Strategic Financial Management Plan


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Resolution 14-07-37 Board Memorandum Attachment A Purpose of TriMet’s Strategic Financial Plan Strategic financial planning sets the course to grow transit and ensure a healthy, sustainable future TriMet bus, light rail, commuter rail, streetcar and Lift service offers flexible and affordable service for people in the Portland region to get from their homes to jobs, shops, schools and recreation.. The outcome of this effort is a set of Financial Guidelines that ensure TriMet’s annual budgeting and long-term decision-making follows transit industry fiscal best practices and relies on sound financial policies that: • Are in alignment with TriMet’s long-term financial forecast • Address long-range financial issues • Use realistic revenue and expenditure assumptions • Realize sustainable cash flows • Maintain consistent service levels year-to-year in line with resources • Protect and maintain assets It is critical that these Guidelines are tracked both in the short and long-term against the Financial Forecast.. Strategic policies, principles guide TriMet financial decisions TriMet uses the following strategic policies to guide its financial decision making: 1) Fiscal Policy 2) Unrestricted Fund Balance and Contingency Policy 3) Debt Management Policy 4) Fare Policy 5) Capital Asset Management 6) Pension Funding Plans 1 Federal Formula Funds are operating grants that come to TriMet from the Federal Transit Administration (FTA).. • Financial: strive for a sustainable balance of growth in ridership and passenger revenue o Pricing strategy keeps pace with costs of service o Encourage pre-payment of fares for operational efficiency and efficient fare enforcement o Leverage electronic fare collection to reduce costs and improve fare recovery o Pursue industry standards in pricing for reduced fare categories • Customer experience: improve customer experience through electronic fare collection, other emerging technologies, whi


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