FY 2025 Budget

Over the last year, the Regional Transportation District has redoubled 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.

The Fiscal Year 2025 Budget represents the agency’s financial plan for the forthcoming year. This budget aligns with the agency’s 2021-2026 Strategic Plan, which outlines an ongoing commitment to the Strategic Priorities of Community Value, Customer Excellence, Employee Ownership, and Financial Success. With this commitment also comes a continued emphasis on the strategic initiatives of Back to Basics, People Power, Welcoming Transit Environment, and the newly introduced initiative of Customer and Community Connections.

Through the efforts of RTD’s Finance team, agency executives, senior managers, and subject-matter experts, these four initiatives are reflected throughout this budget and interwoven into work plans across all departments and divisions. By focusing on these important factors, RTD will continue to make meaningful progress toward its established success outcomes. RTD also continues to adapt to the ever-evolving transit needs of customers and communities throughout the service area.

In 2024, RTD celebrated many successes and first-time accomplishments for the agency. While the list of achievements is long, I would be remiss if I did not specifically highlight a few that have made the lives of RTD’s employees and customers better.

• In January, RTD implemented a simpler, more equitable, and more affordable fare structure. Customers now pay less for fares in all categories, including eligible discounts.
• Between May and August, RTD completed the first phase of its Downtown Rail Reconstruction Project. The project reconstructed 30-year-oldrail infrastructure along the agency’s original light rail alignment. Crews completed weeks ahead of schedule, and subsequent phases of the project are slated for 2025.
• In September, RTD’s one-year Zero Fare for Youth pilot program became permanent for customers 19 and under. The Colorado legislature appropriated funding through December 2025 to support the zero-fare youth program.
• Over the last year, RTD made significant progress on its comprehensive Facilities and Fleet Transition Plan. The plan is assessing the agency’s operations to determine a path forward for lowering emissions. The plan is on track to be completed by mid-December 2024.

Of course, none of these accomplishments—and many more—would be possible without the efforts of the agency’s steadfast and committed employees who work tirelessly every day. I acknowledge and appreciate their collaborative efforts, as well as the contributions of the Board of Directors and the agency’s labor and contract partners.

I also extend my sincere thanks and appreciation to the many employees who directly contributed to the preparation of RTD’s FY 2025 Budget. I specifically want to acknowledge Doug MacLeod, Chief Financial Officer; Todd Nikkel, Senior Manager, Budget; Heidi Wagner, Senior Manager, Finance; the agency’s Budget Analysts; Stuart Summers, Chief Communications and Engagement Officer, for compiling this document; and members of RTD’s Leadership Team. And lastly, I would be remiss not to thank the customers, communities, stakeholders, and partners who engage with RTD.

On behalf of the agency, I truly appreciate the opportunity to lead this team of dedicated individuals as we strive to be the trusted leader in mobility, delivering excellence and value to our customers and community.

Sincerely,

Debra A. Johnson
General Manager and CEO

Fiscal year 2024 primarily focused the agency’s expenditures on providing core business services to customers while, at the same time, enacting certain Strategic Plan Initiatives of People Power, Back to Basics, and providing a Welcoming Transit Environment.

During 2024, RTD has continued to implement its System Optimization Plan (SOP), which is the agency’s branded Comprehensive Operational Analysis (COA). This implementation follows the COVID-19 pandemic and a renewed focus on the agency’s operations and maintenance activities, after having previously completed several multi-year FasTracks transit expansion projects.

RTD’s People Power initiative experienced improved hiring and retention, particularly with frontline staff and an expansion of the Transit Police division. Through June 2024, RTD’s active employee counts rose to 3,457 as compared to 2,943 in June 2023, with increases primarily in bus and rail operators. Historically, these job categories have been chronically understaffed. The June 2024 vacancy rate for budgeted positions stood at 15%.These staffing improvements have resulted from expanded ongoing hiring and recruitment activities as well as certain retention initiatives, including enhanced training, onboarding, mentorship programs, and certain total rewards improvements.

RTD also implemented several improvements during 2024 related to its Back to Basics initiative, such as the COA, improved financial planning activities, and a focus on maintaining a state of good repair for the agency’s $9.3 billion of assets. During 2024, RTD began a year’s long infrastructure reconstruction and repair effort to maintain several light rail elements that have now reached 30 years of revenue service. These ongoing efforts align with RTD’s Transit Asset Management (TAM) Plan (see Appendix) with a focus on providing continual transit services while maintaining taxpayer’s investments.

RTD continues to expand its Transit Police force in support of the Welcoming Transit Environment initiative while also implementing certain measures in support of crime prevention through environmental design (CPTED). Expansion of the Transit Police function has provided additional security assurances to customers and operators, and devoted certain resources towards addressing societal issues such as homeless outreach personnel. This initiative will continue and is being coordinated with several local jurisdictions throughout the Denver metro area.

In January 2024, RTD implemented Board-approved recommendations resulting from an 18-month fare study and equity analysis. This new fare structure simplified and lowered fares while also addressing any equity concerns. The changes followed a comprehensive analysis, which included significant public outreach and engagement efforts. The financial impacts of lowering fares were relatively modest, and community acceptance and feedback has been overwhelmingly positive.

