Popular Annual Financial Report. Fiscal Year Ended June 30, 2015

Transcription

1 Popular Annual Financial Report Fiscal Year Ended June 30, 2015 MIAMI-DADE COUNTY EXPRESSWAY AUTHORITY d/b/a Miami-Dade Expressway Authority and MDX 3790 NW 21st Street Miami, Florida

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3 Message from the Executive Director This is the fourth year that we prepare the Popular Annual Financial Report (PAFR) for the Fiscal Year ending June 30, The report is intended to be a simpler version of our financial statements and focuses on our toll customers to understand where their tolls are spent. In addition, the report highlights our recent accomplishments, provides an update of major improvements, and offers a snapshot of MDX s financial health for Fiscal Year We are keeping our commitments to our toll customers; construction is underway on improvements on SR 836 from 57th Avenue to 17th Avenue; we entered into a partnership agreement with the Florida Department of Transportation for improvements on SR 836 from 17th Avenue to I-395; and construction will begin in calendar year 2016 for the new ramp connecting 128th Street onto SR 874. We promised the community specific projects and we are honoring those commitments. This year we established the Cash Back Toll Dividend Program. The Program is unique to government and demonstrates MDX s willingness to be accountable on running an efficient, lean organization and keeping to the no big government philosophy. Once MDX meets its financial and operational performance measures a cash back will be returned to the toll customers. The requirements are simple: a customer must use SunPass, pay at least $100 in tolls during the fiscal year on any of MDX s expressways, and register with MDX. Cash back checks are mailed to those qualifying customers by December. MDX s efforts go beyond our five expressways. We believe in a multi-modal transportation system which is essential for Miami-Dade County to thrive. This is why we have and will continue to support our transit partners. We have already invested in several projects, such as buses on shoulders on our expressways, entering into agreements with transit to use our right of way for transit purposes, manage and construct a future Park & Ride Facility, and incorporate transit friendly design in all future improvement projects. For a community that is in a continual growth pattern, transportation is challenging, but with planning, partnering and decisiveness, transportation solutions can be delivered. We look forward to continue to provide transportation options for our community. I would like to thank our Board Members and the MDX staff for their continued support. Javier Rodriguez, P.E. Executive Director 1

4 Reporting MDX is subject to an annual financial audit conducted by an independent third party audit firm who provides an opinion that the financial statements are presented fairly in all material respects. In addition to the financial statements, MDX is required to file other information with the Security Exchange Commission, MDX s Trustee, State Single Audit Division, Rating Agencies, State of Florida Auditor General, and the Florida Transportation Commission who monitors MDX s performance on operations, maintenance and budgetary compliance. MDX CAFR and PAFR We prepare a Comprehensive Annual Financial Report (CAFR) which includes detailed financial statements in compliance with the accounting requirements established by the Governmental Accounting Standards Board (GASB) and Generally Accepted Accounting Standards (GAAP). The CAFR includes a management discussion analysis, financial statements, notes to the financial statements, other required information per the Trust Indenture and a statistical section. This MDX Popular Annual Financial Report (PAFR) is an unaudited summary of MDX s financial activities written in a non-technical format. The MDX CAFR and PAFR are available at Relations/Annual Reports. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Chief Financial Officer, Miami-Dade Expressway Authority, 3790 N.W. 21st Street, Miami, FL at (305) History of MDX The Miami-Dade Expressway Authority was created in December 1994 by the Miami- Dade County Commission to establish local control of toll revenues and to ease traffic congestion on five major roadways in Miami-Dade County. With the passage of Florida legislation in December 1996, MDX took over operational and financial control of five of the busiest roadways in Miami-Dade County. Legend State Road 112/Airport Expressway State Road 836/Dolphin Expressway State Road 874/Don Shula Expressway State Road 878/Snapper Creek Expressway State Road 924/Gratigny Parkway Florida DOT Miami-Dade Exprsswy Auth Florida s Turnpike MDX s five roadways cover more than 33.6 center-lane miles and are the most critical east-west roadways in the county. 2

