SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY

Transcription

1 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY AGENDA REGULAR MEETING To Be Held at 3:00 PM MAY25, Market Street, Mezzanine Level Philadelphia, PA 1. Approval of Minutes of the Regular and Special Meetings of April 27, Financial Report 3. Resolutions I. Budget, Planning & Information Technology Committee Review A. Adoption of Supplements to Tariffs that Govern Fares and Furnishing of Passenger Transportation B. Adoption of the Operating Budget for Fiscal Year 2018 and Fiscal Years Financial Projections C. The Capital Budget for Fiscal Year 2018, the Twelve-Year Capital Program and Comprehensive Plan, and Grant of Authority to File an Application for a State Grant Under Act 44 of2007, as Amended by Act 89 of2013 II. Administration Committee Review A. A ward of a Contract Pursuant to a Request for Proposals B. Authorization to Execute a Consultant Amendment III. Operations Committee Review A. Items for Consideration 1. Finding of Special Opportunity Approving Use of a Request for Proposals for Potential Redevelopment and Lease of the Gravers Lane Railroad Passenger Station in Philadelphia, Pennsylvania 2. Safety Inspector Certification and Recertification Training Program Performance Agreement By and Between SEPT A and PennDOT

2 Agenda May 25, 2017 B. Various Procurements C. Sole Source Procurements D. Change Orders 4. Report of General Manager I 2

3 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY FINANCIAL REPORT APRIL 2017 For Period Ended April 29, 2017 May 12, 2017

4 FINANCIAL REPORT - APRIL 2017 COMMENTARY Summary of Financial Results and Commentary GROUP 1 - CONSOLIDATED OPERATIONS (1.1) Consolidating Statement oflncome - (YTD) (1.2) Consolidating Statement of Revenue and Expense - (YTD) (1.3) Consolidating Statement oflncome - (One Month) (1.4) Consolidating Statement of Revenue and Expense - (One Month) GROUP 2 - CITY TRANSIT DIVISION (2.1) Comparative Statement of Income (2.2) Detail Income Statement - (One Month) (2.3) Detail Income Statement - (YTD) GROUP 3 - VICTORY DIVISION (3.1) Comparative Statement of Income (3.2) Detail Income Statement - (One Month) (3.3) Detail Income Statement - (YTD) GROUP 4 - FRONTIER DIVISION ( 4.1) Comparative Statement of Income ( 4.2) Detail Income Statement - (One Month) (4.3) Detail Income Statement - (YTD) GROUPS - REGIONAL RAIL DIVISION ( 5.1) Comparative Statement of Income (5.2) Detail Income Statement - (One Month) (5.3) Detail Income Statement - (YTD)

5 FINANCIAL REPORT - APRIL 2017 COMMENTARY Summary of Financial Results and Commentary

6 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY APRIL AND YEAR-TO-DATE RES UL TS OF OPERATIONS SUMMARY The following is a summary of Divisional operating results (i.e. deficit before operating subsidies) and consolidated results after subsidies for April 2017 and the ten-month period then ended. The results are compared to the Fiscal Year 2017 budget and to the prior year results in the accompanying financial statements. (IN THOUSANDS) TEN MONTHS DIVISION MONTH OF APRIL ENDED APRIL City Transit (45, 129) (43,063) (480,917) (462,329) Victory (5,667) (6,325) (60,869) (58,560) Frontier (2,022) (2,010) (20,797) (20,271) Regional Rail (12,266) (13,430) (165,527) (134,610) Total Deficit Before Subsidies (65,084) (64,828) (728, 110) (675,770) Operating Subsidies 69,122 65, , ,902 Surplus/(Deficit) After Subsidies 4, (12,313) 1, 132 Unrealized Investment Gain/(Loss) 308 (55) (1,047) 349 Surplus/(Deficit) after Investment Gain/(Loss) 4, (13,360) 1,481 The surplus after subsidies for the month of April was 4.0 million and the cumulative deficit for the ten months was 12.3 million. Passenger revenue for the month was 3.2 million (or 8.3%) lower than budget. Passenger revenue for the ten months of Fiscal 2017 was 38.6 million (or 9.6%) lower than budget. Shared Ride Program revenue was 136 thousand lower than budget for the month of April and was 1.4 million (or 8.7%) lower than budget for April year-to-date. Operating expenses for the month of April were 7.4 million lower than budget. For the ten-month period, operating expenses were 26.7 million (or 2.3%) lower than budget

7 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY APRIL AND YEAR-TO-DATE RESULTS OF OPERATIONS DIVISIONAL COMMENTARY ON APRIL AND YEAR-TO-DATE RESULTS CITY TRANSIT DIVISION The Division's operations for April 2017 resulted in a deficit before subsidies of 45.1 million for the month and a year-to-date deficit before subsidies of million, which is 0.3% lower than budget. Passenger revenue for the month of April was 2.3 million (or 9.6%) lower than budget. For the ten months of Fiscal 2017 total passenger revenue was 21.4 million (or 8.7%) lower than budget. Shared Ride Program revenue for April year-to-date was 1.4 million (or 8.7%) lower than budget. Operating expenses for the ten-month period were lower than budget. For the first ten months of the fiscal year, the operating deficit after subsidies was 8.6 million. VICTORY DIVISION The Division's operations for April resulted in a deficit before subsidies of 5.7 million bringing the cumulative deficit before subsidies for the ten months of the fiscal year to 60.9 million, which is 2.1 % higher than budget. Passenger revenue for April was 98 thousand (or 5.4%) lower than budget and for the ten months of Fiscal 2017 was 1.1 million (or 5.6%) lower than budget. Operating expenses for the ten-month period were higher than budget. For the first ten months of the fiscal year, the operating deficit after subsidies was 1.2 million

8 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY APRIL AND YEAR-TO-DATE RESULTS OF OPERATIONS FRONTIER DIVISION Operations for the month of April resulted in a deficit before subsidies of 2.0 million bringing the cumulative deficit before subsidies for the ten months of the fiscal year to 20.8 million, which is 0.5% lower than budget. Passenger revenue for April was 131 thousand (or 24.5%) lower than budget, and for the ten months of Fiscal 2017 was 379 thousand (or 6.7%) lower than budget. Operating expenses for the ten-month period were lower than budget. For the first ten months of the fiscal year, the operating deficit after subsidies was 384 thousand. REGIONAL RAIL DIVISION Operations for the month of April resulted in a deficit before subsidies of 12.3 million bringing the cumulative deficit before subsidies for the ten-month period to million, which is 8.3% higher than budget. April passenger revenue was 679 thousand (or 5.4%) lower than budget, and year-to-date passenger revenue was million (or 12.1 %) lower than budget. Operating expenses for the ten-month period were lower than budget. For the first ten months of the fiscal year, the operating deficit after subsidies was 2.1 million