RTD also completed a Northwest Rail Peak Service Feasibility Study. This months-long study updated assumptions and costs regarding completion of the unfinished FasTracks Northwest Rail corridor which would provide rail service from downtown Denver through Boulder to Longmont. The results of that study were presented to the Board on September 18, 2024.

RTD also made major progress on its Facilities and Fleet Transition Plan (FFTP), which is a framework and technical vision to guide the agency in its transition to alternative fuels. This plan will be completed in mid-December 2024, and a final report and presentation will be shared with the Board.

Annually, the Board of Directors consider the RTD Fiscal Policy for the following year. Development of the agency’s Budget adheres to this Fiscal Policy. The Board approved the 2025 Fiscal Policy during the Board Meeting on September 24, 2024.

The 2025 Budget Policy, which is derived from the 2025 Fiscal Policy, is summarized as follows:

• RTD shall comply with Colorado Local Government Budget Law
• The Board will review and adopt the RTD Fiscal Policy
• There shall be a budgetary monitoring system that charges expenditures against approved appropriations
• The Budget shall be summarized for adoption purposes
• Budget preparation shall follow Generally Accepted Accounting Principles (GAAP)
• A balanced budget is required in which revenues plus reserves are greater than or equal to expenditures
• Procedures that postpone funding of necessary expenditures, such as preventive maintenance or equipment replacement, will be avoided
• Conservative revenue estimates that are reasonable shall be used
• RTD will monitor the Budget and adjust as necessary
• RTD shall prepare a Five-Year Financial Forecast
• Budgets shall support the goals and objectives of RTD

Revenue
The 2025 operating revenue budget is expected to decrease in 2025 primarily from one-time revenues budgeted in 2024. RTD conservatively budgets for projected revenues in accordance with its Fiscal Policy to only plan for revenue that is reasonably certain to be collected. Fare revenue, grant revenue and other income are all based on projections from the Board approved 2025-2029 Five-year Financial Forecast (FYFF) utilizing modest assumptions in ridership growth, actual grant apportionment information and baseline assumptions for other revenue such as advertising, investment and miscellaneous sources.

Sales and use tax revenue, which comprises over 70% of RTD’s funding sources, is derived from the September 2024 forecast provided by the University of Colorado Leeds School of Business which anticipates growth of 4.2% after experiencing an estimated 1.0% growth in 2024 as the economy is expected to stabilize from prior high inflationary levels which depressed real incomes and spending. Grant Revenue decreases compared to 2024 due to the one-time pass-through grant for Colfax BRT budgeted in 2024, however, RTD’s primary source of ongoing grant revenue from Federal Transit Administration (FTA) Section 5307 preventive maintenance grants will continue to be a significant source of funding in 2025. Overall revenue is anticipated to keep pace with increases in expenditures in 2025 while also maintaining adequate reserves and supports RTD’s Strategic Priority of Financial Success.

Capital Expenditures
Capital expenditures for 2025 are largely driven by the TAM Plan. Details of these budgeted capital expenditures are provided herein and a schedule depicting and describing the 2024 capital carryforward will also be provided with the final recommended 2025 budget appropriation.

The decrease in capital from 2024 is due mainly to the 2024 appropriation of capital for the multi-year light rail reconstruction effort that was budgeted at $152 million in 2024, and unused appropriations will be carried forward into 2025. This reconstruction effort will prolong the useful life of light rail track that was opened for revenue service beginning in 1994.

Operating Expenses
The 2025 operating expense budget increases over the 2024 budget primarily due to increases expected to occur in salaries, wages and benefits, materials and supplies and purchased transportation.

Salaries and wages will increase as RTD continues to pursue the People Power Strategic Initiative to improve hiring and retention particularly for vacant front-line positions as well as the expansion of the Transit Police function. Reduction of the 15% vacancy rate is expected to occur while providing necessary resources to achieve the System Optimization Plan (SOP) while also contemplating the supporting resources for front-line positions. These increases will be partially offset by expected reductions in voluntary overtime that has been incurred to fill vacancies. Wage rate increases have been included at a presumed inflationary rate, however, Collective Bargaining Agreement (CBA) negotiations with the Amalgamated Transit Union (ATU) Local 1001 are ongoing and a final rate increase is yet to be determined.

Benefit costs will increase along with new hires while also experiencing inflationary and claims experience increases for certain health and welfare costs. Certain health plans offered to employees will have premium rate increases approaching 20% for which RTD will seek strategies to contain ongoing future large increases. Retirement plans include a $15 million lump sum contribution to the closed non-represented employee pension plan and a 9% of salaries contribution to the non-represented employee defined contribution plan. While CBA negotiations are ongoing, the 2025 Budget contemplates a continuation of a 13% of wages contribution to the closed represented employee pension plan and a 9% contribution with up to a 5% additional matching contribution to the represented employee defined contribution plan currently budgeted.

