Contra Costa Transportation Authority STAFF REPORT

Contra Costa Transportation Authority STAFF REPORT

Meeting Date: November 15, 2017

Subject Accept Internal Accounting Report for Fiscal Year Ended June 30, 2017

Summary of Issues This report provides an accounting of the Authority’s financial position

and a comparison of actual results versus budget for the twelve months

ended June 30, 2017 (unaudited). Next month, the complete audited

financial statements will be presented to the Administration and

Projects Committee (APC) and the Authority Board.

Recommendations Staff seeks acceptance of this report.

Financial Implications As presented.

Options Request clarifications or provide additional comments to staff.

Attachments A. Internal Accounting Report (unaudited)

Changes from

Committee

N/A

Background

The APC functions as the internal audit committee for the Authority and regularly reviews the

financial reports. Consistent with prior direction from the APC, an internal accounting report is

prepared and presented at six-month, nine-month and twelve-month intervals. This report is

for management purposes only and provides an unaudited snapshot of the Authority’s financial

position through the twelve-month period. The report resembles the audited financial report

but does not include year-end closing entries and other reporting matters called for by the

Governmental Accounting Standards Board (GASB). Highlights of the report are as follows:

Revenues

1. Actual revenues of $126.7 million, 97.72 percent of the amount budgeted.

2. The single largest revenue category was sales tax of $85.1 million, which represents 67.1

percent of overall revenue. The amount received was $1.1 million more than budgeted,

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Contra Costa Transportation Authority STAFF REPORT November 15, 2017

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but an increase of $1.6 million or 2.0 percent from the prior year. The sales tax reports

show continued growth in new auto sales, restaurant, retail, construction and heavy

equipment. The gas sales tax revenue increased $165 thousand over the prior year.

3. The Authority received $41.0 million in Federal, State and local grant funds, which was

below budget by 6.5 percent. Expenditures need to be incurred prior to submittal for

reimbursement. The variance is related to the timing of completing project milestones

eligible for revenue reimbursement. Below are amounts received for the following

grants:

a. State Transportation Improvement Program funds of $10 million for construction

and construction management for Interstate 80 (I-80)/San Pablo Dam Road

Interchange Improvements.

b. Regional Measure 2 (RM2) funds of $9.7 million with $2.7 million for

construction reimbursement related to the Caldecott Tunnel and $6.4 million for

I-680 Southbound (SB) High Occupancy Vehicle (HOV) Completion project for

environmental clearance and construction management.

c. Transportation fund for Clean Air (TFCA) funds of $1.5 million for projects such

as the Contra Costa Countywide Carpool, Vanpool and Guaranteed Ride Home

programs, which reduces on-road motor vehicle emissions.

d. Federal Surface Transportation Program (STP) funds of $927 thousand for costs

associated with the Authority’s Congestion Management Agency (CMA) function.

e. Bay Area Toll Authority (BATA) funds of $1.9 million for State Route 4

(SR4)/SR160 Connector Ramps costs for construction and construction

management.

f. State Transportation Planning, Programming, and Monitoring (PPM) funds of

$112 thousand for CMA activities related to State Transportation Improvement

Program (STIP) and One Bay Area Grant (OBAG) project monitoring and fund

programming.

g. Local contributions of $2.5 million from East Contra Costa Regional Fee &

Financing Authority (ECCRFFA) for the Balfour Road Interchange project for

utility relocation and construction management.

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4. Investment income was $635 thousand, or 63.4 percent of budget. The Authority is

required to report on an annual basis the carrying value of its investments to reflect

their fair value at each fiscal year end, and it includes the effects of these adjustments in

income for that fiscal year. In FY 2016-17, unrealized market value declines are the

result of rising interest rates in general and not a specific investment or investment

type. These investments by the Authority are held to maturity, and the market value

loss will decline and interest income will be realized at the investment maturity. The

investment portfolio’s return for the year was 0.16 percent, exceeding the benchmark

measure of negative 0.11 percent. Local Agency Investment Fund (LAIF) annual return

was 0.754 percent.

Expenditures

1. Expenditures of $161.8 million were under budget by $26.8 million, and decreased $17

million from the prior year. The budget discrepancy can be attributed to the timing of

project expenditures on major capital projects ($14.7 million) and countywide capital

and maintenance projects ($3.7 million). These capital projects are subject to many

project expenditure changes that are outside the control of the Authority. Staff

continues to work with all of the project partners to ensure the Authority has

appropriate budgets to meet the needs of the individual project schedules.

2. Expenditures for salaries and benefits within the Measure J Administration category are

restricted at 1.0 percent. Based on the actual sales tax revenue for the fiscal year, the

annual 1.0 percent limitation was $0.85 million. Actual expenditures were $0.67 million

and 0.78 percent of the 1.0 percent limitation.

3. Program expenditures of $36.5 million, based on a percentage of sales tax revenues as

defined by the Measure J Expenditure Plan, provide funding for the following range of

programs:

a. Local streets & roads (18.0 percent) - $15.3 million

b. Bus transit and improvements (5.0 percent) - $4.3 million

c. Express bus (4.3 percent) - $3.6 million

d. Safe transportation for children (4.5 percent) - $3.9 million

e. Paratransit (3.6 percent) - $3.3 million

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f. Bus transit enhancements (3.4 percent) - $2.9 million

4. Capital Improvement Project expenditures for Measure C and J of $64.5 million were

under budget by $14.8 million. Below is an analysis of projects for both funds.

