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

Transcription

1 FINANCE and AUDIT Thomas C. Lambert President & CEO COMMITTEE MEMBERS Cindy Siegel, Chair Sanjay Ramabhadran Lisa Castañeda 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 Thursday, May 17, 2018 at 2:00 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 Business Plan Financial Parameters A. Smiley 3. Request Board approval of a modification to KPMG s contract to provide independent financial auditing services A. Smiley 4. Request Board approval of a Low or No Emission Bus Program Grant opportunity A. Lyne COMMITTEE APPROVAL 5. Review of possible procurement solicitations M. Kyme BRIEFINGS 6. Monthly Compliance Report J. Garcia 7. Monthly Financial Reports A. Smiley a. CFO Presentation b. Sales Tax Report c. Investment Report d. Debt Report e. Monthly Performance Report 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 April 19, 2018

6 April 2018 Business Plan & Budget Kickoff Present Draft Parameters & Goals May 2018 Midyear Budget Workshop FY2018 Review/ Forecast Finalize Parameters FY2019 Goals Guidance METRO Board June 2018 Proposed Budget Workshop (Draft Capital Budget and Financial Envelope) July 2018 Budget Workshop 5 Year Cash Flow Update Draft CIP and Project Prioritization August 2018 Budget Workshop Presentation of Budgets September 2018 Public Review of Budgets - September 11 Finance & Audit Committee Briefing Public Hearing Board Approval - September 27 March 2018 Capital Budget Guidance April 2018 Operating Budget Guidance May 9 Capital Budget Due July 5 Operating Budget Due METRO Staff 2

7 FY2019 Business Plan Financial Parameters Sales Tax growth will be consistent with Dr. Robert W. (Bill) Gilmer s current growth estimates, reduced by the following annual percentage factors: FY2019: -1.00% No Fixed-Route Fare Increases METRO will present the 5 Year Cash Flow model on a yearly basis, clearly specifying all sources and uses of revenue. (The model will be updated periodically as required) Position METRO for optimum receipt and use of Grants Allocate sufficient resources to operate METRO Core Services Support Financial Sustainability by carefully managing the growth of baseline operating expenses. Fixed-route will be limited to an increase of no more than 2.0% (after adjusting for the Union agreement and non-recurring expenses) and paratransit will be limited to an increase of no more than 3.0%. Upon completion of Capital projects, future Operating costs will be included and will be supported by a Sustainable Revenue Source. Service Improvements or improvements to service quality will require a cost/benefit analysis which will include changes to future operating costs. If included, additional service will be added above the baseline level of expenses. 10 3

8 FY2019 Business Plan Financial Parameters METRO will retain Fund Balances of at least Debt Policy requirements (15% of Operating Expenses) and an additional Operating Reserve as required by the Board (10% of Operating Expenses). When Reallocating or Modifying Budgets within the Board adopted levels, staff will adhere to the following approval levels: Changes up to $250,000: CFO or the Director of OMB Changes between $250,000 and $1,000,000: President & CEO Changes over $1,000,000: Board Administrative or Technical changes: CFO or the Director of OMB Changes within the scope of the adopted budget and do not represent a change in the Authority s work plan or priorities. All budget changes will be reported to the Finance & Audit Committee on a quarterly basis. Any modifications increasing budgets (Budget Amendments) would require Board approval and will adhere to Texas Transportation Code /

9 Annual Business Plan Goals FY2018 Business Plan Goals Attaining Universal Accessibility Improving the Customer Experience Proposed FY2019 Business Plan Goals Attaining Universal Accessibility Improving the Customer Experience Investing in Enhanced Safety Investing in Enhanced Safety Improving Security Improving Security Maintaining a State of Good Repair Planning for the Future Maintaining a State of Good Repair Planning for the Future Marketing our Service Marketing our Service 13 5

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12 Finance and Audit Committee May 2018

13 Purpose Request Board authorization for the President & CEO to modify the existing financial auditing services contract with KPMG LLP by increasing the amount by $175, for a new maximum contract amount not-to-exceed $1,854, The current contract is for five years with an amount not to exceed $1,679, The contract will be completed in March 2019 after the FY2018 audited financial statements are issued. 2

14 Amount Audit Year Comment First year audit following SAP implementation Required FTA report on accounting consistency $70,000 FY2017 One time expenditure* 35,000 FY2018 One time expenditure* Additional single audit testing 20,000 FY2018 Will be required in future contracts Required additional pension testing 10,000 FY2018 Will be required in future contracts New reporting standard for Post Employment Benefits 40,000 FY2018 One time expenditure* Total Amount $175,000 Expenditures not anticipated when the original contract was signed in

