South Florida Regional Transportation Authority Comprehensive Annual Financial Report Fiscal Year Ended June 30, 20177
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SOUTH FLORIDA REGIONAL TRANSPORTATION AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 20177 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, 2017 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 As I write this message, the South Florida Regional Transportation Authority has just survived the effects of Hurricane Irma. Although the course of the storm changed and South Florida did not experience the full extent of its power, the corridor did sustain significant enough damage to cause a one week service suspension. Fortunately, after removing the miles of trees that covered the tracks and the successful restoration of power, Tri-Rail resumed operation to serve the thousands of riders who depend on the system to get them where they need to be every day. Fiscal Year 2017 brought with it challenges and accomplishments. Just prior to the close of FY 2017, the SFRTA moved into its new Operations Center adjacent to the Pompano Beach Station. The move has enabled SFRTA to consolidate virtually all of its functions, including operations, dispatching, administration and outreach into one facility. This has significantly enhanced communications and has enabled the SFRTA to more effectively and efficiently serve its passengers. 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. SFRTA continues to operate 50 trains each weekday and 30 trains on Saturday, Sunday and holidays. 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. AAF is helping to defray the cost of Tri-Rail’s new MiamiCentral by generously donating land for the station, as well as amortizing construction costs to the SFRTA’s benefit. Service into Miami is expected to begin sometime within FY18. Cities along the FEC corridor have been clamoring for commuter rail service to the east. The construction of MiamiCentral is the first step toward bringing that vision to a reality. Tri-Rail Coastal Link could potentially provide direct access to the downtowns of cities as far north as Jupiter, with Miami serving as its southern terminus. During FY 2018, we look forward to the opening of the new Pompano Beach Station, which will be the first LEED-certified station on the corridor; energy efficient and environmentally sensitive. It will provide 110% of the necessary power to operate the station through solar panels. It will have electric car charging stations and will be landscaped with native vegetation. There will be a projected savings of 85% over the cost of operating our existing stations due to the self-generated solar power source. Included in the project is also a new Parking Garage, which houses the solar panels to power the station, and the new Operations Center. Mobilization began in FY17 to implement a new contract which bundled together the operations, equipment maintenance, station maintenance and dispatch functions. The approximately $500 million dollar contract was awarded through the competitive RFP process to Herzog Transit Services, Inc. By bundling the contract, the SFRTA hopes to achieve greater accountability and efficiencies from its contractor. SFRTA will continue to work with CSXT, Florida Department of Transportation, and Amtrak to unify our efforts in 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 the completion of PTC by 2018. We would like to thank SFRTA’s Governing Board for its direction and support. We also extend our thanks and appreciation to SFRTA’s management and staff for their continued dedication in 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 ....................................................................................... 7 Mission Statement...................................................................................................................................8 Organizational Structure ......................................................................................................................... 9 Certificate of Achievement ................................................................................................................... 10 FINANCIAL SECTION Independent Auditors’ Report ............................................................................................................... 11 Management’s Discussion and Analysis ............................................................................................... 13 Financial Statements Statement of Net Position .............................................................................................................. 29 Statement of Revenues, Expenses and Changes in Net Position ................................................... 30 Statement of Cash Flows ............................................................................................................... 31 Notes to Financial Statements ....................................................................................................... 32 REQUIRED SUPPLEMENTARY INFORMATION Schedule of SFRTA Proportionate Share of the Net Pension Liability – Florida Retirement System…54 Schedule of SFRTA Contributions – Florida Retirement System…………………………………….55 Schedule of SFRTA Proportionate Share of the Net Pension Liability – Retiree Health Insurance Subsidy……………………………………………………………………………………………...…56 Schedule of SFRTA Contributions – Retiree Health Insurance Subsidy…………………………...…57 OTHER REQUIRED SUPPLEMENTARY INFORMATION Supplemental Schedule of Operating Expenses for 2017 ..................................................................... 59 Supplemental Schedule of Operating Expenses for 2016 ..................................................................... 60 STATISTICAL AND GENERAL INFORMATION SECTION (Not Covered by Auditor’s Report) Net Position and Changes in Net Position ............................................................................................ 62 Statistical and General Information ...................................................................................................... 63 Fare Structure ........................................................................................................................................ 64 Ridership and Sales Analysis ................................................................................................................ 65 Population Trends ................................................................................................................................. 67 STATISTICAL AND GENERALINFORMATION SECTION Continued (Not Covered by Auditor’s Report) Principal Employers by County ................................................................................................................ 68 Demographics and Economics Statistics .................................................................................................. 69 Capital Assets Statistics and Employees by Department .......................................................................... 70 Train Schedule .......................................................................................................................................... 71 Timeline ................................................................................................................................................... 72 Awards Page ................................................................................................................................................... 73 System Map .............................................................................................................................................. 74 INTRODUCTORY SECTION LETTER OF TRANSMITTAL GOVERNING BOARD AND MANAGEMENT MISSION STATEMENT ORGANIZATIONAL STRUCTURE CERTIFICATE OF ACHIEVEMENT This page is intentionally left blank December 27, 2017 Commissioner Steven L. Abrams, 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