1 Letter from the President
Dear CTA Customers:
For over 60 years, the CTA has provided the critical mass transit arteries to carry people throughout Chicago and 40 suburban communities. Whether moving people to work or play, our trains and buses facilitate easy interaction between the suburbs, city neighborhoods, and downtown.
With more than 1.6 million rides on CTA buses and trains on the average weekday, including 250,000 throughout the downtown area, we know that every moment of every day people are depending on the CTA for their transportation needs.
The CTA is a great transit agency with a great history. But like many governments and businesses,
it faces extraordinary financial challenges requiring immediate attention.
Since 2008, the CTA has borrowed more than $554 million to cover the cost of day-to-day operations. These loans helped the CTA through difficult economic times, but provided neither a solution to the root causes of the agency’s financial instability nor a long-term plan to make the CTA solvent. As a result, fare hikes in 2009 and deep service cuts in 2010 only temporarily eased the CTA’s financial pressures.
We are confronted by costly collective bargaining agreements with inflexible work rules, an inadequate funding formula that hurts the CTA, and a faltering economy. Despite eliminating
jobs and fostering management initiatives to improve efficiency, we are facing a record budget deficit.
Absent fundamental reform, including an end to cumbersome union work rules, the agency’s longstanding structural financial imbalance will remain, with the consequence of a new downward spiral of layoffs, service reductions, fare hikes, and lost ridership.
But with leaner and better management, labor reform, and aggressive service improvements, we can permanently fix CTA’s finances, preserve good jobs, increase ridership, and invest in our future.
In five months, our administration has cut hundreds of positions and launched aggressive management efficiencies, saving tens of millions of dollars. The result is a lean management
structure, with an average of 21 front-line staffers for every manager, and the smallest number of employees in the CTA’s history, with 25 percent fewer employees than a decade ago.
We have also launched innovative new initiatives to improve the rider experience and encourage
new riders and revenue. To improve security, we added more police and thousands of new security cameras. To improve the convenience of our customers, we are rolling out Bus Tracker technology at our bus shelters to let passengers know exactly when their bus is coming. To improve the cleanliness and aesthetics of our rail stations, we launched the
“Renew Crews”—SWAT teams of tradespeople to deep clean, repair, and improve more than 100 of our stations and subways. We’re securing hundreds of new rail cars with modern technology and passenger amenities. And many more improvements are underway.
But even the most innovative service and the leanest management cannot make up for an embedded cost structure that far exceeds the national norm—mostly driven by antiquated work rules that benefit a small number of individuals at the expense of everyone else. Our challenge is to work with our employees, and their respective unions, to move the CTA’s methods of operation from mid-century to the 21st Century. Together, we can reform and renew an agency central to regional economic growth and the quality of life in our neighborhoods.
Forrest Claypool
2 Organizational Chart
This is an organizational chart of the Chicago Transit Authority.
The Chairman of the Board and Board Members are at the top of the chart. Under the Chairman are the President and Chief of Staff. The Office of the Inspector General is between the Chairman of the Board and the President.
Nine branches are under the President, as follows:
The first branch is Legislative Affairs.
The second branch has Planning at the top, with Strategic Planning, Business Development, and Grants below.
The third branch has Transit Operations at the top, with Bus Operations, Rail Operations, Bus & Rail Maintenance, Control Center, and Scheduling & Service Planning below.
The fourth branch has Infrastructure at the top, with Power & Way, Facilities, and Engineer below.
The fifth branch has Administration at the top, with Human Resources & Employee Relations, Purchasing & Warehousing, Technology, and DBE/EEO/ADA Compliance below.
The sixth branch has Finance at the top, with Comptroller, Budget & Capital Finance, and Treasury & Revenue Collection below.
The seventh branch has Law at the top, with Corporate Law & Litigation, Labor Policy & Appeals, Torts, and Claims below.
The eighth branch is Communications.
The ninth branch has Safety & Security at the top, with Compliance below.
3 Executive Summary
Overview
Since 1947, the CTA has been the essential link in a large metropolitan area by providing public transit services that move riders throughout the city and suburbs. CTA’s mission to deliver quality, affordable transit services that link people, jobs and communities is simple but vital.
But the agency is also faced with epic financial challenges—union contracts with guaranteed wage and benefit increases and costly work rules, inadequate public funding, and heavy pension obligations. Despite eliminating jobs and implementing management initiatives designed to make our agency more efficient, we are facing a $277 million deficit in 2012. Change at every level will be required to address this issue.
Looking ahead to 2012, we must embrace a wide range of solutions to make up for the difference
between public funding and revenues, and what it costs the agency to maintain service. The most significant change must come from union work rule changes.
Nearly 91 percent of the CTA workforce is unionized and labor expenses alone account for approximately 70 percent of our costs annually. Combined with dramatically escalating pension and health care mandates, and the highest cost-adjusted rail and bus operator salaries in the nation, the union labor costs and expensive work rules have become unsustainable.
Union workforce labor costs have far outpaced our counterparts in other metropolitan areas, and tightly restricted work rules in union contracts have prevented the CTA from making any significant cost reductions and efficiencies for its largest labor force.
As we work through these many challenges, we know that mass transit can help create more jobs, stronger neighborhoods, improve property values, and provide a better quality of life. But these benefits of a vibrant, modern transportation system will not be possible if we simply carry on as we have in the past. Working with everyone, from all of our employee ranks, to our vendors and our government and not-for-profit partners, we intend to do business in a different way—one that is more rational, fair, and innovative, and that recognizes that we must now make the difficult changes to provide the best possible transportation options for the people in our great city and metropolitan area.
Even as efforts to contend with the agency’s financial constraints continue, enhancements to service and operations moved forward in 2011 and will continue to do so in 2012. Following are some of the highlights.
Management Efficiencies
Because of the severity of the agency’s financial situation, a full and thorough assessment of management and operations was the first order of business. By reorganizing and streamlining,
the agency was able to realize immediate savings with no adverse effect on the current level and quality of service provided to customers.
In June, we eliminated 51 non-bargained positions, including 26 manager-level positions. CTA is saving approximately $7.6 million in salaries and benefits—a 10 percent reduction in senior management. Additional savings of $900 thousand in labor and benefit costs are being achieved by delaying hiring for open positions that have been deemed necessary. A reduction in materials, utilities and contractual services expenses are further reducing costs for 2011, with a result of $15 million in annual savings from CTA’s operating budget.
These reductions were followed in early October by the elimination of additional positions in 2012, for a total of 200 fewer positions. The elimination of unnecessary and duplicative positions will save the CTA approximately $22 million annually and the sick and vacation leave policy changes will save the agency an estimated $15 million over the next six years. Roughly two-thirds of the cuts will come from filled positions. As part of these cuts, a number of senior-level positions have been eliminated, including vice-presidents, general managers and directors.
The leaner management structure averages 21 front-line staffers for every manager. In addition,
the CTA now has the smallest number of employees in its history, with 25 percent fewer employees than a decade ago.
We expect savings to be generated in 2012 by revisions to the agency sick and vacation policies
for non-bargained employees. Among the changes to the sick and holiday leave policies are:
• Elimination for non-bargained employees of the floating holiday policy and birthday and anniversary days off. This will end the decades-old practice of granting employees days off on their birthday and employment date anniversary. Non-bargained employees will accrue sick time at a rate of one half (1/2) day per pay period and will be able to earn up to 13 sick days per year with a maximum accrual of sick time of twenty-six (26) days. This replaces a policy of six months of sick leave for all non-bargained employees.
• Female employees will be eligible to receive four (4) weeks of fully-paid leave after giving birth, while domestic/civil union partners and spouses will be eligible to receive two (2) weeks of fully-paid leave after the birth of a child. Adoptive parents will be eligible to receive two (2) weeks of fully-paid leave after the birth and/or placement of an adopted child.
• Non-bargained employees will accrue vacation
leave on an on-going basis at a rate based on years of service. Non-bargained employees’ vacation allowance will be capped at twenty-five (25) days of vacation compared to the current maximum of 35 days.
• Pay for unused vacation days following separation from the agency will be capped at 25 days after December 31, 2012. Previously, non-bargained employees could be paid for up to 88 days.
• Employees will no longer be able to buy back unused vacation days.
In addition to these efforts, in 2012 CTA will aggressively pursue efficiencies throughout the organization, including the following areas.
Workers’ Compensation
CTA expenditures on workers’ compensation claims have steadily grown since 2008. While the number of claims has decreased, the average cost per claim has grown over 50 percent in that timeframe. Costs for CTA in 2011 are estimated to be $53 million, an increase of $16.5 million in four years. CTA will undertake an extensive review of our workers’ compensation process and monitor claims, aggressively pursuing any that are deemed questionable.
Supply Chain
Each year, the CTA spends millions on supplies yet a considerable amount in inventory sits on shelves, unused. Our distribution system lacks sufficient management controls to effectively
ensure that scarce capital dollars are not wasted. Our processes are manual and labor intensive, resulting in a slow, inefficient system. CTA will review our policies, procedures, and spending patterns to develop a supply chain system that is responsive, efficient and cost-effective.
Information Technology
CTA’s information technology systems are fractured, non-integrated and must be replaced in order to achieve the maximum use possible. In the past, departments have made technology purchases without the benefit of an agency-wide plan that would ensure disparate systems are able to communicate with one another. In 2012, the CTA will undertake a comprehensive analysis across the organization to identify and document current processes to develop a future state plan to bring CTA’s technology into the 21st century.
Absenteeism
The CTA incurs tens of millions of dollars each year in absenteeism-related costs. Unscheduled days that are 2.5 times the industry standard require excessive overtime expenditures. CTA will undertake an aggressive program of training and accountability to lower absenteeism and discipline employees who are serial abusers of time-off policies.
More importantly, we will also seek to end union work rules that effectively bar the termination of chronically absent employees.
Training
CTA’s greatest resource is its employees. But current training documentation is dispersed throughout the agency and its many garages, leading to confusion and inconsistency. CTA will revise its training program to standardize and track training
and requirements to make sure that all its employees are properly credentialed and trained, for the benefit of both our workforce and our customers.
By operating more efficiently, money is taken out of the bureaucracy and put into investments and service improvements.
All of these early initiatives are designed to do more with less, while improving the safety and convenience of our customers, and the cleanliness and appearance of our buses, trains and facilities.
Security
The CTA is investing $10 million to hire 50 full-time police officers to patrol the rail and bus system across the city. The police officers will come from the Chicago Police Academy. Recruits are scheduled to begin their academy training in the fall of this year. They will go through six months of intensive training, with officers expected to be detailed to the Public Transportation Section by spring 2012. Currently, officers from the unit include both uniformed and plainclothes police who ride the trains and buses, and patrol stations.
Adding these officers will increase the visibility of a police presence on the system and help to deter crime. This change to the policing strategy is a long-term investment for riders.
Technology also plays an important role in the CTA’s security efforts. In June of 2011, the agency announced plans to double the number of security cameras at stations and expedite their installation, providing increased security for passengers and more assistance to police.
By the end of 2011, more than 3,500 security cameras will have been installed at 143 rail stations. The intention is to saturate the system with cameras so that potential criminal activity is recorded no matter where it occurs.
Images captured from CTA security camera footage have been used by police to solve both CTA-related crimes and crimes that occur in the vicinity of CTA buses and rail stations. Each camera records events and also provides a live feed to the CTA Control Center and the city’s Office of Emergency Management and Communications (OEMC).
In 2012, we will continue to enhance the security infrastructure of CTA. The new 5000 series rail cars will arrive already equipped with multiple cameras. Retrofitting the existing fleet will be a multi-year process but will vastly enhance the agency’s ability to capture images to share with law enforcement. Federal Homeland Security funding will allow us to extend our camera network into rail yards.
Station Renewal
Public transit is a critical element in every neighborhood served by CTA and the Station Renewal program was created to make the experience of every rider the best it can be, providing
a comprehensive facelift to 100 CTA rail stations over the next 12 months. The initiative,
performed by work crews comprised of different trade workers—and called the Renew Crew—focuses on providing a top to bottom overhaul of station, creating a cleaner, brighter and more appealing station that improves the customer travel experience.
By consolidating disparate trades that used to operate independently—on different schedules
and at different locations, the station renewal program integrates supplemental specialized
private trade contractors. These efforts are similar to a SWAT team approach to comprehensively address all the outstanding issues at a station at once – cleaning, repairing and improving rather than the piecemeal approach used previously.
The first station to receive a renewal was the Logan Square Blue Line station. Logan Square, on the O’Hare Branch of the Blue Line, is in the heart of the Logan Square neighborhood and community area and opened in 1970. Upgrades to the station included repairs to masonry walls and concrete ceiling, refurbishment of the Kedzie main entrance and Spaulding auxiliary
entrance escalators, deep cleaning and repainting the station’s interior, new signage and light fixtures, security camera upgrades, and planting new trees and greenery in the bus terminal and plaza.
Details of the station renewal effort are featured on CTA web site so customers can view which station is receiving a renewal in addition to the next stations scheduled over a three week period. The web site also allows customers to provide feedback on the work completed.
Bus Shelter Displays
To increase the convenience for customers, this fall CTA unveiled the first of 400 LED signs to be installed at select JC Decaux bus shelters. The signs will provide customers with estimated
arrival times via CTA Bus Tracker for the next four buses serving the particular location,
and eventually important customer alerts affecting the respective route and affected routes at transfer points.
These bright, easy-to-read signs display Bus Tracker estimated arrival times specific to the location of the bus shelter. The signs are being strategically placed at bus stops where a higher number of boardings occur, and also at busy transfer and connection locations. The LED signs are being placed on the sides of bus shelters and face outward to serve as many riders as possible – both those at the stop and within the vicinity of the shelter.
The first 150 signs will be up by March 2012 and the remaining 250 by September 2012.
The Chicago Department of Transportation (CDOT), which oversees the JC Decaux contract and maintains the public right of ways, will be the CTA’s partner in the operations and maintenance
of the LED screens.
CTA Bus TrackerSM & CTA Train TrackerSM
In 2011, CTA Train TrackerSM was rolled out to customers following on the heels of the popular CTA Bus Tracker. Customers now receive estimated arrival times for the next train for all 143 rail stations across the CTA’s eight rail lines via the link to CTA Train Tracker on transitchicago.
com.
Estimated arrival times are generated through a combination of scheduling information and data collected by the software that monitors the signal system to indicate when a portion of track is occupied by a train. CTA Train Tracker calculates estimated
arrival times by first measuring how long it takes a train to travel a portion of track, and then averaging the times of the last five trains to move across a portion of track.
Riders can customize how they view their train arrival predictions by selecting the number of results that are displayed and how they are sorted—either by platform or route if the station is served by multiple rail lines, or by time of the next arriving train. Customer alerts are also integrated into the CTA Train Tracker website and notify riders to any planned events affecting
rail service.
Train arrival information is also displayed at 13 rail stations using existing electronic signs that are either on the platform or mezzanine levels. Stations with signs included in the pilot are:
• Clinton, Ashland and California (Green Line – Harlem/Lake branch)
• Lake, Garfield, Cermak-Chinatown and Jackson (Red Line)
• Chicago (Brown/Purple Lines)
• Fullerton and Belmont (Red/Brown/Purple Lines)
• Halsted (Orange Line)
• Polk (Pink Line)
• UIC-Halsted (Blue Line)
Bus Tracker has transformed the way Chicagoans perceive CTA bus service by taking the guesswork out of bus travel. Since its systemwide launch, arrival information is available not only on CTA’s web site, but on cell phones, web-enabled devices and via text message. By sending a text message to the CTA, customers can receive the estimated arrival times of the next two buses at a designated bus stop. With this feature, any customer with a mobile phone will have the ability to access Bus Tracker on the go.
Open Fare System
A new initiative in process will transform the way customers pay their fares. Over the last dozen years, the CTA has made many improvements to its fare payment system, evolving from tokens to magnetic strip cards to the current smartcard technology used in Chicago Cards.
Smartcard technology was originally chosen because it was a good investment for the CTA. It streamlined the agency’s operations while increasing convenience for customers, a combination
that supported the CTA operating in a fiscally responsible manner and delivering on the promise of providing a valuable and beneficial product for customers.
Technology is constantly evolving. This is why the CTA is planning to move to contactless credit cards, debit cards and prepaid cards for riders. The final selection of partners on the project is expected to be completed by the end of 2011, with gradual implementation through 2012 and 2013.
5000 Series Rail Cars
Following the successful completion of testing on each rail line, the CTA has funded and ordered 706 new rail cars from the first-generation Bombardier 5000-series. Each new rail car will be equipped with seven networked security cameras.
But cameras are not the only new safety features. The new cars also include glow-in-the-dark strips on floors that outline aisles and doorways, and similar decals and signage to display emergency instructions. They also feature an event recorder system similar to a black box on an airplane, and door sensors that detect obstructions better than the CTA’s current rail fleet.
The new cars also have enhanced features for people with disabilities, including those using mobility devices. Each rail car meets or exceeds current ADA compliance standards. This includes two wheelchair positions, more sensitive door sensors to detect obstructions, and text versions of audible announcements on LED displays for hearing impaired.
There are several safety features on the new cars which include the ability for the rail operator
to view the interior of each rail car and speak to the customers in that rail car via intercom. The Chicago Police Department will have remote video surveillance access and the CTA’s Control Center will be able to make emergency announcements and send text messages to the LED signs inside the train as well.
Infrastructure
Morgan-Lake Green/Pink Line
CDOT is building a new elevated station at Morgan and Lake streets that will serve the Green and Pink lines. This area has seen significant residential and commercial development and a new station will provide direct access to and from the downtown area and the industrial/commercial districts. This is the first new CTA station to be built in more than 10 years.
The new station will fill in a 1.3 mile gap between the existing Clinton and Ashland stations on the Green/Pink lines. The adjacent West Loop/Near West area has seen hundreds
of new residential units and dozens of restaurants,
retail businesses and nightclubs added to its landscape over the past decade. These businesses have joined long-established food suppliers and manufacturers that had given the area its reputation as an industrial corridor.
When the project is completed, CTA customers will have a newly-accessible station complete with elevators, Braille signs, tactile edging and wheelchair turnstile for easier access to the station. Other amenities, such as security cameras, LCD information centers and a new public address system will make the facility state of the art.
Purple Line Viaducts
Work will begin this year to replace three viaducts along the Purple Line – at Greenleaf, Dempster and Grove Streets in Evanston.
The project involves replacing the concrete viaducts with new steel structures, as well as new abutments, retaining walls, foundations, and new waterproofing and drainage systems. The project also includes rail tie replacement, new landscaping and lighting enhancements
under the bridges.
The viaducts are more than 100 years old and have deteriorated over time with exposure to the elements
and train vibrations, leading to reduced speeds for Purple Line trains. Repairing the viaducts will remove the slow zones and allow trains to return to normal speeds.
Loop Track Renewal
Work on the second half of the Loop Track Renewal project will also begin this fall. Crews will replace deteriorated track and rail ties along the Wells and Van Buren elevated tracks. The project will replace track components that were installed in the mid-1980s and prevent the creation of new slow zones along the elevated line.
In 2008, the CTA began work on replacing the signaling system within the Loop and also the first half of the Loop Track Renewal project. During this first phase of the project, crews replaced approximately 10,000 feet of track and deteriorated ties along the Lake and Wabash stretches of elevated track, resulting in the removal of nearly 600 feet of slow zones in the Loop.
Portions of the Loop elevated system that will undergo renewal work in this next phase of work include the track and structure along Wells and Van Buren streets; the Hubbard Curve, which is located just north of the Merchandise Mart station and the Tower 18 and Tower 12 junctions, which are located at Lake/Wells and Wabash/Van Buren, respectively. The project also will include replacement of other rail system components including foot walks, traction power and signal cabling, signal panels, switch machines and rail lubricators.
Track replacement work will prevent the implementation of slow zones in the near future for those areas where the track components have continued to deteriorate. With several hundred-thousand customers going into and out of the Loop each day, any delays encountered
there would create a ripple effect and impact service along all other rail lines.
Bus Rapid Transit
The CTA, in coordination with CDOT, will experiment with Bus Rapid Transit (BRT) service on the Jeffery Boulevard corridor. Planning is also underway for potential full-service BRT express bus service on Western Avenue and in the Loop.
Moving Forward
In Chicago, transit is not simply an overflow outlet for those who would rather not drive; for many, it is . by choice . their primary mode of transportation. Transit plays a critical role in settings where land values are high and the space for new highway construction and associated parking needs, is significantly limited or non-existent.
The CTA’s current infrastructure provides the most integrated blueprint for designing the future of the region’s public transit. It is the core system with the most potential for cost-effectively connecting to other public transit lines. Looking forward, enhancing CTA’s current infrastructure will provide the best results in regional efforts to reduce traffic congestion.
The goal of everyone at the CTA is to advance the ongoing efforts to rebuild the system, improve the product offered to customers and deliver service that is on-time, clean, safe, courteous and efficient each and every day.
But a robust, modern transit system is not just important to transit riders, it is important to the livability of the region and its ability to attract jobs and businesses. An investment in transit is an investment in the future of this region.
Transit agencies today are facing a number of challenges, ranging from competition for limited funds due to the growing demand for new transit projects, tough competition for local sources to match federal funding requirements, and cost burdens associated with increasing safety and security responsibilities brought about by the security-enhanced environment in which we live.
The region needs a viable public transportation network that will sustain its economic competitiveness,
ensure flexibility in times of emergency, and support a healthy quality of life—and decisions should be made that support investment in this network.
4 2011 Operating Budget Performance Summary
Introduction
Despite the budget challenges facing the CTA, fares were not raised in 2011. In the fall of
2009, the Regional Transportation Authority (RTA) and the State of Illinois reached an
agreement whereby the RTA would issue debt to provide an additional $83 million to the
CTA in both 2010 and 2011. With this funding, the CTA agreed to hold fares constant for
the same two-year period. In addition to holding fares steady, the CTA balanced the 2011
budget with no changes to service levels.
The CTA’s budget, which was adopted on November 10, 2010 (“2011 budget”), relied on
the effective management and efficient use of CTA resources. For the third consecutive
year, non-bargained employees did not receive a wage increase. Throughout the year,
management sharpened its focus on efficiency as it implemented a series of cost-cutting
measures.
The CTA reorganized and implemented spending cuts in June to save $15 million annually.
Fifty-one non-bargained positions were eliminated, including 26 manager-level positions.
None of these cuts impacted service or was safety-related. Approximately half, or $7.6
million, of the cost savings came from personnel reductions, including $900 thousand in
savings achieved by instituting hiring delays and holding positions vacant for a longer
period of time. Reductions in materials, utilities, and contractual services expenses
accounted for additional savings as well.
These spending controls allowed the CTA in September to announce a new initiative to
enhance the customer travel experience. The station renewal initiative is designed to
provide facelifts to 100 CTA rail stations over the next 12 months. The program focuses on
providing repairs in a more systematic way than in the past, resulting in cleaner, brighter,
and more appealing stations.
2011 ridership is projected to end the year slightly over the budget. Farebox revenues are
projected to come in slightly above budget and public funding receipts are anticipated to
exceed the budget as the economy shows small signs of a modest recovery.
But even with all of this, the transfer of capital funds was also necessary to fund essential
preventive maintenance activities and balance this year’s budget.
Ridership
The 2011 budget estimated systemwide ridership to be 521.8 million. The CTA currently projects that ridership will end
the year at 524.4 million, or 0.5 percent above the budgeted estimate.
When compared to 2010, 2011 ridership is forecast to be 7.5 million trips, or 1.5 percent
higher. This reflects a decline of approximately 0.1 percent in bus ridership in 2011, and an
increase in rail ridership of 3.7 percent over 2010.
Average weekday ridership for 2011 is projected at 1.66 million per day, which is 20.5
thousand (1.2 percent) higher than 2010 weekday ridership. This is mainly attributable to
a 3.4 percent increase in weekday rail ridership, which offset the decrease of 0.3 percent in
weekday bus ridership.
Average Saturday ridership for 2011 is projected at 1.08 million per day, which is an
increase of 29.6 thousand (2.8 percent) from 2010 Saturday ridership. The 1.2 percent
increase in bus ridership and the 5.3 percent increase in rail ridership drove this
systemwide increase.
Average Sunday/holiday ridership for 2011 is projected at 757.7 thousand per day, which
is a 23.3 thousand (3.2 percent) increase from 2010 Sunday/holiday ridership. This was
driven by the 6 percent increase in rail ridership and a smaller increase in bus ridership of
1.2 percent.
Operating Expenses
Operating expenses for 2011 are estimated to be $1.3 billion, which is $31.3 million less
than the 2011 budget.
The 2011 labor expense is projected to be $901.4 million, which is $66.3 million higher
than 2010 actual labor costs due to previously negotiated wage increases and higher fringe
benefit costs. Labor expense accounted for over two-thirds of the 2011 operating budget.
On January 1, 2011, employees in the Amalgamated Trust Union (ATU) received another
3.5 percent pay increase, while employees in the Craft Coalition received increases in July
consistent with the regional prevailing wage, both of which resulted in an increase versus
2010 spending despite savings relating to management efficiencies. The CTA continued to
control and limit hiring in 2011 and implemented mid-year personnel reductions.
In 2011, material expenses are forecast to be $67.9 million, which is $4.8 million
(6.7 percent) lower than the 2011 budget. Targeted investment in the bus fleet has lowered the average age of the
bus fleet and subsequently the budget for materials has decreased.
Energy prices are a key driver of the CTA’s operating expenses. Fuel for revenue
equipment is forecast to end the year at $58.2 million for 2011, $6.1 million more than
actual spending in 2010. Fuel consumption in 2011 is forecast at 18.3 million gallons,
reflecting a decrease of 940 thousand gallons (5 percent) versus 2010. The decrease in
consumption is primarily due to the service adjustments of 2010, as well as to fewer special
events in 2011.
The sticker shock felt at the gas pump in 2011 by drivers across the country affected the CTA as well,
although well-timed and strategic hedging safeguarded the agency from experiencing significant pain.
Fuel prices in 2011 are projected to end the year at a net average price of $3.18 per gallon, which, while 17
percent more than the average price in 2010, is $0.26 below the $3.44 per gallon average market
price through August 1, 2011. By April, the CTA had locked in enough fuel hedge contracts
to cover 79 percent of total 2011 fuel consumption, a decision that helped to shield the
agency from the impact of higher prices that began emerging in the spring. The CTA’s
hedging program includes daily reviews of commodities markets and biweekly meetings
with industry experts who offer hedging recommendations. With the help of its advisors,
the CTA uses a long-term, layered fuel hedging strategy that will continue in 2012.
For 2011, the cost of electric power for the rail system is forecast to be $30.2 million,
which is $166 thousand higher than the 2011 budget. Costs increased as a result of higher
power consumption, brought about primarily by the severe winter storms and frigid
temperatures of early 2011. At the start of 2010, the CTA’s new electric power contract
began. Under this contract, rail power is purchased using an actively managed block
purchase approach which allows the CTA to purchase wholesale power for its base load
electricity supply in advance. Electricity consumed above or below the block quantity is
settled at the real-time ComEd locational marginal price (LMP). This approach yielded a
blended rate of approximately $0.071 per kilowatt-hour in 2011.
Provision for injuries and damages represents expenses for claims and litigation for
incidents that occur on CTA property, as well as incidents involving CTA vehicles. This
amount is determined by the CTA’s actuaries and is based on actual claims history and
future projections. The 2011 forecast for this cost is even with the budget at $15 million.
Security expenses are estimated to be $36 million in 2011. This is $1.9 million (5.5 percent) over the 2011
budget and $2.7 million over 2010 expenses. This increase was due in part to the augmentation of security
personnel at bus garages and across the system in general. Security services consist of officers from the
Chicago, Evanston and Oak Park police departments, as well as through contracts with private
security firms. In addition to the CTA’s budgeted expense, the Public Transportation
Section of the Chicago Police Department provides dedicated services to CTA customers at
an estimated cost of $22 million, paid for by the City of Chicago.
In July 2011, it was announced that, in partnership with the Chicago Police Department, 50
full-time police officers would be hired to patrol bus and rail stations across the city. The
50 officers are expected to begin the Chicago Police Academy in the fall of 2011. Upon
completion of the Academy, these full-time officers will be detailed to the Public
Transportation Section by spring 2012. This long-term investment in the safety of CTA
riders will increase the CTA’s ability to provide customers with the most secure and
convenient transit service possible.
The other expenses category includes interest on pension obligation bonds, utilities,
maintenance and repair, advertising, commissions, consulting, insurance, leases and
rentals, and other general expenses. The year-end forecast for these services is $197.8
million, which is $2.4 million under the 2011 budget.
Operating Revenues
System-Generated Revenues
System-generated revenues are projected to be $601.1 million, which is $11.1 million
below budget and $7.1 million higher than 2010 actual revenues. Revenues from an RTA
operating grant that previously were accounted for in other revenue have been moved to
public funding, resulting in this decrease. The average fare paid in 2011, including cross-
platform transfers, is projected to be $1.00.
The reduced-fare subsidy is the State of Illinois’ reimbursement to the CTA, Metra and
Pace for discounted fares given to people with disabilities and students. Revenue from the
reduced-fare reimbursement is projected to be $28 million, which is even with budget.
Advertising, charters and concessions revenues in 2011 are projected to be $19.4
million, which is $512 thousand more than budget and $3.2 million (14 percent) less than
2010. Despite the economic recession having a negative impact on advertising, the CTA
projects an increase in contractual advertising revenues will help balance decreases in
other areas. Revenue losses have been additionally offset by a net increase of
concessionaires of 15 percent across the system. This sizable increase was due to
streamlining the process by which the CTA leases its retail spaces, thus offering more
amenities to customers.
Investment income is estimated to be $394 thousand, which is $233 thousand (37.2
percent) lower than 2010 levels.
Statutory required contributions will meet the budgeted amount of $5 million per the
Regional Transportation Authority Act, which requires the City of Chicago and Cook County
to contribute $3 million and $2 million respectively to CTA operations each year.
Other revenues, which include parking fees, sale of real estate, rentals and sale of CTA
merchandise, are projected to be $24.6 million, which is $11.2 million less than the 2011
budget and $3.8 million (13.3 percent) below 2010 actual revenues.
Public Funding
The public funding projected for 2011 is $574.1 million. This funding is comprised of sales
tax, discretionary funding from the RTA, real estate transfer tax and federal capital money
used for preventive maintenance funds. The 2011 projection reflects an increase versus
what the RTA originally projected, which has resulted from sales tax across the region
exceeding the budget. The CTA expects to continue to see positive effects in its public
funding as the economy continues to stabilize in 2012. Included in the 2011 funding is the
$83 million in proceeds received from the RTA in connection with the CTA’s agreement not
to raise fares in 2010 and 2011. This additional funding of $83 million will not reoccur in
2012.
Total Revenue (in thousands)
2011 Forecast
Fares and Passes $ 523,660
Reduced Fare Subsidy $28,000
Advertising, Charter & Concessions $19,436
Investment Income $394
Statutory Required Contributions $5,000
All Other Revenue $24,617
Total System Generated Revenue $ 601,107
PUBLIC FUNDING
Preventive Maintenance 48,200
Fare Agreement with State $83,000
Public Funding Available through the RTA $574,144
Total Public Funding $ 705,344
Total 2011 Revenue $ 1,306,451
Total 2011 Expenses $ 1,306,451
2011 Operating Budget Schedule (in thousands)
Revised
Budget Budget Forecast
2011 2011 2011 Variance
Operating Expenses
Labor $931,179 $901,392 $901,392 $29,787
Material 72,762 67,923 67,923 4,839
Fuel 54,487 58,166 58,166 (3,679)
Power 30,070 30,236 30,236 (166)
Provision for Injuries and Damages 15,000 15,000 15,000 -
Purchase of Security Services 34,109 35,988 35,988 (1,879)
Other Expenses 200,149 197,746 197,746 2,403
Total Operating Expenses $1,337,756 $1,306,451 $1,306,451 $31,305
System Generated RevenueFares and Passes$523,660 $523,660 $523,660 $-
Reduced Fare Subsidy 28,000 28,000 28,000 -
Advertising, Charter & Concessions 18,924 19,436 19,436 512
Investment Income 850 394 394 (456)
Statutory Required Contributions 5,000 5,000 5,000 -
All Other Revenue 35,817 24,617 24,617 (11,200)
Total System Generated Revenue $612,251 $601,107 $601,107 $(11,144)
Public Funding Required for Operations $725,505 $574,144 $574,144 $151,361
Transfer from Capital-Prev Maintenance $113,200 $48,200 $48,200 $(65,000)
Fare Agreement with State 83,000 83,000 83,000 -
Public Funding Available through RTA 529,305 574,144 574,144 44,839
Total Funding $725,505 $705,344 $705,344 $(20,161)
Recovery Ratio* 54.57% 55.17% 55.17% 0.00%
Required Recovery Ratio 50.00% 50.00% 50.00% 0.00%
Fund Balance $- $- $- $-
*Recovery ratio is calculated by dividing System Generated Revenues over Operating Expense. The calculation includes in-kind
revenues and expenses for security provided by the City of Chicago, excludes security expense, POB debt service and includes some
grant revenues.