15 Rev METRO..., SUMMARY OF PROCUREMENT MODIFICATION No. 001 PROJECT NAME: Financial Auditing Services CONTRACT NO.(S): (formerly CT ) PURPOSE: CONTRACTOR: CONTRACT VALUE: TYPE OF CONTRACT: METHOD OF PAYMENT: Add $175, to Contract to Accommodate Expanded Business Needs KPMG, LLP Refer to Modification Analysis/Mod No. 001 for monetary history/details. Professional Services Lump Sum Invoice PERFORMANCE PERIOD: SMALL BUSINESS PARTICIPATION: 9/26/14-9/30/19 METRO established a 21 % Small Business goal. KPMG, LLP has committed 21 % Small Business participation using the following SBE/DBE subcontractor PRIME: KPMG, LLP 79% Subcontractor(s) Type of Work % Smart Management Services Financial audit services 21% Total Participation 21% BACKGROUND: The current business needs of METRO have made it necessary to acquire additional auditing work. Those business needs include: Transitioning to the new integrated SAP system; Preparing and FTA-required review report on financial information included in the annual National Transit Database Report; Providing technical assistance in implementing several new accounting and financial reporting standards issued by the Governmental Accounting Standards Board; and Performing additional Single Audit work as required; FUNDING: COST/PRICE ANALYSIS: RECOMMENDATION: 100% FY18 Operating budget See attached worksheet It is recommended that the President & CEO authorize the addition of $175, to this contract, increasing the total NTE value of the contract to $1,854,

16 Summary of Procurement - Contract Mod Contract No Page 2 SR. CONTRACTS DMINISTRATOR DATE PR~NAGER DATE DATE DIRECTOR, CONTRACTS I DATE

17 RESOLUTION NO A RESOLUTION AUTHORIZING THE PRESIDENT & CEO TO NEGOTIATE AND EXECUTE A CONTRACT WITH KPMG, LLP TO PROVIDE INDEPENDENT FINANCIAL AUDITING SERVICES; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO is in need of independent financial auditing services to respond to its various accounting and financial reporting requirements established by state and federal law; and WHEREAS, a request for qualifications was issued for these services; and WHEREAS, KPMG, LLP was found to be the most qualified to provide the independent financial auditing services; and WHEREAS, METRO staff recommends that the President & CEO be authorized to negotiate and execute a contract for independent financial auditing services for an amount not- to-exceed $1,700,000. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT Section 1. The Board of Directors hereby authorizes the President & CEO to negotiate and execute a contract with KPMG, LLP for independent financial auditing services for an amount not-to-exceed $1,700,000. Section 2. This Resolution is effective immediately upon passage. PASSED this 22 nd day of May, 2014 APPROVED this 22 nd day of May, 2014 ATTEST: Gilbert Andrew Garcia, CFA Chairman

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19 Finance and Audit Committee May 2018

20 Discretionary grant program sponsored by the Federal Transit Administration (FTA) Created to encourage organizations to purchase or lease low or no emission vehicles including related equipment and facilities Multiple project proposals are allowed 2

21 $84,450,000 available in Fiscal Year 2018 Awards will provide up to 85% funding for the cost of leasing or acquiring a transit bus and up to 90% funding for the cost of leasing or acquiring equipment and facilities June 18, 2018 application deadline 3

22 Refurbishment of the Hiram Clarke Bus Operating Facility to allow maintenance of CNG vehicles inside the facility Project Cost: $2.9M Construction of a fast fill CNG fueling station at the Hiram Clarke Bus Operating Facility Project Cost: $6.8M 4

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24 FY2018 ANTICIPATED PROCUREMENT REPORT Solicitations over $50K May Consent List Q3 NO. 1 PROJECT DESCRIPTION HVAC & Plumbing Repairs for 1900 Main PROCUREMENT METHOD (RFP, RFQ, IFB) ANTICIPATED SMALL BUSINESS GOAL ANTICIPATED ADVERTISEMENT MONTH COMMENTS IFB N/A May 3 year contract BOARD COMMITTEE Capital & Strategic Planning Committee PREVIOUS BOARD COMMITTEE CONCUR Y 2 HVAC Inspections, Repairs & Maintenance for BOF and Rail Facilities IFB 35% May 3 year contract for facilities HVAC Capital & Strategic Planning Committee 3 NW Bus Operating Facility Bus Wash Rehabilitation Project IFB TBD May Bus Wash Rehabilitation Capital & Strategic Planning Committee 4 ROC Yard Track Expansion IFB 35% June Expand storage capacity for rail vehicles Capital & Strategic Planning Committee 5 TMC Unsolicited Proposal RFP N/A June Medical District Development Capital & Strategic Planning Committee 6 Water Treatment Chemicals & Services IFB N/A May 3 year contract Capital & Strategic Planning Committee 7 Smart Cards IFB N/A May 3 year contract Finance & Audit 1 of 1

