HomeMy Public PortalAbout12 December 12, 2018 CommissionRIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
TIME/DATE:
LOCATION:
MEETING AGENDA
9:30 a.m. / Wednesday, December 12, 2018
BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside
COMMISSIONERS
Chair — Dana Reed
Vice Chair— Chuck Washington
Second Vice Chair — Ben J. Benoit
Kevin Jeffries, County of Riverside, District 1
John F. Tavaglione, County of Riverside, District 2
Chuck Washington, County of Riverside, District 3
V. Manuel Perez, County of Riverside, District 4
Marion Ashley, County of Riverside, District 5
Deborah Franklin / Art Welch, City of Banning
Lloyd White / Nancy Carroll, City of Beaumont
Joseph DeConinck / Tim Wade, City of Blythe
Jim Hyatt / Linda Molina, City of Calimesa
Randall Bonner / Vicki Warren, City of Canyon Lake
Greg Pettis / Shelley Kaplan, City of Cathedral City
Steven Hernandez / To Be Appointed, City of Coachella
Karen Spiegel / Randy Fox, City of Corona
Scott Matas / Russell Betts, City of Desert Hot Springs
Adam Rush / Clint Lorimore, City of Eastvale
Linda Krupa / Russ Brown, City of Hemet
Dana Reed / To Be Appointed, City of Indian Wells
Michael Wilson / Glenn Miller, City of Indio
Brian Berkson / Verne Lauritzen, City of Jurupa Valley
Kathleen Fitzpatrick / Robert Radi, City of La Quinta
Bob Magee / Natasha Johnson, City of Lake Elsinore
Bill Zimmerman / John Denver, City of Menifee
Victoria Baca / Ulises Cabrera, City of Moreno Valley
Rick Gibbs / Jonathan Ingram, City of Murrieta
Berwin Hanna / Ted Hoffman, City of Norco
Jan Harnik / Kathleen Kelly, City of Palm Desert
Lisa Middleton / Jon R. Roberts, City of Palm Springs
Michael M. Vargas / Rita Rogers, City of Perris
Ted Weill / Charles Townsend, City of Rancho Mirage
Rusty Bailey / Andy Melendrez, City of Riverside
Andrew Kotyuk / Scott Miller, City of San Jacinto
Michael S. Naggar / Matt Rahn, City of Temecula
Ben J. Benoit / Timothy Walker, City of Wildomar
Janice Benton, Governor's Appointee Caltrans District 8
Comments are welcomed by the Commission. If you wish to provide comments to the Commission,
please complete and submit a Speaker Card to the Clerk of the Board.
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
TO: Riverside County Transportation Commission
FROM: Lisa Mobley, Clerk of the Board
DATE: December 4, 2018
SUBJECT: G.C. 84308 Compliance — Potential Conflict of Interest
California Government Code 84308 states a Commissioner may not participate in any discussion or
action concerning a contract or amendment if a campaign contribution of more than $250 is
received in the past 12 months or 3 months following the conclusion from a bidder or bidder's agent.
This prohibition does not apply to the awarding of contracts that are competitively bid. The
Commission's procurement division asks potential vendors to disclose any contributions made to
the campaigns of any Commissioner as part of their submitted bid packets. As an additional
precaution, those entities are included below in an effort to give Commissioners opportunity to
review their campaign statements for potential conflicts. Please note the entities listed in this
memo are not encompassing of all potential conflicts and are in addition to any personal conflicts
of interest such as those disclosed on Statement of Economic Interests — Form 700 or prohibited
by Government Code Section 1090. Please contact me should you have any questions.
Agenda Item No 7F — Agreement with Falcon Engineering for Construction Management Services
for the Construction of the State Route 60 Truck Lanes Project
Consultant(s): Maha Faqih, President
FALCON Engineering Services, Inc.
341 Corporate Terrace Circle, Suite 101
Corona, CA 92879
Agenda Item No. 7H — Agreement for Audit Services for the Transportation Development Act
Triennial Audit
Consultant(s):
Michael Baker International, Inc.
Thomas G. Tracy, Associate Vice President
2729 Prospect Park Drive
Suite 220
Rancho Cordova, CA 95670
Tara B eri
From: Tara Byerly
Sent: Wednesday, December 05, 2018 3:29 PM
To: Tara Byerly
Cc: Anne Mayer; JOHN STANDIFORD; Lisa Mobley; Lupe Garibay
Subject: RCTC: December Commission Meeting Agenda - December 12, 2018
Good afternoon Commissioners,
The December Agenda for the Commission meeting schedule for Wednesday, December 12 @ 9:30 a.m. is available.
Please copy the link:
http://rctcdev.info/uploads/media items/december-commission-agenda-december-12-2018.original.pdf
Also attached for your review and information is the conflict of interest memo and form.
Conflict of Conflict of
Interest Form.p-df Interest Merno.p...
Let me know if you have any questions or concerns. Thank you.
Respectfully,
Tara Byerly
Deputy Clerk of the Board
Riverside County Transportation Commission
951.787.7141 W 1951.787.7906 F
4080 Lemon St. 3rd FI. l P.Q. Box 12008 Riverside, CA 92502
rctc.org
f wr in
1
Tara Byerly
From: Tara Byerly
Sent: Wednesday, December 05, 2018 3:32 PM
To: Tara Byerly
Cc: Lisa Mobley
Subject: RCTC: December Commission Meeting Agenda - December 12, 2018
Good Afternoon Commission Alternates,
The December Agenda for the Commission meeting schedule for Wednesday, December 12 @ 9:30 a.m. is available.
Please copy the link:
http://rctcdev.info/uploads/media items/december-commission-agenda-december-12-2018.original.pdf
Respectfully,
Tara Byerly
Deputy Clerk of the Board
Riverside County Transportation Commission
951.787.7141 W 1951.787.7906 F
4080 Lemon St. 3rd FI. 1 P.O. Box 12008 Riverside, CA 92502
rctc.org
'` in
i
Office: 951.736.2203
Fax: 951.736-2399
December 11, 2018
City of Corona
city Clerk's Office
400 South Vicentia Avenue, Suite 155
Corona CA 92882
Riverside County Transportation Commission
Attention: Lisa Mobley
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Dear Ms. Mobley:
Please be advised that the Corona City Council at their December 10, 2018 meeting
approved newly -elected Council Member Wes Speake represent the City of Corona for
the next Riverside County Transportation Commission (RCTC) meeting. The Mayor will
Y
formalize appointments at our next scheduled City Council meeting on December 19,
2018.
If you need further information or assistance, please contact me at (951) 738-2203.
Sincerely,
OFFICE OF THE CITY CLERK
3/31,Sylvia Edwards
City Clerk
Tara Bve rl
From: Lisa Mobley
Sent: Tuesday, December 04, 2018 3:25 PM
To: Josie Meza
Cc: Tara Byerly
Subject: RE: RCTC
Hi Josie,
We will use this correspondence as our notice of Mr. Carnevale's appointment to represent Cathedral City at the
December Commission meeting. Can you provide us his email address? If he would like a hard copy agenda mailed to
him please provide his preferred address.
If you or Mr. Carnevale have any questions, please feel free to reach out to me or to Tara Byerly, Deputy Clerk of the
Board.
Thank you,
Lisa Mobley
Clerk of the Board
Riverside County Transportation Commission
951.787.7960 W 1951.787.7906 F
4080 Lemon St. 3rd FI. 1 P.O. Box 12008 Riverside, CA 92502
rctc.org
Original Message
From: Josie Meza <JMeza@cathedralcity.gov>
Sent: Tuesday, December 04, 2018 3:03 PM
To: Anne Mayer <AMayer@RCTC.org>
Cc: Lisa Mobley <LMobley@RCTC.org>
Subject: RE: RCTC
Hi,
Thank you very much for your prompt response Anne and for including Lisa. I look forward to hearing from her.
Regards,
Josie Meza
Administrative Assistant to City Manager & Council Members City of Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
1
Ph. (760) 770-0372 Fax (760) 770-0399
Original Message
From: Anne Mayer <AMayer@RCTC.org>
Sent: Tuesday, December 04, 2018 3:00 PM
To: Josie Meza <JMeza@cathedralcity.gov>
Cc: Lisa Mobley <LMobley@RCTC.org>
Subject: Re: RCTC
Hello Josie
We appreciate you letting us know. Lisa Mobley is our Clerk and I've included her here. She can brief you on what's
needed for his participation next week. Thank you.
Anne
> On Dec 4, 2018, at 2:56 PM, Josie Meza <JMeza@cathedralcity.gov> wrote:
>
> Good afternoon Anne,
>
> Council Member Mark Carnevale will be covering the Wednesday, December 12th meeting for Greg. Who's the Clerk
of the Board and would you please provide me her / his email address, please?
>
> Regards,
>
> Josie Meza
> Administrative Assistant to City Manager & Council Members City of
> Cathedral City
> 68700 Avenida Lalo Guerrero
> Cathedral City, CA 92234
> Ph. (760) 770-0372 Fax (760) 770-0399
>
> Original Message
> From: Greg Pettis <greg@gregpettis.com>
> Sent: Tuesday, December 04, 2018 2:38 PM
> To: Josie Meza <J Meza @cathed ra lcity.gov>
> Subject: Re: RCTC
>
> Send it to Anne Mayer and ask her to forward. I can't remember clerks
> name
>
> Sent from my iPad
>
> Greg Pettis, MBA
> Mayor Pro Tem
> 68700 Avenida Lalo Guerrero
> Cathedral City, CA 92234
> 760-408-8420
>
>> On Dec 4, 2018, at 2:36 PM, Josie Meza <JMeza@cathedralcity.gov> wrote:
2
» t
>> Ok.
>> Who's your contact at RCTC? I haven't been in contact with anyone in a long time. I do know Jennifer is no longer
with the agency.
>> Josie Meza
>> Administrative Assistant to City Manager & Council Members City of
>> Cathedral City
>> 68700 Avenida Lalo Guerrero
>> Cathedral City, CA 92234
>> Ph. (760) 770-0372 Fax (760) 770-0399
>> Original Message
>> From: Greg Pettis <greg@gregpettis.com>
>> Sent: Tuesday, December 04, 2018 11:39 AM
>> To: Josie Meza <JMeza@cathedralcity.gov>
>> Subject: RCTC
>> Mark is going to cover me this month. Please call him and give him
>> details. I told him it was tomorrow but it's actually next week. He
>> needs an agenda as well
>> Also please email RCTC with authorization for him to vote
>> Thanks
>> Sent from my iPad
>> Greg Pettis, MBA
>> Mayor Pro Tem
>> 68700 Avenida Lalo Guerrero
>> Cathedral City, CA 92234
>> 760-408-8420
3
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
www.rctc.org
MEETING AGENDA*
*Actions may be taken on any item listed on the agenda
9:30 a.m.
Wednesday, December 12, 2018
BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside, CA
In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed 72 hours
prior to the meeting, which are public records relating to open session agenda items, will be available for
inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third
Floor, Riverside, CA, and on the Commission's website, www.rctc.org.