5 Board of Directors Our 13-member board of directors has a broad cross-section of transportation, business and professional expertise, as well as civic, environmental, county and state interest commitment. Of the 13 members, 12 are non-paid local business and civic leaders. The 13th member is the Florida Department of Transportation District Six Secretary, who serves as an ex-officio MDX board member. Of the 12 volunteers, Florida s Governor appoints five and the Miami-Dade Board of County Commissioners appoints the remaining seven members. The current board members are: Louis V. Martinez, Esq., Board of County Commissioners Appointee (Chair) Shelly Smith Fano, Governor of Florida s Appointee (Vice Chair) Rick Rodriguez Piña, Board of County Commissioners Appointee (Treasurer) Gus Pego, P.E., District VI Secretary José Pepe Cancio, Governor of Florida s Appointee Maurice Ferré, Board of County Commissioners Appointee Alfredo Gonzalez, Esq., Board of County Commissioners Appointee Maritza Gutierrez, Board of County Commissioners Appointee Robert W. Holland, Esq., Board of County Commissioners Appointee Arthur J. Meyer, Board of County Commissioners Appointee Javier L. Vazquez, Esq., Governor of Florida s Appointee Cliff Walters, Governor of Florida s Appointee Luz Weinberg, Governor of Florida s Appointee Staff We operate in Miami-Dade County with a staff of approximately 45 professionals supported by contracted consultant assistance for specific tasks. Our staff has roots in the community, uses the system daily and is committed to making your commute safer and more efficient. Our management philosophy is one of personal accountability, integrity, transparency and dedication. Cost Of Congestion The Texas Transportation Institute (TTI) publishes an annual Urban Mobility Report which provides information on national congestion trends, most recent congestion comparisons and congestion improvement strategies for the previous year. Congestion is measured by TTI in terms of traveler delay (or auto commuter) and is calculated as the time difference between the average speed and the free flow speed on a roadway segment for vehicle occupants. What did it mean to you as a Miami commuter in 2014? (Figures per commuter per year) 52 hours of delay 12th rank in delay in the nation $1,169 in loss time 24 gallons of excess fuel consumption MDX Organizational Chart Director of Engineering Capital Projects Communications Information Technology Maintenance As population and economic growth increase so will the traffic delays. Congestion will not go away by itself Solutions and Action are needed. Board of Directors Executive Director Chief Financial Officer Financial Reporting/ Budgeting HR Administration Procurement General Counsel Director of Toll Operations Toll Operations ITS Reliable transportation choices may mean the difference between making a flight, missing an appointment or making it to your child s game. 3

6 HIGHER PROPERTY VALUE CREATE OPPORTUNITIES FOR JOBS AND TALENT BETTER QUALITY OF LIFE EFFICIENT TRANSPORTATION SYSTEM ECONOMIC GROWTH ENVIRONMENTAL SUSTAINABILITY Transportation systems are the connection and foundation for everyone and everything, everywhere. Congestion does not only affect our daily commute, but it impacts our community s economy. Miami-Dade County s economy depends primarily on tourism and international trade. Residential areas must have access to job centers, which have a direct correlation to home values. Commercial areas require a reliable transportation system in order to efficiently move goods and provide services. Visitors need to reach the tourist destinations, as well as airports and sea ports. We all depend on efficient transportation options. Improving the County s transportation network will make further economic development possible. Why Tolls? Historically, the Interstate Highway System has been funded through the State Highway Trust Fund (HTF) which is funded primarily by fuel tax collected by the federal, state, and local governments. Proceeds are then distributed by Congress through a formula-based allocation. However, as the cost of maintaining the existing roadway infrastructure has grown, very little has been left for funding of new highway construction. As funding for expressways, roads and bridges decline, there has been a need for user fees (tolls) in order to fund transportation projects such as safety initiatives, expansions of existing structures, new bridges and expressways. Tolls are a fee that applies only to the user of the road. Tolls allow new roads to be built, improved and maintained without raising taxes on the general public. COMMUTER MDX Special District MDX is responsible for the collection and stewardship of toll dollars collected on its 5 expressways. MDX does not receive any revenue from the State of Florida, the Miami-Dade County half cent sales tax, or from state or federal gas taxes. MDX s primary source of revenue is the tolls collected on its five expressways which are used to operate, maintain and improve the Expressway System. These tolls allow MDX to improve mobility and offer transportation choices within Miami-Dade County. MDX keeps your toll dollars in Miami-Dade County; funding is not diverted to other parts of the State. BENEFITS Better Driving Experience Mobility & Connectivity ROI (Cash Back Dividend) Support Local Economy Safety Home Value Jobs MDX Philosophy Accountability MDX is responsive to the public and stakeholders. Transparency MDX information is available on its website and business activities are conducted in public forum. Committee and Board meetings recorded and/or webcast. Accessibility MDX is local so the public has access and is encouraged to be involved with projects or express their opinion to the governing board. Small Government MDX is a lean, streamlined and efficient organization. P N O TOLLS 4