25 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Monthly Compliance Report AGENDA DATE: DEPARTMENT: Finance & Audit PRESENTER: John arcia, Interim Vice President & Chief Auditor SUMMARY:

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27 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 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

28 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED Special Project - Review of CAF Waivers /31/2014 Procurement 5/31/2018 Seek ratification by the Board of previously approved and executed CAF waiver requests that exceeded $100, Special Project - Controlled Assets Review 1.A 9/30/2015 Finance-Accounting/Controller 8/31/2018 Develop detailed procedures and processes for tracking and accounting for assets identified as controlled items 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 /1/2017 Facility Maintenance 5/31/2018 Implement guidelines and procedures to ensure that badge access is revoked immediately after employee separation. 2

29 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED Special Project - Rail and Bus Accident Corrective Action Tracking /31/2017 Safety 6/30/2018 Enhance bus accident investigation process to capture all necessary accident data to assist Management with the analysis of accident data to identify and correct accident patterns and trends /1/2018 Safety 6/30/2018 Develop process to capture and monitor bus accident corrective actions plans provided to Operations for preventable accidents and communicate status to Management Special Project - Records Retention Controls Planning & Engineering 1.0 4/30/2018 Legal 8/1/2018 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. 3

30 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Audit of Owner Controlled Insurance Program 1.0 6/30/2018 Safety 6/30/2018 Coordinate with the OCIP Administrator to help ensure that all pending items are resolved to close-out the OCIP program in a timely manner Audit of DBE Compliance 1.B 11/1/2018 Procurement 11/1/2018 Develop a guideline that wiill 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 Rail System Safety Program Plan 1.0 5/1/2018 Safety 5/1/2018 METRO will implement an agency-wide hotline which will include a Safety reporting element 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 availabe after feasibility studies completed. 4

31 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Audit of Software Asset Management 1.0 5/1/2019 Information Technology 5/1/2019 IT will identify and select an Information Technology Service Management software package that includes a robust asset management and software license compliance system 2.0 8/1/2019 Information Technology 8/1/2019 IT will 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 IT will implement a periodic comparison of installed software assets to the comprehensive software asset inventory 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. 5

32 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT FY2017 KPMG Management Letter 1.0 8/1/2018 Finance-Accounting/Controller 8/1/2018 Require further training for staff and devote additional resources to ensure the full array of SAP capabilities are utilized /1/2018 Finance-Grant Programs 8/1/2018 Evaluate the processes and systems currently utilized for preparing the National Transit Database (NTD) submissions FTA Drug and Alcohol Compliance Auditing Program Final Audit Report 1.0 6/22/2018 Safety 6/22/2018 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. 6

33 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 2.0 6/22/2018 Safety 6/22/2018 Ensure all new hire safety-sensitive employees receive at least 60 minutes of Drug Awareness training during New Hire Orientation (currently safety-sensitive 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 /22/2018 Safety 6/22/2018 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. 7

34 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 4.0 6/22/2018 Safety 6/22/2018 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. 8

35 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 5.0 6/22/2018 Safety 6/22/2018 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 twenty-four-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. 9

36 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF APRIL 30, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 6.0 6/22/2018 Safety 6/22/2018 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 two-hour 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. 10

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

38 Finance & Audit Committee May 17, 2018

39 YTD cash received is $497.3 million or $10.1 million (2.1%) more than budgeted $33.0 million (7.1%) more than FY2017 Cash received in May 2018 is $69.9 million or $1.7 million (2.5%) more than budgeted $5.2 million (8.1%) more than FY2017 May sales tax revenue is from March sales activity. 2

40 YTD Fare Revenue is $39.1 million or $1.2 million (3.0%) less than budgeted $0.4 million (1.0%) less than FY2017 Fare Revenue in April 2018 is $5.8 million or $0.3 million (5.5%) more than budgeted $0.3 million (5.5%) more than FY2017 3