In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal
Transit Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance is
needed to participate in a Commission meeting, including accessibility and translation services. Assistance is
provided free of charge. Notification of at least 48 hours prior to the meeting time will assist staff in assuring
reasonable arrangements can be made to provide assistance at the meeting.
1. CALL TO ORDER
2. ROLL CALL
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS — Each individual speaker is limited to speak three (3) continuous minutes or less.
The Commission may, either at the direction of the Chair or by majority vote of the Commission, waive
this three -minute time limitation. Depending on the number of items on the Agenda and the number of
speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous
minutes. In addition, the maximum time for public comment for any individual item or topic is thirty (30)
minutes. Also, the Commission may terminate public comments if such comments become repetitious.
Speakers may not yield their time to others without the consent of the Chair. Any written documents to
be distributed or presented to the Commission shall be submitted to the Clerk of the Board. This policy
applies to Public Comments and comments on Agenda Items.
Under the Brown Act, the Commission should not take action on or discuss matters raised during public
comment portion of the agenda that are not listed on the agenda. Commission members may refer such
matters to staff for factual information or to be placed on the subsequent agenda for consideration.
5. APPROVAL OF MINUTES — NOVEMBER 14, 2018
Riverside County Transportation Commission Meeting Agenda
December 12, 2018
Page 2
6. ADDITIONS / REVISIONS — The Commission may add an item to the Agenda after making a
finding that there is a need to take immediate action on the item and that the item came to the
attention of the Commission subsequent to the posting of the agenda. An action adding an
item to the agenda requires 2/3 vote of the Commission. If there are less than 2/3 of the
Commission members present, adding an item to the agenda requires a unanimous vote. Added
items will be placed for discussion at the end of the agenda.
7. CONSENT CALENDAR —All matters on the Consent Calendar will be approved in a single motion
unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the
Consent Calendar will be placed for discussion at the end of the agenda.
7A. PROPOSED 2019 COMMISSION/COMMITTEE MEETING SCHEDULE
Page 1
Overview
This item is for the Commission to adopt its 2019 Commission/Committee Meeting
Schedule.
7B. RESOLUTION TO AMEND THE APPENDIX OF THE CONFLICT OF INTEREST CODE
Page 5
Overview
This item is for the Commission to adopt Resolution No. 18-019, "Resolution of the
Riverside County Transportation Commission Amending the Appendix of the Conflict of
Interest Code Pursuant to the Political Reform Act of 1974".
7C. FISCAL YEAR 2017/18 COMMISSION AUDIT RESULTS
Overview
This item is for the Commission to:
Page 14
1) Receive and file the Fiscal Year 2017/18
a) Comprehensive Annual Financial Report (CAFR);
b) Local Transportation Fund (LTF) Financial and Compliance Report;
c) State Transit Assistance (STA) Fund Financial and Compliance Report;
d) State of Good Repair (SGR) Fund Financial and Compliance Report;
e) Proposition 18 Rehabilitation and Security Project (Proposition 18)
Accounts Financial and Compliance Reports;
f) Low Carbon Transit Operations Program (LCTOP) Account Financial and
Compliance Reports;
g) Single Audit Report;
h) RCTC 91 Express Lanes Fund Financial Report;
i) Auditor Required Communications Report;
Riverside County Transportation Commission Meeting Agenda
December 12, 2018
Page 3
j) Agreed -Upon Procedures Report related to the Appropriations Limit
Calculation;
k) Agreed -Upon Procedures Report related to the Commuter Assistance
Program (CAP) incentives; and
I) Management certifications.
7D. QUARTERLY INVESTMENT REPORT
Page 164
Overview
This item is for the Commission to receive and file the Quarterly Investment Report for
the quarter ended September 30, 2018.
7E. REVISED EXPRESS LANES PRIVACY POLICY
Page 233
Overview
This item is for the Commission to adopt Resolution No. 18-017, "Resolution of the
Riverside County Transportation Commission Regarding the Revised Express Lanes
Privacy Policy".
7F. AGREEMENT WITH FALCON ENGINEERING FOR CONSTRUCTION MANAGEMENT
SERVICES FOR THE CONSTRUCTION OF THE STATE ROUTE 60 TRUCK LANES PROJECT
Page 241
Overview
This item is for the Commission to:
1) Award Agreement No. 18-31-164-00 to Falcon Engineering to provide
construction management (CM), materials testing, construction surveying and
environmental monitoring services for the State Route 60 Truck Climbing Lanes
project, in the amount of $15,920,498, plus a contingency amount of
$1,592,050, for a total amount not to exceed $17,512,548;
2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to
execute the agreement on behalf of the Commission; and
3) Authorize the Executive Director, or designee, to approve contingency work as
may be required for the project.
Riverside County Transportation Commission Meeting Agenda
December 12, 2018
Page 4
7G. COOPERATIVE AGREEMENT NO. 19-33-004-00 BETWEEN THE RIVERSIDE COUNTY
TRANSPORTATION COMMISSION AND SOUTHERN CALIFORNIA REGIONAL RAIL
AUTHORITY FOR CONSTRUCTION OF THE RIVERSIDE LAYOVER FACILITY
IMPROVEMENT PROJECT
Page 319
Overview
This item is for the Commission to:
1) Approve Cooperative Agreement No. 19-33-004-00 between the Commission
and Southern California Regional Rail Authority (SCRRA) for the construction of
the Riverside Layover Facility Improvement project (Project) for an amount not
to exceed $156,200, plus a contingency amount of $15,800, for a total amount
not to exceed $172,000;
2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to
execute the cooperative agreement on behalf of the Commission; and
3) Authorize the Executive Director or designee to approve the use of a
contingency, as may be required for these services.
7H. AGREEMENT FOR AUDIT SERVICES FOR THE TRANSPORTATION DEVELOPMENT ACT
TRIENNIAL AUDIT
Overview
This item is for the Commission to:
Page 345
1) Award Agreement No. 19-62-009-00 to Michael Baker International, Inc. for
audit services for the Transportation Development Act (TDA) Triennial Audit for
a three-year term, plus one two-year option, in an amount not to exceed
$220,815; and
2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to
execute the agreement on behalf of the Commission.
8. ANNUAL INVESTMENT POLICY REVIEW
Overview
This item is for the Commission to:
Page 366
1) Adopt Resolution No. 18-018, "Resolution of the Riverside County Transportation
Commission Regarding the Revised Investment Policy"; and
2) Adopt the revised annual Investment Policy.
Riverside County Transportation Commission Meeting Agenda
December 12, 2018
Page 5
9. 91 EXPRESS LANES TRAFFIC AND REVENUE STUDY UPDATE
Page 382
Overview
This item is for the Commission to adopt the study results of the RCTC 91 Express Lanes
Investment Grade Traffic and Revenue Study, Investment Grade Study Refresh 2018.
10. STATE ROUTE 91 CORRIDOR OPERATIONS PROJECT IMPROVEMENTS REPORTS AND REQUEST
FOR VARIOUS AUTHORIZATIONS
Overview
This item is for the Commission to:
Page 503
1) Receive a report on the implementation of the following State Route 91 Corridor
Operations Project (91 COP) improvements previously approved by the Commission:
a. Interstate 15 northbound 91 Express Lanes Ingress Improvement Option No. 1
(1-15 NB EL Option 1); and
b. SR-91 westbound General Purpose Lane Improvement Option No. 3 (91 WB GP
Option 3);
2) Receive a report on the Ramp Meter Study at the SR-91 westbound Green River Road
On -Ramp;
3) Authorize implementation of the construction phase of the SR-91 westbound General
Purpose Lane Improvement modified Option No. 4 (91 WB GP Option 4M) after
completing environmental and design approvals;
4) Authorize the inclusion of the 91 WB GP Option 4 in the list of Commission projects for
prioritization and funding determination; and
5) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute
all necessary agency agreements or amendments to existing agency agreements for
the Construction of the 91 WB GP Option 4 project.
Riverside County Transportation Commission Meeting Agenda
December 12, 2018
Page 6
11. AMENDMENT TO SUNLINE TRANSIT AGENCY'S FISCAL YEAR 2018/19 SHORT RANGE TRANSIT
PLAN
Overview
This item is for the Commission to:
Page 510
1) Approve a modification to SunLine Transit Agency's (SunLine) Fiscal Year 2018/19
operating assistance funding by amending the original amount of $38,900,991 to
$39,654,404 to reflect additional operating expenses and revenues for the West Coast
Center of Excellence funded with federal Section 5309 pass -through funds from the
Center for Transportation and the Environment (CTE), the Buzz Service subsidized by
the city of Palm Springs, and personnel costs for eight new full-time employees
scheduled to start in January 2019 and funded with additional Local Transportation
Funds (LTF);
2) Approve a modification to SunLine's FY 2018/19 capital improvement program to
reflect an additional request of $2,982,000 in LTF to cover capital expenses related to
various stations, facilities and building projects, and partial funding to purchase five
trolleys for the new Buzz Service;
3) Approve a modification to SunLine's FY 2018/19 capital improvement program to
reflect an increase of $178,239 in FY 2017/18 Federal Transit Administration (FTA)
Section 5339 funds offset by a decrease of the same amount in State Transit Assistance
(STA) funds for the fixed route bus replacement, information technology and transit
enhancement projects;
4) Reprogram the STA capital amount of $418,000 originally identified in the FY 2014/15
Short Range Transit Plan (SRTP) for the operator breakroom project to the purchase of
five trolleys for the Buzz Service;
5) Approve a $2,982,000 adjustment to the FY 2018/19 budget to increase LTF capital
expenditures and a $178,239 adjustment to decrease STA expenditures; and
6) Approve an amendment to SunLine's FY 2018/19 SRTP to reflect these changes.
12. ELECTION OF RIVERSIDE COUNTY TRANSPORTATION COMMISSION OFFICERS AND
APPOINTMENT OF EXECUTIVE COMMITTEE MEMBERS
Overview
This item is for the Commission to:
Page 515
1) The Commission to conduct an election of officers for 2019 — Chair, Vice Chair, and
Second Vice Chair;
2) The cities of Corona, Jurupa Valley, Moreno Valley, Murrieta, Riverside, and Temecula
to appoint two representatives to the Executive Committee;
3) The cities of Banning, Beaumont, Calimesa, Canyon Lake, Eastvale, Hemet, Lake
Elsinore, Menifee, Norco, Perris, San Jacinto, and Wildomar to appoint one
representative to the Executive Committee; and
Riverside County Transportation Commission Meeting Agenda
December 12, 2018
Page 7
4) The cities of Blythe, Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio,
La Quinta, Palm Desert, Palm Springs, and Rancho Mirage to appoint one
representative to the Executive Committee.
13. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA
14. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT
Overview
This item provides the opportunity for the Commissioners and the Executive Director to report
on attended meetings/conferences and any other items related to Commission activities.
