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President and General Managerıs Message
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Dear Friend of RTA:
In 2006, RTA ambassadors were on the job. They offered a practical alternative to high gas prices and a new approach to service, ensured that
goodwill was delivered, and appointments were met. The collective result was an improvement in the quality of life for the region
we call home. One of the most successful missions completed by RTA ambassadors last year was the re-introduction of Trolleys to downtown. The
nostalgic green and gold vehicles, complete with cow catchers, wooden rails, and brass bells, took people back in time. And they arrived every
10 minutes to move people forward to their destinations.
The Trolley fare matched its fun exterior: free with a smile. This was made possible by financial support from the Convention & Visitors Bureau
of Greater Cleveland in 2006, and will continue in 2007 through a sponsorship from the Corner Alley and 4th Street Bar & Grill. Based on ridership
numbers, the idea of combining work with pleasure caught on. By yearıs end, nearly 3,000 riders were boarding the Trolleys daily -- a
dramatic increase over the 700 daily users of the old Downtown Loops.
Changing the way people travel downtown was also the idea behind the Euclid Corridor BRT Line, which achieved much progress in 2006. In November,
the Southeast Quadrant of Public Square was reopened, and construction was completed at various points between downtown and University Circle.
RTA ambassadors spent much of the year responding to surging energy costs. Auto expenses and home heating costs consumed bigger portions
of the family budget. Forecasts suggested the high prices were here to stay, no longer anomalies caused by world events. The new-found reality created
both opportunities and challenges for the transit authority.
Pump prices helped fuel a fourth consecutive year of ridership gains. Total rides provided reached 57.2 million. Commuters continued to make the
switch from driving to riding, finding shelter from high gas prices on RTA trains and buses. Since 2002 when the trend began, nearly five million new
riders have jumped onboard the transit system.
To assist commuters in breaking their bad habits of driving, RTA sponsored No Drive Day with the Northeast Ohio Areawide Coordinating Agency. Mayor
Frank Jackson, the Cuyahoga County Commissioners, the Governor, and both U.S. Senators supported the cause with proclamations. Most broadcast and print
media outlets covered it -- spreading the word on the benefits of walking, biking, and using RTA to break our dependence on foreign oil.
Pressures of rising oil prices had a negative impact on RTAıs finances in 2006. The same energy costs draining the family budget caused the transit
authorityıs operating budget to spin out of balance. For every penny increase in fuel prices, RTAıs annual expenses rose by $54,000. This forced
the need for a fare increase after 13 years with no change in pricing.
After receiving input from public officials and a series of public hearings, RTAıs Board of Trustees decided to do exactly what the community
asked -- approve a modest fare increase spread over several years without cuts to service. On average, fares rose by 25 cents in 2006, with another
increase of the same amount scheduled in 2008. This approach kept RTA the most affordable transportation option in Northeast Ohio.
RTA ambassadors earned high marks for simplifying the commute last year. They did this through technology enhancements, which included a redesigned
and easy to navigate Web site, an online Trip Planner, and NextConnect signs at passenger facilities.
New service offerings and enhancements also made a big difference. Along the Northwest Corridor, the 55F Gold Line was created, providing area
residents a faster commute to and from downtown. The Paratransit service continued to benefit from the integration of new scheduling software, with
more than 450,000 trips made by those with disabilities.
Among the capital projects completed in 2006 was the construction of a $2.1 million Transit Center in Parma. Park-N-Ride lots also were expanded
through funding from the Ohio Department of Transportation. In December, the Strongsville facility was expanded, and in 2007, spaces will be added to
North Olmsted and Westlake. On the rail, over $1 million in improvements were made to the Shaker Square Station, including ADA-related enhancements and
landscape beautification. And at the West 117th Street Station, construction remained on schedule.
Whether it was technology to simplify the commute, new service offerings, or the work of RTAıs TEAM of ambassadors, riders were pleased. Customer
satisfaction increased by double digits in 2006, up 12 percent.
Safety and security often get little recognition, in part because theyıre measured by things that donıt occur. But they remained a high priority in
2006. Safety, measured in terms of the number of preventable accidents, dropped by 11 percent across the board. To create a secure environment, RTAıs
Transit Police added a new class of recruits. They included eight officers and three bomb sniffing dogs. The dogs are part of a new canine unit formed
by Transit Police to detect explosives on vehicles and at passenger facilities.
There were plenty of other RTA ambassadors to honor in 2006. Some made it their mission to help the Marines collect Toys for Tots. Others donated
blood. And at least one made a career out of transit, and was recognized nationally as last yearıs Outstanding Public Transportation Board Member --
George Dixon.
