HomeMy WebLinkAbout2018 Comprehensive Annual Financial Report.pdfU T A H T R A N S I T
A U T H O R I T Y
SM
Comprehensive
Annual Financial Report
For Fiscal Years Ended
December 31, 2018 and 2017
Our Mission
Provide integrated mobility solutions to service life’s connections,
improve public health
and enhance quality of life.
Comprehensive
Annual
Financial Report
For Fiscal Years Ended
December 31, 2018 and 2017
Finance Department
Robert K. Biles
Chief Financial Officer
Troy Bingham
Comptroller
UTAH TRANSIT AUTHORITY
UTAH TRANSIT AUTHORITY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Years Ended December 31, 2018 and 2017
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ……………………………………………………………………………………………………………………………………………. 7
Certificate of Achievement for Excellence in Financial Reporting ………………………………………………………………………. 21
Organizational Chart ……………………………………………………………………………………………………………………………………………. 22
Board of Trustees and Administration …………………………………………………………………………………………………………………. 24
System Map ………………………………………………………………………………………………………………………………………………………… 26
FINANCIAL SECTION
Independent Auditor’s Report …………………………………………………………………………………………………………………………… 28
Management's Discussion and Analysis ……………………………………………………………………………………………………………… 31
Financial Statements
Comparative Statements of Net Position ………………………………………………………………………… 40
Comparative Statements of Revenues, Expenses, and Changes in Net Position ………………………………... 42
Comparative Statements of Cash Flows …………………………………………………………………………………………………………… 43
Comparative Statements of Fiduciary Net Position…………………………………………………………………………………………… 45
Comparative Statements of Changes in Fiduciary Net Position ……………………………………………………………………….. 46
Notes to the Financial Statements …………………………………………………………………………………………………………………… 47
REQUIRED SUPPLEMENTARY INFORMATION SECTION
Schedule of Changes in Net Pension Liability and Related Ratios ………………………………………………… 97
Statement of Required Employer Contributions …………………………………………………………………… 98
SUPPLEMENTARY SCHEDULES
Schedules of Revenues, Expenses and Changes in Net Position Budget and Actual……………………………………………. 101
STATISTICAL SECTION
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 ……………………………………………………………………………………………………………………………………………………. 103
Change in Net Position …………………………………………………………………………………………………………………………………… 103
Revenue History by Source …………………………………………………………………………………………………………………………… 104
Expense History by Function …………………………………………………………………………………………………………………………. 104
Revenue Capacity
These schedules contain information to help the reader assess the Authority's most significant local revenue
sources.
Local Contributions from Other Governments ……………………………………………………………………………………………… 105
Local Transit Sales Tax Rates by County ……………………………………………………………………………………………………… 105
Principal Contributors of Sales Tax ………………………………………………………………………………………………………………. 106
Fares …………………………………………………………………………………………………………………………………………………………….. 106
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 …………………………………………………………………………………………………………………………………… 107
UTAH TRANSIT AUTHORITY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Years Ended December 31, 2018 and 2017
TABLE OF CONTENTS (continued)
STATISTICAL SECTION (continued)
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 ……………………………………………………………………………………………………………… 107
Principal Employers ………………………………………………………………………………………………………………………………………… 108
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in
the Authority's financial report relates to the services the Authority provides and the activities it performs.
Full Time Equivalent Employees ……………………………………………………………………………………………………………………… 108
Trend Statistics ………………………………………………………………………………………………………………………………………………… 109
Operating Indicators and Capital Assets …………………………………………………………………………………………………………… 110
Performance Measures – Bus Service ………………………………………………………………………………………………………………. 111
Performance Measures – Commuter Rail ………………………………………………………………………………………………………… 114
Performance Measures – Demand Response ……………………………………………………………………………………………………. 117
Performance Measures – Light Rail………... …………………………………………………………………………………………………… 120
COMPLIANCE SECTION
Schedule of Expenditures of Federal Awards …………………………………………………………………….. 129
Notes to SEFA…………………………………………………………………………………………………………………………………………………… 132
Schedule of Findings and Questioned Costs………………………………………………………………………………………………………. 134
U T A H T R A N S I T
A U T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Introductory
June 10, 2019
To the Board of Trustees
Utah Transit Authority and
Citizens within the UTA Service Area
We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the Utah Transit
Authority (the Authority) for the fiscal years ended December 31, 2018 and 2017. 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.
This report contains financial statements and statistical data which provide full disclosure of all the material
financial operations of the Authority. The financial statement and statistical information are the
representation of the Authority’s management which bears the responsibility for their accuracy,
completeness and fairness.
The financial statements have been prepared on the accrual basis of accounting in conformance with
generally accepted accounting principles. The Authority is accounted for as a single enterprise fund. This
CAFR is indicative of the Authority’s commitment to provide accurate, concise and high -quality financial
information to the residents of its service area and to all other interested parties.
669 West 200 South
Salt Lake City, Utah 84101
1-888-RIDE-UTA
www.rideuta.com
7|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
The Authority
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 is provided by the
Utah Attorney General’s Office. An organizational chart which illustrates the reporting relationships
follows in the introductory section.
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.
According to the U.S. Census Bureau population
estimates of July 1, 2017, the population of the
Authority’s service area is approximately 2,463,000
and represents 79.4% of the state’s total population.
8|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Current Year Review
Besides building upon its strong legacy of providing service, continuous achievement, and transit
leadership, the year also brought about significant changes to UTA’s governance. The information below
reviews the governance changes as well as providing a glimpse of the year’s accomplishments.
Governance. In November 2018, following statutory changes, oversight of UTA transitioned from a 16-
member voluntary Board of Trustees to 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 appointments are then forwarded to the Senate for confirmation. Once confirmed, an appointee is
sworn in as a Trustee.
The Governor appointed and the Senate confirmed Trustees representing Salt Lake County (four year term),
the district comprised of Davis, Weber, and Box Elder counties (three-year term), and the district comprised
of Utah and Tooele counties (two-year term). After these initial staggered terms are completed, Board
members will serve four-year terms. There are no limits relative to the number of terms a Trustee can serve.
The Governor appointed the Salt Lake County Trustee to serve as Chair of the Board of Trustees.
A nine-member Local Advisory Council (“LAC”) was also created. LAC 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 LAC members are indefinite.
LAC duties include reviewing, approving, and recommending final adoption by the Board of Trustees of
UTA’s service plans, project development plans and funding for all new capital development projects, and
any plan for a transit-oriented development where UTA is involved, engaging with the safety and security
team of UTA to ensure coordination with local municipalities and counties, assisting with coordinated
mobility and constituent services provided by UTA, representing and advocating the concerns of citizens
with the public transit district to the Board of Trustees, consulting with the Board of Trustees on certain
duties given to the Board of Trustees, and setting the compensation packages of the Board of Trustees.
Under the direction of the Board of Trustees, the
Executive Director is charged with certain
responsibilities, some of which require coordination
with, or providing advice to, the Board of Trustees.
Transit Service. In August 2018 UTA began operations
on the new Utah Valley Express (UVX) Bus Rapid
Transit Line in Provo and Orem. UVX serves two
major universities, BYU and UVU; Historic Downtown
Provo; two regional malls, University Place and Provo
Towne Centre, and the Provo and Orem FrontRunner
stations. This line represented a significant increase in
service for the area, with peak-hour headways
UVX Bus
9|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Current Year Review (continued)
improving from every 15 minutes to every 6 minutes. In conjunction with the increase in service and an
expanded pass program with BYU and UVU, ridership on the corridor increased from 2,373 average
weekday boardings to 9,440.
Other improvements to service during this time include replacing MAX limited-stop service on 3500
South with local service on routes 33 and 35 to increase coverage. A new flex route, F605 was added in
Bountiful and Centerville in December, to serve areas that were not previously covered by fixed-route
service. UTA also extended service to the new IHC hospital in Layton and provided additional service to
industrial areas on the west side of Salt Lake City.
In 2018 UTA made multiple adjustments to train and bus schedules due to the implementation of Positive
Train Control on FrontRunner. These schedule adjustments have helped improve the on-time performance
of FrontRunner, even as PTC impacted the end to end running time of the alignment. UTA also
discontinued unproductive service on FrontRunner between Ogden and Pleasant View Stations. This
service was replaced by additional bus service on Route 616.
UTA’s on-time reliability results by mode are shown below. They are near the highest results within the
transit industry.
Mode 2018 2017 2016 2015
Bus 91.41% 92.51% 91.07% 92.19%
TRAX 93.60% 91.91% 94.49% 93.98%
FrontRunner 85.92% 90.92% 89.96% 86.63%
Paratransit 94.74% 96.80% 97.85% 97.92%
Streetcar 99.41% 99.49% 99.50% 98.68%
System Enhancements. Keeping the transit system in a state of good repair is a high priority. During
2018, UTA continued the light rail vehicles overhaul program, inspected all rail bridges, installed new
positive train control hardware at all remaining locations and installed positive train control software on
the FrontRunner North alignment. UTA participated with Dominion Energy in stray current monitoring
and completed an overhead catenary isolation project to help in its stray current mitigation efforts. UTA
also completed curved rail replacements at three locations.
Last year, UTA replaced 24 transit buses, 36 paratransit and FLEX vehicles, and 50 rideshare vans and
also purchased 4 new trolley buses for service expansion. And in conjunction with local government and
transit rider input, over 80 bus stops were upgraded with shelters and other amenities.
As part of the first/last mile connection initiative, 60 ADA ramps, 7 bike lanes, and 2 sidewalk projects
were constructed in 2018 with funding from a federal grant. Another bike lane and a multi-use trail were
started last year and will be completed in the spring of 2019. Additional first/last mile projects to be
constructed in 2019 under this program include bike lanes, pedestrian bridges, trails, sidewalks, and bike
share facilities.
10|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Current Year Review (continued)
Environmental work was completed last year for a BRT line in Ogden. This 6-mile line will connect from
our Ogden FrontRunner station to Weber State University and McKay Dee Hospital. The design phase of
the Ogden BRT project will begin in 2019.
Ridership and Passenger Revenues. System ridership declined from 45.1 million in 2017 to 44.2 million
in 2018. Passenger revenues declined by $107,311 to $52.1 million, a 0.21% decrease from 2017
passenger revenues.
Transit-Oriented Development. Four apartment buildings at the Sandy East Village TOD (“EV”),
including 336 residential units, were sold at a record price for the area. A single-tenant office building at
EV was also sold for a considerable profit. At the South Jordan TOD, work was completed on a 192-
room full-service hotel, and ground was broken on a second 180,000 square foot, preleased office
building. UTA also finalized a ground lease agreement for property at the 3900 South Meadowbrook
TRAX Station, allowing for a 152-unit, mixed-use, mixed-income project.
Financial Stewardship. In March 2018, UTA retired $121 million of its 2017 subordinate bonds and
refunded $3.4 million of its 2007A subordinate bonds through a $116 million bond issue. Net present
value savings from these transactions totaled $5.6 million.
For the year, operating expenses were 0.2% below budget. Variances of budget to actual by expense
category, in millions, are shown below.
Expense Category
Favorable
(Unfavorable)
Parts and Warranty Recovery $2.43
Utilities 1.98
Services 1.67
Wages & Benefits 1.15
All Other Operating (1.89)
Fuel (2.28)
Capitalized Costs (2.50)
Total $0.56
11|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Current Year Review (continued)
For a more complete review of the Authority’s current year financial activities, please refer to section two
which contains the Auditor’s Report, Management’s Discussion and Analysis, the Financial Statements
and accompanying notes.
Utah Transit Authority at Dusk
12|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Future Plans
UTA will continue its partnerships with federal, state, and local governments and stakeholders to identify
and provide innovative, cost-effective, and successful transit solutions for the Wasatch Front community.
Future plans include the following:
UTA Service Choices.
UTA is initiating an update to its Five-Year Mobility Plan with a robust community engagement process
called UTA Service Choices. Through a survey, community leader workshops, public open houses and
more, UTA is soliciting input from the community on how they would like to see UTA prioritize bus
network resources. This process will result in a new bus network plan and vision that will guide future
service changes and investments.
Transit Oriented Development (TOD) projects.
As noted in the Current Year section, there are three active TODs with phases completed or under
construction. Additional projects and development phases in Sandy, West Jordan, South Jordan, South Salt
Lake, and Provo are in various stages of planning and approvals. UTA will continue to work on these and
other TOD projects to ensure that UTA’s TOD goals and standards are met.
State of Good Repair (SOGR).
Recent transportation infrastructure failures in various parts of the United States increased the emphasis to
ensure that future long-term infrastructure maintenance and replacement needs were identified, funded, and
completed in a timely manner. In the next year, UTA will continue to refine its long-term SOGR work plan
with an emphasis on development and approval of a detailed five-year work plan.
Several SOGR infrastructure projects are scheduled for 2019, including: $11.1
million for information technology software and equipment replacement, $10.3
million for the overhaul of our oldest TRAX light rail vehicles, $6.6 million for
TRAX track work at the Delta interlocking, 150 South Main switches and 400
South Main half grand union replacement, $5 million for vehicle replacements,
$4.0 million for FrontRunner engine rebuilds, $2.5 million for facility and safety
equipment, and $1.8 million for rail replacement. All other state of good repair
infrastructure projects are estimated to cost $5.3 million.
Anticipated Capital Projects.
In conjunction with six counties, two metropolitan planning agencies, and
dozens of Utah cities, UTA was notified in late 2016 that it had been awarded
a $20 million TIGER grant which will be matched with local funding to
improve transit access as well as trails and bikeways feeding into the transit
system over the next five years. Projects in 2019 are estimated at almost $15
million with all projects being completed by 2022.
Salt Lake City International Airport is undergoing a $3.6 billion renovation,
including the relocation of its terminal building. The relocation of the terminal
requires the realignment of UTA’s light rail green line, the Airport Line Project, to a more central,
transit-friendly location by 2020 at an estimated cost of $25 million. The project is currently in design
with construction scheduled to start in 2019.
UTA PD Officer Southworth & K9 Kaiya
Winners of the 2018 UPOA Canine Trials
13|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Future Plans (continued)
The Depot District Service Facility will replace the existing aging and undersized Central bus facility,
allowing for growth of bus service, housing up to 150 alternative and standard fuel buses with the ability
to expand to 250 buses in the future. The initial phase of the project constructed the compressed natural
gas fueling and fare collection buildings on the site. Construction is expected to begin in late 2019 with
the facility opening in 2021. The 2019 budget is $27.3 million. Estimated cost for the facility is $75.6
million.
Funded by a grant from Salt Lake County worth $5.9 million, two blocks of the S-Line in South Salt
Lake will be double tracked. This will allow the S-Line to operate at 15-minute headways between the
Sugar House area in Salt Lake City and the City of South Salt Lake. Work on these two blocks will be
completed in 2019.
Rapid growth within the Sandy TOD is accelerating the need to construct a 300-stall parking structure.
Funded by a $2 million STP grant from FHWA and $3.4 million of proceeds from the sale of adjacent
property, the parking structure is anticipated to be completed in 2019.
New funding.
Salt Lake City and UTA entered into an interlocal agreement in early 2019 for additional purchased service
in certain routes within Salt Lake City. This purchased service, in the amount of $5.4 million, provides
for15-minute headways and expanded hours of operation on three bus routes as well as the purchase of ten
additional buses. This new service begins in August 2019.
Salt Lake County Commissioners approved implementation of the 4th quarter sales tax effective January
1, 2019. Beginning July 1, 2019, UTA will begin receiving its 40% share of this sales tax. Sales tax revenue
of $11.4 million was included in the 2019 budget for the last half of 2019 collections. Specific service and
capital uses will be jointly developed by Salt Lake County and UTA in 2019.
Depot District Clean Fuels Technology Center Drawings
14|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Future Plans (continued)
Utah County Commissioners approved implementation of the 4th quarter sales tax effective January 1,
2019. Beginning July 1, 2019, UTA will begin receiving its 40% share of this sales tax. Utah County and
UTA entered into an interlocal agreement in October 2018 which specifies the use of this sales tax. UTA
revenues from this sales tax shall be used in the following priority order:
Make principal and interest payments on Utah County’s 2016 Bonds for the Utah Valley Express.
Pay for the additional operating and maintenance costs of Utah Valley Express with the annual amount
limited to $2.5 million in 2019 with a 2.4% annual growth factor applied thereafter.
Reimbursement to Utah County for principal and interest previously paid on the Utah County 2016
Bonds.
Reimbursement to Utah County for operations and maintenance costs for the Utah Valley Express
previously paid to UTA.
Reimbursement to Utah County for $2.8 million previously paid to UTA pursuant to a September 2013
Design Funding Agreement.
Reimbursement to Utah County for interest accrued on amounts paid to UTA for Utah Valley Express
operations and maintenance costs.
Deposit into a reserve account to provide for early redemption of the Utah County 2016 Bonds.
Once the Utah County 2016 bonds are redeemed, UTA’s revenues may be used for new transit service
and any major transit projects within Utah County. The new transit service and major transit projects
are subject to various consultation and approval requirements under state law and a service level
agreement with Utah County.
Over the next few years, UTA will seek to
build upon its reputation as a successful and
innovative transit organization by increasing
service reliability, strategically adding cost-
effective service, and improving passenger
amenities while maintaining strong financial
management.
S-Line Train
15|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
The Economic Condition and Outlook
The Utah Governor’s Office of Management and Budget in collaboration with the David Eccles School of
Business at the University of Utah, prepared the 2019 Economic Report to the Governor. The Economic
Report focuses on an estimated summary of the previous year and a forecast for the forthcoming year. The
primary goal of the report is to improve the reader’s understanding of the Utah economy. The report is a
collaborative effort of both public and private entities which devote a significant amount of time to this
report ensuring that it contains the latest economic and demographic information. Below are several
excerpts from the Economic Report. For more detailed information, the entire report is available on the
Gardner Policy Institute’s website at http://gardner.utah.edu.
2018 Overview
Employment, Wages, and Labor Force
Continued strong labor market statistics in 2018 were a welcome surprise for an economy that seemed
stretched to its limit at the close of 2017. Anticipated labor supply shortages were expected to cause some
slowing for 2018, yet the year continued as a solid extension of 2017 trends.
The state’s labor force grew by roughly 2.8 percent over the year, stretching its ranks to over 1.6 million
in order to meet the growing demands of Utah’s employers. Prime economic conditions drew new
entrants to the labor force but did not raise the rate at which adults in the state participated in the labor
market. Labor force participation remained unchanged from last year at 69.4 percent and still below the
state’s pre‐Great Recession rate of 72.1 percent. Given that 2017 saw a small surge in the participation
rate, it was anticipated that the acceleration would continue through 2018.
As expected with a growing economy, the unemployment rate remained low throughout the year, ending
at an average of 3.1 percent which equates to fewer than 50,000 unemployed individuals per month
throughout the year. Demand for skilled workers was especially high. Utahans with a Bachelor’s degree
or higher experienced an unemployment rate well under 2.0 percent in 2018.
Changes to federal tax policy appear to have had a positive effect on workers’ paychecks. The average
annual wage for payroll employees in the state was $47,441, a $1,715 increase from the prior year and a
full percentage point higher than the prior year’s increase.
Due to the challenges of spreading the economic boom
throughout all corners of our state, executive leadership
called for economic development attention to be given to
state’s rural counties with the specific goal of creating
25,000 jobs therein by 2020. At the close of 2018 the
state remained ahead of the pace necessary to reach the
goal, with over 18,000 jobs having been created since the
goal’s inception in 2017. While the larger rural counties
naturally have led the way in creating the jobs, key
shoulder counties such as Wasatch have outperformed,
contributing more than their relative share, mainly as the
result of spillover from the booming neighboring urban
counties.
16|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
The Economic Condition and Outlook (continued)
Personal Income
Utah’s total personal income in 2018 was an estimated $143.1 billion, a 6.1 percent increase from $134.8
billion in 2017. Utah's estimated 2018 per capita income was $45,174, up 3.9 percent from $43,459 in
2017. Both measures of estimated personal income growth in Utah were higher in 2018 than in 2017. In
2017, total personal income grew by 5.0 percent and per capita income grew by 3.0 percent. Additionally,
Utah’s 2018 estimated personal income growth and per capita personal income growth were higher than
national averages.
Taxable Sales
In 2018, total taxable sales in Utah increased by approximately 6.9 percent to an estimated $65.2 billion.
A labor market that is among the best in the nation and solid gains in wages and personal income were
among the primary drivers of growth. High levels of both consumer and business confidence and a strong
tourism industry were also factors propelling the economy. Each major component of Utah taxable sales
increased in 2018. Business investment increased the most at 9.8 percent, followed by retail sales at 6.0
percent and taxable services at 5.2 percent.
2019 Outlook
Employment, Wages, and Labor Force
Lack of labor supply will continue as a point of concern in 2019 and may likely cause job growth to slow
unless labor force participation is stimulated or population in migration increases. Housing affordability
could influence both but in dissimilar ways. The need to increase household income to afford the
purchase of a home could draw more individuals into the labor market. In migration, on the other hand,
could put more upward pressure on housing prices, eventually making further in‐migration a costly trend.
Wages should further rise as employers continue to struggle filling positions, although 2019 should not be
as strong as 2018 which was stimulated by federal tax cuts.
Policy decisions at the national level will continue to be a significant, yet unknown factor in predicting
the economic trajectory for Utah in 2019. Trade policy is in flux, with tariffs now an emerging tool for
shaping relationships between the United States and our trade partners. How that plays out economically
is a question yet to be answered.
Personal Income
Utah’s total personal income in 2018 is estimated to
have grown 6.1 percent; this is up from 5.0 percent in
2017, and higher than the estimated national average of
4.6 percent. The state’s estimated 2018 per capita
personal income growth of 3.9 percent is also higher
than the state’s growth in 2017, and higher than the
estimated 2018 per capita income growth nationwide of
3.5 percent.
In 2019, Utah looks to remain one of the top labor
markets and centers for growth in the nation. The state Downtown Salt Lake City
17|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
The Economic Condition and Outlook (continued)
has consistently experienced some of the fastest employment growth in the country since 2015, and this
trend is likely to continue into 2019. With the unemployment rate hovering around 3.0 percent, and likely
to fall further, businesses will face increased competition for a qualified workforce. This dynamic should
lead to higher wages and put upward pressure on personal income.
While personal income should continue to expand in Utah in 2019, some headwinds may emerge. If the
state’s already tight labor market is unable to draw more individuals into the labor force, the lack of
workers could act as a constraint on growth.
At the national level, worries over an economic slowdown are growing, and faster‐than‐anticipated
interest rate hikes by the Federal Reserve could cool investment and overall economic activity in the state.
With headwinds in mind, preliminary forecasts for Utah in 2019 predict strong total personal income
growth above the national average; though growth will likely be slower than in 2018.
Taxable Sales
Utah’s strong labor economy should drive another year of solid growth in Utah taxable sales. Total
taxable sales are forecasted to increase by 6.0 percent to $69.1 billion in 2019. However, given that we
are late in the business cycle, the likelihood of a slowdown or downturn is increasing. The slowing in the
rate of growth for total taxable sales from 6.9 percent in 2018 to 6.0 percent in 2019 communicates this
potential risk.
Senate Bill 2001, passed in the 2018 Second Special Session, will significantly affect taxable sales in
2019. This legislation, which followed the South Dakota v. Wayfair Supreme Court decision, requires
remote sellers without physical nexus in the state to remit sales tax beginning January 1, 2019. The
forecasted increase in retail sales of 9.2 percent in 2019 includes the increase in taxable sales expected
from this legislative change. Senate Bill 2001 also created a sales tax exemption for purchases of
manufacturing and mining equipment with an economic life of less than three years. Exempting purchases
of these items from sales and use tax is expected to significantly reduce taxable business investment
purchases in 2019. As a result, taxable business investment purchases is forecasted to decline by 6.4
percent in 2019. Overall impacts to total taxable sales due to Senate Bill 2001 are expected to be minimal
as these two changes approximately offset each other. Taxable services is expected to have another year
of consistent growth, increasing by an estimated 5.4 percent.
Forecasted growth in 2019 is barring any significant changes in the broader macroeconomic environment.
Taxable sales forecasts are sensitive to changes in economic and political conditions. Specific conditions
with the potential to impact 2019 taxable sales are primarily external in nature and include, but are not
limited to, monetary and tax policy decisions, national political climate, commodity prices, and
geopolitical instability. Any significant changes in these and other economic or political conditions could
result in changes to employment, disposable income, and consumer confidence, which will in turn affect
Utah taxable sales.
18|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Debt Administration
The Authority has sold Sales Tax Revenue Bonds to partially finance the purchase and construction of
various capital assets, and to refund other outstanding bond issues. Payment of debt service on the
outstanding bonds is secured by a pledge of sales tax revenues and other revenues of the Authority
In February 2018, the Authority issued its $83,765,000 Sales Tax Revenue Bonds, Series 2018 to fund the
construction or replacement of transit capital assets including positive train control, relocation of the
Airport TRAX station, the Utah Valley Express bus rapid transit system, Phase 1 of the Depot District
maintenance facility, a bus maintenance facility in Tooele County, and replacement of two TRAX
interlocking systems. True interest cost for the bonds was 3.597%.