Materials and supplies increases are expected as RTD adds revenue hours in alignment with the SOP. Repair parts have experienced sharp increases in prices due to the inflationary environment and are expected to continue into 2025. RTD contracted in October 2024 to lock in diesel fuel prices with an expected 400,000-gallon locked price of $2.99/gallon to be carried over into 2025 and a contracted price of $2.52/gallon for and additional 6.75 million gallons necessary for 2025 usage.

Purchased transportation will increase in accordance with bus fixed route contractual increases and the concessionaire agreement for Commuter Rail includes embedded contractual increases for inflation as well as periodic contractual maintenance campaign costs that will occur in 2025.

Services will decrease significantly in 2025 due to the one-time nature of the Denver/Aurora Colfax Bus Rapid Transit (BRT) pass-through grant that was appropriated in 2024 and will be carried forward in the 2025 budget thereby not necessitating additional appropriation.

RTD will continue to pursue the Strategic Initiatives of People Power, Back to Basics, and Welcoming Transit Environment, with the introduction of Customer and Community Connections, during fiscal year 2025. The 2021-2026 Strategic Plan allows for modifications, as necessary, with Board approval. Work tactics surrounding the four Strategic Initiatives may change during the year, at the direction of the General Manager and CEO, to ensure the agency is agile and able to address environmental conditions and changing needs.

The System Optimization Plan (SOP) will continually be evaluated according to RTD’s Comprehensive Operational Analysis (COA) during 2025, and service plan modifications will be implemented in accordance with this process during the planned January, May and September 2025 service changes. RTD may make other service changes during the year, with Board approval, if necessary. Staff intends to increase revenue service hours by approximately 102,000 in 2025 according to the SOP. This effort will require the continued pursuit of recruitment and retention of additional front-line staff as well as some additional supporting staff. Additional funding for support vehicle maintenance is also contemplated while provisions have been made for the expected continued high cost of parts inventory that has resulted from unprecedented inflation. The 2025 Budget includes funding for these efforts and supporting departmental budgets have been developed in concert with these planned SOP changes to provide adequate support.

Completion of the Facilities and Fleet Transition Plan Study which evaluates alternative low- and no-emission fuel technologies will continue to be evaluated with the Board and any recommended future changes contemplated during 2025 for implementation in future years. Funding for this plan was appropriated in fiscal year 2024 but no additional funding is contemplated in the 2025 Budget at this time.

RTD will continue to participate in discussions regarding coordination with Colorado state Front Range Passenger Rail initiatives. RTD has not budgeted any funds for this effort in the 2025 Budget but is committed to considering the future needs of this endeavor.

RTD will continue the multi-year light rail reconstruction project during the summer months. This ongoing project will maintain light rail tracks in a state of good repair in keeping with the Transit Asset Management (TAM) Plan. Funding for this reconstruction will be carried over for the unused portion of the 2024 Budget appropriation of $152 million. Staff will continue to evaluate these TAM funding needs as additional rail condition assessment information is collected, particularly with embedded track. An increase to the Capital Replacement Fund during 2025 will provide additional funding for future TAM needs thereby negating the need for additional borrowing.

Potential new state funding sources such as oil and gas fees from SB24-230 have not been included in the 2025 Budget, however, state funding from SB24-032 of $5 million is included to continue the Zero Fare for Youth Program. As additional information from state legislative funding measures become available, RTD will evaluate the financial impacts of such measures and determine if a 2025 Budget appropriation amendment is necessary.

The revenue in 2025 is budgeted to decrease compared to the 2024 Budget. The 2024 customer fares were estimated with the implementation of the new fare structure, however, actual results during 2024 have been lower than anticipated. The 2025 fares contemplate the current experience, including continuation of the Zero Fare for Youth program and have been budgeted lower by $6.8 million. Fares continue to only provide 5% of RTD’s revenues. Sales and use taxes have been flat between 2023 and 2024.

The 2025 Budget includes an assumed 4.2% increase in tax collections from 2024 according to the 30-year tax forecast provided by the University of Colorado Leeds School of Business. Sales and use taxes will continue to comprise approximately 75% of RTD’s revenue sources in 2025. Operating and capital grants appear lower in the 2025 Budget compared to 2024 due to the one-time inclusion of a pass-through grant of $150 million to the City and County of Denver for the Colfax Avenue bus rapid transit improvements which are anticipated to open for revenue service in 2027. This pass-through grant had no financial impact to RTD.

The 2025 budgeted grant revenue is primarily comprised of FTA Section 5307 grant annual apportionments for preventive maintenance as well as a $5 million state grant for the Zero Fare for Youth Program. Other revenue comprises just 3% of total revenue and consists of investment income, advertising and other miscellaneous revenue and is expected to be relatively flat compared to 2024.

RTD forecasts revenues conservatively to ensure that only reasonably certain funding sources are contemplated when developing expenditures considering fiscal constraints. This approach provides improved budget certainty while also supporting fiscal sustainability. RTD has evaluated the potential effects of revenue growth limitations from the Taxpayer’s Bill of Rights (TABOR) which becomes effective in 2025. TABOR growth limitations could potentially affect up to 50% of RTD’s revenues but staff does not anticipate refunds to taxpayers being required for 2025 and has budgeted accordingly. The November 2024 general election includes a ballot initiative seeking voter approval to continue RTD’s exemption from TABOR revenue growth limits. Any necessary 2025 budget amendments due to the results of this ballot initiative will be addressed with the Board in 2025.