Whatever the vehicle or the challenge, RTA ambassadors made it happen last year
| Sincerely, |
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George F. Dixon, III
President, RTA Board of Trustees |
Joseph A. Calabrese
CEO, General Manager/Secretary-Treasurer |
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| Ambassador of Seven-Ten Splits | |
Ding! Ding! Ding! Itıs been almost 50 years since anyoneıs heard that classic ring echoing from a block away. But Trolleys are cruising the
streets of Cleveland again -- embracing nostalgia with wood trim, mahogany seats, spiral brass handrails, and genuine leather hand straps. Even the
Trolley operators are dressed in vintage uniforms complete with their "Motorman" caps. Claudia is the third member of her family to work at RTA.
Specifically picked for her wonderful smile and amiable personality, Claudia is always ready to chat with her riders as well as lend a listening ear.
She has been specially trained to highlight the history of the area and the attractions that are available at every stop so that she can recruit more
regulars.
Downtown Cleveland is in need of more fun and social interaction, especially during the workweek. Every Tuesday, Tony, Gwen, Chris, and Lesley head
over to the Corner Alley for a drink and some old-fashioned fun. To further relieve the stress of the day, the Trolley stops right outside their
building and drops them off at the corner. One of twelve stops on the E-Line, or Entertainment Line, the Corner Alley is a unique theme recently added
to downtown life. Modern décor fuses Cleveland culture with a favorite pastime. And RTA is fusing Cleveland nightlife with the nine-to-five to make
weekly happenings fun again. Especially, if you can pick up that seven-ten split. |
Our region is defined by hard work. Cleveland and the surrounding suburbs were built on it, schools and parents instill it, and employers in the area
reward those who make a career out of it. Mixing business with pleasure is something thatıs simply contrary to our Midwest values.
Ambassadors of RTAıs new Downtown Trolleys had a different message to deliver. They promoted a new downtown hospitable to both work and
play -- from trendy restaurants in the Warehouse District and unique shopping at the Old Arcade, to improvements at Playhouse Square and many new
attractions in the Entertainment District.
Last year Trolleys were back after a nearly 50-year absence. And they came complete with cow catchers, wooden rails, and brass bells. Bringing them to
life are ambassadors -- operators with a gift for gab and deep knowledge of the city. The idea was to combine fun with functionality, with two lines
operating on short 10-minute pickup frequencies. The cost to ride: a smile, which most Northeast Ohioans found they could do with a little practice.
In no time, workers were hopping on the B-Line Trolley to meet friends on the other side of town for lunch. They were also jumping aboard the E-Line
for a laugh at Pickwick & Frolic and other venues. By yearıs end, daily ridership had grown to 3,000, a major increase from the 700 daily rides
provided by the old Downtown Loop service.
While the nostalgic green and gold vehicles turned heads, much of the success of the Downtown Trolleys can be attributed to strong community
support. This includes the efforts of nearly 100 child actors and City Year volunteers who dressed as newsboys and greeted office workers in lobbies,
spreading the word that the Trolleys were on the street once again. Financial support from the Convention & Visitors Bureau of Greater Cleveland
kept the service free throughout the year.
In 2006, RTA also made progress on another project that will change the way people move about the town
As with any major construction project, one of the challenges faced last year was how to minimize disruption to residents, businesses, and merchants
while the orange barrels were in place. Planning months earlier helped. But to keep foot traffic flowing to merchants, RTA launched the "Open for
Business" marketing campaign. It consisted of advertising on interior bus cards, messages on electronic reader boards at rail stations, and stories
in the RTA Riderıs Digest. The campaign was recently expanded, and now includes advertising in various newspaper dailies and weeklies.
|
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| Ambassador of On-Time Departures | |
Myron feels very privileged to be with RTA. Heıs been a driver on several different routes and is proud of the work he does. What he loves
most about the job is the chance to interact with people. No matter who steps on, Myron is friendly and inviting. Currently, heıs been
operating the Red Line to the airport. His extended background with the company has given him a lot of experience with customer service.
He has such excellent experiences with customers, that he earned RTAıs Operator of the Month. But really, he just enjoys the fact
that his job makes a difference in peopleıs lives by helping them get to the places they need to go.
John travels quite frequently, and most of the time he has to fly to his destinations. Flying used to make him really nervous, but since he
flies two weeks a month for work, heıs gotten more comfortable with it. He is a technical consultant, and most of his clients are located in
different states across the country. All that traveling is all the more reason for John to take the Red Line. He doesnıt have to worry about gas or
parking fees, and he especially doesnıt have to worry about running late. RTA gets him there on time, every time. Whether heıs flying for work or
a much-needed vacation, Johnıs life happenings are better thanks to RTA. |
There was a time when a trip was a welcomed adventure. Today, however, the excitement is overshadowed by the hassles of finding a parking space, facing
serpentine lines at security check points, and experiencing delays both on the ground and in the air. The same can be said about a local commute, with
traffic congestion and road construction putting a monkey wrench in an already stressed day.
