South Florida Regional Transportation Authority Comprehensive Annual Financial Report
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2016 SOUTH FLORIDA REGIONAL TRANSPORTATION AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2016 A Component Unit of the State of Florida Department of Transportation SOUTH FLORIDA REGIONAL TRANSPORTATION AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT A Component Unit of the State of Florida Department of Transportation FISCAL YEAR ENDED JUNE 30, 2016 Prepared by Finance Department Accounting Division JACK L. STEPHENS C. MIKEL OGLESBY Executive Director Deputy Executive Director RICHARD D. CHESS, MBA MARGARET DALLEY-JOHNS, CPA Director of Finance Accounting Manager This page is intentionally left blank MESSAGE FROM THE EXECUTIVE DIRECTOR On behalf of the South Florida Regional Transportation Authority (SFRTA), I am pleased to present the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2016. The CAFR serves as a resource for the SFRTA Governing Board, management and staff, passengers and other stakeholders. The financial information found in this document is designed to help define the vision to accomplish the Authority’s mission, “To coordinate, develop and implement, in cooperation with all appropriate levels of government, private enterprise and citizens-at-large in the community, a viable regional transportation system in South Florida that endeavors to meet the desires and needs for the movement of people, goods and services.” The SFRTA prides itself on its commitment to meeting the needs and requests of our customers. We have successfully installed Wi-Fi at all stations and on all trains, providing a much requested enhancement of the passenger experience. We have installed 10 bike cars due to the high demand for additional capacity from customers. A real time app has been developed to allow passengers to track their trains, again a requested passenger enhancement. The new SFRTA Operations Center and Pompano Beach Station are well on the way to completion. We look forward to transitioning to our new offices by the end of the year and to the opening of the first LEED Silver certified station on the corridor. This environmentally- friendly station will use solar energy to power the facility, will contain charging stations for cars, and will be landscaped with native vegetation to reduce water consumption. Along with the Operations Center and new station, the three part project also includes a 450-car parking garage. Since its creation as the Tri-County Commuter Rail Authority in 1989 and its transition to the SFRTA in 2003, this has been a goal-driven agency which has consistently seen the completion of major priorities and initiatives. With the South Florida economic climate continuing to show improvement, we are continuing to see ridership in excess of 4 million passengers annually. More than 1 million passengers availed themselves of our free connecting shuttle service during the past fiscal year. During Fiscal Year 2016, we began to replace our existing buses with an all new fleet of Commuter Connectors. We anticipate all new rolling stock to be received and in service by the end of 2016. The most exciting development on the horizon is a partnership with All Aboard Florida (AAF) that will provide a one-seat ride into downtown Miami. Construction of the new Miami Central Station is well underway and is anticipated to be completed in mid to late 2017. Once completed and Brightline begins operation, as AAF has named its service, we will be able to transport our passengers directly into downtown Miami without the need to transfer from the Tri-Rail to Metrorail. The new station will eventually serve as the southern-most terminus of the Tri-Rail Coastal Link, a new service that is proposed to operate on the FEC corridor through the downtowns of South Florida’s coastal cities. Fiscal Year 2015 saw the transition of the maintenance and dispatch of the South Florida Rail Corridor (SFRC) to the SFRTA from CSX Transportation (CSXT). The transition has continued through Fiscal Year 2016 and has not been without its challenges, but it has finally given the SFRTA the chance to prioritize train movement to the benefit of our passengers. MESSAGE FROM THE EXECUTIVE DIRECTOR The SFRTA is continuing to work with CSXT, Florida Department of Transportation, and Amtrak to unify our efforts toward the implementation of Positive Train Control (PTC). PTC will assist in train control, preventing train-to-train collisions, over-speed derailments, incursion into established work zones and movement through a main line switch in the improper position. SFRTA is committed to do all within our power to install PTC by the federally mandated deadline of December 31, 2018. The SFRTA continued to attract new riders through a number