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

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1 Thomas C. Lambert President & CEO Notice and Agenda of a Meeting of the Finance and Audit Committee of the METRO Board of Directors FINANCE and AUDIT COMMITTEE MEMBERS Cindy Siegel, Chair Lisa Castañeda Terry Morales Sanjay Ramabhadran Troi Taylor Metropolitan Transit Authority of Harris County, Texas Lee P. Brown METRO Administration Building 1900 Main Street, 2 nd Floor Board Room, Houston, TX Thursday, January 17, 2019 at 10:00 a.m. ACTIONS 1. Request Board approval to accept the monthly committee reports, including the investment report A. Smiley 2. Request Board approval for the President & CEO to direct grant actions as necessary for Section 5307 Urbanized Area Formula, 5339 Bus and Bus Facilities, and 5337 State of Good Repair Grant Program of Projects to METRO, Harris County, and Fort Bend County A. Lyne BRIEFINGS 3. Monthly Compliance Report J. Garcia 4. Monthly Financial Reports A. Smiley a. CFO Presentation b. Sales Tax Report c. Investment Report d. Debt Report e. Monthly Performance Report f. Fuel Hedge Report 5. Sales & Use Tax Series 2018A Contractual Obligations Issuance Update A. Smiley GRANT NOTIFICATION 6. Notification of submittal of a grant application for the TCEQ Texas Clean Fleet Program A. Lyne 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.

2 REQUEST FOR BOARD ACTION SUBJECT: Approval of Monthly Financials PAGE: 1 of2 ORIGINATION DATE: METRO AGENDA ITEM#: AGENDA MONTH: FROM (Department or other point of origin): DATE AND IDENTIFICATION OF PRIOR Finance AUTHORIZING ACTION: Monthly Financial Reports ORIGINATOR: Chief Financial Officer, Arthur C. Smiley Ill RECOMMENDATION: (Agenda Summary) Requesting Board approval accepting the monthly committee reports, including investment reports. AW ARD AMOUNT: Contract will be for a not-to-exceed amount of: $ (Base Contract) Estimated to be approved in future bud2ets Budgeted Dept. Grant Previous FY Budgeted FY2019 Out Years Funding Expenditures FY2018 Source Name YIN Budgeted # Montbs 0 Budgeted # Months 0 Budgeted# Months 0 Hudgel<d # Months 0 Total Operating No 0.00 Capital No 0.00 General Mobility No 0.00 Debt Service No 0.00 TOTAL <J.oo 0.00 I I BUDGET NOTES: Funding for future periods (if any) will be included in future budget submissions. SPECIFIC EXPLANATION: Chie 1 Fiii f e m- "- /I '\, 1i -t I SMALL BUSINESS PARTICIPATION (to he completed h y Small Business): Chief Procurement Officer: Small Business Approval: / Dept. Head / XC( t ve I I \' h1 ifc id nt: C -- 1/\T,, r-1/v '0 JSl!! nalur Coordination to Complete Action: D r REQUIRED AUTHORIZATION O Administration Audit Planning, Engineering & Construction O D Government & Public Affeirs Legal Public s roty, Cust Svc & Or,s./ n C- 9 r, : II - V / anaturc President & CEO: Signature Si gn ature

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5 ATTACHMENT 1 METRO PROPOSED PROJECT LIST: 2018 FTA $$ Local $$ Total $$ Comments SECTION 5307 URBANIZED AREA FORMULA PROGRAM Operations Support Bus/Rail Capitalized Maintenance 63,714,064 15,928,516 79,642,580 METROLift ADA Support 8,064,000 2,016,001 10,080,001 FTA $$ Local $$ Total $$ TOTAL 71,778,064 17,944,517 89,722,581 SECTION 5339 BUS AND BUS FACILITIES Universal Accessibility Universal Accessibility 9,463,799 2,365,950 11,829,749 FTA $$ Local $$ Total $$ TOTAL 9,463,799 2,365,950 11,829,749 SECTION 5337 STATE OF GOOD REPAIR Operations Support Rail Cap Maintenance 6,859,331 1,714,833 8,574,164 FTA $$ Local $$ Total $$ Total 6,859,331 1,714,833 8,574,164

6 ATTACHMENT 2 FORT BEND COUNTY PROPOSED PROJECT LIST: 2018 FTA $$ Local $$* Total $$ Comments SECTION 5307 URBANIZED AREA FORMULA PROGRAM Capital Purchase Rolling Stock 294,413 58, ,413 ITS Projects & Software Maintenance 397,446 79, ,446 Facility Construction 401,166 80, ,166 Capital Cost of Contracting 1,506, ,228 1,506,138 Subtotal 2,599, ,833 2,599,163 Scheduling Software/Web Portal/IVR/ Upgrade Bus Video System/Tablets Cost of Capital Contracting for demand response, commuter and point deviation services Planning General Transportation Planning 386,166 77, ,166 Salary, Fringe General Development Consultants 250,000 50, ,000 Consultants Rail Study 250,000 50, ,000 Rail Study Phase IV Subtotal 886, , ,166 Operating Cost of Contracting Operating 423,283 2,047,566 2,259,207 Demand Response and Commuter Contract Service Fuel 171, , ,469 Fuel Salary/Fringe 283,936 1,373,498 1,515,466 Salary/Fringe General Operating Expenses 122, , ,816 Management/Marketing/Insurance etc. Subtotal 1,000,863 4,841,527 5,341,958 TOTAL 4,486,192 5,538,593 8,827,287 SECTION 5339 BUS AND BUS FACILITIES Vehicle Replacements Vehicle Replacements 892, , ,470 FTA $$ Local $$ Total $$ TOTAL 892, , ,470 * Local match will be provided by local funds and/or Transportation Development Credits (TDC).

7 ATTACHMENT 3 HARRIS COUNTY PROPOSED PROJECT LIST: 2018 FTA $$ Local $$* Total $$ Comments SECTION 5307 URBANIZED AREA FORMULA PROGRAM Capital Capital Cost of Contracting 961, ,939 1,270,511 La Porte Shelter, Sidewalk & Street Light Program 519, , ,000 Baytown Express P&R Construction 790, , ,884 0 Subtotal 2,271, ,460 2,585,395 Cost of Capital Contracting for Baytown to Crosby, Baytown Express, La Porte fixed route service and demand response service Planning Planning, Grants Management, Training 920, ,000 1,125,000 Planning activities Subtotal 920, ,000 1,125,000 Operating Fixed Route and Demand Response Service; Software/Licensing Renewals 1,191,865 1,141,471 1,872,740 Subtotal 1,191,865 1,141,471 1,872,740 Operating assistance for Baytown service and La Porte fixed route service; Operating assistance for RIDES and demand response service; Project Management expenses TOTAL 4,383,845 2,019,931 5,583,135 Note FTA Operating Cap 1,177,453 FTA Operating Cap Remaining 14,412 * Local match will be provided by local funds and/or Transportation Development Credits (TDC).

8 Board of Directors Finance and Audit Committee Meeting January 2019

9 Urbanized Area Formula $77,416,416 $80,648, State of Good Repair $ 5,676,976 $ 6,859, Bus and Bus Facilities $ 7,543,669 $10,356,269 As the designated recipient of these federal funds, all 5307 Urbanized Area, 5337 State of Good Repair and 5339 Bus and Bus Facilities funds have been distributed to METRO 2

10 Section 5307 formula funds are federal financial resources that can be used for transit capital and operating assistance (fixed route operators of less than 100 buses in peak service) in the urbanized area (UZA) as well as for transportation related planning Funds allocation is dependent on factors relating to: Population & population density from the 2010 Census* Bus revenue miles operated* Amount of fixed guideways & service operated on them* Low income population* Operating Expenses* Passenger Miles* *All numbers are from the National Transit Database (NTD) 3

11 METRO has shared 5307 funds with the other two eligible transit service operators within the Houston UZA: Fort Bend Transit Harris County Transit METRO s Program Management Plan was adopted by the Board in October

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16 1998 TRANSCO Formed 1999 Red Cross Contract Medical Trips 2000 County Parks Department 1 Vehicle 2001 Connect Transit Service Area Expansion 2003 Transportation Coordination Plan Purchase of Service Funding 2004 County Wide Transportation Study 2005 Rural Transit District Formed Creation of Transportation Department Urbanized Area Funding 9

17 Fort Bend County Transit Annual Passenger Trips 450, , , , , , , ,000 50,000 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Demand Response 3,989 31,004 50,520 62,866 72, , , , , , , , ,866 Fixed Route ,925 6,723 8,485 10,618 11,480 7,610 9,159 10,477 Commuter 69,909 87, , ,302 98, , , , , , , , ,270 Total Trips 73, , , , , , , , , , , , ,613 10

18 1950 to 2007 Harris County Social Services provides services in unincorporated Harris County; 1999 Creation of Harris County Transportation Coordinating Council (HCTCC) consisting of representatives of the City of Houston, H-GAC, METRO, United Way, Harris County, and 17 other United Way funded agencies Harris County Judge establishes the Harris County Coordinated Transportation Program (Now RIDES) and is designated as lead agency for HCTCC; 2003 Harris County Rides begins Pilot Project funded by H-GAC; 2007 Harris County Community Services Department creates Harris County Transit Services and implements the Baytown Express Park & Ride service as a Pilot Project. METRO performs services under a contract with the County; 2007 Harris County Social Services programs merged with Harris County Transit Services and Harris County became a Section 5307 Recipient; 2008 Harris County Transit Services begins Fixed Route Service in The City of Baytown; 2009 Harris County RIDES transferred from the County Judges Office to Harris County Transit Services; 2010 Harris County Transit Services extends services to the City of LaPorte and the communities of Crosby, McNair, The Highlands and Barrett Station Harris County Transit extends Fixed Route Service hour from 6AM to 6PM 2014 Harris County Transit implements the new RIDESYSTEM mobile app Year Anniversary for Harris County RIDES Program 11

19 Harris County Transit Annual Passenger Trips 250, , , ,000 50,000 0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Fixed Route 4,856 22,852 35,547 62,733 77,722 70,229 82,341 89,344 93,357 90, ,279 Baytown P&R Trips 32,831 27,547 27,434 27,171 27,274 30,588 30,056 29,049 26,580 19,182 17,172 Demand Response 80,087 65,408 75,985 60,677 67,365 77,153 76,947 90,042 90,845 94,844 96,489 Total Trips 117, , , , , , , , , , ,940 12