7 MDX is addressing the congestion problems in Miami-Dade County by using technology to add capacity; extending its system of expressways to connect to major activity centers for people and freight; and improving travel time reliability, while providing the public with the assurance that their toll dollars are being spent wisely. How are projects funded? MDX s primary source of revenue is the tolls collected on the MDX roadway system. In order to fund the continual rising cost of construction for the various roadway improvements, MDX borrows money by selling bonds and uses the revenues as collateral. Similar to a mortgage loan where collateral is offered to the bank to secure the loan until fully paid, MDX offers the projected revenues as assurance that the bond s principal and interest will be paid. What happens to the toll money MDX collects after projects are constructed? Since revenues are leveraged over a 30 year period, once projects are constructed these tolls pay for the principal and interest of the bonds issued to fund those projects. In addition, just like a house that needs maintenance to keep it in good condition, the expressways need to be maintained as well, in order to sustain its benefits and protect YOUR investment. The goal of maintenance is to preserve all parts of the road such as pavement, shoulders, slopes, drainage and other structures as near to their as-constructed condition as possible. MDX invests in the regular and periodic maintenance of its roads because postponing maintenance and repairs results in higher costs later on. The cost of transportation and construction - like that of food and energy - continues to increase. Consequently,the sooner an improvement is funded, the less costly it is. As of June 2015, MDX has: Invested over $1.25 billion in completed projects and another $420 million in ongoing projects Contributed over $500 million toward joint construction projects with other state and local governmental agencies Programmed to invest over $700 million toward projects in the upcoming five years Resurfaced all of the MDX System Performed system-wide bridge upgrades Our Work Program MDX has a Long-Range Master Transportation Plan (LRMTP) that identifies regionally significant transportation projects that MDX is examining for future implementation. Long range projects are conceptual in nature and require significant planning including engineering, finance, political and public acceptance. The MDX LRMTP is made part of the Miami-Dade County Metropolitan Planning Organization s (MPO) Long-Range Transportation Plan (LRTP) which guides transportation investments in Miami-Dade County through the next twenty five years with the purpose of achieving the best mobility connections. A thorough feasibility analysis is performed on projects that are prioritized for implementation including the cost of constructing all phases of the project, the cost of maintaining it, and its projected revenue. Projects that are deemed financially feasible and adopted by the MDX Board are included 5

8 MDX LRMTP Is project financially feasible? 6 YES MDX 5-YEAR WORK PROGRAM NO in the Five-Year Work Program. Other projects may remain in the LRTMP until such time as they are financially feasible. The number of projects that is added into the Work Program is contingent upon MDX s ability to fund them while maintaining existing programs. The MDX Five-Year Work Program identifies those financially feasible projects that MDX will be implementing in a five (5) year period. The MDX Five-Year Work Program is updated on an annual basis in accordance with MDX s priorities of Safety, System Preservation and Mobility Improvements. The current MDX FY Work Program includes approximately $1.3 billion in projects that result in enhanced connectivity, greater mobility, improved standard of living and accelerated economic development in Miami-Dade County. Honoring Our Commitments By maximizing technology, eliminating tollbooths and converting to all-electronic toll collection we are able to make your commute safer and more efficient. In addition, as our community continues to grow and expand, it is important that our infrastructure not only keeps up with the current demand but also be planned for the needs of future generations. MDX committed to allocating all new collected and bonded money to the following projects and here s an update on promises kept: Project SR 836/Dolphin Expressway and I-95 Interchange Improvements: Preliminary design complete. Construction to advertise in 2016 in partnership with FDOT. Project SR 836/Dolphin Expressway Improvements from 57th Avenue to 17th Avenue including interchanges at 57th Avenue, LeJeune, and 27th Avenue Construction underway. To be completed in Project SR 836/Dolphin Expressway improvements of interchange at 87th Avenue Final Design complete. Construction to begin in Project SR 874/Don Shula Expressway Ramp Connector Construction underway. To be completed in SAFETY SYSTEM PRESERVATION MOBILITY IMPROVEMENTS 85% of MDX s new revenues are being invested in SR 836 to strengthen the Airport to Seaport Connection and the State s investment in Port Miami and MIA Project SR 924/Gratigny Expressway West Extension to Turnpike (Final Design only) Final Design to begin in Construction not yet funded. The following pages contain maps showing the existing conditions with drawings showing the ongoing improvements under each of the projects listed above.

