PennDot Presentation Transit Agency Status Wednesday, November 2, 2011

1. PennDot PresentationTransit Agency StatusWednesday, November 2, 2011

2. SEPTA Attendees • Joseph Casey, General Manager • Phone: (215) 580-7070, Fax: (215) 580-3636, Email: jcasey@septa.org • Richard Burnfield, Chief Financial Officer/Treasurer • Phone: (215) 580-7411, Fax: (215) 580-3636, Email: rburnfield@septa.org • Thomas McFadden, Assistant Treasurer • Phone: (215) 580-8026, Fax: (215) 580-7212, Email: tmcfadden@septa.org • Frank Gormley, Director Operating Budget • Phone: (215) 580-8112, Fax: (215) 580-7231, Email: fgormley@septa.org • Catherine Popp-McDonough, Director Capital Budget • Phone: (215) 580-7374, Fax: (215) 580-7233, Email: cpopp-mcdono@septa.org • Charles Kryder, Senior Accountant • Phone: (215) 580-7891, Fax: (215) 580-7436, Email: ckryder@septa.org

3. Agenda • SEPTA Service Profile • Strategic Business Plan • Fiscal Year 2012 Operating Budget • Fiscal Year 2012 Capital Budget • Current Financial Position • Organizational Structure • Labor Contracts • Major Contract Provisions • Healthcare • Pension Overview • Diesel Fuel • Passenger Revenue • Major Factors Producing Cost Increases • Cost Savings Initiatives • Funding Statistics/Trends • Capital Status Review

4. 1. SEPTA Service Profile

5. SEPTA Service Profile • Nation’s sixth-largest public transportation system • Largest public transportation system in Pennsylvania • Instrumentality of the Commonwealth of Pennsylvania • Service area covers about 2,200 square miles, including Bucks, Chester, Delaware, Montgomery and Philadelphia counties • Population of 4 million residents

6. SEPTA Service Profile • SEPTA serves 334 million annual passenger trips providing 98 million vehicle miles of service with 2,750 vehicles • Operates comprehensive transit network through its four divisions with 144 fixed routes • City Transit Division primarily serving Philadelphia with 74 bus routes, 6 light rail, 3 trackless trolley, the Broad Street Subway and Market Frankford Subway-Elevated lines • Victory Division provides service within Chester, Delaware and Montgomery counties with 20 bus routes, 2 light rail lines and the Norristown High Speed Line • Frontier Division with 23 bus routes serving Bucks, Chester and Montgomery counties • Regional Rail Division consisting of an integrated commuter rail system of 13 lines serving Philadelphia, the four counties and extending to Trenton, NJ and Newark, DE

7. SEPTA Service Profile • Owns and maintains 280 stations, 367 bridges, 393 miles of track and 78 substations • Provides 28,695 parking spaces • Serves a total of 13,630 bus, trolley, subway-elevated and railroad stops throughout the region

8. SEPTA Service Profile

9. SEPTA Multi-Modal Fleet of 2,750 Vehicles Commuter Rail Light Rail Broad Street Subway Hybrid Bus Market-FrankfordSub/El HistoricStreetcar

10. 2. FY 2010-2014Strategic Business Plan

11. FY 2010-2014 Strategic Business Plan • SEPTA Board adopted the Strategic Business Plan on March 26, 2009 • Seven Strategic Objectives • Customer Service • Sustainability • Ridership Growth • Safety & Security • New Technologies • Rebuilding the System • Human Capital Development

12. FY 2010-2014 Strategic Business Plan

13. 3. Fiscal Year 2012 Operating Budget

14. SEPTA FY 2012 Operating Budget • Required by State law to adopt a balanced budget • Operating funds come from two sources: • 59% from federal, state and local subsidies • 41% from revenue (primarily farebox) • Balanced budgets for twelve consecutive years

15. SEPTA FY 2012 Operating Budget

16. SEPTA FY 2012 Operating Budget Total Expenses: $1.230 billion

17. SEPTA FY 2012 Operating Budget Total Operating Subsidies: $737 million

18. SEPTA FY 2012 Operating Budget Total Operating Revenue: $493 million

19. 4. Fiscal Year 2012 Capital Budget

20. SEPTA FY 2012 Capital Budget • Guided by strategic business plan objectives