5 President’s 2012 Proposed Operating Budget Summary
Introduction
Like other mass transit agencies across the United States, the CTA confronts unprecedented
challenges in its mission to deliver reliable, efficient, and affordable services.
As the agency heads into 2012, it is faced with a financial situation that requires long-term
solutions and reforms that will enable it to function efficiently and cost effectively while
improving transit services in a new economy.
Innovative management solutions are also essential now more than ever before. The
economy is recovering at a much slower pace than had been predicted. At the same time, it
has never been more important for the CTA to connect its customers to their jobs and
communities. The CTA is key to the region’s economic health and remains committed to
serving its customers.
The nation’s second largest transit agency has been living on borrowed money and short-
term fixes that have now reached their limit. It has limped along for years, failing to find
sustainable solutions or to address the root causes of the agency’s fiscal problems.
As a result, fare hikes in 2009 and deep service cuts in 2010 only temporarily eased the
CTA’s mounting financial pressures.
New fare hikes and service reductions are a last resort and should not be relied on as a way
to balance a budget. That is why at its core, the proposed 2012 budget reflects the
expectation of labor and work-rule reform. The alternative is a continued downward spiral
of more service reductions and layoffs, more fare hikes, less riders, less revenue, and an
inability to repair and maintain an aging infrastructure.
The proposed 2012 budget affirms the CTA’s commitment to manage responsibly and
provide the critical services that so many people rely on now more than ever, but hard
decisions must be made and everyone at the agency must work together to preserve
service and stabilize the agency’s financial foundation.
We have arrived at a time when the collective bargaining agreements that are laden with
decades-old, inflexible, and costly work rules, an inadequate funding formula that hurts the
CTA, and the faltering economy are forcing the agency to find new ways to manage and
operate. Organizational change at every level is required to address this issue.
CTA management has made changes within its control to cut costs and reduce waste, and
will cut a total of 200 positions from the budget for 2012. This will save the agency $22
million next year, while other policy changes to sick and vacation leave will save $15
million over six years. As part of these cuts, a number of senior-level positions have been
eliminated, including vice presidents, general managers, and directors.
The leaner management structure averages 21 front-line staffers for every manager. The
CTA now has the smallest number of employees in its history, with 25 percent fewer
employees than a decade ago.
Ridership
The CTA estimates 2012 systemwide ridership to be 529.2 million, an increase of 4.8
million (0.9 percent) over the 2011 year-end forecast. With budgeted fares expected to
remain constant in 2012, ridership is projected to grow as consumers continue to find
transit an affordable alternative to the increasing costs of parking and driving. While the
weak economy dampens some trip-taking, in the off-peak and particularly on weekends,
the CTA expects some continuing growth as many commuters still find the city an attractive
place for shopping, visiting, and recreation.
Bus ridership is expected to be 306.3 million in 2012, a slight increase of 0.2 percent over
the 2011 forecast. The weak growth rate on the bus system is due primarily to the
anticipated adjustment senior citizen riders will have due to the changes in the Senior Free
Ride Program implemented in September 2011. Rail ridership is expected to be 222.9
million in 2012, reflecting an increase of 1.9 percent over the 2011 forecast.
Operating Expenses
The 2012 proposed operating budget is $1.24 billion, which is a $66.2 million (5.1 percent)
decrease versus the 2011 revised budget.
Labor expenses make up approximately two-thirds of the CTA budget. In 2012, labor costs
are estimated to be $963.1 million, a $61.7 million (6.8 percent) increase versus the 2011
budget. The 2012 labor budget includes several assumptions:
. Elimination of 200 budgeted positions;
. Savings of $7.6 million annually, originally part of the 2011 mid-year reductions,
will be realized again in 2012; and
. Revisions to vacation and sick-time policies for non-bargained employees.
The 2012 proposed budget contains a credit reflecting $80 million in savings in the second
half of 2012 ($160 million annually) from labor reforms and work-rule changes.
The proposed 2012 budget forecasts material expenses at $71.5 million, which is $3.6
million (5.3 percent) more than the 2011 revised budget. The CTA will continue to make
improvements to its supply chain processes throughout 2012. All contract bids will
continue to be reviewed thoroughly before being awarded to ensure that the CTA is getting
the best price possible and that only the required quantities are being purchased.
Fuel expenses in 2012 are budgeted at $66.7 million, which is $8.5 million (14.7 percent)
more than the 2011 revised budget. As with 2011, the fuel budget is managed using the
CTA’s strategic fuel hedging policy. Fuel prices in 2012 are budgeted at $3.50 per gallon.
The forecast average net price for fuel in 2011 is $3.18 per gallon versus a budgeted
estimate of $3.07 per gallon. As of September 20, 2011, 93.6 percent of the CTA’s 2011
projected fuel consumption and 26.3 percent of 2012 projected fuel consumption has been
locked-in. With the help of its advisors, the CTA uses a long-term, layered fuel hedging
strategy.
The 2012 proposed budget estimates the cost of electric power for revenue equipment at
$25 million, which is $5.3 million (17.4 percent) lower than the 2011 revised budget. The
CTA negotiated a new contract for electric power beginning on January 1, 2012. Rail power
will continue to be purchased using an actively managed block purchase approach, which
allows the CTA to purchase wholesale power for its base load electricity supply in advance
through strategically placed hedges. Electricity consumed above or below the block
quantity is settled at the real-time ComEd price. Approximately 60 percent of the CTA’s
expected power consumption is met using this strategy. This approach yields a blended
rate of approximately $0.064 per kilowatt-hour. The electric power contract will continue
through the end of 2013.
The 2012 proposed provision for injuries and damages expense is $31.2 million,
reflecting an increase of $16.2 million over the 2011 budget. Additional deposits made in
2010 allowed for a lower-than-normal deposit in 2011. The required provision is
determined by the CTA’s actuaries and is based on actual claims history and future
projections.
Purchase of security services includes 24-hour patrol services provided by the Chicago,
Evanston and Oak Park Police Departments, as well as contracts with private firms for
guard and canine security. The 2012 proposed security services expense is estimated to be
$36.8 million, an increase of $815 thousand (2.3 percent) over the 2011 revised budget. In
addition to the services contracted by the CTA, the City of Chicago provides approximately
$22 million in services from the Chicago Police Department’s Public Transportation Section
at no charge to the CTA. Security across the system in 2012 will also include an additional
50 full-time officers from the Chicago Police Academy, expected to be deployed in the
spring.
Other expenses in 2012 are proposed to be $126 million, a decrease of $71.7 million (36.3
percent) under the 2011 revised budget. This decrease reflects a reduced need in the 2012
budget for POB debt service due to a recent substitution of a debt service reserve fund.
Additional expenses in this category include utilities for CTA facilities, advertising and
marketing expenses, equipment and software maintenance, accounting, engineering, legal
and other consulting services, banking fees and commissions for the sale of fare media.
Included in this category is POB Interest Expense, which is projected to increase by $10
million versus the 2011 revised budget.
Operating Revenues
The CTA has two main revenue categories: system-generated revenues and public funding.
Total Revenue (in thousands)
2012 Plan
Fares and Passes $ 540,000
Reduced Fare Subsidy 28,000
Advertising, Charter & Concessions 22,802
Investment Income 867
Statutory Required Contributions 5,000
All Other Revenue 27,013
Total System Generated Revenue $ 623,682
Public Funding Available through RTA $ 616,609
Total Public Funding $ 616,609
Total 2012 Revenue $ 1,240,291
Total 2012 Expenses $ 1,240,291
System-Generated Revenues
System-generated revenues include fares and passes, reduced-fare subsidy, advertising and
concessions, investment income, statutory-required cash contributions from Chicago and
Cook County, and other miscellaneous revenues. In 2012, system-generated revenue is
projected to be $623.7 million, representing a $22.6 million (3.8 percent) increase when
compared to the 2011 revised budget. The increase in system-generated revenue is due
primarily to a projected increase in farebox revenue.
Revenues from fares and passes are budgeted at $540 million in 2012. This is an increase
of $16.3 million over the 2011 revised budget and can be attributed to the projected
growth in system ridership for 2012 as well as to an additional $7 million that the CTA
expects as a result of the amended Senior Free Ride Program. The CTA continues to
provide free rides to people with disabilities, those under the state’s Circuit Breaker
Program, active military personnel, and veterans with disabilities.
The CTA provides approximately 28 million reduced fare trips annually to qualified riders.
The 2012 budget assumes the reduced fare subsidy will remain constant with the 2011
budget of $28 million.
Advertising, charters and concessions revenues include advertisements on buses, trains
and stations, income from concessions, and other non-farebox revenue. The CTA remains
focused on earning revenues from areas other than the farebox and, in 2012, has plans to
expand experiential advertising, the number of digital screens, branding opportunities, and
corporate sponsorships. The 2012 budget is $22.8 million, representing an increase over
the 2011 revised budget of $3.4 million (17 percent).
Investment income for 2012 is budgeted at $867 thousand, which represents a moderate
increase over recent levels. This projected increase is due to an anticipated recovery of
both the economy at large as well as a potential rise in interest rates.
Statutory required contributions remain unchanged in 2012, budgeted at $5 million.
The Regional Transportation Authority Act requires the City of Chicago to contribute $3
million and Cook County to contribute $2 million each year toward CTA operations. These
required cash contributions are in addition to in-kind contributions from the City of
Chicago and Cook County. The Chicago Police Department’s Public Transportation Section
provides approximately $22 million of security services to the CTA, while Cook County
provides approximately $3.5 million of in-kind services through the Sheriff’s Work
Alternative Program (SWAP). Under the SWAP program, non-violent offenders in Cook
County supplement existing CTA employees to clean bus turnarounds and garages.
All other revenue includes parking charges, rental revenue, third-party contractor
reimbursements, and filming fees, among other income sources. This category is budgeted
in 2012 at $27 million, an increase of $2.4 million over the 2011 revised budget.
Public Funding
The amount of public funding available for CTA operations is determined by the RTA, and is
based on the RTA’s revenue projection for the year. Public funding has three sources: sales
tax revenue, public transportation funds (PTF), and the real estate transfer tax (RETT). The
three funding sources are authorized under state statutes passed in 1983 and 2008. A
diagram of public funding received by RTA and the way in which it is allocated among the
three Service Boards is included in the Operating Funding Summary later in this book.
The RTA retains 15 percent of the original one percent RTA sales tax authorized in 1983.
Of that which remains, the CTA receives 100 percent of the taxes collected in the city of
Chicago and 30 percent of those taxes collected in suburban Cook County. Of the funding
available from the 0.25 percent sales tax and PTF authorized by the 2008 legislation, the
CTA receives 48 percent of the remaining balance after allocations are made to fund
various programs. Additionally, the 2008 legislation authorized a $1.50 per $500 increase
in RETT, all of which is collected in the city of Chicago. The CTA receives 100 percent of the
increased RETT authorized in 2008.
In 2011, the total public funding is projected to be $574.1 million, not including capital
funds transferred for preventive maintenance or the $83 million funded in accordance with
the CTA’s agreement with the state.
A modest economic recovery felt in 2011 is expected to continue into 2012, resulting in an
increase in public funding from sales tax receipts. In 2012, public funding available
through RTA is projected to be $616.6 million, an increase of $42.5 million (7.4 percent)
over the 2011 forecast.
The 2012 budget does not include two revenue sources reflected in the 2011 budget: the
transfer of $48.2 million in capital funds for preventive maintenance, as well as $83 million
from the 2009 fare agreement with the state to forestall fare increases through 2011. In
total, this accounts for $131.2 million that was available in 2011 essentially disappearing
from the 2012 operating budget.
President’s 2012 Proposed Operating Budget Schedule (in thousands)
Revised Proposed
Actual Budget Forecast Budget
2010 2011 2011
2012Operating Expenses
Labor $835,143 $901,392 $901,392 $963,075
Savings from Labor Reform and Work Rule Changes - - - (80,000)
Material 80,077 67,923 67,923 71,493
Fuel 52,063 58,166 58,166 66,707
Power28,20830,23630,23624,977
Provision for Injuries and Damages 43,000 15,000 15,000 31,200
Purchase of Security Services 33,319 35,988 35,988 36,803
Other Expenses 167,240 197,746 197,746 126,036
Total Operating Expenses $1,239,050 $1,306,451 $1,306,451 $1,240,291
System Generated Revenue
Fares and Passes $509,180 $523,660 $523,660 $540,000
Reduced Fare Subsidy 28,245 28,000 28,000 28,000
Advertising, Charter & Concessions 22,609 19,436 19,436 22,802
Investment Income 627 394 394 867
Statutory Required Contributions 5,000 5,000 5,000 5,000
All Other Revenue 28,397 24,617 24,617 27,013
Total System Generated Revenue $594,058 $601,107 $601,107 $623,682
Public Funding Required for Operations $472,339 $574,144 $574,144 $616,609
Transfer from Capital-Preventive Maintenance $89,654 $48,200 $48,200 $-
Fare Agreement with State 83,000 83,000 83,000 -
Public Funding Available through RTA 528,961 574,144 574,144 616,609
Total Funding $701,615 $705,344 $705,344 $616,609
Recovery Ratio* 56.60% 55.17% 55.17% 59.56%
Required Recovery Ratio 50.00% 50.00% 50.00% 50.00%
Fund Balance $56,622 $- $- $-
Revised
Budgeted Budgeted
Positions Positions
2011 2012
TOTAL CTA WITHOUT STO** 4,581 4,428
Bus STO Positions*** 3,699 3,688
Rail STO Positions*** 1,097 1,090
TOTAL CTA 9,377 9,206
**STO: Scheduled Transportation Operations***STO Full-Time Equivalents*Recovery ratio is calculated by dividing System Generated Revenues over Operating Expense. The calculation includes in-kind revenues and
expenses for security provided by the City of Chicago, excludes security expense, POB debt service and includes some grant revenues.
6 President’s 2013-2014 Proposed Operating Financial Plan Summary
Introduction
Addressing the issues head on in 2012 and balancing the budget with structural solutions
pays dividends well into the future. Those benefits are obvious in this two-year financial
plan.
By reducing labor costs—partly by ending the cumbersome, burdensome, and costly work
rules that have cost us tens of millions of dollars each year—the CTA has structurally
balanced its 2012 budget. The balanced 2012 budget carries through to 2013 and 2014
because it is based on no short-term fixes and no unsustainable borrowing from our capital
funds or from the state.
The 2012 budget was balanced with no fare increases and no service reductions. Similarly,
this plan calls for no fare increases or service reductions in either 2013 or 2014.
While this is good news for our customers, it is contingent upon cooperation and
commitment from the CTA’s labor union partners, labor arbiters, or both.
A truly balanced budget, with no reliance on unsustainable loans from capital funds or the
state, will put the CTA on a track to a solid financial foundation that will allow us to provide
safe, reliable, and efficient service to our customers well into the future.
This financial plan presents two years of truly balanced budgets with no reliance on capital
funds and no reliance on loans; there are no quick fixes or other short-term spending ideas.
Now more than ever, we have a collective obligation to address the structural challenges
that have faced the CTA for decades. We must build a solid foundation upon which this
budget can stand—one that allows us to appropriately invest in and grow our system; one
that allows us to enhance services for our riders; one that allows us to be a catalyst for
economic growth and the development of our communities; one that helps in creating jobs,
not cutting them.
We must move beyond the days of perpetually trying to identify what costs to cut, what
services we can no longer deliver, and what pots of money from which we can borrow to
see us through tomorrow.
We must act now to enact long-term, sustainable solutions that put us in a position to
remain a leader in mass transit by providing the best services at the most affordable rates
we can offer.
Shoring up the budget by implementing changes that will build a foundation for the future
will mean a change in the way the agency has been used to operating. It won’t be easy, but
we have reached the point in time where there is no other option available to us. Everyone
will have to contribute—management and labor alike—but the benefits for our customers
will last for years to come.
This is a budget that looks to the future and lets go of a past that is neither practical nor
rooted in the realities of today’s economy. It will be obvious from this financial plan that
the unsustainable methods employed in budgets of the past have been replaced by new and
sustainable plans that will allow the CTA to thrive and grow to meet the needs of our city
and region.
With the help of labor reform, we can offer a financial plan that is balanced structurally,
that does not rely on loans or transfers from our capital fund and that does not raise fares
or require cuts in service. It is a responsible spending plan and the only path to a future
that will take the agency and its customers where they need to go.
Operating Expenses
The President’s proposed operating expenses are $1.26 billion and $1.29 billion for 2013
and 2014, respectively. Labor expenses are comprised of wages, health care, pension,
workers’ compensation, and payroll taxes for social security (FICA). For the fourth
consecutive year, non-bargained employees will forego wage increases in 2012. This plan
reflects a continuation of this policy in both 2013 and 2014. Labor costs are projected at
$964.4 million in 2013 and $968.4 million in 2014.
The current union contracts expire December 31, 2011. This financial plan assumes no
wage increase for the three-year period of 2012 through 2014. It also assumes the
successful negotiation of labor reforms and work-rule changes, and other cost-cutting
measures that save $160 million each year. Part of these savings will come from
restructuring our healthcare plan to bring it in line with the plans provided by our peers in
the public and private sectors. While the CTA has lowered healthcare costs through such
means as joint purchasing alliances with the City of Chicago and other sister agencies, these
costs continue to increase and plan changes are necessary.
Materials are purchased and used to maintain the CTA bus and rail fleet, rail tracks,
facilities, stations, and fare revenue equipment. As the CTA’s infrastructure, facilities and
equipment age, operation and maintenance costs increase. While the CTA has benefitted
from the recent investments made in its bus fleet, unless the CTA reaches a state of good
repair across its entire system, it will continue to face increased operating and
maintenance expenses. Inflationary pressure increases material costs as well. To help
offset this impact, the CTA continues to implement supply chain improvements that help to
mitigate rising materials costs. All contract bids are reviewed thoroughly before being
awarded to ensure that the CTA is getting the best price possible and that we are
purchasing only the required quantities. Thanks in part to these efforts, the CTA projects
materials costs to rise modestly to $73.6 million in 2013 and $75.9 million in 2014.
The proposed financial plan projects fuel costs to equal $65.2 million in 2013 and $64.8
million in 2014. The CTA mitigates the volatility in fuel prices through the strategic use of
hedging instruments to ensure a reasonable degree of budget certainty. In recent years,
hedging has saved the CTA a considerable amount of money. By April 2011, through a
series of strategic hedges early in the year, the CTA had fixed 79 percent of its estimated
2011 consumption at $3.06 per gallon, resulting in savings over market prices. This
financial plan assumes a continuation of these hedging strategies.
In 2013 and 2014, the CTA projects rail electric power costs to be $25.1 million and $29.6
million, respectively. As with diesel fuel, the CTA uses hedging techniques to mitigate the
impact of severe price fluctuations. In 2011, actual costs are projected to be in line with
budget. Prices are expected to decrease in 2012, then increase slightly in 2013 and 2014,
as a result of a recently negotiated contract. The new contract reflects decreased capacity
prices, which are determined through an auction clearing process conducted by the
Regional Transmission Organization that coordinates the movement of electricity to the
Chicago area.
Funding for the provision of injuries and damages in 2013 is $31.8 million and is
expected to increase approximately one percent in 2014 to $32.5 million. The amount
needed to fund this reserve is based on actual experience, the projected future balance in
the reserve, and the liabilities projected for the following year.
The CTA estimates security services expenses will increase approximately three percent
in 2013 and 2014, bringing the cost of security to $37.9 million in 2013 and $39.4 million in
2014.
Other expenses include utilities, advertising, equipment, software maintenance,
accounting, engineering, legal, banking fees and commissions, interest on the outstanding
pension obligation bond and other consulting services. Other expenses are projected to be
$225.4 million in 2013 and $236.7 million in 2014.
Operating Revenue
System-Generated Revenues
Fare revenue is projected to be $545.9 million in 2013, increasing to $551.9 million in
2014. This plan reflects no fare increase in either year. The two-year plan assumes that
the reduced fare subsidy will be $28 million in both 2013 and 2014, consistent with that
which is expected in 2012.
The CTA continues to focus its efforts on bringing in revenues from areas other than the
farebox, including advertising, charters and concessions. This plan reflects that
revenues in these areas will increase three percent per year as the economy begins to
recover. Revenues are expected to increase to $23.5 million in 2013 and $24.2 million in
2014.
Investment income in 2011 is expected to be lower than historical levels due to reduced
cash on hand and historically low interest rates. Investment income is expected to be $893
thousand in 2013 and $920 thousand in 2014.
Statutory required contribution revenues are forecast to continue to be $5 million per
year. The Regional Transportation Authority Act requires that the City of Chicago
contribute $3 million annually and that Cook County contribute $2 million annually to CTA
operations.
Other revenues are projected to be $27.8 million in 2013 and $28.7 million in 2014. These
revenues are derived from parking fees, rental properties, third-party contractor
reimbursements, fees from filming, a non-capital annual grant from the RTA, and other
miscellaneous revenues.
Public Funding
Public funding through the RTA statutory formula is estimated to be $632.4 million in 2013
and $648.5 million in 2014. These estimates are in-line with the marks adopted by the RTA
Board in September 2011.
The recovery ratio measures the percentage of expenses that a Service Board must pay
against the revenue that it generates. System-generated revenues, operating expenses, and
certain statutory exclusions are used in the calculation. The RTA Act requires the region to
fund 50 percent of its expenses through revenues generated by the RTA and its three
Service Boards. The estimated recovery ratios for the CTA in 2013 and 2014 are 59.9
percent and 59.4 percent, respectively—considerably higher than the requirement.
President’s 2013-2014 Proposed Operating Financial Plan Schedule (in thousands)
Proposed
Forecast Budget Plan Plan
2011 2012 2013 2014
Operating Expenses
Labor $901,392 963,075 964,406 968,406
Savings from Labor Reform and Work Rule Changes - (80,000) (160,000) (160,000)
Material 67,923 71,493 73,638 75,847
Fuel 58,166 66,707 65,230 64,776
Power 30,236 24,977 25,077 29,633
Provision for Injuries and Damages 15,000 31,200 31,824 32,460
Purchase of Security Services 35,988 36,803 37,907 39,423
Other Expenses 197,746 126,036 225,433 236,682
Total Operating Expenses $1,306,451 $1,240,291 $1,263,515 $1,287,227
System Generated Revenue
Fares and Passes $523,660 $540,000 $545,940 $551,945
Reduced Fare Subsidy 28,000 28,000 28,000 28,000
Advertising, Charter & Concessions 19,436 2,802 23,486 24,191
Investment Income 394 867 893 920
Statutory Required Contributions 5,000 5,000 5,000 5,000
All Other Revenue 24,617 27,013 27,823 28,658
Total System Generated Revenue $601,107 $623,682 $631,142 $638,714
Public Funding Required for Operations $574,144 $616,609 $632,373 $648,513
Transfer from Capital - Preventive Maintenance $48,200 $- $- $-
Fare Agreement with State 83,000 - - -
Public Funding Available through RTA 574,144 616,609 632,373 648,513
Total Funding $705,344 $616,609 $632,373 $648,513
Recovery Ratio* 55.17% 59.56% 59.86% 59.35%
Required Recovery Ratio 50.00% 50.00% 50.00% 50.00%
Fund Balance $- $- $- $-
*Recovery ratio is calculated by dividing System Generated Revenues over Operating Expense. The calculation includes in-kind
revenues and expenses for security provided by the City of Chicago, excludes security expense, POB debt service and includes some
grant revenues.
7 Proposed 2012-2016 Capital Improvement Program
Introduction
“The physical properties of cities – scale, proximity and diversity – are their chief
advantage.”
John Norquist, The Wealth of Cities
Former Milwaukee Mayor John Norquist, now a Chicagoan and CEO of the Congress on New
Urbanism, explains with power how great cities have driven human progress. Great cities
are dense. They attract people of energy and talent—in the arts, in science, in commerce—
to live and work in close proximity to one another, in order to share ideas and advance
interests.
If you want to ensure that urban density survives and thrives, you need strong arteries of
mass transit to carry people efficiently and conveniently to work and play, facilitating the
easy interaction of neighborhoods and downtown. Quality mass transit is a lynchpin in the
job-creating, idea-creating, wealth-creating power of great metropolises. Without a
consistent commitment to the investment in the upkeep and improvement of the public
transportation system, it is impossible to fully leverage the natural benefits of the city.
Slow zones on rail cause trips to and from work to last ever longer; crumbling viaducts and
stations are a public eyesore that could jeopardize public safety; aging buses that require
increased maintenance limit the number in service, leading to delays and crowded buses.
For too long, the CTA has borrowed from its future to avoid difficult decisions for its
present. Over the last four years, the CTA has diverted $554 million in capital funds to fill
budget gaps. Decreasing funding from the federal government and state of Illinois and a
formula that provides the CTA only 58 percent of the region’s scarce federal capital
funding, despite having 72 percent of the capital need, have left the CTA in a crisis. This
cannot continue; the debts are now due.
Heeding the call of Mayor Rahm Emanuel, CTA management identified operating
efficiencies to reduce the bureaucracy and protect our precious capital dollars. These
efforts resulted in the reduction of the amount we borrowed from capital funding in 2011.
But that was only the beginning. For the first time in recent years, the CTA will utilize all
available capital funding to reinvest in the system. We will no longer rob Peter to pay Paul.
The days of dipping into the capital funds to cover for operating expenses have ended.
Our commitment to the renewal of the system will allow us to make strategic investments
to improve the customer experience and support the safe, efficient operation of our trains
and buses. We will work with federal, state, and local officials to aggressively identify and
obtain additional funding for capital improvements. We are continuing negotiations with
the city of Chicago to obtain TIF and other funding for transportation projects, since mass
transit is essential to the redevelopment, growth, and quality of life in urban
neighborhoods.
In 2012, we will begin the revitalization of the backbone of our system. The Your Red
campaign is designed to begin the long-overdue process of making improvements to the
rail line that carries 250,000 customers every weekday—nearly 38 percent of our rail
riders. Stations and viaducts on the northern portion of the Red Line are among the oldest
in the system and the stations are not accessible to people with disabilities. Slow zones on
the Dan Ryan portion of the Red Line cause delays that are felt by all riders. The 95th Street
Red Line station, a vital link for the south side, is at maximum capacity. Federal funding
was provided in 2011 for an Environmental Impact Study for the modernization of the
northern portion of the Red Line and Purple Line, as well as for the extension of the Red
Line to 130th Street. We will continue to aggressively pursue funding to make the needed
track and embankment improvements on the Dan Ryan Branch.
The 2012-2016 Capital Plan includes other investments to improve the safety and
efficiency of the system and improve the customer experience. We will continue work on
our rail system in order to repair slow zones; we will continue our Station Renewal
campaign to send “renew crews” to 100 stations in a SWAT-team approach to repairing and
improving the stations; we will continue to make improvements to our information
technology networks and security infrastructure; and we will introduce into normal service
a new series of rail cars and buses that are more comfortable and operate at lower cost, and
overhaul existing trains and buses to ensure they can continue to operate efficiently.
This will be the first year of an exciting new era of the CTA. We will continue to wisely use
available resources and aggressively seek new sources of funding to further our
commitment to renewing and rebuilding our critical transit system.
Five-Year Capital Improvement Program
The table below lists each category of projects in the proposed program. A detailed
description of each project can be found in the section titled Uses of Funds.
CHICAGO TRANSIT AUTHORITY
FY 2012-2016 Capital Program
CTA Board Ordinance
in thousands
Proj #Title 2012 2013-2016 5-Yr. Funding
Bus Projects
Rolling Stock
021.806 Perform Mid-Life Bus Overhaul 22,500 54,427 76,927
031.054 Replace Buses 15,189 150,962 166,151
Sub-Total 37,689 205,389 243,077
Rail Projects
P/W Electric, Signal, Comm.
121.500 Replace/Upgrade Power Distribution and Signals - 68,000 68,000
Sub-Total - 68,000 68,000
P/W Track & Structure
181.500 Infrastructure Safety & Renewal Program 207,000 443,300 650,300
Sub-Total 207,000 443,300 650,300
Rolling Stock
022.903 Perform Rail Car Overhaul & Mid-Life Rehabilitation 82,353 165,687 248,040
132.056 Purchase Rail Cars 470,092 38,047 508,139
Sub-Total 552,445 203,734 756,179
Systemwide Projects
Miscellaneous
061.059 Information Technology 7,100 4,400 11,500
086.500 Equipment and Non-Revenue Vehicle Replacement 5,043 - 5,043
141.273 Rehabilitate Rail Stations 76,563 144,437 221,000
150.028 Implement Security & Communication Projects 47,716 46,000 93,716
301.268 Contingencies 5,916 11,833 17,749
306.001 Program Management 6,667 26,760 33,427
308.002 Bond Repayment, Interest Cost, & Finance Cost 205,484 545,362 750,845
404.500 CMAQ, JARC, UWP & ICE Projects 3,000 12,000 15,000
Sub-Total 357,489 790,792 1,148,281
Support Facilities & Equip.
073.500 Improve Facilities - Systemwide 12,946 90,468 103,414
Sub-Total 12,946 90,468 103,414
Capital Project Total 1,167,569 1,801,684 2,969,252
Marks 1,167,569 2,969,252
Marks/Variance -
Uses of Funds
Fifteen project categories comprise the CTA’s proposed 2012-2016 capital plan. Each
project within these programs is evaluated in an annual review process. Evaluation criteria
include: customer and employee safety, reductions to travel time, increased customer
comfort and convenience, system security, impact on system reliability, compliance with
regulations, and community impact. Rail system projects receive a significantly larger
portion of the proposed capital program funding due partly to the need to maintain an
exclusive right-of-way while the CTA’s buses operate on streets maintained by other units
of government. The capital projects proposed for 2012-2016 and beyond are intended to
address the CTA’s most critical needs for the bus and rail system, customer facilities and
systemwide support.
Project Number: 021.806
Project Title: Perform Mid-Life Bus Overhaul
Purpose of Project: The Bus Overhaul and Upgrade Program will extend the useful life of
the assets through scheduled tasks that will systematically upgrade the mechanical and
aesthetic features of each bus in revenue service.
The CTA plans to spend $76.9 million in 2012-2016 for the Bus Overhaul and Upgrade
Program. Bus mid-life overhaul activities are programmed for $22.5 million in 2012 and
$54.4 million in 2013-2016. Unscheduled maintenance, required by the failure of a bus in
service, disrupts operations, inconveniences customers, and increases operating costs. The
bus maintenance program continues to improve service through regular replacement of
major mechanical components subject to extensive wear such as engines, transmissions,
cooling systems, condenser cores, wheelchair ramps, batteries, suspension systems, and
doors. In addition, during the bus overhaul process, the CTA will retrofit diesel particulate
filters on 430 of the model year 2006 New Flyer buses. A diesel particulate filter is a device
designed to remove diesel particulate matter from the exhaust gas of a diesel engine, thus
lowering emissions. The CTA was awarded a Congestion Mitigation Air Quality (CMAQ)
grant by the Chicago Metropolitan Agency for Planning to fund this filter retrofit initiative.
Description of Proposed Work/Major Elements:
The 2012-2016 Bus Overhaul and Upgrade Program will provide for the ongoing bus
vehicle overhaul efforts to support removal and installation of components including, but
not limited to: engines, transmissions, cooling systems, condenser cores, wheelchair ramps,
batteries, suspension systems and doors. The program will correct critical defects
discovered during inspections of the CTA’s bus fleet. New Flyer buses placed into service in
2006 and New Flyer articulated hybrid buses placed into service in 2008 will be
overhauled and returned to a state of good repair.
Budget Impact: An overall reduction in operating costs. It is more costly to operate and
maintain older, outdated and worn-out equipment.
Alternative: Increased disruptions in service and/or the costly purchase of new buses.
Project Number: 031.054
Project Title: Replace Buses
Purpose of Project: Replace Nova 40-foot buses that were placed in service in 2000.
These buses will have reached the end of their useful service life in 2012 and are due to be
replaced.
Description of Proposed Work/Major Elements:
This project will provide for the engineering, purchase, and inspection of fully accessible,
air-conditioned buses, including a spare parts inventory. Engineering includes
development of specifications, pre-bid engineering meetings, onsite inspections of
prospective bidders and/or their vendors’ plants, inspection of buses during production
and acceptance of vehicles after delivery.
The backbone of the bus system is the bus fleet, and the system’s success depends on the
CTA’s ability to renew, maintain and operate it. The CTA is committed to providing our
customers with the highest quality bus service. Between 2012 and 2016, the CTA will
spend $166.2 million to purchase vehicles equipped with current, proven, heavy-duty clean
propulsion technologies such as the low floor, hybrid diesel-electric buses. These buses
achieve at least 20 percent greater fuel efficiency than standard diesel buses, saving fuel
dollars while promoting cleaner air. The new buses will be ADA-compliant, air
conditioned, and will be technologically innovative. Other propulsion technologies being
evaluated include hydrogen fuel cell and all-electric systems. These new buses will replace
models that entered service in 2000 and will have reached their useful life in 2012. New
buses will meet new EPA emissions standards, thus achieving more stringent clean air
regulations. The entire CTA bus fleet is ADA accessible and air conditioned.