Operating Expenses
Operating expenses will increase in 2025 compared to the 2024 Budget, excluding the 2024 Colfax Bus Rapid Transit grant of $150 million by $89.1 million.

Salaries and benefits include a $52.5 million increase due continuation of front-line position hiring in support of the System Optimization Plan (SOP) which adds 102,000 revenue hours in 2025. Wage rate increases have been included at a presumed inflationary rate, however, Collective Bargaining Agreement (CBA) negotiations with the Amalgamated Transit Union (ATU) Local 1001 are ongoing and a final rate increase is yet to be determined.

Additional increases in benefit rates will also occur due to the additional employees and adverse health claims experience. Retirement plans include a $15 million lump sum contribution to the closed non-represented employee pension plan and a 9% of salaries contribution to the non-represented employee defined contribution plan. While CBA negotiations are ongoing, the 2025 Budget contemplates a continuation of a contribution of 13% of wages to the closed represented employee pension plan, and a 9% contribution with up to a 5% additional matching contribution to the represented employee defined contribution plan currently budgeted.

Materials and supplies increases are expected as RTD adds revenue hours in alignment with the SOP. Replacement parts have experienced sharp increases in prices due to the inflationary environment, as well as supply chain issues, and it is expected to continue into 2025. RTD contracted in October 2024 to lock in diesel fuel prices with an expected 400,000-gallon locked price of $2.99/gallon to be carried over into 2025 and a contracted price of $2.52/gallon for and additional 6.75 million gallons necessary for 2025 usage.

Outside services will decrease significantly in 2025 due to the one-time nature of the Denver/Aurora Colfax Bus Rapid Transit (BRT) pass-through grant that was appropriated in 2024 and will be carried forward in the 2025 budget thereby not necessitating additional appropriation.

Utilities, which are primarily comprised of energy costs for facilities and traction power are anticipated to remain relatively flat in 2025 due to expected continued similar volume usage and no significant rate increases assumed.

Leases and rentals comprises a small portion of RTD’s expenses, and those costs will remain flat in 2025 compared to 2024. These costs are primarily related to facility leases such as the Civic Center building, and other certain smaller agreements associated with communication towers and storage facilities.

The “other expenses” category includes miscellaneous transactions and adjustments.

Insurance costs are relatively small in relation to overall expenses but are expected increase in 2025 due to claims experience and increasing premiums. RTD is self-insured for general liability and worker’s compensation claims. RTD has certain excess liability limits under the Colorado Government Immunity Act for claims involving personal injury and property damage.

Purchased transportation will increase in accordance with bus fixed route contractual increases and the concessionaire agreement for Commuter Rail includes embedded contractual increases for inflation as well as periodic contractual maintenance campaign costs that will occur in 2025. These periodic increases in payments will continue from 2025-2027 before being reduced and will be funded from the FasTracks Internal Savings Account (FISA).

Capital Expenditures
Capital expenditures for 2025 are largely driven by the Transit Asset Management (TAM) Plan. Details of these budgeted capital expenditures are provided in the Appendix and a schedule depicting and describing the 2024 capital carryforward will also be provided with the final recommended 2025 budget appropriation. The decrease in capital from 2024 is due mainly to the 2024 appropriation of capital for the multi-year light rail reconstruction effort that was budgeted at $152 million in 2024, and unused appropriations will be carried forward into 2025. This reconstruction effort will prolong the useful life of light rail track that was opened for revenue service beginning in 1994.

Accessible – As defined by the Federal Transit Administration, a site, building, facility, or portion thereof that complies with defined standards and that can be approached, entered, and used by people with disabilities.

Accessible Service – Service that is accessible to riders with disabilities. This includes fixed-route bus service with wheelchair lifts or paratransit service with wheelchair lift-equipped vehicles.

Access-a-Ride – RTD’s ADA complementary paratransit service that supplements fixed-route services. Fare payment is required, and customers must meet criteria set forth by the Americans with Disabilities Act of 1990.

Access-on-Demand – RTD’s supplemental, premium paratransit service that provides subsidized curb-to-curb taxi and ride-share options. The service is available to eligible Access-a-Ride customers.

Accidents per 100,000 Miles – A standard industry measure of the number of vehicle accidents reported per 100,000 miles of actual fixed-route mileage for bus, light rail, TRE and paratransit. Management’s objective is to reduce this ratio. Calculation = (Vehicle Accidents ÷ Actual Mileage) x 100,000

Accrual Basis of Accounting – An accounting method that measures the performance and position of a company by recognizing economic events in the period they occur regardless of when cash transactions occur (i.e., recognize revenue in the period in which it is earned rather than when the cash is received and recognize expenses when incurred rather than when cash is paid).

Annual Comprehensive Financial Report (ACFR) – Includes audited financial statements, financial notes, and related materials.