41 ($ in millions) YTD Variance Explanation ($ in millions) Actual Budget $39.1 $40.3 Variance: -$1.2 Reduction in Average Fare $ (1.48) 123% Reduction in RideSponsor Usage $ (0.66) 55% Ridership Loss - January Ice Storm $ (0.36) 30% Free Student Fares $ (0.21) 18% Reduction in METROLift Revenue $ (0.10) 8% Prior Period Vanpool Revenue $ % Additional Mobile Ticketing Revenue $ % Additional Route Guarantee Revenue $ % Total $ (1.20) 100% 4

42 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 -5.7% $- $50 $100 $150 $200 $250 $300 $350 CIP Program $- $15 $30 $45 $60 $75 $90 $ % FY2018 Annual Debt Service Budget $ 97.0 FY2018 Annual GMP Projected Allocation $ FY2018 YTD Debt Service Budget $ 55.3 FY2018 YTD GMP Projected Allocation $ Budget Actual Projected Allocation 0.9% Debt Service -0.9% GMP Projection $- $10 $20 $30 $40 $50 $60 $- $15 $30 $45 $60 $75 $90 $105 ($ million) 5

43 Fund Beginning Balance, $ millions (3/31/2018) Ending Balance, $ millions (4/30/2018) Earnings Rate Benchmark Rate General $255.7 $ % 1.85% Construction Real Estate General Mobility

44 ($ million) 3/31/18 4/30/18 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,

45 FY2017 FY2018 Change Local Bus 34,288,109 34,492, , % METRORail Service 11,019,134 11,091,220 72, % Local Network 45,307,243 45,583, , % Commuter Park & Ride 4,537,788 4,393,844 (143,944) (3.2%) Fixed Route 49,845,031 49,977, , % Customized Service METROLift 1,110,090 1,126,563 16, % METROStar Vanpool 1,183,807 1,113,414 (70,393) (5.9%) 8

46 Ridership (in millions) Revenue (in millions) Oct Nov Dec Jan Feb Mar Apr $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- Oct Nov Dec Jan Feb Mar Apr FY17 FY18 FY17 FY18 9

47 Metropolitan Transit Authority Sales & Use Tax Report May 2018 Treasury Services 5/9/2018

48 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, $ - $ - $ - $ % $ % JUL MAY $ 56,092, $ 58,486, $ - $ - $ - $ % $ % AUG JUN $ 64,262, $ 68,225, $ - $ - $ - $ % $ % SEP JUL $ 53,786, $ 58,573, $ - $ - $ - $ % $ % TOTAL $ 691,957, $ 729,191, $ 499,347, $ 2,002, $ 497,345, $ 10,109, % $ 32,955, % 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 $ 487,235, $ 464,389, $ 497,345, % 7.10% Treasury Services 5/9/2018 Page 1 of 4

49 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)] % JUNE APR FY '16 $ 51,609, FY'17 $ 53,540, $ 113, $ 53,427, $ 1,817, % JULY MAY FY '16 $ 52,907, FY'17 $ 56,280, $ 188, $ 56,092, $ 3,184, % AUG JUNE FY '16 $ 63,931, FY'17 $ 64,392, $ 130, $ 64,262, $ 331, % SEPT JULY FY '16 $ 53,433, FY'17 $ 54,724, $ 938, $ 53,786, $ 352, % 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, % TOTAL $ 686,271, $ 728,286, $ 3,373, $ 724,913, $ 38,641, % CURRENT MONTH REBATE ACCRUALS Reliant Stadium $ 216, Baybrook MUD $ 121, Total Rebates $ 337, Treasury Services 5/9/2018 Page 2 of 4

50 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 $ - $ - $ - $ - $ - $ - $ - $ - July $ - $ - $ - $ - $ - $ - $ - $ - August $ - $ - $ - $ - $ - $ - $ - $ - September $ - $ - $ - $ - $ - $ - $ - $ - Total $ 499,347, $ 1,054, $ 948, $ 2,002, $ 497,345, $ 948, $ 377,175, $ 119,220, $ 50,331, $ 131, $ 113, $ 244, $ 50,086, $ 113, $ 37,479, $ 6,246, Treasury Services 5/9/2018 Page 3 of 4

51 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: April 2018 $ 56,297, May 2018 $ 58,514, Treasury Services 5/9/2018 Page 4 of 4

