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HomeMy WebLinkAbout2022 Annual Comprehensive FInancial Report.pdfU TA H T R A N S I T AU T H O R I T Y SM a Component Unit of the State of Utah Annual Comprehensive Financial Report For Fiscal Year Ended December 31, 2022 1 Our Mission We Move You Our Vision Leading Utah’s mobility solutions and improving quality of life 2 Annual Comprehensive Financial Report For Fiscal Year Ended December 31, 2022 Finance Department William Greene / Viola Miller Chief Financial Officers Troy Bingham Comptroller UTAH TRANSIT AUTHORITY A Component Unit of the State of Utah 3 UTAH TRANSIT AUTHORITY ANNUAL COMPREHENSIVE FINANCIAL REPORT Years Ended December 31, 2022 INTRODUCTORY SECTION (Unaudited) Letter of Transmittal ........................................................................................................................................................................... 8 Certificate of Achievement for Excellence in Financial Reporting .......................................................................................... 12 Organizational Chart .......................................................................................................................................................................... 13 Board of Trustees and Administration ......................................................................................................................................... 14 System Maps ....................................................................................................................................................................................... 17 FINANCIAL SECTION Independent Auditor’s Report ........................................................................................................................................................ 22 Management Discussion and Analysis (Unaudited) ................................................................................................................ 25 Basic Financial Statements Statement of Net Position ............................................................................................................................................. 34 Statement of Revenues, Expenses and Changes in Net Position ........................................................................ 36 Statement of Cash Flows ............................................................................................................................................... 37 Statement of Fiduciary Net Position ........................................................................................................................... 39 Statement of Changes in Fiduciary Net Position .................................................................................................... 40 Notes to the Financial Statements .............................................................................................................................. 41 REQUIRED SUPPLEMENTARY INFORMATION SECTION (Unaudited) Schedule of Changes in Net Pension Liability and Related Ratios .........................................................................................88 Schedule of Required Employer Contributions ...........................................................................................................................91 Schedule of Investment Returns .................................................................................................................................................... 92 SUPPLEMENTARY SCHEDULES Schedule of Revenues, Expenses and Changes in Net Position Budget to Actual ........................................................... 94 Combining Statement of Fiduciary Net Position ........................................................................................................................ 95 Combining Statement of Changes in Fiduciary Net Position .................................................................................................. 96 STATISTICAL SECTION (Unaudited) Financial Trends These schedules contain trend information to help the reader understand how the Authority’s financial performance and well-being have changed over time. Net Position ....................................................................................................................................................................... 99 Change in Net Position ................................................................................................................................................... 99 Revenue History by Source ........................................................................................................................................ 100 Expense History by Function ..................................................................................................................................... 100 4 UTAH TRANSIT AUTHORITY ANNUAL COMPREHENSIVE FINANCIAL REPORT Years Ended December 31, 2022     STATISTICAL SECTION (continued) Revenue Capacity These schedules contain information to help the reader assess the Authority’s most significant local revenue sources. Local Contributions from Other Governments ....................................................................................................... 101 Local Transit Sales Taxes by County ......................................................................................................................... 101 Principle Contributors of Sales Tax ........................................................................................................................... 102 Fares .................................................................................................................................................................................. 102 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. Debt Service Coverage ................................................................................................................................................. 103 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 .................................................................................................................... 103 Operating Information These schedules contain service and facilities statistics to help the reader understand how the Authority’s financial report relates to its services and operating activities. Full-Time Equivalent Employees ................................................................................................................................ 105 Trend Statistics .............................................................................................................................................................. 106 Operating Indicators and Capital Assets ................................................................................................................. 107 Performance Measures – Bus Service ....................................................................................................................... 110 Performance Measures – Commuter Bus Service ................................................................................................... 111 Performance Measures – Light Rail ........................................................................................................................... 112 Performance Measures – Commuter Rail ................................................................................................................ 113 Performance Measures – Demand Response ......................................................................................................... 114 Performance Measures – Vanpool ............................................................................................................................. 115 COMPLIANCE SECTION Independent Auditor’s Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on the Audit of Financial Statement Performed in Accordance with Government Auditing Standards ........ 117 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance ........................................................................................................................................................................................ 119 Schedule of Expenditures of Federal Awards ........................................................................................................................... 122 Notes to Schedule of Expenditures of Federal Awards .......................................................................................................... 124 5 UTAH TRANSIT AUTHORITY ANNUAL COMPREHENSIVE FINANCIAL REPORT Years Ended December 31, 2022     COMPLIANCE SECTION (continued) Schedule of Findings and Questioned Costs............................................................................................................................. 125 OTHER SUPPLEMENTARY INFORMATION SECTION Independent Auditor’s Report Compliance with the State Compliance Audit Guide and Report on Internal Control Over Compliance ............................................................................................................................................................................. 128 6 SM Introductory 7 June 9, 2023 To the Board of Trustees Utah Transit Authority and Citizens within the UTA Service Area We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR) of the Utah Transit Authority (the Authority) for the fiscal year ended December 31, 2022. This document has been prepared by the Authority’s Finance Department using the guidelines recommended by the Government Finance Officers Association of the United States and Canada and conforms to accounting principles generally accepted in the United States of America and promulgated by the Governmental Accounting Standards Board. Management’s Assertions Management assumes full responsibility for the completeness and reliability of the information contained in this report. Management bases their assurance upon a comprehensive framework of internal control that has been established for this purpose. To provide a reasonable basis for making these representations, management of the Authority has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient statements in conformity with GAAP. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefit likely to be derived; and (2) the valuation of the costs and benefits requires estimates and judgments by management. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Annual Comprehensive Financial Report This report contains financial statements and statistical data which provide full disclosure of all the material financial operations of the Authority. The financial statements have been prepared on the accrual basis of accounting in conformance with generally accepted accounting principles. This ACFR 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. The Authority is also required to conduct an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Information related to the single audit, including the schedule of expenditures of federal awards, findings and recommendations, and auditor’s reports on internal control structure and compliance with applicable laws and regulations are included with this report. 669 West 200 South Salt Lake City, Utah 84101 1-888-RIDE-UTA www.rideuta.com 8 The accounting firm of Crowe LLP was selected to perform an annual independent audit of the Authority’s financial statements. The goal of the independent audit is to provide reasonable assurance that the Authority’s financial statements for the fiscal year ended December 31, 2022, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management and evaluating the overall financial presentation. The independent auditor concluded that there was a reasonable basis for rendering an unmodified opinion that the Authority’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America. The audit also was designed to meet the requirements of the Federal Single Audit Act of 1984 and related Uniform Guidance. The auditor’s report on the basic financial statements and schedules, including reports specifically related to the single audit, are included in this document. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Background The Utah Transit Authority was incorporated on March 3, 1970 under authority of the Utah Public Transit District Act of 1969 for the purpose of providing a public mass transportation system for Utah communities. The Authority is governed by a three-member full-time board of trustees. The Governor appoints nominees from the three appointing districts within the UTA service territory to serve as trustees. The names of the nominees are then forwarded to the Senate for confirmation. Once confirmed, an appointee is sworn in as a trustee. Utah Transit Authority also has a nine-member local advisory council. The local advisory council representation includes: three members appointed by the Salt Lake County council of governments; one member appointed by the Mayor of Salt Lake City; two members appointed by the Utah County council of governments; one member appointed by the Davis County council of governments; one member appointed by the Weber County council of governments; and one member appointed by the councils of governments of Tooele and Box Elder counties. Terms for local advisory council members are indefinite. The responsibility for the operation of the Authority is held by the board of trustees that hires, sets the salaries, and develops performance targets and evaluations for the Executive Director, Internal Auditor, and any chief level officer. The Executive Director is charged with certain responsibilities, some of which require coordination with, or providing advice to, the board of trustees. Legal counsel will be provided by the Utah Attorney General’s Office. An organizational chart which illustrates the reporting relationships follows this letter of transmittal. The executive staff meets weekly to coordinate management of the affairs of the organization. The executive staff and various other department officials meet as needed in a policy forum to review management policies and strategic direction and objectives for the organization. The Authority serves the largest segment of population in the State of Utah known as the Wasatch Front. Its service area includes Salt Lake, Davis, Utah, and Weber Counties, the cities of Tooele and Grantsville in Tooele County and that part of Tooele County comprising the unincorporated areas of Erda, Lakepoint, Stansbury Park and Lincoln, and the cities of Brigham City, Perry and Willard in Box Elder County. The population of the Authority’s service area is approximately 2,695,629 and represents 80 percent of the state’s total population. 9 Economy Utah ends 2022 facing significant economic uncertainty as Utah continues to grapple with ever-changing pockets of economic strength and weakness. The post-pandemic economy has altered many traditional economic relationships. These economic transformations make accurate predictions challenging because it is unclear if or when old patterns will return, or if new arrangements will chart a different economic course. Current economic challenges amid an overheated economy include stubbornly high inflation, rapidly rising interest rates, low consumer sentiment, and unmistakable construction and real estate slowdowns. At the same time, many often underappreciated economic buffers exist. Extremely low unemployment coupled with improving supply chains and very strong overall household, firm, and state and local government financial reserves combine to provide a hedge against economic challenges that could spiral into a recession. The Authority’s decision-makers will prepare to respond to any of the three scenarios by following the indicators, making midcourse corrections, and applying vigilance and caution while still pursuing opportunities. Scenario 1: Continuing Growth Inflation recedes, interest rate hikes stabilize, historically high financial reserves and low debt levels prop up consumer spending, employers work to retain employees in light of recent hiring challenges, and international geopolitical and supply chain challenges stabilize, combining to create 2023 real GDP growth in the 2% to 4% range (similar to 2022 Q3 and Q4). Scenario 2: Shallow Recession High inflation comes down slowly, continued rapid interest rate hikes drive down consumer and firm demand for large capital acquisitions, sizable construction slowdowns and layoffs extend broadly into other sectors, continued international challenges remain disruptive similar to 2022, resulting in a relatively short and mild -1% to 1% change in 2023 real GDP. Scenario 3: Decelerating Growth Inflation moderates somewhat, interest rate hikes continue but slow down, household financial buffers only partially offset broader economic challenges, including layoffs in interest-rate- sensitive sectors such as construction, resulting in 2023 real GDP growth in the 0% to 2% range. The most pressing internal risks will be growth-driven challenges like a limited labor supply, increasing costs, and housing affordability. Declining birthrate, air quality, and water challenges will also add pressure. COVID-19 and inflation pose additional downside risks. Utah's fundamental advantages—a youthful demographic profile, economic diversity, a stable fiscal and regulatory environment, crossroads of the west location, global connections, and social cohesion—will continue to influence the state's economic position in 2023 and beyond. As long as major risks to the national expansion are not realized, Utah’s economy will once again be among the best in the nation. 10 Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to The Authority for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31, 2021. This was the twenty-nineth consecutive year that the Authority has received this prestigious award. This certificate of award is the highest form of recognition for excellence in state and local government financial reporting. In order to receive this award, the Authority must publish an easily readable and well organized comprehensive financial report whose content conforms to the program standards. Such a report must satisfy both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement for Excellence in Financial Reporting is valid for a one-year period only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements and are submitting it to determine eligibility for continued recognition. Acknowledgements The preparation of this report would not have been possible without the efficient and dedicated service of the entire finance team at the Authority. We wish to express our sincere appreciation for the hard work and long hours that contributed to the preparation of this report. Appreciation is also extended to the Executive Board and the various team members for their cooperation and dedicated service that made it possible to produce a report of the highest standards. William Greene Chief Financial Officer Utah Transit Authority 11 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Utah Transit Authority For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 Executive Director/CEO 12 UTA Board of Trustees Carlton Christensen, Beth Holbrook , Jeff Acerson Executive Director Jay Fox Chief Financial Officer William Greene / Viola Miller Chief Operating Officer Cherryl Beveridge Chief Planning & Engagement Officer Nichol Bourdeaux Chief People Officer Kim Shanklin Internal Auditor Mike Hurst Mgr of Civil Rights Compliance Kenya Fail Director Total Rewards Ann Green-Barton Director Talent Acq Greg Gerber Director Budget & Financial Strategy Brad Armstrong Comptroller Troy Bingham Supply Chain Director Todd Mills Fares Director Monica Morton Claims & Insurance Mgr Dave Pitcher Mgr Customer Service Cindy Medford Acting Director of Innovative Mobility Solutions Hal Johnson Special Services GM Ryan Taylor Acting Commuter Rail General Manager Zach Thomas Regional GM Mt. Ogden BU Camille Glen Regional GM Timpanogos BU Mary DeLaMare-Schaefer Chief of Police – Public Safety Mgr Dalan Taylor Regional GM Salt Lake BU Andres Coleman Planning Director Russell Fox Government Relations Director Shule Bishop Utah Attorney General Mike Bell Tim Merrill David Wilkins Community Engagement Director Megan Waters Acting Light Rail GM Jaron Robertson Director of Board Governance Annette Royle Director Safety & Security Sheldon Shaw Director of Talent Development Linda Watts Chief Enterprise Strategy Officer Alisha Garrett IT Director Kyle Brimley Sr Mgr Ops Analysis &Solutions Tigran Melikyan Chief Service Development Officer Mary DeLoretto Director of Real Estate & TOD Paul Drake Director of Capital Development Dave Hancock Director of Capital Construction Jared Scarbrough Director Capital Assets&Proj Ctrls Daniel Hofer Director of Fleet Engineering Brian Sawyer Director of Maint Support Kevin Anderson Grants Director Tracy Young Chief Communications Officer Steven Wright Director Workforce Tech Training Stacey Palacios Records Manager Auty Dalquist Special Projects Manager Edison Pascascio Digital Marketing Manager Nickolas Mike Varanakis Strategic Comms and Content Manager Katie Morrison 13 UTAH TRANSIT AUTHORITY INTRODUCTORY SECTION Year Ended December 31, 2022 UTA Board of Trustees Beth Holbrook Jeff Acerson Carlton Christensen Board Chair Davis, Weber and Box Elder Counties Salt Lake County Tooele and Utah Counties 14 UTAH TRANSIT AUTHORITY INTRODUCTORY SECTION Year Ended December 31, 2022 Administration Board of Trustees BOARD CHAIR ................................................................................................................ Carlton Christensen BOARD TRUSTEE ...................................................................................................................... Beth Holbrook BOARD TRUSTEE .......................................................................................................................... Jeff Acerson Officers of the Authority BOARD CHAIR ................................................................................................................ Carlton Christensen EXECUTIVE DIRECTOR ......................................................................................................................... Jay Fox TREASURER ..................................................................................................... William Greene/Viola Miller COMPTROLLER .......................................................................................................................... Troy Bingham SECRETARY ................................................................................................................................ Annette Royle Administration of the Authority EXECUTIVE DIRECTOR ......................................................................................................................... Jay Fox CHIEF OF INTERNAL AUDIT ....................................................................................................... Mike Hurst CHIEF PLANNING AND ENGAGEMENT OFFICER ................................................... Nichol Bourdeaux CHIEF FINANCIAL OFFICER ...................................................................... William Greene/Viola Miller CHIEF OPERATING OFFICER .......................................................................................... Cherryl Beveridge CHIEF PEOPLE OFFICER ............................................................................................................. Kim Shanklin CHIEF SERVICE DEVELOPMENT OFFICER .................................................................... Mary DeLoretto CHIEF ENTERPRISE STRATEGY OFFICER ........................................................................... Alisha Garrett CHIEF COMMUNICATION OFFICER .................................................................................... Steve Wright 15 UTAH TRANSIT AUTHORITY INTRODUCTORY SECTION Year Ended December 31, 2022 Local Advisory Council Members Name Appointing Authority CHAIR Mark Johnson Utah County COG VICE CHAIRS Troy Walker Salt Lake County COG Bob Stevenson Davis Area COG MEMBERS Erin Mendenhall Salt Lake City Neal Berube Weber Area COG Karen Cronin Box Elder COG/Tooele COG Dan Peay Salt Lake County COG Trent Staggs Salt Lake County COG Julie Fullmer Utah County COG 16 Downtown Ogden SEE INSET F r o n t R u n n e r F r o n t R u n n e r F r o n t R u n n e r OGX MOR G A N D AVIS WEBER NORTHT SALTT LAKEKE WE S T HAV EN NTERRVILLECEN W I LLLARDD S UNSET HUNTSVILLEHU EDEN HARRISVILLE CLINTON WESTS BOUNTIFULT CLEARFIELDC FARR WES T SOUTH OGDENROY SOUTHOUTH W EBER HILL A FB FRRUIT HEIGGHTS BOUNTIFUL PLEAS ANT V IEW WASHINGTO N TERRAC E MARRIOTT– SLATERVILLE K AYS VILLE SYRACUSERAR FARMINNGTON UINTAH WOODS CROSS N ORTH OGDEN M OUNTAIN GREENGR LAYTON RIVERDALEIVVE PLAIN C ITY 612 612 630 630 630 613 613 645 625645 645 612 612 F618 F618 F618 604 604 640 640 640 640 640 640 628 604 604 470 470 470 612 470 470 640 470 470 470 470 470 455 470 667 667 455 667 470 470 470 625 645625 455 455 645 473 603 625 625 473 603 473 455 455 455 455 455 455 455 455 628 628 470 628 626 626 627 627 627 627 627 473 473 455 473 625 455 473 473 472 473 472 675 674 674 674 675 675 675 675 677 677 677 677 677 677 677 F620 F620 606675 606 472 472 RU L O N W H I T E B L V D MAIN ST MAIN ST 40 0 E MA IN S T 200 E M AI N ST M A I N S T M AIN S T 1800 S 2600 S 3 100 S BOU N TIFUL B LVD 500 S 11 0 0 W L EG AC Y PK WY PARRISH LN CHASE LN PAGES LN CH I L D S L N 20 0 W 50 0 W 80 0 W 500 S 400 N CENTER ST O A K HIL LS DR ANTELO PE DR GORDO N A V E SR-193 FA I R F I E L D R D BL U F F R D GENTILE ST 32 00 W 10 0 0 W 200 0 W SR-193 300 N 800 N 300 0 W 1800 N 1800 N 35 00 W 2200 W 59 0 0 W 5500 S 43 00 W 4 000 S 47 0 0 W 35 0 0 W 2550 S 1200 S 47 00 W 2600 N 1975 N S R - 1 2 6 2700 N 2700 N ELBERTA DR PLEASA NT VIEW DR U S - 8 9 1800 N 20 0 0 W WAS H I NG T ON BL VD 1100 N MO UNTAI N R D NORTH OGDEN CA NY ON RD 4100 N 35 0 0 E OL D HIG HW AY 162 1900 N 7100 E SR-39 7800 E 50 0 N T R A PP E RS L OO P RD T R AP PE RS L OO P RD OLD HIGHWAY RD M O R G A N V A L LEY DR SOUTH WEBER DR SO U T H W E B E R D R 10 0 0 W MA I N S T 19 0 0 W 21 7 5 W GENTILE ST S U N S E T D R F L I N T S T 19 00 W M IDLA ND DR 31ST ST US -8 9 U S - 8 9 OGDEN CANYON RD 450 0 W 300 N 1700 S 21ST ST M I DLA N D D R 24TH ST 12TH ST F R U I T L A N D D R SR-158 SR-158 S R-158 SR-226 400 N 4800 S 4400 S 4000 S 5600 S 5700 S ANTELOPE DR 1000 N 1 0 0 0 W 2700 S 2ND ST WA SH I NG TO N BL V D R IV E RDAL E R D 200 N 2 20 0 W HILL F I E L D R D 10 5 0 E HI L L F I E L D R D M A I N S T STATE ST GLOVERS LN 15 2 5 W PARK LN MA I N S T MOUN TAIN R D 36TH ST EDVALSON PO L K TA Y L O R 30TH ST 25TH ST 20TH ST 12TH ST 9 TH ST 2ND ST MA I N S T RE D W O O D R D LE G E N D H I L L S D R UN I V P A R K BL V D F A I R F I E L D R D WA L L A V E WA L L A V E 13 T H S T CH URCH ST OR C H A R D D R ORCH A R D D R H A R R I S O N B LVD 40TH HA R R I S O N MO N R O E B L V D MO N R O E BL V D MO N R O E BL V D HA R R I S O N B L V D S T A T E S T MA IN ST US- 8 9 PE N N S Y L - VA N I A A V E HINCKLE Y D R 20 0 0 W 3100 N 2600 N 12 0 0 W ECCLES ST ST E WAR T D R DE P OT D R 200 N 53 0 W WILSON LN 2550 S US - 8 9 US-89 530 0 S AD A M S A V E 5000 S 4700 S 30 0 W 30 0 E SR-39 CRESTWO O D 50 0 E 84 84 15 15 15 15 84 89 89 Weber State Central Wildcat Village 602 602 Woods Cross Layton Hospital Davis Hospital Ogden Regional Medical Center Lakeview Hospital Davis Technical College Ogden–Hinckley Airport Layton Hospital Davis Hospital Ogden Regional Medical Center Lakeview Hospital Davis Technical College Ogden–Hinckley Airport Pineview Reservoir Northwest Reservoir Wilkinson Reservoir Holmes ReservoirAdams Reservoir Hobbs Reservoir WILLARD BAY RESERVOIR GREAT SALT LAKE THURSTON PEAK MOUNT OGDEN EYRIE PEAK BEN LOMOND WILLARD PEAK POWDER MOUNTAIN JAMES PEAK FRANCIS PEAK ADAMS CANYON FARMINGTON CANYON BOUNTIFUL PEAK PARRISH CANYON WEBER CANYON MUELLER PARK NORTH OGDEN CANYON OGDEN CANYON LagoonStation Park George S. Eccles Dinosaur Park Newgate Mall Ski service Weber Canyon Ski service typically operates from mid-December to late March. Find more information at rideuta.com/ski. Ski service Ogden Canyon Ski service typically operates from mid-December to late March. Find more information at rideuta.com/ski. Lagoon service Farmington Route 667 serves Lagoon year-round Mon–Sat. On Sundays when Lagoon is open, route 470 serves the Lagoon campground stop. UTA On Demand South Davis zone On-demand service operates in this area: Mon–Fri 6 am – 9 pm For more information, go to rideuta.com/ondemand. UTA On Demand South Davis zone On-demand service operates in this area: Mon–Fri 6 am – 9 pm For more information, go to rideuta.com/ondemand. 