Comprehensive Annual Financial Report - Metro Transit

Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictNotes to Financial StatementsJune 30, 2011 and 2010as operating assistance, and the corresponding expense is recorded as a contribution tooutside entities in the statement of revenues and expenses of Metro.Additionally, a 1/4 cent sales tax Prop M was established. This tax is restricted to masstransit use and is forwarded to Metro based upon annual appropriations from the City ofSt. Louis and St. Louis County.St. Louis County voters passed Prop A ½ Cent Sales Tax in April 2010. Passage of thistax triggered collection of a ¼ Cent Prop M2 Sales Tax passed by the City of St. Louisvoters in 1997. Metro began receiving appropriated ½ cent from St. Louis County Prop Aand a ¼ cent from the City of St. Louis Prop M2. Both are restricted for mass transit use.The Agency has restricted a total of $13,758,415 and $13,836,415 in 2011 and 2010,respectively, of previously unrestricted sales tax operating assistance, which is recordedin the restricted Sales Tax Capital Account. These restricted funds will be used for thepurchase or construction of new transportation equipment or facilities.Temporary advances for operating purposes are allowed from the restricted Sales TaxCapital fund, to be repaid when Federal, state or local operating assistance is received.Advances allowed for environmental clean-up activities for non-operating properties areto be repaid from the proceeds from the sale of the non-operating assets.Illinois CountiesMetro contracts with the St. Clair County Transit District to provide public masstransportation services for the Illinois Counties of St. Clair and Monroe. The contractspecifies the amount of services to be provided, and the method of reimbursement foroperating costs associated with the services provided in these counties.Operating DeficitsMetro has experienced losses before depreciation and capital contributions since 2005.Metro’s ability to fund the costs of continued operations is dependent upon thecooperation and operating assistance from other governments. While resources exist tomeet Metro’s present obligations, revenues from operations alone are not adequate tomeet the expenses of continuing operations without such assistance.54