Notice and Agenda of a Meeting of the Finance and Audit Committee of the METRO Board of Directors

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1 FINANCE and AUDIT Thomas C. Lambert President & CEO COMMITTEE MEMBERS Cindy Siegel, Chair Lisa Castañeda Terry Morales Sanjay Ramabhadran Troi Taylor Notice and Agenda of a Meeting of the Finance and Audit Committee of the METRO Board of Directors Metropolitan Transit Authority of Harris County, Texas Lee P. Brown METRO Administration Building 1900 Main Street, 2 nd Floor Board Room, Houston, TX Tuesday, September 18, 2018 at 1:30 p.m. ACTIONS 1. Request Board approval to accept the monthly committee reports, including the investment report A. Smiley 2. Request Board approval of the proposed FY2019 FY2020 Financing Plan G. Fotinos 3. Request Board approval of the proposed FY2019 Business Plan & Budgets P. Brenner COMMITTEE APPROVAL 4. Request approval of the proposed FY2019 Internal Audit Work Plan J. Garcia BRIEFINGS 5. Monthly Compliance Report J. Garcia 6. Monthly Financial Reports A. Smiley a. CFO Presentation b. Sales Tax Report c. Investment Report d. Debt Report e. Monthly Performance Report 7. Fixed Route Ridership and Fare Revenue Year over Year Comparison (June 2017 to June 2018) J. Fernandez & J. Archer ACCESSIBILITY AND SPECIAL ACCOMMODATIONS METRO s meetings are held in a facility accessible to persons with disabilities. Request for accommodations should be directed to the Board Office at at least 48 hours in advance of the meeting. SECURITY Individuals attending this meeting will be subject to being scanned with a security wand and/or metal detector walk through. You and your property are subject to being searched.

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5 Request for Board Action Finance & Audit Committee September 2018

6 FY2019 FY2020 Buses $45,277,000 $42,317,000 Small Equipment (includes Farebox Equipment) $11,652,000 $18,702,000 Light Rail Vehicles $22,052,000 Total Planned Expenditure: $140MM 2

7 METRO plans to fund these expenditures utilizing 100% contractual obligation financing Proceeds from the financing will be placed in METRO s Construction Fund Funds will be used ( drawn down ) as the various buses, light rail vehicles, and small equipment are purchased and/or delivered 3

8 45' Commuter Bus Small Equipment Financing (in $1,000 s) Light Rail Vehicles (LRV's) (H4) 40' Transit Buses (CNG) 60' Bus Rapid Transit (BRT) Articulated Buses 40' Transit Buses (Diesel) Quantity: 104 Quantity: 14 Quantity: 20 Quantity: 14 Quantity: 35 FY2019 Oct-18 $ 27,922 $ 11,652 Nov-18 $ 12,000 Jan-19 $ 5,425 May-19 $ 7,000 Jul-19 $ 5,965 Aug-19 $ 5,965 Sep-19 $ 3,052 FY2020 Oct-19 $ 18,702 Jul-20 $ 12,568 $ 8,590.5 Aug-20 $ 12,568 $ 8,590.5 Total $ 53,058 $ 30,354 $ 22,052 $ 5,425 $ 11,930 $ 17,181 Total Drawdown: $140MM 4

9 FY2019 FY2020 Total Drawdown: $140MM 5

10 METRO s financial advisor, Public Financial Management (PFM), has presented the case that one financing in FY2019 will be less expensive than a financing in both FY2019 and FY2020: Overall debt service will be less expensive Estimated Net Present Value savings: $ 733,500 Cost of Issuance will be less expensive Estimated savings resulting from only having one issuance in FY2019: $ 235,000 6

11 METRO s Required Maximum Annual Debt Service Coverage ratio is x2.00 METRO s Projected Maximum Annual Debt Service Coverage ratio will be estimated at x5.01 7

12 Date Oct 11 Oct 24 Oct 24 Oct 29 Nov 2 Nov 6 7 Nov 14 Nov 15 Dec 10 Dec 11 Activity First draft transaction documents First draft financing structure Second draft transaction documents Second draft financing documents Distribute documents to rating agency Respond to rating agency questions Due diligence call receive rating Pricing / Sign bond purchase agreement File documents for Attorney General approval Pre-close Close 8

13 Request Board adoption of a resolution for the issuance of: Up to $45 million of KOs to finance the purchase of: commuter buses CNG transit buses (local portion) Bus Rapid Transit (BRT) articulated buses Up to $11.6 million of KOs to finance the purchase of small equipment 9

14 Request Board adoption of a resolution for the issuance of: Up to $22 million of KOs to finance the purchase of 14 light rail vehicles (local portion) Up to $40.9 million of KOs to finance the purchase of: commuter buses (scheduled in FY2019) transit diesel buses (scheduled in FY2019) Up to $18.4 million of KOs to finance the purchase of small equipment (scheduled in FY2019) 10

15 Request Board adoption of a resolution to: Appoint Orrick, Herrington & Sutcliffe LLP and Powell & Leon, LLP as Co-Bond Counsels, and West & Associates, LLP as Disclosure Counsel Appoint underwriters: J.P. Morgan Securities L.L.C. as Senior Manager, Estrada Hinojosa & Company, Inc. as Co-Senior Manager, and Stern Brothers and Hutchinson Shockey Early & Company and as Co-Managers Authorize the Preliminary Offering Statement (POS) Appoint Arthur C. Smiley III, Chief Financial Officer, as authorized representative to act on behalf of the Board and approve the required legal documents 11

16 REQUEST FOR BOARD ACTION SUBJECT: PAGE: AGENDA ITEM#: Approval of the FY2019 Business Plan & Budgets ORIGINATION DATE: AGENDA MONTH: 8/24/18 September 2018 FROM (Department or other point of origin): DATE AND IDENTIFICATION OF PRIOR Finance AUTHORIZING ACTION: ORIGIN A TOR: May Resolution (2019 Financial Parameters) Philip M. Brenner RECOMMENDATION: (Agenda Summary) The Board is requested to approve the FY2019 Business Plan & Budgets in the amounts shown below. I I AW ARD AMOUNT: Contract will be for a not-to-exceed amount of: $1,196,356, (Base Contract) Estimated to be approved in future budgets Grant Previous FY Budgeted Budgeted Dept. FY2020 Out Years Funding Expenditures FY2019 Total Source Name YIN Budgeted# Months D Budgeted# Months D] Budgeted# Months D Budgeted# Months D Operating No 626,210, ,210, Capital No 285,967, ,967, General Mobility No 180,008, ,008, Debt Service No 104,171, ,171, TOTAL ,196,356, q 00, 196,356, BUDGET NOTES: Funding r., Mm periods (;f any) will b, ;""" ;n /4;z ~ SPECIFIC EXPLANATION: / I"' ---v \ I in ~ ffi "er: l> rv ;t-a Texas Transportation Code requires the METRO Board to adopt an annual Operating budget before the begi 1 ning of 1e fis1 al year. This action requests that the Board approve the FY2019 annual budgets for the following expenditures: Operating Budget - $626,210,000 Capital Budget - $285,967,000 General Mobility Transfer Payments - $180,008,000 Debt Service Budget - $104,171,000 SMALL BUSINESS PARTICIPATION {to be come.feted b'f. Small Business): The Small Business Program does not apply to this issue. Small Business Approva~-- Ir/ L~ I,- REQUIRED AUTHORIZATION Dept. Head / Ex cutif res dent: ~I,.,"'(J - f\. ~ V"\ ~/ ~ Signature l" JV Signatl re Coordination to Con plete Ac ion: r CbWJ'J;;JP4::."_ Signature Deputy CEO: President & CEO: ~ Administration. ~~ Planning, Engineering & Construction Government & Public Affatif} Legal Public Safety, Cust Svc & Ops Signature

17 Finance & Audit Committee Meeting September 18, 2018

18 Operating Budget $ million Capital Budget million General Mobility Program (GMP) Transfer million Debt Service million Total $ 1.2 billion 2

19 FY2019 Business Plan Goals Attaining Universal Accessibility Investing in Enhanced Safety Improving Security Maintaining a State of Good Repair Improving the Customer Experience Planning for the Future Marketing our Service 3

20 Universal Accessibility Initiatives focus on ADA compliance and enhancing our customers ability to access METRO service. 4

21 Safety Initiatives reduce accidents and incidents for both our patrons and for employees. 5

22 Security Initiatives help reduce crime on METRO vehicles and at METRO facilities. 6

23 State of Good Repair Initiatives extend the life of METRO s capital assets, including revenue vehicles and public facilities. 7

24 Customer Experience Initiatives focus on providing quality service and amenities to our riders. 8

25 Planning Initiatives focus on investments which will allow METRO to position itself for future growth and changes in the region. 9

26 Marketing Initiatives focus on providing information and education about METRO and the services we provide in order to increase awareness and ridership. 10

27 FY2018 FY2019 $217.7 million $286.0 million 31.4% increase over FY

28 FY2019 (in millions) $192.6 million Non-Bus Acquisition Examples FY19 Budget Local Grant Bus Stop Accessibility and $ 4.6 $ 4.6 $ - Site Improvement Program Traffic Signal Arms at Main & Pease and Main & Jefferson $ 2.7 $ 2.7 $ - Red Line Pedestrian Signals to $ 1.4 $ 1.4 $ - Audible Northwest Transit Center $ 17.9 $12.2 $ 5.7 Reconfiguration & Parking Expansion Magnolia Transit Center $ 3.7 $ 1.0 $ 2.7 Expansion R ail Tie Overhauls $ 3.9 $ 3.9 $ - Engine & Transmission $ 4.9 $ 4.9 $ - Assemblies P&R R eimagining/max Lanes $ 9.8 $ 9.8 $ - BOOST Corridors $ 3.5 $ 3.5 $ - Bus GPS R outer R eplacement $ 3.1 $ 3.1 $ - West Bellfort P&R $ 1.7 $ 1.3 $ 0.4 US 290 Cypress L-Ramp $ 9.6 $ 2.5 $ 7.1 North Post Oak Lane $ 6.2 $ 1.2 $ 5.0 Configuration METR ONext Project $ 5.8 $ 5.8 $ - (in millions) 12

29 2019 Proposed Operating Budget: $626.2 million FY2018 Operating Budget $ Budget $ (29.9) Adjustments for onetime expenditures $ Million - Adjusted Base Parameter FY2019 Proposed Operating Budget $ Million BASE 2.034% (blended) Controlled by President & CEO $ 3.3 Long Range Plan (LRP) Development $ 1.4 Draft LRP Public Outreach $ 4.6 Final LRP Public Engagement & Education $ 3.4 Bond Referendum Education $ 1.9 Legal Expenses $ 1.0 Allowance: Real Estate Fund Investments $ 2.6 Allowance: New Service/Uptown BRT $ 0.3 Allowance: Autonomous Vehicle Pilot $ 4.2 Targeted Investments $ 1.3 Rail Safety Program $ Million 13

30 FY2018 FY

31 FY2018 FY

32 Total FY2019 Proposed Workforce: 4,275 FY2018 Authorized Workforce 4,229 FY2019 Proposed Workforce 4,275 Increased Service Safety & Security Targeted Investments 16

33 Description Approved FY2018 Budget Proposed FY2019 Budget Change Dollars Percent Operating Budget $ $ $ % Capital Budget % GMP Transfer % Debt Service % Total $ 1,111.6 $ 1,196.4 $ % (in millions) 17

34 September 18 Finance & Audit Committee September 19 Public Hearing FY2019 Budgets September 27 Board Approval of Budgets 18

35 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: AGENDA MONTH: DEPARTMENT: PRESENTER: SUMMARY:

36 FY2019 Proposed Audit Work Plan & Audit Department Highlights

37 FY19 Proposed Audit Plan based on Annual Risk Assessment Risk Assessment based on 5 variables assigned a risk score of 1-3 each (1=Low, 2=Med, 3=High) based on cumulative audit knowledge and experience. Audit Universe Risk Assessment Risk Map 16 Total Organizational Units containing a total of 202 Auditable Areas throughout METRO Organizational Unit Score Evaluation High Risk (12-15) Med Risk (8-11) Low Risk (5-7)