Last year, RTA focused on ways to simplify travel. It began with a method for navigating the transit system in virtual space. This was achieved
with the launch of the Trip Planner. With it, the multitude of stops, routes, and possible departure times are boiled down to just two questions:
Where are you starting out? Where do you want to go? Once answered, the Trip Planner finds the right RTA service to get you there.
Providing commuters better information was also the driving force behind the installation of NextConnect signs at major passenger facilities. The
electronic signs give riders real-time updates on the precise arrival of trains and buses. They also furnish news on-the-go: national headlines,
breaking local stories, sports scores, and changing weather conditions.
Daily orchestration of the bus and rail fleet continued to be managed at RTAıs Communication Center. Since its installation in 2003, on-time
performance has steadily improved, reaching levels that would make most airlines envious. The exact location of every train and bus is tracked at
the center using Global Positioning System technology.
Advanced Paratransit scheduling software is another service success story. The $1.4 million investment streamlined the process of picking up and
dropping off thousands of individuals every week. The end result is a dramatic increase in the number of Paratransit customers served over the
past several years.
Technology was not the only thing employed last year to enhance reliability and customer satisfaction. Employees -- mechanics, operators,
dispatchers, customer service representatives -- remained committed to getting riders to their destinations safely, on-time, and in a mood equal to
or better than when they got on. The focus was due in part to the TEAM (Together Everyone Achieves More) incentive program, initiated by RTA in
2000.
RTAıs makeover of its fleet continued in 2006. In addition to the 11 Trolley vehicles, 45 new buses were added, and 13 refurbished light-rail cars
were brought into the system. The infusion of new equipment has streamlined the transit authorityıs operations while creating a completely different
riding experience.
Whether it was achieved through technology, a renewed employee commitment, or the new vehicle fleet, RTA riders were happy last year. Customer
satisfaction increased by double digits in 2006, up 12 percent. |
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| Ambassador of Cream and Sugar | |
Gary recently moved from the RTA Transit Police to the new Canine Force, which started in August. He and Timon, a German Shepherd and native
of the Czech Republic, spent ten weeks training for bomb deployment. As part of the new security unit, Gary and Timon will respond to calls for
bomb threats, suspicious packages, and other matters of national security. RTA is keeping up with the best safety practices that have been implemented
across the nation. Gary and Timon attend training sessions on Tuesdays to be prepared for every possible situation. Timon is one of three dogs on duty
at RTA. Fortunately, they have not been called out for a serious threat.
The dogsı presence around the RTA stations has increased awareness of safety and proactive measures taken by the city. Riders see the dogs and know RTA
is watching out for their safety. John and Heidi appreciate the lengths that RTA goes to for their safety. They take the Community Circulator to
Deweyıs for coffee and chats every Saturday. Nestled in the historic, yet newly remodeled, Shaker Square is Deweyıs Gathering House featuring Fair
Trade coffee. Deweyıs also has original art on display and plush, cozy chairs that break up the space and make it a great place to sit and catch up
on life. Ensuring lasting friendships is just another way RTA is making life, and lattes, happen. |
Comforts come in many different forms. For some itıs a warm cup of coffee on a cold winter day, a close friend with thoughtful advice, or a favorite
song with an inspiring beat. Theyıre things that make us feel safe and put us at ease.
In 2006, RTA was a sense of comfort for many. It was a knowledge that even with physical limitations mobility was possible, a level of confidence
that a familiar face would be waiting, and security in a world filled with unseen dangers.
Freedom to travel anywhere was a message to those with wheelchairs. RTAıs entire bus fleet remains ADA accessible. So too are many of the
transit authorityıs passenger facilities. Joining the list last year was the Shaker Square Station. Improvements totaling $750,000 were made to the
station, including the installation of a powered wheelchair lift, ramps, and signage.
Paratransit service continued to post impressive numbers. After experiencing explosive ridership growth of 24.8 percent in 2004, and 25
percent in 2005, the number of new trips leveled off last year, rising by just 1.5 percent. However, the total number remained high, with
450,000 passenger trips taken in 2006.