9 FINANCIAL REPORT - APRIL 2017 GROUP 1 - CONSOLIDATED OPERATIONS ( 1.1) Consolidating Statement of Income - (YTD) (1.2) Consolidating Statement of Revenue and Expense - (YTD) (1.3) Consolidating Statement oflncome - (One Month) (1.4) Consolidating Statement of Revenue and Expense - (One Month)

10 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF INCOME TEN MONTHS ENDED APRIL 29, 2017 (THOUSANDS) CITY REGIONAL TRANSIT VICTORY FRONTIER RAIL DIVISION DIVISION DIVISION DIVISION BUDGET VARIANCE TOTAL BUDGET SEPTA AMOUNT AMOUNT PERCENT OPERATING REVENUES Passenger Revenue Other Operating Revenue 225,722 18,393 5, ,612 18,340 1, , , ,606 (38,578) (9.61) 30,223 29, Sub-Total - Operating Revenue Shared Ride Program 244,062 20,156 5, ,084 14, , ,953 (37,702) (8.75) 14,216 15,578 (1,362) (8.74) TOTAL REVENUE AVAILABLE FOR OPERATIONS 258,278 20,156 5, , , ,531 (39,064) (8.75) OPERATING EXPENSES 739,195 81,025 26, ,611 1, 135,577 1,162,320 26, DEFICIT BEFORE SUBSIDIES OPERATING SUBSIDIES (480,917) (60,869) (20,797) (165,527) 472,278 59,717 20, ,389 (728,110) (715,789) (12,321) (1.72) 715, , DEFICIT AFTER SUBSIDIES Unrealized Investment Gain/(Loss) DEFICIT INVESTMENT GAIN/(LOSS) (8,639) (1,152) (384)!2,138) (480) (26) (5) (536) (9,119) (1,178) (389) (2,674) (12,313). (12,313) (1,047). (1,047) (13,360). (13,360) Page 1.1 5/12/17

11 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES TEN MONTHS ENDED APRIL 29, 2017 (THOUSANDS) CITY TRANSIT VICTORY FRONTIER REGIONAL RAIL DIVISION DIVISION DIVISION DIVISION TOTAL SEPTA OPERATING REVENUES BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL Passenger Revenue 247, ,722 19,488 18,393 5,680 5, , , , ,028 Shared Ride Program 15,578 14, ,578 14,216 Investment Income ,523 Other Income 16,386 17,611 1,689 1, ,705 8,723 28,382 28,700 TOTAL OPERATING REVENUE 279, ,278 21,204 20,156 6_,291 5, , , , ,467 OPERATING EXPENSES Labor, including Paid Absences 348, ,322 37,779 37,956 15,106 14, , , , ,263 Fringe Benefits 232, ,500 22,312 21,917 6,870 6,944 64,847 60, , ,128 Material & Services 119, ,031 15,433 15,951 3,053 3,114 92,678 83, , ,805 Injuries & Damages 20,341 20,341 1,323 1, ,822 1,822 23,734 23,734 Propulsion Power 11,307 9,787 1, ,906 15,990 29,332 26,770 Fixed Rent 2,246 2, ,006 5,769 3,413 8,829 Fuel 16,795 15,327 2,544 2,587 1,835 1, ,603 19,931 Depreciation 10,976 10, ,962 4,912 16,171 16, 117 TOTAL OPERATING EXPENSES 761, , ,820 81,025 27, , , ,611 1,162,320 1,135,577 DEFICIT BEFORE SUBSIDIES (482,354) (480,917) (59,616) (60,869) (20,905) (20,797) (152,914) (165,527) (715,789) (728,110) OPERATING SUBSIDIES Federal 21,868 21,397 2,780 2, ,679 5,169 30,278 30,278 State 378, ,424 49,316 49,400 16,873 16,466 83,018 91, , ,991 Local 56,818 55,564 7,397 7,410 2,531 2,470 12,453 13,755 79,199 79,199 Lease Cost/Debt Service 23,859 23, ,597 51,597 75,611 75,611 Other-Route Guarantees 1,025 1, ,167 1,167 2,710 2,718 TOTAL SUBSIDIES 482, ,278 59,616 59,717 20,905 20, , , , ,797 DEFICIT AFTER SUBSIDIES (8,639) (1,152) (384) (2,138) (12,313) Unrealized Investment Gain/(Loss). (480) - (26). (5). (536). (1,047) DEFICIT AFTER INVESTMENT GAIN/(LOSS). (9,119) - (1,178). (389) - (2,674). (13,360) Page 1.2 5/12/17

12 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF INCOME ONE MONTH ENDED APRIL 29, 2017 (THOUSANDS) CITY REGIONAL TRANSIT VICTORY FRONTIER RAIL DIVISION DIVISION DIVISION DIVISION BUDGET VARIANCE TOTAL BUDGET SEPTA AMOUNT AMOUNT PERCENT OPERATING REVENUES Passenger Revenue Other Operating Revenue 21,957 1, ,816 1, ,903 39, 131 (3,228) (8.25) 2,804 2, Sub-Total - Operating Revenue Shared Ride Program 23,636 1, ,725 1, ,707 41,931 (3,224) (7.69) 1,297 1,433 (136) (9.49) TOTAL REVENUE AVAILABLE FOR OPERATIONS 24,933 1, ,725 40,004 43,364 (3,360) (7.75) OPERATING EXPENSES 70,062 7,556 2,479 24, , ,486 7, DEFICIT BEFORE SUBSIDIES (45,129) (5,667) (2,022) (12,266) (65,084) (69,122) 4, OPERATING SUBSIDIES 47,896 6,037 2,143 13,046 69,122 69,122 SURPLUS AFTER SUBSIDIES Unrealized Investment Gain/(Loss) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSSl 2, , ,038-4, ,346-4,346 Page 1.3 5/12/17

