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2017-MARTOC-Encrypted-Report.Pdf MARTOC REPORT Fiscal Year 2017 August 31, 2017 The Honorable Tom Taylor Chair, Metropolitan Atlanta Rapid Transit Overview Committee 614-A Coverdell Legislative Office Building Atlanta, GA 30334 Dear Chairman Taylor: MARTA is pleased to present our annual Report to the Metropolitan Atlanta Rapid Transit Overview Committee (MARTOC), prepared in accordance with the requirements established by Section 14A and 17G of the MARTA Act. This report contains information pertaining to the 2017 Fiscal Year, which covers the period from July 1, 2016 to June 30, 2017. MARTA maintained its positive track in FY 2017, completing a 5th consecutive year with a balanced budget while adding to our reserve fund. In addition, the City of Atlanta passed a referendum authorizing a half-penny increase in the MARTA sales and use tax collected within the city limits. The measure passed with more than 70% of the vote. This new revenue will be used for the purpose of significantly expanding and enhancing MARTA transit service in Atlanta. MARTA once again enjoyed positive momentum during the 2017 Session of the Georgia General Assembly. MARTA also made further inroads with legislators at all levels across the state to increase support for public transit. Of primary achievement, MARTA was able to refine its process for reviewing proposals for concessions throughout our system via H.B. 506. This bill converted what had long been an invitation to bid (IFB) process to a Request for Proposal (RFP) process, thereby giving the Authority the ability to consider criteria beyond only the highest revenue projections from interested parties. We expect this change to contribute significantly to the expansion of future concession services MARTA offers to our patrons across the entire system. In addition to our success with H.B. 506, we also played a significant role in what eventually became H.R. 848, the Commission on Transit Funding & Governance. This Commission, charged with making recommendations for transit's future across the state by December 31, 2018, features several high profile legislators and stakeholders. MARTA is represented in an ex-officio capacity via General Manager Keith Parker, while MARTA's Senior Director of External Affairs, Rhonda Briggins, will sit on the Commission as a voting member in her role as President of the Georgia Transit Association (GTA). Other legislative items of interest impacting MARTA included H.B. 265 (exempts Woodruff Arts Center ticket sales from MARTA taxing) and S.R. 228 (future passenger rail line protections for CSX corridors throughout the state). MARTA also enjoyed much good will for the role it played in alleviating commuter woes and providing mobility during the 1-85 collapse crisis that, coincidentally, occurred about 2 hours after H.R. 848 was passed in the House on the final day of the 2017 Session of the Georgia General Assembly. In deploying additional service, extending hours, and working with key stakeholders in transit, government and the private sector, MARTA was able to contribute significantly to easing the travel frustrations experienced by millions across the metro region. The Authority was featured by USDOT Secretary Elaine Chao and Governor Deal at the May press conference announcing the reopening of the 1-85 highway. We look forward to having MARTA continue playing a critical role for the solutions needed for a growing Atlanta metro region. We foresee a future push toward additional local funding as well as working with state lawmakers on long-term, state-sponsored investments in transit. The recently adopted MARTA FY2018 budget, as with last year's, contains no fare increases for our customers and continues increased service levels on both bus and rail. The MARTA Transformation Initiative (MTI), our comprehensive plan to explore cost savings and/or improvements in 12 functional areas, continues to advance. As required by the MARTA Act, verified copies of this report will be filed with MARTOC, the presiding officers of the State Senate and State House of Representatives, and the State Auditor, as well as the governing authorities of each county and the largest municipality in the area served by MARTA. It will be properly advertised, will be available at MARTA's principal office for public inspection, and will be posted on the Authority's website. As Chair of the Board and General Manager/Chief Executive Officer of MARTA, we verify the contents of this report to be as accurate and complete as reasonably possible and in compliance with our understanding of the requirements of the above mentioned legislation. We have made every attempt to provide comprehensive information within this document. Should any additional information or clarification be required, please do not hesitate to