15. CLOSED SESSION
15A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Agency Negotiator: Executive Director or Designee
Item
APN(s)
Property Owner
1
102-250-056
Riverside County Transportation Commission
2
118-270-003 and 118-270-023
Riverside County Transportation Commission
3
118-260-015
Riverside County Transportation Commission
4
118-301-010
Riverside County Transportation Commission
5
118-302-001
Riverside County Transportation Commission
6
117-101-019 and 117-101-020
Riverside County Transportation Commission
7
117-101-013
Riverside County Transportation Commission
8
117-270-021 and 117-270-022
Riverside County Transportation Commission
16. ADJOURNMENT
The next meeting of the Commission is scheduled to be held on Wednesday,
January 9, 2019, Board Room, First Floor, County Administrative Center, 4080 Lemon Street,
Riverside.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
COMMISSIONER SIGN -IN SHEET
DECEMBER 12, 2018
NAME
AGENCY
EMAIL ADDRESS
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ROLL CALL
DECEMBER 12, 2018
County of Riverside, District
County of Riverside, District II
County of Riverside, District III
County of Riverside, District IV
County of Riverside, District V
City of Banning
City of Beaumont
City of Blythe
City of Calimesa
City of Canyon Lake
City of Cathedral City
City of Coachella
City of Corona
City of Desert Hot Springs
City of Eastvale
City of Hemet
City of Indian Wells
City of Indio
City of lurupa Valley
City of La Quinta
City of Lake Elsinore
City of Menifee
City of Moreno Valley
City of Murrieta
City of Norco
City of Palm Desert
City of Palm Springs
City of Perris
City of Rancho Mirage
City of Riverside
City of San Jacinto
City of Temecula
City of Wildomar
Governor's Appointee, Caltrans District 8
Presen , Absent
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DETACH AND SUBNIIT TO THE CLERK OF THE BOARD
DATE: I Z
2I18
CHECK IF —/ SUBJECT OF
PUBLIC COMMENTS: [� PUBLIC COMMENTS:
AGENDA ITEM NO.:
(AS LISTED ON THE AGENDA)
SUBJECT OF
AGENDA ITEM:
601 ere% 1 Pl4bi Cp th
NAME: chael Witk alY'G ga r1 PHONE NO.:
ADDRESS: IS16 614enijo0J
STREET
c0e-b-nd. ctleg
CITY ZIP CODE
REPRESENTING: 'r~ PHONE NO.:
NAME OF AGENCY / ORGANIZATION / GROUP
BUSINESS ADDRESS:
STREET
CITY ZIP CODE
AGENDA ITEM 5
MINUTES
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
MEETING MINUTES
Wednesday, November 14, 2018
1. CALL TO ORDER
The Riverside County Transportation Commission was called to order by
Chair Dana Reed at 9:30 a.m. in the Board Room at the County of Riverside Administrative
Center, 4080 Lemon Street, First Floor, Riverside, California, 92501.
2. ROLL CALL
Commissioners/Alternates Present Commissioners Absent
Marion Ashley
Victoria Baca
Ben J. Benoit
Brian Berkson
Russell Betts
Randall Bonner
Joseph DeConinck
Kathleen Fitzpatrick
Deborah Franklin
Jan Harnik
Steven Hernandez
Jim Hyatt
Kevin Jeffries
Shelley Kaplan
Linda Krupa
Bob Magee
Lisa Middleton
Michael Naggar
V. Manuel Perez
Dana Reed
Adam Rush
Karen Spiegel
Michael M. Vargas
Chuck Washington
Ted Weill
Lloyd White
Bill Zimmerman
Rusty Bailey
Rick Gibbs
Berwin Hanna
Andrew Kotyuk
John F. Tavaglione
Michael Wilson
3. PLEDGE OF ALLEGIANCE
Clerk of the Board Lisa Mobley led the Commission in a flag salute.
4. PUBLIC COMMENTS
Executive Director Anne Mayer, Chair Reed, Vice Chair Chuck Washington, and Second
Vice Chair Ben J. Benoit joined the departing Commissioners Marion Ashley, Deborah
Franklin, Shelly Kaplan, and Adam Rush to honor and present them with an award.
Arnold San Miguel, with Southern California Association of Governments (SCAG)
announced the 9t" Annual Southern California Economic Summit will be held on
December 6, 2018 at the L.A. Hotel Downtown. There is a new Future Communities Pilot
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 2
Grant Program in the amount of $2.7 million and the deadline for submittals are due by
December 15 and a workshop will be held on December 4. Also, the Sustainable
Communities Program deadline for submittals is November 15.
5. APPROVAL OF MINUTES — OCTOBER 10, 2018
M/S/C (Baca/Bonner) to approve the October 10, 2018 minutes as submitted.
Abstain: Washington
6. ADDITIONS / REVISIONS
Staff has requested to remove Agenda Item 9, "State Route 60 Truck Lanes Project
Update", and bring it to the December Commission.
7. CONSENT CALENDAR
M/S/C (Baca/Berkson) to approve the following Consent Calendar items.
7A. SINGLE SIGNATURE AUTHORITY REPORT
Receive and file the Single Signature Authority report for the first quarter ended
September 30, 2018.
7B. CALIFORNIA TRANSPORTATION COMMISSION'S ACTIVE TRANSPORTATION
PROGRAM — METROPOLITAN PLANNING ORGANIZATION'S REGIONAL
PROGRAM GUIDELINES AND PROJECT SCORING RECOMMENDATIONS FOR
CYCLE 4 FUNDING
Approve the Active Transportation Program (ATP) Metropolitan Planning
Organization's (MPO) Regional Program Guidelines county share project scoring.
7C. AGREEMENTS FOR ON -CALL ENVIRONMENTAL CONSULTING SERVICES
1) Award the following agreements to provide on -call environmental
consulting services for a three-year term, and one, two-year option to
extend the agreements, in an amount not to exceed an aggregate value of
$1.5 million;
a) Agreement No. 19-31-015-00 to HDR Engineering, Inc.;
b) Agreement No. 19-31-016-00 to LSA Associates, Inc.; and
c) Agreement No. 19-31-017-00 to Stantec Consulting Services, Inc.;
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 3
2) Authorize the Chair or Executive Director, pursuant to legal counsel review,
to execute the agreements, including option years, on behalf of the
Commission; and
3) Authorize the Executive Director, or designee, to execute task orders
awarded to the consultants under the terms of the agreements.
7D. AGREEMENTS FOR ON -CALL RIGHT OF WAY PHASE I & PHASE II
ENVIRONMENTAL ASSESSMENT SERVICES
1) Award the following agreements to provide on -call right of way phase I &
phase II environmental assessment services for a three-year term, and
two, one-year options to extend the agreements, in an amount not to
exceed an aggregate value of $300,000;
a) Agreement No. 18-31-098-00 to Leighton Consulting, Inc.;
b) Agreement No. 18-31-099-00 to Ninyo & Moore; and
c) Agreement No. 18-31-100-00 to Stantec Consulting Services, Inc.;
2) Authorize the Chair or Executive Director, pursuant to legal counsel review,
to execute the agreements, including option years, on behalf of the
Commission; and
3) Authorize the Executive Director, or designee, to execute task orders
awarded to the consultants under the terms of the agreements.
7E. AMENDMENTS TO FREEWAY SERVICE PATROL AGREEMENTS
1) Approve Agreement No. 18-45-131-01, Amendment No. 1 to Agreement
No. 18-45-131-00, with Coastal Pride Towing (Coastal) to provide
construction freeway service patrol (CFSP) services on Beat No. 2, for an
additional amount of $630,000, for a total amount not to exceed
$4,181, 564;
2) Approve Agreement No. 15-45-060-02, Amendment No. 2 to Agreement
No. 15-45-060-00, with Airport Mobil Towing (Airport) to provide CFSP
services on Beat No. 25, for an additional amount of $628,000, for a total
amount not to exceed $2,555,000;
3) Approve Agreement No. 15-45-061-04, Amendment No. 3 to Agreement
No. 15-45-061-00, with Pepe's Towing (Pepe's) to provide CFSP services on
Beat No. 26, for an additional amount of $310,000, for a total amount not
to exceed $1,601,000;
4) Approve Agreement No. 16-45-082-02, Amendment No. 2 to Agreement
No. 16-45-082-00, with Pepe's Towing to provide CFSP services on Beat No.
4, for an additional amount of $643,000, for a total amount not to exceed
$1,973,000; and
5) Authorize the Chair or Executive Director, pursuant to legal counsel review,
to execute the agreements, on behalf of the Commission.
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 4
7F. QUARTERLY PUBLIC ENGAGEMENT METRICS REPORT FOR JULY — SEPTEMBER
2018
Receive and file the Quarterly Public Engagement Metrics Report for July —
September 2018.
8. QUARTERLY SALES TAX ANALYSIS
Theresia Trevino, Chief Financial Officer, presented the sales tax update, highlighting the
following areas:
• Sales Tax Administration
• Fiscal Year 2017/18 Sales Tax Revenues
At this time, Theresia Trevino introduced Tracy Vesely with MuniServices to present
additional information on what has happened and where the Commission is now.
Tracy Vesely presented the following areas:
• California Department of Tax and Fee Administration (CDFTA): What has
happened: New Centralized Revenue Opportunity System implemented; System
crashed in May on first day of operation; Data field changes and revised
advance/clean-up timing; Cash to local agencies delayed in 1Q 2018 and 2Q 2018;
and FY 2017/18 year-end cash low for some agencies
• CDTFA: Where is the Commission is now: CDTFA staff responsive and committed
to resolving issues; 1Q 2018 payments almost complete — progress on 2Q 2018
processing; North American Industry Classification Systems codes a positive
change; and CDTFA creating updated cash distribution statement to reflect
amounts related to prior tax periods
At this time, Theresia Trevino presented the following areas:
• What's ahead: Determination of "FY 2018 effect"; State auditor report
recommendations related to Bradley -Burns Tax; and Wayfair Supreme Court
decision and online sales taxes
Anne Mayer expressed appreciation to Ms. Trevino and Ms. Vesely for their presentations
and explained over the years the Commission's collection and distribution of sales tax
revenues has been an automatic process. However, due to the changes occurring in the
collection system, the administration of the program, as well as the potential impact of
the Wayfair Supreme Court decision staff thought it was important to provide a preview
of what is occurring with respect to sales tax receipts and distribution. She stated this
would be particularly important for the Commissioners' member agency staff, as well as
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 5
the transit agency staff, which will be seeing a direct and immediate impact of the
Commission not receiving the anticipated receipts. Overall, the change of administration
from BOE to CDTFA will be good and there are opportunities for efficiencies for
elimination of redundancies. She explained at the Self -Help County Coalition had its Focus
on the Future Annual Conference the Director Nicolas Maduros of CDTFA attended and
his responses and commitments were credible. She discussed why the Commission's
policy and practices tend to be on the conservative side. She used annual transit
allocations as an example for holding back 10 percent of the Commission's projected
revenues for the year to keep a rainy day fund due to the fluctuations in sales tax
revenues. Staff will be working through the Commission's Technical Advisory Committee
and other communication avenues directly with staff so they are aware of why this year's
sales tax receipts will show a lower balance and next year's will show a higher balance.