In February 2018, the Authority issued its $115,540,000 Subordinated Sales Tax Revenue Refunding
Bonds, Series 2018. These bonds were issued to refund the then outstanding balance of its $132,329,109
Series 2007A Subordinate Lien Capital Appreciation Bond in the amount to $3,415,000 and to retire the
then outstanding balance of its $120,575,000 Sales Tax Revenue Refunding Bonds, Series 2017 in the
amount of $120,575,000. True interest cost for the bonds was 3.694%.
As of December 31, 2018, the Authority had $2,127,656,498 in outstanding bonds.
For a more complete review of the Authority’s financing activities please refer to Section Two which
contains the Auditors Report, Management’s Discussion and Analysis, the Financial Statements and
accompanying notes.
Independent Audit
State law requires that the Authority cause an independent audit to be performed on an annual basis. The
Authority’s independent auditors, Keddington and Christensen, LLC, have rendered an unqualified audit
report on the Authority’s financial statements. The auditor’s report on the financial statements with
accompanying notes is included in the Financial Section of the Comprehensive Annual Financial Report.
The Authority also has a single audit of all federally funded programs administered by this agency as a
requirement for continued funding eligibility. The Single Audit is mandatory for most local government
including the Utah Transit Authority.
19|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Utah Transit Authority for its
Comprehensive Annual Financial Report for the fiscal year ended December 31, 2017. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both general accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments
The preparation of the Comprehensive Annual Financial Report on a timely basis requires dedicated extra
efforts of the staff of several departments. I wish to express my appreciation to all department staff and
managers who contributed to this report with special recognition to Teri Black, Executive Assistant; Troy
Bingham, Comptroller; the Accounting Department Employees of UTA; Blair Lewis, Graphic Artist; and
Eric Vance, Photographer.
Sincerely,
Robert K. Biles
Chief Financial Officer
Utah Transit Authority
20|Page
21|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY
Year Ended December 31, 2018 and 2017
E
x
Revised 4/10/2019
Organizational Chart
UTA
Board of Trustees
Budget
Innovative
Mobility
Facilities
Maintenance
Police Claims
Fares
Asset Management Supply ChainCustomer Service
Comptroller &
Accounting
Chief Finance
Officer
Chief People
Officer
Chief
Communications
& Marketing
Officer
Regional General
Managers and
Operations
Communications/ Public
Relations & Marketing
Chief Service
Development
Officer
Workforce Planning &
Talent Acquisition
HR Services & Labor
Relations
Organizational
Effectiveness
Total Rewards
Real Estate and TOD
Planning
Capital
Development
Chief Internal
Auditor
Government
Relations
Strategic Board
Operations
Chief Operating
Officer
Compliance
Legal Services
(Attorney General's
Office)
Operations Analytics
& Solutions
∙Civil Rights
∙ADA
∙Title VI
∙DBEExecutive Director
Safety & Security
Information
Technology
22|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
UTA Board of Trustees
Carlton Christensen
Board Chair
Beth Holbrook Kent Millington
23|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Board of Trustees and Administration
Board of Trustees
BOARD CHAIR …………………………………………………………………….…Carlton Christensen
BOARD TRUSTEE ………………………………………………………………….……...Beth Holbrook
BOARD TRUSTEE …………………………………………………………………..……Kent Millington
Officers of the Authority
BOARD CHAIR ………………….…………………………………………………....Carlton Christensen
INTERIM EXECUTIVE DIRECTOR ……………………………………………..………….Steve Meyer
SECRETARY/TREASURER AND CHIEF FINANCIAL OFFICER ……………..………Robert K. Biles
COMPTROLLER…………………………………………………………………………….Troy Bingham
Administration of the Authority
INTERIM EXECUTIVE DIRECTOR ……………………………………………………...…Steve Meyer
CHIEF OF INTERNAL AUDIT ………………………………………………………….Riana de Villiers
CHIEF COMMUNICATIONS AND MARKETING OFFICER …………….…………Nichol Bourdeaux
CHIEF FINANCIAL OFFICER …………………………………………………………... Robert K. Biles
CHIEF OPERATING OFFICER …………….………………………………………………Eddie Cumins
CHIEF PEOPLE OFFICER ………………………………………………………………….. Kim Ulibarri
CHIEF SERVICE DEVELOPMENT OFFICER …………………………………………Michael DeMers
24|Page
UTAH TRANSIT AUTHORITY
INTRODUCTORY SECTION
Year Ended December 31, 2018 and 2017
Advisory Council Committee Members
Board of Trustees
Name………………………………………………………………………………..Appointing Authority
Jeff Acerson ……………………………………………………………………………..Utah County COG
Jacqueline Biskupski ……………………………………………………………………...…Salt Lake City
Leonard Call …………………………………………………………………………….………Davis COG
Erik Craythorne ………………………………………………………………………….……..Weber COG
Karen Cronin …………………………………………………………………...…Box Elder/Tooele COGs
Julie Fullmer …………………………………………………………………….………Utah County COG
Robert Hale……………………………………………………………………….…Salt Lake County COG
Clint Smith……………………………………………………………………….………….Salt Lake COG
Troy Walker …………………………………………………………………………...……Salt Lake COG
25|Page
BOX ELDER
Brigham City
GREAT
SALT
LAKE
UTAH
LAKE
SUMMIT
WEBER
DAVIS
SALT
LAKE
MORGAN
UTAH
TOOELE
UTA BUS & RAIL
SYSTEM MAP
DECEMBER 2018
0 10 205
Miles
FRONTRUNNER
TRAX
BUS
COUNTIES
Pleasant View
Ogden
Roy
Layton
Farmington
Bountiful
Salt Lake City
West Valley
Draper
Eagle Mountain
Provo
Santaquin
Grantsville
Tooele
Park City
Legend
26|Page
U TA H T R A N S I T
AU T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Financial
27|Page
INDEPENDENT AUDITOR’S REPORT
To the Board of Trustees,
Utah Transit Authority
Salt Lake City, Utah
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities, discretely presented
component unit, and the remaining fund information of Utah Transit Authority (the “Authority”),
component unit of the State of Utah, as of and for the years ended December 31, 2018 and 2017, and the
related notes to the financial statements, which collectively comprise the Authority’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit s. We conducted
our audits in accordance with 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. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements 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 entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Telephone (801) 590-2600 1455 West 2200 South, Suite 201
Fax (801) 265-9405 Salt Lake City, Utah 84119 28|Page
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the business-type activities, discretely presented component unit, and the
remaining fund information of Utah Transit Authority, as of December 31, 2018 and 2017, and the
respective changes in net position and, where applicable, cash flows thereof for the years then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
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 schedule of contributions, and
notes to the required supplementary information as listed in the table of contents be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential p art 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 s tatements, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Utah Transit Authority’s basic financial statements. The introductory section and statistical
sections as listed in the table of contents are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The schedule of expenditures of federal awards is presented
for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , and
is also not a required part of the basic financial statements.
The supplemental budget to actual schedule, and schedule of expenditures of federal awards as listed in the
table of contents are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such 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 supplemental budget to actual
schedule, and schedule of expenditures of federal awards are fairly stated in all material respects in relation
to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
29|Page
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2019, 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 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 i nternal 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.
Keddington & Christensen, LLC
Keddington & Christensen, LLC
Salt Lake City
June 4, 2019
30|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
This section of Utah Transit Authority’s (UTA) annual financial report presents our discussion and analysis of UTA’s
financial performance during the fiscal years ended on December 31, 2018 and December 31, 2017.
Following this Management Discussion and Analysis are the basic financial statements of UTA, together with the notes
thereto, which are essential to a full understanding of the information contained in the financial statements.
FINANCIAL STATEMENTS
UTA’s financial statements are prepared on an accrual basis in accordance with accounting principles generally accepted
in the United States of America (GAAP), promulgated by the Governmental Accounting Standards Board. UTA reports
as a single enterprise fund. Revenues are recognized when earned and expenses are recognized in the period in which
they are incurred. See the notes to the financial statements for a summary of UTA’s significant accounting policies.
CONDENSED STATEMENTS OF NET POSITION
2018 Results
In May 2018, the Utah Transit Authority sold $83,765,000 of Senior Sales Tax Revenue bonds, Series 2018 (the “Series
2018 Bonds”). This bond transaction increased the amount held in escrow and the corresponding restricted net position
of UTA. The remaining amount at the end of 2018 in escrow and restricted for future capital project expenses was $51.7
million.
Every year the pension is evaluated by an actuary that determines the future cost in the pension based on the plan described
in Footnote 7 of these financial statements. Due to an aging workforce that is growing closer to retirement and the
increased year over year salaries increases of these employees, the assumption of the pension have increased $19.0
million. Advance refunding gains from previous refunding continue to be amortize, so the net increase in the deferred
outflow of resources only reflects a $10.7 million increase.
The pension’s investment rate of return decreased significantly from an 18.0% rate of return for 2017 to -7.8% for 2018.
This resulted in $8.6 million decrease in deferred inflow of resources in 2018.
2018 2017 Difference
Percent
difference 2016
Assets
Current and other assets 395,157,482$ 350,629,354$ $ 44,528,128 13%305,969,763$
Capital assets, net 3,089,897,011 3,068,709,875 21,187,136 1%3,104,597,334
Total assets 3,485,054,493 3,419,339,229 65,715,264 2%3,410,567,097
Deferred outflows of resources 120,421,199 109,761,191 10,660,008 10%116,778,163
Liabilities
Current liabilities 100,621,113 101,099,455 (478,342)0%71,620,455
Long-term liabilities 2,522,176,260 2,422,375,239 99,801,021 4%2,387,091,356
Total liabilities 2,622,797,373 2,523,474,694 99,322,679 4%2,458,711,811
Deferred inflows of resources 3,383,699 11,948,307 (8,564,608)-72%5,489,735
Net position
Net investment in capital assets 827,646,243 894,275,843 (66,629,600)-7%924,260,135
Restricted 132,734,222 89,153,732 43,580,490 49%67,415,969
Unrestricted 18,914,155 10,247,844 8,666,311 85%71,467,610
Total net position 979,294,620$ 993,677,419$ (14,382,799)$ -1%1,063,143,714$
31|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
CONDENSED STATEMENTS OF NET POSITION (continued)
2018 Results (continued)
An increase in unrestricted net position over time may serve as a useful indicator of a government entity’s financial
position. As of December 31, 2018, UTA’s unrestricted net position increased $8.7 million from the December 31, 2017
net position.
2017 Results
On December 29, 2017, Utah Transit Authority direct placed $120,575,000 Sales Tax Revenue Refunding Bonds, Series
2017 (the “2017 Subordinate Bonds”). This bond transaction involved the refunding of parts of the 2012 UTA
Subordinate Bonds. The primary purpose for issuing the 2017 Refunding, was to take advantage of advance refunding
some of UTA’s bond portfolio before the tax law changed in 2018. It should be noted that the true interest cost of the
2017 Bonds was 2.41%, while the true interest cost on t he refunded issues were 4.048%. UTA’s intention is to refund
the 2017 bonds in March 2018 for an overall net present value savings.
UTA conducted a biennial inventory in fall of 2017. The inventory resulted in 1,553 records ($87.0 million of original
asset value) being removed from the books with a net book value of $8.9 million. Sales of land, buildings, and vehicles
during the normal course of the year accounted for the remaining $27.9 million in reductions to capital assets in 2017 and
$17.9 million reduction to accumulated depreciation. Capital projects at UTA added $134.8 million for 2017 while
depreciation decreased remaining assets by $149.4 million. The net effect of these transactions was a decrease in capital
asset of $35.9 million.
CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
2018 2017 Difference
Percent
difference 2016
Operating revenues 54,464,392$ 54,525,870$ $ (61,478)0%52,891,021$
Operating expenses 401,161,541 427,777,940$ (26,616,399)-6%422,543,342
Excess of operating expenses
over operating revenues
(346,697,149) (373,252,070) 26,554,921 7%(369,652,321)
Non-operating revenues 359,435,799 334,913,449$ 24,522,350 7%313,184,316
Non-operating expenses 91,000,388 88,190,962$ 2,809,426 3%86,226,784
Income (loss) before contributions (78,261,738) (126,529,583) 48,267,845 38%(142,694,789)
Capital contributions 63,878,939 57,063,288$ 6,815,651 12%20,164,612
Change in net positon (14,382,799)$ (69,466,295)$ 55,083,496$ 79%(122,530,177)$
Total net position, January 1 993,677,419$ 1,063,143,714$ 1,185,673,891$
Total net position, December 31 979,294,620$ 993,677,419$ 1,063,143,714$
32|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
SUMMARY OF REVENUES FOR THE YEAR ENDED DECEMBER 31
2018 Results
Since UTA does not have the ability to tax, it relies on contributions dedicated by other governments for the purpose of
mass transit in the form of sales tax as supplementary income to operations and development. As Utah’s economy
continues to improve and unemployment rates continue to decrease, this sales tax amount continues to increase. In 2018,
UTA recognized $17.2 million (6%) in increased contributions of sales tax.
Interest income has increased $3.7 million due to a favorable rate of return environment and UTA having more funds to
be able to invest at these terms. UTA continues to have positive returns on its current investments at transit oriented
developments and those transactions in 2018 represent $1.5 million of the increase from 2017.
Other revenues reflects the final sales and divestitures from other transit-oriented development agreements which vary
from year to year. This year’s increase can be attributed to sale of the Sandy East Village apartments for $4.7 million at
our Sandy Civic Center TRAX station in Sandy.
Capital contributions increased by $7.0 million due to the state and local participation in the construction of the Provo-
Orem Bus Rapid Transit line by donating the land under the dedicated lanes to UTA worth $20.1 million at the time of
the exchange.
2017 Results
Passenger revenue showed a slight increase of $1.5 million (3%) in 2017. In 2017 UTA released it new mobile
application for purchasing fares and continued consumer education campaigns on fare types that were already existing.
This campaign has seen significant success in converting cash customers to electronic fare pay cards or the mobile
application.
Since UTA does not have the ability to tax, it relies on contributions dedicated by other governments for the purpose of
mass transit in the form of sales tax as supplementary income to operations and development. As Utah’s economy
continues to improve and unemployment rates continue to decrease, this sales tax amount continues to increase. In 2017,
UTA recognized $20.8 million (8%) in increased contributions of sales tax.
2018 2017 Difference
Percent
difference 2016
Operating
Passenger revenue 52,051,892$ 52,159,203$ $ (107,311)0%50,624,354$
Advertising 2,412,500 2,366,667 45,833 2%2,266,667
Total operating revenue 54,464,392 54,525,870 (61,478) 0%52,891,021
Non-operating
Contributions from other gov'ts (sales tax)282,933,591 265,770,775 17,162,816 6%245,008,417
Federal noncapital assistance 61,820,668 62,313,994 (493,326)-1%63,334,769
Interest income 6,525,872 2,873,787 3,652,085 127%1,732,939
Other 8,155,668 3,954,893 4,200,775 106%3,108,191
Total non-operating revenue 359,435,799 334,913,449 24,522,350 7%313,184,316
Capital contributions 63,878,939 57,063,288 6,815,651 12%20,164,612
Total revenues 477,779,130$ 446,502,607$ 31,276,523$ 7%386,239,949$
33|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
SUMMARY OF REVENUES FOR THE YEAR ENDED DECEMBER 31 (continued)
2017 Results (continued)
In 2017, the investment market has been favorable. Treasury management made a concerted effort to have more funds
available for investment transactions even with declining cash balances in escrow so interest income increased in 2017
by almost $1.1 million (66%).
With the completion of the major rail lines, UTA has continued to assess property and liquidate land no longer needed to
support UTA’s purpose. In 2017, UTA sold approximately 22.15 acres of land which contributed approximately $2.8
million in other revenue.
SUMMARY OF EXPENSES FOR THE YEAR ENDED DECEMBER 31
SUMMARY OF EXPENSES FOR THE YEAR ENDED DECEMBER 31
2018 Results
The operational cost for all direct service decreased in 2018 by $26.8 million as a result of a change in accounting estimate
for depreciation that created a decrease in the current year depreciation expense (see Note 4 of the financials for more
information on the current year impact).
Personnel cost for UTA in 2018 was 65.2% of total operating expense (including capital maintenance projects) less
depreciation. Overall, personnel cost rose by $19.4 million (10.3%) in 2018. Operating expense less personnel cost
increased by $22.7 million (25.5%), all of which is the result of increased system maintenance costs. Within operating
expense, administration expense increased by $8.1 million (26%), due to increased personnel, maintenance of the
information systems infrastructure, increased risk management expense, and general pension related expense increases.
Capital maintenance projects increased by $18.1 million (88%), due to unreimbursed UDOT charges related to Provo-
Orem BRT ($10.3 million), TIGER project for other communities ($5.6 million) that are new in 2018, and Light Rail
vehicle damage repairs ($1.8 million).
2017 Results
Overall expenses for 2017 increased $5.2 million or 1% increase from 2016. Most differences within Administration and
Operating Support between 2017 and 2016 can be attributed to a reorganization of department personnel that occurred in
September 2017 to align department functions and leadership to accomplish UTA’s goals and objectives. A significant
decrease in rail services can be attributed to no significant reclassification of capital construction in progress back to rail
operations and maintenance in 2017.
2018 2017 Difference
Percent
difference 2016
Operating expenses
Bus service 96,719,747$ 88,928,063$ $ 7,791,684 9%85,841,973$
Rail service 75,157,087 72,895,607 2,261,480 3%84,165,069
Paratransit service 21,857,632 19,572,367 2,285,265 12%19,341,116
Other services 3,056,191 2,982,176 74,015 2%2,949,643
Operations support 45,557,749 41,932,571 3,625,178 9%37,831,682
Administration 39,593,947 31,423,844 8,170,103 26%37,636,519
Major investment studies - - - 1,204,124
Capital Maintenance Projects 38,654,111 20,602,425 18,051,686 88%-
Depreciation 80,565,077 149,440,887 (68,875,810)-46%153,573,216
Total operating expenses 401,161,541$ 427,777,940$ (26,616,399)$ -6%422,543,342$
34|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
SUMMARY OF EXPENSES FOR THE YEAR ENDED DECEMBER 31 (continued)
2017 Results (continued)
Those significant but infrequent non-capital expenses are now being captured in newly created category of Capital
maintenance projects, instead of directly attributed to each mode of transit.
Like in most service agencies, personnel is the largest expense. Personnel cost for UTA in 2017 was 67.9% of total
operating expense less depreciation. Overall, personnel cost rose by $11.4 million (6.4%) in 2017. Operating expense
less personnel cost decreased by $1.2 million (1.3%) due changes in spending that can occur from department to
department and year to year.
CAPITAL ASSET ACTIVITY
**Readers wanting additional information should refer to Note 4 in the notes to the financial statements**
2018 Results
In 2018, UTA more clearly defined what constituted an asset and relooked at the prior asset category assignments and
asset useful lives. This resulted in large transfers of assets between categories and adjusted accumulated depreciation for
each category of capital assets (see note 4 for more details).
UTA expended approximately $86.0 million for capital assets in 2018 that increased construction in progress. UTA
finished the development and construction of the Provo-Orem Bus Rapid Transit (BRT) route and associated maintenance
facilities, Positive Train Control, the relocation of the Airport TRAX Station design, the double tracking of streetcar, the
replacement of at TRAX bridge at 7200 South, and several other projects designed to enhance the system and passenger
experience which added $181.8 million to various asset categories in 2018.
UTA retired or disposed of $23.9 million in historical asset value through land sales and buses and equipment auctions.
The depreciable assets disposed in 2018, removed $19.7 million of accumulated depreciation from the capital asset
records.
2018 2017 Difference
Percent
difference 2016
Land 440,917,126$ 425,736,158$ $ 15,180,968 4%444,428,115$
Construction in process 109,972,902 205,102,231 (95,129,329)-46%98,584,168
Infrastructure 2,515,426,407 2,528,679,092 (13,252,685)-1%2,660,455,033
Building and building improvements 302,473,214 132,444,199 170,029,015 128%-
Revenue vehicles 753,650,299 757,025,778 (3,375,479)0%768,632,495
Leased revenue vehicles 60,365,705 60,365,705 -
Equipment 144,817,612 326,289,349 (181,471,737)-56%-
Land improvements 79,140,497 12,300,402 66,840,095 543%-
Leased land improvements 75,804,461 75,804,461 -
Intangibles 9,585,417 22,537,996 (12,952,579)-57%-
Other - - - 420,530,145
Accumulated depreciation and amortization (1,402,256,629) (1,341,405,330) (60,851,299)5%(1,288,032,621)
Total capital assets, net 3,089,897,011$ 3,068,709,875$ 21,187,136$ 1%3,104,597,335$
35|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
SUMMARY OF CAPITAL ASSET ACTIVITY (continued)
2017 Results
UTA expended approximately $135.1 million for capital assets in 2017. Approximately $28.3 million was expended for
revenue vehicle replacements. This program included forty-three (43) buses, seven (7) ski buses, thirty-six (36) Rideshare
vans, and twenty-three (23) paratransit vans. In 2017, UTA expended $118.0 million on major strategic projects. This
included the development and construction of the Provo-Orem Bus Rapid Transit (BRT) route, Positive Train Control,
the Depot District (fueling and maintenance facility to support bus operations), and several other projects designed to
enhance the system and passenger experience.
DEBT ADMINISTRATION
Bond rating agencies have rated UTA based on the types of bonds issued and an analysis of several financial conditions
and influencing factors. The following chart summarizes those ratings by bond and agency:
A. Ratings Summary
Effective: May 2018 Standard
&Poor's
Fitch
Moody's
Senior Lien Bonds Current rating AAA AA Aa2
Outlook Stable Stable Stable
Subordinate Lien Fixed Rate Bonds Current rating A+ AA A1
Outlook Stable Stable Stable
Effective: August 2017 Standard
&Poor's
Fitch
Moody's
Senior Lien Bonds Current rating AAA AA Aa2
Outlook Stable Stable Stable
Subordinate Lien Fixed Rate Bonds Current rating A+ AA A1
Outlook Stable Stable Stable
**Readers wanting additional information should refer to Note 8 in the notes to financial statements**
2018 Debt Issuance
During 2018, UTA issued the following subordinated and senior lien bonds:
Senior Sales Tax Revenue, Series 2018: $83,765,000
Subordinated Sales Tax Revenue Refunding Bonds, Series 2018: $115,540,000
Proceeds from the Series 2018 Senior Lien bond are being used for new capital projects financing.
Proceeds from the Series 2018 Subordinated Lien bond issue were used to refund the Series 2017
revenue bonds ($112.1 million) and Series 2007A revenue bonds ($3.4 million).
36|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
SUMMARY OF DEBT ADMINISTRATION ACTIVITY (continued)
2017 Debt Issuance
During 2017, UTA issued the following bonds:
2017 Series Subordinate Lien revenue bonds: $120,575,000
Proceeds from the Series 2017 Subordinate Lien bond issue were used to refund the majority of refundable
maturities of the Series 2012A revenue bonds.
SIGNIFICANT ACTIVITIES
2018 Results
The governance of UTA was changed in 2018 as part of the State of Utah legislative session, and the new board started
in the fall of 2018. This legislative change has allowed for more sales tax allocation to transit from counties in UTA’s
service area. The county commissioners in both Utah and Salt Lake County approved 4th quarter sales tax increases for
their jurisdictions and UTA is scheduled to start receiving its 40% share of those sales taxes funds in the fall 2019.
Transit Service - On time performance for 2018 was 92.1%.
Transit-oriented Development (TOD) –
Jordan Valley TOD construction has started on a new Starbucks
Sandy East Village TOD sold the first phase of apartment buildings and the office building.
3900 South Meadowbrook TRAX Station TOD broke ground for the mixed-used office and residential
facility that is already long-termed leased
UTA provided special event support for the following events:
Warriors over the Wasatch Air Show
Utah Jazz games
University of Utah events
Brigham Young University events
Weber State events
Utah Valley University events
LDS Church General Conferences
The Salt Lake City Marathon
Other special events
2017 Results
Transit Service - In 2017, UTA continued to optimize and improve the transit system to provide opportunities for more
customers. UTA offered 15-minute service and extended hours to the State Capitol building during the 2017 legislative
session, leading to a 69.5% increase in ridership on Route 500 during the session.
37|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
SIGNIFICANT ACTIVITIES (continued)
2017 Results (continued)
In Weber and Davis Counties, UTA replaced three low-performing routes with Paratransit and Vanpool service. The funds
saved from these routes were combined with Proposition 1 money to implement planned service improvements to five
routes in the area, including evening and weekend service. In addition, UTA continued to use Proposition 1 funds to
improve bus stop access and amenities in Weber and Davis counties.
