2010 Component Unit Financial Statements - Regional ...

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The RTC debt management policy stipulates that the debt service coverage ratio must be greater than or equal to 150%, which is calculated by dividing net pledged revenue by the maximum annual debt service, with which we believe that the RTC is in compliance. The RTC utilizes commercial paper notes as an interim financing tool to meet the needs of the street and highway programs funded by motor vehicle fuel tax and a portion of the sales and excise tax. During the year ended June 30, 2010 the RTC refunded $53 million of motor vehicle fuel tax commercial paper notes and $67.4 million of sales and excise tax commercial paper notes with 20 year bonds. At June 30, 2010 the outstanding commercial paper consisted of $32.6 million due from the sales and excise tax program and $27 million due from the motor vehicle fuel tax program. It is the RTC's intention to take out a portion of the commercial paper in permanent bonds and pay the remainder over the next 3 years from the related tax revenues. PUBLIC TRANSIT STATISTICS The RTC coordinates transportation programs and services for the safe, convenient, and effective movement of people and goods within southern Nevada. As part of this mission, the RTC operates a fixed route bus service and a paratransit service in southern Nevada. The Americans with Disabilities Act of 1990 requires all fixed route bus service operators to provide a comparable paratransit service for the elderly and disabled. 2010 2009 2008 2007 Ridership - fixed route 56,056,979 63,424,642 64,765,634 62,321,216 % increase (decrease) (11.6%) (2.1%) 3.9% 4.90% Ridership - paratransit 1,027,715 1,023,470 967,829 890,125 % increase 0.4% 5.7% 8.7% 9.2% The decline in ridership for fiscal years 2009 and 2010 can be attributed to the general economic decline nationally and specifically in southern Nevada, and also due to 2 fare increases that could have had a negative impact on demand. BUDGET The Regional Transportation Commission Fund is the general operating fund of the RTC. The fiscal year 2010 budget was not amended. After the development of the fiscal year 2010 budget the RTC and the State of Nevada, Department of Transportation finalized a new agreement that provided an additional one million dollars of reimbursement for RTC expenses related to the Freeway and Arterial System of Transportation (FAST). In the past, this agreement provided approximately one million dollars of reimbursement from the State annually. RTC expended the entire two million dollars in fiscal year 2010 for FAST and has been reimbursed by the State. Due to the current economic recession, management has made a concerted effort to cut costs. For fiscal year 2010 the RTC and the Service Employees International Union, SEIU Local 1107, agreed to a zero percent cost of living adjustment (COLA). In addition to this, as employees terminated their employment, management left several positions vacant instead of filling them. As a result of these actions, salaries, wages and benefits were under budget by approximately 6% or $0.6 million. 9
In addition to the savings in salaries, wages and benefits, services and supplies were under budget by 24% or $3.3 million. Total savings from cost cutting efforts in the Regional Transportation Commission fund were over $4 million, and made it possible to cut transfers from other funds by approximately $3.9 million. Management continues its effort to reduce costs in order to enhance efficiency in providing transit services and fund streets and highways projects. CREDIT RATINGS NRS 373.130 mandates that Clark County must issue all revenue bonds on behalf of the RTC. The bond rating at June 30, 2010 for the Clark County, Nevada Highway Revenue (Motor Vehicle Fuel Tax) Improvement and Refunding Bonds from Moody’s Investors Service, Inc. was A1, and the rating from Standard & Poor’s Rating Service was AA-. The bond rating at June 30, 2010 for the Clark County, Nevada Sales and Excise Tax Revenue (Street and Highway Projects) Refunding Bonds from Moody’s Investors Service, Inc. was Aa2, and the rating from Standard & Poor’s Rating Service was AA. Both the Sales Tax Revenue Commercial Paper Notes and the Highway Revenue (Motor Vehicle Fuel Tax) Commercial Paper Notes were rated “NR” by Moody’s and “A-1+” by Standard & Poor’s. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the RTC’s finances for all those interested. Questions concerning any of the information provided in this report or requests for additional information should be addressed in writing to Marc Traasdahl, Director of Finance, Regional Transportation Commission of Southern Nevada, 600 South Grand Central Parkway, Suite 350, Las Vegas, NV 89106-4512 or by e-mail to Traasdahlm@rtcsnv.com. 10
Page 1 and 2: R E G I O N A L T R A N S P O R T A
Page 3 and 4: REGIONAL TRANSPORTATION COMMISSION
Page 5 and 6: R E G I O N A L T R A N S P O R T A
Page 8 and 9: MANAGEMENT’S DISCUSSION AND ANALY
Page 10 and 11: Restricted net assets are comprised
Page 12 and 13: REVENUES The following chart shows
Page 16 and 17: BASIC FINANCIAL STATEMENTS
Page 64 and 65:
REGIONAL TRANSPORTATION COMMISSION
Page 66:
REGIONAL TRANSPORTATION COMMISSION
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2010 Component Unit Financial Statements - Regional ...

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