Comprehensive Annual Financial Report - Metro Transit

Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictManagement’s Discussion and AnalysisJune 30, 2011 and 2010The following represents the Management Discussion and Analysis (“MD&A”) of the financialactivities and performance of the Bi-State Development Agency (“Metro”). The MD&Aprovides the reader with an introduction and overview to the basic financial statements ofMetro for the fiscal years ended June 30, 2011 and 2010. The information contained in thisMD&A should be considered in conjunction with the information contained in the letter oftransmittal found in the introductory section.Following this MD&A are the financial statements of Metro together with the notes andcombining financial schedules that are essential to providing a full understanding of Metro’sfinancial performance.FINANCIAL HIGHLIGHTSKey financial highlights for 2011 are as follows:• Total assets decreased $95.4 million or 6.3% from fiscal year 2010.• Metro's total assets exceeded liabilities (net assets) by nearly $ 658.6 million as of June 30,2011, $70.7 million of which are unrestricted net assets and are available to meet Metro'songoing obligations.• Total net assets decreased $33.9 million, or 4.9% from the prior year.• Total operating revenues increased $1.3 million, or 2.1% from the prior year.• Total operating expenses increased $16.9 million, or 5.8% from the prior year.• Total non-operating revenues increased $10.2 million, or 5.4% from the prior year.• Total non-operating expenses decreased $15.3 million, or 32.7% from the prior year.• Capital contributions consist of Federal, State of Illinois, and local capital contributionstotaling $44.3 million for fiscal 2011, representing an increase of $17.5 million, or 65.3%from prior year.Key financial highlights for 2010 were as follows:••Total assets decreased $232.6 million or 13.3 percent from fiscal year 2009.Metro’s total assets exceeded liabilities (net assets) by nearly $692.6 million as of June30, 2010, $82.4 million of which are unrestricted net assets and are available to meetMetro’s ongoing obligations.• Total net assets decreased $61.4 million, or down 8.1 percent from the prior year.• Total operating revenues decreased $2.1 million or 3.4 percent.• Total operating expenses decreased $9.3 million or 3.1 percent.• Total nonoperating revenues decreased $14.6 million or 7.2 percent.• Total nonoperating expenses increased by $7.3 million or 13.5 percent.• Capital contributions consist of Federal, State of Illinois, and local capital contributionstotaling $26.8 million for fiscal 2010, representing a decrease of $1.8 million or 6.2 percentdecrease from 2009.3