20 Projects are selected based on eligible activities outlined in federal guidance Board approval of the program of projects is required by FTA All projects must be included in the local and state Transportation Plans 13

21 METROLift ADA Service Support $ 8,064,000 Capitalized Bus and Rail Maintenance $63,714,064 Total $71,778,064 14

22 Cost of Capital Contracting $ 1,506,138 Replacement Vehicles $ 294,413 Admin Ops Facility $ 401,166 Software Upgrades $ 397,446 Planning & Development $ 886,166 Operating Assistance $ 1,000,863 Total $ 4,486,192 15

23 Cost of Capital Contracting $ 961,896 La Port Shelter, Sidewalk & Lighting $ 519,200 Baytown Express P&R Construction $ 790,884 Planning, Grant Management, Training $ 920,000 Operating Assistance Fixed Route and $ 1,191,865 Total $ 4,383,845 16

24 Section 5337 formula funds are federal financial resources that can be used to maintain fixed guideway and high intensity motor bus systems (excludes HOT Lanes beginning in 2016) that have been operating for at least seven years in a state of good repair in the UZA. HOT Lanes have been excluded since The fund allocation is dependent on factors relating to: Amount of high intensity motor bus miles and service operated on them* Amount of high intensity fixed guideways & service operated on them* * All numbers are from the National Transit Database (NTD) 17

25 Capitalized Rail Maintenance $ 6,859,331 Total $ 6,859,331 18

26 Section 5339 formula funds are federal financial resources that can be used for bus-related capital projects in the UZA Fund allocation is dependent on factors relating to: Population & population density from the 2010 Census* Bus revenue miles operated* Operating Expenses* Passenger Miles* * All numbers are from the National Transit Database (NTD) 19

27 Universal Accessibility $9,463,799 Total $9,463,799 20

28 Vehicle Replacements $ 892,470 Total $ 892,470 21

29 Assigning the funds to other projects will have no effect on the total amount of funds received; however, failure to approve the program of projects could delay project implementation and reimbursement of eligible grant costs by the FTA. 22

30 SUBJECT: AGENDA ITEM #: Monthly Compliance Report AGENDA MONTH: DEPARTMENT: Audit : PRESENTER: John Garcia, Interim Vice President & Chief Auditor Form #: EXO-FOR-001 Current Version: 1.0 Effective as of: 09/25/18 THIS IS A CONTROLLED DOCUMENT / VERIFY VERSION LEVEL PRIOR TO USE Current Version Due for Review on: 09/01/19

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32 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 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 PE & C- Service Planning 7/31/2019 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 9/30/2019 Continue negotiations with the City of Houston regarding the fee for plan review services. 1

33 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 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 2/1/2020 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 Owner Controlled Insurance Program 1.0 6/30/2018 Safety 6/30/2019 Coordinate with the OCIP Administrator to help ensure that all pending items are resolved to closeout the OCIP program in a timely manner Audit of Bus Operator Training /30/2018 Operations-Transportation 3/31/2019 Develop written procedures for re-certification training /30/2018 Operations-Transportation 3/31/2019 Develop written procedures outlining the process for "Return to Work" training 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 /30/2018 PE & C-Engineering 9/30/2019 Perform a records retention review of records currently stored on-site. 2

34 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED Compliance Review - Audit of Bus Operator Moving Violations /31/2017 Human Resources- Labor Relatio 12/31/2019 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 12/31/2019 Revise The DWI/DUI and Other Criminal Offense Guideline Records Management & Storage 1.C 12/31/2018 Legal 6/30/2019 The Records Management Officer will perform oneon-one training of the Records Coordinators to update the File Plans, identify records for destruction and provide guidance on program requirements as necessary METROLift Program Administration and FTA Compliance /31/2018 Operations-Transportation 2/1/2019 Update current procedures to address the requirements to retain a summary of complaints for five years and update the METROLift Program Guide to include information related to the Info-Notification System. 3

35 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED PAST ORIGINAL DUE DATE EXTENSION APPROVED Follow-up FTA FY2018 Triennial Review /12/2018 Customer Service & Sales 2/11/2019 Submit to the Regional Civil Rights Officer information for the public on filing an ADA complaint and documentation that the information has been made available to the public /12/2018 Customer Service & Sales 2/11/2019 Submit to the Regional Civil Rights Officer a procedure for retaining copies of ADA complaints for at least one year and summaries of ADA complaints for at least five years and provide documentation of implementation including evidence of tracking ADA complaints /12/2018 Operations-Transportation 2/11/2019 METRO must submit to the Regional Civil Rights Officer a plan for retrofitting cars to implement between-car barrier requirements or another justified solution. 4

36 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT Audit of Bus Operator Training 3.0 2/28/2019 Operations-Operations Training 2/28/2019 Develop a standardized training curriculum for BOF management 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. 5

37 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 3.0 8/1/2019 Information Technology 8/1/2019 Implement a periodic comparison of installed software assets to the comprehensive software asset inventory Records Management & Storage 1.A 6/1/2019 Legal 6/1/2019 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 6/1/2019 Legal 6/1/2019 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. 6

38 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 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. 7

39 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT METROLift Program Administration and FTA Compliance 2.0 3/31/2019 Operations-Transportation 3/31/2019 Implement procedures to revise the METROLift Interview Summary Form to address observations identified. The form should be revised to document an assessment of Category 3 eligibility. Also ensure evaluators consistently complete their assessment for the various areas required on the form. 3.A 3/31/2019 Operations-Transportation 3/31/2019 Develop follow up procedures to help ensure customer comments and/or complaints are addressed in a timely manner. Revise the METROLift Program Guide to direct customers on how to file complaints related to the Americans with Disabilities Act. 3.B 3/31/2019 Operations-Transportation 3/31/2019 Implement controls to help ensure First Transit responds to comments and complaints in accordance with the approved contract. 8

40 AUDIT DEPARTMENT CORRECTIVE ACTION COMPLIANCE REPORT AS OF December 31, 2018 REPORT NAME COMMENT NUMBER ORIGINAL DUE DATE RESPONSIBLE AREA CURRENT DATE DUE ACTION REQUIRED CURRENT 4.0 3/31/2019 Operations-Transportation 3/31/2019 Develop procedures to help ensure all appeals hearing files consistently include sufficient, complete and detailed documentation to support the decision made by the Appeals Hearing Officer. Additionally, remove all references to an appeals committee from all forms. 9

41 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 - Fuel Hedge Report

42 Finance & Audit Committee January 17, 2019

43 YTD cash received is $246.2 million or $5.5 million (2.3%) over estimates $8.4 million (3.5%) more than FY2018 $80.0 $70.0 $60.0 millions $50.0 $40.0 $30.0 $20.0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY2019 Budget FY2019 Actual FY2018 Actual Cash received in January 2019 is $59.6 million or $1.1 million (1.8%) over estimates $1.1 million (1.8%) less than FY2018 January sales tax revenue is from November sales activity 2

44 YTD Fare Revenue is $16.6 million or $0.4 million (2.4%) less than budgeted $0.9 million (5.7%) more than FY2018 $6.5 $6.0 millions $5.5 $5.0 $4.5 $4.0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY2019 Budget FY2019 Actual FY2018 Actual Fare Revenue in December 2018 is $5.0 million or On budget for the month $0.1 million (2.0%) more than FY2018 3

45 $10.0 YTD Fare Revenue by Mode (in millions) $8.0 $6.0 $4.0 $2.0 $0.0 Local Network Commuter Vanpool METROLift FY2018 FY2019 Includes paid fares and route guarantees. Allocation of farebox cash is estimated. 4

46 FY2019 Annual Operating Budget $ FY2019 Annual Capital Budget $ FY2019 YTD Operating Budget $ FY2019 YTD Capital Budget $ 54.8 Budget Actual Budget Actual METRORail Completion -90.4% Operating -6.5% CIP Program -20.8% $- $40 $80 $120 $160 $- $12 $23 $35 $46 FY2019 Annual Debt Service Budget $ FY2019 Annual GMP Projected Allocation $ FY2019 YTD Debt Service Budget $ 26.5 FY2019 YTD GMP Projected Allocation $ 44.1 Budget Actual Projected Allocation 1.1% Debt Service -7.9% GMP Projection $- $7 $14 $21 $28 ($ million) $- $12 $23 $35 $46 5

47 Fund Beginning Balance, $ millions (11/30/2018) Ending Balance, $ millions (12/31/2018) Earnings Rate Benchmark Rate General $249.6 $ % 2.34% Construction Real Estate General Mobility

48 ($ million) 11/30/18 12/31/18 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 $ 1,101.2 $ 1,

49 FY2018 FY2019 Change Local Bus 15,257,160 15,085,740 (171,420) (1.1%) METRORail Service 4,734,692 4,562,803 (171,889) (3.6%) Local Network 19,991,852 19,648,543 (343,309) (1.7%) Commuter Park & Ride 1,836,869 1,777,958 (58,911) (3.2%) Fixed Route 21,828,721 21,426,501 (402,220) (1.8%) Customized Service METROLift 483, ,439 49, % METROStar Vanpool 456, , % 8

