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 investments of physical, economic and human resources.” Comprehensive Annual Financial Report For Fiscal Year Ended December 31, 2013 Finance Department Robert K. Biles Chief Financial Officer Danyce Steck Comptroller UTAH TRANSIT AUTHORITY TABLE OF CONTENTS Section One - INTRODUCTORY Letter of Transmittal ………………………………………………………………………………... 7 Certificate of Achievement for Excellence in Financial Reporting ………………………………… 18 Organizational Chart ……………………………………………………………..…………………. 19 Board of Trustees and Administration …………………………………………………...…………. 20 Salt Lake City Map …………………………………………………………………………………. 23 Section Two - FINANCIAL Independent Auditors’ Report ………………………………………………………………………. 25 Management's Discussion and Analysis ……………………………………………………………. 27 Financial Statements Comparative Balance Sheets …………………………………………………………………... 36 Comparative Statements of Revenues, Expenses, and Changes in Net Position ……………… 37 Comparative Statements of Cash Flows ………………………………………………………. 38 Notes to the Financial Statements ……………………………………………………………... 39 Section Three – STATISTICAL Financial Trends: These schedules contain trend information to help the reader understand how the Authority's financial performance and well-being have change over time. Net Position ……………………………………………………………………………………. 65 Change in Net Position ………………………………………………………………………... 66 Revenue History by Source …………………………………………………………………… 67 Expense History by Function …………………………………………………………………. 68 Revenue Capacity: These schedules contain information to help the reader assess the Authority's most significant local revenue sources. Sales Tax Collected by County ………………………………………………………………... 69 Transit Sales Tax Rates by County ……………………………………………………………. 69 Principal Contributors of Sales Tax …………………………………………………………… 69 Fares …………………………………………………………………………………………… 70 Debt Capacity: These schedules present information to help the reader assess the affordability of the Authority's current level of outstanding debt and the Authority's ability to issue additional debt in the future. Legal Debt Margin …………………………………………………………………………...... 71 Debt Service Coverage .……………………………………………………………………...... 71 Demographic and Economic Information: These schedules offer demographic and economic indicators to help the reader understand the environment within which the Authority's financial activities take place. Demographic and Economic Statistics .……………………………………………………...... 72 Principal Employers….….……………………………………………………………………... 72 TABLE OF CONTENTS (continued) Section Three – STATISTICAL (continued) Operating Information: These schedules contain service and infrastructure data to help the reader understand how the information in the Authority's financial report relates to the services the Authority provides and the activities it performs. Full Time Equivalent Employees ……. .……………………………………………………...... 73 Trend Statistics .………………………………………….…………………………………...... 74 Operating Indicators and Capital Assets……………………………………………………...... 75 Industry Comparative Statistics 2012 Performance Measures – Light Rail ………...……………………………………...... 76 2012 Performance Measures – Bus Service.……………………………………………….. 77 2012 Performance Measures – Demand Response .……………………………………….. 78 2012 Performance Measures – Commuter Rail..…………………………………………… 79 Graphs .……………………………………………………........................................................ 80 Introductory SM UTAH TRANSIT AUTHORITY June 12, 2014 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, 2013. This document has been prepared by the Chief Financial Officer’s Office 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. 7 THE AUTHORITY The Utah Transit Authority was The responsibility for the Officer, Chief Operating incorporated on March 3, 1970 operation of the Authority is Officer, Chief Financial under authority of the Utah held by the General Manager in Officer, Chief Communications Public Transit District Act of accordance with the direction, and Customer Focus Officer, 1969 for the purpose of goals and policies of the Chief Business Solutions and providing a public mass Authority’s Board of Trustees. Technology Officer, Chief transportation system for Utah The General Manager has full Planning Officer, President of communities. The Authority is charge of the acquisition, Government Resources and governed by a 16 member construction, maintenance, and Senior Advisor to the General board of trustees which is the operation of the facilities of the Manager. legislative body of the Authority and of the Authority and determines all administration of the business The Chief Executive Officer, questions of Authority policy. affairs of the Authority. The General Counsel, and the Twelve members of the Board General Manager supervises the Director of Internal Audit for of Trustees, including one executive staff which includes the Authority report to the nonvoting member, are the Chief Capital Development Board of Trustees. appointed by each county, municipality or combination of municipalities which have been annexed to the Authority. The Board also includes one member who is appointed by the State Transportation Commission who acts as a liaison between the Authority and the Transportation Commission, one member of the board is appointed by the Governor, one member is appointed by the Speaker of the Utah State House of Representatives and one member is appointed by the President of the State Senate. All fifteen voting members TRAX Green Line on South Temple near the Salt Lake International have an equal vote as the Board Airport. of Trustees passes ordinances and sets policies for the Authority. 8 An organizational chart which executive staff meets at least and that part of Tooele County illustrates the reporting monthly in a policy forum to comprising the unincorporated relationships follows in the review and set management areas of Erda, Lakepoint, introductory section. policies and set goals and Stansbury Park and Lincoln, objectives for the organization. and the cities of Brigham City, The Regional General Perry and Willard in Box Elder Managers and the General The Authority serves the largest County. According to the U.S. Managers of Special Services, segment of population in the Census Bureau population Commuter Rail and Light Rail State of Utah known as the estimates of July 1, 2011, the report to the Chief Operating Wasatch Front. Its service area population of the Authority’s Officer. The corporate includes Salt Lake, Davis and service area is 2,235,331 and executive staff meets weekly to Weber Counties, Utah County, represents 79.3% of the state’s coordinate management of the and the cities of Tooele and total population. affairs of the organization. The Grantsville in Tooele County City Creek TRAX Station Bus Rapid Transit (BRT) 9 CURRENT YEAR IN REVIEW The mission statement During 2013 the Authority Lake City along North Temple developed by the Authority’s continued to strengthen and to the Airport. This line Board of Trustees continues to connect communities along the provides easy transfers to and guide the activity and direction Wasatch Front. The largest and from FrontRunner and the rest of the Transit Authority. The most important capital of the transit system. In August mission statement is: construction project the 2013, the Draper TRAX Authority has undertaken, its extension was placed into Utah Transit Authority 2015 program, is 100% service extending the Blue Line strengthens and connects completed (see map of 2015 from Sandy south into Draper. communities, thereby enabling projects). The Sugarhouse Streetcar individuals to pursue a fuller project was put into service in life with greater ease and In April, UTA completed and December of 2013, giving convenience by leading through put into service the Green Line transit passengers in the partnering, planning, and wise extension to the Salt Lake Sugarhouse area of Salt Lake investment of physical, International Airport. The City and South Salt Lake City economic and human Airport line provides TRAX an easy way to access shopping resources. service from downtown Salt and businesses in that area of town. System ridership increased to over 44.1 million riders in 2013, a 3.1%