Two standout areas for RTA were safety and security. Across the board, preventable collisions dropped by 11 percent. On rail lines, the number of
preventable accidents was zero, an achievement not recorded in over a decade. Part of the success can be attributed to the development of a new
operator safety curriculum, with attention given to fatigue training and defensive driving./p>
Security was beefed up at the transit system with new officers, equipment, and programs. Eleven joined the RTA Transit Police team
Cameras are another powerful weapon against crime. Last year, RTA employed 280 video cameras to monitor rail stations, bus facilities, and
parking lots. They were also used on vehicles -- with the entire fleet of Downtown Trolleys and 40 new NABI buses equipped with state-of-the-art video
systems. In addition, funding was obtained in 2006 to retrofit 60 heavy-rail vehicles with cameras. Much of the cost for the cameras is being covered
by the Department of Homeland Security.
More eyes should help too. This is the benefit of Transit Watch, a public awareness and outreach campaign introduced by RTA last year. The
campaign is modeled after Neighborhood Watch and is being used by transit authorities across the nation to help maintain a safe transit environment. |
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| Ambassador of Dutch Apple Delight | |
Jose has been with RTA for over 12 years now. Heıs run several different routes over those 12 years, but enjoys his current assignment most
of all: a Community Circulator operator. Many people depend on him, and for that reason, he gets to build friendly relationships with those
regular riders. He often gets teenagers that are too young to drive, but old enough to go out on their own. (Usually, theyıre too cool for
Jose, though.) Thanks to the reliability of the Circulator, they can go out with friends and still make it home for curfew. He also
gets regulars that arenıt too cool to chat with him, like Mary.
For the past couple of months, Maryıs been taking the new Community Circulator over to Daveıs Supermarket. She is an excellent chef, but her
unique recipes always leave her in need of ingredients. Today, she ran out of apples for a new dutch apple pie sheıs trying out. Thanks to RTA,
her spontaneous imagination doesnıt have to wait for the next trip to the store. She can hop on the Circulator and be back by the time the butterıs
soft. To make it even easier, Daveıs Supermarket and RTA joined together to make the trip free. Her grocery tab no longer has to be accompanied by
a bus fare, and that makes grocery trips happen as easy as pie. |
With an annual snowfall in excess of 50 inches, outsiders sometimes question why we call Northeast Ohio home. Clevelanders often cite the quality of
life -- beautiful neighborhoods that are affordable and diverse -- top rated hospitals and universities -- the orchestra, the parks, the lake -- and
the ability to get virtually anywhere on transit.
RTA vehicles cover a 458 square mile area connecting 59 communities. They take employees to work, students to school, and fans to ballgames. But the
routes and services in the system are not static. They are routinely altered to match the changing transportation needs of the community.
Case in point: a new approach to traveling along the Northwest Corridor with the introduction of the 55F Gold Line. The route follows the
communities of Avon Lake, Bay Village, Fairview Park, Rocky River, and Lakewood. Instead of traveling the Interstate, the new flyer makes limited
stops along Lake and Detroit Avenues and Clifton Boulevard. It was the best of both worlds for residents who attended community planning meetings --
a quicker commute and better access to local stores and restaurants along the way.
Several capital projects were undertaken in 2006 to expand RTAıs network of Park-N-Rides and Transit Centers. This included the creation of 186
additional parking spaces at the Strongsville Park-N-Ride lot. Similar work is currently underway at the North Olmsted and Westlake Park-N-Ride lots.
The Ohio Department of Public Transportation is covering 80 percent of the cost for the expansions as a way to encourage transit use during the
upcoming Innerbelt construction.
In Parma, a new $2.1 million Transit Center was unveiled. The center will be a hub for six bus routes and will significantly improve across-town
commuting in the Southwest suburbs by creating a central connection point for the routes.
On the rail, work progressed on the West 117th Street Station. This station was historically one of the busiest on the Red Line Rapid. In the
future, it will be surrounded by retail, entertainment, and upscale living complexes as part of a proposed transit oriented development by the
cities of Lakewood and Cleveland. Designs were also completed for remodeling of the East 55th Street and West 150th/Puritas Street Rapid Stations.
And in a year when automakers scrambled to produce fuel efficient hybrid vehicles, RTA gave a sneak peak at its own green machine -- a 60-foot
articulated hybrid bus that will power the Euclid Corridor BRT Line. Its unique powertrain design offers a 30 percent improvement in fuel
efficiency -- making it the ultimate hybrid. |
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| Ambassador of Safe Deposits | |
When Jay joined RTA, he had no idea his role would be so vital to the community. From engines to executives, Jay has a hand in everything that
happens at RTA. He is a mechanic, which means his responsibilities ensure the safety of every single rider. Itıs Jayıs job to maintain fluid levels,
monitor the engine and brakes, and make repairs immediately. He starts off every day in that order and follows up with each of the drivers,
all before lunch. The people of this region, including many RTA employees, depend on him for safety. After all, RTA is what keeps
their lives moving forward -- along with many Northeast Ohio businesses.