50 Metropolitan Transit Authority Sales & Use Tax Report January 2019 Treasury Services 1/9/2019

51 Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) FY 2019 NET NET GROSS NET VARIANCE CHANGE IN ACTUALS REC'D SALES RECEIPTS ESTIMATE RECEIPTS REBATES RECEIPTS TO FY19 ESTIMATE FY19- FY18 IN IN FY18 FY19 FY19 FY19 FY19 $ % $ % OCT AUG $ 50,086, $ 56,601, $ 59,513, $ 214, $ 59,298, $ 2,696, % $ 9,211, % NOV SEP $ 62,872, $ 66,220, $ 64,813, $ 227, $ 64,585, $ (1,634,396.31) -2.47% $ 1,713, % DEC OCT $ 64,219, $ 59,417, $ 62,978, $ 224, $ 62,754, $ 3,336, % $ (1,464,892.13) -2.28% JAN NOV $ 60,649, $ 58,494, $ 59,791, $ 229, $ 59,562, $ 1,068, % $ (1,087,123.41) -1.79% FEB DEC $ 77,745, $ 79,850, $ - $ - $ - $ % $ % MAR JAN $ 56,687, $ 56,631, $ - $ - $ - $ % $ % APR FEB $ 55,135, $ 56,000, $ - $ - $ - $ % $ % MAY MAR $ 69,948, $ 70,631, $ - $ - $ - $ % $ % JUN APR $ 58,851, $ 58,748, $ - $ - $ - $ % $ % JUL MAY $ 63,380, $ 61,010, $ - $ - $ - $ % $ % AUG JUN $ 68,953, $ 70,452, $ - $ - $ - $ % $ % SEP JUL $ 60,470, $ 60,668, $ - $ - $ - $ % $ % TOTAL $ 749,000, $ 754,727, $ 247,096, $ 895, $ 246,201, $ 5,467, % $ 8,372, % Net Receipts Estimate Net Receipts Net Receipts YTD % Over YTD % Chge YTD FY 19 YTD FY 18 YTD FY 19 FY 19 Est FY Act $ 240,733, $ 237,828, $ 246,201, % 3.52% Treasury Services 1/9/2019 Page 1 of 4

52 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)] % 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, % OCT AUG FY'18 $ 50,086, FY'19 $ 59,513, $ 214, $ 59,298, $ 9,211, % NOV SEP FY'18 $ 62,872, FY'19 $ 64,813, $ 227, $ 64,585, $ 1,713, % DEC OCT FY'18 $ 64,219, FY'19 $ 62,978, $ 224, $ 62,754, $ (1,464,892.13) -2.28% JAN NOV FY'18 $ 60,649, FY'19 $ 59,791, $ 229, $ 59,562, $ (1,087,123.41) -1.79% TOTAL $ 710,028, $ 760,886, $ 3,513, $ 757,373, $ 47,344, % CURRENT MONTH REBATE ACCRUALS Reliant Stadium $ 45, Baybrook MUD $ 183, Total Rebates $ 229, Treasury Services 1/9/2019 Page 2 of 4

53 Month Allocation State of Texas Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) FY 2019 Rebate Accruals Distribution Net Receipts Baybrook MUD Reliant Stadium Baybrook MUD Total Rebates METRO General Mobility October $ 59,513, $ 97, $ 117, $ 214, $ 59,298, $ 117, $ 45,007, $ 14,172, November $ 64,813, $ 67, $ 160, $ 227, $ 64,585, $ 160, $ 48,287, $ 16,138, December $ 62,978, $ 72, $ 152, $ 224, $ 62,754, $ 152, $ 48,319, $ 14,283, January $ 59,791, $ 45, $ 183, $ 229, $ 59,562, $ 183, $ 45,540, $ 13,838, February $ - $ - $ - $ - $ - $ - $ - $ - March $ - $ - $ - $ - $ - $ - $ - $ - April $ - $ - $ - $ - $ - $ - $ - $ - May $ - $ - $ - $ - $ - $ - $ - $ - June $ - $ - $ - $ - $ - $ - $ - $ - July $ - $ - $ - $ - $ - $ - $ - $ - August $ - $ - $ - $ - $ - $ - $ - $ - September $ - $ - $ - $ - $ - $ - $ - $ - Total $ 247,096, $ 282, $ 613, $ 895, $ 246,201, $ 613, $ 187,154, $ 58,433, $ 59,513, $ 97, $ 117, $ 214, $ 59,298, $ 117, $ 44,385, $ 7,397, Treasury Services 1/9/2019 Page 3 of 4

54 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: December 2018 $ 81,895, January 2019 $ 56,434, Treasury Services 1/9/2019 Page 4 of 4

55 METRO INVESTMENT REPORT ALL FUNDS December 2018

56 Metropolitan Transit Authority of Harris County Investment Report For month ended December 31, 2018 Portfolio Summary Management Report The following is a summary of METRO's Investment Portfolios: Fund: General Construction Real Estate General Mobili~ Prior Month End Book Value $250,185,303 $45,354,966 $492,949 $120,574,951 Current Month End Book Value 269,896, ,161, , ,826,545 Change $19,711,229 $117,806,128 $970 $14,251,594 Prior Month End Market Value* $249,565,729 $45,354,966 $492,949 $120,574,951 Current Month End Market Value* 269,668, ,161, , ,826,545 Change $20,102,633 $117,806,128 $970 $14,251,594 Interest Receivable $3,052,185 $0 $0 $0 Weighted Average Days Outstanding Weighted Average Years Outstanding Recognized Yield 2.62% 2.46% 2.32% 2.48% Benchmark Yield 2.34% 2.34% 2.33% 2.33% Yield Over/ <Under> Benchmark 0.28% 0.12% % 0.15% TexStarWtd Avg. Days Outstanding (as of 12/31/18) ** N/A N/A TexDAILY Wtd Avg. Days Outstanding (as of 12/31/18) ** 36 NIA N/A N/A LOGIC Wtd Avg. Days Outstanding(as of 12/31/18)** N/A N/A N/A 46 All Funds are managed in full compliance with the ublic Transit Authority of Harris Cou ty an ---- * 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.

57 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of December 31, 2018 No. Description Coupo n Rating Maturity Date Purch Date Pa, Cost Price YTM Type Book Value Market Value 11/30/ /31/ /30/ /31/2018 General Fund Wells Fargo Master Account Wells Fargo HOT Lanes Account Wells Fargo Mobile Ticketing Wells Far_ao METROLift Online Account TexStar Investment Pool T exasdail Y Investment Poo l Wells Fargo Institutional Sweep AAAm AAAm 1/1/2019 1/1/2019 1/1/ /31/ /31/ /31/2018.!l.!{ /31/2018 1/1/ /31/2018 1/1/ /31/2018 1/1/ /31/2018 4,870,310 4,185 99, ,751,003 33,664, ,778 4,870,310 4,185 99, ,751,003 33,664, , NA ODA NA ODA NA DOA NA ODA 2.31% LGIP 2.32% LGIP 0.85% 0SA 5,465,917 3, , ,454,506 6,076,841 1,632,617 4,870,310 4,185 99, ,751,003 33,664, ,778 5,465,917 3, , ,454,506 6,076,841 1,632,617 4,870,310 4,185 99, ,751,003 33,664, , CD DD 4701 C EGM69 / Federal Farm Cred it Banks East West Bank CO 3130AA M88/ Fed eral Home Loan Bank 3130AA V62 / Federal Home Loan Bank 3133EHQF3 / Federal Farm Credit Banks 3137EAO Z9 / Freddie Mac 3135GO J53 / Fannie Mae 3130AB Q25 I Federal Home Loan Bank 3133EHJG9 / Fed eral Farm Credit Banks 3133X72S2 / Federal Home Loan Bank 3133EHZF3 / Federal Farm Credit Banks FC2 / World Bank 3137EAE81 / Freddie Mac 3133EGFU4 / Federa l Farm Credit Banks 3137EAE 81 I Freddie Mac 3135GON33 / Fannie Mae 3130A8Y72 / Federal Home Loan Bank F62 / US Treasury Note F01 / World Bank 3133EJAK5 / Federal Farm Cred it Banks F62 / US Treasury Note 3135GOZY2 / Fannie Mae FS7 /World Bank 3130AOJR2 / Federal Home Loan Bank 3130AOJR2 / Federal Home Loan Bank 3130AA3 R7 I Federal Home Loan Bank 3137EAE ES / Freddie Mac 3137EAE ES / Freddie Mac 3130AD N32 / Federal Home Loan Bank 3130AO MS8 / Fed eral Home Loan Bank J84 / US Treasury Note W63 t US Treasury Note 3137EAE M7 I Freddie Mac 3137EAEM7 I Freddie Mac XES / us TreaSU!1, Note XES / US Treasury Note XY 1 / US Treasury Note HU8 / Federal Home Loan Bank L32 / US Treasury Note VP2 I US Treasu!1. Note 3134 GBXV 9 / Freddie Mac W 9 I US Treasury Note East West Bank CO 1.100% 1.500% 1.625% 1.270% 1.350% 1.12S% 1.000% 1.360% 1.400% 5.375% 1.375% 1.250% 0.875% 1.210% 0.875% 0.875% 0.875% 1.500% 1.200% 2.010% 1.500% 1.750% 1.125% 2.375% 2.375% 1.375% 1.500% 1.500% 2.125% 2.150% 1.375% 1.625% 2.500% 2.500% 1.500% 1.500% 2.500% 1.750% 1.375% 2.000% 1.850% 2.125% 2.900% AA+/Aaa Coll=Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa AA+/Aaa 12/5/2018 3/14/2019 1/18/2019 2/27/2019 1/7/2019 4/15/2019 2/26/2019 3/29/2019 5/15/2019 5/15/2019 6/19/2019 4/26/2019 7/19/2019 6/20/2019 7/19/2019 AA+/Aaa 8/2/2019 AA+/Aaa 8/5/2019 AA+/Aaa 10/31/2019 AA+/Aaa 9/30/2019 AA+/Aaa 9L25/2019_ AA+/Aaa 10/31/2019 AA+/Aaa 11/26/2019 AA+/Aaa 11/27/2019 AA+/Aaa 12/13/2019 AA+/ Aaa 12/13/2019 AA+/ Aaa 11/15/2019 AA+/Aaa 1/17/2020 AA+/Aaa 1/17/2020 AA+/Aaa 2/11/2020 AA+/Aaa 2/14/2020 AA+/Aaa 3/31/2020 AA+/Aaa 3/15/2020 AA+/Aaa 4/23/2020 AA+/Aaa 4/23/2020 AA+/Aaa 5/31/2020 AA+/Aaa 5/31/2020 AA+/Aaa 6/30/2020 AA+/Aaa 6/12/2020 AA+/Aaa 8/31/2020 AA+/Aaa 7/31/2020 AA+/Aaa 7/13/2020 AA+/Aaa 8/31/2020 Coll= Aaa 11/21/2019 1/23/2017 3/14/2017 7/18/2017 7/31/2017 7/31/2017 8/16/2017 8/16/2017 9/18/2017 9/28/2017 9/29/ /21/ /21/ /21/ /21/ /22/ /20/2017 1/3/2018 2/13/2018 2/13/2018 2{13/201~ 2/16/2018 3/21/2018 5/17/2018 5/16/2018 5/16/2018 7/23/2018 8/6/2018 8/6/2018 8/6/2018 8/14/2018 8/14/2018 8/14/2018 8/14/2018 8/14/2018 8/15/2018 8/16/2018 8/27/ /3/ /16/ /16/ /16/ /16/ /21/ ,000,000 10,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 S,000,000 6,000,000 5,000,000 6,000,000 5,000,000 4,000,000 5,000,000 5,000,000 5,000,000 4,710,000 S,000,000 5,000,000 S,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 10,000,000 9,966,134 10,000,000 5,010,000 4,993,700 5,000,950 4,982,920 4,973,500 4,997,450 4,993,SSS 5,312,400 4,972,000 4,962,150 4,928,750 4,955,150 4,924,586 4,920,600 5,901,307 4,950,586 5,910,696 4,993,750 3,954,531 4,953,600 4,889,850 4,987,950 4,698,790 4,926,450 4,923,820 4,923,950 4,963,474 4,964,900 4,904,480 4,926,172 4,991,750 4,991,500 4,902,539 4,905,273 4,989,844 4,913,700 4,866,016 4,926,758 4,916,500 4,934,180 10,000, S S % A 1.51% co 1.49% A 1.35% A 1.34% A 1.33% A 1.35% A 1.39% A 1.48% A 1.48% A 1.74% A 1.79% A 1.75% A 1.79% A 1.80% A 1.88% 1.93% 2.09% 2.13% 2.09% 2.18% 2.32% 2.61% A A T A A T A A 2.53% A 2.53% A 2.52% A 2.58% A 2.58% A 2.62% A 2.63% A 2.58% A 2.58% A 2.60% A 2.60% A 2.62% A 2.59% A 2.61% A 2.80% A 2.85% 2.84% 2.84% A 2.85% T 2.90% co 9,999,801 10,000,000 5,000,876 4,999,036 5,000,067 4,996,195 4,995,868 4,999,459 4,998,207 1,087,071 4,990,244 4,989,373 4,972,868 4,984,322 4,97).,23S 4,967,108 S,9S7,82S 4,973,SSl 5,954,369 ~.996,832 3,975,545 4,972,795 4,928,738 4,992,099 4,702,650 4,946,411 4,940,556 4,940,658 4,971,136 4.!.971,_818 4,921,847 4,939,967 4,993,194 4,992,988 4,918,485 4,920,650 4,991,280 4,921,812 4,874,830 i,931,805 4,922,417 4,938,510 10,000,000 Matured/Called 10,000,000 5,000,310 4,999,375 5,000,011 4,997,069 4,997,341 4,999,601 4,998,544 5,070,712 4,991,756 4,991,629 4,976,525 4,986,740 4,975,112 4,971,287 5,963,118 4,976,006 5,959,038 4,997,162 3,977,815 4,975,137 4,934,858 4,992,749 4,703,255 4,951,171 4,945,029 4,945,123 4,973,183 4,973,803 4,926,832 4,943,926 4,993,609 4,993,415 4,923,104 4,925,147 4,991,748 4,926,148 4,880,903 4,935,282 4,926,494 4,941,493 10,000,000 9,999,300 10,000,000 4,995,050 4,986,750 4,995!.350 4,975,250 4,983,950 4,982,900 4,975,050 5,061,500 4,967,300 4,972,950 4,945,400 4,962,150 4,945,400 4,940,800 5,928,660 4,944,750 S,919,660 4,971,900 3,955,800 4,950,950 4,917,650 4,977,500 4,688,805 4,934,750 4,930,700 4,930,700 4,960,500 4,959,100 4,907,400 4,926,350 4,979,850 4,979,850 4,904,100 4,904,100 4,975,800 4,917,850 4,877,150 4,933,800 4,917,700 4,940,450 10,000,000 Matured/Ca tted 10,000,000 4,998,050 4,990,750 4,999,400 4,981,350 4,988,850 4,986,550 4,980,050 ~.~.~ 4,973,950 4,978,750 4,952,300 4,969,200 4,952,300 4,949,500 5,938,620 4,953,300 5,930,400 4,977,600 3,962,640 4,9S9,750 4,934,850 4,987,400 '.'!-~~s.~~1 4,945,850 4,943,900 4,943,900 4,976,600 4,976,950 4,926,550 4,944,150 4,993,050 4,993,050 4~1.._5~ 4,926,550 4,996,100 4,942,300 4,905,650 4,958,800 4,943,550 4,966,800 10,000,000 Total General Fund 250,185, ,896, ,565, ,668,362 Notes: AAA is the highest long-term rating. A-1+ is the highest short term rating. DOA: 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 CO: Certificate or Deposit A U. S. Agency & Instrumentality Bond MMA: Money Market Account T: U. S. Treasuries NN: Implicit backing of the Federal Government SLGS: State and Local Government Series Treasury Securities

