Comprehensive Annual Financial Report

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Comprehensive Annual Financial Report Comprehensive Annual Financial Report For Fiscal Year Ended December 31, 2007 SM UTAH TRANSIT AUTHORITY Utah Transit Authority Strengthens and connects communities 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 investment of physical, economic, and human resources.” Comprehensive Annual Financial Report For Fiscal Year Ended December 31, 2007 Finance Department Kenneth D. Montague, Jr. Chief Financial Officer Daniel J. Harps Comptroller SM UTAH TRANSIT AUTHORITY Table of Contents Section One - INTRODUCTORY Letter of Transmittal . 1 Certificate of Achievement . 10 Organizational Chart . 11 Board of Trustees and Administration . 12 Service Area Map. 15 Section Two - FINANCIAL Independent Auditor’s Report . 17 Management’s Discussion and Analysis . 18 Financial Statements: Comparative Balance Sheets . 26 Comparative Statements of Revenues, Expenses and Changes in Net Assets . 27 Comparative Statements of Cash Flows . 28 Notes to the Financial Statements . 29 Section Three - STATISTICAL Financial Trends. 52 Revenue Capacity . 56 Debt Capacity. 59 Demographic and Economic Information . 61 Operating Information . 64 Industry Comparative Statistics: 2005 Performance Measures - Light Rail . 66 2005 Performance Measures - Bus Service. 67 2005 Performance Measures - Demand Response . 68 Graphs.................................................................................69 INTRODUCTORY SM June 1, 2008 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 year ended December 31, 2007. This document has been prepared by the accounting and finance departments using the guidelines recommended by the Government Finance Officers Association of the United States and Canada and conforms with generally accepted accounting principles 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. UTAH TRANSIT AUTHORITY 3600 SOUTH 700 WEST P.O. BOX 30810 SALT LAKE CITY, UTAH 84130-0810 TEL. 801.262.5626 www.rideuta.com 1 The Authority The Utah Transit Authority was supervises the executive staff The Internal Auditor for the incorporated on March 3, 1970, which is organized into two groups, Authority reports to the Board of under authority of the Utah Public the Corporate Forum and the Trustees. An organizational chart Transit District Act of 1969 for the Business Unit Forum. The which illustrates the reporting purpose of providing a public mass Corporate Forum includes the relationships follows in the transportation system for Utah General Manager, Assistant introductory section. communities. The Authority has General Manager, Chief Capital been governed by a 15 member Development Officer, Chief The Authority serves the largest board of trustees which is the Operating Officer, Chief Financial segment of population in the State legislative body of the Authority Officer, Chief Communications of Utah known as the Wasatch and determines all questions of Officer, Chief Technology Officer, Front. Its service area includes Salt Authority policy. The number of General Counsel and Executive Lake, Davis and Weber Counties, board members will increase to 19 Secretary. The Business Unit the Cities of Alpine, American on July 1, 2008. Fifteen members Forum includes the Regional Fork, Cedar Hills, Highland, Lehi, of the Board of Trustees are General Manager of Lindon, Mapleton, Orem, Payson, appointed by each county Meadowbrook, Regional General Pleasant Grove, Provo, Salem, municipality or combination of Manager of Mt. Ogden, Regional Spanish Fork and Springville and municipalities which have been General Manager of Timpanogos, Provo Canyon in Utah County and annexed to the Authority. The Regional General Manager of the Cities of Tooele and Grantsville Board will also include one Special Services, Regional General in Tooele County and that part of member who is appointed by the Manager of Central, Rail Service Tooele County comprising the Transportation Commission who General Manager, Chief Financial unincorporated areas of Erda, acts as a liaison between the Officer, Chief Technology Officer Lakepoint, Stansbury Park, and Authority and the Transportation and the Chief Operating Officer. Lincoln, and the cities of Brigham Commission. One member of the Each group meets periodically to City, Perry and Willard in Box board will be appointed by the coordinate and manage the affairs Elder County. The population of Governor. One member will be and operations of the Authority. On the Authority’s service area is appointed by the speaker of the a monthly basis both groups meet estimated at 2,121,188 and Utah State House of together in a Policy Forum to represents 79% percent of the Representatives and one member review and set management State’s total population. will be appointed by the President policies, goals and objectives. The of the State Senate. Civil Rights Department also reports to the General Manager. All nineteen members will have an equal vote as the Board of Trustees passes ordinances and sets policies for the Authority. The responsibility for the operation of the Authority is held by the General Manager in accordance with the direction, goals and policies of the Authority’s Board of Trustees. The General Manager has full charge of the acquisition, construction, maintenance, and operation of the facilities of the Authority and of the administration of the business affairs of the Authority. The General Manager Downtown Salt Lake City 2 Current Year Review The mission statement developed an integrated part of the Authority’s After successfully completing a by the Authority’s Board of regional transit system. Buses will pilot program for electronic fare Trustees continues to guide the serve each of the individual stations collection on UTA’s ski service in activity and direction of the Transit providing connections to 2007, the Authority determined to Authority. The mission statement residential and commercial areas. expand the electronic fare is: The southern terminus, the Salt collection systemwide. This new Lake Central station, provides a system allows patrons using the bus Utah Transit Authority strengthens connection between commuter rail system to touch and ride. Patrons and connects communities, thereby and light rail. The Salt Lake with an appropriate pass will be enabling individuals to pursue a Central station is an intermodal hub able to touch the pass to the reader fuller life with greater ease and that also serves Utah Transit to allow them to ride. Other riders convenience by leading through Authority buses, Greyhound buses will be able to pay for their ride by partnering, planning, and wise and the Amtrax station. In order to use of a contactless debit or credit investment of physical, economic meet up with FrontRunner service, card which when touched to the and human resources. the TRAX system was extended reader will automatically charge the from the Arena Station to the appropriate fare to the patron’s During 2007 continued progress Intermodal hub called the Salt Lake debit or credit card account. This was made on the construction of the Central station. There are two stops system will bring an added FrontRunner Commuter Rail Line between the Arena station and the convenience to customers for the from Salt Lake City through Davis Salt Lake Central station. One at payment of fares and will help UTA and Weber counties to Pleasant 100 South and 400 West, adjacent provide better service by View. At year end the project was to the Gateway development called monitoring ridership and passenger over 90% completed and opened on the Planetarium station and the useage. During 2007, the Authority April 26, 2008 for service to the second on 200 South at 500 West acquired ten additional commuter public. FrontRunner is called Old Greek Town. This “over the road” buses to be able to approximately 44 miles long and TRAX extension was also provide better service to that will operate between Pleasant View completed in the Spring of 2008 segment of the market and to retire through the Ogden City Transit and opened for service on April older buses. Center and terminate at the Salt 26th to meet FrontRunner service. Lake City Intermodal Center called Salt Lake Central Station. The stations that opened on April 26, 2008 included Ogden, Roy Clearfield, Layton, Farmington, Wood Cross and Salt Lake City. The station in Pleasant View is expected to open in the fall of 2008. FrontRunner will operate on tracks exclusively for commuter rail for 38 miles between
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