Measure C

Expenditures at June 30, 2017 were $3.1 million. The following are the major costs for

FY 2016-17:

1. Administration - $1.241 million for the election costs due to the Contra Costa Elections

office for the ballot Measure X that did not obtain sufficient votes.

2. I-680 Corridor - $1.03 million was spent on I-680/SR4 Interchange for design and ROW

activities and $653 thousand was spent on I-680 Auxiliary Lanes, Segment 2 for

construction and construction management.

3. Santa Maria Park and Ride Lot - $175 thousand was spent on the construction activities.

4. SR4 - Loveridge Road to Somersville Road has received a refund from Caltrans project

closeout in the amount of $374 thousand on the initial deposit for construction.

Measure J

Project expenditures at June 30, 2017 were $79.2 million. The following are the major project

costs for the fiscal year:

1. Caldecott Tunnel Fourth Bore - $1.3 million spent on construction and construction

support services.

2. eBART - $14.7 million spent on construction and construction support services.

3. The SR4(e) Widening project - $777 thousand spent on construction, construction

management, utility relocation, design, and ROW closeout.

4. Capital Corridor Improvements - $3.0 million spent on construction and construction

support services for the Hercules Intermodal Transit Center.

5. East County Corridor - $19.8 million with the majority of expenditures associated with

the Balfour Road Interchange in the amount of $19.1 million on utility relocation,

construction and construction support services.

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6. I-80 Carpool Lane Extension & Improvements - $15.5 million spent on construction,

construction support services, project oversight and utilities.

7. I-680 Carpool Lane Completion/Express Lanes - $7 million spent on environmental,

design and project oversight.

8. Countywide Major Streets Traffic Flow Improvements - $7.7 million. Some of the major

projects were the $1.8 million BART Parking and Access Improvements, $4.2 million

Transportation for Livable Communities and $1.7 million Pedestrian, Bicycle & Trail

Facilities.

9. Subregional Projects - $8.7 million. Some of the major streets projects include $2.1

million for Major Streets in Lafayette, $1.8 million for the Alhambra Creek Bridge, $719

thousand for the Clayton Major Street Improvements and $698 thousand for the Rheem

Blvd Landslide repair.

10. Measure J Projects were $15.8 million under budget for the year ended June 30, 2017

for the below projects, and re-budgeted for the following fiscal year:

a. Caldecott Tunnel Fourth Bore was under budget by $4 million as final costs are

pending in addition to the completion of landscaping work, which has not yet

been billed.

b. eBART was over budget by $3.7 million as construction costs progressed more

aggressively towards the end of the fiscal year than anticipated.

c. SR4(e) Widening was under budget by $4.1 million for construction and

construction management costs not yet realized as the projects near completion.

d. East County Corridor was under budget by $3.3 million. Caltrans issued a refund

of $2.9 million on the project final expenditure analysis and close out for SR4

Widening from Loveridge Road to Somersville.

e. I-80 Carpool Lane Extension and Improvements projects category was over

budget by $777 thousand. Within this category, the I-80/San Pablo Dam Road

Interchange Improvements project was over budget by $1.7 million as

construction progressed quicker than anticipated.

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f. I-680 Carpool Lane Completion/Express Lanes project was under budget by $1.3

million for environmental and design costs, which were not yet finalized.

g. Countywide Transportation for Livable Communities (TLC) Project Grants

Improvements project costs was under budget by $1.5 million due to slower

than anticipated progress by the project proponents.

h. Countywide Pedestrian, Bicycle and Trail Facilities Improvements projects were

under budget by $725 thousand due to slower than anticipated progress by the

project proponents.

i. Countywide Major Streets Traffic Flow Improvements projects were under

budget by $1.1 million due to slower than anticipated progress by the project

proponents.

Debt Service

1. The Authority’s Measure J Strategic Plan calls for the periodic issuance of sales tax

revenue bonds to finance construction costs and accelerate project delivery. The debt

payments, including principal and interest, are repaid semi-annually from future sales

tax revenues. During the fiscal year, the Authority made principal payments of $15.3

million and $18.9 million in interest payments.

a. On June 1, 2017, the Authority issued the 2017A Sales Tax Revenue Bonds in the

amount of $83.6 million to finance Measure J projects. In addition the 2017A

Bonds received a premium in the amount of $16.9 million.

Other Financing Sources (Uses)

1. Revenue associated with the issuance of the 2017A Bonds generated bond proceeds in

the amount of $83.57 million and $16.896 million in premiums. This bond issuance

generated $100 million to be utilized for capital projects.

2. Transfers In and Out are utilized to facilitate the use of resources between the General

Fund and Debt Service Funds.

a. Transfers In - The General Fund received $45.5 million from the Debt Service

Funds in bond proceeds to reimburse applicable capital project expenditures.

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b. Transfers Out - The Debt Service Fund received $29.4 million from the General

Fund to make the debt payments, including principal and interest.

Conclusion

This item is presented for information, review, comment and acceptance. More analysis and

discussion of the final results from FY 2016-17 will occur at the December APC meeting when

the Authority’s audited financial statements are presented.

