FY17 ADOPTED ANNUAL OPERATING AND CAPITAL BUDGET
Valley Metro Rail, Inc. (VMR) is a public non-profit corporation whose members are the cities of
Chandler, Glendale, Mesa, Phoenix, and Tempe. VMR plans, designs, constructs and operates
light rail/high-capacity transit system in metro Phoenix, Arizona.
FY17 Operating Activities
Total Operating Activities for FY17 are $56.9 million, an increase of $5.1M or 9.8% from FY16.
Primary sources of funds are $56.9M as detailed below:
 Public Transportation Fund (PTF) sales tax revenue is $6.4M. PTF funding
requirements for project development activities are up by $0.9M.
 Member city funding of $31.1M is up from $26.3M due to operating 12 months of the
26-mile line, additional $1.3M future project development activities and $0.2M increase
for agency operations.
 Fare revenue is $15.9M, which is up due to addition of six miles of service for a full 12
months.
Primary uses of funds are also $56.9M as detailed below:
 Future project development is $11.0M, down primarily due to completion of project
development for the Tempe Streetcar and South Central capital projects.
 Revenue operations is $44.9M, up due to operating 12 months of the 26-mile line,
increased maintenance costs to maintain a state of good repair and increased fare
inspection and security resources.

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 1

FY17

VMR Operating Sources of Funds FY17 vs FY16

FY16

PTF Sales Tax Revenue
MAG / RPTA (RARF)
Member Cities
TIGER
Federal CMAQ
Federal 5307 PM
Advertising Revenue

Fare Revenue
$0.0

FY17

FY16

$10.0

$20.0

$30.0

$40.0

VMR Operating Uses of Funds FY17 vs FY16

Agency Operating Budget
Future Project
Development
Revenue Operations
$0.0

$10.0

VMR FY17 Adopted Budget Executive Summary

$20.0

$30.0

$40.0

$50.0

Valley Metro | 2

FY17 Capital Activities
Total Capital Activities for FY17 are $140.0 million, an increase of $56.6M or 68% from FY16.
Primary sources of funds are $140.0M as detailed below:
 PTF sales tax revenue is $34.1M, down from $59.9M last year due to completion of
Central Mesa and Northwest Phoenix light rail extensions.
 PTF bond revenue is $43.1M with series 2017 bond issue to fund upcoming rail
projects.
 Federal CMAQ is $73.2M, up from $14.5M primarily for Gilbert Road Extension,
Tempe Streetcar and LRV acquisition.
Primary uses of funds are $140.0M as detailed below:
 Systemwide Improvements $16.3M
 Non- Prior Rights Utilities $3.2M
 South Central Extension $39.4M
 50th Street Station $5.8M
 Tempe Streetcar $9.5M
 Gilbert Road Extension $57.9M
 Central Mesa Extension $4.7M
 Northwest Extension $3.2M

FY17

FY16

VMR Capital Sources of Funds FY17 vs FY16
Member City revenue includes payment
of $60.0M advance to Phoenix.

Member Cities
PTF Sales Tax Revenue
PTF Bond Revenue
Federal SOGR
Federal CMAQ
Federal New Starts

$0.0

$20.0

VMR FY17 Adopted Budget Executive Summary

$40.0

$60.0

$80.0

Valley Metro | 3

FY17

FY16

VMR Capital Uses of Funds FY17 vs FY16

Systemwide Improvements
CNPAs - Mesa Extension
Non-Prior Rights Utilities…
South Central Capital Project
50th Street LRT Station
Tempe Streetcar Extension
Gilbert Road Capital Project