58 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of December 31, 2018 Maturity Purch Book Value Market Value No. Description Coupon Rating Date Date Pa, Cost Price YT M Type 11/30/ /31/ /30/ /31/2018 Construction Fund Sales & Use Tax Bonds DSR (TexStar) AAAm 1/1/ /31/ ,576,309 21,576, % LGIP 21,534,122 21,576,309 21,534,122 21,576,309 Contractual Obligations DSR (TexStar) AAAm 1/1/ /31/2018 4,699,501 4,699, % LGIP 4,690,313 4,699,501 4,690,313 4,699,501 Interest & Sinking Fund (2009 & 2010) (TexStar) AAAm 1/1/ /31/2018 1,004,882 1,004, % LGIP 502,371 1,004, ,371 1,004,882 Interest & Sinking Fund 2011A (TexStar) AAAm 1/1/ /31/2018 2,714,059 2,714, % LGIP 1,356,745 2,714,059 1,3S6,74S 2,714,059 Interest & Sinking Fund 2011B (TexStar) AAAm 1/1/ /31/ ,104 72, % LGIP 36,044 72,104 36,044 72,104 Interest & Sinking Fund 2014 (TexStar) AAAm 1/1/ /31/2018 4,382,428 4,382, % LGIP 4,369,406 4,382,428 4,369,406 4,382,428 Interest & Sinking Fund 2015A (TexStar) AAAm 1/1/ /31/2018 8,229,787 8,229, % LGIP 6,583,190 8,229,787 6,583,190 8,229,787 Interest & Sinking Fund 2015B (TexStar) AAAm 1/1/ /31/2018 1,174,078 1,174, % LGlP 586,915 1,174, ,915 1,174,078 Interest & Sinking Fund 2016A (TexStar) AAAm 1/1/ /31/2018 1,053,682 1,053, % LGIP 526,728 1,053, ,728 1,053,682 Interest & Sinking Fund 2016B (TexStar) AAAm 1/1/ /31/ , , % LGIP 104, , , ,312 Interest & Sinking Fund 2016C (TexStar) AAAm 1/1/ /31/2018 4,836,785 4,836, % LGIP 3,869,052 4,836,785 3,869,052 4,836,785 Interest & Sinking Fund 2016D (TexStar) AAAm 1/1/ /31/2018 1,119,282 1,119, % LGIP 562,690 1,119, ,690 1,119,282 Interest & Sinking Fund 2017A (TexStar) AAAm 1/1/ /31/ , , % LGIP 125, , , ,348 Interest & Sinking Fund 2017B (TexStar) AAAm 1/1/ /31/ , , % LGIP 421, , , ,562 Interest & Sinking Fund 2017C (TexStar) AAAm 1/1/ /31/ , , % LGIP 86, ,872 86, ,872 Interest & Sinking Fund 2018A (TexStar) AAAm 1/1/ /31/ % LGIP Proceeds Fund 2018A (TexasDaily) AAAm 1/1/ /31/ ,470,073 51,470, % LGIP 51,470,073 51,470,073 Proceeds Fund 2018A (Wells Fargo) NA 4/17/ /20/ ,867,557 58,867, % SLGS 58,867,557 S8,867,S57 COi Fund 2018A (Texas Daily) AAAm 1/1/ /31/ , , % LGIP 485, ,473 Total Construction Fund 45,354, ,161,094 45,354, ,161,094 General Mobility Fund LOGIC Investment Pool GMP Escrow AAAm 1/1/ /31/ ,826, ,826, % LGtP 120,574, ,826, ,574, ,826,545 Total General Mobility Fund 120,574, ,826, ,574, ,826,545 Real Estate Fund TexasDAILY Investment Pool Real Estate AAAm 1/1/ /31/ , , % LGIP 492, , , ,918 Total Real Estate Fund 492, , , ,918 Grand Total All Funds 416,608, ,378, ,988, ,149,920 Notes: AAA is the highest long-term rating. A-1+ is the highest short term rating. DOA: 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 SLGS: State and Local Government Series Treasury Securities

59 Metropolitan Transit Authority of Harris County Texas General Mobility Escrow Activity Summary As of December 31, 2018 FY2019 Year to Date Escrow Disbursements Interest to Interest Earned Escrow Description Funding from Escrow General Fund on Escrow Funds Balance Dec-18 Escrow Balance Forward $ 30,311, $ ( 5,739,018.92) $ (302,843.90) $ 427, $ 120,574, Dec-18 Net Sales Tax Received [((Net Sales Tax X 25%) - FY2014 Dec GMP) / 2] + FY2014 Dec GMP [(($62,602, X 25%) - $12,915,695.95) / 2] + $12,915, ,283, ,858, Dec-18 City of Bellaire, Hedwig Village, Hunters Creek, Southside Place, Spring Valley & West University Place Monthly Congestion Mitigation and Traffic Management (31,547.31) 134,826, Dec-18 Interest Activity (271,665.33) 271, ,826, Dec-18 Escrow - Fiscal Year to Date $ 44,594, $ (5,770,566.23) $ (574,509.23) $ 699, $ 134,826,545.04