ADA (The Americans with Disabilities Act of 1990) – This federal act requires changes to transit vehicles, operations, and facilities to ensure that people with disabilities have access to jobs, public accommodations, telecommunications, and public services, including public transit.

Administrative Ratio – Measures administrative costs as a percentage of direct operating costs. It is management’s objective to reduce this ratio. Administrative costs include but are not limited to executive management, finance, purchasing, legal, internal audit, human resources, marketing, Board support, and administrative services. Administrative revenues include but are not limited to advertising revenue. Calculation = (Administrative Costs - Administrative Revenues) ÷ (Direct Costs + Startup Costs)

Amalgamated Transit Union (ATU) 1001 – The labor union representing RTD’s bus and rail operators, mechanics, maintenance workers, and other employees.

Audit Committee – The Board committee tasked with the responsibility to minimize the agency’s risk and exposure through the adoption and adherence to recognized audit and oversight standards.

Average Fare – The average fare paid per customer boarding on each mode of service during the period in question. Calculation = (Modal Customer Revenue - Commissions & Discounts) / (Modal Customer Boardings)

Average Weekday Ridership – The average number of customer boardings on a weekday. This measurement does not include ridership on Saturdays, Sundays, or holidays.

Back to Basics – A strategic initiative established to enhance the reach and impact of internal communications and to redouble agency efforts to maintain assets in a state of good repair leveraging sound asset management principles.

Balanced Budget – A budget in which projected revenues equal projected expenses during a fiscal period.

Board of Directors (Board) – RTD is governed by a 15-member, publicly elected Board of Directors. Each director is elected to a four-year term and represent a specific district within RTD’s service area. Elections are staggered so that eight seats are open in one general election, seven in the next.

Bond Refinancing/Refunding – The redemption (payoff) and reissuance of bonds to obtain better interest rates and/or bond conditions. This results in the defeasance of the earlier debt. See also Defeasance.

Bus Rapid Transit (BRT) – BRT combines the quality of rail transit and the flexibility of buses. It can operate on exclusive transitways, High Occupancy Vehicle (HOV) lanes, expressways, or ordinary streets. A BRT system combines intelligent transportation systems, technologies, transit signal priority (TSP), cleaner and quieter vehicles, rapid and convenient fare collection, and integration with land use policies.

Bustang – An intercity bus service operated by the Colorado Department of Transportation (CDOT) that connects major cities and regions across the state.

Capital – Funds that finance construction, renovation, and major repair projects or the purchase of machinery, equipment, buildings, and land.

Capital Carryforward – The process of carrying forward unused capital expenditures, losses, or credits from one fiscal year to subsequent years.

Capital Expenditure – A cost incurred to acquire a new asset, add capacity, improve the functionality of an existing asset, or extend an existing asset beyond its original estimated useful life. The asset will have an expected life of one or more years and a value of $5,000 or more.

Car Mile or Vehicle Mile – A single bus, light rail vehicle, or commuter rail car traveling one mile.

Colorado Department of Transportation (CDOT) – State government agency responsible for managing and overseeing Colorado’s transportation system. Its main functions include planning, building, maintaining, and operating the state's highways, bridges, and other key infrastructure. CDOT also focuses on improving the safety, efficiency, and accessibility of transportation across the state.

Congestion Mitigation and Air Quality (CMAQ) – A federal program that funds transportation projects that will contribute to the attainment of national ambient air quality standards.

Complaints per 100,000 Customers – Modal quality ratio that measures the number of service complaints per 100,000 customer boardings (or per 1,000 boardings for paratransit). Management’s objective is to reduce this ratio. Calculation = (Service Complaints Received ÷ Modal Customer Boardings) * 100,000

Consist – The arrangement or configuration of railcars in a train that make up its full length.

Cost per Revenue Mile – Efficiency ratio that measures the cost of providing a revenue mile of service. This measurement is based on fully loaded costs and excludes operating revenues. Management’s objective is to reduce this ratio. Calculation = Total Operating Expenses ÷ Revenue Miles

Customer – Individual using RTD’s bus, rail, or paratransit services.

Customer and Community Connections – A strategic initiative focused on fostering community building and enriching the customer experience.

Customer Canceled Trips Ratio – Quality ratio for paratransit service that measures the percentage of times paratransit users schedule then cancel a trip. Total scheduled trips include actual trips made, cancellations, and no-shows. Calculation = # of Canceled Trips / Total # of Scheduled Trips

Customer Care – The division responsible for addressing customer concerns, answering questions, providing information, and sending service alerts. Customer Care includes the Telephone Information Center.

Customer Mile – A single customer traveling one mile.