of community outreach projects, two of which have become the Agency’s signature events. Annual Rail Fun Day attracted more than 2000 family members to the Fort Lauderdale Airport Station for an afternoon of fun and festivities. A highlight of the event is “South Florida Kids Got Talent,” a competition which showcases South Florida’s young singers. Senior Stars, a competition for singers over the age of 65, continues to attract large audiences and helps to reinforce the importance of Tri-Rail to the mobility of the senior community. During Fiscal Year 2016, we collaborated with Comic-Con, the Ultra Music Festival, and SunFest to expand our visibility in front of new audiences. None of these achievements would have been possible without the direction and support of the SFRTA’s dedicated, hard-working Governing Board. We also extend our thanks and appreciation to SFRTA’s management and staff for their continued commitment to achieving the Authority’s Goals and Objectives. Sincerely, Jack L. Stephens Executive Director TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal …………………………………………………………………………………… 1 Governing Board and Executive Management ………………………………………………………… 10 Mission Statement ……………………………………………………………………………………… 11 Organizational Structure ……………………………………………………………………………….. 12 Certificate of Achievement …………………………………………………………………………….. 13 FINANCIAL SECTION Independent Auditors’ Report …………………………………………………………………………. 14 Management’s Discussion and Analysis……………………………………………………………….. 16 Financial Statements Statement of Net Position ………………………………………………………………………... 34 Statement of Revenues, Expenses and Changes in Net Position …………………………………. 35 Statement of Cash Flows ………………………………………………………………………… 36 Notes to Financial Statements …………………………………………………………………….. 37 REQUIRED SUPPLEMENTARY INFORMATION Schedule of SFRTA Proportionate Share of the Net Pension Liability – Florida Retirement System … 60 Schedule of SFRTA Contributions – Florida Retirement System ……………………………………... 61 Schedule of SFRTA Proportionate Share of the Net Pension Liability – Retiree Health Insurance Subsidy …………………………………………………………………………………………….. 62 Schedule of SFRTA Contributions – Retiree Health Insurance Subsidy ……………………………… 63 OTHER REQUIRED SUPPLEMENTARY INFORMATION Supplemental Schedule of Operating Expenses for 2016 ……………………………………………… 65 Supplemental Schedule of Operating Expenses for 2015 ……………………………………………… 66 STATISTICAL AND GENERAL INFORMATION SECTION (Not Covered by Auditor’s Report) Net Position and Changes in Net Position ……………………………………………………………... 68 Statistical and General Information ……………………………………………………………………. 69 Fare Structure ………………………………………………………………………………………….. 70 Ridership and Sales Analysis ………………………………………………………………………….. 71 Population Trends ……………………………………………………………………………………… 73 STATISTICAL AND GENERAL INFORMATION SECTION Continued (Not Covered by Auditor’s Report) Principal Employers by County ……………………………………………………………………….. 75 Demographics and Economics Statistics ………………………………………………………………. 76 Capital Assets Statistics and Employees by Department ………………………………………………. 77 Train Schedule …………………………………………………………………………………………. 78 Timeline ………………………………………………………………………………………………... 80 Awards Page……………………………………………………………………………………………. 83 System Map…………………………………………………………………………………………….. 84 INTRODUCTORY SECTION LETTER OF TRANSMITTAL GOVERNING BOARD AND MANAGEMENT MISSION STATEMENT ORGANIZATIONAL STRUCTURE CERTIFICATE OF ACHIEVEMENT This page is intentionally left blank December 28, 2016 Commissioner Tim Ryan, Chair and The Governing Board South Florida Regional Transportation Authority Pompano Beach, Florida State law requires that each local government complete its financial statements for the most recent fiscal year in compliance with generally accepted accounting principles and the uniform chart of accounts prescribed by the Department of Financial Services. In accordance with state law, staff is proud to present the South Florida Regional Transportation Authority (SFRTA) Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2016. This report signifies the SFRTA commitment to provide financial information that is accurate, concise, reliable, and of the utmost quality to its Governing Board, the citizens of the tri-county area, and all other interested parties. The SFRTA developed this report with an emphasis on clarity, presentation,andcompleteness,inall material respects, and to present fairly the financial position and results of the SFRTA operations. All disclosures necessary to gain a full understanding of the SFRTA financial activities have been included. Assumption of Responsibility: The SFRTA management produced this report in accordance with guidelines recommended by the Government Finance Officers Association of the United States and Canada (GFOA). The responsibilities for the