60 METRO DEBT REPORT December 2018

61 Metropolitan Transit Authority of Harris County Texas Debt Report As of December 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 $ 11,381 $ 106,690,895 $ 55,225,000 $ 62,485, % August 28, 2015 November 1, 2027 $ 500,949 $ 8 $ 72,789,714 $ 50,170,000 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 Sales & Use Tax Contractual Obligations Series 2018A Refunded $21,315,000 of Series ' Communter Buses 20 40' CNG Buses 14 60' BRT Buses 35 40' Transit Buses Various small equipment $ 25,200, % December 15, 2017 November 1, 2027 $ 197,926 $ 413 $ 25,124,201 $ 24,745,000 $ 99,970, % November 28, 2018 November 1, 2030 $ 830,858 $ 66, $ 27,552,690 $ 99,970,000 Total Non-METRORail Expansion $ 885,765, % $ 12,036,209 $ 1,083,785 $ 814,544,465 $ 531,287,000 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 $ - 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 $ 325,180,000 $ 32,651, % April 22, 2014 November 1, 2029 $ 293,815 $ 207,565 $ 35,657,462 $ 26,180,000 $ 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 Sales & Use Tax Contractual Obligations Series 2018A 14 Light Rail Vehicles $ 19,060, % November 28, 2018 November 1, 2043 $ 161,510 $ 12, $ - $ 19,060,000 Total METRORail Expansion $ 990,324, % $ 5,177,290 $ 987,560 $ 1,019,929,390 $ 689,063,000 Total Debt $ 1,876,090, % $ 17,213,500 $ 2,071,346 $ 1,834,473,856 $ 1,220,350,000

62 METRO Fiscal Year 2019 Monthly Performance Report Revenue Expense Ridership Performance December 2018 (First Quarter Fiscal Year-to Date) 1/11/2019

63 MONTHLY PERFORMANCE REPORT December 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 December 2018 Budget vs. Actual FY2019 YTD Budget vs. Actual FY2019 YTD Major Variance Items FY2019 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

64 MONTHLY PERFORMANCE REPORT January 2019 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 FY2019 Budget FY2019 Actual FY2018 Actual Total FY2019 Sales Tax budget is $754.7 million Budget to Actual FY2019 ($ millions) Budget Actual Variance % October % November (1.6) (2.5%) December % January % February % March % April % May % June % July % August % September % FY2019 YTD $ $ $ % Prior Year vs. Current Year ($ millions) Prior Year Current Year Variance % October % November % December (1.5) (2.3%) January (1.1) (1.8%) February % March % April % May % June % July % August % September % FY2019 YTD $ $ $ % Sales Tax revenue for the month of January 2019 is $1.1 million or 1.8% over estimates. Sales Tax revenue for the year-to-date through January 2019 of $246.2 million is $5.5 million or 2.3% over estimates. Section A Page 3

65 MONTHLY PERFORMANCE REPORT December 2018 Fare Revenue $6.5 $6.0 millions $5.5 $5.0 $4.5 $4.0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY2019 Budget FY2019 Actual FY2018 Actual Total FY2019 Fare Revenue budget is $67.5 million Budget to Actual FY2019 ($ millions) Budget Actual Variance % October % November (0.4) (7.1%) December (0.0) (0.0%) January % February % March % April % May % June % July % August % September % FY2019 YTD $ 17.0 $ 16.6 $ (0.4) (2.4%) Prior Year vs. Current Year ($ millions) Prior Year Current Year Variance % October % November (0.2) (3.7%) December % January % February % March % April % May % June % July % August % September % FY2019 YTD $ 15.7 $ 16.6 $ % Fare Revenue for the month of December 2018 of $5.0 million is on budget. Fare Revenue for the year-to-date through December 2018 of $16.6 million is $0.4 million or 2.4% under budget. Section B Page 4

66 MONTHLY PERFORMANCE REPORT December 2018 Service Related Grant Revenue Total FY2019 Service Related Grant budget is $75.1 million ($ millions) Budget Actual Variance % October (0.0) 0.0% November (3.4) (94.4%) December (0.2) (66.7%) January % February % March % April % May % June % July % August % September % FY2019 YTD $ 4.3 $ 0.6 $ (3.7) (86.0%) Service Related Grant Revenue for the month of December 2018 of $0.1 million is $0.2 million or 66.7% under budget. Service Related Grant Revenue for the year-to-date through December 2018 of $0.6 million is $3.7 million or 86.0% under budget. Capital Grant Revenue Total FY2019 Capital Grant budget is $88.4 million ($ millions) Budget Actual Variance % October (2.7) (56.3%) November 4.8 (1.1) (5.9) (122.9%) December 4.8 (0.6) (5.4) (112.5%) January % February % March % April % May % June % July % August % September % FY2019 YTD $ 14.3 $ 0.4 $ (13.9) (97.2%) Capital Grant Revenue for the year-to-date through December 2018 of $0.4 million is $13.9 million under budget. Section C Page 5

67 MONTHLY PERFORMANCE REPORT December 2018 Interest & Miscellaneous Revenue Total FY2019 Interest & Miscellaneous Revenue budget is $17.5 million ($ millions) Budget Actual Variance % October % November % December % January % February % March % April % May % June % July % August % September % FY2019 YTD $ 3.8 $ 5.8 $ % 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 $5.8 million through December 2018 is $2.0 million or 52.6% over budget. Section C Page 6

68 FY2019 Annual Operating Budget $ FY2019 YTD Operating Budget $ MONTHLY PERFORMANCE REPORT December 2018 Budget Summary ($ millions) Operating -6.5% Budget $- $40 $80 $120 $160 Actual FY2019 Annual Capital Budget $ FY2019 YTD Capital Budget $ 54.8 METRORail Completion -90.4% CIP Program -20.8% Budget $- $12 $23 $35 $46 Actual FY2019 Annual Debt Service Budget $ FY2019 YTD Debt Service Budget $ 26.5 Debt Service -7.9% Budget $- $7 $14 $21 $28 Actual FY2019 Annual GMP Projected Allocation $ FY2019 YTD GMP Projected Allocation $ 44.1 GMP Projection 1.1% Projected $- $12 $23 $35 $46 Allocation Section D Page 7

69 MONTHLY PERFORMANCE REPORT December 2018 Operating Expenses Comparison of Budget to Actual for the Month (December 2018) FY19 Annual December December $ Variance % Variance Budget Budget Actual (favorable)/unfavorable Labor & Fringe Benefits $ 369,619,478 $ 30,937,277 $ 30,517,122 $ (420,155) (1.4%) Non-Labor 241,745,300 $ 24,304,094 $ 20,267,145 (4,036,949) (16.6%) Subtotal Labor & Non-Labor 611,364,777 55,241,371 50,784,267 (4,457,104) (8.1%) Contingency 14,845, % Total Operating Budget $ 626,210,000 $ 55,241,371 $ 50,784,267 $ (4,457,104) (8.1%) Comparison of Budget to Actual Year-to-Date December 2018 (3 months) FY19 Annual Year-to-Date Year-to-Date $ Variance % Variance Payroll & Benefits Budget Budget Actual (favorable)/unfavorable Wages $ 144,937,162 $ 36,259,693 $ 36,505,378 $ 245, % Union Fringe Benefits 80,864,687 21,059,214 19,509,395 (1,549,819) (7.4%) Subtotal Union Labor 225,801,849 57,318,907 56,014,773 (1,304,134) (2.3%) Salaries and Non-Union Wages 108,479,536 25,695,665 25,526,865 (168,800) (0.7%) Non-Union Fringe Benefits 45,606,500 11,149,899 10,154,812 (995,088) (8.9%) Subtotal Non-Union Labor 154,086,036 36,845,565 35,681,677 (1,163,888) (3.2%) Allocation to Capital & GMP (10,268,408) (2,467,294) (1,799,319) 667, % Subtotal Labor and Fringe Benefits 369,619,478 91,697,177 89,897,131 (1,800,046) (2.0%) Total Materials & Supplies Services 51,151,604 13,919,948 7,775,429 (6,144,519) (44.1%) Materials and Supplies 31,704,870 7,751,185 6,644,711 (1,106,474) (14.3%) Fuel and Utilities 38,608,594 9,482,363 9,010,109 (472,254) (5.0%) 121,465,068 31,153,495 23,430,248 (7,723,247) (24.8%) Administration Casualty and Liability 5,359,774 1,296,583 1,273,121 (23,462) (1.8%) Purchased Transportation 102,433,917 25,605,009 25,107,569 (497,440) (1.9%) Leases, Rentals and Misc. 13,353,660 4,967,151 4,976,281 9, % Allocation to Capital & GMP - Non-Labor (867,119) (84,417) (73,799) 10,618 (12.6%) 120,280,232 31,784,326 31,283,172 (501,154) (1.6%) Subtotal Non-Labor 241,745,300 62,937,821 54,713,420 (8,224,401) (13.1%) Subtotal Labor and Non-Labor 611,364, ,634, ,610,551 (10,024,448) (6.5%) Contingency 14,845, % Subtotal Contingency 14,845, % Total Operating Budget $ 626,210,000 $ 154,634,999 $ 144,610,551 $ (10,024,448) (6.5%) Non-Budgeted Expense Gain/ Loss Disposal - - (406,589) (406,589) 0.0% Grand Total $ 626,210,000 $ 154,634,999 $ 144,203,962 $ (10,431,036) (6.7%) Operating Expenses for the month of December 2018 of $50.8 million are $4.5 million or 8.1% under budget. Operating Expenses year-to-date through December 2018 of $144.6 million are $10.0 million or 6.5% under budget. Section E Page 8

70 MONTHLY PERFORMANCE REPORT December 2018 Major Operating Budget Variance Items - Categories with major variances Expense Type FY2019 Budget FY2019 Actual Payroll & Benefits Union Labor 57,318,907 56,014,773 $ (1,304,134) Union Vacancies - Fringes driven by underrun in uniform & tool allowance Fiscal Year 2019 $ Variance (under budget) / over budget (1,344,000) Wages & Fringe Benefits - savings from bus operator vacancies (1,159,000) Wages & Fringe Benefits - savings from primarily mechanic, technician, cleaners Underrun in health benefit due to timing of healtcare deductions Less than expected sick leave cash out (1,006,000) (417,000) (237,000) Offset by Workers Comp Expense Variance Overtime primarily in METRO rail, bus maintenance & public facilities Overtime in bus transportation to cover routine vacancies 142,000 1,132,000 1,468,000 Non-Union Labor 36,845,565 35,681,677 $ (1,163,888) Savings in base salaries due to vacancies Savings in healthcare due to less than expected fringe benefits salaries Offset by Salaried overtime mainly driven by vacancies (811,000) (667,000) 415,000 Total Materials & Supplies 31,153,495 23,430,248 $ (7,723,247) Services Communications due to underrun in advertising. (1,256,000) Planning due to underrrun in METRONext within contract management. Facility Maintenance due to underspending in BOF maintenance cost (-$197,000) and building & grounds maintenance (-$98,000). Operations mainly due to underrun in building & grounds maintenance. Legal mainly due to underrun in legal fees. Government & Public Affairs mainly due to underrun in legislative coordination. General underspending in other areas Authority wide not mentioned above Underspending in Contract Management throughout the Authority. Underrun in support services & other services. Other miscellaneous services type expenses mostly contractual and required on an as needed basis. Underrun in equipment repairs & maintenance. Underspending in education and training throughout the Authority (excludes bus operator and other Operations staff related training). (1,043,000) (295,000) (278,000) (194,000) (165,000) (1,762,000) (490,000) (291,000) (194,000) (177,000) Section E Page 9