UTA’s overhaul of ski service in Salt Lake County was completed in late 2016 but yielded a 25% increase in total ridership
during the 2016-2017 ski season. UTA further refined ski service in 2017 to address overcrowding during high-demand
times of day.
On time performance for 2017 was 91.7%.
Transit-oriented Development (TOD) - Two apartment buildings at the Jordan Valley TOD, including 270 residential
units, were sold at a record price for the area. At the Sandy East Village TOD, construction was completed on a 150,000
square foot office building and a fourth residential building. At the South Jordan TOD, work was completed on the first
of two 180,000 sf office buildings, and work continued on a 192-room full-service hotel.
Customer Service - UTA’s new mobile application was launched in late September 2017 and by the end of the year was
selling $20,000 in tickets each month. UTA provided special event support for Utah Jazz games, University of Utah and
Brigham Young University events, LDS Church General Conferences, the Salt Lake City Marathon, Salt Lake City Fan
X, the Utah Arts Festival, and other special events.
Environment – As of December 31, 2017 over 72% of UTA’s transit bus fleet are clean diesel, clean diesel electric hybrid
and CNG. Buses, Frontrunner, TRAX and vanpool services eliminated more than 2,300 tons of air pollutants and 82,000
tons of greenhouse gas emissions from commuters who chose to ride transit verses driving.
RIDERSHIP COMPARISON
The following information provides an annual comparison of ridership by service for years 2018, 2017, and 2016.
2018 Results
In 2018, UTA realize a 2.0% decrease in overall ridership from 2017. Commuter Rail and Paratransit services showed
slight increases in 2018 as demand for these services. Light Rail and Vanpool services experienced a decrease in ridership
in 2018.
Source: National Transit Database
2018 2017 Difference
Percent
difference 2016
Bus service 19,624,936 19,748,489 (123,553)-1%20,033,242
Light rail service 17,899,715 18,823,578 (923,863)-5%19,220,024
Commuter rail service 5,082,168 4,854,099 228,069 5%4,545,849
Paratransit service 394,816 385,969 8,847 2%389,019
Vanpools 1,174,696 1,264,410 (89,714)-7%1,333,781
Total ridership 44,176,331 45,076,545 (900,214) -2%45,521,915
38|Page
UTAH TRANSIT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
Years Ended December 31, 2018 and 2017
RIDERSHIP COMPARISON (continued)
2017 Results
In 2017, UTA realized a 1.0% decrease in overall ridership from 2016. However, commuter rail’s attraction to the business
commuter community resulted in a 6.8% increase in ridership. Ridership on all other transit declined.
39|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
COMPARATIVE STATEMENTS OF NET POSITION
2018 2017
ASSETS
Current Assets:
Cash and cash equivalents $103,037,555 $85,459,300
Receivables
Contributions from other governments (sales tax)50,725,259 49,421,054
Federal grants 24,146,542 44,106,915
Other 4,443,339 17,002,669
State of Utah 9,930,141 -
Parts and supplies inventories 35,551,784 31,689,267
Prepaid expenses 2,842,013 2,783,802
Total Current Assets 230,676,633 230,463,007
Noncurrent Assets:
Restricted assets (Cash equivalents and investments)
Bonds funds 47,668,250 42,768,329
Interlocal agreements 7,040,441 6,355,541
Represented employee benefits 4,133,950 3,894,919
Escrow funds 66,174,772 28,754,015
Self-insurance deposits 7,716,809 7,534,841
Total restricted assets 132,734,222 89,307,645
Non-Depreciable Capital Assets:
Land 440,917,126 425,736,158
Construction in progress 109,972,902 205,102,231
Total Non-Depreciable Capital Assets 550,890,028 630,838,389
Depreciable Capital Assets:
Land improvements 79,140,497 12,300,402
Leased Land Improvements 75,804,461 -
Building and buildig improvements 302,473,214 132,444,199
Infrastructure 2,515,426,407 2,528,679,092
Revenue vehicles 753,650,299 757,025,778
Leased revenue vehicles 60,365,705 -
Equipment 144,817,612 326,289,349
Intangibles 9,585,417 22,537,996
Total Depreciable Capital Assets 3,941,263,612 3,779,276,816
Total Capital Assets 4,492,153,640 4,410,115,205
Less accumulated depreciation and amortization (1,402,256,629) (1,341,405,330)
Amount recoverable - interlocal agreement 22,047,787 22,858,702
Other assets 9,698,840 8,000,000
Total Noncurrent Assets 3,254,377,860 3,188,876,222
TOTAL ASSETS $3,485,054,493 $3,419,339,229
40|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
COMPARATIVE STATEMENTS OF NET POSITION (continued)
2018 2017
DEFERRED OUTFLOWS OF RESOURCES
Advanced debt refunding $88,490,542 $97,189,416
Assumptions changes related to pensions 31,930,657 12,571,775
TOTAL DEFERRED OUTFLOWS OF RESOURCES $120,421,199 $109,761,191
LIABILITIES
Current Liabilities:
Accounts payable:
Other $37,169,641 $54,120,255
State of Utah 138,224
Accrued liabilities, primarily payroll-related 22,242,526 20,199,621
Accrued interest 4,165,847 4,096,739
Accrued self-insurance liability 1,155,787 1,495,598
Current portion of long-term debt 24,126,320 14,815,329
Payable from restricted assets - 153,913
Unearned revenue 11,622,768 6,218,000
Total Current Liabilities 100,621,113 101,099,455
Long-Term Liabilities:
Long-term debt 2,385,014,132 2,316,957,516
Long-term accrued interest 5,614,014 4,541,169
Long-term self-insurance liability - -
Long-term net pension liability 131,548,114 100,876,554
Total Long-term Liabilities 2,522,176,260 2,422,375,239
TOTAL LIABILITIES 2,622,797,373 2,523,474,694
DEFERRED INFLOWS OF RESOURCES
Changes to earnings on pension plan investments 3,383,699 11,948,307
TOTAL DEFERRED INFLOWS OF RESOURCES 3,383,699 11,948,307
NET POSITION
Net investment in capital assets 827,646,243 894,275,843
Restricted for:
Debt service 47,668,250 42,768,329
Interlocal agreements 7,040,441 6,201,628
Represented employee benefits 4,133,950 3,894,919
Escrow funds 66,174,772 28,754,015
Self-insurance deposits 7,716,809 7,534,841
Unrestricted 18,914,155 10,247,844
TOTAL NET POSITION $979,294,620 $993,677,419
41|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
COMPARATIVE STATEMENTS OF EXPENSES AND CHANGES IN NET POSITION
2018 2017
OPERATING REVENUES
Passenger fares $52,051,892 $52,159,203
Advertising 2,412,500 2,366,667
Total operating revenues 54,464,392 54,525,870
OPERATING EXPENSES
Bus service 96,719,747 88,928,063
Rail service 75,157,087 72,895,607
Paratransit service 21,857,632 19,572,367
Other service 3,056,191 2,982,176
Operations support 45,557,749 41,932,571
Administration 39,593,947 31,423,844
Capital maintenance projects 38,654,111 20,602,425
Depreciation 80,565,077 149,440,887
Total operating expenses 401,161,541 427,777,940
Excess of operating expenses over operating revenues (346,697,149) (373,252,070)
NON-OPERATING REVENUES (EXPENSES)
Contributions from other governments (sales tax)282,933,591 265,770,775
Federal preventative maintenance grants 61,820,668 62,313,994
Investment income 6,525,872 2,873,787
Other 8,155,668 3,954,893
Interest expense (91,000,388) (88,190,962)
Net non-operating revenues 268,435,411 246,722,487
INCOME (LOSS) BEFORE CONTRIBUTIONS (78,261,738) (126,529,583)
Capital contributions:
Federal grants 31,585,004 53,960,024
Local 12,151,003 2,850,116
Capital contribution 20,142,932 253,148
Total capital contributions 63,878,939 57,063,288
Change in Net Position (14,382,799) (69,466,295)
Total Net Position, January 1 993,677,419 1,063,143,714
TOTAL NET POSITION, DECEMBER 31 $979,294,620 $993,677,419
42|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
COMPARATIVE STATEMENTS OF CASH FLOW
2018 2017
Cash flows from operating activities:
Passenger receipts 53,155,758$ 51,888,773$
Advertising receipts 2,450,000 2,400,000
Payments to vendors (137,245,416) (61,003,247)
Payments to employees (124,125,880) (121,899,204)
Employee benefits paid (81,158,163) (72,204,917)
Net cash used in operating activities (286,923,701) (200,818,595)
Cash flows from noncapital financing activities:
Contributions from other governments (sales tax)283,545,887 261,995,834
Federal preventative maintenance grants 67,144,601 43,612,395
Other receipts (payments)6,202,743 -
Net cash provided by noncapital financing activities 356,893,231 305,608,229
Cash flows from capital and related financing activities:
Contributions for capital projects
Federal 46,222,427 42,166,150
Local 16,414,407 2,850,116
Proceeds from the sale of revenue bonds 218,105,085 171,075,197
Deposit into escrow for refunding bonds (125,172,395) (120,367,951)
Payment of bond principal (18,921,211) (11,732,743)
Interest paid on revenue bonds (105,194,215) (101,448,581)
Proceeds from leases 14,377,000 27,141,000
Purchases of property, facilities, and equipment (67,528,327) (135,610,609)
Proceeds from the sale of property 5,948,541 22,508,754
Net cash used in capital and related financing activities (15,748,688) (103,418,667)
Cash flows from investing activities:
Purchases of investments - (39,961,457)
Proceeds from the sales of investments - 29,995,400
Interest on investments 5,062,618 3,492,448
Net cash provided by investing activities 5,062,618 (6,473,609)
Net increase in cash and cash equivalents 59,283,460 (5,102,642)
Cash and cash equivalents at beginning of year 136,807,856 141,910,498
Cash and cash equivalents at end of year 196,091,316$ 136,807,856$
43|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
COMPARATIVE STATEMENTS OF CASH FLOWS (continued)
2018 2017
Reconciliation of Cash to the Statement of Net Position
Cash and cash equivalents at year end from cash flows 196,091,316$ 136,807,856$
Investments 39,680,462 37,959,089
Total cash and cash equivalents and investments 235,771,778$ 174,766,945$
Cash and investments as reported on the Statement of Net Position
Cash and cash equivalents 103,037,555$ 85,459,300$
Restricted assets (cash equivalents and investments)
Bonds funds 47,668,250 42,768,329
Interlocal agreements 7,040,441 6,355,541
Represented employee benefits 4,133,950 3,894,919
Escrow funds 66,174,772 28,754,015
Self-insurance deposits 7,716,809 7,534,841
Total cash and cash equivalents and investments 235,771,777$ 174,766,945$
2018 2017
Reconciliation of operating loss to net cash used in operating activities:
Operating loss (346,697,149)$ (373,252,070)$
Adjustments to reconcile excess of operating expenses over
operating revenues to net cash used in operating activities:
Pension expense (2,748,070) 2,583,870
Depreciation 80,565,076 149,440,887
Changes in assets and liabilities:
Receivables - -
Parts and supplies inventories (3,862,516) (3,327,623)
Prepaid expenses (58,211) (123,743)
Accounts payable - trade and restricted (16,967,292) 27,031,728
Accrued liabilities 1,703,097 (2,934,547)
Unearned revenue 1,141,364 (237,097)
Net cash used in operating activities (286,923,701)$ (200,818,595)$
See accompanying notes to the financial statements
44|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
2018 2017
ASSETS
Cash in Bank $- $1,586,481
Cash Advanced Advance CFO 604,152 -
Cash in Utah State Treasury - 5,607,680
Total Cash 604,152 7,194,161
Investments at fair value as determined by quoted market prices 192,047,892 196,506,139
Prepaid Benefits 1,095,081 -
Interest Receivable - 8,422
Dividends Receivable 7,859 352
Accounts Receivable - Benefits 10,978 11,741
Accounts Receivable - Contributions 880,663 828,834
Total Receivables 899,500 849,349
Total Assets 194,646,625 204,549,649
LIABILITIES
Accounts Payable - 16,541
Withholding Taxes Payable 108,077 28,546
Total Liabilities 108,077 45,087
NET POSITION
Net Position Held in Trust for Pension Benefits $194,538,548 $204,504,562
COMPARATIVE STATEMENT OF FIDUCIARY NET POSITION
45|Page
UTAH TRANSIT AUTHORITY
FINANCIAL STATEMENTS
Year Ended December 31, 2018 and 2017
2018 2017
ADDITIONS
Employer Contributions $22,355,434 $20,506,163
Participant Voluntary Contributions 223,572 697,576
Total Contributions 22,579,006 21,203,739
Investment Income
Net Appreciation in Fair Value of Investments (17,276,731)29,971,343
Interest 94,458 84,944
Dividends 1,193,815 1,134,918
Other Income 300 -
Total Investment Income (15,988,158)31,191,205
Less: Investment Expense 641,763 592,585
Net Investment Income (16,629,921)30,598,620
Total Additions 5,949,085 51,802,359
DEDUCTIONS
Monthly Benefits Paid 10,824,630 9,724,391
Lump Sum Distributions 4,650,189 3,283,751
Administrative Expense 440,279 324,912
Total Deductions 15,915,098 13,333,054
NET INCREASE (DECREASE)(9,966,013)38,469,305
Net Position Held in Trust For Pension Benefits
Beginning of Year 204,504,561 166,035,257
As of December 31 $194,538,548 $204,504,562
COMPARATIVE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
46|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 1 – DESCRIPTION OF THE AUTHORITY OPERATIONS AND DEFINITION OF THE
ENTITY
A. Organization
The Utah Transit Authority (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 total population within the six principal counties is approximately
2,463,015 which represents approximately 79.4% of the state’s total population.
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 van pool 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.
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 Authority has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No.
14, The Financial Reporting Entity, and GASB Statement No. 39, Determining Whether Certain Organizations
Are Component Units - An Amendment of GASB Statement No. 14. Accordingly, the accompanying financial
statements include only the accounts and transactions of the Authority. Under the criteria specified in Statements
No. 14 and No. 39, the Pension Plan may be considered a fiduciary component unit. Due to the changes in
governance in 2018, UTA is now 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 not financially accountable for any other organizations. 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 a governmental unit and other governmental
units 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.
47|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The Authority reports as a single enterprise fund and 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 Planning Assistance and Preventative Maintenance Grants
Federal planning assistance grants received from the Federal Transit Administration (FTA) and preventative
maintenance grants are recognized as revenue and receivable during the period in which the related expenses are
incurred and eligibility requirements are met. The FAST Act is a fully funded five-year authorization of surface
transportation programs. This Act allows for the replacement and repair of aging infrastructure.
D. Federal Grants for Capital Expenditures
The U.S. Department of Transportation, through contracts between the Authority and the FTA, provides federal
funds of 35% 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 made and eligibility requirements are met.
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.
48|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
The following percentage of sales have been authorized as Local Option Sales Tax and dedicated to support
transit:
Salt Lake County 0.6875%
Davis County 0.6500%
Weber County 0.6500%
Box Elder County 0.5500%
Utah County 0.5260%
Tooele County 0.4000%
G. Cash and Cash Equivalents
Cash and cash equivalents 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. Investments
Cash in excess of operating requirements is invested by the Authority. The Authority’s investments comply with
the Utah Money Management Act, and are stated at fair value, which is primarily determined based upon quoted
market prices at year end (Note 3).
Investment policy: The Authority’s investment policy is established and may be amended by the Executive
Director within the parameters established by the Board of Trustees and the Utah Money Management Act.
I. Receivables
Receivables consist primarily of amounts due to the Authority from sales tax collections, federal grants, local
government partners, pass sales and investment income. Management does not believe any credit risk exists
related to these receivables. As such there is no current provision for bad debts.
J. 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.
49|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
K. Capital Assets
Capital Assets are stated at historical cost. Expenditures which substantially improve or extend the useful life of
property are capitalized. Routine maintenance and repair costs are expensed as incurred. Railway infrastructure
assets are capitalized when individual costs is at least $50,000. Intangible software assets are capitalized when
individual costs is at least $10,000. All other property, facilities and equipment are capitalized if they have
individual costs of at least $5,000 and a useful life of over one year.
Depreciation is calculated using the straight-line method over the established useful lives of individual assets as
follows:
Revenue service vehicles 4-30 years
Leased revenue service vehicles 4-12 years
Intangibles 4-20 years
Equipment 4-20 years
Land improvements 10-25 years
Leased Land Improvement 50 years
Buildings and building improvements 20-50 years
Infrastructure 5-75 years
L. 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.
M. Compensated Absences
Vacation pay is accrued and charged to compensation expense as earned. Sick pay benefits are accrued as vested
by Authority employees.
N. 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 $2,455,900 for
incidents occurring after July 1, 2016. The Authority is self-insured for amounts up to this limit. 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.
50|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
O. 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.
P. 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, 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 the municipalities of Willard, Perry and Brigham City in Box Elder
County.
Restricted for represented employee benefits: This component of net position consists of the amount
restricted by the Utah Transit Authority Bargaining Unit Employees’ Insurance Trust Account
Agreement for the purpose of providing represented employee benefit s.
Restricted for escrows: This component of net position consists of the amount restricted by escrow
agreement.
Self-insurance deposits: This component of net position consists of the fund amount set aside for risk.
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.
2018 2017
NET POSITION
Net investment in capital assets $ 827,646,243 $ 894,275,943
Restricted for:
Debt Service 47,668,250 42,768,329
Interlocal agreements 7,040,441 6,201,628
Represented employee benefits 4,133,950 3,894,919
Escrow Fund 66,174,772 28,754,015
Self-insurance deposits 7,716,809 7,534,841
Unrestricted 18,914,154 10,247,844
TOTAL NET POSITION $ 979,294,620 $ 993,677,419
51|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Q. Budgetary and Accounting Controls
The Authority’s annual budgets are approved by the Board of Trustees, as provided for by law. Operating and
non-operating revenues and expenditures are budgeted on the accrual basis, except for depreciation, bond
principal and bond interest. Capital expenditures and grant reimbursements are budgeted on a project basis.
Multi-year projects are approved in whole, but are budgeted based on estimated annual expenses.
The Authority adopts its annual budget in December of the preceding year based on recommendations of staff
and the local advisory board.
The first step in developing the Authority’s budget is a review of the Transit Development Program and Long
Range Financial Plan. This plan then acts as a focus for the development of programs and objectives. Concurrent
with the development of programs and objectives, revenues for the coming year are estimated. The estimates of
the coming year’s revenues are then used as a guide for the Authority to determine the amount of change in
service to be provided in the following year. Once the level of service for the coming year is determined, each
manager develops a departmental budget.
The departmental budgets are then combined to form a preliminary budget request.
The Executive staff reviews the programs, objectives and requests to balance the total budget with the project
revenues and service requirements and priorities. Once the preliminary budget is balanced, the Board Finance
and Operations Committee reviews the budget request.
Within 30 days after the tentative budget is approved by the Board, and at least 30 days before the Board adopts
its final budget, the Board sends a copy of the tentative budget, a signature sheet and notice of the time and place
for a budget hearing to the chief administrative officers and legislative bodies of each municipality and
unincorporated county area within the district of the Authority.
Within 30 days after it is approved by the Board and at least 30 days before the Board adopts its final budget,
the Board sends a copy of the tentative budget to the Governor and the Legislature for examination and comment.
Before the first day of each fiscal year, the Board adopts the final budget by an affirmative vote of a majority of
all the trustees. Copies of the final budget are filed in the office of the Authority. If for any reason the Board has
not adopted the final budget on or before the first day of any fiscal year, the tentative budget for such year, if
approved by formal action of the Board, is deemed to be in effect for such fiscal year until the final budget for
such fiscal year is adopted.
The Board may, by an affirmative vote of a majority of all trustees, adopt an amended final budget when
reasonable and necessary, subject to any contractual conditions or a requirement existing at the time the need for
such amendment arises.
Individual department budgets are monitored for authorized expenditures on a department total rather than on a
department line-item basis.
The Board must approve all increases or decreases to the net operating expense line, total capital budget line and
total operating revenue line of the Authority’s operating and capital budgets.
The Authority’s budgetary process follows Title 17B, Chapter 1, Section 702 of the Utah Code Annotated, as
amended. The annual budget is submitted to the State Auditors’ Office within 30 days of adoption.
52|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
R. Recent Accounting Pronouncements
GASB Statement 75
Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions
Took Effect: June 30, 2018
GASB Statement 81
Irrevocable Split-Interest Agreements
Took Effect: December 31, 2017
GASB Statement 82
Pension Issues-an amendment of GASB Statement No. 67, No. 68, and No. 73
Took Effect: June 15, 2017
GASB Statement 83
Certain Asset Retirement Obligations
Takes Effect: June 30, 2019
GASB Statement 84
Fiduciary Activities
Takes Effect: December 31, 2019
GASB Statement 85
Omnibus 2017
Took Effect: June 30, 2018
GASB Statement 86
Certain Debt Extinguishment Issues
Took Effect: June 30, 2018
GASB Statement 87
Leases
Takes Effect: December 31, 2020
53|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS
A. 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 maintain certain accounts in connection with the issuance of bonds which
are restricted per the bond covenants. In addition, the Authority is acting as the trustee of funds for a represented
employee benefits trust.
B. 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:
2018 2017
Early Debt Retirement $ 47,384,438 $ 17,699,386
Fuel Reserve 1,915,000 1,915,000
Operating Reserve 28,507,000 25,976,619
Parts Reserve 3,000,000 3,000,000
Stabilization Reserve 15,272,000 13,916,046
Total designated cash and cash equivalents $ 96,078,438 $ 62,507,051
Designated for early debt retirement reserves - This component of net position consists of savings
experienced in the amount of actual variable interest expense from budgeted variable interest expense
for the same time period, one-time contributions as determined by the Executive Director, and any
unused monies from debt service reserve funds established for specific bonds when no longer
encumbered for the initially reserved debt. Permitted use of these reserves is defined in the Executive
Limitations Policy No. 2.4.6 Debt Service Reserve and Rate Stabilization Fund Created.
Designated for fuel reserves - This component of net position consists of the amount designated by the
Board of Trustees to mitigate the financial impact of unexpected and rapidly rising fuel prices.
(Executive Limitations Policy No. 2.3.3 Budgeting)
Designated for operating reserves - This component of net position consists of 9.33% (one month
expense, plus 1%) of the annual budgeted operating expense, and is required by the Board of Trustees.
(Executive Limitations Policy No. 2.3.3 Budgeting) As of December 31, 2017, the designation for
operating reserves had to be decreased to $25,976,619 due to total amount of unrestricted cash available
to designate. The low level of unrestricted cash was only temporary and the Authority was able to
return to full designation of operating reserves in February 2018, after receiving some of the amounts
owed to the Authority from other sources.
Designated for parts reserves - This component of net position consists of the amount designated by
the Board of Trustees to be accumulate funds in anticipation of a State of Good Repairs requirement.
(Executive Limitations Policy No. 2.3.3 Budgeting)
Designated for stabilization reserves - This component of net position consists of 5% of the Authority’s
annual budget 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.
(Executive Limitations Policy No. 2.1.8 Service Stabilization Reserve Fund)
54|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
C. Deposits and Investments
Deposits and 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 managin g 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, 2018 and 2017, the balances in the Authority’s bank demand deposit accounts and
certificate of deposit accounts according to the bank statements totaled $17,599,147 and $30,739,375,
respectively, of which $257,989 and $274,040 were 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 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.
The following are the Authority’s investment as of December 31, 2018:
Investment Maturity (in years)
Less than 1 1-5 TOTAL
U.S. Agencies
AA-A+/A/A-
BBB+/BBB - $ 48,304,144 $ 48,304,144
Corporate Bonds A+/A1/A+ $
13,600,749
2,425,518
16,026,268
MM - Cash
2,436,098
-
2,438,098
PTIF
78,979,313
-
78,979,313
Total Investments $ 95,016,161 $
$50,729,662 $
145,745,823
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 maximum adjusted weighted
average maturity of the portfolio does not exceed 90 days.
55|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
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 FASB ASC 820 are described as
follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the Plan has ability to access.
Level 2: Inputs to the valuation methodology include:
Quoted prices for similar assets of liabilities in active markets;
Quoted prices for identical or similar assets or liabilities in inactive markets;
Inputs other than quoted prices that are observable for the asset or liability;
Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be
observable for substantially the full term of the asset or liability.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair
value measurement. The asset’s fair value measurement level within the fair value
hierarchy is based on the lowest level of any input that is significant to the fair value
measurement. Valuation techniques used need to maximize the use of observable inputs
and minimize the use of unobservable inputs.
The Authority invests with Zions Capital Advisors and the Utah Public Treasurers Investment Fund.
