1. Financial Report through Q1 FY 2015 February 23, 2015
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2. Major Highlights Revenue Operating Expenses Sales Tax
Q1 FY 2015
Revenue
Sales Tax
$3.2 million over year-to-date budget projections, or 6.3 percent
9.3 percent growth over prior year-to-date actual revenue
Operating Revenue
Third party fare revenue is trending favorably due to better than expected participation in fixed route and express bus services used by University of Texas faculty, staff, and students.
Operating Expenses
9.8 percent under budget
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3. Cash, Investments and Reserves
Q1 FY 2015
Cash & Investments
Cash and cash equivalents
$120.7m
Short-term investments
$ m
Total
$130.6m
Note:
Funds for future capital investment will be required to help address extensive capital needs beyond 2015 that are identified in Capital Metro’s long-range financial forecast.
These investments are needed to maintain the community’s transit infrastructure in a state of good repair.
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4. FY 2015 Budgeted and Actual Sales Tax Revenue
Q1 FY 2015
FY 2015 Budgeted and Actual Sales Tax Revenue
YTD Budget
$50.8m
YTD Current
$54.0m
YTD Prior
$49.5m
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5. Operating and Grant Revenue
Q1 FY 2015
Fare revenue includes passenger fares and third party fares. Third party fare revenue is trending favorably due to better than expected participation in fixed route and express bus services used by University of Texas faculty, staff, and students.
Operating grant revenue is higher than anticipated based on year-to-date eligible purchased transportation costs.
Capital grants are recognized on an accrual basis. Grant revenue will begin to be recognized during the remainder of FY2015 as eligible expenses are processed beginning in January.
Other revenue is slightly below budget. A contractor's gym fee was anticipated in December and it was received in January.
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6. Operating Expenses Q1 FY 2015 capmetro.org | Finance
Salaries and benefits are slightly under budget due to vacancies. As of December 31, there were 33 unfilled positions.
Professional services are below budget in several areas, including consulting services.
Fuel and fluids are below budget primarily due to the price of diesel.
Capital Metro contracts with a third party advisor to help manage fuel pricing risk over time through the use of futures contracts. These programs are designed to reduce fuel cost volatility and are commonly referred to as fuel hedging.
Capital Metro budgeted $3.50 per gallon for diesel in the FY2015 budget.
The average cost of diesel purchased during FY2015 was $2.48 per gallon.
The average cost of diesel, net of hedging transactions, was $2.96 per gallon.
Diesel usage during December was lower than budget projections.
388,000 gallons were consumed compared to budgeted gallons of 444,000.
Purchased fixed route services billed for October are above budget by $295,000 due to repairs of buses transitioned from Veolia to McDonald and First Transit. In anticipation of these repairs, a liability was established on the balance sheet in the amount of $766,000 to be used to offset the additional repair costs. The correcting entry to record $377,000 in repairs against the liability account should be reflected in January's financial statements and will reduce purchased transportation expenses.
Other expenses are below budget, primarily in the insurance category. The insurance premium for rail was paid in December, but was recorded as a prepaid expense on the balance sheet. This expenditure will be transferred to the Risk Department in January and applied against the operating budget.
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7. Questions/Discussion
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