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CONTRA COSTA TRANSPORTATION AUTHORITY

Internal Accounting Report

(Unaudited)

For the Year Ended June 30, 2017

ATTACHMENT A

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Introduction_________________________________________________________________ 1

General Purpose Financial Statements:

Governmental Funds and Account Groups Balance Sheet_________________ 2 - 3

Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances_________________________________________________ 4

Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual:

Measure J Fund (General Fund)______________________________ 5

Measure J Streets and Roads Special Revenue Fund_____________ 6

Measure C Special Revenue Fund (former General Fund)_________ 7

Measure J Debt Service Funds _______________________________ 8

Non-Major Governmental Special Revenue Funds:

Combined Balance Sheet______________________________________ 9

Combining Statement of Revenues, Expenditures and Changes inFund Balances _____________________________________________ 10

Combining Statement of Revenues, Expenditures and Changes inFund Balances - Budget and Actual___________________________ 11-12

Notes to Internal Accounting Report____________________________________________ 13-14

CONTRA COSTA TRANSPORTATION AUTHORITY

Internal Accounting Report


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The Internal Accounting Report shows Financial Statement information similar to the Government-wide Reporting format. The report does include Fixed Asset and Long Term Debt Funds similar to the traditional format. Our Audited Financial Statements are shown in the Governmental Accounting Standards Board Statements 34 (GASB 34) format.

Internal Accounting Reports are issued for the six months ending December 31 and the nine months ending March 31 as well as at the end of the fiscal year.

Introduction

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Measure J General Fund

Measure J Local Streets & Roads

Fund Measure C

Fund Measure J Debt Service Funds

Non Major Special Revenue

FundsAssets Restricted cash and investments 121,337,465$ 21,326,054$ 20,717,156 115,924,277$ 8,952,736$ Receivables: Sales tax 9,792,779 2,661,845 - - 794,976 Interest 583,893 - - - - Intergovernmental 4,412,799 - - - 848,744 Prepaid 72,324 - - - - Fair value of swap - - - - - Fixed assets - - - - - Amount to be provided for retirement of long term debt - - - - - Total Assets 136,199,259$ 23,987,899$ 20,717,156 115,924,277$ 10,596,456$

Liabilities and Fund Balances Liabilities: Accounts payable 26,082,354$ 23,987,899$ 745,188$ -$ 596,572$ Benefits payable - - - - 3,235 Accrued employee benefits 896,256 - - - - Deposit 148,955 - - - - Deferred Revenue 2,019,084 - - - 31,375 Interest rate swap agreement - - - - - Sales tax bonds - - - - - Total Liabilities 29,146,649 23,987,899 745,188 - 631,182

Fund Balances: Nonspendable: Investment in general fixed assets - - - - - Restricted: Air quality - - - - 1,790,149 Commute alternatives - - - - 916,247 Transportation projects 63,996,767 - 19,971,968 115,924,277 - Paratransit program - - - - 7,258,878 Additional paratransit program 1,786,791 - - - - Safe transportation for children 2,908,167 - - - - Ferry service 13,682,850 - - - - Bus transit and improvements 537,161 - - - - Express bus 450,717 - - - - Subregional bus transit 262,619 - - - - Transportation for livable communities projects (TLC) 12,498,448 - - - - Additional TLC 2,228,507 - - - - Pedestrian, bicycle and trail facilities 4,212,491 - - - - Additional pedestrian, bicycle and trail facilities 243,249 - - - - Subregional transportation needs 2,566,560 - - - - Planning and facilities 358,081 - - - - Administration 1,320,202 - - - - Total Fund Balances 107,052,610 (0) 19,971,968 115,924,277 9,965,274 Total Liabilities and Fund Balances 136,199,259$ 23,987,899$ 20,717,156 115,924,277$ 10,596,456$

CONTRA COSTA TRANSPORTATION AUTHORITYGovernmental Funds

Balance SheetJune 30, 2017

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Assets Restricted cash and investments Receivables: Sales tax Interest Intergovernmental Prepaid Fair value of swap Fixed assets Amount to be provided for retirement of long term debtTotal Assets

Liabilities and Fund Balances Liabilities: Accounts payable Benefits payable Accrued employee benefits Deposit Deferred Revenue Interest rate swap agreement Sales tax bonds Total Liabilities

Fund Balances: Nonspendable: Investment in general fixed assets Restricted: Air quality Commute alternatives Transportation projects Paratransit program Additional paratransit program Safe transportation for children Ferry service Bus transit and improvements Express bus Subregional bus transit Transportation for livable communities projects (TLC) Additional TLC Pedestrian, bicycle and trail facilities Additional pedestrian, bicycle and trail facilities Subregional transportation needs Planning and facilities Administration Total Fund BalancesTotal Liabilities and Fund Balances

General Fixed Assets

General Long-Term Debt

Total Governmental

Funds

-$ -$ 288,257,688$

- - 13,249,600 - - 583,893 - - 5,261,543 - - 72,324 - 43,134,259 43,134,259

401,962 - 401,962

- 561,485,236 561,485,236 401,962$ 604,619,495$ 912,446,504$

-$ -$ 51,412,013$ - - 3,235 - - 896,256 - - 148,955 - - 2,050,458 - 43,134,259 43,134,259 - 561,485,236 561,485,236 - 604,619,495 659,130,412

