comprehensive annual financial report - lynx · increases or decreases in the authority’s net...

Comprehensive Annual Financial ReportFor Year Ended September 30, 2012

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY

COMPREHENSIVE ANNUAL FINANCIAL REPORT

of the

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a

LYNX

FOR YEAR ENDED SEPTEMBER 30, 2012

PREPARED BY THE FINANCE DEPARTMENT

Blanche W. Sherman, CPA, Director of Finance Starlin W. Rolle, CPA, Interim Manager of Finance

Patti Bryant, Manager of Accounting

John M. Lewis Jr.

CHIEF EXECUTIVE OFFICER

Edward Johnson

GENERAL MANAGER

Vice-Chairman Brandon Arrington

OSCEOLA COUNTY COMMISSIONER

LYNX BOARD OF DIRECTORS

LYNX EXECUTIVE MANAGEMENT

Secretary Teresa Jacobs

ORANGE COUNTY MAYOR

Noranne Downs

FDOT DISTRICT 5 SECRETARY

Introductory Section


Carlton HenleySEMINOLE COUNTY

COMMISSIONER

Chairman Buddy Dyer

MAYOR OF ORLANDO

i

TABLE OF CONTENTS i

BOARD OF DIRECTORS, EXECUTIVE DIRECTOR, STAFF iii

ORGANIZATIONAL CHART iv

LETTER OF TRANSMITTAL 1

CERTIFICATE OF ACHIEVEMENT 14

REPORT OF INDEPENDENT AUDITOR 15 MANAGEMENT'S DISCUSSION AND ANALYSIS 17

BASIC FINANCIAL STATEMENTS:

BALANCE SHEETS 22

STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS 24

STATEMENTS OF CASH FLOWS 25

NOTES TO FINANCIAL STATEMENTS 26

REQUIRED SUPPLEMENTARY INFORMATION:

UNION PENSION PLAN SCHEDULE OF FUNDING PROGRESS 38

OTHER POSTEMPLOYMENT BENEFITS (OPEB) SCHEDULE OF FUNDING PROGRESS 39

SUPPLEMENTARY SCHEDULE OF REVENUES AND EXPENSES-BUDGET VS. ACTUAL (BUDGETARY BASIS) 40

STATISTICAL INFORMATION 41

MISCELLANEOUS STATISTICS 42

REVENUES, EXPENSES, AND CHANGES IN NET ASSETS-LAST TEN YEARS 43

CONDENSED SUMMARY OF NET ASSETS-LAST TEN YEARS 44

TOTAL DEBT-LAST TEN YEARS 45

REVENUE BY SOURCE-LAST TEN YEARS 46

REVENUES BY SOURCE (PERCENTAGES)-LAST TEN YEARS 47

COMPREHENSIVE ANNUAL FINANCIAL REPORTTABLE OF CONTENTS

INTRODUCTORY SECTION

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNX

FINANCIAL SECTION

STATISTICAL SECTION

FARE STRUCTURE 48

FARE TRENDS-LAST TEN YEARS 49

FAREBOX RECOVERY PERCENTAGE-LAST TEN YEARS 50

BUDGETED STAFFING TRENDS-LAST TEN YEARS 51

TOP TEN EMPLOYERS-SERVICE AREA EMPLOYERSCURRENT YEAR AND NINE YEARS AGO 52

EMPLOYMENT PERCENTAGE BY INDUSTRY-SERVICE REGIONLAST TEN YEARS 53

POPULATION BY SERVICE COUNTY-LAST TEN YEARS 54

MEDIAN HOUSEHOLD INCOME BY SERVICE COUNTY-LAST TEN YEARS 55

UNEMPLOYMENT BY SERVICE COUNTY-LAST TEN YEARS 56

EMPLOYMENT BY SERVICE COUNTY-LAST TEN YEARS 57

GENERAL STATISTICAL TRENDS-LAST TEN YEARS 58

OPERATING EXPENSES BY OBJECT-LAST TEN YEARS 59

OPERATING EXPENSES BY FUNCTION-LAST TEN YEARS 60

OPERATING EXPENSES PER MILE-LAST TEN YEARS 61

RISK MANAGEMENT-INSURANCE POLICIES-FISCAL YEAR 2012 62

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 64

SCHEDULE OF LOCAL FINANCIAL ASSISTANCE 66

SCHEDULE OF STATE FINANCIAL ASSISTANCE 67

NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS AND LOCAL AND STATE FINANCIAL ASSISTANCE 68

REPORT OF INDEPENDENT AUDITOR ON INTERNAL CONTROL OVER FINANCIAL REPORTING ANDON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS 69

REPORT OF INDEPENDENT AUDITOR ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE ADIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL AWARDS PROGRAM AND STATEFINANCIAL ASSISTANCE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL 71

SCHEDULE OF FINDINGS AND QUESTIONED COSTS 73 SCHEDULE OF PRIOR AUDIT FINDINGS AND CORRECTIVE ACTION PLAN 76

INDEPENDENT AUDITOR'S MANAGEMENT LETTER 77

SINGLE AUDIT SECTION


STATISTICAL SECTION

COMPREHENSIVE ANNUAL FINANCIAL REPORTTABLE OF CONTENTS (CON'T.)

ii

iii

CCEENNTTRRAALL FFLLOORRIIDDAA RREEGGIIOONNAALL TTRRAANNSSPPOORRTTAATTIIOONN AAUUTTHHOORRIITTYY dd//bb//aa

LLYYNNXX

BOARD OF DIRECTORS Mayor Buddy Dyer Chairman, City of Orlando

Commissioner Brandon Arrington Vice-Chairman, Osceola County Mayor Teresa Jacobs Board Member, Orange County

Commissioner Carlton Henley Board Member, Seminole County FDOT District 5 Secretary, Noranne Downs Board Member, FDOT

LYNX EXECUTIVE STAFF John M. Lewis, Jr. Chief Executive Officer

Edward Johnson General Manager

DEPARTMENT HEADS Blanche W. Sherman, CPA Director of Finance

J. Marsh McLawhorn Chief Government Relations Officer Lisa Darnall Chief Operating Officer

Belinda Balleras Interim Director of Planning Donna Tefertiller Director of Human Resources

Craig Bayard Director of Information Technology Kathy Clary Director of Communications

Bernard Guida Director of Procurement Baunie McConnell Director of Risk Mgmt and Safety

FINANCE DIVISION Starlin Rolle, CPA Interim Manager of Finance

Patti Bryant Manager of Accounting Pedro Bustamante, CPA Senior Accountant

Nancy Navarro AccountantDenise Callihan AccountantBlanca Matute AccountantVicki Hoffman Fiscal Assistant

Suzan Zaki Senior Accounting Technician Edward Velez Property Officer

Elaine Buhrow Accounting Technician Jo Ann Pfenning Accounting Technician Samorea Nelson Accounting Technician Christine Geller Fare Collection Clerk

CH

IEF EXEC

UTIVE O

FFICER

John M. Lew

is, Jr.

MA

NA

GER

OF

CO

MPLIA

NC

ED

esna Hunte

BO

AR

D O

F DIR

ECTO

RS

EXECU

TIVE A

SSISTAN

TD

eborah Morrow

CH

IEF GO

VERN

MEN

T A

FFAIR

S OFFIC

ERJ M

arsh McLaw

horn

LYNX O

RG

AN

IZATIO

NA

L CH

AR

TSeptem

ber 28, 2012

GEN

ERA

L MA

NA

GER

Edward Johnson

DIR

ECTO

R O

F FIN

AN

CE

Blanche Sherm

an

DIR

ECTO

R O

F H

UM

AN

RESO

UR

CES

Donna Tefertiller

DIR

ECTO

R O

F PLA

NN

ING

Tony Walter

INTER

IM D

IREC

TOR

O

F INFO

RM

ATIO

N

TECH

NO

LOG

YC

raig Bayard

DIR

ECTO

R O

F RISK

M

AN

AG

EMEN

T &

SAFETY

Baunie M

cConnell

DIR

ECTO

R O

F PR

OC

UR

EMEN

TB

en Guida

DIR

ECTO

R O

F M

AR

KETIN

G

CO

MM

UN

ICA

TION

SK

athy Clary

CH

IEF OPER

ATIN

G

OFFIC

ERLisa D

arnall

AD

MIN

ISTRA

TIVE A

SSISTAN

TSherry Zielonka

TRA

NSPO

RTA

TION

MA

INTEN

AN

CE

PAR

ATR

AN

SIT

AC

CO

UN

TING

&

FINA

NC

E

MA

TERIA

L C

ON

TRO

L

TRA

ININ

G &

D

EVELOPM

ENT

PLAN

NIN

G &

D

EVELOPM

ENT

STRA

TEGIC

PLA

NN

ING

SERVIC

E PLA

NN

ING

MA

RK

ETING

C

OM

MU

NIC

ATIO

NS

CU

STOM

ER

SERVIC

E

AD

VERTISIN

G

SALES

GR

AN

TS

DIR

ECTO

R O

F EN

GIN

EERIN

G

Daniel H

ealy

SECU

RITY &

FA

CILITIES

vhoffman

Typewritten Text

iv

Certificate of

Presented to

Central Florida Regional

For its Comprehensive Annual

September 30, 2011

President

Executive Director

Financial Report

for the Fiscal Year Ended

Reportingin Financial

for ExcellenceAchievement

Text38:Tranportation Authority

A Certificate of Achievement for Excellence in FinancialReporting is presented by the Government Finance Officers

Association of the United States and Canada togovernment units and public employee retirement

systems whose comprehensive annual financialreports (CAFRs) achieve the higheststandards in government accounting

and financial reporting.

vhoffman

Typewritten Text

14

Financial Section


17

MANAGEMENT’S DISCUSSION AND ANALYSIS This section of the comprehensive annual financial report of Central Florida Regional Transportation Authority d/b/a LYNX (the “Authority”) presents management’s analysis of the Authority’s financial performance during the Fiscal Years that ended on September 30, 2012 and 2011, respectively. Please read it in conjunction with the financial statements, which follow this section. Financial Highlights

Fiscal 2012 Customer fares increased by 10%, or $2.5 million, from FY2011. This was due to an increase in ridership of

4%, combined with the fare policy implemented April 2011 requiring passengers to present an Authority issued identification card in order to qualify for reduced fares. This policy has resulted in an increase in sales of full adult fare media and a decrease in sales of reduced fare media.

Advertising revenue increased significantly from FY2011, providing $1.2 million in revenue in FY2012. This

is due in part to a new advertising contract effective January 2012. Fuel costs increased by 6% from FY2011, primarily due to an increase in fuel consumption. The Authority

continued fuel hedging activities that began in FY2011 in an effort to stabilize fuel cost.

Fiscal 2011 Customer fares increased by $3.7 million primarily due to an increase in ridership of 9%. As in previous years,

rising gas price translates into higher ridership.

The Authority’s local funding partners decreased their funding by 7%, $3.6 million dollars from FY2010 levels, due to various budget constraints. The Authority continued to implement operating efficiencies and utilized $5.9 in Federal stimulus funds to minimize the impact of funding reductions and increasing expenses.

The price of fuel significantly increased in FY2011, resulting in a $4.5 million dollar increase in fuel expenses

compared to FY2010. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Authority’s basic financial statements. The financial statements consist of two parts: Fund Financial Statements and Notes to the Financial Statements. The report also contains supplementary information in addition to the financial statements themselves. Required Financial Statements The financial statements of the Authority report information about the Authority using full accrual accounting methods similar to those used by private sector companies. These statements offer short-term and long-term financial information about its activities. The Balance Sheet includes all of the Authority’s assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to Authority creditors (liabilities). The assets and liabilities are presented in a classified format, which distinguishes between current and long-term assets and liabilities. It also provides the basis for computing the rate of return, evaluation of the capital structure of the Authority and assessing the liquidity and financial flexibility of the Authority. All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses, and Changes in Net Assets. This statement measures the success of the Authority’s operations over the past year and can be used to determine whether the Authority has successfully recovered all its costs through its customer fares, contract services, and operating subsidies, as well as its profitability and credit worthiness. The final required financial statement is the Statement of Cash Flows. The primary purpose of this statement is to provide information about the Authority’s cash receipts and cash payments during the reporting period. The statement

18

reports cash receipts, cash payments, and net changes in cash resulting from operating, investing, and financing activities and provides answers to such questions as where did cash come from, what was cash used for, and what was the change in the cash balance during the reporting period. Financial Analysis of the Authority Our analysis of the Authority begins below with the Financial Statements. One of the most important questions asked about the Authority’s finances is “Is the Authority, as a whole, better off or worse off as a result of the year’s activities?” The Balance Sheet and the Statement of Revenues, Expenses, and Changes in Net Assets report information about the Authority’s activities in a way that will help answer this question. These two statements report the net assets of the Authority and changes in them. You can think of the Authority’s net assets---the difference between assets and liabilities---as one way to measure financial health or financial position. Over time, increases or decreases in the Authority’s net assets are one indicator of whether its financial health is improving or deteriorating. However, you will need to consider other non-financial factors such as changes in economic conditions, population growth, regulation, and new or changed government legislation. Net Assets To begin our analysis, a summary of the Authority’s Balance Sheets is presented in Table A-1. Table A-1 Condensed Statement of Net Assets (Balance Sheets) (In millions of dollars)

September 30, FY2012 FY2011 FY2010 Assets: Current and other assets $ 59.3 $ 54.9 $ 50.6 Capital assets 131.7 139.4 135.3

Total assets $191.0 $194.3 $185.9

Liabilities: Current liabilities $ 21.8 $ 19.0 $ 18.0 Long-term liabilities 12.7 15.4 16.7

Total liabilities $ 34.5 $ 34.4 $ 34.7

Net Assets: Invested in capital assets,

net of related debt $124.9 $131.1 $125.1 Restricted .5 .5 .5 Unrestricted 31.1 28.3 25.6

Total net assets $156.5 $159.9 $151.2

The Balance Sheets show the change in assets, liabilities, and the resulting net assets. Net assets may serve, over time, as a useful indicator of a government’s overall financial position. As can be seen from the Table A-1, Net Assets decreased $3.4 million to $156.5 million in FY2012 from $159.9 million in FY2011. Compared to FY2011, Net Assets Invested in Capital Assets, Net of Related Debt, decreased $6.2 million, Unrestricted Net Assets increased $2.8 million, and Restricted Net Assets did not change.