38 METRO s Organizational Units (not including IT) FACILITIES MAINTENANCE PLANNING ENGINEERING METRORail NON-RAIL OPERATIONS METRO POLICE OPS., PUB. SFTY. & CUSTOMER EMPLOYEE BENEFITS EEO & COMPLIANCE HUMAN RESOURCES FINANCE ADMINISTRATION AUDIT LEGAL EXECUTIVE & BOARD Number of Auditable Areas Rail System Safety Program Travel Reimbursement ADA Accessibility Monitoring Compliance Risk Map Thirteen audits proposed for FY 2019 utilizing 5,400 hours including audits of ADA Accessibility Monitoring, Compliance, Rail System Safety Program and Travel Reimbursement. 3

39 IT Universe of Auditable Areas SHARED OFFICE TECHNOLGY 2 NETWORK TECHNOLOGY DESKTOP TECHNOLOGY SERVER & INFRASTRUCTURE Number of Auditable Areas Disaster Recovery Change Management ENVIRONMENTAL 1 BUSINESS APPLICATIONS SECURITY 8 18 Wireless Network Environment COMMUNICATIONS 3 VENDOR MANAGEMENT 3 IT GOVERNANCE IT ASSET MANAGEMENT Risk Map Information Technology is an Organizational Unit that has 11 Areas of Focus and a total of 61 Auditable Areas. Audit Department utilizes a 3 rd party IT Consultant to provide relative expertise in selected areas. IT will utilize 3,000 hours for 4 Planned Projects, Ancillary Consulting and Internal Support Activities. 4

40 Allocation of Hours Across Auditable Procurement Activities BUY AMERICA POST-DELIVERY BUY AMERICA PRE-AWARD PARK AND RIDES FACILITIES UPGRADES SURVEYING SERVICES FARE COLLECTION SYSTEM GENERAL PLANNING QUALITY ASSURANCE SERVICES TRAFFIC ENGINEERING TRANSIT CENTER AND PARKING OTHER CONSULTING AND SERVICES ADMINISTRATIVE AND OVERSIGHT MATERIALS TESTING CONSTRUCTION MANAGEMENT OTHER Risk Map Cost/Price Analysis Buy America: Pre -Award and Post- Delivery Two auditable procurement activities consisting of Buy America (Pre-Award and Post Delivery) and Cost/Price Analysis utilizing 7,000 total hours

41 Audit Department has issued the following Audit Reports as of August 31, 2018: Contracts Audit Hours 4 Buy America Pre Award Audit Reports 38 Buy America Post Delivery Audit Reports 62 Cost/Price Analysis Audit Reports Internal Function 8 Audit Reports 3 Special Project Request Reports Information Technology 3 Audit Reports Information Technology, 3,000 Contracts, 7,000 Internal Function and Special Reports, 5,400 6

42 Questions? 7

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45 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST DUE None. PAST ORIGINAL DUE DATE EXTENSION APPROVED Special Project - Review of METRO's SCADA Systems 1.A 3/31/2012 Rail Construction - Rail Expansion 3/31/2019 Convert and upgrade the Rosewood Diamond and Franklin Crossovers as needed to connect to the new SCADA system and install detection, locking, and security measures Audit of Alternative Service Delivery Implementation 1.0 4/30/2013 Planning 9/30/2018 Develop guidelines that address alternative service option implementation that include the process to be followed for identifying routes that are selected for alternative service delivery, the options to be considered, and the variables and issues that should be evaluated before the changes or alternatives are implemented Special Project - Review of Consent Agreement with the City of Houston 1.0 2/1/2015 PE & C-Capital Projects 9/30/2018 Continue negotiations with the City of Houston regarding the fee for plan review services /1/2015 PE & C-Capital Projects 9/30/2018 Review the need to expedite plan reviews in the future. 1

46 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED Audit of Database Administration Environment 5.0 8/30/2017 Information Technology 9/30/2018 Identify all Personally Identifiable Information (PII) stored in the databases and develop a plan for implementing data encryption for this information. All decryption keys will be stored in a secure location Audit of Cash Fare Collections 4.D 3/1/2017 Facility Maintenance 10/31/2018 Install intruder alarm along the perimeter fence to alert security personnel of an intruder trying to climb over the fence Audit of Owner Controlled Insurance Program 1.0 6/30/2018 Safety 12/30/2018 Coordinate with the OCIP Administrator to help ensure that all pending items are resolved to closeout the OCIP program in a timely manner Data Storage Environment Audit 2.0 7/30/2018 Information Technology 9/30/2018 Develop a process for inventorying all storage systems in METRO's computing environment /30/2018 Information Technology 9/30/2018 Develop hardening guidelines based on best practices as identified by manufacturers and security frameworks /30/2018 Information Technology 11/30/2018 Create unique accounts for all administrators who access/maintain storage systems. 2

47 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED 5.0 8/31/2018 Information Technology 11/30/2018 Configure all storage devices to begin sending logs to our centralized logging system /30/2018 Information Technology 11/30/2018 Provide weekly reports to show remote access activity and failed attempts into our storage environments from logging reviews Special Project - Records Retention Controls Planning & Engineering 1.0 4/30/2018 Legal 3/31/2019 Implement a periodic training program to ensure that all current and new employees are aware of the requirements of the Records Management Policy Compliance Review - Audit of Bus Operator Moving Violations /31/2017 Human Resources- Labor Relatio 9/30/2018 Update Work Rules Code Book and METRO DWI/DUI Guideline to require CDL employees to report traffic citations or convictions to their supervisors within 30 days of conviction to comply with Code of Federal Regulations requirements. 5.A 12/31/2017 Human Resources- Labor Relatio 9/30/2018 Revise The DWI/DUI and Other Criminal Offense Guideline FY2017 KPMG Management Letter 2.0 8/1/2018 Finance-Grant Programs 9/30/2018 Evaluate the processes and systems currently utilized for preparing the National Transit Database (NTD) submissions. 3

48 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED FTA Drug and Alcohol Compliance Auditing Program Final Audit Report 1.0 6/22/2018 Safety 11/30/2018 Revise the Drug and Alcohol Policy with technical edits based on wording from the regulatory updates from the Federal Transit Authority (FTA) in the areas of: - Prohibited Drug Usage, - Alcohol Usage, - Random Drug and Alcohol Testing, - Drug and Alcohol Testing Refusal, - Provisions Contrary to FTA Regulations /22/2018 Safety 11/30/2018 Ensure all newly hired safety-sensitive employees receive at least 60 minutes of Drug Awareness training during New Hire Orientation (currently safetysensitive employees are receiving 45 minutes) on the effects and consequences of prohibited drug use on personal health, safety, and the work environment, and on the signs and symptoms that may indicate prohibited drug use. 4

49 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED 3.0 6/22/2018 Safety 11/30/2018 Implement a procedure to ensure all contracted Breath Alcohol Technicians (BATs) inform the employees of the basic collection procedures by reviewing the related documentation on the back of the FTA Chain of Custody Form before commencing a breath alcohol test. Additionally, ensure all BATs provides a signed statement documenting the understanding that if the Evidential Breath Testing (EBT) device prints the test number, testing device name, and serial number, time and result on a separate print out rather than onto the Alcohol Test Form (ATF), then the print out needs to be fixed onto the ATF using tamper-evident tape /22/2018 Safety 11/30/2018 Implement a procedure to ensure all contracted urine collectors inform the employees, before starting a urine collection, of the basic collection procedures by reviewing the related documentation on the back of the FTA Chain of Custody Form. 5

50 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED 5.0 6/22/2018 Safety 11/30/2018 Ensure that the Medical Review Officer (MRO) provides a signed statement on company letter head that states the following: - Awareness of the requalification requirements, - MRO or the MRO Assistant should not provide quantitative values for drug or validity test results to the Designated Employer Representative (DER) at any time. However, this information can be provided directly to the Substance Abuse Professional (SAP), - MRO must make at least three attempts in a twentyfour-hour period to contact an employee or applicant regarding a positive test. Each attempt to contact employee must be documented with date and time, - MRO must inform the Department of Transportation Office of Drug and Alcohol Policy and Compliance (ODAPC) about split specimen laboratory results that fail to reconfirm the presence of the drug(s) or drug metabolite(s) found in the primary specimen. 6

51 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED 6.0 6/22/2018 Safety 11/30/2018 Update the Records Management process in the following areas to be in compliance with applicable FTA Rule Requirements: - Update Employment Application to include question(s) regarding previous positive preemployment test, - Implement a process to ensure applicants are hired within 90-day pre-employment drug screens, - Update the reasonable suspicion interviews process and related Reasonable Suspicions Form to ensure that additional narrative details are incorporated to document FTA/DOT testing and METRO Non-DOT testing, - Update the process to ensure that additional documentations are obtained for drug and alcohol testing that is not administered within required twohour time period, - Provide re-training for all Service Supervisors responsible for making Post Accident Drug and Alcohol Test Determinations and implement a Quality Assurance process for all Post Accident Determination Forms to ensure consistency of submitted information, - Ensure that related Drug and Alcohol personnel are up to date on various detail requirements of sections (c)(4) and (b) and submit a statement to FTA affirming the required action. 7

52 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Audit of DBE Compliance 1.B 11/1/2018 Procurement 11/1/2018 Develop a guideline that will apply to all METRO departments and will provide instructions for the collaborative efforts of reporting potential federally funded projects for the DBE goal setting and additions or changes to the initial project list during the 3-year reporting period Audit of Social Media Policy and Strategy /31/2018 Media Relations & Corp 10/31/2018 Draft and implement an entity wide Social Media Policy Audit of Bus Operator Training /30/2018 Operations-Transportation 11/30/2018 Develop written procedures for re-certification training /30/2018 Operations-Transportation 11/30/2018 Develop written procedures outlining the process for "Return to Work" training /28/2019 Operations-Operations Training 2/28/2019 Develop a standardized training curriculum for BOF management. 8

53 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Data Storage Environment Audit /31/2018 Operations-Transportation 10/31/2018 Create a topology map to detail the storage server connectivity to the network /31/2018 Operations-Transportation 10/31/2018 Create a data storage environment inventory for the ROC /31/2018 Operations-Transportation 10/31/2018 Develop a storage device deployment checklist /31/2018 Operations-Transportation 10/31/2018 Establish a quarterly review of user accounts to ROC information technology (signal and communications) maintenance plan /31/2018 Operations-Transportation 10/31/2018 Evaluate continued use of Solar-Winds to monitor the health of servers /31/2018 Operations-Transportation 10/31/2018 Implement a backup solution for the data storage environment. 9

54 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Observation of Disaster Recovery Testing /1/2020 Information Technology 5/1/2020 Determine processing, storage, and network capacity to support the automatic failover approach and work with vendors to determine the feasibility of an automatic process. Verify funding is available after feasibility studies completed Audit of Software Asset Management 1.0 5/1/2019 Information Technology 5/1/2019 Identify and select an Information Technology Service Management software package that includes a robust asset management and software license compliance system /1/2019 Information Technology 8/1/2019 Develop/modify existing procedures to routinely scan the network for installed software titles and versions. This report will then be compared to the software manufacturers currently supported version. Any discrepancies will be addressed to bring the software to the latest supported version /1/2019 Information Technology 8/1/2019 Implement a periodic comparison of installed software assets to the comprehensive software asset inventory. 10

55 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Special Project - Records Retention Controls Planning & Engineering 2.0 9/30/2018 PE & C- Engineering 9/30/2018 Perform a records retention review of records currently stored on-site Records Management & Storage 1.A 12/31/2018 Legal 12/31/2018 Implement procedures to provide periodic training to the Records Coordinators to help ensure compliance with the Records Management Policy and update the policy for any areas needing additional guidance. 1.B 12/31/2018 Legal 12/31/2018 Ensure compliance assessments are performed periodically to monitor and enforce the Records Management Policy. 2.A 6/1/2019 Legal 6/1/2019 Update the Records Lifecycle Guideline to ensure it references the new control document and the related process to initiate the destruction of records that have passed their retention period. 11