In fact, more and more employers are utilizing the Commuter Advantage program for their employees. Jessica is an office manager with a pretty hectic
schedule. She finds the day easier to manage when she doesnıt have to commute 30 minutes in traffic. Ted, her manager, encourages all his employees to
be a part of the Commuter Advantage program. Starting the day off without added stress from traffic leaves employees in a better mood and more able to
provide exceptional customer service. For Paul, President, National City Bank, Northern Ohio, customer satisfaction is very important. He is thankful
for RTAıs Commuter Advantage program because itıs making everyoneıs deposits happen safely and a little more enjoyably. |
World financial markets issued new long-term forecasts in 2006. Surging oil prices were no longer a reaction to terrorist actions in the Middle East
or unexpected demand in China and the Far East. They were here to stay. The reality forced retooling in the auto industry and a rethinking by Americans
about their relationship with their cars.
RTA reached out to those disenchanted by surging gas prices. It offered a sensible alternative -- clean-air buses and electric-powered rapid transit
trains. More than 100 routes were available to over 10,000 destinations. And 8,500 parking spaces were open to those ready to step out of their cars.
Walking and biking were also encouraged, with short distances between stops and bike racks on the entire RTA bus fleet.
As an incentive to jump on board, RTA developed a test ride offer. In conjunction with No Drive Day, free fare passes were handed out to any commuter
ready to make the switch from driving to riding. But it wasnıt just RTA that asked Northeast Ohioans to give their rides a rest for a day. Mayor Frank
Jackson, Senators DeWine and Voinovich, and the Cuyahoga County Commissioners all declared May 17 as the day to break our dependence on foreign oil by
walking, biking, or taking RTA to work.
Thousands took RTA up on its challenge. Ridership increased to 57.2 million last year, up by 150,000 rides. It represented the fourth consecutive year
of ridership gains. Cyclists also considered RTA their second favorite mode of travel in 2006, with 35,000 bike-related trips on the transit system
in 2006.
2006 ridership gains were achieved on the heels of the first fare increase in 13 years. The same skyrocketing energy costs that were draining
the budgets of families, caused RTAıs operating budget to run out of balance. For every penny rise in fuel prices, the transit authorityıs costs
rose by $54,000. To offset this, $25 million was eliminated from the budget through the consolidation of bus garages, the reduction of the bus fleet,
and various improvements in productivity. These savings were still not enough to overcome the expense of fueling more than 900 vehicles.
To lessen the impact on customers, RTAıs Board of Trustees approved a two-step fare increase, with scheduled adjustments of 25 cents on average in
2006 and 2008. This allowed RTA fares to remain a bargain compared to driving. In addition, special fare programs such as Commuter Advantage, which
permits employees to purchase month passes using pretax dollars; and U-Pass, offering unlimited trips and transfers to college students for one low
price, kept RTA truly affordable. |
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| Ambassador of Big Hearts | |
Pam has always wanted to do more volunteer work, but it has been increasingly difficult to find the time for it. Thankfully, RTA believes in
giving back to the community and making it a high priority. Now, Pam can easily be an active participant in Toys for Tots. She helps Rodney and both
Mikes from the U.S. Marine Corps, schedule and set up drop boxes at popular RTA destinations. She also gets to help out with the pickup and delivery.
Seeing such gratitude in the faces of recipients makes the extra effort worth it, especially since these are families located within her
community.
RTA recognizes its role not only in downtown Cleveland, but also its surrounding regions. Its purpose is to make life easier by helping to make good
things happen for community members. Transporting people across town and back isnıt enough. There are many opportunities to make lives in this area
better. Thatıs why RTA is continuing to do its part, especially during the holidays. Employees, like Pam, are encouraged to take the time to help out.
Whether the act is as simple as donating canned goods or as involved as sorting and delivering bundles of toys, RTA wants its employees to feel like
they can play a part in making the holidays more rewarding for all. Thanks to the wonderful volunteers at RTA and the U.S. Marine Corps, "happy"
holidays truly are happening. |
When Clevelandıs distinction as the Rock and Roll Capital was challenged, the community rallied together. The same was true when the Browns were going to be
moved, the future of NASA was in doubt, and jobs were to be lost with the closing of the DFAS center. Northeast Ohio is also passionate about giving.
Weıre the city where United Way was born, and we step up to the plate when there is a need to fill.