9 W Okeechobee Rd NE 215th St Ives Dairy Rd I 441 NE 185th St SUNNY ISLES BEACH Medley E 49th St W 49th St W Ok ee ch Hialeah ob ee Rd 932 Tri-Rail E 8th Ave SW 42nd Ave d er R Cutl Miami d lv e B Dad Venetian Causeway Por t Mac A rth C Blvd ausew ur ay 5th St South Beach SW 22nd St 1 csx 5 ll I 9 ricke B Fisher Island e Av Virginia Key Ric Ca ken us bac ew ke ay r Biscayne Bay ndo n B d Coconut Grove co Old SW 57th Ave hin y Dolp sswa re Exp plu m Rd Coral Gables Key Biscayne Killian Dr Rd 1 US Pinecrest SW 136th St SW 136th St Florida St Preservation Area Ludlam Rd SW 112th St tler Py SW 102nd Ave Cu n Julia Tuttle Causeway Old lia SW 77th Ave Kil 195 SW 104th St SR MDC NE 36th St Cra SW 67th Ave S LeJeune Rd Co x cs Ex la hu ns Do 87 4 Kendall SW 97th Ave SW 117th Ave SW 127th Ave 1 SW 27th Ave csx Palmetto Expressway SW 87th Ave la hu ns Do 4 87 South Miami Snapper Creek Expressway wy SR SW 88th St SW 104th St Kendall-Tamiami Executive Airport SW 40th St SW 72nd St 878 SW 37th Ave SW 97th Ave 985 SW 107th Ave Florida s Turnpike I 195 SW 7th St Little Havana Coral Way Snapper Creek SW 72nd St N Kendall Dr SW 120th St West Miami Bird Rd 821 Sunset Dr SW 157th Ave SW 167th Ave SW 137th Ave SW 56th St csx csx SW 127th Ave SW 137th Ave SW 147th Ave SW 42nd St 972 er NW 37th Ave iry SW 26th St SW 24th St Riv SW 8th St 90 FIU Tamiami Park Miami Beach SR Da Sweetwater SW 8th St 63rd St North Bay Village Airport NW 17th Ave csx r th MIC W Flagler St 968 JF Kennedy Causeway NE 79th St NW 79th St NW 21st St am Collins Ave Miami Shores 112 t Expy No 3 2 SR 836 NE 103rd St I 95 csx NW 37th Ave SR 826 NW 72nd Ave Airpor Virginia Gardens NW 36th St Surfside Indian Creek Village Liberty City na Miami International Airport NW 87th Ave NW 107th Ave Krome Ave SW 177th Ave Po in 1 Biscayne Park Little Haiti cia Mil NW 12th St Ro y al Doral Dolphin 27 NW 42nd Ave SR 821 Miami Springs 96th St 924 El Portal E 25th St NW 58th St NE 125th St ATLANTIC OCEAN Bal Harbour Bay Harbour Islands ton Ave s NE 119th St Pkwy 826 en igny North Miami Alton Rd rd Grat FIU NE 135th St MDC NORTH CAMPUS Ga ka Amelia Earhart Park NW 27th Ave ah py W 4th Ave le OpaLocka Washing oc Ex ia ve aa Bab NW 7th Ave al Ali I 95 Op Opa-Locka Airport W 84th St North Miami Beach NE 6th Ave NW 57th Ave Gratigny 924 Doug las Rd pike Florid a s Turn 99 7 Miami-Lakes 8 Blv Sunny Isles NE 163rd St H d NE 167th St GOLDEN BEACH A1A 91 Miami Gardens Aventura an Lehm William ay Causew US 441 NW 183rd St NW 37th Ave NW 186th St 95 Bisca yne Bd NW 199th St NE 203rd St NW 2nd Ave BROWARD COUNTY MIAMI-DADE COUNTY Ocean Dr 821 Chapman Field Park Coral Reef Dr SW 152nd St 992 Palmetto Bay SR 821 Richmond Dr SW 87th Ave Hw y ie Dix S Florida s Turnpike SW 112th Ave SW 162nd Ave Cutler Bay SW 216th St cs x SW 232nd St ean ribb Ca Mainlin Mill Dr d Blv Rd SW 127th Ave njo Fra SW 200th St Old SW 184th St Eureka Dr Quail Roost Dr Cu tler Rd SW 137th Ave Krome Ave SW 177th Ave SW 147th Ave cs x 1 SW 168th St 1 82 SR SW 288th ST SW 137th Ave S Dix ie Hw y SW 272nd St 1 SW 152nd Ave csx SW 256th St SW 296th St gle ra ve 15th 6th 7th 180th 187th 5th Florida City 360th a s rid SE 12st Ave S Krome Ave NE 1st Ave 3rd 6th N 14th ike Flo Projects funded in MDX 5-Year Work Program SW 312th ST NE 8th ST Fla 8th rnp Tu Project No: N Canal Dr SW 328th St Homestead SW 344th St Description SR 836 / Widening from 17th Avenue to I-95 Interchange SR 836 Operational, Capacity and Interchange Improvements SR 836 Interchange Modifications at 87th Avenue SR 874 Ramp Connector to SW 128th Street SR 924 Final Design for Extension West to Homestead Extension of the Florida s Turnpike Old Ca rd So Hy S Dixie und MDX System Map 7