56 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 2.B 6/1/2019 Legal 6/1/2019 Ensure all Records Coordinators are periodically updated on the current process followed to dispose of records /1/2019 Legal 6/1/2019 Implement procedures to help ensure that File Plans are complete/accurate, updated and reviewed on an annual basis by the assigned Records Coordinator. 4.A 6/1/2019 Legal 6/1/2019 Implement additional controls to help ensure compliance with the procedures established by the State regarding electronic records. 4.B 6/1/2019 Legal 6/1/2019 Perform a reconciliation to determine if all departments have documented their electronic records on their approved File Plan. Periodically perform a review of user access to restricted electronic folders to help prevent unauthorized access. 12

57 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF August 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT /31/2018 Legal 12/31/2018 Update the Offsite Records Storage and Retrieval Procedure to provide additional instructions regarding each field required on the form and require Records Management to stamp the date the form is received. 13

58 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Monthly Financial Report AGENDA DATE: DEPARTMENT: Finance PRESENTER: Arthur Smiley, Chief Financial Officer SUMMARY: - CFO's Summary - Sales Tax Report - Investment Report - Debt Report - Monthly Performance Report

59 Finance & Audit Committee September 18, 2018

60 YTD cash received is $749.0 million or $19.8 million (2.7%) more than budgeted $57.0 million (8.2%) more than FY2017 Cash received in September 2018 is $60.5 million or $1.9 million (3.2%) more than budgeted $6.7 million (12.4%) more than FY2017 September sales tax revenue is from July sales activity 2

61 YTD Fare Revenue is $61.4 million or $1.8 million (2.8%) less than budgeted $0.7 million (1.2%) more than FY2017 Fare Revenue in August 2018 is $5.8 million or $0.2 million (3.3%) less than budgeted $1.2 million (26.1%) more than FY2017 3

62 Variance: -$1.8M -1.8M 4

63 FY2018 Annual Operating Budget $ FY2018 Annual Capital Budget $ FY2018 YTD Operating Budget $ FY2018 YTD Capital Budget $ Budget Actual Budget Actual METRORail Completion -92.4% Operating -5.2% $- $110 $220 $330 $440 $550 CIP Program $- $40 $80 $120 $ % FY2018 Annual Debt Service Budget $ 97.0 FY2018 Annual GMP Projected Allocation $ FY2018 YTD Debt Service Budget $ 87.5 FY2018 YTD GMP Projected Allocation $ Budget Actual -0.5% Projected Allocation 1.3% Debt Service GMP Projection $- $30 $60 $90 $- $55 $110 $165 ($ million) 5

64 Fund Beginning Balance, $ millions (7/31/2018) Ending Balance, $ millions (8/31/2018) Earnings Rate Benchmark Rate General $268.0 $ % 2.12% Construction Real Estate General Mobility

65 ($ million) 7/31/18 8/31/18 Sales & Use Tax Bonds $ $ Sales & Use Tax Contractual Obligations Sales & Use Tax Refunding Bonds Sales & Use Tax Refunding Contractual Obligations Commercial Paper Sales & Use Tax Take Out Bonds Sales & Use Tax Refinancing Bonds Total $ 1,143.3 $ 1,

66 FY2017 FY2018 Change Local Bus 52,966,316 54,542,677 1,576, % METRORail Service 16,895,295 17,428, , % Local Network 69,861,611 71,970,840 2,109, % Commuter Park & Ride 7,085,929 7,081,263 (4,666) (0.1%) Fixed Route 76,947,540 79,052,103 2,104, % Customized Service METROLift 1,754,658 1,841,078 86, % METROStar Vanpool 1,851,224 1,766,765 (84,459) (4.6%) 8

67 Ridership (in millions) Revenue (in millions) Mar Apr May Jun Jul Aug $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Mar Apr May Jun Jul Aug FY17 FY18 FY17 FY18 9

68 Metropolitan Transit Authority Sales & Use Tax Report September 2018 Treasury Services 9/12/2018

69 Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) FY 2018 NET NET GROSS NET VARIANCE CHANGE IN ACTUALS REC'D SALES RECEIPTS ESTIMATE RECEIPTS REBATES RECEIPTS TO FY18 ESTIMATE FY18- FY17 IN IN FY17 FY18 FY18 FY18 FY18 $ % $ % OCT AUG $ 52,412, $ 55,673, $ 50,331, $ 244, $ 50,086, $ (5,586,814.14) % $ (2,326,296.09) -4.44% NOV SEP $ 61,233, $ 64,441, $ 63,175, $ 302, $ 62,872, $ (1,568,541.24) -2.43% $ 1,639, % DEC OCT $ 52,333, $ 56,555, $ 64,423, $ 204, $ 64,219, $ 7,664, % $ 11,886, % JAN NOV $ 53,777, $ 56,093, $ 60,841, $ 191, $ 60,649, $ 4,556, % $ 6,872, % FEB DEC $ 70,386, $ 77,392, $ 78,034, $ 289, $ 77,745, $ 352, % $ 7,358, % MAR JAN $ 54,333, $ 54,636, $ 56,982, $ 294, $ 56,687, $ 2,051, % $ 2,354, % APR FEB $ 55,183, $ 54,177, $ 55,274, $ 138, $ 55,135, $ 958, % $ (47,565.10) -0.09% MAY MAR $ 64,728, $ 68,266, $ 70,285, $ 337, $ 69,948, $ 1,682, % $ 5,219, % JUN APR $ 53,427, $ 56,671, $ 59,094, $ 242, $ 58,851, $ 2,179, % $ 5,424, % JUL MAY $ 56,092, $ 58,486, $ 63,598, $ 217, $ 63,380, $ 4,893, % $ 7,288, % AUG JUN $ 64,262, $ 68,225, $ 69,169, $ 215, $ 68,953, $ 728, % $ 4,691, % SEP JUL $ 53,786, $ 58,573, $ 61,351, $ 881, $ 60,470, $ 1,896, % $ 6,683, % TOTAL $ 691,957, $ 729,191, $ 752,561, $ 3,560, $ 749,000, $ 19,808, % $ 57,043, % Net Receipts Estimate Net Receipts Net Receipts YTD % Over YTD % Chge YTD FY 18 YTD FY 17 YTD FY 18 FY 18 Est FY Act $ 729,191, $ 691,957, $ 749,000, % 8.24% Treasury Services 9/12/2018 Page 1 of 4

70 Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) Most Recent 12-Month History Including Accrual for Rebates NET NET NET RECEIPTS REC'D SALES FISCAL RECEIPTS FISCAL RECEIPTS CHANGE AMOUNT IN IN YEAR (a) YEAR GROSS REBATES (b) [(b)-(a)] % OCT AUG FY'17 $ 52,412, FY'18 $ 50,331, $ 244, $ 50,086, $ (2,326,296.09) -4.44% NOV SEP FY'17 $ 61,233, FY'18 $ 63,175, $ 302, $ 62,872, $ 1,639, % DEC OCT FY'17 $ 52,333, FY'18 $ 64,423, $ 204, $ 64,219, $ 11,886, % JAN NOV FY'17 $ 53,777, FY'18 $ 60,841, $ 191, $ 60,649, $ 6,872, % FEB DEC FY'17 $ 70,386, FY'18 $ 78,034, $ 289, $ 77,745, $ 7,358, % MAR JAN FY'17 $ 54,333, FY'18 $ 56,982, $ 294, $ 56,687, $ 2,354, % APR FEB FY'17 $ 55,183, FY'18 $ 55,274, $ 138, $ 55,135, $ (47,565.10) -0.09% MAY MAR FY'17 $ 64,728, FY'18 $ 70,285, $ 337, $ 69,948, $ 5,219, % JUNE APR FY'17 $ 53,427, FY'18 $ 59,094, $ 242, $ 58,851, $ 5,424, % JULY MAY FY'17 $ 56,092, FY'18 $ 63,598, $ 217, $ 63,380, $ 7,288, % AUG JUNE FY'17 $ 64,262, FY'18 $ 69,169, $ 215, $ 68,953, $ 4,691, % SEPT JULY FY'17 $ 53,786, FY'18 $ 61,351, $ 881, $ 60,470, $ 6,683, % TOTAL $ 691,957, $ 752,561, $ 3,560, $ 749,000, $ 57,043, % CURRENT MONTH REBATE ACCRUALS Reliant Stadium $ 762, Baybrook MUD $ 119, Total Rebates $ 881, Treasury Services 9/12/2018 Page 2 of 4

71 Month Allocation State of Texas Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) FY 2018 Rebate Accruals Distribution Net Receipts Baybrook MUD Reliant Stadium Baybrook MUD Total Rebates METRO General Mobility October $ 50,331, $ 131, $ 113, $ 244, $ 50,086, $ 113, $ 36,951, $ 13,022, November $ 63,175, $ 193, $ 109, $ 302, $ 62,872, $ 109, $ 46,832, $ 15,930, December $ 64,423, $ 99, $ 104, $ 204, $ 64,219, $ 104, $ 49,642, $ 14,472, January $ 60,841, $ 66, $ 125, $ 191, $ 60,649, $ 125, $ 46,542, $ 13,981, February $ 78,034, $ 120, $ 168, $ 289, $ 77,745, $ 168, $ 58,862, $ 18,713, March $ 56,982, $ 188, $ 106, $ 294, $ 56,687, $ 106, $ 43,060, $ 13,520, April $ 55,274, $ 37, $ 100, $ 138, $ 55,135, $ 100, $ 41,955, $ 13,079, May $ 70,285, $ 216, $ 121, $ 337, $ 69,948, $ 121, $ 53,326, $ 16,500, June $ 59,094, $ 68, $ 173, $ 242, $ 58,851, $ 173, $ 44,464, $ 14,212, July $ 63,598, $ 96, $ 121, $ 217, $ 63,380, $ 121, $ 48,552, $ 14,705, August $ 69,169, $ 63, $ 152, $ 215, $ 68,953, $ 152, $ 52,432, $ 16,368, September $ 61,351, $ 762, $ 119, $ 881, $ 60,470, $ 119, $ 45,756, $ 14,594, Total $ 752,561, $ 2,044, $ 1,515, $ 3,560, $ 749,000, $ 1,515, $ 568,382, $ 179,102, $ 50,331, $ 131, $ 113, $ 244, $ 50,086, $ 113, $ 37,479, $ 6,246, Treasury Services 9/12/2018 Page 3 of 4

72 Metropolitan Transit Authority Forecast Subsequent Sales Tax Receipts - Net of Rebates Based on Three Months Rolling Average Estimated Net Sales Tax Receipts for the Month(s) of: August 2018 $ 55,102, September 2018 $ 69,611, Treasury Services 9/12/2018 Page 4 of 4

73 METRO INVESTMENT REPORT ALL FUNDS August 2018

74 Metropolitan Transit Authority of Harris County Investment Report For month ended August 31, 2018 Portfolio Summary Management Report The following is a summary of METRO's Investment Portfolios: Fund: General Construction Real Estate General Mobilit~ Prior Month End Book Value $268,629,277 $72,248,533 $489,507 $66,740,711 Current Month End Book Value 284,396,496 69,610, ,336 81,283,472 Change $15,767,219 ($2,637,733) $829 $14,542,761 Prior Month End Market Value* $267,983,502 $72,248,533 $489,507 $66,740,711 Current Month End Market Value* 283,849,086 69,610, ,336 81,283,472 Change $15,865,584 ($2,637,733) $829 $14,542,761 Interest Receivable $2,565,988 $0 $0 $0 Weighted Average Days Outstanding Weighted Average Years Outstanding Recognized Yield 3.01% 1.92% 1.99% 1.99% Benchmark Yield 2.12% 1.91% 1.89% 1.89% Yield Over/ <Under> Benchmark 0.89% 0.01% 0.10% 0.10% TexStar Wtd Avg. Days Outstanding (as of 08/31/18) ** N/A N/A TexDaily Wtd Avg. Days Outstanding (as of 07/31/18) ** 37 N/A All Funds are managed in full compliance with th Transit Authority of Harris Co nds Investment Act, the Investment Policy and Strategy of the Metropolitan der the sat ty parameters set by the Board of Directors. ial Officer * Change in Market Value is presented in accordance with the Public Funds Investment Act and primarily reflects receipts, expenditures, securities purchases and maturities and changes in the marketability of securities held at the end of the period. ** This weighted average maturity calculation uses the SEC Rule 2a-7 definition for stated maturity for any floating rate instrument held in the portfolio to determine the weighted average maturity for the pool. This Rule specifies that a variable rate instrument to be paid in 397 calendar days or less shall be deemed to have a maturity equal to the period remaining until the next readjustment of the interest rate.