Central Mesa Extension
Northwest Extension
$0.0

$10.0

VMR FY17 Adopted Budget Executive Summary

$20.0

$30.0

$40.0

$50.0

$60.0

Valley Metro | 4

FY17 Baseline Service and Capital Plan Assumptions
Passenger Services
Rail Operations Service Frequency Plan
 Weekday trains will run with two to three cars at 12-minute intervals during peak hours
and 15 to 20-minute intervals off peak.
 Weekends do not require peak service trains and will operate with one or two cars at
15 to 20-minute headways.
Ridership and Fare Revenue
 Total ridership is forecasted at 17.3M passengers for FY17 with fare revenues
generating $15.9M
 The estimate includes an increase of an estimated 2.7M rides due to the Central Mesa
and Northwest Extensions, which are commencing revenue service in FY16.
 Over the course of the FY17, average weekday boardings are forecasted at 52,000
while Saturday and Sunday average ridership are forecasted at 43,000 and 30,000 per
day respectively.
Project Development
High-Capacity Transit Projects
 The Regional Transportation Plan (RTP), adopted by the Maricopa Association of
Governments (MAG) and financed under the one-half cent sales tax extension, identifies
66 miles of light rail/high-capacity transit corridors to be implemented by 2034.
 The 1.9-mile Gilbert Road Extension, to serve east Mesa, is in final design.
 The 3-mile Tempe Streetcar project progresses into final design.
 City of Phoenix voters approved Proposition 104 (Transportation 2050), a 35-year
transportation plan that would expedite several miles of light rail/high-capacity transit and
add additional corridors to the regional high-capacity transit system. Under the plan and
timing as shown on table below, additional service areas are identified:
o 5-mile South Central Extension
o 1.7-mile NW Extension Phase II
o 5-mile West Phoenix/Central Glendale transit corridor
o 1.5-mile Capitol/I-10 West Extension (Phase I)
o 9.5-mile Capitol/I-10 West Extension (Phase II)
o 12-mile Northeast Phoenix transit corridor

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 5

The timing of the projects in the program is depicted on the following schedule shown below:

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 6

FY17 Goals and Initiatives
In January 2015, the Valley Metro RPTA and Valley Metro Rail Boards adopted the Valley Metro
Strategic Plan for FY16 through FY20. The Strategic Plan provides clear definition of the purpose
of the organization and establishes realistic goals and objectives for a five-year period. This plan
ensures the most effective use of the organization’s resources by focusing those resources on
key priorities. Below are the five, overarching goals identified in the Strategic Plan:
1.
2.
3.
4.
5.

Increase customer focus
Advance performance based operation
Grow transit ridership
Focus on economic development, regional competitiveness and financial resources
Advance the value of transit

With the initiation of the FY17 budget process, staff has developed a number of initiatives that
align with the Strategic Plan and will be incorporated into the FY17 budget, as summarized below.

1. Increase Customer Focus:

FY17 Initiatives

Improve Customer Satisfaction
Develop smart card fare program/mobile
Integration of greater, more effective technology, improving
passenger information systems with real time data, such as the ticketing
website, facility signage and a Ridekick mobile application, and
implementation of an enhanced fare media solution, including
smart cards and mobile ticketing.
Renovate website & mobile site
Evaluate and enhance passenger safety and security.

VMR FY17 Adopted Budget Executive Summary

Increasing rail fare inspection and security
resources

Valley Metro FY17
Investment
$ Thousands
VMR
Total
Investment
Investment

$

430.0 $

860.0

$

100.0 $

300.0

$

425.0 $

425.0

Valley Metro | 7

2. Advance Performance Based Operation:

FY17 Initiatives

Valley Metro FY17
Investment
$ Thousands
VMR
Total
Investment
Investment

Operate an effective, reliable, high performing transit
system.

Develop an asset management plan for
Valley Metro in conjunction with member
agencies

$

75.0 $

100.0

Enhance Valley Metro’s role in sustainability and the
environment.

Implement the Sustainability Action Plan
with focus of updating of design standards
and urban design guidelines.

$

229.0 $

229.0

$

3,307.0 $

3,307.0

$

20.0 $

40.0

$

94.5 $

189.0

Deliver projects and services on-time/on-budget.
Advance projects and services in the current regional
transportation plan and Transit Life Cycle program.

Maintain a culture to recruit and retain a qualified and
diverse workforce.

Expediting S Central Corridor: $2,109,000
Expediting Northwest Phase II: $907,000
Advancing Northeast Corridor feasibility
study: $291,000

Develop a program to recruit and retain a
qualified and diverse workforce. Consultant
engagement to for comprehensive training
assessment and new employee orientation
programs

Maintain strong fiscal controls to support Valley Metro’s Establishing Internal Audit Department with
long-term sustainability.
dual reporting responsibility to the Board of
Directors and VM Executive Office

With the recent
passage of
Transportation 2050 in
the City of Phoenix, rail
service to North, South
and West Phoenix
neighborhoods are
being moved forward.
Planned completion
dates are shown.

