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UTA Mission Statement Utah Transit Authority strengthens and connects communities thereby enabling individuals to pursue a fuller life with greater ease and convenience by leading through partnering, planning and wise investments of physical, economic and human resources. Comprehensive Annual Financial Report For Fiscal Years Ended December 31, 2014 and 2013 Finance Department Robert K. Biles Vice President, Finance Danyce Steck Comptroller UTAH TRANSIT AUTHORITY UTAH TRANSIT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Years Ended December 31, 2014 and 2013 TABLE OF CONTENTS Section One - INTRODUCTORY Letter of Transmittal ………………………………………………………………………………... 7 Certificate of Achievement for Excellence in Financial Reporting ………………………………… 14 Organizational Chart ……………………………………………………………..…………………. 15 Board of Trustees and Administration …………………………………………………...…………. 16 System Map …………………………………………………………………………………. 19 Section Two - FINANCIAL Independent Auditor’s Report ………………………………………………………………………. 21 Management's Discussion and Analysis ……………………………………………………………. 23 Financial Statements Comparative Statements of Net Position .……………………………………………………... 32 Comparative Statements of Revenues, Expenses, and Changes in Net Position ……………… 34 Comparative Statements of Cash Flows ………………………………………………………. 35 Notes to the Financial Statements ……………………………………………………………... 36 Section Three – STATISTICAL 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. Net Position ……………………………………………………………………………………. 6 0 Change in Net Position ………………………………………………………………………... 61 Revenue History by Source …………………………………………………………………… 62 Expense History by Function …………………………………………………………………. 63 Revenue Capacity: These schedules contain information to help the reader assess the Authority's most significant local revenue sources. Sales Tax Collected by County ………………………………………………………………... 64 Transit Sales Tax Rates by County ……………………………………………………………. 64 Principal Contributors of Sales Tax …………………………………………………………… 64 Fares …………………………………………………………………………………………… 65 Debt Capacity: These schedules present information to help the reader assess the affordability of the Authority's current level of outstanding debt and the Authority's ability to issue additional debt in the future. Debt Service Coverage .……………………………………………………………………...... 66 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. Demographic and Economic Statistics .……………………………………………………...... 67 Principal Employers….….……………………………………………………………………... 67 UTAH TRANSIT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Years Ended December 31, 2014 and 2013 TABLE OF CONTENTS (continued) Section Three – STATISTICAL (continued) 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. Full Time Equivalent Employees ……. .……………………………………………………...... 68 Trend Statistics .………………………………………….…………………………………...... 69 Operating Indicators and Capital Assets……………………………………………………...... 71 Industry Comparative Statistics 2013 Performance Measures – Light Rail ………...……………………………………...... 72 2013 Performance Measures – Bus Service.……………………………………………….. 73 2013 Performance Measures – Demand Response .……………………………………….. 74 2013 Performance Measures – Commuter Rail..…………………………………………… 75 Graphs .……………………………………………………........................................................ 76 For Fiscal Years Ended December 31, 2014 and 2013 For Fiscal Years Ended December 31, 2014 and 2013 6 669 West 200 South Salt Lake City, Utah 84101 1-888-RIDE-UTA June 10, 2015 www.rideuta.com To the Board of Trustees Utah Transit Authority and Citizens within the UTA Service Area We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the Utah Transit Authority (the Authority) for the fiscal years ended December 31, 2014 and 2013. This document has been prepared by the Authority’s Finance Department using the guidelines recommended by the Government Finance Officers Association of the United States and Canada and conforms to accounting principles generally accepted in the United States of America and promulgated by the Governmental Accounting Standards Board. This report contains financial statements and statistical data which provide full disclosure of all the material financial operations of the Authority. The financial statement and statistical information are the representation of the Authority’s management which bears the responsibility for their accuracy, completeness and fairness. The financial statements have been prepared on the accrual basis of accounting in conformance with generally accepted accounting principles. The Authority is accounted for as a single enterprise fund. This CAFR is indicative of the Authority’s commitment to provide accurate, concise and high-quality financial information to the residents of its service area and to all other interested parties. For Fiscal Years Ended December 31, 2014 and 2013 7 UTAH TRANSIT AUTHORITY INTRODUCTORY SECTION Years Ended December 31, 2014 and 2013 The Authority The Utah Transit Authority was incorporated on March The President/CEO, General Counsel and the Internal 3, 1970 under authority of the Utah Public Transit Auditor for the Authority report to the Board of District Act of 1969 for the purpose of providing a Trustees. An organizational chart which illustrates the public mass transportation system for Utah reporting relationships follows in the introductory communities. The Authority is governed by a 16 section. member board of trustees which is the legislative body of the Authority and determines all questions of The Regional General Managers and the General Authority policy. Twelve members of the Board of Managers of Special Services, Commuter Rail and Trustees, including one non-voting member, are LightRail report to the Chief Operating Officer. The appointed by each county, municipality or combination corporate executive staff meets weekly to coordinate of municipalities which have been annexed to the management of the affairs of the organization. The Authority. The Board also includes one member who is executive staff meets at least monthly in a policy forum appointed by the State Transportation Commission who to review and set management policies and set goals and acts as a liaison between the Authority and the objectives for the organization. The Authority serves the Transportation Commission, one member of the board largest segment of population in the State of Utah is appointed by the Governor, one member is appointed known as the Wasatch Front. The Authority’s service by the Speaker of the Utah State House of area lies in the region commonly referred to as the Representatives and one member is appointed by the Wasatch Front. The service area extends from the President of the State Senate. Wasatch Mountains on the east to the Great Salt Lake on the west, is approximately 100 miles long and 30 All fifteen voting members have an equal vote as the miles wide, and consists of an area of approximately Board of Trustees passes ordinances and sets policies 1,400 square miles that covers all or portions of six (6) for the Authority. principal counties (Box Elder, Davis, Salt Lake, Tooele, Utah and Weber). The service area also includes a small The responsibility for the operation of the Authority is portion of Juab County. The total population within the held by the President/CEO in accordance with the six principal counties is approximately 2,300,000 which direction, goals and policies of the Authority’s Board of represents approximately 79% of the state’s total Trustees. The President/CEO has full charge of the population. acquisition, construction, maintenance, and operation of the facilities of the Authority and of the administration of the business affairs of the Authority. The President/CEO supervises the executive staff which includes the Vice President of Communications and Customer Focus, Vice President of Finance, Vice President of Operations, Chief Business Solutions and Technology Officer, Chief Development Officer, Chief Planning Officer, Chief Safety and Security Officer/Chief of Staff, and Senior Advisor to the President/CEO. TRAX Blue Line For Fiscal Years Ended December 31, 2014 and 2013 8 UTAH TRANSIT AUTHORITY INTRODUCTORY SECTION Years Ended December 31, 2014 and 2013 Current Year Review The mission statement developed by the Authority’s During 2014, the Utah Transit Authority continued to Board of Trustees continues to guide the activity and work with our developer partners on our transit oriented direction of the Transit Authority. The mission statement development sites. The Sandy Civic Center TRAX station is: site had approvals from Sandy City and the UTA Board of Trustees for the first two phases of development. A Utah Transit Authority strengthens and connects ground breaking ceremony was held for the first phase communities, thereby enabling individuals to pursue a apartment complex and design was finalized on the phase fuller life with greater ease and convenience by leading two project, an office building for the Utah Division of through partnering, planning, and wise investment of Child and Family Services. Entitlement