Valley Metro Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2013 Regional Public Transportation Authority Phoenix, Arizona Valley Metro Regional Public Transportation Authority Phoenix, Arizona Board of Directors Chair, Councilmember Ron Aames, Peoria Vice Chair, Councilmember Scott Somers, Mesa Treasurer, Councilmember Trinity Donovan, Chandler Councilmember Jim McDonald, Avondale Councilmember Eric Orsborn, Buckeye Mayor Lana Mook, El Mirage Councilmember Jenn Daniels, Gilbert Councilmember Gary Sherwood, Glendale Vice Mayor Joe Pizzillo, Goodyear Supervisor Mary Rose Wilcox, Maricopa County Councilmember Thelda Williams, Phoenix Councilmember Bob Littlefield, Scottsdale Mayor Sharon Wolcott, Surprise Councilmember Shana Ellis, Tempe Councilmember Kathie Farr, Tolleson Councilmember Sam Crissman, Wickenburg Staff Leadership Team Stephen R. Banta, Chief Executive Officer Jyme Sue McLaren, Chief of Staff Raymond Abraham, Chief Operations Officer Rick Brown, Design & Construction Hillary Foose, Director Communications & Marketing Wulf Grote, Director Planning and Development Carol Ketcherside, Director Admin & Organizational Development John McCormack, Chief Financial Officer Gardner Tabon, Chief, Safety & Security Prepared By Finance Division Staff Valley Metro Regional Public Transportation Authority Organization Chart Citizens of Maricopa County Board of Directors Chief Executive Office Communication & Marketing Planning & Development Design & Construction Operations & Maintenance Finance Admin & Organizational Development Valley Metro Regional Public Transportation Authority Table of Contents Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2013 Page Introductory Section Letter of Transmittal GFOA Certificate of Achievement iii xi Financial Section Independent Auditor’s Report . Management’s Discussion and Analysis (required supplementary information) . Basic Financial Statements: . Government-wide Financial Statements: Statement of Net Position Statement of Activities . Fund Financial Statements: Balance Sheet – Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual – General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual – Transit Planning Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual – Transportation Demand Management Fund Statement of Net Position – Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net position – Proprietary Funds Statement of Cash Flows – Proprietary Funds . Notes to the Financial Statements . Other Supplementary Information – Combining and Individual Fund Financial Statements and Schedules: . Schedule of Revenues, Expenses and Changes in Net Position – Budget to Actual – Proprietary Funds: Enterprise Funds: Transit Service Operations Fund Valley Metro Rail Fund i 1 3 14 15 17 18 19 20 21 22 23 24 25 26 48 49 Valley Metro Regional Public Transportation Authority Table of Contents (Continued) Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2013 Page Statistical Section Statistical Section Contents Financial Trends Net position by Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Revenue Capacity Sales Tax Revenues by Component Maricopa County Transportation Excise Tax Revenue Distributions Maricopa County Transportation Excise Tax Revenue Collections by Category Arizona Transaction Privilege Tax Excise Tax Rates by Category Debt Capacity Transportation Excise Tax Revenue Bonds – Bond Coverage Outstanding Debt by Type Debt Service Revenue and Cost per Capita Demographic and Economic Information Regional Population Statistics Top Ten Employers for Maricopa County Arizona Lottery Funds Demographic and Economic Statistics Operating Information Full-time Equivalent Employees by Function/Program Operating Indicators by Program: Fixed Route System Dial-a-Ride System Shuttle / Circulator System Capital Asset Statistics by Function/Program Revenue Vehicles for Transit Service Operations ii 50 51 53 57 59 61 63 65 66 68 69 70 71 73 74 76 77 78 80 84 86 Introductory Section The Introductory Section includes the Authority’s transmittal letter and the Certificate of Achievement for Excellence in Financial Reporting. December 18, 2013 To Chair and Members of the Valley Metro RPTA Board of Directors: The comprehensive annual financial report of the Valley Metro Regional Public Transportation Authority (the Authority) for the fiscal year ended June 30, 2013 is hereby submitted as mandated by state statute. The statute requires that the Authority annually issue a report on its financial position and activity, and that this report be audited by an independent firm of certified public accountants. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the financial position and results of operations of the Authority on both a government-wide and fund basis. All disclosures necessary to enable the reader to gain an understanding of the Authority’s activities have been included. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for local governments as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA). The Authority’s management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Authority are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The Authority’s internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. The independent certified public accounting firm of Heinfeld, Meech & Co., P.C., whose report is included herein, has audited the basic financial statements and related notes. As stated in the independent auditors’ report, the goal of the independent audit was to provide reasonable assurance that the basic financial statements of the Authority for the fiscal year ended June 30, 2013 are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the basic financial statements of the Authority as of and for the fiscal year ended June 30, 2013 are fairly presented, in all material respects, in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. iii Valley Metro Regional Public Transportation Authority Letter of Transmittal (Continued) Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Additionally, the Authority is required to have an independent audit of expenditures of federal awards received (Single Audit) by the Authority directly from federal agencies, or passed through to the Authority by other governmental entities during the fiscal year. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the Authority’s internal controls and compliance with legal requirements having a direct and material impact on major programs, with special emphasis on internal controls and compliance requirements involving the administration of major federal awards. As a subrecipient of federal and state financial assistance, the Authority is responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management and by the Authority’s independent audit firm. As part of the Authority’s Single Audit, tests were made of the internal control structure and of its compliance with applicable laws and regulations, including those related to federal awards. The results of the Authority’s Single Audit for the fiscal year ended June 30, 2013, found no instances of material weakness in the internal control structure or significant violations of applicable laws and regulations with respect to major programs. The auditor’s reports on internal controls and compliance with applicable laws and regulations are included in a separately issued Single Audit Report. PROFILE OF THE AUTHORITY The Authority was established in 1985 along with the passage of a one-half of one percent sales tax increase to fund regional highway and public transportation improvements in Maricopa County, Arizona (the County). The Authority was created to develop a regional transit plan and to develop and operate a regional transit system in the County. The financial reporting entity of the Authority includes all its funds and does not include any component units (i.e., legally separate entities for which the Authority is financially accountable). The Authority is governed by a sixteen-member Board of Directors consisting of a member of the County Board of Supervisors and the mayors (or their designees) of the member cities and towns. For fiscal year 2012-13, the members included Maricopa County, the cities of Avondale, Buckeye, Chandler, El Mirage, Glendale, Goodyear, Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe and Tolleson and the Towns of Gilbert and Wickenburg. Any municipality in the County may join the Authority and have one elected official serve on the Board of Directors. A Chief Executive Officer, appointed by the Authority’s Board of Directors, is responsible to carry out policy and plan, manage, supervise and coordinate all day-to-day activities. The Authority procures regional bus, dial-a-ride and vanpool services, provides regional transit and capital planning support, coordinates the County’s transportation demand management activities, and provides general operational and administrative support to its members. In February 2012, the Boards of Directors of the Authority and Valley Metro Rail, Inc. (METRO) took action to appoint Mr. Stephen R. Banta as the Chief Executive Officer to manage the two financial entities under a single integrated agency. The Authority and METRO entered into an iv Valley Metro Regional Public Transportation Authority Letter of Transmittal (Continued) intergovernmental agreement providing for the single CEO to serve both organizations effective March 1, 2012 with the preservation of both RPTA and METRO Boards of Directors. The annual budget serves as a foundation for the Authority’s financial planning and control. Activities of the general fund, special revenue funds and enterprise funds are included in the annual appropriated budget. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed appropriations) is the total annual appropriated budget. Costs in excess of the total annual appropriated budget require approval of the Board of Directors. Transfers of appropriations between departments require the approval of the Chief Executive Officer. The Authority maintains budgetary control by conducting quarterly evaluations of expenditures against appropriations and through close monitoring of revenues. As demonstrated by the statements included in the financial section of this report, the Authority continues to meet its responsibility for sound financial management. FACTORS AFFECTING FINANCIAL CONDITION Local Economy The Authority serves Maricopa County, which is located in central Arizona. According to the Arizona Department of Commerce, Maricopa County measures 9,222 square miles, 98 square miles of which is water. Twenty-nine percent of this area is owned individually or by corporations, and the U.S. Bureau of Land Management owns 28 percent. The U.S. Forest Service and the State of Arizona each control 11 percent of the County; an additional 16 percent is owned publicly. Almost 5 percent is Indian reservation land. Parts of western Maricopa County have 11 designated Enterprise Zones as well as central and southern areas in the City of Phoenix. The metropolitan area is home to the state capitol and includes the City of Phoenix, population 1.5 million, making it Arizona’s major center of political and economic activity. In fact, more than half of the state’s population resides in Maricopa County, which is home to 15 institutions of higher learning, including Arizona State University; various cultural attractions; professional baseball (Arizona Diamondbacks), basketball (Phoenix Suns and Phoenix Mercury), football (Arizona Cardinals) and hockey (Phoenix Coyotes); and Sky Harbor International Airport one of the top ten busiest airports in the United States with over 1,200 daily flights. The County grew from just over 2.1 million residents in 1990 to 3.8 million residents in 2010, an increase of 81 percent in just 20 years. According to the Maricopa County Association of Governments (MAG) recent forecasts, population is projected to grow 42 percent by 2030, reaching 5.4 million people. Maricopa County currently accounts for about 60 percent of the state’s population and attracts a continual inflow of immigrants seeking new opportunities. The total labor force in Maricopa County grew to 1.45 million people in 2012, an increase of 2 percent over 2011. According to Arizona Department of Administration estimates, Maricopa County job growth will continue at 2 to 3 percent per year in the coming year. MAG planning projections forecast Maricopa County employment to increase substantially to 2.7 million jobs by year 2030. As a consequence of the economic slowdown in years 2008 through 2010, population in Maricopa County reversed the historical growth trend and decreased by approximately 12%. However, since the recession, population has once again continued to grow and the local economy has rebounded, with regional sales tax revenues growing by 3.4%, 4.3% and 5.5 % in fiscal years 2010, 2011 and 2013. According to Brookings Institute’s most recent Metro Monitor Report, v Valley Metro Regional Public Transportation Authority Letter of Transmittal (Continued) Greater Phoenix has the fifth-strongest economy in the United States. Long range sales tax projections prepared by ADOT forecast the local economy to grow by 5 to 6 percent per year through 2019 and then level off to four percent per year through year 2025. Despite the recent decrease in population, ridership in public transportation has grown by 18.7% over the last five years. Population is projected to increase and continues to challenge the Authority and the County it serves. Increases in population and fuel prices will continue to lead to increased demands for quality public transportation and improved air quality. With the burgeoning increase in population come concerns about how to manage issues of congestion on the Valley’s roadways. As our region grows, it is important that we maintain a safe transportation system that moves people and goods efficiently, and that attracts high quality workers and businesses to the area. On the positive side, the region has taken two major steps toward improving the transportation system. First, thanks to a November 2004 voter-approved transportation tax initiative (Proposition 400), beginning in January 2006 a revenue stream of over $95 million annually injects much needed resources into the region’s transit network, allowing for the expansion and improvement of the entire system. Second, light rail transit began operating in December 2008, is carrying over 44,000 passengers per day, and has fueled the growth of public transit usage in the Valley. Major Initiatives On November 2, 2004, the voters of Maricopa County approved Proposition 400, the continuation of the transportation tax, for a 20-year period, beginning in calendar year 2006. The approximate total vote in favor was 57.5 percent. This was a major milestone in transportation funding and service in the region. The Proposition had unanimous support from the Mayors of all of the cities in the region and the Maricopa County Board of Supervisors, the Maricopa Association of Governments Regional Council, the Authority’s Board of Directors and the Arizona Department of Transportation (ADOT). It also had the support of nearly every major business and community agency in the region. To implement the projects approved with the passage of Proposition 400, staff worked with member agencies and other stakeholders to develop the Transit Life Cycle Program (TLCP). This project included the development of three major program elements: guiding principles, financial model and policies and procedures. The original guiding principles and the 20-year financial model were adopted by the Board in June 2005 and then revised and adopted in April 2010. The original policies for the TLCP were adopted by the Board in October 2005 and have been revised and adopted by the Board in January 2011. The six adopted guiding principles of the TLCP are as follows: 1. A defined and consistent process will be established for allocating funding for projects in the Regional Transportation Plan. 2. A defined and consistent process for Plan amendments and changes will be established. 3. Funding allocations will be regularly monitored and managed. 4. A defined and consistent process will be established to ensure legislated compliance audit, reporting and performance requirements are met. 5. Budgeting and accounting systems will be established to manage Public Transportation Funds (PTF) and monitor and report results. 6. Jurisdictional equity will be maintained. vi Valley Metro Regional Public Transportation Authority Letter of Transmittal (Continued) Numerous meetings of the TLCP executive steering committee, TLCP stakeholders committee and TLCP technical working groups were held over a nine-month period in order to complete this project, which was one of the most successful cooperative transit projects this region has ever undertaken. Valley Metro Operations Initiatives x Valley Metro Operations Under the brand name Valley Metro, the Authority manages fixed route bus, demand response (Dial-a Ride) and vanpool services in cooperation with Member Cities. o During fiscal year 2013 the integration of City of Tempe operated bus service with East Valley bus services operated by RPTA was procured with a single contractor. The integration will result in greater efficiency of operations and consequential cost savings. o Dial-a-Ride services have been traditionally provided by a fleet of specialized vansized vehicles. In fiscal year 2013, Valley Metro implemented a demand response program which dispatches cab vehicles which are tailored to the specific customer need providing faster and more direct transportation service. Many Dial-a-Ride trips in the East Valley and West Valley cities are now provided in fuel efficient sedans generating substantial savings. o In March of 2013, Valley Metro hosted the APTA Fare Collection Workshop TransTech Conference (March 17-20) that provided a valuable forum for U.S. and international transit agencies to share and strengthen their technical knowledge and soft skills in reaching out to customers. With peers and technology vendors participating in numerous sessions on the benefits of advancing transit technology, it allowed a collective opportunity to learn more about the tools that can enhance the customer experience. x Customer Service The Regional Call Center provides bilingual telephone support for regional transit inquiries including trip planning, addressing customer complaints, lost and found inquiries, and lightrail construction mitigation. With increasing ridership and growing call volumes, staff introduced a self-service automated program called NextRide. Customers may use an interactive voice response system, a mobile phone text messaging application, or internet connection to get the next three arrival times of buses or trains serving a particular location. In the second year of existence, the program has delivered over 6.8 million NextRide responses to customers. x Regional Marketing Program Transit Book Development and Printing: The Transit Book is the primary route and schedule communications vehicle in conjunction with on-line information for Valley Metro bus riders. It is developed and distributed twice a year. Printed Communications Tools and Signage: Various forms of printed materials are essential for providing transit related information to transit users, non-users, key stakeholders, and partners. This includes brochures, passenger notices, car cards, newsletters, printed guides, kiosk signage, schedules and system maps. vii Valley Metro Regional Public Transportation Authority Letter of Transmittal (Continued) Web Site Design and Navigation: The mission of ValleyMetro.org is to provide up-to-date information needed to use Valley Metro’s services, educating the public about what services are available and the benefits of using those services, and promoting alternative modes of transportation in an effort to minimize the impact of single-occupancy vehicle usage in the Valley. With the significant increase in services and information needed to be communicated to the public, ValleyMetro.org requires significant changes to the site design and navigation. Aside from basic Web site navigation features, interactive features such as the Online Trip Planner, the Commuting Cost Calculator and periodic interactive contests will be enhanced for educational purposes and as an incentive to promote the use of alternative modes. ShareTheRide.com is Valley Metro’s tool for carpool and vanpool matching, and is linked to ValleyMetro.org. Information for the Valley METRO Rail is also highlighted. Over time the site design and navigation are essential to delivering a "transit portal" for the entire region encompassing all transit modes. Valley Metro Communications Campaign: Valley Metro and our contracted public relations firm, R&R Partners, plan to continue to implement a campaign designed to promote Valley Metro as the transportation solutions provider that makes the Valley a better place to live, work, play, and visit. This includes public relations support, creative design and development, and various forms of media purchase and placement including print, radio and online advertising. x Regional Transportation Demand Management (TDM) Program The Regional TDM Program promotes and provides ridesharing and alternative transportation modes services to the general public and over 1,200 Valley employers involved in the Trip Reduction Program. Services include a computerized matching system for carpooling, vanpooling, and bicycle partner opportunities; and assistance with implementing a variety of Transportation Demand Management (TDM) programs such as compressed work weeks and telecommuting programs. The TDM Program oversees and manages regional vanpool services. A public awareness program, the Clean Air Campaign, is administered by Valley Metro. This program is a private/public partnership encouraging participation in alternate modes of transportation, alternate work schedules, and other pollution reducing measures. The TDM Program also oversees regional bicycle and pedestrian safety & education programs. Long-term Financial Planning With the passage of Proposition 400, a new era began for the Authority. For the 20 year period 2006 thru 2025, a significant stream of regional funds will vitalize public transportation in the region. Valley Metro’s mission is to put those funds to work to effectively and efficiently serve our member agencies and their residents for the next 20 years. The continuing development of Valley Metro’s long term financial plan is integral to the success of public transportation in the region. Bond Funding: In November of 2013, the Authority’s Board of Directors authorized the second issue of Senior Bonds to be sold in early 2014. The second issue, not to exceed $115 million will fund light rail capital construction projects to be managed by Valley Metro Rail. The initial issuance of Senior Bonds occurred in 2009 totaling $105 million ($50 million for Bus capital projects and $55 million for Rail capital projects). The Authority uses bond proceeds for the payment or reimbursement of costs of capital expenditures in the regional transportation plan, including without limitation: relocation of utilities relating to the light rail system; planning, acquisition, construction and equipping expansions of the light rail system; bus transit centers and bus/rail viii Valley Metro Regional Public Transportation Authority Letter of Transmittal (Continued) transit centers; acquisition of buses and paratransit vehicles; acquisition, construction and equipment of park-and-ride facilities; and related capital costs. The Senior Bonds are funded solely by Prop 400 sales taxes and will be repaid before December 2025, the current sunset of the Public Transportation Fund sales tax revenue. Planning Projects: x Operations Planning In FY 2013 the Authority led a region-wide effort to develop operating service standards for fixed route (Bus and Rail) and paratransit (Dial A Ride) transit services. The service standards were adopted by the Authority Board of Directors in November 2013. A service planning working group was established to coordinate service changes throughout the region to optimize passenger service within available funding. Service changes recommended by the working group are brought to the Board for approval establishing the baseline for budget and long range financial planning to be incorporated into the TLCP. x Long-Range Planning Valley Metro provides transit information for the Long-Range Transit Plan for Maricopa County, and annual update to the transit element of the Maricopa Association of Governments’ (MAG) Regional Transportation Plan (RTP). x Short Range Planning Valley Metro provides transit information for the MAG Annual Transportation Report on Prop 400 and preparation of Annual Transit Performance Report. In addition, Valley Metro: o Coordinates with all transit providers and funders in the MAG area on service and route planning activities including Supergrid, Arterial and Freeway Bus Rapid Transit (BRT), Express Bus routes, and Rural Connector routes. o Collects and analyzes information from operators and area communities to develop a Short Range Transit Program annual update that details regionally funded transit investments that will occur within the five year horizon of the plan. o Fulfills planning requirements of Title VI of the Civil Rights act as outlined in FTA Circular 4702.1A, addressing how service and project related impacts to minority and low income populations will be addressed, as well as the procedures used to address Title VI-related customer complaints. x Transit Research and Survey The Authority develops, implements, and provides analysis for comprehensive transit research surveys and studies. Information from the surveys is used to produce a database for transit planning purposes, including route evaluation and service adjustments. x Project Management The Authority provides project management in the implementation of the 20-year capital program identified in the RTP. RPTA is the designated lead agency for development of transit capital and operating projects which are identified in the Regional Transportation Plan and funded through the 1/2 cent sales tax extension authorized by Proposition 400. Project management includes design and construction of facilities and associated support infrastructure. ix xi (This page intentionally left blank) Financial Section The Financial Section includes the independent auditors’ report, Management’s Discussion and Analysis (MD&A), the basic financial statements (government-wide statements and fund statements), notes to the financial statements, other Required Supplementary Information (RSI) and other financial schedules. 