401,962 - 401,962

- - 1,790,149 - - 916,247 - - 199,893,012 - - 7,258,878 - - 1,786,791 - - 2,908,167 - - 13,682,850 - - 537,161 - - 450,717 - - 262,619

- - 12,498,448 - - 2,228,507 - - 4,212,491

- - 243,249 - - 2,566,560 - - 358,081 - - 1,320,202

401,962 - 253,316,090 401,962$ 604,619,495$ 912,446,503$

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Measure J General Fund

Measure J Local Streets & Roads

Fund Measure C FundMeasure J Debt Service Funds

Non Major Special Revenue Funds

Total Governmental

FundsRevenues Sales tax 62,901,918$ 17,097,815$ -$ -$ 5,106,366$ 85,106,100$ Investment income 381,120 - 58,797 168,495 26,640 635,052 Federal Surface Transportation Program (CMA) 926,596 - - - - 926,596 Federal Surface Transportation Program (SCS) 2,075,519 - - - - 2,075,519 Federal Surface Transportation Program (Rideshare) 122,221 - - - - 122,221 Federal Demo (East County Corridors) 261,946 - - - - 261,946 State Planning, Programming and Monitoring (PPM) 112,414 - - - - 112,414 State Funds - Planning 60,000 - - - - 60,000 State Local Partnership Program (SR4 East Widening) 786,236 - - - - 786,236 State Transportation Improvement Program (I-80) 10,027,875 10,027,875 Regional Measure 2 (SR4 East Widening) 213,687 - - - - 213,687 Regional Measure 2 (I-80 Carpool Ln Ext) 428,895 - - - - 428,895 Regional Measure 2 (I-680 Carpool Ln Ext & Int Imp) 6,405,884 - - - - 6,405,884 Regional Measure 2 (Caldecott Tunnel Fourth Bore) 2,702,741 - - - - 2,702,741 Town of Danville (I-680, TVTC) - - 5,880,000 - - 5,880,000 Contributions from CMA member agencies 170,978 - - - - 170,978 State Motor Vehicle Registration Surcharge (TFCA) - - - - 1,557,247 1,557,247 Bay Area Toll Authority (East County Corridors) 1,897,701 - - - - 1,897,701 Contra Costa County (East County Corridors) 70,431 - - - - 70,431 East Contra Costa Regional Fee & Financing Authority 2,515,540 - - - - 2,515,540 Contributions (COPH) - - - - 6,467 6,467 City of Antioch (SR4 East Widening) 606,138 - - - - 606,138

City of San Pablo (I-80 Carpool Ln Ext & Interchange Imp) 700,000 - - - - 700,000 Rental Income & Escrow Earnings (SR4 East) 3,474,966 - - - - 3,474,966 Total Revenues 96,842,806 17,097,815 5,938,797 168,495 6,696,721 126,744,634

Expenditures Current expenditures: Administration: Salaries and employee benefits 667,502 - - - - 667,502 Services, supplies & capital outlay 1,326,545 - 1,240,927 - - 2,567,472 Project Management: Salaries and employee benefits 1,565,683 - - - - 1,565,683 Services, supplies & capital outlay 101,560 - - - - 101,560 Programs: Commute alternatives - - - - 593,865 593,865 Additional paratransit 878,167 - - - - 878,167 Bus transit enhancements 2,897,369 - - - - 2,897,369 Paratransit - - - - 3,309,880 3,309,880 Express bus program 3,643,347 - - - - 3,643,347 Bus transit and improvement program 4,257,369 - - - - 4,257,369 Safe transportation for children 3,852,058 - - - - 3,852,058 Local street and maintenance - 15,319,098 - - - 15,319,098 Subregional Local street and maintenance - 1,778,717 - - - 1,778,717 Transportation Projects: Highways and Arterials - - 1,766,363 - - 1,766,363 Transit - - 121,099 - - 121,099 Capital Improvement Projects 62,729,413 - - - - 62,729,413 Countywide Capital and Maintenance Projects 7,716,223 - - - - 7,716,223 Subregional Projects 8,743,707 - - - - 8,743,707 Regional Planning: Salaries and employee benefits 392,970 - - - - 392,970 Services, supplies & capital outlay 591,052 - - - - 591,052 Congestion Management: Salaries and employee benefits 1,019,455 - - - - 1,019,455 Services, supplies & capital outlay 1,247,971 - - - - 1,247,971 Transportation Demand Management: Salaries and employee benefits - - - - 77,862 77,862 Contributions to other agencies - - - - 1,317,653 1,317,653 Transportation Planning Land Use Solutions: Salaries and employee benefits 72,532 - - - - 72,532 Services, supplies & capital outlay 18,016 - - - - 18,016 Debt service: Issuance costs - - - 381,212 - 381,212 Principal - - - 15,305,000 - 15,305,000 Interest and related fees - - - 18,893,091 - 18,893,091 Total Expenditures 101,720,939 17,097,815 3,128,390 34,579,303 5,299,260 161,825,707 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,878,133) - 2,810,407 (34,410,808) 1,397,461 (35,081,073)