In 2011, the CTA was awarded a competitive FTA TIGGER (Transit Investments for
Greenhouse Gas and Energy Reduction) grant. This grant will provide for the purchase of
two all-electric, battery-powered, forty-foot buses and chargers. A pilot production coach
will be constructed and delivered to the CTA for demonstration prior to commencing with
the production and delivery of the remaining vehicles. Quick-charge stations will be
installed in the selected garage prior to the delivery of the pilot bus. Performance will be
monitored closely by CTA’s Bus Engineering staff. A detailed report on electric bus
performance will be drafted and submitted after a year of operation in service and an
assessment of its viability as an alternate propulsion system will be made.
Electric buses have a range of approximately 30 to 40 miles on a single full charge
depending on duty cycle, loading, and ambient conditions. The vehicles will be used in
shorter runs in CTA’s normal service, which should not require in-service charging.
Installation of wayside charging stations on selected routes will also be considered to allow
extended operation. The CTA continues its efforts to evaluate innovative, next-generation
propulsion technologies to decrease emissions and improve local air quality. The
continued investment in our bus fleet has provided our customers with safe, clean, and on-
time service.
Budget Impact: The bus purchase will decrease maintenance costs and hours needed to
maintain older buses. The new buses will augment the existing fleet and will provide
added capacity to better address the needs of CTA customers.
Alternative: Not purchasing new buses will lead to a continued increase in operating costs,
reduced reliability and decreased service to ever-growing ridership.
Project Number: 121.500
Project Title: Replace or Upgrade Power Distribution and Signals
Purpose of Project: This project will upgrade or replace overloaded and deteriorated
substations for the purpose of assuring reliable power for CTA trains on portions of the
Brown, Red, Green and Orange Lines. The five-year funding program of $68 million will
account for efforts to replace an aging substation at Illinois with a new substation at
Hubbard Street, and rehabilitation of Kimball, Princeton, State, and Broadway substations.
Major replacement work includes new traction power equipment, switch gear, rectifiers,
get-away cables, and transformers. The buildings housing this equipment will receive
masonry repairs, roof replacement, new heating and ventilation systems, lighting, doors,
windows and other necessary equipment.
Description of Proposed Work/Major Elements: Reliable traction power is essential to
provide smooth train operation. Substations contain transformers to convert electric
power from the power company’s grid and supply it to the third rail to propel trains. Many
of the CTA’s substations are beyond their useful life and cannot provide the needed power,
or require redundancy to keep the system operating. The ability to provide reliable service
and to eliminate the risk of fire to old cables and equipment depends on replacing these
aging substations. New substations and related equipment will increase the capacity of the
system and reduce slow zones caused by insufficient power supply.
Prior funding was focused on bringing the Loop signal system and the
Congress/Dearborn/Kennedy Blue Line signal system into a state of good repair. The Loop
signal system construction reached substantial completion in July 2011, and the Blue Line
signal system work is over 90 percent complete with final contract acceptance expected at
the end of 2011.
The new funding program will provide for the upgrade of the traction power system at key
locations. Funding of $23 million for 2014 will support construction of a new substation at
Hubbard which replaces the old substation at Illinois Street, and will rehabilitate Kimball
substation; future funding of $45 million will rehabilitate State, Princeton and Broadway
substations in 2016.
Budget Impact: Benefits include lower maintenance costs, more efficient power usage,
improved reliability of service with associated operational costs, opportunity to increase
speeds and reduced headways, and elimination of risk of fire damage prone to old cabling
and old equipment in existing substations.
Alternative: Maintain existing substations and accept increasing maintenance costs and
service delays.
Project Number: 181.500
Project Title: Infrastructure Safety and Renewal Program
Purpose of Project: The CTA system is comprised of 35.8 miles of elevated track, 35 miles
of at-grade track, and 18.25 miles of embankment. Numerous tunnels, viaducts and
retaining walls also require significant maintenance to keep them in a state of good repair,
and many are in need of replacement.
Some sections of the CTA elevated system date back to 1897, while other rail lines were
constructed in the early or middle 1900s. Currently, 26 percent of rail structures have
exceeded their useful life of 80 years. The replacement cost for obsolete structures is
estimated at $985 million and, within 10 years, this cost is estimated to increase to
approximately $1.9 billion if no major capital investments are made.
The integrity of these rail structures is declining at an increasing rate, the effect of which
causes the need for structural remediation work and the creation of new slow zones. The
implementation of slow zones is an interim measure meant to ensure the safety of CTA
customers until the necessary repairs are completed. On-going steel repairs are necessary
in order to maintain safe and serviceable conditions on the elevated structures. The
infrastructure condition has declined to the point that further deterioration may
compromise service and operation of the system. For example, along the Purple Line,
annual freeze-thaw cycles have deteriorated the concrete viaduct bridges and retaining
walls to the point where many of the spans are on temporary shoring and slow zones have
been imposed for safety.
Work on slow-zone elimination typically involves replacing aging rail ties and tie plates
and, at times, whole track replacement. CTA labor, as a regular and ongoing activity, tamps
rail tracks, an aspect of maintenance that realigns track and stabilizes ballast support of the
tracks. With these measures, the CTA has reduced the number of slow zones across the
system, but much work remains to be done.
The CTA continues to commit resources to the elimination of slow zones, but significant
work remains necessary. Some of the track in the worst condition on the system is located
on the Dan Ryan Branch of the Red Line. This line was originally constructed in 1969 and
serves, on average, 57,000 weekday passenger boardings. The Red Line carries 38 percent
of all CTA rail riders. The entire length of this branch of the Red Line is approximately 10
miles long.
While ridership on the rest of the Red Line is growing at 2.4 percent to date, ridership on
the south section of the Dan Ryan is declining by 3 percent per year. Customers are
negatively impacted by consistently slow trains. Despite the efforts of in-house
maintenance forces, slow zones are projected to increase to 65 percent increasing the
length of the trip from 95th Street to 18th Street by 10 minutes.
Description of Proposed Work/Major Elements: The Infrastructure Safety and Renewal
Program will include replacement of ties, running rail, third rail, ballast, and drainage
systems. Structure rehabilitation will include embankments, tunnels, viaducts and
retaining walls.
The CTA is programmed to spend $207 million in 2012 to repair the right-of-way
throughout the CTA’s system. Investments will be targeted to address the most critical
needs. One of the highest priorities for the CTA will be the Dan Ryan Branch of the Red
Line.
Budget Impact: Eliminates or significantly minimizes structural slow zones throughout
the system, increasing ridership and revenue and lowering maintenance costs.
Alternative: Continue to maintain in a piecemeal fashion via CTA forces while increasing
slow zones; speed deterioration of ties and flange angles. Without a complete track, ballast,
and drainage system renewal, the CTA estimates Dan Ryan slow zones will cost $33 million
over the next five years. In addition, it will become difficult to maintain safe and reliable
service on the Dan Ryan Branch beyond the next five years without a complete renewal.
Project Number: 022.903
Project Title: Perform Rail Car Overhaul and Mid-Life Rehabilitation
Purpose of Project: Funding will provide for an ongoing overhaul program. Maintenance
costs will stabilize as more rail cars are cycled through the Mid-life Overhaul Program. The
3200-series cars are projected to receive a “D” or mid-life overhaul. These cars are
currently 16 to 18 years old and are past due for this D-level overhaul.
Description of Proposed Work/Major Elements: The development and implementation
of a Rail Car Maintenance Plan is required by the Urban Mass Transportation (UMT) Act.
The UMT Act was amended in 1982, mandating a maintenance plan for vehicles funded
through the Urban Mass Transportation Administration (UMTA) grant process and
operated by the CTA.
The basic premise of the Rail Car Maintenance Plan is that certain maintenance actions
must be performed on CTA’s rail cars at certain intervals. Deferring maintenance from
manufacturer and experienced-based prescribed schedules will result in car deterioration,
unreliability, and eventually a reduction in service life.
The Multi-Level Scheduled Maintenance Program establishes four levels of rail car
maintenance activities to be performed at specific intervals:
Level “A” – Routine Periodic Inspection (Operating Funds)
Level “B” – Annual Inspection (Operating Funds)
Level “C” – Quarter Life Rehab (Capital Grant)
Level “D” – Mid Life Rehab (Capital Grant)
The Level “A” activity is comprised of a routine inspection performed on a regular, periodic
basis approximately every two months throughout the year. The Level “B” activity is a
more comprehensive inspection performed on each revenue rail car approximately once
per year. The Level “C” activity is an overhaul effort designed to be performed on each rail
car at approximately six- to seven-year intervals. This maintenance activity includes major
component rebuild and needed repairs to the car body. The Level “D” activity is designed
to be performed as a 12- to 14-year mid-life rehabilitation and could also be done as a life
extending rehabilitation at the end of rail car life. This maintenance activity would involve a
major rail car rebuilding program that would include major component rebuild or
replacement and a complete car body refurbishment. The finished product will return the
rail car to nearly-new car condition.
The 2012-2016 CIP will provide funding for a multi-year overhaul program to the 3200-
series rail cars. The 3200-series consists of 258 rail cars, which are projected to receive a
mid-life (“D”) rehabilitation. Work will consist of some of overhaul of propulsion systems,
trucks and couplers, and replacement of other major systems such as auxiliary power
supply, door operators and air comfort. The overhaul will update the passenger
information system with new LED destination signs and will include a new public address
system. A new Automatic Vehicle Maintenance system will be installed that will transmit
odometer and fault information via WiFi at the rail yards. Interior panels, lighting, flooring,
and seats will be replaced and/or refurbished to enhance customer comfort.
The rail overhaul program helps ensure that the CTA’s rail fleet remains in a state of good
repair to provide a quality ride for customers. The Rail Car Overhaul program reduces
operating costs and enhances reliability. Without quarter-life and mid-life overhauls, rail
vehicle maintenance costs would be far more than the current levels over the expected
twenty-five year life of each car. The proposed 2012-2016 capital program allocates $248
million in projected funding during the next five years for the systematic maintenance and
upgrade of the CTA’s rail fleet.
Budget Impact: An overall reduction in operating costs. It is more costly to operate and
maintain older, outdated and worn out equipment.
Alternative: A mid-life overhaul is a necessary component of a vehicle’s Preventive
Maintenance Program.
Project Number: 132.056
Project Title: Purchase Rail Cars
Purpose of Project: Purchase an additional 300 rail cars (5000-series) to replace a portion
of the 2600-series rail car fleet and to meet expanded service needs. These rail cars are the
remaining 300 of a contract order totaling 706 cars. The contract order consists of the
following: base order of 206 cars, option one: 200 cars, option two: 216 cars, and option
three: 84 cars.
Description of Proposed Work/Major Elements: The replacement of the 2200-, 2400-,
and 2600-series rail cars is necessary due to the age and deteriorated condition of these
cars. The 2200-series rail cars have been in service for 39 years, which is well beyond their
25-year design life; the 2400-series have been in service for 30 years; and the 2600-series
have been in service for an average of 27 years. Replacement of these rail cars will provide
the CTA with modern, updated vehicles that will decrease maintenance and operating costs
while enhancing customer comfort. The new cars will have sliding doors wide enough to
accommodate wheelchairs.
Testing of the new 5000-series rail cars was successfully completed in 2011. By the end of
2016, 706 new rail cars are scheduled to be in place resulting in a net increase to the fleet
of 60 cars. Several new features will be introduced as part of this roll-out.
Cameras and Computers
The new cars are equipped with security cameras that can record all activity inside the
train, which can help to deter crime and better ensure a safe ride.
Upgraded communication systems make it possible for a train’s operator to see activity in a
car when help is requested. This helps provide more expedient assistance in the event of
an emergency. Event Recording rail cars also have event recorders that keep logs of
hardware, software and operational conditions, similar to the so-called “black
box” standard in modern aircraft.
Regenerative Braking Technology
In older model rail cars, the kinetic energy created when a train brakes is dissipated as
heat; with new braking technology, much of this energy is returned to the third rail to help
power other trains, thus reducing energy consumption.
New Diagnostic Systems
Using a digital display, these systems will alert a train operator when an equipment failure
occurs.
Design and Convenience
A new seating layout with added emphasis on wider aisle space provides a similar number
of seats as the CTA’s most recent rail cars while adding capacity and making it easier to
move into and out of the car. The 5000-series cars have two wheelchair positions to
provide additional access to people with disabilities, with open space to allow for easier
ingress and egress. The previous series of rail cars, if accessible, was equipped with only
one wheelchair position. Also, the new cars have an active suspension system that helps to
better align the interior car floor with the height of station platforms in a variety of
conditions. New digital train destination signs are larger and display a train’s destination
more vividly. An electronic map display posted in each car will also show the train’s
location with respect to the rest of the rail system. New flooring surfaces in cars not only
provide a safe surface to walk on, but now feature phosphorescent (glow-in-the-dark)
strips to help customers find a pathway out in case of an emergency.
New 5000-series rail cars will replace 2200-, 2400-, and 2600-series cars, which have
exceeded their FTA standard service life of 25 years. The total project cost for the purchase
of 706 rail cars is $1.138 billion. FY 2012-2016 allocates funds of $78.1 million for the
purchase of Base (206 cars) and Option 1 (200 cars) of the new 5000-series cars. In
addition, the FY 2012-2016 program allocates $430 million to provide for the purchase of
300 extra new rail cars from the Options 2 and 3 orders. These cars will replace a portion
of the 2600-series rail cars and will also provide for expansion of fleet. Every eight-car CTA
train effectively takes an average of 600 passenger cars off the road; for the sake of
mobility and air quality, it is especially important to have a reliable, modern rail fleet.
Budget Impact: The rail car purchase should decrease the maintenance costs and hours
needed to maintain the older rail cars.
Alternative: Not purchasing the rail cars will lead to continued increased operating costs,
reduced reliability, decreased availability and service to ever growing ridership.
Project Number: 061.059
Project Title: Information Technology
Purpose of Project: The purpose of the laptop and PC replacement is to provide service to
business units by replacing PCs and laptops at the end of their useful life.
Description of Proposed Work/Major Elements: The CTA operates over 1,500 desktop
computers that link into Local Area Networks (LANs) for efficient data transfer and team
analysis. Computer systems over time reach their capacity and therefore need to be
updated or replaced. Desktop systems should be scheduled for replacement at five years,
and servers and routers at seven years. Existing information systems demand new
applications and will be best met by systems with faster speed and greater reliability and
efficiency. The proposed CIP allocates $7.1 million in 2012 for software and hardware
upgrades. Funds will also provide for the initial phase of a Data Warehousing and Business
Intelligence need at CTA.
Budget Impact: CTA anticipates minimal operating budget impact from this project. The
cyclic PC/laptop replacement efforts will increase employee productivity, but this is not
reflected directly in the operating budget.
Alternative: Employees can continue using the obsolete PCs and laptops that exist today.
This alternative, however, will put the productivity of all PC users at risk and dramatically
increases costs of maintenance and service.
Project Number: 086.500
Project Title: Equipment and Non-Revenue Vehicle Replacement
Purpose of Project: Purchase equipment needed to maintain buildings, grounds, and
structures and purchase, inspect, and place into service a variety of non-revenue vehicles.
This project is funded with federal formula funds and non-federal local match.
Description of Proposed Work/Major Elements: This project will provide for the
purchase of capital-eligible tools that will be used to repair rolling stock and other
infrastructure elements that are critical to supporting bus and rail transit operations. Non-
revenue vehicles to be purchased will replace vehicles that are obsolete. Non-revenue
vehicles are essential for maintaining efficient bus and rail operations. Examples of
vehicles now in need of replacement include vehicles for bus operations supervision,
bucket vans, tractor loaders and stake body trucks.
Budget Impact: N/A
Alternative: Not purchasing equipment and non-revenue vehicles will reduce the CTA’s
ability to repair rolling stock and infrastructure, leading to increased service disruptions.
Project Number: 141.273
Project Title: Rehabilitate Rail Stations
Purpose of Project: The scope of this project will rehabilitate rail stations systemwide.
Upgrades of rapid transit stations will include amenities such as lighting to provide greater
security and decrease vandalism, repair and reconstruction of the station house, stairs,
flooring, platforms, and canopies. Elevators for accessibility and escalators will be
provided where needed and based on funding availability.
Description of Proposed Work/Major Elements: The CTA has initiated a Safe and Dry
program, which aims to eliminate water seepage by grouting in subway stations to prevent
water leaks, renovating sewer and drainage work, and repairing leaking station roofs and
canopies at Loop stations, Blue Line stations, North Red and Purple line stations, and
Dearborn and State Street subways.
Another program, the Station Renewal Initiative, focuses on addressing the appearance and
condition of each station in addition to regular maintenance efforts. Station Renewal teams
consist of painters, sheet metal workers, electricians, carpenters, and other trades who
tackle each station’s repair needs. Work performed includes power washing, repairing and
preparing columns for painting, graffiti removal, and repairs to platforms, doors, and
canopies. Also, work includes the installation of roof lashing, gap filler, tuck pointing,
concrete patching, minor electrical work, and floor gutter and drain cleaning. Once the
Station Renewal effort is completed at a station, the station will be much brighter and have
a cleaner appearance for CTA customers.
The CTA is proposing to make improvements, subject to the availability of funding, to the
North Red and Purple Lines. The purpose of the Red and Purple Modernization (RPM)
project is to bring this existing crucial transit asset into a state of good repair, while
reducing travel times, improving access to job markets, responding to shifts in travel
demand, better utilizing existing transit infrastructure, and providing access to persons
with disabilities. The RPM project would also support the area’s economic development
initiatives. RPM is one part of the CTA’s effort to extend and enhance the entire Red Line as
part of the Your Red program. The CTA plans to invest capital funding in key infrastructure
along this portion of the Red Line to extend the useful life of existing stations and
structures, while planning for major redevelopment continues.
Funds from 2011 have been directed toward preparing a Tier 1 EIS for the North Red and
Purple Line Modernization. Transit agencies seeking FTA financial assistance for major
capital transportation projects where implementation is expected to have significant social,
economic, and environmental impacts on the community are required to complete an EIS.
The EIS is a full-disclosure document that details the process through which the project
was developed, including considerations of a range of reasonable alternatives, analysis of
the potential impacts resulting from alternatives, and compliance verification with other
applicable environmental laws and executive orders.
One of the CTA’s most recent station renovations is the Cermak-Chinatown Red Line
Station. The American Recovery and Reinvestment Act funded the renovation of this
station. The Cermak-Chinatown Red Line Station was completed in early 2011 and is fully
accessible per ADA guidelines. This new station has many improvements that benefit our
customers, including a station house, elevator, escalator, upgraded entrance on the south
side of Cermak Road, auxiliary entrance on Archer Avenue, bike racks, communication
equipment, security cameras, improved lighting and landscaping, public art, and signage,
including Braille.
Renovation continues at the Grand/State Station on the Red Line. This major renovation
project is being performed by CDOT with a grant funded by the FTA and IDOT. Station
improvements include the expansion of the mezzanine, a new customer assistant kiosk,
more turnstiles and farecard vending machines, new floors, stairs, escalators, and tile work.
Security features will include brighter lighting, new audio and visual public address
systems, and new security cameras. The station will be fully accessible per ADA guidelines.
A new station is being constructed at Morgan and Lake Streets by CDOT with a grant
funded by the FTA. The new station will be located between Ashland and Clinton stations
on the Green and Pink Lines. This station will provide convenient access to rail for the
residents and workers of the booming West Loop area. Customers will have direct access to
the Loop, Oak Park, and parts of Chicago’s West and South Sides. This station will feature a
station house at street level with turnstiles and farecard vending machines, bike parking,
and a transfer bridge between platforms. The station will be fully accessible per ADA
guidelines.
At Oakton Street Station near Skokie Boulevard, a new station is being constructed on the
Yellow Line. This station will provide easy, rapid transit access to downtown Skokie and
the Illinois Science and Technology Park. The Village of Skokie is managing the project and
funding for this station is being provided by a grant from the FTA and IDOT. New
entrances from Oakton Street and Skokie Boulevard, near Searle Parkway, will create
greater customer access to the station. The station will feature wide platforms, full canopy
coverage, customer assistant kiosks, turnstiles, farecard vending machines, security
cameras, and bike racks. The station will be fully accessible per ADA guidelines.
Budget Impact: Rehabilitation of rail stations will reduce maintenance costs and increase
ridership. Without improvements, there will be continued degradation of structure that
will lead to increased maintenance costs and compromised service in the future.
Alternative: Continued increase in operating costs, reduced reliability, decreased
availability and service to ever-growing ridership, and risks to customer safety. If the
North Red and Purple Lines are not reconstructed, existing maintenance funding will not
adequately keep up with necessary repairs to keep all stations in operation.
Project Number: 150.028
Project Title: Implement Security and Communication Projects
Purpose of Project: Security and safety are of paramount concern for the CTA.
Professional security assessment of the CTA system identified priority investments in
equipment and infrastructure to protect the public and CTA employees. Due to the
sensitive nature of the effort, specific projects are not identified in this document. This
funding will enhance the Chicago Police Department’s efforts during patrol of rapid transit
routes within the City of Chicago through the use of visible, unpredictable deterrence. Due
to the sensitive nature of the effort, specific projects are not identified in this document.
Description of Proposed Work/Major Elements: Purchase and install equipment and
systems to strengthen security of transit assets and to ensure safety of systems and
customers. Implement security strategies to conduct targeted surveillance, control access
and stop intrusion. Support enhanced command and control systems to facilitate incident
response.
In June 2011, the CTA announced plans to double the number of security cameras across
the rail system. Currently, there are nearly 1,500 security cameras installed and operating
on rail stations and platforms. The additional 1,500 cameras will ensure comprehensive
coverage, capturing many images that would be missed under the current, partial
deployment. Each camera provides a live feed to the CTA Control Center and to the City’s
Office of Emergency Management and Communications. Images captured from CTA
security camera footage have been used by police to solve both CTA-related crimes and
crimes that have occurred in the vicinity of CTA buses and rail stations.
In addition to completing installation at stations, security cameras will be added to CTA rail
cars, although this initiative is still in its early stages. The new 5000-series rail cars will
arrive already equipped with multiple cameras. The CTA’s new rail cars, which are
currently being tested, are equipped with enhanced security features, including digital
video surveillance cameras, allowing operators to view the interior of cars, an active
passenger intercom, and video recorders, which law enforcement will be able to access
remotely. The new train cars are also equipped with a state-of-the-art event recorder
system to record all aspects of car and cab signal operation providing a record in case of
unusual occurrences. Retrofitting the existing fleet will be a multi-year process but will
vastly enhance the CTA’s ability to capture images to share with law enforcement.
Miles of fiber optic cable meet communications and data processing needs, including
operation of the fare-collection system at stations. The fiber optic installation project to
upgrade the communications backbone throughout the system is still ongoing. Train
control systems, communications infrastructure, and access control contribute to a safe
environment for customers and system employees. However, much remains unfunded and
the CTA will continue to pursue additional funding to meet the critical need of providing
security for customers.
Previously, the CTA was provided with $10 million to enhance its security and surveillance
network by expanding camera coverage at its rail stations and $14 million to cover the rail
yards. The new system integrates state-of-the-art, high-definition digital cameras, which
are capable of capturing definitive facial features and displaying six times the detail of
analog cameras. These cameras across the CTA’s rail system make real-time video available
to the CTA’s Control Center, the Chicago Police Department, and the Office of Emergency
Management and Communications. This project is a continuation of the CTA’s efforts to
implement security systems at rail stations, rail facilities, yards, and along all rail rights-of-
way.
In 2012, the CTA proposes to spend $47.7 million on security with funds from its annual
Homeland Security grant, as well as new state funds, to install cameras at stations and
yards, and the Radio Frequency Identification program. Future funding of $46 million will
be made available through 2013-2016 to provide adequate security for the riding public
and for CTA assets.
Budget Impact: The impact of investing in security equipment is realized when more
customers choose to ride buses and the train system rather than driving to their
destinations.
Alternative: None
Project Number: 306.001
Project Title: Program Management
Purpose of Project: This project funds the services of the program management team who
serve as an extension of CTA staff in planning and management of CTA’s Capital
Construction Program.
Description of Proposed Work/Major Elements: Program management scope of work
includes the following: Development of project master plans (PMPs) to define initial work
scope, schedule and budgets for different types of capital projects; creation of accurate cost
estimates, schedules, and implementation plans to deliver projects; assisting CTA
engineering in coordination and review of design plans and specifications; maintaining up-
to-date asset information and developing project requests for the capital plan. Program
Management staffs assist CTA with various grant applications and provide specific planning
activities such as studies, implementation of a web-based program management system,
facilitation of an infrastructure accessibility task force and other special strategic initiatives
and projects. Contracting for these services eliminates the need for the CTA to add or
reduce staff as construction levels change over time.
Budget Impact: Implementation oversight, change management, cost controls, reporting.
Alternative: A program management team consists of core management staff and
additional toolbox staff that are scalable as demanded by project and strategic initiatives.
Project Number: 308.002
Project Title: Bond Repayment, Interest and Finance Cost
Purpose of Project: Provide for debt service and the cost of issuance of bonds, notes and
other indebtedness incurred by CTA. This project is funded with federal formula funds and
non-federal local match.
Description of Proposed Work/Major Elements: This project will provide for the
payment of principal and interest costs associated with financing the bond series issued in
2004, 2006, 2008 and 2010. These bonds fund improvements to CTA’s infrastructure,
including the replacement of signal systems in various subway tunnels. It will also support
the new 5000-series rail car purchase and other capital projects. These projects will help
the CTA continue to meet the dynamic needs of a growing and interdependent region.
Budget Impact: N/A
Alternative: Reduce rail and bus service, reduce personnel, and increase fares.
Project Number: 404.500
Project Title: CMAQ, JARC, UWP and ICE Projects
Purpose of Project: Provides for various demonstration projects and service
improvements and initiatives.
Description of Proposed Work/Major Elements: CMAQ projects contribute to regional
air quality; JARC projects are intended to support job access or reverse commute
initiatives; and ICE projects are those selected through a competitive process, which
demonstrate innovation and coordination, or which enhance transit service. Planned
funding through the regional UWP assists the CTA in developing the regional
Transportation Improvement Plan (TIP) and the State Transportation Improvement Plan
(STIP), as required under funding regulations.
Budget Impact: These various funded projects provide for enhanced service
improvements.
Alternative: None.
Project Number: 073.500
Project Title: Improve Facilities Systemwide
Purpose of Project: This project will provide for a transit improvement program to repair
or replace facility deficiencies. These facilities must be kept in a good state of repair in
order to allow efficient performance of maintenance duties on the CTA rolling stock and
right-of-way, and to serve the needs of the CTA’s customers.
103rd Garage Air Handling Unit
Description of Proposed Work/Major Elements: Systemwide support elements are
essential to providing safe, on-time transit service. The CTA has seven active bus garages,
10 rail terminals, 17 park-and-ride lots, 111 bus turnarounds, and a variety of other
maintenance and support facilities. Both bus and rail operations depend on system support
to continue providing service to CTA’s customers.
The CTA has extensive, aging support facilities that require repair and replacement.
Without adequate facilities to repair buses, service cannot be guaranteed, employee safety
is compromised by having poorly maintained facilities, and the ability to effectively
maintain CTA vehicles and to provide revenue service is hampered. These facilities must
be kept in a state of good repair in order to allow for efficient performance of maintenance
duties.
Name of Facility Year Built Age Current Need
Archer Garage 1909 102 Not in Service
Forest Glen Garage 1957 54 Requires mid-life overhaul work
Kedzie Garage 1983 28 Some systems work needed
North Park Garage 1950 61 Requires mid-life overhaul work
103rd Garage 1986 25 Requires boiler and HVAC upgrade
Chicago Garage 1993 18 Some systems work needed
74th/Wood Garage 1993 18 CTA installing Building Automation System (BAS) to save energy
77th Garage
Unit 1 1908 103 Life extension or replacement needed
Unit 2 1908 103 Life extension or replacement needed
Unit 6 1970 41 Requires mid-life overhaul work
Unit 10 1960s ~45 Requires mid-life overhaul work
South Shops (Bus) (Unit 7 demolished in 2009)
Unit 3 1908 103 Life extension or replacement needed
Unit 4 1908 103 Life extension or replacement needed
Unit 9 1970 41 Requires mid-life overhaul work
The CIP proposes to spend $12.9 million on facility improvements in 2012, including
upgrades to various support facilities throughout the system. A total of $90.5 million has
been allocated in 2013-2016 to construct or improve the CTA’s bus and rail facilities.
The CTA has allocated $28.9 million to replace the non-revenue 61st Street rail shop that
was demolished in 2009. This project provides funding for the design and rebuild of the
demolished 1890s facility that was used to service non-revenue rail equipment. The new
facility provides enclosed storage for sensitive equipment. In addition, the new facility will
allow for the maintenance and repair of power and way equipment, tampers, cranes, tie
inserters, and snow fighting equipment that are critical to operations.
Bus and rail facility improvements also include upgrades to bus hoists, roofs, pits, boilers,
masonry and window repair, overhead doors, electrical service, fire alarm systems,
plumbing, heating, ventilation, and air conditioning systems.
Budget Impact: An overall reduction in operating costs. Maintained facilities kept in a
state of good repair will reduce operating expenses for costly repairs.
The graph compares the capital funding programmed by broad asset categories. The
capital program is inherently varied, as projects require a commitment of funding when
they reach the construction or delivery stage. The graph compares the make-up of the
previous six years with the funding programmed for the five-year program included in this
CIP. The fleet category represents programming for bus and rail fleets; the infrastructure
category includes all construction projects; the operating offset category represents the
portion of the capital program used to support operating budget activities; and the
financial category includes funding to support the capital bond program, as well as for
other long-term financial mechanisms such as bus lease and purchase arrangements.
The flow of capital asset replacement or rehabilitation varies widely from year to year,
resulting in an irregular funding level for asset categories. The 2007-2009 funding shows
the effect of a significant initiative to reduce slow zones on the rail system, with a heavy
emphasis on infrastructure funding and a lower level for fleet investment. The 2010 spike
in funding for the fleet demonstrates the major commitment needed for the purchase of the
5000-series rail cars. In this CIP, fleet funding shows an increase in 2012, reflecting the
beginning of mid-life rehabilitation for the 3200-series rail cars as well as funding for
replacement of obsolete railcars. Financial instruments are lower in 2010-2011 as a result
of a bond restructuring completed in 2010. The financial category shows a net increase in
2012-2016. CTA bonds issued in 2005 are retired, and this is offset by the start of
payments on the bonds issued in 2010.
Sources of Funds
On September 30, 2009, SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users) expired without enactment of a new, six-year
reauthorization program. In order to avoid a halt in the Federal-Aid Highway Program,
Congress has enacted successive short-term interim authorizations: the first extended
SAFETEA-LU’s Federal Fiscal Year (FFY) 2009 funding levels through the end of October
2009; the second, enacted in late October 2009, extended FFY 2009 funding levels through
December 18, 2009; and the third extended FFY 2009 funding levels through February 28,
2010. On March 18, 2010, President Obama signed the HIRE Act, which included an
extension of surface transportation programs through December 31, 2010, restored the
SAFETEA-LU rescission, and established tax incentives for job creation. The fifth extension
continued through September 30, 2011. On September 16, 2011, the president signed the
FAA/Surface Transportation Extension Act, which included a sixth extension of the surface
transportation program through March 31, 2012.
The federal executive branch, the House of Representatives Transportation and
Infrastructure Committee, and the United States Senate Environment and Public Works
Committee have all developed proposals for reauthorization of a transportation program.
While differing significantly, each proposal continues the provision of funds from the
Highway Trust Fund on a formula basis for allocation to the states. The federal executive
branch incorporated a reauthorization blueprint in its 2012 budget proposal.
The federal executive branch blueprint proposes $50 billion of upfront investment in
transportation, a $30 billion infrastructure bank commitment, and aggregate spending over
a six-year period of $556 billion. The House Committee proposal (July 2011) calls for a six-
year transportation program totaling $230 billion, an average decrease of 32 percent from
SAFETEA-LU. The Senate Committee released an outline of a proposal (July 2011) that calls
for a two-year reauthorization totaling $109 billion, maintaining the current funding level
and requiring approximately $12 billion of funds from sources other than the Highway
Trust Fund. There can be no assurances that any of these proposals will be implemented,
and the ultimate decision regarding reauthorization of SAFETEA-LU will require agreement
between both branches of the federal government. Extension or reauthorization could be
at lower amounts and for shorter periods than have previously occurred.
The federal funds available under a successor to SAFETEA-LU will require a substantial
amount of non-federal, matching funds (local share)—between $300 and $400 million—to
fully utilize the federal formula funds. Additional funds will also be required to match
federal New Starts or proposed federal infrastructure funds for new lines and extensions,
or major rehabilitation of existing lines.