19

Table A-2 Condensed Statement of Revenues, Expenses, and Changes in Net Assets (In millions of dollars)

September 30, FY2012 FY2011 FY2010Operating Revenues:

Customer fares $ 28.6 $ 26.1 $ 22.4 Contract services 16.5 19.4 19.5 Advertising revenue 1.2 .8 .9 Other income .4 .4 .4 Total operating revenue 46.7 46.7 43.2

Nonoperating Revenues (Expenses), net:

Federal 19.7 19.0 15.9 State 10.5 11.2 11.5 Local 38.0 37.2 40.2 Interest and other income (expense) (.1) (.8) (.2) Total nonoperating revenue 68.1 66.6 67.4 Total Revenues 114.8 113.3 110.6

Depreciation Expense

19.2

18.2

17.0

Operating Expenses:

Salaries and wages 38.2 37.8 38.5 Fringe benefits 20.8 20.1 20.9 Purchased transportation services 20.7 21.2 20.1 Fuel 16.5 15.5 11.0 Materials and supplies 6.3 5.6 5.5 Professional services 5.4 5.7 6.4 Lease and miscellaneous .7 .7 .7 Casualty and liability insurance 1.6 2.1 1.8 Utilities, taxes, and licenses 1.8 1.9 1.8 Total operating expenses 112.0 110.6 106.7 Total Expenses 131.7 223.9 123.7

Loss before Capital Contributions (16.4) (15.5) (13.1) Capital Contributions 13.0 24.2 18.6 Change in Net Assets (3.4) 8.7 5.5 Beginning Net Assets 159.9 151.2 145.7 Ending Net Assets $156.5 $159.9 $151.2

The Statements of Revenues, Expenses, and Changes in Net Assets provide answers as to the nature and source of changes in Net Assets. As shown in Table A-2, the $3.4 million decrease in net assets in FY2012 is due to the decrease in Capital Contributions of $13 million over the Loss before Capital Contributions of $16.4 million. The increase in Customer Fares resulted from the increase in ridership of 4% compared to last year, combined with an increase in the sale of full fare tickets and passes as compared to reduced fare tickets and passes. The decrease in contract services was primarily due to a $1.6 million reduction in services for Disney and reductions in contract services for certain local governments. The increase in Nonoperating Revenue is primarily due to an increase in funding from the Authority’s local funding partners. The increase in Operating Expenses is mainly due to the increase in fuel costs, salaries, wages, and fringe benefits.

20

Capital Assets At the end of FY2012, the Authority had a broad range of Capital Assets, consisting of Land, Buildings and Shelters, Revenue Vehicles, Equipment, and Leasehold Improvements. Table A-3 Capital Assets (In millions of dollars)

September 30, FY 2012 FY 2011 FY 2010 Land $ 8.6 $ 8.6 $ 8.6 Buildings and Shelters 92.4 89.3 83.8 Revenue Vehicles 108.4 108.8 102.1 Equipment 24.0 21.9 21.3 Subtotal 233.4 228.6 215.8 Less Accumulated Depreciation (111.1) (100.5) (87.1)

Subtotal 122.3 128.1 128.7

Construction in Progress:

Bus Shelters .2 1.4 2.9 Facility Capital Improvements .2 3.7 1.0 Other Miscellaneous Projects 9.0 6.2 2.7

Subtotal 9.4 11.3 6.6

Net Capital Assets $131.7 $139.4 $135.3

Long-Term Obligations On August 16, 2001, the Authority entered into a State Infrastructure Bank (SIB) Loan Agreement (SIB #1), allowing draws of up to $7,958,991 for the construction of the LYNX Central Station. The loan matured in FY2011 and there was no outstanding balance at September 30, 2012. On June 9, 2004, the Authority entered into a second SIB Loan (SIB #2), allowing draws of up to $7,600,000 for the construction of the LYNX Operations Center Facility. This loan matures in FY2017; the outstanding loan balance as of September 30, 2012 was $3,909,775. On August 14, 2006, the Authority entered into a third SIB Loan (SIB #3), allowing draws of up to $7,140,000 for the acquisition of rolling stock, including paratransit vehicles. The outstanding loan balance as of September 30, 2012 was $4,255,022. In July 2012, a loan modification was executed deferring the final annual repayment until FY2014. On August 16, 2007, the Authority leased 21 buses requiring 28 quarterly lease payments over seven years, with principal totaling $7,632,976; the unpaid principal balance as of September 30, 2012, was $2,398,522. Diesel Fuel Hedging GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, was implemented in FY2011. This accounting standard requires that hedging derivative instruments be reported at fair value on the Balance Sheet. Beginning in July 2011, the Authority entered into several fuel hedging contracts with a counterparty to cover a significant portion of planned diesel fuel purchases in fiscal years ending September 30, 2011 and September 30, 2012. The objective is to smooth out the fluctuation in fuel prices and to limit the extent to which the price paid for fuel could increase during the fiscal year. As of September 30, 2012 the maturity dates of the open contracts range from October 2012 to September 2013. Because the fuel hedging contracts are considered effective hedges, the fair value of the asset and the liability related to the open contracts at September 30, 2012 fully offset each other.

21

Economic Factors and Next Year’s Budget and Rates The Authority’s Board of Directors and Management considered many factors when setting the FY2012 budget and contract services hourly rates. These factors include the expected demand of the Authority’s Funding Partners, which in turn consider such factors as anticipated population growth of the three counties and the economy of the region as a whole.

FINANCIAL STATEMENTS

22

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXBALANCE SHEETS

SEPTEMBER 30, 2012 AND 2011

ASSETS 2012 2011

CURRENT ASSETS:

Cash and cash equivalents $ 29,110,185 $ 25,402,118 Receivables: Local, trade and operating assistance 2,577,039 2,993,828 Federal grants 12,107,199 13,146,568 State grants 5,469,207 5,333,415 Inventory 1,517,133 1,388,450 State fuel tax refund 244,172 136,083 Prepaid expenses and other assets 62,462 147,973 Deferred outflow of resources 744,896 612,600

Total current assets 51,832,293 49,161,035

NONCURRENT ASSETS:

Investment Pool B 438,430 424,882 Restricted cash and cash equivalents 7,066,850 5,289,360

Total investment and restricted cash and cash equivalents 7,505,280 5,714,242

Property and equipment: Land 8,571,465 8,571,465 Buildings and shelters 92,382,724 89,286,041 Revenue vehicles 108,357,743 108,844,847 Equipment 24,042,784 21,900,200 Total property and equipment 233,354,716 228,602,553 Less accumulated depreciation (111,124,948) (100,461,032) Construction in progress 9,420,251 11,285,722

Net property and equipment 131,650,019 139,427,243

Net pension asset 60,253 -

Total noncurrent assets 139,215,552 145,141,485

TOTAL ASSETS $ 191,047,845 $ 194,302,520

See notes to financial statements.

23

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXBALANCE SHEETS

SEPTEMBER 30, 2012 AND 2011

LIABILITIES AND NET ASSETS 2012 2011

CURRENT LIABILITIES: Accounts payable $ 9,489,829 $ 9,451,628 Accrued salaries and related taxes 956,422 761,144 Accrued compensated absences, current 3,830,765 3,756,007 Accrued self-insurance liability, current 2,128,388 1,835,748 Leases payable, current 1,175,754 1,130,548 Loans payable, current 751,296 736,565 Deferred operating revenue 419,126 134,619 Deferred capital 2,335,039 557,548 Derivative financial instruments 744,896 612,600

Total current liabilities 21,831,515 18,976,407

NONCURRENT LIABILITIES:

Leases payable, long-term 1,222,768 2,398,522 Loans payable, long-term 7,413,500 8,164,797 Net pension and OPEB obligation 962,525 743,346 Accrued compensated absences, long-term 522,445 501,360 Accrued self-insurance liability, long-term 2,604,634 3,571,896

Total noncurrent liabilities 12,725,872 15,379,921

Total liabilities 34,557,387 34,356,328

NET ASSETS:

Invested in capital assets, net of related debt 124,856,579 131,097,480 Restricted-capital projects 536,749 536,749 Unrestricted 31,097,130 28,311,963

Total net assets 156,490,458 159,946,192

TOTAL LIABILITIES AND NET ASSETS $ 191,047,845 $ 194,302,520


24 CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXSTATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS

YEARS ENDED SEPTEMBER 30, 2012 AND 2011

2012 2011

OPERATING REVENUES Customer fares $ 28,620,319 $ 26,098,044 Contract services:

Local financial assistance 8,039,874 10,723,985 Other contractual services 8,424,765 8,691,213

Advertising 1,182,825 844,259 Other income 399,578 401,733

Total operating revenues 46,667,361 46,759,234

OPERATING EXPENSES: Salaries and wages 38,177,711 37,751,015 Fringe benefits 20,762,927 20,133,803 Purchased transportation services 20,746,293 21,169,751 Fuel 16,504,875 15,559,565 Materials and supplies 6,252,668 5,568,348 Professional services 5,415,544 5,706,247 Lease and miscellaneous 706,149 691,381 Casualty and liability insurance 1,583,890 2,120,192 Utilities 1,335,350 1,415,747 Taxes and licenses 494,634 497,981

Total operating expenses before depreciation 111,980,041 110,614,030

OPERATING EXPENSES IN EXCESS OF OPERATINGREVENUES BEFORE DEPRECIATION AND AMORTIZATION (65,312,680) (63,854,796)

DEPRECIATION AND AMORTIZATION (19,150,980) (18,209,971)

OPERATING LOSS (84,463,660) (82,064,767)

NONOPERATING REVENUES AND EXPENSES: Operating assistance grants: Federal 750,000 750,000 State of Florida 9,021,604 8,478,573 Local 38,019,046 37,123,865 Planning and other assistance grants: Federal 18,928,415 18,281,474 State of Florida 1,481,302 2,768,555 Local - 984 Interest expense (238,511) (296,494) Interest income 51,877 85,106 Other income (expenses) 84,114 (588,867)

Total nonoperating revenues and expenses, net 68,097,847 66,603,196 LOSS BEFORE CAPITAL CONTRIBUTIONS (16,365,813) (15,461,571)

Capital contributions 12,910,079 24,222,341

Change in net assets (3,455,734) 8,760,770

NET ASSETS AT BEGINNING OF YEAR 159,946,192 151,185,422

NET ASSETS AT END OF YEAR $ 156,490,458 $ 159,946,192


25 CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXSTATEMENTS OF CASH FLOWS

YEARS ENDED SEPTEMBER 30, 2012 AND 2011

2012 2011

CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 28,620,319 $ 26,098,044 Cash received for contract services 16,753,192 19,466,141 Cash paid to employees (44,374,851) (43,795,354) Cash paid to suppliers (67,956,373) (64,303,819) Cash received from advertising and miscellaneous 1,718,389 1,165,535

Net cash used in operating activities (65,239,324) (61,369,453)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Proceeds from assistance grants 72,503,577 67,086,206

Net cash provided by noncapital financing activities 72,503,577 67,086,206

CASH FLOWS FROM CAPITAL AND RELATEDFINANCING ACTIVITIES: Construction and acquisition of property and equipment (11,787,489) (23,624,070) Principal paid on loans and capital leases (1,867,114) (2,015,609) Interest paid on capital leases and SIB loans (238,511) (296,494) Capital assistance grants 11,949,610 22,249,907

Net cash provided by (used in) capital and related financing activities (1,943,504) (3,686,266)

CASH FLOWS FROM INVESTING ACTIVITIES: Interest income 51,877 85,106 Pool B investment withdrawals 112,931 72,588

Net cash provided by investing activities 164,808 157,694

NET CHANGE IN CASH AND CASH EQUIVALENTS 5,485,557 2,188,181

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 30,691,478 28,503,297

CASH AND CASH EQUIVALENTS, END OF YEAR $ 36,177,035 $ 30,691,478

RECONCILIATION OF OPERATING LOSS TO NET CASH USEDIN OPERATING ACTIVITIES:

Operating Loss $ (84,463,660) $ (82,064,767)

Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation and Amortization 19,150,980 18,209,971

Changes in operating assets and liabilities: Local, Trade, and Operating Assistance Receivable 424,539 (29,514) Inventory (128,683) 147,025 State fuel tax refund receivable (108,089) (31,730) Prepaid expenses and other assets 11,710 4,660 Accounts payable 38,201 2,747,361 Accrued salaries and related taxes 414,457 (998,740) Accrued compensated absences 95,843 (122,329) Accrued self-insurance liability (674,622) 768,610

Net cash used in operating activities $ (65,239,324) $ (61,369,453)

NONCASH INVESTING ACTIVITY: Unrealized gain on investments $ 112,931 $ 70,561


26


NOTES TO FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2012 AND 2011

1. SIGNIFICANT ACCOUNTING POLICIES

Organization - The Central Florida Regional Transportation Authority (the “Authority”) was created in 1989 pursuant to Section 343.63, Florida Statutes. This same legislation was amended in 1993, allowing the Authority to assume the operations of the entity formerly known as Central Florida Commuter Rail Authority and providing an opportunity to merge with the local transportation provider, Orange-Seminole-Osceola Transportation Authority (OSOTA) d/b/a LYNX, thereby, creating a one-stop public transportation entity. The Authority continues to use LYNX as its doing business as name and serves as the focal point in developing all modes of public transportation in the Central Florida region. Through formal action by both the Authority and OSOTA Board of Directors, the merger of the two organizations was ratified March 1994 and became effective October 1, 1994. The Authority provides public transportation services to the general public in the Orlando, Florida metropolitan area--Orange County, Seminole County, and Osceola County.

Reporting Entity - The Authority is a stand-alone governmental unit.