Customer No-Show Ratio – Quality ratio for paratransit service that measures the number of times a paratransit user makes a reservation and does not show up for the ride. This measurement is different from a cancellation. Management’s objective is to reduce this number so other trips can be scheduled in that timeframe. Users can lose the ability to access the paratransit system if they have an excessive number of no-shows. Calculation = [# of No Shows ÷ Total # of Scheduled Trips]

Customer per Hour (Actual) – The total number of paratransit customers carried per hour of revenue service. Management’s objective is to increase this number. Calculation = Actual Customer Boardings / Revenue Hours

Customer per Hour (Scheduled) – The total number of paratransit customers scheduled per hour of revenue service. Management’s objective is to increase this number. Calculation = Scheduled Customer Boardings ÷ Revenue Hours

Customer per Mile – Effectiveness ratio that measures route productivity by comparing the number of customer boardings to the number of revenue miles. Management’s objective is to increase this ratio. Calculation = [Customer Boardings ÷ Revenue Miles]

Dashboard – A visual tool used to track, monitor, and display key performance indicators (KPIs) or metrics. It consolidates data from various sources into a single, easy-to-read interface, allowing users to assess the performance of specific processes, departments, or the entire organization at a glance.

Debrucing – Refers to a process where a local government or public entity asks voters to lift or waive the revenue limits set by the Taxpayer’s Bill of Rights (TABOR).

Debt Service – The payment of interest and the repayment of principal on long-term borrowed funds according to a predetermined schedule.

Debt Service Coverage – A measure of RTD’s ability to meet its debt service payments. It is a ratio of cash flows to debt service requirements. See also External Coverage Ratio and Internal Coverage Ratio.

Defeasance of Bonds – The redemption of older higher-rate debt prior to maturity, usually with replacement by new securities bearing lower interest rates.

Depreciation – The portion of the cost of a fixed asset, other than a wasting asset, charged to expense during a particular period. Accounts for the asset progressing to the end of its useful life through wear and tear, deterioration, physical elements, inadequacy, and/or obsolescence.

Director(s) – RTD is governed by a 15-member, publicly elected Board of Directors. Each director is elected to a four-year term and represent a specific district within RTD’s service area. Elections are staggered so that eight seats are open in one general election, seven in the next.

District – A term used to refer to RTD’s service area.

Downtown Loop – The light rail alignment that runs through downtown Denver and is part of RTD’s original line. The Downtown Loop is currently served by the D, H, and L lines.

Enterprise Accounting/Enterprise Fund – Used to account for entities that operate like a private enterprise. It establishes a separate accounting and financial reporting mechanism for services for which a fee is charged. Revenues and expenses of the service are segregated into a fund with financial statements separate from all other activities.

Equal Employment Opportunity (EEO) – A set of federal laws that make it illegal to discriminate against a job applicant or employee because of the person’s race, color, religion, sex (including pregnancy and related conditions, gender identity, and sexual orientation), national origin, age (40 or older), disability, or genetic information. Enforced by the U.S. Equal Employment Opportunity Commission (EEOC). See also Title VI/Title VII.

Errors and Omissions Liability Coverage – Specialized protection against losses not covered by traditional liability insurance, including claims of negligence, errors in services provided, omissions, or misrepresentations. It can cover attorney fees, court costs, administrative costs, and settlements and judgments.

Executive Committee – A Board Committee consisting of the Chair, First Vice Chair, Second Vice Chair, Secretary and Treasurer

Express or Limited Route – A suburban or intercity route that operates a portion of the route without stops or with a limited number of stops.

External Coverage Ratio – The ratio of gross revenues to annual debt service.

Farebox Recovery Ratio – The proportion of operating costs covered by customer fares. Calculation = Modal Farebox Revenue / Modal Operating Expense

Farebox Revenue – All revenue from the sale of customer tickets, passes, or other instruments of fare payment.

Fares – The amount charged to customers for use of various services.

Federal Transit Administration (FTA) – The federal agency that helps cities and communities provide mobility to their residents. Through its grant programs, FTA provides financial and planning assistance to help plan, build, and operate bus, rail, and paratransit systems.

Finance and Planning Committee – The Board committee tasked with the responsibility financial and planning governance.

Fiscal Year – A one-year accounting period used for financial reporting and budgeting. RTD’s fiscal year aligns with a calendar year and runs from January 1 through December 31.

Fixed-Route Service – Services that operate according to fixed schedules and routes. RTD’s fixed-route services are bus, light rail, and commuter rail.

FlexRide – RTD's service that supplements fixed-route services. Fare payment is required and this service provides more flexibility in routes and schedule frequency than fixed route services.

Formula Grant – Federal funding distributed to states, territories, or local units of government based on formulas in the authorizing legislation and regulations. To receive a formula grant, the entity must meet all eligibility criteria for the program, which are predetermined and not open to discretionary funding decisions.

Formula grants typically fund activities of a continuing nature and may not be confined to a specific project. Common elements in formulas include population, proportion of population below the poverty line, or other demographic information.

Full-Depth Reconstruction – Infrastructure reconstruction that repairs or replaces the entire underlying asset rather than only asset components.

Full-Time Equivalent – A measurement equal to one staff person working a full-time schedule for one year (2,080 hours).

Fund Balance – The difference between a fund’s assets and liabilities (also called fund equity). Often this term refers to money set aside or earmarked for future needs. RTD uses “reserves” as well as “funds” to ensure resources are available for anticipated and unanticipated needs. Refer to the Funds and Fund Balances subsection above for more information.

General Operating Fund – The operating account used to account for all financial resources and normal recurring activities except for those required to be accounted for in another fund.