52 METRO INVESTMENT REPORT ALL FUNDS April 2018

53 Metropolitan Transit Authority of Harris County Investment Report For month ended April 30, 2018 Portfolio Summary Management Report The following is a summary of METRO's Investment Portfolios: Fund: General Construction Real Estate General Mobili!Y Prior Month End Book Value $256,456,574 $89,158,619 $486,569 $66,902,275 Current Month End Book Value 244,998,323 65,377, ,228 51,584,056 Change ($11,458,251) ($23,780,748) $660 ($15,318,220) Prior Month End Market Value* $255,723,690 $89,158,619 $486,569 $66,902,275 Current Month End Market Value* 244,162,333 65,377, ,228 51,584,056 Change ($11,561,357) ($23,780,748) $660 ($15,318,220) Interest Receivable $2,110,239 $0 $0 $0 Weighted Average Days Outstanding Weighted Average Years Outstanding Recognized Yield 2.05% 1.63% 1.65% 1.65% Benchmark Yield 1.85% 1.63% 1.55% 1.55% Yield Over/ <Under> Benchmark 0.20% 0.00% 0.10% 0.10% TexStar Wtd Avg. Days Outstanding (as of 04/30/18) ** N/A N/A TexDaily Wtd Avg. Days Outstanding (as of 03/31/18) ** 30 N/A All Funds are managed in full compliance with the Pu lie Funds lnve tment Act, the Investment Policy and Strategy of the Metropolitan Transit Authority of Harris County nd un er the s fety parameters set by the Board of Directors. Geor * 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.