Basis of Accounting – The Authority accounts for its activities through the use of an enterprise fund. Enterprise funds are used to account for activities similar to those found in the private sector, where the determination of a change in financial position is necessary or useful for sound financial administration (business-type activities). Because the Authority has only business-type activities, it is considered to be a special-purpose government for financial reporting under Governmental Accounting Standards Board (GASB) No. 34 Basic Financial Statements-and Management’s Discussion and Analysis-for State and Local Governments (GASB 34). Accordingly, the Authority only presents fund financial statements as defined in GASB 34. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses when incurred. The Authority’s property and equipment acquisitions and operations are subsidized by the Federal Transit Administration, the Florida Department of Transportation, and local governments. Capital grants for the acquisition of property and equipment (reimbursement type grants) are recorded as grant receivables and credited to capital contributions when the related qualified expenditures are incurred. Unrestricted net assets consist of state and local government operating subsidies received in excess of net expenses. The Authority has elected not to apply Financial Accounting Standards Board Statements and Interpretations issued after November 30, 1989, as permitted by GASB No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting.

Cash and Cash Equivalents and Investments - For purposes of the statements of cash flows, the Authority considers all investments with a maturity of three months or less when purchased to be cash equivalents. All cash and cash equivalents are insured by the Federal Deposit Insurance Corporation or are considered insured by the State of Florida collateral pool. The State of Florida collateral pool is a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails.

The Authority’s policy allows for investments in the Local Governmental Surplus Funds Investment Pool (the “Pool”), which is administered by the State Board of Administration of Florida. The Pool includes direct obligations of the United States government or its agencies and instrumentalities, interest bearing time deposits or saving accounts, mortgage-backed securities, collateralized mortgage obligations, bankers acceptance, commercial paper, repurchase agreements, and shares in common-law trust established under Florida Statutes Section 163.01. The Pool allocates investment earnings to participants monthly, based on a prorated dollar days participation of each account in the Pool.

The Authority held investments throughout fiscal years 2012 and 2011 in the Pool, which are considered cash and cash equivalents for financial reporting purposes. During fiscal year 2008 some securities were downgraded and the

27

Pool was subdivided into Pool A and Pool B. During fiscal year 2009, Pool A was renamed “Florida PRIME” by the SBA. The Authority presents all investments at fair value as follows:

September 30, 2012 2011

Pool Investments -Florida PRIME $ 153,389 $ 53,685 Pool Investments -Pool B 438,430 424,882 Bank Deposits 36,023,646 30,637,793 Total Cash and Cash Equivalents and Investments $ 36,615,465 $ 31,116,360

Florida PRIME qualifies under GASB 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, to be treated as a “2a-7 like pool” because it has a policy that it will, and does, operate in a manner consistent with Rule 2a-7 under the Investment Company Act of 1940. The current rating of Florida PRIME by Standard and Poors is AAAm and the weighted average days to maturity at September 30, 2012 were 39 days. Pool B is not rated by any nationally recognized statistical rating agency and has a weighted life at September 30, 2012 of 4.08 years. The securities in Florida PRIME are presented at fair value based on $1 per share and securities in Pool B are presented at estimated fair value (cost less unrealized loss) based on an independently calculated fair value factor of .94896811 at September 30, 2012 and .7568386 at September 30, 2011. It is the policy of the Authority to diversify its investment portfolios so as to protect against issuer defaults, market price changes, technical complications leading to temporary lack of liquidity, or other risks resulting from an over concentration of assets in a specific maturity, a specific issuer, a specific geographical distribution, or a specific class of securities. The Authority’s investment policy’s objectives are preservation of the principal of funds within its portfolio, ensure that funds are available to meet reasonably anticipated cash flow requirements, and maximize return on investments, while meeting the established quality, safety and liquidity restrictions. To limit credit risk, in addition to diversification, the Authority has established a list of authorized investments, the principal ones are: (1) The Local Government Surplus Funds Trust Fund; (2) United States Treasury and Agency securities; (3) Interest-bearing time deposits or savings accounts in Qualified Public Depositories; (4) Obligations of the Federal Farm Credit Banks and the Federal Home Loan Mortgage Corporation; and (5) Deposits, federal funds or bankers acceptance of any domestic bank.

Receivables - Local, Trade, Operating Assistance – Includes receivables from customers, Local Funding Partners and Medicaid Assistance. As of September 30, 2012 and 2011, the Authority had receivables, net of allowances, as follows:

September 30, 2012 2011

Customers $ 1,368,548 $ 1,205,618 Local Funding Partners 207,543 368,613 Medicaid Assistance 1,000,948 1,419,597 Total $ 2,577,039 $ 2,993,828

Inventory - Inventory, consisting of minor repair parts and fuel, is valued at the lower of cost or market. Cost is determined using the first-in, first-out method.

State Fuel Tax Refund - Represents claims refundable from the State of Florida Department of Revenue for fuel tax.

Restricted Assets - When both restricted and unrestricted resources are available for use, the Authority’s policy is to use restricted resources first, and then unrestricted resources, as they are needed. Restricted assets include $7,066,850 and $5,289,360 of cash and cash equivalents for the FlexBus Project, LYMMO East-West Project, planning projects, shelters, bus procurement and other enhancements, and various capital projects as of September 30, 2012 and 2011, respectively.

28

Property and Equipment - Property and equipment in the amount of $300 or more is recorded at historical cost and depreciated over the following estimated useful lives using the straight-line method:

Years Buildings and shelters 3 - 30

Revenue vehicles 5 - 9

Equipment 3 - 12

Leasehold improvements (shorter of useful lives or lease term) 5 - 10

The remaining construction work in progress primarily relates to design, engineering and construction costs of LYMMO BRT expansion projects, LYNX Central Station Improvements, LYNX Operations Center Modifications, Bus Shelters, Computer Aided Dispatch/Automated Vehicle Locator (CAD/AVL), and other projects. Depreciation commences when projects are completed and the underlying fixed assets are available for use.

Accounts Payable - Accounts payable are recorded as expenses at the time services are rendered and the Authority receives items. As of September 30, 2012 and 2011, the Authority had accounts payable as follows:

September 30, 2012 2011

Trade $ 5,721,750 $ 5,135,443 Commitments (Consultants/Construction) 669,829 657,401 Retainage 27,134 174,767 Other 3,071,116 3,484,017 Total $ 9,489,829 $ 9,451,628

Accrued Compensated Absences - The Authority recognizes the accrual of compensated absences in accordance with GASB No. 16, Accounting for Compensated Absences, accruing vacation pay benefits as earned and sick pay benefits as vested by its employees.

September 30, 2012 2011

Accrued compensated absences liability, beginning of year $ 4,257,367 $ 4,379,696 Obligations 3,926,608 3,633,678 Payments (3,830,765) (3,756,007) Accrued compensated absences liability, end of year $ 4,353,210 $ 4,257,367

Amount due within one year $ 3,830,765 $ 3,756,007

Accrued Self-Insurance Liability - The Authority has a self-insurance program for public liability claims and workers compensation. Estimated claims are accrued in the year expenses are incurred to the extent payment is probable and subject to reasonable estimation.

Deferred Operating Revenue - Deferred operating revenue consists of revenue not yet recognized because services have not yet been rendered, although related cash has been received.

Net Assets - Net assets represents net assets invested in capital assets, net of related debt, restricted assets and unrestricted earnings.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Operating Revenues - Transactions reported as operating revenues are those that arise from the activities of

29

primary ongoing operations. Those include: Customer Fares, Contract Services, Advertising and Other Operating Income. Customer fares are recorded as revenue at the time services are performed and revenues pass through the fare box. Contract services are recorded as revenue when services are provided, consisting primarily of bus services to area cities and counties that are funded based on hours of service and paratransit services funded through Medicaid, Transportation Disadvantage, and other means.

Nonoperating Revenues - Transactions reported in the nonoperating revenue category include government subsidies that are not contingent on service hours or other designated criteria, including Federal, State and Local Operating, Planning, and other grant assistance, as well as interest income and gains on the sales of capital assets, if applicable.

Operating Expenses - Transactions reported as operating expenses are those that arise from the activities of primary ongoing operations. Those include: Salaries and Wages, Fringe Benefits, Purchased Transportation Services, Fuel, Materials and Supplies, Professional Services, Leases and Miscellaneous, Casualty and Liability Insurance, Utilities, Taxes and Licenses.

Nonoperating Expenses - Transactions reported in the nonoperating expense category include those that do not arise from the activities of primary ongoing operations. These include interest expense for leases and loans as well as losses on the sales of capital assets, if applicable.

2. CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2012 was as follows:

Property and Equipment:

Beginning Balance

Additions

Reclass/ Disposals

Ending Balance

Depreciable Assets Buildings and Shelters $ 89,286,041 $ 5,440,017 $ (2,343,334) $ 92,382,724 Revenue Vehicles: Buses 103,971,255 3,636,757 (4,518,925) 103,089,087 Other Support Vehicles 4,873,592 544,044 (148,980) 5,268,656 Furniture, Fixtures & Equipment 21,900,200 4,003,325 (1,860,741) 24,042,784

Non-Depreciable Assets Land 8,571,465 - - 8,571,465 Construction in Progress 11,285,722 7,064,682 (8,930,153) 9,420,251 Totals at Historical Cost $ 239,888,275 $ 20,688,825 $ (17,802,133) $ 242,774,967

Less accumulated depreciation for: Buildings and Shelters $ (25,719,347) $ (5,479,416) $ 2,292,170 $ (28,906,593) Revenue Vehicles: Buses (52,300,586) (10,950,014) 4,185,170 (59,065,430) Other Support Vehicles (4,291,889) (365,556) 148,980 (4,508,465) Furniture, Fixtures & Equipment (18,149,210) (2,355,669) 1,860,419 (18,644,460)

Total Accumulated Depreciation (100,461,032) (19,150,655) 8,486,739 (111,124,948)

Capital Assets, net $ 139,427,243 $ 1,538,170 $ (9,315,394) $ 131,650,019

30

Capital asset activity for the year ended September 30, 2011 was as follows: Property and Equipment:

Beginning Balance

Additions

Reclass/ Disposals

Ending Balance

Depreciable Assets Buildings and Shelters $ 83,803,389 $ 7,564,149 $ (2,081,497) $ 89,286,041 Revenue Vehicles: Buses 97,175,366 9,470,886 (2,674,997) 103,971,255 Other Support Vehicles 4,932,833 100,396 (159,637) 4,873,592 Furniture, Fixtures & Equipment 21,308,382 1,126,665 (534,847) 21,900,200

Non-Depreciable Assets Land 8,571,465 - - 8,571,465 Construction in Progress 6,594,977 12,408,129 (7,717,384) 11,285,722 Totals at Historical Cost $ 222,386,412 $ 30,670,225 $ (13,168,362) $ 239,888,275

Less accumulated depreciation for: Buildings and Shelters $ (23,140,816) $ (4,131,649) $ 1,553,118 $ (25,719,347) Revenue Vehicles: Buses (43,694,859) (11,230,309) 2,624,582 (52,300,586) Other Support Vehicles (3,927,773) (506,933) 142,817 (4,291,889) Furniture, Fixtures & Equipment (16,336,650) (2,341,080) 528,520 (18,149,210)

Total Accumulated Depreciation (87,100,098) (18,209,971) 4,849,037 (100,461,032)

Capital Assets, net $ 135,286,314 $ 12,460,254 $ (8,319,325) $ 139,427,243

3. CAPITAL LEASES

The Authority is currently leasing 21 buses that were received in July 2007. As of September 30, 2012, these buses were included in property and equipment at a cost of $7,632,976. Amortization of assets under capital leases is included in depreciation expense. Leases payable activity for the years ended September 30, 2012 and 2011 was as follows:

Leases Payable

September 30, 2012

Leases Payable

Beginning Balance

Additions

Payments

Ending Balance

Amounts Due Within One Year

Lease # 4 $3,529,070 $ - $1,130,548 $2,398,522 $1,175,754 Total $3,529,070 $ - $1,130,548 $2,398,522 $1,175,754

Leases Payable September 30, 2011

Leases Payable

Beginning Balance

Additions

Payments

Ending Balance


Lease #4 $4,616,150 $ - $1,087,080 $3,529,070 $1,130,548 Total $4,616,150 $ - $1,087,080 $3,529,070 $1,130,548

31

Future minimum payments and the present value of the minimum payments applicable to capital leases are as follows for the years ending after September 30, 2012:

Present Value of Amount Total

Year Minimum Lease Payments Representing Interest Minimum Lease Payments

2013 $ 1,175,754 $ 77,272 $ 1,253,026

2014 1,222,768 30,258 1,253,026

Total $ 2,398,522 $ 107,530 $ 2,506,052

The above do not represent borrowings but are considered capital leases under generally accepted accounting principles due to the length of respective lease terms as compared to estimated useful lives of assets leased.

4. LOANS PAYABLE

On August 16, 2001, the Authority entered into a State Infrastructure Bank Loan Agreement (SIB #1), allowing draws of up to $7,958,991 for the construction of the LYNX Central Station. The loan matured in 2011, it was non-interest bearing until October 1, 2006 and thereafter the interest rate was 5%. On June 9, 2004, the Authority entered into another SIB Loan (SIB #2), allowing draws of up to $7,600,000 for the construction of the New Operating Base Facility. This loan matures in 2016, was non-interest bearing until October 1, 2007, and bears an interest rate of 2%, thereafter. On August 14, 2006, the Authority entered into another SIB Loan (SIB #3), allowing draws of up to $7,140,000 for the acquisition of rolling stock, including paratransit vehicles. The allowable amount, $7,140,000, of SIB #3 was executed in FY 2006. This was non-interest bearing until October 1, 2008, and bears an interest rate of 1%, thereafter. An amendment to SIB #3 was processed July 2012 adjusting the payback schedule by one year, with final repayment now due October 1, 2013. Loans payable activity at September 30, 2012 and 2011 was as follows:

Loans Payable September 30, 2012

Beginning Balance Additions Payments

Ending Balance


SIB #2 $ 4,646,340 $ - $ 736,566 $ 3,909,774 $ 751,296 SIB #3 4,255,022 - - 4,255,022 - Total $ 8,901,362 $ - $ 736,566 $ 8,164,796 $ 751,296

Loans Payable September 30, 2011

Beginning Balance Additions Payments

Ending Balance


SIB #1 $ 206,407 $ - $ 206,407 $ - $ - SIB #2 5,368,462 - 722,122 4,646,340 736,565 SIB #3 4,255,022 - - 4,255,022 - Total $ 9,829,891 $ - $ 928,529 $ 8,901,362 $ 736,565

Pursuant to the State Infrastructure Bank Loan Agreement, the Authority committed to use its Federal Transit Administration 5307 grant funds as the source to fund the payment obligations of the loans for SIB#1 and SIB#2, provided such funds are available after funding capital expenditures. The amount of pledged revenues was $20,682,616 and $18,697,912 for fiscal years 2012 and 2011, respectively. The Authority committed to use directly generated local funds and FTA 5307 funds for non-TRIP projects as the source to fund the payment obligations of SIB#3. The amount of pledged revenues for capital expenditures and SIB#3 loan payments was $2,729,284 and $1,951,961 for fiscal years 2012 and 2011, respectively. Fiscal year 2012 principal and interest payments were $736,565 and $92,927, respectively, and fiscal year 2011 principal and interest payments were $928,529 and $117,689, respectively.