Other Financing Sources (Uses) Bond proceeds - - - 83,570,000 - 83,570,000 Premium on Bonds Issued - - - 16,896,219 - 16,896,219 Transfer in 45,500,000 - - 29,385,153 - 74,885,153 Transfer out (29,385,153) - - (45,500,000) - (74,885,153) Total Other Financing Sources (Uses) 16,114,847 - - 84,351,372 - 100,466,219 Net Change in Fund Balances 11,236,714 - 2,810,407 49,940,564 1,397,461 65,385,146 Fund Balances - Beginning 95,815,896 - 17,161,561 65,983,713 8,567,813 187,528,983 Fund Balances - Ending 107,052,610$ -$ 19,971,968$ 115,924,277$ 9,965,274$ 252,914,129$

CONTRA COSTA TRANSPORTATION AUTHORITYGovernmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance


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Original Final Actual

Variance with Budget - Positive

(Negative)Revenues Sales tax 62,728,895$ 62,728,895$ 62,901,918$ 173,023$ Investment income 725,000 725,000 381,120 (343,880) Federal Surface Transportation Program (CMA) 978,000 1,002,000 926,596 (75,404) Federal Surface Transportation Program (PDA Invest./SCS) 1,500,000 2,264,000 2,075,519 (188,481) Federal Surface Transportation Program (Climate Change) 22,088 22,420 - (22,420) Federal Surface Transportation Program (Rideshare) 51,540 52,313 122,221 69,908 Federal Demo (East County Corridors) 873,918 310,000 261,946 (48,054) State Planning, Programming and Monitoring (PPM) 615,021 583,119 112,414 (470,705) State Funds - Planning - - 60,000 60,000 State Local Partnership Program (SR4/BART) 800,000 800,000 786,236 (13,764) State Transportation Improvement Program (I-80) 10,100,000 10,100,000 10,027,875 (72,125) Regional Measure 2 (Caldecott Tunnel Fourth Bore) 1,940,241 2,702,741 2,702,741 0 Regional Measure 2 (SR4 East Widening) 1,100,000 1,917,036 213,687 (1,703,349) Regional Measure 2 (I-80 Carpool Ln Ext) 650,000 669,068 428,895 (240,173) Regional Measure 2 (I-680 Carpool Ln Ext & Interchange Imp) 7,500,000 6,500,000 6,405,884 (94,116) Contributions from CMA member agencies 389,562 434,272 170,978 (263,294) Bay Area Toll Authority (East County Corridors) 625,000 1,640,000 1,897,701 257,701 Contra Costa County (East County Corridors) 218,479 147,500 70,431 (77,069) East Contra Costa Regional Fee and Financing Authority 365,000 2,500,000 2,515,540 15,540 City of Antioch (SR4 East Widening) - 515,000 606,138 91,138 City of San Pablo (I-80 Carpool Ln Ext & Interchange Imp) - 825,000 700,000 (125,000) Rental Income & Escrow Earnings (SR4 East) 120,000 3,437,119 3,474,966 37,847 Miscellaneous revenue 1,000 1,000 - (1,000) Total Revenues 91,303,744 99,876,483 96,842,806 (3,033,677)

Expenditures Current expenditures: Administration: Salaries and employee benefits 688,185 680,358 667,502 12,856 Services, supplies & capital outlay 1,375,600 1,495,600 1,326,545 169,055 Project Management: Salaries and employee benefits 1,709,118 1,621,301 1,565,683 55,618 Services, supplies & capital outlay 372,500 472,500 101,560 370,940 Programs: Additional paratransit 1,176,028 1,476,028 878,167 597,861 Bus transit enhancements 3,771,699 3,151,699 2,897,369 254,330 Express bus program 4,149,496 3,749,496 3,643,347 106,149 Bus transit and improvement program 4,743,600 4,343,600 4,257,369 86,231 Safe transportation for children 5,007,432 5,307,432 3,852,058 1,455,374 Transportation Projects: Capital Improvement Projects: Caldecott Tunnel Fourth Bore 3,342,685 5,317,496 1,316,912 4,000,584 BART - East CC Rail Extension 17,018,555 11,089,640 14,749,177 (3,659,537) SR4 East Widening (Refund on Deposit Caltrans) 5,046,300 4,861,926 777,736 4,084,190 Capitol Corridor Improvements 4,413,394 4,800,457 2,985,937 1,814,520 East County Corridor 29,361,804 23,103,219 19,775,413 3,327,806 Interchange Improvements on I680 & SR242 454,985 286,348 297,808 (11,460) I-80 Carpool Lane Extension & Improvements 14,195,775 14,745,348 15,522,016 (776,668) I-680 Carpool Lane Gap Closure & Corridor Imp 8,013,968 8,279,160 7,015,838 1,263,322 Richmond Parkway 881,237 825,991 288,576 537,415 Countywide Capital and Maintenance Projects: BART Parking, Access & Other Improvements 7,532,156 3,259,075 1,834,725 1,424,350 Transportation for Livable Communities 5,978,770 5,769,050 4,222,867 1,546,183 Pedestrian, Bicycle & Trail Facilities 2,361,744 2,383,420 1,658,631 724,789 Subregional Projects: Major Streets 9,012,758 8,782,684 7,676,130 1,106,554 Martinez Capitol Corridor Rail Station Imp 553,295 3,700 2,938 762 Subregional Transportation Needs 1,623,542 1,498,542 1,064,639 433,903 Regional Planning: Salaries and employee benefits 552,970 516,488 392,970 123,518 Services, supplies & capital outlay 1,065,500 821,150 591,052 230,098 Congestion Management: Salaries and employee benefits 1,158,954 1,210,114 1,019,455 190,659 Services, supplies & capital outlay 2,134,072 1,740,472 1,247,971 492,501 Transportation Planning Land Use Solutions: Salaries and employee benefits 75,685 78,538 72,532 6,006 Services, supplies & capital outlay 27,500 45,000 18,016 26,984 Total Expenditures 137,799,307 121,715,832 101,720,939 19,994,893 Excess (Deficiency) of Revenues Over (Under) Expenditures (46,495,563) (21,839,349) (4,878,133) (23,028,570)