455 473 Oak Hills 470 626 627 628 640 Clearfield 455 667473 Farmington 455 473 Fruit Heights 677627628640472 Layton Hills Mall 604 F620 Roy 455 473 677 South Weber 627 640 WSU–Davis 470 627 Davis Tech470628677 Layton 455 470 473 603 604 613 F618 F620F618 601 630 674 675 Ogden 603 645 McKay–Dee Hospital 674 675 Rainbow Gardens 472 Riverdale 674 Powder Mountain 677675 Snowbasin 472 Kaysville 602 645 Dee Events Center 455 640603 645 625 Weber State University via Edvalson St 625 Ogden–Weber Technical College 645612 455 473 677 Antelope Dr to Brigham City to Salt Lake and Utah counties FrontRunner to Salt Lake Central & Provo Central N Bus OGX (under construction) Bus rapid transit (BRT) service opening August 2023 Frequent bus Runs every 15 minutes Regular bus Runs every 30 or more minutes Limited bus Routes with limited service Ski bus Service to ski resorts No service outside ski season—check rideuta.com/ski for exact dates Legend Rail FrontRunner Intercity train service running every 30–60 minutes Monday–Saturday only 612 640 650 675 UTA On Demand Microtransit service Transit, UTA’s preferred trip planning app Find schedule info, see bus and train locations, buy tickets and passes, and get notified about detours and service disruptions in real time. Plan your trip EFFECTIVE 16 APRIL 2023 More information at rideuta.com Park-and-ride Weber & Davis SYSTEM MAP BRIG HAM C ITY PERRYRR F638 630 630 630 630 630 F638 F638 F638 F638 FOREST ST 700 N 1100 S MA I N S T SR - 3 8 SR-13 200 S U S -8 9/91 US- 89 M EDICAL DR 50 0 W Brigham City Community Hospital Brigham City Community Hospital Pioneer Park 15 84 Brigham City 604 606 674613 612 F618 F618 613 470 470 455 455 612 473 F618 603 601 455 606 F620 675 F618 470 630 630 606 612 674 613 675 675 24TH ST 25TH ST 22ND ST 23RD ST 21ST ST 20TH ST 17TH ST 12TH ST WA S H I N G T O N B L V D WA L L A V E WA S H I N G T O N B L V D AD A M S A V E WA L L A V E LI N C O L N 26TH ST 28TH ST 30TH ST Weber County Library Weber County Library Fort Buenaventura 455 470 473 603 604 613 F618 F620F618 601 630 674 675 Ogden OGX Downtown Ogden GORDON AVE 17 Downtown SEE INSET The University of Utah SEE INSET FREE FARE ZONEFR F r o n t R u n n e r Green Line R e d L i n e Red L i n e B l u e L i n e B l u e L i n e F r o n t R u n n e r S-Line Green Line SALT LAKE DAVIS TAYLORSVILLETAYLORSVILLE MILLCREEKR SOUTHO SALTA LAKEA N O RTH SALTSASA KELAKE W E ST VALLEY C ITY KEARNS MAG N A SS AA LLTT LLLAKEAKE CICCTY DRA PER H OLLADAY W ESTW BOUNTIFULUU MIDVALEAL M U RRAY B OUNTIFUL COTTO NWOOD HEIG HTS H ERRIMAN RIVERTON SANDY B LUFFDALE W E ST J ORDAN S O UTH J O RDAN AYBREAKDAYDA WOODSO CROSSR I NTERNATIO NAL CENTER 470 470 470 470 455 455 455 455 871 871 451 451 551551 F453 551 217 1 205 451 F453 217 473 472 472 473 472 473 473 509 513 513 513 513 513 513 9 1 205 9 9 509 509 509 248 35 248 3535 35 47 47 47 47 54 47 47 240 240248 248 248 F232 227 F232 227 54 54 54 39 39 35 33 33 33 217 217 217 62 62 62 62 F556 F556 F556 240 240 240 200 200 200 205 4 473 455 209 213 220 205 209 209 209 213 220 220 220 45 45 45 F11 223 21 21 17 17 223 223 223 223 4 4 902 972 972 201 201 72 972 72 213 F590 F590 F590 218 218 201 218 F525 F202 F202 F202 F202 F94F94 F94 F94 994 F94 994 994 3939 200 205 220 213 220 213 2 1 209 4 F453 F570 F570 F570 F570 F578F578F578 F578 F578 F514 F514 472 902 451 F453 551 1730 S 1820 S 56 00 W LAKE PARK BLVD 360 0 W 1700 S N. FRONTAGE ROAD 3500 S 3100 S 4100 S 4700 S 5400 S 4700 S 4000 W 4100 S 4100 S 4700 S 5400 S 5400 S 700 0 SGRIZ Z L Y WAY 6200 S 6200 S 2100 S RED W O OD RD NAV A J O ST 9 00 W 3100 S 3650 S PARKWAY BLVD 32 00 W 270 0 W 32 00 W 270 0 W 40 0 0 W 48 0 0 W 48 0 0 W RE DWO O D R D RE DWO OD R D RE DWO OD R D 6200 S 7000 S 72 00 S 7000 S WINCHESTE R ST 7800 S7800 S 4000 W REDW O O D R D 1140 0 S 4000 W 6000 W RO SE CR E S T R D 27 0 0 W 32 0 0 W 220 0 W 500 W 700 W 3900 S 3300 S 2100 S 3300 S 3900 S 45 00 S 6100 S ST AT E ST 7800 S 9000 S 7800 S 90 0 E 90 0 E 1300 E HI GH L AN D DR H I G H L A N D D R 3900 S 4500 S 3300 S 900 E 500 E STATE S T 1700 N NORTH TEMPLE BEC K ST SUNNYSIDE AVE 210 0 E 19 0 0 E 2700 S 200 0 E WA S ATC H BLV D W A S A T C H B LV D 9400 S 10600 S 35 00 S MAGNA MAIN ST HAROLD GATTY DR AMELIA EARHART DR WR I GH T B R OT HE RS DR JI MM Y DO O L I TT LE RD WILEY POST WAY MAIN ST OR CHA R D DR O RC HAR D DR OLD B I N G HAM H W Y 9000 S 9000 S 12600 S 13400 S13400 S 10400 S 10400 S 130 0 W 11 400 S BA N GE R T E R HW Y CALIFORNIA AVE RED W OO D R D MO UN T A IN V IEW BANGERTER HWY 14600 S 14400 S 270 0 W 36 00 W RE D W O O D R D 12600 S 9800 S CREEK RD E M IG RAT ION CA NYO N RD B OUN T IFUL B L VD 1800 S 2600 S 3100 S 500 S 1500 S 11 0 0 W LEG AC Y PKW Y 200 W 50 0 W 500 S 400 N EAGLEW O OD D R CENTER ST 4100 S 84 00 W 915 0 W 64 00 W 700 S RE D WO OD RD 1300 S VINE ST 5400 S S R- 1 11 56 00 W 56 0 0 W M O U N T A I N V I E W SO UT H JOR DA N P KWY M O U N T A I N VIE W 11800 S 12300 S 12300 S PIONEER RD TRAVERSE R I D G E RD S UN CRE ST DR W 200 ST N WASATCH BLVD D IMPLE DELL RD SEGO LILY DR 9800 S EA S T D E L L D R 13 0 0 E 1 3 0 0 E 70 0 E ST A T E S T WA SAT C H BLV D CREEK R D 8600 S 13 0 0 E BENGAL BLVD DA N I S H R D NE W B I NG H AM H WY 48 00 W 48 00 W B A N G E R T E R H W Y 72 0 0 W ROSECREST RD 64 0 0 W HIGH LAND D R 13800 S 30 0 E 17 00 E 11800 S 11400 S SEG O LILY D R 9800 S 130 0 W 70 0 E 900 W 70 0 W 13 0 0 E 4500 S WA S A T C H B L V D H O L LA D A Y B L V D 23 0 0 E 23 0 0 E 23 0 0 E 17 0 0 E MO U NT A I N VIE W C E NT E R P ARK DR 700 N 500 S CALIFORNIA AVE S. FRONTAGE ROAD PI O N E E R R D V A N W I N K LE EX PW Y 22 0 0 W WINCHESTER ST 400 S CALIFORNIA AVE F O O T H I L L D R PARL E YS W AY BAN G E RT E R H WY PARKWAY B LVD FORT UNION BLV D 7200 S CO P PER CITY D R DI X I E D R DAYB R E AK PK W Y HERRIMAN MAIN ST MURRAY–HOLLADAY RD 300 0 E WAS ATCH BLVD LAK E AV E C S T VI R G I N I A S T M S T L S T E S T 15 0 0 E 13 0 0 E 11 0 0 E 90 0 E 30 0 W 900 S 1300 S 2300 N 400 S 500 S 200 S 800 S 900 S 100 S 1700 S 2100 S 70 0 E 50 0 E LODESTONE BALSA DR CL E R N A T E S D R PI E P E R B L V D 3800 S ATHERTON DR 3500 S WASATCH ST MO N R O E S T 9400 S 30 0 W MO N R O E S T 70 0 W ST A T E S T 13 0 0 W CENTER ST 9000 S 70 0 E RI V E R F RONT P K WY SAN D Y PK W Y VINE ST 5300 S 6200 S 10 0 0 E 620 0 S U N I O N P A R K SOUTH UNIONAVE A V E LITTLE COTTONWOOD RD 5600 S JO R D A N G T W Y L O N E PEA K P K W Y 20 0 W 13490 S VI S T A ST AT ION B L V D 56 0 0 W INDIANA A V E US- 8 9 11TH AVE 9TH AVE 3RD AVE S. TEMPLE 1000 N DUPONT AVE 600 N 90 0 W 12 0 0 W 30 0 W NORTH TEMPLE 3100 S 80 80 215 80 215 215 215 201 201 215 15 15 15 15 80 15 Courthouse 900 South 600 South Ballpark River Trail Decker Lake Fairpark Jackson/ Euclid Trolley 900 East Crescent View Kimballs Lane 5600 West Sandy Expo Airport Daybreak Parkway South Jordan Parkway Woods Cross GREAT SALT LAKE Oquirrh Park Jordan River Parkway Liberty Park Jordan Park City Cemetery Murray Park Ensign Peak Dimple Dell Regional Park Jordan River Parkway Sugar House Park Hunter Park Riverside Park MOUNT OLYMPUS LONE PEAK TRAVERSE MOUNTAINYELLOW FORK CANYON GRANDEUR PEAK AVENUES TWIN PEAKS ROTARY PARK ELEPHANT ROCK The Shops at South Town Alta View Hospital The District Mountain View Village Fashion Place Hogle Zoo Westminster College This Is the Place Park State Capitol Smith’s Ballpark SLCC– South City Rio Tinto Stadium Maverik Center USANA Amphitheatre SLCC– Jordan SLCC– Taylorsville Jordan Landing Kearns Olympic Oval LDS Hospital Shriners Hospital Salt Lake Regional Medical Center Salt Lake City International Airport Lakeview Hospital The Shops at South Town Alta View Hospital The District Mountain View Village Fashion Place Hogle Zoo Westminster College This Is the Place Park State Capitol Smith’s Ballpark SLCC– South City Rio Tinto Stadium Maverik Center USANA Amphitheatre SLCC– Jordan SLCC– Taylorsville Jordan Landing Jordan Valley Medical Center Kearns Olympic Oval LDS Hospital Shriners Hospital Salt Lake Regional Medical Center Salt Lake City International Airport Lakeview Hospital Jordan Valley Medical Center UTA On Demand Westside zone On-demand service operates in this area: Mon–Sat 4 am – 12:15 am Sundays 6 am – 9 pm For more information, go to rideuta.com/ondemand. UTA On Demand South Valley zone On-demand service operates in this area: Mon–Fri 4 am – 12:15 am Saturday 6 am – 1:15 am For more information, go to rideuta.com/ondemand. Ski service Cottonwood canyons Ski service typically operates from late November to early April. Find more information at rideuta.com/ski. UTA On Demand South Valley zone On-demand service operates in this area: Mon–Fri 4 am – 12:15 am Saturday 6 am – 1:15 am For more information, go to rideuta.com/ondemand. Canyon service Parleys Canyon Some trips to Kimball Junction only operate during ski season. Find more information at rideuta.com. UTA On Demand South Davis zone On-demand service operates in this area: Mon–Fri 6 am – 9 pm For more information, go to rideuta.com/ondemand. Intermountain Hospital 217 F453451 551 1940 West 248 4800 West 3935 248 47 509240 227 F232 513 West Valley Central F232 240 F590 Jordan Valley 223 F453200 North Temple 2117 Central Pointe 39 Meadowbrook 3533 Millcreek 217 Redwood Junction 47 5445 200 201 Murray Central 205 Murray North 4739 217 SLCC–Taylorsville 62 209 Fashion Place West F578 Historic Gardner227 2700 West F570 F570F202 Bingham Junction 217 218 West Jordan City Center 72 223 Cottonwood Corporate Center 4 45 902 33 39 Olympus Cove 220 Highland Dr / 9400 S 994F94 972 Big Cottonwood Canyon 871 Draper Town Center 213 F525 F578 Midvale Center F94 F590 994 Historic Sandy 201 F202 F514 Sandy Civic Center F514 Draper F514201 F525218 South Jordan 21 223 473 17 2139 University Medical Center 972 Wasatch Blvd / 6200 S 1 451205 F453 551 Power 72 F570 972 Midvale Fort Union 2 209 509220 513 Salt Lake Central to T o o e l e to K i m b a l l J u n c t i o n to B r i g h t o n v i a S o l i t u d e no s e r v i c e o u t s i d e s k i s e a s o n to A l t a v i a S n o w b i r d no s e r v i c e o u t s i d e s k i s e a s o n to Weber & Davis counties to Utah County FrontRunner to Provo Central FrontRunner to Ogden N Frequent bus Runs every 15 minutes Regular bus Runs every 30 or more minutes Limited bus Routes with limited service Ski bus Service to Big and Little Cottonwood canyons No service outside ski season—check rideuta.com/ski for exact dates Transit, UTA’s preferred trip planning app Find schedule info, see bus and train locations, buy tickets and passes, and get notified about detours and service disruptions in real time. Plan your trip Legend EFFECTIVE 16 APRIL 2023 Rail FrontRunner Intercity train service running every 30–60 minutes Monday–Saturday only TRAX Blue Line TRAX Green Line TRAX Red Line Light rail service running every 15–30 minutes S-Line Streetcar service running every 15–30 minutes 2 6 451 Bus • South Valley zone • Westside zone • South Davis zone 994 UTA On Demand Microtransit service Park-and-ride More information at rideuta.com Salt Lake County SYSTEM MAP FORTOORFFTTFRRRTTORRTFOFTT DOUGLASGUUGOUGLUDDGAAAAAADDDDSSAS RESEARCHSESSESESERERRRESEESEEERRR PARKPPPPAPAAAARAARARRRRARKKR 473 21 49 F11 473 1 2 220 223 4 17 223 223 213 220 455 4 455 473 F O O T H IL L D R GU ARDS MAN KO M AS W A KARA WA Y C HIPET A500 S 500 S NORT H C A M P U S DR3RD AVE SOUTH TEMPLE 100 S 200 S CE N T R A L CA M P U S D R SOUTH CAMPUS D R UN I V ST M A RIO C A PECC H I D R Fort Douglas Huntsman Center VA Hospital President’s Circle Rice-Eccles Stadium Huntsman Center VA Hospital President’s Circle Rice-Eccles Stadium 2134 220 455 473 Stadium 17 213 219 Union Building 1 2 F11 University Hospital 21 223 473 17 2139 University Medical Center 9 17 213 455 473 South Campus F11 223 21 The University of Utah DOWNTOWNWOODOWNTOWNWOWDOWNTOWN NUESSUUAVEAVE 473 509513 513 205 220 205 205 223 223 223 209 200 209 1 1 1 200 209 209 2 F453 451 1 4 4 4 509 4554 205 2202 41 451 200 205 209 455 470 472 473 500 E 200 E ST A T E S T ST A T E S T MA IN ST MA IN S T SOUTH TEMPLE 400 S 400 S 40 0 W 50 0 W 60 0 W 30 0 W WE S T T E M P L E 200 S NORTH TEMPLE 700 S 600 S 20 0 W 200 S200 S SOUTH TEMPLE 100 S100 S 2ND AVE 3RD AVE B S T E S T Courthouse 600 South Gallivan Plaza City Center Arena North Temple Planetarium Old Greektown Library Trolley Temple Square Salt Lake City Public Library Salt Lake City Public Library E ZONEEOZZZZZFREE FAREERFREE FARE ZONE 451 1 200 223 451 455 470 472 473 2 209 509220 513 Salt Lake Central Downtown Salt Lake City 18 Downtown Provo and BYU SEE INSET UVX UVX F r o n t R u n n e r F r o n t R u n n e r F r o n t R u n n e r SALTTT LAKELAK P LEAS ANT G ROVE S ALEM DRAPER GOSHENHGOSHE AGENOLA LEHI SPRINGVILLE S PANISH FO RK AMERICANIM FORKR EAGLE MOUNTAIN WOODLANDLANDWOOWOO HIHILLS ARDVINEYA S ANTAQ UIN LINDON RIVERTON OREMO BLU FFDA L E MAPLETONE PROVO ELK RIDGE HIGHLANDL PAYSON BENJAMINBENJAMINJ PALMYRA A LPINE CECEDAR HILLLS SARATTOGAA SPRINNGS 871 871 850 850 850 850 862 862 862 834834 834 850 850 850831 833833 821 822 822 821 821 821 822 807 807 807 807 807 806 806 806 806 806 806 806 805 805 805 805 805 805 822 821 822 822 880 880 880 831 M A I N ST 13400 S US-6 US-6 SR-1 4 1 3 00 W 56 0 0 W 7300 S 10400 S SR-198 P A Y S O N C A N Y O N R D CR-282 2 11200 S EL K R ID G E DR 8800 S PO WE RH OU SE RD 3200 W 8000 S 8000 S 7300 S 6400 S 4000 S 32 0 0 W MA IN S T 1600 S 400 S 1600 S MAPLE ST 1600 S MA I N S T 16 0 0 W 40 0 E 400 S 400 N CENTER ST MA I N S T 1400 N G E N E V A RD 820 N S T A T E S T CENTER ST MA I N ST 2230 N C A N YO N R D CENTER ST 40 0 W 800 S 40 0 E 800 E 8 0 0 E 9600 N 10400 N 700 N UT - 6 8 SR-68 RE D W O O D R D SR-73 PONY EXPRESS PKWY RANCHES PKWY MAIN ST 23 0 0 W PIONEER CROSSING MOUNTAIN V I EW 2100 N CEN T E R S T MAIN ST 900 N 68 0 0 W 12 0 0 E TIMPANOGOS HWY TIMPANOGOS HWY 11800 N 2600 N 700 N 300 N 1100 N C A N Y O N R D A L P I NE H W Y 600 0 W 100 E S T A T E S T STA TE S T R E D W O O D R D MO U NT A I N V I E W BANGERTER HWY 14600 S 14400 S 27 0 0 W R E D W O O D R D BANGERTER HWY SUNCREST DR TRAVERSE RIDGE RD SUNC REST DR US - 6 MAIN ST U S-189 U S-189 CEDAR HILLS DR G E NEV A R D S T A T E S T AL P I N E L O O P R D 3 0 0 E CANYON RD 400 N 80 0 E 100 S U T -6 8 UN I VER SI TY A VE 800 N 800 N 10 0 E 50 0 E A L P IN E H W Y STATE ST G EN E V A R D S T A T E S T 55 0 W 1720 N 1460 N 1600 N WO O D L A N D H I L L S D R LA K E V I E W P K W Y R E D W O O D R D HARVEST HILLS BLVD CROSSROADS BLVD TR IUMPH NO R T H C O U N T Y B L V D MA I N S T 800 N M I L L R D 400 S 12 0 0 W 1200 S EAST BA Y B L V D UN I V E R S I T Y A V E LAKEVIEW PKWY SR- 5 1 E XP R E S S WAY LN CENTER ST MA I N S T SR - 1 9 8 SR-198 100 N 10 0 W 800 S UNIVERSITY PKWY1430 S 50 0 W 50 0 W RIVER PARK DR30 0 W 4800 NCENTER ST A S H T O N ST A T E S T STAT E S T MAIN ST N O R TH CO UN TY BLVD S T A T E S T UNIVERSITY PKWY CA BELA’S BLVD 15 15 15 15 15 15 15 Lakeview Main Street 2230 North East Bay North East Bay South Towne Centre Blvd American Fork Timpanogos Regional Hospital American Fork Hospital Utah Valley Hospital Mountain View Hospital Thanksgiving Point Utah Valley University University Place LaVell Edwards Stadium Timpanogos Regional Hospital American Fork Hospital Utah Valley Hospital Mountain View Hospital Thanksgiving Point Utah Valley University University Place LaVell Edwards Stadium Provo Towne Centre Outlets at Traverse Mountain Mountain Point Medical Center Provo Airport UTAH LAKE Salem Lake Grimes Pond Nolan Park LONE PEAK TRAVERSE MOUNTAIN LONE PINE RIDGE SPANISH FORK CANYON BUCKLEY MOUNTAIN LAKE MOUNTAINS CASCADE MOUNTAIN MOUNT TIMPANOGOS BIG BALDY MAHOGANY MOUNTAIN AMERICAN FORK CANYON PROVO CANYON ROCK CANYON Y MOUNTAIN LOAFER MOUNTAIN DRY MOUNTAIN WEST MOUNTAIN Ski service Provo Canyon Ski service typically operates from mid-December to late March. Find more information at rideuta.com/ski. UTA On Demand South Valley zone On-demand service operates in this area: Mon–Fri 4 am – 12:15 am Saturday 6 am – 1:15 am For more information, go to rideuta.com/ondemand. 880 Sundance 805 821 822822 South Payson 806 822807 805UVX 831 862 Utah Valley University UVX 822 831 BYU South Campus 806 871 807 850 Lehi 862831UVX Orem Central 805 805 821 831 833 834 850 UVX Provo Central 850 880 UVX 862 University Place 834 Vineyard FrontRunner to Salt Lake Central & Ogden Central to Salt Lake, Davis, and Weber counties N Bus UVX Bus rapid transit (BRT) service running every 6–15 minutes Monday–Saturday only Frequent bus Runs every 15 minutes Regular bus Runs every 30 or more minutes Limited bus Routes with limited service Ski bus Service to Sundance No service outside ski season—check rideuta.com/ski for exact dates Legend Rail FrontRunner Intercity train service running every 30–60 minutes Monday–Saturday only 862 850 805 880 UTA On Demand Microtransit service Park-and-ride Transit, UTA’s preferred trip planning app Find schedule info, see bus and train locations, buy tickets and passes, and get notified about detours and service disruptions in real time. Plan your trip EFFECTIVE 16 APRIL 2023 More information at rideuta.com Utah County SYSTEM MAP 805 805 821 831 833 834 850 UVX Provo Central UVX 822 831 BYU South Campus Memorial Park Joaquin Park City Cemetery Maeser Park Harmon Park Kiwanis Park Brigham Square Cougar Field Wilkinson Center Provo City Library Provo Rec Center Utah County Courthouse Marriott Center LaVell Edwards Stadium Missionary Training Center Wilkinson Center Provo City Library Provo Rec Center Utah County Courthouse Marriott Center LaVell Edwards Stadium Missionary Training Center JOAQUINUO MAESERREMAESER DOWNTOWNNOWDDOWNTOWN TREETERE STREETSREET BRIGHAMGBRI YOUNGO UNIVERSITYSITV BYU Stadium BYU North Campus JoaquinAcademy Square 300 North Center Street 400 South 300 S 920 S CENTER ST 100 N 700 N COUGAR BLVD 700 N 800 N 900 N UNIVERSITY PK W Y UN I V E R S I T Y A V E 90 0 E FR E E D O M B L V D UN I V E R S I T Y A V E 70 0 E 90 0 E 90 0 E S T A T E S T FR E E D O M B L V D FR E E D O M B L V D UN I V E R S I T Y A V E UVX U V X U V X 831 831 850 822 822 831 822 822 834 831 834 850 833 805 821 831 Downtown Provo and BYU 19 INDUSTRIAL DEPOT TOOELE GRANTSVILLET S TANSBU R Y PARK ERD A L AKE P O INT 451 451 F453 451 451 F453 F453 SR- 3 6 MO U N T A I N V I E W R D CANYON RD SADDLEBACK BLVD CEN T E R S T SR-138 SR-13 8 SR - 3 6 S T A NSBURYPK WY VILLAGE BLVD CHURCH RD ERDA WAY 2000 N 1000 N S R - 1 1 2 SR- 1 1 2 400 N 7TH S T SKYLINE DR 700 S MAIN S T ERDA WAY MAIN ST S R - 1 3 8 QU I R K S T WE S T S T SR - 1 1 2 BU R M E S T E R R D BURM E S T E R R D DURFEE ST DEPOT BOUNDARY RD SH E E P L N BATES CANYON RD DR O U B A Y R D SR - 3 6 MA I N S T DR O U B A Y R D BR O A D W A Y MA I N S T CO C H R A N E L N TO O EL E BLVD MID V A L L E Y H WY MID D LE C A N Y O N R D F RANK S D R 20 0 W VINE ST UTAH AVE 400 S CO L E M A N S T 80 80 GREAT SALT LAKE BATES CANYON MIDDLE CANYON Mountain West Medical Center Tooele Technical College Deseret Peak Walmart Distribution Center USU–Tooele Mountain West Medical Center Tooele Technical College Deseret Peak Walmart Distribution Center USU–Tooele UTA On Demand Tooele County zone On-demand service operates in this area: Mon–Fri 7 am – 7 pm For more information, go to rideuta.com/ondemand. UTA On Demand Tooele County zone On-demand service operates in this area: Mon–Fri 7 am – 7 pm For more information, go to rideuta.com/ondemand. UTA On Demand Tooele County zone On-demand service operates in this area: Mon–Fri 7 am – 7 pm For more information, go to rideuta.com/ondemand. 451 F453 2400 N 451 F453 F453 Benson Grist Mill to Salt Lake County N Bus Regular bus Runs every 60 minutes Limited bus Routes with limited service Legend F453 451 UTA On Demand Microtransit service Park-and-ride Transit, UTA’s preferred trip planning app Find schedule info, see bus and train locations, buy tickets and passes, and get notified about detours and service disruptions in real time. Plan your trip EFFECTIVE 16 APRIL 2023 More information at rideuta.com Tooele County SYSTEM MAP 20 SM Financial 21 (Continued) Crowe LLP Independent Member Crowe Global INDEPENDENT AUDITOR'S REPORT Board of Trustees Utah Transit Authority Salt Lake City, Utah Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the business-type activities and fiduciary activities of the Utah Transit Authority (the Authority), a component unit of the State of Utah, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and fiduciary activities of the Authority, as of December 31, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 2 to the financial statements, in the year ended December 31, 2022, the entity adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 22 (Continued) In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in net pension liability and related ratios, schedule of required employer contributions, and schedule of investment returns, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 23 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The schedule of revenues, expenses and changes in net position budget to actual, combining statement of fiduciary net position, combining statement of changes in fiduciary net position, and the schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of revenues, expenses and changes in net position budget to actual, combining statement of fiduciary net position, combining statement of changes in fiduciary net position, and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 9, 2023 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance. Crowe LLP Indianapolis, Indiana June 9, 2023 24 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 Utah Transit Authority’s 2022 fiscal performance continues to demonstrate the successful implementation of its financial policies. This report provides accountability to the Authority’s goals and objectives defined with its residents and adopted by the Board of Trustees. This section of the Annual Comprehensive Financial Report presents our discussion and analysis of the Authority’s financial performance during the fiscal year that ended on December 31, 2022. Please read it in conjunction with the transmittal letter at the front of this report and the Authority’s financial statements, which follow this section. Due to the material relationship between the Authority and its component units (Joint Insurance Trust and Pension), the Total Reporting Entity information more accurately reflects the comprehensive financial operations of Utah Transit Authority.   OVERVIEW OF THE FINANCIAL STATEMENTS The financial section of this annual report consists of four parts – Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, other Required Supplementary Information, and a supplementary section that presents budget and actual schedules for the authority funds; and fiduciary fund schedules for the Joint Insurance Trust and Pension Trust. The basic financial statements present different views of the Authority:  The first three statements are government-wide financial statements that provide both long-term and short-term information about the Authority’s overall financial status.  The remaining statements are fiduciary fund statements which provide information about the financial relationships in which the Authority acts solely as a trustee or agent for the benefit of others, to whom the resources belong, such as the Authority’s pension and collective bargaining medical, dental and life insurance funds.     FINANCIAL HIGHLIGHTS   The total reporting entity has positive unrestricted net position of $505,087,728 at December 31, 2022, which represents an increase of $173,650,475 or 52.4 percent over the prior year.  The total expenses of the Authority’s increased 15.5 percent to $669,621,766 during fiscal year 2022, while the Authority’s total revenues increased by 25.6 percent to $858,700,828.  At December 31, 2022, the Authority had $2,372,539,073 of debt outstanding, including $56,125,000 related to Utah County’s Bonds for Provo-Orem Bus Rapid Transit Construction in 2019. Accordingly, liabilities and deferred inflows of the Authority at December 31, 2022 w e r e exceeded by its assets and deferred outflows by $1,215,802,467.  Revenues exceeded the budget by $94,044,001; alternatively, expenses were only $6,675,527 over the budget due to unbudgeted pension related activities. This helped to provide additional available resources to fund the Authority’s reserves available for future appropriation.  For 2022, ridership increased by 31.2 percent compared to the prior year, with demand response growing the most in 2022, at 87.5 percent. Fare revenues contributed 3.9 percent to total revenues for the Authority. 25 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 The financial statements also include note disclosures that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. In addition to these required elements, the financial statements include a supplementary section with combining statements that provide details about the Authority’s fiduciary funds, each of which are combined and presented in single columns in the basic financial statements. The chart below summarizes the major features of the Authority’s financial statements, including the scope and the types of financial information presented. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Major Features of Utah Transit Authority's Financial Statements Government-Wide Statements Fund Statements Fiduciary Funds Scope Entire Authority (except fiduciary funds). The Authority operates in a manner similar to private businesses. Instances in which the Authority is the trustee or agent for someone else's resources, such as the retirement plan or medical plans of employees Required Financials Statements Statement of net position Statement of fiduciary net position Statement of revenues, expenses, and change in net position Statement of changes in fiduciary net position Statement of cash flows Basis of Accounting and Measurement Focus Accrual basis of accounting and economic resources measurement focus Accrual basis of accounting and economic resources measurement focus Type of Deferred Outflow/Inflow, Asset Liability Information All assets and liabilities, both financial and capital, and short- term and long-term All assets and liabilities, both financial and capital, and short-term and long-term; the Authority's fiduciary funds do not currently contain capital assets although they could Type of Outflow/Inflow Information All revenues and expenses during the year, regardless of when cash is received or paid All revenues and expenses during the years, regardless of when cash is received or paid 26 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 CONDENSED STATEMENTS OF NET POSITION 2022 2021 (Restated) Difference Percent difference Assets Current and other assets $ 858,367,219 $ 671,105,360 $ 187,261,859 28% Capital assets, net 2,889,621,291 2,889,299,679 321,612 0% Total assets 3,747,988,510 3,560,405,039 187,583,471 5% Deferred outflows of resources 161,487,088 135,869,962 25,617,126 19% Liabilities Current liabilities 217,679,168 192,370,099 25,309,069 13% Long-term liabilities 2,467,772,606 2,445,749,954 22,022,652 1% Total liabilities 2,685,451,774 2,638,120,053 47,331,721 2% Deferred inflows of resources 8,221,357 31,431,543 (23,210,186) -74% Net position Net investment in capital assets 666,552,866 668,271,091 (1,718,225) 0% Restricted 44,161,873 27,015,061 17,146,812 63% Unrestricted 505,087,728 331,437,253 173,650,475 52% Total net position $ 1,215,802,467 $ 1,026,723,405 $ 189,079,062 18% Current and other assets increased from 2021 due to the Authority’s continued and final receipt of federal stimulus associated with America Rescue Plan Act of 2021 (ARPA) funding. These funds reimbursed the Authority for operating expenses previously paid with local sales taxes prior to the COVID-19 pandemic. This allowed the Authority to accumulate cash to offset losses in passenger fare and investment income affected by the downturn in the market due to the inflation and higher interest rates. Additionally, the Authority, recognized $20.8 million for sale of an additional phase of the Jordan Valley transit-oriented community in early 2022. Deferred outflows of resources increased from 2021 by $25.6 million due in part to the pension losses that will be amortized over the next five years. Current liabilities increased from 2021 due to two factors. First, the 2023 debt service principal payments increased by $14.0 million based on payment schedules. Second, the State of Utah transferred additional cash funds, awarded in the 2021 legislative session, of $11.8 million to the Authority. These funds have not been spent on the projects, so unearned revenue for the State of Utah increased to $60.1 million at year end. Deferred inflows of resources decreased from 2021 by $23.2 million due to the decrease pension investment gains from previous periods that were amortized over five years. Restricted net position increased from 2021 due to two factors. The Authority’s higher debt service principal payments in 2023 require $9.0 million more of reserve funds. Second, an interlocal agreement with Utah County for the fourth quarter cent sales tax requires excess proceeds to be saved for future debt service payments on the 2016 debt issued by Utah County. A change in unrestricted net position over time may serve as a useful indicator of a government entity’s financial position. As of December 31, 2022, the Authority’s unrestricted net position has increased $189.1 million from 27 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 December 31, 2021. This change can be attributed to the changes in current and other assets explained earlier in this section along with reductions in spending during the COVID-19 pandemic. CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 2022 2021 Difference Percent difference Operating revenues $ 35,713,144 $ 30,386,187 $ 5,326,957 18% Operating expenses 569,651,499 472,933,325 96,718,174 20% Excess of operating expenses over operating revenues (533,938,355) (442,547,138) (91,391,217) -21% Non-operating revenues 741,344,880 584,816,562 156,528,318 27% Non-operating expenses 99,970,267 101,286,173 (1,315,906) -1% Income (loss) before contributions 107,436,258 40,983,251 66,453,007 -162% Capital contributions 81,642,804 68,233,591 13,409,213 20% Change in net position $ 189,079,062 $ 109,216,842 $ 79,862,220 -73% Total net position, January 1 as restated $ 1,026,723,405 $ 917,203,741 Total net position, December 31 $ 1,215,802,467 $ 1,026,420,583 SUMMARY OF REVENUES FOR THE YEAR ENDED DECEMBER 31 2022 2021 Difference Percent difference Operating Passenger revenue $ 33,499,144 $ 28,510,458 $ 4,988,686 17% Advertising 2,214,000 1,875,729 338,271 18% Total operating revenue 35,713,144 30,386,187 5,326,957 18% Non-operating Contributions from other gov'ts (sales tax) 480,925,766 433,360,729 47,565,037 11% Federal noncapital assistance 215,063,965 130,631,095 84,432,870 65% Interest income 1,806,825 1,432,026 374,799 26% Reinvestment of proceeds from development agreements 19,368,007 - 19,368,007 100% Sale of assets 3,228,640 1,411,431 1,817,209 129% Build America Bond subsidy 9,259,376 8,158,624 1,100,752 13% Other 11,692,301 9,822,657 1,869,644 19% Total non-operating revenue 741,344,880 584,816,562 156,528,318 27% Capital contributions 81,642,804 68,233,591 13,409,213 20% Total revenues $ 858,700,828 $ 683,436,340 $ 175,264,488 26% Passenger revenue as a portion of total revenues declined to 3.9 percent from 4.2 percent during 2022. This decline was caused by a decrease of $5.0 million in corporate fare contract revenues. These revenues continue to decline even though overall ridership is slowly returning to pre-pandemic levels. Many of the Authority’s corporate supporters have opted for contracts based on actual ridership of employees rather than general support of the system. 28 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 Since the Authority does not have the ability to levy taxes, it relies on contributions dedicated by member governments in the form of sales tax increments. 56 percent of total revenues are derived from sales taxes. Sales tax revenues increased by $47.6 million driven mainly by the robust economy described in the letter of transmittal section. In 2022, the federal government continued to contribute to the Authority for operating, maintenance, and administration assistance. The Authority received $167,791,391 in America Rescue Plan Act of 2021 (ARPA) funding. These allocations were based on a formula that factored in 2019 operating expenses of the Authority to determine the award amount. This led to the increase of $84.4 million in 2022 federal noncapital assistance revenues. Return on capital investment is an infrequent revenue, that occurred in 2022 due to a sale of interest at the Authority’s transit-oriented community at Jordan Valley. Another phase of the Jordan Valley development was sold for a shared profit with the developer. The Authority’s share of the profit was $19,368,007 which was reinvested in the project. Capital contributions increased by $13.4 million due to state and local partners contributing more on capital projects in 2022. This can be expected, as local participation in new construction projects can vary from year to year. SUMMARY OF EXPENSES FOR THE YEAR ENDED DECEMBER 31 2022 2021 Difference Percent difference Operating expenses Bus service $ 135,508,533 $ 108,575,280 $ 26,933,253 25% Rail service 121,262,026 94,943,238 26,318,788 28% Demand response service 33,431,955 27,083,173 6,348,782 23% Other services 3,509,781 3,587,718 (77,937) -2% Operations support 62,562,572 50,621,841 11,940,731 24% Administration 64,959,236 54,073,187 10,886,049 20% Depreciation and amortization 142,059,366 134,048,888 8,010,478 6% Total operating expenses 563,293,469 472,933,325 90,360,144 19% Non-operating expenses Interest expense 99,970,267 101,286,173 (1,315,906) -1% Impairment expense 6,358,030 - 6,358,030 100% Total non-operating expenses 106,328,297 101,286,173 5,042,124 5% Total expenses $ 669,621,766 $ 574,219,498 $ 95,402,268 17% Operating expenses for 2022 increased $90.3 million over 2021. The four most significant changes by mode are in bus and rail services along with operating support and administration. The bus and rail services continue to rebound to pre-COVID-19 pandemic levels. However, due to the age of the equipment, maintenance expenses have increased the overall cost to run the services. Administration increases are related to capital maintenance expenses. Capital maintenance expenses are significant, yet infrequent expenses required to keep our equipment operational. The following chart shows the amount allocated to each mode: 29 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 SUMMARY OF CAPITAL MAINTENCE EXPENSES FOR THE YEAR ENDED DECEMBER 31 2022 2021 Difference Percent difference Capital Maintenance Expenses in Projects Bus service $ 9,674,985 $ 1,050,751 $ 8,624,234 821% Rail service 33,064,281 16,279,011 16,785,270 103% Demand response service 115,961 162,543 (46,582) -29% Other service 3,105 3,030 75 2% Administration 17,618,396 13,558,929 4,059,467 30% Total capital maintenance expenses $ 60,476,728 $ 31,054,264 $ 29,422,464 95% Like most transit service agencies, personnel cost is the Authority’s largest expense. Personnel cost for the Authority in 2022 was 61.6 percent of total operating expense less depreciation expense. Overall, personnel cost increased $32.3 million in 2022 due to the Authority increasing the number of positions, salaries, and fringe benefits. SUMMARY OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31 2022 2021 Difference Percent difference Operating expense less depreciation $ 421,234,103 $ 338,884,437 $ 82,349,666 24.3% Wages 167,912,455 158,066,997 9,845,458 6.2% Benefits 91,696,739 69,212,130 22,484,609 32.5% Operations less wages/benefits 161,624,909 111,605,310 50,019,599 44.8% Personnel cost $ 259,609,194 $ 227,279,127 $ 32,330,067 14.2% % of operating expense 61.6% 67.1% -5.4%-8.1% Operating expense less depreciation cost increased $82.3 million due to the rising cost for goods, mostly fuel, and increased contractual services for information technology and human resources. CAPITAL ASSET AND DEBT ADMINISTRATION CAPITAL ASSET ACTIVITY 2022 2021 Difference Percent difference Land $ 416,304,520 $ 411,342,949 $ 4,961,57 1% Construction in process 242,275,503 203,927,118 38,348,385 19% Infrastructure 2,529,910,034 2,508,863,889 21,046,14 1% Building and building improvements 197,884,811 203,911,043 (6,026,232) -3% Revenue vehicles 718,106,506 748,886,006 (30,779,500) -4% Financed revenue vehicles 109,431,765 87,967,286 21,464,479 24% Equipment 75,716,711 66,816,219 8,900,492 13% Land improvements 202,372,874 178,487,488 23,885,386 13% Leasehold improvements 94,263,206 94,273,476 (10,270) 0% Intangibles 67,879,460 57,097,309 10,782,151 19% Accumulated depreciation and amortization (1,764,524,099) (1,673,614,615) (90,909,484) 5% Total capital assets, net $ 2,889,621,291 $ 2,887,958,168 $ 1,663,123 0% 30 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 Capital Assets At the end of fiscal year 2022, the Authority had invested $4.6 billion in a broad range of capital assets, including land, buildings, leasehold improvements, equipment, infrastructure, and construction in progress. Construction in progress is higher than last year due to two large projects nearing completion in Summer of 2023, the new OGX Bus Rapid Transit line in Ogden for $80.9 million and the new Depot District building being constructed in Salt Lake for $77.6 million. The decrease in revenue vehicles is attributed to the disposal of older revenue vehicles and the “right-sizing” of the fleet to the current service levels. These reductions are partially offset by the increase in financed revenue vehicles. Land improvements increased due to the addition of the airport TRAX station in Salt Lake City and the Vineyard commuter rail station in Utah County. Intangible assets increased for software implementations, easements, and right to use land acquisitions associated with new lease accounting requirements. Long-Term Debt and Other Obligations At year-end the Authority had total debt obligations of $2.4 billion, of which, bonded debt outstanding represented $2.3 billion, all of which is backed by pledged sales tax increments from each county in the Authority’s service area. Of the Authority’s debt, $105.9 million represents financing agreements secured solely by specified revenue vehicle that is pledged as collateral on the lien. The Authority’s total debt obligations decreased $38.8 million during the 2022 fiscal year. The key components of the 2022 activities were new financing agreements totaling $33.7 million, coupled with principal retirements of $72.5 million. More detailed information about the Authority’s long-term debt is presented in Footnote 10 to the financial statements. Bond Ratings The Authority increased its rating with Standard & Poor’s to AA+ while maintaining its ratings of AA and Aa2 with Fitch Ratings and Moody’s Investors Services, respectively. DEBT ADMINISTRATION Effective date: April 2023 Standard & Poor's Fitch Moody's Senior Lien Bonds Current rating AA+ AA Aa2 Outlook Positive Negative Stable Subordinate Lien Fixed Rate Bonds Current rating AA AA Aa3 Outlook Positive Negative Stable Limitations on Debt   The Authority has historically issued Sales Tax Revenue Bonds in lieu of any General Obligation Bonds. Revenue bonds do not have issue limits based on assessed valuation of properties in the Authority’s district but are constrained by UTA’s ability to repay the principal and interest amounts annually with pledged sales tax revenues. An important metric of the Authority’s financial health is the amount of pledged sales taxes annually in relation to the debt service due in the given year, or debt service coverage ratio.   31 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 Debt Service Coverage Ratio (DSCR) Policy Minimum DSCR Requirements Minimum DSCR Forecasted Year of Minimum Senior Lien 2.0x 4.42x 2023 Subordinate Lien 1.5x 8.28x 2040   The Authority’s net coverage ratio would reach a minimum of 3.06 in 2023. Adherence to other minimum debt service coverage ratios is detailed in the table below:   Year Projected Pledged Sales Taxes Senior Lien Debt Payments Senior Lien Projected Debt Service Coverage Ratio Subordinate Lien Debt Payments Subordinate Lien Projected Debt Service Coverage Ratio Total Debt Payments Total Projected Debt Service Coverage Ratio 2023 459,839,154 104,039,742 4.42 46,453,711 9.90 150,493,453 3.06 2024 459,839,154 104,045,687 4.42 46,446,219 9.90 150,491,906 3.06 2025 479,658,222 105,978,989 4.53 46,447,174 10.33 152,426,163 3.15 2026 517,743,085 105,981,667 4.89 46,451,771 11.15 152,433,438 3.40 2027 558,851,886 101,946,084 5.48 56,198,041 9.94 158,144,125 3.53 2028 597,133,240 101,941,964 5.86 56,188,017 10.63 158,129,981 3.78 2029 635,051,201 104,906,327 6.05 62,439,403 10.17 167,345,730 3.79 2030 675,376,952 102,048,307 6.62 62,415,895 10.82 164,464,202 4.11 2031 718,263,388 102,055,492 7.04 62,439,893 11.50 164,495,385 4.37 2032 763,873,114 101,802,153 7.50 62,439,607 12.23 164,241,760 4.65 2033 812,379,056 124,060,994 6.55 40,077,991 20.27 164,138,985 4.95 2034 863,965,126 124,064,926 6.96 40,080,199 21.56 164,145,125 5.26 2035 918,826,912 124,062,891 7.41 40,078,514 22.93 164,141,405 5.60 2036 977,172,421 127,429,814 7.67 34,962,723 27.95 162,392,537 6.02 2037 1,039,222,870 125,833,888 8.26 36,563,777 28.42 162,397,665 6.40 2038 1,105,213,522 123,415,219 8.96 38,980,308 28.35 162,395,527 6.81 2039 1,175,394,580 99,960,375 11.76 62,436,883 18.83 162,397,258 7.24 2040 1,250,032,136 11,657,724 107.23 150,946,856 8.28 162,604,580 7.69 2041 1,329,409,177 79,316,687 16.76 66,369,476 20.03 145,686,163 9.13 2042 1,413,826,660 122,206,633 11.57 23,475,140 60.23 145,681,773 9.70 2043 1,503,604,652 4,445,000 338.27 4,445,000 338.27 2044 1,599,083,548 4,439,300 360.21 4,439,300 360.21 32 THE UTAH TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended December 31, 2022 ECONOMIC AND OPERATING FACTORS AND NEXT YEAR’S BUDGET Key Economic Factors  In response to the COVID-19 global pandemic, the federal government has made funding available via the America Rescue Plan Act of 2021 (ARPA). These funds are to aid localities in their response to the health crisis. Expenditures of this federal funding is subject to audit by the grantor under the Uniform Guidance, and the Authority is contingently liable to refund amounts received in excess of allowable expenditures. In the opinion of the Authority’s management, no material refunds will be required as a result of expenditures disallowed by the grantor. See the results of the Single Audit in the Authority’s Single Audit Report for further information.  The fiscal year 2023 operating budget is $37.4 million higher than 2022, which is a 10.3 percent increase from fiscal year 2022. Operating Statistics The following information provides an annual comparison of ridership by service for years 2022 and 2021. RIDERSHIP COMPARISON Source: National Transit Database 2022 2021 Difference Percent difference Bus service $ 16,196,066 $ 12,616,872 $ 3,579,194 28.4% Light rail service 10,734,065 8,403,862 2,330,203 27.7% Commuter rail service 3,230,521 2,062,333 1,168,188 56.6% Demand response service 565,368 301,505 263,863 87.5% Other service 731,900 587,721 144,179 24.5% Total ridership $ 31,457,920 $ 23,972,293 $ 7,485,627 31.2% The Authority had a 31.2 percent increase in ridership in 2022 and continues to recover after the COVID-19 pandemic. Pre-pandemic levels of commuter ridership into Salt Lake City and Salt Lake County has not returned as of the date of this report as many businesses have encouraged telecommuting or working from home for their employees. CONTACTING THE AUTHORITY’S FINANCIAL MANAGEMENT The financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Authority’s finances and to demonstrate the Authority’s accountability for the money received. Questions about this report or inquiries for additional information may be addressed to the Comptroller, 669 West 200 South, Salt Lake City, Utah 84101 or tbingham@rideuta.com. 33 UTAH TRANSIT AUTHORITY FINANCIAL STATEMENTS As of December 31, 2022 STATEMENT OF NET POSITION ASSETS Current Assets: Cash and cash equivalents $340,511,281 Investments 195,865,777 Restricted cash and cash equivalents (bond funds)25,973,657 Receivables Contributions from other governments (sales tax)86,119,433 Federal grants 15,916,587 Other 11,213,548 State of Utah 267,196 Parts and supplies inventories 39,450,941 Prepaid expenses 1,666,243 Total Current Assets 716,984,663 Noncurrent Assets: Restricted cash equivalents and investments Interlocal agreements Escrow funds Self-insurance deposits Total restricted cash equivalents and investments 88,462,070 Long-term lease receivables 2,372,247 Non-depreciable capital assets Land Construction in progress Total non-depreciable capital assets Depreciable/Amortized Capital Assets: Land improvements Leasehold improvements Building and building improvements Infrastructure Revenue vehicles Financed revenue vehicles Equipment Intangibles Total depreciable/amortized capital assets Total capital assets Less accumulated depreciation and amortization Total capital assets, net depreciation and amortization 2,889,621,291 Amount recoverable - interlocal agreement 18,651,010 Other assets 31,897,229 Total Noncurrent Assets 3,031,003,847 TOTAL ASSETS $3,747,988,510 658,580,023 202,372,874 94,263,206 197,884,811 11,074,257 68,706,587 8,681,226 416,304,520 242,275,503 **Readers wanting additional information should refer to the notes to the financial statements** 2,529,910,034 718,106,506 109,431,765 75,716,711 67,879,460 3,995,565,367 4,654,145,390 (1,764,524,099) 34 UTAH TRANSIT AUTHORITY FINANCIAL STATEMENTS As of December 31, 2022 STATEMENT OF NET POSITION (continued) DEFERRED OUTFLOWS OF RESOURCES Advanced debt refunding - loss on refunding $93,512,404 Deferred outflows of resources related to pension 67,974,684 TOTAL DEFERRED OUTFLOWS OF RESOURCES 161,487,088 LIABILITIES Current Liabilities: Accounts payable: Other 38,935,794 State of Utah 1,846,425 Lease 253,947 Accrued liabilities, primarily payroll-related 8,081,279 Current portion of compensated absences 10,629,671 Current portion of accrued interest 3,849,362 Current portion of interlocal loan 1,595,000 Current portion of long-term debt 78,980,238 Accrued self-insurance liability 1,567,267 Unearned revenues: Other 11,858,318 State of Utah 60,081,867 Total Current Liabilities 217,679,168 Long-Term Liabilities: Long-term compensated absences 4,748,411 Long-term deposits 49,007 Long-term lease payable 388,445 Long-term accrued interest 4,398,268 Interlocal loan 54,530,000 Long-term debt 2,237,433,835 Net pension liability 166,224,640 Total Long-term Liabilities 2,467,772,606 TOTAL LIABILITIES 2,685,451,774 DEFERRED INFLOWS OF RESOURCES Advanced debt refunding - gain on refunding 5,169,498 Deferred inflows of resources for leases 2,529,265 Deferred inflows of resources related to pension 522,594 TOTAL DEFERRED INFLOWS OF RESOURCES 8,221,357 NET POSITION Net investment in capital assets 666,552,866 Restricted for: Debt service 25,973,657 Interlocal agreements 11,074,257 Self-insurance deposits 7,113,959 Unrestricted 505,087,728 TOTAL NET POSITION $1,215,802,467 **Readers wanting additional information should refer to the notes to the financial statements** 35 UTAH TRANSIT AUTHORITY FINANCIAL STATEMENTS Year ended December 31, 2022 STATEMENT OF REVENUES, EXPENSES AND CHANGE IN NET POSITION OPERATING REVENUES Passenger fares 33,499,144$ Advertising 2,214,000 Total operating revenues 35,713,144 OPERATING EXPENSES Bus service 135,508,533 Rail service 121,262,026 Demand response service 33,431,955 Other service 3,509,781 Operations support 62,562,572 Administration 64,959,236 Impairment expense 6,358,030 Depreciation and amortization 142,059,366 Total operating expenses 569,651,499 EXCESS OPERATING EXPENSES OVER OPERATING REVENUES (533,938,355) NON-OPERATING REVENUES (EXPENSES) Contributions from other governments (sales tax)480,925,766 Federal operating grants 215,063,965 Investment income 1,806,825 Reinvestment of proceeds from development agreements 19,368,007 Net gain on sale of capital assets 3,228,640 Other 11,692,301 Interest expense (99,970,267) Build America Bond subsidies 9,259,376 Net non-operating revenues 641,374,613 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 107,436,258 CAPITAL CONTRIBUTIONS Federal grants 50,582,042 Local 30,992,114 Capital contribution 68,648 TOTAL CAPITAL CONTRIBUTIONS 81,642,804 CHANGE IN NET POSITION 189,079,062$ Total Net Position, January 1 as restated (see Note 2W)1,026,723,405$ Total Net Position, December 31 1,215,802,467$ **Readers wanting additional information should refer to the notes to the financial statements** 36 UTAH TRANSIT AUTHORITY FINANCIAL STATEMENTS Year Ended December 31, 2022 STATEMENT OF CASH FLOWS Cash flows from operating activities: Passenger receipts 34,850,574$ Advertising receipts 2,322,000 Other receipts 12,152,141 Payments to vendors (173,079,152) Payments to employees (165,876,890) Employee benefits paid (71,391,094) Net cash used in operating activities (361,022,421) Cash flows from noncapital financing activities: Sales tax receipts 481,715,011 Federal operating/maintenance grants 216,144,328 Net cash provided by noncapital financing activities 697,859,339 Cash flows from capital and related financing activities: Contributions for capital projects Federal 65,945,015 Local 43,094,324 Payments of bonds (55,735,000) Payments on interlocal loan (1,545,000) Build America Bond subsidies received 9,259,376 Bond Interest payments (89,697,630) Proceeds from financing agreements 33,735,811 Payment on financing agreements (9,294,772) Proceeds from leases 642,392 Purchases of capital assets (160,977,054) Proceeds from the sale of property 3,228,639 Net cash used in capital and related financing activities (161,343,899) Cash flows from investing activities: Interest on investments 1,806,825 Purchases of investments (63,948,761) Net cash used in investing activities (62,141,936) Net change in cash and cash equivalents 113,351,083 Cash and cash equivalents at beginning of year 321,840,442 Cash and cash equivalents at end of year 435,191,525$ **Readers wanting additional information should refer to the notes to the financial statements** 37 UTAH TRANSIT AUTHORITY FINANCIAL STATEMENTS Year Ended December 31, 2022 STATEMENT OF CASH FLOWS (continued) Reconciliation of Cash to the Statement of Net Position Cash and cash equivalents at year end from statement of cash flows 435,191,525$ Cash as reported on the Statement of Net Position Cash and cash equivalents 340,511,281 Restricted cash and cash equivalents Bonds funds 25,973,657 Escrow funds 68,706,587 Total cash and cash equivalents 435,191,525$ Reconciliation of operating loss to net cash used in operating activities: Operating loss (533,938,355)$ Adjustments to reconcile operating loss to net cash used in operatiing activities: Depreciation and amortization 142,059,366 Impairment 6,358,030 Other nonoperating revenues 11,692,301 Changes in deferred outflow/inflow of resources and net pension liability: Deferred outflows of resources related to pension (43,539,526) Deferred inflows of resources related to pension (22,266,766) Net pension liability 75,582,154 Total changes in deferred outflow/inflow of resources and net pension liability 9,775,862 Changes in assets and liabilities: Accounts receivable (2,632,100) Parts and supplies inventories (5,275,714) Prepaid expenses 579,171 Accounts payable - Other and State of Utah 6,107,653 Accrued liabilities 2,791,935 Unearned revenue 1,459,430 Total changes in assets and liabilities:3,030,375 Net cash used in operating activities (361,022,421)$ Information about noncash investing, capital, and financing activities: Change in fair value of investments (6,969,726)$ Capital asset acquisitions in accounts payable and project retainage 7,578,816 Reinvestment of proceeds from development agreements 19,368,007 **Readers wanting additional information should refer to the notes to the financial statements** 38 UTAH TRANSIT AUTHORITY FINANCIAL SECTION As of December 31, 2022 STATEMENT OF FIDUCIARY NET POSITION Pension and Other Employment Benefit Trust Funds ASSETS Cash in Bank 9,848,473$ Cash in Utah State Treasury 488,591 Total Cash 10,337,064 Global Equities 169,136,405 Fixed Income 66,188,689 Real Assets 14,928,117 Money Market 11,911,384 Total Investments 262,164,595 Prepaid Benefits 1,288,520 Deposits 104,795 Receivables Dividends Receivable 27,927 Accounts Receivable - Benefits 2,476 Accounts Receivable - Contributions 561,104 Total Receivables 591,507 TOTAL ASSETS 274,486,481 LIABILITIES Benefits Payable 22,190 Accounts Payable 4,534,614 TOTAL LIABILITIES 4,556,804 NET POSITION Restricted for: Pension 262,432,665 Benefits Other Than Pension 7,497,012 Total Net Position 269,929,677$ Investments **Readers wanting additional information should refer to the notes to the financial statements and supplementary schedules** 39 UTAH TRANSIT AUTHORITY FINANCIAL SECTION Year Ended December 31, 2022 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Pension and Other Employment Benefit Trust Funds ADDITIONS Employer Contributions 48,473,976$ Participant Voluntary Contributions 530,903 Total Contributions 49,004,879 Net Investment Income (58,169,715) Interest 188,815 Dividends 2,251,300 Total Investment Income (55,729,600) Less: Investment Expense 811,913 Net Investment Income (56,541,513) TOTAL ADDITIONS (7,536,634) DEDUCTIONS Monthly Benefits Paid 34,869,258 Lump Sum Distributions 8,033,740 Administrative Expense 694,889 TOTAL DEDUCTIONS 43,597,887 CHANGE IN NET POSITION (51,134,521) Total Net Position, January 1 321,064,198 Total Net Position, December 31 269,929,677$ Net Decline in Fair Value of Investments **Readers wanting additional information should refer to the notes to the financial statements and supplementary schedules** 40 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 1 – DESCRIPTION OF THE AUTHORITY OPERATIONS AND DEFINITION OF THE ENTITY A. Organization The Utah Transit Authority, the “Authority”, was incorporated on March 3, 1970 under authority of the Utah Public Transit District Act of 1969 for the purpose of providing a public mass transportation system for Utah communities. The Authority’s service area lies in the region commonly referred to as the Wasatch Front. The service area extends from the Wasatch Mountains on the east to the Great Salt Lake on the west, is approximately 100 miles long and 30 miles wide, and consists of an area of approximately 1,400 square miles that covers all or portions of six (6) principal counties (Box Elder, Davis, Salt Lake, Tooele, Utah and Weber). The service area also includes a small portion of Juab County. The Authority’s operations include commuter rail service from Ogden to Provo, light rail service in Salt Lake County, and bus service, paratransit service for the transit disabled, rideshare and vanpool programs system wide. The Authority is governed by a three-member full-time board of trustees. The Governor appoints nominees from the three appointing districts within the UTA service territory to serve as trustees. The names of the nominees are then forwarded to the Senate for confirmation. Once confirmed, an appointee is sworn in as a trustee. The trustees serve for a term of four (4) years. There is no limit to the number of terms a trustee may serve. Utah Transit Authority also has a nine-member local advisory board. The local advisory board representation includes: three members appointed by the Salt Lake County council of governments; one member appointed by the Mayor of Salt Lake City; two members appointed by the Utah County council of governments; one member appointed by the Davis County council of governments; one member appointed by the Weber County council of governments; and one member appointed by the councils of governments of Tooele and Box Elder counties. Terms for local advisory board members are indefinite. B. Reporting Entity The accompanying financial statements include only the accounts and transactions of the Authority. Under the criteria specified in Statements No. 14, No. 39 and No. 84 the Authority has two component units that are fiduciary funds in the financial statements. 