In response to Commissioner Russell Betts's inquiry about the sales tax receipts and
transit agencies such as SunLine Transit Agency (SunLine) will see less revenue for sales
tax, Anne Mayer replied no and clarified for example SunLine repeatedly asked the
Commission to abandon its process related to 10 percent withholding at the beginning of
the fiscal year. She then discussed why the Commission holds the 10 percent from the
transit agencies.
In response to Commissioner Betts' clarification there is a situation now where SunLine
and the other transit agencies can expect less revenue for sales tax this year but possibly
more next year, Theresia Trevino replied the allocations to transit agencies in the past
few years have not been solely from the revenues. She explained when it is determined
what is available for the transit operators includes the current year estimate of revenues
available, which is net of the 10 percent reserve plus the reserves from the prior fiscal
year. The amount of revenues that will be available for FY 2020 is where staff has a
dilemma on how to make that projection for next year.
Commissioner Betts expressed if the Commission has reserves and the transit agencies
will experience a shortage of funds as an anomaly this year he suggested to take down
the reserve level down due to the problems it causes at the transit agencies. He
concurred with the 10 percent reserve policy and being conservative but asked if the
transit agencies going to see less funding this year.
Anne Mayer replied it is uncertain and explained if the Commission uses the total
revenues based on what is being seen from CDTFA and assume those low numbers are
true and use those to distribute money the transit agencies would see a decrease amount.
She stated what needs to be determined by January 2019, when the projection is made
as there is the low number, which is wrong and a high number that would probably be
projected and pick something in the middle so the agencies will not see such a significant
cut.
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 6
Commissioner Betts stated having been on the receiving end of what the cuts do at the
transit agency level such as SunLine if it is severe enough then routes and services have
to be cut. He suggested if the Commission could take into account that if the 10 percent
reserve is the target maybe there is a realistic idea that something is going to improve
that subsequent year and be a little bit more liberal with that reserve.
Anne Mayer clarified the transit agencies at their discretion may dip into their reserves
on an annual basis so if that were the decision SunLine made the Commission would
support that.
In response to Commissioner Shelley Kaplan's inquiry regarding the state proposed
changes on the Bradley -Burns Tax if there is any analysis by city, Theresia Trevino replied
she does not have the analysis by city although she can see if there is any additional
documentation provided by the State Auditor to the CDTFA.
In response to Commissioner Lisa Middleton's clarification there was a computer crash
and there were a few weeks of reporting loss of sales tax receipts in May and in June
2018, which will make projects for FY 2019/20 much more difficult and staff will come
back to the Commission in January 2019, Theresia Trevino replied yes. However, the
effect of the crash in May was that it was processing first calendar quarter and second
quarter returns. At one point, there was an estimate of 80,000 unprocessed returns,
which was early this summer.
M/S/C to receive and file the sales tax analysis for the Quarter 1, 2018
(1Q 2018).
10. STATE FUNDING UPDATE
Aaron Hake, External Affairs Director, presented an update for Senate Bill 1 and for the
Commission's Legislative Platform.
Commissioner Steven Hernandez referred to the scoring criteria, stated there has been
emphasis in California to give credit to CalEnviroScreen 3.0, suggested getting creative,
and work with SCAG and look at how that scoring criteria may or may not benefit this
area.
Aaron Hake replied staff will certainly do that. He noted that a pillar for the Commission's
Legislative Platform and something that has been voiced to the CTC is that some of the
criteria that are created at the state level are pretty coarse and do not take into account
local considerations. Staff is asking for to the extent possible that decisions on where the
funding goes should be pushed down to the most local level possible.
M/S/C to receive an oral report on Senate Bill 1.
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 7
11. ITEM(S) PULLED FROM CONSENT CALENDAR FOR DISCUSSION
There were no items pulled from the Consent Calendar.
12. COMMISSIONERS/EXECUTIVE DIRECTOR'S REPORT
12A. Anne Mayer announced:
• After the results from the Proposition 6 vote count the Commission
released request for proposals for the 1-15 Southerly extension project for
the environmental work from Cajalco Road to SR-74
• The CTC will be meeting on December 5 and 6 in the CAC Board Room, with
a CTC reception on the evening of December 5 in the Atrium
• Update for the SR-91 COP as one of the final stages of that will be
implemented this weekend; westbound 91 Express Lanes will be closed as
well as some of the general purpose lanes for November 17-18; to restripe
the express lanes ingress and egress, entrance and exit points at the
County Line
• There will be no work during Thanksgiving weekend, however there will be
several closures on the weekends in December on SR-91 to upgrade the
toll technology system to accommodate the implementation of the new
6C Transponders
• Join staff on the 3rd Floor after the Commission meeting to honor the
Commissioners that will be leaving service
12B. Commissioner Spiegel referred to the SR-91 fixes and as Anne Mayer mentioned
one piece of it will begin. She expressed this 91 Express Lanes project is not a
failure as it would have been worse if this project was not completed. This has
been ongoing with the city of Corona residents and discussed the issues causing
traffic on the 91 Express Lanes. Commissioner Spiegel expressed the Inland
Empire is at its lowest unemployment rate and it is not just the housing causing
traffic as some of those are being built. She requested the Commission finds the
funding to fix the unintended consequence of the auxiliary lane is one of the key
pieces that has been discussed and this should be put as a priority.
12C. Commissioner Debbie Franklin congratulated all the Commissioners that won
their election races. She expressed gratitude for the opportunity to have been
able to work with the Commissioners as she has learned a lot about transportation
and has built many relationships. She is pleased to work together as a County to
move transportation forward.
12D. Commissioner Jim Hyatt expressed gratitude to Deputy Executive Director John
Standiford for coming to SCAG at the last meeting and provided a great report on
Riverside County Transportation Commission Meeting Minutes
November 14, 2018
Page 8
the logistics center fee for warehousing. He referred to the San Gorgonio Pass
Area as there is a problem with traffic and back in the 90s there was discussion
about a north/south route that runs from 1-10 through SR-60 going south. This
report brought up the thought the Commission needs to do something with that
in the future.
Anne Mayer replied the Commission has the Annual Commission Workshop on
January 31-February 1 and one of the discussion items that staff will be proposing
is to provide the status and some recommendations of all the CETAP Corridors.
Commissioner Hyatt replied if he is on the Commission during that time, he will
attend and bring this issue forward, however right now is the time to start
planning.
At this time, Commissioner Manuel Perez left the meeting.
13. CLOSED SESSION
13A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Agency Negotiator: Executive Director or Designee
Item
APN(s)
CPN(s)
Property Owner
Buyer(s)
1
118-270-002,
118-270-003,
118-302-014
22219/22222/
22223
Riverside County
Transportation
Commission
City of
Corona
There were no announcements from the Closed Session Items.
14. ADJOURNMENT
There being no further business for consideration by the Riverside County Transportation
Commission, Chair Reed adjourned the meeting at 10:37 a.m. The next Commission
meeting is scheduled to be held at 9:30 a.m., Wednesday, December 12, 2018, Board
Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside.
Respectfully submitted,
Lisa Mobley
Clerk of the Board
AGENDA ITEM 7A
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
December 12, 2018
TO:
Riverside County Transportation Commission
FROM:
Lisa Mobley, Clerk of the Board
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Proposed 2019 Commission/Committee Meeting Schedule
STAFF RECOMMENDATION:
This item is for the Commission to adopt its 2019 Commission/Committee Meeting Schedule.
BACKGROUND INFORMATION:
The Commission is scheduled to meet on the second Wednesday of each month at 9:30 a.m. The
Executive Committee is scheduled at 9:00 a.m. on the same day. Due to the October Commission
meeting falling on Yom Kippur, the October Commission meeting is being scheduled for Thursday,
October 17, 2019 at 9:30 a.m. For 2019, the annual Commission Workshop will be held on
Thursday, January 31 and Friday, February 1 at the Temecula Creek Inn. Due to the timing of the
annual workshop, the January Budget and Implementation and Western Riverside County
Programs and Projects Committees will not be scheduled.
The Commission's policy committees — Budget and Implementation and Western Riverside
County Programs and Projects — meet on the fourth Monday of each month at 9:30 a.m. and
1:30 p.m., respectively. For 2019, these Committees will not meet in May due to a holiday.
Additionally, the Toll Policy and Operations Committee meets on the fourth Thursday of the
months of February, May, August and November at 11:00 a.m., except when the fourth Thursday
falls on a holiday. There are times when a committee meeting may be cancelled due to lack of
substantive agenda items. When this occurs, the Commissioners will be notified and items are
forwarded directly to the Commission for final action.
Attachment: Proposed 2019 Commission/Committee Meetings Schedule
Agenda Item 7A
1
RIVERSIDE
ROTC COUNTY 5 �RTATION 2019 MEETING
COMMISSION
SCHEDULE
Meeting Date
(Wednesday)
Commission
Location
Executive
Committee
Location
January 9
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
January 31- February 1
Meeting / Workshop
1:30 p.m. (Thursday)
8:30 a.m. (Friday)
Temecula Creek Inn
N/A
N/A
February 13
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
March 13
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
April 10
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
May 8
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
June 12
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
July 10
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
August 14
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
September 11
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
October 17*
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
November 13
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
December 11
9:30 a.m.
Board Room
9:00 a.m.
RCTC March Field Conf. Rm.
The Commission and the Executive Committee meetings are held on the second Wednesday of each month.
*This meeting is being held on an alternate day due to it falling on a holiday.
2019 RCTC Meeting Schedule — V1
Meeting Date (Monday)
Budget and
Implementation
Committee
Western Riverside
County Programs and
Projects Committee
Location
February 25
9:30 a.m.
1:30 p.m.
Board Room
March 25
9:30 a.m.
1:30 p.m.
Board Room
April 22
9:30 a.m.
1:30 p.m.
Board Room
June 24
9:30 a.m.
1:30 p.m.
Board Room
July 22
9:30 a.m.
1:30 p.m.
Board Room
August 26
9:30 a.m.
1:30 p.m.
Board Room
September 23
9:30 a.m.
1:30 p.m.
Board Room
October 28
9:30 a.m.
1:30 p.m.
Board Room
November 25
9:30 a.m.
1:30 p.m.
Board Room
December 23
9:30 a.m.
1:30 p.m.
Board Room
The meetings of the Budget and Implementation Committee and the Western Riverside County Programs and Projects Committee are held
on the fourth Monday of each month, except on holidays.
2019 RCTC Meeting Schedule — V1
Meeting Date (Thursday)
Toll Policy and Operations Committee
Location
February 28
11:00 a.m.
Riverside — RCTC March Field Conf. Rm.
May 23
11:00 a.m.
August 22
11:00 a.m.
The meetings of the Toll Policy and Operations Committee are held quarterly on the fourth Friday of the months of February, May, August,
and November, except when the fourth Thursday falls on a holiday.
Meeting Date (Monday)
Technical Advisory Committee
Location
January 21
10:00 a.m.
Riverside — RCTC March Field Conf. Rm.
March 18
10:30 a.m.
Palm Desert — CVAG Board Room
May 20
10:00 a.m.
Riverside — RCTC March Field Conf. Rm.
July 15
10:30 a.m.