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35 Partnering To reduce construction costs and avoid unnecessary inconvenience to the traveling public within Miami-Dade County, MDX actively partners with other transportation agencies in the completion of roadway projects of great significance to our community. Project / Agency Total Project Cost MDX Contribution Miami Intermodal Center (MIC) / FDOT $1.6 billion $86.5 million Facilitated the MIC by reconstructing adjacent roadway network and acquisition of right-of-way SR 836/SR 826 Interchange Improvements / FDOT $570 million $215 million Advanced the right-of-way, design and construction SR 836 Connector to I-95 / FDOT $70 million $35 million Advanced final design and construction of new connector serving SB I-95 traffic destined WB on SR 836 SR 874/SR 826 Interchange Improvement / FDOT $180 million $60 million Allowed the project to be advanced in one phase Central Boulevard Reconstruction / FDOT & MDAD $70 million $31.5 million Reconstruction of the main entrance to MIA MIC Earlington Heights $506 million $4.3 million Acquired 12 parcels for joint use by MDX/MDT MDX understands no one mode of transportation will solve our community s congestion problem; this is the reason why we partner with other transportation agencies to implement alternative transportation options and to support the use of transit. MDX has and continues to support our transit partner: Buses on the shoulders Operation of buses on expressway shoulders under specific traffic-congestion conditions; removing buses from the slow traffic thus speeding passengers to their destination and providing an attractive alternative to auto commuters. Dolphin Park & Ride Construction of a parking facility with bus only roadway connections to future Homestead Extension of the Florida s Turnpike HEFT truck travel center and the Dolphin Mall. Only a multi-modal transportation system will promote economic development in Miami-Dade County and provide for an excellent quality of life in our community. 25

36 Financial Information Operating Revenue Tolls and fees: are generated from customers who pay a user fee (toll) to use the MDX expressways. Customers are able to pay with an active SunPass account or by Toll-By- Plate (TBP). Customers paying by TBP receive an invoice with an image of their license plate and a listing of all their toll transactions at the TBP rate. Fees are generated from late fees, fines or penalties. Other revenue: is generated from property leases, permits and other. Operating Expenses Operations: includes cost to collect tolls, SunPass transponder subsidy programs, Road Rangers Service, traffic management center, incident management, roadway insurance, billing processing of toll transactions and lighting of the system. Maintenance: includes the cost to maintain the expressways in good condition. This includes cleaning up the expressway of trash and graffiti, guardrail repair, inspection of bridges and upgrading lighting/signage. Professional contracted services: includes cost for professional consultants including public communications and external auditors. Administration: includes employee salaries and benefits, small business outreach, insurance, and other overhead costs needed to operate the organization. Depreciation and amortization: is an expense which reflects the reduction in value of an asset over time as its useable life is exhausted. Non-Operating Revenue/(Expenses) Investment income: is generated from interest/dividend income earned from cash on hand. Miscellaneous income: is generated from other non-operating activities. Interest: is an expense for the cost of money. Bond issuance: is an expense for professional services related to issuing debt. Disposal of assets: is a write-off of an asset that no longer has a use or is impaired. Contributions for capital projects are generated from grant revenues or giving and receiving assets to and from other entities. Fiscal Years 2015, 2014 and 2013 Financial Statement Results Revenues and expenses are part of the income statement also referred to as the Statements of Revenues, Expenses and Changes in Net Position. See additional detail in the CAFR. Total operating revenues were $183.5 million, $130.0 million and $135.4 million for fiscal years 2015, 2014 and 2013, respectively. For fiscal years 2015, 2014 and 2013, toll and fee revenues, net, were $182.8 million, $129.2 million and $134.4 million, respectively. The increase in fiscal year 2015 over 2014 of $53.6 million was primarily due to converting the last two expressways, SR 836/Dolphin Expressway and SR 112/Airport Expressway, to Open Road Tolling (ORT). The decrease in fiscal year 2014 over 2013 of $5.4 million was due to delays in TBP billings. Total operating expenses were $74.6 million, $66.1 million and $56.4 million for fiscal years 2015, 2014 and 2013 respectively. The increase in fiscal year 2015 over 2014 of $8.5 million was primarily due to additional operating expenses from the conversion of ORT lane software and an increase of ITS expenses. The increase in fiscal year 2014 over 2013 of $9.7 million was due to the operating cost for a new system provider, additional maintenance and litigation. 26