54 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of April 30, 2018 Maturity Purch Book Value Market Value No. Description Coupon Rating Date Date Par Cost Price YTM Type 3/31/2018 4/30/2018 3/31/2018 4/30/2018 General Fund Wells Fargo Master Account 5/1/2018 4/30/2018 5,551,725 5,551, NA DDA 14,625,481 5,551,725 14,625,481 5,551,725 Wells Fargo HOT Lanes Account 5/1/2018 4/30/2018 8,819 8, NA DDA 13,208 8,819 13,208 8,819 Wells Fargo Mobile Ticketing 5/1/2018 4/30/ ,000 90, NA DDA 78,460 90,000 78,460 90,000 Wells Fargo METROLift Online Account 5/1/2018 4/30/ NA DDA TexStar Investment Pool AAAm 5/1/2018 4/30/2018 1,665,120 1,665, % LGIP 3,734,822 1,665,120 3,734,822 1,665,120 TexDaily Investment Pool AAAm 5/1/2018 4/30/ ,436,388 39,436, % LGIP 29,909,035 39,436,388 29,909,035 39,436,388 Wells Fargo Institutional Sweep 5/1/2018 4/30/ , , % DSA 360, , , , EAEA3 / Freddie Mac 0.750% AA+/Aaa 4/9/ /16/2016 5,000,000 4,989, % A 4,999,838 Matured/Called 4,999,050 Matured/Called EGG33 / Federal Farm Credit Banks 0.730% AA+/Aaa 5/14/ /16/2016 5,000,000 4,982, % A 4,998,580 4,999,571 4,994,800 4,998, EGG33 / Federal Farm Credit Banks 0.730% AA+/Aaa 5/14/ /16/2016 5,000,000 4,981, % A 4,998,551 4,999,562 4,994,800 4,998,150 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 9,987,649 9,989,143 9,935,600 9,933, EG3A1 / Federal Farm Credit Banks 1.040% AA+/Aaa 4/4/2018 1/23/2017 5,000,000 5,001, % A 5,000,009 Matured/Called 4,999,850 Matured/Called G9UY1 / Freddie Mac 1.000% AA+/Aaa 6/29/2018 1/30/2017 5,000,000 4,994, % A 4,999,017 4,999,348 4,989,600 4,993, A6X44 / Federal Home Loan Bank 1.250% AA+/Aaa 6/29/2018 2/15/2017 5,000,000 5,010, % A 5,001,850 5,001,226 4,993,100 4,995, A4YA4 / Federal Home Loan Bank 1.050% AA+/Aaa 8/15/2018 2/15/2017 7,000,000 6,993, % A 6,998,375 6,998,734 6,976,200 6,981, G0E33 / Fannie Mae 1.125% AA+/Aaa 7/20/2018 2/15/2017 5,000,000 5,002, % A 5,000,568 5,000,413 4,989,000 4,991, GAGM0 / Freddie Mac 1.040% AA+/Aaa 8/24/2018 2/15/2017 5,000,000 4,992, % A 4,998,037 4,998,443 4,983,100 4,986, G9N60 / Freddie Mac 1.000% AA+/Aaa 7/27/2018 2/15/2017 5,000,000 4,993, % A 4,998,610 4,998,966 4,985,950 4,990, GAKF0 / Freddie Mac 1.110% AA+/Aaa 9/12/2018 2/22/2017 5,000,000 4,996, % A 4,999,102 4,999,266 4,982,200 4,984, G0YM9 / Fannie Mae 1.875% AA+/Aaa 9/18/2018 2/28/2017 5,000,000 5,060, % A 5,018,084 5,014,893 4,997,250 4,998,100 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 5,015,212 5,012,463 4,999,800 5,001, EQ1 / Tennessee Valley Authority 1.750% AA+/Aaa 10/15/2018 7/18/2017 5,000,000 5,025, % A 5,011,194 5,009,489 4,991,650 4,990, AAM88 / Federal Home Loan Bank 1.625% AA+/Aaa 1/18/2019 7/18/2017 5,000,000 5,010, % A 5,005,328 5,004,781 4,979,000 4,978, A9AE1 / Federal Home Loan Bank 0.875% AA+/Aaa 10/1/2018 7/18/2017 5,000,000 4,973, % A 4,988,932 4,990,747 4,972,000 4,976, AAV62 / Federal Home Loan Bank 1.270% AA+/Aaa 2/27/2019 7/31/2017 5,000,000 4,993, % A 4,996,362 4,996,691 4,960,350 4,961, EHQF3 / Federal Farm Credit Banks 1.350% AA+/Aaa 1/7/2019 7/31/2017 5,000,000 5,000, % A 5,000,509 5,000,455 4,976,300 4,967, EADZ9 / Freddie Mac 1.125% AA+/Aaa 4/15/2019 8/16/2017 5,000,000 4,982, % A 4,989,318 4,990,164 4,946,750 4,944, G0J53 / Fannie Mae 1.000% AA+/Aaa 2/26/2019 8/16/2017 5,000,000 4,973, % A 4,984,280 4,985,705 4,947,600 4,950, ABQ25 / Federal Home Loan Bank 1.360% AA+/Aaa 3/29/2019 9/18/2017 5,000,000 4,997, % A 4,998,340 4,998,477 4,959,650 4,959, EHJG9 / Federal Farm Credit Banks 1.400% AA+/Aaa 5/15/2019 9/28/2017 5,000,000 4,993, % A 4,995,555 4,995,881 4,958,650 4,950, X72S2 / Federal Home Loan Bank 1.538% AA+/Aaa 5/15/2019 9/29/2017 5,000,000 5,312, % A 5,215,830 5,199,999 5,176,200 5,156, EHZF3 / Federal Farm Credit Banks 1.375% AA+/Aaa 6/19/ /21/2017 5,000,000 4,972, % A 4,978,341 4,979,805 4,945,400 4,944, FC2 / World Bank 1.250% AA+/Aaa 4/26/ /21/2017 5,000,000 4,962, % A 4,971,613 4,973,796 4,948,000 4,945, EAEB1 / Freddie Mac 0.875% AA+/Aaa 7/19/ /21/2017 5,000,000 4,928, % A 4,944,085 4,947,624 4,914,150 4,910, EGFU4 / Federal Farm Credit Banks 1.210% AA+/Aaa 6/20/ /21/2017 5,000,000 4,955, % A 4,965,290 4,967,630 4,941,000 4,933, EAEB1 / Freddie Mac 0.875% AA+/Aaa 7/19/ /22/2017 5,000,000 4,924, % A 4,940,720 4,944,471 4,914,150 4,910, G0N33 / Fannie Mae 0.875% AA+/Aaa 8/2/ /20/2017 5,000,000 4,920, % A 4,934,215 4,938,259 4,910,100 4,905, A8Y72 / Federal Home Loan Bank 0.875% AA+/Aaa 8/5/2019 1/3/2018 6,000,000 5,901, % A 5,916,162 5,921,284 5,892,180 5,886, F62 / US Treasury Note 1.500% AA+/Aaa 10/31/2019 2/13/2018 5,000,000 4,950, % T 4,954,229 4,956,604 4,941,600 4,932, FQ1 / World Bank 1.200% AA+/Aaa 9/30/2019 2/13/2018 6,000,000 5,910, % A 5,917,623 5,922,141 5,901,540 5,890, EJAK5 / Federal Farm Credit Banks 2.010% AA+/Aaa 9/25/2019 2/13/2018 5,000,000 4,993, % A 4,994,239 4,994,558 4,986,400 4,971, F62 / US Treasury Note 1.500% AA+/Aaa 10/31/2019 2/16/2018 4,000,000 3,954, % T 3,957,680 3,959,876 3,953,280 3,945, G0ZY2 / Fannie Mae 1.750% AA+/Aaa 11/26/2019 3/21/2018 5,000,000 4,953, % A 4,954,356 4,956,623 4,958,550 4,945,700 Total General Fund 256,456, ,998, ,723, ,162,333 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

