GREATER HARTFORD TRANSIT DISTRICT HARTFORD, CONNECTICUT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 GREATER HARTFORD TRANSIT DISTRICT HARTFORD, CONNECTICUT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 Prepared by: Accounting Department GREATER HARTFORD TRANSIT DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS JUNE 30, 2016 Introductory Section Page Letter of Transmittal i-iv GFOA Certificate of Achievement v Organizational Chart vi Board of Directors vii Financial Section Independent Auditors’ Report 1-3 Management’s Discussion and Analysis 4-10 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 11 Statement of Activities 12 Fund Financial Statements: Balance Sheet - Governmental Funds 13 Reconciliation of the Balance Sheet - Governmental Funds to the 14 Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 16 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (GAAP Basis) - General and Special Revenue Funds 17 Statement of Net Position - Proprietary Funds 18 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 19 Statement of Cash Flows - Proprietary Funds 20 Notes to the Financial Statements 21-34 Supplemental Combining Schedule Special Revenue Fund: Combining Schedule of Revenues, Expenditures and Changes in Fund Balances by Project - Special Revenue Fund 35-36 Statistical Section Net Position by Component 37 Changes in Net Position - Entity Wide 38-39 Changes in Net Position - Purchased Transportation Program 40 Governmental Activities Revenue by Source 41 Fund Balances of Governmental Funds 42 Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 43 Governmental Funds Revenue by Source 44 Principal Revenue Payors 45 Pledged-Revenue Coverage - Parking Lot Bonds 46 Net General Bonded Debt Per Capita 47 Demographic Statistics 48 Principal Employers 49 Full-Time Government Employees by Function/Program 50 Operating Indicators by Function/Program 51 Capital Asset Statistics by Function/Program 52 INTRODUCTORY SECTION November 4, 2016 Members of the Board of Directors Greater Hartford Transit District Hartford, Connecticut The State of Connecticut statutes require that the Greater Hartford Transit District (the District) publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended June 30, 2016. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Blum, Shapiro & Company, P.C., Certified Public Accountants, have issued an unmodified (clean) opinion on the District’s financial statements for the year ended June 30, 2016. The independent auditor’s report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the District The District is a regional governmental unit formed under the provisions of Chapter 103a of the Connecticut General Statutes. There are currently sixteen member towns: Bloomfield, East Hartford, East Windsor, Enfield, Farmington, Granby, Hartford, Manchester, Newington, Rocky Hill, Simsbury, South Windsor, Vernon, West Hartford, Wethersfield and Windsor. Each member town appoints one to four Directors according to population, who collectively form the Board of Directors, which is the policy-making body of the District. The day-to-day affairs of the District are managed by the Executive Director and her staff. The District has broad powers to acquire, operate, finance, plan, develop, maintain and otherwise provide all forms of land transportation and related services including the development or renewal of transportation centers and parking facilities. It has the power to issue revenue and general obligation bonds. The agency also serves a pass-through function for federal, state and private grants for the purpose of acquiring transportation equipment or providing transportation services. The District adopts an annual budget which serves as a foundation for the District’s financial planning and control. The agency owns and operates Hartford Union Station, provides ADA Paratransit service to the Greater Hartford and Greater New Britain regions, and has oversight responsibilities for the CT Drug & Alcohol and the Statewide Insurance Consortium programs. i Economic Impact The economic condition of the District is dependent on various factors, and we continuously seek funding opportunities through federal grants and state financing to support projects and programs benefitting those in our urbanized zoning area. Other aspects affecting the District’s general economic condition include; providing employment opportunities through projects that the District oversees, contracting with a variety of vendors, supporting new transit-related projects for municipalities through grant opportunities, increasing the attractiveness of the area for tourists and visitors by continuously improving amenities at Hartford Union Station. The other critical areas which contribute to economic impact include; providing the disabled and elderly community mobility to jobs, shopping, and recreation through the ADA Paratransit service, and enhancing the effectiveness of transit service programs through the efficiencies generated by transportation coordination. Long-Term Financial and Capital Planning Approach The District’s long term financial and capital planning approach is characterized by a wide range of projections incorporating operational and financial analysis and evaluation. Structuring this District’s balanced capital plan required staff to coordinate information, analyze alternatives, and build consensus. Our success this past year was based on creating an environment that encompassed a wide variety of projects, impacts, priorities, and funding requirements that were taken into account as part of the planning process. Staff oversight included looking at the qualitative aspects of this approach; legal requirements, environmental impacts, green initiatives, public safety, and alternative operating impacts. Short-term and long-term planning processes were managed under a unified planning framework. This included; monitoring contracts and external agreements in a timely fashion, meeting required reporting deadlines to the District’s funding sources, centralizing financial, project, and historical data, tracking projects with multiple funding sources, and establishing and enforcing best practices. Major Initiatives Master Plan-Union Station: The Greater Hartford Transit District (GHTD) engaged a consultant to conduct various tasks related to evaluating the current and future use for the Hartford Union Station. This study is intended to develop a comprehensive master plan for future uses for both the short and long term. ADA Paratransit Operation: Consolidation of both the Greater Hartford and the Greater New Britain ADA Paratransit service areas was completed. Final negotiations were also completed with First Transit to continue to operate the ADA Paratransit service. Paratransit Maintenance and Operations Facility: Currently the Greater Hartford Transit District operates its ADA paratransit service out of a leased facility in the City of Hartford. While that facility is adequate, it does not allow for efficient maintenance and operation of the paratransit fleet. To improve the operation, the District acquired land on Roberts Street in East Hartford for the construction of a modern operations facility. The new facility includes separate operations and maintenance areas. Construction on the site has begun and the expected completion date and opening is expected to be July 2016 if there are no extensive and unforeseen delays. Development of a Transit Center at Union Station: In an effort to more fully integrate Union Station with local CTTransit bus service and to improve amenities for transit users, the District constructed a local bus Transit Center on the northeast side of the station. Located on Union Place, the Center is a new downtown terminus for various CTTransit routes. Service to the Transit Center began in December 2015. ii The Intermodal Triangle Project: The District is assisting the City of Hartford in the implementation of the Intermodal Triangle Project. With construction almost complete, this project will strengthen the region's economic and employment core by improving downtown intermodal connections and increase transit access through the downtown area. Sigourney Street Station Bus Livability Improvements: Working with the City of Hartford, the District is overseeing the development of the Sigourney Street Station - Connectivity Improvements