75 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of August 31, 2018 Maturity Purch Book Value Market Value No. Description Coupon Rating Date Date Par Cost Price YTM Type 7/31/2018 8/31/2018 7/31/2018 8/31/2018 General Fund Wells Fargo Master Account 9/1/2018 8/31/2018 6,016,833 6,016, NA DDA 5,843,707 6,016,833 5,843,707 6,016,833 Wells Fargo HOT Lanes Account 9/1/2018 8/31/2018 5,304 5, NA DDA 541,270 5, ,270 5,304 Wells Fargo Mobile Ticketing 9/1/2018 8/31/ ,111 71, NA DDA 17,327 71,111 17,327 71,111 Wells Fargo METROLift Online Account 9/1/2018 8/31/ NA DDA TexStar Investment Pool AAAm 9/1/2018 8/31/ ,207,755 22,207, % LGIP 35,153,244 22,207,755 35,153,244 22,207,755 TexDaily Investment Pool AAAm 9/1/2018 8/31/ ,148,997 26,148, % LGIP 24,149,422 26,148,997 24,149,422 26,148,997 Wells Fargo Institutional Sweep 9/1/2018 8/31/ , , % DSA 15,700, ,029 15,700, ,029 EWBCD21 East West Bank CD 1.100% Coll = Aaa 11/21/ /21/ ,000,000 10,000, % CD 10,000,000 10,000,000 10,000,000 10,000, EGM69 / Federal Farm Credit Banks 1.100% AA+/Aaa 12/5/2018 1/23/ ,000,000 9,966, % A 9,993,725 9,995,269 9,961,400 9,970, A4YA4 / Federal Home Loan Bank 1.050% AA+/Aaa 8/15/2018 2/15/2017 7,000,000 6,993, % A 6,999,833 Matured/Called 6,997,130 Matured/Called GAGM0 / Freddie Mac 1.040% AA+/Aaa 8/24/2018 2/15/2017 5,000,000 4,992, % A 4,999,689 Matured/Called 4,997,200 Matured/Called GAKF0 / Freddie Mac 1.110% AA+/Aaa 9/12/2018 2/22/2017 5,000,000 4,996, % A 4,999,770 4,999,940 4,995,300 4,998, G0YM9 / Fannie Mae 1.875% AA+/Aaa 9/18/2018 2/28/2017 5,000,000 5,060, % A 5,005,106 5,001,808 4,998,750 4,999,500 EWBCD22 East West Bank CD 1.500% Coll = Aaa 3/14/2019 3/14/ ,000,000 10,000, % CD 10,000,000 10,000,000 10,000,000 10,000, K48 / Federal Home Loan Bank 2.000% AA+/Aaa 9/14/2018 6/14/2017 5,000,000 5,041, % A 5,004,032 5,001,191 4,999,550 4,999, EQ1 / Tennessee Valley Authority 1.750% AA+/Aaa 10/15/2018 7/18/2017 5,000,000 5,025, % A 5,004,262 5,002,500 4,997,300 4,998, AAM88 / Federal Home Loan Bank 1.625% AA+/Aaa 1/18/2019 7/18/2017 5,000,000 5,010, % A 5,003,102 5,002,537 4,986,450 4,988, A9AE1 / Federal Home Loan Bank 0.875% AA+/Aaa 10/1/2018 7/18/2017 5,000,000 4,973, % A 4,996,311 4,998,186 4,990,200 4,995, AAV62 / Federal Home Loan Bank 1.270% AA+/Aaa 2/27/2019 7/31/2017 5,000,000 4,993, % A 4,997,699 4,998,039 4,971,900 4,975, EHQF3 / Federal Farm Credit Banks 1.350% AA+/Aaa 1/7/2019 7/31/2017 5,000,000 5,000, % A 5,000,288 5,000,232 4,981,850 4,984, EADZ9 / Freddie Mac 1.125% AA+/Aaa 4/15/2019 8/16/2017 5,000,000 4,982, % A 4,992,757 4,993,630 4,957,000 4,962, G0J53 / Fannie Mae 1.000% AA+/Aaa 2/26/2019 8/16/2017 5,000,000 4,973, % A 4,990,074 4,991,547 4,962,150 4,968, ABQ25 / Federal Home Loan Bank 1.360% AA+/Aaa 3/29/2019 9/18/2017 5,000,000 4,997, % A 4,998,899 4,999,041 4,968,900 4,972, EHJG9 / Federal Farm Credit Banks 1.400% AA+/Aaa 5/15/2019 9/28/2017 5,000,000 4,993, % A 4,996,881 4,997,218 4,960,700 4,965, X72S2 / Federal Home Loan Bank 5.375% AA+/Aaa 5/15/2019 9/29/2017 5,000,000 5,312, % A 5,151,451 5,135,092 5,116,200 5,100, EHZF3 / Federal Farm Credit Banks 1.375% AA+/Aaa 6/19/ /21/2017 5,000,000 4,972, % A 4,984,293 4,985,805 4,952,400 4,958, FC2 / World Bank 1.250% AA+/Aaa 4/26/ /21/2017 5,000,000 4,962, % A 4,980,493 4,982,749 4,955,200 4,960, EAEB1 / Freddie Mac 0.875% AA+/Aaa 7/19/ /21/2017 5,000,000 4,928, % A 4,958,477 4,962,134 4,925,700 4,933, EGFU4 / Federal Farm Credit Banks 1.210% AA+/Aaa 6/20/ /21/2017 5,000,000 4,955, % A 4,974,806 4,977,224 4,943,350 4,951, EAEB1 / Freddie Mac 0.875% AA+/Aaa 7/19/ /22/2017 5,000,000 4,924, % A 4,955,977 4,959,854 4,925,700 4,933, G0N33 / Fannie Mae 0.875% AA+/Aaa 8/2/ /20/2017 5,000,000 4,920, % A 4,950,661 4,954,840 4,921,500 4,928, A8Y72 / Federal Home Loan Bank 0.875% AA+/Aaa 8/5/2019 1/3/2018 6,000,000 5,901, % A 5,936,993 5,942,287 5,905,380 5,913, F62 / US Treasury Note 1.500% AA+/Aaa 10/31/2019 2/13/2018 5,000,000 4,950, % T 4,963,890 4,966,345 4,936,350 4,941, FQ1 / World Bank 1.200% AA+/Aaa 9/30/2019 2/13/2018 6,000,000 5,910, % A 5,935,996 5,940,665 5,899,020 5,904, EJAK5 / Federal Farm Credit Banks 2.010% AA+/Aaa 9/25/2019 2/13/2018 5,000,000 4,993, % A 4,995,536 4,995,865 4,971,000 4,971, F62 / US Treasury Note 1.500% AA+/Aaa 10/31/2019 2/16/2018 4,000,000 3,954, % T 3,966,612 3,968,882 3,949,080 3,952, G0ZY2 / Fannie Mae 1.750% AA+/Aaa 11/26/2019 3/21/2018 5,000,000 4,953, % A 4,963,575 4,965,918 4,947,750 4,952, FS7 / World Bank 1.125% AA+/Aaa 11/27/2019 5/17/2018 5,000,000 4,889, % A 4,904,655 4,910,775 4,901,150 4,909, A0JR2 / Federal Home Loan Bank 2.375% AA+/Aaa 12/13/2019 5/16/2018 5,000,000 4,987, % A 4,989,543 4,990,192 4,983,600 4,989, A0JR2 / Federal Home Loan Bank 2.375% AA+/Aaa 12/13/2019 5/16/2018 4,710,000 4,698, % A 4,700,272 4,700,876 4,694,551 4,700, AA3R7 / Federal Home Loan Bank 1.375% AA+/Aaa 11/15/2019 7/23/2018 5,000,000 4,926, % A 4,927,678 4,932,438 4,923,850 4,933, EAEE5 / Freddie Mac 1.500% AA+/Aaa 1/17/2020 8/6/2018 5,000,000 4,923, % A Did Not Own 4,927,427 Did Not Own 4,927, EAEE5 / Freddie Mac 1.500% AA+/Aaa 1/17/2020 8/6/2018 5,000,000 4,923, % A Did Not Own 4,927,551 Did Not Own 4,927, ADN32 / Federal Home Loan Bank 2.125% AA+/Aaa 2/11/2020 8/6/2018 5,000,000 4,963, % A Did Not Own 4,965,125 Did Not Own 4,966, ADMS8 / Federal Home Loan Bank 2.150% AA+/Aaa 2/14/2020 8/14/2018 5,000,000 4,964, % A Did Not Own 4,965,989 Did Not Own 4,965, J84 / US Treasury Note 1.375% AA+/Aaa 3/31/2020 8/14/2018 5,000,000 4,904, % A Did Not Own 4,907,214 Did Not Own 4,906, W63 / US Treasury Note 1.625% AA+/Aaa 3/15/2020 8/14/2018 5,000,000 4,926, % A Did Not Own 4,928,343 Did Not Own 4,927, EAEM7 / Freddie Mac 2.500% AA+/Aaa 4/23/2020 8/14/2018 5,000,000 4,991, % A Did Not Own 4,991,977 Did Not Own 4,989, EAEM7 / Freddie Mac 2.500% AA+/Aaa 4/23/2020 8/14/2018 5,000,000 4,991, % A Did Not Own 4,991,734 Did Not Own 4,989, XE5 / US Treasury Note 1.500% AA+/Aaa 5/31/2020 8/15/2018 5,000,000 4,902, % A Did Not Own 4,904,923 Did Not Own 4,905, XE5 / US Treasury Note 1.500% AA+/Aaa 5/31/2020 8/16/2018 5,000,000 4,905, % A Did Not Own 4,907,449 Did Not Own 4,905, XY1 / US Treasury Note 2.500% AA+/Aaa 6/30/2020 8/27/2018 5,000,000 4,989, % A Did Not Own 4,989,904 Did Not Own 4,988,650 Total General Fund 268,629, ,396, ,983, ,849,086 Notes: AAA is the highest long-term rating. A-1+ is the highest short term rating. DDA: Demand Deposit Account LGIP: Local Government Investment Pool DSA: FDIC-insured Sweep Account TPF: Trust Payment Fund (Cash) MB: Municipal Bond MCP: Municipal Commercial Paper CD: Certificate of Deposit A: U. S. Agency & Instrumentality Bond MMA: Money Market Account T: U. S. Treasuries NA*: Implicit backing of the Federal Government