Palm Desert — CVAG Board Room
September 16
10:00 a.m.
Riverside — RCTC March Field Conf. Rm.
November 18
10:30 a.m.
Palm Desert — CVAG Board Room
The meetings of the Technical Advisory Committee are held on the third Monday of every other month, except for holidays.
If the meeting falls on a holiday, the meeting is moved to the fourth Monday.
Riverside — Commission Office, County Administrative Center,
4080 Lemon Street, 3rd Floor, Riverside, CA
Coachella Valley Association of Governments —
Board Room 73-710 Fred WaringDrive
Palm Desert, CA
2019 RCTC Meeting Schedule — V1
AGENDA ITEM 7B
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
December 12, 2018
TO:
Riverside County Transportation Commission
FROM:
Lisa Mobley, Clerk of the Board
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Resolution to Amend the Appendix of the Conflict of Interest Code
STAFF RECOMMENDATION:
This item is for the Commission to adopt Resolution No. 18-019, "Resolution of the Riverside
County Transportation Commission Amending the Appendix of the Conflict of Interest Code
Pursuant to the Political Reform Act of 1974".
BACKGROUND INFORMATION:
As required, the Riverside County Transportation Commission regularly updates its Conflict of
Interest Code (Code) to include new positions which must be designated, remove positions
which have been abolished and update titles of positions which have changed. At this time,
there is a need to amend the appendix to include a new position which must be designated,
revise the disclosure requirements of an existing position based upon the change in the duties
of the position and revise the title of another position to clarify its all -encompassing
designation. The amended appendix shows the list of positions who manage public
investments, and positions to be governed under the Code and their respective disclosure
categories. A notice of intention to amend the appendix of the Code was publicly posted and
provided to the affected designated employees.
After the Commission adopts the amended appendix, it will be submitted to the Riverside
County's Board of Supervisors for approval as it is the code -reviewing body for the Commission.
In order to meet the requirements of the Code pursuant to the Political Reform Act of 1974,
staff recommends that the Commission adopt Resolution No. 18-019 to make the appropriate
changes to the Code.
Attachments:
1) Resolution No. 18-019
2) Amended Appendix
3) Notice of Intention
Agenda Item 7B
5
ATTACHMENT 1
RESOLUTION NO. 18-019
RESOLUTION OF THE RIVERSIDE COUNTY
TRANSPORTATION COMMISSION AMENDING THE
CONFLICT OF INTEREST CODE PURSUANT TO THE
POLITICAL REFORM ACT OF 1974
WHEREAS, the Legislature of the State of California enacted the Political
Reform Act of 1974, Government Code Section 81000 et seq. (the "Act"), which
contains provisions relating to conflicts of interest which potentially affect all officers,
employees and consultants of the Riverside County Transportation Commission (the
"Commission") and requires all public agencies to adopt and promulgate a conflict of
interest code; and
WHEREAS, the Commission adopted a Conflict of Interest Code (the
"Code") which was amended on June 14, 2017, in compliance with the Act; and
WHEREAS, subsequent changed circumstances within the Commission
have made it advisable and necessary pursuant to Sections 87306 and 87307 of the Act
to amend and update the Commission's Code; and
WHEREAS, the potential penalties for violation of the provisions of the Act
are substantial and may include criminal and civil liability, as well as equitable relief
which could result in the Commission being restrained or prevented from acting in cases
where the provisions of the Act may have been violated; and
WHEREAS, notice of the time and place of a public meeting on, and of
consideration by the Commission of, the proposed amended Code was provided each
affected designated employee and publicly posted for review at the offices of the
Commission; and
WHEREAS, a public meeting was held upon the proposed amended Code
at a regular meeting of the Members of the Board of the Commission on December 12,
2018, at which all present were given an opportunity to be heard on the proposed
amended Code.
NOW, THEREFORE, BE IT RESOLVED by the Members of the Board of
the Commission of the Riverside County Transportation Commission that the Members
of the Board of the Commission do hereby adopt the proposed amended Conflict of
Interest Code, a copy of which is attached hereto and shall be on file with the Clerk of
the Board and available to the public for inspection and copying;
17336.00019\31595750.1
6
BE IT FURTHER RESOLVED that the said amended Code shall be
submitted to the Board of Supervisors of the County of Riverside for approval and said
Code shall become effective upon approval by the Board of Supervisors.
APPROVED AND ADOPTED this 12th day of December, 2018.
ATTEST:
Clerk, Riverside County
Transportation Commission
Chair, Riverside County
Transportation Commission
17336.00019\31595750.1
2
7
ATTACHMENT 2
LAW OFFICES OF
BEST BEST & KRIEGER LLP
CONFLICT OF INTEREST CODE FOR THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
(Amended June 14, 2017December 12, 2018)
The Political Reform Act (Gov. Code § 81000, et seq.) requires state and
local government agencies to adopt and promulgate conflict of interest codes. The Fair
Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. §
18730) which contains the terms of a standard conflict of interest code, which can be
incorporated by reference in an agency's code. After public notice and hearing it may
be amended by the Fair Political Practices Commission to conform to amendments in
the Political Reform Act. Therefore, the terms of 2 California Code of Regulations
section 18730 and any amendments to it duly adopted by the Fair Political Practices
Commission are hereby incorporated by reference. This regulation and the attached
Appendix designating officials and positions and establishing disclosure categories,
shall constitute the conflict of interest code of the Riverside County Transportation
Commission (the "Commission").
All officials and designated employees required to submit a statement of
economic interests shall file their statements with the Clerk of the Board as the
Commission's Filing Officer. The Clerk of the Board shall make and retain a copy of all
statements filed by Members of the Board of the Commission and the Executive
Director, and forward the originals of such statements to the Clerk of the Board of
Supervisors of the County of Riverside. The Commission's Clerk of the Board shall
retain the originals of the statements filed by all other officials and designated positions
and make all statements available for public inspection and reproduction during regular
business hours. (Gov. Code § 81008.)
-1- BBK June 2017November 2018
17336.00019\31595666.1
8
LAW OFFICES OF
BEST BEST & KRIEGER
LLP
APPENDIX
CONFLICT OF INTEREST CODE
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
(Amended .1-u„e1^;i�1?December 12, 2018)
PART "A"
OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
Commission Officials who manage public investments, as defined by 2
Cal. Code of Regs. § 18700.3(b), are NOT subject to the Commission's Code, but must
file disclosure statements under Government Code Section 87200 et seq. [Regs. §
18730(b)(3)] These positions are listed here for informational purposes only.
It has been determined that the positions listed below are officials who
manage public investmentsl:
Members of the Board of the Commission and their Alternates
Executive Director
Deputy Executive Director
Chief Financial Officer
Financial Consultants
1
Individuals holding one of the above -listed positions may contact the Fair Political Practices
Commission for assistance or written advice regarding their filing obligations if they believe that
their position has been categorized incorrectly. The Fair Political Practices Commission makes
the final determination whether a position is covered by § 87200.
17336.00019\31595666.1
A.-1- BBK June 2017November 2018
9
LAW OFFICES OF
BEST BEST & KRIEGER
LLP
DESIGNATED POSITIONS
GOVERNED BY THE CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Capital Projects -Manager (ALL) 1, 2
Clerk of the Board 24
Commuter and Motorist Assistance Manager 5
Deputy Director of Finance 1
External Affairs Director 1, 2
Facilities Administrator 1, 2
General Counsel 1, 2
Goods Movement Manager 5
Government Relations Manager 1
Human Resources Administrator 4
IT Administrator 5
Management Analyst — Multimodal Services (ALL) 2, 3, 5
Management Analyst — Programming (ALL) 5
Management Analyst — Rail (ALL) 1, 2
Management Analyst — Right of Way (ALL) 1, 2
Multimodal Services Director 2, 3, 5
Planning and Programming Director 2, 3, 5
Planning and Programming Manager 2, 5, 6
Procurement Analyst 1, 2
A.-2- BBK June 2017November 2018
17336.00019\31595666.1
10
LAW OFFICES OF
BEST BEST & KRIEGER
LLP
DESIGNATED POSITIONS' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Procurement Manager 1, 2
Project Delivery Director 1, 2
Public Affairs Manager 5
Rail Manager 1, 2
Right of Way Manager 1, 2
Senior Administrative Assistant, Procurement 5
Senior Financial Analyst 5
Senior Management Analyst — External Affairs 1, 2
Senior Management Analyst — Legislative Affairs 1, 2
Senior Management Analyst — Toll Program 5
Toll Operations Manager 2, 3, 5
Toll Program Director 2, 3, 5
Toll Project Manager 2, 3, 5
Toll Technology Manager 3, 5
Transit Manager 2, 3, 5
Consultant and New Positions2
2
Individuals serving as a consultant as defined in FPPC Reg 18700.3(a) or in a new position
created since this Code was last approved that makes or participates in making decisions must
file under the broadest disclosure category in this Code subject to the following limitation:
The Executive Director may determine that, due to the range of duties or contractual obligations,
it is more appropriate to assign a limited disclosure requirement. described in this Section. A
clear explanation of the duties and a statement of the extent of the disclosure requirements must
be in a written document. (Gov. Code Sec. 82019; FPPC Regulations 18219 and 18734). The
Executive Director's determination is a public record and shall be retained for public inspection in
the same manner and location as this Conflict of Interest Code (Gov. Code Sec. 81008).
17336.00019\31595666.1
A.-3- BBK June 2017November 2018
11
LAW OFFICES OF
BEST BEST & KRIEGER
LLP
Part "B"
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of investments,
business entities, sources of income, including gifts, loans and travel payments, or real
property which the Designated Position must disclose for each disclosure category to
which he or she is assigned.3 "Investment" means financial interest in any business
entity (including a consulting business or other independent contracting business) and
are reportable if they are either located in or doing business in the jurisdiction, are
planning to do business in the jurisdiction, or have done business during the previous
two years in the jurisdiction of the Commission.
Category 1: All investments and business positions and sources of
income, including gifts, loans and travel payments, that are located in, do business in,
or own real property within the jurisdiction of the Commission.
Category 2: All interests in real property which is located in whole or in
part within, or not more than two (2) miles outside, the jurisdiction of the Commission.
Category 3: All investments and business positions and sources of
income, including gifts, loans and travel payments, that are engaged in land
development, construction or the acquisition or sale of real property within the
jurisdiction of the Commission.
Category 4: All investments and business positions and sources of
income, including gifts, loans and travel payments, that provide services, supplies,
materials, machinery, vehicles or equipment of a type purchased or leased by the
Commission.
Category 5: All investments and business positions and sources of
income, including gifts, loans and travel payments, that provide services, supplies,
materials, machinery, vehicles or equipment of a type purchased or leased by the
Designated Position's department, unit or division.
Category 6: All investments and business positions and sources of
income, including gifts, loans and travel payments, subject to the regulatory, permit, or
licensing authority of the Designated Position's department, unit or division.