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 8

FY17 Goals and Initiatives
Valley Metro FY17
Investment
$ Thousands
3. Grow Transit Ridership:

Improve connectivity of transit services for greater
effectiveness.

Communicate availability, attractiveness and safety of
transit service
4. Focus on Economic Development, Regional
Competitiveness and Financial Resources:

Work with local communities to leverage transit
oriented development (TOD) to increase investment in
transit

5. Advance the Value of Transit:

Develop and implement a communications plan to
inform and educate the public on the value of transit

VMR FY17 Adopted Budget Executive Summary

FY17 Initiatives

Analyze the region’s transit system to optimize
connectivity between transit services, including
new LRT extensions
- Fiesta Downtown Chandler Study: $250,000
- West Glendale Feasibility Study: $657,000

Conduct discretionary ridership campaigns to
continue to attract riders

FY17 Initiatives

Research and monitor and report regional trends
regarding TOD implementation and successes
- Support to TOD working group and PNR
utilization study: $100,000

FY17 Initiatives

Continue media campaign to raise greater
awareness of the value of transit

VMR
Investment

Total
Investment

$

907.0 $

907.0

$

105.0 $

210.0

VMR
Investment

$

100.0 $

VMR
Investment

$

Total
Investment

100.0

Total
Investment

63.0 $

126.0

Valley Metro | 9

Agency Staff Overview
Valley Metro RPTA and Valley Metro Rail budgets are developed with a unified staff plan, with
department managers planning the level of effort required to meet the bus and rail activities. For
FY17, there are 310 employees budgeted in the integrated agency; 131 FTE’s are budgeted to
RPTA activities; 179 to VMR activities. Staffing levels are reviewed on an annual basis with zerobase analysis of level of effort requirements to fulfill work requirements in the five-year period
commencing with the beginning of the new fiscal year. Salary and fringe benefit compensation
levels are measured against comparable regional agencies, member cities and peer transit
agencies located in the western U.S.
FY17 Compensation and Fringe Benefit Assumptions
Total compensation budget is based on a 2.5% increase. For staff salary changes, merit
increases are based on employee performance. Division level control is in place to contain total
salary and fringe costs within budget.
Agency health care costs will increase. Program design adjustments are in place to hold total
agency fringe benefit cost increases to within 3% of FY16 levels.
Staffing cost analysis
FY 17

FY 16

change

pct change

$ million
Salaries

19.6

18.8

0.8

4%

Fringe Benefits
Total Salary and Fringe Benefits

7.6
27.2

7.5
26.3

0.1
0.9

2%
3%

Analysis of changes
Base Compensation FY16
Base increase
Position Changes
New Base Compensation FY17

Salary

Fringe

18.8
0.5
0.3
19.6

7.5
0.1
7.6

Change FY17 Adopted Budget vs. FY16 Adopted Budget

Total
26.3
0.5
0.4
27.2
0.9

$ million

Five new agency positions are planned to improve agency internal controls and strengthen fixed
route bus and Accessible transit contractor performance, as noted below.
Title

Division

Scope of Work

Manager, Internal Audit Chief Executive Office
Internal Audit Specialist Chief Executive Office

Agency Internal Controls with primary reporting to Board
Internal Control testing and compliance

Program Representative Planning & Accessible Transit

Support East Valley, West Valley, and regional paratransit

Scheduler
Program Coordinator

Fixed Route Bus schedule analysis and management
Fixed Route Bus contractor performance management

Operations and Maintenance - RPTA
Operations and Maintenance - RPTA

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 10

FY17 Adopted Budget Financial Summary
In the table below, detailed revenues and expenses are shown with comparisons to the prior
year’s amended budget. The “Note” column (on the far right side) indicates reference to
explanations which are provided in the following table.