76 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of August 31, 2018 Maturity Purch Book Value Market Value No. Description Coupon Rating Date Date Par Cost Price YTM Type 7/31/2018 8/31/2018 7/31/2018 8/31/2018 Construction Fund Sales & Use Tax Bonds DSR (TexStar) AAAm 9/1/2018 8/31/ ,420,359 21,420, % LGIP 21,385,441 21,420,359 21,385,441 21,420,359 Contractual Obligations DSR (TexStar) AAAm 9/1/2018 8/31/2018 4,665,534 4,665, % LGIP 4,657,929 4,665,534 4,657,929 4,665,534 Interest & Sinking Fund (2009 & 2010) (TexStar) AAAm 9/1/2018 8/31/2018 5,581,080 5,581, % LGIP 4,710,700 5,581,080 4,710,700 5,581,080 Interest & Sinking Fund 2011A (TexStar) AAAm 9/1/2018 8/31/ ,872,251 10,872, % LGIP 8,954,147 10,872,251 8,954,147 10,872,251 Interest & Sinking Fund 2011B (TexStar) AAAm 9/1/2018 8/31/ , , % LGIP 108, , , ,202 Interest & Sinking Fund 2014 (TexStar) AAAm 9/1/2018 8/31/ ,489,290 13,489, % LGIP 13,467,301 13,489,290 13,467,301 13,489,290 Interest & Sinking Fund 2015A (TexStar) AAAm 9/1/2018 8/31/2018 1,936,757 1,936, % LGIP 10,085,008 1,936,757 10,085,008 1,936,757 Interest & Sinking Fund 2015B (TexStar) AAAm 9/1/2018 8/31/2018 4,502,485 4,502, % LGIP 3,915,621 4,502,485 3,915,621 4,502,485 Interest & Sinking Fund 2016A (TexStar) AAAm 9/1/2018 8/31/2018 2,107,274 2,107, % LGIP 1,580,276 2,107,274 1,580,276 2,107,274 Interest & Sinking Fund 2016B (TexStar) AAAm 9/1/2018 8/31/ , , % LGIP 312, , , ,606 Interest & Sinking Fund 2016C (TexStar) AAAm 9/1/2018 8/31/ , , % LGIP 16, ,751 16, ,751 Interest & Sinking Fund 2016D (TexStar) AAAm 9/1/2018 8/31/ , , % LGIP 562, , , ,213 Interest & Sinking Fund 2017A (TexStar) AAAm 9/1/2018 8/31/ , , % LGIP 375, , , ,675 Interest & Sinking Fund 2017B (TexStar) AAAm 9/1/2018 8/31/2018 1,685,222 1,685, % LGIP 1,628,980 1,685,222 1,628,980 1,685,222 Interest & Sinking Fund 2017C (TexStar) AAAm 9/1/2018 8/31/ , , % LGIP 487, , , ,102 Total Construction Fund 72,248,533 69,610,801 72,248,533 69,610,801 General Mobility Fund TexDaily Investment Pool GMP AAAm 9/1/2018 8/31/ ,283,472 81,283, % LGIP 66,740,711 81,283,472 66,740,711 81,283,472 Total General Mobility Fund 66,740,711 81,283,472 66,740,711 81,283,472 Real Estate Fund TexDaily Investment Pool Real Estate AAAm 9/1/2018 8/31/ , , % LGIP 489, , , ,336 Total Real Estate Fund 489, , , ,336 Grand Total All Funds 408,108, ,781, ,462, ,233,695 Notes: AAA is the highest long-term rating. A-1+ is the highest short term rating. MMA: Money Market Account DDA: Demand Deposit Account T: U. S. Treasuries LGIP: Local Government Investment Pool NA*: Implicit backing of the Federal Government DSA: FDIC-insured Sweep Account TPF: Trust Payment Fund (Cash) MB: Municipal Bond MCP: Municipal Commercial Paper CD: Certificate of Deposit A: U. S. Agency & Instrumentality Bond

77 Description Metropolitan Transit Authority of Harris County Texas General Mobility Escrow Activity Summary As of August 31, 2018 FY2018 Year to Date Escrow Disbursements Interest to Interest Earned Escrow Funding from Escrow General Fund on Escrow Funds Balance Aug-18 Escrow Balance Forward $ 147,709, $ (156,269,008.29) $ (1,693,400.48) $ 905, $ 66,740, Aug-18 Net Sales Tax Received [((Net Sales Tax X 25%) - FY2014 Aug GMP) / 2 ] + FY2014 Aug GMP [(($68,801, X 25%) - $15,537,089.68) / 2 ] + $15,537, ,368, ,109, Aug-18 City of Katy, Humble & Missouri City Monthly Congestion Mitigation and Traffic Management (1,503,732.04) 81,605, Aug-18 City of Bellaire, Hedwig Village, Hunters Creek, Southside Place, Spring Valley & West University Place Monthly Congestion Mitigation and Traffic Management (322,243.17) 81,283, Aug-18 Interest Activity (131,916.48) 131, ,283, Aug-18 Escrow - Fiscal Year to Date $ 164,077, $ (158,094,983.50) $ (1,825,316.96) $ 1,037, $ 81,283,472.11

78 METRO DEBT REPORT August 2018

79 Metropolitan Transit Authority of Harris County Texas Debt Report As of August 31, 2018 Type of Debt Purpose Issued Par Value Average Rate Issuance Date Maturity / Term Cost of Issuance Interest Earned on Proceeds Disbursements from Proceeds Outstanding Balance Commercial Paper General Mobility $ 169,402,000 Certificates of Participation (COPS) Series 2008A Certificates of Participation (COPS) Series 2008B Sales & Use Tax Contractual Obligations Series 2009D Sales & Use Tax Contractual Obligations Series 2010A Sales & Use Tax Contractual Obligations Series 2011B Sales & Use Tax Contractual Obligations Series 2014 Sales & Use Tax Contractual Obligations Series 2015B 46 Orion HEV Buses 52 MCI HEV Buses 10 Signature Orions 50 MCI HEV 40 Orion HEV Buses 20 MCI HEV Buses Wtd. Avg % Program Inception 10-Jan-06 Wtd. Avg days $ 7,014,204 $ 241,452 $ 169,402,000 $ 95,502,000 $ 62,255, % July 15, 2008 Defeased August 31, 2016 $ 215,568 $ 420,316 $ 61,959,754 $ - $ 45,785, % December 9, 2008 Defeased August 31, 2016 $ 151,402 $ 97,461 $ 41,937,000 $ - $ 35,050, % December 30, 2009 Defeased November 1, 2017 $ 175,686 $ 8,913 $ 35,612,306 $ - 80 Orion HEV Buses $ 40,290, % June 23, Orion HEV Buses $ 49,405, % September 28, Nova Articulated Buses 70 MCI Commuter Buses 40 NABI Transit Buses 75 NABI Buses 50 NABI CNG Buses 25 MCI Commuter Buses Pre Refund: November 1, 2022 Post Refund: November 1, 2021 Pre Refund: November 1, 2023 Post Refund: November 1, 2022 $ 186,496 $ 27,485 $ 41,902,115 $ 6,885,000 $ 93,614 $ 7,784 $ 53,007,784 $ 9,575,000 $ 97,953, % April 22, 2014 November 1, 2029 $ 881,445 $ 11, $ 106,690,895 $ 60,448,750 $ 62,485, % August 28, 2015 November 1, 2028 $ 500,949 $ 8 $ 72,789,714 $ 54,475,000 Sales & Use Tax Series 2015A CP Take Out $ 52,575, % August 28, 2015 August 15, 2020 $ 385,930 $ - $ 60,000,000 $ 43,820,000 Sales & Use Tax Contractual Obligations Series 2016D 80 Nova 40' Transit Buses 20 60' Articulated Buses $ 44,445, % December 1, 2016 November 1, 2028 $ 575,919 $ 49,230 $ 49,580,273 $ 44,445,000 Sales & Use Tax Refunding Contractual Obligations Series 2017B 100 New Flyer 40' Transit Buses 45 45' MCI Commuter Buses Refunded: $4,665,000 of Series 2009B, $13,520,000 of Series 2009D, $12,425,000 of Series 2010A, $18,110,000 of Series 2011B, & $2,000,000 of Series 2014 $ 100,950, % October 18, 2017 November 1, 2029 $ 826,213 $ 153,082 $ 68,985,733 $ 100,950,000 Sales & Use Tax Refunding Contractual Obligations Series 2017C Refunded $21,315,000 of Series 2014 $ 25,200, % December 15, 2017 November 1, 2027 $ 197,926 $ 413 $ 25,124,201 $ 25,200,000 Total Non-METRORail Expansion $ 785,795, % $ 11,205,351 $ 1,017,525 $ 786,991,775 $ 441,300,750 Commercial Paper METRORail Expansion Real Estate $ 20,598,000 Wtd. Avg % Program Inception 10-Jan-06 Wtd. Avg days $ 852,967 $ 29,362 $ 20,598,000 $ 20,598,000 Sales & Use Tax Bonds Series 2009A North and Southeast Corridor Expansion $ 94,465, % June 11, 2009 Pre Refund: November 1, 2029 Post Refund: November 1, 2018 $ 560,859 $ 145,597 $ 96,577,321 $ 4,195,000 Sales & Use Tax Contractual Obligations Series 2009B Rail Vehicles & Set-Up $ 42,780, % June 11, 2009 Defeased November 1, 2017 $ 253,994 $ 83,868 $ 42,161,735 $ - Sales & Use Tax Bonds Series 2009C Build America Bonds Sales & Use Tax Bonds Series 2011A Sales & Use Tax Contractual Obligations Series 2014 Sales & Use Tax Refunding Bonds Series 2016A Sales & Use Tax Refunding Contractual Obligations Series 2016B Sales & Use Tax Bonds Series 2016C Sales & Use Tax Refunding Bonds Series 2017A North and Southeast Corridor Expansion North and Southeast Corridor Expansion 10 East Corridor CAF Light Rail Vehicles Refunded $81,980,000 of Series 2011A & $54,000,000 of Series 2009A Refunded $28,365,000 of Series 2009B Refinanced $29,910,000 of 2008A COPS & $26,525,000 of 2008B COPS Refunded $23,280,000 of Series 2011A & $9,045,000 of Series 2009A $ 82,555, % June 11, 2009 November 1, 2038 $ 440,193 $ 222,578 $ 77,116,267 $ 82,555,000 $ 461,010, % September 28, 2011 November 1, 2041 $ 869,366 $ 285,759 $ 461,301,403 $ 331,575,000 $ 32,651, % April 22, 2014 November 1, 2029 $ 293,815 $ 207,565 $ 35,657,462 $ 27,921,250 $ 126,245, % April 27, 2016 November 1, 2029 $ 937,716 $ 122 $ 159,952,249 $ 126,245,000 $ 25,635, % April 27, 2016 November 1, 2033 $ 295,017 $ 49 $ 31,680,692 $ 25,635,000 $ 55,330, % August 31, 2016 August 1, 2021 $ 179,849 $ 27 $ 59,844,643 $ 33,615,000 $ 29,995, % October 18, 2017 November 1, 2025 $ 332,004 $ - $ 35,039,618 $ 29,995,000 Total METRORail Expansion $ 971,264, % $ 5,015,780 $ 974,927 $ 1,019,929,390 $ 682,334,250 Total Debt $ 1,757,060, % $ 16,221,132 $ 1,992,453 $ 1,806,921,166 $ 1,123,635,000

80 METRO Fiscal Year 2018 Monthly Performance Report Revenue Expense Ridership Performance August 2018 (Third Quarter Fiscal Year-to Date) 9/13/2018

81 MONTHLY PERFORMANCE REPORT August 2018 Table of Contents Section A Section B Section C Section D Section E Section F Section G Section H Section I Section J Sales Tax Revenue Fare Revenue Grant and Interest & Miscellaneous Revenue Budget and Expense Summary Operating Expenses August 2018 Budget vs. Actual FY2018 YTD Budget vs. Actual FY2018 YTD Major Variance Items FY2018 YTD Operating Budget/Expenses by Department Capital and Debt Service Expenditures General Mobility Transfers Ridership by Service Category Performance Statistics Performance Statistics Notes Balance Sheet Quarterly Budget Change Requests

82 MONTHLY PERFORMANCE REPORT September 2018 Sales Tax Revenue millions $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY2018 Budget FY2018 Actual FY2017 Actual Total FY2018 Sales Tax budget is $729.2 million Budget to Actual FY2018 ($ millions) Budget Actual Variance % October (5.6) (10.0%) November (1.6) (2.4%) December % January % February % March % April % May % June % July % August % September % FY2018 YTD $ $ $ % Prior Year vs. Current Year ($ millions) Prior Year Current Year Variance % October (2.3) (4.4%) November % December % January % February % March % April (0.0) (0.1%) May % June % July % August % September % FY2018 YTD $ $ $ % Sales Tax revenue for the month of September 2018 is $1.9 million or 3.2% over estimates. Sales Tax revenue for the year-to-date through September 2018 of $749.0 million is $19.8 million or 2.7% over estimates. Section A Page 3