13 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES ONE MONTH ENDED APRIL 29, 2017 (THOUSANDS) CITY TRANSIT VICTORY FRONTIER REGIONAL RAIL DIVISION DIVISION DIVISION DIVISION TOTAL SEPTA OPERATING REVENUES BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL Passenger Revenue 24,277 21,957 1,825 1, ,495 11,816 39,131 35,903 Shared Ride Program 1,433 1, ,433 1,297 Investment Income Other Income 1,543 1, ,717 2_,636 TOTAL OPERATING REVENUE 27,294 24,933 1,994 1, ,481 12,725 43,364 ~004 OPERATING EXPENSES Labor, including Paid Absences 32,108 30,799 3,598 3,536 1,408 1,338 9,979 10,112 47,093 45,785 Fringe Benefits 22,526 22,067 2,180 2, ,705 5,874 32,082 30,687 Material & Services 11,633 11,564 1,458 1, ,954 6,528 24,335 19,893 Injuries & Damages 1,892 1, ,210 2,210 Propulsion Power 1, ,675 1,539 2,877 2,504 Fixed Rent Fuel 1,508 1, ,916 1,717 Depreciation 1,103 1, ,642 1,712 TOTAL OPERATING EXPENSES 72,079 70,062 7,704 7,556 2,564 2,479 30,139 24, ,486 ~088 DEFICIT BEFORE SUBSIDIES (44,785) (45, 129) (5,710) (5,667) (1,969) (2,022) (16,658) (12,266) (69,122) (65,084) OPERATING SUBSIDIES Federal 2,028 2, ,924 2,924 State 35,087 37,666 4,723 4,995 1,587 1,731 9,580 6,585 50,977 50,977 Local 5,263 5, , ,646 7,646 Lease Cost/Debt Service 2,304 2, ,984 4,984 7,303 7,303 Other-Route Guarantees TOTAL SUBSIDIES 44,785 47,896 5,710 6,037 1,969 2,143 16,658 13,046 69,122 ~122 SURPLUS AFTER SUBSIDIES - 2, ,038 Unrealized Investment Gain/(Loss) SURPLUS AFTER INVESTMENT GAINl(LOSS) - 2, ~346 Page 1.4 5/12/17

14 FINANCIAL REPORT - APRIL 2017 GROUP 2 - CITY TRANSIT DIVISION (2.1) Comparative Statement of Income (2.2) Detail Income Statement - (One Month) (2.3) Detail Income Statement - (YTD)

15 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CITY TRANSIT DIVISION COMPARATIVE STATEMENT OF INCOME PERIOD ENDED APRIL (THOUSANDS) ONE MONTH ENDED APRIL 29, 2017 TEN MONTHS ENDED APRIL 29, 2017 THIS YEAR LAST YEAR THIS YEAR LAST YEAR BUDGET AMOUNT ,277 1,584 25,861 ACTUAL AMOUNT 21,957 1,679 23,636 ACTUAL BETTER/ (WORSE) BUDGET% (9.56) 6.00 (8.60) ACTUAL AMOUNT 23,791 1,661 25,452 ACTUAL BETTER/ (WORSE) LAST YEAR% OPERATING REVENUES (7.71) Passenger Revenue 1.08 Other Operating Revenue (7.13) Sub-Total - Operating Revenue BUDGET AMOUNT 247, , ,049 ACTUAL AMOUNT ,722 18, ,062 ACTUAL BETTER/ (WORSE) BUDGET% (8.67) 8.46 (7.57) ACTUAL AMOUNT 236,119 17, ,123 ACTUAL BETTER/ (WORSE) LAST YEAR% (4.40) 7.86 (3.58) 1,433 1,297 (9.49) 1,433 (9.49) Shared Ride Program 15,578 14,216 (8 74) 15,210 (6.54) 27,294 24,933 (8.65) 26,885 (726) TOTAL REVENUE AVAILABLE FOR OPERATIONS 279, ,278 (7.63) 268,333 (3.75) 72,079 (44,785) 70,062 (45,129) 2.80 (0 77) 69,948 (43,063) (0 16) OPERATING EXPENSES (4 80) DEFICIT BEFORE SUBSIDIES 761,981 (482,354) 739, 195 (480,917) ,662 (462,329) (117) (4 02) 44,785 47, , OPERATING SUBSIDIES 482, ,278 (2.09) 463, , SURPLUS/(DEFICIT) AFTER SUBSIDIES (8,639) (18) Unrealized Investment Gain/(Loss) (480) 170 2, SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (9,119) 991 5, , (3.43) , (1.06) TOTAL VEHICLE MILES (4.05) SHARED RIDE PROGRAM IN ABOVE 54,291 4,689 51,517 4,258 (5.11) (9.19) 51,832 4,378 (061) (2.74) 15, , (11.12) (8.77) 15, (10.64) REVENUE PASSENGER JOURNEYS (3.70) SHARED RIDE PROGRAM IN ABOVE 159, , (8.88) (9.90) 152, (4.95) (7.35) Page 2.1 5/12/2017

16 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CITY TRANSIT DIVISION DETAIL INCOME STATEMENT ONE MONTH ENDED APRIL (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 23, ~ 25,452 1,433 26,885 (1,834) (7.71) (1,816) (7.13) (136) (9.49) (1,952) (7.26) OPERATING REVENUES Passenger Revenue 24,277 21,957 (2,320) (9.56) Investment Income Other Income 1,543 1, SUB-TOTAL 25,861 23,636 (2.225) (8.60) Shared Ride Program 1,433 1,297 (136) (9.49) TOTAL REVENUE AVAILABLE FOR OPERATIONS 27,294 24,933 (2.361) (8.65) ,634 1, ,999 ~ 69,948 (951) (1.83) (71) (6.63) (114) (0.16) OPERATING EXPENSES Labor & Fringe Benefits 54,634 52,866 1, Material & Services 11,633 11, Injuries & Damages 1,892 1,892 Propulsion Power 1, Fixed Rent (156) (72.56) Fuel 1,508 1, Depreciation 1,103 1,142 (39) (3.54) TOTAL OPERATING EXPENSES 72,079 70,062 2, (43,063) (2,066) (4.80) DEFICIT BEFORE SUBSIDIES (44,785) (45,129) (344) (0.77) 2,071 34,087 5,113 2, , , (5) (4.63) 4, OPERATING SUBSIDIES Federal 2,028 2, State 35,087 37,666 2, Local 5,263 5, Lease CosUDebt Service 2,304 2,304 Other - Route Guarantees TOTAL OPERATING SUBSIDIES 44,785 47, ,155 SURPLUS/(DEFICIT) AFTER SUBSIDIES 2,767 2,767 (18) 142 Unrealized Investment Gain/(Loss) ,297 SURPLUS/(DEFICIT) After Investment Gain/(Loss) 2,891 2,891 Page 2.2 5/12/2017