Grants – Monies received from local, federal, and state governments to provide capital or operating assistance.

Headway – The time span between service vehicles (bus or rail) on a specified route.

Internal Coverage Ratio – The ratio of gross sales tax revenues plus operating revenues plus interest income less operating expenses to annual debt service on long-term debt.

Labor Expenditure – The cost of wages and salaries (including overtime) to employees for the performance of their work.

Line Item – An appropriation that is itemized on a separate line in a budget or financial plan.

Linked Trip – A single one-way trip without regard for the number of vehicles boarded to make the trip. For example, a commute from home to work achieved by boarding a bus to a train, and then taking another bus after leaving the train, represents one linked trip. See also Unlinked Trip.

LiVE Program ­– A discount fare program available to qualifying low-income customers.

Maintenance Expenditure – Expenditures for labor, materials, services, and equipment used to repair and service transit and service vehicles and facilities.

Major Capital Transit Investment Program – A federal grants program providing capital assistance for new fixed guideway, extensions of existing fixed guideway, or a corridor-based bus rapid transit system. This program includes New Starts, Small Starts, and Core Capacity projects.

Mean Distance between Service Calls – Quality ratio that measures the average number of miles a vehicle operates before a service call occurs. Management’s objective is to increase this ratio. Calculation = Total Miles Operated ÷ Total # of Service Calls

MyRide App – A mobile device application available for purchasing of fares and trip planning.

NEco Pass – The Neighborhood EcoPass (NEco) pass program offers neighborhood groups the ability to purchase passes for participants based on fixed pricing derived from utilization.

New Starts Program – A federal program that funds fixed guideway transit projects that use and occupy a separate right-of-way or other high-occupancy vehicle.

Next Ride App – Provides schedules and trip planning for customers.

Obligations – Funds that have been obligated/committed to a specific purpose but have not yet been expended.

Off-Peak – Non-rush hour time periods.

On-Demand – Services provided when a customer calls or uses an app to request them, rather than scheduled or fixed-route service. This includes paratransit and GoLink services.

On-Time Performance – Quality ratio that measures how often a service is on time, i.e., at a designated pickup spot within a predetermined timeframe. The timeframe differs based on mode and frequency of service. Bus Operations currently uses 59 seconds early and 4 minutes and 59 seconds late. Light rail uses 1 minute early and 4 minutes late. Commuter rail uses 5 minutes late as required by the Federal Railroad Administration (FRA). Paratransit uses 20 minutes early and late. Management’s objective is to increase this ratio. Calculation = (# Scheduled Trips Sampled – # of Times Early or Late) ÷ Total # of Scheduled Trips Sampled

Operating Budget – The planning of revenue and expenditures for a given period of time to maintain daily operations.

Operating Expenses – The expenses required to operate RTD’s revenue services. Operating expenses do not include the cost of road improvements, or the staff costs associated with capital programs.

Operating Revenues – The revenues obtained from fares, special events service, advertising, signboard rentals, leases, pass sales, operating grants, shuttle services, and other miscellaneous income. Operating revenues do not include sales tax revenue, interest income, or gains on the sale of assets.

Operations, Safety, and Security Committee – The Board committee tasked with the responsibility for transit operations, safety and security governance.

Outside Services – Budget expenses incurred that are contracted to third parties outside RTD. These services are not specifically related to RTD's bus and rail operations. Instead outside services generally refers to professional services (i.e., legal, information technology, security, marketing, etc.) that RTD does not have the specific expertise or personnel to provide in-house.

Paratransit Service – Any transit service required by the ADA, generally characterized by prearranged curb-to-curb service provided by accessible vehicles.

Peak Period – Morning or evening rush hour.

Percentage of Trips Completed – Quality ratio for paratransit service that measures the number of times RTD completes a scheduled customer pickup. Management’s objective is to increase this ratio. Calculation = (# of Actual Trips – # of Trips Missed) ÷ # of Actual Trips

People Power – A strategic initiative established to support RTD’s workforce, the agency’s most important resource, in achieving the agency’s mission. The initiative seeks to address impediments to recruitment and retention efforts and to foster a culture of learning and development.

Performance Committee – The Board committee tasked with the responsibility for governance of the General Manager and CEO’s and RTD’s performance according to the Strategic Plan.

Principal – The amount borrowed or still owed on a loan, separate from the interest.

Public Transportation Agency Safety Plan (PTASP) – Outlines RTD’s safety management system processes, sets safety performance targets, and includes an emergency preparedness plan in compliance with FTA requirements and the National Public Transportation Safety Plan. Reviewed and updated annually.

Purchased Transportation – Any contracted services that RTD engages in with a third party to provide mobility options for customers (i.e., bus and rail). Examples of RTD's purchased transportations include third-party contracts for fixed route bus, paratransit, and the commuter rail concessionaire agreement. For example, on the A, B, and G lines, RTD's commuter rail services are provided and operated by Denver Transit Operators/Partners (DTO/P), and RTD's vehicles and infrastructure is utilized. As of 2024, approximately 56% of RTD's operational services are contracted through third parties, with the remaining 44% provided directly by agency employees.