The current State Transportation Series B Bond fund was appropriated under two
legislative programs: Illinois Jump Start, which was appropriated in 2009, and Illinois Jobs
Now, which was appropriated in 2010. The CTA’s share from both legislative programs
totals $1.395 billion. The State of Illinois has authorized Illinois Jobs Now, which includes
funding for mass transit agencies to replace, upgrade, and enhance infrastructure
systemwide. This program provides for state funding over a five-year period, which began
in 2010 and ends in 2014. In 2010, the CTA received an authorization of $253.7 million
under this program. The CTA anticipates an authorization for the years 2012-2014 of the
CIP totaling $1.14 billion. The remaining funds for the State Transportation Series B Bond
program have yet to be authorized and, at this time, are not available to the CTA.
Like the federal program, state road construction funds continue to be appropriated by the
legislature. However, unlike the federal program, when a state transit program expires, all
transit funding is stopped. This start-and-stop approach makes it much more difficult to
plan and implement a capital program.
The State Bond funds shown in the table below include the remaining three years of a five
year state bond program. The CTA received the first year (2010) of the five-year state bond
program funding in January 2011. The program is expected to continue through 2014. The
following table details the funding sources supporting this CTA Capital Improvement
Program.
CTA Bonds
The CTA faces significant capital needs. The agency has $2.9 billion of projects it hopes to
fund through 2016 and another $7 billion in unfunded needs. The CTA continues to issue
capital bonds to provide additional funding for essential capital activities to accelerate
funding to meet prioritized unmet capital needs.
Some projects funded with capital bonds are:
. Purchase of Buses
. Purchase of Rail Cars
. Bus & Rail Car Overhaul
. Replacement of Signals – Various Lines
. Track and Structure – Loop Ties
The Series 2011 bonds will provide for the purchase of an additional 300 5000-series rail
cars.
In 2006, the CTA entered into a contract for a base order and option one to purchase 406
rail cars with an option to purchase an additional 300 cars. The CTA has executed Options 2
and 3 to purchase the remaining 300 rail cars. In 2010, the CTA issued Sales Tax Revenue
Bonds to provide funding for the first 406 railcars. The CTA will also issue a combination
of Sales Tax and Capital Grant Revenue Bonds to fund the remaining 300 rail cars. The cost
for the 300 rail cars is approximately $430 million.
Substantial reductions in the federal formula program and the uncertainty with the State
Transportation Bond program have substantially hindered CTA’s efforts to fund the
replacement of obsolete rail cars in the service fleet. Issuance of the proposed bonds will
allow the CTA to immediately access future federal funding for its capital improvement
programs and further reduce future capital project costs. Specifically, the proposed bond
issuance will allow the CTA to complete the contract order for a total of 706 rail cars which,
when placed into service, will represent a renewal of approximately 53 percent of the rail
fleet.
CTA’s customers will experience the benefits of capital investment through improved
service quality, speed, and reliability.
Capital Grants
IDOT Grant Initiative
The CTA is currently in the process of obtaining a multi-year grant agreement with the
Illinois Department of Transportation (IDOT) to provide funds for the rehabilitation of
CTA’s Red Line from the 95th Street rapid transit station on the south to Howard Street
station on the north, as well as the Linden Purple Line station. Much of the infrastructure
on the Red and Purple Lines is significantly past its useful life and needs major
improvements to eliminate slow zones, upgrade stations, and improve track and rights-
of-way. Approval of this multi-year grant will also support initial investments for the
CTA’s Red and Purple Line Modernization project.
Competitive Grant Opportunities
Throughout 2011, the FTA offered several competitive grant programs, including
Alternatives Analysis, Bus Livability Program, Clean Fuels Program, Innovative Transit
Workforce Development Program, Public Transportation Research, State of Good Repair,
and Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER).
With an ever-growing need for capital funds to move vital projects forward, the CTA
continues to aggressively pursue these opportunities. This year alone, the CTA has
submitted 20 applications that total approximately $141 million. As additional
opportunities arise, CTA will apply for grant funding.
The CTA has requested funding for a variety of projects, including the following:
Western Avenue Corridor Bus Rapid Transit
Alternatives Analysis is a funding program provided by the FTA that assists in the
evaluation of modal, multi-modal alternatives, and general alignment options to address
transportation needs in a defined travel corridor. A total of $25.7 million was made
available nationally for the Alternatives Analysis Program. The FTA announced funds of
$1.6 million awarded to the CTA to provide for an alternative analysis study of the 21-mile
Western Avenue corridor between Howard Street on the north, Western Avenue on the
west, Ashland Avenue on the east, and 95th Street on the south. This study will identify and
study various technology and corridor alternatives in the study area.
Chicago Lakefront Corridor
In October 2011, the FTA announced $2 million for an Alternatives Analysis Planning Grant
for the Chicago Lakefront Corridor. This analysis will determine the feasibility and
appropriate level of investment for the provision of high capacity transit connections in the
24-mile linear corridor spanning from Howard Street to 103rd Street. The Lakefront
Corridor currently has high levels of bus service and ridership. The primary focus of the
alternative analysis study will be to develop bus service options and facility improvements
to increase travel speeds and reduce operating costs. The study will identify and take into
account various technology and corridor alternatives in the study area, including
traditional bus, express bus, bus rapid transit, and rail modes if appropriate. All modes will
be compared to the current network to evaluate ways of improving user benefits including
trip speed, better connections, and attracting new ridership. The study area contains a
population of 555,823 residents and an employment base of 503,338 workers.
Jeffery Bus Rapid Transit
The FTA announced the availability of discretionary Section 5309 Bus and Bus Facilities
grant funds in support of the Department of Transportation’s Livability Initiative, the ‘‘Bus
Livability Program.” The Bus Livability Program makes funds available for public transit
providers to finance capital projects to replace, rehabilitate, and purchase buses and
related equipment and to construct bus-related facilities. The CTA was awarded $11
million for the Jeffery Bus Rapid Transit (BRT) project. The overall objectives of the Jeffery
BRT Pilot Project are to provide more rapid and reliable transit service and to improve
residential and employment connections for everyone who lives, works and relies on bus
service in the Jeffery Corridor.
Wilson Red Line Station, Accessibility Improvements
In October 2011, the FTA announced $6 million to fund accessibility improvements at the
Wilson Red Line station as part of the FTA’s Bus and Bus Facilities Livability Program. This
project will include the installation of an elevator, an elevator control room and a rail
maintenance room. Additional accessibility features will include power-assisted doors and
a wheelchair-accessible turnstile in the fare area. This project will improve service
delivery by providing easier access to the rail system from the existing accessible bus
routes.
Purchase Up to Seven 60-Foot Articulated Diesel-Electric Hybrid Buses
The CTA is seeking a Clean Fuels grant in the amount of $6.6 million for the purchase of up
to seven, 60-foot articulated hybrid buses to replace a like number of 40-foot conventional
diesel powered buses. Hybrid diesel-electric buses achieve at least 20 percent greater fuel
efficiency than standard diesel buses, saving fuel dollars while promoting cleaner air. Each
60-foot bus replaces an average of 78 passenger cars, helping to further ease traffic
congestion in all neighborhoods served by the CTA.
Purchase 60-Foot Articulated Diesel Electric Battery-Powered Buses
In October 2011, the FTA announced $30 million as part of the FTA State of Good Repair
Program to purchase diesel-electric hybrid buses and hoists. Hybrid buses achieve at least
20 percent greater fuel efficiency than standard diesel buses, which save fuel dollars while
promoting cleaner air. These fully-accessible and air-conditioned buses offer many
features for customers, such as ADA-compliant LED destination signage, cameras for
additional security, bike racks, and the Bus Tracker System.
Innovative Transit Workforce Development Program
The CTA is the recipient of an Innovative Transit Workforce Development Program grant
from the FTA totaling $208,590. The project consists of the development of a competency
model that identifies the knowledge, skills, or abilities needed to perform a specific role in a
job, organization, or profession. A successful competency model initiative allows an
organization to be consistent with how to hire and train people, measure their
performance, and develop leadership potential. This model is important because it
provides a road map for the range of behaviors that produce excellent performance. The
model will provide performance expectations, align employee behavior with key
organizational strategies, and provide a guide for achieving expected performance
standards.
Transit Climate Change Adaptation Assessment Pilots (Public Transportation
Research)
Global climate change is projected to bring more extreme heat and precipitation to the
Chicago region in the years ahead. Transit plays an important role in reducing regional
carbon emissions, and the CTA has applied for RTA funding to identify strategies to prepare
the bus and rail system for expected climate change impacts (for example, more frequent
right-of-way flooding, electrical power disruptions, exposure at transit stops and stations).
If funding is awarded, the CTA will work with other local partners in the Chicago Climate
Action Plan to produce and prioritize a set of detailed adaptation strategies that will allow
the CTA to function more efficiently and to sustain ridership over the coming decades.
FTA Bus and Bus Facilities Discretionary Program
The FTA Bus and Bus Facilities Discretionary Program makes funds available to finance
capital projects to replace, rehabilitate, and purchase buses and related equipment, and to
construct and rehabilitate bus-related facilities. The CTA was awarded two grants under
this program. The first project, programmed for $32 million, has provided capital funds to
finance the Improve Facilities Bus Garage Rehabilitation Program; the second project,
funded at $5.4 million, provides for the implementation of a Transit Asset Management
System.
The Facilities Bus Garage Rehabilitation Program will provide for much needed
rehabilitation work at CTA bus heavy maintenance facilities. Funding will repair or replace
bus facility deficiencies such as boilers, trash collections systems, roofs, windows,
pavement replacement, bus hoist replacement, inspection pit rehabilitation, and heating,
ventilation, and air conditioning system upgrades.
A Transit Asset Management System will catalog bus facility capital assets, including
maintenance garages, related systems and equipment, and bus turnaround facilities. This
project would include migrating current bus facility capital asset information to a central
database, incorporating additional pieces of information and new data fields as required,
performing an engineering condition assessment field study for bus facility assets,
developing a long-term plan for maintaining up-to-date information on asset condition,
and developing a modeling tool using the asset information to prioritize capital
investment on bus facility assets in a funding-constrained environment.
Purchase Up to Two Electric Battery-Powered Buses and Chargers
In January 2011, the FTA published a notice in the Federal Register announcing the
selection of projects funded with Section 5309b program funds in support of USDOT’s
energy conservation efforts. The FTA’s Transit Investments for Greenhouse Gas and
Energy Reduction (TIGGER) program makes funds available for capital investments that
will reduce the energy consumption or greenhouse gas emissions of public transportation
systems. Funds were awarded on a competitive basis and projects were evaluated for their
ability to reduce energy consumption and/or greenhouse gas emissions. A total of $75
million was made available nationally for the TIGGER program and the CTA was awarded
$2.2 million for the acquisition of two electric battery-powered buses and charging
equipment.
Subway LED Emergency Lighting
In August 2011, the CTA applied for 2012 TIGGER grant funds for new subway emergency
lighting. The project aims to improve customer safety while realizing significant energy
savings by replacing inefficient incandescent emergency lighting fixtures with cutting-edge,
light-emitting diode (LED) T8 tube-style lighting fixtures in the CTA’s historic Kimball
Street subway system. The existing emergency lighting system, installed in the 1940s, is
meant to provide a constant source of light in otherwise pitch-black subway tunnels and
egresses but is prone to frequent bulb burn-outs and network power outages. This results
in enormous energy costs, maintenance costs, and periods of total darkness between
underground passenger stations.
Subway lighting would be a unique, innovative, and nationally-replicable application of
solid-state lighting technology. The proposed project would eliminate reliance of the
lighting system on the 600-volt rail traction power supply system, allowing the emergency
lighting to remain on even when traction power is shut off in the event of equipment failure
or fire. Should the local power company experience an outage, resulting in loss of power to
trains and all lights, the proposed system would be immune to failure, relying on
uninterruptible power supply back-ups to provide up to two hours of power off the grid.
Innovation, Coordination, and Enhancement (ICE) Program
This RTA program provides capital assistance to enhance the coordination and integration
of public transportation, and to develop and implement innovations to improve the quality
and delivery of public transportation. This grant is providing initial funding for a
standardized point-of-sale system that relies on business processes and technical
standards of the financial services industry. This non-proprietary, point-of-sale system
similar to the devices found in most retail merchant location will yield appreciable cost
reductions, operational efficiencies, and improved customer satisfaction over the current
ticketing system. In FY 2011, the CTA was awarded an ICE grant from the RTA in the
amount of $1.2 million for the Open Standards Fare Payment System project.
Congestion Mitigation and Air Quality (CMAQ) Grant for Diesel Particulate
Filters
This is a federally-funded program of surface transportation improvements designed to
improve air quality and mitigate congestion. This grant will provide for the purchase and
installation of diesel particulate filters on CTA buses. This device is designed to remove
diesel particulate matter from the exhaust gas of a diesel engine and helps to lower
regional emissions. The CTA was awarded $11.9 million in FY 2011 funds for the Diesel
Particulate Filter Retrofit project.
Unified Work Program (UWP) Grants
The CTA was awarded UWP funding to create a Planning and Environmental Impact
Statement to modernize the Red and Purple Lines. The project will bring existing transit
stations, track systems, and structures into a state of good repair. In addition, stations from
north of Belmont to the Linden Terminal would be brought into ADA compliance.
Partnership with CALSTART
The CTA will partner with CALSTART to develop and conduct in-service testing for a next
generation 40-foot bus powered by a hydrogen fuel cell. CALSTART is a member-
supported organization of more than 140 firms, fleets, and agencies worldwide dedicated
to supporting a growing high-tech, clean transportation industry that cleans the air, creates
jobs, cuts imported oil and reduces global warming emissions.
A fuel cell is an electrochemical device that converts the hydrogen’s chemical energy to
electrical energy. This project will demonstrate fuel cell propulsion technology in a large
transit agency with the potential for larger fleets of fuel cell bus procurements, as well as
develop and demonstrate new technology that enables the operation of fuel cell buses in a
cold climate.
Environmental Impact Statement (EIS) for Red Line Extension
The CTA was awarded UWP funds to provide for an Environmental Impact Statement for
the Red Line extension project. The CTA is proposing to extend the Red Line from the 95th
Street station to the vicinity of 130th Street. The CTA has completed an Alternatives
Analysis and a Locally Preferred Alternative and the next step in the process is preparing
an Environmental Impact Statement.
This project is one part of the CTA’s effort to extend and enhance the entire Red Line and is
an identified fiscally-constrained project in GOTO 2040 long-range plan developed by
Chicago Metropolitan Agency for Planning (CMAP). The CTA and FTA initiated an AA study
for the proposed extension in 2006 and completed it in 2009 with the identification of a
Locally Preferred Alternative (LPA). The proposed LPA is 5.3 miles long and would extend
the heavy rail transit line from the existing Red Line 95th Street Station to 130th Street along
the Union Pacific Railroad (UPRR) corridor.
In 2011, $5.1 million in federal grant funding was provided for an EIS that will evaluate the
environmental impacts of the project.
The purpose of the Red Line extension project is to reduce travel times to jobs for Far
South Side and South Suburban residents, and improve the performance of the existing Red
Line 95th Street station terminal. The project also would provide an opportunity to support
economic development initiatives.
The need for the project is based on the following considerations:
. Lack of a Park & Ride and poor pedestrian facilities limit access to the existing 95th
Street terminal of the Red Line.
. Measurable delays when accessing the existing terminal facility by bus, resulting
from poor performance of surrounding arterial intersections, insufficient space for
bus loading and unloading, and insufficient space for bus layovers.
. Congested bus and passenger conditions at the existing terminal station and bus
facility result in safety issues and diminish the attractiveness of transit as an
alternative to other travel modes.
. Roadway performance in the study area is adversely impacted by narrow arterial
streets and frequent at-grade freight rail crossings.
In 2012-2016, the CTA will continue to aggressively pursue additional funding under these
competitive grant programs.
Unfunded Capital Need
In 2010, the FTA published the National State of Good Repair Assessment Study which
provides a comprehensive analysis of the costs required to bring the nation’s rail and bus
transit systems into good operating order. The report shows transit agencies are struggling
to maintain aging assets. The deferred maintenance backlog is estimated to be $50 billion
for the seven largest transit agencies, which includes the CTA, and approximately $78
billion for all 690 transit systems nationwide.
The CTA continues to invest in upgrading or replacing system assets yet the unfunded
capital need is more than $7 billion. Even if the entire capital backlog was funded, the CTA
estimates a need of $844 million annually just to keep system in a state of good repair. The
average funding level over the period 2012-2016 is $593 million. And even if the CTA
system was in a state of good repair, the annual program funding would be insufficient to
maintain this condition, with each year’s deficit approximately $251 million.
The CTA routinely evaluates the additional funding needed to reach a state of good repair.
CTA’s unfunded capital needs have manifested themselves in a variety of ways across its
system.
Right-of-Way
. Twenty-two percent of rail right-of-way is past its useful life of 40 years. On the most
deteriorated sections, slow zones are established to provide safer service. Slow zones
cripple the system, and 28 miles (12 percent) of CTA’s rail system tracks are currently
designated as slow zones. The Red Line, which serves 38 percent of all riders, has 23.5
percent of track in slow zones that adds more than 20 minutes of delay to train travel
times on that line. The Brown Line has 20 percent slow zones, which adds seven
minutes of delay to travel times.
. The Red Line Dan Ryan Branch tracks are over 40 years old. Riders on both the north
and south portions of the Red Line experience more overcrowded and increased
headways due to these slow sections in the Dan Ryan. Without action, it is projected
that 65 percent of the Dan Ryan tracks will require slow zones by 2012, which will add
10 minutes in travel time from 18th to 95th Streets. The projected cost of patching,
increased operating costs, and losses from fare revenue due to slow zones over the next
five years averages $10 million each year and will continue to rise without major capital
rehabilitation. While ridership on the rest of the Red Line is growing at 2.4 percent year
to date, ridership on the Dan Ryan section on the south is declining by 3.0 percent year
to date.
Rail Stations
. Fifty-four of 143 stations (38 percent) are past their useful life; 22 stations (15 percent)
are over 90 years old; 52 stations (36 percent) are not accessible to the disabled. These
aging stations cannot support the demands of current ridership and use.
. Water infiltration is a constant battle in subway stations. This is particularly
problematic along the Blue Line subway, where leaks from water and sewer mains
result in corrosion and degradation of the infrastructure of these stations.
. Seventy-five out of 154 escalators (49 percent) are beyond their useful life of 25 years,
with some escalators dating back to the 1950s. The system’s escalators suffer from
repeated failures and many do not meet current safety standards.
. Elevators on the system experience extraordinary wear and tear from riders and
weather conditions, making them difficult to maintain without major capital work
throughout their useful life. Elevators are critical to maintain the accessibility of our
system for the elderly, disabled, and families with strollers. The CTA invests
approximately $2.2 million annually to keep existing elevators operational.
Rail Elevated Structures
. Twenty-six percent of rail structures have exceeded their useful life of 80 years and the
replacement cost is estimated at $985 million. Within 10 years, this cost is estimated to
increase to approximately $1.9 billion if no major capital investments are made.
. Viaducts on the Red and Purple Lines date back to the early 1900s. These require
permanent exterior braces, regular removal of loose concrete, and netting to protect
traffic below.
Rolling Stock
. Aging equipment decreases reliability, which creates delays for riders. Sixty-five
percent of rail cars are past their useful life of 25 years. In the next year, 25 percent of
the bus fleet will pass its useful life.
Maintenance Facilities
. Maintenance facilities require significant improvements to adequately support the bus
and rail fleet. Six of CTA’s maintenance buildings are over 100 years old and have not
received substantial rehabilitation. The CTA has been forced to rely heavily on these
outdated facilities, recently closing a bus garage that was built to store horse-drawn
trolley operations at the turn of the century, and demolishing a rail equipment
maintenance shop built for the 1893 World’s Fair that was no longer structurally sound.
Neither of these facilities has been replaced.
. Nearly half of the hoists used to lift buses at CTA’s seven bus garages require immediate
replacement (45 of 91 hoists). Additionally, CTA does not have a sufficient number of
hoists that can be used for the longer articulated buses, which are becoming a larger
percentage of the CTA’s bus fleet.
. Electrical switch gear at two garages (Forest Glen and North Park) dates from the late
1950s and if these systems are not replaced, generators will need to be rented at a cost
of $3 million per year. The reduction in power capacity will mean a 10 percent
decrease in the number of buses in service for a total loss of 25 buses per facility and 50
fewer buses in service systemwide.
. Three of CTA’s seven bus garages have boilers purchased in the mid-1980s that are at
the end of their useful life of 25 years and require significant ongoing costs to keep
them from failing. New energy-efficient boilers save CTA 20 percent on gas bills and
require less maintenance.
Substations
. Forty-five percent of the substations that power the rail system are beyond their useful
life. These aging substations reduce reliability of service and result in slow service
because they provide insufficient power to the system to meet demand.
Operating Budget Impact of Capital Program Projects
When the CTA invests in capital projects, there is a direct and positive impact on the
operating budget. Conversely, lack of financial investment in capital projects not only can
have a dire effect on the safety and reliability of the system, it also negatively impacts the
operating budget.
In addition to realizing decreased material expenses since the CTA has made investments
in its bus fleet - thus lowering the fleet’s average age as well as associated maintenance
costs - the CTA is poised to see decreased operating expenses as a result of investments in
the Red Line and the 5000-series rail cars.
Recent analysis evaluating options for optimal investment in the Red Line right-of-way has
shown that the most cost effective and efficient time to invest in these improvements is
now. Not only will these investments achieve significantly fewer slow zones over the first
20 years of life, they will result in the largest bottom line to the CTA of the available
options.
If this investment was completely delayed until the end of this CIP, the CTA would be faced
with at least the same level of slow zones, which would negatively affect ridership and the
associated farebox revenues while simultaneously increasing service costs, including but
not limited to labor, electricity, and maintenance expenses. If only partial investment is
made at this time, the CTA predicts a loss of farebox revenues as a result of declining
ridership, increased operating expenses, and continued deterioration of rail structure, all of
which would have a sharply negative impact on system safety and reliability.
Over the timeframe of this CIP, due to the investment in 5000-series rail cars, there will be
a net increase of 60 cars to the CTA’s rail fleet. Even when taking this increase into
consideration, the CTA estimates that these cars will result in an average annual savings to
the operating budget of $8.6 million in maintenance materials and power costs.
Since 2006, the CTA has been transferring funds from capital project use into the operating
budget to meet operating revenue shortfalls. This practice, while providing for continued
transit operations, has a negative impact on the long-term ability to upgrade infrastructure.
This CIP is the first in recent years to halt this practice, thus maximizing the CTA’s ability to
invest in its aging system in an attempt to get closer to a state of good repair. Despite this,
there remains an unfunded capital need of approximately $7 billion.
Computerized Analysis of the Impacts of Capital Projects on the Operating Budget
A task force consisting of members of the RTA and the three Service Boards is developing
and working to test the “Decision Tool,” a computerized method to be used for annual
budget planning and capital project prioritization. This method will allow for targeted
identification and quantification of potential operating savings that could result from
certain capital investments, while also providing other benefits. The software is expected to
be fully implemented and used by all Service Boards in 2012.
Capital Program Acronyms
AA
Alternatives Analysis
ADA
Americans with Disabilities Act
APB
Accounting Principles Board
ARRA
American Recovery and Reinvestment Act
BAB
Build America Bonds
BLS
Bureau of Labor Statistics
BOB
State Bureau of the Budget
BRT
Bus Rapid Transit
CAC
Capital Advisory Committee
CBO
Congressional Budget Office
CDOT
Chicago Department of Transportation
CIP
Capital Improvement Program
CMAP
Chicago Metropolitan Agency for Planning
CMAQ
Congestion Mitigation and Air Quality Improvement Program
CPD
Chicago Police Department
CPI
Consumer Price Index
CTA
Chicago Transit Authority
DBE
Disadvantaged Business Enterprise
EIA
Energy Information Administration
EIS
Environmental Impact Statement
EPA
Environmental Protection Agency
FFGA
Full Funding Grant Agreement
FHWA
Federal Highway Administration
FIRST
Illinois Fund for Infrastructure, Roads, Schools and Transit
FTA
Federal Transit Administration
ICE
Innovation, Coordination, and Enhancement Fund of RTA
IDOT
Illinois Department of Transportation
ISTEA
Intermodal Surface Transportation Efficiency Act
LPA
Locally Preferred Alternative
PE
Preliminary Engineering
RPM
Red and Purple Modernization Project
SAFETEA-LU
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
TEA-21
Transportation Equity Act for the 21st Century
TIGGER
Transit Investments for Greenhouse Gas and Energy Reduction
UMT
Urban Mass Transportation
UMTA
Urban Mass Transportation Authority
UPRR
Union Pacific Railroad
USDOT
United States Department of Transportation
8 History of the Agency
1859 The beginning of public transit in Chicago; early service is horse-drawn.
1882 The Chicago City Railway obtains rights to operate San Francisco style cable cars.
1892 The Chicago and South Side Rapid Transit Company opens on June 6, bringing elevated train service to Chicago. At the turn of the century, four separate transit railroad are operating in Chicago. The first trains, powered by steam, are quickly converted to electricity.
1897 Elevated trains are built along available rights-of-way, often above alleys and less heavily used streets. The Loop ‘L’ opens, connecting rapid transit lines serving the North, South and West sides of Chicago.
1911 The rapid transit companies form a trust that, in 1913, allows free transfers between the carriers for the first time. This also marks the start of through-routing
trains between the North and South Sides.
1914 On February 1, four streetcar companies unite under a single management, the Chicago Surface Lines. At its peak, the Chicago Surface Lines operates along 1,100 miles of tracks and becomes the largest and most heavily used streetcar system in the world.
1917 Buses are first used in Chicago as the Chicago Motor Bus Company is created. Bus use is limited to Chicago boulevards and parks.
1922 The Chicago Motor Coach Company succeeds the Chicago Motor Bus Company.
1924 The four rapid transit "L" companies merge to create the Chicago Rapid Transit Company.
1943 To ease traffic congestion, the U.S. Department of Interior, the Public Works Administration, and the City of Chicago finance the State Street Subway.
1945 The Chicago Transit Authority, an independent government agency, is formed when the Illinois General Assembly passes the Metropolitan Transit Authority Act. In the same year, the City of Chicago passes an ordinance granting CTA the CTA exclusive right to own and operate a unified, local transportation Voters pass the Act and
Ordinance in a referendum on June 4.
1947 The CTA begins operations by issuing $105 million in revenue bonds to purchase assets of the Chicago Surface Lines and the Chicago Rapid Transit Company.
1951 The Dearborn Street Subway opens.
1952-53: Through additional bond issues, the Chicago Motor Coach Company, a portion of the Chicago Aurora and Elgin Railway, and the Chicago, Milwaukee, St. Paul and Pacific Railroad right-of-way are added to the CTA.
1958 The Congress branch opens along the median of the newly-built Congress expressway, connecting Forest Park with the Loop through Dearborn subway, with trains continuing to Logan Square on the northwest side.
1964 The CTA obtains federal funding to create the first "light rail" service, the Skokie Swift. The Skokie Swift operates on track lines purchased by the CTA from the Chicago North Shore & Milwaukee Railway. Eventually the overhead wire is eliminated and the trains become two cars, allowing the Skokie Swift to become a popular rail shuttle and suburban inter-city bus link.
1974 By the early 1970s the popularity of car travel and declining ridership levels threaten the fiscal stability of the local public transit providers as well as the CTA.
Therefore, the Illinois General Assembly creates the Regional Transportation Authority (RTA) as a fiscal and policy oversight agency committed to providing an efficient and effective public transportation system. Today, the RTA continues to provide fiscal oversight to CTA, Metra and Pace.
1984 The CTA responds to changing demographics during the 1970s by expanding the West-Northwest Service from Logan Square to Jefferson Park, and then along the Kennedy Expressway median to River Road in Rosemont. Finally, the northwest transit extension is completed at O'Hare Airport, providing a station within the airport terminal.
1993 The Dan Ryan branch, formerly linked to the Englewood and Jackson Park branches, is linked with the Howard branch. The new Lake to Englewood-Jackson Park service is rerouted to use the Loop Elevated. The Midway Orange Line is completed, linking the downtown elevated Loop to the Southwest side airport. Its completion makes Chicago the only city in the United States with public transportation connecting two major airports.
1996 The CTA celebrates the re-opening of the rehabilitated Green Line, improving the service to customers on the West and South sides of Chicago.
2006 The CTA introduces the Pink Line as part of a package of bus and rail service improvements for the West Side and western suburbs. The Pink Line provides more frequent service and improved travel times between the 54th/Cermak station and the Loop. CTA introduces new and improved bus service with two new local bus routes, three new express routes and eight enhanced bus routes.
2009 The final regularly-scheduled bus routes are added to CTA Bus Tracker. Customers are able to access information online and receive email notification of predicted arrival times and service alerts .
2010 CTA begins testing the prototypes of a brand new family of ‘L’ cars, the 5000-series rail cars. These advanced cars result in a smoother, more comfortable ride and provide both operational and maintenance efficiency.
2011 Following the success of Bus Tracker, Train Tracker is launched in January 2011, providing customers with information on estimated train arrival times for all 143 rail stations across the CTA's eight rail lines. Train Tracker exemplifies the CTA's continued commitment to improving services while maintaining fiscal responsibility.
9 Transit Facts
Creation of CTA
The CTA was created by state legislation and began operating on October 1, 1947, after acquiring the properties of the Chicago Rapid Transit Company and the Chicago Surface Lines. On October 1, 1952, the CTA became the sole operator of City of Chicago transit when it purchased the Chicago Motor Coach System.
CTA Governance
The CTA’s governing arm is the Chicago Transit Board, which consists of seven members. The Mayor of Chicago appoints four board members, subject to the approval of the City Council and the Governor. The Governor appoints three board members, subject to the approval of the State Senate and the Mayor of Chicago.
In 1974, the Regional Transportation Authority (RTA) was created by state legislation. The RTA serves as CTA’s fiscal oversight agency.
Service Area
Area: 220 square miles of Chicago and 40 nearby suburbs
Population: 3.53 million
Coverage: 82 percent of public transit trips in the six-county Chicago metropolitan area
Ridership (2011 Forecast)
Average Weekday: 1,664,806
Average Saturday: 1,075,276
Average Sunday/Holiday: 757,717
2012 Budget
Operating Budget: $1.240 billion
Capital Budget: $1.168 billion
Budgeted Positions: 9,206
Bus
Number of Buses: 1,781
Routes: 140
Stops: 11,493
Bus Route Miles: 1,959
Bus Miles Traveled per Day: 145,832
Ridership (2011 Forecast): 306 million
Rail
Number of Rail Cars: 1,200
Stations: 143
Rail Track Miles: 224.1
Rail Miles Traveled per Day: 177,490
Ridership (2011 Forecast): 219 million
10 System Map
A map showing the CTA bus and rail system is shown.
11 Operating Funding Summary
The CTA’s total estimated revenue for 2012 is $1.24 billion. There are two primary sources
of operating revenue for the CTA: System-generated revenue through fares and other
sources, and public funding through the Regional Transportation Authority (RTA). System-
generated revenue is projected at $623.7 million for 2012 and public funding is projected
at $616.6 million. The following table represents 2012 estimated revenue by source.
The following is a description of sources of system-generated revenues and public funding
for the CTA.
System-Generated Revenues
The CTA’s system-generated revenue is forecast at $623.7 million for 2012. This revenue is
derived from the sale of fares and passes, subsidies for reduced fare riders, advertising,
investment income, statutory required contribution from local governments by provision
of the RTA Act, and other revenues. These revenues are further defined below.
Fares and Passes
Revenue from fares and passes is forecast at $540 million in 2012 and is the largest portion
of system-generated revenue. The CTA’s revenue from fare and passes includes cash fares,
full-fare and reduced-fare cards, and Chicago Card and Chicago Card Plus fares. In addition,
the CTA also sells 30-day full fare and reduced fare passes, along with one-, three- and
seven-day passes. Additional pass revenue comes from the CTA’s U-Pass for local
university students, the sale of visitor passes and METRA Link-Up passenger revenue.
Reduced Fare Subsidy
This funding represents the reimbursement of revenues lost by the Service Boards due to
providing reduced fares to students, the elderly and riders with disabilities as mandated by
federal and state law. The funding is subject to the terms of the grant agreement, state
statute and annual state appropriation. Reimbursement amounts are allocated to the
Service Boards based on reduced-fare passenger trips taken during the grant year.
Reduced fare subsidy is forecast at $28 million in 2012.
Advertising, Charters and Concessions
Advertising, charters and concessions revenue for 2012 is forecast at $22.8 million.
The bulk of this revenue is received through advertisement on buses, rail cars and rail
stations. This forecast also includes: concession revenue from 85 concessions within the
CTA’s 143 rail stations, revenue generated from billboards, ATM and vending machine
contracts, and revenue from Special Contract Guarantees, which includes agreements for
transportation services for the University of Chicago, the Chicago Cubs and others.