1. The Joint Insurance Trust is for current employee benefit premium to be held in trust until premiums are paid for the union employees of the Authority. Financial statements are included in the supplementary schedules. Separate financial statements are not created. 2. The Utah Transit Authority Employee Retirement Plan is a post-employment pension plan for all employees of the Authority. Financial statements are included in the supplementary schedules. Separate financial statements are not created. 41 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 The Authority is considered a component unit of State of Utah. These conclusions regarding the financial reporting entity are based on the concept of financial accountability. The Authority is accountable for a separate employee pension from the Utah State Retirement System and jointly administers a joint insurance trust with the collective bargaining group that represents active union employees. Additionally, the Authority has considered the provisions of GASB No. 39 which follows the concept of economic independence. The Authority does not raise or hold economic resources for the direct benefit of another governmental units. Also, other governments do not have the ability to access economic resources held by the Authority. This is evidenced by the fact that the Authority is a legally and fiscally separate and distinct organization under the provision of the Utah State Code. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Accounting The Authority reports as a single enterprise fund and two additional fiduciary funds for its employee pension and joint insurance trust. These funds uses the accrual method of accounting and the economic resources measurement focus. Under this method, revenues are recognized when they are earned and expenses are recognized when they are incurred. B. Standards for Reporting Purposes The financial statements of the Authority have been prepared in conformity with accounting principles generally accepted in the United States of America as prescribed by GASB. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts or revenues and expenses during the reporting period. Actual results could differ from those estimates. C. Federal Operating Grants Federal planning assistance, operating and preventive maintenance grants are received from the Federal Transit Administration (FTA) and are recognized as revenue and receivable during the period in which the related expenses are incurred and eligibility requirements are met. D. Federal Grants for Capital Expenditures The U.S. Department of Transportation, through contracts between the Authority and the FTA, provides federal funds of 3.6% to 100% of the cost of property, facilities and equipment acquired by the Authority through federal grants. Grant funds for capital expenditures are earned and recorded as capital contribution revenue when the capital expenditures are incurred, and eligibility requirements are met. 42 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 E. Classification of Revenues and Expenses  Operating revenues: Operating revenues include activities that have the characteristics of exchange transactions such as passenger revenues and advertising revenues.  Operating expenses: Operating expenses include payments to suppliers, employees, and third parties on behalf of employees and all payments that do not result from transactions defined as capital and related financing, non-capital financing, or investing activities.  Non-operating revenues: Non-operating revenues include activities that have the characteristics of non-exchange transactions and other revenue sources that are defined as non-operating revenues by GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB Statement No. 34. Examples of non-operating revenues would be the contributions from other governments (sales tax), federal grants and investment income.  Non-operating expenses: Non-operating expenses include payments from transactions defined as capital and related financing, non-capital financing or investing activities. F. Contributions from Other Governments The counties and municipalities who receive transit services from the Authority have agreed to contribute a portion of sales tax to the Authority in exchange for service. These contributions are received by the Authority approximately 60 days after the collection of the sales tax, and as such are recorded as an accrual to revenue and receivable during that period. 43 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 The following percentage of sales have been authorized as Local Option Sales Tax and dedicated to support transit: Salt Lake County 0.7875% Davis County 0.6500% Weber County 0.6500% Box Elder County 0.5500% Utah County 0.6300% Tooele County 0.6500% G. Cash and Investments Cash and investments include cash on hand, demand deposits, and amounts invested in a repurchase agreement, a certificate of deposit and the Utah Public Treasurers’ Investments Fund, including restricted cash equivalents. The Authority considers short-term investments with an original maturity of three (3) months or less to be cash equivalents (Note 3). H. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents are defined as funds restricted by legal requirement(s) outside of the Authority. The Authority is required to place monthly deposits in trust for next year’s principal and interest on the bonds and these funds are restricted per the bond covenants. $ 25,973,657 The Authority has entered interlocal agreements with Box Elder County and Utah County to restrict a certain increment of sales taxes collected in their county for future service expansion and bond repayment-. 11,074,257 The Authority has issued bonds and leases in 2018, 2019, 2020, and 2021 for projects that are not complete to date and has entered into interlocal agreement to establish escrow accounts for specific projects. 68,706,587 The Authority is required to maintain certain accounts in connection with being self- insured in the State of Utah. 8,681,226 44 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 I. Designated Cash and Cash Equivalents Designated cash and cash equivalents are considered designated through action by the Authority’s Board of Trustees and have no outside legal restrictions. Designations include funds to stabilize operations and debt service in the case of changing economic environments. The following amounts were considered designated by the Board of Trustees as of December 31 of the respective years: General reserve $ 72,100,000 Service sustainability reserve 12,017,000 Capital replacement reserve 46,541,454 Debt reduction reserve 30,000,000 Total designated cash and cash equivalents $ 160,658,454  Designated for general reserves – This component of cash including the risk reserve, funded at a level equal to at least twelve percent (12%) of the Authority’s budgeted operating expense, excluding non-operating expense, to be used as a working capital account throughout the year. The Board has chosen to fund this reserve at eighteen percent (18%). The Treasurer will manage the use of the funds in the general operating reserve. (Utah Transit Authority Board Policy No. 2.1 Financial Management)  Designated for service sustainability reserves - This component of cash consists of three percent (3%) of the Authority’s annual operating budget expenses for the purpose of preserving service levels when the Authority is facing a revenue shortfall or cost overrun due to extraordinary circumstances, such as an economic downturn or rapid rise in fuel prices or any combination of such events. The Board of Trustees must give its prior approval before funds in the bond reserve are used. (Utah Transit Authority Board Policy No. 2.1 Financial Management)  Designated for capital replacement reserves – This component of cash consists of one percent (1%) of the property, facilities, and equipment cost as reported in the annual comprehensive financial report to be used for capital repair or replacement costs due to extraordinary circumstances. The Board of Trustees must give its prior approval before funds in the capital replacement reserve are used. (Utah Transit Authority Board Policy No. 2.1 Financial Management)  Designated for debt reduction reserves – This component of cash consists of debt service savings from refunded bond issues. In April 2020, in accordance with the Board’s Policy No. 2.1 – Financial Management, the Board reaffirmed continuing the debt reduction reserve and the primary purpose to be primarily early retirement of outstanding debt. J. Investments Cash in excess of operating requirements is invested by the Treasurer. The Authority’s investments comply with the Utah Money Management Act. 45 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 K. Receivables Receivables consist primarily of amounts due to the Authority from sales tax collections, federal grants, and local government partners, pass sales and investment income. Accounting reviews all receivables that age past 120 days and follows up on contract terms for payment. This minimizes credit risk exists related to these receivables and allows for no current provision for bad debts. The Authority’s lease receivables are measured at the present value of the lease payments expected to be received during the lease term. They are discounted using a 5% interest rate. Deferred inflows of resources are recorded for the leases at the initiation of each lease in an amount equal to the initial recording of the lease receivable adjusted for lease payments received at or before the lease commencement date. The deferred inflows of resources are amortized on a straight-line basis over the individual lease terms. L. Parts and Supplies Inventories Parts and supplies inventories are stated at the lower of cost (using the moving average cost method) or market. Inventories generally consist of fuel, lube oil, antifreeze and repair parts held for consumption. Inventories are expensed as used. M. Capital Assets Capital assets include land and land improvements, right of way, buildings and building improvements, infrastructure, vehicles, equipment, intangibles, as well as any leased capital assets in these categories. Capital assets, other than infrastructure and intangible software, are defined by UTA policy as asset with an initial, individual cost of $5,000 or more. Infrastructure capital assets are defined as assets with an initial, individual cost of $50,000 or more. Intangible software capital assets are defined as assets with an initial, individual software license cost of $10,000 or more, or $100,000 or more per software. Right to Use capital assets are those with and initial lease payable value of at least $10,000. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life, are not capitalized, but are charged to operating expense as incurred. Upon disposal of capital assets, the accounts are relieved of the related costs and accumulated depreciation, and the resulting gains or losses are reflected in the statement of revenues, expenses, and changes in net position. Depreciation of capital assets is recorded using the straight-line method over the estimated useful lives of the assets. The exceptions to this are the intangible right to use leased assets which are amortized over the life of the lease. 46 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Depreciable capital assets are assigned the following estimated useful lives: Years Land improvements 10 to 20 Leasehold improvements 50 Building and building improvements 20 to 50 Infrastructure 5 to 75 Revenue service vehicles 4 to 35 Financed revenue service vehicles 4 to 14 Equipment 4 to 20 Intangible assets Software 5 to 10 Easements 20 to 50 Right to Use Leased Land 2 to 10 Right to Use Leased Buildings 2 to 6 N. Amount Recoverable – Interlocal Agreement In 2008, the Authority entered into an agreement with the Utah Department of Transportation (UDOT) which required the Authority to pay UDOT $15 million in 2008 and $15 million in 2009 for the rights to Salt Lake County’s 2% of the 0.25% part 17 sales tax through the years 2045. The Authority records such payments made to other entities for rights to future revenues as Amount Recoverable – Interlocal Agreement. This amount is amortized over the life of the agreement. O. Other Assets The Authority has entered into development agreements: Thackeray Garn at South Jordan FrontRunner Station In a prior year, $1,500,000 of appraised land was transferred to the development for a percentage interest in future profits at the site. STACK Real Estate at Jordan Valley TRAX Station In January 2022, the Authority took actions with the developer to sell another phase of the development for an additional gain of $20,816,913, bringing the current investment to $5,259,958 in undeveloped land and $23,556,995 of proceeds from completed phases of the development which were reinvested for a percentage interest in future profits at the site. HPUTA East Village 3 LLC at Sandy TRAX Station In a prior year, $1,580,316 of land value was added to the development agreement for a percentage interest in future profits at the site. 47 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 P. Lease Payable The Authority has entered into right to use leases for buildings and land. The Authority recognizes a lease liability and an intangible right-to-use lease asset. The Authority recognizes lease liabilities with an initial, individual value of $10,000 or more. At the commencement of a lease, the Authority initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the Authority determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The Authority uses the interest rate charged by the holder of the current year finance purchase agreement that most closely matches the life of the lease. • The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the Authority is reasonably certain to exercise. The Authority monitors changes in circumstances that would require a remeasurement of its right to use lease assets and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Q. Compensated Absences Vacation pay is accrued biweekly and charged to department’s compensated absence expense as earned by employees. Sick pay benefits are accrued biweekly by employees but are not considered compensable until an employee meets the requirements to vest in the pension. This typically occurs when an employee has 5 years of service and is at least 55 years of age. Compensated absences have a maximum for administration employees of 900 hours of sick, but there is no maximum number of hours for collectively bargained employees. Employees that do not retire at the end of their tenure at the Authority forfeit all sick leave, so compensated absences are reduced yearly to reflect those choices by employees. 48 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 R. Risk Management The Authority is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; environmental matters; worker’s compensation self-insurance; damage to property; and injuries to passengers and other individuals resulting from accidents, errors, and omissions. Under the Governmental Immunity Act, the maximum statutory liability in any one accident is $3 million for incidents occurring after May 1, 2019. The Authority carries an excess umbrella policy of $10 million over a $7 million self-insurance reserve. The Authority has Railroad Liability Coverage of $100 million per annum with $5 million of risk retention. The Authority is self- insured for worker’s compensation up to the amount of $1 million per incident and has excess insurance for claims over this amount. The Authority has insurance for errors and omissions and damage to property in excess of $100,000 per annum.   S. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Utah Transit Authority Employee Retirement Plan and Trust (“the Plan”) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. T. Net Position The Authority’s net position is classified as follows:  Net investment in capital assets: This component of net position consists of the Authority’s total investment in capital assets, net of accumulated depreciation and amortization, reduced by the outstanding debt obligations related to those assets. To the extent debt has been incurred, but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.  Restricted for debt service: This component of net position consists of the amount restricted by bond covenants for debt service.  Restricted for interlocal agreement: This component of net position consists of the amounts restricted by interlocal agreements with Utah County and the municipalities of Willard, Perry and Brigham City in Box Elder County.  Self-insurance deposits: This component of net position consists of the fund amount set aside for the Authority’s self-insured programs.  Unrestricted: This component of net position consists of that portion of net position that does not meet the definition of restricted or net investment in capital assets. When both restricted and unrestricted resources are available for use, it is the Authority’s policy to use restricted resources first, then unrestricted resources as they are needed. 49 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 U. Deferred Outflows of Resources Deferred outflows of resources are reported in a separate section, immediately following assets in the Statement of Net Position. Deferred outflows of resources represent a consumption of resources that benefit future periods and will be recognized in future periods as an expense when they are used. The Authority has the following deferred outflows of resources:  Deferred loss on refunding  Deferred outflows of resources related to pensions V. Deferred Inflows of Resources Deferred inflows of resources are reported in a separate section, immediately following liabilities in the Statement of Net Position. Deferred inflows of resources represent an acquisition of resources that will be used in future periods and will be recognized in future periods as a revenue. The Authority has the following deferred inflows of resources:  Deferred gain on refunding  Deferred inflows for leases  Deferred inflows of resources related to pensions W. Implemented Accounting Pronouncements GASB Statement 99 Omnibus 2022 The requirements in paragraph 26-32 are effective upon issue. No effect on the Authority’s financial statements as a result of adoption. GASB Statement 87 Leases Takes effect for reporting periods beginning after June 15, 2021. This new accounting standard modified the definitions of what is considered a capital lease agreement, introduced “right-to-use”, or leased assets, as a new capital asset category, and requires lessees to record a lease liability and corresponding leased asset at the net present value of the future lease payments over the term of the agreement, including any options for renewal that are reasonably certain will be exercised. Similarly, lessors are required to recognize a lease receivable and deferred inflow of resources for applicable lease agreements. Lease agreements where the title to the underlying asset transfers to the lessee at the end of the contract are now reported as a financed purchase. Implementation of the lessor requirements of this standard resulted in additions of beginning balance of other current assets, long-term lease receivable and related deferred inflows of resources. See note 5. Implementation of the lessee requirement of this standard resulted in additions of beginning balances for right to use Land, right to use Buildings and Accumulated Depreciation/Amortization. See note 4. 50 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 The change in net position due to this statement is an increase of $302,822. Beginning Balance, as previously reported 12/31/22 Restatement due to GASB 87 Implementation Beginning Balance, as restated 01/01/22 Net Position $ 1,026,420,583 302,822 1,026,723,405 GASB Statement 91 Conduit Debt Obligations Takes effect for reporting periods beginning after December 15, 2021. No effect on the Authority’s financial statements. GASB Implementation Guide No. 2019-3 Takes effect for reporting periods beginning after June 15, 2021. No effect on the Authority’s financial statements. GASB Statement 92 Omnibus 2020 Takes effect for reporting periods beginning after June 15, 2021. No effect on the Authority’s financial statements. GASB Statement 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 deferred Compensations Plans Takes effect for reporting periods beginning after June 15, 2021 No effect on the Authority’s financial statements. GASB Implementation Guide No. 2020-1 Takes effect for reporting periods beginning after June 15, 2021. No effect on the Authority’s financial statements. X. Future Accounting Pronouncements GASB Statement 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements Takes effect for reporting periods beginning after June 15, 2022. The Authority has not yet determined the impact of this statement on the financial statements. GASB Statement 96 Subscription-Based Information Technology Arrangements Takes effect for reporting periods beginning after June 15, 2022 The Authority has not yet determined the impact of this statement on the financial statements. 51 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 GASB Statement 99 Omnibus 2022 The requirements in paragraph 11-25 are effective for fiscal years beginning after June 15, 2022. The requirements in paragraph 4-10 are effective for fiscal years beginning after June 15, 2023. The Authority has not yet determined the impact of this statement on the financial statements. GASB Implementation Guide No. 2021-1 Takes effect for reporting periods beginning after June 15, 2022, except question 4.22 for fiscal years beginning after June 15 2021 and Question 5.1 for reporting periods after June 15, 2023. No effect or expected effect on the Authority’s financial statements. GASB Statement 100 Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62 Takes effect for reporting periods beginning after June 15, 2023 The Authority has not yet determined the impact of this statement on the financial statements. GASB Statement 101 Compensated Absences Takes effect for reporting periods beginning after December 15, 2023 The Authority has not yet determined the impact of this statement on the financial statements.    52 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 3 – CASH AND CASH EQUIVALENTS Unrestricted Cash and Investments Consisting of the following as of December 31, 2022 Zions Bank 28,915,775$ Cash on Hand 254,051 Public Treasurers Investment Fund (PTIF) 311,341,455 Total Cash and Cash Equivalents 340,511,281 Chandler Investments 195,865,777 Total Unrestricted Cash and Investments 536,377,058$ Restricted Cash and Investments Consisting of the following as of December 31, 2022 Bond Funds (Zions Bank) 25,973,657$ Escrow Funds Chase Lease 8,068,259$ Bank of America Lease (PTIF)33,782,299 Bond Proceeds (Zions Bank)26,856,029 68,706,587 Interlocal Agreements Box Elder (PTIF)2,923,424$ Utah County (Chandler Investment)8,150,833 11,074,257 Self Insurance Deposits Zions Risk Account (288,858)$ Self Insurance (Chandler Investment)7,885,431 Catastrophic (Chandler Investment)1,084,653 8,681,226 Total Restricted Cash and Investments 114,435,727 Total Unrestricted and Restricted Cash and Investments 650,812,785$ Unrestricted Restricted Total US Government Issues 167,341,880$ 14,178,362$ 181,520,242$ Money Market 14,688,030 1,111,198 15,799,228 Corporate Issues 13,835,867 1,831,357 15,667,224 Total Investments 195,865,777$ 17,120,917$ 212,986,694$ 53 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Cash Deposits All cash not on hand at the Authority is maintained in qualified public depositories. Investments Investments for the Authority are governed by the Utah Money Management Act (Utah Code Annotated, Title 51, Chapter 7, “the Act”) and by rules of the Utah Money Management Council (the Council). Following are discussions of the Authority’s exposure to various risks related to its cash management activities.  Custodial Credit Risk - Custodial credit risk for deposits is the risk that in the event of a bank failure, the Authority’s deposits may not be recovered. The Authority’s policy for managing custodial credit risk is to adhere to the Act. The Act requires all deposits of the Authority to be in a qualified depository, defined as any financial institution whose deposits are insured by an agency of the federal government and which has been certified by the Commissioner of Financial Institutions as meeting the requirements of the Act and adhering to the rules of the Council. At December 31, 2022, the balance in the Authority’s bank demand deposit accounts and certificate of deposit accounts according to the bank statements totaled $37,306,950 of which $250,000 was covered by Federal depository insurance.  