Both of these organizations meet the requirements of the Utah Money Management Act. The following
are the Authority’s investment as of December 31, 2018 by organization and by fair value measurement:
Fair Value Measurements
12/31/2018 Level 1 Level 2 Level 3
Zions Capital Advisors
Agency $ 48,304,144 $ $ 48,304,144 - -
Corporate 16,026,268 - $ 16,026,268 -
Currency 1,099,517 1,099,517 - -
Total Zions Capital Advisor investments 65,429,928 49,403,661 16,026,268 -
Zions Trustee Investments
Money market 1,336,581 1,336,581 - -
Total Zions Trustee investments 1,336,581 1,336,581 - -
Public Treasurers Investment Fund 78,979,313 - 78,979,315 -
Total investments by fair value level $ 145,745,823 $ 50,740,242 $ 95,005,581 -
56|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 4 – CAPITAL ASSETS
Construction in progress for 2018 consists of following large projects:
$27.8 million for Positive Train Control to be completed September 30, 2019
$18.0 million for the Depot District expected to be completed August 31, 2021
$5.4 million for the Sugar House Double Track project completed February 2, 2019
$4.3 million for the Airport TRAX Station with an expected completion of April 2, 2021
$3.9 million for the I-15 Road Widening at 7200 S by UDOT expected to be completed by September 27, 2019.
A biennial inventory of capital assets is planned to be completed the latter half of 2019.
Balance Balance
12/31/2017 Increases Transfers Decreases 12/31/2018
Capital assets not being depreciated
Land 425,736,158$ 19,259,000$ -$ (4,078,032)$ 440,917,126$
Construction in Progress 205,102,231 86,039,389 - (181,168,717) 109,972,903
Total capital assets not being depreciated 630,838,389 105,298,389 - (185,246,749) 550,890,029
Capital assets being depreciated
Infrastructure 2,528,679,092 - (13,252,685) - 2,515,426,407
Buildings and Building Improvements 132,444,199 25,091,055 145,611,098 (673,138) 302,473,214
Revenue Vehicles 757,025,778 35,408,999 (23,891,478) (14,893,000) 753,650,299
Leased Revenue Vehicles - 42,343,725 18,047,840 (25,860) 60,365,705
Equipment 326,289,349 3,146,819 (180,348,041) (4,270,515) 144,817,612
Land improvements 12,300,402 54,250 66,785,845 - 79,140,497
Leased Land Improvements - 75,804,461 - - 75,804,461
Intangibles 22,537,996 - (12,952,579) - 9,585,417
Total capital assets being depreciated 3,779,276,816 181,849,309 - (19,862,513) 3,941,263,612
Less: Accumulated depreciation
Infrastructure (651,651,962) (38,120,418) (24,996,060) - (714,768,440)
Buildings and Building Improvements (64,302,569) 8,055,469 (61,335,558) 655,299 (116,927,359)
Revenue Vehicles (361,922,236) (33,229,497) 9,795,521 14,769,202 (370,587,010)
Leased Revenue Vehicles - (5,871,145) (4,928,991) 18,761 (10,781,375)
Equipment (231,855,525) (9,361,139) 98,668,483 4,270,515 (138,277,666)
Land Improvements (9,123,916) (1,909,583) (30,189,913) - (41,223,412)
Leased Land Improvements - (128,764) - - (128,764)
Intangibles (22,549,122) - 12,986,518 - (9,562,604)
Total accumulated depreciation (1,341,405,330) (80,565,077) - 19,713,777 (1,402,256,630)
Capital assets being depreciated, net 2,437,871,486 101,284,233 - (148,737) 2,539,006,982
Total capital assets, net 3,068,709,875$ 206,582,622$ -$ (185,395,486)$ 3,089,897,011$
57|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
During 2018, UTA has evaluated its capital assets and the associated accumulated depreciation of those assets and saw the need to better
define assets, their useful lives, and their categories. This evaluation has led to change in useful lives of all categories of assets to be
consistent for all assets in those respective categories. These new useful lives reflect the changing understanding of how long a transit
asset is lasting after a decade of running service in the northern Utah environment. These changes in accounting estimates are reflected
in the current year depreciation expense decrease from $149.4 million in 2017 to $80.6 million in 2018. Due to the revaluation of UTA’s
capital assets, a decrease in depreciation expense for 2018 of $57,255,598 has been reflected in the financials. The difference in
accumulated depreciation by type of capital asset is illustrated below.
Balance Balance
12/31/2016 Increases Transfers Decreases 12/31/2017
Capital assets not being depreciated
Land 434,255,469$ 781,831$ -$ (9,301,142)$ 425,736,158$
Construction in Progress 98,584,168 135,081,926 - (28,563,863) 205,102,231
Total capital assets not being depreciated 532,839,637 135,863,757 - (37,865,005) 630,838,389
Capital assets being depreciated
Infrastructure 2,660,455,034 11,379,323 (129,429,792) (13,725,473) 2,528,679,092
Buildings and Building Improvements - - 132,444,199 - 132,444,199
Revenue Vehicles 768,632,495 7,007,046 - (18,613,763) 757,025,778
Leased Revenue Vehicles - - - - -
Equipment 420,530,145 3,448,002 (25,670,921) (72,017,877) 326,289,349
Land improvements 10,172,645 3,450,300 118,518 (1,441,061) 12,300,402
Leased Land Improvements - - - - -
Intangibles - - 22,537,996 - 22,537,996
Total capital assets being depreciated 3,859,790,319 25,284,671 - (105,798,174) 3,779,276,816
Less: Accumulated depreciation
Infrastructure (641,678,702) (79,781,488) 60,999,641 8,808,587 (651,651,962)
Buildings and Building Improvements - - (64,302,569) - (64,302,569)
Revenue Vehicles (341,524,835) (38,974,295) 101,368 18,475,526 (361,922,236)
Leased Revenue Vehicles - - - - -
Equipment (294,986,102) (29,981,835) 25,769,407 67,343,005 (231,855,525)
Land Improvements (9,842,982) (703,269) (18,725) 1,441,060 (9,123,916)
Leased Land Improvements - - - - -
Intangibles - - (22,549,122) - (22,549,122)
Total accumulated depreciation (1,288,032,621) (149,440,887) - 96,068,178 (1,341,405,330)
Capital assets being depreciated, net 2,571,757,698 (124,156,216) - (9,729,996) 2,437,871,486
Total capital assets, net 3,104,597,335$ 11,707,541$ -$ (47,595,001)$ 3,068,709,875$
Categories in which Useful Lives were Lengthened Accounting Effect
Infrastructure (39,148,990.68)$
Buildings and Building Improvements (10,642,078.09)
Revenue and Leased Revenue Vehicles (5,747,813.46)
Land Improvements and Leased Land Improvements (1,716,715.95)
Net Effect of Change in Accounting Estimate (57,255,598.18)$
58|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
Depreciation expense by mode that mirrors the Comparative Statement of Revenues, Expenses, and Changes in Net Position.
Depreciation Expense 2018 2017
Bus Service $ 17,144,994 $ 20,842,359
Rail Service 56,825,449 119,310,559
Paratransit Service 4,290,318 5,678,317
Vanpool Service 2,304,317 3,609,652
Total Depreciation Expense $ 80,565,077 $ 149,440,888
59|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 5 – 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.
2018 2017
Operating assistance
Federal preventive maintenance grants $ 59,382,716 $ 61,690,413
Federal operating assistance grants 2,376,707 623,581
61,820,668 62,313,994
Capital projects
Federal capital projects 31,585,004 55,040,181
Prior Year Federal capital projects 4,041 (1,080,157)
31,589,045 53,960,024
Total federal assistance $ 93,409,713 $ 116,274,018
2018 2017
Prior Year Federal Receivables $ (44,106,915) $ (13,611,438)
Received Operating Assistance 67,144,610 43,612,393
Received Federal Capital Projects 46,225,485 42,166,148
Year End Federal Receivables 24,146,542 44,106,915
Total Federal Assistance $ 93,409,713 $ 116,274,018
NOTE 6 – SELF-INSURANCE CLAIMS LIABILITY
Changes in the accrued claims liability in 2018 and 2017 were as follows:
Beginning
liability
Changes in
estimates
Claim
payments
Ending
liability
2018 $ 1,495,597 $ 3,117,762 $ (3,457,572) $ 1,155,787
2017 $ 5,095,814 $ 1,082,185 $ (4,682,402) $ 1,495,597
60|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS
A) General Information
Deferred Compensation Plan
The Authority offers its employees a deferred compensation plan 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 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 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 Benefit Plan
The Authority offers its employees a single employer non-contributory defined benefit pension plan, The
Utah Transit Authority Retirement Plan and Trust, 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-
sound 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. Prior to February 2016, Fidelity
Investments served as the administrator and custodian of the Plan, with Soltis Investment Advisors serving
as a third-party investment manager.
B) Reporting Entity
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.
61|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
Membership
The Plan’s membership consisted of:
January 1, 2018 January 1, 2017
Active participants:
Fully vested 1,377 1,359
Partially vested - -
Not vested 788 725
Inactive participants not receiving benefits 343 316
Participants due refunds 12 12
Retirees and beneficiaries receiving benefits 629 561
Total 3,149 2,973
C) 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 participants who began participating in the Administrative 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 five 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.
62|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
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.
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 2018 and 2017, 37 and 39 participants in each respective year elected to receive their benefit in the
form of lump sum distribution. Lump sum distributions collectively totaled $4,650,189 and $3,283,751 for
2018 and 2017, respectively. Individuals are removed from the Pl an’s membership if they choose to take all
of their benefit as a lump sum distribution.
D) Contributions
Employer Contribution Requirements
Contributions are received from the Authority in amounts determined by the Pension Committee and
approved by the Board of Trustees based on the current collective bargaining agreement and the minimum
and maximum funding levels recommended by the Plan’s actuary.
63|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
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.
E) Change in Plan Custodian
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.
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 measureable 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.
GASB Statement No. 67, Financial Reporting for Pension Plans, which was adopted during the year ended
December 31, 2014, addresses accounting and financial reporting requirements for pension plans. The
requirements for GASB No. 67 require changes in presentation of the financial statements, notes to the
financial statements, and required supplementary information. Significant changes include an actuarial
calculation of total and net pension liability. It also includes comprehensive footnote disclosure regarding the
pension liability, the sensitivity of the net pension liability to the discount rate, and increased investment
disclosures. The implementation of GASB No. 67 did not significantly impact the accounting for accounts
receivable and investment balances. The total pension liability, determined in accordance with GASB No.
67, is presented in Note 6 and in the Required Supplementary Information.
64|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
G) Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
Net pension liability - At December 31, 2018, the Authority reported a net pension liability of $131,548,114.
The net pension liability was measured as of December 31, 2018, and was determined by an actuarial
valuation as of January 1, 2018 and rolled-forward using generally accepted actuarial 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
Employee
Payroll
Net position
Liability as a
percentage of
Covered Employee
Payroll
12/31/2018 $326,086,663 $194,538,549 $131,548,114 59.66% $132,521,079 99.27%
12/31/2017 305,381,116 204,504,562 100,876,554 66.97% 126,690,540 79.62%
12/31/2016 278,960,378 166,035,257 112,925,121 59.50% 115,430,618 97.80%
12/31/2015 269,069,798 151,631,937 117,437,871 56.40% 110,727,134 106.10%
12/31/2014 247,692,651 146,854,399 100,838,252 59.30% 106,004,057 95.10%
1/1/2014 232,691,093 135,666,362 97,024,731 58.30% 102,099,985 95.00%
Schedule is intended to show information for 10 years. Additional years will be displayed when available.
Deferred outflows of resources and deferred inflows of resources - At December 31, 2018, 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 $ (1,226,044) $ 7,632,639
Change of Assumptions
(2,157,655) 6,405,862
Net difference between projected and actual earnings
- 17,892,156
Contributions made subsequent
-
-
Total $ (3,383,699) $ 31,930,657
Pension expense - For the year ended December 31, 2018, the Authority recognized pension expense of
$25,103,504. 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
2019 $8,144,192
2020 5,681,109
2021 4,313,036
2022 7,991,195
2023 1,906,202
Thereafter 511,224
Total $28,164,198
65|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
Actuarial assumptions - The total pension liability in the January 1, 2018 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.30%
Salary Increases 5.40% per annum for the first five (5) years of employment; 3.40% per
annum thereafter
Investment rate of return 7.0%, 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
3.44%
The actuarial assumptions used in the January 1, 2018 valuation were based on the results of an actuarial
experience study for the five year period ending December 31, 2008.
Discount rate: The discount rate used to measure the total pension liability was 7.00%. 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.
The following sensitivity analysis assumes rate volatility of plus and minus one percent of the discount rate of 7.0%.
1%
Decrease
6.00%
Current
Discount Rate
7.00%
1%
Increase
8.00%
Total pension liability $ 367,575.226 $ 326,086,663 $ 291,631,806
Fiduciary net position 194,538,549 194,538,549 194,538,549
Net pension liability 173,036,677 131,548,114 97,093,257
66|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
Schedule of changes in total pension liability, plan fiduciary net position, and net pension liability: The following
table shows the change to the total pension liability, the plan fiduciary net position, and the net pension liability
during the year.
Increase (Decrease
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
[a] [b] [a]-[b]
Balances as of December 31, 2017 $ 305,381,116 $ 204,504,562 $ 100,876,554
Charges for the year
Service cost 9,550,863 - 9,550,863
Interest on total pension liability 21,512,781 - 21,512,781
Differences between expected
and actual experience 4,893,150 - -
Changes of assumptions - - -
Employer contributions 22,355,434 (22,355,434)
Member voluntary contributions 223,572 223,572 -
Net investment income - (16,629,921) 16,629,921
Benefit payments (15,474,819) (15,474,819) -
Administrative expenses - (440,279) 440,279
Balance as of December 31, 2018 $ 326,086,663 $ 194,538,549 $ 131,548,114
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.
67|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
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 February 2016 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.
I) Investments (continued)
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 Range
Global Equity 63% 51% - 75%
Liquid Diversifiers 10% 0% - 15%
Real Assets 4% 0% - 8%
Alternatives 22% 12% - 32%
Cash & Equivalents 1% 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 7.00% per annum, net of investment expenses.
J) Payment of Benefits
Benefit payments to participants are recorded upon distribution.
K) 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
years ended December 31, 2018 and 2017, the Plan paid $440,279 and $324,912 respectively, of
administrative expenses. In April 2018 all administration of the plan was outsourced to Milliman and
Advanced CFO. The board voted and approved this action at their January 2018 board meeting.
L) Use of Estimates
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, liabilities and changes therein and the disclosure of contingent assets and liabilities as of
the date of the financial statements. Accordingly, actual results could differ from those estimates.
68|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
M) 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.
N) 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.
O) 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.
P) Reclassifications
Certain amounts in the prior period presentation have been reclassified or added to conform to the current
period financial statement presentation. These changes have no effect on previously reported amounts on the
Comparative Statement of Changes in Fiduciary Net Position.
Q) Subsequent Events
The Plan has performed an evaluation of subsequent events through March 26, 2018, which is the date the
basic financial statements were available to be issued. The IPS was amended effective February 2016 to
identify Cambridge Associates, LLC (CA) as the investment manager, clarify the roles and responsibilities
of the investment manager, and revise the long-term asset allocation policy for the Plan.
Starting in April 2018 all administration of the plan will be outsourced to Milliman and Advanced CFO. The
board voted and approved this action at their January board meeting.
R) 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 has no formal policy for cash deposit custodial credit risk. Cash deposits are presented in the
financial statements at cost plus accrued interest, which is market or fair value.
Cash equivalents include amounts invested in the Utah Public Treasurer’s Investment Fund. The Plan
considers short-term investments with an original maturity of 3 months or less to be cash equivalents.
2018 2017
Cash held in banking institution(s) $ 604,152 $ 1,586,481
Cash held in Utah Public Treasurer's Investment Fund - 5,607,680
Total Cash $ 604,152 $ 7,194,161
69|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
S) Custodial Credit Risk
Custodial credit risk for investments is in the risk that the counterparty to an investment will not fulfill its
obligations. The Plan has no formal policy for custodial credit risk.
The Plan’s rated investments are show below.
Fixed Income: 2018 $ 44,511,657 AA/Aa Rated
2017 $ 41,223,319 AA/Aa Rated
T) 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 Plan has no formal policy for investment interest rate risk. The table
below shows the maturities of the Plan’s i nvestments.
Equity funds: 2018 $121,933,057 No maturity dates
2017 $126,057,180 No maturity dates
Fixed Inc funds: 2018 $ 44,511,657 Average effective duration: 5.3 years
Average effective maturity: 7.5 years
2017 $ 41,223,319 Average effective duration: 5.3 years
Average effective maturity: 7.5 years
Other funds: 2018 $ 26,081,608 Average effective duration/maturity: n/a
2017 $ 29,225,640 Average effective duration/maturity: n/a
U) 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 Plan has no formal policy for concentration of credit risk. The following amounts represent
5% or more of the Plan’s net position as of December 31, 2018 and/or 2017 invested with any one
organization. (Investments with Fidelity representing less than 5% of the Plan’s net position are not required
to be disclosed, but are included in the detail of total Fidelity Investments in Note 4).
2018 2017
Equity funds:
Two Sigma Active US All Cap & $ 16,287,880
$ 631,784
Investments
Fixed funds: IR+M Core Bond Fund II $ 18,593,036 $ 17,854,889
SSGA 3-10 US Treasury Index NL - -
70|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
V) Fair Value Measurements
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 FASB ASC 820 are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities
in active markets that the Plan has ability to access.
Level 2: Inputs to the valuation methodology include:
Quoted prices for similar assets of liabilities in active markets;
Quoted prices for identical or similar assets or liabilities in inactive markets;
Inputs other than quoted prices that are observable for the asset or liability;
Inputs that are derived principally from or corroborated by observable market data by correlation
or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for
substantially the full term of the asset or liability.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any
input that is significant to the fair value measurement. Valuation techniques used need to maximize the use
of observable inputs and minimize the use of unobservable inputs.
71|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
2018 2017
Investments: Global Equity Funds: 1607 Capital International Equity Fund $ 7,068,884 $ 8,305,215
Arrowstreet International Equity 8,886,414 9,504,008
Artisan Global Value Institutional 6,504,923 7,932,866
Artisan Global Opportunities Trust 6,349,204 5,903,689
Causeway Emerging Markets Equity 6,547,729 6,402,017
Edgewood Growth Fund Institutional 7,054,931 5,764,661
Gqg Partners Intl Eqty 7,384,000 -
Independent Franchise Partners US Equity 7,196,531 7,743,633
Iridian Private Business Value Mid Cap 5,555,749 6,317,097
Iva International Fund I 2,921,780 -
John Hancock Disciplined Value I 6,086,912 6,732,130
Kiltearn Global Equity Fund 5,744,563 -
Mahout Global Emerging Markets 2,134,715 6,732,130
Mathews ASIA Small Companies - 2,437,578
Oakmark International I 6,720,896 7,707,213
Overlook Partners Fund 2,477,772 -
RWC Horizon Equity Offshore Ltd. 4,695,445 2,871,724
RWC Horizon Equity Fund 97MSCLV 558,532 5,311,261
Two Sigma Active US All Cap & Investments 16,267,880 631,784
Vanguard FTSE Developed Markets EFT 1,871,213 13,389,450
Vanguard S&P 500 EFT 2,853,321 3,221,307
Wasatch Emerging Markets Small Cap - 2,511,034
William Blair Small Cap Fund Class I -
7,485,887
Total Global Equity Funds $ 114,881,394 $ 120,358,635
72|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
2018 2017
Polen Capital:
Adobe Systems Inc. $ 392,300
$ 461,056
Automat ic Data Process. 405,948 334,343
Align Te chnology Inc. 142,412 233,744
Accenture Plc 308,530 308,783
Booking Holdings 155,017 -
Celgene Corp. - 227,609
Dollar General 322,835 184,811
Facebook Inc. 414,224 433,915
Alphabet Inc. 597,961 556,639
Gartner Inc. 245,964 205,784
Mastercard Inc. 187,895 138,948
Microsoft Corp. 609,318 256,107
Nestle Sa 229,845 325,197
Nike Inc. 355,650 307,225
Nvidia Corp 147,918 -
Oracle 251,079 266,518
O Reilly 413,885 -
The Priceline Group - 245,021
Regeneron 230,076 213,545
Starbucks Corp. 347,374 273,309
Visa Inc. 478,810 382,081
Zoetis Inc. 336,172 119,010
Total Polen Capital 6,573,216 5,698,545
Total Equity $ 121,454,607 $ 126,057,180
73|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
2018 2017
Fixed Income Funds:
1607 Capital Tax Fixed Income Fund $ 3,130,603 $ 3,263,465
Double Line Core Plus 4L3 7,138,145 5,108,695
IR+M Core Bond Fund II 18,593,036 17,854,889
PIMCO Income Fund Institutional 6,327,452 5,291,044
State Street Global Adv. 3-10 US Treasury 9,322,421 9,705,226
Total Fixed Income Funds 44,511,657 41,223,319
Liquid Diversifier Funds:
AQR Style Premia 97MSCMCV9
AQR Style Premia 97MSCNHU4
3,489,659
-
3,886,150
271,103
AQR Style Premia Fund S 4 - -
AQR Style Premia Fund Ltd - -
CCP Core Macro Fund LP - 4,376,922
Fort Global Offshore Fund
ISAM SYSTEMATIC 97MSCNDS3
4,890,738
212,508
5,111,965
225,238
ISAM Systematic Trend 1,824,493 2,191,348
Renaissance Institutional Equity 6,008,085 3,698,940
Total Liquid Diversifier Funds 16,425,483 19,791,665
Real Asset Funds:
AEW Global Properties 1,587,870 1,660,234
T. Rowe Price Global Natural Resources 3,546,308 4,226,988
Vanguard Short Term Inflation Protected Sec 2,543,785 1,530,046
Total Real Assets 7,677,963 7,417,269
Cash & Equivalents:
US Bank Cash (First American US Money Mkt 1,978,162 2,016,706
Total Cash and Equivalents 1,978,162 2,016,706
Total investments $ 192,047,872 $ 196,506,139
W) 2018 and 2017 Valuation Methodology
Level 1 – These investments are measured at fair value based on quoted prices in active markets.
Level 2 – These investments are measured at fair value based on inputs other than quoted prices included
within Level 1. Observable inputs include quoted prices for similar assets in active or non-active markets.
While the underlying asset values are quoted prices for the mutual funds, the net asset value (NAV) of the
mutual funds is not publicly quoted in an active market.
Level 3 – These Investments are valued at fair value based on information obtained from the investment
issuer.
74|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
The following tables set forth by level, within the fair value hierarchy, the Plan’s investments at fair value as of
December 31, 2018 and December 31, 2017.
Investment Assets at Fair Value
as of December 31, 2018
Fair Value Level 1 Level 2 Level 3
Global Equities (NAV Level 2) $ 118,858,701 $ 11,629,353 $ 40,111,922 $ 67,117,426
Fixed Income (NAV level 2) 44,511,657 - 6,327,452 38,184,205
Liquid diversifiers 19,347,261 - 2,921,780 16,425,481
Real assets (NAV level 2) 7,677,963 - 6,090,093 1,587,870
Money market 1,652,310 1,652,310 - -
Total investments at fair value $ 192,047,892 $ 13,281,663 $ 55,451,247 $ 123,314,982
Investment Assets at Fair Value
as of December 31, 2017
Fair Value Level 1 Level 2 Level 3
Global Equities (NAV Level 2) $ 126,057,180 $ 11,430,886 $ 49,768,407 $ 64,857,888
Fixed Income (NAV level 2) 41,223,319 - 5,291,044 35,932,275
Liquid diversifiers 19,791,665 - - 19,791,665
Real assets (NAV level 2) 7,417,269 - 5,757,035 1,660,234
Money market 2,016,706 2,016,706 - -
Total investments at fair value $ 196,506,139 $ 11,430,886 $ 62,833,191 $ 122,242,062
X) Net Asset Value Per Share
The mutual funds in the global equities, fixed income and real assets classes Level 2 are stated at net asset
value or its equivalent, which is the practical expedient for estimating the fair value of those investments.
The following tables provide additional disclosures concerning the investments measured at fair value based
on NAV as of December 31, 2018 and 2017.
2018
Redemption
Unfunded Redemption Notice
Fair Value Commitment Frequency Period
Global Equities (NAV Level 2) $ 40,111,922 $ - Daily Daily
Fixed Income (NAV level 2) 6,327,452 - Daily Daily
Liquid diversifier(NAV level 2) 2,921,780 - Daily Daily
Real assets (NAV level 2) 6,090,093 - Daily Daily
Total $ 55,451,247 $ -
75|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
2017
Redemption
Unfunded Redemption Notice
Fair Value Commitment Frequency Period
Global Equities (NAV Level 2) $ 49,768,407 $ - Daily Daily
Fixed Income (NAV level 2) 5,291,044 - Daily Daily
Real assets (NAV level 2) 5,757,035 - Daily Daily
Total $ 60,816,485 $ -
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.