10120 N. Oracle Road Tucson, Arizona 85704 Tel (520) 742-2611 Fax (520) 742-2718 INDEPENDENT AUDITOR’S REPORT Board of Directors Valley Metro Regional Public Transportation Authority Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of Valley Metro Regional Public Transportation Authority (the Authority), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, and each major fund of the Valley Metro Regional Public Transportation Authority, as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparisons for the General Fund and major special revenue funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. TUCSON • PHOENIX • FLAGSTAFF www.heinfeldmeech.com 1 Change in Accounting Principle As described in Note 1, the Authority implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, for the year ended June 30, 2013, which represents a change in accounting principle. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 13 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The accompanying supplementary information such as the Introductory Section, Other Supplementary Information – Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Other Supplementary Information – Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Other Supplementary Information – Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2013, on our consideration of Valley Metro Regional Public Transportation Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Valley Metro Regional Public Transportation Authority’s internal control over financial reporting and compliance. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 16, 2013 2 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis As management of Valley Metro Regional Public Transportation Authority (the Authority), we offer this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended June 30, 2013. This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Authority’s financial activity, (3) identify changes in the Authority’s financial position, (4) identify any material deviations from the financial plan (adopted annual budget) and (5) identify individual fund issues or concerns. Financial Highlights x The Authority’s total net position increased $23.0 million in FY 2013, comprised of an increase of $2.5 million in governmental activities and an increase of $20.5 million in business-type activities. Total net position of the Authority is $128.6 million, of which $108.4 million is unrestricted. x The governmental activities revenues increased by approximately $5.5 million (4.4%) over the previous year. x The business-type activities revenues decreased by approximately $2.0 million (3.4%) from the previous year. x At June 30, 2013, the Authority’s governmental fund balance sheet reported a combined ending fund balance of $49.7 million, an increase of $2.3 million (4.8%) compared to the previous fiscal year. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements are presented as follows: x Government-wide reporting – presents financial statements on a government-wide basis. x Fund financial statements – presents governmental, proprietary and fiduciary fund financial statements, with the focus on major funds within each fund type. x Measurement focus for governmental activities – in the government-wide financial statements all activities, including the governmental activities, are reported using the economic resources measurement focus and accrual basis of accounting. The current financial resources focus and modified accrual basis of accounting are followed for the governmental fund financial statements. x Budgetary reporting – the display of both the original adopted budget and the revised budget in the budgetary comparison schedules is required by GAAP. These schedules are only required for the General Fund and major special revenue funds; these statements are presented as part of the basic financial statements. The Authority has presented this information for the proprietary funds in Other Supplementary Information. x Required narrative analysis – the financial statements are required to be accompanied by narrative introduction and analytical overview of the government’s financial activities in the form of “Management’s Discussion and Analysis” (MD&A). 3 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) As presented below, the financial section of the Comprehensive Annual Financial Report (CAFR) for the Authority consists of this discussion and analysis, the basic financial statements and required supplementary information (other than MD&A). There are also additional non-required supplementary schedules presented after the basic financial statements. The basic financial statements include the government-wide financial statements, fund financial statements, including the budgetary statements for the general fund and major special revenue funds, and notes to the financial statements. Government-wide Financial Statements The government-wide financial statements (see pages 14 – 16) are designed to provide a broad overview of the Authority’s finances in a manner similar to those used by private businesses. All of the activities of the Authority, except those of a fiduciary nature, are included in these statements. The activities of the Authority are broken down into two columns on these statements – governmental activities and business-type activities. A total column for the Authority is also provided. x The governmental activities include the basic services of the Authority including general government (administration), regional planning, transportation demand management and regional customer services. Grants and general revenues generally support these activities. x The business-type activities include the private sector type activities which are transit service operations and light rail transit. These activities are partially supported by user charges and provide substantial benefits, both direct and indirect, to the public at large. The Statement of Net Position presents information on all of the Authority’s assets and liabilities, both current and noncurrent, with the difference between the two reported as net position. The focus on net position is designed to be similar to the emphasis for businesses. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. To assess the overall health of the Authority, other indicators, including non-financial indicators like the Authority’s tax base and the condition of its capital assets, should also be considered. 4 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) The Statement of Activities presents information showing how the Authority’s net position changed over the most recent fiscal year. Since full accrual accounting is used for the government-wide financial statements, all changes to net position are reported at the time that the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. This statement also focuses on both the gross and net costs of the various functions of the Authority, based only on direct functional revenues and expenses. This is designed to show the extent to which the various functions depend on general taxes and revenues for support. Fund Financial Statements Also presented are more traditional fund financial statements for governmental funds, proprietary funds and fiduciary funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or conditions. Funds are used to ensure and demonstrate compliance with finance-related legal requirements as well as for managerial control to demonstrate fiduciary responsibility over the assets of the Authority. Governmental funds – Governmental funds are used to account for most of the Authority’s basic services. Unlike the governmental activities column on the government-wide financial statement, these fund financial statements (pages 17 - 22) focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in looking at the Authority’s near-term financial requirements. Since the governmental activities on the statements focus on near-term spendable resources, while the governmental activities on the government-wide financial statements have a longer term focus, a reconciliation of the differences between the two statements is provided following the fund financial statements and is also provided in Note 2 (pages 35 - 36). Proprietary funds – Proprietary funds are used to account for business-type activities of the Authority. Enterprise funds are used for activities that primarily serve customers outside the governmental unit. The proprietary fund financial statements (pages 23 - 25) are prepared using the same long-term focus as the government-wide financial statements. The enterprise funds generally provide information similar to the business-type activities column of the governmentwide financial statements, but provide more detail and additional information (i.e., cash flows). Notes to the Financial Statements – The notes to the financial statements (pages 26 – 47) provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements and should be read with the financial statements. Required supplementary information other than MD&A – Governments have an option of including the budgetary comparison statements of the general fund and major special revenue funds as either part of the fund financial statements within the basic financial statements or as required supplementary information after the footnotes. The Authority has chosen to present these budgetary statements as part of the basic financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS The following tables and analysis discuss the financial position and changes to the financial position for the Authority as a whole as of and for the year ended June 30, 2013, with comparative information for the previous year. 5 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) Net Position Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed Statement of Net Position as of June 30, 2013 compared to the prior year: Condensed Statement of Net Position As of June 30 (in thousands of dollars) Governmental Activities 2013 Current and other assets Noncurrent assets Cash and cash equivalents Deferred charges Capital assets $ Business-type Activities 2012 51,642.3 $ - 2013 Total Primary Government 2012 $ Percent Change 2013 2012 75,408.8 $ 158,634.5 $ 123,438.4 28.5% 48,029.6 $ 106,992.2 - 23,448.7 696.1 85,449.3 14,833.2 635.7 91,927.9 23,448.7 696.1 86,648.4 -36.7% -8.7% 6.1% 1,199.1 14,833.2 635.7 90,619.2 $ 52,951.0 $ 49,228.7 $ 213,080.3 $ 185,002.9 $ 266,031.3 $ 234,231.6 13.6% $ 2,531.4 164.9 $ 1,233.6 218.7 $ $ $ $ 30,739.9 97,905.6 47.3% -5.9% Total liabilities $ 2,696.3 $ 1,452.3 $ 134,738.4 $ 127,193.2 $ 137,434.7 $ 128,645.5 6.8% Net position: Net Investment in capital assets, Restricted Unrestricted $ 1,308.7 2,117.8 46,828.2 $ 1,199.1 188.8 46,388.5 $ 8,437.7 8,286.5 61,617.7 $ 6,528.6 120.7 51,160.6 $ $ $ 50,254.7 $ 47,776.4 $ 78,341.9 $ 57,809.9 $ 128,596.6 Total assets Other liabilities Long-term liabilities Total net position 1,308.7 42,750.3 91,988.1 29,506.3 97,686.9 45,281.7 92,153.0 9,746.4 10,404.3 108,445.9 7,727.7 309.5 97,549.1 26.1% 3261.7% 11.2% $ 105,586.3 21.8% The Authority’s total net position increased $23.0 million in FY 2013, comprised of an increase of $2.5 million in governmental activities and an increase of $20.5 million in business-type activities. Total net position of the Authority is $128.6 million, of which $108.4 million is unrestricted. Of the $128.6 million total net position, $9.7 million are the Authority’s net investment in capital assets used to acquire those assets. The Authority uses these capital assets to provide services to the region’s citizens; consequently, it is not the Authority’s intention to sell these assets, and they are therefore not available for future spending. The capital assets are reported net of related debt; as discussed in the Capital Assets and Debt Administration section (pages 10 - 11), the Authority has pledged future transportation excise tax revenues to repay the outstanding debt obligations. The capital assets themselves are not intended to be used to liquidate these liabilities. Approximately $108.4 million of the Authority’s net position (84.3% of the total) represents unrestricted resources that may be used to meet the Authority’s ongoing obligations to citizens, member agencies, contractors and creditors within the respective governmental and businesstype activities. In fiscal year 2013 Business-type restricted assets include $7.9 million for cash escrowed for debt service. The remaining $2.5 million reflects resources that are subject to other external restrictions. The governmental activities reported an increase of $0.4 million (0.9%) of unrestricted net position over the prior year largely attributed to sales tax collection increases which were in excess of increases to expense activities of the Authority. The significant increase of $10.5 million of unrestricted net position over the prior year in business-type activities is primarily due to PTF transfers to the Valley Metro Rail Fund for capital projects to be expended in FY 2014 and FY 6 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) 2015 ($17.9 million). The increase in the Rail fund was offset by a $7.5 million decrease in the Transit Services unrestricted net position. Changes in Net Position The following table compares the revenues and expenses of the Authority for the current and previous fiscal year. The increase (decrease) in net position for each year represents the extent to which revenues were over (under) expenses during the year. Changes in Net Position Fiscal year ended June 30 (in thousands of dollars) Governmental Activities 2013 REVENUES Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Sales taxes Interest earnings Other $ 2012 176.0 13,102.6 $ EXPENSES Governmental activities: Regional planning Transportation demand management Regional customer services Administration AZ Lottery fund disbursements Business-type activities: Transit service operations Light rail transit 2013 153.4 13,601.9 $ Total Primary Government 2012 137.0 9.3 109.8 16.6 131,855.7 126,281.9 56,390.3 58,369.6 188,246.0 184,651.5 1.9% 1,245.0 1,587.1 8,200.1 1,988.9 10,200.1 1,287.4 1,391.3 8,044.5 1,820.5 10,346.0 1,245.0 1,587.1 8,200.1 1,988.9 10,200.1 1,287.4 1,391.3 8,044.5 1,820.5 10,346.0 -3.3% 14.1% 1.9% 9.3% -1.4% -19.2% 50.6% - $ - - - 25,558.8 1,337.1 31,347.3 - $ Percent Change 112,353.3 73.1 100.2 - $ 2012 118,336.0 114.1 127.0 - 25,865.9 10,717.0 19,661.1 2013 26,041.9 23,819.6 19,661.1 118,336.0 251.1 136.3 - Total revenues Business-type Activities 25,712.2 14,939.0 31,347.3 1.3% 59.4% -37.3% 112,353.3 182.9 116.8 5.3% 37.3% 16.7% 91,327.3 50,687.2 113,091.6 33,665.2 91,327.3 50,687.2 113,091.6 33,665.2 Total expenses 23,221.2 22,889.7 142,014.5 146,756.8 165,235.7 169,646.5 -2.6% Excess (deficit) before transfers Transfers in (out) 108,634.5 (106,156.2) 103,392.2 (108,464.1) (85,624.2) 106,156.2 (88,387.2) 108,464.1 23,010.3 15,005.0 - 53.4% N/A 15,005.0 53.4% Increase (decrease) in net position $ 2,478.3 $ (5,071.9) $ 20,532.0 $ 20,076.9 $ 23,010.3 $ The largest sources of revenue for the Authority are sales taxes (62.9%). The major funding sources of governmental activities are sales taxes (89.7%) and federal and state grants (9.9%). The major funding sources for business-type activities are federal grants (53.9%) and charges for services to member cities (45.9%). The Authority’s overall revenues increased by $3.6 million, or 1.9%, compared to last fiscal year. Total revenues of governmental activities increased by $5.5 million, (4.4%) over the previous year due to increased sales tax revenues ($6.0 million) which were offset by reductions in Arizona Lottery Fund revenues (-$0.4 million). All other governmental program revenues increased by $0.1 million. Program revenues of business-type activities decreased by $2.0 million or 3.4%, compared to last fiscal year. Federal Transit Administration (FTA) capital grants for bus fleet and facilities decreased by (-$11.7 million) while FTA operating grants increased by $9.4 million. Charges for Services increased by $0.3 million. Spending of the Authority’s sales tax revenues is limited to funding those activities necessary to implement the Proposition 400 Transit Life Cycle Program (TLCP). The Public Transportation Fund (PTF) revenues are restricted to the implementation of the transit element of the Regional 7 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) Transportation Plan (RTP). Regional Area Road Fund (RARF) revenue is limited to fund administration in the General Fund and planning activities. Business-type activities are the largest users of resources for the Authority with $142.0 million of expenses (85.9%) which include Transit Service operations and Light Rail Transit lead agency disbursements. Governmental activities expended $23.2 million, with the largest being AZ Lottery Fund Disbursements of $10.2 million and Regional Customer Services of $8.2 million. Administration, Regional Planning, and Transportation Demand Management activities totaled $4.8 million for the year. Total Primary Government expenses decreased by $4.4 million, or 2.6%, compared to last fiscal year. The governmental expenses increased by $0.3 million, or 1.4%, over the prior year. AZ Lottery Fund Disbursements were $10.2 million for the year, down (-$0.1 million) or 1.4%. All other governmental activity expenses increased by $0.4 million or 3.4%. Business-type activity expenses were decreased by $4.7 million, or 3.2%, compared to the prior year. The decreases in business-type activity expenses were primarily due to $20.3 million in reductions to capital conveyances of bus fleet and bus stop facilities to Member Cities. ($8.1 million expended in FY 2013 versus 28.4 million expended in FY 2012) The amounts of capital conveyances fluctuate from year to year based on cyclical needs to replace bus fleet. The capital conveyance decreases were offset by expense increases of $17.0 million in the Valley Metro Rail (VMR) rail fund due to increasing lead agency disbursements for construction activities ($14.2 million) and structural changes to staffing levels ($2.8 million) related to replacement of contracted staff for vehicle maintenance with in-house staff. FINANCIAL ANALYSIS OF THE AUTHORITY’S FUNDS As previously mentioned, the Authority maintains fund accounting to demonstrate compliance with budgetary and legal requirements. The following is a brief discussion of financial highlights from the fund financial statements. Governmental Funds The focus of the governmental funds financial statements (pages 17 – 22) is to provide information on near-term inflows, outflows and balances of spendable resources. The fund balance of the governmental funds is $49.7 million, an increase of $2.3 million, or 4.8%, from the previous year. Of the $49.7 million total fund balance, the Authority has designated $2.1 million restricted for special purpose activities the remainder is in unrestricted fund balance in the General Fund (see Note 6 - page 40). Unrestricted fund balance may serve as a useful indicator of a government’s net resources available for spending at the end of the year. Of the $49.7 million fund balance, $47.5 million is unrestricted. The General Fund accounts for activities that include regional customer service, financial management and agency administration. General Fund revenues increased $5.5 million (4.4%) over the previous year. Public Transportation Fund (PTF) sales tax revenue increased by $5.9 million (5.5%) in FY 2013 to $113.8 million. Regional Area Road Funds (RARF) sales tax revenues increased slightly by $0.1 million (2.1%) in FY 2013 to $4.6 million. The sales tax revenue increase was due to the improving economy in the region. The remaining General Fund revenues decreased by $0.5 million, primarily the AZ Lottery Funds which reduced by $0.4 million (3.8%) from $11.6 to $11.2 million. General Fund expenditures increased by $0.5 million (2.3%) from $20.1 to $20.6 million. Excess General Fund revenues over expenditures were $109.5 million for the year versus $104.5 million in the prior year, up $5.0 million or 4.8%. 