Comprehensive Annual Financial Report for the ... - WMATA.com

Washington Metropolitan Area Transit AuthorityFY 2009 Comprehensive Annual Financial ReportManagement's Discussion and AnalysisStatements of Revenues, Expenses, and Changes in Net Assets (Continued)Expenses (Continued)Prior YearTotal expenses increased by $187.6 million or 11.0 percent to $1.9 billion in fiscal year 2008 as comparedto $1.7 billion for fiscal year 2007. A review of significant changes in operating expenses is describedbelow.Salaries and benefits increased by $111.1 million or 12.7 percent. Salaries and benefits were driven byincreased workers compensation claims, pension plan contributions, including a prepaid pension costadjustment, and an increase in OPEB as a result of the adoption of GASB Statement 45.Services increased by $25.9 million or 22.0 percent. Service expenses were $143.8 million as compared tofiscal year 2007 with costs of $117.9 million. The increase in costs was primarily driven by the increasedusage of MetroAccess and transportation consultation services.Materials and supplies increased by $3.9 million or 2.7 percent. The largest rise in expenses for materialsand supplies can be attributed to purchases of bus tires and write-offs of obsolete inventory. Additionally,increased outlays for pc equipment, propulsion parts and brake parts also helped drive expenses.Utilities increased by $12.4 million or 17.2 percent, due to increased propulsion usage to operate eight-carpassenger trains and higher natural gas costs.Capital Assets and Debt AdministrationThe following table shows the capital assets of the Authority:Table 3Schedules of Capital AssetsJune 30, 2009, 2008 and 2007(in thousands)2009 2008 2007Land $ 447,314 $ 448,586 $ 431,291Buildings and improvements 644,753 611,867 453,633Transit facilities 7,463,111 7,365,743 7,431,297Revenue vehicles 2,347,628 2,212,266 1,933,396Other equipment 1,985,175 1,832,165 1,296,290Construction in progress 168,965 262,685 830,855Intangible costs 1,199,067 1,199,067 1,157,21714,256,013 13,932,379 13,533,979Less accumulated depreciationand amortization 6,148,553 5,739,159 5,340,206Net capital assets $ 8,107,460 $ 8,193,220 $ 8,193,77318