37 Total non-operating revenues (expenses) were $66.4 million, $49.7 million and $39.3 million for fiscal years 2015, 2014 and 2013, respectively. The increase in fiscal year 2015 over 2014 of $16.7 million was primarily due to interest expense and disposal of impaired assets, offset by a decrease in bond issuance expense. The increase in fiscal year 2014 over 2013 of $10.4 million was primarily due to interest expense and disposal of impaired assets, offset by an increase in non-operating revenue and miscellaneous income for a debt extension payment to MDX. Contribution for capital projects were $12.4 million, $11.5 million and $6.9 million for fiscal years 2015, 2014 and 2013, respectively. The increase year over year was due to contribution of assets to/from MDX. Change in net position was $54.9 million, $25.6 million and $46.6 million for fiscal years 2015, 2014 and 2013, respectively. Statements of Revenues, Expenses and Changes in Net Position Fiscal Years (Figures shown in Thousands) Revenues: Toll and fee revenues, net $182,824 $129,217 $134,412 Non-operating revenues 2,064 6,492 3,845 Other revenues ,005 TOTAL REVENUES 185, , ,262 Expenses: Operations 32,628 23,537 16,719 Maintenance 6,843 6,397 5,887 Administration & professional contracted services 5,985 6,742 5,142 Depreciation and amortization 29,181 29,461 28,643 Non-operating expenses 68,475 56,215 43,160 TOTAL EXPENSES 143, ,352 99,551 Change in net position: Income before contributions for capital projects 42,494 14,160 39,711 Contributions for capital projects 12,450 11,474 6,915 Change in net position 54,943 25,634 46,626 Net position, beginning of year 508, , ,849 GASB 68/71 Implementation (2,545) - - NET POSITION, END OF YEAR $560,507 $508,109 $482,475 Assets are resources with economic value that MDX owns or controls such as cash reserves, receivables, expressways, structures and buildings. Current Assets: are any asset reasonably expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year, operating cycle or within one year. Cash, short-term investments, accounts receivable and prepaid expenses are considered current assets. Capital Assets: are long term assets such as land, bridges, buildings and equipment, and construction in process. Other Assets: consist of bond insurance which is amortized over the life of the debt. Deferrals. Deferred inflows of resources are future revenues while deferred outflows of resources are future expenses. 27

38 Liabilities are legal debts or obligations that arise during the course of business operations such as outstanding vendor invoices, loans and bonds. Current liabilities: consists of accrued expenses, and accounts/contract payable that will be paid within 1 year. Revenue bonds payables, net of current portion: are long-term obligations to be repaid over time. Bonds are issued for the purpose of funding infrastructure. Other long-term liabilities: consist of other debt obligations such as government loans from the State of Florida. Net position refers to the residual value left after the deduction of liabilities/deferrals from total assets/deferrals. Over time, increases or decreases in net position are useful indicators of whether the organization s financial position is improving or deteriorating. Statements of Net Position. Assets, deferrals, liabilities, and net position are part of the balance sheet also referred to as the Statements of Net Position. See additional detail in the CAFR. Total Assets and Deferrals As of June 30, 2015, 2014 and 2013, total assets and deferrals were $2.3 billion, $2.2 billion and $1.9 billion respectively. Assets and deferrals increased in fiscal year 2015 over 2014 approximately $62.9 million primarily due to an increase in accounts receivable and capital assets, partially offset by a decrease in deferrals and cash/investments. Assets and deferrals increased in fiscal year 2014 over 2013 approximately $351.5 million primarily due to bond proceeds in cash and investments, offset by a decrease in deferrals. Capital Assets As of June 30, 2015, 2014 and 2013, capital assets, net, were $1.6 billion, $1.5 billion and $1.4 billion. Capital Assets, net Fiscal Year 2015 Fiscal Year % 0.0% 4.9% 35.8% 26.5% 0.7% 1.5% Right to operate the system Land Construction in progress Furniture and equipment Buildings, toll facilities and improvements Infrastructure Other assets Total Liabilities and Deferrals As of June 30, 2015, 2014 and 2013, total liabilities and deferrals were approximately $1.7 billion, $1.7 billion and $1.4 billion, respectively. Total liabilities and deferrals increased in fiscal year 2015 over 2014 approximately $10.5 million primarily due to an increase in current liabilities and revenue bonds payable, offset by derivatives fair market value as two of the three swap agreements were terminated during the year. Total liabilities and deferrals increased in fiscal year 2014 over 2013 approximately $325.9 million primarily due to revenue bonds payable, offset by a decrease in other long-term liabilities. 28