8 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) The Transit Planning Fund accounts for activities related to the development of strategies to promote social and economic well-being of the community through the provision of an efficient and effective regional transit system. Revenues decreased due to the reduction of FTA grant awards received, down $72,000 to $228,022. Expenditures decreased slightly from $1.3 million to $1.2 million due to reduced planning activities during the year. Prior to 2006, sales taxes allocated to the Transit Planning Fund were shown as revenues. RARF sales tax revenues are designated for transit planning efforts. These monies are now shown as transfers in. Total transfers into the Transit Planning Fund from the General Fund were $1.0 million, with no significant change versus the prior year. The Transportation Demand Management Fund accounts for activities related to the county-wide ridesharing program, trip reduction program and clean air campaign. From the prior year, revenues increased $0.2 million (11.1%) to $1.6 million from federal CMAQ and state and county grants. Expenditures increased $0.2 million (14.1%) to $1.6 million from the prior year due to increases in the ridesharing program and other activities. Proprietary Funds The proprietary fund financial statements (pages 23 – 25) are prepared on the same accounting basis and measurement focus as the government-wide financial statements, but provide additional detail since each enterprise fund is a major fund and is shown discretely on the fund statements. The Transit Service Operations Fund accounts for the activities related to the operations of local and express bus, paratransit and vanpool services for the region. Net position increased by $2.7 million over the prior year to $28.6 million. Operating revenues ($20.4 million) increased by $4.5 million while operating expenses ($61.4 million) decreased by $3.9 million. Decreases in local and express bus service costs, paratransit service costs and depreciation expense contributed to the overall operating expenses decrease. Non-operating expenses ($26.2 million) decreased by $20.2 million, primarily due to the reduction in capital conveyance of bus fleet and facilities to member cities. Capital Contributions ($26.7 million) were down by $11.5 million due to fewer bus fleet and facility purchases during the year. Net transfers in from the General Fund ($50.0 million) were down by $14.5 million. The Valley Metro Rail Fund accounts for staffing and administrative services that are contractually provided by the Authority to Valley Metro Rail, Inc. (VMR) and the PTF sales tax revenues and expenses of such funds related to the Regional Transportation Plan approved light rail projects. Valley Metro Rail, Inc. is a nonprofit corporation organized for the purpose of planning, designing, constructing, and operating the light rail transit project in metropolitan Phoenix (see Note 1(a) on page 26). The Valley Metro Rail Fund has net position of $49.8 million as of June 30, 2013 as compared to net position of $31.9 million at the end of the previous year. In fiscal year 2013 the Valley Metro Rail Fund received 43.2% of the total PTF sales tax revenues distributed to the Authority from the Arizona Department of Revenue, totaling $49.2 million and received 11.0% of the $4.6 million RARF sales tax revenue received by the Authority, totaling $0.5 million. Additionally, the Valley Metro Rail Fund received $11.2 million of transfers in of 2009 Bond proceeds from the Transit Service Operations Fund for VMR capital expenditure reimbursements. GENERAL FUND BUDGETARY HIGHLIGHTS The Authority revised the adopted budget during the fiscal year, reducing the overall budget from $277.1 million to $276.4 million. The primary change was a reduction to the operating budget from $90.8 million to $90.1 million. For the year ended June 30, 2013, actual expenditures in the General Fund were over the adopted budget amounts by $10.0 million. The variance was 9 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) attributable to the incorporation of AZ Lottery fund disbursements of $10.2 million as General Fund expenditures which were not included in the annual budget. In prior year financial reporting, the AZ Lottery Fund Proceeds and Disbursements were reported as fiduciary funds and not included in the General Fund transactions. The remaining General Fund activities were below budget by $0.2 million for the year. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets As of June 30, 2013, the Authority had $91.9 million invested in various capital assets, net of accumulated depreciation, for its governmental and business-type activities. The overall net increase in the Authority’s capital assets for the current fiscal year was $5.3 million, an increase of 9.1% for governmental activities and an increase of 6.1% for business-type activities for the current year. Major capital asset events in the current year attributing to the increase included the following: x x Transit Fleet additions accounted for $4.7 million of the net change. Depreciation expense in the current year totaled $9.9 million, $9.4 million for business type capital assets and $0.5 million for governmental activities capital assets. The following table provides a breakdown of capital assets of the Authority at June 30, 2013 with comparative information for the previous year. Additional information on the Authority’s capital assets may be found in Note 7 on pages 41 – 42. Capital Assets, Net of Accumulated Depreciation As of June 30 (in thousands of dollars) Governmental Activities 2013 Non-depreciable assets: Land Work-in-progress Depreciable assets: Transit fleet Vehicles Building Site improvements Computers & software Ticket Vending Machines Equipment Furniture & fixtures Infrastructure Total assets $ 2012 - $ 75.6 369.8 221.9 541.8 99.6 $ Business-type Activities 1,308.7 2013 - $ 5,292.0 1,957.5 300.4 187.6 572.6 138.6 $ 1,199.2 2012 $ 60,354.6 20.7 11,935.2 6,201.7 1,208.2 3,620.0 29.3 $ 90,619.2 10 Total Primary Government 5,292.0 2,515.4 2013 $ 55,710.4 12,226.3 6,768.1 44.1 2,884.3 8.7 $ 85,449.3 5,292.0 1,957.5 2012 $ 60,354.6 96.3 11,935.2 6,571.5 221.9 1,208.2 4,161.8 99.6 29.3 $ 91,927.9 $ Percent Change 5,292.0 2,515.4 0.0% -22.2% 55,710.4 12,226.3 7,068.5 231.7 3,456.9 147.3 - 8.3% 100.0% -2.4% -7.0% -4.2% 100.0% 20.4% -32.4% 0.0% 86,648.5 6.1% Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) Debt Administration At June 30, 2013, the Authority had total bonded debt outstanding (including unamortized premium) of $96.8 million related to business-type activities. The Authority has pledged future transportation excise tax revenues to repay this outstanding debt. Business-type Activities 2013 (in millions of dollars) Revenue bonds payable Plus unamortized premium: Bond premium payable $ 2012 92.7 $ 4.1 Total $ 96.8 97.8 4.6 $ 102.4 The Authority’s current bond ratings on transportation excise revenue tax bonds are AA+ from Standard & Poor’s and AA from Fitch. Additional information on the Authority’s bonded debt and other long-term liabilities can be found in Note 10 on pages 43 - 44. ECONOMIC FACTORS and NEXT YEAR’s BUDGET RPTA undertook a number of key initiatives during FY 2013, as the agency continues the implementation of the TLCP operating and capital projects. Funding for these initiatives comes from a combination of regional sales tax revenues member city service payments and federal grants. The key initiatives for fiscal year 2013 included: East Valley Bus Service Unification On January 24, 2013, the Authority’s Board of Directors unanimously approved an action to authorize the CEO to execute a contract with First Transit, Inc. for unified East Valley fixed route bus operations and maintenance. This action unifies the RPTAmanaged bus operations in Mesa with bus operations in Tempe, which were managed under a City of Tempe contract. With the unified bus operations contract, management staffing will be streamlined and economies of scale will be realized for purchasing, training and administrative functions. In addition, it will equate to lower operating costs as route scheduling is optimized using the two existing Mesa and Tempe bus operations facilities. The new service delivery contract took effect July 1, 2013 and will deliver cost savings in fiscal year 2014. Fare increase On March 1, 2013, the Authority implemented a region-wide fare increase to maintain the cost sharing relationship between passenger fares and transportation tax subsidies. The $.25 increase to the passenger cost of a single ride was the first fare increase since 2009 and raised the fare from $1.75 to $2.00. (up 14.3%) Paratransit fares for ADA certified persons increased from $3.50 to $4.00. (up 14.3%) The new fare structure will maintain the Boardadopted target of 25% fare recovery ratio for region-wide fixed route transit services. East Valley Dial-a-Ride Program On July 1, 2012, the Authority commenced a pilot Paratransit service program to serve persons with disabilities and eligible seniors with a new service delivery model. The new taxi cab delivery model incorporates greater efficiency utilizing resources from the private sector, while allowing the custom, door-to-door service that passengers need in their daily 11 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) travels. In its first year, the program was favorably accepted by the passengers and reduced the cost per trip from $42.40 under the former program to $26.64 per trip under the new program. Program cost of operation was $6.8 million in FY 2013 versus $8.8 million in FY 2012, a $2.0 million savings. Growth in passenger usage was 30% during the year and poses a challenge to long term sustainability should ridership continue to grow rapidly in response to the improved level of services provided. Next Year’s Budget The adopted FY 2014 combined operating and capital budget is $363.6 million (up approximately 31% from fiscal year 2013). Public Transportation Funds are projected to increase by 5% to $120.2 million with continuing improvement to region’s economy. Transit Service Agreements (TSA) are increasing due to the integration of east valley bus service to be operated by RPTA in fiscal year 2014. Bus transit services formerly operated by the City of Tempe will be operated by the RPTA and funding from Tempe and other member cities will increase the TSA’s to $30.6 million, up $13.9 million. In FY 2014 RPTA is collecting fare revenues ($14.2 million) and depositing the fares to the City of Phoenix for distribution back to agencies funding the operating costs. In prior years, the fares were retained by the contractor and credited against service billings. The change will improve transparency of full costs of operation and fare revenue collections. AZ Lottery Proceeds and Disbursements are included in the annual budget in FY 2014 ($11.2 million). In FY 2013 and prior years the Lottery Funds were treated as fiduciary funds and not included in the annual budget. The RPTA deferred its planned FY 2013 bond issue of $70.0 million to FY 2014 due to schedule delays in cash requirements for light rail capital projects. The FY 2014 bond issue ($114.2 million) is anticipated to occur in January 2014. RPTA Operating and Capital Budgets Fiscal Years 2014 and 2013 Sources of Funds Funding Sources Public Transportation Funds Transit Service Agreements Federal Grants METRO Rail Reimbursement Fixed Route Fare Revenues AZ Lottery Proceeds Regional Area Road Funds Other Revenues Bond Proceeds Use of Bond Proceeds Use of Fund Balance Total FY 2014 $ $ 120,246 $ 30,573 28,396 15,389 14,167 11,200 4,584 3,104 114,150 21,810 363,619 $ FY 2013 Change $ 114,600 $ 16,659 32,946 14,028 4,518 2,371 70,000 12,938 9,050 277,110 $ 5,646 13,914 (4,550) 1,361 14,167 11,200 66 733 44,150 8,872 (9,050) 86,509 Change % 5% 84% -14% 10% ----------1% 31% 63% 69% -100% 31% Increases to Uses of Funds in fiscal year 2014 versus 2013 total $86.6 million. Lead Agency Disbursements are up $12.7 million primarily due to bus procurement increases for the City of Phoenix. Transit service contracts and fuel costs are up $26.3 million due to the integration of east valley bus services whereby RPTA is operating services formerly provided by the City of Tempe. RPTA bus fleet capital purchases are down in FY 2014 by $11.4 million. Lead Agency Bond Disbursements are up by $20.1 million due to increased construction of light rail in Phoenix and Mesa. Carry forwards to Reserves are up by $21.0 million due to increases in future year light rail construction to be funded by PTF bond and sales tax proceeds. 12 Valley Metro Regional Public Transportation Authority Management’s Discussion and Analysis (Continued) RPTA Operating and Capital Budgets Fiscal Years 2014 and 2013 Uses of Funds Uses of Funds Lead agency disbursements Transit service contracts & fuel Capital RPTA & METRO Personnel Costs Bond Principal & Interest Contractual Agreements AZ Lottery Disbursements Lead Agency Bond Disbursments Other Costs Sub Total Carryforwards to Reserves Total FY 2014 $ FY 2013 Change $ Change % 81,914 $ 69,248 $ 12,666 80,416 54,080 26,336 23,457 34,895 (11,438) 24,471 22,960 1,511 13,042 10,741 2,301 4,280 3,494 786 11,200 11,200 42,585 22,500 20,085 10,766 8,692 2,074 292,131 226,610 65,521 71,488 50,500 20,988 $ 363,619 $ 277,110 $ 86,509 18% 49% -33% 7% 21% 22% -----89% 24% 29% 42% 31% The increases in capital expenses correspond to projects programmed in the Transit Life Cycle Program (TLCP) for fiscal year 2014. The budget is balanced; decreases in net position other than depreciation charges to capital assets are not anticipated for fiscal year 2014. FINANCIAL CONTACT The financial report is designed to provide a general overview of the Authority’s finances and to demonstrate accountability for the use of public funds. Questions about any of the information provided in this report, or requests for additional financial information should be addressed to the Authority’s Chief Financial Officer, Valley Metro RPTA, 101 N. 1st Avenue, Suite 1300, Phoenix, AZ 85003. 13 (This page intentionally left blank) Basic Financial Statements x Government-wide Financial Statements x Fund Financial Statements x Notes to the Financial Statements Valley Metro Regional Public Transportation Authority Statement of Net Position Fiscal Year June 30, 2013 Governmental Activities Business-type Activities Total $ 40,512,113 156,306 10,965,659 8,201 51,642,279 $ 75,378,871 7,765,660 153,646 23,692,772 1,250 106,992,199 $ 115,890,984 7,765,660 309,952 34,658,431 9,451 158,634,478 1,308,720 1,308,720 14,833,173 635,690 7,249,577 83,369,668 106,088,108 14,833,173 635,690 7,249,577 84,678,388 107,396,828 52,950,999 213,080,307 266,031,306 1,809,551 161,973 559,931 2,531,455 12,164,278 273,314 21,880,893 5,290,000 2,475,659 666,159 42,750,303 13,973,829 435,287 21,880,893 5,290,000 2,475,659 1,226,090 45,281,758 164,878 164,878 408,117 91,579,951 91,988,068 572,995 91,579,951 92,152,946 2,696,333 134,738,371 137,434,704 1,308,720 1,886,764 100,207 130,811 46,828,164 8,437,699 7,910,426 376,104 61,617,707 9,746,419 1,886,764 7,910,426 100,207 130,811 376,104 108,445,871 $ 50,254,666 $ 78,341,936 $ 128,596,602 Assets Current Assets: Cash and cash equivalents Restricted cash and cash equivalents Receivables Due from other governments Prepaid Items Total current assets Noncurrent Assets: Restricted cash and cash equivalents Deferred charges Capital assets, not being depreciated Capital assets, net of accumulated depreciation Total noncurrent assets Total assets Liabilities Liabilities: Current Liabilities Accounts payable Accrued salaries and benefits Due to other governments Revenue bonds payable Bond interest payable Compensated absences payable Total current liabilities Noncurrent liabilities: Compensated absences payable Revenue bonds payable, including unamortized premium Total noncurrent liabilities Total liabilities Net Position Net investment in capital assets Restricted for AZ Lottery proceeds Restricted for debt service Restricted for transit planning Restricted for transportation demand management Restricted for capital outlay-vanpool Unrestricted Total Net Position See accompanying notes to the financial statements. 14 Valley Metro Regional Public Transportation Authority Statement of Activities Fiscal Year June 30, 2013 Program Revenues Charges for Services Expenses Programs Governmental activities: Regional planning: Long range Short range Capital Program support Transportation demand management: Trip reduction Ridesharing Other programs Regional customer services: Marketing Call center Other programs AZ Lottery fund disbursements Administration: Executive director’s office Finance & management services Total governmental activities Business-type activities: Transit service operations Light rail transit Total business-type activities Total primary government $ $ 147,932 298,472 138,819 659,732 $ 176,058 - Operating Grants and Contributions Capital Grants and Contributions $ $ 364,784 1,032,753 480,217 - - 776,881 666,966 143,291 - - - 2,049,382 3,547,025 2,603,690 10,200,055 - 11,224,800 - 905,972 1,082,966 23,221,183 176,058 13,102,554 - 91,327,298 50,687,217 142,014,515 165,235,698 13,572,289 12,293,635 25,865,924 26,041,982 10,716,993 10,716,993 23,819,547 19,661,120 19,661,120 19,661,120 $ $ $ General revenues: Sales taxes: Public transportation funds Regional area road funds Interest earnings Other income Transfers in (out) Total general revenues & transfers Change in net position Net position - beginning Net position- ending (Continued) 15 Net (Expense) Revenues and Changes in Net Position Governmental Activities $ $ Business Type Activities 392,910 734,281 341,398 (659,732) $ 392,910 734,281 341,398 (659,732) (776,881) (666,966) (143,291) (776,881) (666,966) (143,291) (2,049,382) (3,547,025) (2,603,690) 1,024,745 (2,049,382) (3,547,025) (2,603,690) 1,024,745 (905,972) (1,082,966) (9,942,571) (905,972) (1,082,966) (9,942,571) (9,942,571) - $ $ 113,776,294 4,559,730 114,061 126,982 (106,156,202) 12,420,865 2,478,294 47,776,372 $ Total 50,254,666 (47,376,896) (38,393,582) (85,770,478) (85,770,478) $ 137,006 9,322 106,156,202 106,302,530 113,776,294 4,559,730 251,067 136,304 118,723,395 20,532,052 23,010,346 57,809,884 $ (47,376,896) (38,393,582) (85,770,478) (95,713,049) 78,341,936 105,586,256 $ 128,596,602 See accompanying notes to the financial statements. 16 Valley Metro Regional Public Transportation Authority Balance Sheet Governmental Funds June 30, 2013 Transit Planning General Transportation Demand Management Total Governmental Funds Assets Cash and cash equivalents Receivables Due from other governments Due from other funds Prepaid Items Total assets $ 40,457,223 154,041 10,483,670 115,499 8,201 $ 54,890 104,159 - $ 2,265 377,830 - $ 40,512,113 156,306 10,965,659 115,499 8,201 $ 51,218,634 $ 159,049 $ 380,095 $ 51,757,778 $ 1,645,488 133,409 - $ 42,245 16,597 - $ 121,818 11,967 115,499 $ 1,809,551 161,973 115,499 Liabilities and Fund Balances Liabilities: Accounts payable Accrued salaries and benefits Due to other funds Total liabilities Fund balances: Nonspendable: Prepaids Restricted: Unassigned: Total fund balances Total liabilities and fund balances 1,778,897 58,842 249,284 2,087,023 8,201 1,886,764 47,544,772 100,207 - 130,811 - 8,201 2,117,782 47,544,772 49,439,737 $ 51,218,634 100,207 $ 159,049 130,811 $ 380,095 49,670,755 $ 51,757,778 $ 49,670,755 Reconciliation of the balance sheet to the statement of net position Fund balances, total governmental funds balance sheet Amounts reported for governmental activities in the statement of net position are different because: Governmental capital assets Less accumulated depreciation 4,788,864 (3,480,144) Governmental compensated absences Net position of governmental activities, statement of net position See accompanying notes to the financial statements. 17 (724,809) $ 50,254,666 Valley Metro Regional Public Transportation Authority Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Fiscal Year Ended June 30, 2013 General Revenues: Sales taxes: Public transportation funds Regional area road funds Intergovernmental: AZ Lottery fund proceeds State & county grants & pass through grants Federal Transit Administration CMAQ Charges for services Interest earnings Miscellaneous Total revenues $ Expenditures: Current: Regional planning: Long range Short range Capital Program support Transportation demand management: Trip reduction Ridesharing Other programs Regional customer services: Marketing Call center Other programs Administration: Executive director’s office Finance & management services AZ Lottery fund disbursements Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances 113,776,294 4,559,730 $ $ - $ 113,776,294 4,559,730 224,522 3,500 228,022 480,217 1,032,753 40,159 1,553,129 11,224,800 480,217 364,784 1,032,753 176,058 114,061 126,982 131,855,679 - 147,932 298,472 138,819 659,732 - 147,932 298,472 138,819 659,732 - - 776,881 666,966 143,291 776,881 666,966 143,291 2,049,382 3,547,025 2,603,690 - - 2,049,382 3,547,025 2,603,690 905,972 692,811 10,200,055 575,762 20,574,697 1,244,955 1,587,138 905,972 692,811 10,200,055 575,762 23,406,790 109,499,831 (1,016,933) (34,009) 108,448,889 (107,249,370) (107,249,370) 1,016,936 1,016,936 76,232 76,232 1,093,168 (107,249,370) (106,156,202) 3 42,223 47,189,276 $ - Total Governmental Funds 11,224,800 140,262 176,058 114,061 83,323 130,074,528 2,250,461 Fund balance, beginning Fund balance, ending Transportation Demand Management Transit Planning 49,439,737 See accompanying notes to the financial statements. 18 100,204 $ 100,207 2,292,687 47,378,068 88,588 $ 130,811 $ 49,670,755 Valley Metro Regional Public Transportation Authority Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Fiscal Year Ended June 30, 2013 Net change in fund balances, total governmental funds $ 2,292,687 The change in net position reported for governmental activities in the statement of net position are different because: 1. Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of capitalized assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay expense ($575,762) exceeded depreciation expense ($466,169), net of the loss on capital assets (0) in the current period. 109,593 2. The governmental funds, under the modified accrual basis of accounting, do not report the unpaid compensated absences as an expenditure or liability, as they are not paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are used. 76,014 Change in net position of governmental activities, statement of activities See accompanying notes to the financial statements. 19 $ 2,478,294 Valley Metro Regional Public Transportation Authority Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual General Fund Fiscal Year Ended June 30, 2013 Budgeted Amounts Original Final Revenues: Sales taxes: Regional area road funds Public Transportation fund Intergovernmental: AZ Lottery Fund Proceeds Federal Transit Administration Charges for Services Public Transportation Bond Proceeds Interest earnings Miscellaneous Total revenues $ 4,518,000 114,600,000 $ 4,518,000 114,600,000 Actual Amounts $ 4,559,730 113,776,294 Variance with Final Budget $ 41,730 (823,706) 100,000 156,457 70,000,000 20,000 189,394,457 100,000 156,457 70,000,000 20,000 189,394,457 11,224,800 140,262 176,058 114,061 83,323 130,074,528 11,224,800 40,262 19,601 (70,000,000) 94,061 83,323 (59,319,929) 2,324,224 3,737,802 2,414,654 1,130,639 428,584 538,000 10,573,903 2,324,224 3,737,802 2,414,654 1,130,639 428,584 538,000 10,573,903 2,049,382 3,547,025 2,603,690 10,200,055 905,972 692,811 575,762 20,574,697 (274,842) (190,777) 189,036 10,200,055 (224,667) 264,227 37,762 10,000,794 178,820,554 178,820,554 109,499,831 (69,320,723) (136,871,147) (136,871,147) (131,257,748) (131,257,748) (107,249,370) (107,249,370) 24,008,378 24,008,378 Net change in fund balance 41,949,407 47,562,806 2,250,461 Fund balance, beginning 47,189,276 47,189,276 47,189,276 Expenditures: Current: Regional Customer Services: Marketing Call Center Other Programs AZ Lottery Fund Disbursements Executive director’s office Finance & management services Capital Outlay Total expenditures Excess of revenues over expenditures Other financing uses: Transfers in Transfers out Total other financing uses Fund balance, ending $ 89,138,683 See accompanying notes to the financial statements. 