Other Financing Sources (Uses) Transfer in 45,500,000 45,500,000 45,500,000 - Transfer out (34,479,200) (35,979,200) (29,385,153) 6,594,047 Total Other Financing Sources (Uses) 11,020,800 9,520,800 16,114,847 6,594,047

Net Change in Fund Balances (35,474,763)$ (12,318,549)$ 11,236,714 (16,434,523)$ Fund Balances - Beginning 95,815,896 Fund Balances - Ending 107,052,610$

Budget

CONTRA COSTA TRANSPORTATION AUTHORITYMeasure J General Fund

Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual


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(Negative)Revenues Sales tax 17,050,785$ 17,050,785$ 17,097,815$ 47,030$ Total Revenues 17,050,785 17,050,785 17,097,815 47,030

Expenditures Current expenditures: Programs: Local street and maintenance 15,276,960$ 15,276,960$ 15,319,098$ (42,138)$ Subregional Local street and maintenance 1,773,825 1,773,825 1,778,717 (4,892) Total Expenditures 17,050,785 17,050,785 17,097,815 (47,030)

Net Change in Fund Balances -$ -$ - -$ Fund Balances - Beginning - Fund Balances - Ending -$

Budget

CONTRA COSTA TRANSPORTATION AUTHORITYMeasure J Local Street & Roads Special Revenue Fund



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(Negative)Revenues Investment income 185,000$ 185,000$ 58,797$ (126,203)$ Town of Danville (I-680, TVTC) 5,880,000 5,880,000 5,880,000 - Escrow Earnings (SR4 East) 400,000 - - - Miscellaneous revenue 1,000 1,000 - (1,000) Total Revenues 6,466,000 6,066,000 5,938,797 (127,203)

Expenditures Current expenditures: Administration: Services, supplies & capital outlay (Ballot Measure) - 1,241,000 1,240,927 73 Transportation Projects: Highways and Arterials: I-680 Corridor 13,152,440 5,680,592 1,950,499 3,730,093 Route 4 East (Refund on Deposit Caltrans Design SR4/160) 1,000 1,000 (373,813) 374,813 Route 4 West 9,401 77,210 14,678 62,532 Major Arterials Southwest Region 175,000 175,000 175,000 - Transit: Contra Costa Regional Commuterway 102,500 20,000 121,099 (101,099) Regional Bicycle & Pedestrian 636,870 - - - Total Expenditures 14,077,211 7,194,802 3,128,390 4,066,412 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,611,211) (1,128,802) 2,810,407 3,939,209

Net Change in Fund Balances (7,611,211)$ (1,128,802)$ 2,810,407 3,939,209$ Fund Balances - Beginning 17,161,561 Fund Balances - Ending 19,971,968$

Budget

CONTRA COSTA TRANSPORTATION AUTHORITYMeasure C Special Revenue Fund



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Variance with Final Budget -

Positive (Negative)Revenues Investment income 35,000$ 35,000$ 168,495$ 133,495$ Total Revenues 35,000 35,000 168,495 133,495

Expenditures Debt service: Issuance costs - 574,861 381,212 193,649 Principal 15,305,000 15,305,000 15,305,000 - Interest and related fees 11,074,200 20,674,200 18,893,091 1,781,109 Total Expenditures 26,379,200 36,554,061 34,579,303 1,974,758 Excess (Deficiency) of Revenues Over (Under) Expenditures (26,344,200) (36,519,061) (34,410,808) 2,108,253

Other Financing Sources (Uses) Bond proceeds - 86,935,000 83,570,000 (3,365,000) Premium on Bonds Issued - 13,639,861 16,896,219 3,256,358 Transfer in 34,479,200 35,979,200 29,385,153 (6,594,047) Transfer out (45,500,000) (45,500,000) (45,500,000) - Total Other Financing Sources (Uses) (11,020,800) 91,054,061 84,351,372 (6,702,689)

Net Change in Fund Balances (37,365,000)$ 54,535,000$ 49,940,564 (4,594,436)$ Fund Balances - Beginning 65,983,713 Fund Balances - Ending 115,924,277$

Measure J Debt Service BondsBudget

CONTRA COSTA TRANSPORTATION AUTHORITYMeasure J Debt Service Funds



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Measure J Paratransit

Measure J Commute

Alternatives Air Quality

Total Non Major Special Revenue

FundsAssets Restricted cash and investments 6,896,721$ 861,530$ 1,194,485$ 8,952,736$ Receivables: Sales Tax 662,480 132,496 - 794,976 Intergovernmental - 31,375 817,369 848,744 Total Assets 7,559,201$ 1,025,401$ 2,011,854$ 10,596,456$