Uses of Funds

Budget
Analysis
Note #

FY16
Amended

FY17
Adopted

39,415
11,541
909
51,864

44,890
10,967
1,081
56,938

5,475
(574)
172
5,074

Capital Projects:
Northwest Extension
Central Mesa Extension
Gilbert Road Extension
Tempe Streetcar Extension
50th Street LRT Station
South Central Extension
Non-Prior Rights Utilities Relocations
CNPAs - Mesa Extension
Systemwide Improvements

49,178
15,549
11,516
1,198
747
1,467
321
3,497

3,203
4,673
57,984
9,476
5,780
39,417
3,185
16,305

(45,975)
(10,876)
46,468
8,278
5,033
39,417
1,718
(321)
12,808

Subtotal Capital before Debt Service

83,472

140,023

56,551

135,336

196,961

61,625

Operating Activities:
Revenue Operations
Future Project Development
Agency Operating Budget

Total Uses of Funds

Note

($,000)

Change

1
2

3
4
5
6
7
8
9
10
11

Budget Analysis - Uses of Funds

1

FY17 rail operating costs increase by 14% over FY16 levels. In FY17, 26 miles of service will be
operated for the full year. Maintenance costs rise with scheduled preventive maintenance
activities to maintain the system in a state of good repair, and increased fare inspection and
security resources are being deployed.

2

Future Project Development costs are down by $0.6M due to decrease in planning activities
related to future corridors and system planning; primarily due to completion of project development
for the Tempe Streetcar capital project.

3

Northwest Extension Phase I base project costs are down by $46.0M due to completion of the
construction portion of the project and commencement of passenger operations in March of 2016.

4

Central Mesa Extension base project costs are down by $10.9M. Remaining activity in FY17 is
related to the train signal control system upgrade.

5

Gilbert Road LRT Extension project construction to commence in FY17, along with the purchase
of Light Rail Vehicles. Annual expenditures forecasted at $58.0M.

6

Tempe Streetcar design and pre-construction activities commence.
forecasted at $9.5M.

VMR FY17 Adopted Budget Executive Summary

Annual expenditures

Valley Metro | 11

Note

Budget Analysis - Uses of Funds

7

50th Street LRT Station preliminary design and ROW acquisition work continues with
construction to commence in FY17.

8

South Central Capital Project pre-construction activities to begin in FY17. Annual design and
project management expenditures forecasted at $39.4M.

9

Non-prior rights utilities relocations up by $1.7M due to increased activity for construction projects.
FY17 amounts include Tempe Streetcar ($0.5M), 50th Street LRT Station ($0.6M), and Gilbert
Road Extension ($2.0M).
No FY17 City of Mesa funding for Central Mesa Extension Concurrent Non-Project Activities
(CNPA).

10
11

Systemwide Improvements include the purchase of 8 light rail vehicles for future extensions
($6.0M), LRV overhauls ($4.7M), improvements for station lighting and railing, security camera
component upgrades, ticket vending machine upgrades and other activities ($5.6M).

Sources of Funds

Operating Activities:
Fare Revenue
Advertising Revenue
Federal 5307 PM
Federal CMAQ
TIGER
Member Cities
MAG / RPTA (RARF)
PTF Sales Tax Revenue
Capital Projects:
FTA - Section 5309
Federal CMAQ
Federal 5337 SOGR
Member Cities
Less Repayment Phoenix NW Advance
PTF Bond Revenue
PTF Sales Tax Revenue
Total Sources of Funds

VMR FY17 Adopted Budget Executive Summary

($,000)
Budget
Analysis
Note #

FY16
Amended

FY17
Adopted

14,019
876
1,143
1,451
1,488
26,324
1,000
5,564
51,864

15,909
1,100
1,197
175
31,139
1,000
6,419
56,938

1,890
224
54
(1,451)
(1,313)
4,815
855
5,074

12

7,084
14,491
341
1,665
59,891
83,472

73,232
341
49,237
(60,000)
43,099
34,113
140,023

(7,084)
58,741
47,572
(60,000)
43,099
(25,778)
56,551

17
18

135,336

196,961

61,625

Change

13
14
15
16

19
20
21
22

Valley Metro | 12

Note

Budget Analysis - Sources of Funds

12

Fare revenue increases from $14.0M to $15.9M; assumes 17.3 million rides with an average fare
forecasted to be $0.92 per ride in FY17. Ridership grows with addition of 6 miles of service for full
12 months. Average fare increase due to fare pricing adjustment anticipated in late 2017, pending
Board approval.

13

With Tempe Streetcar project moving into capital phase, no Federal CMAQ project development
funds programmed for FY17.

14

Project Development Federal TIGER funds down by $1.3M due to South Central entering into preconstruction activity in FY17, which will be funded by City of Phoenix within the capital project
budget.