20 $ 94,752,082 $ 49,439,737 (45,312,345) $ (45,312,345) Valley Metro Regional Public Transportation Authority Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Transit Planning Fund Fiscal Year Ended June 30, 2013 Budgeted Amounts Original Final Revenues: Intergovernmental: Federal Transit Administration Miscellaneous Total revenues $ Expenditures: Current: Regional planning: Long range Short range Capital Program support Total expenditures Excess of revenues over expenditures Other financing uses: Transfers in Total other financing uses Net change in fund balance $ 224,522 3,500 228,022 111,942 447,782 326,445 979,828 1,865,997 111,942 447,782 326,445 1,271,804 2,157,973 147,932 298,472 138,819 659,732 1,244,955 35,990 (149,310) (187,626) (612,072) (913,018) (1,641,277) (1,933,253) (1,016,933) 916,320 1,641,277 1,641,277 1,728,253 1,728,253 1,016,936 1,016,936 (711,317) (711,317) (205,000) 100,204 $ Variance with Final Budget 224,720 224,720 - Fund balance, beginning Fund balance, ending 224,720 224,720 Actual Amounts 100,204 100,204 $ See accompanying notes to the financial statements. 21 (104,796) $ $ (198) 3,500 3,302 3 205,003 100,204 - 100,207 $ 205,003 Valley Metro Regional Public Transportation Authority Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Transportation Demand Management Fund Fiscal Year Ended June 30, 2013 Budgeted Amounts Original Final Revenues: Intergovernmental: State grants & pass through grants CMAQ Miscellaneous Total revenues $ Expenditures: Current: Transportation Demand Management: Trip reduction Ridesharing Other programs Total expenditures $ 620,000 594,000 456,151 1,670,151 Excess of revenues over expenditures Other financing uses: Transfers in Total other financing uses Net change in fund balance Fund balance, beginning Fund balance, ending 641,403 964,000 1,605,403 $ Actual Amounts 641,403 964,000 1,605,403 $ 620,000 594,000 456,151 1,670,151 480,217 1,032,753 40,159 1,553,129 Variance with Final Budget $ 776,881 666,966 143,291 1,587,138 (161,186) 68,753 40,159 (52,274) 156,881 72,966 (312,860) (83,013) (64,748) (64,748) (34,009) 30,739 64,748 64,748 64,748 64,748 76,232 76,232 11,484 11,484 - - 42,223 42,223 88,588 88,588 88,588 - 88,588 $ See accompanying notes to the financial statements. 22 88,588 $ 130,811 $ 42,223 Valley Metro Regional Public Transportation Authority Statement of Net Position Proprietary Funds Fiscal Year Ended June 30, 2013 Business-Type Activities - Enterprise Funds Transit Service Operations Total Proprietary Funds Valley Metro Rail Assets Current assets Cash and cash equivalents Restricted cash and cash equivalents Accounts Receivable Due from other governments Due from other funds Prepaid Items Total current assets $ Noncurrent assets Restricted cash and cash equivalents Deferred charges Capital assets, not being depreciated Capital assets, net of accumulated depreciation 28,609,976 7,765,660 153,646 7,712,008 1,250 44,242,540 $ 46,768,895 15,980,764 7,291,689 70,041,348 14,833,173 635,690 7,249,577 - $ 75,378,871 7,765,660 153,646 23,692,772 7,291,689 1,250 114,283,888 14,833,173 635,690 7,249,577 83,369,668 - 83,369,668 Total noncurrent assets 106,088,108 - 106,088,108 Total assets 150,330,648 70,041,348 220,371,996 Current liabilities: Accounts payable Accrued salaries and benefits Due to other funds Due to other governments Bond payable - current Bond interest payable Compensated absences payable 12,164,278 19,161 7,291,689 2,836,479 5,290,000 2,475,659 59,319 254,153 19,044,414 606,840 12,164,278 273,314 7,291,689 21,880,893 5,290,000 2,475,659 666,159 Total current liabilities 30,136,585 19,905,407 50,041,992 36,341 371,776 408,117 91,579,951 - 91,579,951 91,616,292 371,776 91,988,068 121,752,877 20,277,183 142,030,060 8,437,699 7,910,426 376,104 11,853,542 49,764,165 8,437,699 7,910,426 376,104 61,617,707 Liabilities Noncurrent liabilities: Compensated absences payable Revenue bonds payable, including unamortized premium Total noncurrent liabilities Total liabilities Net Position Net investment in capital assets Restricted for debt service Restricted for capital outlay-vanpool Unrestricted Total net position $ 28,577,771 See accompanying notes to the financial statements. 23 $ 49,764,165 $ 78,341,936 Valley Metro Regional Public Transportation Authority Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds Fiscal Year Ended June 30, 2013 Business-Type Activities - Enterprise Funds Transit Service Operations Operating Revenues: Charges for services Federal Operating Grants Miscellaneous Total operating revenues $ Operating Expenses: Local & express bus service Light rail staff and administration Paratransit service Vanpool service Safety and security Administrative and general Depreciation Total operating expenses Operating income (loss) Non-Operating Revenues (Expenses): Lead agency disbursements Federal Grant Subrecipient Disbursement IRS fuel tax credit Interest income Gain on disposal of capital assets AZ Lottery fund proceeds Capital conveyance Interest subsidy Interest expense Bond issuance expense Total non-operating revenues (expenses) Income (loss) before contributions and transfers Capital contributions Transfers in Transfers out Changes in net position Net position, beginning Net position, ending $ 13,572,289 6,819,945 4,130 20,396,364 Total Proprietary Funds Valley Metro Rail $ 12,293,635 5,192 12,298,827 $ 25,865,924 6,819,945 9,322 32,695,191 41,470,613 9,499,998 799,213 182,382 976 9,407,988 61,361,170 (40,964,806) 12,295,915 12,295,915 2,912 41,470,613 12,295,915 9,499,998 799,213 182,382 976 9,407,988 73,657,085 (40,961,894) (17,283,839) (200,000) 3,007,452 55,406 389,890 (4,163) (8,140,396) 564,261 (4,541,893) (60,392) (26,213,674) (38,391,302) 81,600 (38,309,702) (55,675,141) (200,000) 3,007,452 137,006 389,890 (4,163) (8,140,396) 564,261 (4,541,893) (60,392) (64,523,376) (67,178,480) (38,306,790) (105,485,270) 19,861,120 64,440,650 (14,420,550) 60,908,430 (4,772,328) 19,861,120 125,349,080 (19,192,878) 2,702,740 17,829,312 20,532,052 25,875,031 31,934,853 57,809,884 28,577,771 See accompanying notes to the financial statements. 24 $ 49,764,165 $ 78,341,936 Valley Metro Regional Public Transportation Authority Statement of Cash Flows Proprietary Funds Fiscal Year Ended June 30, 2013 Business-Type Activities - Enterprise Funds Transit Valley Total Service Metro Proprietary Operations Rail Funds Cash flows from operating activities Receipts from customers Receipts from federal operating grants Payments to suppliers Payments to employees Net cash provided by (used in) operating activities $ 13,418,643 6,819,945 (42,040,677) (1,089,072) (22,891,161) $ 12,293,635 (1,008,731) (8,743,771) 2,541,133 $ 25,712,278 6,819,945 (43,049,408) (9,832,843) (20,350,028) Cash flows from noncapital and related financing activities Transfers in - sales taxes Transfers out Lead agency disbursements AZ Lottery fund proceeds Due to/from other funds IRS fuel tax credit Federal grant subrecipient disbursements Net cash provided by (used in) noncapital and related financing activities 64,440,650 (14,420,550) (17,283,839) (4,163) 6,272,474 3,007,452 (200,000) 60,908,430 (4,772,328) (6,272,474) 41,812,024 49,863,628 91,675,652 Cash flows from capital and related financing activities Purchases of capital assets Conveyance of capital assets Principal payments on long-term debt Lead agency disbursements Capital contributions Interest subsidy Interest paid on capital debt Net cash provided by (used in) capital and related financing activities (14,188,009) (8,140,396) (5,085,000) 19,861,120 564,261 (5,058,087) (38,391,302) - (14,188,009) (8,140,396) (5,085,000) (38,391,302) 19,861,120 564,261 (5,058,087) (12,046,111) (38,391,302) (50,437,413) Cash flows from investing activities Interest received on investments Net cash provided by (used in) investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year From the Proprietary Funds Statement of Net Position Current cash and cash equivalents Noncurrent cash and cash equivalents Total cash and cash equivalents Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation (Increase) decrease in assets: Accounts receivable Due from other governments Other assets Increase (decrease) in liabilities: Accounts payable Accrued salaries and benefits Due to other governments Compensated absences payable Total adjustments Net cash provided by (used in) operating activities 125,349,080 (19,192,878) (17,283,839) (4,163) 3,007,452 (200,000) - 55,406 55,406 81,600 81,600 137,006 137,006 $ 6,930,158 44,278,651 51,208,809 $ 14,095,059 32,673,836 46,768,895 $ 21,025,217 76,952,487 97,977,704 $ 36,375,636 14,833,173 51,208,809 $ 46,768,895 46,768,895 $ 83,144,531 14,833,173 97,977,704 (40,964,806) 2,912 9,407,988 $ See accompanying notes to the financial statements. 25 (40,961,894) - 9,407,988 (153,646) 12,229,331 1,250 (14,019,498) - (153,646) (1,790,167) 1,250 5,607,640 2,492 (8,995,379) (26,031) 18,073,645 (22,891,161) 106,684 16,324,186 126,849 2,538,221 2,541,133 5,607,640 109,176 7,328,807 100,818 20,611,866 (20,350,028) $ $ Notes to the Financial Statements Valley Metro Regional Public Transportation Authority Notes to the Financial Statements Fiscal Year Ended June 30, 2013 1. Summary of Significant Accounting Policies The accounting policies of the Regional Public Transportation Authority (the Authority) conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following summary of the more significant accounting policies of the Authority is presented to assist the reader in interpreting these financial statements, and should be viewed as an integral part of this financial report. a. Financial Reporting Entity The Authority was established under the laws of the State of Arizona in 1985 along with the passage of a one-half of one percent sales tax increase to fund regional highway and public transportation improvements. The Authority was charged with developing a regional transit plan and developing and operating a regional transit system for Maricopa County (the County). In 1993, the Authority’s Board of Directors adopted Valley Metro as the identity for the regional transit system. Valley Metro was chosen to give the region’s buses a more recognizable identity and to help unify public transit systems in the County. The Authority is governed by a Board of Directors consisting of a member of the County Board of Supervisors and the mayors (or their designees) of the member cities and towns. For fiscal year 2012-13, the members included the cities of Avondale, Buckeye, Chandler, El Mirage, Glendale, Goodyear, Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe and Tolleson, the towns of Gilbert and Wickenburg, and Maricopa County. A municipality may have one elected official serve on the Authority’s Board of Directors by adopting an ordinance declaring its participation. In October 2002, the city councils of Glendale, Mesa, Phoenix and Tempe approved the formation of a public nonprofit corporation by the name of Valley Metro Rail, Inc. (VMR). The nonprofit corporation was organized for the purpose of planning, designing, constructing and operating the Light Rail Transit Project. In February of 2012, the Board of Directors for the Authority and VMR took action to appoint a single CEO to manage both financial entities under a single integrated agency. The Authority and VMR entered into an intergovernmental agreement providing for the single CEO to serve both organizations effective March 1, 2012. VMR contracts with the Authority for certain administrative functions, including personnel, administration and financial and accounting services. This activity is recorded in the Authority’s Valley Metro Rail Enterprise Fund. The Board of VMR is solely responsible for the governance of VMR, and the Authority’s Board of Directors has no responsibility for VMR. VMR is not a component unit of the Authority because the economic resources received by VMR are entirely for the direct benefit of VMR, and the Authority is not entitled to and has no ability to otherwise access any of the economic resources received or held by VMR. However, VMR is a related party of the Authority since the cities who are members of VMR’s Board of Directors are also members of the Authority’s Board of Directors. 26 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 b. Basic Financial Statements The government-wide financial statements (Statement of Net Position and Statement of Activities) report on the Authority as a whole. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support. The government-wide financial statements focus more on the sustainability of the Authority as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. Generally, the effect of interfund activity has been removed from the government-wide financial statements. Net interfund activity and balances between governmental activities and business-type activities are shown in the government-wide financial statements. The government-wide Statement of Net Position reports all financial and capital resources of the government. It is displayed in a format of assets less liabilities equal net position, with the assets and liabilities shown in order of their relative liquidity. Net position is required to be displayed in three components: 1) net investment in capital assets 2) restricted and 3) unrestricted. Net investment in capital assets is capital assets net of accumulated depreciation and reduced by outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. Restricted net position is those with constraints placed on their use by either: 1) externally imposed by creditors (such as through debt covenants), grantors, contributors or laws or regulations of other governments, or 2) imposed by law through constitutional provisions or enabling legislation. All net position that is not otherwise classified as restricted is shown as unrestricted. Generally, the Authority would first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. Reservations or designations of net position imposed by the reporting government, whether by administrative policy or legislative action of the reporting government, are not shown on the government-wide financial statements. Note 6 discusses the internal reservations and designations of fund balances/net position in the various funds to demonstrate the government’s intended use of those net position. The government-wide Statement of Activities demonstrates the degree to which the direct expenses of the various functions and segments of the Authority are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or users who purchase, use or directly benefit from goods, services or privileges provided by a particular function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, investment income and the other revenues not identifiable with particular functions or segments are included as general revenues. The general revenues support the net costs of the functions and segments not covered by program revenues. 27 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Also part of the basic financial statements are fund financial statements for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. During the year ended June 30, 2013, the Authority implemented the provisions of GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. GASB Statement No. 63 establishes reporting guidance for certain elements of the financial statements which are distinct from assets and liabilities. c. Basis of Presentation The accounts of the Authority are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts, which includes assets, liabilities, fund equity, revenues and expenditures/expenses. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. The following fund categories (further divided by fund type) are used by the Authority: Governmental Funds Governmental funds are used to account for the Authority’s general government activities. The focus of Governmental Fund measurement, in the fund financial statements, is upon determination of financial position and changes in financial position rather than upon net income. The Authority reports the following major Governmental Funds: The General Fund is the Authority’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Transit Planning Fund accounts for the receipt and expenditure of U.S. Department of Transportation, Federal Transit Administration, Federal Transit Technical Studies grant monies, regional area road fund sales taxes and member cities local match restricted for various planning studies. The Transportation Demand Management Fund accounts for the receipt and expenditure of various grant monies restricted for activities related to the countywide ridesharing program, trip reduction program and clean air campaign. Proprietary Funds Proprietary funds account for activities of the Authority similar to those found in the private sector, where cost recovery and the determination of net income are useful or necessary for sound fiscal management. The focus of proprietary fund measurement is upon the determination of operating income, changes in net position, financial position and cash flows. Currently, enterprise funds are the only type of proprietary funds that the Authority uses. 28 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Enterprise funds are used to account for those operations that provide services to the general public for a fee. Enterprise funds are also required for any activity whose principal revenue sources meet any of the following criteria: 1) any activity that has issued debt backed solely by the fees and charges of the activity, 2) if the cost of providing services for an activity, including capital costs such as depreciation or debt service, must legally be recovered through fees and charges, or 3) it is the policy of the Authority to establish activity fees or charges to recover the cost of providing services, including capital costs. The Authority reports the following major enterprise funds: The Transit Service Operations Fund accounts for the activities related to the operations of local and express bus, dial-a-ride and vanpool services for the region. The Valley Metro Rail Fund accounts for the activities related to the staffing and administrative services that are contractually provided by the Authority to Valley Metro Rail, Inc. and transfers in of the Public Transportation Fund (PTF) and the Regional Area Road Funds (RARF) sales tax revenues and expenses of such funds related to the Regional Transportation Plan approved light rail projects. d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund types are presented, in the fund financial statements, using the flow of current financial resources measurement focus and modified accrual basis of accounting. With this measurement focus, operating statements present increases and decreases in net current assets and unrestricted fund balance is a measure of available spendable resources. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon thereafter to pay liabilities of the current period. The Authority considers revenues available under modified accrual, if they are earned by June 30 (all eligibility requirements have been met) and the revenue is expected to be collected within 120 days after year-end. Expenditures are recorded when the related fund liability is incurred. This is the traditional basis of accounting for governmental funds and also is the manner in which these funds are normally budgeted. This presentation is deemed most appropriate to 1) demonstrate legal and covenant compliance, 2) demonstrate the sources and uses of liquid resources, and 3) demonstrate how the Authority’s actual revenues and expenditures conform to the annual budget. Since the governmental fund financial statements are presented on a different basis than the governmental activities column of the governmentwide financial statements, a reconciliation is provided immediately following each fund statement. These reconciliations briefly explain the adjustments necessary to transform the fund financial statements into the governmental activities column of the government-wide financial statements. Additional reconciliations are also provided in Note 2. 29 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 When applying the “susceptible to accrual” concept to intergovernmental revenues pursuant to GASB Statement No. 33 – Recipient Reporting for Certain Shared Non-exchange Transactions (Statement No. 33), receivables and revenues are recognized when the applicable eligibility requirements, including time requirements, are met. Resources transmitted before the eligibility requirements are met are reported as deferred revenue. Interest income is recognized on the modified accrual basis. Changes in fair value of investments are recognized in investment income at the end of the year. Sales taxes, entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. For the governmental fund statements, grant revenue earned but not expected to be received within 120 days of year end is deferred. The flow of economic resources measurement focus emphasizes the determination of net income. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. On the proprietary fund financial statements, operating revenues are those that flow directly from the operations of that activity, i.e., charges to customers or users who purchase or use the goods or services of that activity. Operating expenses are those that are incurred to provide those goods or services. Non-operating revenues and expenses are items like investment income and interest expense that are not a result of the direct operations of the activity. e. Budgetary Basis of Accounting An annual budget of revenues and expenditures is prepared and adopted by the Board of Directors each fiscal year for all funds. The legal level of budgetary control is the total annual appropriated budget. Costs in excess of the total annual appropriated budget require approval of the Board of Directors. Transfers of appropriations between departments require the approval of the Chief Executive Officer. The annual budget is adopted on the modified accrual basis. Encumbrance accounting is used and all appropriations lapse at year end. Prior to final adoption, a proposed budget is presented to the Board of Directors for review and public comment is received. Final adoption of the budget must be on or before June 30 of each year. Budgetary comparison statements for the general fund and major special revenue funds must be presented as part of the basic financial statements or as required supplementary information. The Authority has chosen to present this information as part of the basic financial statements. These statements must display original budget, amended budget and actual results (on a budgetary basis). Budgetary comparisons for the major enterprise funds are presented in the combining statements following the notes to the financial statements. Where necessary, reconciliation has been provided of the adjustments required to convert the budgetary revenues and expenditures or changes in net position on a budgetary basis to revenues and expenditures/expenses or change in net position on a GAAP basis 30 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 f. Deposits and Investments State statutes authorize the Authority to invest in obligations of the U.S. Treasury and any of its agencies, corporations or instrumentalities, collateralized repurchase agreements, certificates of deposit and the State of Arizona’s Local Government Investment Pool (LGIP). Currently the Authority invests only in the LGIP, which is operated by the Arizona State Treasurer’s Office, as authorized by Arizona Revised Statues, §35-326. Arizona Revised Statutes §35-312 and §35-313 regulate authorized investments. Local Government Investment Pool investments are carried at fair value. The fair value of pooled investments is determined annually and is based on current market prices. The fair value of participants’ position in the pool approximates the value of the pool shares. The method used to determine the value of participants’ equity withdrawn is based on the book value of the participants’ percentage participation at the date of such withdrawal. The Authority maintains pooled cash and investments. Income from pooled cash and investments is allocated to the individual funds based on the fund’s month end cash balance in relation to the total pooled cash and investments. Authority management has determined that the investment income related to all funds except the Public Transportation Fund and Valley Metro Rail Enterprise Fund should be allocated to the General Fund. Each fund’s equity in the pooled cash and investments is tracked on an ongoing basis. In the event that a certain fund overdraws its share of pooled cash, the overdraft is reported as due to other funds at year end. g. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. h. Capital Assets All capital assets, whether owned by governmental activities or business-type activities, must be recorded and depreciated (unless the modified approach is used) in the government-wide financial statements. No long-term assets or depreciation are shown in the governmental fund financial statements. Capital assets are defined as assets with an initial, individual cost of more than $5,000 and an estimated useful life greater than one year. The Authority has no public domain infrastructure (e.g., roads, bridges, sidewalks and other assets that are immovable and of value only to the Authority) or capital construction projects. Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at the estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major improvements are capitalized and depreciated over the remaining useful lives of the related capital assets. 31 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Property, plant and equipment are depreciated using the straight-line method over the following estimated useful lives: Useful Life (Years) Assets Equipment Vehicles Cars and vans Buses greater than 30 feet Buses greater than 40 feet Computers and software Site improvements Buildings 3-20 4 10 20 3 16-30 46-50 Capital assets transferred between funds are transferred at their net book value (cost less accumulated depreciation) or net realizable value, if lower, as of the date of the transfer. i. Transactions Between Funds Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported in the fund financial statements as “due to/from other funds”. See Note 5 for further discussion of the interfund receivables/payables at June 30. Certain transactions occurring between funds that are combined within the same fund type or displayed in the same financial statement column for presentation in these annual financial statements have been eliminated from the financial statements. In the governmentwide financial statements, only the net interfund activity and balances between governmental activities and business-type activities are shown (reported as “internal balances”). j. Receivables Receivables primarily result from accrued member city service billings and various grants awarded by the Federal Transit Administration and the Federal Highway Administration. The grant receivables are passed through to the Authority and are due from the City of Phoenix, Maricopa Association of Governments, Maricopa County, and the Arizona Department of Transportation as reimbursement for eligible grant expenditures associated with operating, capital projects and capital maintenance. k. Compensated Absences Employees of the Authority are entitled to 15.0 - 31.5 paid time off days (vacation and sick leave) per calendar year - based on an eight-hour workday, depending upon length of service. For governmental funds, there is no legal requirement to accumulate expendable available financial resources to liquidate the obligation; thus expenditures are recognized in the governmental funds when payments are made to employees. The current portion of the accrued compensated absences liability is based on the average annual amount of leave charged over the preceding three years. Generally, resources from the General Fund are used to liquidate the governmental funds liabilities for compensated absences. 32 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 l. Long-term Obligation In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities on the Statement of Net Position. Bond premiums and discounts, as well as issuance costs and the difference between the reacquisition price and the net carrying amount of the old debt, are deferred and amortized over the life of the bonds using the straight-line method over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. m. Net Position In the government-wide financial statements, net position is reported in three categories: net investment in capital assets; restricted net position; and unrestricted net position. Net investment in capital assets is separately reported because capital assets make up a significant portion of total net position. Restricted net position accounts for the portion of net position restricted by parties outside the Authority. Unrestricted net position is the remaining net position not included in the previous two categories. n. Fund Balances Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable and spendable fund balances. Spendable fund balances include restricted, committed, assigned and unassigned fund balance classifications. The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form such as inventories, or are legally or contractually required to be maintained intact. Restricted fund balances are those that have externally imposed restrictions on their usage by creditors (such as through debt covenants), grantors, contributors, or laws and regulations. The committed fund balances are self-imposed limitations approved by the Authority’s Board of Directors, which is the highest level of decision-making authority within the Authority. Only RPTA’s Board of Directors can remove or change the constraints placed on committed fund balances. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board of Directors at a Board of Directors meeting. The Board of Directors must commit fund balances before the end of the fiscal year. Assigned fund balances are resources constrained by the Authority’s intent to be used for Specific purposes, but are neither restricted nor committed. The Board of Directors has authorized the Chief Executive Officer or designee to make assignments of resources for a specific purpose. The unassigned fund balance is the residual classification for the General Fund and includes all spendable 33 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 amounts not reported in the other classifications. Also, deficits in fund balances of the other governmental funds are reported as unassigned. When an expenditure is incurred, it is the Authority’s policy to use restricted fund balance first, then committed, assigned and unassigned fund balances as resources are available. o. Cash Equivalents The Authority considers short-term investments in the State of Arizona’s Local Government Investment Pool, mutual fund-money market, U.S. Treasury bills and notes with maturities of three months or less at acquisition date to be cash equivalents. p. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting financial period. Actual results could differ from these estimates. 34 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 2. Reconciliation of Governmental Fund Financial Statements to Government-Wide Statements The governmental fund financial statements are presented on a current financial resources measurement focus and modified accrual accounting basis while the government-wide financial statements are prepared on a long-term economic resources measurement focus and accrual accounting basis. Reconciliations briefly explaining the adjustments necessary to transform the fund financial statements into the governmental activities column of the government-wide financial statements immediately follow each fund financial statement. Additional reconciliations are provided below. Reconciliation of Governmental Funds Balance Sheet and the Government-Wide Statement of Net Position: Total Governmental Funds Assets Cash and cash equivalents Receivables Due from other governments Due from other funds Prepaid items Capital assets (net) Total assets Liabilties Accounts payable Accrued salaries and benefits Due to other funds Compensated absences Total liabilities Fund Balance/Net Position Total fund balance/net position $ 40,512,113 156,306 10,965,659 115,499 8,201 51,757,778 $ $ 1,809,551 161,973 115,499 2,087,023 $ 49,670,755 $ Reclassifications for Internal Balances and Eliminations Long-term Assets/ Liabilities 1,308,720 1,308,720 $ $ 724,809 724,809 $ $ 583,911 $ $ $ Statement of Net Position Totals (115,499) (115,499) $ (115,499) (115,499) $ 1,809,551 161,973 724,809 2,696,333 $ 50,254,666 - $ 40,512,113 156,306 10,965,659 8,201 1,308,720 52,950,999 When capital assets that are to be used in governmental activities are purchased, the costs of those assets are reported as expenditures in governmental funds, and thus a reduction in fund balance. However, the Statement of Net Position includes those capital assets among the assets of the Authority as a whole: Cost of capital assets Accumulated depreciation Capital assets, net $ $ 4,788,866 (3,480,146) 1,308,720 Interfund transactions between governmental activities of $115,499 are eliminated in the consolidation of these activities for the Statement of Net Position. 35 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Under the modified accrual basis of accounting, the governmental funds do not accrue for unpaid compensated absences in the amount of $724,809 as a liability, as they are not paid with expendable available financial resources. However, the Statement of Net Position includes the unpaid compensated absences as long-term liabilities regardless of when financial resources are used, and thus a reduction in net position. Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-Wide Statement of Activities: Total Governmental Funds Revenues Sales taxes Intergovernmental Interest earnings Charges for services Miscellaneous Total revenues $ 118,336,024 13,102,554 114,061 176,058 126,982 131,855,679 Capital Purchases $ - Depreciation and Disposals Compensated Absences $ $ - Statement of Activities Totals - $ 118,336,024 13,102,554 114,061 176,058 126,982 131,855,679 - 1,244,955 Expenditures/Expenses Current: Regional planning Transportation demand management Regional customer services AZ Lottery fund disbursements Administration Capital outlay Total expenditures/expenses and other uses 1,587,138 8,070,850 10,200,055 1,728,030 575,762 (575,762) 283,762 182,407 - (76,014) - 1,587,138 8,354,612 10,200,055 1,834,423 - 23,406,790 (575,762) 466,169 (76,014) 23,221,183 Other financing uses/changes in net position Transfers in Transfers out Net transfers 1,093,168 (107,249,370) (106,156,202) Net change for the year 1,244,955 $ 2,292,687 - - $ 575,762 $ (466,169) $ 76,014 1,093,168 (107,249,370) (106,156,202) $ 2,478,294 When capital assets that are to be used in governmental activities are purchased, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the cost of those assets is allocated over their useful lives and reported as depreciation expense. As a result, fund balance decreases by the amount of the financial resources expended for capital outlay ($575,762), whereas net position decreases by the amounts of disposals and depreciation expense charged for the year ($466,169). The governmental funds do not report the change in unpaid compensated absences in the amount of ($76,014) as expenditures, as they are not paid with expendable available financial resources. However, the Statement of Net Position includes the change in unpaid compensated absences as accrued expenses regardless of when financial resources are used, and thus a reduction in net position. 36 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 3. Deposits and Investments The Authority maintains a cash and investment pool that is available for use by all funds. Each fund type’s portion of this pool is displayed on the government-wide Statement of Net Position as “Cash and Investments”. a. Deposits The carrying amount of the Authority’s deposits at June 30, 2013, was $108,531,688 and the bank ledger balance was $108,566,961. The difference of $35,273 represents deposits in transit and outstanding checks. Of the bank balance, $250,000 was covered by federal depository insurance and $108,316,961 was covered by collateral held by the pledging financial institution in the Authority’s name. At June 30, 2013, cash held with the bond fund trustee was $22,454,064. Of this amount, $7,765,660 was held for the debt service payment on July 1st. The remaining amount of $14,688,404 was held with the trustee in a commercial money market account. b. Investments Interest Rate Risk. As a means of managing its exposure to fair value losses arising from increasing interest rates, the Authority’s investment policy provides for matching investment maturities with anticipated cash flow requirements while maintaining an emphasis on liquidity. Unless matched to a specific cash flow requirement, the Authority will not directly invest in securities maturing more than two years from the date of purchase. Historically, the Authority has limited its investments to participation in the State of Arizona’s Local Government Investment Pool (LGIP). As of June 30, 2013, the Authority’s investments in the LGIP, investing in money market mutual funds, have the weighted average maturities less than 90 days. Credit Risk. State statutes authorize the Authority to invest in obligations of the U.S. Treasury and any of its agencies, corporations or instrumentalities, collateralized repurchase agreements, certificates of deposit and the LGIP. The Authority’s investment policy does not further limit its investment choices. The LGIP is operated by the Arizona State Treasurer’s Office, as authorized by Arizona Revised Statutes §35-326. Arizona Revised Statutes §35-312 and §35-313 regulate authorized investments. The Authority’s investment in the LGIP is stated at fair value, which is the same as the value of the Authority’s pool shares. The LGIP does not receive a credit quality rating, however, the State Treasurer’s investment pool 7 had a weighted average rating of AA+ at year end as it was invested in obligations of the U.S. Government or obligations guaranteed by the U.S. Government. Investments at June 30, 2013 consist of the following: State of Arizona Local Government Investment Pool $ 7,504,065 Governmental Accounting Standards Board Statement No. 40, Deposit and Investment Risk Disclosures, provides for disclosures of custodial credit risk associated with investment securities. An exception is provided for investments in external investment pools and for investments in open-ended mutual funds. 37 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Cash and Investments at June 30, 2013 consist of the following: Carrying amount of the Authority’s deposits Investments in the LGIP Cash and investments with bond fund trustee Total cash and investments 4. $ 108,531,688 7,504,065 22,454,064 $ 138,489,817 Receivables and Due from Other Governments Receivables primarily result from accrued member city service billings and various grants awarded by the Federal Transit Administration and the Federal Highway Administration. The grant receivables are passed through to the Authority and are due from the City of Phoenix, Maricopa Association of Governments, Maricopa County, and the Arizona Department of Transportation as reimbursement for eligible grant expenditures associated with operating, capital projects and capital maintenance. Due from Other Governments at June 30, 2013 consist of the following: Due from Other Governments By Fund Type Governmental Funds Proprietary Funds Total Due from Other Governments Arizona State Treasurer-PTF Funds AZ Dept of Transportation City of Chandler City of Mesa City of Phoenix City of Scottsdale City of Surprise City of Tempe City of Tolleson Internal Revenue Service Maricopa Assoc. of Governments Maricopa County TRP/DOT Town of Gilbert Valley Metro Rail, Inc. Total Due from Other Governments $ 10,039,314 51,052 63,320 3,145 15,614 246,037 184,901 362,276 10,965,659 $ 38 $ $ 91,475 28,456 321,728 5,997,240 156,095 534,578 49,601 525,580 7,254 15,980,765 23,692,772 $ $ 10,039,314 142,527 28,456 321,728 6,060,560 3,145 156,095 550,192 49,601 525,580 246,037 184,901 7,254 16,343,041 34,658,431 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 5. Interfund Receivables/Payables and Interfund Transactions Interfund receivables and payables within the governmental activities and business-type activities are eliminated for the government-wide financial statements at June 30, 2013. The following interfund receivables and payables are included in the fund financial statements at June 30, 2013: Due from other Funds Valley Metro Rail General Due to other funds Governmental funds: Transit Planning Transportation Demand Management Total governmental funds Enterprise funds: Transit Service Operations Total enterprise funds Grand totals $ $ 115,499 115,499 115,499 $ $ Total - $ - 115,499 115,499 7,291,689 7,291,689 7,291,689 7,291,689 7,291,689 7,407,188 $ The interfund balances for the governmental funds at June 30, 2013 are short-term loans to cover temporary cash deficits in various funds. This occasionally occurs prior to grant and other reimbursements. The interfund balances within the business-type activities funds are amounts held in the Transit Service Operations Fund for debt service payments to be made by the Valley Metro Rail Fund and short-term loans to cover temporary cash deficits in pooled cash accounts. All interfund balances outstanding at June 30, 2013 are expected to be repaid within one year. 39 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Interfund transfers are primarily used for transfers of sales tax revenues from the General Fund to the various funds that receive earmarked sales tax revenues. Interfund transfers between the enterprise funds are for transfers of bond proceeds for reimbursements of light rail capital expenditures. The following interfund transfers are reflected in the fund financial statements for the year ended June 30, 2013. Transfers Out Transit Service Operations General Transfers In Governmental funds: Transit Planning Transportation Demand Management Total governmental funds $ Enterprise funds: Transit Service Operations Valley Metro Rail Total enterprise funds Grand totals 1,016,936 76,232 1,093,168 59,668,322 46,487,880 106,156,202 $ 107,249,370 Valley Metro Rail $ $ Totals - $ - 1,016,936 76,232 1,093,168 14,420,550 14,420,550 14,420,550 4,772,328 4,772,328 4,772,328 64,440,650 60,908,430 125,349,080 $ 126,442,248 $ $ Net transfers from governmental activities to business-type activities on the government-wide statement of activities to the enterprise funds are in the amount $106,156,202. 6. Fund Balance Classifications Fund Balance classifications reported in the governmental funds include the following: General Nonspendable Prepaids Spendable Restricted for AZ Lottery proceeds Regional Planning activities Clean Air Activities Unassigned $ 8,201 Transportation Demand Management Fund Transit Planning Fund $ - $ Totals - $ 8,201 $ 1,886,764 100,207 130,811 47,544,772 49,670,755 1,886,764 100,207 $ 47,544,772 49,439,737 $ 40 100,207 $ 130,811 130,811 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 7. Capital Assets A summary of capital asset activity, for the government-wide financial statements, for the year ended June 30, 2013: Balances, July 01, 2012 Governmental activities: Depreciable assets: Site Improvements Computers & software Equipment Vehicles Furniture & fixtures Total depreciable assets at historical cost $ Less accumulated depreciation for: Site Improvements Computers & software Equipment Vehicles Furniture & fixtures Total accumulated depreciation Governmental activities capital assets, net Business-type activities: Non-depreciable assets: Land Work in progress Total non-depreciable assets Increases 430,572 2,316,796 974,982 134,911 355,843 $ 156,090 193,674 143,484 82,514 Balances, June 30, 2013 Decreases $ - $ 586,662 2,510,470 1,118,466 217,425 355,843 4,213,104 575,762 - 4,788,866 (130,147) (2,129,238) (402,415) (134,914) (217,263) (3,013,977) (86,677) (159,348) (174,314) (6,876) (38,954) (466,169) - (216,824) (2,288,586) (576,729) (141,790) (256,217) (3,480,146) $ 1,199,127 $ 109,593 $ $ 5,292,000 2,515,411 7,807,411 $ 1,532,327 1,532,327 $ - (2,090,161) (2,090,161) $ 1,308,720 $ 5,292,000 1,957,577 7,249,577 Depreciable assets: Transit fleet Vehicles Building Site improvements Computers & software Ticket Vending Machines Equipment Furniture & fixtures Infrastructure Total depreciable assets at historical cost 103,227,209 13,390,733 8,686,758 271,461 7,014,973 127,037 - 12,839,709 26,921 1,214,922 1,189,176 29,424 (7,447,421) - 108,619,497 26,921 13,390,733 8,686,758 271,461 1,214,922 8,204,149 127,037 29,424 132,718,171 15,300,152 (7,447,421) 140,570,902 Less accumulated depreciation for: Transit fleet Vehicles Building Site improvements Computers & software Ticket Vending Machines Equipment Furniture & fixtures Infrastructure Total accumulated depreciation (47,516,788) (1,164,412) (1,918,669) (227,385) (4,130,630) (118,364) (55,076,248) (8,031,108) (6,169) (291,103) (566,400) (44,076) (6,750) (453,545) (8,673) (163) (9,407,987) 7,283,001 7,283,001 (48,264,895) (6,169) (1,455,515) (2,485,069) (271,461) (6,750) (4,584,175) (127,037) (163) (57,201,234) 77,641,923 5,892,165 Total Business-type capital assets being depreciated, net Business-type activities capital assets, net $ 85,449,334 $ 41 7,424,492 (164,420) $ (2,254,581) 83,369,668 $ 90,619,245 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Depreciation expense was charged to the following functions in the basic financial statements: Regional customer services Administration Transit service operations Total depreciation expense GovernmentWide $ 283,762 182,407 $ 466,169 BusinessType $ 9,407,987 9,407,987 $ The Authority’s enterprise funds in the business-type activities had construction commitments totaling $3.56 million at June 30, 2013. Only the currently payable portions of these contracts have been included in the accounts payable in the accompanying financial statements. 8. Due to Other Governments Payables to other governments primarily result from accrued member city billings for transportation services and lead agency disbursements for capital transportation projects which are funded by the Authority. Due to Other Governments at June 30, 2013 consist of the following: Due to Other Governments By Fund Type Governmental Funds Proprietary Funds Total Due to Other Governments City of Avondale City of Chandler City of Mesa City of Phoenix City of Scottsdale City of Surprise City of Tempe Gila River Indian Community Valley Metro Rail, Inc. Total Due to Other Governments $ - $ 42 $ $ 887 121,975 677,574 833,493 290,087 4,990 527,715 379,758 19,044,414 21,880,893 $ $ 887 121,975 677,574 833,493 290,087 4,990 527,715 379,758 19,044,414 21,880,893 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 9. Operating Leases The Authority leases office space and small office equipment under various operating lease agreements. Total lease expenditures were $957,279 for the fiscal year ended June 30, 2013. The future minimum lease payments under noncancelable and final option of the operating lease at June 30, 2013 were as follows: June 30 2014 2015 2016 2017 2018 2019-2023 2024-2026 Total $ 1,038,492 1,118,547 1,142,667 546,439 557,564 2,945,695 1,268,061 $ 8,617,465 10. Long-Term Liabilities a. Transportation Excise Tax Revenue Bonds In May 2009, the Board adopted the issuance of transportation revenue bonds, which are specifically for the purpose of payment or reimbursement of the costs of capital projects expenditures in the regional transportation plan. These bonds are payable solely from the revenues received by the Authority from the transportation excise tax revenues collected by the Arizona Department of Revenue. The bonds were issued on June 30, 2009 in two series. Series 2009A consisted of $73,795,000 transportation excise tax revenue bonds – tax exempt bonds and Series 2009B consisted of $26,280,000 transportation excise tax revenue bonds – federally taxable Build America Bonds. Annual installments of $2,265,000 to $9,260,000 will be made through 2025; interest ranges from 3.25 to 6.46 percent. The Authority has pledged future transportation excise tax revenues to repay a total of $100,075,000 in outstanding transportation revenue bonds. Proceeds of the bonds were used for improvements and expansions to the Authority’s bus and light rail projects. The bonds are payable solely from excise tax revenues and are payable through July 1, 2025. For the fiscal year ended June 30, 2013, the revenues available for service of this debt were $113,776,294 while total debt service requirements were $4,956,318 interest and $5,085,000 principal. Interest expense of $4,541,893 on the Statement of Revenues, Expenses and Changes in Fund Net Position, Proprietary Funds, includes Bank charges of $70 and the annual amortization of premium expense of $414,495. In addition, a portion of the bonds are qualified Build America Bonds. As such, $564,261 is received as a direct subsidy payment from the United States of America for a portion of the interest due on the bonds. 