Steamship Authority Operations and Finances SSA Operations MV - - PowerPoint PPT Presentation

Steamship Authority Operations and Finances

SSA Operations

2,174,185 2,179,567 2,213,800 2,189,530 2,244,441 2,263,708 2,287,999 2,378,303 2,466,757 2,466,548 2,435,308 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 2 8 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8

MV Passengers 2008–2018

2.14 2.18 2.19 2.26 2.38 2.47 2.44 2.34 2.36 2.37 2.44 2.58 2.66 2.65 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 2 7 2 9 2 1 1 2 1 3 2 1 5 2 1 7 2 1 8 Millions

MV Passengers: SSA and All Ferries 2007–2018

SSA All

2008–2018

383,188 368,704 373,668 375,615 385,553 388,864 392,864 399,277 415,543 415,753 417,931 340,000 350,000 360,000 370,000 380,000 390,000 400,000 410,000 420,000 430,000 2 8 2 9 * 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8

Automobiles

98,393 115,600 116,461 114,782 112,958 118,922 121,380 125,078 131,585 136,706 137,635 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2 8 2 9 * 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8

Trucks

1,886 2,273 2,284 2,174 2,264 2,435 500 1,000 1,500 2,000 2,500 3,000 1 9 9 3 1 9 9 8 2 3 2 8 2 1 3 2 1 8 Thousands

MV Passengers 1993–2018

334 397 413 383 389 418 50 100 150 200 250 300 350 400 450 1 9 9 3 1 9 9 8 2 3 2 8 2 1 3 2 1 8 Thousands

Autos

61 65 71 98 119 138 20 40 60 80 100 120 140 160 1 9 9 3 1 9 9 8 2 3 2 8 2 1 3 2 1 8 Thousands

Trucks*

1993–2018

129 130 132 134 129 135 135 135 140 145 144 140 120 125 130 135 140 145 150 2 7 2 8 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 Thousands

Total Cars Parked at Falmouth Lots 2007–2018

5,000 10,000 15,000 20,000 25,000 30,000 J a n u a r y F e b r u a r y M a r c h A p r i l M a y J u n e J u l y A u g u s t S e p t e m b e r O c t

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SSA Parked Cars, Monthly 2008–2018

2008 2010 2012 2014 2016 2018

1.8 1.9 2 2.1 2.2 2.3 2.4 2.5 2016 2017 2018 2019 Number of Days

Average Length of Stay (Falmouth Lots) Summer 2016–2019

June July Aug Sept

2.15 2.14 2.12 2.14 1.8 1.9 2 2.1 2.2 2.3 2.4 2.5 2016 2017 2018 2019 Number of Days

Average Length of Stay (Falmouth Lots) Annual 2016–2019

Excursion Vehicles and Fares 2008–2018

9,052 8,953 9,175 9,336 9,458 8,600 8,700 8,800 8,900 9,000 9,100 9,200 9,300 9,400 9,500 9,600 2 8 2 1 2 1 2 2 1 4 2 1 6 2 1 8

Number of Fares

153,157 144,340 145,476 144,270 151,801 136,000 138,000 140,000 142,000 144,000 146,000 148,000 150,000 152,000 154,000 156,000 2 8 2 1 2 1 2 2 1 4 2 1 6 2 1 8

Number of Vehicles

100 200 300 400 500 600 700 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 Number of Trips

Cancellations (Woods Hole to Vineyard Haven) 2009–2018

Mechanical Weather Other

50 100 150 200 250 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 Number of Trips

Cancellations (Woods Hole to Oak Bluffs) 2009–2018

Mechanical Weather Other

200 400 600 800 1000 1200 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 Title

Total Cancellations: Oak Bluffs and Vineyard Haven 2009–2018

Total OB Total VH

200 400 600 800 1000 1200 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 Number of Trips

