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2017 Comprehensive Annual Financial Report Year Ended December 31, 2017

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2017 Comprehensive Annual Financial Report Year Ended December 31, 2017 2017 Comprehensive Annual Financial Report Year Ended December 31, 2017 Community Transit Snohomish County, Washington communitytransit.org 2017 BOARD OF DIRECTORS Board Chair - Stephanie Wright Board Vice Chair - Leonard Kelley Board Secretary - Jennifer Gregerson Board Member - Dave Earling Board Member - Tom Hamilton Board Member - Jon Nehring Board Member - Lance Norton Board Member - Terry Ryan Board Member - Jan Schuette Board Member - Mike Todd BOARD ALTERNATES Board Alternate - Patsy Cudaback Board Alternate - George Hurst Board Alternate - Joe Neigel Board Alternate - Jerry Smith 2017 EXECUTIVE TEAM CEO Chief Executive Officer Emmett- Heath DIRECTORS Director of External Affairs - Todd Morrow Chief Technology Officer - Tim Chrobuck Director of Administration - Geri Beardsley Director of Customer Experience - Molly Marsicek Director of Maintenance - Dave Richards Director of Planning & Development - Joy Munkers Director of Transportation - Fred Worthen Table of Contents Section One – Introduction Letter of Transmittal ................................................................................................................... 1 Principal Officials ..................................................................................................................... 17 Organizational Chart ................................................................................................................ 18 Certificate of Achievement ....................................................................................................... 19 State Auditor’s Stewardship Award ......................................................................................... 20 Section Two - Financial Independent Auditor’s Report .................................................................................................. 23 Management’s Discussion and Analysis ................................................................................. 26 Basic Financial Statements Statement of Net Position ................................................................................................. 36 Statement of Revenues, Expenses, and Changes in Net Position ................................... 38 Statement of Cash Flows .................................................................................................. 39 Notes to the Financial Statements .................................................................................... 41 Required Supplementary Information Pension Data Schedule of Proportionate Share of Net Pension Liability ......................................... 74 Schedule of Employer Contributions .......................................................................... 75 Other Postemployment Benefits (OPEB) Plan Data Schedule of Funding Progress ................................................................................... 76 Schedule of Employer Contributions .......................................................................... 76 Section Three - Statistical Financial Trends Net Position, Ten-Year Comparison ................................................................................. 81 Change in Net Position, Ten-Year Comparison ................................................................ 82 Expenses, Ten-Year Comparison ..................................................................................... 84 Revenue Capacity Revenues, Ten-Year Comparison .................................................................................... 86 Retail Taxable Sales, Ten-Year Comparison ................................................................... 88 Snohomish County Overlapping Sales Tax Rates, Ten-Year Comparison ...................... 90 Debt Capacity Bond Coverage, 2004, 2010 and 2017 Bond Issues, Last Ten Fiscal Years ................... 91 Snohomish County Assessed Valuation, Ten-Year Comparison ..................................... 92 Outstanding Debt by Type, Ten-Year Comparison ........................................................... 93 Legal Debt Margin Information, Ten-Year Comparison .................................................... 94 Demographic and Economic Information Snohomish County Demographic and Economic Statistics, Ten-Year Comparison ........ 96 Snohomish County Principal Employers, Fiscal Years Ending December 31, 2017 and 2008 .............................................................................................................. 97 Snohomish County Population Demographics Statistics, Ten-Year Comparison ............ 98 Operating Information Snohomish County Public Transportation Benefit Area Map 2017 .................................. 99 Service Statistical Data, Ten-Year Comparison ............................................................. 100 Ridership, Ten-Year Comparison ................................................................................... 101 Service Hours, Ten-Year Comparison ............................................................................ 102 Service Miles, Ten-Year Comparison ............................................................................. 103 Fare Structure, Ten-Year Comparison............................................................................ 104 Miscellaneous Operational Data, December 31, 2017 ................................................... 105 Capital Assets, Active Revenue Vehicles, Ten-Year Comparison ................................. 106 This page left blank intentionally. We are building a colorful network of Swift Bus Rapid Transit (BRT) lines with fast, easy connections to job and population centers. The Swift Blue Line, the first BRT in the state, is our highest ridership Introductory Section route, carrying 5,500 passengers each weekday between Aurora Village and Everett. In 2019, the Swift Green Line will connect the Canyon Park high-tech corridor with Boeing/Paine Field. Future plans include additional Swift lines to bring even more connections and opportunities to Snohomish County. This page left blank intentionally. Board of Directors June 19, 2018 Snohomish County Public Transportation Benefit Area Corporation Snohomish County, Washington Subject: Comprehensive Annual Financial Report Honorable Chair and Members of the Board: This letter of transmittal presents Snohomish County Public Transportation Benefit Area Corporation’s (dba Community Transit) Comprehensive Annual Financial Report for the year ended December 31, 2017. The Comprehensive Annual Financial Report was prepared by Administration Department staff. Responsibility for the accuracy, completeness, and fairness of the data presented and the clarity of the presentation, including all disclosures, rests with the management of Community Transit. We believe the data, as presented, is accurate in all material aspects, that it fairly presents Community Transit’s financial position and results of operations, and that we have included disclosures necessary for the reader to gain an understanding of Community Transit’s affairs. State law requires that Community Transit be audited annually for compliance with existing statutes, adequacy of internal controls, and accuracy in financial accounting and reporting. The Washington State Auditor’s Office has issued an unmodified (clean) opinion on Community Transit’s financial statements for the year ended December 31, 2017. The independent auditor’s report is located at the front of the Financial Section of this report. The Management’s Discussion and Analysis (MD&A) provides a narrative introduction, overview, and analysis to the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Community Transit’s MD&A can be found immediately following the independent auditor’s report. Community Transit’s Profile The Agency Community Transit, a special purpose municipal corporation providing public transportation services, began operations on October 4, 1976. The agency’s original service area consisted of Edmonds, Lynnwood, Marysville, Mountlake Terrace, Brier, Snohomish, and Woodway. The 1 Letter of Transmittal (cont.) following table shows when residents of other Snohomish County communities approved annexation into Community Transit’s service area. Year Communities Added To Community Transit’s Service Area 1977 Lake Stevens and Monroe 1979 Granite Falls, Mukilteo, Stanwood, and Sultan 1980 Arlington 1981 Goldbar, Index, and Startup 1982 Oso and Darrington 1983 Mill Creek 1992 Snohomish County portion of Bothell 1997 Silver Firs and the Tulalip Indian Reservation Today, Community Transit’s boundaries encompass a land area slightly in excess of 1,300 square miles including most of urbanized Snohomish County, except for the city of Everett. On the south, Community Transit borders King County, which includes the cities of Seattle and Bellevue. Community Transit serves more than 576,000 residents, about 73 percent of Snohomish County’s population. The remainder of the county’s population resides in the city of Everett and in less populated areas in north and east Snohomish County. Snohomish County is one of the fastest growing counties in the nation. Although the city of Everett is not part of Community Transit’s service area and taxing authority, Community Transit provides Swift Blue Line bus rapid transit service to Everett Station and receives payment from the city of Everett for this service. Governing Body Community Transit is governed by a Board of Directors consisting of nine voting members
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