71 Expense Type FY2019 Budget FY2019 Actual Materials and Supplies Underruns in - Material prices variances on Production/refurbished orders and inventory revaluations mostly for unit overhauls Tires & Tubes Propulsion Parts - Exterior Body and Windows Special office supplies MONTHLY PERFORMANCE REPORT December 2018 Major Operating Budget Variance Items - Categories with major variances (1,148,000) (302,000) (200,000) (185,000) (185,000) Minor Tools (122,000) Fiscal Year 2019 $ Variance (under budget) / over budget Offset by miscellaneous overruns in - Chassis Bus Parts - brakes Bus Batteries - mostly in Unit Overhaul Bus Engines - mostly in Unit Overhaul Fuel and Utilities Lower than expected charges for routine Telephone Services Underrun in Diesel Fuel (including taxes) mainly due to lower prices per gallon on unhedged fuel (234,000) (163,000) 121, , , ,000 Administration 31,784,326 31,283,172 $ (501,154) Casualty & Liability Purchased Transportation Northwest Contract METROLIFT Leases, Rentals, & Miscellaneous (157,000) (314,000) Section E Page 10

72 MONTHLY PERFORMANCE REPORT December 2018 Total Net Operating Budget / Expenses by Department Authorized EOY Headcount Year-to-Date Current Month-- Department Annual Budget Budget Expense Variance Variance 3,599 Oper, Public Safety, & Cust Service 470,898, ,166, ,798,909 (4,367,211) (1,020,905) 3,139 Operations 427,839, ,985, ,576,322 (3,409,536) (629,490) 335 METRO Police 27,076,644 6,471,433 5,926,609 (544,824) (186,406) 46 Safety 9,912,445 2,273,550 2,027,299 (246,251) (105,786) 70 Customer Services 4,831,967 1,131, ,123 (162,494) (97,206) 9 EVP Oper Pub Safety & Cust Service 1,237, , ,556 (4,105) (2,017) 246 Administration 59,073,856 17,635,573 16,472,879 (1,162,694) (1,030,245) 74 IT 23,851,103 8,992,356 8,224,129 (768,227) (720,810) 45 Human Resources 22,420,871 5,533,513 5,204,161 (329,352) (245,043) 120 Procurement & Materials 11,597,764 2,842,464 2,767,226 (75,237) (47,803) 2 EVP, Administration 463, , ,395 (6,515) (4,196) 5 State of Good Repair 740, , ,967 16,636 (12,394) 245 Planning, Engineer, & Construction 41,204,082 10,250,971 8,459,189 (1,791,782) (1,568,645) 179 Facilities Maint 33,270,202 7,756,703 7,075,772 (680,930) (491,635) 37 Planning 7,018,902 2,336,756 1,253,362 (1,083,395) (1,079,831) 27 Engineering & Cap Project 831, , ,138 1,472 18,674 2 EVP PE&C 83,257 17,847 (11,083) (28,930) (15,852) 80 Finance 11,115,716 2,534,621 2,211,730 (322,892) (141,489) 76 Finance 10,133,155 2,381,567 2,083,368 (298,199) (116,337) 4 CFO 982, , ,362 (24,693) (25,152) 22 Govt & Public Affairs 4,495,627 1,105, ,175 (198,028) (104,567) 2 Deputy CEO 506, , , ,579 (5,565) 10 Public Engagement 1,446, , ,042 (27,454) (10,286) 6 Ridership & Client Services 1,009, , ,631 (51,157) (26,861) 3 Gov't Affairs 1,339, , ,101 (208,022) (49,260) 1 Urban Design 193,101 42,311 30,336 (11,974) (12,595) 19 Legal 3,942, , ,542 (235,092) (27,117) 40 Communications 11,721,194 2,827,133 1,230,107 (1,597,025) (519,206) 3 EVP, Communications 440,324 88, ,310 14,308 (9,067) 7 Press Office 722, , ,885 (9,329) (2,900) 29 Marketing & Corporate Communication 10,130,972 2,507, ,396 (1,550,470) (491,036) 1 Partnership Promotions 427,214 53,051 1,516 (51,535) (16,203) 9 Executive and Board 2,149, , ,307 (217,511) (74,497) 11 Audit 1,535, , ,409 (50,678) (40,518) 4 Office of Innovation 908, , ,262 (81,576) (3,714) Non Departmental 4,319, President & CEO Contingency 14,845, Other (MTA Revenue/Expense) ,275 Total Operating Budget 626,210, ,634, ,610,551 (10,024,448) (4,530,903) Section E Page 11

73 MONTHLY PERFORMANCE REPORT December 2018 Total Net Operating Budget / Expenses by Department as of the end of December 2018 vs. October 2017 Upd December 2018 December Year-to-Date Year-to-Date Department Budget Expense Variance Budget Expense Variance Operations, Public Safety and Customer Service 118,166, ,798,909 (4,367,211) 112,385, ,508,736 (3,876,651) Operations 107,985, ,576,322 (3,409,536) 102,772, ,100,837 (2,671,456) EVP Oper Pub Safety & Cust Serv 303, ,556 (4,105) 308, ,114 (30,909) METRO Police 6,471,433 5,926,609 (544,824) 6,126,949 5,157,714 (969,235) Safety 2,273,550 2,027,299 (246,251) 2,040,825 1,986,925 (53,900) Customer Service 1,131, ,123 (162,494) 1,137, ,147 (151,152) Administration 17,635,573 16,472,879 (1,162,694) 16,941,875 14,904,786 (2,037,089) EVP, Administration 115, ,395 (6,515) 214, ,129 (24,265) IT 8,992,356 8,224,129 (768,227) 8,614,512 7,296,978 (1,317,534) Human Resources 5,533,513 5,204,161 (329,352) 5,309,497 4,806,306 (503,190) Procurement & Materials 2,842,464 2,767,226 (75,237) 2,803,472 2,611,372 (192,099) State of Good Repair 151, ,967 16,636 N/A N/A N/A Planning, Engineering and Construction 10,250,971 8,459,189 (1,791,782) 9,442,266 8,445,337 (996,928) EVP PE&C 17,847 (11,083) (28,930) 32,952 11,281 (21,672) Engineering & Cap Project 139, ,138 1, , ,431 (226,385) Planning 2,336,756 1,253,362 (1,083,395) 1,914,197 1,896,060 (18,137) Facilities Maintenance 7,756,703 7,075,772 (680,930) 7,090,301 6,359,566 (730,735) Finance 2,534,621 2,211,730 (322,892) 2,552,420 2,071,994 (480,426) Finance 2,381,567 2,083,368 (298,199) 2,389,120 1,920,579 (468,541) CFO 153, ,362 (24,693) 163, ,414 (11,885) Gov't & Public Affairs 1,105, ,175 (198,028) 802, ,780 (254,241) Deputy CEO 123, , ,579 N/A N/A N/A Public Engagement 358, ,042 (27,454) 390, ,309 (77,592) Ridership & Client Services 244, ,631 (51,157) 283, ,740 (144,255) Gov't Affairs 336, ,101 (208,022) 127,126 94,731 (32,394) Urban Design 42,311 30,336 (11,974) N/A N/A N/A Legal 984, ,542 (235,092) 1,384,807 1,098,803 (286,004) Communications 2,827,133 1,230,107 (1,597,025) 1,788,151 1,012,880 (775,272) EVP, Communications 88, ,310 14,308 N/A N/A N/A Press Office 178, ,885 (9,329) N/A N/A N/A Marketing & Corporate Communication 2,507, ,396 (1,550,470) 1,788,151 1,012,880 (775,272) Partnership Promotions 53,051 1,516 (51,535) N/A N/A N/A Executive & Board 545, ,307 (217,511) 915, ,616 (111,381) Audit 365, ,409 (50,678) 355, ,577 (13,623) Office of Innovation 219, ,262 (81,576) 181,082 64,268 (116,814) Contingency Non-Departmental ,300 - (16,300) Other MTA Revenue / Expense TOTAL OPERATING BUDGET $ 154,634,999 $ 144,610,551 $ (10,024,447) $ 146,765,508 $ 137,800,902 $ (8,964,605) Section E Page 12

74 MONTHLY PERFORMANCE REPORT December 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 FY2019 Annual Month of December 2018 Variance Fiscal Year to Date Variance Budget Budget Actual $ % Budget Actual $ % $ 92.3 $ 4.3 $ 0.8 $ (3.5) (81.4%) $ 11.5 $ 1.1 $ (10.4) (90.4%) $ $ 6.0 $ 4.2 $ (1.8) (30.0%) $ 43.3 $ 34.3 $ (9.0) (20.8%) $ $ 10.3 $ 4.9 $ (5.4) (52.4%) $ 54.8 $ 35.4 $ (19.4) (35.4%) METRORail Completion expenses for the year-to-date through December 2018 of $1.1 million are $10.4 million or 90.4% under budget. Other Capital Improvement Program expenses for the year-to-date through December 2018 of $34.3 million are $9.0 million or 20.8% under budget. Debt Service Budget Debt Service FY2019 Annual Month of December 2018 Variance Fiscal Year to Date Variance Budget Budget Actual $ % Budget Actual $ % $ $ 8.4 $ 8.1 $ (0.3) (3.6%) $ 26.5 $ 24.4 $ (2.1) (7.9%) Debt Service expenses for the year-to-date through December 2018 of $24.4 million are $2.1 million under budget. General Mobility Transfers General Mobility General Mobility Program Projections Projected Funding vs. Actual Allocation - Month and Fiscal Year-to-Date ($ millions) FY2019 Annual Month of December 2018 Variance Fiscal Year to Date Variance Projection Projection Allocation $ % Projection Allocation $ % $ $ 13.9 $ 14.3 $ % $ 44.1 $ 44.6 $ % Funds allocated to the General Mobility Fund totaling $44.6 million for the year-to-date through December 2018 are $0.5 million or 1.1% more than the amount projected. Section F Page 13