Investment Income
The 2012 budget for investment income is $867 thousand for 2012. This compares to investment
income of $5.4 million in 2005, $11.6 million in 2006, $12.1 million in 2007, $3.8
million in 2008, $1.3 million in 2009, $627 thousand in 2010, and a forecast of $394
thousand for 2011.
The variation is largely attributed to changes in short-term interest rates. The federal
funds rate has increased from a low of one percent in June of 2003 to a high of 5.25 percent
in June of 2006 before falling to near zero at the end of 2008. In August 2011, the Federal
Open Market Committee (FOMC) decided to keep the target range for the federal funds rate
at zero to 0.25 percent. The FOMC predicts that economic conditions will dictate that the
rate remain within this exceptionally low range at least through mid-2013.
Statutory Required Contributions
The RTA Act requires the City of Chicago and Cook County to annually contribute $3 million and $2 million,
respectively, towards CTA operations.
All Other Revenue
The CTA forecasts $27 million in other revenue for 2012. Revenues in this category include
operating grants from the Federal Transit Administration (FTA), parking fees, rental
revenue, third-party contractor reimbursements and filming fees. Additional revenue is
derived from 35 real estate leases across the system, as well as leases within the CTA
headquarters building. Parking revenues include Park & Ride Facilities (17 facilities with
approximately 6,000 spaces), under ‘L’ parking rentals and long-term parking agreements.
Public Funding
Most of the CTA’s public funding for operating and capital needs is funneled through the
RTA. Under the RTA Act, as amended in 2008, some of the funds are allocated to the
Service Boards based on a set formula; other funds are allocated based on the RTA’s
discretion. The sources and allocations are outlined below.
Sales Tax Revenue per 1983 Formula
RTA Sales Tax is the primary source of operating revenue for the RTA and the three Service
Boards. The tax is authorized by Illinois statute, imposed by the RTA in the six-county
region of northeastern Illinois and collected by the state. The sales tax is the equivalent of
one percent on sales in the City of Chicago, one percent on sales in Cook County and 0.25
percent on sales in the collar counties of DuPage, Kane, Lake, McHenry and Will. The one
percent sales tax in Cook County is comprised of one percent on food and drugs and 0.75
percent from all other sales, with the state then providing a “replacement” amount to the
RTA equivalent to 0.25 percent of all other sales. Proceeds from the RTA Sales Tax are
distributed to the CTA, Metra and Pace, and primarily fund operating costs not recovered
through the farebox. The RTA retains 15 percent of the total sales tax and passes the
remaining 85 percent to the Service Boards according to the Operating Funding Allocation
Chart found later in this section.
Chicago Suburban Cook Collar County
Sales Tax Sales Tax Sales Tax
Revenue Revenue Revenue
CTA 100% 30% 0%
Metra 0% 55% 70%
Pace 0% 15% 30%
Total 100% 100% 100%
The 2012 Sales Tax Budget per the 1983 Formula for the Region is estimated to be
$737,060 million and is distributed to the RTA and three Service Boards as follows:
(in thousands)
Chicago Suburban Cook Collar County
Sales Tax Sales Tax Sales Tax
Revenue Revenue Revenue Total
CTA $204,865 $96,513 - $301,378
Metra - $176,941 $69,948 $246,889
Pace - $48,256 $29,978 $78,234
RTA $36,153 $56,772 $17,634 $110,559
Total $241,018 $378,482 $117,560 $737,060
* Amounts may not match other tables in document due to rounding.
In addition, the RTA will distribute at its discretion any funds remaining from the initial
allocation of the 15 percent sales tax distribution that are in excess of the RTA’s funding
needs.
Federal Assistance (Federal Transit Administration)
The RTA is the region's designated recipient of federal assistance, which previously
included both operating and capital funds. The FTA eliminated operating assistance for the
RTA in 1998.
Public Transportation Fund
As authorized by the RTA Act, the Illinois State Treasurer transfers from the State General
Revenue Fund an amount equal to 25 percent of the RTA sales tax collections (or gasoline
or parking taxes, if imposed by the RTA). The treasurer transfers this amount to a special
fund, the Public Transportation Fund (PTF), and then remits it to the RTA on a monthly
basis. Remittance requires an annual appropriation by the State of Illinois. The RTA uses
these funds at its discretion to fund the needs of the Service Boards, RTA operations, debt
service and capital investment. The RTA’s 2012 budget includes $184.3 million per the
1983 formula and $123.6 million per the 2008 legislation in PTF funds.
State Assistance
The RTA Act provides supplemental state funding in the forms of additional state
assistance and additional financial assistance (collectively, “State Assistance”) to the RTA in
connection with its issuance of Strategic Capital Improvement Program (SCIP) bonds. The
funding equals debt service amounts paid to bondholders of the SCIP bonds issued by the
RTA, plus any debt service savings from the issuance of refunding or advanced refunding
SCIP bonds, less the amount of interest earned by the RTA on the proceeds of SCIP bonds.
The RTA Act limits the amount of State Assistance available to the RTA to the lesser of the
debt service or $55 million. Remittance requires an annual appropriation made by the State
of Illinois.
2008 Legislation
The 2008 state funding package increased the percentage of state sales tax dedicated to
mass transit and gave authority to the City of Chicago to increase the Real Estate Transfer
Tax (RETT) to support the CTA. In addition, the legislation also provided for long-term
pension reforms that will increase the funded ratio of the CTA’s pension to 90 percent by
2059.
2012 RTA Proposed Service Board Operations Funding (in thousands)
2012 Service Board Funding RTA CTA Metra Pace- Pace- Total
Mainline Paratransit
Sales Tax (1983 Formula) $305,024 $301,378 $246,888 $78,234 - $931,524
Sales Tax and PTF
(PA 95-0708) - $111,495 $90,590 $30,197 $115,000 $347,283
CTA - RTA Discretionary $(168,700) $168,700 - - - -
Real Estate Transfer Tax
(25% PTF) - $7,007 - - - $7,007
RTA Suburban Community
Mobility Funds - - - $20,319 - $20,319
RTA South Suburban Job
Access Fund $(7,500) - - $7,500 - -
Pace - RTA Discretionary $(3,000) - - $3,000 - -
State Funding for ADA - - - - - -
ICE/ Additional Budget
Balancing Actions $10,159 - - - - $10,159
Total RTA Funds $135,983 $588,581 $337,478 $139,250 $115,000 $1,316,292
Real Estate Transfer Tax
(City of Chicago) - $28,028 - - - $28,028
Total Funding $135,983 $616,609 $337,478 $139,250 $115,000 $1,344,320
*Numbers may not precisely add due to rounding.
2012 Budget - Operating Funding Allocation Chart (in thousands)
12 Debt Administration
Debt Management Policy Guidelines
On October 14, 2004, the Chicago Transit Board approved an ordinance adopting Debt
Management Policy Guidelines (the “Debt Policy”). The Debt Policy serves as a
management tool to ensure that the CTA identifies transactions that utilize debt in the most
efficient manner, and provides for full and timely repayment of all borrowings.
Additionally, the Debt Policy outlines a means of achieving the lowest possible cost of
capital within prudent risk parameters, as well as ensuring ongoing access to the capital
markets. The Debt Policy applies to all short- and long-term bonds and notes, other long-
term lease obligations, and interest rate exchanges. The Debt Policy does not cover
commodity hedging, leveraged leases, long-term operating leases, short-term leases and
bank obligation transactions. The general debt issuance guidelines outlined in the Debt
Policy are summarized below.
Use of Debt
It is the CTA’s preference to use a pay-as-you-go funding mechanism for all capital projects.
As such, CTA explores the use of available cash to fund all or part of a particular capital
improvement project and other long-term financial needs before proposing the use of
leverage. However, the CTA recognizes that the size, scope and timing of particular projects
in its capital improvement plan, cash flow sufficiency and capital market opportunities may
necessitate the use of debt. The Debt Policy allows for the issuance of either long-term or
short-term debt. The financing purpose determines the type of debt the CTA would use.
Short-Term Debt Obligations
Short-term debt may be used by the CTA as a cash management tool to provide interim
financing or to bridge temporary cash flow deficits within a fiscal year. Currently, the CTA
has no outstanding short-term debt obligations.
Long-Term Debt Obligations
The Debt Policy prohibits the use of long-term debt to fund operations. However, long-term
bonds are deemed appropriate to finance essential capital activities and certain
management initiatives. The CTA may also use long-term lease obligations to finance or
refinance capital equipment. Prior to entering into any lease financing, the Authority will
evaluate three factors: the useful life of assets financed, the terms and conditions of the
lease, and the budgetary, debt capacity and tax implications.
Credit Ratings
The Debt Policy recognizes the need for a credit rating strategy focused on achieving the
best economic value for the CTA. A major goal of the CTA’s debt program is to attain a
proper balance between minimizing borrowing costs and maximizing financial flexibility.
As of August 18, 2011, the CTA’s underlying ratings on outstanding debt were as follows:
Sales and Transfer Tax Sales Tax Building Revenue Capital Grant
Receipts Revenue Receipts Revenue Bonds (PBC debt) Receipts Revenue
Bonds Bonds Bonds
Moody’s Aa3 Aa3 A1 A1
S&P AA AA A A
Fitch Not Rated Not Rated Not Rated A
Debt Limitations
Attaining a proper balance between minimizing borrowing and maximizing financial
flexibility is a key goal of the CTA debt program. The CTA is not subject to statutory debt
limitations for capital investment. However, the Debt Policy does limit the aggregate
amount of the CTA’s unhedged, long-term variable rate debt to a maximum of 20 percent of
all outstanding long-term debt obligations.
Other Provisions
The CTA may secure credit enhancement in the form of municipal bond insurance or a
letter/line of credit for all or a portion of each bond issue. The Debt Policy also allows the
Authority to issue debt on either a taxable or tax-exempt basis and to use interest rate
exchange agreements when such agreements will reduce the expected interest rate costs,
hedge fluctuations in interest rates, or gain efficiency in structuring and restructuring debt.
Current Debt
Long-term debt includes capital lease obligations and bonds payable, as described below.
Lease/Leaseback Agreements
The CTA entered into several economically defeased lease and leaseback agreements in
fiscal years 1995 through 2003. These agreements were entered into with various third
parties and pertain to certain assets of the CTA, including rail lines and equipment, rail
cars, facilities, buses and qualified technology equipment. Under the lease/leaseback
financings, the CTA entered into a long-term lease for applicable assets with trusts
established by equity investors; trusts which concurrently leased the respective assets
back to CTA under sublease agreements. Each sublease contains a fixed date and a fixed
price purchase option that allows the CTA, at its option, to purchase the assets back from
the lessor. As of December 31, 2010, the total obligations due under the lease agreements,
which have been economically defeased, were approximately $1.6 billion.
Other Capital Leases
2008 Bus Lease
During 2008, the CTA entered into a lease-purchase agreement to finance the purchase of
150 60-foot New Flyer articulated hybrid buses and certain related parts and equipment at
an estimated aggregate cost of $120.5 million. The terms of the agreement allow the CTA to
lease the buses for 12 years and retain ownership at the conclusion of the lease. Lease
payments are due every June 1 and December 1 of each year, beginning on December 1,
2008. The present value of the future payments to be made by the CTA under the lease was
approximately $103 million as of December 31, 2010.
Public Building Commission of Chicago
SCHEDULE I: $91,340,000 Building Revenue Bonds
(Public Building Commission on behalf of Chicago Transit Authority)
Series 2006 Lease Payment Schedule 2011-2033
PAYMENT PORTION OF PORTION OF LEASE TOTAL LEASE DEBT
YEAR LEASE PAYMENT PAYMENT PAYMENT OUTSTANDING
ATTRIBUTABLE TO INTEREST ATTRIBUTABLE TO (as of 12/31)
PRINCIPAL
2011 $4,153,938 $2,035,000 $6,188,938 $81,305,000
2012 $4,070,938 $2,115,000 $6,185,938 $79,190,000
2013 $3,984,538 $2,205,000 $6,189,538 $76,985,000
2014 $3,891,669 $2,295,000 $6,186,669 $74,690,000
2015 $3,782,775 $2,405,000 $6,187,775 $72,285,000
2016 $3,659,400 $2,530,000 $6,189,400 $69,755,000
2017 $3,529,650 $2,660,000 $6,189,650 $67,095,000
2018 $3,403,969 $2,785,000 $6,188,969 $64,310,000
2019 $3,271,913 $2,915,000 $6,186,913 $61,395,000
2020 $3,122,413 $3,065,000 $6,187,413 $58,330,000
2021 $2,965,163 $3,225,000 $6,190,163 $55,105,000
2022 $2,799,788 $3,390,000 $6,189,788 $51,715,000
2023 $2,621,456 $3,565,000 $6,186,456 $48,150,000
2024 $2,429,175 $3,760,000 $6,189,175 $44,390,000
2025 $2,226,525 $3,960,000 $6,186,525 $40,430,000
2026 $2,012,981 $4,175,000 $6,187,981 $36,255,000
2027 $1,787,888 $4,400,000 $6,187,888 $31,855,000
2028 $1,550,719 $4,635,000 $6,185,719 $27,220,000
2029 $1,300,688 $4,890,000 $6,190,688 $22,330,000
2030 $1,037,138 $5,150,000 $6,187,138 $17,180,000
2031 $759,413 $5,430,000 $6,189,413 $11,750,000
2032 $466,725 $5,720,000 $6,186,725 $6,030,000
2033 $158,288 $6,030,000 $6,188,288 $0
Total: $58,987,150 $83,340,000 $142,327,150
On March 31, 2003, the Public Building Commission of Chicago (PBC) issued $119 million
of Building Revenue Bonds, Series 2003 (Chicago Transit Authority; PBC Bonds). The PBC
used the proceeds of these bonds, among other things, to acquire the site for and construct
a 12-story office building. The PBC leased the building to the CTA for a 20-year term to be
used as CTA headquarters. Rent payments due to the PBC from the CTA under the lease are
general obligations of the CTA payable from any lawfully-available funds. Upon satisfaction
of all of the obligations of the CTA under the lease and payment, or provision for payment,
of the PBC Bonds in full, the PBC will transfer title of the leased premises to the CTA.
On October 26, 2006, the PBC issued Building Refunding Revenue Bonds for the benefit of
the CTA in the amount of $91.3 million. The proceeds of the bonds were used to advance
refund to the PBC, Series 2003 bonds. The original, executed lease in connection with the
Series 2003 bonds was amended accordingly. The CTA is obligated to pay to the Trustee on
behalf of the PBC on or before February 15 of each year in which the headquarters lease is
in effect, rent which equals the debt service on the PBC bonds due through and including
September 1 of that calendar year. The source of funds for the PBC lease payments is
primarily FTA grant funds. The total remaining rent due to the PBC over the life of the
amended lease is $142.3 million.
Bonds Payable-Capital Grant Receipt Revenue Bonds
Capital Grant Receipts Revenue Bonds, Series 2004A and 2004B
SCHEDULE II: $250,000,000 Capital Grant Receipts Revenue Bonds
(Federal Transit Administration 5307 Formula Funds)
Series 2004A and Series 2004B Total Debt Service 2011-2016
PAYMENT INTEREST PRINCIPAL TOTAL DEBT DEBT
YEAR PAYMENT PAYMENT SERVICE OUTSTANDING
(as of 12/31)
2011 $6,791,287 $0 $6,791,287 $130,615,000
2012 $6,173,231 $23,545,000 $29,718,231 $107,070,000
2013 $4,904,700 $24,780,000 $29,684,700 $82,290,000
2014 $3,602,494 $26,085,000 $29,687,494 $56,205,000
2015 $2,231,906 $27,385,000 $29,616,906 $28,820,000
2016 $756,525 $28,820,000 $29,576,525 $0
Total: $24,460,143 $130,615,000 $155,075,143
On October 20, 2004, the CTA issued Capital Grant Receipts Revenue Bonds, Series 2004A
and Series 2004B (Federal Transit Administration Section 5307 Formula Funds; together
referred to as the 2004 Bonds). Par value of the 2004 Bonds was $250 million, with $150
million in Series 2004A and $100 million in Series 2004B. The 2004 Bonds are solely
secured via Federal Transit Administration 5307 Urbanized Area Formula funds.
The proceeds of the 2004 Bonds will be used to pay for, or reimburse the CTA for prior
expenditures relating to a portion of certain capital improvement projects identified by the
CTA (“2004 Projects”). These capital improvements must be approved by the CTA Board as
well as the RTA, and are included in the CTA Capital Plan. The 2004 Projects include
infrastructure improvements such as facility rehabilitation, rail station reconstruction,
replacing and upgrading track, structure and signal systems, communication infrastructure
improvements, and replacing the bus and rail fleets. The 2004 Projects may be substituted
from time to time, provided there are funds in the 2004 Project Account of the Construction
fund.
The 2004 Bonds bear interest ranging from 3.60 to 5.25 percent. Interest is payable semi-
annually on June 1 and December 1 and the remaining bonds mature serially through June
1, 2016. The debt service obligations are paid by the capital funds.
The Capital Grant Receipts Revenue Bonds, Refunding Series 2010 refunded the maturities
dated June 1, 2010 through June 1, 2011 of the 5307 (Series 2004A, 2004B and 2006A)
and 5309 (Series 2008 and 2008A) bonds.
Capital Grant Receipts Revenue Bonds, Series 2006A
SCHEDULE III: $275,000,000 Capital Grant Receipts Revenue Bonds
(Federal Transit Administration Section 5307 Formula Funds)
Series 2006A Total Debt Service 2011-2021
PAYMENT INTEREST PRINCIPAL TOTAL DEBT DEBT
YEAR PAYMENT PAYMENT SERVICE OUTSTANDING
(as of 12/31)
2011 $11,840,813 $0 $11,840,813 $240,440,000
2012 $11,650,413 $9,520,000 $21,170,413 $230,920,000
2013 $11,212,513 $9,900,000 $21,112,513 $221,020,000
2014 $10,705,138 $10,395,000 $21,100,138 $210,625,000
2015 $10,172,388 $10,915,000 $21,087,388 $199,710,000
2016 $9,655,881 $11,465,000 $21,120,881 $188,245,000
2017 $8,560,500 $34,070,000 $42,630,500 $154,175,000
2018 $6,814,500 $35,770,000 $42,584,500 $118,405,000
2019 $4,981,250 $37,560,000 $42,541,250 $80,845,000
2020 $3,056,375 $39,435,000 $42,491,375 $41,410,000
2021 $1,035,250 $41,410,000 $42,445,250 $0
Total: $89,685,021 $240,440,000 $330,125,021
On November 1, 2006, the CTA issued Capital Grant Receipts Revenue Bonds, Series 2006A
(Federal Transit Administration Section 5307 Formula Funds) in the amount of $275
million, in anticipation of the receipt of grants from the federal government pursuant to a
full-funding grant agreement. The bonds were issued to provide funds to finance or
reimburse the CTA for expenditures relating to a portion of the costs of capital
improvements to the Transportation System referred to as the “2006 Project.”
The Series 2006A bonds bear interest ranging from four to five percent. Interest is payable
semi-annually on June 1 and December 1 and the remaining bonds mature serially through
June 1, 2021. The debt service obligations are paid by the capital funds.
The Capital Grant Receipts Revenue Bonds, Refunding Series 2010 refunded the maturities
dated June 1, 2010 through June 1, 2011 of the 5307 (Series 2004A, 2004B and 2006A)
and 5309 (Series 2008 and 2008A) bonds.
Capital Grant Receipts Revenue Bonds, Series 2008 (5309) and 2008A (5307)
SCHEDULE IV: $250,000,000 Capital Grant Receipts Revenue Bonds
(Federal Transit Administration Section 5307 & 5309 Formula Funds)
Series 2008 Total Debt Service 2011-2026
PAYMENT INTEREST PRINCIPAL TOTAL DEBT DEBT
YEAR PAYMENT PAYMENT SERVICE OUTSTANDING
(as of 12/31)
2011 $12,208,488 $0 $12,208,488 $237,770,000
2012 $12,063,488 $6,460,000 $18,523,488 $231,310,000
2013 $11,765,050 $6,750,000 $18,515,050 $224,560,000
2014 $11,457,206 $7,060,000 $18,517,206 $217,500,000
2015 $11,137,100 $7,365, 000 $18,502,100 $210,135,000
2016 $10,778,900 $7,700,000 $18,478,900 $202,435,000
2017 $10,384,275 $8,085,000 $18,469,275 $194,350,000
2018 $9,969,900 $8,490,000 $18,459,900 $185, 860,000
2019 $9,523,763 $8,910,000 $18,433,763 $176,950,000
2020 $9,043,650 $9,380,000 $18,423,650 $167,570,000
2021 $8,538,338 $9,870,000 $18,408,338 $157,700,000
2022 $7,533,882 $28,395,000 $35,928,882 $129,305,000
2023 $6,003,900 $29,890,000 $35,893,900 $99,415,000
2024 $4,393,463 $31,460,000 $35,853,463 $67,955,000
2025 $2,698,500 $33,110,000 $35,808,500 $34,845,000
2026 $914,682 $34,845,000 $35,759,682 $0
Total: $138,414,585 $237,770,000 $376,184,585
On April 16, 2008, the CTA issued Capital Grant Receipts Revenue Bonds, Series 2008A
(Federal Transit Administration Section 5307 Formula Funds) and Series 2008 (Federal
Transit Administration Section 5309 Formula Funds) in the amount of $250 million, in
anticipation of the receipt of grants from the federal government pursuant to a full-funding
grant agreement. The bonds were issued to provide funds to finance or reimburse the CTA
for expenditures relating to a portion of the costs of capital improvements to the
Transportation System referred to as the “2008 Project.” The Federal Transit
Administration’s section 5307 program is a formula grant program for metropolitan areas
providing capital, operating or planning assistance for mass transportation. The section
5309 program is a formula grant program providing capital assistance for the
modernization of existing rail systems.
The Series 2008 (5309) and Series 2008A (5307) bonds bear interest ranging from 3.5 to
5.25 percent. Interest is payable semi-annually on June 1 and December 1 and the
remaining bonds mature serially through June 1, 2026. The debt service obligations are
paid by the capital funds.
The Capital Grant Receipts Revenue Bonds, Refunding Series 2010 refunded the maturities
dated June 1, 2010 through June 1, 2011 of the 5307 (Series 2004A, 2004B and 2006A)
and 5309 (Series 2008 and 2008A) bonds.
Capital Grant Receipts Revenue Bonds, Series 2008A (5309)
SCHEDULE V: $175,000,000 Capital Grant Receipts Revenue Bonds
(Federal Transit Administration Section 5309 Formula Funds)
Series 2008A Debt Service 2011-2026
PAYMENT INTEREST PRINCIPAL TOTAL DEBT DEBT
YEAR PAYMENT PAYMENT SERVICE OUTSTANDING
(as of 12/31)
2011 $8,649,275 $0 $8,649,275 $161,255,000
2012 $8,464,400 $7,395,000 $15,859,400 $153,860,000
2013 $8,085,400 $7,765,000 $15,850,400 $146,095,000
2014 $7,687,525 $8,150,000 $15,837,525 $137,945,000
2015 $7,269,775 $8,560,000 $15,829,775 $129,385,000
2016 $6,831,025 $8,990,000 $15,821,025 $120,395,000
2017 $6,358,475 $9,440,000 $15,798,475 $110,955,000
2018 $5,837,463 $9,935,000 $15,772,463 $101,020,000
2019 $5,276,050 $10,480,000 $15,756,050 $90,540,000
2020 $4,711,475 $11,055,000 $15,766,475 $79,485,000
2021 $4,144,850 $11,610,000 $15,754,850 $67,875,000
2022 $3,549,850 $12,190,000 $15,739,850 $55,685,000
2023 $2,909,100 $12,800,000 $15,709,100 $42,885,000
2024 $2,169,000 $13,470,000 $15,639,000 $29,415,000
2025 $1,336,500 $14,280,000 $15,616,500 $15,135,000
2026 $454,050 $15,135,000 $15,589,050 $0
Total: $83,734,213 $161,255,000 $244,989,213
On November 20, 2008, the CTA issued Capital Grant Receipts Revenue Bonds, Series
2008A (Federal Transit Administration Section 5309 Formula Funds) in the amount of
$175 million, in anticipation of the receipt of grants from the federal government pursuant
to a full-funding grant agreement. The bonds were issued to provide funds to finance or
reimburse the CTA for expenditures relating to a portion of the costs of capital
improvements to the Transportation System referred to as the “2008 Project.”
The Series 2008A (5309) bonds bear interest ranging from five to six percent. Interest is
payable semi-annually on June 1 and December 1 and the remaining bonds mature serially
through June 1, 2026. The debt service obligations are paid by the capital funds.
The Capital Grant Receipts Revenue Bonds, Refunding Series 2010 refunded the maturities
dated June 1, 2010 through June 1, 2011 of the 5307 (Series 2004A, 2004B and 2006A)
and 5309 (Series 2008 and 2008A) bonds.
Capital Grant Receipts Revenue Bonds, Refunding Series 2010 (5307) and Refunding Series
2010 (5309)
SCHEDULE VI: $90,715,000 Capital Grant Receipts Revenue Bonds
(Federal Transit Administration Section 5307 & 5309 Formula Funds)
Refunding Series 2010 Total Debt Service 2011-2028
PAYMENT TOTAL TOTAL PRINCIPAL TOTAL DEBT DEBT
YEAR INTEREST SERVICE OUTSTANDING
(as of 12/31)
2011 $4,535,750 $0 $4,535,750 $90,715,000
2012 $4,535,750 $0 $4,535,750 $90,715,000
2013 $4,535,750 $0 $4,535,750 $90,715,000
2014 $4,535,750 $0 $4,535,750 $90,715,000
2015 $4,535,750 $0 $4,535,750 $90,715,000
2016 $4,535,750 $0 $4,535,750 $90,715,000
2017 $4,535,750 $0 $4,535,750 $90,715,000
2018 $4,535,750 $0 $4,535,750 $90,715,000
2019 $4,535,750 $0 $4,535,750 $90,715,000
2020 $4,535,750 $0 $4,535,750 $90,715,000
2021 $4,535,750 $0 $4,535,750 $90,715,000
2022 $4,535,750 $0 $4,535,750 $90,715,000
2023 $4,535,750 $0 $4,535,750 $90,715,000
2024 $4,535,750 $0 $4,535,750 $90,715,000
2025 $4,535,750 $0 $4,535,750 $90,715,000
2026 $4,535,750 $0 $4,535,750 $90,715,000
2027 $3,429,375 $44,255,000 $47,684,375 $46,460,000
2028 $1,161,500 $46,460,000 $47,621,500 $0
Total: $77,162,875 $90,715,000 $167,877,875
On May 6, 2010, the CTA issued Capital Grant Receipts Revenue Bonds, Refunding Series
2010 (Federal Transit Administration Section 5307 Formula Funds) (Federal Transit
Administration Section 5309 Formula Funds), in the amount of $90.7 million, in
anticipation of the receipt of grants from the federal government pursuant to a full-funding
grant agreement. The bonds were issued to refund a portion of the outstanding 5307 and
5309 bonds and to pay costs of issuance.
The Refunding Series 2010 bonds bear interest of five percent. Interest is payable semi-
annually on June 1 and December 1 and the bonds mature on June 1, 2027 and June 1,
2028. The debt service obligations are paid by the capital funds.
Capital Grant Receipts Revenue Bonds, Series 2011
On October 13, 2011, the CTA Board approved the issuance of up to $125 million of Capital
Grant Receipts Revenue Bonds (Federal Transit Administration Section 5307 Urbanized
Area formula funds and Federal Transit Administration Section 5309 Fixed Guideway
Modernization formula funds) – Series 2011, to refund certain outstanding CTA bonds and
finance the purchase of rail cars.
Bonds Payable-Sales Tax Revenue Bonds
Sales and Transfer Tax Receipts Revenue Bonds, 2008A Series (Pension Funding) and 2008B
Series (Retiree Health Care Funding)
SCHEDULE VII: $1,936,855,000 Sales and Transfer Tax Receipts Revenue Bonds
(Public Acts 94-839 and 95-0708)
Series 2008A and 2008B Total Debt Service 2011-2040
PAYMENT INTEREST PRINCIPAL TOTAL DEBT DEBT
YEAR PAYMENT PAYMENT SERVICE OUTSTANDING
(as of 12/31)
2011 $131,366,832 $0 $131,366,832 $1,936,855,000
2012 $131,366,832 $10,020,000 $141,386,832 $1,926,835,000
2013 $130,854,008 $25,720,000 $156,574,008 $1,901,115,000
2014 $129,537,659 $27,040,000 $156,577,659 $1,874,075,000
2015 $127,834,139 $28,740,000 $156,574,139 $1,845,335,000
2016 $126,023,519 $30,550,000 $156,573,519 $1,814,785,000
2017 $124,098,869 $32,475,000 $156,573,869 $1,782,310,000
2018 $122,052,944 $34,520,000 $156,572,944 $1,747,790,000
2019 $119,878,184 $36,695,000 $156,573,184 $1,711,095,000
2020 $117,566,399 $39,010,000 $156,576,399 $1,672,085,000
2021 $115,108,769 $41,465,000 $156,573,769 $1,630,620,000
2022 $112,496,474 $44,080,000 $156,576,474 $1,586,540,000
2023 $109,455,395 $47,120,000 $156,575,395 $1,539,420,000
2024 $106,204,586 $50,370,000 $156,574,586 $1,489,050,000
2025 $102,729,560 $53,845,000 $156,574,560 $1,435,205,000
2026 $99,014,793 $57,560,000 $156,574,793 $1,377,645,000
2027 $95,043,729 $61,530,000 $156,573,729 $1,316,115,000
2028 $90,798,774 $65,775,000 $156,573,774 $1,250,340,000
2029 $86,260,957 $70,310,000 $156,570,957 $1,180,030,000
2030 $81,410,270 $75,165,000 $156,575,270 $1,104,865,000
2031 $76,224,636 $80,350,000 $156,574,636 $1,024,515,000
2032 $70,681,290 $85,895,000 $156,576,290 $938,620,000
2033 $64,755,394 $91,820,000 $156,575,394 $846,800,000
2034 $58,420,732 $98,150,000 $156,570,732 $748,650,000
2035 $51,649,364 $104,925,000 $156,574,364 $643,725,000
2036 $44,410,588 $112,165,000 $156,575,588 $531,560,000
2037 $36,672,324 $119,905,000 $156,577,324 $411,655,000
2038 $28,400,078 $128,170,000 $156,570,078 $283,485,000
2039 $19,557,630 $137,015,000 $156,572,630 $146,470,000
2040 $10,104,965 $146,470,000 $156,574,965 $0
Total: $2,719,979,690 $1,936,855,000 $4,656,834,690
On July 30, 2008, the CTA issued Sales and Transfer Tax Receipts Revenue Bonds in the
amount of $1.94 billion to fund the employee retirement plan and to create a retiree health
care trust. The bonds were sold in two tranches: a $1.3 billion Series A to fund the
employee retirement plan, and a $640 million Series B to fund a permanent trust that was
established to cover other post-employment benefits for retiree health care. The bonds are
secured primarily by a pledge of and lien on the Sales Tax Receipts Fund and the Transfer
Tax Receipts Fund deposits. The bonds were issued pursuant to the pension and retiree
health care reform requirements set forth in Public Acts 94-839 and 95-0708.
Public Act 94-839 required the CTA to make contributions to its retirement system in an
amount which, together with the contributions of its participants, interest earned on
investments and other income, was sufficient to bring the total assets of the retirement
system up to 90 percent of its total actuarial liabilities by the end of fiscal year 2058.
Additionally, Public Act 94-839 required that the Retirement Plan’s pension and retiree
health care programs be separated into two distinct trusts by December 31, 2008.
Public Act 95-0708 modified this directive slightly and added a number of other
requirements. First, a new Retirement Plan Trust will be created to manage the Retirement
Plan assets. Second, CTA contributions and employee contributions were increased. Third,
in addition to the requirement that the Retirement Plan be 90 percent funded by the end of
2059, there is a new requirement that the Retirement Plan be funded at a minimum of 60
percent by September 15, 2009. Any deviation from the stated projections could result in a
directive from the State of Illinois Auditor General to increase the CTA and employee
contributions. Fourth, Public Act 95-708 authorized the CTA to issue $1.9 billion in pension
obligation bonds to fund the pension and retiree health care. Finally, the legislation
provides that the CTA will have no future responsibility for retiree healthcare costs after
the bond funding. In accordance with Public Act 95-708, all retiree healthcare benefits
were to be paid from the newly established Retiree Health Care Trust no earlier than
January 1, 2009 but no later than July 1, 2009.
The Series 2008A and 2008B bonds bear interest ranging from 5.1 percent to 6.9 percent.
Scheduled interest on the 2008A and 2008B bonds was funded through June 1, 2009 and
June 1, 2010, respectively, with bond proceeds and interest earnings thereon. Interest is
payable semi-annually on June 1 and December 1 and the bonds mature serially on
December 1, 2012 through June 1, 2040. The debt service obligations are paid by the
operating funds.