43 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 Transportation Excise Revenue Bonds annual debt service requirements at June 30, 2013 were as follows: Year Ending June 30 2014 2015 2016 2017 2018 2019-2023 2024-2025 Total Principal $ 5,290,000 5,555,000 5,835,000 6,085,000 6,380,000 36,965,000 26,615,000 $ 87,435,000 $ $ Interest 4,819,068 4,547,943 4,282,006 4,007,593 3,705,368 13,258,588 2,568,556 42,479,122 Total Debt Service $ 10,109,068 10,102,943 10,117,006 10,092,593 10,085,368 50,223,588 29,183,556 $ 129,914,122 Issuance Costs $ 60,392 60,392 60,392 60,392 60,392 301,962 31,767 $ 635,689 Premium Amortization $ 414,495 414,495 414,495 414,495 414,495 2,072,476 $ 4,144,951 The revenue bonds liability activity for the fiscal year ended June 30, 2013 was as follows: Balance, July 1, 2012 Revenue bonds payable Plus: Bond premium Total b. Additions Reductions Balance, June 30, 2013 Amount Due Within One Year $ 97,810,000 4,559,446 $ - $ (5,085,000) (414,495) $ 92,725,000 4,144,951 $ 5,290,000 - $ 102,369,446 $ - $ (5,499,495) $ 96,869,951 $ 5,290,000 Compensated Absences Compensated absences activity for the fiscal year ended June 30, 2013 is as follows: Balance, July 1, 2012 Compensated absences: Governmental activities Business-type activities $ 800,823 973,459 $ 1,774,282 Additions $ 597,381 798,034 $ 1,395,415 Reductions $ Balance, June 30, 2013 Amount Due Within One Year (673,395) (697,216) $ 724,809 1,074,277 $ 559,931 666,159 $ (1,370,611) $ 1,799,086 $ 1,226,090 11. Risk Management The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by commercial insurance purchased from independent third parties. The Authority purchases insurance coverage for property, general liability, automobile liability, umbrella liability, commercial crime, public entity employment practices liability, public entity management liability and excess liability. In addition, the Authority purchases workers’ compensation, employee life insurance and health and dental insurance coverage for all of its full44 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 compensation, employee life insurance and health and dental insurance coverage for all of its fulltime employees. Settled claims for these risks have never exceeded commercial insurance limits and there were no significant changes in insurance coverage from the prior year. Insurance coverage for transit operations is carried by the contracted operators of service; the operators indemnify the Authority for all liability arising from transit operations. 12. Retirement and Pension Plans a. Plan descriptions The Authority contributes to a cost-sharing, multiple-employer defined benefit pension plan; a cost-sharing multiple employer defined benefit health care plan; and a cost-sharing, multiple employer defined benefit long-term disability plan, all of which are administered by the Arizona State Retirement System (ASRS). The ASRS (through its Retirement Fund) provides retirement (i.e., pension), death and survivor benefits; the Health Benefit Supplement Fund provides health insurance premium benefits (i.e., a monthly subsidy); and the Long-Term Disability Fund provides long-term disability benefits. Benefits are established by state statute. ASRS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. ASRS issues a comprehensive annual financial report that includes financial statements and required supplementary information. The most recent report may be obtained by writing ASRS Financial Services Division, 3300 North Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling (602) 240-2000 or (800) 621-3778. b. Funding policy The Arizona State Legislature establishes and may amend active plan members’ and the Authority’s contribution rates. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.14 percent (10.90 percent for retirement and 0.24 percent for long-term disability) of the members’ annual covered payroll and the Authority was required by statute to contribute at the actuarially determined rate of 11.14 percent (10.25 percent for retirement, 0.65 percent for health insurance premium, and 0.24 percent for long-term disability) of the members’ annual covered payroll. The Authority’s contributions for the current and two preceding years, all of which were equal to the required contributions, were as follows. Retirement Fund Year ending June 30: 2013 2012 2011 $ 1,508,102 1,260,530 1,104,744 45 Health Benefit Supplement Fund Long-Term Disability Fund $ $ 95,636 83,182 72,342 35,312 30,713 30,653 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 13. Contractual and Other Commitments a. Underground Storage Tank Revolving Fund Replenishment In fiscal year 1994, the Arizona State Legislature allocated $6,000,000 to the Authority from the Arizona Area A portion of the underground storage tank revolving fund. Beginning with the first fiscal year and in each subsequent fiscal year that the Authority is allocated at least $2,000,000 from the Lottery, the amount allocated to the Authority will be reduced by a maximum of $2,000,000 each fiscal year until a total of $6,000,000 has been withheld to replenish the underground storage tank revolving fund. In the event the Authority does not receive at least $2,000,000 from the Lottery in a given year, no amounts will be withheld from the respective year’s allocation. The Authority received a Lottery distribution of $1,760,759 in fiscal year 1998 which is the only year the Authority has received a Lottery distribution. b. Commitments The Authority has entered into various contracts for the administration and operation of transit services, travel demand management services, and regional transit planning. Commitments under these contracts exist only to the extent that services are requested or provided, and all contracts provide for cancellation without cause. The outstanding commitments for FY 2013 were for the following projects: the Desert Sky Park-and-Ride, the East Baseline Park-and-Ride, and Bus Stop Improvements. At June 30, 2013, the Authority had outstanding contractual commitments for these services aggregating approximately $3.56 million. These commitments have not been recorded in the accompanying financial statements because the member cities either had not incurred the related expenses or had not requested reimbursement for the related expenses. Only the currently payable portions of these contracts have been included in accounts payable in the accompanying financial statements. 14. Contingencies As a sub-recipient of federal and state grant monies, amounts passed through or receivable from other agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Authority expects such amounts, if any, to be immaterial. 15. Related Party Transactions As mentioned in Note 1 (a), all of the five member cities of VMR’s Board of Directors are also member cities of the sixteen-member Authority’s Board of Directors. The Board members of the cities of Phoenix and Tempe represent their cities on both Boards. VMR contracts with the Authority for certain administrative functions, including personnel, administration, financial and accounting services, purchasing and computer support services. All VMR staff is hired and employed by the Authority but work solely under the direction of the VMR and its Board of Directors, through a contractual agreement with the Authority. For the period ended June 30, 2013, VMR incurred costs of $12,435,840 for services provided by the Authority. At June 30, 2013, the Authority reported $16,343,041 receivable from VMR and $19,044,414 payable to VMR. 46 Valley Metro Regional Public Transportation Authority Notes to the Financial Statements (Continued) Fiscal Year Ended June 30, 2013 16. Subsequent Event In November 2013, the Authority’s Board of Directors voted to authorize the second bond issue pursuant to the Master Resolution adopted in 2009. The Second Supplemental Resolution authorizes the issuance of up to $115,000,000 in Senior Lien Bonds, the proceeds of which will be used by METRO to fund capital projects outlined in the Regional Transportation Plan (RTP). The proceeds and associated debt service will be allocated to the rail program. The 2014 bond issuance is anticipated to have a par value of $115 million; with coupon rates of 4 percent and 5 percent, depending on the maturity; and sold at a premium. Yields are expected to be between 0.8% and 3.6% depending on the maturity. The True Interest Cost (TIC) is currently estimated to be around 3%. The Authority is rated by Standard & Poor at AA+ and by Fitch at AA. 47 Other Supplementary Information Valley Metro Regional Public Transportation Authority Schedule of Revenues, Expenses and Changes in Net Position – Budget to Actual Transit Service Operations Fund Fiscal Year Ended June 30, 2013 Actual Amounts (budgetary basis) Budgeted Amounts Original Final Operating Revenues: Charges for services Federal Operating Grants Miscellaneous Total operating revenues $ 17,810,530 3,104,833 20,915,363 $ 16,956,437 8,347,322 25,303,759 $ 13,572,289 6,819,945 4,130 20,396,364 Variance with Final Budget $ (3,384,148) (1,527,377) 4,130 (4,907,395) Operating Expenses: Local & express bus service Paratransit service Vanpool service Safety and security Administrative and general Contingency Capital outlay Total operating expenses Operating income (loss) 49,466,485 25,002,005 847,163 475,000 950,000 25,397,593 102,138,246 (81,222,883) 47,581,557 25,855,362 847,163 475,000 950,000 25,397,593 101,106,675 (75,802,916) 41,470,613 26,783,837 799,213 182,382 976 14,742,318 83,979,339 (63,582,975) (6,110,944) 928,475 (47,950) (292,618) 976 (950,000) (10,655,275) (17,127,336) 12,219,941 Non-Operating Revenues (Expenses): Other federal grants IRS fuel tax credit Interest income Proceeds from disposition of capital assets AZ Lottery Proceeds (Disbursements) Capital conveyence Interest subsidy Debt Service Bond issuance expense 350,000 124,683 (18,403,522) (10,241,318) (500,000) 350,000 124,683 (18,403,522) (10,241,318) (500,000) (200,000) 3,007,452 55,406 (4,163) (8,140,396) 564,261 (4,541,893) (60,392) (200,000) 2,657,452 55,406 (124,683) (4,163) 10,263,126 564,261 5,699,425 439,608 Total nonoperating revenues (expenses) Income (loss) before transfers Capital Contributions Transfers in Transfers out Change in net position budgetary basis $ (28,670,157) (28,670,157) (9,319,725) 19,350,432 (109,893,040) (104,473,073) (72,902,700) 31,570,373 28,603,213 81,289,827 - 28,603,213 75,589,452 - 19,861,120 64,440,650 (14,420,550) (8,742,093) (11,148,802) (14,420,550) - Explanation of differences between budgetary basis and GAAP basis Excess revenues over expenses - budgetary basis Capital outlay is an expense for budgetary purposes, but assets are capitalized and are not an expense for GAAP purposes Depreciation is not a budgeted expense, but is an expense for GAAP purposes Proceeds from disposition of assets increase financial resources for budgetary basis, but is not a revenue for GAAP basis Changes in net position per the statement of revenues, expenses and changes in fund net position 48 $ (280,408) $ (3,021,480) $ (3,021,480) 14,742,318 (9,407,988) 389,890 $ 2,702,740 $ (2,741,072) Valley Metro Regional Public Transportation Authority Schedule of Revenues, Expenses and Changes in Net Position – Budget to Actual Valley Metro Rail Fund Fiscal Year Ended June 30, 2013 Budgeted Amounts Original Final Operating Revenues: Charges for services Miscellaneous Total operating revenues $ Operating Expenses: Light rail staff and administration Total operating expenses Operating income (loss) Non-Operating Revenues (Expenses): Lead agency disbursements Interest income Total nonoperating revenues (expenses) Income (loss) before transfers Transfers in Transfers out Change in net position budgetary basis $ 14,027,959 14,027,959 $ Actual Amounts 14,027,959 14,027,959 $ 12,293,635 5,192 12,298,827 Variance with Final Budget $ (1,734,324) 5,192 (1,729,132) 14,027,959 14,027,959 - 14,027,959 14,027,959 - 12,295,915 12,295,915 2,912 (1,732,044) (1,732,044) 2,912 (44,188,513) (44,188,513) (44,188,513) (44,188,513) (38,391,302) 81,600 (38,309,702) 5,797,211 81,600 5,878,811 (44,188,513) (44,188,513) (38,306,790) 5,881,723 66,688,513 (22,500,000) 66,688,513 (22,500,000) 60,908,430 (4,772,328) (5,780,083) 17,727,672 - 49 $ - $ 17,829,312 $ 17,829,312 (This page intentionally left blank) Statistical Section The Statistical Section includes selected financial and demographic information regarding the Authority. Statistical Section The Statistical Section presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the Authority’s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the Authority’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the Authority’s most significant local revenue source, the sales tax. Debt Capacity These schedules contain information to help the reader assess the affordability of the Authority’s current levels of outstanding debt, the Authority’s ability to issue additional debt in the future. There is no statute on the Authority’s debt limit on the issuance of bonds. The only limitation is the ability to secure the debts with available excise tax monies. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Authority’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Authority’s financial report relates to the services the Authority provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 50 Valley Metro Regional Public Transportation Authority Net Position By Component Last Ten Fiscal Years (accrual basis of accounting) FY 2003/04 Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net position Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net position Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net position $ $ $ $ $ $ FY 2004/05 199,619 3,300,859 3,500,478 $ 11,497,494 1,559,108 1,250,277 14,306,879 $ 11,697,113 1,559,108 4,551,136 17,807,357 51 $ $ $ $ FY 2005/06 161,090 3,300,859 3,461,949 $ 12,283,769 1,827,192 1,299,780 15,410,741 $ 12,444,859 1,827,192 4,600,639 18,872,690 $ $ $ $ FY 2006/07 249,177 12,224,193 12,473,370 $ 27,042,048 5,301,289 17,159,298 49,502,635 $ 27,291,225 5,301,289 29,383,491 61,976,005 $ $ $ 1,362,413 42,677,444 44,039,857 47,945,807 1,778,889 21,142,003 70,866,699 49,308,220 1,778,889 63,819,447 $ 114,906,556 FY 2007/08 $ $ $ $ $ 1,467,040 28,106,773 29,573,813 72,537,461 2,332,524 17,991,644 92,861,629 74,004,501 2,332,524 46,098,417 $ 122,435,442 FY 2008/09 $ $ $ $ $ FY 2009/10 1,229,916 37,265,160 38,495,076 $ 98,580,060 4,062,157 (9,329,497) 93,312,720 $ 106,601,704 (36,226,944) $ 70,374,760 99,809,976 4,062,157 27,935,663 $ 131,807,796 $ 689,786 45,287,115 45,976,901 $ 107,291,490 9,060,171 $ 116,351,661 FY 2010/11 $ $ $ $ $ $ 52 1,346,607 178,382 51,323,184 52,848,173 21,322,728 16,410,223 37,732,951 22,669,335 178,382 67,733,407 90,581,124 FY 2011/12 $ $ $ $ $ 1,199,127 188,792 46,388,453 47,776,372 6,528,635 120,650 51,160,599 57,809,884 7,727,762 309,442 97,549,052 $ 105,586,256 FY 2012/13 $ $ $ $ $ $ 1,308,720 2,117,782 46,828,164 50,254,666 8,437,699 8,286,530 61,617,707 78,341,936 9,746,419 10,404,312 108,445,871 128,596,602 Valley Metro Regional Public Transportation Authority Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) FY 2003/04 Expenses Governmental activities: Regional planning: Long range Short range Capital Program support Transportation demand management: Trip reduction Ridesharing Other programs Regional customer services: Marketing Call center Other programs AZ Lottery Fund Disbursements Administration: Executive director’s office Communications & government relations Finance & management services Community funded transportation Total governmental activities expenses $ Business-type activities: Transit service operations Regional customer services Light rail transit Total business-type activities expenses $ 167,057 242,945 163,818 53,199 FY 2004/05 $ 162,287 145,690 236,219 171,169 FY 2005/06 $ 187,496 322,430 197,256 534,285 FY 2006/07 $ 403,337 558,664 164,722 1,298,591 784,056 656,311 267,869 931,196 514,977 486,102 865,290 645,052 326,903 719,854 594,549 385,257 238,134 247,948 106,305 51,652 90,972 3,070,266 400,777 161,979 293,648 51,652 180,099 3,735,795 514,158 207,304 549,635 4,349,809 2,578,094 3,087,948 1,623,744 1,712,451 260,965 715,001 14,103,177 30,650,723 4,710,645 2,982,701 38,344,069 34,834,292 5,123,118 3,667,400 43,624,810 38,578,007 5,767,760 16,909,968 61,255,735 60,090,164 63,225,727 123,315,891 65,605,544 $ 137,419,068 41,414,335 Total primary government expenses 53 $ 47,360,605 $ FY 2007/08 $ 316,147 735,888 224,767 1,113,474 FY 2008/09 $ 292,509 317,886 154,523 1,183,750 FY 2009/10 $ 308,339 358,149 106,185 1,049,353 FY 2010/11 $ 101,121 1,063,291 113,073 997,203 FY 2011/12 $ 161,945 307,283 113,311 704,870 FY 2012/13 $ 147,932 298,472 138,819 659,732 819,553 592,460 373,833 897,234 561,620 424,091 1,052,649 504,614 250,976 909,742 590,062 42,633 779,921 571,187 40,145 776,881 666,966 143,291 3,110,366 3,599,018 1,857,934 1,033,066 908,275 14,684,781 2,810,408 3,807,893 2,129,063 1,111,340 799,503 14,489,820 2,585,192 3,896,440 2,015,543 1,128,667 750,461 14,006,568 2,201,863 3,833,319 1,960,196 1,284,141 682,197 13,778,841 2,018,631 3,578,569 2,447,288 10,345,984 992,735 827,759 22,889,628 2,049,382 3,547,025 2,603,690 10,200,055 905,972 1,082,966 23,221,183 96,796,902 65,243,366 162,040,268 99,625,805 70,492,629 170,118,434 93,074,466 60,704,307 153,778,773 90,336,819 66,140,185 156,477,004 113,091,586 33,665,209 146,756,795 91,327,298 50,687,217 142,014,515 $ 176,725,049 $ 184,608,254 $ 167,785,341 $ 170,255,845 54 $ 169,646,423 $ 165,235,698 Valley Metro Regional Public Transportation Authority Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) FY 2003/04 Program revenues Governmental activities: Charges for services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services Transit service operations: Local & express bus service Paratransit service Vanpool service Other activities Regional customer services Light rail transit Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues Net (Expense)/Revenue Governmental activities Business-type activities Total primary government net expense General Revenues and Other Changes in Net Position Governmental activities: Sales taxes Interest earnings Other income Transfers in (out) Total governmental activities Business-type activities: Sales taxes Interest earnings Other income Transfers in (out) Total business-type activities: Total primary government Change in net position: Governmental activities Business-type activities Total primary government net expense $ 32,501 1,949,879 92,140 FY 2004/05 $ 49,642 2,288,916 172,438 FY 2005/06 $ 75,295 2,358,485 48,382 FY 2006/07 $ 25,046 2,494,611 198,777 2,074,520 2,510,996 2,482,162 2,718,434 15,487,044 4,640,901 534,764 70,001 4,378,852 2,982,701 1,834,067 820,223 18,135,892 5,344,925 526,891 49,550 4,962,128 3,667,400 5,140,813 387,845 18,963,733 4,075,963 692,342 182,809 3,376,143 5,209,939 1,186,038 17,286,134 20,131,861 2,118,843 685,743 36,729 5,565,540 642,313 19,041,093 30,748,553 38,215,444 50,973,101 48,222,122 $ 32,823,073 $ 40,726,440 $ $ (995,746) (7,595,516) (8,591,262) $ (1,224,799) (5,409,366) (6,634,165) $ (1,867,647) (10,282,634) $ (12,150,281) $ (11,384,743) (75,093,769) $ (86,478,512) 3,071,725 83,977 966 (1,139,423) 2,017,245 $ 1,154,022 103,981 1,047 1,259,050 $ 55,084,706 124,312 (44,329,950) 10,879,068 $ 134,235,260 1,664,357 (92,948,387) 42,951,230 44,578 44,329,950 44,374,528 55,253,596 945,155 2,564,291 92,948,387 96,457,833 $ 139,409,063 9,011,421 34,091,894 43,103,315 $ $ $ $ $ $ 4,516,066 320 1,139,423 5,655,809 7,673,054 1,021,499 (1,939,707) (918,208) 55 $ $ $ $ 6,559,344 2,774 6,562,118 7,821,168 34,251 1,152,752 1,187,003 $ $ $ 53,455,263 $ $ 50,940,556 31,566,487 21,364,064 52,930,551 FY 2007/08 $ $ 2,062,602 - FY 2008/09 $ 2,632,463 - FY 2009/10 $ FY 2010/11 150,353 2,055,931 - $ 189,000 2,286,930 - FY 2011/12 $ 2,206,284 2,475,930 13,755,329 13,278,612 19,861,844 2,043,104 844,115 6,421,524 1,421,891 16,237,008 19,936,194 3,029,151 926,245 8,614,280 2,609,156 40,555,599 15,849,887 2,408,268 864,663 8,130,261 2,607,770 14,996,556 9,811,268 2,431,467 318,945 2,611,481 8,201,600 2,144,496 8,289,329 10,256,090 2,637,827 181,929 2,781,880 9,701,059 1,337,135 31,347,333 9,172,758 2,101,275 176,775 2,121,480 12,293,635 10,716,993 19,661,120 46,829,486 75,670,625 44,857,405 33,808,586 58,243,253 56,244,037 48,892,088 $ 78,303,088 $ 47,063,689 $ 36,284,516 $ 71,998,582 $ 69,522,649 $ (9,134,299) (88,513,542) (97,647,841) $ (9,942,571) (85,770,478) (95,713,049) $ (11,857,357) (94,447,809) $ (106,305,166) (11,800,284) (108,921,368) $ (120,721,652) (11,302,911) (122,668,418) $ (133,971,329) $ $ $ $ $ $ $ 176,058 13,102,554 - 2,632,463 (12,622,179) (115,210,782) $ (127,832,961) $ $ 2,062,602 $ $ 153,445 13,601,884 - FY 2012/13 130,490,779 2,503,935 142,810 (134,981,389) (1,843,865) 536,116 1,688,207 134,981,389 137,205,712 135,361,847 (14,466,044) 21,994,930 7,528,886 $ $ $ 113,297,696 36,310 75,176 (92,630,562) 20,778,620 34,862 2,233,476 92,630,562 94,898,900 115,677,520 8,921,263 451,091 9,372,354 $ $ $ $ $ 103,722,510 231,398 73,531 (84,745,330) 19,282,109 587,487 650,591 84,745,330 85,983,408 105,265,517 $ 7,481,825 (22,937,960) (15,456,135) $ $ 56 107,111,118 79,874 233,357 (89,250,166) 18,174,183 215,800 560,643 89,250,166 90,026,609 108,200,792 6,871,272 (32,641,809) (25,770,537) $ $ $ 112,353,330 73,104 100,154 (108,464,090) 4,062,498 109,799 16,586 108,464,090 108,590,475 112,652,973 (5,071,801) 20,076,933 15,005,132 $ $ $ $ $ 118,336,024 114,061 126,982 (106,156,202) 12,420,865 137,006 9,322 106,156,202 106,302,530 118,723,395 2,478,294 20,532,052 23,010,346 Valley Metro Regional Public Transportation Authority Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) FY 2003/04 General fund: Reserved Unreserved, designated Unreserved, undesignated Nonspendable: Inventories Prepaid Items Restricted Unassigned Total general fund All other governmental funds: Reserved Unreserved, designated, reported in special revenue funds Unreserved, undesignated, reported in special revenue funds Nonspendable: Prepaid Items Restricted Total all other governmental funds FY 2004/05 FY 2005/06 FY 2006/07 $ 384,887 2,915,972 $ 350,173 2,950,686 $ 649,225 1,638,892 $ 1,002,229 1,433,788 $ 3,300,859 $ 3,300,859 $ 2,288,117 $ 2,436,017 $ - $ - $ - $ - $ - - - - - $ - 9,936,076 $ 9,936,076 Note: 2011 was the first year the Authority implemented GASB Statement No. 54. 