55 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of April 30, 2018 Maturity Purch Book Value Market Value No. Description Coupon Rating Date Date Par Cost Price YTM Type 3/31/2018 4/30/2018 3/31/2018 4/30/2018 Construction Fund Sales & Use Tax Bonds DSR (TexStar) AAAm 5/1/2018 4/30/ ,274,826 18,274, % LGIP 18,250,369 18,274,826 18,250,369 18,274,826 Contractual Obligations DSR (TexStar) AAAm 5/1/2018 4/30/2018 7,649,612 7,649, % LGIP 7,639,375 7,649,612 7,639,375 7,649,612 Interest & Sinking Fund (2009 & 2010) (TexStar) AAAm 5/1/2018 4/30/2018 3,032,403 3,032, % LGIP 4,348,868 3,032,403 4,348,868 3,032,403 Interest & Sinking Fund 2011A (TexStar) AAAm 5/1/2018 4/30/2018 3,211,506 3,211, % LGIP 9,583,989 3,211,506 9,583,989 3,211,506 Interest & Sinking Fund 2011B (TexStar) AAAm 5/1/2018 4/30/ % LGIP 180, , Interest & Sinking Fund 2014 (TexStar) AAAm 5/1/2018 4/30/2018 3,489,526 3,489, % LGIP 4,748,870 3,489,526 4,748,870 3,489,526 Interest & Sinking Fund 2015A (TexStar) AAAm 5/1/2018 4/30/2018 7,232,617 7,232, % LGIP 6,282,488 7,232,617 6,282,488 7,232,617 Interest & Sinking Fund 2015B (TexStar) AAAm 5/1/2018 4/30/2018 2,156,838 2,156, % LGIP 2,932,193 2,156,838 2,932,193 2,156,838 Interest & Sinking Fund 2016A (TexStar) AAAm 5/1/2018 4/30/2018 3,809 3, % LGIP 2,633,290 3,809 2,633,290 3,809 Interest & Sinking Fund 2016B (TexStar) AAAm 5/1/2018 4/30/ % LGIP 520, , Interest & Sinking Fund 2016C (TexStar) AAAm 5/1/2018 4/30/2018 8,352,374 8,352, % LGIP 7,385,230 8,352,374 7,385,230 8,352,374 Interest & Sinking Fund 2016D (TexStar) AAAm 5/1/2018 4/30/2018 7,764 7, % LGIP 1,094,357 7,764 1,094,357 7,764 Interest & Sinking Fund 2017A (TexStar) AAAm 5/1/2018 4/30/ % LGIP 601, , Interest & Sinking Fund 2017B (TexStar) AAAm 5/1/2018 4/30/2018 2,927 2, % LGIP 2,023,785 2,927 2,023,785 2,927 Interest & Sinking Fund 2017C (TexStar) AAAm 5/1/2018 4/30/ , , % LGIP 355, , , ,984 Proceeds Fund 2014 (TexStar) AAAm 5/1/2018 4/30/2018 9,916,732 9,916, % LGIP 9,903,461 9,916,732 9,903,461 9,916,732 Proceeds Fund 2017B (TexStar) AAAm 5/1/2018 4/30/2018 1,761,070 1,761, % LGIP 10,618,581 1,761,070 10,618,581 1,761,070 COI Fund 2017AB (TexStar) AAAm 5/1/2018 4/30/ % LGIP COI Fund 2017C (TexStar) AAAm 5/1/2018 4/30/ % LGIP 55,889 55,889 Total Construction Fund 89,158,619 65,377,871 89,158,619 65,377,871 General Mobility Fund TexDaily Investment Pool GMP AAAm 5/1/2018 4/30/ ,584,056 51,584, % LGIP 66,902,275 51,584,056 66,902,275 51,584,056 Total General Mobility Fund 66,902,275 51,584,056 66,902,275 51,584,056 Real Estate Fund TexDaily Investment Pool Real Estate AAAm 5/1/2018 4/30/ , , % LGIP 486, , , ,228 Total Real Estate Fund 486, , , ,228 Grand Total All Funds 413,004, ,447, ,271, ,611,488 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