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.
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.
Y) Money-Weighted Rate of Return
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
2018 -7.77%
2017
18.01%
.
76|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
Z) Net Pension Liability
The net pension liability is the Plan’s total pension liability determined in accordance with GASB No. 67,
less the Plan’s fiduciary net position. The Plan’s net pension liability was $131,548,114 and $100,876,554
as of December 31, 2018 and December 31, 2017, respectively. A portion of this change is attributed to the
Plan’s change of methods and assumptions.
The Plan’s net pension liability is mainly attributed to significant plan changes made during 1999 and 2011,
which resulted in benefit increases. Fiduciary net position as a percent of total pension liability decreased to
59.81% at December 31, 2018 from 66.97% at December 31, 2017.
AA) Actuarial Methods and Assumptions
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.
The total pension liability as of December 31, 2018, is based on the results of an actuarial valuation date of
January 1, 2018, and rolled-forward using generally accepted actuarial procedures. The significant actuarial
assumptions and methods used in the January 1, 2018 valuation are as follows:
Actuarial Cost Method – Entry Age Normal
Inflation – 2.30%
Employer Annual Payroll Growth Including Inflation – 3.40%
Salary Increases – 5.4% for the first five years of employment; 3.4% per annum thereafter
Mortality – RP 2014 Blue Collar Mortality Table, with MP-2014 projection scale
Investment Rate of Return – 7.0%, net of investment expenses
Retirement Age – Table of rates by age and eligibility
Cost of Living Adjustments – None
Percent of Future Retirements Electing Lump Sum – 20%
BB) 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, 2017, is summarized in the table below.
Asset Class Target Asset
Allocation Long Term
Expected
Return
Global Equities 63% 6.9%
Fixed Income 22% 4.4%
Liquid Diversifiers 10% 5.8%
Real Assets 4% 7.8%
Cash & Equivalents 1% 3.3%
Total 100% 6.5%
The 7.00% assumed investment rate of return is comprised of an inflation rate of 2.3% and a real return of
4.70% net of investment expense.
77|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 7 – PENSION PLANS (CONTINUED)
CC) Discount Rate and Rate Sensitivity Analysis
The discount rate used to measure the total pension liability was 7.00%. The discount rate incorporates a
municipal bond rate of 3.44% based on the Bond Buyer General, Obligation 20-Bond Municipal Bond Index.
The projection of cash flows used to determine the discount rate assumed that contributions will be made
based on the actuarially determined rates. Based on those assumptions, the Plan’s fiduciary net position was
projected to be available to make all the projected future benefit payments of current Plan members.
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 7.00%, as
well as what the net pension liability would be if it were calculated using a discount rate 1.00% lower (6.00%)
or 1.00% higher (8.00%) than the current rate.
1.00% Decrease Current Rate 1.00% Increase
6.00% 7.00% 8.00%
Total pension liability $ 367,575,226 $ 326,086,663 $ 291,631,806
Fiduciary net position 194,538,549 194,538,549 194,538,549
Net pension liability 173,036,677 131,548,114 97,093,257
DD) 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.
The Authority’s Board of Trustees adopted a contribution rate policy of 16% for 2017 and 16% for 2018 and
subsequent years.
Employer contributions in 2018 and 2017 totaled $22,355,434 and $20,506,163 respectively, which
represented 110.4% and 101.2% of the annual actuarial recommended contributions, respectively.
EE) Party-in-Interest Transactions
Cambridge Associates is the Plan’s investment manager and they charge fees for the services they provide,
the transactions qualify as party-in-interest transactions. Fees paid by the Plan for the investment
management services for the years ended December 31, 2018 and 2017 were $364,729 and $592,585 ,
respectively.
FF) Component Evaluation
UTA evaluates the financial relationships of all entities that UTA funds or directs each year and after the
careful consideration of the financial dependence and management influence of UTA on the Utah Transit
Authority Employee Retirement Plan and Trust actions, UTA has chosen to include the financials of the trust
as an a fiduciary component unit of UTA financials as part of their 2018 financial statements.
78|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT
The following provides detailed information about each of the Authority’s debt issuances along with a summary of the
long-term debt activity for the year.
A. Series 2005A Revenue Bond
Purpose: Advanced refunding of the 1997 Series Revenue Bonds
Interest rate: 3.25-5.25%
Original amount: $20,630,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 1,635,000 $ 329,044 $ 1,964,044
2020 1,720,000 240,975 1,960,975
2021 1,815,000 148,181 1,963,181
2022 1,915,000 50,269 1,965,269
$ 7,085,000 $ 768,469 $ 7,853,469
Defeasence of Debt - On August 10, 2005, the Authority defeased certain 1997 Series revenue bonds by placing
the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not include d in the Authority’s
financial statements. The 1997 Series revenue bonds relating to this issuance were defeased on December 15,
2007.
B. Series 2006C Revenue Bond
Purpose: Advanced refunding of the 2002A Series revenue bonds
Interest rates: 5.00-5.25%
Original amount: $134,650,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 5,350,000 $ 5,516,963 $ 10,866,963
2020 5,635,000 5,228,606 10,863,606
2021 5,950,000 4,924,500 10,874,500
2022 6,265,000 4,603,856 10,868,856
2023 6,605,000 4,266,019 10,871,019
2024-2028 38,750,000 15,588,563 54,338,563
2029-2032 39,205,000 4,250,006 43,455,006
$ 107,760,000 $ 44,378,513 $ 152,138,513
79|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
B. Series 2006C Revenue Bond (continued)
Defeasence of Debt - On October 24, 2006, the Authority defeased certain 2002A Series revenue bonds by
placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the
old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the
Authority’s financial statements. The 2002A Series revenue bonds relating to this issuance were defeased on
December 15, 2012.
C. Series 2007A Capital Appreciation/Capitalized Interest Bond(s)
Purpose: Partial advanced refunding of the 2005B revenue bonds; construction and
acquisition of improvements to the transit system.
Interest rates
Capital Appreciation Bonds: 4.55-5.05%
Capital Interest Bonds: 5.00%
Original amount
Capital Appreciation Bonds: $132,329,109
Capital Interest Bonds: $128,795,000
Debt service requirements to maturity, including interest:
Series 2007A Subordinate Lien Capital Appreciation Bond
On March 15, 2018 the remaining debt service for this bond was defeased through the issuance of the
Series 2018 Sales Tax Revenue Subordinate Refunding Bond.
Series 2007A Subordinate Lien Capital Interest Bond
Year ending December 31 Principal Interest Total
2019 $ 2,710,000 $ 6,005,000 $ 8,715,000
2020 2,850,000 5,866,000 8,716,000
2021 - 5,794,750 5,794,750
2022 - 5,794,750 5,794,750
2023 5,300,000 5,662,250 10,962,250
2024-2028 24,870,000 24,982,250 49,852,250
2029-2033 42,500,000 17,038,250 59,538,250
2034-2035 43,225,000 2,188,375 45,413,375
$ 121,455,000 $ 73,331,625 $ 194,786,625
Defeasence of Debt - On June 19, 2007, the Authority defeased certain 2005B Series revenue bonds by placing
the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Authority’s
financial statements. The 2005B Series revenue bonds relating to this issuance were defeased on December 15,
2015.
80|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
D. Series 2008A Revenue Bond
Purpose: Cost of acquisition and construction of certain improvements to the Authority’s
transit system.
Interest rates: 4.75-5.25%
Original amount: $700,000,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 5,885,000 $ 2,696,006 $ 8,581,006
2020 - 2,541,525 2,541,525
2021 - 2,541,525 2,541,525
2022 23,570,000 1,922,813 25,492,813
2023 24,840,000 652,050 25,492,050
$ 54,295,000 $ 10,353,919 $ 64,648,919
E. Series 2009B Federally Taxable-Issuer Subsidy “Build America Bonds”
The Authority has elected to treat the 2009B bonds as “Build America Bonds” for the purposes 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 anticipated cash subsidy
payments from the United States Treasury equal to 35% ($5,085,101) of the interest payable on the 2009B bonds.
Purpose: Cost of acquisition and construction of certain improvements to the Authority’s
transit system.
Interest rates: 5.937%
Original amount: $261,450,000
Debt service requirements to maturity, including interest:
Year ending December 31
Principal Interest Total
Scheduled
Federal
Subsidy
Payment
2019 $ - $ 15,522,286 $ 15,522,286 $ 5,432,800
2020 - 15,522,286 15,522,286 5,432,800
2021 - 15,522,286 15,522,286 5,432,800
2022 - 15,522,286 15,522,286 5,432,800
2023 - 15,522,286 15,522,286 5,432,800
2024-2028 - 77,611,433 77,611,433 27,164,001
2029-2033 55,890,000 72,171,656 128,061,656 25,260,080
2034-2038 140,560,000 41,157,362 181,717,362 14,405,077
2039 65,000,000 1,929,525 66,929,525 675,334
$ 261,450,000 $ 270,481,406 $ 531,931,406 $ 94,668,492
81|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
F. Series 2010A Federally Taxable-Issuer Subsidy “Build America Bonds”
The Authority has elected to treat the 2010A bonds as “Build America Bonds” for the purposes 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 anticipated cash subsidy
payments from the United States Treasury equal to 35% ($3,709,776) of the interest payable on the 2010A bonds.
Purpose: Cost of acquisition and construction of certain improvements to the Authority’s
transit system.
Interest rates: 5.705%
Original amount: $200,000,000
Debt service requirements to maturity, including interest:
Year ending December 31
Principal Interest Total
Scheduled
Federal
Subsidy
Payment
2019 $ - $ 11,410,000 $ 11,410,000 $ 3,993,500
2020 - 11,410,000 11,410,000 3,993,500
2021 - 11,410,000 11,410,000 3,993,500
2022 - 11,410,000 11,410,000 3,993,500
2023 11,410,000 11,410,000 3,993,500
2024-2028 - 57,050,000
57,050,000 19,967,500
2029-2033 - 57,050,000
57,050,000 19,967,500
2034-2038 29,700,000 55,862,219
85,562,219 19,551,776
2039-2040 170,300,000 11,762,569 182,062,569 4,116,900
$ 200,000,000 $ 238,774,788 $ 438,774,788 $ 83,571,176
82|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
G. Series 2012A Revenue Bond
Purpose: Refunding of $32,020,000 of the 2006AB variable rate bonds; refunding of
$100,000,000 of the 2011AB variable rate bonds; and the cost of acquisition and
construction of certain improvements to the Authority’s transit system.
Interest rates: 4.00-5.00%
Original amount: $295,520,000
Debt service requirements to maturity, including interest:
Year ending December 31
Principal Interest Total
2019 $ - $ 7,844,000 $ 7,844,000
2020 - 7,844,000 7,844,000
2021 - 7,844,000 7,844,000
2022 - 7,844,000 7,844,000
2023 7,844,000 7,844,000
2024-2028 - 39,220,000 39,220,000
2029-2033 1,440,000 39,191,200 40,631,200
2034-2038 50,485,000 36,126,700 86,611,700
2039-2042 119,675,000 16,289,000 135,964,000
$ 171,600,000 $ 170,046,900 $ 341,646,900
Defeasence of Debt - On November 28, 2012, the Authority defeased all of the 2011AB variable rate revenue
bonds, and certain 2006AB Series variable rate revenue bonds. The 2006AB and 2011AB Series revenue bonds
relating to this issuance were defeased on November 28, 2012.
On December 28, 2017 a portion of the original debt service for this bond was defeased through the issuance of
the $120,575,000 Series 2017 Sales Tax Revenue Refunding Bond.
H. Series 2015A Revenue Bonds
On February 25, 2015, the Authority issued $668,655,000 in senior sales tax revenue bonds and $192,005,000
in subordinate sales tax revenue bonds to provide resources to purchase qualifying open market securities that
were placed in an irrevocable trust for the purpose of generating resources for the advanced refunding of certain
2008A revenue bonds, certain 2009A revenue bonds, certain 2007A capital appreciation revenue bonds, and
certain 2012A revenue bonds. These resources are intended to provide all future debt payments of $904,901,591
of senior and subordinate sales tax revenue bonds. As a result, the refunded bonds are considered to be defeased
and the liability has been removed from the Authority’s financial statements. These advanced refundings were
undertaken to reduce total debt service payments over the next 23 years by $85,099,817, and resulted in an
economic gain of $77,660,118. As of December 31, 2017, $4,245,000 of the 2012A Revenue Bond was defeased
from the escrow fund.
83|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
H. Series 2015A Revenue Bonds (continued)
Series 2015A Senior Lien Revenue Bond
Purpose: Advanced refunding of $645,705,000 of the 2008A revenue bonds and $44,550,000
of the 2009A revenue bonds; debt service reserve
Interest rates: 4.00-5.00%
Original amount: $668,655,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ - $ 31,072,663 $ 31,072,663
2020 12,425,000 30,769,238 43,194,238
2021 18,235,000 30,029,138 48,264,138
2022 - 29,592,463 29,592,463
2023 8,030,000 29,416,463 37,446,463
2024-2028 191,195,000 123,545,706 314,740,706
2029-2033 201,265,000 74,354,025 275,619,025
2034-2038 237,505,000 28,615,400 266,120,400
$ 668,655,000 $ 377,395,096 $ 1,046,050,096
Series 2015A Subordinate Lien Revenue Bond
Purpose: Advanced refunding of $129,997,040 of the 2007A capital appreciation revenue
bonds and associated accreted interest of $80,404,551, and $4,245,000 of the 2012A
revenue bonds; debt service reserve
Interest rates: 3.00-5.00%
Original amount: $192,005,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ - $ 9,543,250 $ 9,543,250
2020 2,850,000 9,500,500 12,350,500
2021 5,840,000 9,311,750 15,151,750
2022 8,875,000 8,943,875 17,818,875
2023 6,750,000 8,553,250 15,303,250
2024-2024 45,750,000 36,139,500 81,889,950
2029-2033 51,825,000 24,273,875 76,098,875
2034-2037 70,115,000 7,625,625 77,740,625
$ 192,005,000 $ 113,891,625 $ 305,896,625
84|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
I. Series 2016 Revenue Bonds
On August 24, 2016, the Authority issued $145,691,497 in subordinate sales tax revenue bonds with a reoffering
premium of $12,932,675 to provide resources to purchase qualifying open market securities that were placed in
an irrevocable trust for the purpose of generating resources for the advanced refunding of the 2013 revenue bonds
and 2014AB revenue bonds. As a result, the refunded bonds are considered to be defeased and the liability has
been removed from the Authority’s financial statements. These advanced refundings were undertaken to remove
the Authority’s short-term debt which reduced total debt service payments by $156,360,000 over the next three
(3) years. This issuance resulted in an economic loss of $8,045,006. As of June 15, 2018, $62,000,000 of the
2014A Revenue Bond was defeased from the escrow fund.
Series 2016 Subordinate Lien Revenue Bond
Purpose: Refunding of $13,990,000 of the 2013 short-term bonds, and refunding of
$142,370,000 of the 2014AB short-term bonds.
Interest rates: 3.00-4.00%
Original amount: $145,691,498
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ - $ 4,602,300 $ 4,602,300
2020 - 4,602,300 4,602,300
2021 - 4,602,300 4,602,300
2022 - 4,602,300 4,602,300
2023 4,602,300 4,602,300
2024-2028 36,890,000 22,466,250 59,356,250
2029-2031 89,890,000 7,181,000 97,071,000
$ 126,780,000 $ 52,658,750 $ 179,438,750
Series 2016 Subordinate Lien Capital Appreciation Revenue Bond
Purpose: Refunding of $13,990,000 of the 2013 short-term bonds, and refunding of
$142,370,000 of the 2014AB short-term bonds.
Interest rates: 3.32004%
Original amount: $18,911,498
Debt service requirements to maturity, including interest:
Year Ending December 31 Principal Interest Total
2032 $ 18,911,498 $ 13,443,503 $ 32,355,001
$ 18,911,498 $ 13,443,503 $ 32,355,001
85|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
J. Series 2016 Utah County Subordinated Transportation Sales Tax Revenue Bond
On December 22, 2016, Utah County issued a $65 million subordinated transportation sales tax revenue bond to
be used for the construction of the Provo-Orem BRT. 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.
The amount owed to Utah County increased by $960,616 in FY 2018 based on an agreement which states that
Utah County will loan UTA an amount of $2,500,000 per year for operations and maintenance costs until
December 31, 2028 or until the Authority assumes responsibility for such funding. The project opened on August
6, 2018, so the amount was prorated for the year.
Year ending December 31 Principal Interest Total
2028 $ 65,960,616 $ 22,718,868 $ 88,679,484
$ 65,960,616 $ 22,718,868 $ 88,679,484
K. Series 2017 Sales Tax Revenue Refunding Bonds (Sub)
Purpose: Advanced refunding $119,675,000 of the 2012 bonds. The cash flow savings as a
result of the refunding is $80,531,986
Interest rates: 2.41%
Original amount: $120,575,000
Economic Gain as a result of refunding: $26,665,362.89
On March 15, 2018 the original debt service for this bond was defeased through the issuance of the $120,575,000
Series 2018 Sales Tax Revenue Subordinate Refunding Bond.
L. Series 2018 Revenue Bonds
On March 15, 2018, the Authority issued $83,765,000 in senior sales tax revenue bonds and $115,540,000 in
subordinate sales tax revenue bonds to provide resources to purchase qualifying open market securities that were
placed in an irrevocable trust for the purpose of generating resources for the advanced refunding of certain 2017
revenue bonds, certain 2007A revenue bonds, and to finance certain capital projects. These resources are
intended to provide all future debt payments for the 2017 and 2007A Bonds in the amount of $125,172,394 of
sales tax revenue bonds. As a result, the refunded bonds are considered to be defeased and the liability has been
removed from the Authority’s financial statements. The advanced refundings were undertaken to reduce total
debt service payments over the next 14 years by $122,907,069, and resulted in an economic gain of
$5,587,749.09.
The financing for certain construction projects consisted of $88,500,000 and include funds for the Salt Lake City
Airport Light Rail Station relocation of $24,905,000.
86|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
L. Series 2018 Revenue Bonds (continued)
Series 2018 Senior Lien Revenue Bond
Purpose: Finance Capital Projects - $58,860,000 for other projects and $24,905,000 for the
Salt Lake City Airport Light Rail Station relocation.
Interest rates: 3.25-5.00%
Original amount: $83,765,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 1,500,000 $ 3,612,400 $ 5,112,400
2020 - 3,537,400 3,537,400
2021 - 3,537,400 3,537,400
2022 - 3,537,400 3,537,400
2023 - 3,537,400 3,537,400
2024-2028 - 17,687,000 17,687,000
2029-2033 19,420,000 17,687,000 37,107,000
2034-2036 62,845,000 5,430,650 68,275,650
$ 83,765,000 $ 58,566,650 $ 142,331,650
Series 2018 Subordinate Lien Revenue Bond
Purpose: Advanced refunding of $112,125,000 of the 2017 revenue bonds and associated
accreted interest of $3,975,864, and $3,415,000 of the 2007A revenue bonds; debt
service reserve
Interest rates: 3.125-5.00%
Original amount: $115,540,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 420,000 $ 5,133,894 $ 5,553,894
2020 440,000 5,112,894 5,552,894
2021 3,235,000 5,090,894 8,325,894
2022 3,395,000 4,929,144 8,324,144
2023 3,565,000 4,759,394 8,324,394
2024-2028 20,245,000 20,956,219 41,201,219
2029-2033 13,775,000 16,917,631 30,692,631
2034-2038 2,155,000 14,548,950 16,703,950
2039-2041 66,665,000 7,451,530 74,116,530
$ 113,895,000 $ 84,900,550 $ 198,795,550
87|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
M. 2015 Issuance 12-Year Lease Financing
Purpose: Acquisition of 10 CNG buses and equipment
Interest rates: 2.0908%
Original amount: $5,283,500
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 420,447 $ 77,768 $ 498,215
2020 429,322 68,893 498,215
2021 438,385 59,830 498,215
2022 447,640 50,575 498,215
2023 457,089 41,126 498,215
2024-2027 1,718,648 66,679 1,785,327
$ 3,911,531 $ 364,871 $ 4,276,402
N. 2015 Issuance 5-Year Lease Financing
Purpose: Acquisition of 20 flex/paratransit vehicles
Interest rates: 1.3186%
Original amount: $3,583,370
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 720,885 $ 10,762 $ 731,647
2020 424,988 1,870 426,858
$ 1,145,873 $ 12,632 $ 1,158,505
O. 2015 Issuance 4-Year Lease Financing
Purpose: Acquisition of 50 RideShare vans
Interest rates: 1.1778%
Original amount: $1,582,018
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 243,467 $ 910 $ 44,377
$ 243,467 $ 910 $ 244,377
88|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
P. 2016 Issuance 12-Year Lease Financing
Purpose: Acquisition of 5 buses and equipment for use in the canyons for ski service
Interest rates: 1.6322%
Original amount: $2,480,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 195,686 $ 32,021 $ 227,707
2020 198,904 28,803 227,707
2021 202,175 25,532 227,707
2022 205,500 22,207 227,707
2023 208,879 18,828 227,707
2024-2028 1,040,061 41,546 1,081,607
$ 2,051,205 $ 168,937 $ 2,220,142
Q. 2016 Issuance 5-Year Lease Financing
Purpose: Acquisition of 33 flex/paratransit vehicles
Interest rates: 1.3008%
Original amount: $4,546,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 912,006 $ 27,575 $ 939,581
2020 923,940 15,640 939,580
2021 700,361 3,804 704,165
$ 2,536,307 $ 47,019 $ 2,583,326
R. 2016 Issuance 4-Year Lease Financing
Purpose: Acquisition of 56 RideShare vans
Interest rates: 1.2298%
Original amount: $1,647,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 415,524 $ 6,648 $ 422,172
2020 315,543 1,616 317,159
$ 731,067 $ 8,264 $ 739,331
89|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
8 – LONG TERM DEBT (continued)
S. 2017 Issuance 12-Year Lease Financing
Purpose: Acquisition of 47 buses and equipment
Interest rates: 2.2440%
Original amount: $24,390,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 1,835,389 $ 484,922 $ 2,320,311
2020 1,877,001 443,310 2,320,311
2021 1,919,557 400,754 2,320,311
2022 1,963,077 357,234 2,320,311
2023 2,007,585 312,726 2,320,311
2024-2028 10,741,663 859,891 11,601,554
2029 2,103,279 23,672 2,126,951
$ 22,447,551 $ 2,882,509 $ 25,330,060
T. 2017 Issuance 5-Year Lease Financing
Purpose: Acquisition of 13 flex/paratransit vehicles
Interest rates: 1.8200%
Original amount: $1,444,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 283,932 $ 18,427 $ 302,359
2020 289,143 13,216 302,359
2021 294,449 7,910 302,359
2022 274,656 2,506 277,162
$ 1,142,180 $ 42,059 $ 1,184,239
U. 2017 Issuance 4-Year Lease Financing
Purpose: Acquisition of 36 RideShare vans
Interest rates: 1.7700%
Original amount: $1,307,000 (**A vehicle was totaled and paid off in 2018, therefore principal was
reduced by $28,893**)
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 314,520 $ 14,017 $ 328,538
2020 320,176 8,362 328,538
2021 297,713 2,648 300,361
$ 932,409 $ 25,027 $ 957,431
90|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
V. 2018 Issuance 12-Year Lease Financing
Purpose: Acquisition of 24 buses and 2 Trolley style buses
Interest rates: 3.295%
Original amount: $12,496,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 865,736 $ 396,411 $ 1,262,147
2020 894,697 367,450 1,262,147
2021 924,626 337,521 1,262,147
2022 955,557 306,590 1,262,147
2023 987,522 274,625 1,262,147
2024-2028 5,455,798 854,938 6,310,736
2029-2030 2,341,197 77,918 2,419,115
$ 12,425,133 $ 2,615,453 $ 15,040,586
W. 2018 Issuance 5-Year Lease Financing
Purpose: Acquisition of 36 flex/paratransit vehicles
Interest rates: 3.057%
Original amount: $381,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 71,802 $ 10,467 $ 82,269
2020 74,028 8,241 82,269
2021 76,323 5,946 82,269
2022 78,689 3,580 82,269
2023 74,273 1,140 75,413
$ 375,115 $ 29,374 $ 404,489
X. 2018 Issuance 4-Year Lease Financing
Purpose: Acquisition of 60 RideShare vans
Interest rates: 3.022%
Original amount: $1,500,000
Debt service requirements to maturity, including interest:
Year ending December 31 Principal Interest Total
2019 $ 359,099 $ 39,494 $ 398,593
2020 370,103 28,490 398,593
2021 381,444 17,149 398,593
2022 359,916 5,461 365,377
$ 1,470,562 $ 90,594 $ 1,561,156
91|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
Y. Capital Leased Assets
The following represents the assets acquired through the 2015, 2016, 2017 and 2018 series capital leases and the
corresponding accumulated depreciation.
