APPENDIX A THE RELATED ENTITIES This Appendix A is dated April 30, 2014 and contains information only through that date (or the specific earlier dates noted herein, such as year-end December 31, 2013 financial and statistical information). MTA intends to update and supplement specific information contained herein (1) through revised Continuing Disclosure Filings, (2) as part of its quarterly financial statement reports, and (3) in connection with its periodic issuance of bonds, notes and other obligations. MTA expects to file such updated and supplemental information with the Municipal Securities Rulemaking Board and its Electronic Municipal Market Access system (“EMMA”) and may incorporate such information herein by specific cross-reference. Such information is also posted on the MTA website under “About the MTA – Financial Information” at www.mta.info for convenience. All of the information is accurate as of its respective date. MTA retains the right to update and supplement specific information contained herein as events warrant. Certain statements included in this Appendix A constitute “forward-looking statements.” Such statements generally are identifiable by the terminology used, such as “plan,” “expect,” “estimate,” “budget,” “project,” “forecast” or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information under the captions “FINANCIAL INFORMATION – FINANCIAL PLANS AND CAPITAL PROGRAMS” and “PUBLIC DEBT SECURITIES AND OTHER FINANCIAL INSTRUMENTS.” The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as set forth in the preceding paragraph, MTA does not plan to issue any updates or revisions to those forward- looking statements if or when its expectations or events, conditions or circumstances on which such statements are based occur. [THIS PAGE INTENTIONALLY LEFT BLANK] APPENDIX A Table of Contents Page PART 1. BUSINESS ..................................................................................................................................................... 1 THE RELATED ENTITIES .......................................................................................................................................... 2 Legal Status and Public Purpose ..................................................................................................................... 2 Use of Popular Names ..................................................................................................................................... 3 Governance ..................................................................................................................................................... 3 Facilities and Operations ................................................................................................................................. 3 Financial Operations ....................................................................................................................................... 5 Management .................................................................................................................................................... 7 PART 2. FINANCIAL INFORMATION ...................................................................................................................... 9 REVENUES OF THE RELATED ENTITIES ............................................................................................................ 10 Fares and Tolls .............................................................................................................................................. 10 State and Local General Operating Subsidies ............................................................................................... 14 State Special Tax Supported Operating Subsidies......................................................................................... 16 Metropolitan Transportation Authority Financial Assistance Fund Receipts ................................................ 18 Urban Taxes for Transit System .................................................................................................................... 20 MTA Bridges and Tunnels Surplus ............................................................................................................... 21 Financial Assistance and Service Reimbursements from Local Municipalities ............................................ 24 Miscellaneous Revenues ............................................................................................................................... 26 Mortgage Recording Taxes ........................................................................................................................... 27 Operating Funding for the Transit and Commuter Systems .......................................................................... 32 FINANCIAL PLANS AND CAPITAL PROGRAMS ................................................................................................ 34 2014-2017 Financial Plan (The February Plan)............................................................................................. 34 Subsequent Developments ............................................................................................................................ 34 Risks to the February Plan ............................................................................................................................. 37 Capital Programs – Background and Development ....................................................................................... 38 2010-2014 Capital Program .......................................................................................................................... 38 2005-2009 Capital Program .......................................................................................................................... 46 1992-2004 Transit Capital Programs Objectives ........................................................................................... 51 1992-2004 Commuter Capital Programs Objectives ..................................................................................... 51 1992-2004 MTA Bridges and Tunnels Capital Programs Objectives ........................................................... 52 Oversight and Review of Administration of Capital Programs ..................................................................... 52 Non-Capital Program Projects ....................................................................................................................... 52 FUTURE CAPITAL NEEDS ...................................................................................................................................... 53 INVESTMENT POLICY ............................................................................................................................................ 53 PART 3. PUBLIC DEBT SECURITIES AND OTHER FINANCIAL INSTRUMENTS .......................................... 55 GENERAL .................................................................................................................................................................. 56 Financing of Capital Projects and Statutory Ceiling ..................................................................................... 56 MTA Capital Program Bonds ........................................................................................................................ 57 Non-Capital Program Securities .................................................................................................................... 58 Interagency Loans ......................................................................................................................................... 59 Leasing .......................................................................................................................................................... 59 Types of Debt Outstanding ............................................................................................................................ 60 Swap Agreements Relating to Synthetic Fixed Rate Debt ............................................................................ 60 2 Broadway Certificates of Participation Swaps ........................................................................................... 66 Counterparty Ratings ..................................................................................................................................... 66 i Page Swap Notional Summary............................................................................................................................... 67 Risks Associated with the Swap Agreements ................................................................................................ 67 TRANSPORTATION REVENUE BONDS ............................................................................................................... 73 General .......................................................................................................................................................... 73 Pledged Transportation Revenues ................................................................................................................