32

Repayments to be made in fiscal years 2013 through 2017 are as follows:

Fiscal Year Principal Interest Total 2013 $ 751,296 $ 207,126 $ 958,422 2014 5,021,344 105,720 5,127,064 2015 781,649 47,843 829,492 2016 797,282 32,210 829,492 2017 813,225 16,265 829,490

Totals $ 8,164,796 $ 409,164 $ 8,573,960

5. ACCRUED SELF-INSURANCE LIABILITY

The Authority has been self-insured since 1986 for personal injury coverage related to its transit coaches and since 1991 for workers compensation coverage; all other risks of loss are covered through the purchase of commercial insurance. The Authority has sovereign immunity with respect to personal injury claims, which limits its liability to $100,000 for each claim and $200,000 for each accident. Settled claims have not exceeded commercial coverage in any of the past three fiscal years.

The amounts recorded as accrued self-insurance liability at September 30, 2012 and 2011, the current portion of which represents an estimate of payments required in the next fiscal year, are at present value based on estimates derived through actuarial determinations discounted at a range of 4% for the fiscal years 2012 and 2011. Such estimates are subject to change based on circumstances surrounding each claim. Changes in the balances of accrued self-insurance liability, including incurred but not reported claims (IBNR), were as follows during the years ended:

September 30 2012 2011

Accrued self-insurance liability, beginning of year $ 5,407,644 $ 4,639,034 Insured claims (including IBNR’s) 1,583,890 2,120,192 Claim payments (2,258,512) (1,351,582) Accrued self-insurance liability, end of year $ 4,733,022 $ 5,407,644

The estimated amounts due in one year are $2,128,388 and $1,835,748 at September 30, 2012 and 2011, respectively.

6. PENSION PLANS

State Plan - Plan Description

There are six (6) employees of the Authority who are not represented by the Amalgamated Transit Union (the “Union”) and are participants in the Florida Retirement System (FRS), a cost-sharing multiple-employer public employee retirement system (PERS) administered by the Florida Department of Administration. Employees not filling regular established positions but working as temporary employees are not covered by the FRS. The Authority participated in the regular FRS class of membership, with a contribution rate of 7.91% and 10.77% in effect during the State’s fiscal years ended June 30, 2012 and June 30, 2011 respectively. Contribution rates equal actuarially determined rates. Beginning July 2011, employers were required to contribute at a rate of 4.91% and employees were required to contribute at a rate of 3.00%.

Benefits are established by Chapter 121, Florida Statutes, and Chapter 22B, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. Benefits are computed on the basis of age, average final compensation, and service credit. Members are also eligible for in-line-of duty or regular disability benefits, if permanently disabled and unable to work. Regular class employees who retire at or after age 62 with 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation for each year of credited service. Vested employees with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. A post-employment health insurance subsidy is also provided to eligible retirement employees through the FRS in accordance with Florida Statutes. Section 121.031 (3), Florida Statutes requires that an actuarial valuation of FRS be performed biannually. The

33

conclusions of the valuation and historical trend data are included in the annual report of the FRS. Further information about the progress made by the FRS in accumulating sufficient assets to pay benefits when due, including 10-year historical trend information, is included in the State of Florida Comprehensive Annual Financial Report and various publications available from the Florida Department of Administration.

Funding Policy The Authority’s contributions to the FRS were equal to the required contribution for each fiscal year. Contributions for fiscal years ended September 30, 2010 through 2012 approximated the following:

Fiscal Year Contributions 2012 $ 26,000 2011 $ 31,000 2010 $ 39,000

The Authority has historically contributed amounts equal to the required contributions for the FRS and, therefore, does not have a pension asset or liability as determined in accordance with GASB No. 27.

Union Plan - Plan Description

Substantially all Union employees of the Authority are participants in the Amalgamated Transit Union Local 1596 Pension Plan (the “Union Plan”), a defined benefit, single-employer public employee retirement system, formed April 22, 1986 by agreement between the Authority and the Union. All Authority Union employees are eligible to participate in the Union Plan as of their hire date. Employees who have reached the age of 62 are entitled to a retirement union benefit, payable monthly for life, equal to 2.13% of their average compensation for each unit of benefit credit. Average compensation is the average of the highest sixty consecutive calendar months preceding retirement or termination. Participants are credited with units of benefit credit for hours of service worked in a plan year. Benefits fully vest upon reaching 10 years of vested service. Vested employees who retire on or after age 62 will receive full benefits. Participants who have reached age 58 and have 20 years of service are entitled to an unreduced pension benefit. The monthly payment is reduced by 0.56% for each month for the first three years the early retirement date precedes the unreduced early retirement date for participants with 20 or more years of services. In addition, the monthly payment is reduced by 0.56% for each month up to a maximum of 60 months the early retirement date precedes the normal retirement date for participants with less than 20 years of service. Participants’ benefits are established by the Trustees of the Union Plan.

Available historical information showing the Union Plan’s progress in accumulating sufficient assets to pay benefits when due is presented in the Union Plan’s financial statements. The Union Plan’s financial statements may be obtained by writing the Union Plan Trustees.

Funding Policy The Authority and Union employees are obligated to contribute to the Union Plan in accordance with requirements of the Union Collective Bargaining Agreement; regular contribution rates are actuarially determined. Union Plan members are required to contribute 5.25% of earnings; the Authority is required to contribute 9.75% of Union Plan members’ earnings. The amount by which the required contribution rate exceeds the regular contribution rate in the contract is shared on the same bases as the contribution rate – 65% employer and 35% employee. Employees may elect to enhance their future benefits by up to .25% and .50% by contributing an additional 2.5% and 5.0% of earnings, respectively. Shared contributions are the amount by which the required contribution rate exceeds the regular contribution rates, which is shared as 35% employee and 65% employer in the subsequent year.

34

Annual Pension Cost and Net Pension Obligation The Authority’s latest available union plan annual pension information, which includes costs for fiscal years 2012, 2011 and 2010 and a net pension obligation at September 30, 2012, 2011 and 2010, is as follows:

September 30 2012 2011 2010 Annual required contribution $ 3,543,980 $ 3,416,323 $ 3,893,395 Interest on net pension (asset)/obligation 1,077 19,785 18,501 Adjustment to annual required contribution (1,383) (25,479) (26,919) Annual pension cost 3,543,674 3,410,629 3,884,977 Contributions made (3,618,585) (3,658,704) (3,868,925) (Decrease) increase in net pension obligation (74,614) (248,075) 16,052 Net pension/obligation, beginning of yr. 14,658 262,733 246,681 Net pension (asset) obligation, end of year $ (60,253) $ 14,658 $ 262,733

The annual required contribution for fiscal year 2012 was determined as part of the October 1, 2011 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.5% investment rate of return (net of administrative expenses) and (b) projected salary increases ranging from 4.00% to 13.13% per year, dependent on years of service. Both (a) and (b) included an inflation component of 3.5%. The assumptions did not include post-retirement benefit increases, which are funded by the Authority when granted. Such assumptions are subject to future changes due to certain market conditions. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. The unfunded actuarial accrued liability is being amortized as a level dollar amount of projected payroll on a closed basis. The remaining amortization period at September 30, 2011 was 22 years.

Three-Year Trend Fiscal Year

Ended

Annual Pension Cost

(APC)

Percentage of APC

Contributed

Net Pension

Obligation

9/30/12 $ 3,543,674 102.1% $ (60,253)

9/30/11 $ 3,410,629 107.3% $ 14,658

9/30/10 $ 3,884,977 99.6% $ 262,733

Funded Status and Funding Progress The most recent actuarial report for the Union Plan was prepared as of October 1, 2011. As of this point in time, the actuarial value of the Union Plan's assets was $87,639,137 and the actuarial accrued liability for benefits was $93,786,097, resulting in an unfunded actuarial liability of $6,146,960 and a funded ratio of 93.45%. The annual covered payroll was $34,369,299 and the ratio of the funded excess to covered payroll was 17.89%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment and mortality trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Employee 401(a) Pension Plan - The Authority maintains a single-employer, defined contribution pension plan, Central Florida Regional Transportation Authority Money Purchase Plan (the “Plan”), administered by The Hartford for employees who are not represented by the Union, effective October 1, 1994. The Plan is a tax-qualified plan pursuant to section 401(a) of the Internal Revenue Code. All full-time administrative employees not represented by the Union are eligible for participation in the plan, with the exception of employees hired before October 1, 1994 who opted to stay in the FRS and supervisors represented by Union 1749.

The Plan provisions provide for the Authority to contribute 12% of employee earnings; employees are not required

35

to make contributions. All plan amendments are administered and authorized by the Plan’s trustees. At the Plan’s inception, employees who switched from the FRS were automatically 100% vested and all other employees are 100% vested after five years of employment with the Authority or other public service or transportation agencies. All employees may withdraw vested balances upon the normal retirement age of 65. The Plan permits withdrawals for retirement, termination, and disability but does not allow participants to borrow against their accounts.

The payroll for Authority employees covered by the plan for the years ended September 30, 2012 and 2011 was $9,998,373 and $9,142,063 respectively. The Authority’s contribution to the plan for the years ended September 30, 2012 and 2011 amounted to $1,166,749 and $1,097,048 respectively, representing 12% of covered payroll less forfeitures.

7. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS

In addition to the pension benefits described in Note 6, effective October 1, 1999, the Authority entered into a contractual agreement with Local 1596 of the Amalgamated Transit Union to provide postemployment health care benefits for those employees who, in accordance with Article 28 of the Amalgamated Transit Union Local 1596 Pension Plan, have at least ten (10) years vesting and retire between the ages of 62 and 67 or until they are eligible for Medicare benefits (whichever occurs first). Benefit provisions and contribution obligations have been established by the Authority’s Board. Eligibility for retirement health care benefits will be determined by the years of credited services.

In order to comply with the requirements of GASB 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions, the Authority contracted with a certified actuarial firm to provide an actuarial valuation of postemployment benefits. The postemployment health insurance benefits will continue to be offered on a pay-as-you-go basis a percentage of the cost of the Consumer Driven Health Plan (CDHP, Employee Only) in accordance with the following schedule:

Years of Service Contribution Rate 10-14 60% of CDHP, Employee Only 15-19 75% of CDHP, Employee Only 20+ 100% of CDHP, Employee Only

Employees who elect to continue their health care coverage upon retirement are responsible for the employee and employer share over and above the previously stated contributions. Dependent coverage is available at the retiree’s expense provided the retiree elects to continue health care coverage. As required by the State of Florida Statute 112.08011, the claims experience of the retirees is co-mingled with active employees in determining the health plan cost. In accordance with GASB 45, the co-mingling of claims requirements equates to an implicit subsidy to retirees that creates another postemployment benefit (OPEB) liability on the part of the Authority. Therefore, the Authority will incur a liability at the beginning of this fiscal year for the implicit rate subsidy as the Authority implements GASB 45. The Authority does not intend to fund the actuarial accrued liability.

The Authority’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB 45. In the year of implementation, the net OPEB Obligation and the ARC are the same amount. The calculation produced an unfunded obligation of $248,924. The following table shows the components of the Authority’s OPEB cost for the year, the amount contributed to the plan, and changes in the Authority’s net OPEB obligation at September 30, 2012, 2011 and 2010, as follows:

36

September 30 2012 2011 2010 Annual required contribution $ 329,109 $ 335,849 $ 379,227 Interest on net OPEB obligation 29,148 19,249 9,957 Adjustment to annual required contribution (40,519) (26,759) (13,842) Annual OPEB cost 317,738 328,339 375,342 Contributions made (83,901) (80,873) (143,044) Increase in net OPEB obligation 233,837 247,466 232,298 Net OPEB obligation, beginning of year 728,688 481,222 248,924 Net OPEB obligation, end of year $ 962,525 $ 728,688 $ 481,222

As of the October 1, 2012 actuarial valuation date, the unfunded actuarial accrued liability (UAAL) was $4,074,600. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $38,177,711 and the ratio of the UAAL to the covered payroll was 10.7%. The Authority’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year are as follows:

Year Ending

Annual OPEB Cost

Percentage of OPEB Cost Contributed

Net OPEB Obligation September 30, 2012 $317,738 26.4% $962,525 September 30, 2011 $328,339 24.6% $728,688 September 30, 2010 $375,342 38.1% $481,222

(A schedule of funding progress is presented on page 39.)

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. (As an unfunded plan, there are no plan assets to report.) Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long-term perspective of the calculations. The information presented in the required supplementary schedule was determined as a part of the actuarial valuation at the date indicated:

Valuation date October 1, 2011 Actuarial cost method Entry age normal cost Amortization method Level dollar/open Remaining amortization period 30 years Asset valuation method Pay as you go Actuarial assumptions: Projected salary increases 2.50% Investment rate 4.0% per year Healthcare cost trend (including 2.50% inflation)

9% initially and 4.5% ultimately, in 2014

37

8. COMMITMENTS

Operating Lease - Total lease expense amounted to $164,562 and $164,794 during the years ended September 30, 2012 and 2011, respectively.