Sales Tax Receipts Revenue Bonds, Series 2010A and Taxable Series 2010B (Build America
Bonds)
SCHEDULE VIII: $550,000,000 Sales Tax Receipts Revenue Bonds
Series 2010A and 2010B Total Debt Service 2011-2040
Payment Interest Principal TOTAL DEBT Debt
year Payment Payment SERVICE Outsanding
(as of 12/31)
2011 $32,976,651 $- $32,976,651 $550,000,000
2012 $32,976,651 $- $32,976,651 $550,000,000
2013 $32,976,651 $- $32,976,651 $550,000,000
2014 $32,976,651 $- $32,976,651 $550,000,000
2015 $32,976,651 $5,715,000 $38,691,651 $544,285,000
2016 $32,702,701 $7,675,000 $40,377,701 $536,610,000
2017 $32,318,951 $9,925,000 $42,243,951 $526,685,000
2018 $31,832,201 $10,415,000 $42,247,201 $516,270,000
2019 $31,333,751 $10,915,000 $42,248,751 $505,355,000
2020 $30,798,001 $11,510,000 $42,308,001 $493,845,000
2021 $30,214,444 $12,095,000 $42,309,444 $481,750,000
2022 $29,583,085 $12,720,000 $42,303,085 $469,030,000
2023 $28,900,021 $13,405,000 $42,305,021 $455,625,000
2024 $28,166,767 $14,135,000 $42,301,767 $441,490,000
2025 $27,372,380 $14,930,000 $42,302,380 $426,560,000
2026 $26,446,720 $15,855,000 $42,301,720 $410,705,000
2027 $25,463,710 $16,835,000 $42,298,710 $393,870,000
2028 $24,419,940 $17,880,000 $42,299,940 $375,990,000
2029 $23,311,380 $18,985,000 $42,296,380 $357,005,000
2030 $22,134,310 $20,155,000 $42,289,310 $336,850,000
2031 $20,884,700 $21,400,000 $42,284,700 $315,450,000
2032 $19,557,900 $22,725,000 $42,282,900 $292,725,000
2033 $18,148,950 $24,135,000 $42,283,950 $268,590,000
2034 $16,652,580 $31,820,000 $48,472,580 $236,770,000
2035 $14,679,740 $33,785,000 $48,464,740 $202,985,000
2036 $12,585,070 $35,875,000 $48,460,070 $167,110,000
2037 $10,360,820 $38,090,000 $48,450,820 $129,020,000
2038 $7,999,240 $40,455,000 $48,454,240 $88,565,000
2039 $5,491,030 $42,955,000 $48,446,030 $45,610,000
2040 $2,827,820 $45,610,000 $48,437,820 $0
Total: $719,069,461 $550,000,000 $1,269,069,461
On March 23, 2010, the CTA issued Sales Tax Receipts Revenue Bond Series 2010A and
Taxable Series 2010B (Build America Bonds) in the amount of $550 million to fund or
reimburse the Authority for prior expenditures of the “2010 Project”, capitalize a portion of
interest on the bonds, fund a portion of the consolidated debt service reserve fund on the
bonds, and to pay costs of issuance on the bonds. The Series 2010B Bonds are issued as
bonds designated as “Build America Bonds” under the provisions of the American Recovery
and Reinvestment Act of 2009. The 2010 Project means, collectively, capital improvements
to the transportation system and specifically the purchase of rail cars, rail car overhaul and
rehabilitation, and the replacement and upgrade of rail track and structure.
The Series 2010A bonds bear interest ranging from four to five percent with interest
payable semi-annually on June 1 and December 1, commencing December 1, 2010. The
Series 2010A bonds mature serially on December 1, 2015 through December 1, 2019. The
Taxable Series 2010B bonds bear interest ranging from 5.07 to 6.20 percent with interest
payable semi-annually on June 1 and December 1, commencing December 1, 2010. The
Taxable Series 2010B bonds mature annually each December 1, 2020 through December 1,
2040. The debt service obligations are paid by the capital funds.
Sales Tax Receipts Revenue Bonds, Series 2011
On October 13, 2011, the CTA Board approved the issuance of up to $500 million in Sales
Tax Receipts Revenue Bonds – Series 2011, to finance the purchase and refurbishment of
rail cars.
Summary of Total Bond Debt Service for all Outstanding Bonds
Schedule IX: CTA TOTAL DEBT SCHEDULE 2011 – 2040
PAYMENT INTEREST PRINCIPAL TOTAL DEBT DEBT
YEAR PAYMENT PAYMENT SERVICE OUTSTANDING
(as of 12/31)
2011 $208,369,096 $0 $208,369,096 $3,347,650,000
2012 $207,230,765 $56,940,000 $264,170,765 $3,290,710,000
2013 $204,334,072 $74,915,000 $279,249,072 $3,215,795,000
2014 $200,502,422 $78,730,000 $279,232,422 $3,137,065,000
2015 $196,157,708 $88,680,000 $284,837,708 $3,048,385,000
2016 $191,284,300 $95,200,000 $286,484,300 $2,953,185,000
2017 $186,256,819 $93,995,000 $280,251,819 $2,859,190,000
2018 $181,042,757 $99,130,000 $280,172,757 $2,760,060,000
2019 $175,528,747 $104,560,000 $280,088,747 $2,655,500,000
2020 $169,711,649 $110,390,000 $280,101,649 $2,545,110,000
2021 $163,577,400 $116,450,000 $280,027,400 $2,428,660,000
2022 $157,699,040 $97,385,000 $255,084,040 $2,331,275,000
2023 $151,804,165 $103,215,000 $255,019,165 $2,228,060,000
2024 $145,469,566 $109,435,000 $254,904,566 $2,118,625,000
2025 $138,672,690 $116,165,000 $254,837,690 $2,002,460,000
2026 $131,365,995 $123,395,000 $254,760,995 $1,879,065,000
2027 $123,936,814 $122,620,000 $246,556,814 $1,756,445,000
2028 $116,380,214 $130,115,000 $246,495,214 $1,626,330,000
2029 $109,572,337 $89,295,000 $198,867,337 $1,537,035,000
2030 $103,544,580 $95,320,000 $198,864,580 $1,441,715,000
2031 $97,109,336 $101,750,000 $198,859,336 $1,339,965,000
2032 $90,239,190 $108,620,000 $198,859,190 $1,231,345,000
2033 $82,904,344 $115,955,000 $198,859,344 $1,115,390,000
2034 $75,073,312 $129,970,000 $205,043,312 $985,420,000
2035 $66,329,104 $138,710,000 $205,039,104 $846,710,000
2036 $56,995,658 $148,040,000 $205,035,658 $698,670,000
2037 $47,033,144 $157,995,000 $205,028,144 $540,675,000
2038 $36,399,318 $168,625,000 $205,024,318 $372,050,000
2039 $25,048,660 $179,970,000 $205,018,660 $192,080,000
2040 $12,932,785 $192,080,000 $205,012,785 $0
Total $3,852,505,987 $3,347,650,000 $7,200,155,987
13 Annual Budget Process
Budget Calendar
The RTA Act requires the RTA Board to adopt a consolidated annual budget and two-year
financial plan. The budgetary process contains three phases: budget development, budget
adoption, and budget execution and administration.
June
. Budget call from the RTA
September
. RTA releases budget marks
October
. Budget release to public
November
. Public hearing
. Cook County Board meeting
. CTA Board approval
. Submit budget to the RTA
December
. RTA Board Approval
Budget Adoption
June 23
RTA releases the requirements that the Service Boards must follow for
the development of their 2012 budget, two-year financial plan, and five-
year capital program.
September 15
RTA announces marks. The RTA Board is required by the RTA Act to set
operating funding marks for the three Service Boards by September 15.
The marks include estimates of available operating funding for the
budget and financial plan, and a required recovery ratio (the ratio or
percentage of operating expenses that must be recovered from system-
generated revenues) for the budget. Upon issuance of the budget marks,
the CTA revises its expenses and revenues to conform to the marks.
October 19
CTA Budget released to the public. The statute requires that documents
be available for public inspection 21 days prior to the public hearing.
November 10
Public Hearing to receive comments from the public.
November 15
Budget presentation to the County. The CTA presents the budget to the
Cook County Board after the Public Hearing but prior to the CTA
adoption of the budget, as required by the RTA Act.
November 15
Chicago Transit Board approval. The Chicago Transit Board incorporates
any changes and adopts the budget and two-year financial plan.
November 15
Budget submission to the RTA. The RTA Act requires that the CTA, by
November 15, submit its detailed budget and financial plan to the RTA.
The budget must conform to the marks set by the RTA on September 15.
December 15
RTA Board approval. The RTA Board adopts the proposed budget and
financial plan upon the approval of nine of the RTA's 13 directors.
RTA Statutory Requirements for Budget Approval
The RTA Board adopts the proposed budget and plan upon the approval of nine of the RTA’s 13
directors. If the budget meets the RTA’s criteria, which are identified in the RTA Act and
outlined below, then the RTA is required to adopt the budget by December 31. If the RTA Board
does not approve the budget, the RTA Board cannot release any funds for the periods covered
by the budget and two-year financial plan, except the proceeds of sales taxes due by the
statutory formula to the CTA, until the budget conforms to the criteria specified in the Act.
The criteria for budget and plan approval per RTA Act are:
1. Balanced Budget: The budget and plan show a balance between (A) anticipated
revenues from all sources including operating subsidies and (B) the costs of providing
the services specified and of funding any operating deficits or encumbrances incurred in
prior periods, including provision for payment when due of principal and interest of
outstanding indebtedness.
2. Cash Flow: The budget and plan show cash balances including the proceeds of any
anticipated cash flow borrowing sufficient to pay with reasonable promptness all costs
and expenses incurred.
3. Recovery Ratio: The budget and plan provide for a level of fares or charges and
operating or administrative costs for the public transportation provided by or subject to
the system-generated revenue recovery ratio.
4. Assumptions: The budget and plan are based upon and employ assumptions and
projections, which are reasonable and prudent.
5. Financial Practices: The budget and plan have been prepared in accordance with
sound financial practices as determined by the RTA Board.
6. Other Requirements: The budget and plan meet such other financial, budgetary, or
fiscal requirements that the RTA Board may by rule or regulation establish.
7. Strategic Plan: The budget and plan are consistent with the goals and objectives
adopted by the RTA Board in the Strategic Plan.
Budget Execution & Administration
After the proposed budget and financial plan are adopted, the budget execution and
administration phase begins. Detailed budgets of operating revenues and expenses
calendarized for the 12 months of the budget year are forwarded to the RTA. The CTA’s actual
monthly financial performance is measured against the monthly budget and reported to the
RTA Board. Detailed capital grant applications are prepared and submitted to funding agencies.
Quarterly capital program progress reports are provided to the RTA Board to monitor
expenditures and obligations for capital program items.
Amendment Process
As the CTA monitors actual performance, changes may be required to the budget. The RTA
might revise its sales tax forecast, which could result in less public funding for the CTA. This in
turn would require reduced spending to meet the revised funding mark and recovery ratio.
When the RTA amends a revenue estimate because of changes in economic conditions,
governmental funding, a new program, or other reasons, the CTA has 30 days to revise its
budget to reflect these changes. The RTA’s Finance Committee must approve all amendments
before they are recommended to the RTA Board for approval. The budget may also be
amended based upon financial condition and results of operations if the CTA is significantly out
of compliance with its budget for a particular quarter. The RTA Board, by a vote of 12 members,
may require the CTA to submit a revised financial plan and budget, which show that the marks
will be met in a time period of less than four quarters. If the RTA Board determines that the
revised budget is not in compliance with the marks, the RTA will not release discretionary
funds. RTA discretionary funds include monies from the Public Transportation Fund (PTF),
discretionary sales tax and other state funding.
If the Authority submits a revised financial plan and budget which show the marks will be met
within a four-quarter period, then the RTA Board shall continue to release funds.
As capital projects proceed, changes may be required to project budgets. Capital funding marks
may be revised based on actual federal or state appropriations actions. When revisions are
necessary, the CTA will amend its five-year capital program and submit the changes to the RTA
for RTA Board action.
14 Accounting System and Financial Controls
Organization Overview
The CTA was formed in 1945 pursuant to the Metropolitan Transportation Authority Act
passed by the Illinois Legislature. The CTA was established as an independent
governmental agency (an Illinois municipal corporation) “separate and apart from all other
government agencies” to consolidate Chicago’s public and private mass transit carriers.
The City Council of the City of Chicago granted the CTA the exclusive right to own and
operate a unified, local transportation system.
The Regional Transportation Authority Act provides for the funding of public
transportation in the six-county region of Northeastern Illinois. The Act established a
regional oversight board, the RTA, and designated three Service Boards: the CTA, the
Commuter Rail Board and the Suburban Bus Board. The Act requires, among other things,
that the RTA approve the annual budget of the CTA; that the CTA obtain agreement from
local governmental units to provide an annual monetary contribution of at least $5 million
for public transportation and that the CTA, collectively with the other Service Boards,
finance at least 50 percent of operating costs, excluding depreciation and certain other
items, with system-generated revenues.
Financial Reporting Entity
In conformance with Governmental Accounting Standards Board (GASB) standards, the
CTA includes in its financial statements all funds over which the Chicago Transit Board
exercises oversight responsibility. Oversight responsibility is defined to include the
following considerations: selection of governing authority, designation of management,
ability to significantly influence operations, accountability for fiscal matters, and scope of
an organization’s public service and/or special financing relationships.
Based on the above criteria, the fund established for the employees’ pension plan has been
determined not to be part of the reporting entity. The plan is a legal entity, which is
separate and distinct from the CTA. The plan is administered by its own board of trustees
comprised of five union representatives, five representatives appointed by the CTA, and a
professional fiduciary appointed by the RTA. The CTA has no direct authority and assumes
no fiduciary responsibility with regards to the employees’ pension plan. Accordingly, the
accounts of the plan are not included in the CTA’s financial statements.
Based upon the criteria set forth by the GASB, the CTA is not considered a component unit
of the RTA because the CTA maintains separate management, exercises control over all
operations, and is fiscally independent from the RTA. Because governing authority of the
CTA is entrusted to the Chicago Transit Board - comprised of four members appointed by
the Mayor of the City of Chicago and three members appointed by the Governor of the State
of Illinois - the CTA is not financially accountable to the RTA and is not included as a
component unit in the RTA’s financial statements. As statutorily required, the CTA is
combined in pro forma statements with the RTA.
Budget and Budgetary Basis of Accounting
The CTA is required under Section 4.01 of the RTA Act to submit for approval an annual
budget to the RTA by November 15th of each year. The budget is prepared on a basis
consistent with generally accepted accounting principles (GAAP), except for the exclusion
of certain income and expenses. These amounts include provision for injuries and damage
in excess of budget, depreciation expense, pension expense in excess of pension
contributions, revenue from leasing transactions, interest income, expense from
sale/leaseback transactions, and capital contributions.
The Act requires that expenditures for operations and maintenance in excess of budget
cannot be made without the approval of the Chicago Transit Board. All annual
appropriations lapse at fiscal year-end. The RTA, in accordance with the RTA Act, has
approved, for budgetary-basis presentation, the CTA’s recognition of the amounts of the
injury and damage reserve and pension contribution in the approved annual budget.
Provisions in excess of the approved annual budget that are unfunded are excluded from
the recovery ratio calculation.
The RTA funds the budgets of the Service Boards rather than the actual operating expenses
in excess of system-generated revenue. Favorable variances from budget remain as
operating assistance to the CTA.
The RTA approves the proposed budget based on four criteria:
. That the budget is in balance with regard to anticipated revenues from all sources,
including operating subsidies, costs of providing services and funding operating
deficits;
. That the budget provides for sufficient cash balances to pay, with reasonable
promptness, costs and expenses when due;
. That the budget provides for the CTA to meet its required system-generated
revenue recovery ratio;
. That the budget is reasonable and prepared in accordance with sound financial
practices, and complies with such other RTA requirements as the RTA Board of
Directors may establish.
The RTA monitors the CTA’s performance against the budget on a quarterly basis. If, in the
judgment of the RTA, this performance is not substantially in accordance with the CTA’s
budget for such period, the RTA shall so advise the CTA and the CTA must, within the
period specified by the RTA, submit a revised budget to bring the CTA into compliance with
the budgetary requirements listed above.
Financial Reporting
Overview
The CTA’s financial statements are prepared in conformity with GAAP. GASB is the
accepted standard-setting body for establishing governmental accounting and reporting
principles. The CTA applies Financial Accounting Standards Board (FASB)
pronouncements and Accounting Principles Board (APB) opinions issued on or before
November 30, 1989, unless those pronouncements conflict with or contradict GASB
pronouncements, in which case the GASB prevails.
Basis of Presentation
The financial statements provide information about the CTA’s business-type and fiduciary
(Open Supplemental Retirement Plan) activities. Separate financial statements for each
category are presented. The financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the
timing of the related cash flows.
The financial statements for the CTA’s business-type activities are used to account for the
CTA’s activities that are financed and operated in a manner similar to a private business
enterprise. Accordingly, the CTA maintains its records on the accrual basis of accounting.
Under this basis, revenues are recognized in the period in which they are earned, expenses
are recognized in the period in which they are incurred, depreciation of assets is
recognized, and all assets and liabilities associated with the operation of the CTA are
included in the balance sheet.
The financial statements for the fiduciary activities are used to account for the assets held
by the CTA in trust for the payment of future retirement benefits under the Open
Supplemental Retirement Plan. The assets of the Open Supplemental Retirement Plan
cannot be used to support CTA operations.
Fiscal year
The operating cycle of the CTA is based on the calendar year. Prior to 1995, the CTA
operated on a 52-week fiscal year composed of four quarters of “four week, four week, and
five week” periods. Periodically, a 53-week fiscal year was required to keep the fiscal year
aligned with the calendar.
Internal Controls
Overview
CTA management is responsible for establishing and maintaining an internal control
system designed to ensure that the assets of the CTA are protected from loss, theft, or
misuse, and to ensure that adequate accounting data are compiled to allow for the
preparation of financial statements in conformity with GAAP. The internal control system
is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that the cost of internal control
should not exceed the benefits likely to be derived; and that the evaluation of costs and
benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. The CTA’s internal
accounting controls are reasonable under the existing budgetary constraints, and
adequately safeguard assets as well as provide reasonable assurance of proper recording of
all financial transactions.
Each year, the CTA conducts internal and external audits to test the adequacy of its internal
control system. Where weaknesses are identified, the CTA takes immediate action to
correct such weaknesses to ensure a sound internal control system.
Single Audit
As a recipient of federal, state and RTA financial assistance, the CTA is responsible for
ensuring that an adequate internal control system is in place to ensure compliance with
applicable laws and regulations related to those programs. This internal control system is
subject to periodic evaluation by management and the internal audit staff of the CTA, as
well as external auditors.
As part of the CTA’s single audit, tests are performed to determine the adequacy of the
internal control system, including the portion related to federal financial assistance
programs, as well as to determine that the CTA has complied with applicable laws and
regulations.
Budgeting Controls
In addition, the CTA maintains budgetary controls to ensure compliance with legal
provisions embodied in the annual budget appropriated by the Chicago Transit Board and
approved by the RTA. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established for total
operating expenses. The CTA also maintains a position control system which requires that
every job that is not part of scheduled transit operations be budgeted on an annual basis.
15 Financial Policy
Financial Planning Policies
Financial planning policies incorporate both short- and long-term strategies focused on the
principles of a balanced budget. These policies ensure proper resource allocation and the
continued financial viability of the organization. The CTA reviews the policies on an annual
basis as part of the budget process to ensure continued relevance to the organization’s
goals and objectives.
A Balanced Budget
The budget reflects the short-term goals of the agency. Following development, adoption
and implementation of the annual budget, the CTA continually monitors actual monthly
financial performance against the budget. Each month, the CTA performs a detailed line-
by-line analysis of revenues and expenses to determine operating variances. This includes
reviewing position headcount, analyzing material and other expenses, examining revenue
scenarios for potential shortfalls, applying seasonality spread in relation to business
activities, and conducting continuous audits to ensure a balanced budget. Where potential
year-end variances to budget are projected, the CTA uses various strategies to manage the
variance. A monthly financial performance report is produced and submitted to the CTA
and RTA boards for their review.
The RTA Act requires the CTA to have a balanced budget each year. As such, the CTA takes
care in the development of its budget to ensure that assumptions and estimates used to
develop the budget are reasonable. The CTA analyzes data from recent years and develops
forecasts that are built on actual expense trends. The CTA also researches market trends
and consultants’ studies that could impact fuel and healthcare expenses. All expenses
match available revenues at the time of the budget, including system-generated and other
revenues, as well as public funding.
Long-Range Planning
The CTA also develops a longer-range plan for the period beyond the current budget and
two-year financial plan. This ten-year plan assesses the implications of current and
proposed budgets, policy priorities and financial assumptions. Additionally, external
economic studies, demographics and traffic patterns are used to estimate the future transit
needs of the Chicago metropolitan area, as well as to establish the future system
requirements of the CTA. Current infrastructure needs, as well as system growth needs, are
developed, prioritized and incorporated into the long-term plan.
Capital Investment Planning
The CTA continuously maintains an inventory and assessment of the condition of all major
capital assets. A detailed five-year capital program prioritizes the short-term capital needs
that are necessary to bring the system to a state of good repair, as well as to maximize
customer benefits in the regional transit system. A 20-year capital program condition and
assessment report provides a broader list of the CTA’s capital investment needs.
Revenue Policies
The principal operating revenues of the CTA are bus and rail passenger fares, which are
established by the CTA’s Board. The CTA also recognizes as revenue the rental fees
received from concessionaires, the fees collected from advertisements on CTA property,
and other miscellaneous operating revenues. A clear understanding of CTA revenue
sources is essential to maintaining a balanced budget and for providing quality service to
customers.
Revenue Diversification
The CTA’s revenue diversification policy allows the agency to manage potential fluctuations
in individual revenue streams. Organizational units are encouraged to submit additional
revenue ideas for consideration. The CTA has embarked upon numerous alternative
revenue enhancements, such as vending machines and ATMs on the system, wireless
communications in the subway tunnels, digital communications, and parking under the
elevated rights-of-way. Additionally, creative financing transactions have produced
millions of dollars over the past few years. The CTA continues to find ways to enhance
system advertising, charters and concession revenues, as well as revenue from
investments.
Use of One-Time Revenues
Extraordinary revenues from the sale of surplus assets provide one-time benefits to the
CTA. These additional revenues are used to fund non-recurring expense items.
Expenditure Policies
CTA expenditures include the costs of operating the mass transit system, administrative
expenses, and depreciation on capital assets. Prudent expenditure planning, monitoring
and accountability are key elements of fiscal stability.
Debt Capacity, Issuance and Management
These policies serve as a management tool to ensure that the CTA:
. may utilize leverage as part of its overall funding strategy to speed up investment in
the system;
. utilizes debt in the most efficient and effective manner to fund operating and capital
improvement programs; and
. makes full and timely repayment of all borrowings.
Moreover, the policy provides broad guidelines to ensure that the agency achieves the
lowest possible cost of capital within prudent risk parameters, secures ongoing access to
the capital markets, and authorizes the appropriate amount, type and structure of debt for
various financing situations.
Expenditure Accountability
Each month, the CTA compares its operating and capital performance to budget. Any
deviations from budget are reviewed and corrective measures are implemented by the
appropriate organizational units. Each unit is responsible for maintaining budget
compliance. Actual capital expenditures are also reviewed monthly and adjustments to
capital projects spending are made accordingly.
16 Economic Indicators
Overview
Economists were optimistic that 2011 would bring a turnaround and sustainable recovery
to the United States economy. With a bleak unemployment outlook, the downgraded US
credit rating by Standard & Poor’s, the recent, unprecedented roller coaster on Wall Street,
and the worsening housing market, the situation is dire and has spurred discussions that
the economy could fall into a fresh recession. The recovery that is becoming more
imperative by the day is needed outside of the United States, as well, as European leaders
face mounting pressure to find tangible solutions to their own debt problems that are
straining the EU to its breaking point.
To date, 8.5 million jobs have been lost in the recession while only 1.75 million of those
jobs have been regained. Nearly half of those currently unemployed have been out of work
for more than six months, by far the largest ratio in the period post-World War II. These
unemployment figures continue to be a significant drain on the economy as a whole and on
consumer spending in particular. Consumer spending dropped in June 2011 for the first
time in nearly two years, incomes have remained virtually flat, and the economy continues
to lack any semblance of positive momentum. Economists believe that, if the US is to
experience a financial recovery, it will have to come from households deciding to spend
money again. There are few to no signs that consumers are willing to do that – or that they
have the ability. Consumer confidence remains at all-time lows, further complicating a
recovery.
There are some relatively optimistic signs that the economy wants to turn around,
including exports and business investment in equipment and software, and an increase in
motor vehicle sales, the latter of which had struggled for several months following the
earthquake in Japan. Economists expect a modest increase in real GDP through 2012, and a
modest decrease in the unemployment rate through the end of 2013. The Federal Reserve
has plans to continue to lead the country and the world into a sustainable, economic
recovery, but it is yet to be determined when the effects will begin to be felt.
According to the United States Bureau of Economic Analysis, national Gross Domestic
Product (GDP) experienced a negative growth rate beginning in the first quarter of 2008,
and reached its lowest level in that timeframe in the first quarter of 2009. It increased fairly
steadily after the second quarter of 2009, but began decreasing in early 2010. The revised
growth rate of the first quarter of 2011 was 0.09 percent, but it began to climb through the
second quarter.
The GDP growth rate of Chicago has performed poorly even compared to the national rate.
Seeing a high in recent years in 2004, GDP in Chicago had only minor fluctuations in 2005
to 2007, with 2008 showing a steep decline and 2009 bringing the region down even
further. In 2010, however, the growth rate increased to 1.94 percent—the first positive
swing since mid-2005.
Consumer Price Index (CPI)
The Consumer Price Index (CPI) is a measure
of the average change over time in the prices
paid by urban consumers for a fixed market
basket of consumer goods and services. It is
based on prices of food, clothing, shelter,
fuels, transportation fares, charges for
doctors’ and dentists’ services, and other
day-to-day goods and services. It is a major
measure for adjusting consumer costs when
the intent is to allow them to purchase, at
today’s prices, a market basket of goods and services equivalent to one that they could
purchase in an earlier period.
Taking a closer look at the national and Chicago region rates during the period from
February 2009 through August 2011, one finds the monthly CPI fluctuating between -0.5
percent and 3.4 percent. Chicago CPI corresponds with the national CPI for most months
during this period. In December 2009, the national CPI decreased by 0.18 percent from the
previous month, while the CPI of Chicago area decreased by 0.48 percent, reaching its
lowest level since January 2009.
Producer Price Index (PPI)
Similar to CPI, Producer Price Index (PPI) is another inflationary indicator, measuring
average changes in prices received by domestic producers for their output. Seven
commodities are selected: finished goods, gasoline, metals and metal products, industrial
commodities less fuel, lumber, iron and steel and transportation equipment. Illustrated
here are three of those commodities: industrial commodities less fuel, fuel, and iron and
steel.
From January 2009 to December 2010, the
PPI of fuel experienced a significant increase,
while iron and steel saw a more mild increase,
and other commodities remained fairly flat.
Unemployment Rate
Prior to 2009, the national unemployment
rate did not experience much fluctuation.
However, the rate began climbing in 2007,
peaking at 10.1 percent in October 2009.
Since the end of 2009, the rate has been
hovering between nine and 10 percent. The
monthly rates have shown greater fluctuation
and Chicago has seen its unemployment rate
jump as high as 11.7 percent in January 2010.
While the chart indicates data points on an average-annual basis year-over-year, August
2011 versus August 2010, the Chicago rate is more than a full percentage point above the
national average.
Non-Farm Payroll
The non-farm employment in the
Chicago metropolitan area is consistent
with the national trend. After a slight
increase in 2007, non-farm jobs in
Chicago decreased in March 2010, but
have added 0.4 percent when comparing
May 2010 to May 2011. In August 2011,
total nonfarm payroll employment
increased by 89,000 following little
growth over the previous two months.
Federal Funds Rate
The Federal Funds Rate is the interest
rate at which banks lend balances at the
Federal Reserve to other depository
institutions, usually overnight. As a
means of promoting investment during
the current recession, the Federal
Funds Rate was lowered significantly to
encourage banks to lend money, as well
as to aid consumers and corporations
with investment, all with a goal of
boosting the economic recovery. Since
November 2008, the rate has remained
between 0.0 and 0.4 percent, the lowest level since the 1950s. The rate ended 2010 at 0.18
percent and as of August 2011 sits at 0.10 percent. The FOMC anticipates that economic
conditions will warrant these exceptionally low levels of the federal funds rate until at least
mid-2013.
Ten-Year U.S. Treasury Yield
The ten-year Treasury note is the most
frequently-quoted security when
discussing the performance of the US
government bond market, and is used to
convey the market's perspective on
longer-term, macroeconomic
expectations. After reaching 4.1 percent
in June 2008, the treasury yield is
currently at its lowest monthly level
since January 2008, showing a yield of
only 2.3 percent.
When looking at daily rates, the yield touched an all-time low of 2.0346 percent in August
2011 amid concerns that the risks of falling into another recession were increasing.
Another factor is Standard & Poor’s downgrading of the US credit rating, as well as
European debt problems showing signs of spreading.
Crude Oil Price
Crude oil prices are determined by
worldwide supply and demand. World
economic growth is the biggest driver of
demand, with growing economies
accounting for over 35 percent of the
world’s total energy consumption. In the
second half of 2008, world oil prices
declined sharply from their mid-year peak.
Prices increased through 2009 and
remained in the range of $70 to $85 per
barrel through November 2010. Prices are
projected to continue to gradually rise as the world economy recovers and sees a
corresponding increase in global demand. While this is projected, predictions of the future
of oil prices are highly uncertain.
The first half of 2011 saw significant
increases in oil prices per barrel,
peaking at $120.84 per barrel at the
end of April. The price in early August
was $104.51 per barrel.
On-highway No. 2 diesel fuel prices, in
dollars per gallon, began the year at a
low of $3.33. The price per gallon of
diesel fuel peaked three days after that
of crude oil, topping out at $4.12 per gallon.
Distribution of Top Wage Rate
Distribution of Rail Operators' Top
Hourly Wage Rates
Source: John Dash & Associates
This chart shows the distribution of top
hourly wage rates received by the rail
operators of 33 public transit agencies in
the United States. Close to 85 percent of
the agencies pay their rail operators at a
top rate below $30 per hour, with 13
agencies (39 percent) between $20 and
$25, nine agencies (27 percent) between
$25 and $30 and six agencies (18
percent) below $20. Only five agencies
(15 percent) pay the operators at the top
rate higher than $30. The CTA is in the
85th percentile with the top hourly wage
rate of $29.65.
Distribution of Bus Operators' Top
Hourly Wage Rates
Source: John Dash & Associates
A similar story is seen for the wage of
bus operators. As shown to the right, out
of 236 public transit systems in the US
with bus service, 215 of them (91
percent) pay their bus operators at a top
wage rate below $25 per hour and only
one agency pays a top rate higher than
$30 per hour. The top hourly wage rate
paid by the CTA for bus operators is
$29.65, the third highest after Boston
and New York City.
Funding
With increased awareness of sustainability, the national demand for public transit has seen
steady growth over the past two decades. Although ridership in the Chicago area
experienced some fluctuation, a growth trend had emerged in the beginning of the 21st
century, peaking in 2007.