2015 Series
Leases
2016 Series
Leases
2017 Series
Leases
2018 Series
Leases
Revenue vehicles
12-year lease $ 4,859,620 $ 2,480,000 $ 23,680,879 $ 9,245,110
5-year lease 3,626,139 3,719,002 - -
4-year lease 1,587,375 1,647,000 1,267,806 275,397
Subtotal 10,073,134 7,846,002 24,948,685 9,520,507
Accumulated
depreciation (5,094,073) (3,599,034) (2,657,979) (139,879)
Total capital assets (net) $ 4,979,061 $ 4,246,968 $ 22,290,706 $ 9,380,628
92|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
Long Term Debt Summary Table FY 2018
Balance
Additions
Reductions
Balance Amount
due within
one year 12/31/2017 12/31/2018
Bonds
Series 2005A Revenue Bond $ 8,635,000 $ - $ (1,550,000) $ 7,085,000 $ 1,635,000
Series 2006C Revenue Bond 112,845,000 - (5,085,000) 107,760,000 5,350,000
Series 2007A Capital Appreciation 2,332,069 - (2,332,069) - -
Series 2007A Current Interest Bond 124,020,000 - (2,565,000) 121,455,000 2,710,000
Series 2008A Revenue Bond 54,295,000 - - 54,295,000 5,885,000
Series 2009B Build America Bond 261,450,000 - - 261,450,000 -
Series 2010A Build America Bond 200,000,000 - - 200,000,000 -
Series 2012A Revenue Bond 171,600,000 - - 171,600,000 -
Series 2015A Revenue Bond (Sr) 668,655,000 - - 668,655,000 -
Series 2015A Revenue Bond (Sub) 192,005,000 - - 192,005,000 -
Series 2016 Revenue Bond 126,780,000 - - 126,780,000 -
Series 2016 Capital Appreciation 18,911,498 - - 18,911,498 -
Series 2016 UTCT 65,000,000 960,616 - 65,960,616 -
Series 2017 Revenue Bond (Sub) 120,575,000 - (120,575,000) - -
Series 2018 Revenue Bond (Sr) - 83,765,000 - 83,765,000 1,500,000
Series 2018 Revenue Bond (Sub) - 115,540,000 (1,645,000) 113,895,000 420,000
2015 12-Year Lease 4,323,227 - (411,696) 3,911,531 420,447
2015 5-Year Lease 1,857,256 - (711,383) 1,145,873 720,885
2015 4-Year Lease 636,293 - (392,826) 243,467 231,295
2016 12-Year Lease 2,243,724 - (192,520) 2,051,204 195,686
2016 5-Year Lease 3,437,053 - (900,746) 2,536,307 912,006
2016 4-Year Lease 1,140,985 - (409,918) 731,067 415,524
2017 12-Year Lease 24,390,000 - (1,942,449) 22,447,551 1,835,389
2017 5-Year Lease 1,444,000 - (301,821) 1,142,179 283,931
2017 4-Year Lease 1,307,000 - (374,592) 932,408 314,520
2018 12-Year Lease - 12,496,000 (70,867) 12,425,133 865,736
2018 5-Year Lease - 381,000 (5,885) 375,115 71,802
2018 4-Year Lease - 1,500,000 (29,439) 1,470,561 359,099
2,167,883,105 214,642,616 (139,496,211) 2,243,029,510 24,126,320
Unamortized Premiums
Series 2005A Revenue Bond 176,244 - (63,865) 112,379
Series 2006C Revenue Bond 6,866,239 - (822,061) 6,044,178
Series 2007A Current Interest Bond 6,224,106 - (483,106) 5,741,000
Series 2008A Revenue Bond 1,450,701 - (332,679) 1,118,022
Series 2012A Revenue Bond 14,013,078 - (562,398) 13,450,680
Series 2015A Revenue Bond (Sr) 95,034,418 - (9,085,303) 85,949,114
Series 2015A Revenue Bond (Sub) 28,420,439 - (2,738,465) 25,681,975
Series 2016 Revenue Bond 11,704,515 - (935,741) 10,768,774
Series 2018 Revenue Bond (Sr) - 7,562,137 (319,290) 7,242,847
Series 2018 Revenue Bond (Sub) 10,277,332 (275,359) 10,001,973
163,889,740 17,839,469 (15,618,267) 166,110,942
Total Long Term Debt $ 2,331,772,845 $ 232,482,085 $(155,114,478) $ 2,409,140,452 $ 24,126,320
93|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 8 – LONG TERM DEBT (continued)
Long Term Debt Summary Table FY 2017
Long Term Debt Summary Table FY 2017
Balance
Additions
Reductions
Balance Amount
due within
one year 12/31/2016 12/31/2017
Bonds
Series 2005A Revenue Bond $ 10,105,000 $ - $ (1,470,000) $ 8,635,000 $ 1,550,000
Series 2006C Revenue Bond 117,670,000 - (4,825,000) 112,845,000 5,085,000
Series 2007A Capital Appreciation 2,332,069 - - 2,332,069 -
Series 2007A Current Interest Bond 126,475,000 - (2,455,000) 124,020,000 2,565,000
Series 2008A Revenue Bond 54,295,000 - - 54,295,000 -
Series 2009B Build America Bond 261,450,000 - - 261,450,000 -
Series 2010A Build America Bond 200,000,000 - - 200,000,000 -
Series 2012A Revenue Bond 282,755,000 - (111,155,000) 171,600,000 -
Series 2015A Revenue Bond (Sr) 668,655,000 - - 668,655,000 -
Series 2015A Revenue Bond (Sub) 192,005,000 - - 192,005,000 -
Series 2016 Revenue Bond 126,780,000 - - 126,780,000 -
Series 2016 Capital Appreciation 18,911,498 - - 18,911,498 -
Series 2016 UTCT 14,499,803 50,500,197 - 65,000,000 -
Series 2017 Revenue Bond (Sub) - 120,575,000 - 120,575,000 -
2015 12-Year Lease 4,726,469 - (403,242) 4,323,227 411,755
2015 5-Year Lease 2,559,388 - (702,133) 1,857,256 711,447
2015 4-Year Lease 1,030,227 - (393,934) 636,293 399,765
2016 12-Year Lease 2,433,129 - (189,405) 2,243,724 192,520
2016 5-Year Lease 4,325,650 - (888,597) 3,437,053 900,225
2016 4-Year Lease 1,546,418 - (405,433) 1,140,985 410,448
2017 12-Year Lease - 24,390,000 - 24,390,000 1,942,449
2017 5-Year Lease - 1,444,000 - 1,444,000 301,820
2017 4-Year Lease - 1,307,000 - 1,307,000 344,899
2,092,554,651 198,216,197 (122,887,744) 2,167,883,105 14,815,328
Unamortized Premiums
Series 2005A Revenue Bond 254,368 - (78,125) 176,244
Series 2006C Revenue Bond 7,742,907 - (876,667) 6,866,239
Series 2007A Current Interest Bond 6,726,090 - (501,982) 6,224,106
Series 2008A Revenue Bond 1,783,381 - (332,679) 1,450,701
Series 2012A Revenue Bond 24,557,337 - (10,544,259) 14,013,078
Series 2015A Revenue Bond (Sr) 104,119,722 - (9,085,303) 95,034,418
Series 2015A Revenue Bond (Sub) 31,158,903 - (2,738,465) 28,420,439
Series 2016 Revenue Bond 12,640,256 - (935,741) 11,704,515
188,982,964 - (25,093,221) 163,889,740
Total Long Term Debt $ 2,281,537,615 $ 198,216,197 $(147,980,965) $ 2,331,772,845 $ 14,815,328
94|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
Years Ended December 31, 2018 and 2017
NOTE 9 – 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, 2018, the Authority also has purchasing commitments for several capital projects. The largest of
these commitments are as follows:
$66.3 million Depot District
$ 8.7 million Bus Replacements
$ 5.9 million Sandy Civic Center Parking Structure
$ 5.2 million Electric Bus Implementation
$ 3.8 million TRAX Airport Relocation Design
$ 2.0 million Positive Train Control
NOTE 10 –SUBSEQUENT EVENTS
The Authority has no subsequent events to report and has performed an evaluation of subsequent events through June 4,
2019 which is the date the basic financial statements were available to be issued.
95|Page
U TA H T R A N S I T
AU T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Required
Supplementary
Information
Other
Supplementary
Information 96|Page
UTAH TRANSIT AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
Years Ended December 31, 2018 and 2017
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – 10 YEARS
2018 2017 2016 2015 2014
Total Pension Liability
Service cost $ 9,550,863 $ 8,368,262 $ 7,711,706 $ 7,545,807 $ 7,284,379
Interest on total pension liability 21,512,781 20,368,031 19,604,345 18,717,411 17,623,248
Voluntary member contributions 223,572 697,576 437,923 916,567 275,663
Gains or losses 4,893,150 4,915,564 (927,077) (1,973,177) -
Assumption changes or inputs - 5,079,447 (3,955,702) 7,725,363 -
Benefits paid (15,474,819) (13,008,142) (12,980,615) (11,554,824) (10,181,732)
Net change in total pension liability 20,705,547 26,420,738 9,890,580 21,377,147 15,001,558
Total pension liability - beginning 305,381,116 278,960,378 269,069,798 247,692,651 232,691,093
Total pension liability - ending (a) 326,086,663 305,381,116 278,960,378 269,069,798 247,692,651
Plan Fiduciary Net Position
Contributions - employer $ 22,355,434 $ 20,506,163 $ 19,603,952 $ 16,745,254 $ 15,366,694
Contributions - members 223,572 697,576 437,923 916,567 275,663
Net investment income (16,629,921) 30,598,620 7,591,211 (1,085,458) 5,946,916
Benefits paid (15,474,819) (13,008,142) (12,980,615) (11,554,824) (10,181,732)
Administrative expense (440,279) (324,912) (249,141) (244,011) (219,504)
Net change in plan fiduciary net position (9,966,013) 38,469,305 14,403,330 4,777,528 11,188,037
Plan fiduciary net position - beginning 204,504,562 166,035,257 151,631,927 146,854,399 135,666,362
Plan fiduciary net position - ending (b) 194,538,549 204,504,562 166,035,257 151,631,927 146,854,399
Net pension liability / (asset) - ending (a-b) $ 131,548,114 $100,876,554 $112,925,121 $ 117,437,871 $ 100,838,252
Plan fiduciary net position as a 59.66% 66.97% 59.50% 56.40% 59.29%
percentage of the total pension liability
Projected covered employee payroll $ 132,521,079 $126,690,540 $115,430,618 $ 110,727,134 $ 106,004,057
Net pension liability as a percentage 99.27% 79.62% 97.83% 106.06% 95.13%
of covered employee payroll
This schedule is intended to present 10 years of information. Subsequent years will be added as the information becomes available.
97|Page
UTAH TRANSIT AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
Years Ended December 31, 2018 and 2017
STATEMENT OF REQUIRED EMPLOYER CONTRIBUTION – 10 YEARS
Year
Actuarial
Determined
Contribution
Actual Employer
Contribution
Contribution
Deficiency
(Excess)
Projected
Covered
Employee Payroll
Contribution as
Percentage of Covered
Payroll
2018
$21,203,373 $22,355,434 $(754,498) $132,521,079 16.87%
2017
2016
20,270,486 20,506,163 (235,677) $126,690,540 16.19%
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%
2012 12,206,257 11,645,982 560,275 96,750,285 12.04%
2011 10,114,755 10,114,755 - 91,265,129 11.08%
2010 10,047,874 10,047,874 - 93,259,215 10.77%
2009 10,658,339 10,658,339 - 88,834,546 12.00%
MONEY-WEIGHTED RATE OF RETURN – 10 YEARS
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
2018 -7.77%
2017
2016
18.01%
4.90%
2015 -0.72%
2014 4.31%
Schedule is intended to show information for 10 years. Additional years will be displayed when available.
98|Page
UTAH TRANSIT AUTHORITY
REQUIRED SUPPLEMENTARY INFORMATION
Years Ended December 31, 2018 and 2017
NOTE 1 – VALUATION DATE
The valuation date is January 1, 2018. This is the date as of which the actuarial valuation is performed. The measurement
date is December 31, 2018. This is the date as of which the net pension liability is determined. The reporting date is
December 31, 2018. This is the employer’s fiscal year ending date.
NOTE 2 – METHODS AND ASSUMPTIONS USED TO DETERMINE CONTRIBUTION RATES
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, open
Remaining amortization period 18 years
Asset valuation method 5-year smoothed market less unrealized
Cost of Living Adjustments None
Inflation 2.3%
Salary increases 5.40% per annum for the first five years of employment;
3.40% per annum thereafter
Investment rate of return 7.00%, 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
99|Page
U TA H T R A N S I T
AU T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Supplementary
Schedules
100|Page
UTAH TRANSIT AUTHORITY
SUPPLEMENTARY SCHEDULE (Unaudited)
Years Ended December 31, 2018 and 2017
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION BUDGET (Non-GAAP Budget Basis)
AND ACTUAL
2018 2018 Favorable
Budget Actual (Unfavorable)
Revenues
Contributions from other gov'ts, sales tax $278,909,000 $282,933,591 $4,024,591
Federal preventative maintenance grants 60,827,000 61,820,668 993,668
Passenger revenues 50,337,000 52,051,892 1,714,892
Advertising 2,483,000 2,412,500 (70,500)
Investment income 3,732,000 6,525,872 2,793,872
Other income 6,772,000 8,155,668 1,383,668
Total revenues 403,060,000 413,900,191 10,840,191
Operating Expenses
Bus services $97,522,000 $96,719,747 $802,253
Rail services 76,339,000 75,157,087 1,181,913
Paratransit services 23,010,000 21,858,532 1,151,468
Other services (less non-operating)3,210,000 3,056,191 153,809
Operations support 45,154,000 45,557,749 (403,749)
Administration (less non-operating)32,394,000 34,784,200 (2,390,200)
Total operating expenses 277,629,000 277,133,506 495,494
Non-Operating Expenses (Revenues)
Interest expense 104,777,000 91,000,388 13,776,612
Principal 9,200,000 10,845,000 (1,645,000)
Non-operating 5,505,000 4,809,747 695,253
Total non-operating expenses 119,482,000 106,655,135 12,826,865
Total Operating and Non-Operating Expenses $397,111,000 $383,788,641 $13,322,359
Capital Expenses (Revenues)
Federal and local grants ($56,114,493)($31,585,904)($24,528,589)
Local contributions (14,318,487)(12,151,003)(2,167,484)
Capital lease (21,163,045)- (21,163,045)
Bonds (50,877,399)- (50,877,399)
Project Expenses 191,178,829 124,693,500 66,485,329
Total capital expenses (revenues)$48,705,405 $80,956,593 ($32,251,188)
Project Expenses-less transfers to Capital Assets in 2018 (86,039,389)
Capital Maintenance Projects 38,654,111
Total Revenues (Operating and Capital)457,637,098
- Less Total Expenses (Operating, Non-Operating, and
Capital (after Capitalization)(422,442,752)
- Less Depreciation Expense (80,565,077)
- Less Non-Cash Capital Contributions 20,142,932
+ Plus Principal Payments on Long-term Debt 10,845,000
(14,382,799)$
Change in Net Position (Statement of Revenues, Expenses, and Changes in Net
Position)
101|Page
U TA H T R A N S I T
AU T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Statistical
102|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
NET POSITION AS OF December 31 - 10 years
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Capital Investment in Net
Assets $827,646,243 $894,275,843 $924,260,135 $1,040,640,236 $1,230,633,230 $1,327,585,097 $1,364,803,454 $1,366,337,801 $1,133,832,808 $953,013,398
Restricted 132,734,222 89,153,732 67,415,969 78,064,113 62,860,625 7,252,625 3,952,493 3,929,644 4,071,242 3,813,103
Unrestricted 18,914,155 10,247,844 71,467,610 76,467,063 137,910,343 242,267,181 304,753,885 276,960,064 505,464,819 527,478,988
Total Net Position 979,294,620 993,677,419 1,063,143,714 1,195,171,412 1,431,404,198 1,577,104,903 1,673,509,832 1,647,227,509 1,643,368,869 1,484,305,489
Restatement - - - (9,497,521) (115,047,267) 4,931,557 - - - -
Total Net Position, Restated $979,294,620 $993,677,419 $1,063,143,714 $1,185,673,891 $1,316,356,931 $1,582,036,460 $1,673,509,832 $1,647,227,509 $1,643,368,869 $1,484,305,489
CHANGE IN NET POSITION - 10 YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Operating Revenues $54,464,392 $54,525,870 $52,891,021 $54,346,242 $53,761,223 $52,044,200 $46,422,916 $41,527,090 $36,893,396 $35,163,780
Operating Expenses 401,161,541 427,777,940 422,543,342 394,062,733 398,626,029 378,224,993 319,322,223 288,531,160 257,267,580 255,931,379
Operating loss (346,697,149) (373,252,070) (369,652,321) (339,716,491) (344,864,806) (326,180,793) (272,899,307) (247,004,070) (220,374,184) (220,767,599)
Non-Operating Revenues 268,435,411 246,722,487 226,957,532 209,462,264 182,843,232 173,520,664 200,370,290 205,877,440 219,663,490 220,089,438
Income (loss) before capital
contributions (78,261,738) (126,529,583) (142,694,789) (130,254,227) (162,021,574) (152,660,129) (72,529,017) (41,126,630) (710,694) (678,161)
Capital contributions 63,879,839 57,063,288 20,164,612 9,068,708 11,389,311 56,255,200 98,811,340 44,985,270 159,744,074 275,609,643
Change in net position $(14,381,899) $(69,466,295) $(122,530,177) $(121,185,519) $(150,632,263) $(96,404,929) $26,282,323 $3,858,640 $159,033,380 $274,931,482
103|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
Revenue History by Source - 10 Years
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Operating $54,464,392 $54,525,870 $52,891,021 $54,346,242 $53,761,223 $52,044,200 $46,422,916 $41,527,090 $36,893,396 $35,163,780
Sales taxes 282,933,591 265,770,775 245,008,417 227,703,023 214,683,276 203,806,329 196,693,543 183,091,524 171,893,732 171,854,169
Investment 6,525,872 2,873,787 1,732,939 2,831,406 5,803,226 1,455,039 1,892,549 3,672,397 3,827,161 9,389,045
Other 8,155,668 3,954,893 3,108,191 8,314,065 3,724,610 4,347,724 2,351,713 3,483,140 2,929,254 2,797,757
352,079,523 327,125,325 302,740,568 293,194,736 277,972,335 261,653,292 247,360,721 231,774,151 215,543,543 219,204,751
Federal Grants
Federal Preventative
Maintenance Grants 61,820,668 62,313,994 59,772,235 49,452,677 47,760,737 47,986,240 46,719,891 47,735,443 46,500,000 44,974,000
Federal Planning
Grants - 3,562,534 2,547,335 2,994,139 3,868,252 1,985,766 11,583,980 12,637,764 15,224,723
Federal Capital Grants 31,585,104 53,960,024 17,054,298 7,819,096 8,025,628 48,669,408 85,168,542 44,864,016 156,727,641 256,527,803
93,405,772 116,274,018 80,389,067 59,819,108 58,780,504 100,523,900 133,874,199 104,183,439 215,865,405 316,726,526
32,293,935 3,103,264 3,110,314 1,249,612 3,363,683 7,585,792 13,642,798 121,254 3,046,433 19,081,840
$477,779,230 $446,502,607 $386,239,949 $354,263,456 $340,116,522 $369,762,984 $394,877,718 $336,078,844 $434,455,381 $555,013,117
Expense History by Function - 10 Years
2018 2018 2016 2015 2014 2013 2012 2011 2010 2009
$96,719,747 $88,928,063 $85,841,973 $77,092,676 $79,060,631 $78,894,435 $78,894,799 $81,208,651 $79,522,988 $79,054,373
75,157,087 72,895,607 84,165,069 67,254,632 70,365,953 61,086,101 46,049,338 38,135,480 33,787,601 34,681,800
21,858,532 19,572,367 19,341,116 18,511,580 18,748,699 18,202,211 17,516,117 16,054,555 14,570,401 14,595,021
3,056,191 2,982,176 2,949,643 2,918,871 3,183,892 701,656 596,583 535,897 589,356 517,571
45,557,749 41,932,571 37,831,682 32,051,926 28,380,563 28,439,826 25,247,271 21,643,830 23,147,075 26,083,512
39,593,947 31,423,844 38,840,643 35,189,725 35,409,918 28,533,912 26,664,222 26,340,573 22,286,055 26,105,521
38,654,111 20,602,425 - - - - - - - -
80,565,077 149,440,887 153,573,216 161,043,323 163,476,373 162,366,852 124,353,893 104,612,174 83,364,104 74,893,581
91,000,388 88,190,962 85,415,870 80,575,328 91,311,842 87,132,004 48,462,258 42,878,130 17,313,507 23,050,963
810,914 810,914 810,914 810,914 810,914 810,914 810,914 810,914 810,914 1,099,293
$492,973,743 $516,779,816 $508,770,126 $475,448,975 $490,748,785 $466,167,911 $368,595,395 $332,220,204 $275,392,001 $280,081,635
¹ Includes major investment studies
² Reported as non-capitalized interest
³ See Notes to the Financial Statement, Note 2.K
Operations Support
Administration ¹
Depreciation
Interest ²
Recoverable Sales Tax,
Interlocal ³
Capital Maintenance
Projects
Other Capital
Contributions
Bus Service
Rail Service
Paratransit Service
Other Service
104|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
LOCAL CONTRIBUTIONS IN THE FORM OF SALES TAX BY COUNTY - 10 YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Box Elder ¹$1,898,308 $1,957,740 $1,790,352 $1,552,291 $1,418,268 $1,300,577 $1,279,794 $1,226,730 $1,269,478 $1,297,586
Davis 31,883,835 30,633,547 27,606,440 23,178,724 21,459,683 20,023,042 18,692,038 17,880,017 16,964,089 17,091,892
Salt Lake 174,704,191 163,407,564 153,201,907 146,866,479 139,199,088 132,741,112 129,169,357 120,094,110 112,379,366 112,076,511
Tooele ²2,815,189 2,302,492 1,798,971 1,521,097 1,384,631 1,349,366 1,364,179 1,207,539 1,227,109 1,136,816
Utah 45,665,232 43,023,303 38,601,427 36,221,930 33,752,513 31,905,764 30,576,235 27,743,162 25,397,367 25,222,227
Weber 25,966,836 24,446,129 22,009,320 18,362,502 17,469,093 16,486,468 15,611,940 14,939,966 14,656,323 15,029,137
$282,933,591 $265,770,775 $245,008,417 $227,703,023 $214,683,276 $203,806,329 $196,693,543 $183,091,524 $171,893,732 $171,854,169
¹ Includes Brigham City, Perry and Willard cities only
² Includes the cities of Tooele and Grantsville; and the unincorporated areas of Erda, Lakepoint, Stansbury Park and Lincoln
LOCAL TRANSIT SALES TAX RATES BY COUNTY - 10 YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Box Elder 0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%
Davis 0.6500%0.6500%0.6500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%
Salt Lake 0.6875%0.6875%0.6875%0.6875%0.6875%0.6875%0.6875%0.6875%0.6875%0.6875%
Tooele 0.4000%0.4000%0.4000%0.3000%0.3000%0.3000%0.3000%0.3000%0.3000%0.3000%
Utah 0.5260%0.5260%0.5260%0.5260%0.5260%0.5260%0.5260%0.5260%0.5260%0.5260%
Weber 0.6500%0.6500%0.6500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%0.5500%
105|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
PRINCIPAL CONTRIBUTORS OF SALES TAX BY COUNTY - 2009 and 2018
Rank
Percentage of
contributions Amount Rank