9. FUEL HEDGE SWAP AGREEMENTS

The Authority first entered into diesel fuel hedge swap agreements (“swaps”) during fiscal year 2011 in order to smooth out the fluctuation in diesel fuel cost and to set predetermined upper limits with respect to the cost of diesel fuel. Eight swaps have occurred through September 30, 2012 as follows:

Trade Total Quantity - Fixed Price Date Effective Date Gallons Per Gallon

05/15/12 10/01/12 – 09/30/13 840,000 $3.0125 05/17/12 10/01/12 – 09/30/13 840,000 $2.9400 06/29/12 10/01/12 – 09/30/13 756,000 $2.3800 06/29/12 10/01/12 – 09/30/13 1,104,000 $2.7300

Trade Total Quantity - Fixed Price Date Effective Date Gallons Per Gallon

05/03/11 05/01/11 – 10/31/11 720,000 $3.3160 05/06/11 05/06/11 – 10/31/11 360,000 $3.0050 05/06/11 11/01/11 – 09/30/12 1,430,000 $3.0420 09/23/11 11/01/11 – 09/30/12 770,000 $2.8900

Settlements with the counterparty are made monthly based on the difference between the number of gallons hedged at the fixed price and the number of gallons hedged at the average price per gallon based on the Gulf Coast Ultra Low Sulfur Diesel Platts U.S. Index (“Platts”). If the Platts price is higher than the fixed price the counterparty pays the Authority a settlement amount and if the fixed price is higher than the Platts price the Authority pays the counterparty. The Authority is exposed to basis risk on the swaps if the index on which fuel is purchased differs from the Platts index specified in the related fuel hedge agreements. During fiscal year 2012, the Authority purchased all diesel fuel from vendors using the Platts index.

The Authority is also exposed to rollover risk on the swaps to the extent that the maturities of fuel hedges differ from the timing of fuel purchases. To the extent there are timing differences, the Authority is re-exposed to the fuel price risks being hedged.

The swaps are considered effective hedges at September 30, 2012 under the dollar-offset method, which compares the changes in expected cash flows of the hedging instruments to the cash flows of the diesel fuel subjected to hedge. Accordingly, the swaps are presented at estimated fair value on the balance sheet, with $744,896 as a deferred outflow of resources and derivative financial instrument on the balance sheet at September 30, 2012. The estimated fair value of the swaps is determined based on contracted strike prices and applicable futures prices at September 30, 2012, and these values represent the change in fair value of the swaps during the fiscal year.

10. LITIGATION

The Authority is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operation, most of which are covered by the self-insurance program discussed in Note 5. In the opinion of management, any adjustments that would result from the settlement of lawsuits and other claims would not be significant.

38

REQUIRED SUPPLEMENTARY INFORMATION

UNION PENSION PLAN

Schedule of Funding Progress

Valuation Dates, October 1

2011 2010 2009

Actuarial value of assets $ 87,639,137 $ 82,509,177 $ 76,104,519 Actuarial accrued liability 93,786,097 87,832,036 82,844,514 Unfunded actuarial liability $ 6,146,960 $ 5,322,859 $ 6,739,995 Funded Ratio 93.45% 93.94% 91.86%

Annual covered payroll $ 34,369,299 $ 35,059,922 $ 35,815,773 Unfunded actuarial liability as a percent of annual covered payroll 17.89% 15.18% 18.82%

Actuarial and Benefit Changes Changes in benefit provisions for the Union Pension Plan during prior fiscal years were as follows: Effective October 1, 2004, the Board of Trustees adopted several economic and demographic assumption changes based on the Five Year Experience Study issued November 2004. The combined changes caused the employer contribution to change from $3,060,496 to $3,056,186. Also, effective October 1, 2004, required employer contributions in excess of 9.75% of payroll will be shared between employer (65%) and employees (35%) beginning October 1, 2005. Effective November 9, 2004, amendment No. 4 allows a spouse to waive the joint and survivor form of annuity. Also, effective November 9, 2004, amendment No. 5 provides for an additional level of enhanced benefits. Members elect to receive an additional .25% of final average compensation for service during which they contribute an additional 2.5% of pay as a member contribution. This enhanced benefit is in addition to the previous enhanced benefit available. There is no impact on the plan. The increased member contribution supports the increased benefits. Effective May 10, 2005, amendment No. 6 makes changes in the administration of disability pension benefits. Effective for the contribution year beginning October 1, 2007 the mortality rates were updated to the 1994 Group Annual Mortality (GAM), eliminating the one year set ahead for males, and revised results from October 1, 2002 forward to hold a payable amount for Share Accounts.

39

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Other Postemployment Benefits (OPEB)

For the Years Ended September 30, 2012, 2011 and 2010

Schedule of Funding Progress

Actuarial Valuation Date

Actuarial Value of Assets

(a)

Actuarial Accrued Liability (normal

cost) Entry Age (b)

Unfunded Actuarial Accrued Liability (UAAL)

(b-a)

Funded Ratio (a/b)

Annual Covered Payroll

(c)

UAAL as a % of

Covered Payroll ((b-a)/c)

October 1, 2012 $ -

$4,074,600

$4,074,600

0.0% $38,177,711 10.7%

October 1, 2011 $ - $3,827,817 $3,827,817 0.0% $37,732,257 10.1% October 1, 2010 $ - $4,837,807 $4,837,807 0.0% $38,482,407 12.6%

40

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXSUPPLEMENTAL SCHEDULE OF REVENUES AND EXPENSES

BUDGET VS ACTUAL (BUDGET BASIS)YEAR ENDED SEPTEMBER 30, 2012

Variance Favorable/

Budget Actual (Unfavorable)

OPERATING REVENUES Customer fares $ 23,409,583 $ 28,620,319 $ 5,210,736 Contract services:

Local financial assistance 7,446,887 8,039,874 592,987Other contractual services 9,047,941 8,424,765 (623,176)

Advertising -on Buses 1,105,000 1,182,825 77,825 Other income 435,361 399,578 (35,783)

Total operating revenues 41,444,772 46,667,361 5,222,589

OPERATING EXPENSES: Transportation 39,773,247 38,384,919 1,388,328 Maintenance and operations 61,139,279 61,420,132 (280,853) General and administrative 14,027,145 12,174,990 1,852,155

Total operating expenses before depreciation 114,939,671 111,980,041 2,959,630

OPERATING LOSS (73,494,899) (65,312,680) 8,182,219

NONOPERATING REVENUES/(EXPENSES): Federal 21,653,943 19,678,415 (1,975,528) State of Florida 10,519,010 10,502,906 (16,104) Local 37,994,046 38,019,046 25,000 Interest income 150,000 51,877 (98,123) Interest expense (238,511) (238,511) -

Total nonoperating revenues/(expenses), net 70,078,488 68,013,733 (2,064,755)

Increase/(decrease) in net assets $ (3,416,411) 2,701,053 $ 6,117,464

BASIS DIFFERENCES: Depreciation (19,150,980) Other income (expenses) 84,114

Capital contribution 12,910,079

Increase in net assets - GAAP basis $ (3,455,734)

Statistical Section


41

STATISTICAL INFORMATION

This section contains statistical tables reflecting various supplemental financial data concerning the Authority’s operations.

Where applicable, a 10-year history has been depicted to disclose trends in financial operations and other finance-related

matters. These tables have been included as a part of this report for information purposes only, and, therefore, have not

been subjected to audit by the Authority’s independent auditors. Below is a summary of the components and purpose for

the tables provided here-in.

Pages

Debt Capacity

This schedule presents information to help the reader assess the ability of LYNX to service its

outstanding debt.

45

Revenue Capacity

These schedules contain information to help the reader assess LYNX’ most significant revenue sources. 46-48

Financial Trends

These schedules contain trend information to help the reader understand how LYNX’ financial

performance and financial position have changed over time.

43-44,

49-51,

59-61

Demographic and Economic Information

These schedules contain demographic and economic indicators to help the reader understand the

environment within which LYNX’ financial activities take place.

42,

52-57

Other Operating Information

These schedules contain service levels and capital asset data and insurance information to help the

reader understand how the information in LYNX’ financial report relates to the services the Authority

provides to its customers and the community.

58,

62-63

42

Source: Metro Orlando Economic Development Commission National Transportation Database Report

1,125,323

17,258,824

Five (5) Voting

Local Government (Independent Special District)

Area Population

Vehicle Miles Operated

Number of Service Routes

Vehicle Hours Operated

Hours of Operation

Average Weekday Passengers

Peak Vehicle Requirement

CENTRAL FLORIDA REGIONAL TRANSPORATION AUTHORITY

Miscellaneous StatisticsYear End September 30, 2012

(Unaudited)

LYNX

Form of Government

Number of Directors

92,319

225

66

4:00 a.m. to 3:10 a.m.

Counties Served

1,878,762

Orange, Seminole and Osceola

43

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Operating Revenue: Customer Fares 13.9$ 14.8$ 17.2$ 18.9$ 19.1$ 21.7$ 21.5$ 22.4$ 26.1$ 28.6$ Other 17.1 16.6 18.0 17.1 21.0 20.1 20.8 20.8 20.6 18.0 Total Operating Revenue 31.0 31.4 35.2 36.0 40.1 41.8 42.3 43.2 46.7 46.6

Operating Expenses: Administration, Transportation, and Maintenance 82.3 78.8 86.1 89.1 97.8 110.7 106.6 106.7 110.6 112.0 Depreciation 9.0 7.7 8.7 9.2 10.1 15.2 16.7 17.0 18.2 19.1 Write-off of Assets (Note 1) - - - - - - - - - - Total Operating Expenses 91.3 86.5 94.8 98.3 107.9 125.9 123.3 123.7 128.8 131.1

Operating Loss (60.3) (55.1) (59.6) (62.3) (67.8) (84.1) (81.0) (80.5) (82.1) (84.5)

Non-Operating Revenue (Expenses): Operating Assistance 33.7 35.1 37.6 38.9 53.1 50.1 54.3 48.9 46.4 47.8 Planning and Other Income (Expenses) 17.2 13.0 13.3 16.0 14.1 14.0 14.9 18.5 20.2 20.3 Capital Contributions 7.9 18.0 29.2 30.0 20.4 28.0 17.1 18.6 24.2 12.9 Total Non-Operating Revenue (Expenses) 58.8 66.1 80.1 84.9 87.6 92.1 86.3 86.0 90.8 81.0

Change in Net Assets (1.5)$ 11.0$ 20.5$ 22.6$ 19.8$ 8.0$ 5.3$ 5.5$ 8.7$ (3.5)$

Source: Financial Statements

For the past 10 years the chart shows the change in net assets each year versus the immediately preceding year. Since fiscal 2003, net assets year over year increased every year peakingin fiscal year 2006 at $22.6 million. The design, development and construction of the new LYNX Central Station (LCS) and LYNX Operations Center (LOC) , as well as the acquisitionof rolling stock and other capital assets caused a steep rise from fiscal year 2003, continuing through fiscal year 2006, with a decline in fiscal year 2007 with the completion ofconstruction at the LOC. The increase each fiscal year after fiscal year 2007 was relatively modest compared to fiscal year 2006. The 3.5 million decrease in fiscal year 2012 was belowthat of fiscal year 2011 due mainly to the completion of passenger amenities constructed with ARRA funds.

(Unaudited)


Revenue, Expenses, and Change in Net Assets

Dollars in Millions

LYNX

Last Ten Years

($10)

($5)

$0

$5

$10

$15

$20

$25

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dol

lars

in M

illi

ons

Year

Change in Net Assets

44

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Assets $79.4 $103.4 $130.1 $160.9 $178.5 $191.7 $190.9 $185.9 $194.3 $191.0 Total Liabilities $21.0 $34.0 $40.2 $48.3 $46.1 $51.3 $45.2 $34.7 $34.4 $34.5Ending Net Assets $58.4 $69.4 $89.9 $112.6 $132.4 $140.4 $145.7 $151.2 $159.9 $156.5

Invested in capital assets $49.6 $59.8 $80.2 $98.0 $110.2 $123.7 $123.5 $125.1 $131.1 $124.9

Restricted $0.0 $0.0 $0.0 $3.1 $1.3 $0.5 $0.5 $0.5 $0.5 $0.5Unrestricted $8.8 $9.6 $9.7 $11.5 $20.9 $16.2 $21.7 $25.6 $28.3 $31.1

Ending Net Assets $58.4 $69.4 $89.9 $112.6 $132.4 $140.4 $145.7 $151.2 $159.9 $156.5

This chart compares Total Assets, Total Liabilities, and Net Assets values over the last 10 years. Total Assets increased 140% during this periodas the Authority expanded service, acquired new rolling stock, developed land, and constructed the LYNX Central Station and LYNX OperationsCenter. Total Liabilities at the end of fiscal year 2012 are 64% higher than at the end of fiscal year 2003. The increase is due mainly toadditional State Infrastructure Bank loans taken in fiscal years 2004 and 2006, and a 2007 a lease agreement. Net Assets increased every year,except for fiscal years 2003 and 2012; at $156.5 million as of this fiscal year end they are 168% greater than at the end of fiscal year 2003.


Condensed Summary of Net AssetsLast Ten Years

Dollars in Millions(Unaudited)

LYNX

$-

$50

$100

$150

$200

$250

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dol

lars

in M

illi

ons

Total Assets Total Liabilities Net Assets

45

CENTRAL FLORIDA REGIONAL TRANSPORATION AUTHORITY d/b/aLYNX

Total DebtLast Ten Years

(Unaudited)

Year Total Debt SIB Loans Capital Leases

Annual Debt Service

PaymentsPledged

RevenuesDebt Service

CoverageMedian Income

Debt per Median Income

2003 $6,183,767 $6,000,000 $183,767 - $14,449,402 - $41,773 $148.032004 $11,830,468 $11,749,569 $80,899 - $15,210,218 - $43,159 $274.112005 $15,656,517 $15,558,991 $97,526 - $26,818,013 - $44,984 $348.052006 $21,722,909 $21,677,898 $45,011 $1,021,093 $32,413,802 31.74 $47,445 $457.852007 $25,331,967 $17,698,991 $7,632,976 $3,978,907 $22,551,897 5.67 $51,437 $492.492008 $22,662,882 $15,996,355 $6,666,527 $1,850,585 $33,529,785 18.12 $52,430 $432.252009 $18,576,071 $12,914,638 $5,661,433 $3,321,419 $24,881,390 7.49 $53,583 $346.682010 $14,446,041 $9,829,891 $4,616,150 $3,321,420 $17,211,000 5.18 $52,104 $277.252011 $12,430,432 $8,901,362 $3,529,070 $1,046,219 $20,649,873 19.74 $52,693 $235.902012 $10,563,319 $8,164,797 $2,398,522 $829,492 $23,411,900 28.22 $51,923 $203.44

Source: Financial Statements, NTD Report, and Orlando Economic Development Commission.