Liabilities and Fund Balances Liabilities Accounts payable 299,316$ 77,030$ 220,226$ 596,572$ Deferred Revenue - 31,374.52 - 31,375 Benefits payable 1,006 750 1,479 3,235 Total Liabilities 300,323 109,154 221,705 631,182

Fund Balances Restricted: Paratransit program 7,258,878 - - 7,258,878 Commute alternatives - 916,247 - 916,247 Air quality - - 1,790,149 1,790,149 Total Fund Balances 7,258,878 916,247 1,790,149 9,965,274 Total Liabilities and Fund Balances 7,559,201$ 1,025,401$ 2,011,854$ 10,596,456$

CONTRA COSTA TRANSPORTATION AUTHORITYNon-Major Special Revenue Funds

Combined Balance SheetJune 30, 2017

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Measure J Paratransit

Measure J Commute

Alternatives Air Quality

Total Non Major Special Revenue

FundsRevenues Sales tax 4,255,305$ 851,061$ -$ 5,106,366$ Investment income 21,370 - 5,270 26,640 Contribution - 6,467 - 6,467 State Motor Vehicle Registration Surcharge (TFCA) - - 1,557,247 1,557,247 Total Revenues 4,276,675 857,529 1,562,517 6,696,721

Expenditures Current expenditures: Programs: Commute alternatives - 593,865 - 593,865 Air Quality - - 1,395,515 1,395,515 Paratransit 3,309,880 - - 3,309,880 Total Expenditures 3,309,880 593,865 1,395,515 5,299,260 Excess (Deficiency) of Revenues Over (Under) Expenditures 966,795 263,663 167,002 1,397,461

Net Change in Fund Balances 966,795 263,663 167,002 1,397,461 Fund Balances - Beginning 6,292,083 652,584 1,623,146 8,567,813 Fund Balances - Ending 7,258,878$ 916,247$ 1,790,149$ 9,965,274$


Combined Statement of Revenues, Expenditures and Changes in Fund Balances


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Variance with Budget -

Positive (Negative) Original Final Actual


Positive (Negative)

Revenues Sales tax 4,243,600$ 4,243,600$ 4,255,305$ 11,705$ 848,720$ 848,720$ 851,061$ 2,341$ Investment income 40,000 40,000 21,370 (18,630) - - - - Federal Congestion Mitigation (CMAQ) - - - - 70,000 70,000 - (70,000) Contribution - - - - - - 6,467 6,467 State Motor Vehicle Registration Surcharge (TFCA) - - - - - - - - Total Revenues 4,283,600 4,283,600 4,276,675 (6,925) 918,720 918,720 857,529 (61,191)

Expenditures Current expenditures: Programs: Commute alternatives - - - - 1,018,720 1,018,720 593,865 424,855 Air Quality - - - - - - - - Paratransit 4,036,179 3,633,037 3,309,880 323,157 - - - - Total Expenditures 4,036,179 3,633,037 3,309,880 323,157 1,018,720 1,018,720 593,865 424,855

Excess (Deficiency) of Revenues Over (Under) Expenditures 247,421 650,563 966,795 316,232 (100,000) (100,000) 263,663 363,663

Net Change in Fund Balances 247,421$ 650,563$ 966,795 316,232$ (100,000)$ (100,000)$ 263,663 363,663$ Fund Balances - Beginning 6,292,083 652,584 Fund Balances - Ending 7,258,878$ 916,247$

Measure J Paratransit Measure J Commute Alternatives Budget Budget


Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual


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Revenues Sales tax Investment income Federal Congestion Mitigation (CMAQ) Contribution State Motor Vehicle Registration Surcharge (TFCA)Total Revenues

Expenditures Current expenditures: Programs: Commute alternatives Air Quality ParatransitTotal Expenditures

Excess (Deficiency) of Revenues Over (Under) Expenditures

Net Change in Fund Balances

Fund Balances - BeginningFund Balances - Ending



Positive (Negative) Original Final Actual

Variance with Final Budget - Positive

(Negative)

-$ -$ -$ -$ 5,092,320$ 5,092,320$ 5,106,366$ 14,046$ 10,000 10,000 5,270 (4,730) 50,000 50,000 26,640 (23,360)

- - - - 70,000 70,000 - (70,000) - - - - - - 6,467 6,467

1,461,066 1,461,066 1,557,247 96,181 1,461,066 1,461,066 1,557,247 96,181 1,471,066 1,471,066 1,562,517 91,451 6,673,386 6,673,386 6,696,721 23,335

- - - - 1,018,720 1,018,720 593,865 424,855 1,477,915 1,481,461 1,395,515 85,946 1,477,915 1,481,461 1,395,515 85,946

- - - - 4,036,179 3,633,037 3,309,880 323,157 1,477,915 1,481,461 1,395,515 85,946 6,532,814 6,133,218 5,299,260 833,958

(6,849) (10,395) 167,002 177,397 140,572 540,168 1,397,461 857,293

(6,849)$ (10,395)$ 167,002 177,397$ 140,572$ 540,168$ 1,397,461 857,293$ 1,623,146 8,567,813 1,790,149$ 9,965,274$

Air Quality Total Non Major Special Revenue FundsBudget Budget

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The format of the Internal Accounting Report is similar to the audited financial statements at the Government-wide level.The report does not include the GASB 34 conversion adjustments done at year-end and therefore still show a GeneralFixed Asset Fund and General Long Term Debt Fund.