In 2006, a number of charitable missions benefited from this generosity. This included the 3rd Battalion 25th Marines, who led the charge on the Toys
for Tots campaign. More than 500 toys and $3,000 in cash was donated by RTA riders at Park-N-Rides and at the Tower City Center Station during the
months of November and December.
In September, a critical blood shortage was eliminated through a special blood drive at RTAıs main office. Office workers and college students were
alerted to the need by Trolley Ambassadors, who dressed up in American Red Cross hats, shirts, and emergency vests. Those who donated were rewarded
with discounts to Indians games and savings at local retailers. Enough blood was donated to save 300 lives.
August was the month when downtown office workers boarded Trolleys to help kick off the United Way campaign. The destination was Public Square for
the annual Pancake Flip. More than 7,000 pancakes were consumed and $11,500 was raised. RTAıs 2,665 employees helped the United Way of Greater
Cleveland exceed its annual goal and made the transit authority a pacesetter in 2006 by donating $79,536.
Saving the earth was the focus in April, with residents jumping aboard RTA buses for EarthFest. Shuttle service to the Cleveland Metroparks Zoo was
performed by two newly purchased clean-diesel buses. RTA was one of the first transit authorities in the country to make the switch to
environmentally-friendly fuels, with 100 percent of its bus fleet operating on either natural gas or clean diesel.
A project led by RTAıs Citizens Advisory Board (CAB) sought to save minds. The program, entitled Moving Minds: The Verse & Vision Project,
displays the work of local poets and artists on interior bus and train cards. This is the third year the CAB worked with the American Institute of
Graphic Arts and the Poetsı and Writersı League of Greater Cleveland on the project, which produced 12 new pieces in 2006.
Along with supporting important causes, RTA contributed to fun in Northeast Ohio last year. RTAıs July 4th Family Fest in The Flats put
fireworks into view, while RTA Family Day at the Zoo allowed kids to experience elephants and kangaroos. In addition, RTA sponsored the Polar
Express Experience at Tower City Center |
| Board of Trustees |
President
George F. Dixon, III
Restaurateur
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Jerry N. Hruby
Mayor, City of Brecksville
|
Vice President
Edward J. Kelley
Mayor, City of Cleveland Heights
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Valarie J. McCall
Chief of Government Affairs, City of Cleveland
|
Jesse O. Anderson
President, Disabled Rights Task Force, Inc.
|
Nick "Sonny" Nardi
Veteran Labor Leader
|
Jane Campbell
Former Mayor of Cleveland
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Julian A. Rogers
Community Activist
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Dennis M. Clough
Mayor, City of Westlake
|
Leo Serrano
Program Director, LISC Northern Ohio
|
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| (Back row left to right) Jane Campbell; Nick Sonny Nardi; Edward J. Kelley (Middle row left to right) Dennis M. Clough; Julian A. Rogers; Valarie J. McCall; Leo Serrano;
George F. Dixon, III (Front row) Jesse O. Anderson; (Not pictured) Jerry N. Hruby |
| Executive Management Team |
Joseph A. Calabrese
Chief Executive Officer, General Manager/Secretary-Treasurer
|
Loretta Kirk
Deputy General Manager, Finance & Administration
|
Sheryl King Benford
General Counsel, Deputy General Manager, Legal Affairs
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Michael J. Schipper
Deputy General Manager, Engineering & Project Management
|
Stephen J. Bitto
Director, Marketing & Communications
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Taras G> Szmagala
Executive Director, External Affairs
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Grace Gallucci
Executive Director, Office of Management & Budget
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Michael York
Deputy General Manager, Operations
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Anthony Garofoli
Executive Director, Internal Audit
|
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Bruce Hampton
Deputy General Manager, Human Resources
|
|
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| (Back row left to right) Taras G. Szmagala; Bruce Hampton; Michael York; Michael J.Schipper; Stephen J. Bitto (Front row left to right) Loretta Kirk; Grace Gallucci; Joseph A. Calabrese; Sheryl King Benford; Anthony Garofoli |
Year-End Financial Report
RTA maintained a solid financial position in 2006 despite continued pressure from rising energy costs and lower than expected sales tax revenue.
This was accomplished through a larger beginning balance and strict expenditure control.
Evidence of the Authorityıs continued fiscal health can be seen in the Financial Indicators. Operating Ratio remained unchanged from 2005 at 19.3
percent. While the year-end ratio was below the policy goal of 25 percent, it was significantly better than the 17.8 budget estimate, a result of
additional revenue from the fare increase implemented in July. Operating Reserve surpassed budget estimates and was just slightly under the
one-month policy target at 0.9 month. RTAıs ability to cover its debt structure remained solid with the Debt Service Coverage ratio reaching 1.94,
above the 1.13 projected budget level, and within the policy target.
