
POB Debt Service Increase up $30 million.
Security Services and Other Contracts up $2 million.
Subtotal is $130 million.
Savings.
Fuel down $9 million.
Power down $8 million.
Materials down $5 million.
Reduction to Injuries and Damages down $15 million.
Position Eliminations down $7 million.
Labor Controls (Turnover & Overtime) down $19 million.
Subtotal is $63 million.

New slide:  Disciplined & Strategic Management
Disciplined and effective management will continue as economy remains sluggish.
Identified millions in efficiencies without adversely impacting current service levels.
A graphic lists the multiple efficiencies that CTA has identified for the 2011 budget totaling $53.6 million.  They are as follows:  Position Elimination $7.2 million, Overtime Reduction $5.5 million, Furlough and Unpaid Holidays $9.7million, Hiring Control $13.7 million, Fuel Hedging $9.4 million, and Power Hedging $8.1 million.

New slide:  Underperforming Public Funding
Public funding in 2011 is $92.5 million less than in 2008 and $257.9 million less than projected in 2008 to 2009. 
Bar graph shows projected and actual public funding gaps for 2008, 2009, estimated 2010, and estimated.  

New slide:  Use of Capital Funds
$113.2M in capital funding for preventive maintenance used to balance 2011operating budget. 
Line graph shows capital transfers to operating budget.  In the 2009 budget, it was $128.9 million.  In 2010, it was $90 million.  For 2011 it is $113.2 million.

New slide:  2011 Proposed Operating Budget 
Slide shows a balanced 2011 operating budget of $1.3 billion.  
Line items for expenses are as follows (in thousands):
Labor $931,179
Material $72,762
Fuel $54,487
Power $30,070
Injuries and Damages $15,000
Security Services $34,109
Other Expenses $200,149
Total Expenses $1,337,756
Line items for revenue are as follows (in thousands):
Farebox $523,660
Non-Farebox $60,591
Public Funding $529,305
State Fare Agreement $83,000
Reduced Fare Subsidy $28,000
Capital Transfer $113,200
Total Revenues $1,337,756

New slide:  Looking Forward
Five pictures appear.  Clockwise, the view from a camera on a rail car, a picture of a 5000 series rail car, a picture of two security cameras mounted at street level at the Conservatory/Central Park Drive Green Line station, a graphic of Train Tracker, and a picture of a person’s hand using a credit card to pay their fare at a CTA turnstile.  

New slide:  State Capital Funding
State of Illinois has committed $1.3 billion to CTA since 2009.
First payment of $253.7M expected by end of 2010.
Mid-Life Bus Overhaul $15.3 million.
Rail Car Overhaul $60.8 million.
Facility Rehabilitation Program $1.9 million.
Traction Power Phase I $57 million.
Rehabilitation of Rail Stations – Systemwide	 $16.7 million.
Implement Security & Communication $12 million.
Security Cameras – Stations & Yards	 $14.8 million.
Track and Structural Renewal $12.2 million.
Loop Ties & Track $45 million.
Viaducts & Retaining Walls – Purple Line $18 million.
Total $253.7 million


New slide:  Public Transportation is Vital to the Region
A picture shows a train along the elevated tracks in downtown Chicago.  

New slide:  President’s Report October 6, 2010