Credit Risk - Credit risk is the risk that the counterparty to an investment will not fulfill its obligations. The Authority’s policy for limiting the credit risk of investments is to comply with the Act. The Act requires investment transactions to be conducted only through qualified depositories, certified dealers, or directly with issuers of investment securities. Permitted investments include deposits of qualified depositories; repurchase agreements; commercial paper that is classified as “first-tier” by two nationally recognized statistical rating organizations, one of which must be Moody’s investor Service or Standard & Poor’s; bankers acceptances; obligations of the U.S. treasury and U.S. government sponsored enterprise; bonds and notes of political subdivision of the state of Utah; fixed rate corporate obligations and variable rated securities rated “A” or higher by two nationally recognized statistical rating services as defined in the Act. The Authority is authorized to invest in the Utah Public Treasurers’ Investment Fund (PTIF), an external pooled investment fund managed by the Utah State Treasurer and subject to the Act and Council requirements. The pooled investment fund is fixed-rate corporate obligations and variable rate securities rated “A” or higher, or the equivalent of “A” or higher, by two nationally recognized statistical rating organizations. The PTIF is not registered with the SEC as an investment company and deposits in the PTIF are not insured or otherwise guaranteed by the State of Utah. The PTIF operates and reports to the participants on an amortized cost basis. The income, gains and losses, net of administration fees of the PTIF are allocated based upon the participants’ average daily balances. 54 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022  Concentration of Credit Risk – To minimize credit risk, the Authority looks to diversify the investments with any one issuer. All corporate investments are less than 1% of the total investment and do not represent a concentration of credit risk to the portfolio as of December 31,2022. A concentration of credit risk does exist with the FFCB and FHLB investments, in US Agencies, which represent 10.58% and 10.89% of the total investment, respectively.  Interest Rate Risk - Interest rate risk is the risk that changes in the interest rates will adversely affect the fair value of an investment. The Authority manages its exposure by strictly complying with its Investment Policy which complies with the Act. The Authority’s policy relating to specific investment-related risk is to adhere to the Act. The Act requires that the remaining term to maturity of investments may not exceed the period of availability of the fund to be invested.  The following are the Authority’s investment as of December 31, 2022: Investment Moody/S&P/Fitch Credit Quality (Rating) Amount Credit Exposure as a % of Total Investment Corporate Bonds American Honda Finance Corp Maturity A3/A-/A 1,760,071$ 0.83% Apple Inc Maturity Aaa / A+ / NR 669,600 0.31% Bank of America Corp Maturity A2/A-/AA-2,174,260 1.02% Bank of New York Mellon Corp A1/A-/AA-118,169 0.06% Canadian Imperial Bank A2/A-/AA-1,351,512 0.63% Caterpillar Financial Svcs Mtns Maturity A2/BBB+/A 2,158,065 1.01% Citigroup Inc Maturity A3 / BBB+ / A 699,447 0.33% Goldman Sachs Group Inc Maturity A2/BBB+/A 1,400,700 0.66% Jackson National Life Global Maturity A2/A/NR 750,023 0.35% John Deere Capital Corp Maturity A2/BBB+/A 1,662,246 0.78% Met Tower Global Funding Maturity Aa3/AA-/AA-500,010 0.23% Morgan Stanley A1/A-/A+114,764 0.05% National Rural Utilities Callable Note A1/A/AA-241,668 0.11% Pfizer Inc A1-/A+/A 167,829 0.08% Reality Income Corp A3/A-/NR 119,196 0.06% Toyota Motor Credit Corp A1/A+/A+133,448 0.06% Truist Bank Maturity A2/A-/AA-1,646,216 0.77% US Agencies F H L M C M T N Maturity > 1YR Aaa/AA+/AAA 1,313,451 0.62% F N M A Maturity > 1YR Aaa/AA+/AAA 2,849,970 1.34% Federal Farm Credit Banks Maturity Aaa/AA+/AAA 22,534,161 10.58% Federal Home Loan Banks Maturity Aaa/AA+/AAA 23,203,806 10.89% US Treasury Note Maturity < 1YR 16,828,757 7.90% US Treasury Note Maturity > 1YR 114,790,097 53.90% Total Corporate Bonds/US Agencies Investments 197,187,466$ 92.58% 55 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Investments Less than 1 year 1-5 years 6-10 years Total U.S. Agencies/Taxable US Govt Bonds 25,127,557$ 154,117,919$ 2,274,766$ 181,520,242$ Corporate Bonds 15,667,224 - - 15,667,224 Money Market 15,799,228 - - 15,799,228 56,594,009$ 154,117,919$ 2,274,766$ 212,986,694$  Fair Value of Investments – The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under GASB Statement 72 are described as follows: Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. Examples of markets in which inputs might be observable include exchange markets, dealer markets, brokered markets and principal-to-principal markets. Level 2: Inputs include:  Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in markets that are not active;  Inputs other than quoted prices that are observable for the asset or liability such as: o Interest rates and yield curves observable at commonly quoted intervals o Implied volatilities o Credit spreads  Market-corroborated inputs. If the asset or liability has a specified (contractual) term, the Level 2 input is required to be observable for substantially the full term of the asset or liability. Level 3: A government should develop Level 3 inputs using the best information available under the circumstances, which might include the government’s own data. In developing unobservable inputs, a government may begin with its own data, but it should adjust those data if (a) reasonably available information indicates that other market participants would use different data or (b) there is something particular to the government that is not available to other market participants. The Authority invests with Chandler Investments, this organization meets the requirements of the Utah Money Management Act. The following are the Authority’s investments as of December 31, 2022 by fair value measurement: 56 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 12/31/2022 Level 1 Level 2 Level 3 Chandler Investments U.S. Government Issues 181,520,242$ -$ 181,520,242$ -$ Corporate Bonds 15,667,224 - 15,667,224 - Money Market 15,799,228 15,799,228 - - Total Investments by Fair Value Level 212,986,694$ 15,799,228$ 197,187,466$ -$ Fair Value Measurements 57 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 4 – CAPITAL ASSETS Balance 1/1/2022 Balance as restated Increases Transfers Decreases 12/31/2022 Capital assets not being depreciated/amortized Land 411,342,949$ 6,410,477$ -$ (1,448,906)$ 416,304,520$ Construction in Progress 203,927,118 147,509,708 - (109,161,323) 242,275,503 Total capital assets not being depreciated/amortized 615,270,067 153,920,185 - (110,610,229) 658,580,023 Capital assets being depreciated/amortized Land Improvements 178,487,488 15,444,902 8,440,484 - 202,372,874 Leasehold Improvements 94,958,804 - (685,328) (10,270) 94,263,206 Buildings and Building Improvements 203,911,043 11,087,417 (17,103,301) (10,348) 197,884,811 Infrastructure 2,508,863,889 37,772,992 - (16,726,847) 2,529,910,034 Revenue Vehicles 748,886,006 10,288,168 3,001,917 (44,069,585) 718,106,506 Financed Revenue Vehicles 87,967,286 27,442,044 (3,312,567) (2,664,998) 109,431,765 Equipment 66,816,219 4,808,827 5,958,445 (1,866,780) 75,716,711 Intangibles Software 41,873,848 3,291,833 685,327 - 45,851,008 Easements 10,801,351 - - - 10,801,351 Other Intangibles 3,736,782 4,570,000 3,015,023 (1,436,215) 9,885,590 Right to Use Leased Buildings* 473,030 - - - 473,030 Right to Use Leased Land* 868,481 - - - 868,481 Total capital assets being depreciated/amortized 3,947,644,227 114,706,183 - (66,785,043) 3,995,565,367 Less: Accumulated depreciation/amortization Land Improvements (97,929,098) (14,524,097) 42,198 - (112,410,997) Leasehold Improvements (7,479,207) (2,195,067) - - (9,674,274) Buildings and Building Improvements (95,372,007) (383,535) 3,461,201 - (92,294,341) Infrastructure (934,473,273) (76,847,703) - 15,732,538 (995,588,438) Revenue Vehicles (434,407,134) (25,942,596) (2,511,855) 33,147,125 (429,714,460) Financed Revenue Vehicles (22,919,861) (9,749,794) 2,802,758 101,423 (29,765,474) Equipment (57,519,921) (3,987,549) (2,200,907) 732,581 (62,975,796) Intangibles Software (19,217,183) (7,561,219) - - (26,778,402) Easements (861,903) - - - (861,903) Other Intangibles (3,435,028) (475,136) (1,593,395) 1,436,215 (4,067,344) Right to Use Leased Buildings*- (102,385) - - (102,385) Right to Use Leased Land*- (290,285) - - (290,285) Total accumulated depreciation/amortization (1,673,614,615) (142,059,366) - 51,149,882 (1,764,524,099) Capital assets being depreciated/amortized, net 2,274,029,612 (27,353,183) - (15,635,161) 2,231,041,268 Total capital assets, net 2,889,299,679$ 126,567,002$ -$ (126,245,390)$ 2,889,621,291$   *Balances as of January 1, 2022 were restated upon implementation of GASB 87. 58 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Depreciation/Amortization expense by mode that mirrors the Statement of Revenues, Expenses, and Changes in Net Position. An impairment analysis was performed at the end of 2022 to identify any assets no longer being used for their intended purpose, removed from service due to emission issues, or transit route changes. The impairment expense is shown below: During 2022, UTA evaluated its leases and capital assets related to GASB Statement 87. As a result, this evaluation has led to a change in some of the asset categories and intangible assets for right to use leased buildings and land of $473,030 and $868,481, respectively, were recorded for assets identified as right to use lease assets in accordance with GASB 87.  NOTE 5 – LEASE ACTIVITIES A.Lessee Activities The Authority has entered into several lease agreements with third parties for the right to use buildings and land. A lease liability is recorded at the inception of the lease. The following is a summary of the Authority’s lease activity during the year ended 2022: Balance as of 01/01/2022 as restated Additions Deletions Balance as of 12/31/2022 Due in less than a year Buildings 386,240$ -$ (77,194)$ 309,046$ 80,122$ Land 521,147 - (187,801) 333,346 173,825 Total Lease Payable 907,387$ -$ (264,995)$ 642,392$ 253,947$ Depreciation/Amortization Expense by mode Bus service 21,019,639$ Rail service 111,483,233$ Demand response service 5,123,427$ Other service 4,433,067$ 142,059,366$ Vehicles with Emission Issues 3,397,822$ Building Not in Use 373,918 Infrastruction Not In Use 2,21 8,772 Bus S helters Not In Use 367,51 8 Total 6,358,030$ Impairment Expense 59 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 The future principal and interest payments related to these leases are as follows: Interest Principal Total Buildings 2023 3,098$ 80,122$ 83,220$ 2024 2,236 62,140 64,376 2025 1,4 6 0 64,386 65,846 2026 730 53,380 54,110 2027 115 41,519 41,634 2028 0 7,499 7,499 Total for Buildings 7,639$ 309,046$ 316,685$ Land 2023 2,780$ 173,825$ 176,605$ 2024 1,2 6 0 79,452 80,712 2025 928 20,247 21,175 2026 699 20,571 21,270 2027 470 17,900 18,370 2028-2032 1,14 0 17,338 18,478 2033 19 4,013 4,032 Total for Land 7,296$ 333,346$ 340,642$ Total liability 14,935$ 642,392$ 657,327$ B. Lessor Activities The Utah Transit Authority, the “Authority”, has entered into several lease agreements for third parties to use Authority land and buildings. A lease receivable and a deferred inflow of resources is recognized at the commencement of the lease. Balance as of 01/01/2022 as restated Additions Reductions Balance as of 12 / 3 1/ 2 0 2 2 Due in less than one year Buildings 16 7,10 7$ -$ (108,398)$ 58,709$ 35,886$ Land 2,805,026 97,413 (364,762) 2,537,677 188,253 Total Lease Receivable 2,972,133$ 97,413$ (473,160)$ 2,596,386$ 224,139$ 60 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 The future principal and interest proceeds related to leases are as follows: Interest Principal Total Buildings 2023 1,4 12$ 35,886$ 37,298$ 2024 801 7,232 8,033 2025 410 7,600 8,010 2026 1 7,991 7,992 Total for Buildings 2,624$ 58,709$ 61,333$ Land 2023 12 0 ,8 4 7$ 188,253$ 309,100$ 2024 114 ,10 7 162,219 276,326 2025 10 8 ,2 9 1 95,121 203,412 2026 10 4 ,2 2 0 79,478 183,698 2027 10 2 ,2 3 8 19,969 122,207 2028-2032 508,473 15,331 523,804 2033-2037 504,480 12,435 516,915 2038-2042 501,702 12,282 513,983 2043-2047 498,231 15,748 513,979 2048-2052 494,053 19,920 513,973 2053-2057 488,242 24,508 512,750 2058-2062 481,309 31,441 512,750 2063-2067 472,411 40,339 512,750 2068-2072 461,246 51,504 512,750 2073-2077 446,338 66,412 512,750 2078-2082 427,524 85,226 512,750 2083-2087 403,376 109,374 512,750 2088-2092 372,582 140,168 512,750 2093-2097 332,590 180,160 512,750 2098-2102 281,350 231,400 512,750 2103-2107 215,931 296,819 512,750 2108-2112 13 1,8 4 2 380,908 512,750 2 113 - 2 116 28,988 278,662 307,650 Total Land 7,600,371$ 2,537,677$ 10,138,047$ 61 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 6 – FEDERAL FINANCIAL ASSISTANCE The Authority receives a portion of its funding from the through the U.S. Department of Transportation’s Federal Transit Administration (FTA) in the form of federal preventative maintenance, federal operating assistance, and federal capital assistance grants. The majority of these grants require the Authority to participate in the funding of the service and/or capital project. The FTA retains ownership in assets purchased with federal funds. Operating Assistance Federal Preventive Maintenance Grants $ 47,248,035 Federal Operating Assistance – ARPA Grant 167,791,391 Federal Operating Assistance – CRRSAA Grant 24,539 215,063,965 Capital Projects Federal Capital Projects 50,582,042 Total Federal Assistance $ 265,646,007 NOTE 7 – SELF-INSURANCE CLAIMS LIABILITY Changes in the accrued claims liability in 2022, 2021 and 2020 were as follows: Beginning liability Claims incurred and changes in estimates Claim payments Ending liability 2022 $ 1,061,173 $ 3,590,181 $ (3,084,087) $ 1,567,267 2021 1,017,333 4,032,321 (3,988,481) 1,061,173 2020 862,650 2,481,986 (2,327,303) 1,017,333 There were no significant reductions in coverage from prior years. As show in the table above there were no instances in the past 3 years where settlements exceeded insurance coverage. Please refer to Note 2, Section Q for liability limits. The Authority’s Self-Insurance and Worker’s Compensation plans are fully funded. Losses are charged to operations as incurred. The liability for unpaid losses for self-insurance is determined using case-basis evaluations. Claims liabilities include allocated loss adjustment expenses and are reported net of estimated claims. Due to limited historical experience of the Utah Transit Authority’s Self-Insurance and Worker’s Compensation, there exists a significant range of variability around the best estimate of the ultimate cost of setting all unpaid claims. Accordingly, the amount of the liability for unpaid losses and related liabilities and the related provisions included in financial statements may be more or less than the actual cost of settling all unpaid claims. Adjustments to claim liabilities are made annually, based on subsequent developments and experience, and are included in operations as made. 62 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 8 – PENSION PLANS A. General Information Defined Compensation Plan The 457 Deferred Compensation Plan is offered by the Authority to its employees. The plan was created in accordance with Internal Revenue Code Section 457. The plan is available to all employees on a voluntary basis and permits them to defer a portion of their salaries until future years. The Authority will match $2 for every $3 the employee contributes up to 2% of the employee’s annual salary. In 2022 the Authority contributed $2,377,240. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. As part of its fiduciary role, the Authority has an obligation of due care in selecting the third party administrators. In the opinion of management, the Authority has acted in a prudent manner and is not liable for losses that may arise from the administration of the plan. The Authority also has the right to change the amount of the employer match. The deferred compensation assets are held by third party plan administrators and are generally invested in money market funds, stock or bond mutual funds or guarantee funds as selected by the employee. Defined Contribution Plan The 401a Defined Contribution Plan is offered by the Authority to provide reasonable retirement security for select employees. The plan was created in accordance with Internal Revenue Code Section 401(a). The plan is available to the Board of Directors, the Executive Director, and the Chief Officer positions as an alternative to the Authority’s current pension plan. The Authority will contribute 15.5% of the annual salary of each Trustee who has elected this option. In 2022 the Authority contributed $102,301. The Defined Contribution plan is not available to employees until termination, retirement, death, or unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. As part of its fiduciary role, the Authority has an obligation of due care in selecting the third party administrators. In the opinion of management, the Authority has acted in a prudent manner and is not liable for losses that may arise from the administration of the plan. The Authority also has the right to change the amount of the employer match. The Defined Contribution Plan’s assets are held by third party plan administrators and are generally invested in money market funds, stock or bond mutual funds or guarantee funds as selected by the employee. Retiree Medical Account A Retiree Medical Account (RMA) is offered by the Authority to its employees. The plan was created in accordance with Internal Revenue Code Section 401(h). The plan is available to all collective bargaining employees at the start of employment and permits the Authority to contribute 1.33 hours of personal time per pay period to a defer tax account until retirement years. The Authority also allows the remaining employees at the end of their employment to create an account to defer taxes on their final pay out of unused sick leave upon retirement into a retiree medical account. In 2022 the Authority contributed $657,688. The deferred medical funds are not available to employees until termination, retirement, or death and can only be used for medical expenses with tax penalty. 63 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. As part of its fiduciary role, the Authority has an obligation of due care in selecting the third party administrators. In the opinion of management, the Authority has acted in a prudent manner and is not liable for losses that may arise from the administration of the plan. The Authority also has the right to change the amount contributed in the collective bargaining agreement (CBA). The funds are held by third party plan administrators and are generally invested in money market funds, stock or bond mutual funds or guarantee funds as selected by the employee. Defined Benefit Plan The Utah Transit Authority Employee Retirement Plan is a single employer non-contributory defined benefit pension plan which includes all employees of the Authority who are eligible and who have completed six months of service. The Plan is a qualified government plan and is not subject to all of the provisions of ERISA. As a defined benefit pension plan, the Authority contributes such amounts as are necessary, on an actuarially determined basis, to provide assets sufficient to meet the benefits to be paid. Required employee contributions were discontinued effective June 1, 1992. Participants may make voluntary contributions as described below. Interest on existing account balances is credited at 5% per year. Although the Authority has not expressed any intention to do so, the Authority has the right under the Plan to discontinue its contributions at any time and to terminate the Plan. In the event the Plan terminates, the trustee will liquidate all assets of the Plan and will determine the value of the trust fund as of the next business day following the date of such termination. The trustee will allocate assets of the Plan among the participants and beneficiaries as required by law. As of February 2016, U.S. Bank began serving as the administrator and custodian of the Plan, with Cambridge Associates, LLC (CA) serving as a third-party investment manager. B. Reporting The Plan is administered by the Pension Committee that consists of nine (9) members, seven (7) appointed by the Authority and two (2) appointed by the Amalgamated Transit Union Local 382 in accordance with a collective bargaining agreement. The members of the Pension Committee may (but need not) be participants in the Plan. In the absence of a Pension Committee, the Plan Administrator assumes the powers, duties and responsibilities of the Pension Committee with respect to the administration of the Plan. C. Membership The Plan’s membership consisted of the following: Active Participants January 1, 2022 Fully Vested 1,623 Partially Vested - Not Vested 848 Inactive Participants Not Receiving Benefits 479 Retirees and Beneficiaries Receiving Benefits 776 Total 3,726 64 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 D. Benefit Terms Retirement Benefits Employees with five or more years of service are entitled to annual pension benefits beginning at normal retirement age 65, or any age with 37.5 years of service in the Plan. For administration participants who began participating in the Plan prior to January 1, 1994, the annual benefit is based on a retirement benefit formula equal to:  2.3% of average compensation multiplied by the participant’s years of service (not exceeding 20 years), plus  1.5% of the average compensation multiplied by the participant’s years of service in excess of 20 years (but such excess not to exceed 9 years of service), plus  0.5% for one year plus 2.0% for years in excess of 30 years not to exceed 75% of average compensation. For all other active participants, the annual benefit is based on a retirement benefit formula equal to:  2.0% of average compensation multiplied by the participant’s years of service (not to exceed 37.5 years or 75% of average compensation). Upon termination of employment, members may leave their retirement account intact for future benefits based on vesting qualification or withdraw the accumulated funds in their individual member account and forfeit service credits and rights to future benefits upon which the contributions were based. If employees terminate employment before rendering three years of service, they forfeit the right to receive their non-vested accrued plan benefits. Early Retirement Benefits The Plan allows for early retirement benefits if the participant has not reached the age of 65 but is at least age 55 with a vested benefit. Benefits under early retirement are equal to the value of the accrued pension, if the participant had retired at the age of 65, reduced 5% per year if the payments begin before age 65. Disability Benefits The Plan allows for disability benefits. A member who becomes permanently disabled after 5 years of service will immediately receive the greater of the actuarially-reduced monthly accrued benefit or $90 per month, reduced by any Authority sponsored disability plans. Payment of the disability benefit ends at age 65. Death Benefits If a participant’s death occurs before age 55, but after 5 years of service, the present value of the participant’s accrued vested benefit is payable to the participant’s beneficiary in the form of a single lump sum regardless of the amount. 65 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 If a participant’s death occurs after age 55 and 5 years of service, the participant’s beneficiary can elect to receive a benefit equal to the greater of: 1) A survivor’s pension as if the participant had retired on the date before the death with a 100% joint and survivor annuity in effect, or 2) The present value of the survivor’s pension, or 3) If a spouse of 2 or more years or a minor child, the participant’s contribution with interest, plus 50% of the average compensation, payable in the form of a lump sum, or 4) A 10-year term certain. A participant may elect a joint and survivor annuity with 100%, 75% or 50% to be continued to the beneficiary upon the death of the participant. Lump Sum Distributions Payment in a lump sum, regardless of amount, may be made with the participant’s written consent. Effective September 1, 2012, a participant who has not previously received benefits may elect a partial lump sum payment with the remaining part to be paid in the same manner as the traditional annuity. During 2022, 45 participants elected to receive their benefit in the form of lump sum distribution. Lump sum distributions collectively totaled $8,033,740. Individuals are removed from the Plan’s membership if they choose to take all of their benefit as a lump sum distribution. E. Contributions Employer Contribution Requirements Contributions are received from the Authority in the amount determined by the Pension Committee and approved by the Board of Trustees based on funding levels recommended by the Plan’s actuary. The contribution rate for 2022 was 16.3% of employee salaries. Participant Voluntary Contributions A participant who is vested in the Plan may make voluntary contributions into the Plan, and transfer funds from the Employee 457 Deferred Compensation Plan, for the purpose of purchasing “permissive service credit” (as defined in Internal Revenue Code Section 415(N)(3)(A)), in the Plan. No more than 5 years of “permissive service credit” may be purchased. Any purchase of “permissive service credit” must be made in the final year of employment with the Authority. F. Method of Accounting The Plan prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America, under which benefits and expenses are recognized when due and payable and revenues are recorded in the accounting period in which they are earned and become measurable in accordance with the terms of the Plan. Accordingly, the valuation of investments is shown at fair value and both realized and unrealized gains (losses) are included in net appreciation and depreciation in fair value of investments. The plan reports in accordance with the requirements of GASB 67. 66 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 G. Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Net pension liability At December 31, 2022, the Authority reported a net pension liability of $166,224,640. The net pension liability was measured as of December 31, 2022 and was determined by an actuarial valuation as of January 1, 2022 and rolled-forward using updated procedures. Date Total Pension Liability Plan Fiduciary Net Position Employers Net Pension Liability/(Asset) Plan Fiduciary Net Position as a Percentage of the Total Plan Liability Projected Covered Payroll Net Position Liability as a Percentage Of Covered Payroll 12/31/2022 $ 428,657,305 $ 262,432,665 $ 166,224,640 61.22% $ 160,831,897 103.35% Deferred outflows of resources and deferred inflows of resources At December 31, 2022, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Inflows Deferred Outflows of Resources of Resources Differences between expected and actual experience $ (522,594) $ 11,884,308 Change of Assumptions - 11,651,814 Net difference between projected and actual earnings - 44,438,562 Total $ (522,594) $ 67,974,684 67 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Pension expense For the year ended December 31, 2022, the Authority recognized pension expense of $36,908,379. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year ending December 31, Amount 2023 $ 11,913,246 2024 15,879,307 2025 18,573,236 2026 19,041,501 2027 1,765,689 Thereafter 279,111 Total $ 67,452,090 Actuarial methods and assumptions The total pension liability in the January 1, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.50% Salary Increases 7.00% per annum for the first five (5) years of employment; 4.00% per annum thereafter Investment rate of return 6.75%, net of investment expenses Mortality RP-2014 Blue Collar Mortality Table, with MP-2014 Project Scale (Pre- retirement; Employee Table; Post-retirement Annuitant Table) Bond Buyer General Obligation 20- Bond Municipal Bond Index 3.72% The actuarial assumptions used in the January 1, 2022 valuation were based on the results of an actuarial experience study for the five year period ending December 31, 2008. Actuarial valuation of the Plan involves estimates of the reported amounts and assumptions about the probability of occurrence of events into the future. Examples include assumptions about future mortality and future salary increases. Amounts determined regarding the net pension liability are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The last experience study was performed for the five consecutive calendar years ending December 31, 2008.  Actuarial Cost Method – Entry Age Normal  Employer Annual Payroll Growth Including Inflation – 4.00%  Retirement Age – Table of rates by age and eligibility  Cost of Living Adjustments – None  Percent of Future Retirements Electing Lump Sum – 20% 68 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Discount rate The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed contribution rates as recommended by the Authority’s Pension Committee and approved by the Board of Trustees. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive participants. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. In accordance with GASB 67 regarding the disclosure of the sensitivity of the net pension liability to changes in the discount rate, the table below presents the net pension liability using the discount rate of 6.75%, as well as what the net pension liability would be if it were calculated using a discount rate 1.00% lower (5.75%) or 1.00% higher (7.75%) than the current rate. The following sensitivity analysis assumes rate volatility of plus and minus one percent of the discount rate of 6.75%. 1% Decrease 5.75% Current Discount Rate 6.75% 1% Increase 7.75% Net pension liability $ 228,033,133 $ 166,224,640 $ 115,355,462 Schedule of changes in total pension liability, plan fiduciary net position, and net pension liability 69 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 The following table shows the change to the total pension liability, the plan fiduciary net position, and the net pension liability during the year. H. Investments All Plan investments are stated at fair value. Most types of marketable or actively traded investments are priced by nationally known vendors. In the event that an investment is not priced by the primary vendor, the Custodian (US Bank) engages a secondary vendor or other source. See Note 4- Investments, Fair Value Measurements. Purchases and sales are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Investment Policy The Pension Committee has adopted an Investment Policy Statement (IPS). The IPS is reviewed by the Pension Committee once a year, and was amended effective October 2022 to revise the asset classes. A normal weighting is now indicated for each asset class. The IPS was also amended to provide a list of prohibited investments. Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability [a] [b] [a]-[b] Balances as of January 1, 2021 $ 405,251,222 $ 314,608,736 $ 90,642,486 Charges for the year Service cost 12,293,940 - 12,293,940 Interest on total pension liability 27,443,651 - 27,443,651 Differences between expected and actual experience (621,195) - (621,195) Changes of assumptions 6,482,520 - 6,482,520 Employer contributions - 27,132,518 (27,132,518) Member voluntary contributions 116,525 116,525 - Net investment income - (56,561,527) 56,561,527 Benefit payments (22,309,358) (22,309,358) - Administrative expenses - (554,229) 554,229 Balance as of December 31, 2022 $ 428,657,305 $ 262,432,665 $ 166,224,640 70 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 In setting the long-term asset policy for the Plan, the Committee has opted to provide a minimum and maximum allowable allocation to the major asset classes. The aggregate exposure to each of the asset classes is to remain within the following ranges: Policy Allocation Target Allocation Target Range Global Equity 56% 36% - 76% Private Equity 10% 0% - 20% Real Assets 7% 3% - 11% Fixed Income 25% 15% - 35% Cash & Equivalents 2% 0% - 5% Rate of Return The long-term rate of return is selected by the Plan’s Pension Committee after a review of the expected inflation and long-term real returns, reflecting expected volatility and correlation. The assumption currently selected is 6.75% per annum, net of investment expenses. Target Allocations The long-term rate of return is selected by the Plan’s Pension Committee after a review of expected inflation and long-term real returns, reflecting expected volatility and correlation. Best estimates of the compound nominal rates of return for each major asset class included in the Plan’s target asset allocations as of December 31, 2022, is summarized in the table below. Asset Class Target Asset Allocation Long Term Expected Return Global Equities 63% 7.2% Fixed Income 22% 4.9% Liquid Diversifiers 10% 0% Real Assets 4% 5.3% Cash & Equivalents 1% 4.4% Total 100% 6.8% The 6.75% assumed investment rate of return is comprised of an inflation rate of 2.40% and a real return of 4.35% net of investment expense. I. Payment of Benefits Benefit payments to participants are recorded upon distribution. J. Administrative Expenses Expenses for the administration of the Plan are budgeted and approved by the Pension Committee. Administrative expenses are paid from investment earnings. Plan expenses are paid from Plan assets. For the year ended December 31, 2022 the Plan paid $554,229 of administrative expenses. 71 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 K. Tax Status The Plan operates under an exemption from federal income taxes pursuant to Section 501(a) of the Internal Revenue Code as a defined benefit plan. L. Mutual Fund Asset Coverage The Securities and Exchange Commission requires mutual fund companies to obtain fidelity bond coverage for the assets under their control. The bond coverage varies in amounts depending on the mutual fund. M. Cash Deposits Custodial credit risk for cash deposits is the risk in the event of a bank failure, the Plan’s cash deposits may not be returned. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor per institution. Cash deposits and account balances in excess of $250,000 are uninsured and uncollateralized. The Plan considers short-term investments with an original maturity of 3 months or less to be cash equivalents. Cash held in banking institution(s) $ 390,674 N. Risks and Uncertainties The Plan utilizes various investments which, in general are exposed to various risks such as interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the financial statements. O. Credit Risk Credit risk for investments is in the risk that the counterparty to an investment will not fulfill its obligations. The Plan’s rated investments are show below. Fixed Income: 2022 $ 66,188,689 AA/Aa Rated P. Investment Interest Rate Risk Investment interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The table below shows the maturities of the Plan’s investments. Fixed Inc funds: 2022 $ 66,188,689 Average effective duration: 5.3 years Average effective maturity: 7.5 years 72 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Q. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The following amounts represent 5% or more of the Plan’s fiduciary net position and investments as of December 31, 2022 invested with any one organization. Equity funds: Two Sigma Active US All Cap & $ 27,490,084 Investments Fixed income: IR+M Core Bond Fund II $ 25,217,357 iShares 7-10 Year Treasury Bond EFT $ 21,583,831 Investment Assets at Fair Value as of December 31, 2022 Level 1 Money Market Funds $ 10,122,630 Global Equity 66,636,883 Fixed Income 31,200,811 Total investments at Fair Value $ 107,960,324 R. Net Asset Value per Share The following tables provide additional disclosures concerning the investments measured at fair value based on NAV as of December 31, 2022. 2022 Redemption Unfunded Redemption Notice Fair Value Commitment Frequency Period Global Equities $ 102,499,522 $ - Daily Daily Real Assets 14,928,117 - Daily Daily Fixed Income 34,987,878 - Daily Daily Total $ 152,415,517 $ - 73 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Global Equity – intended to provide capital appreciation, current income, and growth of income mostly through the ownership of public equities representing an ownership interest in a company. The objective for investment managers in this category is to exceed the results represented by the annualized return of the MSCI All Country World Index, net over annualized rolling three to five-year time periods. Liquid Diversifiers – intend to provide the Fund with less directional equity exposure and less correlated returns to traditional asset class (i.e. equities and fixed income). These strategies may utilize multiple asset classes spanning across the capital structure of equity and det securities and they may also employ leverage, commodities, and derivatives. These investments will be made in managers with more liquid investment profiles through mutual funds or commingled vehicles. Real Assets – intended to provide real return through investments which has inflation sensitive characteristics. Investments could include REITs, natural resource equities, MLPs, inflation linked bonds and commodities. Fixed Income – intended to provide diversification and protection against downward moves in the equity market and serves as a deflation hedge and a predictable source of income. Weighted average duration of the allocation will be within 1 year of the Barclays Capital Aggregate Bond Index, as measured on a quarterly basis. S. Employer Contribution Requirements The Authority’s contribution rate consists of (1) an amount for normal cost, the estimated amount necessary to finance benefits earned by participants during the current year, and (2) an amount for amortization of the unfunded or excess funded actuarial accrued liability over the service life of the vested participants in preparation for the Authority’s adoption of GASB 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27. The rates are determined using the entry age actuarial cost method. 74 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 SCHEDULE OF FIDUCIARY NET POSITION UTA Employee Retirement and Trust ASSETS Cash in Bank $ 390,674 Investments Global Equities 169,136,405 Fixed Income 66,188,689 Real Assets 14,928,117 Money Market 10,122,630 Total Investments 260,375,841 Prepaid Benefits 1,288,520 Receivables Dividends Receivable 27,927 Accounts Receivable - Benefits 2,476 Accounts Receivable - Contributions 534,409 Total Receivables 564,812 TOTAL ASSETS 262,619,847 LIABILITIES Benefits Payable 22,190 Accounts Payable 164,992 TOTAL LIABILITIES 187,182 NET POSITION Restricted for Pension $ 262,432,665 75 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION UTA Employee Retirement Trust ADDITIONS Employer Contributions $ 27,132,518 Participant Voluntary Contributions 116,525 Total Contributions 27,249,043 Net Investment Income Net Decline in Fair Value of Investments (58,161,231) Interest 160,317 Dividends 2,251,300 Total Investment Income (55,749,614) Less: Investment Expense 811,913 Net Investment Income (56,561,527) TOTAL ADDITIONS (29,312,484) DEDUCTIONS Monthly Benefits Paid 14,275,618 Lump Sum Distributions 8,033,740 Administrative Expense 554,229 TOTAL DEDUCTIONS 22,863,587 CHANGE IN NET POSITION (52,176,071) Total Net Position (Restricted), January 1 314,608,736 Total Net Position (Restricted), December 31 $ 262,432,665 76 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 9 – JOINT INSURANCE TRUST A. General Information The Union and the Authority have agreed on February 1, 1989 that specific amounts of money paid for insurance benefit purposes for the union members be controlled by a trust. The trust should also control any additional amounts paid by the union member shall be deposited in same agreed upon trust account. B. Reporting Entity The trust is administered by the Joint Insurance Committee that consists of seven (7) members, one (1) neutral member agreed upon by the Union and the Authority, three (3) appointed by the Amalgamated Transit Union Local 382 in accordance with a collective bargaining agreement and three members of staff appointed by the Authority. The members of the Joint Insurance Committee may (but need not) be participants in the trust. C. Membership The Plan’s membership consisted of: December 31, 2022 Active participants 1,358 Inactive participants not receiving benefits 192 Total 1,550 D. Benefit Terms Insurance Benefits The Amalgamated Transit Union (ATU) and the Authority have established, through various collectively bargaining agreements, provisions for payment of medical, dental, vision, life, accident, and short-term disability insurances. E. Contributions Employer Contribution Requirements Contributions from the Authority are determined by based on the current collective bargaining agreement. Participant Matching Contributions A participant is an employee of the Authority who is eligible for insurance benefits under the collective bargaining agreement or is eligible for Consolidated Omnibus Budget Reconciliation Act (COBRA). Certain insurance plans in the trust require participants to pay a portion of the premiums or all of the premium to participate. 77 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 F. Method of Accounting The Plan prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America, under which benefits and expenses are recognized when due and payable and revenues are recorded in the accounting period in which they are earned. Accordingly, the valuation of investments is shown at fair value and both realized and unrealized gains (losses) are included in net appreciation and depreciation in fair value of investments. SCHEDULE OF FIDUCIARY NET POSITION Joint Insurance Trust ASSETS Cash in Bank $ 9,457,799 Cash in Utah State Treasury 488,591 Total Cash 9,946,390 Investments – Money Market 1,788,754 Deposits 104,795 Receivables - Contributions 26,695 TOTAL ASSETS 11,866,634 LIABILITIES Accounts Payable 4,369,622 TOTAL LIABILITIES 4,369,622 NET POSITION Restricted for Benefits Other than Pension $ 7,497,012 78 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION Joint Insurance Trust ADDITIONS Employer Contributions $ 21,341,458 Participant Voluntary Contributions 414,378 Total Contributions 21,755,836 Net Investment Income Net Decline in Fair Value of Investments (8,484) Interest 28,498 Total Investment Income 20,014 TOTAL ADDITIONS 21,775,850 DEDUCTIONS Monthly Benefits Paid 20,593,640 Administrative Expense 140,660 TOTAL DEDUCTIONS 20,734,300 CHANGE IN NET POSITION $ 1,041,550 Total Net Position (Restricted), January 1 $ 6,455,462 Total Net Position (Restricted), December 31 $ 7,497,012 79 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 10 – LIABILITIES The Authority issues revenue, capital interest, and capital appreciation bonds along with financing leases in order to provide funding for long-term capital improvements and acquisitions of capital assets. In some instances the full faith and credit of the Authority are pledged to secure the debt, while some are limited to pledge revenues stated in the bond. Leasehold interests in the vehicle being financed act as security for financing lease agreements. Related to bonds, the Authority’s interest payments are typically semiannual on June 15th and December 15th. Interest expense is accrued for the 16 remaining days of December as part of accrued interest. In 2019, Utah County and the Authority agreed a new 4th quarter cent sales tax in Utah County for transit would be exclusively used to repay any obligation be accrued by the Authority related to the Utah Valley Express bus route. In addition, the Authority has long term obligations related to compensated absences which represent obligations to employees for unused vacation leave balances or guaranteed health saving account contributions at retirement for unused sick leave balances. General revenues are used to liquidate compensated absence balances and other long-term obligations. In the event of default, the Trustee for the bonds may pursue any available remedy by suit at law on in equity to enforce the payment of the principal of, premium, in any, and interest on the Bonds the Outstanding or to enforce any obligations of the Authority. However, the Authority’s obligations with respect to the Bonds are limited to Pledged Revenues. (Amended and Restated General Indenture of Trust, dated September 1, 2002) For those debts for which collateral or a leasehold interest has been pledged, the most likely remedy in the event of default would be though other possible remedies include acceleration of all unpaid payments on the debt, possession of pledged property by the debtor, and any necessary legal actions against the Authority to cure the default. (The Authority’s Current Standard Lease Purchase Agreement Language) In prior years, the Authority has refunded certain bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, the trust account assets and the liability for the refunded bonds are not included in the Authority’s financial statements. DIRECT BORROWINGS Beginning in 2015, UTA has secured financing agreements annually for the purchase of buses, paratransit vehicles and vanpool commuter vans. The financing agreements from 2015 through 2019 were secured from Banc of America Public Capital Corporation and the financing agreements from 2020 through 2021 were secured through JP Morgan Chase Bank. In December 2022, the Authority entered into a 5-year master financing agreement for 2022- 2026 that has an index rate guarantee for the term of the agreement. These finance agreements lien title of the vehicles owned by the Authority and therefore these agreements are reported as financed purchases, rather than leases, in the financial statements. On December 22, 2016, Utah County issued a $65 million Subordinated Transportation Sales Tax Revenue Bond to be used for the construction of the Utah Valley Express bus route. The Authority and Utah County have entered into an inter-local agreement that requires the Authority to reimburse Utah County for all bond costs (principal, interest, and cost of issuance) prior to December 31, 2028. 80 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Amount Amount Due Accured Amount of Outstanding Within One Year Interest Collateral Direct Borrowings: Inter-local Loan: $56,125,000 $1,595,000 $ 296,714 $- Subtotal: Direct Borrowings - Inter-local loans: $56,125,000 $ 1,595,000 $ 296,714 $- Financing Agreements: $2,175,679 $457,089 $- $ 2,447,216 1,248,940 208,879 - 1,384,545 14,847,407 2,007,585 - 16,603,356 8,784,517 987,522 - 9,440,403 74,273 74,273 - 157,342 3,884,003 411,002 - 3,877,555 939,094 559,868 - 1,646,349 318,112 318,113 - 814,965 8,242,962 624,707 - 8,221,679 2,057,157 508,077 - 2,184,211 26,381,850 1,811,416 - 17,049,747 $5,190,000 12-Year Financing Agreement, Series 2019, issued August 8, 2019, maturing monthly from September 8, 2019 through August 8, 2031, with interest payable monthly at rate of 2.2200%. A leasehold interest in 10 buses and equipment is pledged as security for the debt. $28,160,000 14-Year Financing Agreement, Series 2021, issued December 28, 2021, maturing monthly from January 28th, 2022 through December 28, 2035, with interest payable monthly at rate of 1.855%. A leasehold interest in 50 buses and equipment is pledged as security for the debt. $3,060,000 6-Year Financing Agreement, Series 2020, issued December 5, 2020, maturing monthly from January 3, 2021 through December 3, 2026, with interest payable monthly at rate of .88%. A leasehold interest in 25 Flex/Paratransit vehicles and 35 RideShare vans and equipment is pledged as security for the debt. $12,496,000 12-Year Financing Agreement, Series 2018, issued November 28, 2018, maturing monthly from December 28, 2018 through November 30, 2030, with interest payable monthly at rate of 3.2950%. A leasehold interest in 24 buses, 2 trolleys, and their associated equipment is pledged as security for the debt. $381,000 5-Year Financing Agreement, Series 2018, issued November 28, 2018, maturing monthly from December 28, 2018 through November 30, 2023, with interest payable monthly at rate of 3.0570%. A leasehold interest in 36 FLEX/Paratransit vehicles and equipment is pledged as security for the debt. $9,530,000 14-Year Financing Agreement, Series 2020, issued December 5, 2020, maturing monthly from January 3rd, 2021 through December 3, 2034, with interest payable monthly at rate of 1.5050%. A leasehold interest in 20 buses and equipment is pledged as security for the debt. $1,960,000 4-Year Financing Agreement, Series 2019, issued August 8, 2019, maturing monthly from September 8, 2019 through August 8, 2023, with interest payable monthly at rate of 1.9100%. A leasehold interest in 52 RideShare vans is pledged as security for the debt. $2,730,000 5-Year Financing Agreement, Series 2019, issued August 8, 2019, maturing monthly from September 8, 2019 through August 8, 2024, with interest payable monthly at rate of 1.9100%. A leasehold interest in 30 FLEX/Paratransit vehicles and equipment is pledged as security for the debt. $5,283,500 12-Year Financing Agreement, Series 2015, issued July 17, 2015, maturing monthly from August 17, 2015 through July 17, 2027, with interest payable monthly at rate of 2.0908%. A leasehold interest in 10 CNG buses and equipment is pledged as security for the debt. $2,480,000 12-Year Financing Agreement, Series 2016, issued September 27, 2016, maturing monthly from October 27, 2016 through September 27, 2028, with interest payable monthly at rate of 1.6322%. A leasehold interest in 5 ski buses and equipment is pledged as security for the debt. $24,390,000 12-Year Financing Agreement, Series 2017, issued November 30, 2017, maturing monthly from December 31, 2017 through November 30, 2029, with interest payable monthly at rate of 2.2440%. A leasehold interest in 47 buses and equipment is pledged as security for the debt. On December 22, 2016, Utah County issued a $65 million Subordinated Transportation Sales Tax Revenue Bond to be used for the construction of the Utah Valley Express bus route. The Authority and Utah County have entered into an inter- local agreement that requires the Authority to reimburse Utah County for all bond costs (principal, interest, and cost of issuance) prior to December 31, 2028. In 2021, the Authority will remit $2,649,245.50 to Utah County for repayment of prior design cost incurred by Utah County, $3,460,616 of principal on variable rate loan for first year operations of route, and $199,480.44 of interest on the variable rate loan per the terms of Utah County 4th Quarter Cent Sales Tax Interlocal Agreement. As of November 2021, UTA only owes the remaining bond principal and interest on the 2016 Utah County Subordinated Transportation Sales Tax Revenue Bond. 81 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Amount Amount Due Accured Amount of Outstanding Within One Year Interest Collateral 3,237,751 630,195 - - 24,987,407 1,347,205 - - 1,223,154 132,261 - - 7,525,250 1,132,046 - - Subtotal: Direct Borrowings - Financing Agreements: $ 105,927,556 $ 11,210,238 $ - $ 63,827,368 Total Direct Borrowings: $ 162,052,556 $ 12,805,238 $ 296,714 $ 63,827,368 Other Related Debt: Revenue Bonds 84,560,000 6,605,000 184,975 - 24,840,000 24,840,000 105,897 - 78,855,000 8,030,000 159,163 - 35,160,000 6,750,000 73,250 - 126,780,000 - 191,763 - 82,265,000 - 147,390 - 106,405,000 3,565,000 198,307 - 61,830,000 - 104,579 - 188,810,000 - 270,864 - 59,070,000 - 87,851 - 203,150,000 4,170,000 192,887 - $3,859,500 6-Year Financing Agreement, Series 2021, issued December 28, 2021, maturing monthly from January 28, 2022 through December 28, 2027, with interest payable monthly at rate of 1.35%. A leasehold interest in 27 Flex/Paratransit vehicles and 35 RideShare vans and equipment is pledged as security for the debt. $216,650,000 Taxable Senior Lien Sales Tax Revenue bonds, Series 2020, issued March 19, 2020, maturing annually from June 15, 2020 through December 15, 2038, with interest payable semiannually at rates from .937-2.774%. $134,650,000 Senior Revenue bonds, Series 2006C, issued October 24, 2006, maturing annually from June 15, 2007 through June 15, 2032, with interest payable semiannually at rates from 5.00% - 5.25% $59,070,000 Subordinate Revenue bonds, Series 2019B, issued November 26, 2019, maturing annually from June 15, 2020 through December 15, 2042, with interest payable semiannually at rates from 3.393-3.643%. $188,810,000 Senior Revenue bonds, Series 2019B, issued November 26, 2019, maturing annually from June 15, 2020 through December 15, 2042, with interest payable semiannually at a rate of 3.443%. $192,005,000 Subordinate Revenue bonds, Series 2015A, issued February 25, 2015, maturing annually from June 15, 2015 through June 15, 2026, with interest payable semiannually at rates of 5.00%. $126,780,000 Subordinate Revenue bonds, Series 2016, issued August 24,2016, maturing annually from December 15, 2016 through December 15, 2031, with interest payable semiannually at rates from 3.00 - 4.00%. $83,765,000 Senior Revenue bonds, Series 2018, issued March 15, 2018, maturing annually from June 15, 2018 through December 15, 2036, with interest payable semiannually at rates from 3.722 - 5.00%. $115,540,000 Subordiate Revenue bonds, Series 2018, issued March 15, 2018, maturing annually from June 15, 2018 through December 15, 2041 with interest payable semiannually at rates from 3.125-5.00%. $61,830,000 Senior Revenue bonds, Series 2019A, issued November 26, 2019, maturing annually from June 15, 2020 through December 15, 2044, with interest payable semiannually at rates from 3.00-5.00%. $700,000,000 Senior Revenue bonds, Series 2008A, issued April 10, 2008, maturing annually from December 15, 2008 through June 15, 2038, with interest payable semiannually at rates from 4.75-5.25% $668,655,000 Senior Revenue bonds, Series 2015A, issued February 25, 2015, maturing annually from June 15, 2015 through June 15, 2025, with interest payable semiannually at rates from 4.384-4.895%. $24,987,407 14-Year Financing Agreement, Series 2022, issued December 16, 2022, maturing monthly from January 16, 2023 through December 16, 2036, with interest payable monthly at rate of 4.1233%. A leasehold interest in 36 buses and equipment is pledged as security for the debt. $1,223,154 8-Year Financing Agreement, Series 2022, issued December 16, 2022, maturing monthly from January 16, 2023 through December 16, 2030, with interest payable monthly at rate of 4.0278%. A leasehold interest in 31 nonrevenue vehicles and equipment is pledged as security for the debt. $7,525,250 6-Year Financing Agreement, Series 2022, issued December 16, 2022, maturing monthly from January 16, 2023 through December 28, 2028, with interest payable monthly at rate of 4.0192%. A leasehold interest in 53 Flex/Paratransit vehicles and 86 RideShare vans and equipment is pledged as security for the debt. 82 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Amount Amount Due Accured Amount of Outstanding Within One Year Interest Collateral 74,750,000 - 90,177 - 424,240,000 8,260,000 362,872 - 16,020,000 250,000 19,046 - Subtotal: Other Related Debt - Revenue Bonds: $ 1,566,735,000 $ 62,470,000 $ 2,189,021 $ - Current Interest Bonds $115,895,000 $ 5,300,000 $ 241,448 $- Subtotal: Other Related Debt - Current Interest Bonds: 115,895,000 5,300,000 241,448 - Build America Bonds 261,450,000 - 646,762 200,000,000 - 475,417 - Subtotal: Other Related Debt - Build America Bonds: 461,450,000 - 1,122,179 - Captial Appreciation Bonds 18,911,498 - 4,398,268 - Subtotal: Other Related Debt - Capital Appreciation Bond: 18,911,498 - 4,398,268 - Total Other Related Debt: 2,162,991,498 67,770,000 7,950,916 - Total of Direct Borrowings and Other Related Debt: $ 2,325,044,054 $ 80,575,238 $ 8,247,630 $ 63,827,368 $18,911,498 Capital Appreciation Subordiate Debt, Series 2016, issued August 24, 2016, maturing December 15, 2032 at a rate of 3.32% $431,625,000 Senior Revenue bonds, Series 2021A, issued November 10, 2021, maturing annually from June 15, 2022 through December 15, 2036, with interest payable semiannually at a rate from .0347 to 2.589%. $16,220,000 Subordinate Revenue bonds, Series 2021A, issued November 10, 2021, maturing annually from June 15, 2022 through December 15, 2037, with interest payable semiannually at a rate from 0.547 to 2.989%. $200,000,000 Subordinate Debt, Series 2010A, issued October 20, 2010, maturing annually from June 15, 2011 through June 15, 2040, with interest payable semiannually at a rate of 5.705%. The authority elected to treat the 2010A bonds as "Build America Bonds" for the purpose of the American Recovery and Investment Act of 2009 (the Recovery Act) and to receive a cash subsidy from the United States Treasury in connection therewith. Pursuant to the Recovery Act, the Authority anticipates cash subsidy payments from the United States Treasury equal to 35% less sequestration ($3,822,065) of the interest payable on the 2010A bonds. $261,450,000 Senior Debt, Series 2009B, issued May 21, 2009, maturing annually from December 15, 2009 through June 15, 2029, with interest payable semiannually at a rate of 5.937%. The authority elected to treat the 2009B bonds as "Build America Bonds" for the purpose of the American Recovery and Investment Act of 2009 (the Recovery Act) and to receive a cash subsidy from the United States Treasury in connection therewith. Pursuant to the Recovery Act, the Authority anticipates cash subsidy payments from the United States Treasury equal to 35% less sequestration ($5,199,578) of the interest payable on the 2009B bonds. $128,795,000 Subordinate Current Interest Debt, Series 2007A, issued June 19, 2007, maturing annually from December 15, 2007 through June 15, 2035, with interest payable semiannually at a rate of 5.00%. $74,750,000 Subordinate Revenue bonds, Series 2020B, issued November 12,2020, maturing annually from June 15, 2021 through December 15, 2039, with interest payable semiannually at rates from 2.375-2.97%. 