Operating revenues exceeded budget estimates in some categories while falling short in others. Overall, however, revenue failed to meet budget
forecasts. Sales tax, RTAıs largest revenue source, was $6.5 million below budget estimates as a result of a slowing housing market, depressed auto
sales, and an overall flat economy. Fare revenue generated $4.8 million over projections due to the initiation of the fare increase, but was not
enough to offset the drop in sales tax and grant funding. This caused RTA to finish the year $2.7 million below budgeted revenue estimates.
Operating expenses finished the year $10.1 million less than budgeted. This was achieved by careful monitoring of all expenditures, a slight drop in
fuel costs in the fourth quarter, and lower health care expenses. Along with a stronger beginning balance, expenditure savings pushed the ending
balance to $15.8 million, which is better than the budget forecast. This represents an improvement of more than $13 million.
Capital expenditures remained relatively close to budgeted levels as the Authority made progress on the Capital Improvement Plan (CIP). However, some
significant positive variances were noted as a number of projects were delayed or completed under budget.
| FINANCIAL INDICATORS |
|
Operating Ratio (Revenues)
Policy: An Operating Ratio (operating revenue divided by operating expense) of at least 25 percent measures RTA's ability to pay its operating expenses from revenue generated by its services, most notably fare revenue. |
Fare Subsidy/Net Cost per Passenger (Revenues)
Policy: The net cost per passenger shall not exceed three times the average fare. This measure indicates the level at which the transit authority is subsidizing the actual cost of a ride. |
Operating Reserve (Expenditures)
Policy: An Operating Reserve equivalent to at least one month's operating expenses is required to cover unforeseen or extraordinary fluctuation in revenue or expenses. |
Overhead Cost vs. Total Cost (Expenditures)
Policy: As an additional assurance of cost containment, RTA's overhead shall not exceed 15% of total cost. |
|
Growth in Cost per Hour of Service (Expenditures)
Policy: The Growth in the Cost per Hour of Service is expected to be kept at a rate at or below that of inflation, to ensure that costs do not grow faster than RTA's major sources of revenue, which are also sensitive to inflationary growth. |
Debt Service Coverage (Expenditures)
Policy: Total operating revenue minus operating expenditures divided by debt service requirements shall be kept to a minimum of 1.5 to ensure that debt service payments can be comfortably supported by the organization without jeopardizing general operations. |
Sales Tax Contribution to Capital (Expenditures)
Policy: A Contribution to Capital of an amount equivalent to at least 10 percent of sales tax revenue ensures the continued rehabilitation and replacement of capital assets and allows for expansion of the system. |
Capital Maintenance to Expansion (Expenditures)
Policy: Recognizing that the capital program requires a critical balance between maintenance of existing assets and expansion efforts, the percent of capital maintenance outlay to capital expansion outlay will be a minimum of 33 percent and a maximum of 67 percent. |
| FINANCIAL STATEMENTS |
| General Fund | 2005
actual | 2006
actual | $
change | %
change | %
of total |
| Revenue |
| Passenger Fares | $ 39,300,036 | $ 40,587,880 | $ 1,287,844 | 3.3% | 16% |
| Advertising | 1,705,176 | 1,404,639 | (300,240) | (17.6%) | 1% |
| Investments | 443,225 | 862,701 | 419,476 | 94.6% | 0% |
|
| Total Operating Revenue | $ 41,448,437 | $ 42,855,517 | $ 1,407,080 | 3.4% | |
| |
| Sales Tax | $ 168,997,361 | $ 168,615,372 | $ (381,989) | (0.2%) | 68% |
| Grants | 3,678,039 | 3,889,647 | 211,608 | 5.8% | 2% |
| Other | 32,466,221 | 33,309,267 | 843,046 | 2.6% | 13% |
