Brenden Morgan, Senior Manager, Debt & Investments
Regional Transportation District
Regional Transportation District
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The Regional Transportation District (RTD)'s Board of Directors unanimously adopted a $1.2 billion budget in 2025 that will result in increased levels of service, continue the agency’s hiring efforts for key frontline positions, and sustain preventative maintenance projects that launched in 2024. A comprehensive breakdown of the agency’s fiscal year 2025 budget, which starts Jan. 1 and aligns with the calendar year, is available at rtd-denver.com/budget.
The 2025 budget will continue RTD’s pursuit of its Strategic Initiatives of People Power, Back to Basics, and Welcoming Transit Environment, as well as introduce Customer and Community Connections. These four Strategic Initiatives are tactical in nature and interwoven into individual employee goals to support the agency’s overall 2021-2026 Strategic Plan. The balanced budget was developed to align with the agency’s strategic plan.
"Over the last year, RTD has redoubled its efforts to maintain its assets in a state of good repair, enhanced employee recruitment and retention initiatives, and made significant progress in creating a welcoming transit environment,” said Debra A. Johnson, General Manager and CEO. “This budget allows the agency to build on that momentum in the year ahead and respond to the ever-changing transit needs of customers in the Denver metro area.”
Sales and use tax revenue, which comprises more than 70% of RTD’s total budget, is expected to grow 4.2% in 2025. Fare revenue is also projected to slightly increase to align with ridership projections, as well as account for the agency’s Zero Fare for Youth program. Fares will continue to provide approximately 5% of RTD’s total revenue, and the remaining 25% of the budget comes from grants and other income sources. Grant revenue appears lower in RTD’s 2025 budget due to the one-time $150 million pass-through grant received in 2024 for the East Colfax Bus Rapid Transit Project.
RTD conservatively budgets for projected revenues in accordance with its fiscal policy and only plans for revenue that is reasonably certain to be collected. Overall, the agency’s revenue is anticipated to keep pace with increases in agency expenditures in 2025. The revenues and expenditures also maintain adequate reserves in support of the agency’s Strategic Priority of Financial Success.
The agency’s operating expense budget in 2025 reflects year-over-year increases in salaries, wages and benefits, materials and supplies, and purchased transportation. Salaries and wages are to increase next year as RTD continues its efforts to improve hiring and retention, particularly for vacant frontline positions, as well as the expansion of the Transit Police Department. In the 2025 budget, wages and benefits are to account for 42% of the agency’s expenses and reflect 3,637 budgeted positions.
Purchased transportation is also budgeted to increase next year in accordance with bus fixed route contractual increases and RTD’s concessionaire agreement for commuter rail services. Contractual increases in purchased transportation account for inflation and periodic maintenance costs. The periodic increases in payments for purchased transportation will continue through 2027 before being reduced in subsequent years.
Financially, RTD continues to perform well. In August, the Colorado Office of the State Auditor (OSA) completed a financial performance audit of RTD, which resulted in the agency meeting all nine of the state’s financial health measurements with no warning signs. During the 2024 fiscal year, RTD’s senior bond credit ratings were also raised by S&P Global to the highest rating of AAA. RTD continues to cash-fund all purchases without the need to borrow funding, and the agency is reducing its debt portfolio exposure through refinancings and the efficient use of financial resources.
Other notable highlights from the 2024 fiscal year include:
RTD GM/CEO Debra A. Johnson and Board Chair and Director of District I Erik Davidson share statements about election results of Measure 7A
DENVER (Nov. 6, 2024) –– The Regional Transportation District (RTD) is providing the following two statements in response to the local election results of Ballot Issue 7A.
“Approval of this ballot measure reaffirms the region’s commitment to public transit. It allows RTD to continue focusing on the Denver metro area’s current and future mobility needs and avoids potential negative impacts to RTD’s current revenue sources.” Debra A. Johnson, General Manager and CEO
“I am grateful to the voters for the confidence they have placed in RTD and for seeing the high value it provides to millions of customers. Approval of this ballot measure means RTD can maintain its current operations and continue to deliver the best service possible.” Erik Davidson, Director of District I and Board Chair
Please click the below link to access RTD's general news section on their official website.
New site will provide improved navigation, enhanced support and accessibility for users
DENVER (Nov. 20,2023) — The Regional Transportation District (RTD) launched a fully redesigned website that features improved navigation, enhance online accessibility, updated photography and refreshed content. The new website was designed after feedback sessions with members of the RTD Board of Directors, staff, customers, stakeholders and the community to identify needs and explore opportunities.
The site has better adaptability for mobile devices, which constitutes approximately 80% of RTD’s overall web traffic and is available in English, Spanish and Chinese. Denver metro area’s next most widely used languages, including Vietnamese and Russian, will roll out in the first quarter of 2024.
RTD’s new website was built using Web Content Accessibility Guidelines (WCAG) 2.2 and AA Level. The website also incorporates a third-party tool called accessiBe to provide even more support for users who need enhanced accessibility assistance. accessiBe is important because it allows users to optimize content for screen readers, remove flashes in support of seizure-prone individuals, and magnify and scale text, among dozens of other related features.