83 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Annual repayment requirements on the Direct Borrowings are: Inter-local Loan Year ending December 31, Principal Interest Total 2023 $ 1,595,000 $ 1,780,285 $ 3,375,285 2024 1,645,000 1,729,692 3,374,692 2025 1,700,000 1,677,512 3,377,512 2026 1,750,000 1,623,588 3,373,588 2027 1,805,000 1,568,078 3,373,078 2028-2029 47,630,000 2,962,490 50,592,490 Total $ 56,125,000 $ 11,341,645 $ 67,466,645 Financing Agreements Year ending December 31, Principal Interest Total 2023 $ 11,210,238 $ 2,744,810 $ 13,955,048 2024 10,903,981 2,464,284 13,368,265 2025 10,799,596 2,186,723 12,986,319 2026 11,080,535 1,905,784 12,986,319 2027 10,640,000 1,613,633 12,253,633 2028-2032 34,476,019 4,563,452 39,039,471 2033-2036 16,817,187 967,452 17,784,639 Total $ 105,927,556 $ 16,446,138 $ 122,373,694 OTHER RELATED DEBT The Sales Tax Revenue Bonds are payable from and secured by UTA’s sales and use tax revenue. UTA is required to maintain certain minimum deposits, as defined in the Indenture of Trust, to meet debt service requirements. Sales Tax Revenue Bonds debt service requirements to maturity are as follows: Year ending December 31, Principal Interest Total 2023 $ 67,770,000 $ 82,723,454 $ 150,493,454 2024 70,675,000 79,816,906 150,491,906 2025 75,675,000 76,751,163 152,426,163 2026 78,095,000 74,338,438 152,433,438 2027 85,750,000 72,394,125 158,144,125 2028-2032 483,496,498 332,231,581 815,728,079 2033-2037 595,965,000 221,250,715 817,215,715 2038-2042 697,065,000 81,700,300 778,765,300 2043-2044 8,500,000 384,300 8,884,300 Total $ 2,162,991,498 $ 1,021,590,982 $ 3,184,582,480 84 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 Changes in Debt Long-Term Liabilities Long-term debt liability activity for the year ended December 31, 2022 was as follows: Balance 1/1/2022 Additions Reductions Balance 12/31/2022 Due Within One Year Direct Borrowings Financing Agreements $ 81,468,517 $ 33,735,811 $ (9,276,772) $ 105,927,556 $ 11,210,238 Inter-local Loan 57,670,000 - (1,545,000) 56,125,000 1,595,000 Total Direct Borrowings $ 139,138,517 33,735,811 $ (10,839,772) $ 162,052,556 $ 12,805,238 Balance 1/1/2022 Additions Reductions Balance 12/31/2022 Due Within One Year Other Related Debt Sales Tax Revenue Bonds $ 1,622,470,000 $ - $ (55,735,000) $ 1,566,735,000 $ 67,770,000 Current Interest Bonds 115,895,000 - - 115,895,000 - Build America Bonds 461,450,000 - - 461,450,000 - Capital Appreciation Bonds 18,911,498 - - 18,911,498 - Issuance premiums/(discounts) 55,016,601 - (7,521,582) 47,495,019 - Total Other Related Debt 2,273,743,099 - (63,256,582) 2,210,486,517 67,770,000 Total Financing Agreements and Other Related Debt as reported on Statement of Net Position $ 2,355,211,616 $ 33,735,811 $ (72,533,354) $ 2,316,414,073 $ 78,980,238 Compensated Absences Balance 1/1/2022 Additions Reductions Balance 12/31/2022 Due Within One Year Total Vacation Liability $ 9,229,901 $ 12,538,715 $ (12,154,372) $ 9,614,244 $ 9,326,401 Total Sick Liability 5,394,259 2,361,815 (1,992,236) 5,763,838 1,303,270 Total Compensated Absences $ 14,624,160 $ 14,900,530 $ (14,146,608) $ 15,378,082 $ 10,629,671 85 UTAH TRANSIT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2022 NOTE 11 – COMMITMENTS AND CONTINGENCIES The Authority is a defendant in various matters of litigation and has other claims pending as a result of activities in the ordinary courses of business. Management and legal counsel believe that by reason of meritorious defense, by insurance coverage or statutory limitations, these contingencies will not result in a significant liability to the Authority in excess of the amounts provided as accrued self-insurance liability in the accompanying financial statements. As of December 31, 2022, the Authority also has purchasing commitments of $177.2 million for capital projects. The largest of these commitments are as follows:  $29.4 million Traction Power Rehabilitation and Replacement  20.5 million Ogden-Weber State University Bus Rapid Transit  18.2 million Volkswagen Settlement Bus Replacements  17.2 million Light Rail Overhaul  11.1 million Point of the Mountain Project  9.6 million Depot District  8.3 million TIGER Grant Projects  7.5 million Rail Rehabilitation and Replacement  5.5 million Paratransit/FLEX Replacement Vehicles  5.3 million Commuter Rail Engine Overhaul  5.3 million FrontRunner Double Track  4.4 million Fiber Rehabilitation and Replacement  2.5 million Sandy Parking Structure  2.2 million Vanpool Replacement  1.8 million Stray Current Mitigation  1.7 million Train Control Rehabilitation and Replacement  1.5 million Techlink Corridor  1.5 million TRAX Operational Simulator  1.4 million Rail Switches and Trackwork Controls Replacement  1.4 million Capital Program Management and Support  1.3 million Tooele County Microtransit Vehicle Electrification  1.3 million Rail Communications On-Board Technology  1.3 million Bus Engine/ Transmission Rehabilitation and Replacement  1.2 million Light Rail Vehicle Accident Repair  1.1 million Gap Filler at FrontRunner Stations  14.7 million All Other Capital Projects 86 SM Required Supplementary Information 87 UTAH TRANSIT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION Year Ended December 31, 2022 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – 10 YEARS 2022   2021   2020   2019 Total Pension Liability          Service cost $ 12,293,940 $ 12,597,159 $ 10,653,870 $ 10,244,115 Interest on total pension liability 27,443,651 25,639,471 24,263,256 22,947,802 Voluntary member contributions 116,525 334,301 83,988 298,803 Differences between expected and actual experience (621,195) 9,188,520 4,292,503 3,347,505 Assumption changes or inputs 6,482,520 - 11,421,251 - Benefits paid (22,309,358) (19,196,735) (19,648,551) (17,302,699) Net change in total pension liability 23,406,083 28,562,716 31,066,317 19,535,526 Total pension liability - beginning 405,251,222 376,688,506 345,622,189 326,086,663 Total pension liability - ending (a) 428,657,305 405,251,222 376,688,506 345,622,189 Plan Fiduciary Net Position Contributions - employer $ 27,132,518 $ 25,207,307 $ 24,273,996 $ 24,008,192 Contributions - members 116,525 334,301 83,988 298,803 Net investment income (56,561,527) 28,830,047 33,846,259 40,648,932 Benefits paid (22,309,358) (19,196,735) (19,648,551) (17,302,699) Administrative expense (554,229) (471,288) (407,938) (434,427) Net change in plan fiduciary net position (52,176,071) 34,703,632 38,147,754 47,218,801 Plan fiduciary net position - beginning 314,608,736 279,905,104 241,757,350 194,538,549 Plan fiduciary net position - ending (b) 262,432,665 314,608,736 279,905,104 241,757,350 Net pension liability / (asset) - ending (a-b) $ 166,224,640 $ 90,642,486 $ 96,783,402 $ 103,864,839          Plan fiduciary net position as a       percentage of the total pension liability 61.22%   77.63%   74.31%   69,95%          Projected covered payroll $ 160,831,897 $ 153,983,509 $ 152,297,365 $ 141,812,999          Net pension liability as a percentage       of covered payroll 103.35%   58.87%   63.55%   73.24% Schedule is intended to show information for 10 years. Additional years will be displayed when available. 88 UTAH TRANSIT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION Year Ended December 31, 2022 2018   2017   2016 Total Pension Liability       Service cost $ 9,550,863    $ 8,368,262 $ 7,711,706 Interest on total pension liability 21,512,781    20,368,031 19,604,345 Voluntary member contributions 223,572    697,576 437,923 Differences between expected and actual experience 4,893,150    4,915,564 (927,077)    Assumption changes or inputs -    5,079,447 (3,955,702)    Benefits paid (15,474,819)    (13,008,142) (12,980,615) Net change in total pension liability 20,705,547    26,420,738 9,890,580    Total pension liability - beginning 305,381,116    278,960,378 269,069,798    Total pension liability - ending (a) 326,086,663    305,381,116 278,960,378    Plan Fiduciary Net Position    Contributions - employer $ 22,355,434    $ 20,506,163 $ 19,603,952    Contributions - members 223,572    697,576 437,923 Net investment income (16,629,921)    30,598,620 7,591,211    Benefits paid (15,474,819)    (13,008,142) (12,980,615)    Administrative expense (440,279)    (324,912) (249,141) Net change in plan fiduciary net position (9,966,013)    38,469,305 14,403,330    Plan fiduciary net position - beginning 204,504,562    166,035,257 151,631,927    Plan fiduciary net position - ending (b) 194,538,549    204,504,562 166,035,257    Net pension liability / (asset) - ending (a-b) $ 131,548,114    $ 100,876,554 $ 112,925,121    Plan fiduciary net position as a 59.66%    66.97% 59.50% percentage of the total pension liability       Projected covered employee payroll $ 132,521,079    $ 126,690,540 $ 115,430,618    Net pension liability as a percentage   of covered payroll 99.27%    79.62% 97.83% Schedule is intended to show information for 10 years. Additional years will be displayed when available. 89 UTAH TRANSIT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION Year Ended December 31, 2022 2015 2014 Total Pension Liability Service cost $ 7,545,807 $ 7,284,379 Interest on total pension liability 18,717,411 17,623,248 Voluntary member contributions 916,567 275,663 Differences between expected and actual experience (1,973,177) - Assumption changes or inputs 7,725,363 - Benefits paid (11,554,824) (10,181,732) Net change in total pension liability 21,377,147 15,001,558 Total pension liability - beginning 247,692,651 232,691,093 Total pension liability - ending (a) 269,069,798 247,692,651 Plan Fiduciary Net Position Contributions - employer $ 16,745,254 $ 15,366,694 Contributions - members 916,567 275,663 Net investment income (1,085,458) 5,946,916 Benefits paid (11,554,824) (10,181,732) Administrative expense (244,011) (219,504) Net change in plan fiduciary net position 4,777,528 11,188,037 Plan fiduciary net position - beginning 146,854,399 135,666,362 Plan fiduciary net position - ending (b) 151,631,927 146,854,399 Net pension liability / (asset) - ending (a-b) $ 117,437,871 $ 100,838,252 Plan fiduciary net position as a 56.40% 59.29% percentage of the total pension liability Projected covered employee payroll $ 110,727,134 $ 106,004,057 Net pension liability as a percentage of covered payroll 106.06% 95.13% Schedule is intended to show information for 10 years. Additional years will be displayed when available. 90 UTAH TRANSIT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION Year Ended December 31, 2022 SCHEDULE OF REQUIRED EMPLOYER CONTRIBUTIONS – 10 YEARS Year Actuarial Determined Contribution Actual Employer Contribution Contribution Deficiency (Excess) Covered Payroll Contribution as Percentage of Covered Payroll 2022 $ 25,967,318 $ 27,132,518 $ (1,165,200) $ 160,831,897 16.87% 2021 24,743,369 25,207,307 (463,938) 153,983,509 16.37% 2020 25,167,517 24,273,996 893,521 152,297,365 15.94% 2019 22,240,718 24,008,192 (1,767,474) 141,812,999 16.93% 2018 21,600,936 22,355,434 (754,498) 132,521,079 16.87% 2017 20,270,486 20,506,163 (235,677) 126,690,540 16.19% 2016 17,147,568 19,603,952 (2,456,384) 115,430,618 16.98% 2015 16,609,070 16,745,254 (136,184) 110,727,134 15.12% 2014 14,757,446 15,366,694 (609,248) 106,004,057 14.50% 2013 14,352,279 13,338,052 1,014,227 102,099,985 13.06% NOTE 1 – METHODS AND ASSUMPTIONS USED TO DETERMINE CONTRIBUTION RATES AS OF DECEMBER 31, 2022 Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 18 years Asset valuation method 5-year smoothed market less unrealized Cost of Living Adjustments None Inflation 2.5% Salary increases 7.00% per annum for the first five years of employment; 4.00% per annum thereafter Investment rate of return 6.75%, net of investment expenses Retirement age Table of Rates by Age and Eligibility Mortality RP-2014 Blue Collar Mortality Table, with MP-2014 projection scale 91 UTAH TRANSIT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION Year Ended December 31, 2022 SCHEDULE OF INVESTMENT RETURNS The money-weighted rate of return considers the changing amounts actually invested during a period and weights the amount of pension plan investments by the proportion of time they are available to return during that period. External cash flows are determined on a monthly basis and are assumed to occur at the middle of each month. External cash inflows are netted with external cash outflows, resulting in a net external cash flow each month. The money-weighted rate of return is calculated net of investment expenses. Fiscal Year Ending December 31 Net Money-Weighted Rate of Return 2022 -17.85% 2021 10.19% 2020 13.88% 2019 20.56% 2018 -8.00% 2017 18.01% 2016 4.90% 2015 -0.72% 2014 4.31% Schedule is intended to show information for 10 years. Additional years will be displayed when available. 92 SM Supplementary Schedules 93 UTAH TRANSIT AUTHORITY Supplementary Schedule Year Ended December 31, 2022 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION BUDGET TO ACTUAL Budget Budget Amendments Amended Budget Actual Favorable (Unfavorable) Revenues Contributions from other gov'ts, sales tax 435,700,000$ -$ 435,700,000$ 480,925,766$ 45,225,766$ Federal operating grants 1 59,600,000 - $1 59,600,000 21 5,063,965 55,463,965 Passenger revenues 34,200,000 - $34,200,000 33,499,1 44 (700,856) Advertising 1 ,377,000 - $1 ,377,000 2,21 4,000 837,000 Investment income 5,1 60,000 - $5,1 60,000 1 ,806,825 (3,353,175) Other income 15,121,000 - $15,121,000 1 1 ,692,301 (3,428,699) Total revenues 651 ,1 58,000 - 651 ,1 58,000 745,202,001 94,044,001 Operating Expenses Bus services 1 20,064,000 9,674,985 1 29,738,985 135,508,533 (5,769,548) Rail services 89,822,000 33,064,281 1 22,886,281 121,262,026 1,624,255 Demand response services 26,21 7,000 6,846,938 33,063,938 33,431,955 (368,01 7) Other services 3,795,000 3,1 05 3,798,105 3,509,781 288,324 Operations support 61 ,736,000 61 ,736,000 62,562,572 (826,572) Administration (less non-operating)51 ,030,000 1 0,887,41 9 61,917,419 60,128,711 1 ,788,708 Total operating expenses 352,664,000 60,476,728 41 3,1 40,728 41 6,403,578 (3,262,850) Non-Operating Expenses (Revenues) Interest expense 90,244,000 - 90,244,000 99,970,267 (9,726,267) Build America Bond subsidies (8,889,000) - (8,889,000) (9,259,376) 370,376 Principal 66,856,000 - 66,856,000 66,575,261 280,739 Non-operating 1 0,493,000 - 1 0,493,000 4,830,525 5,662,475 Total non-operating expenses 1 58,704,000 - 1 58,704,000 1 62,1 1 6,677 (3,412,677) Total Operating and Non-Operating Expenses 51 1 ,368,000$ 60,476,728$ 571 ,844,728$ 578,520,255$ (6,675,527)$ Capital Expenses (Revenues) Federal and local grants (44,290,925)$ 80,000$ (44,21 0,925)$ (50,582,042)$ 6,371,117$ State and local contributions (44,048,972)320,000 (43,728,972)(30,992,1 1 4)(1 2,736,858) Capital lease (1 5,832,000)- (1 5,832,000)- (1 5,832,000) Bonds (35,000,000) - (35,000,000)- (35,000,000) Project Expenses 228,057,748 42,307,272 270,365,020 205,226,455 65,1 38,565 Total capital expenses (revenues)88,885,851$ 42,707,272$ 131,593,123$ 123,652,299$ 7,940,824$ Project Expenses-less transfers to Capital Assets in 2022 (1 46,088,807) Operations Capital Outlay Expenses 1,339,080 Capital Project Expenses Not Capitalized 60,476,728$ Reconcilaition: Total Revenues (Operating and Capital)826,776,1 57$ (638,996,983) - Less Depreciation and Impairment Expenses (1 48,41 7,396) + Plus Sale of Assets 3,228,640 + Plus Return on Capital Investment 1 9,368,007 + Plus Capital Project Expenses Not Capitalized (Added into modes) Bus 9,674,985 Rail 33,064,281 Demand Response 1 1 5,961 Other Service 3,1 05 Administration 1 7,61 8,396 + Plus Principal Payments on Long-term Debt 66,575,261 + Plus Capital Contributions to Assets 68,648 1 89,079,062$ - Less Total Expenses (Operating, Non-Operating, and Capital (after Capitalization) Change in Net Position (Statement of Revenues, Expenses, and Changes in Net Position) 94 UTAH TRANSIT AUTHORITY Supplementary Schedule As of December 31, 2022 COMBINING STATEMENT OF FIDUCIARY NET POSITION UTA Employee Retirement Trust Joint Insurance Trust Total ASSETS Cash in Bank 390,674$ 9,457,799$ 9,848,473$ Cash in Utah State Treasury - 488,591 488,591 Total Cash 390,674 9,946,390 10,337,064 Investments Global Equities 169,136,405 - 169,136,405 Fixed Income 66,188,689 - 66,188,689 Real Assets 14,928,117 - 14,928,117 Money Market 10,122,630 1,788,754 11,911,384 Investments 260,375,841 1,788,754 262,164,595 Prepaid Benefits 1,288,520 - 1,288,520 Deposits - 104,795 104,795 Receivables Dividends Receivable 27,927 - 27,927 Accounts Receivable - Benefits 2,476 - 2,476 Accounts Receivable - Contributions 534,409 26,695 561,104 Total Receivables 564,812 26,695 591,507 TOTAL ASSETS 262,619,847 11,866,634 274,486,481 LIABILITIES Benefits Payable 22,190 - 22,190 Accounts Payable 164,992 4,369,622 4,534,614 TOTAL LIABILITIES 187,182 4,369,622 4,556,804 NET POSITION Restricted for: Pension 262,432,665 - 262,432,665 Benefits Other than Pension - 7,497,012$ 7,497,012 Total Net Position 262,432,665$ 7,497,012$ 269,929,677$ 95 UTAH TRANSIT AUTHORITY Supplementary Schedule Year Ended December 31, 2022 COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION UTA Employee Retirement Trust Joint Insurance Trust Total ADDITIONS Employer Contributions 27,132,518$ 21,341,458$ 48,473,976$ Participant Voluntary Contributions 116,525 414,378 530,903 Total Contributions 27,249,043 21,755,836 49,004,879 Net Investment Income Net Decline in Fair Value of Investments (58,161,231)(8,484)(58,169,715) Interest 160,317 28,498 188,815 Dividends 2,251,300 - 2,251,300 Total Investment Income (55,749,614)20,014 (55,729,600) Less: Investment Expense 811,913 - 811,913 Net Investment Income (56,561,527)20,014 (56,541,513) TOTAL ADDITIONS (29,312,484)21,775,850 (7,536,634) DEDUCTIONS Monthly Benefits Paid 14,275,618 20,593,640 34,869,258 Lump Sum Distributions 8,033,740 - 8,033,740 Administrative Expense 554,229 140,660 694,889 TOTAL DEDUCTIONS 22,863,587 20,734,300 43,597,887 CHANGE IN NET POSITION (52,176,071)$ 1,041,550$ (51,134,521)$ Total Net Position (Restricted), January 1 314,608,736$ 6,455,462$ 321,064,198$ Total Net Position (Restricted), December 31 262,432,665$ 7,497,012$ 269,929,677$ 96 SM Statistical 97 UTAH TRANSIT AUTHORITY Statistical Section Year Ended December 31, 2022 The Statistical Section provides additional historical context and detail to aid in using the information in Utah Transit Authority’s financial statements and in understanding and assessing the Authority’s overall financial health. Financial Trends Information These schedules present trend information to help the reader understand how the Authority’s financial performance and fiscal health have changed. Net Position and Changes in Net Position Revenue History by Source Expense History by Function Revenue Capacity Information These schedules contain information to help the reader assess the Authority’s capacity to raise revenue from the Authority’s most significant revenue source, local transit sales tax. Local Contributions from Other Governments Local Transit Sales Taxes by County Principle Contributors of Sales Tax and Fares Debt Capacity Information This Schedule presents information to help the reader understand and assess the Authority’s level of outstanding debt and the Authority’s ability to issue additional debt in the future. Debt Service Coverage Demographic and Economic Information These schedules present demographic and economic indicators to help the reader understand the environment within which the Authority’s financial activities take place. Principal Employers Full Time Equivalent Authority Employees Trend Statistics by Type of Service Operating Information These schedules offer operating data to help the reader understand how the information in the Authority’s financial report relates to the services it provides and the activities it performs. Operating Indicators by Function/Program Capital Asset Statistics by Function/Program Performance Measures – Bus Service Performance Measures – Light Rail Performance Measures – Commuter Rail Performance Measures – Demand Response Performance Measures – Vanpool Sources: Unless otherwise noted, the information in the following schedules is derived from Utah Transit Authority’s Annual Comprehensive Financial Reports for the years indicated. 98 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - FINANCIAL TRENDS Year Ended December 31, 2022 *NET POSITION AS OF December 31 - 10 Years 2022 2021 1 2020 2019 2018 2017 2016 2015 2014 2013 Net Position as of December 31 Net investment in capital assets $666,552,866 $667,968,269 $648,605,411 $692,675,681 $827,646,243 $894,275,843 $924,260,135 $1,040,640,236 $1,230,633,230 $1,327,585,097 Restricted 44,161,873 27,015,061 40,516,406 66,948,773 66,559,450 60,399,717 67,381,132 77,983,022 62,779,798 7,172,060 Unrestricted 505,087,728 331,437,253 228,081,924 113,143,840 85,088,927 39,001,859 71,502,447 76,548,154 137,991,170 242,347,746 Total net position 1,215,802,467 1,026,420,583 917,203,741 872,768,294 979,294,620 993,677,419 1,063,143,714 1,195,171,412 1,431,404,198 1,577,104,903 Restatement - 302,822 - - - - - (9,497,521) (115,047,267) 4,931,557 Total restated net position $1,215,802,467 $1,026,723,405 $917,203,741 $872,768,294 $979,294,620 $993,677,419 $1,063,143,714 $1,185,673,891 $1,316,356,931 $1,582,036,460 *CHANGE IN NET POSITION - 10 YEARS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Operating revenues $35,713,144 $30,386,187 $34,880,272 $55,111,554 $54,464,392 $54,525,870 $52,891,021 $54,346,242 $53,761,223 $52,044,200 Operating expenses 569,651,499 472,933,325 459,473,189 457,897,920 401,161,541 427,777,940 422,543,342 394,062,733 398,626,029 378,224,993 Operating loss (533,938,355) (442,547,138) (424,592,917) (402,786,366) (346,697,149) (373,252,070) (369,652,321) (339,716,491) (344,864,806) (326,180,793) Non-operating revenues 641,374,613 483,530,389 444,739,466 261,451,197 268,435,411 246,722,487 226,957,532 209,462,264 182,843,232 173,520,664 Income (loss) before capital contributions 107,436,258 40,983,251 20,146,549 (141,335,169) (78,261,738) (126,529,583) (142,694,789) (130,254,227) (162,021,574) (152,660,129) Capital contributions 81,642,804 68,233,591 24,288,898 34,808,843 63,878,939 57,063,288 20,164,612 9,068,708 11,389,311 56,255,200 Change in net position $189,079,062 $109,216,842 $44,435,447 (106,526,326)$ (14,382,799)$ (69,466,295)$ (122,530,177)$ (121,185,519)$ (150,632,263)$ (96,404,929)$ *Source: Utah Transit Authority 2022 Annual Comprehensive Financial Report 1. 2021 Net position restated due to GASB 87 Implementation in 2022. 