Note: Total debt consists of State Infrastructure Bank loans and capital lease obligations but annual debt service payments consist only of payments on State Infrastructure Bankloans. Available pledged revenues are for capital expenditures and debt service payments.

0

10,000,000

20,000,000

30,000,000

40,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Annual Debt Service Payments and Pledged Revenues

Annual Debt Service Payments Pledged Revenues

$0

$100

$200

$300

$400

$500

Debt Service Per Median Income

Median Income

46

Fiscal Year Fares Other Total Local & State Federal Total Total Revenue2003 $13.902 $17.099 $31.001 $37.369 $13.974 $51.343 $82.3442004 $14.832 $16.593 $31.425 $36.912 $11.216 $48.128 $79.5532005 $17.184 $18.032 $35.216 $38.921 $11.887 $50.808 $86.0242006 $18.869 $17.134 $36.003 $39.757 $14.006 $53.763 $89.7662007 $19.127 $21.003 $40.130 $54.914 $11.103 $66.017 $106.1472008 $21.661 $20.179 $41.840 $51.997 $12.077 $64.074 $105.9142009 $21.454 $20.790 $42.244 $55.466 $14.509 $69.975 $112.2192010 $22.363 $20.800 $43.163 $51.684 $15.917 $67.601 $110.7642011 $26.098 $20.661 $46.759 $48.370 $19.031 $67.401 $114.1602012 $28.620 $18.047 $46.667 $48.521 $19.678 $68.199 $114.866

Source: Financial statements and schedules included in the Comprehensive Annual Financial Reports

The table and graph show the primary sources of revenues, the amount received from each source over the last ten years and,consequently, the Authority's relative dependency on each of the revenue sources. Local and state governments haveconsistently been the biggest providers of operating funds. Fares increased in 2012 due to greater ridership; fares were up9.6% compared to 2011. Although the increase in local & state revenues and federal assistanace offset the decrease in otherrevenues from 2011, total revenues were higher due to the increase in fares. The local and state economies remained sluggishthroughout 2012. In 2012 federal revenue continued its increasing trend amounting to 17.1% of LYNX's total revenue versus16.7% in 2011.

OPERATING ASSISTANCEMISCELLANEOUS REVENUEOPERATING AND OTHER


Revenue by SourceLast Ten Years

LYNX

(Unaudited)Dollars in Millions

0

10

20

30

40

50

60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dol

lars

in M

illi

ons

Year

LYNX Revenue by Source

Fares Other Local & State Federal

47

OPERATING AND OTHERMISCELLANEOUS REVENUE OPERATING ASSISTANCE

FISCAL LOCAL & TOTALYEAR FARES OTHER TOTAL STATE FEDERAL TOTAL REVENUE

INDUSTRY

2003 32.6% 18.1% 50.7% 43.6% 5.7% 49.3% 100.0%

2004 32.9% 16.7% 49.6% 43.4% 7.0% 50.4% 100.0%

2005 32.4% 7.2% 39.6% 53.1% 7.3% 60.4% 100.0%

2006 33.2% 7.0% 40.2% 52.1% 7.7% 59.8% 100.0%

2007 31.4% 6.5% 37.9% 54.6% 7.5% 62.1% 100.0%

2008 31.3% 6.4% 37.7% 55.3% 7.0% 62.3% 100.0%

2009 31.5% 5.8% 37.4% 54.4% 8.2% 62.6% 100.0%

2010 32.1% 5.4% 37.5% 53.1% 9.4% 62.5% 100.0%

2011 * * 0.0% * * 0.0% 0.0%

2012 * * 0.0% * * 0.0% 0.0%LYNX

2003 16.9% 20.7% 37.6% 45.4% 17.0% 62.4% 100.0%

2004 18.6% 20.9% 39.5% 46.4% 14.1% 60.5% 100.0%

2005 20.0% 21.0% 41.0% 45.2% 13.8% 59.0% 100.0%

2006 21.0% 19.1% 40.1% 47.8% 12.1% 59.9% 100.0%

2007 18.0% 19.8% 37.8% 51.7% 10.5% 62.2% 100.0%

2008 20.4% 19.1% 39.5% 49.1% 11.4% 60.5% 100.0%

2009 19.1% 18.5% 37.6% 49.5% 12.9% 62.4% 100.0%

2010 20.2% 18.8% 39.0% 46.6% 14.4% 61.0% 100.0%

2011 22.9% 18.1% 41.0% 42.4% 16.6% 59.0% 100.0%

2012 24.9% 15.7% 40.6% 42.3% 17.1% 59.4% 100.0%

Source: Financial Statements APTA 2012 Transportation Fact Book Page 29* Not available

(Unaudited)

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/aLYNX

Revenues by SourceLast Ten Years

48

Cash Fare/Single Ride $ 2.00

Transfer Free

Elderly and Disabled/Single Ride $ 1.00

Students $ 1.00

Daily Pass $ 4.50

Elderly and Disabled Daily Pass $ 2.25

Student Daily Pass $ 2.25

Children (6 years and under with an adult) Free

TICKETS

Express Single Ride $ 3.50

Express Seniors/Students $ 1.75

Votran $ 3.50

Votran Discount (Students, Elderly and Disabled) $ 1.75

Votran 10-Ticket Booklet $ 31.50

Votran 10-Ticket Booklet Discount (Students, Elderly and Disabled) $ 15.75

Votran Monthly Pass $ 80.00

Votran Monthly Pass Discount (Students, Elderly and Disabled) $ 40.00

PASSES

7 Day Pass $ 16.00

Discounted 7 Day Pass (Students, Elderly and Disabled) $ 8.00

Express 7 Day Pass $ 23.00

Express Discounted 7 Day Pass (Students, Elderly and Disabled) $ 11.50

Youth Pass 7 Day $ 8.00

30 Day $ 50.00

AdvantAge Pass 30 Day (Elderly and Disabled) $ 25.00

Youth Pass 30 Day $ 25.00

Express 30 Day $ 70.00

Express AdvantAge Pass 30 Day (Elderly and Disabled) $ 35.00

Express Youth Pass 30 Day $ 35.00


SOURCE: LYNX Fare Structure Policy

Year Ended September 30, 2012

Fare Structure

(Unaudited)

LYNX

49

Fiscal Single Discount 1 Day Discount 7 Day Discount 30 Day Discount Year Fare Single Fare 1 Day Pass 7 Day Pass 30 Day 2003 1.25 0.50 3.00 1.50 10.00 5.00 36.00 15.002004 1.25 0.50 3.00 1.50 10.00 5.00 36.00 15.002005 1.50 0.75 3.50 1.75 12.00 6.00 38.00 18.002006 1.50 0.75 3.50 1.75 12.00 6.00 38.00 18.002007 1.50 0.75 3.50 1.75 12.00 6.00 38.00 18.002008 1.75 0.85 4.00 2.00 14.00 7.00 44.00 22.002009 2.00 1.00 4.50 2.25 16.00 8.00 50.00 25.002010 2.00 1.00 4.50 2.25 16.00 8.00 50.00 25.002011 2.00 1.00 4.50 2.25 16.00 8.00 50.00 25.002012 2.00 1.00 4.50 2.25 16.00 8.00 50.00 25.00

Discounted Fares Include: Discounted Passes Include:Youth

Elderly and Handicapped AdvantageDoes Not Include Xpress Links 200 & 204 IQ

The table and graph show the amount of each standard fixed-route fare type by year. In keeping with theAuthority's commitment to keep fares as low as fiscally feasible and to make relatively small rate increasesperiodically, no fare rate increases were made in 2012. In 2012 customer fares were approximately 61% ofoperating revenues and 24.9% of total revenues. The last increase was implemented in January 2009.

Students

CASH FARES PASSES


Fare TrendsLast Ten Years

(Unaudited)

LYNX

0.50

0.75

1.00

1.25

1.50

1.75

2.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fare

($)

Year

Full Single Ride Fare Last Ten Years

Single Ride Fare

50

Fiscal Year Percentage

2003 19%

2004 18%

2005 20%

2006 21%

2007 20%

2008 20%

2009 20%

2010 21%

2011 24%

2012 26%

Farebox Recovery Percentage is the percentage of the total operating cost that is funded by customer fares. It is calculated by dividing totalcustomer fares by total operating cost before depreciation. Beginning with 2003 the recovery rate has remained fairly constant varying byapproximately 1% from year to year. The 2012 rate was 2% higher than 2011 and 7% above the 2003 level. The 2012 increase is due mainlyto higher ridership.


Farebox Recovery PercentageLast Ten Years

(Unaudited)

LYNX

15%

18%

21%

24%

27%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fare

box

Rec

over

y Pe

rcen

tage

Year

FAREBOX RECOVERY PERCENTAGE

51

Year Transportation Maintenance Administrative and General Total2003 597 183 154 9342004 600 184 155 9392005 600 193 156 9492006 585 182 168 9352007 639 204 168 1,0112008 656 195 170 1,0212009 641 197 137 9752010 653 199 137 9892011 653 199 139 9912012 693 198 148 1,039

Source: Annual Budgets

The greatest fluctuation during the 10-year period was in the Transportation area with 2012 staffing approximately5.3% above the peak level of the 10-year period shown above. Staffing level increased as a result of increase inservice demand. Despite the Transportation staff increase, the organization wide total from year to year varied lessthan 11.2% with an overall increasing trend.


Budgeted Staffing TrendsLast Ten Years

(Unaudited)

LYNX

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Em

ploy

ees

Year

Staffing Trends

Transportation Maintenance Administrative and General

52

Number of Percentage Number of Percentage Full Time of Total Full Time of Total

Company Employees Rank Employment Employees Rank Employment

Walt Disney World Company 58,000 1 5.55% 53,000 1 6.13%

Orange County Public Schools 21,733 2 2.08% 25,000 2 2.89%

Walmart 18,199 3 1.74% 11,600 7 1.34%

Publix Super Markets 17,521 4 1.68% 12,600 4 1.46%

Florida Hospital 16,700 5 1.60% 12,808 3 1.48%

Orlando Regional Healthcare 14,310 6 1.37% 12,000 5 1.39%

Universal Studios 13,000 7 1.24% 12,000 6 1.39%

University of Central Florida 10,567 8 1.01% N/A N/A N/A

Seminole County Public School 7,442 9 0.71% 8,824 9 1.02%

Sea World Parks and Entertainment 7,000 10 0.67% N/A N/A N/A

Orange County Government N/A N/A N/A 9,546 8 1.11%

Winn Dixie Supermarkets N/A N/A N/A 8,025 10 0.93%

Other Employers 861,018 82.35% 698,691 80.86%

Region Total 1,045,490 100.00% 864,094 100.00%

Notes: N/A = Not Applicable Source: Orlando Business Journal Metro Orlando Economic Development Commission University of Central Florida Office of Institutional ResearchOrlando HealthSeminal County Public SchoolsOrange County Government, Florida

2012 2003

(Unaudited)


Top Ten EmployersService Area Employers

Current Year and Nine Years Ago

LYNX

53

Year Manufacturing Construction Transportation Finance Government Retail Trade Service Total

2003 4.5% 6.6% 5.1% 6.2% 11.2% 23.8% 42.6% 100.0%

2004 4.4% 7.0% 4.9% 6.0% 11.0% 24.3% 42.4% 100.0%

2005 4.3% 7.6% 4.3% 6.0% 10.8% 22.8% 44.2% 100.0%

2006 4.1% 8.0% 4.9% 6.2% 10.6% 20.3% 45.9% 100.0%

2007 4.0% 7.8% 4.9% 5.9% 11.0% 20.6% 45.8% 100.0%

2008 3.8% 6.6% 3.9% 6.2% 11.0% 15.3% 53.2% 100.0%

2009 3.9% 6.0% 3.1% 6.4% 11.7% 11.1% 57.8% 100.0%

2010 3.7% 4.8% 3.0% 6.0% 11.7% 11.4% 59.4% 100.0%

2011 3.6% 4.6% 3.1% 6.1% 11.5% 11.8% 59.3% 100.0%

2012 3.6% 4.2% 3.0% 6.2% 11.3% 12.3% 59.4% 100.0%

Source: Metro Orlando Economic Development Commission

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/aLYNX

(Unaudited)

Employment Percentage by IndustryService RegionLast Ten Years

54

Year Orange County Seminole County Osceola County Region Total

2003 983,165 394,900 210,438 1,588,503

2004 1,013,937 403,361 225,816 1,643,114

2005 1,043,437 411,744 235,156 1,690,337

2006 1,079,524 420,667 255,903 1,756,094

2007 1,105,603 425,698 266,123 1,797,424

2008 1,114,979 426,413 273,709 1,815,101

2009 1,108,882 423,759 272,788 1,805,429

2010 1,087,971 412,660 278,153 1,778,784

2011 1,183,903 429,169 275,010 1,888,082

2012 1,166,730 430,738 281,294 1,878,762



The population of the tri-county area, as a whole, drecreased approximately .49 % from 2011. There was an increase every year exceptfor 2009, 2010 and 2012. The greatest growth was in Osceola County, where the population grew approximately 2.28% compared tothe previous year.

Population by Service CountyLast Ten Years

(Unaudited)

LYNX

100,000

300,000

500,000

700,000

900,000

1,100,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Pop

ula

tion

Year

Population by Service County

Orange County Seminole County Osceola County

55

Year Orange County Seminole County Osceola County2003 40,241 50,960 30,6992004 44,456 52,881 41,2502005 45,330 53,675 41,8722006 46,963 56,072 43,3362007 51,188 59,354 46,8902008 52,062 61,378 47,2282009 52,130 61,374 47,2442010 52,232 58,703 48,9422011 52,624 60,210 48,3672012 51,338 59,609 47,386


Median household income is useful in public transportation planning because it is one determinant of the need for, and probability of use, ofpublic transportation. The lower the median income the greater, in most cases, will be the need for, and use of, public transportation.Overall the tri-county area median income decreased from 2011.