57 21,059,001 19,182,426 $ 40,241,427 FY 2007/08 $ FY 2008/09 233,480 2,888,105 $ FY 2009/10 755,184 2,882,500 $ FY 2010/11 837,880 3,852,887 $ FY 2011/12 - $ 6,797 FY 2012/13 - $ 3,121,585 $ 3,637,684 $ 4,690,767 $ 52,164,648 52,171,445 $ 10,554 47,178,722 47,189,276 $ - $ - $ - $ - $ - 410,974 25,218,669 $ 25,629,643 34,382,659 $ 34,382,659 $ $ - $ 8,201 1,886,764 47,544,772 49,439,737 $ - 41,434,228 - - - 41,434,228 3,372 175,010 178,382 188,792 188,792 231,018 231,018 $ 58 $ $ Valley Metro Regional Public Transportation Authority Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) FY 2003/04 Revenues Sales taxes Intergovernmental: AZ Lottery Proceeds State & county grants & pass through grants Federal Transit Administration CMAQ Other federal grants Charges for services Interest earnings Miscellaneous Total revenues Expenditures Governmental activities: Regional planning: Long range Short range Capital Program support Transportation demand management: Trip reduction Ridesharing Other programs Regional customer services: Marketing Call center Other programs Administration: Executive director’s office Communications & government relations Finance & management services Community funded transportation AZ Lottery Fund Expenditures Capital outlay Total expenditures $ 3,071,725 $ 400,000 335,365 1,264,654 42,000 32,501 83,977 966 5,231,188 $ Excess of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances FY 2004/05 $ 167,057 242,945 163,818 53,199 FY 2005/06 1,154,022 $ 400,000 526,176 1,493,178 42,000 49,642 103,981 1,047 3,770,046 $ 162,287 145,690 236,219 171,169 $ FY 2006/07 55,084,706 $ 134,235,260 400,000 569,622 1,395,577 41,668 75,295 124,312 57,691,180 400,000 993,727 1,298,056 1,604 25,046 1,664,357 138,618,050 187,496 322,430 197,256 534,285 $ 403,337 558,664 164,722 1,298,591 784,056 656,311 267,869 931,196 514,977 486,102 865,290 645,052 326,903 719,854 594,549 385,257 - - - 2,578,094 3,087,948 1,511,164 238,134 400,777 514,158 1,712,451 247,948 106,305 51,652 115,173 3,094,467 161,979 293,648 51,652 214,350 3,770,046 207,304 419,571 218,151 4,437,896 260,965 580,415 765,641 14,621,652 2,136,721 - 53,253,284 123,996,398 (1,139,423) (1,139,423) - 814,701 (45,144,651) (44,329,950) 9,349,388 (102,892,535) (93,543,147) 997,298 59 $ - $ 8,923,334 $ 30,453,251 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 $ 130,490,779 $ 113,297,696 $ 103,722,510 $ 107,111,118 $ 112,353,330 $ 118,336,024 422,887 268,661 1,287,054 84,000 2,503,935 144,672 135,201,988 455,671 612,190 1,411,497 36,310 228,281 116,041,645 688,659 266,015 1,101,257 231,398 223,988 106,233,827 635,647 799,840 851,443 189,000 79,874 233,357 109,900,279 11,665,674 400,200 589,367 946,643 153,445 73,104 100,154 126,281,917 11,224,800 480,217 364,784 1,032,753 176,058 114,061 126,982 131,855,679 $ 311,129 733,017 222,439 1,104,198 $ 292,509 317,886 154,523 1,183,750 $ 308,339 358,149 106,185 1,049,353 $ 101,121 1,063,291 113,073 997,203 $ 161,939 307,283 113,311 704,870 $ 147,932 298,472 138,819 659,732 816,128 601,220 370,142 897,234 561,620 424,091 1,052,649 504,614 250,976 909,742 590,062 42,633 779,921 571,187 40,142 776,881 666,966 143,291 3,084,872 3,563,629 1,380,563 2,810,408 3,807,893 1,733,413 2,585,192 3,896,440 1,662,194 2,201,863 3,833,319 1,815,740 2,018,631 3,578,569 2,447,288 2,049,382 3,547,025 2,603,690 1,030,804 1,111,340 1,128,667 1,284,141 992,744 905,972 318,945 1,078,709 14,615,795 462,737 384,564 14,141,968 419,178 61,909 13,383,845 359,637 1,113,456 14,425,281 453,137 10,345,984 274,580 22,789,586 692,811 10,200,055 575,762 23,406,790 120,586,193 101,899,677 92,849,982 95,474,998 103,492,331 108,448,889 11,165,777 (146,147,166) (134,981,389) 9,975,889 (102,606,451) (92,630,562) 9,658,964 (94,404,294) (84,745,330) 1,447,579 (90,697,745) (89,250,166) 9,957,202 (118,421,292) (108,464,090) 1,093,168 (107,249,370) (106,156,202) $ (14,395,196) $ 9,269,115 $ 8,104,652 $ 60 6,224,832 $ (4,971,759) $ 2,292,687 Valley Metro Regional Public Transportation Authority Sales Tax Revenues by Component Last Ten Fiscal Years (accrual basis of accounting) FY 2003/04 Governmental activities Regional area road funds Public transportation funds Total governmental activities sales taxes Business-type activities Regional area road funds Public transportation funds Total business-type activities sales taxes Primary government Regional area road funds Public transportation funds Total primary government sales taxes $ $ $ $ $ $ 3,071,725 3,071,725 FY 2004/05 $ $ 4,516,066 4,516,066 $ 7,587,791 7,587,791 $ $ $ FY 2005/06 (1) FY 2006/07 (1) 1,154,022 1,154,022 $ 3,938,570 51,146,136 55,084,706 $ 6,559,344 6,559,344 $ - $ 7,713,366 7,713,366 $ 3,938,570 51,146,136 55,084,706 $ $ $ $ 4,047,593 130,187,667 $ 134,235,260 $ - 4,047,593 130,187,667 $ 134,235,260 (1) With the implementation of the Public Transportation sales tax in January 2006, several changes to sales tax distributions were made. The regional area road fund sales tax distribution was reduced to one-half of the amount distributed in prior years. The collections of sales taxes under the new statute are distributed 33.3% to the Authority on a monthly basis. During FY 2006, only six months of collections of the Public Transportation sales tax were reported. 61 FY 2007/08 (1) FY 2008/09 (1) FY 2009/10 (1) FY 2010/11 (1) FY 2011/12 (1) FY 2012/13 (1) $ 4,167,168 126,323,611 $ 130,490,779 $ 4,277,292 109,020,404 $ 113,297,696 $ 4,371,192 99,351,318 $ 103,722,510 $ 4,422,559 102,688,559 $ 107,111,118 $ 4,464,196 107,889,134 $ 112,353,330 $ $ - $ - $ - $ - $ - $ 4,167,168 126,323,611 $ 130,490,779 $ 4,277,292 109,020,404 $ 113,297,696 $ 4,371,192 99,351,318 $ 103,722,510 $ 4,422,559 102,688,559 $ 107,111,118 $ 4,464,196 107,889,134 $ 112,353,330 $ $ $ $ $ $ 62 $ 4,559,730 113,776,294 $ 118,336,024 $ - 4,559,730 113,776,294 $ 118,336,024 Valley Metro Regional Public Transportation Authority Maricopa County Transportation Excise Tax Revenue Distributions Last Ten Fiscal Years (in thousands) FY 2003/04 Regional area road funds Freeways Regional Public Transportation Authority / Maricopa Association of Governments (1) Arterial streets Total regional area road fund distributions $ Public transportation funds Total Maricopa County transportation excise tax revenue distributions $ FY 2004/05 281,012 $ 309,092 FY 2005/06 (2) FY 2006/07 (2) $ $ 292,487 213,119 7,588 7,713 7,877 8,095 288,600 316,805 16,127 316,491 41,050 262,264 - - 51,146 130,188 288,600 $ 316,805 $ 367,637 $ 392,452 Source: The Maricopa County Transportation Excise Tax Tables for FY 2013 provided by the Arizona Department of Transportation, Financial Management Services, Office of Financial Planning. Note: The Maricopa County Transportation Excise Tax, often referred to as the “1/2 cent sales tax,” is levied upon business activities in Maricopa County, including retail sales, contracting, utilities, rental of real and personal property, restaurant and bar receipts, and other activities. Under Proposition 300 (passed by the voters in 1985 becoming effective on January 1, 1986), the transportation excise tax revenues are deposited in the Maricopa County Regional Area Road Fund (RARF) which is administered by the Arizona Department of Transportation. The revenues deposited into the RARF account are the principal sources of funding for the Regional Freeway System in Maricopa County and the Regional Public Transportation Authority and are dedicated through December 31, 2005. In November 2004, Maricopa County’s voters approved Proposition 400, Maricopa County Transportation Excise Tax, which became effective on January 1, 2006, and extends the 1/2 cent sales tax for another 20 years through December 31, 2025. The sales tax extension will be used for construction of new freeways, widening of existing freeways and highways, improvements to the arterial street system, regional bus service and high-capacity transit services such as light rail. The collections of the Maricopa County Transportation Excise Tax are as follows: Freeways 56.2%, Public Transportation Fund 33.3%, and Arterial Streets 10.5%. (1) The Authority received a portion of the RARF excise tax funds for transit costs through December 31, 2005. On January 1, 2006 these funds are distributed evenly to the Authority and the Maricopa Association of Governments to be used for administrative and planning purposes per Proposition 400. These funds are netted from the Freeway funds. (2) Distributions are a mix of both Proposition 300 and Proposition 400 collections. 63 FY 2007/08 $ $ 205,576 FY 2008/09 $ 176,235 FY 2009/10 $ 159,604 FY 2010/11 $ 165,321 FY 2011/12 $ 173,334 FY 2012/13 $ 182,806 8,334 8,555 8,742 8,845 8,928 9,119 39,832 253,742 34,376 219,166 31,327 199,673 32,379 206,545 34,019 216,281 35,875 227,800 126,324 109,020 99,351 102,689 107,889 113,776 380,066 $ 328,186 $ 299,024 $ 64 309,234 $ 324,170 $ 341,576 Valley Metro Regional Public Transportation Authority Maricopa County Transportation Excise Tax Revenue Collections by Category Last Ten Fiscal Years (in thousands) Fiscal Year Retail Sales 2003/04 2004/05 2005/06 (1) 2006/07 (1) 2007/08 (1) 2008/09 (1) 2009/10 (1) 2010/11 (1) 2011/12 (1) 2012/13 (1) 144,817 158,179 182,378 187,817 177,845 153,681 143,205 152,003 162,391 172,934 Contracting 43,524 52,325 64,822 73,864 66,046 46,865 28,953 28,012 30,513 32,660 Utilities 19,980 20,813 23,600 26,697 28,630 28,510 29,385 29,511 30,217 30,976 Restaurant and Bar 24,807 27,191 30,656 33,073 33,021 30,763 30,558 31,729 34,279 36,429 Rental Real Property Rental Personal Property 27,163 29,310 32,949 36,398 38,605 37,757 35,825 35,731 36,415 38,097 12,631 12,624 13,923 15,053 15,111 13,470 11,983 11,606 11,966 12,130 Other 15,678 16,363 19,309 19,550 20,808 17,140 19,115 20,643 18,389 18,349 Total 288,600 316,805 367,637 392,452 380,066 328,186 299,024 309,235 324,170 341,574 Source: The Maricopa County Transportation Excise Tax Tables for FY 2013 provided by the Arizona Department of Transportation, Financial Management Services, Office of Financial Planning. Note: The Maricopa County Transportation Excise Tax, often referred to as the “1/2 cent sales tax,” is levied upon business activities in Maricopa County, including retail sales, contracting, utilities, rental of real and personal property, restaurant and bar receipts, and other activities. Under Proposition 300 (passed by the voters in 1985 becoming effective on January 1, 1986), the transportation excise tax revenues are deposited in the Maricopa County Regional Area Road Fund (RARF) which is administered by the Arizona Department of Transportation. The revenues deposited into the RARF account are the principal sources of funding for the Regional Freeway System in Maricopa County and the Regional Public Transportation Authority and are dedicated through December 31, 2005. In November 2004, Maricopa County’s voters approved Proposition 400, Maricopa County Transportation Excise Tax, which became effective on January 1, 2006, and extends the 1/2 cent sales tax for another 20 years through December 31, 2025. The sales tax extension will be used for construction of new freeways, widening of existing freeways and highways, improvements to the arterial street system, regional bus service and high-capacity transit services such as light rail. The collections of the Maricopa County Transportation Excise Tax are as follows: Freeways 56.2%, Public Transportation Fund 33.3%, and Arterial Streets 10.5%. Note: Information for individual taxpayers is confidential, and state statutes prohibit releasing the information. (1) Fiscal year collections are a mix of both Proposition 300 and Proposition 400 collections. Revenue Category Definitions: Retail Sales Includes retail sales of automobiles, durable goods and other general merchandise, apparel, building materials, furniture and other tangible personal property. The tax on food was repealed in July 1980. Contracting Includes prime contracting and dealership of manufactured buildings and owner-builder operations. Utilities Includes producing and/or furnishing to consumers electricity, natural or artificial gas, and water. Restaurant and Bar Includes operations of restaurants and drinking establishments. Rental of Real Property Includes leasing or renting real property, hotels and motels. Rental of Personal Property Includes leasing or renting tangible personal property such as leased vehicles and construction equipment. Other Includes intrastate transportation of persons, freight or operations of property, intrastate telecommunication services, intrastate operation of pipelines for oil or natural or artificial gas, job printing, engraving, embossing and publication, publication of newspapers, magazines and other periodicals, operations of amusement places and miscellaneous other revenues. 65 (This page intentionally left blank) Valley Metro Regional Public Transportation Authority Arizona Transaction Privilege Tax Excise Tax Rates by Category Last Ten Fiscal Years FY 2003/04 Retail sales Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Contracting Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Rental of Real Property (including hotels and motels) (1) Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Restaurants and Bars Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Utilities Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Rental of Personal Property Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Communications Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Amusements Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Publishing and Printing Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Other Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate Mining Percent of Total Maricopa County Transaction Privilege Tax Collections Transaction Privilege Tax Rate Transportation Excise Tax Rate FY 2004/05 FY 2005/06 FY 2006/07 FY 2007/08 50.1800% 5.0000% 0.5000% 49.9300% 5.0000% 0.5000% 49.9300% 5.0000% 0.5000% 47.8600% 5.0000% 0.5000% 46.8000% 5.0000% 0.5000% 15.0800% 5.0000% 0.5000% 16.5200% 5.0000% 0.5000% 16.5200% 5.0000% 0.5000% 18.8200% 5.0000% 0.5000% 17.4000% 5.0000% 0.5000% 9.0500% 1.8200% 0.5120% 9.2500% 1.8200% 0.5120% 9.2500% 1.8200% 0.5120% 9.2700% 1.8200% 0.5120% 10.1000% 1.8200% 0.5120% 8.6000% 5.0000% 0.5000% 8.5800% 5.0000% 0.5000% 8.5800% 5.0000% 0.5000% 8.4300% 5.0000% 0.5000% 8.7000% 5.0000% 0.5000% 6.9200% 5.0000% 0.5000% 6.5700% 5.0000% 0.5000% 6.5700% 5.0000% 0.5000% 6.8000% 5.0000% 0.5000% 7.5000% 5.0000% 0.5000% 4.3800% 5.0000% 0.5000% 3.9800% 5.0000% 0.5000% 3.9800% 5.0000% 0.5000% 3.8400% 5.0000% 0.5000% 4.0000% 5.0000% 0.5000% 3.3400% 5.0000% 0.5000% 3.2000% 5.0000% 0.5000% 3.2000% 5.0000% 0.5000% 2.9300% 5.0000% 0.5000% 3.3000% 5.0000% 0.5000% 1.0600% 5.0000% 0.5000% 1.0500% 5.0000% 0.5000% 1.0500% 5.0000% 0.5000% 1.0600% 5.0000% 0.5000% 1.1000% 5.0000% 0.5000% 0.6300% 5.0000% 0.5000% 0.6100% 5.0000% 0.5000% 0.6100% 5.0000% 0.5000% 0.5300% 5.0000% 0.5000% 0.5000% 5.0000% 0.5000% 0.7600% 5.0000% 0.5000% 0.3100% 5.0000% 0.5000% 0.3100% 5.0000% 0.5000% 0.4600% 5.0000% 0.5000% 0.6000% 5.0000% 0.5000% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% Source: The Maricopa County Transportation Excise Tax Tables for FY 2013 provided by the Arizona Department of Transportation, Financial Management Services, Office of Financial Planning. (1) In 1990 and 1993, legislation reduced the transaction privilege tax rate for real property rentals; however, for transportation excise tax purposes, the rate was retained at its prior level. 66 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 46.8300% 5.0000% 0.5000% 46.8300% 5.0000% 0.5000% 49.1600% 5.0000% 0.5000% 50.1000% 5.0000% 0.5000% 50.6300% 5.0000% 0.5000% 14.2800% 5.0000% 0.5000% 14.2800% 5.0000% 0.5000% 9.0600% 5.0000% 0.5000% 9.4000% 5.0000% 0.5000% 9.5600% 5.0000% 0.5000% 11.5000% 1.8200% 0.5120% 11.5000% 1.8200% 0.5120% 11.5500% 1.8200% 0.5120% 11.2000% 1.8200% 0.5120% 11.1500% 1.8200% 0.5120% 9.3700% 5.0000% 0.5000% 9.3700% 5.0000% 0.5000% 10.2600% 5.0000% 0.5000% 10.6000% 5.0000% 0.5000% 10.6700% 5.0000% 0.5000% 8.6900% 5.0000% 0.5000% 8.6900% 5.0000% 0.5000% 9.5400% 5.0000% 0.5000% 9.3000% 5.0000% 0.5000% 9.0700% 5.0000% 0.5000% 4.1000% 5.0000% 0.5000% 4.1000% 5.0000% 0.5000% 3.7500% 5.0000% 0.5000% 3.7000% 5.0000% 0.5000% 3.5500% 5.0000% 0.5000% 2.9900% 5.0000% 0.5000% 2.9900% 5.0000% 0.5000% 3.2700% 5.0000% 0.5000% 3.1000% 5.0000% 0.5000% 2.9700% 5.0000% 0.5000% 1.1900% 5.0000% 0.5000% 1.1900% 5.0000% 0.5000% 1.1800% 5.0000% 0.5000% 1.2000% 5.0000% 0.5000% 1.1400% 5.0000% 0.5000% 0.4900% 5.0000% 0.5000% 0.4900% 5.0000% 0.5000% 0.5200% 5.0000% 0.5000% 0.4000% 5.0000% 0.5000% 0.4700% 5.0000% 0.5000% 0.5600% 5.0000% 0.5000% 0.5600% 5.0000% 0.5000% 1.7100% 5.0000% 0.5000% 1.0000% 5.0000% 0.5000% 0.7900% 5.0000% 0.5000% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 0.0000% 3.1250% 0.3125% 67 Valley Metro Regional Public Transportation Authority Transportation Excise Tax Revenue Bonds Bond Coverage Last Four Fiscal Years Fiscal Year 2010 2011 2012 2013 Principal $ 2,265,000 5,085,000 5,290,000 Interest $ 5,259,888 5,245,318 5,053,018 4,819,068 Pledged Revenue Total $ 5,259,888 7,510,318 10,138,018 10,109,943 $ 99,351,318 102,688,559 107,889,134 113,776,294 Coverage 18.89 13.67 10.64 11.25 Note: On June 30, 2009, the Authority raised $100,075,000 on bonds issued secured by its portion of the Transportation Excise Tax revenues collected by the Arizona Department of Revenue. Note: The pledged revenues of the Authority represent future sales taxes to be collected and used to repay the debt outstanding. 68 Valley Metro Regional Public Transportation Authority Outstanding Debt by Type Last Four Fiscal Years Business-type Activities Fiscal Year Ended June 30 2010 2011 2012 2013 Transportation Excise Tax Revenue Bonds (includes Premium) $ Percentage of Personal Income 100,075,000 105,048,942 102,369,446 96,869,951 0.07% 0.04% 0.03% 0.04% Source: The source of this information is the Authority’s financial records. 69 Per Capita $ 26.35 27.52 26.35 24.94 Valley Metro Regional Public Transportation Authority Transportation Excise Tax Revenue Bonds Debt Service Revenue and Cost Per Capita Last Four Fiscal Years Fiscal Year 2010 2011 2012 2013 Principal $ 2,265,000 5,085,000 5,290,000 Interest Total Cost $ 5,259,888 5,245,318 5,053,018 4,819,068 $ 5,259,888 7,510,318 10,138,018 10,109,068 Revenue $ 99,351,318 102,688,559 107,889,134 113,776,294 Maricopa County Population (1) $ 4,115,811 3,817,117 3,884,705 3,884,705 Cost Per Capita Revenue Per Capita $ $ 1 2 3 3 (1) Source: Authority’s financial records and Maricopa Association of Governments, Resident Population Estimates Documentation 70 24 27 28 29 (This page intentionally left blank) Valley Metro Regional Public Transportation Authority Regional Population Statistics Last Ten Fiscal Years FY 2002/03 (1) Maricopa County Avondale Buckeye Chandler El Mirage Gilbert Glendale Goodyear (2) Mesa Peoria Phoenix Queen Creek (2) Scottsdale Surprise (2) Tempe Tolleson (2) 3,296,250 47,610 N/A 194,390 20,645 133,640 227,495 N/A 427,550 122,655 1,365,675 N/A 214,090 45,125 159,425 N/A FY 2003/04 (1) 3,406,170 54,200 N/A 209,140 25,550 151,975 231,150 N/A 435,380 126,815 1,390,830 N/A 218,095 51,885 159,905 N/A FY 2004/05 (1) 3,537,630 60,490 N/A 221,555 28,420 165,325 234,225 N/A 448,845 132,805 1,421,450 N/A 221,980 64,210 161,420 N/A FY 2005/06 (1) 3,648,545 66,110 N/A 231,785 29,630 178,000 236,030 N/A 452,355 137,285 1,452,825 N/A 223,835 78,265 160,735 N/A FY 2006/07 (1) 3,792,675 72,210 N/A 235,450 32,605 185,030 243,540 49,720 451,360 145,135 1,505,265 18,690 237,120 98,140 165,890 N/A (1) Source: Maricopa Association of Governments, Resident Population Estimates Documentation (2) Data for fiscal years prior to membership of the Authority was not available. The Regional Public Transportation Authority (“Authority”) was established in 1985 to develop a regional transit plan and to develop and operate a regional transit system in Maricopa County, Arizona. The Authority is governed by a sixteen-member Board of Directors consisting of a member of the Maricopa County Board of Supervisors, and the mayors (or their designees) of the cities of Avondale, Buckeye, Chandler, El Mirage, Glendale, Goodyear, Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe and Tolleson and the towns of Gilbert and Queen Creek. Any municipality in Maricopa County may join the Authority and have one elected official serve on the Board of Directors by committing a portion of its Arizona Lottery funds to local public transportation. 71 FY 2007/08 (1) 3,907,492 75,256 N/A 241,205 33,583 203,656 246,076 55,954 456,344 151,541 1,538,568 21,363 240,126 104,895 167,871 N/A FY 2008/09 (1) 3,987,942 76,648 50,143 244,376 33,647 214,820 248,435 59,436 459,682 155,557 1,561,485 23,329 242,337 108,761 172,641 N/A FY 2009/10 (1) FY 2010/11 (1) 4,023,331 76,900 52,764 245,087 33,610 217,521 249,197 61,916 461,102 158,709 1,575,423 24,926 243,501 109,482 174,833 6,923 3,817,117 76,238 50,876 236,123 31,797 208,453 226,721 65,275 439,041 154,065 1,445,632 26,361 217,385 117,517 161,719 6,573 72 FY 2011/12 (1) 3,884,705 76,870 54,102 241,214 32,067 219,666 229,008 69,018 444,856 157,653 1,464,727 27,249 219,713 119,530 164,659 6,579 Valley Metro Regional Public Transportation Authority Top Ten Employers for Maricopa County For the Year 2012 Employer Banner Health Systems State of Arizona Wal-Mart Stores, Inc. City of Phoenix Maricopa County Frys Food Stores Intel Corporation Bank of America Wells Fargo & Company Honeywell Motorola US Postal Service - Arizona District Raytheon Missile Systems Total for Principal Employers Total Employment in Maricopa Cty Employees 22,400 22,000 15,100 13,000 12,500 12,400 11,600 11,200 10,700 9,300 2012 Rank % of Total 1 2 3 4 5 6 7 8 9 10 1.54% 1.52% 1.04% 0.90% 0.86% 0.85% 0.80% 0.77% 0.74% 0.64% 140,200 9.66% 1,451,500 Source: Maricopa County Association of Governments, Employer Database (2012) Arizona Department of Administration, Current Employment Statistics Phoenix Business Journal Book of Lists Note: The information for FY 2013 was not available at the time the CAFR was drafted. 