|
| Total Non-Operating Revenue | 205,141,621 | 205,814,286 | 672,665 | 0.3% | |
| Total Revenue | $246,590,058 | $ 248,669,803 | $ 2,079,745 | 0.8% | 100% |
| |
| Expenditures |
| Labor/Fringe | $ 163,934,412 | $ 168,973,550 | $ 5,039,139 | 3.1% | 68% |
| Materials/Supplies | 11,159,781 | 11,417,888 | 258,107 | 2.3% | 5% |
| Fuel/Utilities | 23,701,488 | 26,295,531 | 2,594,044 | 10.9% | 10% |
| Services | 8,369,156 | 9,112,347 | 743,191 | 8.9% | 4% |
| Purchased Transportation | 4,714,778 | 3,062,978 | (1,651,800) | (35.0%) | 1% |
| Liabilities | 6,282,112 | 5,795,174 | (486,938) | (7.7%) | 2% |
| Other | 1,187,954 | 1,631,977 | 444,024 | 37.4% | 1% |
|
| Total Operating Expenses | $ 219,349,680 | $ 226,289,446 | $ 6,939,766 | 3.16% | |
| |
| Transfer to Insurance Fund | $ 0 | $ 750,000 | $ 750,000 | n/a | 0% |
| Transfer to Pension Fund | 100,000 | 106,000 | 6,000 | 6.0% | 0% |
| Transfer to Bond Retirement Fund | 14,073,000 | 14,700,000 | 627,000 | 4.5% | 6% |
| Transfer to Capital Improvement Fund | 6,626,560 | 7,140,207 | 513,647 | 7.8% | 3% |
|
| Total Non-Operating Expenditures | 20,799,560 | 22,696,207 | 1,896,647 | 9.12% | |
| Total Expenditures | $ 240,149,240 | $ 248,985,653 | $ 8,836,413 | 3.68% | 100% |
| |
| Revenue/Expenditures | $ 6,440,818 | $ (315,850) | |
| Balance Jan. 1 | $ 9,649,815 | $ 16,090,633 | |
| Balance Dec. 31 | $ 16,090,633 | $ 15,774,783 | |
|
| Capital Fund | 2005
actual | 2006
actual | $
change | %
change | %
of total |
| Revenue |
| Federal Capital Grants | $ 55,888,368 | $ 71,849,886 | $ 15,961,518 | 28.6% | 64% |
| State Capital Grants | 3,177,747 | 6,011,798 | 2,834,051) | 89.2% | 6% |
| Local Sources |
| (Gen. Fund and Debt Proceeds) | 6,626,560 | 32,143,496 | 25,516,936 | 385.1% | 29% |
| Other | 3,000,000 | 500,000 | (2,500,000) | (83.3%) | 0% |
| Investment Income | 707,924 | 1,278,176 | 570,252 | 80.6% | 1% |
|
| Total Revenue | $ 69,400,599 | $ 111,783,356 | $ 42,382,757 | 61.1% | 100% |
| |
| Expenditures |
| RTA Development Fund Projects | $ 92,227,928 | $ 99,198,421 | $ 6,970,493 | 7.6% | 96% |
| RTA Capital Fund Projects | 2,298,565 | 2,859,042 | 560,477 | 24.4% | 3% |
| Other | 335 | 0 | (335) | (100.0%) | 0% |
| Transfer to Bond Retirement Fund | 370,000 | 860,314 | 490,314 | 132.5% | 1% |
|
| Total Expenditures | $ 94,896,828 | $ 102,917,777 | $ 8,020,949 | 8.5% | 100% |
| |
| Revenue/Expenditures | $ (25,496,229) | $ 8,865,579 | |
| Balance Jan. 1 | $ 38,309,907 | $ 12,813,678 | |
| Balance Dec. 31 | $ 12,813,678 | $ 21,679,257 | |
|
| RTA 2006 Facts |
Annual Operating Budget:
$236.4 million
|
Blue/Green Line Rapid Transit
(Includes Waterfront Line):
48 light-rail cars
34 stations
15 miles of one-way track
|
Employees:
2,665
|
Paratransit:
77 vehicles
450,000 passenger trips
|
Ridership:
57.2 million passenger miles
|
Parking Lots:
8,500 spaces
|
Service Area:
458 square miles
59 municipalities
1.3 million people
|
RTA-Owned Bridges:
47 structures
|
Bus Service:
731 buses, trolleys and circulators
1,338 shelters
8,502 bus stops
90 routes
22.2 million service miles
|
RTAnswerline, 216-621-9500:
More than 1 million calls annually
|
Rail Service:
3.5 million service miles
|
RTA Web Site, www.rideRTA.com:
1.6 million visitors viewed 4.3 million pages
|
Red Line Rapid Transit:
60 heavy-rail cars
18 stations
19 miles of one-way track
|
|
| CITIZENS ADVISORY BOARD |
| |
| Kenneth Adams | Marie Fratus | Mary Vadas Reese |
| Steve Albro | Carol Johnson | Richard Ruhlman |
| ADA Chairman | Ryan McKenzie | Jacqueline Thompson |
| A.C. Alrey | Donna Prease | Andre White |
| Frank Anderson | Vince Reddy | Cathy Lewis Wright |
| Deidre Brooks | CAB Vice Chairman | George Zeller |
| Brad Chase | VAC Chairman | CAB Chairman |
| MISSION STATEMENT |
| RTA enhances the quality of life in Greater Cleveland by providing outstanding, cost-effective public transportation services. |