Median Household Income by Service CountyLast Ten Years

(Unaudited)

LYNX

15,000

25,000

35,000

45,000

55,000

65,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Med

ian

In

com

e

Year

Median Income by Service County


56

Year Orange County Seminole County Osceola County Region Average2003 4.5% 4.8% 5.4% 4.5%2004 4.2% 3.8% 5.7% 4.2%2005 2.9% 2.5% 3.1% 3.0%2006 3.0% 2.8% 3.2% 3.1%2007 3.9% 3.6% 4.6% 3.3%2008 4.8% 4.7% 5.5% 5.0%2009 9.9% 7.0% 13.7% 10.2%2010 11.8% 10.9% 12.8% 11.8%2011 10.2% 9.5% 11.3% 10.3%2012 8.4% 7.7% 9.4% 8.4%


Employment and Unemployment trends are useful in the analysis of the economic vitality of a localeconomy. The availability of public transportation removes transportation barriers to employment, afactor which contributes to the continued need for public transportation. The yearly percentages bycounty are annual averages, non-seasonal based. The tri-county average for fiscal year 2012 was 8.4%,with Osceola at 9.4% having the highest unemployment. On the favorable side, each service countyposted a decline in unemployment compared to 2011.


Unemployment by Service CountyLast Ten Years

(Unaudited)

LYNX

2%4%6%8%

10%12%14%16%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Une

mpl

oym

ent P

erce

ntag

e

Year

Unemployment by Service County


57

Year Orange County Seminole County Osceola County Region Total2003 609,330 146,296 51,819 807,4452004 633,500 155,845 55,856 845,2012005 559,852 233,747 110,867 904,4662006 586,102 242,061 120,684 948,8472007 599,487 245,764 126,783 972,0342008 574,090 234,275 124,406 932,7712009 521,623 215,016 115,643 852,2822010 539,404 216,202 122,843 878,4492011 547,816 218,049 126,431 892,2962012 585,472 215,521 131,146 932,139


The tri-county area has experienced growth in employment every year, except for 2003, from 2003 through 2007. There was adecline in 2008 and again in 2009 due to the recession that began in 2008. Recovery has been slow and painful, with 2012being only 4.46% above the depressed level of 2011 and 9.3% above the 2009 level. Hardest hit was Seminole County, whereemployment in 2012 was still 12.3% below the peak reached in 2007.


Employment by Service CountyLast Ten Years

(Unaudited)

LYNX

40,000

140,000

240,000

340,000

440,000

540,000

640,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Em

ploy

men

t

Year

Employment by Service County


58

2003 21,894,985 236 14,083,287 985,669

2004 22,677,846 230 14,081,562 987,450

2005 24,030,234 237 14,478,451 1,013,865

2006 24,570,957 240 14,726,834 1,033,796

2007 26,078,255 240 15,475,289 1,058,929

2008 26,427,067 238 16,739,475 1,162,852

2009 23,747,795 234 16,225,409 1,108,783

2010 24,780,704 223 16,570,711 1,111,073

2011 26,996,158 225 16,503,043 1,108,489

2012 28,184,740 225 17,258,824 1,125,323

SOURCES: NTD report (MotorBus)

Number of vehicles exclude vehicles not in service at the end of the fiscal year.


(Unaudited)

LYNX

ACTUAL VEHICLE

HOURS

FISCAL YEAR

RIDERSHIPNUMBER OF PEAK

VEHICLES

ACTUAL VEHICLE

MILES

Last TenYearsGeneral Statistical Trends

59

Fiscal Year

Salaries Wages and

Benefits

Purchased Transportation

Services

Materials and

SuppliesProfessional

ServicesLeases and

Miscellaneous

Casualty Liability

Insurance

Utilities, Taxes & Licenses Depreciation

Total Operating Expenses

2003 45.7 16.5 7.6 8.8 1.5 1.2 1.0 9.0 91.3

2004 46.8 13.6 8.0 6.6 1.7 1.2 0.9 7.7 86.5

2005 49.8 13.8 11.4 7.0 1.9 1.0 1.2 8.7 94.8

2006 51.5 12.5 14.2 6.1 1.7 1.5 1.6 9.2 98.3

2007 55.5 15.8 15.0 6.4 1.7 2.1 1.4 10.0 107.9

2008 59.7 17.2 21.9 6.5 1.3 2.5 1.6 15.3 126.0

2009 61.0 18.2 16.5 6.1 0.7 2.5 1.6 16.7 123.3

2010 59.4 20.1 16.5 6.4 0.7 1.8 1.8 17.0 123.7

2011 57.9 21.2 21.1 5.7 0.7 2.1 1.9 18.2 128.8

2012 59.0 20.8 22.7 5.4 0.7 1.6 1.8 19.1 131.1


The table and graph show the annual amount for each of the 8 primary object classifications of operating expenses during the last tenyears. Total operating expenses for 2012 was 43.59 % above the 2003 level and 1.78% above the previous peak reached in 2011. At 45% of total operating expenses in 2012, the Salaries, Wages and Benefits object is the largest object and, due to higher ridership,increased 1.89% in 2012.


Last Ten YearsDollars in Millions

(Unaudited)

Operating Expenses by ObjectLYNX

$0

$10

$20

$30

$40

$50

$60

$70

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dol

lars

in M

illio

ns

Year

Total Operating Expenses by Object

Salaries Wages and Benefits Purchased Transportation Services Materials and Supplies Professional Services

Leases and Miscellaneous Casualty Liability Insurance Utilities, Taxes & Licenses Depreciation

60

Fiscal Year Transportation Maintenance ParatransitGeneral and

Administrative DepreciationTotal Operating

Expenses2003 $29.7 $16.5 $15.8 $20.3 $9.0 $91.32004 $31.1 $16.8 $14.7 $16.2 $7.7 $86.52005 $35.1 $19.8 $14.9 $16.3 $8.7 $94.82006 $36.8 $21.9 $15.2 $15.2 $9.2 $98.32007 $39.9 $23.4 $18.0 $16.5 $10.1 $107.92008 $44.0 $29.8 $20.2 $16.7 $15.3 $126.02009 $40.2 $32.9 $19.8 $13.7 $16.7 $123.32010 $38.9 $34.1 $21.3 $12.4 $17.0 $123.72011 $37.8 $36.8 $23.5 $12.5 $18.2 $128.82012 $38.4 $38.0 $23.4 $12.2 $19.1 $131.1


Operating Expenses by FunctionLast Ten Years

Dollars in Millions

LYNX


This table and graph show operating expenses by function for the last ten years. Total operating expenses for 2012 are 43.6 % greaterthan 2003. Maintenance expenses in 2012 are 130.3% over the 2003 level; the greatest increase is due to increased demand formaintenance services resulting from an expanded revenue vehicles fleet and completion of office and maintenance facilities during thelast 10-year period. Depreciation costs rose 112.2% over the same period due to acquisition of new vehicles, development of realestate, and completion of new office and maintenance buildings at the LOC in 2007 and 2008. Transportation expenses increasedeach year through 2008 due mainly to expanded service routes. Efficiencies resulting mainly from route elimination and rearrangementlead to a decrease in the transportation cost beginning 2009. General and Administrative costs have fluctuated during the periodreaching a peak in 2003 and decreased from 2009 through 2012 due to reduction in staffing level.

(Unaudited)

$0

$10

$20

$30

$40

$50

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dol

lars

in M

illio

ns

Year

Total Operating Expenses by Function

Transportation Maintenance General and Administrative Depreciation

61

Fiscal Vehicle Revenue Operating Expense Operating Expense Year Miles Miles Per Vehicle Mile Per Revenue Mile

2003 14,083,287 12,986,576 5.84 6.34

2004 14,081,298 13,006,713 5.60 6.06

2005 14,488,566 13,398,280 5.94 6.43

2006 14,726,834 13,593,266 6.05 6.55

2007 15,475,289 14,072,186 6.32 6.95

2008 16,739,475 14,985,672 6.61 7.39

2009 16,215,911 14,230,128 6.57 7.49

2010 16,570,711 14,612,279 6.44 7.30

2011 16,503,043 14,714,555 6.70 7.52

2012 17,258,824 15,487,372 6.49 7.23

Source: Financial Statements National Transportation Database report

The table and graph show total miles and operating expenses per mile by year for the past ten years. These provide, directlyand indirectly, some key operational indicators such as efficiency in use of operating assistance funding and the quality ofthe maintenance program. There was a steady increase in Revenue Miles and Vehicles Miles until 2009 when service wasreduced due to budgetary constraints. The increase in Operating Expense Per Revenue Mile is reflective of increase in costfor material and services without a corresponding increase in miles and ridership. In 2012 the decrease in OperatingExpense Per Vehicle Mile and Revenue Mile is due mainly to decreases in fuel prices. The ratio of Revenue Miles versusVehicle Miles represents the level of service miles delivered to patrons versus the total level of miles required to service allroutes.

Operating Expenses Per Mile


Last Ten Years(Unaudited)

LYNX

$4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dol

lars

Per

Mil

e

Year

Operating Expenses Per Mile

Operating Expense Per Vehicle Mile Operating Expense Per Revenue Mile

62

(Unaudited)

Insurance Company Policy Premium Limits Deductible/SIR Commission/Fee

Westchester/Landmark

Property* $73,015

$70,912,301 $10,000, except $5,000 Contractor's Equipment/EDP2% Named Windstorm,$25,000 All Other Wind/Flood

0%

Named Windstorm Included $15,000,000Flood Included $10,000,000Ordinance & Law Included $10,000,000Debris Removal Included $5,000,000

Hartford Steam Boiler Boiler & Machinery* $2,115 $50,000,000 $10,000 / 24 HoursSub-total $75,130

PGIT (Preferred Governmental Crime $1,063 0%Insurance Trust) Forgery & Alteration Included $100,000 $1,000

TDD Included $50,000 $1,000Employee Dishonesty Included $250,000 $1,000Computer Fraud Included $250,000 $1,000

Sub-total $1,063

General Liability 0%General Liability $28,717 $1,000,000/$2,000,000 $200,000EBL Included $1,000,000 $200,000

Sub-total $28,717

Public Officials/EPLI 0%Public Officials $16,833 $2,000,000 $100,000EPLI $10,321 $2,000,000 $100,000

Sub-total $27,157

Automobile 0%Auto Liability/UM/MedPay Rejected N/A N/AAuto Physical Damage $127,227 Symbol 10 $1,000 / $10,000

Sub-total $127,227

Total Premium This Page $259,294* Property and Boiler Costs shown were for a 6 month period

CENTRAL FLORIDA REGIONAL TRANSPORTATION d/b/aLYNX

Risk ManagementInsurance Policies - Fiscal Year 2012

63

CENTRAL FLORIDA REGIONAL TRANSPORTATION d/b/aLYNX

Risk ManagementInsurance Policies - Fiscal Year 2012

(Unaudited)

Insurance Company Policy Premium Limits Deductible/SIR Commission/Fee

Lynx Self-Insured N/A N/A

PGIT (Preferred Governmental Automobile (Road Rangers) 0%Insurance Trust) Auto Liability $29,973 $300,000 $0

PIP Included Statutory $0UM/UIM Included $50,000Auto Physical Damage $10,294 Symbol 10Garage/Garagekeepers $0

Sub-total $40,267

St. Paul Fire & Marine Travelers Automobile 0%Auto Liability $60,248 $3,000,000 $200,000UM/UIM RejectedAuto Physical Damage Not Covered

Sub-total $60,248

U.S. Specialty Fiduciary $4,547 $2,000,000 $5,000 0%

Great American E&S Insurance Environmental $22,841 $1,000,000/$3,000,000 $25,000 / $50,000 0%

Arthur J. Gallagher Brokerage Fee $50,000 $50,000

Total Premium This Page $177,903

Grand Total Premiums $437,197

Workers Compensation

This page intentionally left blank

Single Audit Section


This page intentionally left blank

Fed

eral

Pro

gram

Sep

tem

ber

30,

Sep

tem

ber

30,

CF

DA

Pro

ject

or A

war

d20

1120

12F

ED

ER

AL

GR

AN

TO

R/P

RO

GR

AM

TIT

LE

Nu

mb

erN

um

ber

Am

oun

tR

ecei

vab

leR

ecei

pts

Exp

end

itu

res

Rec

eiva

ble

Dep

artm

ent

of H

omel

and

Sec

uri

ty

Rai

l an

d T

ran

sit

Sec

uri

ty G

ran

t P

rogr

am97

.075

10-D

S-5

2-06

-58-

20-2

3674

7,28

0

44

1,95

7

(4

79,4

61)

12

0,38

2

82

,878

97

.075

09-D

S-4

3-06

-58-

20-3

591,

313,

284

12

2,13

5

(1

62,8

51)

62

,430

21

,714

97

.075

2010

-RA

-T0-

0034

516,

463

2,13

0

(4

1,05

7)

39

,376

44

9

97.0

7520

09-R

A-T

9-00

451,

696,

404

98

2,65

8

(1

,260

,535

)

49

8,43

6

22

0,55

9

4,

273,

431

1,

548,

880

(1

,943

,904

)

72

0,62

4

32

5,60

0

D

epar

tmen

t of

Tra

nsp

orta

tion

Fed

eral

Tra

nsi

t C

lust

er

P

asse

d t

hro

ugh

th

e C

ity

of O

rlan

do

20.5

00F

L03

-012

611

,144

,100

20,2

65-

-

20,2

65

C

apit

al a

ssis

tan

ce20

.500

FL

03-0

340

7,92

0,00

0-

(4

18,0

36)

72

4,73

3

30

6,69

7

C

apit

al a

ssis

tan

ce20

.500

FL

04-0

052

5,90

3,20

023

3,46

8

(4

39,5

07)

20

6,03

9

-

C

apit

al a

ssis

tan

ce20

.500

FL

04-0

112

1,14

9,05

0-

(8

,000

)

54,5

18

46,5

18

C

apit

al a

ssis

tan

ce20

.500

FL

04-0

116

5,56

5,52

8-

(1

,170

,250

)

1,

170,

250

-

C

apit

al a

ssis

tan

ce20

.500

FL

04-0

147

1,23

3,13

2-

(4

02)

1,24

9

847

C

apit

al a

ssis

tan

ce20

.500

FL

04-0

161

2,05

0,00

0-

-

3,91

5

3,91

5

C

apit

al a

ssis

tan

ce20

.500

FL

04-0

163

2,00

0,00

0-

-

2,65

5

2,65

5

36

,965

,010

253,

733

(2,0

36,1

95)