17
Operating Statistics - System
Characteristics 2008 Actual 2009 Actual 2010 Actual 2011 2012 Budget
Forecast
Ridership
Avg. Daily Weekday 1,679,117 1,657,954 1,644,323 1,664,807 1,675,799
Avg. Daily Saturday 1,047,590 1,058,356 1,045,690 1,075,276 1,090,504
Avg. Daily Sunday 724,272 748,778 734,419 757,717 765,965
System Wide
Ridership 526,336,470 521,241,836 516,872,373 524,387,614 529,226,804
Expense
Top Operator Rate $26.87 $27.68 $28.65 $29.65 $29.65
Capital Expenditures $940,748,796 $671,951,812 $428,500,259 $540,490,137 $455,305,200
Revenue
Avg. Fare per Trip $0.90 $0.97 $0.99 $1.01 $1.02
Public Funding per
Trip $1.26 $1.15 $1.36 $1.12 $1.17
Operating Statistics - Bus
Characteristics 2008 Actual 2009 Actual 2010 Actual 2011 Forecast 2012 Budget
Expense
Scheduled
Transportation Expense $346,495,416 $342,314,285 $322,966,156 $361,027,415 $360,921,010
Garage Maintenance
Expense $188,358,282 $141,905,283 $129,783,814 $137,307,882 $142,322,556
Support Expense $23,471,673 $15,380,153 $13,965,761 $15,032,956 $14,129,913
Heavy Maintenance
Expense $40,687,889 $35,871,923 $41,149,257 $47,004,501 $40,443,844
Other Expenses $26,541,295 $25,502,218 $28,471,635 $32,840,547 $31,041,543
Total Operating
Expense $625,554,555 $560,973,863 $536,336,623 $593,213,300 $227,937,857
Fuel Expense $82,982,250 $100,539,337 $52,063,263 $53,097,538 $54,285,134
Miles
Annual Vehicle Revenue
Miles 68,740,265 67,442,222 56,821,006 55,637,605 55,627,920
Trips
Annual Unlinked Trips 328,199,225 318,672,798 306,023,976 305,722,865 306,338,130
Vehicles
Annual Vehicle Revenue
Hours 7,038,271 7,008,308 5,955,896 5,886,505 5,898,348
Vehicles Operated in
Maximum Service 1,739 1,707 1,526 1,527 1,526
Vehicles Owned by CTA 2,093 2,053 1,782 1,782 1,782
Average Age of Vehicles 5.6 4.7 4.3 5.3 6.3
Operating Statistics – Heavy Rail
Characteristics 2008 Actual 2009 Actual 2010 Actual 2011 2012 Budget
Forecast
Expense
Scheduled Transportation
Expense $101,806,357 $98,807,273 $96,949,192 $108,369,877 $108,687,130
Terminal Maintenance
Expense $50,325,941 $50,306,024 $42,108,533 $47,032,491 $46,810,013
Support Expense $34,101,280 $33,260,626 $32,171,617 $35,478,436 $34,095,275
Heavy Maintenance
Expense $9,382,859 $9,690,670 $12,294,501 $17,976,926 $18,423,333
Rail Car Appearance
Expense $12,657,637 $11,915,039 $9,593,339 $11,530,946 $8,428,001
Other Expenses $9,241,168 $7,904,277 $7,323,154 $9,077,199 $9,150,804
Total Operating Expense $217,515,242 $211,883,910 $200,440,337 $229,465,876 $225,594,557
Power Expense $35,442,000 $37,645,088 $28,208,070 $29,823,562 $30,951,731
Miles
Annual Rail Car Revenue
Miles 67,450,040 68,592,225 65,033,869 64,493,081 64,452,666
Trips
Annual Unlinked Trips 198,137,245 202,569,038 210,848,397 218,664,750 222,888,674
Vehicles
Annual Train Revenue
Hours 691,788 672,869 604,261 605,314 610,812
Vehicles Operated in
Maximum Service 1,002 1,002 956 972 962
Vehicles Owned by CTA 1,190 1,190 1,190 1,200 1,200
Average Age of Vehicles 25 26 27 25 21
* Numbers may not precisely add due to rounding.
18 Performance Management at the CTA
In 2007, the CTA implemented a performance management system to improve efficiency,
promote accountability, and enhance our customers’ experience. Performance
management is a systematic process at the CTA involving all departments and employees
in the accomplishment of the agency’s goals. While some departments have more direct
contact with the public than others, the CTA recognizes that all departments are
inextricably interconnected, and that individual performance affects the organization’s
ability to meet its goals.
Like most government agencies, the CTA faces a unique set of challenges in managing
performance and achieving strategic goals and initiatives. The CTA’s budget is, in large
part, affected by a variety of external factors including the economy and state government.
Like many other government agencies, the CTA faces the challenge of meeting its goals as
budgets and resources shrink. This only increases the need for greater focus and
collaboration within the CTA to ensure effective service implementation and success.
Performance management is essential each step of the way.
Performance management allows the CTA to focus its resources on meeting its goal to
provide transit service that is:
Safe
The CTA will reduce the number of accidents involving
customers, employees, and the general public.
On-Time
The CTA will reduce system delays and successfully manage
intervals between rail and bus vehicles to provide predictable
and reliable service for its customers. Construction and other
projects will be completed within the budget and time frame
allocated to minimize impacts to customers.
Clean
The CTA will improve and maintain cleanliness standards for all
vehicles, stations, and work areas to provide a safe and
comfortable atmosphere for riders.
Courteous
The CTA will improve and maintain the highest standards of
customer service through timely, reliable, and clear
communication with customers, as well as considerate
employees and operational practices.
Efficient
The CTA will responsibly and effectively manage resources to
drive performance and provide a safe, reliable, and affordable
transit service for customers.
Each department throughout the agency is responsible for focusing its resources to meet
these goals. Performance management establishes a level of accountability necessary
throughout the organization by requiring that all departments establish results-oriented
measures—both financial and non-financial—that are aligned with these goals. Results are
continually monitored throughout the year. Based on these results, resources and
programs are adjusted to enhance results where necessary.
CTA Monthly Performance 2010 2011 Jul 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 June 2011
Monthly Monthly
Average Target
Total Ridership (in millions) 43.8 43.1 43.6 44.3 45.8 46.6 42.7 38.5 40.7 38.7 46.2 43.6 44.9 45.6
Rail Ridership (in millions) 15.4 18.4 18.5 18.6 19.0 19.4 17.5 15.6 16.3 15.8 18.7 18.1 18.5 19.5
Bus Ridership (in millions) 24.8 25.6 25.1 25.7 26.8 27.2 25.2 22.8 24.4 22.8 27.5 25.5 26.4 26.1
Total (Year to Date,in millions) 40.5 257.7 298.9 343.2 389.1 435.6 478.3 516.9 40.7 79.4 125.5 169.0 213.9 259.5%
Change Over Prior Year (Year to Date) 2.8% 3.9% -0.9% -0.6% -0.6% -0.7% -0.6% -0.8% 0.5% -0.9% 0.7% 0.4% 1.2% 1.7%
Rail Delays of 10 Minutes or More 70 78 71 77 79 64 52 87 89 104 66 61 110 94
% of Slow Zone Mileage 9.7% N/A 9.4% 10.3% 12.8% 13.2% 12.2% 10.5% 9.6% 9.2% 10.9% 10.9% 10.8% 11.6%
% of Big Gap Intervals, Bus 3.7% 4% 3.9% 4.0% 5.0% 3.8% 3.4% 3.5% 2.8% 5.0% 3.1% 3.0% 3.6% 4.0%
% of Bunched Intervals, Bus 2.3% 3% 2.4% 2.4% 2.9% 2.7% 2.4% 1.9% 1.7% 3.0% 1.9% 1.9% 2.3% 2.6%
Mean Miles Between Reported Rail Vehicle
Defects
3998 3650 3168 3866 3626 4389 4237 3514 3471 3204 4043 4184 3455 3244
Miles Between Reported Bus Service
Disruptions Due to Equipment 5113 4300 4651 5004 5438 5343 5834 4557 4932 4582 5791 4427 4515 4362
Average Daily Percent of Bus Fleet
Unavailable for Service 12% 13% 14% 15% 12% 12% 12% 12% 13% 13% 12% 12% 12% 13%
Average Daily Percent of Rail Fleet
Unavailable for Service 10% 11% 11% 11% 11% 10% 11% 12% 11% 12% 12% 10% 11% 12%
Bus NTD Security-Related Incidents per
100,000 miles 0.87 N/A 0.80 0.82 0.70 0.90 0.89 0.88 0.08 0.04 0.17 0.07 0.15 0.16
Rail NTD Security-Related Incidents per
100,000 miles 2.5 N/A 2.38 2.28 2.86 3.52 2.37 2.50 0.02 0.0 0.1 0.1 0.0 0.1
Bus NTD Safety-Related Incidents per
100,000 Miles 0.40 N/A 0.37 0.40 0.49 0.47 0.39 0.39 0.42 0.64 0.36 0.36 0.47 0.44
Rail NTD Safety-Related Incidents per
100,000 Miles 0.05 N/A 0.07 0.09 0.02 0.09 0.10 0.05 0.07 0.04 0.06 0.06 0.00 0.02
Average Interior Rail Clean Inspection Score 95% 90% 93.7% 94.5% 95.8% 95.0% 96.9% 98.5% 96.0% 95.4% 98.9% 98.9% 97.1% 98.2%
Average Interior Bus Clean Inspection Score 84% 85% 88.3% 85.2% 86.8% 86.8% 79.3% 89.9% 89.6% 88.2% 88.9% 84.7% 89.5% 90.8%
% of Customer Complaints Not Closed Out
Within 14 Days 2% 3% 2% 2% 2% 4% 1% 1% 1% 1% 0% 0% 2% 1%
CTA Customer Service Hotline Average Wait-
time (*)
0:01:43 0:03:30 0:01:30 0:02:16 0:02:28 0:01:42 0:01:56 0:01:50 0:02:46 0:02:05 0:01:34 0:00:50 0:00:56 0:01:44
Reported Ramp Defects (Service Disruptions) 78 N/A 84 57 53 58 44 71 81 81 61 57 104 89
% Buses with Defective AVAS 0.6% 2% 0.6% 0.7% 0.6% 0.5% 0.6% 1.0% 0.6% 1.2% 0.8% 0.7% 0.8% 0.7%
Reported ADA Complaints 60 N/A 68 58 65 79 54 53 43 58 48 67 56 94
Definitions of CTA Monthly Performance Metrics
CTA Monthly Performance Metrics
Definition
RIDERSHIP
Total Ridership (monthly, in
millions) Number of rides registered on the bus and
rail systems. Rail ridership includes rail-
to-rail transfers.
Rail Ridership (monthly, in millions) Number of rides registered on the rail
system including rail-to-rail transfers.
Bus Ridership (monthly, in millions) Number of rides registered on the bus
system.
Total (Year to Date, in millions) Number of rides registered on the bus and
rail systems year to date. Includes rail-to-
rail transfers.
% Change Over Prior Year (Year to
Date) Number of rides registered on the bus and
rail systems year-to-date (including rail-to-
rail transfers) divided by the number of
rides registered on the bus and rail systems
previous year, year-to-date.
ON-TIME
Rail Delays of Ten Minutes or More Rail delays of ten minutes or more reported to
the Control Center by an Operator, a Controller,
or a Supervisor.
% of Slow Zone Mileage Miles of revenue track that have slow zones. Slow
zones range from 6 mph to 35 mph.
% of Big Gap Intervals, Bus Number of bus intervals (time between two buses at a
bus stop) that are double the scheduled interval and
greater than 15 minutes, divided by the total number
of weekday bus intervals traveled during the month.
% of Bunched Intervals, Bus Number of bus intervals (time between two buses at a
bus stop) that are 60 seconds or less divided by the
total number of weekday bus intervals traveled during
the month.
CTA Monthly Performance Metrics
Definition
EFFICIENT
Mean Miles Between Reported Rail
Vehicle Defects Miles traveled during the month divided by
the number of reported defects for the month.
Miles Between Reported Bus
Service Disruptions Due to
Equipment Miles traveled during the month divided by
number of reported service disruptions due
to equipment for the month.
Average Daily Percent of Bus Fleet
Unavailable for Service Daily average number of buses unavailable
for service for any reason divided by the
total number of buses in the fleet.
Average Daily Percent of Rail Fleet
Unavailable for Service Daily average number of rail cars unavailable
for service for any reason divided by the
total number of rail cars in the fleet.
SAFE
Bus NTD Security-Related Incidents
per 100,000 miles Number of occurrences of bomb threats,
robbery, larceny, burglary or
arrests/citations for fare evasion,trespassing,
vandalism and assault on the bus system divided by
traveled miles divided by 100,000.
Rail NTD Security-Related Incidents
per 100,000 miles Number of occurrences of bomb threats, robbery,
larceny, burglary or arrests/citations for fare
evasion, trespassing, vandalism, and assault on the
rail system divided by traveled miles divided by 100,000.
Bus NTD Safety-Related Incidents
per 100,000 Miles Any event where one or more of the
following occurs on the bus system:
Individual dies at the time or within 30 days
of the event; one or more persons suffer bodily damage
as a result of the event requiring immediate medical
attention away from the scene; property damage in excess
of $25,000.
Rail NTD Safety-Related Incidents
per 100,000 Miles Any event where one or more of the
following occurs on the rail system:
Individual dies either at the time or within 30 days of
the event; one or more persons suffer bodily damage as a
result of the event requiring immediate medical attention
away from the scene; property damage in excess of $25,000.
CTA Monthly Performance Metrics
Definition
CLEAN
Average Days Between Completed
Rail Detail Cleans Two-month, rolling average number of days
between detail cleans on rail cars for those rail cars
which were cleaned at least twice during the two month period.
Average Days Between Completed
Bus Detail Cleans Three-month, rolling average number of days between detail
cleans on buses for those buses which were cleaned at least
twice during the three month period.
COURTEOUS
% of Customer Complaints Not
Closed Out Within 14 Days Number of open and overdue complaints (complaints not closed out by a department
within 14 days) as of the last day of the month divided by the
total number of complaints received during that month.
CTA Customer Service Hotline
Average Wait-time Average number of minutes a customer waits on the CTA hotli-
ne before his/her call is answered.
Reported Lift Defects
(Service Disruptions) Number of reported lift defects that resulted in a disruption
of service.
Reported Ramp Defects
(Service Disruptions) Number of reported ramp defects that resulted in a disruption
of service.
% Buses with Defective AVAS The percent of buses that is experiencing navigation issues
(not calling out stops for at least part of the day), broken
operator log on screens, odometers reporting zero distance and
Bus Link issues, meaning no data will be received from the bus.
This does not measure defective destination signs.
% Functional Destination Signs The percent of buses, audited by Bus Quality Control (QC),
with defective destination signs.
Reported ADA Complaints Number of reported complaints to Customer Service identified
as ADA-related.
Department Overviews and Facts
Service Area & Population
. 220 square miles of Chicago and 40 nearby suburbs.
. The service area has 3.53 million people.
Ridership
. Over 524 million trips projected for 2011.
. Approximately 1.7 million trips per weekday.
Operations Departments
Bus Operations and Maintenance
. Provides over 960 thousand rides per weekday.
. Maintains reliable service with approximately 4,000 bus operators driving 1,781
buses traveling 145,832 miles each weekday over 140 routes serving 11,493 bus
stops.
. Manages seven Bus Garages and one Heavy Maintenance shop.
. In the spring of 2011, the average age of the fleet was 5.2 years old.
Rail Operations and Maintenance
. Provides over 690 thousand rides per weekday.
. Maintains reliable service with approximately 1,200 rail operators and 1,200 rail
cars traveling 177,490 miles each weekday over eight routes with 143 stations.
. Manages 10 Rail Terminals and one Heavy Maintenance Shop.
. In fall of 2011, the average age of the fleet was 28 years old.
Infrastructure
Power and Way Maintenance:
. Inspects and maintains 224 miles of revenue track at least every seven days, 86.2
miles of elevated structure once every two years, and the full length of contact rail
(“third rail”) two times per year.
. Inspects and maintains 813 signals, 1,064 rail track switches, 1,835 track circuits
and 24,000 vital signal relays.
. Responsible for all power substations, including maintaining all traction and contact
rail power distribution including 600 miles of traction power cable.
Construction:
. Responsible for ensuring that major capital construction projects related to CTA
track, structure, power, signal rail stations, rail shops and bus garages are delivered
on time, on budget, and conform with all applicable standards, regulations and
requirements.
. Responsible for overseeing and integrating program management and construction
management services to assist in monitoring and controlling of multiple capital
construction projects.
. Responsible for developing uniform procedures and processes that assist in the
design, construction and administration of the capital program.
Engineering:
. Responsible for providing technical support to Facilities and Power and Way
Maintenance.
. Responsible for developing and maintaining the technical standards for track,
structure, power, signal, rail stations and other transit support facilities.
. Responsible for maintaining the engineering records and as built drawings.
. Responsible for CTA utilities, including traction power, water and gas at CTA
locations.
. Responsible for supporting the capital program and providing capital design project
management as needed.
Facilities Maintenance:
. Cleans and maintains more than 210 locations, including 143 rail stations, 10
terminals, 12 rail yards, as well as all of the rail rights-of-way.
. Processes approximately 65,000 work orders for the CTA’s 450 owned and leased
facilities covering approximately five million square feet.
. Provides real estate management services to protect and maintain the value of CTA
properties.
Administration Operations Support
Purchasing
. Purchasing processes over 1,000 contracts annually to secure the best prices and
ensure the most responsible use of CTA funds, as well as adherence to all funding
agencies’ regulations.
Warehousing
. Warehouse Operations is responsible for timely and reliable parts and materials
distribution to all CTA maintenance facilities and stock rooms throughout the
service network.
Program Management Office and Technology
. Maintains and upgrades all CTA technology infrastructure including computer
hardware, application software and communications equipment.
. Maintains bus and rail fare equipment.
. Responsible for all communication system infrastructure.
Communications
. Customer Service provides a number of services including routing and
analysis of customer concerns, Chicago Card account management, customer
refunds, travel information, maps and brochures, and support for onsite
public forums.
. Compiles customer feedback that is obtained via an inbound call center at 1-
888-YOUR-CTA, www.transitchicago.com, www.chicago-card.com, and
through U.S. mail. Call volume averages 1,100 calls daily, and the Customer
Feedback Programs group responds to an average of 150 e-mails daily.
2010 Performance by Department
Bus Operations
Bus Operations is responsible for providing over 300,000,000 rides per year, or over 60
percent of all rides taken on the CTA system. Customers rely on the CTA’s buses daily for
commuting to and from work, as well as for errands and recreational trips. The CTA
recognizes that customers value frequent, on-time service.
To ensure that customers can depend on buses running on-time, Bus Operations continually
monitors the reliability of service. One measure which is tracked regularly is the amount of
“big gaps” experienced by CTA customers each day. A “big gap” is defined as
an instance when the time in between buses is 15 minutes or two times the scheduled
interval, whichever is longer. In 2010, Bus Operations reduced their “big gaps” target to
four percent or less of all customer trips (down from a target of five percent or less in
2009). Bus Operations has successfully met its target in 15 out of the last 18 months, with
the only significant deviation seen during the blizzard in February 2011.
In addition to monitoring “big gaps,” Bus Operations is able to gauge their on-time
performance by monitoring customer wait-time. An average scheduled wait-time is
calculated for the system and GPS equipment on-board the buses provides information on
the actual wait-time experienced by customers. Over the past 18 months, bus wait-time
has averaged 52 seconds above scheduled wait-time.
Bus Operations continued to conduct weekly sessions at each garage with Bus Operators, Bus
Service Management, Planning, and Senior Bus Management in 2011. These weekly sessions helped
ensure that each person responsible for maintaining reliable bus service, from the management
down to the operators, was informed of goals and performance, while having a platform for
reporting issues and brainstorming solutions. In addition, Bus Service Management leverages
technology, such as Bus Tracker, to monitor the routes and make real-time adjustments to service.
In 2010, Bus Operations maintained a big gaps average of 3.6 percent and continued this
level of performance through mid-year 2011. The target for big gaps in 2012 is four
percent or less.
Bus Operations 2011 Target 2011 Current Service Level with
Performance Measures Performance Proposed Budget
(Jan-June 2011)
(On-Time) % of Big Gap
Intervals 4.0% 3.6% 4.0%
(On-Time) % of Intervals
Bunched 3.0% 2.2% 3 .0%
Bus Maintenance
The safety and reliability of buses is paramount. Bus Maintenance is responsible for the
maintenance of the CTA bus fleet which is composed of 1,781 buses. This includes both the
mechanical maintenance and regular cleaning of bus interiors and exteriors. As part of
the performance management process, Bus Maintenance set a goal of providing a fleet reliability
of 4,300 miles between service disruptions in 2011. A service disruption is classified as any
mechanical failure that requires the bus to be inspected or repaired by a bus mechanic outside of its normal
inspection cycle.
In early 2009, the bus fleet was running an average of approximately 2,500 miles between
service disruptions. A target of 3,000 miles between service disruptions was set at that
time. By fall 2009, Bus Maintenance had exceeded this goal and the fleet average increased
to an average of 5,000 miles between service disruptions. In 2010, this goal was increased
to 3,830 miles between service disruptions and Bus Operations met this target in 11 out of
the 12 months. In 2011, it was increased again to 4,300 miles between service disruptions.
Bus Maintenance has met or exceeded their target throughout the first six months of 2011.
In 2012, Bus Maintenance will increase their target again to 4,500 miles between service
disruptions.
Bus Maintenance 2011 Target 2011 Current Service Level with
Performance Measures Performance Proposed Budget
(Jan-June 2011)
Miles between Service
Disruptions due to
Maintenance 4,300 miles 5,033 miles 4,500 miles
Bus Interior Clean Quality
Inspection Score 85% 89% 85%
Rail Operations
Rail customers expect the CTA’s trains to provide frequent, fast service. In order to
constantly improve the rail customer’s experience, Rail Operations continues to focus on
two main goals: 1) reducing major delays, or delays to service that exceed ten minutes; and
2) improving on-time performance.
In mid-2009, Rail Operations began looking at new on-time performance metrics. One new metric is the
“Percent of Successful Intervals.” A train interval is considered “successful” if the train
arrives within two minutes of schedule for intervals less than five minutes and within five
minutes of schedule for intervals over 10 minutes.
For 2009-2010, a target of 90 percent or greater was set for rail “successful intervals.” This
target remained the same for 2011. For the first six months of 2011, Rail Operations has
had a successful intervals average of 86 percent. The target for successful intervals remains at 90
percent for 2012.
Rail Operations continues to look at major delays, or a delay of 10 minutes or greater. The target in 2010
was 78 or fewer major delays per month. Average monthly delays for 2010 were well below that target
remained the same, however, major delays have increased over the past six months to a monthly average
of 90 major delays per month.
Rail Operations 2011 Target 2011 Current Service Level with
Performance Measures Performance Proposed Budget
(Jan-June 2011)
% of Successful Intervals 90% 86% 90%
% of Successful Run-Times 91% 84% 91%
Rail Maintenance
Rail Maintenance is responsible for maintaining the safe mechanical functioning of the
CTA’s trains as well as regular cleaning and heavy maintenance repairs or rebuilds of train
systems. A well-maintained, clean train minimizes delays and provides a safe and
comfortable environment for passengers.
Rail Maintenance continues to focus on improving the mean miles between vehicle defects
(or the miles a train runs on average before it encounters a defect to one of its systems).
Due to the impact of weather on the train’s systems, the target for mean miles between
vehicle defects is adjusted seasonally. In 2009, the year-end target was 4,000 mean
miles between defects. Rail Maintenance began 2010 with an increased average monthly target
of 4,100 mean miles between defects. Seasonal targets remained steady between 2010 and 2011.
The proposed 2012 budget includes the addition of 192 new 5000 series rail cars to the fleet by the end of the
year along with the retirement of 142 2200 series rail cars. Based on the anticipated
improvement in performance of the new equipment, the 2012 mean miles between defects
target has been increased to an average monthly target of 4,450 between defects.
Rail Maintenance has remained focused on preventive maintenance and reducing the most
common defects as well as repeat defects (defined as a defect to the same system twice
within a month). However, as the rail fleet has now reached an average age of 28 years (or
four years beyond the FTA recommended useful life of a rail car), performance has declined
and mean miles between defects has stayed approximately 12 percent below target for the
first six months of 2011.
Rail Maintenance 2011 2011 Current Service Level
Performance Measures Target Performance with Proposed
Budget (Jan-June 2011) Budget
Mean Miles Between
Defects 4,100 3,600 4,450
Rail Interior Clean Quality
Inspection Score 85% 97.4% 85%
Power and Way
Power and Way is responsible for maintaining the rail infrastructure, including the track,
structure, power and signal system. As part of the performance management process, a
large focus for Power and Way has been minimizing slow zones across the rail system.
Eliminating slow zones not only makes a rail passenger’s trip faster, replacing or repairing
old rail and ties also makes it safer and more comfortable.
At the end of 2008, slow zones had been reduced to 7.1 percent of the CTA system. By focusing
efforts on repairing and replacing track in some of the oldest areas in the system,
including the Dearborn Subway, Power and Way was able to reduce system slow zones to 5.9
percent by the end of 2009. With the reduction in capital funding in 2010, the CTA increased
the slow zone target to 12 percent. In November 2010, slow zones across the system reached
a high of 12.1 percent. Limited capital funding in 2011 led to another increase in the slow
zone target to 13.3 percent by year end. Current performance for the first six months of 2011 is 10.4 percent.
Power and Way 2011 2011 Current Service Level with
Performance Measures Target Performance Proposed Budget
(Jan-June 2011)
% Slow Zones 13.3%
by year end 10.4% 13.1%
Facilities
The Facilities Department provides day-to-day real estate management, including cleaning and mechanical
maintenance of all rail stations and CTA facilities to preserve and maintain the value of CTA property.
One important function of the Facilities Department is the maintenance of elevators and
escalators to ensure accessibility and comfort for the customer. The elevator and escalator equipment
on the CTA ranges from brand-new elevators installed along the Brown Line to escalators
in the Red Line subway dating back to 1943. Escalators are maintained in-house, while
elevators are inspected by CTA personnel and maintained by an outside contractor.
The Facilities Department has maintained a set goal of 97 percent up-time for elevators and
96 percent up-time for escalators since 2009. These metrics mean that elevators should be
available at least 97 percent of the time that stations are open for service, and escalators
should be available at least 96 percent of the time. The Facilities Department has met or exceeded its
goal for elevator up-time nine out of the last twelve months from June 2010–June 2011. Escalator up-time
has met or exceeded its target only five out of the last 12 months. Escalator uptime continues to
provide a challenge to the department due to aging infrastructure and the limited
availability of capital funding to replace or upgrade it.
Real time information on elevator and escalator accessibility is available to customers on
the CTA web site or by contacting Customer Service.
Facilities Performance 2011 Target 2011 Current Service Level
Measures Performance with Proposed
(Jan-June 2011) Budget
Elevator Up-Time 97% 97.2% 97%
Escalator Up-Time 96% 94.2% 96%
Program Management and Technology
The Program Management and Technology Department provides necessary solutions and
services to support the CTA and its riders.
In 2011, Program Management and Technology undertook the installation of multiple high-
definition cameras at each of the 143 CTA train stations. This security and safety initiative
will be expanded with camera installation at other CTA facilities to ensure the riding
public’s safety.
Program Management and Technology plans to implement various key enterprise IT
projects in 2012 that will reinforce CTA’s IT infrastructure to meet ridership demands for
the next decade.
In addition to technology infrastructure upgrades, Program Management and Technology
is also responsible for the day-to-day reliability of CTA applications and online tools. The
CTA Bus Tracker application posted an annual average availability of 99.58 percent for its
second year; this was slightly higher than last year’s average of 99.28 percent. CTA Bus
Tracker is now available by e-mail and text messaging to riders. Riders can access CTA Bus
Tracker, along with instructions on how to receive e-mail notifications or notifications by
text message, on the CTA website at www.transitchicago.com.
Measure 2011 Target 2011 Current Service Level with
Performance Proposed Budget
(Jan-June 2011)
Bus Tracker
Application
Availability 99.6% 99.3% 99.6%
Communications
The Communications Group manages CTA’s Customer Service hotline, 1-888-YOUR-CTA.
This hotline is one of the main ways customers receive information about CTA service and
provide feedback on the quality of their experience.
The CTA recognizes that when customers call our Customer Service Hotline, they expect prompt and
courteous service. In 2009, the Customer Service Department set a goal of providing
agent assistance for all incoming calls within two minutes. Staff has achieved this target
service level through 2011. By carefully managing agent performance as well as improving
the information available to representatives, Communications met this target in 2010 with
a yearly average wait time of one minute and 43 seconds. Current 2011 performance is an
average wait time of one minute and 39 seconds. Targets for call response time will remain
the same in 2012.
Communications 2011 Target 2011 Current Service Level with
Performance Measures Performance Proposed Budget
(Jan-June 2011)
Average Call Response Time-
Overall 2:00* 1:39 2:00
Average Call Response Time-
General Inquiries 2:00* 1:17 2:00
Average Call Response Time-
Chicago Card 2:00* 2:01 2:00
*Please note that targets were increased in Jan-Mar 2011 to 3:00 to account for unusually
high call volume due to Chicago Card expirations.
19 Peer Comparison
Overview
To further illustrate the CTA’s performance in relation to its peers, the following
comparative performance analysis utilizes the 2009 National Transit Database (NTD)1.
The selection of comparison transit agencies is based upon the size of the urban area
served, the urban characteristics of the service area, and the size of the transit system. The
analysis is then conducted on a modal basis (i.e. bus versus heavy rail). For each mode, the
CTA is compared with five peers.
1 The data from NTD is self-reported by the participating transit agencies following guidelines and
procedures established by the Federal Transit Administration.
The comparison group includes:
MBTA Massachusetts Bay Transportation Authority
NYCT New York City Transit
SEPTA Southeastern Pennsylvania Transportation Authority
WMATA Washington Metropolitan Area Transit Authority
MARTA Metropolitan Atlanta Rapid Transit Authority
(for heavy rail comparison only)
LACMTA Los Angeles County Metropolitan Transportation Authority
(for bus comparison only)
Comparative Agency Profiles
Population of Square Miles Fleet Size Rail Track
Service Area of Urban Area Miles
Served
CTA Chicago 8,307,904 2,123 2,739 287.8
MBTA Boston 4,032,484 1,736 2,338 108
NYCT New York 17,799,861 3,353 11,521 829.9
SEPTA Philadelphia 5,149,079 1,800 2,298 99.8
WMATA Washington D.C. 3,933,920 1,157 3,156 269.8
MARTA Atlanta 3,499,840 1,963 815 103.7
LACMTA Los Angeles 11,789,487 1,668 3,206 34.1
The comparative analysis measures the performance in four areas: service efficiency, cost
effectiveness, service maintenance and reliability, and service level solvency. Specific
indicators are assigned to measure the performance in each dimension.
Definitions of Comparative Performance Measurement
Area Indicator Definition
Service
Efficiency Operating Expense per Vehicle Total operating cost divided by the total
Revenue Mile number of miles that vehicles travel while in
revenue service.
Operating Expense per Vehicle Total operating cost divided by the total
Revenue Hour number of hours of transit service provided.
Cost
Effectiveness Operating Expense per
Passenger Mile Total operating cost divided by the total
number of miles traveled by passengers.
Operating Expense per
Unlinked Trip Total operating cost divided by the total
number of passengers boarding public
transportation vehicles.
Service Average Fleet Age The mean of the difference between year of
Maintenance manufacture and year under consideration for
& Reliability all vehicles in the active fleet.
Miles between Major The average number of miles that vehicles
Mechanical Failures travel while in revenue service between failures of some mechanical elements or a
safety concern that prevents the vehicle from
completing a scheduled trip or from starting
the next scheduled trip.
Service Level Fare Recovery Ratio2 The proportion of operating costs that are
Solvency covered by fare revenue paid by passengers.
Capital Funds Expended per Expenses related to the purchase of capital
Passenger Trip assets divided by the total number of unlinked
2 The recovery ratio in this section follows the NTD definition. It differs from the calculation of the RTA
recovery ratio, which is set forth in the RTA Act.
passenger trips provided.
urban Bus Characteristics CTA MBTA LACMTA NYCT SEPTA WMATA
(number in millions) Chicago Boston Los Angeles New York Philadelphia Washington D.C.
Operating Expense $787 $336 $939 $2,289 $534 $526
Capital Funds Expended $246 $66 $171 $349 $112 $121
Fare Revenue $278 $72 $268 $821 $164 $113
Vehicle Revenue Mile 67.4 25.2 88.5 102.7 40.94 2.0
Vehicle Revenue Hour 7.01 2.36 7.51 13.27 3.98 3.92
Passenger Mile 739 231 1,518 1,838 530 423
Total Number of Unlinked Trip 319 101 386 843 181 137
Total Number of Major Mechanical
Failures 8,661 2,859 12,783 14,647 6,746 6,472
Service Efficiency
CTA bus performed above the peer average in both measures of service efficiency, ranking
the most efficient for operating expense per vehicle revenue hour, and second only to Los
Angeles for operating expense per vehicle revenue mile.
Cost Effectiveness
Both measures show that CTA bus had a higher performance than the peer average in the
area of cost effectiveness. It ranked second for operating expense per unlinked trip with
only a slight difference, $0.04, from the first-ranked Los Angeles, and a close third for
operating expense per passenger mile.
Service Maintenance & Reliability
CTA bus ranked first for average fleet age thanks to new buses introduced into its fleet in
recent years. When comparing to performance in 2008, one finds that the CTA made
impressive progress, with the greatest increase (30 percent) among the comparable
agencies in miles between failures.
Service Level Solvency
Solvency refers to the capability of meeting financial obligations, including covering long-
term, fixed expenses. Among its peers, CTA bus achieved a high level of service solvency
through services provided, with both fare recovery ratio and capital funds per passenger
trip ranking second and well above peer averages.
Heavy Rail
Comparative Characteristics of Heavy Rail
Heavy Rail Characteristics CTA MARTA MBTA NYCT SEPTA WMATA
(number in millions) Chicago Atlanta Boston New York Philiadelphia Washington D.C.