17 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CITY TRANSIT DIVISION DETAIL INCOME STATEMENT TEN MONTHS ENDED APRIL 29, 2017 (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 236, , , , ,333 (10,397) (4.40) , (9,061) (3.58) (994) (6.54) (10,055) (3.75) OPERATING REVENUES Passenger Revenue 247, ,722 (21,418) (8.67) Investment Income Other Income 16,386 17,611 1, SUB-TOTAL 264, ,062 (19,987) (7.57) Shared Ride Program 15,578 14,216 (1,362) (8.74) TOTAL REVENUE AVAILABLE FOR OPERATIONS 279, ,278 (21,349) (7.63) 545, ,066 21,294 11,151 2,745 21,638 10, ,662 (12,690) (2.33) (3,965) (3.36) , (150) (5.46) 6, (356) (3.35) (8,533) (1.17) OPERATING EXPENSES Labor & Fringe Benefits 580, ,822 22, Material & Services 119, ,031 (2,471) (2.07) Injuries & Damages 20,341 20,341 Propulsion Power 11,307 9,787 1, Fixed Rent 2,246 2,895 (649) (28.90) Fuel 16,795 15,327 1, Depreciation 10,976 10,992 (16) (0.15) TOTAL OPERATING EXPENSES 761, ,195 22, (462,3292_ (18,588) (4.02) DEFICIT BEFORE SUBSIDIES (482,354) _(480,917) 1, , ,315 54,347 23,429 1, ,150 (590) (2.68) 8, , (37) (3.45) 9, OPERATING SUBSIDIES Federal 21,868 21,397 (471) (2.15) State 378, ,424 (8,360) (2.21) Local 56,818 55,564 (1,254) (2.21) Lease CosUDebt Service 23,859 23,858 (1) (0.00) Other - Route Guarantees 1,025 1, TOTAL OPERATING SUBSIDIES 482, ,278 (10,076) (2.09) 821 (9,460) SURPLUS/(DEFICIT) AFTER SUBSIDIES (8,639) (8,639) 170 (650) Unrealized Investment Gain/(Loss) (480) (480) 991 (10, 110) SURPLUS/(DEFICIT) After Investment Gain/(Loss) (9, 119) (9,119) Page 2.3 5/12/2017

18 FINANCIAL REPORT - APRIL 2017 GROUP 3 - VICTORY DIVISION (3.1) Comparative Statement of Income (3.2) Detail Income Statement - (One Month) (3.3) Detail Income Statement - (YTD)

19 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY VICTORY DIVISION COMPARATIVE STATEMENT OF INCOME PERIOD ENDED APRIL (THOUSANDS) ONE MONTH ENDED APRIL 29, 2017 TEN MONTHS ENDED APRIL 29, 2017 THIS YEAR --- LAST YEAR THIS YEAR LAST YEAR BUDGET AMOUNT 1, ,994 ACTUAL ACTUAL BETTER/ BETTER/ ACTUAL (WORSE) ACTUAL (WORSE) BUDGET AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT OPERATING REVENUES 1,727 (5.37) 1,780 (2.98) Passenger Revenue 19, (4.14) 178 (899) Other Operating Revenue 1,716 1,889 (5.27) 1,958 (3.52) TOTAL REVENUE AVAILABLE FOR OPERATIONS 21,204 ACTUAL ACTUAL BETTER/ BETTER/ ACTUAL (WORSE) ACTUAL (WORSE) AMOUNT BUDGET% AMOUNT LAST YEAR% 18,393 (5.62) 18,668 (147) 1, , ,156 (4.94) 20,430 (1 34) 7,704 (5,710) 7, , OPERATING EXPENSES 80,820 (5,667) 0.75 (6,325) 1040 DEFICIT BEFORE SUBSIDIES (59,616) 81,025 (0.25) 78,990 (2.58) (60,869) (210) (58,560) (3 94) 5,710 6, ,408 (5.79) OPERATING SUBSIDIES 59,616 59, , SURPLUS/(DEFICIT) AFTER SUBSIDIES - 8 (1) Unrealized Investment Gain/(Loss) (1,152) 111 (26) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (1,178) (1.81) 936 (1.71) TOTAL VEHICLE MILES 9,970 9,878 (0.92) 9, ,049 1, ,104 (3.17) REVENUE PASSENGER JOURNEYS 11,345 10,936 (3.61) 11,209 (244) Page 3.1 5/12/2017

20 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY VICTORY DIVISION DETAIL INCOME STATEMENT ONE MONTH ENDED APRIL 29, 2017 (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 1, ,958 (53) (2.98) (17) (9.71) ~ (3.52) OPERATING REVENUES Passenger Revenue 1,825 1,727 (98) (5.37) Investment Income Other Income (8) (4.82) TOTAL REVENUE AVAILABLE FOR OPERATIONS 1,994 1,889 (105) (5.27) 5,426 2, ,283 (166) (3.06) (3) (18.75) OPERATING EXPENSES Labor & Fringe Benefits 5,778 5, Material & Services 1,458 1,525 (67) (4.60) Injuries & Damages Propulsion Power Fixed Rent (1) (8.33) Fuel (11) (5.37) Depreciation TOTAL OPERATING EXPENSES 7,704 7, (6,325) DEFICIT BEFORE SUBSIDIES (5,710) (5,667) , ,408 (33) (10.51) (294) (5.56) (45) (5.67) (371) (5.79) OPERATING SUBSIDIES Federal State 4,723 4, Local Lease Cost/Debt Service Other - Route Guarantees TOTAL OPERATING SUBSIDIES 5,710 6, SURPLUS/(DEFICIT) AFTER SUBSIDIES ill 9 Unrealized Investment Gain/(Loss) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) Page 3.2 5/12/2017

21 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY VICTORY DIVISION DETAIL INCOME STATEMENT TEN MONTHS ENDED APRIL (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 18, J.B±._ 20,430 (275) (1.47) (6) (0.35) (274) (1.34) OPERATING REVENUES Passenger Revenue 19,488 18,393 (1,095) (5.62) Investment Income Other Income 1,689 1, TOTAL REVENUE AVAILABLE FOR OPERATIONS 21,204 20,156 (1,048) (4.94) 55,909 16,287 1,809 1, , ,990 (3,964) (7.09) , (10) (6.10) (2,035) (2.58) OPERATING EXPENSES Labor & Fringe Benefits 60,091 59, Material & Services 15,433 15,951 (518) (3.36) Injuries & Damages 1,323 1,323 Propulsion Power 1, Fixed Rent (4) (3.33) Fuel 2,544 2,587 (43) (1.69) Depreciation TOTAL OPERATING EXPENSES 80,820 81,025 (205) (0.25) (58,560) (2,309) (3.94) DEFICIT BEFORE SUBSIDIES (59,616) (60,869) (1,253) (2.10) 2,872 48,423 7, ,671 (88) (3.06) , OPERATING SUBSIDIES Federal 2,780 2, State 49,316 49, Local 7,397 7, Lease Cost/Debt Service Other - Route Guarantees TOTAL OPERATING SUBSIDIES 59,616 59, (1,263) SURPLUS/(DEFICIT) AFTER SUBSIDIES - (1,152) (1,152) 13 (39) Unrealized Investment Gain/(Loss) (26) (26) 124 (1,302) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (1, 178) (1,178) Page 3.3 5/12/2017

22 FINANCIAL REPORT - APRIL 2017 GROUP 4 - FRONTIER DIVISION ( 4.1) Comparative Statement of Income ( 4.2) Detail Income Statement - (One Month) (4.3) Detail Income Statement - (YTD)