73 (This page intentionally left blank) Valley Metro Regional Public Transportation Authority Arizona Lottery Funds Last Ten Fiscal Years FY 2003/2004 Avondale Local transportation assistance funds received Minimum local expenditures required Percentage required Buckeye (1) Local transportation assistance funds received Minimum local expenditures required Percentage required Chandler Local transportation assistance funds received Minimum local expenditures required Percentage required El Mirage Local transportation assistance funds received Minimum local expenditures required Percentage required Gilbert Local transportation assistance funds received Minimum local expenditures required Percentage required Glendale Local transportation assistance funds received Minimum local expenditures required Percentage required Goodyear (1) Local transportation assistance funds received Minimum local expenditures required Percentage required Maricopa County (1) Local transportation assistance funds received Minimum local expenditures required Percentage required Mesa Local transportation assistance funds received Minimum local expenditures required Percentage required Peoria Local transportation assistance funds received Minimum local expenditures required Percentage required Phoenix Local transportation assistance funds received Minimum local expenditures required Percentage required Queen Creek (1) Local transportation assistance funds received Minimum local expenditures required Percentage required Scottsdale Local transportation assistance funds received Minimum local expenditures required Percentage required Surprise (1) (2) Local transportation assistance funds received Minimum local expenditures required Percentage required Tempe Local transportation assistance funds received Minimum local expenditures required Percentage required Tolleson Local transportation assistance funds received Minimum local expenditures required Percentage required Wickenburg (1) Local transportation assistance funds received Minimum local expenditures required Percentage required 252,589 189,442 75.0% N/A N/A N/A FY 2004/2005 FY 2005/2006 277,421 208,066 75.0% N/A N/A N/A 299,299 99,667 33.3% N/A N/A N/A FY 2006/2007 317,127 105,603 33.3% N/A N/A N/A FY 2007/2008 331,478 110,382 33.3% N/A N/A N/A 1,031,314 343,771 33.3% 1,072,387 357,462 33.3% 1,096,287 365,064 33.3% 1,111,863 370,250 33.3% 1,080,826 359,915 33.3% 109,530 82,148 75.0% 130,312 97,734 75.0% 140,622 105,467 75.0% 142,134 106,600 75.0% 149,672 112,254 75.0% 709,012 236,337 33.3% 778,323 259,441 33.3% 818,025 272,402 33.3% 853,858 284,335 33.3% 849,374 282,842 33.3% 1,206,948 402,316 33.3% 1,186,391 395,464 33.3% 1,158,998 385,946 33.3% 1,132,226 377,031 33.3% 1,117,962 372,281 33.3% 197,755 148,316 75.0% 228,238 171,179 75.0% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 2,268,317 2,268,317 100.0% 2,233,853 2,233,853 100.0% 2,220,987 2,220,987 100.0% 2,169,928 2,169,928 100.0% 2,071,953 2,071,953 100.0% 650,732 216,911 33.3% 650,326 216,775 33.3% 657,162 218,835 33.3% 658,598 219,313 33.3% 666,237 221,857 33.3% 7,245,430 7,245,430 100.0% 7,138,976 7,138,976 100.0% 7,033,839 7,033,839 100.0% 6,969,140 6,969,140 100.0% 6,909,870 6,909,870 100.0% 76,224 57,168 75.0% 85,796 64,347 75.0% NA NA NA NA NA NA NA NA NA 1,135,830 378,610 33.3% 1,119,229 373,076 33.3% 1,098,399 365,767 33.3% 1,073,727 357,551 33.3% 1,088,492 362,468 33.3% 239,405 179,554 75.0% 265,383 88,373 33.3% 317,703 105,795 33.3% 375,434 125,019 33.3% 450,508 150,019 33.3% 845,811 281,937 33.3% 821,152 273,717 33.3% 798,826 266,009 33.3% 771,039 256,756 33.3% 761,513 253,584 33.3% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Source: State of Arizona, Office of the Treasurer and Authority’s financial records (1) Data for fiscal years prior to membership of the Authority was not available. (2) Percentages of proceeds designated for expenditures have been revised according to the reported population starting FY 2005. Former State legislation designated that 100% of the proceeds received by participating municipalities with 300,000 or more in population from the Arizona State Lottery, known as local transportation assistance funds, must be expended for public transportation in the respective municipalities to maintain a position on the Authority’s Board of Directors. For all other municipalities, the requirement is 33.3% for cities with a population between 60,000 and 300,000 and 75% for cities with less than 60,000 population. Local transportation assistance funds (“LTAF”) and minimum public transportation expenditures for participating municipalities for the last ten years are shown above. 74 Valley Metro Regional Public Transportation Authority Arizona Lottery Funds Last Ten Fiscal Years FY 2008/2009 FY 2009/2010 FY 2010/2011 (3) FY 2011/2012 (4) FY 2012/2013 318,231 105,971 33.3% 185,086 61,634 33.3% 0.0% 223,694 224,189 171,121 128,341 75.0% 121,083 90,812 75.0% 0.0% 149,278 149,608 1,019,970 339,650 33.3% 590,108 196,506 33.3% 0.0% 692,821 694,355 142,011 106,508 75.0% 81,249 60,937 75.0% 0.0% 93,297 93,504 861,189 286,776 33.3% 518,737 172,739 33.3% 0.0% 611,633 612,987 1,040,568 346,509 33.3% 599,909 199,770 33.3% 0.0% 665,234 666,707 236,610 177,458 75.0% 143,523 107,642 75.0% 0.0% 191,527 191,951 NA NA NA 834,483 284,404 NA NA NA NA NA NA 1,929,717 1,929,717 100.0% 1,110,018 1,110,018 100.0% 0.0% 1,288,213 1,291,065 640,826 213,395 33.3% 375,639 125,088 33.3% 0.0% 452,030 453,030 6,506,059 6,506,059 100.0% 3,770,600 3,770,600 100.0% 0.0% 4,241,702 4,251,096 91,884 68,913 75.0% 57,536 43,152 75.0% 0.0% 76,030 - 1,015,408 338,131 33.3% 585,184 194,866 33.3% 0.0% 637,841 639,253 443,564 147,707 33.3% 262,631 87,456 33.3% 0.0% 344,813 345,576 709,867 236,386 33.3% 416,885 138,823 33.3% 0.0% 474,508 475,559 16,500 12,375 75.0% 0.0% 19,204 19,247 N/A 6,363 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A (3) In the seventh special session of the 49th Arizona Legislature (2010), a bill was passed and signed into law that repealed the LTAF program and eliminated the distribution all together. (4) In September, 2011, due to a lawsuit filed by claimants against ADEQ, a court order reestablished the funding in Maricopa County because the repeal of the law violated provisions of the Federal Environmental SIP in areas of non-attainment. Distribution methodology reverted to the original statutory language where the Maricopa County RPTA is the direct recipient of funds. The remaining areas of the state where not identified as part of the SIP remain without LTAF II support. 75 Valley Metro Regional Public Transportation Authority Demographic and Economic Statistics Last Ten Fiscal Years Fiscal Year Population (1,2) Income (1,2) (in thousands) Per Capita Income (1,2) 3,884,705 3,817,117 4,115,811 3,987,942 3,907,492 3,792,675 3,648,545 3,537,630 3,498,587 3,388,711 $ 147,724,392 135,393,497 152,216,281 147,912,041 143,729,512 139,665,253 134,339,487 120,716,738 110,278,789 101,378,940 $ 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 38,071 27,185 36,983 37,090 36,783 36,825 36,820 34,124 31,521 29,917 Median Age (1,3) 34.1 34.8 36.8 33.6 33.7 33.4 33.0 33.0 33.0 33.0 School Enrollment (4) Unemployment Rate (2) 693,276 684,028 684,510 683,966 732,146 707,771 689,411 652,333 626,461 600,577 7.3% 8.3% 8.8% 8.1% 4.2% 3.5% 3.6% 4.1% 4.4% 5.2% (1) Calendar year (2) Source: Arizona Office of Employment and Population Statistics, Labor Market Information, for Maricopa County Population for fiscal years 2005 through 2010 are estimates from the Department of Economic Security. Personal income for fiscal years 2008 through 2010 were not available. The income amounts provided are estimates based on a 2.91% growth rate. (3) For years through 2000, median age is based on the 1990 U.S. Census. For 2001 through 2008, median age is based on the 2000 U.S. Census. For calendar years 2009 - 2011, median age is from Maricopa Association of Governments Human Services Coordination Transportation Plan, 2010 and 2011 Update. (4) Source: Arizona Department of Education, Research and Evaluation Section. School enrollment is based on the census at the start of the school year. 76 Valley Metro Regional Public Transportation Authority Full-time Equivalent Employees (FTE) by Function/Program Last Ten Fiscal Years 2004 2005 2007 2008 2009 7.9 10.3 4.2 14.8 37.1 7.9 9.0 71.5 20.1 108.5 8.1 10.5 74.6 22.2 115.4 8.0 10.0 78.2 22.2 118.5 8.1 10.0 78.3 22.2 118.6 7.7 9.0 72.9 20.4 110.0 7.9 8.5 73.3 19.5 109.1 7.1 7.3 78.2 15.5 108.1 4.6 42.0 46.6 4.9 47.0 51.9 10.5 51.0 61.5 8.6 58.0 66.6 8.5 92.0 100.5 8.4 96.0 104.4 10.1 84.0 94.1 10.4 88.5 98.9 11.9 153.0 164.9 75.0 89.0 170.0 182.0 219.0 223.0 204.0 208.0 273.0 Function/Program Governmental activities: Regional planning Transportation demand management Regional customer services Administration Total governmental activities FTE 4.6 10.3 4.7 7.9 27.5 4.5 10.3 4.7 8.9 28.4 Business-type activities: Transit service operations Light rail transit (1) Total business-type activities FTE 4.5 33.0 37.5 65.0 Total primary government FTE 2006 2010 2011 Source: Adopted Valley Metro RPTA and Valley Metro Rail, Inc. Operating Budgets for the applicable years. (1) Light rail transit staff report to the Valley Metro Rail, Inc. Board of Directors. 77 2012 2013 Valley Metro Regional Public Transportation Authority Operating Indicators by Program – Fixed Route System Last Ten Fiscal Years FY 2002/2003 Fixed Route System (1) City of Phoenix Transit System Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Regional Public Transportation Authority (2) Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio City of Tempe Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio City of Glendale - Luke Link Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Total fixed route system Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio $ $ $ $ $ $ $ $ 37,543,692 16,479,011 1,089,891 90,376,532 2.41 23.0% 5,688,992 4,799,475 379,892 17,059,807 3.00 19.7% 4,906,953 3,814,559 267,347 13,110,640 2.67 20.6% 51,246 106,326 4,630 163,768 3.20 30.5% 48,190,883 25,199,371 1,741,760 $ 120,710,747 $ 2.50 22.3% FY 2003/2004 $ $ $ $ $ $ 40,427,904 16,956,333 1,115,462 93,661,178 2.32 24.8% 6,503,504 4,971,133 375,171 18,200,836 2.80 18.3% 4,813,237 3,826,195 314,932 14,864,954 3.09 18.2% 70,823 131,400 7,088 228,160 3.22 20.9% $ $ 51,815,468 25,885,061 1,812,653 $ 126,955,128 $ 2.45 23.1% FY 2004/2005 $ $ $ $ $ $ $ $ 42,909,890 17,420,722 1,146,819 89,543,836 2.09 27.0% 6,203,696 4,379,307 276,517 16,445,778 2.65 23.1% 4,805,598 3,797,053 311,852 15,738,112 3.27 17.3% 93,024 139,789 7,962 218,243 2.35 26.8% 54,012,208 25,736,871 1,743,150 $ 121,945,969 $ 2.26 25.2% FY 2005/2006 $ $ $ $ $ $ FY 2006/2007 44,182,683 17,166,702 1,166,967 93,058,555 2.11 26.6% 44,101,320 18,412,020 1,166,986 $ 108,350,712 $ 2.46 27.0% 6,484,886 4,956,352 389,349 19,613,325 3.02 20.7% 6,772,065 5,521,319 381,620 22,493,215 3.32 20.2% 5,063,284 3,868,790 297,027 16,738,459 3.31 17.9% $ $ 101,444 142,109 8,121 232,802 2.29 27.5% 55,832,297 26,133,953 1,861,464 $ 129,643,141 $ 2.32 24.6% $ $ $ $ $ $ 6,808,547 4,497,200 364,249 19,496,217 2.86 16.2% 227,702 252,413 19,455 435,099 1.91 227.5% 57,909,634 28,682,952 1,932,310 $ 150,775,243 $ 2.60 224.6% Source: Reports prepared by the Regional Public Transportation Authority (RPTA): Performance Management Analysis System for fiscal years 2001 through 2007. Annual Transit Performance Report for fiscal years beginning FY 2008. (1) Fixed route systems are comprised of various operators and contractors of service in Maricopa County; as the regional authority, the Regional Public Transportation Authority in its role compiles and reports on system efficiency and effectiveness performance indicators. (2) The Regional Public Transportation Authority statistics include the City of Mesa fixed route system and the City of Scottsdale fixed route system that were separately managed through fiscal year 2004 and fiscal year 2001, respectively. (3) Shuttle/Circulator System statistics were included in the Fixed Route System statistics through fiscal year 2000. See Operating Indicators by Program - Shuttle / Circulator System. (4) NA - City of Glendale did not run a fixed route. NR Not reported Note: Information for fiscal year 2012-13 was not available at the time the CAFR was drafted. 78 FY 2007/2008 FY 2008/2009 FY 2009/2010 FY 2010/2011 FY 2011/2012 42,670,621 18,826,324 998,142 $ 117,350,016 $ 2.75 27.5% 44,642,019 18,238,826 1,172,816 $ 109,867,153 $ 2.46 32.1% 35,806,019 17,692,736 1,196,437 $ 113,744,493 $ 3.18 30.9% 37,437,652 16,915,379 1,125,763 $ 130,360,068 $ 3.48 25.7% 37,122,975 16,013,826 1,225,077 $ 138,046,662 $ 3.72 25.1% 7,908,819 6,218,876 377,267 30,076,788 3.80 18.1% 8,390,453 6,548,640 372,580 34,853,186 4.15 15.5% 7,277,608 6,392,468 438,051 33,248,059 4.57 20.4% 8,054,520 5,902,973 355,964 34,380,383 4.27 20.9% 8,820,937 5,984,561 443,602 45,949,605 5.21 17.4% $ $ $ $ 4,896,103 4,372,291 326,640 19,947,661 4.07 16.6% $ $ $ $ 5,846,385 4,752,561 371,445 27,191,179 4.65 11.8% NA NA NA NA NA NA NA NA NA NA NA NA 55,475,543 29,417,491 1,702,049 $ 167,374,465 $ 3.02 24.5% 58,878,857 29,540,027 1,916,841 $ 171,911,518 $ 2.92 25.5% $ $ $ $ $ $ 5,217,425 4,889,470 370,738 28,676,837 5.50 17.2% 116,952 101,154 37,006 820,392 7.01 3.1% 48,418,004 29,075,828 2,042,232 $ 176,489,781 $ 3.65 26.6% $ $ $ $ 8,313,058 5,678,666 498,944 24,851,193 2.99 19.3% $ $ $ $ 5,435,181 3,803,757 285,591 24,989,805 4.60 20.0% 110,913 99,773 8,713 786,101 7.09 3.1% NA NA NA NA NA NA 53,916,143 28,596,791 1,989,384 $ 190,377,745 $ 3.53 23.9% 51,379,093 25,802,144 1,954,270 $ 208,986,072 $ 4.07 22.8% $ $ 79 Valley Metro Regional Public Transportation Authority Operating Indicators by Program – Dial-a-Ride System Last Ten Fiscal Years FY 2002/2003 Dial-a-Ride System (1) Phoenix Dial-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Phoenix Reserve-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio East Valley Dial-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Maricopa County STS Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Sun Cities Area Transit Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Valley Metro Mobility Services Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Valley Metro Ridechoice Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Scottsdale Taxi Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio $ $ $ $ $ $ $ $ $ $ 333,860 3,687,477 255,922 10,385,900 31.11 4.9% 162,760 540,282 47,155 2,689,066 16.52 3.2% 240,879 1,371,852 117,217 5,076,798 21.08 7.0% 106,395 732,376 70,238 1,587,982 14.93 1.1% 60,345 226,194 19,226 671,365 11.13 22.4% FY 2003/2004 $ $ $ $ $ $ $ $ $ $ 369,791 3,901,614 262,372 11,150,114 30.15 4.8% 153,697 540,388 50,754 2,757,131 17.94 3.1% 222,736 2,048,542 111,514 4,963,617 22.28 6.5% 103,533 730,180 67,836 1,534,951 14.83 1.0% 61,147 229,917 20,015 671,410 10.98 22.7% FY 2004/2005 $ $ $ $ $ $ $ $ 393,053 4,084,991 274,099 12,375,324 31.49 4.0% FY 2005/2006 $ $ 152,631 518,616 47,282 2,853,105 18.69 2.7% 223,130 1,622,795 118,032 5,338,924 23.93 6.6% 105,342 523,119 41,189 3,249,859 30.85 0.4% 58,069 254,897 22,648 714,915 12.31 21.3% $ $ 415,733 4,276,365 285,137 12,452,214 29.95 5.0% FY 2006/2007 $ $ NR NR NR NR NR NR $ $ $ $ $ $ 220,153 1,796,728 121,607 6,596,249 29.96 5.2% 100,243 913,009 56,585 3,312,076 33.04 0.3% 57,091 230,472 21,802 689,473 12.08 23.5% 410,838 NA 287,882 13,655,624 33.24 4.7% NR NR NR NR NR NR $ $ $ $ $ $ 226,050 NA 126,131 7,685,324 34.00 5.0% 91,082 NA 49,524 3,368,464 36.98 0.0% 45,612 NA 16,526 697,877 15.30 18.0% Source: Reports prepared by the Regional Public Transportation Authority: Performance Management Analysis System for fiscal years 2001 through 2007. Annual Transit Performance Report for fiscal years beginning FY 2008. (1) Dial-a-ride systems are comprised of various operators and contractors of service in Maricopa County; as the regional authority, the Regional Public Transportation Authority in its role compiles and reports on system efficiency and effectiveness performance indicators. NR Not reported Note: Information for fiscal year 2012-13 was not available at the time the CAFR was drafted. 80 FY 2007/2008 $ $ 391,420 4,806,031 292,601 14,759,075 37.71 4.1% FY 2008/2009 $ $ NR NR NR NR NR NR $ $ $ $ $ $ 240,424 NA 131,842 8,461,088 35.19 4.6% 87,134 NA 47,511 3,350,837 38.46 0.0% 34,924 NA 12,974 560,024 16.04 22.0% 396,474 4,064,584 295,057 14,991,465 37.81 4.2% FY 2009/2010 $ $ NR NR NR NR NR NR $ $ $ $ $ $ 262,364 2,090,445 137,604 9,760,107 37.20 4.1% $ $ NR NR NR NR NR NR $ $ 35,488 362,525 24,641 256,574 7.23 0.0% 27,652 109,741 13,081 610,581 22.08 17.4% 353,674 3,675,478 283,686 14,749,818 41.70 7.3% FY 2010/2011 248,462 2,123,274 129,168 9,322,558 37.52 4.9% $ $ $ $ NR NR NR NR NR NR $ $ NR NR NR NR NR NR 30,509 120,305 30,509 558,965 18.32 18.6% 328,502 3,464,880 257,874 15,519,920 47.24 6.3% FY 2011/2012 234,095 2,191,197 128,335 9,096,936 38.86 7.8% NR NR NR NR NR NR $ $ NR NR NR NR NR NR $ $ 337,182 3,485,711 308,915 16,848,817 49.97 5.8% 215,536 1,299,371 117,381 9,411,479 43.67 6.0% NR NR NR NR NR NR 14,715 53,614 5,367 228,146 15.50 24.9% NR NR NR NR NR NR $ $ $ $ $ $ 81 33,058 263,092 8,841 729,600 22.07 6.8% 65,168 NR NR 1,400,700 21.49 9.1% 53,476 NR NR 431,037 8.06 20.0% Valley Metro Regional Public Transportation Authority Operating Indicators by Program – Dial-a-Ride System (Continued) Last Ten Fiscal Years FY 2002/2003 Dial-a-Ride System (1) Glendale Dial-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Peoria Dial-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio El Mirage Dial-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Surprise Dial-a-Ride Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Total Dial-a-Ride System Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio $ $ $ $ $ $ $ $ $ $ 81,768 376,504 25,782 2,074,611 25.37 4.7% 30,399 189,984 9,276 727,770 23.94 5.0% 1,103 9,172 1,834 93,632 84.89 0.9% 7,094 43,716 3,881 162,931 22.97 4.6% 1,024,603 7,177,557 550,531 23,470,055 22.91 5.4% FY 2003/2004 $ $ $ $ $ $ $ $ $ $ 86,132 387,531 26,252 2,255,038 26.18 4.7% 29,258 158,456 7,920 738,683 25.25 4.5% 1,061 7,230 NR 76,813 72.40 1.0% 7,387 48,768 4,891 185,646 25.13 4.3% 1,034,742 8,052,626 551,554 24,333,403 23.52 5.2% FY 2004/2005 $ $ $ $ $ $ $ $ $ $ 87,831 386,587 29,554 2,247,156 25.58 5.0% 33,805 153,805 8,258 827,786 24.49 4.0% 1,558 10,017 NR 70,459 45.22 1.7% 8,181 68,291 5,016 283,624 34.67 3.5% 1,063,600 7,623,118 546,078 27,961,152 26.29 4.5% FY 2005/2006 $ $ 89,055 390,561 29,594 2,387,554 26.81 4.6% 42,560 159,903 9,975 927,312 21.79 5.1% $ $ 1,466 12,284 1,613 74,023 50.49 2.0% $ $ 12,578 86,045 6,554 367,093 29.19 3.5% $ $ $ $ 938,879 7,865,367 532,867 26,805,994 28.55 4.9% FY 2006/2007 $ $ $ $ $ $ $ $ $ $ 84,132 NA 29,448 2,446,602 29.08 3.3% 45,790 NA 12,663 1,045,445 22.83 4.5% 1,947 NA 1,820 99,256 50.98 3.7% 17,339 NA 8,037 506,921 29.24 3.6% 920,843 NA 532,031 29,505,513 32.04 4.4% Source: Reports prepared by the Regional Public Transportation Authority: Performance Management Analysis System for fiscal years 2001 through 2007. Annual Transit Performance Report for fiscal years beginning FY 2008. (1) Dial-a-ride systems are comprised of various operators and contractors of service in Maricopa County; as the regional authority, the Regional Public Transportation Authority in its role compiles and reports on system efficiency and effectiveness performance indicators. NR Not reported Note: Information for fiscal year 2012-13 was not available at the time the CAFR was drafted. 82 FY 2007/2008 $ $ $ $ $ $ $ $ $ $ 88,638 NA 30,642 2,878,740 32.48 3.8% 40,122 NA 14,875 1,239,982 30.91 3.2% 1,131 NA 1,764 97,262 86.00 2.3% 20,075 NA 8,698 589,469 29.36 3.7% 902,737 4,806,031 540,907 31,936,477 35.38 4.1% FY 2008/2009 $ $ $ $ $ $ $ $ $ $ 92,381 408,986 30,594 2,431,098 26.32 4.4% 38,978 212,812 14,567 1,239,982 31.81 3.1% FY 2009/2010 $ $ $ $ 1,459 NA 1,680 102,139 70.01 2.9% 19,336 79,989 7,918 644,740 33.34 3.0% 872,673 7,329,082 525,142 30,036,686 34.42 4.3% 89,808 411,136 29,927 2,430,543 27.06 4.3% 32,921 158,846 13,218 1,109,380 33.70 2.9% FY 2010/2011 $ $ $ $ 97,741 406,413 30,347 2,604,743 26.65 4.0% 29,317 122,789 8,156 1,006,618 34.34 3.1% NR NR NR NR NR NR $ $ $ $ 22,151 83,761 8,561 591,150 26.69 3.8% 777,525 6,572,800 495,069 28,762,414 36.99 6.2% FY 2011/2012 $ $ $ $ NR NR NR NR NR NR $ $ $ $ 23,942 81,859 8,601 617,751 25.80 4.1% 728,312 6,320,752 438,680 29,074,114 39.92 6.8% 83 70,746 404,838 29,957 2,489,211 35.19 4.2% 30,943 141,596 7,652 903,468 29.20 3.0% NR NR NR NR NR NR $ $ $ $ 24,301 84,636 8,955 661,287 27.21 3.7% 830,410 5,679,244 481,701 32,875,599 39.59 5.9% Valley Metro Regional Public Transportation Authority Operating Indicators by Program – Shuttle / Circulator System Last Ten Fiscal Years Shuttle/Circulator System City of Phoenix (1) Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio City of Tempe (2) Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio City of Scottsdale (3) (4) Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio City of Glendale (5) Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Regional Public Transportation Authority (6) Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Total Shuttle/Circulator System Total boardings Revenue miles Revenue hours Operating cost Operating cost per boarding Farebox recovery ratio Source: FY 2002/2003 FY 2003/2004 FY 2004/2005 FY 2005/2006 FY 2006/2007 770,348 604,325 40,480 1,619,238 2.10 0.0% 747,351 577,579 37,636 1,435,044 1.92 0.0% 794,945 601,547 38,156 2,386,820 3.00 0.0% 766,676 580,884 36,923 1,812,780 2.36 0.0% 735,941 580,080 36,710 1,889,393 2.57 0.0% $ $ $ $ $ $ $ $ $ $ 1,445,714 441,587 30,949 1,517,734 1.05 0.0% 49,498 33,129 4,683 308,684 6.24 0.0% 54,093 78,895 6,361 185,407 3.43 5.7% $ $ $ $ $ $ $ $ 1,705,025 487,780 40,149 1,771,216 1.04 0.0% 52,599 37,272 6,185 377,726 7.18 0.0% 59,692 93,794 7,897 203,149 3.39 5.9% $ $ $ $ $ $ $ $ 1,999,795 475,609 39,831 1,835,387 0.92 0.0% 92,139 57,696 8,167 547,764 5.94 0.0% 82,569 100,295 8,301 144,934 1.76 11.0% $ $ $ $ $ $ $ $ 2,034,656 479,595 48,794 1,954,659 0.96 0.0% 125,435 80,489 14,025 953,477 7.60 0.0% $ $ $ $ $ $ 96,258 96,838 7,969 158,442 1.65 10.3% 1,616,729 482,538 52,379 2,091,895 1.29 0.0% 274,961 219,861 33,828 1,887,546 6.86 0.0% 97,681 NR NR NR NR NR N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2,319,653 1,157,936 82,473 3,631,063 1.57 N/A 2,564,667 1,196,425 91,867 3,787,135 1.48 N/A 2,969,448 1,235,147 94,455 4,914,905 1.66 N/A 3,023,025 1,237,806 107,711 4,879,358 1.61 N/A 2,725,312 1,282,479 122,917 5,868,834 2.15 N/A $ $ $ $ $ $ $ $ Reports prepared by the Regional Public Transportation Authority: Performance Management Analysis System for fiscal years 2001 through 2007. Annual Transit Performance Report for fiscal years beginning FY 2008. (1) City of Phoenix - Alex, Dash, Mary & Smart; prior to FY 2008 included only Dash and Alex. (2) City of Tempe - FLASH, Orbit-Earth, Jupiter, Mars, Mercury & Venus; prior to FY 2008 included only FLASH, Neighborhood FLASH. (3) City of Scottsdale - Neighborhood Trolley, Miller Road Trolley, and Downtown Trolley; prior to FY 2008 included only Roundup. (4) City of Scottsdale did not track revenue miles for FY 2008. (5) City of Glendale - GUS (6) RPTA- Mesa BUZZ Note: Information for FY 2013 was not available at the time the CAFR was drafted. 84 FY 2007/2008 FY 2008/2009 FY 2009/2010 FY 2010/2011 FY 2011/2012 1,799,974 1,614,317 79,529 7,173,722 3.99 0.1% 2,599,292 1,960,474 118,173 9,626,975 3.70 0.0% 2,643,678 1,609,412 99,367 7,306,773 2.76 0.0% 1,410,810 624,617 37,488 4,062,374 2.88 0.0% 1,325,435 518,763 39,210 3,849,920 2.90 0.0% $ $ $ $ $ $ $ $ $ $ 2,456,646 1,613,904 150,171 6,833,012 2.78 0.0% 3,307,223 2,105,878 206,964 $ 11,414,395 $ 3.45 0.0% 384,000 48,240 2,400,000 6.25 0.0% 572,925 439,307 48,648 2,627,403 4.59 0.0% 110,941 110,005 8,858 176,574 1.59 16.3% N/A N/A N/A N/A N/A N/A 4,751,561 3,338,226 286,798 $ 16,583,308 $ 3.49 0.2% $ $ $ $ $ $ 113,382 98,760 8,735 668,581 5.90 3.6% 80,133 60,795 5,755 319,570 3.99 0.0% 6,672,955 4,665,214 388,275 $ 23,988,343 $ 3.59 0.1% $ $ 3,660,543 1,819,126 194,057 $ 10,070,159 $ 2.75 0.0% 652,230 358,482 37,006 N/A N/A N/A $ $ $ $ 116,952 104,154 12,412 820,392 7.01 3.1% 200,504 105,935 8,726 547,823 2.73 0.0% 7,273,907 3,997,109 351,568 $ 18,745,147 $ 2.58 N/A $ $ $ $ $ $ $ $ $ $ 3,143,824 1,489,463 169,543 9,191,363 2.92 0.0% 897,858 619,658 N/A 2,570,545 2.86 N/A 110,915 99,773 8,713 786,101 7.09 3.1% 211,887 104,540 8,044 618,061 2.92 0.0% 5,775,294 2,938,051 223,788 $ 17,228,444 $ 2.98 0.1% 85 $ $ $ $ $ $ $ $ $ $ 3,490,934 1,506,444 168,166 9,404,570 2.69 0.0% 969,718 480,480 60,857 2,645,244 2.73 0.0% 120,642 98,668 8,713 812,589 6.74 3.30% 204,176 279,762 22,045 1,653,801 8.10 2.70% 6,110,905 2,884,117 298,991 $ 18,366,124 $ 3.01 0.4% Valley Metro Regional Public Transportation Authority Capital Asset Statistics by Function/Program Revenue Vehicles for Transit Service Operations Last Ten Fiscal Years Fiscal Year 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Local and Express Bus Paratransit / Dial-a-Ride 80 133 181 172 192 257 251 242 205 207 62 61 57 75 76 76 111 80 58 25 Vanpool NA 250 303 308 347 421 376 376 400 419 Source: National Transit Data Base (NTD) (1999/00-2007/08) FAS GOV 100 Asset Accounting (2008/09-current) (1) For years FY 1998 through FY 2004, the NTD reported numbers included vans that were owned by the contractor; thus, those assets are not reported. 86 101 N. First Avenue | Suite 1300 | Phoenix, AZ 85003 | ValleyMetro.org RPT1831 June 2012 CAFR REPORT cover.indd 2 1/16/2013 9:37:50 AM