Percentage of
contributions Amount
Salt Lake County 1 61.75%$174,704,191 1 65.22%$112,076,511
Utah County 2 16.14%45,665,232 2 14.68%25,222,227
Davis County 3 11.27%31,883,835 3 9.95%17,091,892
Weber County 4 9.18%25,966,836 4 8.75%15,029,137
Box Elder County 5 0.67%1,898,308 5 0.76%1,297,586
Tooele County 6 1.00%2,815,189 6 0.66%1,136,816
$282,933,591 $171,854,169
FARES - 10 Years
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
(4/1/12)(5/1/11)(11/1/10)(4/1/09)
Cash Fares
Base Fare $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.35 $2.25 $2.00 $2.00
Senior Citizen/Disabled 1.25 1.25 1.25 1.25 1.25 1.25 1.15 1.10 1.00 1.00
Ski Bus 4.50 4.50 4.50 4.50 4.50 4.50 4.25 4.00 3.50 3.50
Paratransit (Flextrans)4.00 4.00 4.00 4.00 4.00 4.00 3.50 2.75 2.50 2.50
Commuter Rail Base Rate 2.50 2.50 2.50 2.50 2.50 2.50 2.35 2.25 2.00 3.00
Commuter Rail Additional Station 0.60 0.60 0.60 0.60 0.60 0.60 0.55 0.50 0.50 0.50
Commuter Rail Maximum Rate 10.30 10.30 10.30 10.30 10.30 10.30 5.10 5.25 5.00 6.00
Express 5.50 5.50 5.50 5.50 5.50 5.50 5.25 5.00 4.50 4.50
Streetcar 1.00 1.00 1.00 1.00 1.00 1.00 n/a n/a n/a n/a
Monthly Passes
Adult $83.75 $83.75 $83.75 $83.75 $83.75 $83.75 $78.50 $75.00 $67.00 $67.00
Minor 62.75 62.75 62.75 62.75 62.75 62.75 58.75 56.25 49.75 49.75
College Student 62.75 62.75 62.75 62.75 62.75 62.75 58.75 56.25 49.75 49.75
Senior Citizen/Disabled 41.75 41.75 41.75 41.75 41.75 41.75 39.25 37.50 33.50 33.50
Express 198.00 198.00 198.00 198.00 198.00 198.00 189.00 180.00 162.00 162.00
Paratransit n/a n/a n/a n/a n/a n/a n/a n/a n/a 84.00
Other Fares
Day Pass $6.25 $6.25 $6.25 $6.25 $6.25 $6.25 $5.75 $5.50 $5.00 $5.00
Group Pass 15.00 15.00 15.00 15.00 15.00 15.00 14.00 13.50 12.00 13.75
Summer Youth 99.00 99.00 99.00 99.00 99.00 n/a n/a n/a n/a 99.50
Token - 10-Pack 22.50 22.50 22.50 22.50 22.50 22.50 21.00 20.25 17.75 17.75
Paratransit - 10-Ride Ticket 40.00 40.00 40.00 40.00 40.00 40.00 35.00 30.00 25.00 22.00
Paratransit - 30-Ride Ticket n/a n/a n/a n/a n/a n/a n/a n/a n/a 54.00
Ski Day Pass n/a n/a n/a n/a n/a n/a n/a 8.00 7.00 7.00
2018 2009
106|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
DEBT SERVICE COVERAGE - 10 YEARS
Sales Taxes Collected Coverage Ratio Personal Income of Percentage of Per
Fiscal Year Principle Interest (less Proposition 1)of Sales Taxes UTA Service Area Personal Income Capita
2009 6,665,000$ 59,841,145$ 171,854,169$ 2.58 71,636,728,000$ 0.09%30.81$
2010 6,960,000 63,782,164 171,893,732 2.43 73,036,786,000 0.10%32.13
2011 7,300,000 71,932,011 183,091,524 2.31 77,738,053,000 0.10%35.48
2012 7,615,000 71,837,998 196,693,543 2.48 82,025,459,000 0.10%35.05
2013 7,450,000 84,319,531 203,806,329 2.22 85,916,480,000 0.11%39.83
2014 7,810,000 91,382,184 214,683,276 2.16 89,319,546,000 0.11%42.46
2015 11,445,000 84,785,200 227,703,023 2.37 93,617,901,000 0.10%40.48
2016 13,570,000 94,893,898 238,584,981 2.20 103,831,295,168 0.10%44.00
2017 8,750,000 77,765,121 256,742,750 2.97 109,771,147,642 0.08%34.80
2018 10,845,000 89,110,270 273,007,256 2.73 n/a n/a n/a
Source: Note 8
Note:Does not include Utah County Provo Orem BRT debt
2018 income numbers not available as of June 2019
DEMOGRAPHIC AND ECONOMIC STATISTICS - 10 YEARS
Estimated Personal Income Per Capita Unemployment
Fiscal Year Population in UTA Service Area Personal Income Rate
2009 2,158,269 $71,636,728,000 $33,192 6.0%
2010 2,201,736 73,036,786,000 33,172 7.5%
2011 2,233,268 77,738,053,000 34,809 6.0%
2012 2,266,836 82,025,459,000 36,185 5.6%
2013 2,303,781 85,916,480,000 37,294 3.5%
2014 2,335,999 89,319,546,000 38,236 3.5%
2015 2,377,256 93,617,901,000 39,381 3.4%
2016 2,418,075 103,772,062,000 42,915 3.1%Percentage of Utah
2017 2,463,015 108,805,744,000 44,176 3.0%79.40%
2018 n/a n/a n/a 3.0%
Source: US Dept of Commerce, Bureau of Economic Analysis, Regional Data (www.bea.gov)
Unemployment rate- Utah Department of Workforce Services
2018 statistic not available as of June 2019
Bonds
107|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
PRINCIPAL EMPLOYERS - 2009 and 2017
Employer Industry Employees Rank
% Total
Employment Employer Employees Rank
% Total
Employment
20,000 +1 1.3%15,250-20,498 1 1.5%
20,000 +1 1.3%14,700-22,494 4 1.4%
20,000 +1 1.3%15,000-19,999 2 1.5%
15,000-19,999 4 1.0%15,000-19,999 2 1.5%
15,000-19,999 4 1.0%9,250-14,494 6 0.9%
10,000-14,999 6 0.7%10,000-14,494 5 1.0%
7,000-9,999 7 0.5%
7,000-9,999 7 0.5%7,000-9,999 7 0.7%
7,000-9,999 7 0.5%7,000-9,999 7 0.7%
7,000-9,999 7 0.5%
7,000-9,999 7 0.5%5,000-6,999 10 0.5%
5,000-6,999 8 0.3%7,000-9,999 7 0.7%
5,000-6,999 8 0.3%5,000-6,999 10 0.5%
5,000-6,999 8 0.3%
5,000-6,999 8 0.3%
Total Employment 1,510,208 1,020,408
Source:Department of Workforce Services
Largest Employers by County
Annual Report of Labor Market Information https://jobs.utah.gov/wi/pubs/em/annual/current/index.html
2018 data not available at time of report
FULL-TIME EQUIVALENT AUTHORITY EMPLOYEES - 10 YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Bus operations 1039 1030 1028 951 945 911 963 950 998 1023
Rail operations 573 580 563 527 542 526 506 425 335 314
Paratransit operations 203 191 191.5 188 183 176 168 168 140 141
Other services 9 9 9 12 10 10 12 11 11 11
Support services 412 365 366 349 323 335 293 284 239 249
Administration 212 243 212 210 207 195 217 224 238 242
Total 2447 2417 2368 2237 2210 2153 2159 2062 1961 1980
Source: Budget document
Public Education
Local Government
Federal Government
Higher Education
Higher Education
Higher Education
Public Education
Public Education
Grocery Stores
Public Education
Health Care
Higher Education
State Government
Warehouse Clubs/Supercenters
Federal Government
Smith's Food and Drug Centers
Alpine School District
Jordan School District
Salt Lake County
U.S. Postal Service
2017
Intermountain Healthcare
University of Utah (inc. Hospital)
State of Utah
Brigham Young University
Intermountain Healthcare
State of Utah
University of Utah
Brigham Young University
Wal-Mart Associates
Hill Air Force Base
Utah State University
Davis County School District
Granite School District
Utah Valley University
https://jobs.utah.gov/wi/data/firm/majoremployers.html
2009
Alpine School District
Jordan School District
Salt Lake County
Wal Mart Stores
Hill Air Force Base
Davis County School District
Granite School District
108|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
TREND STATISTICS - 10 YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Passengers
Bus service 19,624,935 19,749,855 20,033,242 20,560,068 20,165,174 19,695,711 21,222,669 21,560,358 21,716,864 20,657,019
Rail service 22,981,884 23,677,677 23,765,873 24,349,674 24,337,451 22,814,274 19,421,608 16,944,264 14,790,418 14,707,601
Paratransit service 394,816 386,977 389,019 388,169 372,499 383,453 715,034 683,336 509,625 500,242
Vanpool service 1,174,696 1,264,410 1,333,780 1,423,675 1,404,285 1,387,816 1,446,766 1,417,183 1,346,949 1,353,697
Total passengers 44,176,331 45,078,919 45,521,914 46,721,586 46,279,409 44,281,254 42,806,077 40,605,141 38,363,856 37,218,559
Revenue Miles
Bus service 17,911,404 17,454,404 15,462,834 15,367,510 15,660,520 15,706,028 15,091,645 15,869,340 16,412,862 16,777,762
Rail service 12,084,767 12,082,292 12,070,277 11,988,005 11,784,146 11,681,251 7,905,460 6,019,693 5,312,506 5,568,699
Paratransit service 2,798,928 2,727,127 2,505,343 2,293,887 2,513,535 2,932,842 3,252,193 4,094,325 2,799,362 2,928,929
Vanpool service 6,354,828 6,449,439 6,518,150 6,734,487 6,859,802 7,053,191 7,553,978 8,042,756 7,342,322 7,800,016
Total Revenue Miles 39,149,927 38,713,262 36,556,604 36,383,889 36,818,003 37,373,312 33,803,276 34,026,114 31,867,052 33,075,406
Total Miles
Bus service 20,247,617 19,899,364 17,511,624 17,662,486 17,864,847 17,191,018 16,553,983 17,416,367 18,820,702 19,342,359
Rail service 12,285,634 12,202,976 12,189,876 12,368,934 11,814,332 11,773,929 7,987,022 6,073,807 5,365,270 5,626,707
Paratransit service 3,376,772 3,263,607 3,254,559 3,192,367 2,844,468 3,493,247 4,088,027 5,256,369 3,473,129 3,637,806
Vanpool service 6,354,828 6,449,439 6,518,150 6,734,487 6,859,802 7,053,191 7,553,978 8,042,756 7,342,322 7,800,016
Total miles 42,264,851 41,815,386 39,474,209 39,958,274 39,383,449 39,511,385 36,183,010 36,789,299 35,001,423 36,406,888
Passengers per Mile
Bus service 1.10 1.13 1.30 1.34 1.29 1.25 1.41 1.36 1.32 1.23
Rail service 1.90 1.96 1.97 2.03 2.07 1.95 2.46 2.81 2.78 2.64
Paratransit service 0.14 0.14 0.16 0.17 0.15 0.13 0.22 0.17 0.18 0.17
Vanpool service 0.18 0.20 0.20 0.21 0.20 0.20 0.19 0.18 0.18 0.17
Ttl. Passengers per Revenue Mile 1.13 1.16 1.25 1.28 1.26 1.18 1.27 1.19 1.20 1.13
Revenue Hours
Bus service 1,284,186 1,258,448 1,087,055 1,070,139 1,108,894 933,662 834,985 866,268 897,294 904,282
Rail service 527,187 513,389 511,082 506,233 487,435 641,914 536,066 388,826 295,227 374,300
Paratransit service 180,342 162,198 162,734 160,383 164,527 191,016 227,013 300,760 201,994 211,369
Total revenue hours 1,991,715 1,934,035 1,760,871 1,736,755 1,760,856 1,766,592 1,598,064 1,555,854 1,394,515 1,489,951
Passengers per Revenue Hour
Bus service 15.28 15.69 18.43 19.21 18.18 21.10 25.42 24.89 24.20 22.84
Rail service 43.59 46.12 46.50 48.10 49.93 35.54 36.23 43.58 50.10 39.29
Paratransit service 2.19 2.39 2.39 2.42 2.26 2.01 3.15 2.27 2.52 2.37
Total passengers per mile 21.59 22.65 25.09 26.08 25.48 24.28 25.88 25.19 26.54 24.07
Total System
Fare revenue $48,122,586 $52,159,202 $50,624,354 $52,112,909 $51,461,223 $49,977,533 $44,489,583 $39,693,757 $35,160,063 $33,530,449
Operating expense $300,954,051 $257,734,612 $268,970,126 $242,516,933 $235,149,656 $215,858,141 $194,968,330 $183,918,986 $173,903,476 $181,037,798
Cost per revenue mile $7.69 $6.66 $7.36 $6.67 $6.39 $5.78 $5.77 $5.41 $5.46 $5.47
Cost per passenger $6.81 $5.72 $5.91 $5.19 $5.08 $4.87 $4.55 $4.53 $4.53 $4.86
Fare revenue per passenger $1.09 $1.16 $1.11 $1.12 $1.11 $1.13 $1.04 $0.98 $0.92 $0.90
Note: Does not include commuter bus or contract transportation.
Source:NTD
109|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
OPERATING INDICATORS AND CAPITAL ASSETS - 10 YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Number of bus routes*114 119 125 126 121 119 125 119 127 128
Number of rail routes
Light rail 4 4 4 4 4 4 3 3 3 3
Commuter rail 1 1 1 1 1 1 1 1 1 1
Bus Service Miles (weekday)57,378 56,162 53,612 49,625 51,629 55,733 64,186 64,493 67,012 68,537
Rail Service Miles (weekday)
Light Rail 8,853 8,814 8,815 8,828 8,547 8,216 6,978 5,107 3,910 3,684
commuter Rail 4,664 4,623 4,627 4,651 4,638 4,488 2,390 2,327 2,469 2,725
Average Passengers (weekday)151,901 156,288 155,873 161,862 161,339 152,644 152,934 142,186 134,736 141,047
Buses 561 582 567 555 535 493 570 495 496 501
Paratransit vehicles (buses/vans)182 148 129 84 113 110 112 96 101
Rail vehicles
Light rail 146 146 146 146 146 146 122 122 55 55
Commuter rail 81 81 81 81 81 81 57 55 37 37
Vanpool vehicles 453 453 503 495 479 470 494 485 414 403
Park and ride lots1 46 41
Rail Park and Ride 42 42
Non-Rail and and ride 12 12
Bus Stops 6,100 6,100 6,196 6,250 6,250 6,273 6,333 6,600 6,645 6,410
Rail Statils
Light Rail 57 57 57 57 51 51 41 41 28 28
Commuter Rail 16 16 16 16 16 16 16 7 8 8
* Including flex
1 As of 2017 started distinguishing between rail and non rail park and ride lots
110|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Vehicle
Revenue
Mile
Operating
Expense per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 7.88$ 106.47$
Baltimore, MD MTA 15.33 174.13
Buffalo, NY NFT Metro 11.69 128.85
Charlotte, NC CATS 8.04 106.62
Cleveland, OH GCRTA 12.75 146.88
Dallas, TX DART 9.44 119.99
Denver, CO RTD 9.16 116.73
Ft Worth, TX The T 8.13 105.21
Houston, TX Metro 9.62 116.98
Minneapolis, MN Metro Transit 11.79 143.21
Orlando, FL LYNX 6.45 88.41
Phoenix, AZ Valley Metro 8.48 94.20
Portland, OR Tri-Met 12.50 138.86
Sacramento, CA Sacramento RT 13.06 146.68
San Diego MTS 8.36 90.60
San Jose, CA VTA 15.73 182.65
Spokane, WA STA 8.85 122.07
St Louis, MO BSDA 8.42 111.58
Average 10.32$ 124.45$
Maximum 15.73 182.65
Minimum 6.45 88.41
Standard Deviation 2.69 26.69
The following charts contain information from the Federal Transit Administration's National Transit Database (NTD)) for the most recent year available
(2017), and compares the Authority's performance with other like transit agencies.
Service Efficiency
PERFORMANCE MEASURES - BUS SERVICE
$0
$4
$8
$12
$16
$20
Operating Expense per Revenue Mile
Operating Expense Per Revenue Mile Avg
$0
$50
$100
$150
$200
Operating Expense per Revenue Hour
Operating Expense Per Revenue Hour Avg
111|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Passenger
Mile
Operating
Expense per
Unlinked
Passenger
Trip
Salt Lake City, UT UTA 1.50$ 6.75$
Baltimore, MD MTA 1.12 4.34
Buffalo, NY NFT Metro 1.33 4.62
Charlotte, NC CATS 1.13 4.59
Cleveland, OH GCRTA 1.46 6.12
Dallas, TX DART 2.22 8.15
Denver, CO RTD 1.00 5.02
Ft Worth, TX The T 1.94 5.89
Houston, TX Metro 1.16 5.73
Minneapolis, MN Metro Transit 1.22 5.07
Orlando, FL LYNX 0.76 4.20
Phoenix, AZ Valley Metro 1.09 4.09
Portland, OR Tri-Met 0.93 4.53
Sacramento, CA Sacramento RT 2.30 7.96
San Diego MTS 0.85 3.31
San Jose, CA VTA 1.65 8.49
Spokane, WA STA 1.08 4.82
St Louis, MO BSDA 1.14 6.11
Average 1.33$ 5.54$
Maximum 2.30 8.49
Minimum 0.76 3.31
Standard Deviation 0.44 1.49
Cost Effectiveness
PERFORMANCE MEASURES - BUS SERVICE (continued)
$0
$1
$1
$2
$2
Operating Expense per Passenger Mile
Operating Expense per Passenger Mile Avg
$0
$2
$4
$6
$8
$10
Operating Expense per Unlinked Passenger Trip
Operating Expense Per Passenger Mile Avg
112|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Unlinked
Passenger
Trips per
Vehicle
Revenue
Mile
Unlinked
Passenger
Trips per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 1.20 15.80
Baltimore, MD MTA 3.50 40.10
Buffalo, NY NFT Metro 2.50 27.90
Charlotte, NC CATS 1.80 23.20
Cleveland, OH GCRTA 2.10 24.00
Dallas, TX DART 1.20 14.70
Denver, CO RTD 1.80 23.30
Ft Worth, TX The T 1.40 17.90
Houston, TX Metro 1.70 20.40
Minneapolis, MN Metro Transit 2.30 28.20
Orlando, FL LYNX 1.50 21.00
Phoenix, AZ Valley Metro 2.10 23.00
Portland, OR Tri-Met 2.80 30.70
Sacramento, CA Sacramento RT 1.60 18.40
San Diego MTS 2.50 27.40
San Jose, CA VTA 1.90 21.50
Spokane, WA STA 1.80 25.30
St Louis, MO BSDA 1.40 18.30
Average 1.95 23.39
Maximum 3.50 40.10
Minimum 1.20 14.70
Standard Deviation 0.60 6.08
Service Effectiveness
PERFORMANCE MEASURES - BUS SERVICE (continued)
-
1.00
2.00
3.00
4.00
Unlinked Trips per Vehicle Revenue Mile
Unlinked Trips Per Vehicle Revenue Mile Avg
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Unlinked Passenger Trip per Revenue Mile
Unlinked Trips Per Vehicle Revenue Hour Avg
113|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Vehicle
Revenue
Mile
Operating
Expense per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 6.44$ 222.55$
Albuquerque, NM RMRTD 20.80 796.25
Baltimore, MD MTA 21.96 838.89
Chesterton, IN NICTD 11.58 418.98
Dallas, TX DART 17.34 390.06
Minneapolis, MN Metro Transit 27.43 1,053.85
Newark, NJ NJ Transit 15.80 516.24
Oceanside, CA NCTD 13.27 524.37
Pompano Beach, FL TRI-Rail 25.79 746.03
San Carlos, CA CalTrain 17.35 585.80
Seattle, WA Sound Transit 23.70 711.69
Average 18.31$ 618.61$
Maximum 27.43 1,053.85
Minimum 6.44 222.55
Standard Deviation 6.38 237.44
The following charts contain information from the Federal Transit Administration's National Transit Database (NTD)) for the most recent year available
(2017), and compares the Authority's performance with other like transit agencies.
Service Efficiency
PERFORMANCE MEASURES - COMMUTER RAIL
$0
$10
$20
$30
UTA NICTD NCTD NJ
Transit
DART CalTrain RMRTD MTA Sound
Transit
TRI-Rail Metro
Transit
Operating Expense per Revenue Mile
Operating Expense Per Vehicle Revenue Mile Avg
$0
$300
$600
$900
$1,200
UTA DART NJ
Transit
RMRTD MTA TRI-Rail Metro
Transit
Sound
Transit
NICTD NCTD CalTrain
Operating Expense per Revenue Hour
Operating Expense Per Revenue Hour Avg
114|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expenses
Per
Passenger
Mile
Operating
Expenses
Per
Unlinked
Passenger
Trip
Salt Lake City, UT UTA 0.28$ 7.09$
Albuquerque, NM RMRTD 0.75 34.03
Baltimore, MD MTA 0.52 15.47
Chesterton, IN NICTD 0.43 14.02
Dallas, TX DART 0.68 13.47
Minneapolis, MN Metro Transit 0.79 19.23
Newark, NJ NJ Transit 0.47 10.97
Oceanside, CA NCTD 0.47 12.41
Pompano Beach, FL TRI-Rail 0.77 21.34
San Carlos, CA CalTrain 0.31 6.83
Seattle, WA Sound Transit 0.41 10.24
Average 0.53$ 15.01$
Maximum 0.79 34.03
Minimum 0.28 6.83
Standard Deviation 0.18 7.74
Cost Effectiveness
PERFORMANCE MEASURES - COMMUTER RAIL (continued)
$0.00
$0.25
$0.50
$0.75
$1.00
UTA CalTrain Sound
Transit
NICTD NJ
Transit
NCTD MTA DART RMRTD TRI-Rail Metro
Transit
Operating Expense per Passenger Mile
Operating Expense Per Vehicle Revenue Mile Avg
$0
$10
$20
$30
$40
TRI-Rail UTA Metro
Transit
MTA DART NJ
Transit
NICTD Sound
Transit
NCTD RMRTD CalTrain
Operating Expense per Unlinked Passenger Trip
Operating Expense Per Unlinked Passenger Trip Avg
115|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Unlinked
Passenger
Trips per
Vehicle
Revenue
Mile
Unlinked
Passenger
Trips per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 0.90 31.40
Albuquerque, NM RMRTD 0.60 23.40
Baltimore, MD MTA 1.40 54.20
Chesterton, IN NICTD 0.80 29.90
Dallas, TX DART 1.30 29.00
Minneapolis, MN Metro Transit 1.40 54.80
Newark, NJ NJ Transit 1.40 47.10
Oceanside, CA NCTD 1.10 42.30
Pompano Beach, FL TRI-Rail 1.20 35.00
San Carlos, CA CalTrain 2.50 85.80
Seattle, WA Sound Transit 2.30 69.50
Average 1.35 45.67
Maximum 2.50 85.80
Minimum 0.60 23.40
Standard Deviation 0.58 19.20
Service Effectiveness
PERFORMANCE MEASURES - COMMUTER RAIL (continued)
0.00
1.00
2.00
3.00
RMRTD NICTD UTA NCTD TRI-Rail DART MTA Metro
Transit
NJ
Transit
Sound
Transit
CalTrain
Unlinked Passenger Trips per Revenue Mile
Unlinked Passenger Trips Per Vehicle Revenue Mile Avg
0.00
30.00
60.00
90.00
120.00
RMRTD DART NICTD UTA TRI-Rail NCTD NJ
Transit
MTA Metro
Transit
Sound
Transit
CalTrain
Unlinked Passenger Trips per Revenue Hour
Unlinked Passenger Trips Per Vehicle Revenue Hour Avg
116|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Vehicle
Revenue
Mile
Operating
Expense per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 6.55$ 110.06$
Buffalo, NY NFT Metro 5.71 87.94
Cleveland, OH GCRTA 6.56 93.67
Dallas, TX DART 5.94 75.25
Denver, CO RTD 4.66 72.92
Fort Worth, TX The T 4.88 76.48
Orlando, FL LYNX 2.20 38.79
Phoenix, AZ Valley Metro 5.32 68.53
Portland, OR Tri-Met 5.78 74.35
Spokane, WA STA 5.39 81.55
Average 5.30$ 77.95$
Maximum 6.56 110.06
Minimum 2.20 38.79
Standard Deviation 1.25 18.44
The following charts contain information from the Federal Transit Administration's National Transit Database (NTD)) for the most recent year available
(2017), and compares the Authority's performance with other like transit agencies.
Service Efficiency
PERFORMANCE MEASURES - DEMAND RESPONSE
$0
$2
$4
$6
$8
LYNX RTD Valley
Metro
The T STA Tri-Met NFT
Metro
UTA GCRTA DART
Operating Expense per Revenue Mile
Operating Expense per Vehicle Revenue Mile Avg
$0
$50
$100
$150
LYNX Valley
Metro
RTD Tri-Met DART The T STA NFT
Metro
GCRTA UTA
Operating Expense per Revenue Hour
Operating Expense Per Revenue Hour Avg
117|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Vehicle
Revenue
Mile
Operating
Expense per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 4.22$ 46.13$
Buffalo, NY NFT Metro 5.37 47.02
Cleveland, OH GCRTA 7.30 60.14
Dallas, TX DART 3.18 38.23
Denver, CO RTD 4.99 43.47
Fort Worth, TX The T 4.88 76.48
Orlando, FL LYNX 4.01 40.37
Phoenix, AZ Valley Metro 5.93 57.12
Portland, OR Tri-Met 4.39 40.29
Spokane, WA STA 3.19 28.68
Average 4.75$ 47.79$
Maximum 7.30 76.48
Minimum 3.18 28.68
Standard Deviation 1.26 13.55
The following charts contain information from the Federal Transit Administration's National Transit Database (NTD)) for the most recent year available
(2017), and compares the Authority's performance with other like transit agencies.