23 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY FRONTIER DIVISION COMPARATIVE STATEMENT OF INCOME PERIOD ENDED APRIL (THOUSANDS) ONE MONTH ENDED APRIL 29, 2017 TEN MONTHS ENDED APRIL 29, 2017 THIS YEAR LAST YEAR THIS YEAR LAST YEAR BUDGET AMOUNT ACTUAL BETTER/ ACTUAL BETTER/ ACTUAL (WORSE) ACTUAL (WORSE) BUDGET AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT -- OPERATING REVENUES 403 (24.53) 527 (23.53) Passenger Revenue 5, (11.48) 56 (3.57) Other Operating Revenue 611 ACTUAL BETTER/ ACTUAL BETTER/ ACTUAL (WORSE) ACTUAL (WORSE) AMOUNT BUDGET% AMOUNT LAST YEAR% --- 5,301 (6.67) 5,462 (2.95) (23.19) 583 (21.61) TOTAL REVENUE AVAILABLE FOR OPERATIONS 6,291 5,949 (5.44) 6,048 (1 64) 2,564 (1,969) 2, , OPERATING EXPENSES 27,196 {2,022) (2.69) (2,010) (0.60) DEFICIT BEFORE SUBSIDIES (20,905) 26, ,319 (1.62) (20,797) 0.52 (20,271) (2.59) 1,969 2, , OPERATING SUBSIDIES 20,905 20,413 (2.35) 20, SURPLUS/(DEFICIT) AFTER SUBSIDIES (384) 38 2 Unrealized Investment Gain/(Loss) (5) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (389) TOTAL VEHICLE MILES 4,668 4,607 (1.31) 4, (17.67) 274 (14.96) REVENUE PASSENGER JOURNEYS 3,029 2,876 (5.05) 2,883 (0.24) Page 4.1 5/12/2017

24 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY FRONTIER DIVISION DETAIL INCOME STATEMENT ONE MONTH ENDED APRIL 29, 2017 (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % s (124) (23.53) (2) (3.64) (126) (21.61) OPERATING REVENUES Passenger Revenue (131) (24.53) Investment Income 1 1 Other Income (7) (11.67) TOTAL REVENUE AVAILABLE FOR OPERATIONS (138) (23.19) 2, , (61) (28.37) OPERATING EXPENSES Labor & Fringe Benefits 2,079 2, Material & Services Injuries & Damages Fixed Rent 4 4 Fuel Depreciation TOTAL OPERATING EXPENSES 2,564 2, (2,010) (12) (0.60) DEFICIT BEFORE SUBSIDIES (1,969) (2,022) (53) (2.69) 97 1, , OPERATING SUBSIDIES Federal State 1,587 1, Local Lease CosUDebt Service 3 3 Other - Route Guarantees TOTAL OPERATING SUBSIDIES 1,969 2, SURPLUS/(DEFICIT) AFTER SUBSIDIES Unrealized Investment Gain/(Loss) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) Page 4.2 5/12/2017

25 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY FRONTIER DIVISION DETAIL INCOME STATEMENT TEN MONTHS ENDED APRIL 29, 2017 (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 5, ,048 (161) (2.95) (99) (1.64) OPERATING REVENUES Passenger Revenue 5,680 5,301 (379) (6.67) Investment Income Other Income TOTAL REVENUE AVAILABLE FOR OPERATIONS 6,291 5,949 (342) (5.44) 20,752 2, , ,319 (863) (4.16) (431) (16.06) (427) (1.62) OPERATING EXPENSES Labor & Fringe Benefits 21,976 21, Material & Services 3,053 3,114 (61) (2.00) Injuries & Damages Fixed Rent Fuel 1,835 1, Depreciation TOTAL OPERATING EXPENSES 27, , (20,271) (526) (2.59) DEFICIT BEFORE SUBSIDIES (20,905) _(20,797) ,342 2, ,3~ (41) (4.23) OPERATING SUBSIDIES Federal (23) (2.42) State 16,873 16,466 (407) (2.41) Local 2,531 2,470 (61) (2.41) Lease Cost/Debt Service Other - Route Guarantees (2) (0.39) TOTAL OPERATING SUBSIDIES 20,905 20,413 (492) (2.35) 38 (422) SURPLUS/(DEFICIT) AFTER SUBSIDIES (384) (384) 3 (8) Unrealized Investment Gain/(Loss) (5) (5) 41 (430) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (389) (389) Page 4.3 5/12/2017

26 FINANCIAL REPORT - APRIL 2017 GROUP 5 - REGIONAL RAIL DIVISION (5.1) Comparative Statement oflncome (5.2) Detail Income Statement - (One Month) (5.3) Detail Income Statement - (YTD)

27 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION COMPARATIVE STATEMENT OF INCOME PERIOD ENDED APRIL (THOUSANDS) ONE MONTH ENDED APRIL 29, 2017 TEN MONTHS ENDED APRIL 29, 2017 THIS YEAR --- LAST YEAR THIS YEAR LAST YEAR BUDGET AMOUNT 12, ,481 ACTUAL ACTUAL BETTER/ BETTER/ ACTUAL (WORSE) ACTUAL (WORSE) BUDGET AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT OPERATING REVENUES 11,816 (5.43) 12,224 (3.34) Passenger Revenue 129, (7.81) 1,004 (9.46) Other Operating Revenue 10,111 12,725 (5.61) 13,228 (3.80) TOTAL REVENUE AVAILABLE FOR OPERATIONS 139,409 ACTUAL ACTUAL BETTER/ BETTER/ ACTUAL (WORSE) ACTUAL (WORSE) AMOUNT BUDGET% AMOUNT LAST YEAR% 113,612 (12.13) 125,359 (9.37) 9,472 (6.32) 10,041 (5.67) 123,084 (11.71) 135,400 (9.10) 30,139 (16,658) 24, , OPERATING EXPENSES 292,323 (12,266) (13,430) 8.67 DEFICIT BEFORE SUBSIDIES (152,914) 288, ,010 (6.89) (165,527) (8.25) (134,610) (22.97) 16,658 13,046 (21.68) 13,551 (3.73) OPERATING SUBSIDIES 152, , , SURPLUS/(DEFICIT) AFTER SUBSIDIES (36) Unrealized Investment Gain/(Loss) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (2,138) 162 (536) (2,674) 325 1,608 1, , TOTAL VEHICLE MILES 17,254 16,811 (2.57) 16, ,996 2,887 (3.64) 2,982 (3.19) REVENUE PASSENGER JOURNEYS 31,893 28,607 (10.30) 30,825 (7.20) Page 5.1 5/12/2017

