2000 Measure A Citizens Watchdog Committee COMPREHENSIVE ANNUAL REPORT TO THE PUBLIC Fiscal Year 2018 (July 1, 2017 – June 30, 2018) Table of Contents 2000 Measure A Transit Improvement Program 2000 Measure A Transit In November 2000, Santa Clara County voters approved Measure A, a Improvement Program 30-year half cent sales tax dedicated to enhancing the public transit Description.................................i system in the county. The ballot listed specific projects with VTA as the implementing agency. The VTA Board of Directors is responsible for CWC Finding..............................i implementation of the Measure A Program and for all policy-related decisions including the composition, implementation schedule and 2000 Measure A funding level of projects. The ballot designated the Citizens Watchdog Expenditures.............................ii Committee (CWC) as the independent oversight body for Measure A tax dollar expenditures. Collection of the 2000 Measure A sales tax CWC Activities ..........................ii began on April 1, 2006 and will continue through March 31, 2036. Compliance Audit..................... iii VTA delivers transportation solutions that are critical to the health, vitality, prosperity and quality of life for those who live, work, study or Project description and end of play in Santa Clara County. This commitment can be seen in VTA’s Fiscal Year 2018 status of successful implementation of Measure A. Although most of the ballot- individual 2000 Measure A defined projects are massive and very complex, requiring years to plan, projects....................................11 design and construct, VTA has delivered significant results during the first 12 years of the 30-year program. For more information, please visit www.vta.org The accomplishments are summarized in the project section of the report. The CWC also prepared a brief summary report highlighting a few key milestones achieved during Fiscal Year (FY) 2018 (July 1, 2017 through June 30, 2018) and how Measure A projects are enhancing the quality of life for residents, commuters, businesses and workers in Santa Clara County. This report, Benefits and Key Achievements, is available at: bit.ly/cwc-achievements-fy18 CITIZENS WATCHDOG COMMITTEE FINDING The CWC concludes that the 2000 Measure A tax dollars were spent in accordance with the intent of the Measure for FY 2018. 1907-1926 COMPREHENSIVE ANNUAL REPORT TO THE PUBLIC FY 2018 FY 2018 Total Program Expenditures* (in millions) Funding Swaps $6.7 Airport People Mover Light Rail Projects $0.0 $12.8 Bus Projects $14.1 BART SiliconValley Commuter Rail Projects $198.9 (Caltrain, ACE etc.) $16.4 Non-Project (debt service, bond repayment, operating assistance, etc.), $96.4 Program Total: $345.5 *Expenditures were grouped by category. Individual project details are available in the CWC Comprehensive Annual Report. CITIZENS WATCHDOG COMMITTEE ACTIVITIES The CWC appreciates the importance of the role entrusted to us by voters in Santa Clara County to provide oversight for the tax collected under 2000 Measure A and for keeping county residents informed. To that end, the CWC engaged in the following activities: Program Monitoring Compliance Audit Review & Publication The CWC periodically reviewed updates to the 2000 The CWC reviewed the compliance audit for FY 2018 Measure A Transit Improvement Program including and published the results of the independent audit of the project status and costs. FY18 2000 Measure A financial schedules and records. Independent Compliance Audit Conducted Public Hearing The CWC commissioned Macias Gini & O’Connell On May 8, 2019, the CWC conducted a public hearing LLP, an independent certified public accountant firm, to to receive input from the public on the Measure A conduct an audit. The CWC reviewed the compliance Program, its expenditures, the results of the CWC’s audit plan and schedule prior to audit of the Measure A annual independent compliance audit, and on Measure Program financial records. A Program reports for FY 2018. CITIZENS WATCHDOG COMMITTEE MEMBERS Martin Schulter Herman Wadler Respectfully submitted, Aneliza Del Pinal Noel Tebo Aaron Morrow Ray Hashimoto Aboubacar Ndiaye William Hadaya ______________________________ Connie Rogers Matthew Quevedo Martin Schulter, Chairperson Citizens Watchdog Committee SANTA CLARA VALLEY TRANSPORTATION AUTHORITY 2000 Measure A Transit Improvement Program [A Fund of the Santa Clara Valley Transportation Authority] Independent Accountant’s Report on Compliance Examination and Budgetary Comparison Schedule For the Fiscal Year Ended June 30, 2018 SANTA CLARA VALLEY TRANSPORTATION AUTHORITY 2000 Measure A Transit Improvement Program [A Fund of the Santa Clara Valley Transportation Authority] For the Fiscal Year Ended June 30, 2018 Table of Contents Page(s) Independent Accountant’s Report ................................................................................................................. 