56 Description Metropolitan Transit Authority of Harris County Texas General Mobility Escrow Activity Summary As of April 30, 2018 FY2018 Year to Date Escrow Disbursements Interest to Interest Earned Escrow Funding from Escrow General Fund on Escrow Funds Balance Apr-18 Escrow Balance Forward $ 89,210, $ (97,692,083.99) $ (1,184,447.10) $ 479, $ 66,902, Apr-18 Net Sales Tax Received [((Net Sales Tax X 25%) - FY2014 Apr GMP) / 2 ] + FY2014 Apr GMP [(($55,035, X 25%) - $12,400,142.45) / 2 ] + $12,400, ,079, ,981, Corrected prior entry errors (includes City of Houston) 79,981, Apr-18 Apr-18 Apr-18 Apr-18 City of Houston See attached for details (26,902,890.10) 53,078, Harris County See attached for details 53,078, City of Katy, Humble & Missouri City Monthly Congestion Mitigation and Traffic Management (1,200,409.23) 51,878, City of Bellaire, Hedwig Village, Hunters Creek, Southside Place, Spring Valley & West University Place Monthly Congestion Mitigation and Traffic Management (289,996.10) 51,588, Apr-18 Interest Activity (82,803.46) 78, ,584, Apr-18 Escrow - Fiscal Year to Date $ 102,290, $ (126,085,379.42) $ (1,267,250.56) $ 557, $ 51,584,055.69

57 General Mobility Program Political Jurisdictions of Projects Funded in April 2018 Invoiced Council City of Houston Projects Amount District 19th Pd: EL Dorado Boulevard $ 5,216, C 16th Pd: Traffic Signal Rebuild Package #10 $ 2,942, Various 19th Pd: Special City Project - Overlay $ 2,849, All 19th Pd: Safe Sidewalk Program Work $ 2,331, Various 19th Pd: Safe Sidewalk Program Work $ 2,310, Various 19th Pd: Aldine Westfield $ 1,980, TBD 18th Pd: Traffic Management Program Construction $ 1,034, Various 18th Pd: Fulton Street $ 1,025, H 19th Pd: Concrete Street Repair Program $ 1,004, All 19th Pd: Traffic Signal Maintenance Extended $ 817, All 19th Pd: Sign Maintenance Program $ 612, All 18th Pd: West Alabama $ 606, C 19th Pd: Collingsworth Drive $ 554, TBD 16th Pd: Forest Hill $ 544, TBD 19th Pd: Greenbriar Drive Bridge $ 489, I 18th Pd: Safe Sidewalk Program Work $ 486, Various 18th Pd: Westheimer / Elgin: Montrose to Main Paving & Drainage $ 396, C 18th Pd: Private Subsurface Utility Coordination $ 360, Various 19th Pd: Ardmore Street Bridge $ 329, I 19th Pd: Street Surface Assessment Vehicle $ 273, Various 19th Pd: Bridge Replacement / Special Projects $ 184, Various 18th Pd: Homestead Road Grade Separation $ 160, TBD 18th Pd: Market Street RR Agreement $ 128, TBD 19th Pd: Pavement Marking Maintenance Program $ 105, All 18th Pd: US 290 Project $ 85, Various 18th Pd: Central Business District Communication System $ 66, TBD 18th Pd: Safe Sidewalk Program Testing $ 3, Various 18th Pd: Concrete Panel Replacement $ 1, Various 18th Pd: Safe Sidewalk Program Work $ 1, Various $ 26,902,890.10

58 METRO DEBT REPORT April 2018

59 Metropolitan Transit Authority of Harris County Texas Debt Report As of April 30, 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 $ 11,381 $ 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 $ 52,575,000 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 $ 149,392 $ 67,586,043 $ 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 $ 1,013,836 $ 785,592,085 $ 450,055,750 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 $ 190,378 $ 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 $ 44,505,000 $ 29,995, % October 18, 2017 November 1, 2025 $ 332,004 $ - $ 35,039,618 $ 29,995,000 Total METRORail Expansion $ 971,264, % $ 5,015,780 $ 957,740 $ 1,019,929,390 $ 693,224,250 Total Debt $ 1,757,060, % $ 16,221,132 $ 1,971,576 $ 1,805,521,476 $ 1,143,280,000