28 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION DETAIL INCOME STATEMENT ONE MONTH ENDED APRIL (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 12, ,228 (408) (3.34) (127) (13.44) (503) (3.802_ OPERATING REVENUES Passenger Revenue 12,495 11,816 (679) (5.43) Investment Income Other Income (130) (13.71) TOTAL REVENUE AVAILABLE FOR OPERATIONS 13,481 12,725 (756) (5.61) 15,717 8, , ,658 (269) (1.71) 1, (92) (92.00) (88) (19.17) 1, OPERATING EXPENSES Labor & Fringe Benefits 16,684 15, Material & Services 10,954 6,528 4, Injuries & Damages Propulsion Power 1,675 1, Fixed Rent (92) (92.00) Fuel Depreciation (33) (6.42) TOTAL OPERATING EXPENSES 30,139 24,991 5, (13,430) 1, DEFICIT BEFORE SUBSIDIES (16,658) (12,266) 4, , , ,551 (74) (16.59) (940) (12.49) (140) (12.41) (505) (3.73) OPERATING SUBSIDIES Federal (168) (31.11) State 9,580 6,585 (2,995) (31.26) Local 1, (449) (31.25) Lease Cost/Debt Service 4,984 4,984 Other - Route Guarantees TOTAL OPERATING SUBSIDIES 16,658 13,046 (3,612) (21.68) SURPLUS/(DEFICIT) AFTER SUBSIDIES ~ 210 Unrealized Investment Gain/(Loss) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) Page 5.2 5/12/2017

29 SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION DETAIL INCOME STATEMENT TEN MONTHS ENDED APRIL (THOUSANDS) LAST YEAR AMOUNT THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR AMOUNT % THIS YEAR THIS YEAR ACTUAL BUDGET ACTUAL BETTER (WORSE) BUDGET AMOUNT AMOUNT AMOUNT % 125, , ,400 (11,747) (9.37) (875) (9.12) (12,316) (9.10) OPERATING REVENUES Passenger Revenue 129, ,612 (15,686) (12.13) Investment Income Other Income 9,705 8,723 (982) (10.12) TOTAL REVENUE AVAILABLE FOR OPERATIONS 139, ,084 (16,325) (11.71) 166,508 79,374 2,199 16, ,010 (9,573) (5.75) (4,335) (5.46) (4,937) (421) (9.37) (18,601) (6.89) OPERATING EXPENSES Labor & Fringe Benefits 174, ,081 (1,561) (0.89) Material & Services 92,678 83,709 8, Injuries & Damages 1,822 1,822 Propulsion Power 16,906 15, Fixed Rent 1,006 5,769 (4,763) Fuel Depreciation 4,962 4, TOTAL OPERATING EXPENSES 292, ,611 3, (134,6102_ (30,917) (22.97) DEFICIT BEFORE SUBSIDIES (152,914) (165,527) (12,613) (8.25) 4,238 71,455 10,718 47,320 ~ 134, , , , , OPERATING SUBSIDIES Federal 4,679 5, State 83,018 91,701 8, Local 12,453 13,755 1, Lease Cost/Debt Service 51,597 51,597 Other - Route Guarantees 1, 167 1,167 TOTAL OPERATING SUBSIDIES 152, ,389 10, (2,3002_ SURPLUS/(DEFICIT) AFTER SUBSIDIES (2,138) (2,138) 163 (699) Unrealized Investment Gain/(Loss) (536) (536) 325 (2,999) SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) (2,674) (2,674) Page 5.3 5/12/2017

30 5/25/17 R E S 0 L U T I 0 N re ADOPTION OF SUPPLEMENTS TO TARIFFS THAT GOVERN FARES AND FURNISHING OF PASSENGER TRANSPORTATION WHEREAS, SEPTA's enabling act at 74 Pa.C.S. 1751(a) requires the Board to adopt an operating budget prior to the beginning of each fiscal year and authorizes the Board to "establish such rules as are necessary for proper observance" of such budget; and WHEREAS, on March 23, 2017 the staff briefed the Board on the tentative Operating Budget Proposal for Fiscal Year 2018 which sets forth revenue and operating expense levels, which included certain proposed fare increases and tariff changes; and WHEREAS, in keeping with the 2006 recommendation of the Pennsylvania Transportation and Funding Reform Commission to periodically raise fares, SEPTA proposed a modest fare increase effective on or about July 1, 2017, or when the Key/New Payment Technology (NPT) Project is ready to be implemented; and WHEREAS, pursuant to applicable law and the rules and regulations that became effective on March 1, 2010, the Chairman Page 1 of 5

31 appointed Joseph M. O' Malley, Esquire as Hearing Examiner to conduct a public hearing with respect to the tentative Operating Budget for Fiscal Year 2018 and certain proposed supplements to tariffs; and WHEREAS, after appropriate publication and posting the Hearing Examiner presided over a public hearing, the sessions of which were held on April 19, 20, 21, 24 and 25, 2017 at convenient and accessible locations in Bucks, Chester, Delaware, Montgomery and Philadelphia Counties; and WHEREAS, at the first public meeting in Media, Delaware County, a revision was made to the fee for the replacement of lost or stolen SEPTA Senior /Reduced Fare Key cards that would affect Tariff No. 1 - City Transit Division, No Railroad Division, No Suburban Transit Division, No Demand Response Service and No Paratransit-ADA; and WHEREAS, persons who desired to do so were given the opportunity to appear at the sessions of the public hearing to present testimony, to introduce material and to ask questions of SEPTA's representatives; and WHEREAS, based on the testimony, evidence and exhibits presented at the public hearings or otherwise entered into the Page 2 of 5

32 record, on May 4, 2017 the Hearing Examiner presented to the Board a Report and Recommendation; and WHEREAS, the Hearing Examiner recommended that the Board adopt the tentative Fiscal Year 2018 Operating Budget, and that the proposed supplements to tariffs regarding fares, as revised, be approved; and WHEREAS, as part of his recommendation the Hearing Examiner suggested that SEPTA officials (i) work with the public to address several issues regarding the SEPTA Key Program that were raised at the hearings during the continuing implementation of the NPT system; and (ii) noted that SEPTA would conduct a study with respect to the continuation of the current transfer fee; and recommended the Authority announce its decision regarding such use after adequate data has been compiled; and WHEREAS, after reviewing the comments received during the public hearing process and recommendations of the Hearing Examiner, staff requested that the General Manager recommend that the Board adopt those proposed supplements to tariffs that govern fare changes and furnishing of passenger transportation, as set forth above and more fully described in the pertinent staff summary; and Page 3 of 5