3
This Conflict of Interest Code does not require the reporting of gifts from outside this agency's
jurisdiction if the source does not have some connection with or bearing upon the functions or
duties of the position. (Reg. 18730.1)
B.-1- BBK June 2017November 2018
17336.00019\31595666.1
12
ATTACHMENT 3
NOTICE OF INTENTION TO AMEND THE
CONFLICT OF INTEREST CODE OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
NOTICE IS HEREBY GIVEN that the Riverside County Transportation
Commission (the "Commission") intends to amend its Conflict of Interest Code (the
"Code") pursuant to Government Code Section 87306.
The Appendix of the Code designates those positions, members, officers,
and consultants who make or participate in the making of decisions and are subject to
the disclosure requirements of the Commission's Code. The Commission's proposed
amendment includes a new position that must be designated, revises the disclosure
requirement of an existing position based upon the change of the duties of the position
and clarifies the commission —wide reach of the designation of a position.
The proposed amended Code will be considered by the Board of
Commissioners on December 12, 2018, at 9:30 a.m. at Riverside County Board Room,
4080 Lemon Street, Riverside, California. Any interested person may be present and
comment at the public meeting or may submit written comments concerning the
proposed amendment. Any comments or inquiries should be directed to the attention of
Jennifer Harmon, Clerk of the Board, Riverside County Transportation Commission,
4080 Lemon Street, 3rd Floor, Riverside, CA 92501; (951) 787-7141. Written comments
must be submitted no later than December 12, 2018, at 9:30 a.m.
The proposed amended Code may be reviewed at, and copies obtained
from, the office of the Clerk of the Board, during regular business hours.
17336.00019\31595817.1
13
AGENDA ITEM 7C
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
December 12, 2018
TO:
Riverside County Transportation Commission
FROM:
Audit Ad Hoc Committee
Theresia Trevino, Chief Financial Officer
Michele Cisneros, Deputy Director of Finance
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Fiscal Year 2017/18 Commission Audit Results
AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION:
This item is for the Commission to:
1) Receive and file the Fiscal Year 2017/18
a) Comprehensive Annual Financial Report (CAFR);
b) Local Transportation Fund (LTF) Financial and Compliance Report;
c) State Transit Assistance (STA) Fund Financial and Compliance Report;
d) State of Good Repair (SGR) Fund Financial and Compliance Report;
e) Proposition 1B Rehabilitation and Security Project (Proposition 1B) Accounts
Financial and Compliance Reports;
f) Low Carbon Transit Operations Program (LCTOP) Account Financial and
Compliance Reports;
g) Single Audit Report;
h) RCTC 91 Express Lanes Fund Financial Report;
i) Auditor Required Communications Report;
j) Agreed -Upon Procedures Report related to the Appropriations Limit Calculation;
k) Agreed -Upon Procedures Report related to the Commuter Assistance Program
(CAP) incentives; and
I) Management certifications.
BACKGROUND INFORMATION:
In April 2015, Macias Gini & O'Connell, LLP (MGO) was selected to perform the annual audit of
the Commission's financial statements included in the CAFR, LTF, STA, RCTC 91 Express Lanes,
and federal awards. As a result of receipt of SGR funds for transit infrastructure repair and service
improvements and Proposition 1B and LCTOP funds for commuter rail rehabilitation and security
projects, separate audits are required for these funds. Additionally, MGO performs agreed -upon
procedures related to the annual Appropriations Limit Calculation and the CAP incentives and
reports on compliance with commercial paper debt covenants. The audits, compliance
Agenda Item 7C
14
procedures, and agreed -upon procedures for the fiscal year ended June 30, 2018, have been
completed, and MGO issued all reports.
The Commission's CAFR consists of three sections: introductory, financial, and statistical. While
the introductory and statistical sections were not audited by MGO, the basic financial statements
included a financial section were audited by MGO. The Commission received an unmodified
opinion on its basic financial statements from MGO, which is the highest form of assurance.
Limited procedures were performed related to the required supplementary information,
including Management's Discussion and Analysis section; such information was not audited. The
other supplementary information was subject to the auditing procedures applied in the audit of
the basic financial statements, and, in the opinion of the auditors, it is fairly stated in relation to
the basic financial statements.
The basic financial statements include government -wide financial statements, fund financial
statements, and notes to the financial statements. Management's Discussion and Analysis
section provides a narrative overview and analysis of the Commission's financial activities for the
fiscal year. Financial highlights and significant matter of the basic financial statements include:
• Net position of approximately $195.3 million at June 30, 2018, compared to
approximately $141.5 million at June 30, 2017, reflects a net increase of approximately
$53.8 million from governmental and business -type activities.
• The net increase in net position consists of a net increase of approximately $37.9 million
from governmental activities and a net increase of approximately $15.9 million from
business -type activities.
• Governmental fund balances of approximately $776 million at June 30, 2018, compared
to approximately $706.4 million at June 30, 2017, represent an increase of approximately
$69.6 million from the prior year.
• In July 2017 in connection with the Interstate 15 Express Lanes project (1-15 ELP), the
Commission:
o Recorded approximately $158.8 million in 2017 Series A Sales Tax Revenue Bonds
at a premium of approximately $28.9 million to fund a portion of the 1-15 ELP and
complete the State Route 91 Corridor Improvement Project, retire $30 million of
outstanding commercial paper notes, and pay costs of issuance; and
o Executed a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan
of up to $152.5 million, which proceeds, when drawn upon, will finance a portion
of the costs of the 1-15 ELP. There were no TIFIA loan amounts drawn down at
June 30, 2018.
• In December 2017, the Commission recorded approximately $392.7 million in 2017 Series
B Sales Tax Revenue Refunding Bonds at a premium of $80 million to refund outstanding
2010 Series A Sales Tax Revenue Bonds and a portion of the outstanding 2013 Series A
Agenda Item 7C
15
Sales Tax Revenue Bonds in the amounts of approximately $37.6 million and
$372.4 million, respectively. The reacquisition price exceeded the net carrying amount of
old debt by approximately $41.7 million. This amount is reflected as a deferred outflow
of resources and amortized over the life of the old debt, which is the same as the
2017 Series B Sales Tax Revenue Refunding Bonds obligation. The transaction also
resulted in an economic gain (difference between the present value of the debt service
payments on the old debt and the new debt) of approximately $39.9 million and a
reduction in future debt payments of approximately $52 million.
• In March 2018, the Commission recorded approximately $64.3 million in 2018 Series A
Sales Tax Revenue Refunding Bonds at a premium of approximately $10.7 million to
refund outstanding 2009 Sales Tax Revenue Bonds and finance a termination payment in
connection with an interest rate swap agreement with Bank of America.
• The sales tax revenue bonds and sales tax revenue refunding bonds are recorded as a
liability on the government -wide financial statements as of June 30, 2018, and as other
financing sources on the fund financial statements for the year ended June 30, 2018.
• A passed reversal adjustment difference of $218,500 for accrued local reimbursements
for the prior year was determined immaterial to the financial statements, and MGO's
opinion was not modified with respect to this matter.
The audit reports related to the separately issued financial statements of the LTF, STA, SGR,
Proposition 1B, and LCTOP also reflect unmodified opinions from MGO. These financial
statements are required to be issued separately under the Transportation Development Act
(TDA) and the provisions for Proposition 1B and LCTOP; however, the LTF, STA, and SGR financial
position and operations are included in the fund financial statements in the CAFR. The
Proposition 1B and LCTOP financial position are part of the General and Measure A Western
County Commuter Rail funds. These reports noted no matters considered to be a material
weakness in internal control and no instances of noncompliance.
The 2018 Single Audit Report includes the reports on compliance and internal control over
financial reporting and over federal awards. These reports noted no matters considered to be a
material weakness in internal and no instances of noncompliance.
The RCTC 91 Express Lanes Financial Statements include the Independent Auditors' Report,
Management's Discussion and Analysis, and Financial Statements, including Notes to Financial
Statements. Financial highlights include net deficit of approximately $277.8 million, which
consisted of:
• Net investment in capital assets of approximately ($286.3) million reflecting
toll -supported debt in excess of capital assets; and
• Restricted net position of approximately $8.6 million for toll operations in accordance
with debt indentures and agreements.
Agenda Item 7C
16
As a result of the establishment of the commercial paper program in March 2005, the bank
reimbursement agreement requires a report from the auditor regarding compliance with certain
covenants. The report issued by MGO indicated that nothing came to the auditor's attention that
caused the auditors to believe the Commission failed to comply with these covenants.
A management letter usually includes recommendations for improvements and operational
efficiencies related to the internal control and other matters notes during the audit. MGO did
not have any recommendations or comments on other matters; therefore, it did not issue a
management letter.
The Appropriations Limit Calculations and CAP reports are based on specific procedures agreed
to by the Commission. For the Appropriations Limit Calculation and CAP, the auditors noted no
exceptions or findings related to the procedures performed.
As required by American Institute of Certified Public Accountants Auditing Standards Board
Statement No. 114, The Auditor's Communications With Those Charged with Governance, the
Commission's auditor is required to make certain annual communications to the Commission's
Audit Ad Hoc Committee, or its equivalent, regarding the audit of the Commission's financial
statements following the completion of the audit. The annual audit for FY 2017/18 conducted
by MGO was completed in October 2018. The report to the Audit Ad Hoc Committee from the
auditor contains the required communications about the audit.
As part of the development of the Commission's Accountability Program, the directors have
completed certifications relating to financial reporting and operational disclosures.