contact us at 404-848-5313. Sinq'el(!IL Robert L. Ashe, Ill - Chair, Board of Directors eneral Manager/CEO cc: Members, Metropolitan Atlanta Rapid Transit Overview Committee Governor, State of Georgia Lieutenant Governor, State of Georgia Speaker, Georgia House of Representatives Auditor, State of Georgia Mayor, City of Atlanta Members, Atlanta City Council Chair, Clayton County Board of Commissioners Members, Clayton County Board of Commissioners CEO, DeKalb County Members, DeKalb County Board of Commissioners Chair, Fulton County Board of Commissioners Members, Fulton County Board of Commissioners REPORT VERIFICATION Personally appeared before me, the undersigned authority duly authorized to administer oaths, MR. ROBERT L. ASHE, Ill, Chair, Board of Directors of the Metropolitan Atlanta Rapid Transit Authority, and KEITH T. PARKER, General Manager/Chief Executive Officer, each of whom on oath individually deposes and says that the information set forth in the foregoing attached statement submitted pursuant to the requirements of Section 14A and 17G ~ MARTA Act, as ,amended, is true and correct to the best of their knowledge and belief. /. / ~ As to MR. ROBERT L. ASHE, Ill: ' I~ (__ / / ---:::::;-- Mr. Robert L. Ashe, Ill Chair, Board of Directors 11111,,,, Sworn to and subscribed before me ttijs, 1 Metropolitan Atlanta Rapid Transit Authority -z,s''..1. day of August, 2017. ,,,'~0'-:\~. ~-~.?tt-}',,. ~~ ,' °+OTAf;j;. v \ , !\ .: EXPIRES ·.•. ~ Nory Public : ~ GEORGIA : : '.: ·. JUNE 17, 2018 : :: \.. ·i··.fOBnC:.·i ,/ ',,,<roN·· ..c ··o··0~ ,,,' As to KEITH T. PARKER: /,,, ,,,, I I I II II I I I I ,U// ~( - Keith T. Parker General Manager/CEO Metropolitan Atlanta Rapid Transit Authority Tyrene L Huff NOTARY PUBLIC Fulton County, GEORGIA My Commission Expires September 18, 2018 METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY FINANCIAL STATEMENTS OPERATING AND CAPITAL CONSOLIDATED FINANCIAL STATEMENT This report reflects a consolidated summary of the Statement of Operating Revenues and Expenses and the Statement of Capital Sources and Expenditures. This report is unaudited. Please see the following page for details on the referenced statements. STATEMENT OF OPERATING REVENUES AND EXPENSES This report includes all revenue and expenses that are considered operating items per the MARTA ACT. This report does not include any year-end reclassifications or adjustments that are routine to any year-end close-out. In addition, this report does not include any possible recommended adjustments from the external auditors; it is unaudited. This report is not meant to serve as MARTA’s official financial statements. MARTA financial statements are prepared in accordance to Generally Accepted Accounting Principles. The referenced financial statements will be audited by and independent accounting firm and will be available in hard copy by December 2017. STATEMENT OF CAPITAL SOURCES AND EXPENDITURES This report reflects all sources of funds available to cover capital expenditures for fiscal year 2017. It also details all capital expenditures, bond debt and related bond costs covered under the sources of funds. This report does not include any year-end reclassifications or adjustments that are routine to any year-end close-out. In addition, this report does not include any possible recommended adjustments from the external auditors; it is unaudited. This report is not meant to serve as MARTA’s official financial statements. MARTA financial statements are prepared in accordance to Generally Accepted Accounting Principles. The referenced financial statements will be audited by and independent accounting firm and will be available in hard copy by December 2017. Metropolitan Atlanta Rapid Transit Authority Operating and Capital Consolidated Financial Statement June 30, 2017 (Unaudited) Operating Revenue $ 457,788,000 Capital Funding 466,140,000 Total Operating Revenue and Capital Funding $ 923,928,000 Operating Expenses $ 451,220,000 Capital Expenditures 292,541,000 Total Operating Expenses and Capital Expenditures $ 743,761,000 Metropolitan Atlanta Rapid Transit Authority Statement of Operating Revenues and Expenses June 30, 2017 (Unaudited) Revenues: Operating Sales Tax $ 203,210,000 Passenger Revenue 134,949,000 Ad Valorem Tax 30,407,000 Station Parking 2,965,000 Lease Income 9,303,000 Federal Assistance 69,000,000 Other Operating Revenue 7,954,000 Total Operating Revenues $ 457,788,000 Expenses: Salaries $ 251,756,000 Benefits 123,049,000 Contractual Services 65,196,000 Materials & Supplies 39,298,000 Other Operating Expenses 13,709,000 Casualty & Liability 10,515,000 Other Non-Operating/ Misc 5,485,000 Inventory Adjustments 247,000 Expense Allocated to Capital Projects (58,035,000) Total Operating Expenses $ 451,220,000 Metropolitan Atlanta Rapid
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