33 WHEREAS, the General Manager made the recommendation to the Board. NOW, THEREFORE, BE IT RESOLVED, that upon consideration of the testimony taken and evidence presented at the public hearing or otherwise entered into the record, the Report and Recommendation of the Hearing Examiner and the arguments and/or other material presented at this public meeting, and the proposed changes by staff, the Board hereby adopts the following supplements to tariffs, as modified: Tariff No. 1, Tariff No. 2, Tariff No. 51 Tariff No. 66 Supplement No. 39 Supplement No. 22 Supplement No. 13 Supplement No. 14 Tariff No. 112, Supplement No. 7 Tariff No. 132, Supplement No. 29 Tariff No. 146, Supplement No. 17 Tariff No. 154, Supplement No. 40 Tariff No. 155, Supplement No. 28 Tariff No. 168, Supplement No. 9 Tariff No. 229, Supplement No. 11 FURTHER RESOLVED, that the Board hereby authorizes the proper officers of SEPTA to execute all documents, in form approved by the Office of General Counsel, and to do any and all Page 4 of 5

34 other things as shall be necessary and proper in order to effectuate the purpose of this Resolution. S/Corp/Resolutions/ Supplement to Tariffs-FY2018-0perating-Budget-&-Fare Page 5 of 5

35 5/25/17 R E S 0 L U T I 0 N re ADOPTION OF THE OPERATING BUDGET FOR FISCAL YEAR 2018 AND FISCAL YEARS FINANCIAL PROJECTIONS WHEREAS, SEPTA'S enabling act at 74 Pa.C.S. 1751(a) requires the Board to adopt an operating budget prior to the beginning of each fiscal year and authorizes the Board to "establish such rules as are necessary for proper observance" of such budget; and WHEREAS, the Public Transportation Law requires the Board to adopt by June 30 annually a series of Operating Goals and Performance Evaluation Measures; and WHEREAS, the Public Transportation Law also requires the Board to adopt a resolution that authorizes the filing of an application for a state grant; and THE TENTATIVE OPERATING BUDGET WHEREAS, on March 23, 2017 staff briefed the Board on the tentative Operating Budget Proposal for Fiscal Year 2018 which sets forth revenue and operating expense levels, as well as Fiscal Years Financial Projections; and Page 1 of 8

36 WHEREAS, the tentative Operating Budget for Fiscal Year 2018 sets an authorized spending level of billion, an increase of 39.4 million over the adopted Fiscal Year 2017 Operating Budget, with revenues totaling 531 million and subsidies of 915 million; and WHEREAS, in keeping with the 2006 recommendation of the Pennsylvania Transportation and Funding Reform Commission to periodically raise fares, SEPTA proposed a fare increase effective July 1, 2017; and PUBLIC HEARING WHEREAS, pursuant to applicable law and the rules and regulations that became effective on March 1, 2010, the Chairman appointed Joseph M. O' Malley, Esquire as Hearing Examiner to conduct a public hearing with respect to the tentative Operating Budget for Fiscal Year 2018 and certain proposed supplements to tariffs; and WHEREAS, after appropriate publication and posting the Hearing Examiner presided over a public hearing, the sessions of which were held on April 19, 20, 21, 24 and 25, 2017 at convenient and accessible locations in Bucks, Chester, Delaware, Montgomery and Philadelphia Counties; and Page 2 of 8

37 WHEREAS, persons who desired to do so were given the opportunity to appear at the sessions of the public hearing to present testimony, to introduce material and to ask questions of SEPTA's representatives; and WHEREAS, based on the testimony, evidence and exhibits presented at the public hearings or otherwise entered into the record, on May 4, 2017 the Hearing Examiner presented to the Board a Report and Recommendation; and WHEREAS, the Hearing Examiner recommended that the Board adopt the tentative Fiscal Year 2018 Operating Budget and the Fiscal Years Financial Projections; and USES OF STATE FUNDS WHEREAS, SEPTA will apply the financial assistance obtained through Act 44 of 2007, as amended by Act 89 of 2013, and local matches to SEPTA'S projected operating expenses; and WHEREAS, SEPTA recognizes that financial assistance obtained through Act 44 of 2007, as amended by Act 89 of 2013, and local matches (i) may only be applied to operating expenses, (ii) are ineligible for use in asset or capital improvement projects and (iii) if not used in Fiscal Year 2018 will be retained and used for only operating assistance in a subsequent fiscal year; and Page 3 of 8

38 RECOMMENDATION OF MANAGEMENT WHEREAS, staff requested that the General Manager recommend that the Board (i) adopt the tentative Operating Budget for Fiscal Year 2018, at an expense level of billion; and (ii) adopt the Fiscal Years Financial Projections; and WHEREAS, the General Manager made the recommendation to the Board. NOW, THEREFORE, BE IT RESOLVED, that upon consideration of the testimony taken and evidence presented at the public hearing or otherwise entered into the record, the Report and Recommendation of the Hearing Examiner and the arguments and/or other material presented at this public meeting, the Board hereby adopts (i) the Fiscal Year 2018 Operating Budget authorizing expenditures of billion during Fiscal Year 2018; and (ii) the Fiscal Years Financial Projections. FURTHER RESOLVED, that the Board hereby designates the General Manager the Authorized Official ("AO") of SEPTA and authorizes the General Manager as Authorized Official to execute and file electronically via "dotgrants" with the Department of Transportation of the Commonwealth of Pennsylvania ( "PennDOT"), on behalf of the Board, a consolidated operating application ( "COA") in which SEPTA requests grant funding for Fiscal Year Page 4 of 8

39 2018 under 1513 and 1516 of Act 44 of 2007, as amended by Act 89 of 2013, with the 1513 and 1516 grants being used to fund SEPTA's operating and shared ride programs, respectively. FURTHER RESOLVED, that pursuant to guidelines ("Guidelines") that PennDOT issued and imposed upon SEPTA, the Board: (i) adopts Attachment A of this Resolution, namely the list that management issued in conformity with the Guidelines, said list identifies each submission that SEPTA may be required to make to PennDOT and the corresponding senior management position or positions whose duties and responsibilities make the holder of the senior management position or positions competent to make submissions (and modify submissions) to PennDOT; and (ii) Authorize the people who hold the positions identified on the list to file and execute electronically via "dotgrants" to PennDOT as are set forth on the list (Attachment A). FURTHER RESOLVED I that SEPTA expects to receive COA grant funding for Fiscal Year 2018 totaling 670,984,122. FURTHER RESOLVED I the funding under Act 44 of 2007, as amended by Act 89 of 2013, consists of 1513 and Page 5 of 8

40 1516 in the amounts of 655,325,761 and 15,658,361, respectively, with 1513 including funding that SEPTA must disburse amongst two sub-grantees in the amount of 37,487 that provide to senior citizens free transit service and, upon PennDOT approval, to five sub-grantees in the amount of 2,963,100 to provide community transportation (formerly JARC funded) within SEPTA's service area. FURTHER RESOLVED, that SEPTA expects to receive not less than 97,848,776 in local matching funds no later than June 30, 2018 for Fiscal Year 2018 as 1513 of Act 44 of 2007, as amended by Act 89 of 2013, requires. FURTHER RESOLVED, that based upon ( i) the representation and reasonable belief of the management of SEPTA, (ii) the understanding that the Board has no authority over any entity other than SEPTA, and (iii) the historical commitments of local funding, the Board hereby certifies in good faith that the Counties of Bucks, Chester, Delaware, Montgomery and Philadelphia and other appropriate local sources will provide sufficient funds in Fiscal Year 2018 and that said funds will match the financial assistance for operating expenses that SEPTA will receive under Act 44 of 2007, as amended by Act 89 of Page 6 of 8