83 MONTHLY PERFORMANCE REPORT August 2018 Fare Revenue millions $7.0 $6.5 $6.0 $5.5 $5.0 $4.5 $4.0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY2018 Budget FY2018 Actual FY2017 Actual Total FY2018 Fare Revenue budget is $68.7 million Budget to Actual FY2018 ($ millions) Budget Actual Variance % October (0.5) (8.3%) November (0.1) (1.8%) December (0.7) (12.5%) January % February % March (0.4) (5.9%) April % May % June (0.6) (10.7%) July (0.1) (1.8%) August (0.2) (3.3%) September % FY2018 YTD $ 63.2 $ 61.4 $ (1.8) (2.8%) Prior Year vs. Current Year ($ millions) Prior Year Current Year Variance % October (0.2) (3.5%) November % December (0.2) (3.9%) January % February (0.1) (1.8%) March (0.5) (7.2%) April % May % June (1.0) (16.7%) July % August % September % FY2018 YTD $ 60.7 $ 61.4 $ % Fare Revenue for the month of August 2018 of $5.8 million is $0.2 million or 3.3% under budget. Fare Revenue for the year-to-date through August 2018 of $61.4 million is $1.8 million or 2.8% under budget. Section B Page 4

84 MONTHLY PERFORMANCE REPORT August 2018 Service Related Grant Revenue Total FY2018 Service Related Grant budget is $76.1 million ($ millions) Budget Actual Variance % October (3.5) (55.6%) November (5.5) (87.3%) December (5.9) (93.7%) January (5.9) (93.7%) February (5.9) (93.7%) March (5.8) (92.1%) April (5.7) (90.5%) May (5.8) (92.1%) June (5.9) (93.7%) July % August % September % FY2018 YTD $ 69.8 $ 54.3 $ (15.5) (22.2%) Service Related Grant Revenue for the month of August 2018 of $8.1 million is $1.8 million or 28.6% over budget. Service Related Grant Revenue for the year-to-date through August 2018 of $54.3 million is $15.5 million or 22.2% under budget. Capital Grant Revenue Total FY2018 Capital Grant budget is $52.2 million ($ millions) Budget Actual Variance % October (3.2) (94.1%) November (2.3) (67.6%) December (2.5) (73.5%) January (3.1) (91.2%) February (3.1) (91.2%) March (2.8) (82.4%) April 3.4 (1.7) (5.1) (150.0%) May (2.5) (73.5%) June (2.5) (73.5%) July (2.9) (85.3%) August (3.3) (97.1%) September % FY2018 YTD $ 37.6 $ 4.2 $ (33.4) (88.8%) Capital Grant Revenue for the year-to-date through August 2018 of $4.2 million is $33.4 million under budget. Section C Page 5

85 MONTHLY PERFORMANCE REPORT August 2018 Interest & Miscellaneous Revenue Total FY2018 Interest & Miscellaneous Revenue budget is $19.2 million ($ millions) Budget Actual Variance % October (0.1) (8.3%) November % December % January (0.1) (9.0%) February % March % April % May % June % July % August % September % FY2018 YTD $ 14.1 $ 16.6 $ % Composition of Interest & Miscellaneous Revenue Year-to-Date Actual Current Month Actual $ millions % of Total $ millions % of Total Interest Income % % HOT Lanes Revenue % % Inter Government Revenue % % Other % % Total $ % $ % Interest & Misc. Revenue for the year-to-date of $16.6 million through August 2018 is $2.5 million or 17.7% over budget. Section C Page 6

86 FY2018 Annual Operating Budget $ FY2018 YTD Operating Budget $ MONTHLY PERFORMANCE REPORT August 2018 Budget Summary ($ millions) Operating -5.2% Budget Actual $- $110 $220 $330 $440 $550 FY2018 Annual Capital Budget $ FY2018 YTD Capital Budget $ METRORail Completion -92.4% CIP Program -27.7% Budget Actual $- $40 $80 $120 $160 FY2018 Annual Debt Service Budget $ 97.0 FY2018 YTD Debt Service Budget $ 87.5 Debt Service -0.5% Budget Actual $- $30 $60 $90 FY2018 Annual GMP Projected Allocation $ FY2018 YTD GMP Projected Allocation $ GMP Projection 1.3% Projected Allocation $- $55 $110 $165 Section D Page 7

87 MONTHLY PERFORMANCE REPORT August 2018 Operating Expenses Comparison of Budget to Actual for the Month (August 2018) FY18 Annual August August $ Variance % Variance Budget Budget Actual (favorable)/unfavorable Labor & Fringe Benefits $ 357,204,948 $ 31,016,613 $ 29,394,043 $ (1,622,570) (5.2%) Non-Labor 250,358,052 $ 22,752,892 $ 20,439,663 (2,313,228) (10.2%) Subtotal Labor & Non-Labor 607,563,000 53,769,505 49,833,706 (3,935,799) (7.3%) Contingency 12,500, % Total Operating Budget $ 620,063,000 $ 53,769,505 $ 49,833,706 $ (3,935,799) (7.3%) Comparison of Budget to Actual Year-to-Date August 2018 (11 months) FY18 Annual Year-to-Date Year-to-Date $ Variance % Variance Payroll & Benefits Budget Budget Actual (favorable)/unfavorable Wages $ 139,736,148 $ 127,575,285 $ 127,506,330 $ (68,955) (0.1%) Union Fringe Benefits 79,394,061 70,401,026 68,554,769 (1,846,257) (2.6%) Subtotal Union Labor 219,130, ,976, ,061,099 (1,915,212) (1.0%) Salaries and Non-Union Wages 103,956,369 95,496,483 88,464,277 (7,032,206) (7.4%) Non-Union Fringe Benefits 44,747,040 41,129,019 38,548,211 (2,580,808) (6.3%) Subtotal Non-Union Labor 148,703, ,625, ,012,488 (9,613,014) (7.0%) Allocation to Capital & GMP (10,628,670) (9,806,451) (7,736,668) 2,069, % Subtotal Labor and Fringe Benefits 357,204, ,795, ,336,919 (9,458,444) (2.9%) Total Materials & Supplies Services 62,153,696 52,930,141 36,685,756 (16,244,385) (30.7%) Materials and Supplies 30,898,462 27,904,684 28,410, , % Fuel and Utilities 37,347,275 31,590,915 30,897,744 (693,171) (2.2%) 130,399, ,425,740 95,993,917 (16,431,822) (14.6%) Administration Casualty and Liability 4,352,588 4,116,062 4,093,418 (22,644) (0.6%) Purchased Transportation 101,982,281 93,160,631 91,383,464 (1,777,167) (1.9%) Leases, Rentals and Misc. 14,253,834 9,797,801 8,657,032 (1,140,769) (11.6%) Allocation to Capital & GMP - Non-Labor (630,084) (630,084) - 630,084 (100.0%) 119,958, ,444, ,133,914 (2,310,495) (2.2%) Subtotal Non-Labor 250,358, ,870, ,127,832 (18,742,318) (8.6%) Subtotal Labor and Non-Labor 607,563, ,665, ,464,750 (28,200,762) (5.2%) Contingency 12,500, % Subtotal Contingency 12,500, % Total Operating Budget $ 620,063,000 $ 543,665,512 $ 515,464,750 $ (28,200,762) (5.2%) Non-Budgeted Expense Gain/ Loss Disposal - - (931,212) (931,212) 0.0% Grand Total $ 620,063,000 $ 543,665,512 $ 514,533,539 $ (29,131,973) (5.4%) Operating Expenses for the month of August 2018 of $49.8 million are $3.9 million or 7.3% under budget. Operating Expenses year-to-date of $515.5 million through August 2018 are $28.2 million or 5.2% under budget. Section E Page 8

88 MONTHLY PERFORMANCE REPORT August 2018 Major Operating Budget Variance Items - Categories with major variances Expense Type FY2018 Budget FY2018 Actual Payroll & Benefits Union Labor 197,976, ,061,099 $ (1,915,212) Wages & Fringe Benefits - savings from bus operator vacancies offset with workers comp Fiscal Year 2018 $ Variance (under budget) / over budget (4,985,000) Wages & Fringe Benefits - savings from primarily mechanic, technician, cleaners Underrun in health benefit due to lower than expected health care expense Union Vacancies - Fringes driven by underrun in FICA wages (2,976,000) (1,289,000) (1,254,000) Offset by Sick Leave Cash-out 267,000 Union Vacancies - Vacation Buyback 277,000 Pension Union - DC 500,000 Overtime primarily in METRO rail, bus maintenance & public facilities 3,299,000 Overtime in bus transportation to cover routine vacancies 4,050,000 Non-Union Labor Savings in base salaries Savings in healthcare 136,625, ,012,488 $ (9,613,014) (8,987,000) (1,853,000) Offset by Salaried overtime mainly driven by vacancies 1,191,000 Total Materials & Supplies 112,425,740 95,993,917 $ (16,431,822) Services Communications due to underrun in advertising. Facility Maintenance due to underspending in building & grounds maintenance (-$897,000), BOF maintenance cost (-$703,000), custodial services (-$262,000) and security services (-$183,000). Legal mainly due to lower than expected legal fees (-$676,000) and legislative coordination (-$357,000). Operations mainly due to underrun in building & grounds maintenance. Information Technology mainly due to underrun in equipment repairs & maintenance. Finance mainly due to underspending in equipment repairs & maintenance. General underspending in other areas Authority wide not mentioned above Underspending in Contract Management throughout the Authority Underrun in Support services Underspending in education and training throughout the Authority (excludes bus operator and other Operations staff related training) (5,900,000) (2,045,000) (1,033,000) (439,000) (353,000) (192,000) (4,022,000) (1,229,000) (550,000) Authoritywide promotion (237,000) Section E Page 9

89 MONTHLY PERFORMANCE REPORT August 2018 Major Operating Budget Variance Items - Categories with major variances Expense Type FY2018 Budget FY2018 Actual Materials and Supplies Underruns in - Material prices variances on Production/refurbished orders and inventory revaluations mostly for unit overhauls (4,954,000) Minor Tools (339,000) Postage (286,000) Tires & Tubes (231,000) Special office supplies (172,000) Warranty Credits (169,000) Prod/Refurb O settle (159,000) Fiscal Year 2018 $ Variance (under budget) / over budget Offset by miscellaneous overruns in - Engine Cooling System 127,000 Transmission 170,000 Chassis 330,000 Bus Parts - Brakes 308,000 Propulsion 367,000 Parts - Exterior Body and Windows 444,000 Parts 1,272,000 Bus Engines - mostly in Unit Overhaul 1,833,000 Bus Batteries - mostly in Unit Overhaul 1,978,000 Fuel and Utilities Lower than expected charges for routine Telephone Services (683,000) Other Misc expenses lower than expected (479,000) Underrun in Natural Gas (187,000) Underrun in Diesel Fuel (including taxes) mainly due to lower prices per gallon on fuel (186,000) Offset by overruns in - Gasoline 772,000 Administration 106,444, ,133,914 $ (2,310,495) Casualty & Liability Higher than expected subrogation 320,000 Lower than expected vehicle liability and premiums Purchased Transportation Northwest Contract (1,007,000) Vanpool leases underrun due to fuel card transition delay and Harvey impacts (483,000) Regional vanpool underrun (345,000) Leases, Rentals, & Miscellaneous Lower than expected IT Rent Software Payments Other Misc expenses lower than expected Underspending in discretionary items (Travel, Memberships, etc.) and other miscellaneous items (338,000) (501,000) (341,000) (343,000) Section E Page 10