39 Long-Term Liabilities The Authority s outstanding long-term bonds payable totaled: Fiscal Years (Figures shown in Thousands) Bonds outstanding $1,501,165 $1,510,286 $1,210,028 Net bond discount/premium 102,404 70,544 44,920 Total revenue bonds, net 1,603,569 1,580,831 1,254,949 Current portion of revenue bonds -8,040-4,687-13,787 Total long-term revenue bonds $1,595,529 $1,576,144 $1,241,162 Fixed Debt 95% 84% 80.1% Variable Debt 5% 16% 19.9% Revenue Bonds Outstanding by Series 5.0% 6.4% Fiscal Year Revenue Bonds SIB Loans 23.6% TFRTF Loans FDOT Total Debt 2015 $ 1,603,569 $ 11,975 $ 3,750 $ - $ 1,619, ,580,831 16,281 4,500-1,601, % ,254,949 22,459 5, % 1,282, ,248,549 30,463 5,750-1,284, ,252,654 39,466 6,000-1,298, ,184 41,613 6, , ,085 42,613 4, , ,607 46,113 4, , ,762 57,613 3,617-1,008, ,507 56,799 2,285 1, ,8584.7% ,543 45,000 2,453 2, , ,013 37,500 1,009 5, , ,677 10,600 1,009 6, , , ,009 7, , ,636 1,009 9, , ,738 1,009 11, , % ,000 1,010 10,437 91, % , ,666 90,003 Statement of Net Position 2005A-E A 2013A 2013B 2014A 2014B Amortization Fiscal Years (Figures shown in Thousands) Assets and deferrals: Current and other assets $335,452 $218,329 $146,584 Restricted non-current assets 295, , ,019 Capital assets, net 1,578,347 1,475,941 1,395,190 Deferred outflows of resources 64,724 69,941 71,701 TOTAL ASSETS AND DEFERRALS 2,273,888 2,210,992 1,859,494 Liabilities and deferrals: Current liabilities 93,200 57,061 64,021 Long-term Liabilities 1,616,584 1,643,504 1,312,999 Deferred inflows of resources 3,596 2,318 - TOTAL LIABILITIES AND DEFERRALS 1,713,381 1,702,883 1,377,020 Net position: Net investment in capital assets 211, , ,634 Restricted 167, , ,851 Unrestricted 181, , ,990 TOTAL NET POSITION $560,507 $508,109 $482,475 29

40 Bond Ratings During the annual review or when new debt is issued, the financial strength of MDX is reviewed by independent rating agencies Moody s, Standard & Poor s, and Fitch. The current ratings are: Moody s A3 Positive Outlook Standard & Poor s A- Stable Outlook Fitch A Stable Outlook The rating is assigned to determine an organization s ability and wiliness to repay its debt obligations. The highest rating is AAA and the lowest is a C. Like a personal credit report, the higher the rating, the lower the interest of borrowing. Senior Debt Service Coverage This ratio is a measurement that reflects MDX s ability to pay its annual debt service made up of both Principal and Interest. The MDX Trust Indenture, which is an agreement with bondholders, requires a debt coverage ratio of 1.2 each year. However, the rating agencies have set benchmarks of each rating level, so in order to maintain an A category the MDX governing Board has set the ratio at 1.5 or higher. The higher the ratio the lower the interest rate the Authority will obtain in its future borrowing. In Fiscal Year 2015, the Authority s senior debt coverage ratio for all revenue bonds was The coverage ratios are based on total revenues less operating expenses (without depreciation) divided by the current year principal and interest payments. Fiscal Years Revenues $186,049,533 $136,204,212 $145,529,825 Operating expenses 45,456,677 36,675,577 27,747,914 Net revenues $140,592,857 $99,528,635 $117,781,911 Senior lien debt service all bonds $63,374,038 $62,947,644 $75,340,620 Ratio of net revenues to senior lien debt service all bonds Paying Tolls Although SunPass is the most economical way, those without a transponder can also make use of the convenience of the expressways and pay a toll using Toll-By-Plate. An image of the vehicle s license plate is captured when passing under the toll gantry and an invoice is sent to the vehicle owner s address. We recommend getting a SunPass for commuters who drive the expressways more than 3 times a week. For toll rates see MDX website. Did you know? Funds can be added to your SunPass account without using a credit card. Getting a SunPass is now easier than ever! A SunPass transponder can be purchased online, by mail, by fax or at a retail location. A SunPass mini sticker has been made available so you can start using SunPass with as little as $4.99 plus tax. Go to for more information. Funds can be added to your SunPass account in a convenient way and without using a credit card: In Person using cash/check/money order at any Wells Fargo Bank branch (with a SunPass deposit ticket) or at any Cash Replenishment location throughout Florida (without a deposit ticket). By Mail using a check or money order along with a SunPass deposit ticket to the SunPass Customer Service Center. 30