15

Member City contributions for Operations are up from $26.3M to $31.1M in FY17 due to operating
12 months of the base service along with the Central Mesa and Northwest Extensions ($3.3M net
of revenues), an additional $1.3M of future project development activities, primarily related to South
Central Corridor project in Phoenix, and $0.2M increase for agency operations.

16

PTF Sales Tax revenue funding requirements for project development are up by $0.9M, primarily
related to Northwest Phase II, West Phoenix-Central Glendale and Phoenix I-10 Capitol projects.

17

No Federal New Starts funds programmed for FY17. Activity in FY16 was to complete the Central
Mesa Extension project. New Starts funds for the Tempe Streetcar are anticipated in FY18.

18

Federal CMAQ increasing by $58.7M due to increasing funding requirements for construction
activity. FY17 programmed activity includes Central Mesa Extension SCADA ($3.7M), Gilbert
Road ($54.7M), Tempe Streetcar ($7.6M), Systemwide Improvements ($4.9M), and Non Prior
Rights Utilities ($2.3M)

19

Member City contributions for Capital Projects total $49.2M for FY17. Project amounts for FY17
include South Central funding by Phoenix ($39.4M), 50th Street Station funding by Phoenix
($5.8M), Gilbert Road Extension funding by Mesa ($3.3M), and Non Prior Rights Utilities ($0.7M).

20

In June of 2017, the City of Phoenix will be repaid $60.0M in advances the City made in FY 13 and
FY 14 to accelerate completion of the NW Extension. Funding is from Public Transportation
Funds.

21

It is anticipated that RPTA will issue $60.0M series 2017 bonds to support rail capital projects in
the spring of 2017. Consumption of bond proceeds is estimated at $43.1M in FY17.

22

PTF Sales Tax funding will be reduced from $59.9M to $34.1M primarily due to construction
activity winding down for Northwest and Central Mesa Extensions, offset by increased funding
requirements for Tempe Streetcar and Systemwide Improvements.

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 13

FY17 – FY21 ADOPTED FIVE-YEAR OPERATING FORECAST AND CAPITAL PROGRAM
The Valley Metro Rail Five-Year Operating and Capital Program identifies anticipated operating
costs, capital projects and costs and the associated funding sources. The FY17 – FY21 FiveYear Operating and Capital Program is submitted to the Board of Directors along with the FY17
Operating and Capital Budget.
Five-Year Operating Assumptions




1.9-mile Gilbert Road Extension opens revenue service in November 2018
50th Street Station opens revenue service in May 2019
3-mile Tempe Streetcar opens revenue service in December 2019

The Operations & Maintenance (O&M) costs are projected based on current cost history with a
general inflation escalation factor of 3.0%. Anticipated structural changes to staffing, contract and
materials expenses are forecasted to meet customer demand and maintain the system in a state
of good repair.
System-wide and specific light rail corridor project development activities are included in the
operating budget. Once a project alignment has been approved by local and regional policy
makers and federal environmental approvals are secured the project costs are recorded in the
capital program.
Agency Operating costs include those costs not directly allocable to capital projects or to
passenger operations. Included are costs of annual audit, federal and state legislative
representation and memberships to transportation related organizations.
Fares
Effective March 2013, the current Regional Fare Policy is as follows:

*Reduced Fare – Youth (6 – 18), seniors (age 65 and over) and people with disabilities
In accordance with the regional fare policy to achieve a 25% fare recovery ratio, fare discount
structure changes are projected for FY17 to increase average fare by 5%. Within the 5 year plan,
a base fare increase is anticipated in FY20.

VMR FY17 Adopted Budget Executive Summary

Valley Metro | 14

FY17 – FY21 Operating Uses and Sources of Funds
Operating costs and funding planned for the FY17 – FY21 planning horizon are summarized as
follows (in year of expenditure ($, 000)
2017
USES OF FUNDS
Operations and Maintenance
$
Project Development Planning Support
Agency Operating Budget
Total Uses
SOURCES OF FUNDS
LRT Fares:
Phoenix
Tempe
Mesa
Subtotal Fares
Other Revenues:
Phoenix
Tempe
Mesa
Glendale
Chandler
Advertising
Subtotal Local Revenues
Capital Planning Funds - PTF
MAG
RPTA
TIGER
Federal 5307 PM
CMAQ
Total Sources