Cancellations and Extras (Vineyard Haven) 2009–2018

Cancelled Extra

• 177

11

• 121
• 33

18

• 17
• 96
• 7
• 134

426

• 300
• 200
• 100

100 200 300 400 500 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 Title

Net Cancellations (Vineyard Haven) 2009–2018

4 126 4 48 20 40 60 80 100 120 140 Mechanical Weather Number of Trips

Cancellations, October 2019 VH OB

Net totals VH: 111 OB: 52

SSA Finances

1960 Enabling Act (as amended)

Establishes SSA as tax-exempt Authorizes SSA to perform 11 functions Requires funds to be set aside in a certain way No state subsidies

Authorized Functions

• 1. Acquire, maintain, repair, operate a boat line
• 2. Issue bonds
• 3. Fix rates and charges for service (DPU can reject)
• 4. Adopt bylaws for affairs and business
• 5. Acquire, hold and dispose of real and personal property; lease or

charter vessels; contract other services traveling to and from the islands

• 6. Enter into contracts and agreements, hire contractors, fix

compensation; expenses must be from proceeds of bonds or revenues

• 7. Accept federal grants and other contributions
• 8. Hire regular employees; recognize seniority and pension benefits
• 9. Insure employees and be liable for payments
• 10. Provide for the issue of interest-bearing or discounted notes (not to

exceed $100 million, payable within 3 years)

• 11. Maintain confidentiality in regard to customers

Issuance of Bonds

May not exceed $100 million outstanding Can be used to pay for replacements, new construction or acquisition of vessels and other facilities required to provide adequate service Principal and interest are payable only from funds authorized in the Enabling Act Repayment term not exceed 40 years May be made redeemable before maturity Payments can be made at any bank or trust institution in MA SSA decides how the funds are disbursed Can be issued without consent of state

In order to provide adequate transportation of persons and necessaries of life for the islands of Nantucket and Martha's Vineyard, the Authority is hereby authorized and empowered to purchase, construct, maintain and operate necessary vessels, docks, wharves, other vessels, equipment, furniture and supplies and to issue its revenue bonds payable solely from revenues, or funds as hereinafter authorized in section nine of this act.

The exercise of the powers granted by this act will be in all respects for the benefit of the people of the commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions . . . This act, being necessary for the welfare of the commonwealth and its inhabitants, shall be liberally construed to effect the purposes thereof.

SSA Funds

Revenue Fund

Automobiles Freight Passengers Bike, mail, miscellaneous, voyage Terminal operations Parking Rents Other

Operations Sinking Replacement Reserve Capital Improvement Maintenance, repair, operation for current and following month; salaries; maintenance; not to exceed 1/36 of operating budget for the current year Interest on and amortization and payment

• f bond principal

Depreciation, obsolescence or loss of property; unneeded amounts may be transferred to the sinking fund To be maintained at 5% of the principal of all bonds outstanding, or $600,000, whichever is greater; can also be used to make up for revenue deficiency; excess at year's end goes into the sinking fund For capital improvements

Revenue

Operations Replacement Sinking Reserve Capital Improvement

1

Bond Redemption

Revenue

2

Operations Replacement Sinking Reserve Capital Improvement Bond Redemption

Revenue

3

Operations Replacement Sinking Reserve Capital Improvement Bond Redemption

Revenue

4

Reserve Capital Improvement Bond Redemption Operations Replacement Sinking

5

Operations Reserve Capital Improvement Bond Redemption Replacement Sinking

Revenue

6

Operations Capital Improvement Replacement Sinking Reserve Bond Redemption

7

Operations Capital Improvement Replacement Sinking Reserve Bond Redemption

8

Operations Capital Improvement Replacement Sinking Reserve Bond Redemption

OPERATIONS FUND SINKING FUND REPLACEMENT FUND RESERVE FUND BOND REDEMPTION CAPITAL IMP. FUND

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10000000 20000000 Dollars

Fund Totals (Ending Balance)

Dollars From Bond/Note Issue Income from Investments Withdrawals 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