99 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - FINANCIAL TRENDS Year Ended December 31, 2022 REVENUE HISTORY BY SOURCE 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Operating 35,713,144$ 30,386,187$ 34,880,272$ 55,111,554$ 54,464,392$ 54,525,870$ 52,891,021$ 54,346,242$ 53,761,223$ 52,044,200$ Sales taxes - 433,360,729 361,590,707 317,797,604 282,933,591 265,770,775 245,008,417 227,703,023 214,683,276 203,806,329 Investment 215,063,965 1,432,026 3,525,448 6,821,490 6,525,872 2,873,787 1,732,939 2,831,406 5,803,226 1,455,039 Reinvestment of proceeds from development agreements 1,806,825 - - - - - - - - - Net gain on sale of capital assets 19,368,007 1,411,431 927,566 - - - - - - - Build America Bond Subsidies 9,259,376 8,158,624 8,893,288 - - - - - - - Other 11,692,301 9,822,657 9,442,644 (45,372,222) 8,155,668 3,954,893 3,108,191 8,314,065 3,724,610 4,347,724 292,903,618 484,571,654 419,259,925 334,358,426 352,079,523 327,125,325 302,740,568 293,194,736 277,972,335 261,653,292 Federal grants Federal preventive maintenance grants - - - - 61,820,668 62,313,994 59,772,235 49,452,677 47,760,737 47,986,240 Federal operating grants 480,925,766 130,631,095 160,258,318 69,746,231 - - 3,562,534 2,547,335 2,994,139 3,868,252 Federal capital grants 50,582,042 48,642,468 20,898,309 16,395,068 31,585,004 53,960,024 17,054,298 7,819,096 8,025,628 48,669,408 531,507,808 179,273,563 181,156,627 86,141,299 93,405,672 116,274,018 80,389,067 59,819,108 58,780,504 100,523,900 Other capital contributions 31,060,762 19,591,123 3,390,589 18,413,775 32,293,935 3,103,264 3,110,314 1,249,612 3,363,683 7,585,792 $855,472,188 $683,436,340 $603,807,141 $438,913,500 $477,779,130 $446,502,607 $386,239,949 $354,263,456 $340,116,522 $369,762,984 EXPENSE HISTORY BY FUNCTION 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Bus service 135,508,533$ 108,575,280$ 107,390,047$ 104,570,413$ 96,719,747$ 88,928,063$ 85,841,973$ 77,092,676$ 79,060,631$ 78,894,435$ Rail service 121,262,026 94,943,238 96,041,283 77,972,467 75,157,087 72,895,607 84,165,069 67,254,632 70,365,953 61,086,101 Paratransit service 33,431,955 27,083,173 22,646,903 23,121,527 21,857,632 19,572,367 19,341,116 18,511,580 18,748,699 18,202,211 Other service 3,509,781 3,587,718 3,296,275 3,247,699 3,056,191 2,982,176 2,949,643 2,918,871 3,183,892 701,656 Operations support 62,562,572 50,621,841 46,463,776 47,056,444 45,557,749 41,932,571 37,831,682 32,051,926 28,380,563 28,439,826 Administration 1 64,148,322 53,262,273 43,734,772 35,927,831 38,783,033 30,612,930 38,840,643 35,189,725 35,409,918 28,533,912 Capital Maintenance Projects - - - 19,078,502 38,654,111 20,602,425 - - - - Depreciation 6,358,030 134,048,888 139,089,219 146,112,123 80,565,077 149,440,887 153,573,216 161,043,323 163,476,373 162,366,852 Impairment Expense (3,228,640) - - - - - - - - - Interest 2 99,970,267 101,286,173 99,898,505 87,541,906 91,000,388 88,190,962 85,415,870 80,575,328 91,311,842 87,132,004 Recoverable sales tax, interlocal 3 810,914 810,914 810,914 810,914 810,914 810,914 810,914 810,914 810,914 810,914 524,333,760$ 574,219,498$ 560,182,608$ 546,250,740$ 492,161,929$ 515,968,902$ 508,770,126$ 475,448,975$ 490,748,785$ 466,167,911$ 1 Includes major investment studies 2 Reported as non-capitalized interest 3 See Notes to the Financial Statement, Note 2.K 100 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - REVENUE CAPACITY Year Ended December 31, 2022 LOCAL CONTRIBUTIONS IN THE FORM OF SALES TAX BY COUNTY - 10 YEARS 2022 2021 2020 2019 2018 Box Elder 1 3,083,631$ 2,690,712$ 2,404,175$ 2,019,035$ 1,898,308$ Davis 48,085,992 44,689,405 37,364,965 33,674,864 31,883,835 Salt Lake 291,511,290 260,485,953 217,849,215 196,744,294 174,704,191 Tooele 2 4,174,538 4,040,910 3,347,286 2,250,563 2,815,189 Utah 94,740,945 84,632,418 69,278,480 55,708,400 45,665,232 Weber 39,329,370 36,821,329 31,346,586 27,400,447 25,966,836 480,925,766$ 433,360,729$ 361,590,707$ 317,797,604$ 282,933,591$ 2017 2016 2015 2014 2013 Box Elder 1 1,957,740$ 1,790,352$ 1,552,291$ 1,418,268$ 1,300,577$ Davis 30,633,547 27,606,440 23,178,724 21,459,683 20,023,042 Salt Lake 163,407,564 153,201,907 146,866,479 139,199,088 132,741,112 Tooele 2 2,302,492 1,798,971 1,521,097 1,384,631 1,349,366 Utah 43,023,303 38,601,427 36,221,930 33,752,513 31,905,764 Weber 24,446,129 22,009,320 18,362,502 17,469,093 16,486,468 265,770,775$ 245,008,417$ 227,703,023$ 214,683,276$ 203,806,329$ 1 Includes Brigham City, Perry and Willard cities only LOCAL TRANSIT SALES TAX RATES BY COUNTY - 10 YEARS 2022 2021 2020 2019 2018 Box Elder 0.5500% 0.5500% 0.5500% 0.5500% 0.5500% Davis 0.6500% 0.6500% 0.6500% 0.6500% 0.6500% Salt Lake 0.7875% 0.8500% 0.8500% 0.8500% 0.6875% Tooele 0.4000% 0.4000% 0.4000% 0.4000% 0.4000% Utah 0.6260% 0.6260% 0.6300% 0.6300% 0.5260% Weber 0.6500% 0.6500% 0.6500% 0.6500% 0.6500% 2017 2016 2015 2014 2013 Box Elder 0.5500%0.5500% 0.5500% 0.5500% 0.5500% Davis 0.6500% 0.6500% 0.5500% 0.5500% 0.5500% Salt Lake 0.6875% 0.6875% 0.6875% 0.6875% 0.6875% Tooele 0.4000% 0.4000% 0.3000% 0.3000% 0.3000% Utah 0.5260% 0.5260% 0.5260% 0.5260% 0.5260% Weber 0.6500% 0.6500% 0.5500% 0.5500% 0.5500% Source: UTA Finance Department 2 Includes the cities of Tooele and Grantsville; and the unincorporated areas of Erda, Lakepoint, Stansbury Park and Lincoln 101 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - REVENUE CAPACITY Year Ended December 31, 2022 PRINCIPAL CONTRIBUTORS OF SALES TAX BY COUNTY - 2022 AND 2013 Rank Percentage of contributions Amount Rank Percentage of contributions Amount Salt Lake County 1 60.61% 291,511,290$ 1 65.13% 132,741,111$ Utah County 2 19.70% 94,740,945 2 15.65% 31,905,764 Davis County 3 10.00% 48,085,992 3 9.82% 20,023,042 Weber County 4 8.18% 39,329,370 4 8.09% 16,486,468 Tooele County 5 0.87% 4,174,538 5 0.66% 1,349,366 Box Elder County 6 0.64% 3,083,631 6 0.64% 1,300,577 480,925,766$ 203,806,328$ FARES - 10 YEARS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Cash Fares Base Fare 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ Senior Citizen/Disabled 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Ski Bus 5.00 5.00 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 Paratransit (Flextrans)4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Commuter Rail Base Rate 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Commuter Rail Additional Station 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 Commuter Rail Maximum Rate 9.70 9.70 10.30 10.30 10.30 10.30 10.30 10.30 10.30 10.30 Express 5.00 5.00 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 Streetcar 2.50 2.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Monthly Passes Adult 85.00$ 85.00$ 83.75$ 83.75$ 83.75$ 83.75$ 83.75$ 83.75$ 83.75$ 83.75$ Minor 42.50 42.50 62.75 62.75 62.75 62.75 62.75 62.75 62.75 62.75 College Student 42.50 42.50 62.75 62.75 62.75 62.75 62.75 62.75 62.75 62.75 Senior Citizen/Disabled 42.50 42.50 41.75 41.75 41.75 41.75 41.75 41.75 41.75 41.75 Express 170.00 170.00 198.00 198.00 198.00 198.00 198.00 198.00 198.00 198.00 Other Fares Day Pass 5.00$ 5.00$ 6.25$ 6.25$ 6.25$ 6.25$ 6.25$ 6.25$ 6.25$ 6.25$ Group Pass 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Summer Youth 49.00 49.00 49.00 49.00 99.00 99.00 99.00 99.00 99.00 — Token - 10-Pack 1 — 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 Paratransit - 10-Ride Ticket 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 1 UTA discontinued the use of tokens on January 1, 2022 Source: UTA Fares Department 2022 2013 102 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - DEBT CAPACITY Year Ended December 31, 2022 TOTAL OUTSTANDING DEBT BURDEN PER CAPITA Sales Taxes Collected Personal Income of Percentage of Per Financing (less Proposition 1 UTA Service Area Personal Income Capita Fiscal Year Bonds Inter-Local Agreements and 4th quarter cent) 2013 2,132,224,961$ -$ -$ 203,806,329$ 85,699,968,000$ 2.49% 926.12$ 2014 2,124,111,208 - - 214,683,276 91,063,808,000 2.33% 910.75 2015 2,291,439,672 - 11,272,688 227,703,023 98,213,376,000 2.34% 972.89 2016 2,259,166,529 - 19,605,173 238,584,981 104,042,124,000 2.19% 943.16 2017 2,300,193,307 65,000,000 46,394,866 256,742,750 110,124,169,000 2.19% 979.06 2018 2,377,228,054 65,960,616 56,038,716 273,007,256 118,270,822,000 2.11% 998.93 2019 2,329,663,958 67,050,616 52,187,203 288,548,490 125,338,146,000 1.95% 963.88 2020 2,324,362,741 65,665,597 57,263,279 311,520,915 135,585,673,000 1.80% 938.78 2021 2,273,743,099 57,670,000 81,486,033 373,271,998 149,994,848,000 1.61% 904.76 2022 2,162,991,498 56,125,000 105,927,556 414,301,168 —— 862.52 Source: Note 9 2022 personal income numbers are not available at the preparation of this statement DEMOGRAPHIC AND ECONOMIC STATISTICS Estimated Personal Income Per Capita Unemployment Fiscal Year Population in UTA Service Area Personal Income Rate 2013 2,302,315 85,699,968,000$ 37,223$ 4.6% 2014 2,332,262 91,063,808,000 39,045 3.8% 2015 2,366,874 98,213,376,000 41,495 3.6% 2016 2,416,115 104,042,124,000 43,062 3.4% 2017 2,463,158 110,124,169,000 44,709 3.3% 2018 2,501,905 118,270,822,000 47,272 3.0% 2019 2,540,671 125,338,146,000 49,333 2.6% 2020 2,606,888 135,585,673,000 52,011 3.3% 2021 2,666,898 149,994,848,000 56,243 2.3% 2022 2,695,629 ——2.4% Source: US Dept of Commerce, Bureau of Economic Analysis, Regional Data (www.bea.gov) Unemployment rate- Utah Department of Workforce Services https://jobs.utah.gov/wi/update/une/ YEARLY DEBT SERVICE COVERAGE Sales Taxes Collected (less Proposition 1 Coveraqge Ratio Fiscal Year Principal Interest and 4th quarter cent) of Sales Taxes 2013 7,450,000$ 84,319,531$ 203,806,329$ 2.22 2014 7,810,000 91,382,184 214,683,276 2.16 2015 11,445,000 84,785,200 227,703,023 2.37 2016 13,570,000 94,893,898 238,584,981 2.20 2017 8,750,000 77,765,121 256,742,750 2.97 2018 10,845,000 91,000,388 273,007,256 2.68 2019 17,500,000 87,541,906 288,548,490 2.75 2020 25,920,000 91,005,217 311,520,915 2.66 2021 46,860,000 100,245,573 373,271,998 2.54 2022 55,735,000 86,212,420 414,301,168 2.92 Source: Statement of Expenses and Change in Net Position, and Note 10, Sales Tax Revenue Bonds Bonds Payments Total Debt 103 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - DEMOGRAPHIC AND ECONOMIC INFORMATION Year Ended December 31, 2022 PRINCIPAL EMPLOYER - 2021 AND 2012 Employer Industry Employees Rank % Total Employment Employees Rank % Total Employment Intermountain Healthcare Health Care 20,000 + 1 1.2% 20,000+ 1 2.6% University of Utah Higher Education 20,000 + 2 1.2% 20,000+ 2 1.8% Wal-Mart Associates Warehouse Clubs/Supercenters 20,000 + 3 1.2% 15,000-19,999 5 1.5% State of Utah State Government 20,000 + 4 1.2% 20,000+ 3 1.7% Brigham Young University Higher Education 15,000-19,999 5 0.9% 15,000-19,999 4 1.6% Hill Air Force Base Federal Government 10,000-14,999 6 0.6% 10,000-14,999 6 1.0% Davis County School District Public Education 7,000-9,999 7 0.4% 7,000-9,999 9 0.7% Smith's Food and Drug Centers Grocery Stores 7,000-9,999 8 0.4% 5,000-6,999 10 0.6% Utah State University Higher Education 7,000-9,999 9 0.4% 7,000-9,999 8 0.8% Alpine School District Public Education 7,000-9,999 10 0.4% — — — Granite School District Public Education — — — 7,000-9,999 7 0.8% Totals 133,000-154,994+ 8.1% 126,000-152,000+ 12.3% Total Employment 1,636,150 1,259,337 Source: Department of Workforce Service https://jobs.utah.gov/wi/data/library/firm/majoremployers.html https://jobs.utah.gov/jsp/utalmis/#/laborforce Note: 2022 data was not availible when this report was issued. 2021 2012 104 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - DEMOGRAPHIC AND ECONOMIC INFORMATION Year Ended December 31, 2022 FULL-TIME EQUIVALENT AUTHORITY EMPLOYEES - 10 YEARS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Bus operations 1,073 1,069 1,104 1,138 1,089 1,030 1,028 951 945 911 Rail operations 600 595 625 631 611 580 563 527 542 526 Paratransit operations 193 190 200 204 196 191 192 188 183 176 Other services 10 10 10 10 8 9 9 12 10 10 Support services 452 453 417 433 413 365 366 349 323 335 Administration 228 190 187 184 180 243 212 210 207 195 Total 2,555 2,506 2,543 2,599 2,496 2,417 2,368 2,237 2,210 2,153 Source: UTA Budget Office Headcount Report 01/01/2023 105 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - DEMOGRAPHIC AND ECONOMIC INFORMATION Year Ended December 31, 2022 TREND STATISTICS - 10 YEARS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Passengers Bus service 15,502,241 12,616,872 12,441,304 20,799,642 19,624,935 19,749,855 20,033,242 20,560,068 20,165,174 19,695,711 Rail service 13,964,586 10,466,195 10,271,888 22,321,887 22,981,884 23,677,677 23,765,873 24,349,674 24,337,451 22,814,274 Paratransit service 201,822 301,505 187,112 388,265 394,816 386,977 389,019 388,169 372,499 383,453 Vanpool service 731,900 587,721 658,990 1,068,364 1,174,696 1,264,410 1,333,780 1,423,675 1,404,285 1,387,816 Total passengers 30,400,549 23,972,293 23,559,294 44,578,158 44,176,331 45,078,919 45,521,914 46,721,586 46,279,409 44,281,254 Revenue Miles Bus service 15,613,708 15,534,571 15,607,429 18,158,463 17,911,404 17,454,404 15,462,834 15,367,510 15,660,520 15,706,028 Rail service 10,529,287 10,904,101 10,153,689 11,977,751 12,084,767 12,082,292 12,070,277 11,988,005 11,784,146 11,681,251 Paratransit service 1,591,587 1,252,967 1,709,396 2,881,355 2,798,928 2,727,127 2,505,343 2,293,887 2,513,535 2,932,842 Vanpool service 6,182,824 5,633,164 5,705,170 6,451,812 6,354,828 6,449,439 6,518,150 6,734,487 6,859,802 7,053,191 Total Revenue Miles 33,917,406 33,324,803 33,175,684 39,469,381 39,149,927 38,713,262 36,556,604 36,383,889 36,818,003 37,373,312 Total Miles Bus service 17,406,085 17,262,587 17,692,313 20,854,420 20,247,617 19,899,364 17,511,624 17,662,486 17,864,847 17,191,018 Rail service 10,650,381 11,010,634 10,256,421 12,098,162 12,285,634 12,202,976 12,189,876 12,368,934 11,814,332 11,773,929 Paratransit service 1,937,209 1,571,443 2,223,889 3,566,711 3,376,772 3,263,607 3,254,559 3,192,367 2,844,468 3,493,247 Vanpool service 6,182,824 5,633,164 5,705,170 6,451,812 6,354,828 6,449,439 6,518,150 6,734,487 6,859,802 7,053,191 Total miles 36,176,499 35,477,828 35,877,793 42,971,105 42,264,851 41,815,386 39,474,209 39,958,274 39,383,449 39,511,385 Passengers per Mile Bus service 0.99 0.81 0.80 1.15 1.10 1.13 1.30 1.34 1.29 1.25 Rail service 2.47 0.96 1.01 1.86 1.90 1.96 1.97 2.03 2.07 1.95 Paratransit service 0.13 0.24 0.11 0.13 0.14 0.14 0.16 0.17 0.15 0.13 Vanpool service 0.12 0.10 0.12 0.17 0.18 0.20 0.20 0.21 0.20 0.20 Total passengers per mile 3.71 0.72 0.71 1.13 1.13 1.16 1.25 1.28 1.26 1.18 Revenue Hours Bus service 1,242,349 1,228,731 1,169,292 1,326,660 1,284,186 1,258,448 1,087,055 1,070,139 1,108,894 933,662 Rail service 493,398 511,973 480,016 532,353 527,187 513,389 511,082 506,233 487,435 641,914 Paratransit service 94,758 79,710 116,174 181,749 180,342 162,198 162,734 160,383 164,527 191,016 Total revenue hours 1,830,505 1,820,414 1,765,482 2,040,762 1,991,715 1,934,035 1,760,871 1,736,755 1,760,856 1,766,592 Passengers per Revenue Hour Bus service 12.48 10.27 10.64 15.68 15.28 15.69 18.43 19.21 18.18 21.10 Rail service 52.80 20.44 21.40 41.93 43.59 46.12 46.50 48.10 49.93 35.54 Paratransit service 2.13 3.78 1.61 2.14 2.19 2.39 2.39 2.42 2.26 2.01 Total passengers per mile 67.41 12.85 12.97 21.32 21.59 22.65 25.09 26.08 25.48 24.28 Total System Fare revenue $33,499,144 $28,510,458 $32,845,272 $52,649,054 $52,051,892 $52,159,203 $50,624,354 $52,112,909 $51,461,223 $49,977,533 Operating expense $401,021,779 $346,672,552 $320,383,970 $311,785,797 $320,596,464 $257,734,612 $268,970,126 $242,516,933 $235,149,656 $215,858,141 Cost per revenue mile 11.82 10.40 9.66 7.90 8.19 6.66 7.36 6.67 6.39 5.78 Cost per passenger 13.19 14.46 13.60 6.99 7.26 5.72 5.91 5.19 5.08 4.87 Fare revenue per passenger 1.10 1.19 1.39 1.18 1.18 1.16 1.11 1.12 1.11 1.13 Source: NTD Note: Does not include commuter bus or contract transportation. 106 UTAH TRANSIT AUTHORITY STATISTICAL SECTION - OPERATING INFORMATION Year Ended December 31, 2022 OPERATING INDICATORS AND CAPITAL ASSETS - 10 YEARS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Number of bus routes * 83 95 104 117 114 119 125 126 121 119 Number of rail routes Light rail 4 4 4 4 4 4 4 4 4 4 Commuter rail 1 1 1 1 1 1 1 1 1 1 Bus service miles (weekday)59,196 62,948 63,025 62,742 57,378 56,162 53,612 49,625 51,629 55,733 Rail service miles (weekday) Light rail 8,789 8,342 6,797 8,832 8,853 8,814 8,815 8,828 8,547 8,216 Commuter rail 4,504 3,727 3,628 4,660 4,664 4,623 4,627 4,651 4,638 4,488 Average passengers (weekday)99,494 79,916 78,972 152,940 151,901 156,288 155,873 161,862 161,339 162,644 Buses 520 648 539 570 561 582 567 555 535 493 Paratransit vehicles (buses/vans)187 188 207 198 182 148 129 — 84 113 Rail vehicles Light rail 114 117 117 117 146 146 146 146 146 146 Commuter rail 87 81 81 70 81 81 81 81 81 81 Vanpool vehicles 491 461 471 512 453 453 503 495 479 470 Park and ride lots1 ——————46 41 — — Rail park and ride 41 42 42 42 42 42 ———— Non-Rail park and ride 25 12 12 12 12 12 ———— Bus stops 5,369 5,199 6,120 6,247 6,100 6,100 6,196 6,250 6,250 6,273 Rail stations Light rail 57 57 57 57 57 57 57 57 51 51 Commuter rail 17 17 17 17 16 16 16 16 16 16 Source: NTD UTA capital asset record UTA Change-Day Roster https://data-rideuta.opendata.arcgis.com/ * including flex 1 As of 2017, UTA started distinguishing between rail and non-rail park and ride lots. 107      108 109 BUS SERVICE (DIRECTLY OPERATED & PURCHASED) The following charts contain information from the Federal Transit Administration's National Database (NTD) for the most recent year available (2021) and compares the Authority's performance with other similar cities. 110 COMMUTER BUS SERVICE (DIRECTLY OPERATED & PURCHASED) The following charts contain information from the Federal Transit Administration's National Database (NTD) for the most recent year available (2021) and compares the Authority's performance with other similar cities. 111 LIGHT RAIL SERVICE (DIRECTLY OPERATED & PURCHASED) The following charts contain information from the Federal Transit Administration's National Database (NTD) for the most recent year available (2021) and compares the Authority's performance with other similar cities. 112 COMMUTER RAIL SERVICE (DIRECTLY OPERATED & PURCHASED) The following charts contain information from the Federal Transit Administration's National Database (NTD) for the most recent year available (2021) and compares the Authority's performance with other similar cities. 113 DEMAND RESPONSE SERVICE (DIRECTLY OPERATED & PURCHASED) The following charts contain information from the Federal Transit Administration's National Database (NTD) for the most recent year available (2021) and compares the Authority's performance with other similar cities. 114 VAN POOL SERVICE (DIRECTLY OPERATED & PURCHASED) The following charts contain information from the Federal Transit Administration's National Database (NTD) for the most recent year available (2021) and compares the Authority's performance with other similar cities. 115 SM Compliance 116 (Continued) Crowe LLP Independent Member Crowe Global INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Trustees Utah Transit Authority Salt Lake City, Utah We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities and the fiduciary activities of Utah Transit Authority (the Authority), a component unit of the State of Utah, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated June 9, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. 117 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Crowe LLP Indianapolis, Indiana June 9, 2023 118 (Continued) Crowe LLP Independent Member Crowe Global INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR THE MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE Board of Trustees Utah Transit Authority Salt Lake City, Utah Report on Compliance for Major Federal Program Opinion on Major Federal Program We have audited Utah Transit Authority’s (the Authority), a component unit of the State of Utah, compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the Authority’s major federal program for the year ended December 31, 2022. The Authority’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the Authority complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2022. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the Authority’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Authority’s federal programs. 119 (Continued) Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Authority’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Authority’s compliance with the requirements of the major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Authority’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  obtain an understanding of the Authority’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 120 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Crowe LLP Indianapolis, Indiana June 9, 2023 121 THE UTAH TRANSIT AUTHORITY Schedule of Expenditures of Federal Awards Year Ended December 31, 2022 Federal Grantor/Pass-Through Grantor/Program or Cluster Title Federal ALN Number Grant Number Pass-Through Entity Identifying Number Passed Through to Subrecipients Total Federal Expenditures U.S. DEPARTMENT OF TRANSPORTATION Federal Transit Cluster - Federal Transit Administration Programs Federal Transit - Capital Investment Grants 20.500 UT-2021-021 -$ 42,300,777$ COVID-19 Grant - (ARPA) Formula Grant 20.507 UT-2022-001-00 - 167,777,447 Federal Transit -Preventive Maintenance Formula Grant 20.507 UT-2022-006-00 - 49,644,460 FHWA Transfer to 5307 Ubanized Area Formula Grant 20.507 UT-2020-010 - 497,691 - 217,919,598 Bus and Bus Facilities Formula Program 20.526 UT-2018-010-00 - 2,099,923 - 2,099,923 - 262,320,298 Transit Services Programs Cluster - Federal Transit Administration Programs COVID-19 Grant - (CRRSSA) Formula Grant 20.513 UT-2022-002 24,539 24,539 COVID-19 Grant - (ARPA) Formula Grant 20.513 UT-2022-003 13,944 13,944 COVID-19 Transit Services Grants Total 38,483 38,483 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2017-015 21,523 20,815 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2017-016 49,990 49,990 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2017-017 - 3,114 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2019-001 99,048 108,461 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2019-002 161,970 201,040 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2019-003 184,327 209,887 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2021-005 182,000 182,000 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2021-007 88,005 88,005 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2021-009 60,438 68,648 Federal Transit - Enahanced Mobility Pilot Program 20.513 UT-2020-003 - 416,025 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2021-006 90,928 90,928 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2021-010 115,334 115,334 Federal Transit - Enahanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2021-011 36,370 109,365 1,128,416 1,702,095 1,128,416 264,022,393 Federal Transit Cluster - Federal Transit Administration Programs total Transit Services Programs Cluster - Federal Transit Administration Programs Federal Transit Administration Programs total 122 THE UTAH TRANSIT AUTHORITY Schedule of Expenditures of Federal Awards Year Ended December 31, 2022 Federal Grantor/Pass-Through Grantor/Program or Cluster Title Federal ALN Number Grant Number Pass-Through Entity Identifying Number Passed Through to Subrecipients Total Federal Expenditures Public Transportation Innovation 20.530 UT-2021-004-00 -$ 5,033$ Public Transportation Research, Technical Assistance, and Training 20.514 UT-2021-020-00 - 31,745 National Infrastructure Investment - Federal Transit Administration Programs Federal Transit Administration - National Infrastructure 20.933 UT-2018-002 Investment (TIGER)- 4,022,702 TOTAL U.S. DEPARTMENT OF TRANSPORTATION 1,128,416 268,081,873 TOTAL FEDERAL AWARDS EXPENDED 1,128,416$ 268,081,873$ RECONCILIATION OF FEDERAL EXPENDITURES TO FEDERAL REVENUES ON THE STATEMENT OF REVENUES, EXPENSES, AND CHANGE IN NET POSITION Federal Preventative Maintenance grants 215,063,965$ Capital Contributions: Federal grants 50,582,042 Total per Statement of Revenues, Expneses and Change in Net Position (2022) 265,646,007 Total per Schedule of Expenditures of Federal Awards for the year ending December 31, 2022 268,081,873 Difference 2,435,866 Previous Over/(Under)stated Revenues reflected in 2022 Statement of Revenues, Expenses and Change in Net Position Transit Services Program Cluster ALN Grant # Amount Enhanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2017-015 (2)$ Enhanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2017-016 1 Enhanced Mobility for Seniors and Individuals with Disabilities 20.513 UT-2019-001 (2) (3) Federal Transit Cluster - Federal Transit Administration Programs ALN Grant # Amount Bus and Bus Facilities Formula Program 20.526 UT-2018-010 (1) (1) Adjusting entry UT-2016-006 (12,403.00) Adjusting entry 20-CMAQ-19.43210 2,497,250 Adjusting entry 20-CMAQ.43210 (48,977.77) 2,435,870 Total Adjustment 2,435,866$ 123 UTAH TRANSIT AUTHORITY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended December 31, 2022 A. Basis of Accounting The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of the Authority. Expenditures are recognized on the accrual basis of accounting, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Pass-Through Awards The Authority receives certain expenditures of federal awards, which is passed through to sub-recipients. The total amount of such pass-through awards is included in the schedule of expenditures of federal awards. C. Non-Cash Federal Assistance No non-cash federal assistance was received during the year ended December 31, 2022. D. Indirect Cost Rate The Authority did not use the 10 percent de minimis indirect cost rate. 124 UTAH TRANSIT AUTHORITY Schedule of Findings and Questioned Costs For the year ended December 31, 2022 X X X X X X X SECTION I – SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: Material weakness(es) identified? ____ Yes ____ No Significant Deficiency(ies) identified? ____ Yes ____ None reported Noncompliance material to financial statements noted? ____ Yes ____ No Federal Awards Internal control over major federal programs: Material weakness(es) identified? ____ Yes ____ No Significant Deficiencies identified not considered to be material weaknesses? ____ Yes ____ None reported Type of auditor’s report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? ____ Yes ____ No Identification of major federal programs: Assistance Listing Number(s). Program/Cluster Title 20.500, 20.507, 20.526 Federal Transit Cluster Dollar threshold used to distinguish between Type A and Type B Programs $3,000,000 Auditee qualified as low-risk auditee? ____ Yes ____ No 125 UTAH TRANSIT AUTHORITY Schedule of Findings and Questioned Costs For the year ended December 31, 2022 SECTION II – FINDINGS RELATING TO THE FINANCIAL STATEMENTS, WHICH ARE REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS None reported. SECTION III – FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS INCLUDING AUDIT FINDINGS AS DEFINED IN Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards None reported. 126 SM Other Supplementary Schedules 127 (Continued) Crowe LLP Independent Member Crowe Global INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE AS REQUIRED BY THE STATE COMPLIANCE AUDIT GUIDE Board of Trustees Utah Transit Authority Salt Lake City, Utah Report On Compliance Opinion on State Compliance We have audited the Utah Transit Authority’s (the Authority), a component unit of the State of Utah, compliance with the applicable state compliance requirements described in the State Compliance Audit Guide, issued by the Office of the State Auditor, for the year ended December 31, 2022. State compliance requirements were tested for the year ended December 31, 2022 in the following areas:  Budgetary Compliance  Restricted Taxes and Related Revenues  Fraud Risk Assessment  Government Fees  Cash Management  Public Treasurer's Bond In our opinion, the Authority complied, in all material respects, with the compliance requirements referred to above for the year ended December 31, 2022. Basis for Opinion on State Compliance We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); and the audit requirements of the State Compliance Audit Guide, issued by the Office of the State Auditor. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance. Our audit does not provide a legal determination of the Authority’s compliance with the compliance requirements referred to above. 128 (Continued) Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Authority’s state programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Authority’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and the State Compliance Audit Guide will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Authority’s compliance with the requirements as a whole. In performing an audit in accordance with GAAS and the State Compliance Audit Guide, we  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Authority’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  obtain an understanding of the Authority’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the State Compliance Audit Guide, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 129 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the State Compliance Audit Guide. Accordingly, this report is not suitable for any other purpose. Crowe LLP Indianapolis, Indiana June 9, 2023 130