$

44,890
10,967
1,081
56,938

2018
$

46,484
11,532
1,115
59,131

2019
$

49,390
7,087
1,148
57,625

2020
$

53,940
6,953
1,183
62,076

2021
$

TOTAL

56,996
7,474
1,219
65,689

$ 251,700
44,013
5,746
301,459

9,828
3,751
2,331
15,909

11,028
3,677
2,551
17,257

11,264
3,756
3,463
18,482

11,945
5,214
4,161
21,320

11,847
6,139
4,126
22,112

55,911
22,537
16,631
95,079

20,318
5,699
4,175
676
271
1,100
32,239

17,599
6,015
4,206
387
31
1,133
29,370

17,815
6,092
5,563
32
32
1,167
30,700

17,300
7,747
6,111
30
30
1,202
32,419

17,786
9,333
6,271
30
30
1,238
34,691

90,818
34,886
26,326
1,155
393
5,841
159,420

6,417

8,536

6,087

5,353

5,274

31,667

500
500
175
1,197
56,938

500
500
1,329
1,640
59,131

500
500
1,356
57,625

500
500
1,383
600
62,076

500
500
1,412
1,200
65,689

2,500
2,500
175
6,679
3,440
$ 301,459

VMR FY17 Adopted Budget Executive Summary

$

$

$

$

Valley Metro | 15

FY17 – FY21 Capital Program
Valley Metro Rail currently has a number of transit projects in various stages of planning, design
or construction. The sources and overall uses of funds associated with these projects and
activities are projected to be $1.2B through the five-year planning horizon. These uses and
sources of funds are summarized as follows:

2017
USES OF FUNDS
Northwest Extension Phase 1
Central Mesa
Gilbert Rd
Tempe Streetcar
South Central
50th Street Station
Northwest Extension Phase 2
Capitol I-10 West
West Phoenix Central Glendale
Subtotal HCT Corridors
Non-Prior Rights Utilities Relocation
Systemwide Improvements
Total Capital Costs

SOURCES OF FUNDS
Phoenix
Less Repayment Phoenix NW Advance
Tempe
Mesa
Glendale
Subtotal
PTF Sales Tax Revenue (Allocation 43.24%)
PTF (Reserve) / Bond Borrowing
PTF Regional Revenue - Demand

$

3,203
4,673
57,984
9,476
39,417
5,780
120,533

$

3,926
56,653
48,872
124,687
8,634
3,055
5,089
250,916

2019
$

14,153
73,296
98,336
3,275
29,032
5,089
223,181

2020
$

1,309
30,035
89,080
66,415
11,557
198,396

$

2021

FY 2017-21

68,309
69,180
42,580
102,186
282,255

$

3,203
8,599
130,099
161,679
419,829
17,689
167,682
64,315
102,186
1,075,281

3,185
16,305
$ 140,023

8,174
22,438
$ 281,528

6,274
22,000
$ 251,455

2,744
2,126
$ 203,266

3,339
1,480
$ 287,074

23,716
64,349
$ 1,163,346

$

$ 138,456
6,500
164
145,120

$ 128,901
6,500
135,401

$ 107,327
107,327

$ 107,201
14,722
121,923

$ 527,703
(60,000)
13,000
3,587
14,722
499,012

45,818
(60,000)
3,423
(10,759)
34,061
43,086
77,147

27,889
(1,370)
26,519

33,897
5,978
39,875

38,130
(9,481)
28,649

41,971
14,547
56,518

175,949
52,759
228,708

-

55,430

14,253

1,309

-

70,992

20,262
34,197
54,459
$ 281,528

41,907
20,019
61,926
$ 251,455

56,736
9,246
65,982
$ 203,266

TPAN
Federal Revenues:
FTA
CMAQ
Subtotal Federal
Total Revenues

2018

341
73,294
73,635
$ 140,023

64,520
44,113
108,633
$ 287,074

183,763
180,869
364,632
$1,163,346

Funding is derived from three primary sources: Regional sales taxes (PTF), Transportation
Project Advance Notes (TPAN) and federal grants. The TPAN notes are issued by the City of
Mesa, with a combination of federal and local revenues. (Note: Negative sources of funds reflect
reimbursements to City of Phoenix for the Northwest Extension advance (source of funding is
PTF.)

VMR FY17 Adopted Budget Executive Summary

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