Reduced (Discount) Fares – Discounted fares for youth, seniors, and individuals with disabilities. At RTD, all individuals 19 and under ride at no cost across all services.

Repurchase Agreement – A money-market transaction in which one party sells securities to another while agreeing to repurchase them later.

Request for Qualifications – A procurement activity that seeks to identify vendors with relevant qualifications for specific contracting needs.

Request for Proposals – A procurement activity that seeks to have potential vendors provide proposals for specific contracting needs.

Reserves – RTD uses “reserves” as well as “funds” to ensure resources are available for anticipated and unanticipated needs. Refer to the Funds and Fund Balances subsection above for more information.

Revenue Bond – A bond on which debt service is payable solely from a restricted revenue source(s), like sales tax revenues for example.

Revenue Miles or Hours – Measures the number of miles or hours that a vehicle is in revenue service (i.e., available to pick up customers) and includes special events service. This measure does not include “deadhead miles," which are the miles between the bus maintenance facility and the beginning and/or end of a route.

Reverse Commute – City-to-suburb commute. This phrase refers to the fact that most riders commute from the suburbs to the city.

Ridership – This is the total number of customers boarding RTD’s revenue service vehicle, which is calculated for each individual mode. Transfers are included in total ridership and customer boarding counts (e.g., if a person transfers from one bus to another bus or from a bus to rail, this is counted as two boardings). See also Unlinked Trip.

Sales-and-Use Tax – taxes collected within the District from goods and services purchases

Sales Taxes for Operating Expenses – Measures the sales tax revenue required to subsidize operations. 100 percent minus this percentage is the amount of sales tax revenue available for capital and road improvement programs. Management’s objective is to reduce this ratio. Calculation = (Operating Expenses - Operating Revenues - Interest Income) / Sales Tax Revenues

Scheduled Miles Per Hour – Represents the average overall speed of the modal service as reflected in the schedule, with stops and recovery time included. This value reflects both the composition of the service (i.e., express and local routes for bus mode) and the efficiency of the schedule (e.g., reducing recovery time in the schedule improves average speed). Calculation (for bus) = Scheduled Miles / Scheduled Hours | Calculation (for rail) = Scheduled Train Miles / Scheduled Train Hours

Service Hours – Paratransit service hours are also known as revenue hours. They are calculated from the time of the first customer pick up until the time of the last customer drop-off. Travel time to and from the garage is not included.

Startup Costs – Costs associated with the implementation of a major new light rail, commuter rail, or streetcar expansion that are incurred prior to the service implementation (e.g., vehicle and system testing).

State of Good Repair (SGR) – Capital investment in infrastructure maintenance to improve the condition of current transit facilities and provide safe, reliable service. SGR funds are placeholders in the financial plan for regularly scheduled capital asset maintenance and replacement or set aside for a specific type of project where the exact nature, timing, and amount are not yet known.

Subsidy per Customer – Efficiency ratio that measures the subsidy required for each customer boarding for a mode or combination of modes. Management’s objective is to reduce this ratio. Calculation = (Operating Expenses - Operating Revenues) / Customer Boardings

Taxpayer’s Bill of Rights (TABOR) – A constitutional amendment passed by Colorado voters in 1992 that imposes strict limitations on the growth of government revenues and expenditures at both state and local levels. It is designed to give taxpayers more control over government fiscal policies by requiring voter approval for certain actions related to taxation and spending.

Title VI/Title VII – Parts of the Civil Rights Act of 1964 that protect individuals against discrimination. Title VI prohibits discrimination based on race, color, or national origin in any program or activity that receives federal funding. Title VII protects employees and job applicants from employment discrimination based on race, color, religion, sex, and national origin. See also Equal Employment Opportunity.

Total Vehicle Miles – The sum of all miles operated by customer vehicles, including mileage when no customers are carried.

Transit Asset Management (TAM) Plan – Measurement of the condition of capital assets, including equipment, rolling stock, infrastructure, and facilities.

Transit Assistance Grant (TAG) Program – An internal program that offers a limited number of discounted fares available for purchase by qualifying non-profit entities

Transit-Oriented Development (TOD) – Mixed-use development of residential, commercial, and retail uses within walking distance of a transit station or bus route.

Transit Signal Priority – Transit signal priority either gives or extends a green signal to public transit vehicles under certain circumstances to reduce customer travel times, improve schedule adherence, and reduce operating costs.

Unlinked Trip – A trip involving a single boarding and alighting from a transit vehicle. For example, a commute from home to work achieved by boarding a bus to a train, and then taking another bus after leaving the train, represents three unlinked trips. See also Linked Trip

Vehicle Revenue Mile – Vehicle mile during which the vehicle is in revenue service (i.e., picking up and/or dropping off customers.

Welcoming Transit Environment – A strategic initiative focused on reducing the impacts of criminal behaviors and Customer Code of Conduct violations on RTD’s services and in workplaces. The effort aims to improve community and employee perception of personal safety and security.

Zero Fare for Youth – All individuals 19 and under are eligible to use all of RTD’s services at no cost.