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CTA Finance Update: Fare Revenue Near Budget, Fuel Hedge Protects Costs; Security Services Rise Above Budget
Summary
CTA reported February fare revenue near budget and a 75% fuel hedging strategy that insulated the agency from recent price spikes. Board members pressed staff about a 33% increase in security services spending and upcoming capital purchases for security vehicles; staff said the majority of security spending is voluntary CPD overtime and promised a detailed breakdown.
CTA's finance team briefed the Finance, Audit and Budget Committee on April 8 on February financials, noting fare and passenger revenue at budgeted levels and year‑to‑date operating expenses roughly $1.6 million favorable to budget for the first two months of the year.
Molly McCombe said non‑fare investment income was below plan for February by roughly $500,000 but that year‑to‑date the shortfall narrows to about $100,000. On fuel costs, McCombe described a layered hedging strategy covering about 75% of anticipated purchases and said the approach has protected the agency as market prices rose rapidly: "We're 75% hedged against our anticipated fuel prices," she said, noting that locked‑in purchases in the ~$2.60 range have created meaningful savings compared with recent market spikes.
Board members pressed about security services, pointing to a 33% increase in contracted security spending versus budget and asking whether a planned $2 million purchase of 32 policing vehicles was included. McCombe said vehicle purchases are capital transactions and not counted in the operating security line; she said "the majority of [security spending] goes to the Chicago Police" through the voluntary special employment program, with canine units and private security firms comprising other material shares. McCombe committed to provide a specific vendor breakdown at the budget amendment stage.
The committee reviewed and placed multiple ordinances and two contracts on the omnibus, including planned intergovernmental agreements with CDOT for infrastructure improvements (a five‑year IGA with a not‑to‑exceed value of $28 million) and with CDOT for GreenCorps landscaping services (five‑year not‑to‑exceed $1 million). The committee also approved co‑promotional trade amendments and other revenue‑related items. All discussed items were placed on the omnibus and later approved by the board.
Directors asked that the security budget and the proposed amended budget be reviewed holistically, including non‑police violence‑prevention partners and station improvement investments. McCombe said some prior reallocation of security funds had been moved into "other expenses" to support station improvements and that staff would provide more granular details in advance of the amendment.