75 MONTHLY PERFORMANCE REPORT December 2018 Ridership by Service Category YTD % Change Dec-18 Dec-17 Dec-18 Dec-18 Service Category Dec-17 Dec-18 vs. YTD YTD vs. Boardings Boardings Dec-17 Boardings Boardings Dec-17 Fixed Route Services Local Network Local Bus 4,613,832 4,679, % 15,257,160 15,085,740 (1.1%) METRORail Red (North) Line 1,070,133 1,095, % 3,836,521 3,669,157 (4.4%) Green (East) Line 111, , % 396, ,091 (2.9%) Purple (Southeast) Line 115, , % 489, , % METRORail (all lines) 1,297,202 1,336, % 4,722,840 4,548,939 (3.7%) METRORail-Bus Bridge 11, % 11,852 13, % METRORail total 1,309,054 1,336, % 4,734,692 4,562,803 (3.6%) Subtotal Local Network 5,922,886 6,016, % 19,991,852 19,648,543 (1.7%) Commuter Park & Ride 489, ,298 (0.9%) 1,836,869 1,777,958 (3.2%) Subtotal Fixed Route Service 6,412,605 6,502, % 21,828,721 21,426,501 (1.8%) Special Events 6,544 14, % 12,536 18, % Total Fixed Route 6,419,149 6,516, % 21,841,257 21,444,714 (1.8%) Customized Bus Services METROLift 152, , % 483, , % METRO STAR Vanpool 131, ,395 (3.1%) 456, , % Internal Service % % Subtotal Customized Bus 283, , % 940, , % HOV/HOT Carpools, Vanpools, and Non-METRO Buses 2,066,420 1,980,700 (4.1%) 6,020,972 6,293, % Total System 8,769,385 8,790, % 28,802,318 28,728,576 (0.3%) Section G Page 14

76 MONTHLY PERFORMANCE REPORT December 2018 Ridership by Service Category Fixed Route and Total System Ridership FY FY2019 Total System Ridership Millions Fixed Route Ridership FY2018 in Blue FY2019 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 December 2018 of 6.5 million is 0.1 million or 1.4% greater than last year. Total fixed route ridership, excluding special events, for the year-to-date through December 2018 of 21.4 million is 0.4 million or 1.8% less than last year. METRORail ridership for the month of December 2018 of 1.3 million is 2.1% greater than last year. METRORail ridership year-to-date through December 2018 of 4.6 million is 3.6% less than last year. Section G Page 15

77 MONTHLY PERFORMANCE REPORT December 2018 Performance Statistics Fiscal Year 2019 Benchmark Met Benchmark Missed Current FY2019 FY2019 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 FY2019 FY2019 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 both the month and 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 and 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 both the month and the year-to-date. The average call center answer delay did not meet the goal for both the month and the year-to-date. Section H Page 16

78 Current FY2019 FY2019 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 December 2018 Performance Statistics Fiscal Year 2019 Benchmark Met Benchmark Missed Bus - Local 74.8% 74.6% 75.3% 75% 74.9% 75% Bus - Park & Ride 77.6% 76.9% 77.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 76% 77.2% 76% Bus - Weighted Average 75.9% 75.6% 76.0% 75% 75.8% 75% METROLift 89.0% 90.8% 91.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 90% 90.4% 90% Rail - Red Line 91.9% 93.3% 91.7% 93% 92.3% 93.0% Rail - South East Purple Line 98.4% 98.3% 98.9% 95% 98.5% 95.0% Rail - East End Green Line 98.7% 98.7% 98.9% 95% 98.8% 95.0% MDBF (Mean Distance Between Mechanical Failures) - All Buses MDBF (Mean Distance Between Mechanical Failures) - METROLift MDBSI (Mean Distance Between Service Interruptions) - METRORail 10,186 11,246 10,785 10,000 10,709 9,250 25,076 23,838 27,212 20,000 25,273 20,000 17,119 18,610 14,059 15,000 16,383 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 the month but not 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) did not meet the benchmark for both the month and 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 did not meet the minimum performance standard for the month but did for 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

79 MONTHLY PERFORMANCE REPORT December 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, (aggravated) sexual assualt, (aggravated) robbery, aggravated assault, burglary, larceny/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 as 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

80 MONTHLY PERFORMANCE REPORT December 2018 Balance Sheet Assets December 30, 2017 ($) December 30, 2018 ($) Change ($) Cash (7,304,821) 1,450,338 8,755,158 Receivables 146,289, ,347,157 14,057,796 Inventory 36,539,450 35,800,927 (738,524) Investments 433,544, ,953, ,408,909 Other Assets 7,607,931 5,241,056 (2,366,875) Land & Improvements 364,464, ,649,032 (1,815,562) Capital Assets, Net of Depreciation 2,569,025,914 2,457,801,736 (111,224,178) Total Assets 3,550,166,565 3,586,243,290 36,076,725 1 Deferred Outflow of Resources 93,639,765 68,050,683 (25,589,082) 3,643,806,330 3,654,293,973 10,487,643 Liabilities Trade Payables 67,959,309 66,065,008 (1,894,301) Accrued Payroll 31,771,755 30,304,950 (1,466,804) Debt Payable 1,266,392,617 1,352,862,336 86,469,719 Debt Interest Payable 442, ,760 (77,446) Pension and OPEB Liabilities 534,867, ,029, ,161,544 Other Liabilities 48,089,681 72,122,795 24,033,114 Total Liabilities 1,949,523,245 2,325,749, ,225,826 2 Net Assets - Retained Earnings 1,694,283,085 1,328,544,902 (365,738,183) Total Liabilities and Net Assets 3,643,806,330 3,654,293,973 10,487,643 Notes: 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. 2 The deferred outflow for FY2019 includes [1] Mark-to-Market (MTM) values of outstanding diesel fuel SWAP agreements at the fiscal year end ($7,344,809), [2] Non Union Pension Plan ($17,733,648), [3] Union Pension Plan ($20,456,681), [4] Bonds ($10,284,073), [5] Non Union OPEB (3,118,608) and [6] Union OPEB ($9,112,864). These items will be recognized as expenses in future periods to which they relate. 3 As part of the FY2018 year end adjustments, METRO will implement GASB 75 Accounting for Other Post-Employment Benefits (OPEB) cost which will reduce METRO s beginning FY2018 net asset position by approximately $271 million with an increase in the OPEB liability of $282 million and deferred outflows of $11 million. Net assets will change from $1,673 million to $1,402 million. Section I Page 19

81 MONTHLY PERFORMANCE REPORT Budget Change Request Report Operating Budget - $626.2 million First Quarter - Fiscal Year 2019 Date Type Description Amount October-18 Budget Reallocation of METROLift Services funds for salary adjustments 371,841 October-18 Budget Reallocation of Authority Contingency funds to Procurement - SBE/DBE to cover the Disparity Study 250,000 October-18 Budget Reallocation of Public Facilities funds to cover the replacement of the escalator handrails at TMC 32,600 October-18 Budget Reallocation of Operations funds to fund relocation expenses for the Superintendent of HC-BOF 15,000 November-18 Budget Reallocation of Public Facilities funds to cover outstanding FY2018 maintenance and repairs invoices 16,000 November-18 Budget Reallocation of Bus Transportation funds to cover the Headway Management Pilot Program. 20,000 November-18 Budget Reallocation of Legal funds to cover the expenses of a executive search firm for help with Legal Counsel candidates 35,000 November-18 Budget Reallocation of Public Facilities funds to cover bulb and lamp waste removal not budgeted for in FY2019 5,000 November-18 Budget Reallocation of Facilities Maintenance funds to cover services provided at the North Shepherd Park & Ride and Polk Facilities 91,210 November-18 Budget Reallocation of Support Facilities funds to cover a purchase order for elevator repairs 9,000 November-18 Budget Reallocation of Facilities Maintenance, METRORail and Bus Maintenance funds to self-fund the additional wages related to the recent Memorandum of 125,060 Understanding with the Union November-18 Budget Realignment of Contracted, Para-transit & Vanpool Services budget to reflect current organization structure 103,507 November-18 Budget Reallocation of Facilities Maintenance Kashmere BOF funds to cover Petroleum Storage Tank (PST) Systems Testing service 4,000 November-18 Budget Reallocation of Safety Risk Management funds to cover the purchase of branded tension envelopes 1,200 November-18 Budget Reallocation of Support Facilities funds to cover Climatec project and supplement waste services to allow for FSC Oil/Water Separator paks to be 31,000 inspected for repair November-18 Budget Reallocation of Public Facilities funds to cover DOT training for two (2) General Foreman and five (5) Facility Supervisors 3,889 November-18 Budget Reallocation of Public Facilities funds to cover incentives for Facilities Maintenance personnel 1,063 November-18 Budget Reallocation of Operating Facilities funds to cover Building Automation System (BAS) Agreements for HVAC support 14,000 November-18 Technical / Reallocation of President & CEO Contingency funds to Planning, Legal and Administrative Marketing to fund first quarter METRONext activity 1,484,739 November-18 Technical / Administrative Realignment of METRO Police budget to reflect current organization structure 702,437 December-18 Budget Reallocation of Operating Facilities funds to cover service at Kashmere BOF for Oil/Water Separator 11,000 December-18 Budget Reallocation of Finance salary funds for salary adjustments related to a reorganization 17,460 December-18 Budget Reallocation of Authority Compliance funds to cover membership dues 480 December-18 Budget Reallocation of Bus Facilities funds to cover contact services with Cypress P&R Structural Inspection-Midtown Engineers, Printer Ink-Nusign Supply, and 11,185 Kingwood P&R Stripping-Ronald Lawton December-18 Budget Reallocation of Support Facilities funds for landscaping at the Griggs Facility 8,000 December-18 Budget Reallocation of Bus Facilities funds for a crane truck rental 21,750 December-18 Technical / Reallocation of Public Facilities funds for furniture purchase, bulb recycling and Administrative pavement rehab 17,019 December-18 Reallocation of President & CEO Contingency funds to METRO Police to cover Technical / the adjustment of compensation levels to be consistent with Harris County Law Administrative Enforcement (METRO Board Resolution ) 521,838 December-18 Technical / Allocation of FY2019 Salaried Employees Cost of Living Adjustment (COLA) Administrative allowance to departmental budgets 1,411,587 First Quarter Total $ 5,336,864 Notes: Tech/Admin changes are changes within the original scope of the budgets and do not represent a change in the Authority's work plan or priorities. Section J Page 20