41 Did you know? In fiscal year 2015, of the $98.4 million paid in service contracts, 39% went to small and local businesses. Our Community Small and Local Business Programs We are committed to providing equal opportunity for all businesses to participate in our procurement process by implementing checks and balances to ensure an open, fair, transparent and competitive procurement environment, while promoting the local economy. To ensure equitable participation of small and local businesses in its contracts, MDX has adopted a Small Business Participation Policy and a Local Business Participation Policy, both requiring that all service contracts valued at more than $25,000 include participation by both certified small and local businesses. We are very proud that in the last 5 fiscal years, MDX has paid out approximately $183 million to small and local businesses, which represents approximately 40% of all monies paid out in service contracts. In order to support the objective of these policies, the MDX for Business Program was developed, which provides small and local businesses as well as unemployed individuals with opportunities to learn, share ideas, network and become more marketable. We believe that education serves as the foundation for sustained economic development in Miami-Dade County; for that reason the MDX for Business Program offers the following opportunities: Educational Program free or discounted technical certifications and trainings to small and local businesses Career Enhancement Program free technical certifications and trainings to help unemployed individuals in the construction and engineering fields become more competitive in the job market MDX for Business Conference an annual event that provides invaluable benefits including networking opportunities, one-on-one meetings with industry representatives and informational breakout sessions. MDX is a strong advocate of partnerships to accomplish common goals. Through the MDX for Business Program, MDX collaborates with a multitude of Community Partners including local government, non-for-profit organizations and private sector corporations. These are just a few of our Community Partners: Florida International University Miami-Dade College Southern Florida Minority Supplier Development Council Miami-Dade County Miami-Dade Aviation Department Miami-Dade Public Schools Minority Business Enterprise Center 100 Black Men of South Florida NAACP, Miami-Dade Branch Local Municipalities 31

42 Cash Back Toll Dividend Program The Cash Back Toll Dividend Program replaces the Advantage Program. MDX has made it simpler eligible SunPass customers who register with MDX on an annual basis are able to receive cash back. After MDX meets its financial and operational objectives, a cash back to customers could be declared. Customers that spend at least $100 from July 1st to June 30th could receive a check. The cash back is declared no later than October of each year and checks are sent to customers mid December. The cash back amount depends on the amount of tolls paid - for example if a customer spends $260 and MDX declares 20% in cash back that customer would get a check for $52. The effect of the cash-back toll dividend lowers the effective toll rate. In our example the customer who drives the expressway 240 days a year and pays $260 - daily toll rate is $1.08, but after getting $52 back the effective toll rate is now $0.86. Again, the cash back program is an opportunity to share in MDX s success in managing the organization responsibly. There is no big government mentality. $2 million in dividend 37,951 qualified % of Average Projected Effective Users Users Tolls Paid Daily Tolls Cash Back Daily Tolls 20, $ $ $ $1.20 $ $45.00 $ $ , $ $ $ $2.40 $ $90.00 $ $1.68 3, $ $ $ $4.00 $ $ $ $ $ $4.01+ $ $2.81+ For more information about the new Cash Back Toll Dividend Program, please us at cashback@mdxway.com or call and speak to a Dividend Program representative Monday through Friday from 9:00 a.m. to 5:00 p.m. 32

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44 MIAMI-DADE COUNTY EXPRESSWAY AUTHORITY d/b/a Miami-Dade Expressway Authority and MDX 3790 NW 21st Street Miami, Florida