Attachments:
1) 2018 Comprehensive Annual Financial Report (Posted on Commission Website)
2) 2018 Local Transportation Fund Financial and Compliance Report
3) 2018 State Transit Assistance Fund Financial and Compliance Report
4) 2018 State of Good Repair Fund Financial and Compliance Report
5) 2018 Proposition 1B Rehabilitation and Security Project Accounts Financial and
Compliance Reports
6) 2018 Low Carbon Transit Operations Program Account Financial and Compliance Reports
7) 2018 Single Audit Report
8) 2018 RCTC 91 Express Lanes Fund Financial Report
9) 2018 Commercial Paper Compliance Report
10) 2018 Report to the Audit Ad Hoc Committee
11) 2018 Agreed -Upon Procedures Report related to the Appropriations Limit Calculation
12) 2018 Agreed -Upon Procedures Report related to the Commuter Assistance Program
incentives
13) 2018 Executive Director and Chief Financial Officer Certification
14) 2018 Director's Certification
Agenda Item 7C
17
ATTACHMENT 1
Riverside County Transportation Commission
Riverside County, California
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Intentionally left blank
Riverside County Transportation Commission
Riverside County, California
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Submitted By:
Theresia Trevino, Chief Financial Officer
Michele Cisneros, Deputy Director of Finance
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Contents
Introductory Section
Letter of Transmittal
Organization Chart
List of Principal Officials and Management Staff
Independent Auditors' Report 1
Management's Discussion and Analysis 3
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet —Governmental Funds 19
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 22
Statement of Revenues, Expenditures and Changes in Fund Balances
—Governmental Funds 23
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities 23
Proprietary Fund
Statement of Fund Net Position 27
Statement of Revenues, Expenses and Changes in Fund Net Position 28
Statement of Cash Flows 29
Notes to Financial Statements 31
Required Supplementary Information
Budgetary Comparison Schedules
General Fund 68
Major Special Revenue Funds 69
Schedule of Proportionate Share of Net Pension Liability 71
Schedule of Pension Contributions 72
Schedule of Changes in the Net OPEB Liability and Related Ratios 73
Schedule of OPEB Contributions 74
Notes to Required Supplementary Information 75
Other Supplementary Information
Nonmajor Governmental Funds 76
Combining Balance Sheet 77
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 79
Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual:
Nonmajor Special Revenue Funds 81
Capital Projects Funds 84
Debt Service Fund 85
Schedule of Expenditures for Local Streets and Roads by Geographic Area —All Special
Revenue Funds 86
Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and
Source —All Special Revenue Funds 87
Schedule of Uses of Debt Proceeds and Fund Balances 88
17
18
Contents, Continued
Statistical Section Overview 89
Primary Government Net Position by Component 90
Changes in Primary Government Net Position 92
Fund Balances of Governmental Funds 96
Changes in Fund Balances of Governmental Funds 98
Sources of County of Riverside Taxable Sales by Business Type 100
Direct and Overlapping Sales Tax Rates 102
Principal Taxable Sales Generation by City 103
Measure A Sales Tax Revenues by Program and Geographic Area 104
Measure A Sales Tax by Economic Category 105
Measure A Revenues and Pledged Revenue Coverage 106
Ratios of Outstanding Debt by Type 108
Computation of Legal Debt Margin 110
Demographic and Economic Statistics for the County of Riverside 112
Employment Statistics by Industry for the County of Riverside 113
Full-time Equivalent Employees by Function/Program 114
Operating Indicators 116
Capital Asset Statistics by Program 118
Introductory Section
BLANK - BACK OF INTRODUCTORY DIVIDER
October 30, 2018
To the Riverside County Transportation Commission Commissioners
and Citizens of the County of Riverside:
Letter of Transmittal
State law requires that the Riverside County Transportation Commission (Commission or RCTC) publish within six months of the
close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally
accepted in the United States (GAAP) and audited in accordance with generally accepted auditing standards by independent
certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR)
of the Commission for the fiscal year ended June 30, 2018.
Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based
upon the Commission's comprehensive framework of internal controls established for this purpose. Because the cost of internal
control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the
financial statements are free of any material misstatements.
Macias Gini & O'Connell LLP has issued an unmodified opinion on the Commission's financial statements for the year ended
June 30, 2018. The independent auditor's report is located at the front of the financial section of this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative
introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be
read in conjunction with it.
Profile of RCTC's Governance and Responsibilities
State law established the Commission in 1976 to oversee the funding and coordination of all public transportation services within
the county of Riverside (County). The Commission's mission is to assume a leadership role in improving mobility in Riverside
County and to maximize the cost effectiveness of transportation dollars in the County. The governing body is the Board of
Commissioners (Board), which consists of all five members of the County Board of Supervisors, one elected official from each of
the County's 28 cities, and one non -voting member appointed by the Governor. The Commission is responsible for setting policies,
establishing priorities, and coordinating activities among the County's various transportation operators and agencies. The
Commission also programs and/or reviews the allocation of federal, state, and local funds for highway, transit, rail, non -motorized
travel (bicycle and pedestrian), and other transportation activities.
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The Commission also serves as the tax authority and implementation agency for the voter -approved Measure A Transportation
Improvement Program, which imposes a half -cent sales tax to fund transportation improvements. Originally approved in 1988
(1989 Measure A), Riverside County's voters in 2002 approved a 30-year extension of Measure A commencing July 1, 2009
through June 30, 2039 (2009 Measure A).
The Commission is also legally responsible for allocating Transportation Development Act (TDA) funds, the major source of funds
for transit in the County. The TDA provides two major sources of funding: Local Transportation Fund (LTF), which is derived from
a one -quarter cent state sales tax, and State Transit Assistance, which is derived from the statewide sales tax on gasoline and
diesel fuel.
Additionally, the Commission provides motorist aid services designed to expedite traffic flow. These services include the Service
Authority for Freeway Emergencies (SAFE), a program that provides call box service for motorists, and the Freeway Service
Patrol (FSP), a roving tow truck service to assist motorists with disabled vehicles on the main highways of the County during peak
rush hour traffic periods. The motorist aid program also includes the operation of the Inland Empire 511 (IE511) system which
provides comprehensive real time traveler information for freeways, bus and rail transit, and rideshare services. All services are
provided at no charge to motorists and are funded through a $1 surcharge on vehicle registrations; FSP also receives state
allocations. The Commission is financially accountable for SAFE, a legally separate entity that is blended within the Commission's
financial statements.
Finally, the Commission has been designated as the Congestion Management Agency (CMA) for the County. As the CMA, the
Commission coordinates with local jurisdictions in the establishment of congestion mitigation procedures for the County's roadway
system.
The Commission is required to adopt a budget prior to the beginning of each fiscal year. The annual budget, which includes all
funds, serves as the foundation for the Commission's financial planning and control regarding staffing, operations, and capital
plans. The budget is prepared by fund (financial responsibility unit), department, and function. Management has the discretion to
transfer budgeted amounts within the financial responsibility unit according to function. During the fiscal year, all budget
amendments requiring Board approval are presented to the Board for consideration and adoption.
ii
Local Economy
Riverside County has specific competitive advantages over nearby coastal counties (Los Angeles, Orange, and San Diego)
including housing that was (and remains) more available and affordable, lower commercial real estate lease and purchase costs,
and land available for development at lesser costs. Riverside County's economy has thrived, reflecting those specific competitive
advantages over its neighboring counties, largely as a result of the County's continuing ability to draw jobs, residents, and
affordable housing away from the Los Angeles, Orange, and San Diego county areas. As a result, the County's employment and
commercial base has become more diversified, and the County's share of the regional economy has increased.
Riverside County's local economy is experiencing significant improvement since the nationwide recession, which had a significant
impact on the Inland Empire (i.e., San Bernardino and Riverside counties). According to the 2018 Inland Empire Forecast issued
by the Center for Economic Forecasting and Development at the University of California Riverside School of Business, "the Inland
Empire economy showed resiliency through the first half of 2018." Notable areas of growth include employment, population, and
a more diverse economic base. Sales tax revenues have rebounded from the economic downturn's low point in 2010, with
Measure A and LTF growing each year through FY 2017/18. While the local economy is one of the fastest growing in California,
the FY 2017/18 growth in sales tax revenues was lower than recent years due to the California Department of Tax and Fee
Administration's (CDTFA) new automation system implementation in May 2018 and resulting delays in tax return processing. The
CDTFA expects these issues to be corrected within the next few months. Transportation Uniform Mitigation Fee (TUMF) revenues
increased 21 %, reflecting a continued demand for residential single family and multi -family housing.
While the foundation for continued economic growth is in place, the Commission faces formidable ongoing challenges in terms of
providing needed infrastructure enhancements to support a population and an economy that has outgrown the capacity of its
existing infrastructure. Fortunately, the foundation of the regional economy continues to retain many of the fundamental positive
attributes that fueled its earlier growth, including lower priced real estate with proximity to coastal communities, a large pool of
skilled workers, and increasing wealth and education levels.
Long-term Financial Planning
Proactive financial planning is a critical element for the success of the Commission as it builds for the future. Continually reviewing
revenues and projecting expenditures and expenses ensures that the Commission's expectations are realistic and goals are
achievable. Scarce resources, especially at the state and federal level, can be directed to projects of regional significance or, with
additional funding, project priorities can be expanded to address unfunded project requirements or developing needs.
At the state level, transportation funding is a source of continuing debate regarding future priorities. Sustainability has become a
statewide priority and will likely impact the direction of state funding for many years into the future, and California's Cap and Trade
program (which has been reauthorized) could prove to be a source of funding for transit services.
In 2017 Governor Brown signed Senate Bill (SB) 1, which raises vehicle registrations fees and the state gas tax by 12 cents per
gallon to fund transportation projects with a "Fix it First" and public transit orientation that stresses ongoing maintenance over
capacity enhancement. As of this writing, the fate of SB 1 is in the hands of California's voters in November who will decide on
whether or not to repeal the gas tax and registration fee hikes. If the repeal, which appears as Proposition 6 on the ballot, were
to pass, it would reduce state transportation revenues immediately and would require voter approval of any increase in
transportation -related fees in the future.
No matter what happens in the upcoming election, another bill, SB 132, provides $427 million from the state's budget to fund five
important new transportation projects in Northwest Riverside County. This includes two grade separations in Jurupa Valley and
Corona, a new bridge over the Santa Ana River at Hamner Avenue in Norco, improvements to the Interstate 15 (I-15)/Limonite
Avenue interchange, and a new express lanes connector between the RCTC 91 Express Lanes and the future 1-15 Express
Lanes. Construction has already begun on the I-15/Limonite Avenue interchange, and preliminary engineering work has
commenced on the other projects. All of the SB 132 projects are required to be completed prior to 2023.
The 15/91 express lanes connector will be especially important to the Commission and will provide a needed direct express lane
iii
to express lane connection between State Route 91 (SR-91) and the northern portion of 1-15. Additional legislation also provided
the Commission with added flexibility in delivering the project by allowing for the use of the design -build or the construction
manager general contractor method of procurement. A number of contract amendments and agreements are now in place to
ensure timely delivery of the project.
The news on the federal level is somewhat less predictable. In December 2015, the comprehensive transportation bill known as
Fixing America's Surface Transportation Act — or FAST Act — superseded Moving Ahead for Progress in the 21st Century (MAP-
21) which originally expired in June 2014. The federal government will continue to be a source of highway funding through the
Surface Transportation Block Grant Program (formerly, Surface Transportation Program) and the Congestion Mitigation Air Quality
program, since the FAST Act continues these programs at roughly the same funding level. The Commission's transit partners for
capital programs also need federal dollars.
Capital Project Delivery and Implementation — Completing Past Promises for a Better Future
The Capital Project Development and Delivery Department is responsible for major highway and rail capital projects from initial
environmental study through preliminary engineering, final design, right of way acquisition, and construction.
The Commission is currently in the midst of an unprecedented era of transportation investment in Riverside County. The results
can be seen with numerous projects under construction, increasingly popular and successful transit service, and promises of more
on the way in the near future. There are also a number of notable completed projects — providing tangible examples of the
Commission completing promises that were made to voters who approved Measure A. The Commission has developed a track
record of success which is taking shape throughout the County as evidenced in the following project types.
Highways: In February 2012 the Commission amended its Western Riverside County (Western County) Highway Delivery Plan
to include a truck climbing lanes safety project on SR-60 in the Badlands area in place of a similar nearby project on 1-10. In
partnership with Caltrans, the Commission is the project sponsor and Caltrans is the lead agency for preliminary engineering
using federal funds. With a total project cost estimated at $122 million, construction of the project will begin in early 2019 now that
litigation challenging the project has been successfully resolved. The project will add truck climbing and deceleration lanes, wider
shoulders, and additional safety improvements to a 4.5-mile segment of the highway..