82 MONTHLY PERFORMANCE REPORT Budget Change Request Report Capital Budget - $286.0 million First Quarter - Fiscal Year 2019 Date Type Description Amount October-18 Budget Transferring budget from SAP SBP to SAP HANA due to change in business needs 862,000 October-18 Budget Transfer budget from HYBRID Bus Battery Replacement project to Hybrid Bus Part project to pay for outstanding invoices. 190,000 October-18 Budget Transfer budget from Kashmere BOF Electrical Upgrade project to fund a temporary chiller at 1900 Main St. until a more permanent solution is 329,000 implemented. October-18 Budget Transfer excess budget from Commute Bus Procurement and Rail-Phase Shift Overlay projects to fund Non-Revenue Specialty Vehicles. 510,000 October-18 Technical/ Transfer budget from MAX Lanes project to fund METRONet Fiber Upgrade Administrative project. 1,384,200 November-18 Technical/ Transfer budget from the Bus Stop Signage project to the Accessibility & Administrative Safety Enhancements at METRO Public Facilities 901,400 November-18 Budget Transfer budget from the Kashmere BOF Electrical Upgrade project to MET TRAN Credit Union buildout at 1900 Main Street. 132,000 December-18 Budget Transfer budget from LED Back Plate on Tranffic Signals project to fund 6 MPD Police Motorcycles 265,000 December-18 Budget Transfer budget from Bluetooth Proximity Alert System (BPAS) to IT Equipment for Transtar and Service of H3 Axles. 410,000 First Quarter Total $ 4,983,600 Notes: Tech/Admin changes are changes within the original scope of the budgets and do not represent a change in the Authority's work plan or priorities. Section J Page 21

83 FUEL PRICE RISK MANAGEMENT POLICY REPORT "FUEL HEDGE" December 2018

84 FUEL PRICE RISK MANAGEMENT POLICY REPORT December 2018 The Fuel Price Risk Management Policy approved by the Board on February 16, 2006 requires monthly reports to the Finance/Audit Committee. Per the Finance Chair in 2009, the report is to be presented quarterly to the F/A committee. The Board has approved resolutions authorizing implementation of the Fuel Hedge Policy for FY2008 (October 2006). In July 2008 the Board amended the Fuel Risk Management Policy by eliminating the July 15 deadline for hedging the next fiscal years fuel requirement. Per the METRO Fuel Price Risk Management Policy, "METRO will minimize operating budget variance attributable to fuel price variability through physical forward contracts and/or financial contracts. METRO will develop and implement a plan which will provide fuel and energy commodity price certainty for up to 24 months of expected consumption such that the operating budget expense is assured with some potential to realize savings if prices decline." All hedges will be constructed to qualify for hedge accounting treatment under Financial Accounting Standards Board (FASB) guidelines. This means that any financial hedge instrument must settle against, or directly link to, the index used as the pricing reference in the applicable procurement contract. For example, if METRO has a contract for delivery of fuel based on Platt's Gulf Coast Low-Sulfur Diesel Index, the financial hedge must reconcile to Platt's Gulf Coast Low-Sulfur Diesel Index. A. Diesel Fuel Hedges Also per METRO's Fuel Price Risk Management Policy, the Authority's Diesel Fuel Hedge Strategy Team, referred to here as "Team", makes hedging decisions on METRO's behalf. The Team is lead from the Procurement department's perspective, and is comprised of Operations, Finance, Procurement, and the Executive Office staff. The Team's objective is to strategically enter into agreements that cover 80% - 90% of projected fuel requirements. Actions and correspondence are typically conducted and documented via , and the Team convenes as needed. Upon agreement by vote, the Office of Management and Budget, and Procurement department work together to initiate and execute Financial Hedge Swap Agreements. Through February 9, 2018, five buys totaling M gallons averaging $ per gallon were executed to complete FY2019 hedging. To date, two additional hedges have been executed: 2.520M gallons averaging $1.9490; 2.520M gallons averaging $ for FY (Hedge prices are market price only, not including transportation, additive and taxes). See Attachment A for hedge details. METRO currently has trade partnerships with Bank of America Merrill Lynch, and J. Aron & Company LLC/Goldman Sachs. A summary of the FY2019 hedged gallons, actual usage and hedge settlements are outlined in Attachment B. Hedge receipts fiscal year to date total $927,759. 2

85 B. 5 Year Contract for Electricity In May 2015 the Board authorized the President and CEO to execute and deliver a contract for electricity provider services for an amount not-to-exceed $26,491,835, with a 25% energy component and an option to participate in demand response services. The contract was awarded in June 2015 to GDF SUEZ Energy Resources NA Inc. (Suez) to supply electricity for 5 years beginning June 2015 to June The contract rate of $ per kilowatt hour was fixed for the term of contract while the Transmission and Distribution (TDSP) charges may vary depending on the Texas Utilities Commission policies. This contract hedges METRO's electricity requirements for 5 years, providing budget certainty on price in accord with the Board's Fuel Price Risk Management Policy adopted February

86 ATTACHMENT A

87 METRO FY2018, FY2019 and FY2020 Fuel Hedge (Diesel) - Status December 2018 Financial Hedge (Oct-Sep Delivery) Delivery Year Gallons Fuel Type Vendor Date of Purchase Avg. Price per gallon Cost 1 FY2018 2,520,000 USLD Merrill Lynch 1/20/2016 $ $ 2,844,954 2 FY2018 3,486,000 USLD Merrill Lynch 5/9/2016 $ $ 5,084,331 3 FY2018 1,470,000 USLD Goldman, Sachs & Co. 7/22/2016 $ $ 2,260,125 4 FY2018 1,554,000 USLD Merrill Lynch 8/1/2016 $ $ 2,300,697 5 FY ,000 USLD Goldman, Sachs & Co. 8/31/2016 $ $ 405,846 6 FY ,000 USLD Goldman, Sachs & Co. 9/1/2016 $ $ 1,055,040 7 FY ,000 USLD Merrill Lynch 11/4/2016 $ $ 597,013 8 FY ,000 USLD Goldman, Sachs & Co. 3/10/2017 $ $ 259,392 10,500,000 $ $ 14,807,398 1 FY ,000 USLD Merrill Lynch 11/4/2016 $ $ 1,338,414 2 FY2019 2,520,000 USLD Goldman, Sachs & Co. 5/2/2017 $ $ 3,893,400 3 FY2019 1,344,000 USLD Goldman, Sachs & Co. 6/13/2017 $ $ 2,007,936 4 FY ,000 USLD Merrill Lynch 6/23/2017 $ $ 749,700 5 FY2019 5,124,000 USLD Goldman, Sachs & Co. 2/9/2018 $ $ 9,142,925 10,332,000 $ $ 17,132,375 1 FY2020 1,260,000 USLD Goldman, Sachs & Co. 2/9/2018 $ $ 2,239,524 2 FY2020 2,520,000 USLD Goldman, Sachs & Co. 11/21/2018 $ $ 4,911,543 3 FY2020 2,520,000 USLD Merrill Lynch 12/26/2018 $ $ 4,275,180 5

88 ATTACHMENT B

89 METRO FY2019 Settlement Summary Swap Receipts From/ (Payments To) Trader/s Month Fuel Source Gallons in Financial Hedge Gallons Purchased Gallons Used Gallons Used Variance (1) Oct-18 Financial Hedge 882,000 1,025, ,083 69,083 $ 557,021 Nov-18 Financial Hedge 840, , ,613 48,613 $ 283,710 Dec-18 Financial Hedge 882, , ,774 (1,226) $ 87,028 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Total 2,604,000 2,778,730 2,720, ,470 $ 927,759 NOTE 1. The gallons above the financial hedge volumes, as shown in the variance, were bought at the prevailing market prices. 7

90 FORM SUBJECT: AGENDA ITEM #: Briefing on Sales & Use Tax Series 2018A Contractual Obligations DEPARTMENT: Finance : PRESENTER: Arthur C. Smiley III AGENDA MONTH: January 17, 2019 This is an update briefing on METRO's Sales & Use Tax Series 2018A Contractual Obligations priced on November 28, The objective of the financing is to fund FY2019 and FY2020 expenditures totaling up to $140 million for the following: FY2019 FY2020 TOTAL Buses $ 45,277,000 $ 42,317,000 $ 87,594,000 Small Equipment (including Farebox Equipment) $ 11,652,000 $ 18,702,000 $ 30,354,000 Light Rail Vehicles $ 22,052,000 $ 22,052,000 Total: $ 78,981,000 $ 61,019,000 $ 140,000,000 Per Board Resolution, METRO proceeded with the appointment of its Co-Bond Counsels, Disclosure Counsel, and underwriting syndicate, as well as authorized staff to approve the amount, rate, terms and pricing of these obligations and to execute all documents related to the transaction, including the use of a preliminary offering document for $121.9 million in Sales and Use Tax Contractual Obligations (KO's). On November 14, 2018, S&P Global awarded METRO a "AAA" rating. This reflects S&P Global's highest ranking and an upgrade from last year's "AA+." Additionally, Moody's assigned the Series 2018 bonds a "Aa2" rating, which matched the rating given by Moody's to METRO bonds issued in On November 28, 2018, METRO priced its contractual obligations and realized a lower interest rate of 2.89% versus its projected 3.21%. This decrease resulted in $5,380,065 less in debt service over the life of these obligations. Form #: EXO-FOR-001 Current Version: 1.0 Effective as of: 09/25/18 THIS IS A CONTROLLED DOCUMENT / VERIFY VERSION LEVEL PRIOR TO USE Current Version Due for Review on: 09/01/19

91 Finance & Audit Committee January 2019

92 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

93 3