MEASURE J SPECIAL REVENUE FUNDS PROCEDURES

Streets and Roads

The budget and actual expenditures are based on 18 percent and 2.09 percent of sales tax revenues for thecurrent fiscal year for local streets and roads and subregional local streets and roads. For fiscal year 2017the amounts for the respective programs for the first six months amounts to $15,319,098 and $1,778,717.

Paratransit

The program is to receive 5 percent of revenues over the life of Measure J on a sliding scale from 2.97 percent in the first year to 5.9 percent in the final year.

Commute Alternatives

Operating transfers to the Commute Alternatives program were based on 1 percent of the salestax revenues.

MEASURE J DEBT SERVICE FUNDS

$561.5 million Sales Tax Revenue Bonds

On December 18, 2012, the Authority issued $390.220 million in Sales Tax Revenue Bonds to finance Measure Jprojects and retire the $200.990 million 2010 Sales Tax Revenue Bonds. 2012B Bonds received a premium in the amount of $37.2 million and is amortized over the life of the bond.

On October 15, 2015, the Authority issued $166.640 million in Sales Tax Revenue Bonds to finance Measure Jprojects and retire $84.470 million of the 2012B Sales Tax Revenue Bonds. 2015A Bonds received a premium in the amount of $32.1 million and is amortized over the life of the bond.

On December 15, 2015, the Authority completed the remarketing (direct sale) of the 2012A Bonds to State Street Bankin the amount of $201.450 million.

On June 1, 2017, the Authority issued $83.570 million in Sales Tax Revenue Bonds to finance Measure Jprojects. 2017A Bonds received a premium in the amount of $16.896 million and is amortized over the life of the bond.

Balance Additions / BalanceJuly 1, 2016 (Payments) June 30, 2017

Bonds 2012B Sales Tax Revenue Bonds 67,885$ (12,925)$ 54,960$ 2012B Bond Premium 12,499 (2,414) 10,085 2015A Sales Tax Revenue Bonds 166,640 (2,380) 164,260 2015B Bond Premium 31,671 (1,324) 30,347 2017A Sales Tax Revenue Bonds 83,570 - 83,570 2017B Bond Premium 16,896 (84) 16,812 Remarket 2012A Bonds (State Street) 201,450 - 201,450 Total Bonds 580,611$ (19,126)$ 561,485$

SWAP FAIR VALUE

($43) million Fair Value of Swap

The fair value of the swap at June 30, 2017 was ($43.134) million. An increase of $19.1 million since June 30, 2016

DEPOSIT

$149 thousand City of Antioch

City of Antioch contributed $1.306 million to the Authority for the Hillcrest Overcrossing (Segment 3B) project duringfiscal year 2011-12. The deposit balance at June 30, 2017 was $149,000.

CONTRA COSTA TRANSPORTATION AUTHORITYNotes to Internal Accounting ReportFor the Year Ended June 30, 2017

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The format of the Internal Accounting Report is similar to the audited financial statements at the Government-wide level.The report does not include the GASB 34 conversion adjustments done at year-end and therefore still show a GeneralFixed Asset Fund and General Long Term Debt Fund.

CONTRA COSTA TRANSPORTATION AUTHORITYNotes to Internal Accounting ReportFor the Year Ended June 30, 2017

FUNDS

Measure C Fund Balance

The Authority approved the 2011 Strategic Plan update (12-02-P) which includes a reserve policy (Sec. 9.5) for $6.000 million. Therefore fund balance is detailed below:

Measure C Fund Balance Fund Balance AmountTransportation projects 16,715,165$

Total Transportation projects Restricted 16,715,165 Reserve (A) Restricted 3,256,803

Total Measure C Fund Balance 19,971,968$

(A) For financial statement presentation, GASB54 defines restricted fund balance as those approved by ordinance in the Measure C Expenditure Plan. The reserve was approved by resolution in the 2011 Strategic Plan and therefore included as part of Transportation projects restricted fund balance.May 20, 2015, the Authority approved Resolution 15-17-A, authorizing a lump sum payment ($2,210,110) to pay-off the unfunded actuarial liability. Future unallocated interest earnings will replenish the reserve. Fiscal Year 2016-17 recognized an expenditure of $1.241 million related to the placement of Measure X on the ballot in November of 2016.

TRANSFERS

The purpose of the majority of transfers is debt service or programmatic transfers as approved in the Measure J.

Fund Receiving Transfer Fund Making Transfer Purpose AmountGeneral Fund 2015 Debt Service (A) 45,500,000 Debt Service Funds: 2012B Debt Service Fund General Fund (B) 16,170,500 2015A Debt Service Fund General Fund (B) 5,395,762 2015 Debt (State Street) General Fund (B) 7,818,891

74,885,153$

Purpose of Transfers:(A) Transfers bond proceeds to Measure J for project costs.

(B) Transfer sales tax revenues for debt service.

2.A.4-24

Documents

Contra Costa Transportation Authority STAFF REPORT