Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 18, 2018
Subject
SUBJECT: FISCAL YEAR 2018 - THIRD QUARTER YEAR-TO-DATE
(YTD) FINANCIAL AND PERFORMANCE REPORT
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Fiscal Year 2018 (FY18) Third Quarter Year-To-Date Financial and Performance Report.
Issue
ISSUE
This report summarizes Metro’s performance for FY18 through the third quarter ending March 31, 2018, demonstrating Metro’s ability to deliver safe and reliable transportation services within budget. The budgeted numbers are within the Board authorized amounts and bounded by the legally controlled fund levels.
On April 28, 2017, Governor Brown signed Senate Bill (SB) 1, also known as the Road Repair and Accountability Act of 2017, whose revenues are generated from an increase in diesel excise and sales tax, gas tax, vehicle license fees, and transportation improvement fees. This third quarter of FY18 is when Metro begins to receive SB1 revenues which will help maintain Metro’s bus, rail, and technology infrastructure in a state of good repair and provide an improved customer experience.
This report will first cover Metro’s financial performance and provide an update on the agency wide performance management system which links four measurements of performance including KPI attainment, expense budget spent, fulltime employee (FTE) variance and capital project milestone attainment which are correlated to the agency goals. This performance management system acts as a tool for the agency to monitor performance, strengthen fiscal discipline and ensure accountability.
Discussion
DISCUSSION
A. Summary of Revenues and Expenses
Overall, the agency spent $3,991.3 million, funded primarily by $3,156.9 million which came from sales tax and operating revenues and the remaining $855.6 million from resources based on reimbursements from grant and debt financing. Sales tax and operating revenues came in higher than the budget by $50.7 million while reimbursement revenues ended short of budget by $573.2 million. Total expenses of $3,991.3 million came in under the budgeted amount of $4,535.0 million resulting in a $543.7 million variance. The net result leads to $21.2 million of revenues in excess of expenses.
B. Summary of Revenues
Overall, the third quarter total sales tax and operating revenues came in at $3,156.9 million which is $50.7 million higher than budget. Of the $50.7 million variance, $48.0 million is from Operating and Other Revenues which are 14.2% higher than budget primarily attributed to Low Carbon Fuel Standard Sales from earlier in the year and Other Income from sale of land. Reimbursement revenues totaled $855.6 million or 59.9% of the $1,428.8 million budget, representing a variance under budget of $573.2 million.