90 MONTHLY PERFORMANCE REPORT August 2018 Total Net Operating Budget / Expenses by Department Authorized EOY Headcount Year-to-Date Current Month-- Department Annual Budget Budget Expense Variance Variance 3,568 Oper, Public Safety, & Cust Service 459,229, ,598, ,967,371 (9,630,708) (221,074) 3,120 Operations 418,255, ,928, ,662,996 (5,265,948) (115,170) 328 METRO Police 26,362,579 24,243,442 21,209,307 (3,034,136) (37,875) 42 Safety 8,690,303 7,987,894 7,335,808 (652,087) (48,063) 69 Customer Services 4,679,935 4,295,092 3,679,147 (615,945) (16,995) 9 EVP Oper Pub Safety & Cust Service 1,240,327 1,142,705 1,080,113 (62,592) (2,972) 240 Administration 57,124,869 51,432,340 48,476,294 (2,956,046) 320, IT 23,452,942 20,779,355 18,595,379 (2,183,975) 261, Human Resources 21,611,236 19,654,828 19,426,573 (228,256) 122, Procurement & Materials 11,118,276 10,147,825 9,622,829 (524,996) (66,526) 5 EVP, Administration 942, , ,514 (18,819) 2, Planning, Engineer, & Construction 42,421,654 38,169,893 33,387,365 (4,782,529) (700,033) 176 Facilities Maint 32,765,829 29,138,515 26,225,261 (2,913,254) (493,270) 37 Planning 8,320,336 7,801,312 6,212,981 (1,588,331) (259,774) 27 Engineering & Cap Project 1,193,758 1,099, ,404 (139,204) 73,538 2 EVP PE&C 141, ,457 (11,282) (141,739) (20,527) 80 Finance 10,853,517 9,918,887 8,796,140 (1,122,747) (169,038) 76 Finance 9,893,311 9,078,796 8,274,591 (804,205) (160,261) 4 CFO 960, , ,549 (318,542) (8,777) 18 Govt & Public Affairs 3,212,781 3,002,906 2,291,543 (711,362) 31, Public Engagement 1,732,244 1,621,150 1,211,355 (409,795) Ridership & Client Services 1,010, , ,416 (226,814) 33,760 3 Gov't Affairs 469, , ,772 (74,754) (2,604) 18 Legal 5,557,433 5,111,391 3,710,442 (1,400,949) (202,238) 35 Communications 18,963,520 13,693,971 6,998,240 (6,695,731) (2,868,634) 3 EVP, Communications 350, , ,741 (55,344) (24,302) 7 Press Office 698, , ,172 (38,132) (3,751) 25 Marketing & Corporate Communication 17,914,464 12,748,581 6,146,326 (6,602,254) (2,840,581) 13 Executive and Board 2,793,507 2,576,320 2,320,744 (255,575) (22,510) 11 Audit 1,573,529 1,383,633 1,178,773 (204,860) (23,021) 4 Office of Innovation 903, , ,887 (447,164) (84,504) Non Departmental 4,929,749 (5,957) - 5,957 2,782 President & CEO Contingency 12,500, Other (MTA Revenue/Expense) ,229 Total Operating Budget 620,063, ,665, ,464,750 (28,200,762) (3,935,799) Section E Page 11

91 MONTHLY PERFORMANCE REPORT August 2018 Total Net Operating Budget / Expenses by Department as of the end of August 2018 vs. June 2017 U August 2018 August Year-to-Date Year-to-Date Department Budget Expense Variance Budget Expense Variance Operations, Public Safety and Customer Service 417,598, ,967,371 (9,630,708) 407,372, ,798,840 (8,573,819) Operations 379,928, ,662,996 (5,265,948) 373,593, ,875,921 (7,717,829) EVP Oper Pub Safety & Cust Serv 1,142,705 1,080,113 (62,592) 1,067,931 1,072,139 4,207 METRO Police 24,243,442 21,209,307 (3,034,136) 21,009,363 21,077,430 68,067 Safety 7,987,894 7,335,808 (652,087) 7,683,094 7,088,859 (594,235) Customer Service 4,295,092 3,679,147 (615,945) 4,018,521 3,684,491 (334,030) Administration 51,432,340 48,476,294 (2,956,046) 49,787,034 45,264,113 (4,522,920) EVP, Administration 850, ,514 (18,819) 580, ,215 (143,170) IT 20,779,355 18,595,379 (2,183,975) 19,746,138 17,611,123 (2,135,015) Human Resources 19,654,828 19,426,573 (228,256) 19,749,429 17,960,675 (1,788,754) Procurement & Materials 10,147,825 9,622,829 (524,996) 9,711,081 9,255,100 (455,981) Planning, Engineering and Construction 38,169,893 33,387,365 (4,782,529) 33,003,260 31,003,880 (1,999,380) EVP PE&C 130,457 (11,282) (141,739) 45,757 55,009 9,253 Engineering & Cap Project 1,099, ,404 (139,204) 485, , ,383 Planning 7,801,312 6,212,981 (1,588,331) 6,230,540 5,581,193 (649,347) Facilities Maintenance 29,138,515 26,225,261 (2,913,254) 26,241,279 24,668,609 (1,572,670) Finance 9,918,887 8,796,140 (1,122,747) 9,568,888 8,485,423 (1,083,465) Finance 9,078,796 8,274,591 (804,205) 8,938,202 8,085,792 (852,410) CFO 840, ,549 (318,542) 630, ,630 (231,056) Gov't & Public Affairs 3,002,906 2,291,543 (711,362) 2,222,633 2,049,695 (172,938) Public Engagement 1,621,150 1,211,355 (409,795) 1,235,878 1,138,154 (97,724) Ridership & Client Services 944, ,416 (226,814) 553, ,379 (3,513) Gov't Affairs 437, ,772 (74,754) 432, ,162 (71,702) Legal 5,111,391 3,710,442 (1,400,949) 3,875,146 4,220, ,578 Communications 13,693,971 6,998,240 (6,695,731) 7,222,990 5,318,235 (1,904,755) EVP, Communications 302, ,741 (55,344) N/A N/A N/A Press Office 643, ,172 (38,132) N/A N/A N/A Marketing & Corporate Communication 12,748,581 6,146,326 (6,602,254) 7,222,990 5,318,235 (1,904,755) Executive & Board 2,576,320 2,320,744 (255,575) 2,625,703 2,386,234 (239,469) Audit 1,383,633 1,178,773 (204,860) 1,421,922 1,251,970 (169,952) Office of Innovation 784, ,887 (447,164) 599, ,283 (65,853) Contingency Non-Departmental (5,957) - 5, (9) Other MTA Revenue / Expense ,462 1,462 TOTAL OPERATING BUDGET $ 543,665,512 $ 515,464,750 $ (28,200,762) $ 517,699,381 $ 499,313,861 $ (18,385,520) Section E Page 12

92 MONTHLY PERFORMANCE REPORT August 2018 Capital, and Debt Service Expenses Budget vs. Actual - Month and Fiscal Year-to-Date ($ millions) Capital Budget METRORail Completion Capital Improvement Program Total Capital FY2018 Annual Month of August 2018 Variance Fiscal Year to Date Variance Budget Budget Actual $ % Budget Actual $ % $ 53.3 $ 4.5 $ 0.3 $ (4.2) (93.3%) $ 48.8 $ 3.7 $ (45.1) (92.4%) $ $ 8.6 $ 21.2 $ % $ $ $ (42.1) (27.7%) $ $ 13.1 $ 21.5 $ % $ $ $ (87.1) (43.4%) METRORail Completion expenses for the year-to-date through August 2018 of $3.7 million are $45.1 million or 92.4% under budget. Other Capital Improvement Program expenses for the year-to-date through August 2018 of $109.9 million are $42.1 million or 27.7% under budget. Debt Service Budget Debt Service FY2018 Annual Month of August 2018 Variance Fiscal Year to Date Variance Budget Budget Actual $ % Budget Actual $ % $ 97.0 $ 8.6 $ 8.7 $ % $ 87.5 $ 87.1 $ (0.4) (0.5%) Debt Service expenses for the year-to-date through August 2018 of $87.1 million is $0.4 million under budget. General Mobility Transfers General Mobility General Mobility Program Projections Projected Funding vs. Actual Allocation - Month and Fiscal Year-to-Date ($ millions) FY2018 Annual Month of August 2018 Variance Fiscal Year to Date Variance Projection Projection Allocation $ % Projection Allocation $ % $ $ 16.3 $ 16.4 $ % $ $ $ % Funds allocated to the General Mobility Fund totaling $164.5 million for the year-to-date through August 2018 are $2.1 million or 1.3% more than the amount projected. Section F Page 13

93 MONTHLY PERFORMANCE REPORT August 2018 Ridership by Service Category YTD % Change Aug-18 Aug-17 Aug-18 Aug-18 Service Category Aug-17 Aug-18 vs. YTD YTD vs. Boardings Boardings Aug-17 Boardings Boardings Aug-17 Fixed Route Services Local Network Local Bus 4,154,607 5,272, % 52,966,316 54,542, % METRORail Red (North) Line 1,058,473 1,329, % 14,267,494 14,316, % Green (East) Line 98, , % 1,157,679 1,436, % Purple (Southeast) Line 105, , % 1,365,648 1,645, % METRORail (all lines) 1,262,004 1,635, % 16,790,821 17,398, % METRORail-Bus Bridge 14,311 10, % 104,474 29,220 (72.0%) METRORail total 1,276,315 1,646, % 16,895,295 17,428, % Subtotal Local Network 5,430,922 6,919, % 69,861,611 71,970, % Commuter Park & Ride 573, , % 7,085,929 7,081,263 (0.1%) Subtotal Fixed Route Service 6,004,616 7,633, % 76,947,540 79,052, % Special Events 882 1, % 228, ,184 (0.4%) Total Fixed Route 6,005,498 7,635, % 77,175,685 79,279, % Customized Bus Services METROLift 146, , % 1,754,658 1,841, % METRO STAR Vanpool 158, , % 1,851,224 1,766,765 (4.6%) Internal Service % % Subtotal Customized Bus 304, , % 3,606,103 3,608, % HOV/HOT Carpools, Vanpools, and Non-METRO Buses 1,929,184 2,524, % 23,542,322 24,408, % Total System 8,239,376 10,522, % 104,324, ,296, % Section G Page 14

94 MONTHLY PERFORMANCE REPORT August 2018 Ridership by Service Category Fixed Route and Total System Ridership FY FY2018 Total System Ridership Millions Fixed Route Ridership FY2017 in Blue FY2018 in Green OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Fixed Route ridership is reported on the same basis as in the National Transit Database The Special Events category of ridership reflects customer service oriented short-term additional motor bus service provided for events at Reliant Park such as football games and RODEO Houston. Total fixed route ridership, excluding special events, for the month of August 2018 of 7.6 million is 1.6 million or 27.1% greater than last year. Total fixed route ridership, excluding special events, for the year-to-date through August 2018 of 79.1 million is 2.1 million or 2.7% greater than last year. METRORail ridership for the month of August 2018 of 1.6 million is 29.0% greater than last year. METRORail ridership year-to-date through August 2018 of 17.4 million is 3.2% greater than last year. Section G Page 15

95 MONTHLY PERFORMANCE REPORT August 2018 Performance Statistics Fiscal Year 2018 Benchmark Met Benchmark Missed Current FY2018 FY2018 Month YTD YTD SAFETY & SECURITY OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Target Actual GOAL Bus Accidents (Includes METROLift) Bus Accidents per 100,000 vehicle miles Rail Accidents Rail Accidents per 100,000 vehicle miles Major Security Incidents - total Major Security Incidents per 100,000 boardings Major Security Incidents - METRO properties Major Security Incidents per 100,000 boardings Current FY2018 FY2018 Month YTD YTD CUSTOMER SERVICE OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Target Actual GOAL Complaint Contacts per 100,000 Boardings < < Commendations , Average Call Center Answer Delay (Sec.) < < 105 Safety & Security The number of bus accidents met the safety goal for both the month and the year-to-date. The number of rail accidents met the safety goal for the month but not the year-to-date. Total major security incidents met the benchmark for both the month and the year-to-date. Major security incidents on METRO properties met the benchmark for both the month or the year-to-date. Customer Service Complaint contacts per 100,000 boardings met the goal for both the month and the year-to-date. The number of commendations met the goal for the month but not the year-to-date. The average call center answer delay did not meet the goal for the month but did for the year-to-date. Section H Page 16