In addition to internal meetings and a robust sampling of customers through an online research tool, feedback sessions were also held with the RTD Citizens Advisory Committee and the Advisory Committee for People with Disabilities. The process to solicit and collect feedback supported the agency’s desire to create a website that met the needs of customers, stakeholders, employees and community members.
S&P Global Ratings upgrades RTD’s FasTracks bond rating to highest possible of AAA
S&P Global Ratings (previously Standard & Poor’s) has upgraded its RTD FasTracks bonds to AAA from AA+ and gave the bonds a stable outlook, reflecting its view that RTD’s financial condition is strong. The AAA credit-worthiness rank is the highest rating issued by the S&P Global Ratings, and it means RTD has an extremely strong capacity to meet all financial commitments.
In July, the RTD Board of Directors approved staff to refund and refinance FasTracks debt, which strengthens the agency’s standing as supported in a statement made in a news release by S&P Global Ratings on Aug. 10.
S&P Global Ratings recognized the fiscal decisions the RTD Board and staff have made to stabilize RTD’s financial position as it moved out of the pandemic.
“The AAA rating highlights both the strong financial position and prudent financial management of the agency’s resources,” said RTD Chief Financial Officer Doug MacLeod. “The rating change on the FasTracks bonds also increases the probability that RTD will be able to reduce borrowing costs with any future FasTracks bond refinancing activity.”
RTD is scheduled to close on the refinanced FasTracks bonds in September. The Invitation to Tender Bonds and Preliminary Official Statement for the expected refunding can be found here: https://emma.msrb.org/P11732686.pdf.
RTD has entered into a contract with WSP USA, Inc to evaluate the feasibility of transitioning the District’s facilities and fixed-route fleet to low/no-emission operations. The holistic plan, which is expected to be finalized in late 2024, will outline recommendations for facilities, fixed-route services by fleet type, a replacement schedule, and overall cost projections and proposed timelines.
“RTD remains focused on transitioning to a sustainable energy future,” said Debra A. Johnson, RTD General Manager and Chief Executive Officer. “The first step in that transition is to understand and consider all aspects of RTD’s system, including its facilities, infrastructure, and transit service delivery model. This plan will guide RTD’s future decisions as the agency transitions to low/no emissions.”
On April 25, 2023, the RTD Board authorized the General Manager and CEO to enter into a contract for consulting services to develop a holistic Low/No Emission Facilities and Fleet Transition Plan. The agency subsequently released a solicitation on May 23 to select a consultant to lead the planning process.
This week, RTD announced that WSP USA, Inc had been selected among five qualified firms that submitted proposals. WSP’s subject-matter expertise in this area will ensure RTD’s transition plan is not only comprehensive, but also specific to the agency’s needs and operating environment, and it aligns with the federal Bipartisan Infrastructure Law. WSP USA, Inc, a New York-based consultancy firm with offices in Colorado, will immediately begin work on developing the transition plan. In conducting their work, WSP has committed to a 25% disadvantaged business enterprise participation goal, which further aligns with the agency’s commitment to the Strategic Priority of Community Value. The anticipated timeline for completing the full plan is the fourth quarter of 2024.
“This is a monumental and necessary step forward for RTD and the entire Denver metro region,” Johnson said. “RTD is not only planning for tomorrow, but for the tomorrows to come.”
RTD’s first steps toward a low/no-emission bus fleet transition were taken in 2000 with the deployment of hybrid-electric buses using compressed natural gas along the 16th Street Mall. In 2008, a subfleet of hybrid diesel-electric fixed-route buses was introduced to the system. Eventually, all previously used MallRide buses were replaced in 2017 by a fleet of 36 zero-emission battery electric buses. The agency has garnered operational knowledge through the deployment and maintenance of its low- and no-emission vehicles. This knowledge gained over the past two decades will support the development and eventual implementation of the comprehensive transition plan.
Today, the RTD Board of Directors approved a new fare structure, policies and programs that will provide lower costs for adult customers and one year of no-cost transit for youth throughout the district. The fare changes were developed as part of RTD’s systemwide fare study and equity analysis, a yearlong review aimed at creating a fare structure that is more equitable, affordable and simple.
Approved changes to the fare structure include:
“With the Board of Directors’ approval of this new fare structure, RTD is removing barriers to transit access and reconciling longstanding concerns from customers and the community regarding the high cost and complexity of fares currently in place,” RTD General Manager and CEO Debra A. Johnson said. “I am grateful for the thoughtful, comprehensive and purposeful work by staff, and I extend my thanks to the thousands of people across the region who shared their thoughts and ideas over the course of this important project.”
Now through August, customers can use all RTD services at no cost as part of the Zero Fare for Better Air initiative. In September, the yearlong Zero Fare for Youth pilot will begin, providing no-cost transit for youth to coincide with the start of the school year. All other changes to the fare structure will be implemented in the first quarter of 2024.