Cost Effectiveness
PERFORMANCE MEASURES - DEMAND RESPONSE (continued)
$0
$2
$4
$6
$8
LYNX RTD Valley
Metro
The T STA Tri-Met NFT
Metro
UTA GCRTA DART
Operating Expense per Revenue Mile
Operating Expense per Vehicle Revenue Mile Avg
$0
$50
$100
STA DART Tri-Met LYNX RTD UTA NFT
Metro
Valley
Metro
GCRTA The T
Operating Expense per Revenue Hour
Operating Expense Per Revenue Hour Avg
118|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Unlinked
Passenger
Trips per
Vehicle
Revenue
Mile
Unlinked
Passenger
Trips per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 0.10 2.40
Buffalo, NY NFT Metro 0.10 1.90
Cleveland, OH GCRTA 0.10 1.60
Dallas, TX DART 0.20 2.00
Denver, CO RTD 0.10 1.70
Fort Worth, TX The T 0.10 1.90
Orlando, FL LYNX 0.10 1.10
Phoenix, AZ Valley Metro 0.10 1.20
Portland, OR Tri-Met 0.20 1.80
Spokane, WA STA 0.20 2.80
Average 0.13 1.84
Maximum 0.20 2.80
Minimum 0.10 1.10
Standard Deviation 0.05 0.51
Service Effectiveness
PERFORMANCE MEASURES - DEMAND RESPONSE (continued)
0
0.1
0.2
0.3
UTA NFT
Metro
GCRTA RTD The T LYNX Valley
Metro
DART Tri-Met STA
Unlinked Passenger Trip per Revenue Mile
Unlinked Passenger Trips per Vehicle Revenue Mile Avg
0.00
1.00
2.00
3.00
LYNX Valley
Metro
GCRTA RTD Tri-Met NFT
Metro
The T DART UTA STA
Unlinked Passenger Trip per Revenue Hour
Unlinked Passenger Trip Per Revenue Hour Avg
119|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Vehicle
Revenue
Mile
Operating
Expense per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 9.61$ 180.35$
Baltimore, MD MTA 14.50 271.50
Charlotte, NC CATS 14.01 214.45
Denver, CO RTD 9.14 145.09
Houston, TX Metro 19.57 227.04
Minneapolis, MN Metro Transit 13.42 166.23
Portland, OR Tri-Met 15.63 222.51
Sacramento, CA RTD 15.34 272.55
San Diego, CA MTS 9.45 168.24
San Jose, CA VTA 31.65 487.58
Average 15.23$ 235.55$
Maximum 31.65 487.58
Minimum 9.14 145.09
Standard Deviation 6.63 98.56
The following charts contain information from the Federal Transit Administration's National Transit Database (NTD)) for the most recent year available
(2017), and compares the Authority's performance with other like transit agencies.
Service Efficiency
PERFORMANCE MEASURES - LIGHT RAIL
$0
$10
$20
$30
$40
RTD MTS UTA Metro
Transit
CATS MTA RTD Tri-Met Metro VTA
Operating Expense per Revenue Mile
Operating Expense Per Revenue Mile Avg
$0
$100
$200
$300
$400
$500
$600
RTD Metro
Transit
MTS UTA CATS Tri-Met Metro MTA RTD VTA
Operating Expense per Revenue Hour
Operating Expense Per Revenue Hour Avg
120|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Operating
Expense per
Passenger
Mile
Operating
Expense per
Unlinked
Passenger
Trip
Salt Lake City, UT UTA 0.70$ 3.44$
Baltimore, MD MTA 0.88 5.80
Charlotte, NC CATS 0.63 3.00
Denver, CO RTD 0.66 4.67
Houston, TX Metro 1.27 3.56
Minneapolis, MN Metro Transit 0.70 2.98
Portland, OR Tri-Met 0.64 3.49
Sacramento, CA RTD 0.99 5.93
San Diego, CA MTS 0.39 2.19
San Jose, CA VTA 2.21 11.61
Average 0.91$ 4.67$
Maximum 2.21 11.61
Minimum 0.39 2.19
Standard Deviation 0.52 2.73
Cost Effectiveness
PERFORMANCE MEASURES - LIGHT RAIL (continued)
$0
$1
$2
$3
MTS CATS Tri-Met RTD UTA Metro
Transit
MTA RTD Metro VTA
Operating Expense per Passenger Mile
Operating Expense Per Passenger Mile Avg
$0
$2
$4
$6
$8
$10
$12
$14
MTS Metro
Transit
CATS UTA Tri-Met Metro RTD MTA RTD VTA
Operating Expense per Unlinked Passenger Trip
Operating Expense per Unlinked Passenger Trip Avg
121|Page
UTAH TRANSIT AUTHORITY
STATISTICAL SECTION
Year Ended December 31, 2018 and 2017
City Agency
Unlinked
Passenger
Trips per
Vehicle
Revenue
Mile
Unlinked
Passenger
Trips per
Vehicle
Revenue
Hour
Salt Lake City, UT UTA 2.80 52.50
Baltimore, MD MTA 2.50 46.80
Charlotte, NC CATS 4.70 71.60
Denver, CO RTD 2.00 31.00
Houston, TX Metro 5.50 63.80
Minneapolis, MN Metro Transit 4.50 55.80
Portland, OR Tri-Met 4.50 63.70
Sacramento, CA RTD 2.60 46.00
San Diego, CA MTS 4.30 76.80
San Jose, CA VTA 2.70 42.00
Average 3.61 55.00
Maximum 5.50 76.80
Minimum 2.00 31.00
Standard Deviation 1.21 14.16
Service Effectiveness
PERFORMANCE MEASURES - LIGHT RAIL (continued)
0.00
2.00
4.00
6.00
RTD MTA RTD VTA UTA MTS Metro
Transit
Tri-Met CATS Metro
Unlinked Passenger Trips per Revenue Mile
Unlinked Passenger Trips Per Revenue Mile Avg
0.00
20.00
40.00
60.00
80.00
100.00
RTD VTA RTD MTA UTA Metro
Transit
Tri-Met Metro CATS MTS
Unlinked Passenger Trips per Revenue Hour
Unlinked Passenger Trips per Revenue Hour Avg
122|Page
U TA H T R A N S I T
AU T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Compliance
123|Page
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
To the 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 the Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the business-type
activities, the discretely presented component unit, and the remaining fund information of Utah Transit
Authority (the “Authority”), as of and for the years ended December 31, 2018 and 2017, 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 4, 2019.
Internal Control Over Financial Reporting
In planning and performing our audits of the financial statements, we considered the Authority’s internal
control over financial reporting (internal control) to determine the 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
may exist that have not been identified.
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
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an o pinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Telephone (801) 590 -2600 1455 West 2200 South, Suite 201
Fax (801) 265 -9405 Salt Lake City, Utah 84119 124|Page
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.
Keddington & Christensen, LLC
Keddington & Christensen, LLC
Salt Lake City
June 4, 2019
125|Page
INDEPENDENT AUDITOR’S REPORT ON
COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Trustees,
Utah Transit Authority
Salt Lake City, Utah
Report on Compliance for Each Major Federal Program
We have audited Utah Transit Authority’s (the “Authority”) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect on
each of the Authority’s major federal programs for the year ended December 31, 2018. The Authority’s
major federal programs are identified in the summary of auditor’s results section of the accompanying
schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Authority’s major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted our
audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; 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). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our qualified and unmodified opinions on
compliance for major federal programs. However, our audit does not provide a legal determination of the
Authority’s compliance.
Telephone (801) 590 -2600 1455 West 2200 South, Suite 201
Fax (801) 265 -9405 Salt Lake City, Utah 84119 126|Page
Basis for Qualified Opinion on Federal Transit Cluster and Transit Services Program Cluster
As described in the accompanying schedule of findings and questioned costs, the Authority did not comply
with requirements regarding the Federal Transit Cluster (CFDA 20.500, 20.507, 20.525, and 20.526), and
Transit Services Programs Cluster (CFDA 20.513, 20.516, and 50.521) described in finding number 2018-
001 for Equipment and Real Property Management. Compliance with such requirements is necessary, in
our opinion, for the Authority to comply with the requirements applicable to those programs.
Qualified Opinion on Federal Transit Cluster and Transit Services Program Cluster
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the
Authority complied, in all material respects, with the types of compliance requirements referred to above
that could have a direct and material effect on the Federal Transit Cluster and Transit Services Program
Cluster for the year ended December 31, 2018.
Unmodified Opinion on the Other Major Federal Program
In our opinion, the Authority complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its other major federal programs
identified in the summary of auditor’s results section of the accompanying schedule of findings a nd
questioned costs for the year ended December 31, 2018.
Other Matters
The Authority’s response to the noncompliance finding identified in our audit is described in the
accompanying schedule of findings and questioned costs. The Authority’s response was not subjected to
the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the
response.
Report on Internal Control Over Compliance
Management of Utah Transit Authority is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the Authority’s internal control over compliance with
the types of requirements that could have direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Authority’s internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over comp liance
that might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that were not identified. However, as discussed below, we identified a
certain deficiency in internal control over compliance that we consider to be a material weakness.
127|Page
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 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. We consider the deficiency in internal control
over compliance described in the accompanying schedule of findings and questioned cos ts as item 2018-
001 to be a material weakness.
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.
The Authority’s response to the internal control over compliance finding identified in our audit is described
in the accompanying schedule of findings and questioned costs. The Authority’s response was not subjected
to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on
the response.
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.
Keddington & Christensen, LLC
Keddington & Christensen, LLC
Salt Lake City, Utah
June 4, 2019
128|Page
UTAH TRANSIT AUTHORITY
Schedule of Expenditures of Federal Funds (Continued)
For the year ended December 31, 2018
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS for the year ending December 31, 2018
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
Federal
CFDA
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-2016-007-00 $39,050
Federal Transit - Capital investment Grants 20.500 UT-2017-001-00 20,445,072
Federal Transit - Capital investment Grants 20.500 UT-2017-006-00 176,086
Total Capital Investment Grants 20,660,208
Federal Transit - Formula Grant 20.507 UT-2018-009.00 44,071,452
Federal Transit - Formula Grant 20.507 UT-2018-005 2,325,122
Federal Transit - Formula Grant 20.507 UT-2018-006 348,000
Total Federal Transit-Formula Grant 46,744,574
Federal Transit - State of Good Repairs 20.525 UT-2018-004.00 15,311,264
Bus and Bus Facilities Formula Program 20.526 UT-2017-002.00 213,153
Bus and Bus Facilities Formula Program 20.526 UT-2017-013-00 19,707
Bus and Bus Facilities Formula Program 20.526 UT-2018-010-00 12,664
Total Bus and Bus Facilities Formula Program 245,524
Federal Transit Cluster - Federal Transit Administration
Programs total -$ 82,961,570$
Transit Services Programs Cluster - Federal Transit Administration Programs
Federal Transit - Enahanced Mobility for Seniors and Individuals
with Disabilities 20.513 UT-16-0006 268,476 372,844
Federal Transit - Enahanced Mobility for Seniors and Individuals
with Disabilities 20.513 UT-2016-013 1,343,627 1,412,988
Federal Transit - Enahanced Mobility for Seniors and Individuals
with Disabilities 20.513 UT-2017-015 69,815
Federal Transit - Enahanced Mobility for Seniors and Individuals
with Disabilities 20.513 UT-2017-016 41,974
Federal Transit - Enahanced Mobility for Seniors and Individuals
with Disabilities 20.513 UT-2017-017 53,035 288,227
Total Enhanced Mobility for Seniors and Individuals with
Disabilities 1,665,138 2,185,848
Utah Department of Transportation - Job Access and Reverse
Commute Program 20.516 17-8233 11-8785 388,138
Utah Department of Transportation - Job Access and Reverse
Commute Program 20.516 UT-37-X0003 17-8233 184,511
Total UDOT Job Access and Reverse Commute Program - 572,649
Utah Department of Transportation - New Freedom Program 20.521 17-8233 11-8785 241,847
Utah Department of Transportation - New Freedom Program 20.521 UT-37-X0003 17-8233 184,511
Total UDOT- New Freedom Program 426,358
Transit Services Program Cluster - Federal Transit
Administration Programs total 1,665,138$ 3,184,855$
129|Page
UTAH TRANSIT AUTHORITY
Schedule of Expenditures of Federal Funds (Continued)
For the year ended December 31, 2018
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS for the year ending December 31, 2018 (Continued)
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
Federal
CFDA
Number
Grant
Number
Pass-Through
Entity Identifying
Number
Passed Through to
Subrecipients
Total Federal
Expenditures
National Infrastructure Investment - Federal Transit Administration Programs
Federal Transit Administration - National Infrastructure 20.933 UT-2018-002
Investment (TIGER)4,096,689
National Infrastructure Investment - Federal Transit
Administration Programs total -$ 4,096,689$
Highway Planning & Construction Cluster - Federal Highway Administration Programs
Federal Highway Administration - Highway Planning and
Construction (CMAQ)20.505 17-8508 17-8508 127,595
Federal Highway Administration - Highway Planning and
Construction (CMAQ)20.505 20-CMAQ-19 1,080,363
Highway Planning & Construction Cluster - Federal Highway
Administration Programs total -$ 1,207,958
Federal Railroad Administration Program
Railroad Safety Technology Grants 20.321 UT-2017-011 1,748,624
Federal Transit Administration Programs
Federal Transit - Capital investment Grants 20.514 UT-2017-012-00 29,814
TOTAL U.S. DEPARTMENT OF TRANSPORTATION -$ 93,229,510$
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDGB - Entitlement Grants Cluster 14.225 1812JH 1812JH 68,366
TOTAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT -$ 68,366$
DEPARTMENT OF HOMELAND SECURITY
FEMA Rail and Transit Security Grant Program 97.075 15-RA-00035 22,363
FEMA Rail and Transit Security Grant Program 97.075 16-RA-00045 86,457
FEMA Rail and Transit Security Grant Program 97.075 17-RA-00042 3,017
TOTAL DEPARTMENT OF HOMELAND SECURITY -$ 111,837$
TOTAL FEDERAL AWARDS EXPENDED 1,665,138$ 93,409,713$
130|Page
UTAH TRANSIT AUTHORITY
Schedule of Expenditures of Federal Funds (Continued)
For the year ended December 31, 2018
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS for the year ending December 31, 2018 (Continued)
Reconciliation of federal expenditures to federal revenues
Comparative Statement of Revenues, Expenses and Change in Net Position (2018)
Federal preventative maintenance grants $ 61,820,668
Capital Contributions: Federal grants 31,585,004
Total per Comparative Statement of Revenues, Expenses and Change in Net Position (2018) 93,405,672
Total per Schedule of Expenditures of Federal Awards for the year ending December 31, 2018 93,409,713
Difference $ (4,041)
Previous Over/(Under)stated Revenues reflected in 2018 Statement of Revenues, Expenses and Change in Net Position
Transit Services Program Cluster CFDA# Grant # Amount
Federal Transit – Enhanced Mobility for Seniors and Individuals
with disabilities 20.513 UT-2016-013 $ 4,041
Total Federal Transit – Transit Services Program Cluster Total 4,041
Total Adjustment $ 4,041
131|Page
UTAH TRANSIT AUTHORITY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2018
A. Basis of Accounting
The supplementary schedule of expenditures of federal awards is prepared on the accrual basis of
accounting.
B. Pass-Through Awards
The Authority receives certain expenditures of federal awards from pass through awards of various state
and other governmental agencies. The total amount of such pass-through awards is included in the
supplementary schedule of expenditures of federal awards.
C. Non-Cash Federal Assistance
No non-cash federal assistance was received during the year ended December 31, 2018.
D. Subrecipients
The Authority provided $1,665,138 of federal award funds to subrecipients during the year.
E. Indirect Cost Rate
The Authority did not use the 10 percent de minimis indirect cost rate.
132|Page
UTAH TRANSIT AUTHORITY
Schedule of Findings and Questioned Costs
For the year ended December 31, 2018 and 2017
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 to GAAP: Unmodified
Internal control over financial reporting:
Material weakness identified? X__ yes_ __no
Significant Deficiency ____yes X none reported
Noncompliance material to financial statements noted? ____yes X no
Federal Awards
Internal control over major federal programs:
Material weakness identified? _ X_yes no
Significant Deficiency(s) identified ____yes X none reported
Type of auditor’s report issued on compliance for major federal programs: Qualified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?
_ X_yes no
Identification of major federal programs:
CFDA No(s). Names of Federal Program or Cluster
20.500, 20.507, 20.525, 20.526 Federal Transit Administration Program Cluster
20.513, 20.516, 20.521, Transit Services Program Cluster
20.933 National Infrastructure Investment
Dollar threshold used to distinguish between Type A and Type B Programs $__2,802,291
Auditee qualified as low-risk auditee? ____yes X no
Section II. Financial Statement Findings
None reported.
133|Page
UTAH TRANSIT AUTHORITY
Schedule of Findings and Questioned Costs
For the year ended December 31, 2018 and 2017
Section III. Federal Award Findings and Questions Cost
MATERIAL WEAKNESS
2018 – 001 Noncompliance and Internal Control over Compliance
Program Name/CFDA Title: Federal Transit Cluster, Transit Services Program Cluster
CFDA Numbers: 20.500, 20.507, 20.525, 20.526, 20.513, 20.516, 20.521
Federal Agency: U.S. Department of Transportation
Questioned Costs: $0
Requirement: Equipment and Real Property Management
Criteria: The Authority is required to properly track and safeguard equipment purchased with federal funds. This is
accomplished by maintaining asset records with sufficient descriptions or other identifying information to properly locate
assets purchased with federal funds. Additionally, the Authority is required to perform inventory counts of such
equipment at least every two years.
Condition: During our tests of compliance over Equipment and Real Property Management, it was noted that in our
sample of 40 items, in 3 instances the sampled item could not be located.
Cause: The 2017 inventory of the Authority’s smaller equipment purchased with federal funds was not sufficiently
thorough to ensure disposition of items were properly reflected in the Authority’s records.
Effect: If equipment is not tracked more carefully, there is a risk that equipment may be misappropriated or otherwise
disposed of and not properly reflected in the records.
Context: The Authority maintains asset listings of two main categories: 1) rolling stock (busses, trains, vehicles, etc.)
and 2) equipment. Rolling stock makes up the majority of the value of assets related to this compliance requirement.
Additionally, rolling stock is necessary to the Authority’s day‐to‐day operations and are tracked as individual assets with
serial numbers, asset numbers, and other identifying information. The discrepancies observed related primarily to
equipment which were older and fully depreciated according to the Authority’s records.
Recommendation: We recommend the Authority more carefully plan and perform inventory counts over smaller
equipment.
134|Page
UTAH TRANSIT AUTHORITY
Schedule of Findings and Questioned Costs
For the year ended December 31, 2018 and 2017
MATERIAL WEAKNESS
2017 – 001 Noncompliance and Internal Control over Compliance
Program Name/CFDA Title: Federal Transit Cluster
CFDA Numbers: 20.500, 20.507, 20.525, and 20.526
Federal Agency: U.S. Department of Transportation
Questioned Costs: $0
Requirement: Equipment and Real Property Management
Criteria: The Authority is required to properly track, safeguard, and maintain equipment purchased with federal funds.
This is accomplished by maintaining asset records with sufficient descriptions or other identifying information to properly
locate assets purchased with federal funds. Additionally, the Authority is required to perform inventory counts of such
equipment at least every two years.
Condition: During our tests of compliance over Equipment and Real Property Management, it was noted that in our
sample of 40 items, in 7 instances the sampled item could not be located, and in 2 other instances, the sampled items did
not appear to be properly maintained.
Cause: The descriptions or other identifying information maintained on those 7 items was not sufficient to locate those
assets. Also, the inventory of the Authority’s smaller equipment purchased with federal funds was not sufficiently
thorough to ensure disposition of items were properly reflected in the Authority’s records.
Effect: If equipment is not tracked more carefully, there is a risk that equipment may be misappropriated or otherwise
disposed of and not properly reflected in the records.
Context: The Authority maintains asset listings of two main categories: 1) rolling stock (busses, trains, vehicles, etc.)
and 2) equipment. Rolling stock makes up the majority of the value of assets related to this compliance requirement.
Additionally, rolling stock is necessary to the Authority’s day‐to‐day operations and are tracked as individual assets with
serial numbers, asset numbers, and other identifying information. Due to the large number of equipment items and their
relatively small dollar amount, equipment is sometimes grouped together and historically has not been adequately
described or identified in the Authority’s records. The discrepancies observed related primarily to equipment which
were older and fully depreciated according to the Authority’s records.
Recommendation: We recommend the Authority ensure sufficient identifying information is maintained on the smaller
equipment purchased with federal funds. We also recommend the Authority more carefully plan and perform inventory
counts over smaller equipment.
135|Page
UTAH TRANSIT AUTHORITY
Schedule of Findings and Questioned Costs
For the year ended December 31, 2018 and 2017
Views of Responsible Officials and Planned Corrective Action:
2018-001 Views: Management agrees with the Finding 2018-001. The correction of the capital asset records held by the
Authority and the internal controls surrounding the entire inventory started in 2017 but was not planned to be completed
by the 2018 audit. After the 2018 inventory is complete by December 31, 2019, UTA will be able to find and identify all
asset (including grant funded asset). The item not found should have been removed as part of the 2017 capital asset write-
off.
2017-001 Views: Management agrees with the Finding 2017-001. The correction of the capital asset records held by the
Authority and the internal controls surrounding the entire inventory started in 2017 but was not planned to be completed
by the 2017 audit. Six (6) of the items identified in the forty (40) items sampled were assets misclassified as equipment
but will be reclassified and identifying in 2018 as part of redefining non-movable asset classifications and descriptions.
After this project is complete by September 30, 2018, UTA will be able to find and identify all asset (including grant
funded asset). The remaining item not found should have been removed as part of the 2017 capital asset write-off. The
proper maintenance of grant funded assets will be addressed in 2018 through policy and proper assignment of oversight
of all assets held by the Authority.
136|Page
U TA H T R A N S I T
AU T H O R I T Y
SM
For Fiscal Years Ended
December 31, 2018 and 2017
Other
Supplementary
Information
137|Page
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
AS REQUIRED BY THE STATE COMPLIANCE AUDIT GUIDE
To the Board of Trustees,
Utah Transit Authority
Salt Lake City, Utah
Report on Compliance
We have audited Utah Transit Authority’s (the “Authority”) compliance with the applicable state
compliance requirements described in the State Compliance Audit Guide, issued by the Office of the State
Auditor, that could have a direct and material effect on the Authority for the year ended December 31, 2018.
State compliance requirements were tested for the year ended December 31, 2018 in the following areas:
Budgetary Compliance
Fund Balance
Restricted Taxes and Related Restricted Revenue
Open and Public Meetings Act
Treasurer’s Bond
Special and Local Service District Board Members
Management’s Responsibility
Management is responsible for compliance with the state requirements referred to above.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Authority’s compliance based on our audit of the state
compliance requirements referred to above. We conducted our audit of compliance in accordance with
auditing standards generally accepted in the United States of America; the standards applicable to financial
audits contained in Government Auditing Standards issued by the Comptroller General of the United States;
and the State Compliance Audit Guide. Those standards and the State Compliance Audit Guide require that
we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the state
compliance requirements referred to above that could have a direct and material effect on a state compliance
requirement occurred. An audit includes examining, on a test basis, evidence about the Authority’s
compliance with those requirements and performing such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance with each state
compliance requirement referred to above. However, our audit does not provide a legal determination of
the Authority’s compliance with those requirements.
Telephone (801) 590-2600 1455 West 2200 South, Suite 201
Fax (801) 265-9405 Salt Lake City, Utah 84119 138|Page
Opinion on Compliance
In our opinion, Utah Transit Authority complied, in all material respects, with the state compliance
requirements referred to above for the year ended December 31, 2018.
Report on Internal Control Over Compliance
Management of the Authority is responsible for establishing and maintaining effective internal control over
compliance with the state compliance requirements referred to above. In planning and performing our audit
of compliance, we considered the Authority’s internal control over compliance with the state compliance
requirements referred to above to determine the audit procedures that are appropriate in the circumstances
for the purpose of expressing an opinion on compliance with those state compliance requirements 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 internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the Authority’s 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 to detect and correct noncompliance with a state compliance requirement on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a state compliance requirement 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 state compliance requirement that is less severe
than a material weakness in internal control over compliance, yet important enough to merit at tention by
those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control and 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.
Keddington & Christensen, LLC
Keddington & Christensen, LLC
Salt Lake City, Utah
June 4, 2019
139|Page