• 20M
• 10M

10M 20M 30M 40M

Capital Improvement Fund Activity

Dollars Cash Receipts Cash Receipts - Grants Cash Receipts - Capital Projects Cash Disbursements Cash Disbursements - Capital Projects Transfers to Special Purpose Funds 2 8 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8

• 150M
• 100M
• 50M

50M 100M

Operations Fund Activity

Dollars Transfers from Revenue Fund Income from Investments Debt Service Payments 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

• 15M
• 10M
• 5M

5M 10M

Sinking Fund Activity

Dollars Transfers from Revenue Fund Transfers from Bond Redemption Proceeds from Disposal of Property Income from Investments Withdrawals 2 8 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8

• 20M
• 15M
• 10M
• 5M

5M 10M 15M

Replacement Fund Activity

Dollars Transfers from Revenue Fund Income from Investments Transfers to Bond Redemption Acct. 2 8 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8

• 500k
• 250k

250k 500k 750k 1 000k 1 250k

Reserve Fund Activity

Dollars Transfers from Revenue Fund Transfers from Reserve Fund Transfers to Replacement Fund Income from Investments 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

• 12.5M
• 10M
• 7.5M
• 5M
• 2.5M

2.5M

Bond Redemption Account Activity

Budgeting

July August September October

Department heads begin to make requests; accounting department compiles requests and makes adjustments Draft budget distributed to SSA staff Preliminary budget presented to SSA Port Council and Board Budget presented to Port Council and Board for final vote

SSA Port Council (two-year terms)

Falmouth: Robert S. C. Munier New Bedford: Edward C. Anthes-Washburn Barnstable: Eric W. Shufelt Oak Bluffs: Robert V. Huss Tisbury: George J. Balco Nantucket: Nathaniel E. Lowell Fairhaven: Mark H. Rees

SSA Board (three-year terms)

Dukes County: James Malkin Nantucket: Robert F. Ranney Barnstable: Robert R. Jones Falmouth: Kathryn Wilson New Bedford: Moira E. Tierney

Some important factors

Annual revenue projections are generally flat, based on last 12 months

• f traffic data

SSA aims for a surplus of 5–10% of operating expenses each year; doesn't always play out SSA has no official "rainy day" fund, although some funds can accumulate Bonds are often repaid at an accelerated pace to allow for new projects SSA updates its capital budget every year, including a 10-year

• utlook

Rates are adjusted about once every 3–5 years

Cost of Services (FY20 Budget)

Operation of vessels (includes wages): $25,378,547 "General" (includes wages, pensions, legal expenses, etc.): $25,734,161 Maintenance (includes wages; boats, buildings, other vehicles) $18,535,648 Operation of terminals (includes wages): $12,736,374 Depreciation: $11,650,145 Casualties and insurance: $3,941,508 Traffic expense (includes advertising): $3,196,880 Payroll taxes, social security: 2,685,452 Operating rents: 778,464

$81,672,145 $77,435,767 $78,950,219 $80,078,243 $83,865,375 $88,990,692 $87,983,041 $90,960,717 $96,557,535 $97,640,093 $108,222,534 $82,919,632 $81,084,976 $81,064,286 $84,457,368 $86,671,100 $91,866,242 $95,715,750 $102,263,587 $106,512,959 $106,259,590 $108,435,244 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SSA Total Expenses and Revenue (Actual) 2008–2018

Expenses Revenue

Auto Freight Passenger Bike, mail, misc. Terminal operations Parking Rents Other

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 5000000 10000000 15000000 20000000 25000000 30000000 35000000 Dollars

Total Operating Revenue

Wages Pensions, welfare Payroll taxes Depreciation Vessel fuel oil Insurance Direct vessel maint. Direct terminal maint. Utilities Other

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10000000 20000000 30000000 40000000 Dollars

Total Operating Expenses

Dollars Income Expenses Net income Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Jun-18 Nov-18 Apr-19