Operating Expense $462 $167 $298 $3,313 $158 $805
Capital Funds Expended $368 $170 $227 $3,474 $202 $318
Fare Revnue $231 $50 $161 $2,246 $84 $506
Vehicle Revenue Mile 6 8.6 24.6 22.5 352.5 16.9 71.8
Vehicle Revenue Hour 3.73 0.92 1.29 19.32 0.87 2.82
Passenger Mile 1,201 527 569 9,973 423 1,668
Total Number of Unlinked Trip 203 83 149 2,358 95 297
Total Number of Major Mechanical
Failures 230 1,222 701 2,250 166 1,334
Service Efficiency
CTA heavy rail achieved superior service efficiency, ranking at the top for both operating
expense per vehicle revenue mile and operating expense per vehicle revenue hour. The two
indicators were 33 percent and 41 percent below the peer average, respectively.
Cost Effectiveness
With increased financial challenges resulting from the tough economic conditions in 2009,
the CTA managed to remain under the peer average for the operating cost per passenger
mile. However, the CTA slipped from the top spot to number four due to increased
operating expenses. Each agency experienced increased operating costs per unlinked trip
from 2008 to 2009, with the CTA having the second lowest increase, 2.7 percent, among the
group.
Service Maintenance & Reliability
Despite having the oldest fleet, CTA heavy rail ranked at the top for miles between major
mechanical failures, with performance four times better than the peer average.
Service Level Solvency
The CTA showed the highest increase, 3.6 percent, in fare recovery ratio from 2008 to 2009. The CTA managed to maintain the
level of capital funds per passenger trip above the peer average, despite the need to
transfer capital monies to fund operations in 2009.
20 CTA Fare Structure
CTA Fare Types Current Fare Structure
(effective 1/1/2009)
Full Fare Bus Rail
Regular Full Fare Cash3 $2.25 $2.25
Regular Full Fare Transit Card (TC*) $2.00 $2.25
Regular Full Fare Chicago Card (CC**) $2.00 $2.25
Regular TC or CC Transfer4 $0.25 $0.25
Passes
1-Day Pass $5.75
3-Day Pass $14.00
Full Fare 7-Day Pass $23.00
Full Fare 30-Day Pass $86.00
Reduced Fare
Regular Reduced Fare Cash $1.00
Regular Reduced Fare TC $0.85
Reduced Fare TC/CC Transfer $0.15
Reduced Fare 30-Day Pass $35.00
1 Rail customers paying fares with cash must first add value to a Transit Card using vending machines located in
each station.
2 A transfer allows two additional rides within two hours of issuance and is not available to customers paying fares
with cash.
*TC: Transit Card
**CC: Chicago Card
21 Comparative Fare Structure
CITY SYSTEM Full Cash Express Full Cash Reduced Fare
Bus Fare Bus Fare Rail Fare Senior/Disabled
CHICAGO
(CTA) $2.25 $2.25 $2.25 $1.00 Bus; $0.85 Bus
& Rail (with card)
NEW YORK CITY
(MTA) $2.25 $5.50 $2.25 $1.10
PHILADELPHIA
(SEPTA) $2.005 --- $2.006 Senior: Free
Disabled: $1
ATLANTA
(MARTA) $2.00 --- $2.00 $0.90
WASHINGTON D.C.
(WMATA) $1.70 $3.85 $1.95 - $5.00 Half-Price Rail;
$0.75 Bus; $1.80 Express
LOS ANGELES
(LACMTA) $1.50 $2.20 - $2.90 $1.50 $0.55 Rush Hours;
$0.25 Non-Rush Hours
BOSTON
(MBTA) $1.50 $3.50 Inner $2.00 $0.60 – Rail;
$5.00 Outer $0.40 – Bus
CTA Historical Fare Structure
Year Full Cash Full Cash Transfer Reduced
Charge Fare
Bus Fare Rail Fare
2001 - 2003 $1.50 $1.50 $0.30 $0.75
2004 - 2005 $1.75 $1.75 $0.25 $0.85
2006 - 2008 $2.00 $2.00 $0.25 $0.85 (Rail);
$1.00 (Bus)
2009 - 2011 $2.25 $2.25 $0.25 $0.85 (Rail);
$1.00 (Bus)
1 Zone charge may apply.
2 Zone charge may apply.
3 The fares are zone based and depend on hours traveled. Full fares are paid during peak hours varying from $1.95 to
$5.00, with a $0.20 fee added to regular fares during the peak-of-the-peak periods (weekday 7:30-9 a.m. and 4:30-6 p.m.,
based on the starting time of the trip).
22 Acronyms
AA Alternatives Analysis
ADA Americans with Disabilities Act
APB Accounting Principles Board
ARRA American Recovery and Reinvestment Act
BAB Build America Bonds
BLS Bureau of Labor Statistics
BOB State Bureau of the Budget
BRT Bus Rapid Transit
CAC Capital Advisory Committee
CBO Congressional Budget Office
CIP Capital Improvement Program
CDOT Chicago Department of Transportation
CMAP Chicago Metropolitan Agency for Planning
CMAQ Congestion Mitigation and Air Quality Improvement Program
CPD Chicago Police Department
CPI Consumer Price Index
CTA Chicago Transit Authority
DBE Disadvantaged Business Enterprise
EIA Energy Information Administration
EIS Environmental Impact Statement
FASB Financial Accounting Standards Board
FFGA Full Funding Grant Agreement
FICA Federal Insurance Contribution Act
FOMC Federal Open Market Committee
FTA Federal Transit Administration
FY Fiscal Year
GAAP General Accepted Accounting Principles
GASB Governmental Accounting Standards Board
GDP Gross Domestic Product
GFOA Government Finance Office Association
ICE Innovation, Coordination and Enhancement Fund of RTA
IDOT Illinois Department of Transportation
JARC Job Access and Reverse Commute Program
LACMTA Los Angeles County Metropolitan Transportation Authority
LIBOR London Interbank Offered Rate
LPA Locally Preferred Alternative
MBTA Massachusetts Bay Transportation Authority
NTD National Transit Database
NYCT New York City Transit
OPEC Organization of Petroleum Exporting Countries
PBC Public Building Commission of Chicago
POB Pension Obligation Bond
PPI Producer Price Index
RTA Regional Transportation Authority
RETT Real Estate Transfer Tax
SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users
SCIP Strategic Capital Improvement Program
SEPTA Southeastern Pennsylvania Transportation Authority
SOGR State of Good Repair
STIP State Transportation Improvement Program
STO Scheduled Transit Operations
SWAP Sheriff’s Work Alternative Program
TEA-21 Transportation Equity Act for the 21st Century
TIGGER Transit Investments for Greenhouse Gas and Energy Reduction
TIP Transportation Improvement Program
TSP Traffic Signal Prioritization
UWP Unified Work Program
WMATA Washington Metropolitan Area Transit Authority
Glossary
2008 Legislation
The amendments to the RTA Act in 2008 included the following policies affecting the CTA
budget: 1) Increased the RTA sales tax to 1.25 percent in Cook County and 0.75 percent in
the collar counties; 2) Prescribed a new distribution of revenues for the incremental sales
tax increase and Public Transportation Fund match; 3) Established an Innovation,
Coordination, and Enhancement (ICE) Fund, an ADA Paratransit Fund, and a Suburban
Community Mobility Fund and 4) The chair of the CTA no longer was on the RTA Board.
Accessible
As defined by the FTA, a site, building, facility, or portion thereof that complies with defined
standards and that can be approached, entered and used by persons with disabilities.
Accounting Principles Board (APB)
The former authoritative body of the American Institute of Certified Public Accountants
(AICPA). It was created by the AICPA in 1959 and issued pronouncements on accounting
principles until 1973, when it was replaced by the Financial Accounting Standards Board
(FASB).
Accrual Basis
A method of accounting in which revenues are reported in the fiscal period when they are
earned, regardless of when they are received, and expenses are deducted in the fiscal period
they are incurred, whether they are paid or not.
Alternatives Analysis (AA) Study
To conduct the Study is the first step of the FTA’s process in order to be qualified for New
Starts funding. The Study is designed to examine all the potential transit options available
and to determine a locally preferred alternative. Among the projects that were authorized
for further analysis by the United States Congress, the CTA has completed the Studies for the
Red Line Extension south of 95th, the Orange Line Extension to Ford City, and the Yellow
Line Extension north of Dempster Avenue in Skokie.
Americans with Disabilities Act (ADA)
The Americans with Disabilities Act (ADA) of 1990, including changes made by the ADA
Amendments Act of 2008, became effective on January 1, 2009. This federal act requires
many changes to ensure that people with disabilities have access to jobs, public
accommodations, telecommunications and public services, including public transit.
Examples of these changes includes mandating that all new buses and rail lines be
wheelchair accessible and that alternative transportation be provided to customers unable
to access the transit system.
American Recovery and Reinvestment Act (ARRA)
An economic stimulus package enacted in February 2009 to create jobs and promote
investment and consumer spending during the recession. The Act includes federal tax cuts,
expansion of unemployment benefits and other social welfare provisions as well as domestic
spending in education, health care and infrastructure, including the energy sector.
Articulated Bus
A high-capacity passenger bus that flexes in the middle.
ADA Paratransit Fund
A fund created by the 2008 Legislation to fund regional paratransit services provided by
Pace.
Accounting Principles Board
Former authoritative body of the American Institute of Certified Public Accountants, which
issued a series of accountants opinions constituting much of what is known as GAAP.
Big Gap
An instance when the time in between buses is more than double the scheduled interval and
also creates a gap of more than 15 minutes.
Bond
An interest-bearing promise to pay a specified sum of money on a specified date in the
future.
Build America Bonds (BAB)
A subsidy provided by the American Recovery and Reinvestment Act that provides for a
wider pool of capital financing funding for state, county and municipal entities, such as the
CTA.
Bureau of Labor Statistics (BLS)
The Bureau of Labor Statistics of the U.S. Department of Labor is the principal federal agency
responsible for measuring labor market activity, working conditions, and price changes in
the economy. Its mission is to collect, analyze, and disseminate essential economic
information to support public and private decision-making. As an independent statistical
agency, BLS serves its diverse user communities by providing products and services that are
objective, timely, accurate, and relevant.
Bus Rapid Transit (BRT)
BRT is an enhanced bus system that operates on bus lanes or other transitways in order to
combine the flexibility of buses with the efficiency of rail. By doing so, BRT operates at faster
speeds, provides greater service reliability and increased customer convenience.
Capital Advisory Committee (CAC)
The Capital Advisory Committee is comprised of members from local universities as well as
leaders from the business community. The purpose of the CAC is to solicit expert advice
from external professionals in carrying out the CTA’s capital process including the selection
of projects for funding and advising the CTA in closing the funding gap.
Capital Budget
A formal plan of action for a specified time period for purchases of fixed assets using capital
grants.
Capital Expense
Expenditures that acquire improve or extend the useful life of any item with an expected life
of three or more years and a value of more than $5,000 (e.g. rolling stock, track and
structure, support facilities and equipment, and stations and passenger equipment). It can
also include the costs associated with the long-term maintenance of these assets, such as bus
overhaul programs, rail overhaul programs and preventive maintenance. Also referred to as
a capital improvement.
Capital Grant
Funds received from grantor funding agencies used to finance construction, renovation, and
major repairs or the purchase of machinery, equipment, buildings, or land.
Capital Improvement Program (CIP)
A strategic and comprehensive financing program in which available capital funds are identified and targeted toward key
capital renewal and improvement needs of the CTA system to yield the greatest customer benefit.
Chicago Card
A stored-value farecard that has an embedded microchip that can be read to register fares by the fare equipment when
touched to the touchpad on the front of rail station turnstiles and bus fareboxes on all CTA routes and Pace buses. Value is
added with cash at CTA vending machines or off-site Touch-n-Go devices.
Chicago Card Plus
A farecard with its balance maintained in an online account rather than stored on the card
itself. Value is added with credit cards or through electronic transit benefit deductions only.
The card also features online reloading — customer accounts automatically reload each time
their account value falls below the pre-selected reload amounts.
Chicago Department of Transportation (CDOT)
The Chicago Department of Transportation (CDOT) is responsible for public way
infrastructure including planning, design, construction, maintenance and management.
Collar Counties
The five counties that surround Cook County as identified in the RTA Act: Will, Kane,
DuPage, Lake, and McHenry counties.
Chicago Metropolitan Agency for Planning (CMAP)
The agency that integrates land use planning and transportation planning for the counties of
Cook, DuPage, Kane, Kendall, Lake, McHenry and Will in northeastern Illinois. CMAP and its
partners aim to remove barriers to cooperation across geographical boundaries and subject
areas such as land use, transportation, natural resources, housing, and economic
development.
Congestion Mitigation & Air Quality Improvement Program (CMAQ)
A program initially authorized by the Intermodal Surface Transportation Efficiency Act
(ISTEA) in 1991 that provided $6.0 billion in funding for surface transportation and other
related projects to contribute to air quality improvements and reduce congestion. It was
reauthorized in 2005 under the Safe, Accountable, Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA-LU) and provides funding to State Departments of
Transportation, Metropolitan Planning Organizations, and transit agencies to invest in
projects that reduce criteria air pollutants regulated from transportation-related sources.
The Program provides the CTA with funding totaling $19.92 million over a period of five
years (2011-2015).
Congressional Budget Office
Branch of the federal government that provides economic data to Congress.
Consumer Price Index (CPI)
A measure estimating the average price of consumer goods and services purchased by
households. CPI measures a price change for a market basket of goods and services from one
period to the next within the same area and is used as a measure of the increase in the cost
of living (i.e. economic inflation).
Corridor
A defined study area considered for significant transportation projects such as highway
improvements, bus transitways, rail lines, or bikeways (e.g. Dan Ryan corridor, Western
Avenue corridor).
CTA Board Member Terms of Office
Board member terms are in seven year increments. Board members may be appointed to
terms already in progress, in which case they may serve until the end of that term.
Depreciation
An accounting term that recognizes the loss in value of a tangible fixed asset over time
attributable to deterioration, obsolescence, and impending retirement. Applies particularly
to physical assets like vehicles, equipment, and structures.
Disadvantaged Business Enterprise (DBE)
The Disadvantaged Business Enterprise (DBE) program is intended to ensure
nondiscrimination in the award and administration of contracts.
Discretionary Funds
Funds that the RTA allocates, at its discretion, to the Service Boards. These funds include
Public Transportation Funds and a portion of the 15 percent of the RTA Sales Tax.
Energy Information Administration (EIA)
The U.S. Energy Information Administration (EIA) collects, analyzes, and disseminates
independent and impartial energy information to promote sound policymaking, efficient
markets, and public understanding of energy and its interaction with the economy and the
environment.
Environmental Impact Statement (EIS)
An Environmental Impact Statement (EIS) is a document required by the National
Environmental Policy Act for federal government agency actions significantly affecting the
quality of the human environment. As a tool for decision making, an EIS describes the
positive and negative environmental effects of proposed agency action and cites alternative
actions.
Fare
The amount charged to passengers for bus and rail services.
Farebox
Equipment used for the collection of bus fares.
Farecard
Electronic fare media used for payment of fares.
Federal Funds Rate
The interest rate at which banks lend balances at the Federal Reserve to other banks
overnight. The rate is set by the Federal Open Market Committee (FOMC). The FOMC’s long
term goals are price stability and sustainable economic growth in the economy.
Federal Open Market Committee (FOMC)
Branch of the Federal Reserve that is responsible for open market operations, such as the
purchase and sale of U.S. treasuries and federal agencies securities.
Federal Transit Administration (FTA)
The federal agency which provides financial and planning assistance to help plan, build, and
operate rail, bus, and paratransit systems through grant programs.
Federal Insurance Contributions Act (FICA)
Social Security payroll taxes are collected under the authority of FICA.
Financial Accounting Standards Board (FASB)
The FASB establishes and improves standards of financial accounting and reporting for the
guidance and education of the public, including issuers, auditors, and users of financial
information.
Financial Plan
In addition to an annual budget, the Regional Transportation Authority Act, as amended in
2008, requires that all transit agencies prepare a financial plan encompassing the two years
subsequent to the budget year. This provides a three-year projection of expenses, revenues
and public funding requirements.
Fiscal Year (FY)
A fiscal year is a 12-month period used for calculating annual financial reports in
organizations. The CTA’s fiscal year runs congruent to the calendar year, beginning on
January 1 and ending on December 31.
Full Funding Grant Agreement (FFGA)
Grant agreements authorized under federal transit law that establish the terms and
conditions for federal financial participation in a New Starts project. The FFGA defines the
project, sets the maximum amount of federal New Starts funding for a project, covers the
period of time for completion of the project, and facilitates efficient management of the
project in accordance with applicable federal statutes, regulations, and policy.
Fund Balance
The excess of funding for a given period of time, referring to unreserved/undesignated
funds. Annual budget surpluses (or deficits) generally add to (or subtract from) the fund
balance.
Funding (Budget) Marks
The Regional Transportation Authority Act, as amended in 1983, calls for the RTA to advise
each of its Service Boards by September 15th of the public funding to be available for the
following year, as well as the required recovery ratio.
Generally Accepted Accounting Principles (GAAP)
GAAP is the standard framework of guidelines for financial accounting, mainly used in the
United States. It includes the standards, conventions and rules accountants follow in
recording and summarizing transactions, and in the preparation of financial statements.
Governmental Accounting Standards Board (GASB)
The GASB establishes and improves standards of state and local governmental accounting
and financial reporting.
Gross Domestic Product (GDP)
As a measure of economic activities, it is the amount of goods and services produced in the
United States in one year. It is calculated by adding together the market values of all of the
final goods and services produced in a year and reported by the U.S. Bureau of Economic
Analysis.
Government Finance Office Association (GFOA)
The purpose of the Government Finance Officers Association is to enhance and promote the
professional management of governments for the public benefit by identifying and
developing financial policies and best practices, and promoting their use through education,
training, facilitation of member networking, and leadership.
Headway
The time span between when one service vehicle (bus or rail) leaves a stop/station and
when the following vehicle arrives at the same stop/station on specified routes. Also called
service frequency.
Heavy Rail
An electric railway with the capacity for a heavy volume of traffic. Heavy rail is
characterized by high-speed passenger rail cars and trains operating on fixed rails in
separate rights-of-way from which all other vehicular and foot traffic is excluded.
Hedge
A type of investment activity used to reduce the risk of adverse price movements in an asset.
Normally, a hedge consists of taking an offsetting position in a related security to minimize
unwanted risks associated with price fluctuation.
Hybrid Bus
A hybrid bus combines a conventional internal combustion engine propulsion system with
an electric propulsion system and uses a diesel-electric powertrain. Also known as a hybrid
diesel-electric bus.
Illinois Fund for Infrastructure, Roads, Schools and Transit (Illinois FIRST)
A five-year public works improvement program that allocated capital funds between
FY2000 through FY2004.
Illinois Jobs Now Program
A $31 billion program creating over 439,000 jobs in five years from 2010 through 2014;
designed to improve bridges and roads, transportation networks, schools, and communities.
Illinois’ Low-Income Circuit Breaker Program
The official name of the Program is the Senior Citizens and Disabled Persons Property Tax
Relief and Pharmaceutical Assistance Act, governed by the Illinois Department on Aging. The
Program is to help offset the cost of property taxes and other living costs by providing low-
income, senior, or disabled residents with yearly grants.
Infrastructure
Capital assets that make up the CTA’s transportation system, including maintenance
facilities, rail track, signals, stations, elevated structures, and power substations.
Innovation, Coordination and Enhancement Fund (ICE)
A fund established by the 2008 amendments to the RTA Act for operating or capital grants
or loans to Service Boards, transportation agencies, or units of local government that
advance the goals and objectives identified by the RTA’s Strategic Plan. Unless an emergency
is determined by the RTA Board that requires some or all amounts of the Fund, it can only be
used to enhance the coordination and integration of public transportation and develop and
implement innovations to improve the quality and delivery of public transportation.
Intermodal
Transportation by more than one mode (bus, train, etc.) during a single journey.
Interval
The time between when one service vehicle (bus or train) leaves a stop/station to the time
when the following vehicle leaves the same stop/station.
Job Access and Reverse Commute Program (JARC)
A program established by the FTA to address the unique transportation challenges faced by
welfare recipients and low-income persons seeking to obtain and maintain employment,
which often is located in a less accessible area and/or requires late at night or weekend
schedules when conventional transit services are not sufficiently provided.
Locally Preferred Alternative (LPA)
The final selected scope and design for a major corridor investment. Alternatives analysis is
considered complete when a locally preferred alternative is selected by local and regional
decision makers and adopted by the Metropolitan Planning Organization (MPO) into the
financially constrained, long-range metropolitan transportation plan.
London Interbank Offered Rate (LIBOR)
Short-term interest rate used when banks borrow funds from other banks in the London
interbank market. The world’s most widely used benchmark for short-term loans.
Major Delay – Rail
An instance where a train experiences a delay to service of ten minutes or more.
Mean Miles Between Defects
The average mileage a train accrues before experiencing a defect.
Metra
Commuter Rail division of the RTA responsible for the day-to-day operation of the region’s
long-distance commuter rail transit service (with the exception of those services provided
by the CTA). Metra was created in 1983 by an amendment to the RTA Act.
National Transit Database (NTD)
The FTA’s primary national database for statistics on the transit industry.
New Starts
FTA discretionary program that is the federal government’s primary financial resource for
supporting locally-planned, implemented and operated transit “guideway” capital
investments.
Non-Farm Payroll
A compiled employment level of goods-producing, construction and manufacturing
companies. It is released monthly by the United States Department of Labor to represent the
number of jobs added or lost in the economy over the last month.
Non-Operating Funds
Capital grant monies to fund expenses.
Non-Revenue Vehicle
Vehicles that do not carry fare-paying passengers and are used to support transit
operations.
Operating Budget
Annual revenues and expenses forecast to maintain operations.
Operating Expenses
Costs associated with the day-to-day operations of the delivery of service for a transit
agency. Examples of operating expenses include labor, material, fuel, power, security and
professional services.
Operating Revenues
Revenues generated from user fees (in the form of farebox revenues) or other activities
directly related to operations such as advertising, concessions, parking, investment income,
etc.
Organization of Petroleum Exporting Countries (OPEC)
OPEC is an intergovernmental organization of 12 developing countries made up of Algeria,
Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab
Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965.
Pace
The Suburban Bus Division of the RTA, responsible for non-rail, suburban public transit
service and all paratransit service. Pace was created in 1983 by an amendment to the RTA
Act.
Paratransit Service
Demand-response service utilizing wheelchair-accessible vans and small buses to provide
pre-arranged trips to and from specific locations within the service area to certified
participants. Paratransit includes demand-response transportation services, subscription
bus services and shared-ride taxis.
Passenger Miles
The sum of the distances traveled by passengers.
Pay-As-You-Go Funding
A practice of financing expenditures with funds that are currently available rather than
borrowed.
Pension Obligation Bonds (POB)
Debt instruments issued by a governmental entity to fund all or a portion of the Unfunded
Actuarially Accrued Liabilities (UAAL) for pension and/or Other Post Employment Benefits
(OPEB).
Performance Management
The process of assessing and acting upon progress toward achieving predetermined
measures and metrics. All operating and most support personnel are held accountable to
these measures and metrics. The CTA implemented a performance management program in
May 2007.
Power Washing - Facilities
The deep cleaning of a CTA station or facility using pressure washing equipment.
Preventive Maintenance
The care and servicing of equipment and facilities in order to maintain them in satisfactory
operating condition. Preventive maintenance provides for systematic inspection, detection
and correction of incipient failures either before they occur or before they develop into
major defects.
Producer Price Index (PPI)
A family of indices from the U.S. Bureau of Labor Statistics (BLS) that measures the average
changes over time in the prices received by domestic producers of goods and services.
Public Building Commission (PBC)
Formed in 1956, this City of Chicago organization provides professional management of the
city’s public construction projects.
Public Funding
Funding received from the RTA or other government agencies.
Public Transportation Funds (PTF)
As authorized by the RTA Act, the Illinois State Treasurer transfers from the State General
Revenue Fund an amount equal to 25 percent of RTA sales tax collections to a special fund,
called the Public Transportation Fund (PTF), and then remits it to the RTA on a monthly
basis. The state funding package increases the percentage of state sales tax dedicated to
mass transit and deposits additional amount of funding to PTF. All funds deposited are
allocated to the RTA to be used at its discretion for the benefit of the Service Boards.
Real Estate Transfer Tax (RETT)
A source of public funding for the CTA collected by the City of Chicago. The 2008 legislation
authorized a $1.50 per $500 increase in RETT and the CTA receives 100 percent of the RETT
increase.
Recovery Ratio
Measures the percentage of expenses that a Service Board must pay against revenues that it
generates. The RTA Act mandates that the RTA region must attain an annual recovery ratio
of at least 50 percent.
Reduced Fare
Discounted fare for children ages seven through 11, grade school and high school students
(with CTA ID), seniors 65 and older (with RTA ID), and riders with disabilities (with RTA ID)
except paratransit riders.
Reduced Fare Reimbursement
Reimbursement of revenue lost by the Service Boards due to providing reduced fares to
students, elderly and the disabled. The CTA recovers the cost of trips with both the fare
revenue and operating subsidies. The reimbursements are made from the State of Illinois to
cover the difference between the standard and reduced fare. Reimbursement amounts are
allocated to the Service Boards based on reduced fare passenger trips taken during the year.
Regional Transportation Authority (RTA)
The RTA is the financial oversight and regional planning body for the three public transit
operators in northeastern Illinois: the CTA, Metra commuter rail, and Pace suburban bus.
Regional Transportation Authority Act (RTA Act)
An Act that regulates which public funds may be expended and authorizes the state to
provide financial assistance to units of local government for distribution to providers of
public transportation, including the CTA. It authorizes the distribution of sales tax revenue
collected by the City of Chicago and collar counties, Public Transportation Funds, State
Assistance, as well as other funding streams for the CTA. It also outlines criteria that the CTA
has to meet for its budget approval.
RTA Sales Tax
The primary source of operating revenue for the RTA, the CTA, Metra and Pace. The RTA
retains 15 percent of the original one percent RTA sales tax authorized in 1983. Of that
which remains, the CTA receives 100 percent of the taxes collected in the City of Chicago and
30 percent of those taxes collected in suburban Cook County. Of the funding available from
the 0.25 percent sales tax and PTF authorized by the 2008 legislation, the CTA receives 48
percent of the remaining balance after allocations are made to fund various programs.
Revenue Bond
A certificate of debt issued by an organization in order to raise revenue. It guarantees
payment of the original investment plus interest by a specified date. Debt service payment is
secured by a specific revenue source.
Revenue Equipment
Includes vehicles that carry fare-paying passengers and equipment used for the collection of
fares.
Ride
A trip taken by passengers on the bus or rail system.
Ridership (Unlinked Passenger Trips)
Total number of rides. Each passenger is counted each time that person boards a vehicle.
Right-of-Way
A strip of land that is granted, through an easement or other mechanism, for transportation
purposes, such as for a trail, driveway, rail line or highway. A right-of-way is reserved for the
purposes of maintenance or expansion of existing services within the right-of-way.
Rolling Stock
Public transportation vehicles, including rail cars and buses.
Run
Rail or bus operator’s assigned period(s) of work on a given day.
SAFETEA-LU
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU). A federal transit and highway bill signed into act on August 10, 2005,
authorizing $286.4 billion nationwide through 2009, including $52.6 billion for transit. A
reauthorization of the federal transit and highway program is pending congressional action.
Scheduled Transit Operations (STO)
The scheduled transit operations classification includes bus operators, motormen and
conductors.
Senate Bill (SB) 1977
Illinois Senate Bill that stipulates that beginning January 1, 2009, the CTA must make annual
contributions to the CTA Pension Fund to achieve a 90 percent funded ratio by 2059. The
CTA’s Pension Fund's actuary has determined that the fund’s assets will be exhausted by
2012 without significant increased contributions and changes to the funding structure and
benefit levels.
Service Boards
CTA, Metra commuter rail and Pace suburban bus system, as referred to by the Regional
Transportation Authority Act.
Sheriff’s Work Alternative Program (SWAP)
A program where persons convicted of Driving Under the Influence and other low-level
offenses are required to provide a variety of community services for municipalities
throughout Cook County.
Slow Zone
Sections of track where trains must reduce speed in order to safely operate rail service.
State Assistance
The supplemental funding provided by the RTA Act in the form of additional state and
financial assistance to the RTA in connection with its issuance of Strategic Capital
Improvement Program (SCIP) bonds. It equals the debt service amounts paid to the
bondholders of the SCI bonds plus any debt service savings from the issuance of refunding
or advanced refunding SCIP bonds, less the amount of interest earned on the bonds’
proceeds.
State of Good Repair (SOGR)
An asset or system is in a state of good repair when no backlog of capital needs exists –
hence all asset life cycle investment needs (e.g., preventive maintenance and rehabilitation)
have been addressed and no capital asset exceeds its useful life. Therefore, the first priority
for a transit system is to maintain infrastructure and equipment, making regular repairs
where needed and retiring equipment from service at the end of its life cycle.
State of Illinois’ Public Transportation Fund (PTF)
As authorized by the RTA Act, the Illinois State Treasurer transfers from the State General
Revenue Fund an amount equal to 25 percent of RTA sales tax collections (or gasoline or
parking taxes, if imposed by the RTA). The treasurer transfers this amount to a special fund,
called the Public Transportation Fund (PTF), and then remits it to the RTA on a monthly
basis. The RTA uses these funds at its discretion to fund the service board needs, RTA
operations, debt service and capital investment.
State Transportation Improvement Plan (STIP)
The FY 2006-2009 Statewide Transportation Improvement Program (STIP) is a four-year
program of highway and transit projects developed to fulfill the requirements set forth in
the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and its successor, the
Transportation Equity Act for the 21st Century (TEA-21), and in the Safe, Accountable,
Flexible, Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU). The FY
2006-2009 STIP totals $15.66 billion with $7.1 billion for highway improvements and $8.56
billion for transit capital improvements and operating assistance.
Stimulus Funds
See American Recovery and Reinvestment Act.
Suburban Community Mobility Fund
Outlined by the RTA Act, grants and appropriations from the state, which the RTA
distributes to the Suburban Bus Board for operating transit services, other than traditional
fixed-route services, that enhance suburban mobility, including, but not limited to, demand-
responsive transit services, ride sharing, van pooling, service coordination, centralized
dispatching and call taking, reverse commuting, service restructuring and bus rapid transit.
System-Generated Revenue
Revenue generated by the CTA. Includes fare revenue, advertising, investment income,
income from local governments by provision of the Regional Transportation Authority Act,
and subsidies for reduced fare riders per 1989 legislation.
TEA–21
Transportation Equity Act for the 21st Century, a federal transportation package that
reauthorized the Federal Transit Program for the eight years from 1998 through 2005.
Grants can pay up to 80 percent of a capital project, with the remaining 20 percent funded
from local sources.
Ten-Year Swap Rate
The rate paid by a fixed-rate payer on an interest swap with maturity of ten years.
Ten-Year Swap Spread
The gap between the rates to exchange floating for fixed interest payments and treasury
yield for ten years. By taking into account the investments that contain credit risk, as well as
the ones that are often viewed as risk-free, swap spread indicates investors’ expectations of
the market.
Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER)
The TIGGER Program has been continued in FY2011 through the Department of Defense and
Full-Year Continuing Appropriations Act 2011 (Pub. L. 112-10). $49.9 million was
appropriated for grants to public transit agencies for capital investments that will reduce
the energy consumption or greenhouse gas emissions of their public transportation
systems.
Transportation Improvement Plan (TIP)
A six-year financial program that describes the schedule for obligating federal funds to state
and local projects. The TIP contains funding information for all modes of transportation,
including highways and high-occupancy vehicles, as well as transit capital and operating
costs.
Top Operator Rate
The top hourly rate paid to CTA bus and rail operators, based on employee seniority within
the job, as specified by the union contract.
Trip
A one-way bus or train trip from origin to destination terminal.
Traffic Signal Prioritization
Operational strategy where communication between a transit bus and a traffic signal alters
the timing of the traffic signal to give priority to the transit vehicle.
Unified Work Program (UWP)
The Unified Work Program lists the planning projects the Chicago Area Transportation
Study and other agencies undertake each year to enhance transportation in northeastern
Illinois and to fulfill federal planning regulations. The UWP is designed to run in conjunction
with the State of Illinois fiscal year timeline of July 1-June 30. The final UWP document
includes the transportation planning activities to be carried out in the region, detailing each
project’s description, products, costs, and sources of funding.
Unlinked Passenger Trip
An unlinked passenger trip is a single boarding of any transit vehicle. Thus, unlinked
passenger trips for any transit system are the number of passengers boarding public
transportation vehicles. A passenger is counted each time he boards a vehicle, even if the
boarding is part of the same trip.
Vehicle Revenue Hours
The hours that vehicles travel while in revenue service. Vehicle revenue hours include
recovery time but exclude travel to and from storage facilities.
Vehicle Revenue Miles
Miles that vehicles travel while in revenue service. Vehicle revenue miles exclude travel to
and from storage facilities.