2,16

3,35

9

380,

897

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X45

421

,329

,471

63,8

55

(93,

651)

29,7

96

-

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X65

321

,038

,123

286,

507

(1,0

18,7

47)

1,17

3,18

4

440,

944

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X68

822

,317

,593

333,

310

(2,1

56,1

08)

2,35

0,32

5

527,

527

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X72

622

,243

,009

4,48

9,90

2

(5,0

51,0

56)

980,

659

419,

505

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X75

71,

274,

422

-

(18,

133)

26,6

44

8,51

1

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X77

320

,549

,869

1,95

1,96

1

(11,

220,

981)

14,5

11,7

77

5,

242,

757

C

apit

al a

ssis

tan

ce

20.5

07F

L90

-X78

920

,903

,149

-

-

2,

729,

284

2,

729,

284

C

apit

al a

ssis

tan

ce

20.5

07F

L95

-X02

66,

013,

990

52,7

71

(1,4

28,7

82)

1,39

1,85

1

15,8

40

C

apit

al a

ssis

tan

ce

20.5

07F

L95

-X05

46,

025,

050

-

-

4,

620

4,

620

C

apit

al a

ssis

tan

ce

20.5

07F

L95

-X06

08,

767,

706

-

-

21

3,76

0

21

3,76

0

C

apit

al a

ssis

tan

ce

20.5

07F

L96

-X00

3 A

RR

A29

,574

,615

3,18

6,36

0

(4,7

47,8

79)

1,68

3,20

2

121,

683

180,

036,

997

10,3

64,6

66(2

5,73

5,33

7)

25

,095

,102

9,72

4,43

1

Tot

al F

eder

al T

ran

sit

Clu

ster

217,

002,

007

10,6

18,3

99(2

7,77

1,53

2)27

,258

,461

10,1

05,3

28

Fed

eral

Tra

nsi

t -

79-T

G

C

apit

al a

ssis

tan

ce

20.9

33F

L79

-000

113

,000

,000

-

(86,

081)

479,

803

393,

722

Tot

al F

eder

al T

ran

sit

- 79

-TG

13,0

00,0

00-

(8

6,08

1)47

9,80

339

3,72

2

Fed

eral

Tra

nsi

t -

Sec

tion

8:

P

asse

d t

hro

ugh

th

e M

etro

pla

n O

rlan

do

20.5

05F

L80

-X01

939

9,11

1

53

,035

(6

5,94

3)

12

,908

-

20

.505

FL

80-X

020

228,

651

58,1

49

(70,

051)

15,9

01

3,99

9

20

.505

FL

80-X

021

260,

183

-

(157

,018

)

195,

142

38,1

24

887,

945

111,

184

(293

,012

)

223,

951

42,1

23

64

CE

NT

RA

L F

LO

RID

A R

EG

ION

AL

TR

AN

SP

OR

TA

TIO

N A

UT

HO

RIT

Y d

/b/a

LY

NX

SC

HE

DU

LE

OF

EX

PE

ND

ITU

RE

S O

F F

ED

ER

AL

AW

AR

DS

YE

AR

EN

DE

D S

EP

TE

MB

ER

30,

201

2

(C

onti

nu

ed)

Fed

eral

Pro

gram

Sep

tem

ber

30,

Sep

tem

ber

30,

CF

DA

Pro

ject

or A

war

d20

1120

12F

ED

ER

AL

GR

AN

TO

R/P

RO

GR

AM

TIT

LE

Nu

mb

erN

um

ber

Am

oun

tR

ecei

vab

leR

ecei

pts

Exp

end

itu

res

Rec

eiva

ble

Fed

eral

Tra

nsi

t: S

ecti

on 1

8:

Pas

sed

th

rou

gh F

lori

da

Dep

artm

ent

of T

ran

spor

tati

on

C

apit

al A

ssis

tan

ce20

.509

AO

V68

484,

816

484,

500

(484

,500

)

484,

816

484,

816

484,

816

484,

500

(484

,500

)

484,

816

484,

816

Fed

eral

Tra

nsi

t: S

ecti

on 2

6

Pla

nn

ing

assi

stan

ce

20.5

14F

L26

-001

01,

247,

913

-

-

93

,157

93

,157

20.5

14F

L26

-710

750

0,00

0

2,

192

-

88

,969

91

,161

1,74

7,91

32,

192

-

18

2,12

6

18

4,31

8

Tra

nsi

t S

ervi

ces

Pro

gram

Clu

ster

20.5

16A

PF

8487

3,57

6(2

6,22

1)

(25,

990)

171,

864

119,

653

20.5

16A

QN

9258

7,77

5-

-

55,7

57

55,7

57

20.5

16F

L37

-X02

91,

206,

442

13

,579

(1

3,57

9)

-

-

20

.516

FL

37-X

062

1,44

0,37

7

19,7

86

(547

,213

)

556,

006

28,5

79

4,10

8,17

07,

144

(586

,782

)

783,

627

203,

989

20.5

21A

PF

8573

2,84

121

,909

(2

5,25

8)

3,

349

-

20

.521

FL

57-X

012

730,

803

91,3

84

(188

,510

)

97,1

26

-

20.5

21F

L57

-X03

486

6,75

9

53

,707

(2

60,7

73)

38

3,44

7

17

6,38

1

2,33

0,40

316

7,00

0(4

74,5

41)

48

3,92

2

17

6,38

1

Tot

al T

ran

sit

Ser

vice

s P

rogr

am C

lust

er6,

438,

573

174,

144

(1,0

61,3

23)

1,26

7,54

9

380,

370

Fed

eral

Tra

nsi

t -

Sec

tion

39

Pla

nn

ing

Ass

ista

nce

20.5

22F

L39

-000

592

6,00

0

62

,355

(1

25,2

44)

64

,083

1,

194

20.5

22F

L39

-001

180

0,00

0

-

(3

77,9

91)

45

4,44

0

76

,449

20

.522

FL

39-0

013

1,20

0,00

0

-

-

2,

893

2,

893

2,92

6,00

062

,355

(503

,235

)52

1,41

680

,536

TO

TA

L E

XP

EN

DIT

UR

ES

OF

FE

DE

RA

L A

WA

RD

S$

246,

760,

685

13,0

01,6

54$

(32,

143,

587)

31,1

38,7

46$

11,9

96,8

13

Du

e to

FD

OT

144,

914

110,

386

Tot

al R

ecei

vab

le$

13,1

46,5

68$

12,1

07,1

99

NO

NO

PE

RA

TIN

G R

EV

EN

UE

PO

RT

ION

19,6

78,4

15

CO

NT

RIB

UT

ED

CA

PIT

AL

$11

,460

,331

See

Not

es t

o S

ched

ule

s of

Exp

end

itu

res

of F

eder

al A

war

ds

and

Loc

al a

nd

Sta

te F

inan

cial

Ass

ista

nce

65

CE

NT

RA

L F

LO

RID

A R

EG

ION

AL

TR

AN

SP

OR

TA

TIO

N A

UT

HO

RIT

Y d

/b/a

LY

NX

SC

HE

DU

LE

OF

EX

PE

ND

ITU

RE

S O

F F

ED

ER

AL

AW

AR

DS

YE

AR

EN

DE

D S

EP

TE

MB

ER

30,

201

2

66

September 30, September 30,Program 2011 2012or Award Deferral Transfers/ Deferral

GRANT NUMBER/ SOURCE Amount (Receivable) Receipts Expenditures (Receivable)

LOCAL MATCHING GRANTS: N/A, AQB29 $ 2,706,301 - $ 217,925 $ 217,925 $ - N/A, AQP30 2,930,040 - 79,297 79,297 N/A, AQJ05 73,033 - 7,303 7,303 - Orange County (LYNX Operating Center) - 984 * - - 984 *

Orange County (Bus Lease) - 90,292 * 1,247,458 1,247,458 90,292 *

Private Partners (Shelters and Vans) - 471,433 741 350,350 121,824 City of Altamonte Springs (FlexBus Project) - 445,474 * - - 445,474 *

City of Orlando (LYNX-Orlando Trail Project) 1,541,415 - 308,283 - 308,283 City of Orlando (LYMMO East-West Project) 9,920,000 - 2,000,000 181,183 1,818,817 Other Local Capital - 86,115 - - 86,115

Total matching grants $ 17,170,789 $ 1,094,298 $ 3,861,007 2,083,516 $ 2,871,789

Customer fares and operating assistance 6,847

Contributed capital portion $ 2,076,669

LOCAL GRANTS AND CONTRACT SERVICES: Operating assistance: Orange County operating $ - $ 31,251,519 $ 31,251,519 $ - City of Orlando - 3,506,673 3,506,673 - Seminole County - 1,568,273 1,568,273 - Osceola County - 1,692,581 1,692,581 -

Total nonoperating revenue portion $ - $ 38,019,046 $ 38,019,046 $ -

Contract services: Seminole County $ - $ 2,515,675 $ 2,515,675 $ - Osceola County - 2,586,613 2,586,613 - City of Orlando (LYMMO) (214,011) 1,373,826 1,259,887 (100,072) City of Altamonte Springs - 120,900 120,900 - City of St. Cloud - 161,999 161,999 - City of Sanford - 85,250 93,000 (7,750) Disney - 250,000 250,000 - University of Central Florida (UCF) (33,476) 104,592 71,116 - Shingle Creek (39,071) 154,933 174,703 (58,841) Polk County (33,935) 145,672 134,275 (22,538) Votran (38,339) 137,681 123,281 (23,939) State Farm 240,750 324,500 323,000 242,250 Other Agencies (38,509) 38,509 - - Lake County - 225,425 225,425 -

Total Local Financial Assistance (156,591) 8,225,575 8,039,874 29,110

Other Contractual ServicesLocal - Shuttles - 156,020 156,020 - State - Transportation Disadvantage (1,226,693) 3,188,021 2,674,998 (713,670)

State - Medicaid (1,419,602) 6,012,396 5,593,747 (1,000,953) Total Other Contractual Services (2,646,295) 9,356,437 8,424,765 (1,714,623)

Total contract services $ (2,802,886) $ 17,582,012 $ 16,464,639 $ (1,685,513)

*These amounts are not receivables or deferrals, but are included as restricted net assets, as they relate to receipts that are restricted for matching.See notes to Schedules of Expenditures of Federal Awards and Local and State Financial Assistance.

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXSCHEDULE OF LOCAL FINANCIAL ASSISTANCEYEAR ENDED SEPTEMBER 30, 2012

67

STATE GRANTOR PROGRAM Program September 30, September 30,TITLE, CONTRACT NO., CSFA or Award 2011 Receipts/ 2012WPI NO., JOB NO. Number Amount Receivable Adjustments Expenditures Receivable

Florida Department of Transportation

N/A, AOY43 55.010 $ 9,021,604 $ 3,530,395 $ (8,041,198) $ 9,021,604 $ 4,510,801

N/A, APE10 55.012 901,616 69,000 (183,906) 114,906 - N/A, APJ28 55.012 200,000 41,634 (41,634) 22,783 22,783 N/A, APQ82 55.012 1,020,760 123,077 (157,369) 34,292 - N/A, APQ83 55.012 95,739 11,174 (17,893) 6,719 - N/A, APQ84 55.012 440,500 33,692 (144,626) 134,385 23,451

2,658,615 278,577 (545,428) 313,085 46,234

Total Florida Department of Transportation 11,680,219 3,808,972 (8,586,626) 9,334,689 4,557,035

Florida Transportation Disadvantaged Commission

N/A, APZ87 55.001 2,642,685 481,720 (481,720) - - N/A, AQB29 55.001 2,706,301 744,973 (2,706,301) 1,961,328 - N/A, AQJ05 55.001 65,730 - (65,730) 65,730 - N/A, AQP30 55.001 2,930,040 - - 713,670 713,670

8,344,756 1,226,693 (3,253,751) 2,740,728 713,670

TOTAL STATE FINANCIAL ASSISTANCE $ 20,024,975 $ 5,035,665 $ (11,840,377) $ 12,075,417 $ 5,270,705

Other State Contracts

N/A, BDL96 N/A 1,488,750 297,750 (1,290,249) 1,191,000 198,501 1,488,750 297,750 (1,290,249) 1,191,000 198,501

TOTAL STATE FINANCIAL ASSISTANCE

AND OTHER STATE CONTRACTS $ 5,333,415 $ (13,130,626) 13,266,417 $ 5,469,206

CONTRACT SERVICES PORTION 2,674,998

NONOPERATING REVENUE PORTION 10,502,906

CONTRIBUTED CAPITAL PORTION $ 88,513

See notes to Schedules of Expenditures of Federal Awards and Local and State Financial Assistance.

CENTRAL FLORIDA REGIONAL TRANSPORTATION AUTHORITY d/b/a LYNXSCHEDULE OF STATE FINANCIAL ASSISTANCEYEAR ENDED SEPTEMBER 30, 2012

68


NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS ANDLOCAL AND STATE FINANCIAL ASSISTANCEYEAR ENDED SEPTEMBER 30, 2012

1. The Schedules of Expenditures of Federal Awards and Local and State Financial Assistance areprepared on the accrual basis of accounting.

2. All grants subject to the Florida Single Audit Act are included in the Schedule of State Financial Assistance.

3. The Authority utilized state toll revenue credits received from the Florida Department of Transportationunder the following awards to satisfy federal and state matching requirements:

Toll RevenueAward Credits Applied

Grant Amount during Fiscal 2012FL-04-0052 $ 5,903,200 $ 51,510

FL-04-0112 1,149,050 13,630

FL-04-0116 5,565,528 292,563

FL-04-0161 2,050,000 979

FL-15-X005 2,071,000 -

FL-90-X454 21,329,471 7,449

FL-90-X653 21,038,123 293,296

FL-90-X688 22,317,593 587,581

FL-90-X726 22,243,009 245,165

FL-90-X773 20,549,869 3,440,444

FL-90-X789 20,903,149 567,571

FL-95-X026 6,013,990 347,963

FL-95-X054 6,025,050 1,155

FL-95-X060 8,767,706 53,440

Total $ 165,926,738 $ 5,902,746

4. Contract services presented on the Schedule of Local Financial Assistance include only those servicesprovided to local governmental units.

comprehensive annual financial report - lynx · increases or decreases in the authority’s net...

Documents