1 Budgetary Comparison Schedule (On a Budgetary Basis) ........................................................................... 2 Notes to Budgetary Comparison Schedule ............................................................................................ 3 - 10 Supplementary Information – Program Summaries ............................................................................. 11 - 30 Supplementary Information – 2000 Measure A Ballot ........................................................................ 31 - 33 Independent Accountant’s Report on Compliance Examination 2000 Measure A Citizens Watchdog Committee 3331 North First Street San Jose, California 95134 We have examined the Santa Clara Valley Transportation Authority’s (VTA) compliance with the requirements of the 2000 Measure A Transit Improvement Program (2000 Measure A Program), a fund of VTA, for the year ended June 30, 2018. The financial activity of the 2000 Measure A Program is included in the accompanying Budgetary Comparison Schedule and related notes. Management is responsible for VTA’s compliance with those requirements. Our responsibility is to express an opinion on VTA’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about VTA’s compliance with the requirements of the 2000 Measure A Program, in all material respects. An examination involves performing procedures to obtain evidence about VTA’s compliance with the requirements of the 2000 Measure A Program. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of VTA’s compliance with the requirements of the 2000 Measure A Program, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination of VTA’s compliance with specified requirements. In our opinion, VTA complied with the aforementioned requirements of the 2000 Measure A Program for the fiscal year ended June 30, 2018, in all material respects. Our examination was conducted for the purpose of assessing compliance with the 2000 Measure A Program, as reported in the Budgetary Comparison Schedule. The supplementary information is presented for the purposes of additional analysis and is not a required part of the Budgetary Comparison Schedule. The supplementary information has not been subjected to the compliance procedures of the 2000 Measure A Program and, accordingly, we express no opinion on them. This report is intended solely for the information and use of the 2000 Measure A Citizens Watchdog Committee and is not intended to be and should not be used by anyone other than this specified party. Walnut Creek, CA April 3, 2019 Macias Gini & O’Connell LLP 2121 N. California Boulevard, Suite 750 Walnut Creek, CA 94596 www.mgocpa.com 1 SANTA CLARA VALLEY TRANSPORTATION AUTHORITY 2000 Measure A Transit Improvement Program [A Fund of the Santa Clara Valley Transportation Authority] Budgetary Comparison Schedule (on a Budgetary Basis) For the Fiscal Year Ended June 30, 2018 (in thousands) Original Operating Final Operating Variance with Budget Budget Actual Final Budget Revenues: Sales tax receipts$ 215,343 $ 215,343 $ 207,870 $ (7,473) Investment earnings 5,256 5,256 7,379 2,123 Federal subsidy for Build America Bonds 8,750 8,750 8,784 34 Other income 391 391 414 23 Total revenues 229,740 * 229,740 224,447 (5,293) Non-project expenditures: Professional, special and other services 790 790 560 230 Operating assistance to VTA Transit (Note B4) 44,684 44,684 43,133 1,551 Miscellaneous 27 27 25 2 Contributions to other agencies 673 673 195 478 Repayment of debt service to VTA Transit (Note D) 15,596 15,596 14,936 660 Principal payment, bond interest and other bond charges (Note E) 38,638 38,638 37,598 1,040 Total non-project expenditures 100,408 * 100,408 96,447 3,961 Total revenues less non-project expenditures$ 129,332 *$ 129,332 128,000 $ (1,332) Project expenditures (Note B3): Silicon Valley Rapid Transit Corridor (VTA's BART Silicon Valley Program) 198,951 Light Rail Program 12,803 Commuter Rail Program 16,387 Bus Program 14,146 Mineta-San Jose Airport People Mover 11 Swap payments to Congestion Management & Highway Program (Note C) 6,743 Total project expenditures 249,041 Capital contributions