41 FURTHER RESOLVED, that the Board hereby authorizes the proper officers of SEPTA to execute all documents, in form approved by the Office of General Counsel, and to do any and all other things as shall be necessary and proper in order to effectuate the purpose of this Resolution. S/Corp/Resolutions/ FY2018 Operating Budget and FY Financial Projections Page 7 of 8

42 ATTACHMENT A SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY EMPLOYEES AUTHORIZED TO SUBMIT AND MODIFY THE PENNSYLVANIA DEPARTMENT OF TRANSPORTATION'S DOTGRANTS OBJECTS Position Title: Position Title: Position Title: Registration. Organization Core Info General Manaaer Deputy General Manager I Treasurer Chief Financial Officer Grant Applications General fv1anaaer Deputy General Manager I Treasurer Chief Financial Officer Position Title: Director, Director, Ooerattna Budaets Ooerat1na Budaets Position Title: Position Title: Position Title: Position Title: Position Title: Director, Capital Budoets Director, Admin. & Finance (CCT) Director, General Accountina Manager, General Accountina Manager, Rev. Acctg Ooer. Grants & F.A. Director, Capital Budoets Manager, Rev. Acctg. O per. Grants & F A. Manager. Capital Grant Develooment Manager, Caoital Budaets Senior Accountant Position Title: Manager, Cash Mgt., Position Title: Position Title: Position Title: Position Title: Position Title: Position Title: Accts Pay. & Billings Manager, Capital Grant Development Manager, Caoitat Budaets rv\anager, Financial Audit (CCT) Supervisor, 81llinas Senior Accountant Projected Unaudited Audited Legacy Actual Legacy Actual Legacy Budget Budget Budget* Authorized to Submit & Modify General r.aanaaer Deputy General Manager I Treasurer Chief Financial Officer Director, Ooeratina Budaets Manager, Rev. Acctg. Oper. Grants & FA Senior Accountant General Wianaoer Deputy General Manaoer I Treasurer Chief Financial Officer Director, General Accountina Manager, General Accounting Manager, Rev. Acctg Oper Grants & FA General Manaaer Grant Agreement Progress Execution Invoices Reports Chairman of SEPTA General General Board Manaaer Manaaer General Deputy General Deputy General Manaaer Manaoer I Treasurer Manaoer I Treasurer Deputy General Chief Financial Chief Financial Manaaer I Treasurer Officer Officer Chief Financial Director, Admin. & Director, Officer Finance (CCT) General Accountina f..aanager, Cash Mgt., Accts. Pay. & Billings fv1anager, Financial Audrt (CCT) Supervisor, BiUinas Senior Accountant Accountant Director, Operating Budgets Director, Capital Budgets f./anager, Gen. Accountina Wianager, Rev Acctg. Ooer. Grants & FA Manager, Capital Grant Development fv1anager, Capital Budgets ~ Penn DOT requires the.a.udited Actual Legacy Budget to be submitted by the chief operating officer (such as Executive Director, General Manager, etc.). Page 8 of 8

43 5/25/17 R E S 0 L U T I 0 N re THE CAPITAL BUDGET FOR FISCAL YEAR 2018; THE TWELVE-YEAR CAPITAL PROGRAM AND COMPREHENSIVE PLAN; AND GRANT OF AUTHORITY TO FILE AN APPLICATION FOR A STATE GRANT UNDER ACT 44 OF 2007, AS AMENDED BY ACT 89 OF 2013 WHEREAS, SEPTA's enabling act at 74 Pa.C.S. 1751(a) requires SEPTA annually to adopt a capital budget and a capital program covering the ensuing 12 years; and THE TENTATIVE CAPITAL BUDGET WHEREAS, on March 23, 2017, staff briefed the Board on the tentative Capital Budget in the amount of million for Fiscal Year 2018, and the tentative Twelve-Year Capital Program and Comprehensive Plan totaling 7. 3 billion for Fiscal Years ; and WHEREAS, SEPTA's Fiscal Year 2018 Capital Budget and Twelve-Year Capital Program reflects increases in funding as a result of the passage of Act 89 of 2013 which provides a dedicated, long term funding solution for transportation in the Commonweal th, thereby enabling SEPTA to move forward with its "Rebuilding the System" Capital Program ("Program"); and Page 1 of 9

44 WHEREAS, the Program includes ( i) improvements to critical infrastructure such as substations, bridges, track and stations; (ii) safety and security enhancements, along with modernization of communications and signal equipment; (iii) the KEY Project which is replacing antiquated fare collection systems with modern payment technology; and (iv) replacement of rail vehicles that have far exceeded their useful life, while enhancing accessibility and expanding capacity to address ridership growth; and WHEREAS, SEPTA selected 12 programs of projects ("Projects") which are identified in the tentative Capital Budget for Fiscal Year 2018 and pertinent staff summary; and WHEREAS, the proposed Fiscal Year 2018 Capital Budget recommends the allocation of million in capital improvements that SEPTA will make throughout the metropolitan region; and WHEREAS, that in accordance with Treasury Regulation , SEPTA may temporarily finance from its own funds all or a portion of the costs of the projects described in this Fiscal Year 2018 Capital Budget up to an amount equal to the total costs of the Projects which shall be million, and may then use all or a portion of the proceeds of tax-exempt Page 2 of 9

45 obligations to reimburse itself for expenditures originally paid prior to the date of issuance of the tax-exempt obligations, and all original expenditures which may be reimbursed will be capital expenditures (as defined in Treasury Regulation (b)) and other permissible amounts under Treasury Regulation (d) (3). STATE FUNDS WHEREAS, in accordance with Act 44 of 2007, as amended by Act 89 of 2013, SEPTA anticipates that it is eligible to receive from the Public Transportation Trust Fund ("PTTF") of the Commonwealth, the amount of million for capital projects for Fiscal Year 2018, so long as SEPTA receives million in matching funds from the Counties of Bucks, Chester, Delaware, Montgomery and Philadelphia and other appropriate local sources; and WHEREAS, SEPTA will apply the financial assistance available through the PTTF and local matches to advance the tentative Fiscal Year 2018 Capital Budget; and FEDERAL FUNDS WHEREAS, the Proposed Fiscal Year 2018 Capital Budget also forecasts million to come from Federal sources; and Page 3 of 9