Financial Report through Q4 FY2014 Preliminary Year-end Results December 3, 2014

Summary of Revenue and Expense Variances Revenue Total operating revenue is 0.9 percent above budget Sales tax is 6.4 percent above budget on a cash basis. Expenses 5.8 percent under budget Unrestricted Cash Balance $107,887,448 2 As of Q4 FY2014

Sales Tax Trend - FY2014 Budget vs FY2014 Actual (Millions) 3 As of Q4 FY2014 Year-to-date Sales Tax of $193.9 million (cash basis) exceeded budget by 6.4% or $11.7 million.

Sales Tax Trend - FY2013 vs FY2014 (Actual Revenue in Millions ) 4 As of Q4 FY2014 Year-to-date Sales Tax of $193.9 million (cash basis) exceeded prior year revenue by 8.3% or $14.9 million.

Operating and Grant Revenue 5 As of Q4 FY2014 Fare revenue is above budget due to fare increases that became effective in January This increased revenue serves to offset lower third party fare revenue than anticipated in the budget due to UT service reductions and lower enrollment than anticipated in the budget. Operating Grants revenue is expected to be on target when the last grant drawdown for fiscal year 2014 has been posted. Capital Grants revenue is below budget due to several factors. o The MetroRapid project was completed under budget and staff is working with the Federal Transit Administration (FTA) to explore opportunities to allocate remaining funds for additional stations and vehicles. The potential reallocation of planning funds originally designated for urban rail will also be proposed to the FTA in the future. o Other Capital Grants revenue that was budgeted in 2014 is expected to be received in 2015 when the associated expenditures are made. These expenditures include new paratransit vehicles currently on order and the planned Saltillo track relocation.

Operating Expenses Compared to Budget 6 As of Q4 FY2014 Salaries and benefits are below budget due to vacancies throughout the year. As of September 30, there were 28 unfilled positions. Professional services are below budget in several areas, including consulting services and rebranding of buses. Additionally, contingency funding related to the new MetroRapid service was not needed. Fuels and fluids are below budget primarily due to diesel fuel pricing. Management budgeted $3.50 per gallon for FY2014. September year-to-date diesel fuel prices averaged $3.00 per gallon. August's year-to-date diesel fuel prices averaged $3.02 per gallon. Purchased Transportation is below budget due to a variety of factors. Effective quality monitoring and lower than budget overflow trips in paratransit services has resulted in a favorable variance of $1,463,638. The budget for commuter rail services reflects more funding than needed for weekday service operations, resulting in savings to date of $649,312. Other expenses are below budget in several categories, including self-insured claims, trade agreements, utilities and lease agreements.