• 5M

5M 10M 15M

Income, Expenses, Net Income: Monthly 2008–2019

Average revenue per passenger* Average revenue per automobile Average revenue per truck

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 150 300 Dollars

Vineyard Revenue

Nantucket Revenue

Average revenue per passenger Average revenue per automobile Average revenue per truck

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 100 200 300 Dollars

Vineyard Nantucket

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10000000 20000000 30000000 40000000 50000000 60000000 70000000 Dollars

Income by Route

Vineyard Nantucket

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10000000 20000000 30000000 40000000 50000000 60000000 70000000 Dollars

Cost of Service by Route

2018 and 2019 Revenue and Expenses

$104,806,516 $104,371,492 $112,516,596 $106,568,238 $90,000,000 $95,000,000 $100,000,000 $105,000,000 $110,000,000 $115,000,000 Operating Revenues Operating Expenses

2018 Actual 2019 Estimate

2018 and 2019 Operating Expenses

$23,709,462 $12,615,840 $11,482,828 $20,091,481 $26,134,046 $3,915,740 $3,002,139 $768,108 $2,651,848 $25,936,270 $12,734,220 $11,678,850 $17,906,941 $27,128,361 $4,056,277 $3,633,426 $774,582 $2,719,311 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 V e s s e l s T e r m i n a l s D e p r e c i a t i

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M a i n t e n a n c e G e n e r a l C a s u a l t i e s a n d i n s . T r a f f i c R e n t s P a y r

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l T a x e s 2018 Actual 2019 Estimate

2018 and 2019 Operating Expenses: Vessels

$40,580 $15,950,267 $6,493,061 $200,690 $68,359 $451,169 $505,336 $34,097 $16,933,803 $7,853,402 $214,846 $283,864 $191,145 $425,113 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 T e l e p h

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e s W a g e s F u e l L u b r i c a n t s F

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s u p p l i e s S t

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e s , s u p p l i e s , e q u i p . O t h e r 2018 Actual 2019 Estimate

2019 and 2020 Revenue and Expenses

$112,516,596 $106,568,238 $113,474,546 $111,599,526 $90,000,000 $95,000,000 $100,000,000 $105,000,000 $110,000,000 $115,000,000 Operating Revenues Operating Expenses

2019 Estimate 2020 Budget

2019 and 2020 Operating Expenses

$25,936,270 $12,734,220 $11,678,850 $17,906,941 $27,128,361 $4,056,277 $3,633,426 $774,582 $2,719,311 $25,368,547 $13,211,433 $12,626,114 $21,292,236 $27,537,638 $4,396,456 $3,250,540 $882,139 $3,034,423 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 V e s s e l s T e r m i n a l s D e p r e c i a t i

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M a i n t e n a n c e G e n e r a l C a s u a l t i e s a n d i n s . T r a f f i c R e n t s P a y r

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l T a x e s 2019 Estimate 2020 Budget

2019 and 2020 Operating Expenses: Maintenance

$949,537 $1,496,705 $1,466,400 $552,570 $1,724,668 $726,450 $368,937 $1,112,618 $1,537,740 $1,552,563 $1,676,549 $1,556,415 $1,733,625 $394,224 $1,047,940 $1,457,935 $1,081,081 $512,997 $724,247 $731,150 $2,171,893 $1,456,706 $1,807,966 $368,727 $2,543,696 $2,751,001 $2,875,199 $1,517,551 $414,600 $877,377

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000

S u p e r v i s i

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M / V M a r t h a ' s V i n e y a r d M / V W

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s H

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e M / V G

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M / V S a n k a t y M / V N a n t u c k e t M / V K a t a m a M / V E a g l e M / V G a y H e a d M / V I s l a n d H

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e M / V I y a n

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g h B l d g s . & s t r u c t u r e s O f f i c e a n d t e r m e q u i p V e h i c l e s M i s c .

2019 Estimate 2020 Budget

Steamship Authority Operations and Finances