96 Current FY2018 FY2018 Month YTD YTD SERVICE & RELIABILITY OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Target Actual GOAL On-Time Performance MONTHLY PERFORMANCE REPORT August 2018 Performance Statistics Fiscal Year 2018 Benchmark Met Benchmark Missed Local Bus 73.7% 73.7% 74.1% 75.1% 75.4% 74.9% 75.1% 75.1% 76.7% 76.7% 75.6% 75% 75.1% 75% Park & Ride 76.9% 76.4% 75.4% 76.4% 77.1% 76.1% 76.4% 75.7% 77.6% 78.0% 77.7% 0.0% 75% 76.7% 75% Weighted Average Bus 75.0% 74.8% 74.6% 75.6% 76.1% 75.4% 75.6% 75.3% 77.1% 77.2% 76.5% 75% 75.7% 75% METROLift 88.8% 90.9% 91.7% 92.6% 90.9% 89.9% 89.4% 90.9% 91.6% 92.0% 90.1% 0.0% 90% 90.8% 90% Rail - Red Line OTP 78.8% 79.0% 74.6% 87.1% 90.8% 80.3% 92.5% 93.1% 94.4% 93.1% 96.0% 90% 87.8% 90.0% Rail - South East Purple Line OTP 96.6% 98.0% 98.8% 96.9% 98.3% 98.8% 98.1% 97.8% 98.5% 98.1% 99.0% 95% 98.0% 95.0% Rail - East End Green Line OTP 96.3% 97.8% 98.2% 98.4% 98.9% 99.0% 98.3% 97.8% 98.3% 98.8% 99.4% 95% 98.2% 95.0% MDBF (Mean Distance Between Mechanical Failures) - All Buses MDBF (Mean Distance Between Mechanical Failures) - METROLift MDBSI (Mean Distance Between Service Interruptions) - METRORail 10,065 12,490 13,045 12,968 12,651 13,157 13,336 10,187 9,767 8,992 9,574 7,750 11,210 8,814 22,705 28,567 34,535 15,784 24,212 27,678 22,542 20,858 19,845 21,598 24,335 20,000 23,039 20,000 38,547 22,053 18,075 15,575 16,573 19,257 18,946 19,355 18,897 12,453 18,812 15,000 18,578 15,000 Average Peak HOT Lanes Speed (miles per hour) I-45 North HOV I-45 South HOV US-290 HOV US-59 North HOV US-59 South HOV On-Time Performance On-time performance for Local Bus routes met the minimum performance standard for both the month and the year-to-date. On-time performance for Park & Ride routes met the minimum performance standard for both the month and the year-to-date. On-time performance for METROLift met the minimum performance standard for both the month and the year-to-date. METRORail On-Time Performance Rail (red line) met the benchmark for the month but not the year-to-date. Rail (purple line) met the benchmark for both the month and the year-to-date. Rail (green line) met the benchmark for both the month and the year-to-date. Service Reliability The Mean Distance Between Mechanical Failures (MDBF) for All Buses met the minimum performance standards for both the month and the year-to-date. The Mean Distance Between Mechanical Failures (MDBF) for METROLift met the minimum performance standard for both the month and the year-to-date. The Mean Distance Between Service Interruptions (MDBSI) for METRORail met the minimum performance standard for both the month and the year-to-date. HOT Lane Average Speed The average peak speed for all HOT Lanes met the monthly and year-to-date goals. Section H Page 17

97 MONTHLY PERFORMANCE REPORT August 2018 Performance Statistic Definitions Bus and Rail Accidents - An accident is a transit incident with passenger injuries that require immediate medical treatment away from the scene or a collision between a revenue vehicle and an object such that the amount of damage exceeds $1,000. Bus accidents (which include METROLift) and rail accidents are reported separately and in terms of the absolute number of accidents and the relative number of accidents per 100,000 vehicle miles. Rail accidents reflect collisions between METRORail and other vehicles, pedestrians, or bicyclists. This definition has been revised beginning in FY2011 to include pedestrian accidents. Major Security Incidents - The total Major Security Incidents is based on two industry standards: the FBI Uniform Crime Report and the National Transit Database (NTD) Report issued by the Federal Transit Administration (FTA). The eight (8) categories included are: homicide, forcible rape, robbery, aggravated assault, burglary, larceny and theft, motor vehicle theft and arson. This metric is reported both in terms of the absolute number of incidents and the number of incidents per 100,000 boardings. Major Security Incidents - METRO Properties - The total Major Security Incidents - METRO Properties is the number of incidents that occur at Park & Ride lots, Transit Centers, on-board buses and trains and on Light Rail Vehicle (LRV) platforms. This metric is reported both in terms of the absolute number of incidents and the number of incidents per 100,000 boardings. Complaint Contacts - Patrons may contact METRO s Customer Care Center to express dissatisfaction with METRO Operations. Contacts made via telephone and over the internet which result in a complaint record being generated in the Public Comment System are reported as the number of contacts per 100,000 boardings. Commendations - Patrons may contact METRO's Customer Care Center to recognize, compliment or praise a METRO employee or the METRO organization for exemplary work or performance. Contacts made via telephone, internet, or mail which result in a commendation record being generated in the Public Comment System are reported only on the basis of the absolute number of contacts received. Average Call Center Answer Delay - METRO is committed to providing customers with accurate, customer-friendly bus and service information in a timely manner. Customers may obtain bus information over METRO's website and by telephone using an interactive voice response system without speaking to a representative and with no customer wait time. For those customers who prefer to speak with a representative, METRO's goal is to answer their calls in 105 seconds or less. On-Time Performance (OTP) - A local bus is considered on-time if it does not leave early and is within a five (5) minute window after the scheduled departure time. A Park & Ride bus is considered on-time if it does not depart early (except in the morning when a bus can leave from a Park & Ride lot when full) and is within a five (5) minute window after the scheduled departure time, with measurements during peak hours. OTP is measured by the IVOMS system which calculates data to the second, and the five (5) minute window is defined as anything less than six (6) minutes. For METRORail, a train departing from the beginning of the line or arriving at the end of the line less than five (5) minutes after the scheduled time is considered on-time. For METROLift, a trip is considered on-time if the vehicle arrives within 30 minutes of the scheduled pick-up time and no later than the appointment time. Mean Distance Between Mechanical Failures (MDBF) - MDBF reflects any mechanical issue encountered during operation of the vehicle in revenue service that requires a maintenance action resulting from a mechanical failure. Mechanical failures include warranty and fleet defects but exclude accidents. Mean Distance Between Service Interruptions (MDBSI) - Measures total revenue service miles traveled by Light Rail Vehicles (LRVs) between service interruptions that delay LRVs for one minute or more due to mechanical failures. Average Peak HOT Lane Speed - HOT Lane speed is based on an average of measurements conducted during the AM and PM high-volume commuter periods. METRO's 45 mph benchmark is based on Federal statute 23 USC 166: HOV facilities, which sets 45 mph as a minimal acceptable rate of speed. Section H Page 18

98 MONTHLY PERFORMANCE REPORT August 2018 Balance Sheet Assets August 31, 2017 ($) August 31, 2018 ($) Change ($) Cash 10,489,012 5,025,065 (5,463,947) Receivables 130,181, ,895,050 (2,286,799) Inventory 33,488,937 35,240,522 1,751,585 Investments 388,662, ,436,272 40,773,596 Other Assets 8,379,735 5,895,320 (2,484,414) Land & Improvements 351,657, ,567,056 6,909,194 Capital Assets, Net of Depreciation 2,597,156,021 2,503,794,388 (93,361,633) Total Assets 3,520,016,091 3,465,853,674 (54,162,418) Deferred Outflow of Resources 110,710,438 94,282,269 (16,428,168) 3,630,726,529 3,560,135,943 (70,590,586) Liabilities Trade Payables 41,962,883 60,944,149 18,981,266 Accrued Payroll 33,165,389 31,985,746 (1,179,643) Debt Payable 1,246,022,561 1,247,465,920 1,443,359 Debt Interest Payable Pension and OPEB Liabilities 512,821, ,867,678 22,046,494 Other Liabilities 30,578,437 47,966,827 17,388,390 Total Liabilities 1,864,550,456 1,923,230,322 58,679,866 Net Assets - Retained Earnings 1,766,176,073 1,636,905,621 (129,270,452) Total Liabilities and Net Assets 3,630,726,529 3,560,135,943 (70,590,586) Note: - - * A deferred outflow of resources is defined by the Governmental Accountability Standards Board as a consumption of net assets by the government that is applicable to a future reporting period, and a deferred inflow of resources is defined as an acquisition of net assets by the government that is applicable to a future reporting period. The deferred outflow for FY2018 includes [1] Mark-to-Market (MTM) values of outstanding diesel fuel SWAP agreements at the fiscal year end ($3,805,801), [2] Non Union Pension Plan ($37,419,380), [3] Union Pension Plan ($40,135,541), and [4] Bonds ($12,921,547). These items will be recognized as expenses in future periods to which they relate. Section I Page 19

99 Fixed-Route Ridership and Fare Revenue September 2018 Planning, Engineering, & Construction / Finance Jim Archer and Julie Fernandez This briefing will address questions posed during the July 2018 meeting of the Finance and Audit Committee. Topics will include: - Comparison of ridership and fare revenue between June 2018 and June Comparison of ridership between FY2018 year-to-date (October June 2018) and FY2017 year-to-date (October June 2017) - Differences in measurement and reporting of ridership and fare revenue - Trends in fare revenue

100 Finance and Audit Committee September 2018

101 In June 2018, fare revenue decreased by 16.7% compared to June During the same period, fixed-route ridership increased by 0.5%. 2

102 Time Period Factors Boardings June ,058K June ,022K Change +36K Explanation Gain Summer of Fun ELCA Youth Convention New Hope Housing Weekend Loss Calendar Mix ( - 1 weekday, + 1 Saturday) Dump the Pump +201K - 165K 3

103 Time Period Factors Boardings FY2018 (October June 2018) FY2017 (October June 2017) 5,729K 5,918K Change -189K Explanation Gain 222 Grand Parkway, 248 El Dorado Loss Employment relocation [CBD / TMC] Residence relocation to CBD /Midtown Service unreliability Aging demographic Reduced Friday ridership Infrastructure issues Gulf and Katy Freeway corridor ridership shifts to 222 Grand Parkway, 248 El Dorado 4

104 Difference Ridership Fare Revenue Impact of Each Additional Boarding Same Across All Modes +1 boarding = Anywhere from $0 to +$4.50 Ridership and revenue are strongly related, and Changes in both are expressed in percentages BUT The percentages are not exactly comparable more like apples to pineapples 5

105 Fixed-Route Fares (Bus & Train) Non-Fixed-Route Fares Route Guarantees 6

106 June 2018 June 2017 ($ in millions) $5.0 $6.0 Variance Explanation $ % Decrease in Vanpool Revenue -475K 48% Decrease in Fixed-Route Average Fare -150K 15% Route Guarantees Accounting Adjustment -150K 15% Change in Summer of Fun Program -135K 14% Decrease in Park & Ride Revenue -160K 13% Decrease in METROLift Revenue -30K 3% Increase in Mobile Ticketing; Other Factors +100K -7% TOTAL -1M 100% Variance: -$1.0M The increases in ridership in June 2018, compared to June 2017, were almost entirely free fares. 7

107 $0.60 $0.50 $0.40 $0.30 $0.45 Local Bus Average Fare FY17 FY18 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep METRORail Average Fare $0.35 $0.25 $0.15 FY17 FY18 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 8

108 $3.70 Commuter Average Fare $3.50 $3.30 $3.10 $2.90 $2.70 $2.50 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY17 FY18 This pattern shows a clear effect of seasonality as well as a stable trend. 9