Commuter Rail: Since 1993 the Commission has held title to and managed the 38-mile San Jacinto Branch Line and several
adjacent properties in anticipation of offering Metrolink commuter rail service to a wider area of the County, initially including
Moreno Valley and Perris and ultimately to Hemet/San Jacinto. The completion of the Perris Valley Line project in June 2016
completed yet another promise made to voters in Measure A. The Perris Valley Line provides Riverside County with a foundation
for better transit service involving a combination of commuter rail, local buses and active transportation improvements. It added
24 miles of commuter rail service in Riverside County with stops in Riverside —Hunter Park/University California Riverside (UCR),
Moreno Valley/March Field, Perris —Downtown and Perris —South. The project used a combination of federal Small Starts Grant
funding, Measure A and STIP dollars. Ridership on the new extension has increased with a targeted marketing campaign and
rider discounts.
Active Transportation: Non -motorized transportation options are becoming an increasingly important part of California's
transportation infrastructure, and the Commission has taken a leadership role in assisting local jurisdictions by funding and
advocating for projects vying for state funding. The Commission is also heading up project development for the Santa Ana River
Trail — a multiuse facility that will provide a bike, pedestrian and equestrian trail to link San Bernardino, Riverside and Orange
Counties for cyclists, pedestrians and equestrians.
Toll Program Exceeding Expectations
91 Express Lanes Offer New Choice: The SR-91 Corridor Improvement Project (91 Project) through Corona opened in March
2017. Since that opening, use of the 91 Express Lanes has far exceeded a conservative ramp -up period that was expected for
the facility. During its first full year of operation, use of the RCTC 91 Express Lanes exceeded expectations and traffic conditions
on the corridor have improved with the addition of the new capacity. While construction on the original 91 Project has been
iv
completed, the Commission is evaluating a number of operational improvements at the Riverside/Orange County line and at the
entrances of the RCTC 91 Express Lanes to ease the transition from the mainline freeway corridor and reduce congestion at key
"hot spots."
1-15 Express Lanes — The Next Project: The 1-15 Express Lanes Project is now under construction and will add two tolled
express lanes of approximately 15 miles in length, in each direction in the median of 1-15. The facility is expected to open in mid
2020 and will operate somewhat differently from other toll facilities in the region by offering multiple access points to enter and
exit the express lanes. The I-15 Express Lanes will also feature dynamic pricing, which is designed to adjust tolls throughout the
day to reflect actual traffic conditions rather than being bound by a set time of day schedule.
Building the Future — Placentia Interchange for Mid County Parkway to Break Ground in 2020
In early 2020, the Commission will start the very first component of the Mid County Parkway (MCP), a new 16 mile east -west
corridor between San Jacinto and Perris. This project will add a new freeway interchange at Placentia Avenue that will link to the
MCP and improve a segment of Placentia Avenue in the city of Perris.
Another large planning effort affecting the Hemet and San Jacinto communities is the realignment of SR-79. This 2009 Measure
A project is undergoing early project development, which was partially funded through the TUMF program and federal earmarks.
An environmental document was approved in January 2017 to allow the realignment of SR-79 between Domenigoni Parkway,
south of SR-74, and Gilman Springs Road, north of San Jacinto. The project would realign the highway to provide a more direct
route within the San Jacinto Valley. Current work on this project includes acquisition of right of way needed for mitigation and to
protect cultural sites.
TUMF Plays an Important Role
In the Coachella Valley, a TUMF program was established shortly after the passage of the 1989 Measure A. The program requires
developers to pay a fee on new development to fund arterial improvements. Cities are required to participate in the program or
forfeit Measure A local dollars to Coachella Valley Association of Governments, which oversees the arterial program and has
been successful in funding a number of important arterial and freeway interchange projects.
With the passage of the 2009 Measure A, a TUMF program with participation requirements similar to that in the Coachella Valley
is in place in Western County and administered by the Western Riverside Council of Governments. TUMF funds received by the
Commission are split evenly between new corridors, including the MCP, and regional arterials, including local projects and the
SR-79 realignment project. To date, 15 projects have been completed, six projects are under construction or in pre -construction,
and two projects are in the development phase and remain to be programmed for future TUMF funds.
Rail Development, Operations and Support
As one of five funding partners in the Southern California Regional Rail Authority, which operates the Metrolink commuter rail
service, the Commission is engaged in a continual exercise of consensus building with its partners to provide effective regional
service. Now consisting of seven lines serving six counties, the system carries an average of 42,876 passengers each weekday.
The Commission owns and operates nine stations served by the three Metrolink lines operating through the County, including
four new stations along the Perris Valley Line that commenced carrying passengers in June 2016.
The Commission's Perris/Downtown station is a multimodal facility also serving Riverside Transit Agency bus operations and
providing park and ride spaces. It continues to serve as an important regional bus terminal. The Riverside Downtown Operations
Control Center provides monitoring of closed circuit televisions at the stations as well as facilities for train crews.
'v Riverside Line: Originates in the Riverside —Downtown station and stops at the Jurupa Valley/Pedley station before
proceeding through Ontario, Pomona, Industry, and Montebello to Los Angeles Union Station. Daily ridership averages
4,059 riders.
v
'v Inland Empire Orange County (IEOC) Line: Begins in nearby San Bernardino with stops at the Riverside —Downtown,
Riverside —La Sierra, Corona —North Main, and Corona —West stations before entering Orange County with stops in
Anaheim Canyon, Orange, Santa Ana, Tustin, Irvine, Laguna Niguel/Mission Viejo, San Juan Capistrano, San Clemente
and Oceanside. When initiated, this service was described as the first suburb -to -suburb commuter rail service in the
nation. Ridership on the IEOC line remained steady in the past year with an average daily ridership of 4,844. This line
also provides weekend service.
v 91/Perris Valley Line: Provides service from Perris to Los Angeles with stops in South Perris, Downtown Perris, Moreno
Valley/March Field, Riverside —Hunter Park/UCR, La Sierra, North Main Corona, West Corona, Fullerton, Buena Park,
Norwalk, and Commerce before terminating at Union Station. Daily patronage on the line averages 3,263. A part of this
line between Riverside and Los Angeles offers weekend service.
Commuter Services
Acting in its capacity as the regional transportation planning agency (RTPA) and the SAFE for Riverside County, the Commission
provides a variety of commuter services to increase mobility, safety, and air quality throughout the region. As the RTPA, the
Commission applies Measure A funds to administer the Commuter Assistance Program (CAP) to ease congestion, maximize the
efficiency of its transportation investments, and reduce emissions from single occupant vehicle trips with the following programs
and services:
Commuter/Employer Rideshare Services: In partnership with San Bernardino County Transportation Authority (SBCTA), the
Commission helps Riverside and San Bernardino commuters discover their best commute through IE Commuter, the flagship of
the CAP. In just a few clicks, www.iecommuter.orq users can access all of their time and money saving transportation options
(carpool partners, bus, and rail) and incentives available to them. Additionally, through IE Commuter, the Commission partners
heavily with local employers to implement and maintain rideshare activities at work sites throughout Riverside and San Bernardino
counties. IE Commuter continues to leverage technology to increase awareness, consideration, and use of alternative modes to
improve mobility and air quality throughout the region.
Rideshare Incentives: The most prominent commuter incentive continues to be the Rideshare Incentives, a short-term incentive
that offers $2 per day for each day new ride sharers use an alternate mode of transportation in a three-month period. Long-term
ride sharers are recognized and rewarded for their continuing commitment to use alternate modes of transportation to and from
work with access to discounts at over 360,000 nationwide merchants through Rideshare Plus.
Vanpool Subsidies: In May 2018, the Commission launched VanClub, which provides ongoing subsidies to eligible vanpools
commuting to employer worksites in Western County. In its first five months of operation, VanClub ramped up to 69 vanpools
resulting in the reduction of 30,440 trips, 1.1 million miles, and 1.8 tons of emissions throughout the region.
Park and Rides: Working in partnership with Caltrans, the Commission leases excess parking from business and civic institutional
partners to facilitate ridesharing and to expand the system's park and ride capacity. There are approximately 2,800 park and ride
spaces available in Riverside County.
Motorist Assistance: As the SAFE, the Commission also administers the Motorist Assistance Program to provide the following
services designed to promote mobility and safety for motorists traveling through Riverside County:
Freeway Service Patrol: Celebrating its 251h anniversary in Riverside County, the FSP program is a special team of 20 tow
trucks roving along 12 beats on portions of SR-60, SR-91, 1-15, and 1-215 within the County during peak, weekday commuter
hours to assist drivers when their vehicles break down or experience other mechanical problems. The purpose of the FSP is
to clear debris and remove disabled vehicles from the freeway as quickly as possible to help keep freeway traffic moving
during rush hour periods. Another effort augments existing FSP service with additional tow trucks in construction areas as
another means of construction -related congestion mitigation. The Riverside County SAFE and the State fund the FSP. During
FY 2017/18, the FSP provided 41,417 assists. This includes incremental FSP weekend service, funded by the Southern
California Air Quality Management District's Mobile Source Air Pollution Reduction and Review Committee, on segments of
vi
SR-91 and SR-60.
Call Boxes: In cooperation with the California Highway Patrol and Caltrans, the Commission assists motorists who
experience accidents, mechanical breakdowns, or other unforeseen problems by providing access to cellular call boxes with
enhanced reception along the County's major highways. In response to the proliferation and continued growth of cell phone
usage and declining demand and use of call boxes, the Commission approved a substantial reduction to the call box system
in 2017. A cost effective backbone of 241 call box units remain in place and serve more than 346 centerline miles of highways.
The call box program is funded by Riverside County SAFE revenue, an annual $1 surcharge added to vehicle registrations.
In FY 2017/18, call box operators answered approximately 1,598 calls from motorists.
Traveler Information: To further promote mobility, the Commission in partnership with the SBCTA, provides motorists with
access to real-time freeway travel information and incident information on Southern California highways through its 1E511
Traveler Information system. 1E511 is designed to promote mobility by fostering more informed travel decisions to avoid
congestion and is available via the telephone by dialing 511 from any landline or cell phone within Riverside or San Bernardino
County, online at www.ie511.org, or the 1E511 mobile app. To date, the 1E511 mobile app has been downloaded by over
64,000 users. 1E511 is funded with Riverside County SAFE funds in addition to SBCTA reimbursements. In FY 2017/18,
1E511 serviced approximately 408,000 web visits and 142,000 phone calls.
Specialized Transit
The Commission has maintained a long-term commitment to assist in the mobility of those with specialized transit needs. Through
its Specialized Transit Program, the Commission has provided millions of dollars to public and nonprofit transit operators to assist
in the provision of special transit services to improve the mobility of seniors, persons with disabilities and persons with low incomes.
Along with support of traditional dial -a -ride services, the Commission supports innovative programs providing transit assistance
in hard -to -serve rural areas or for riders having very special transit needs.
Following the Commission's approval and adoption of the Public Transit —Human Services Coordinated Plan for Riverside County
in 2008, the Commission identified additional qualified populations as well as underserved areas of Riverside County in need of
transit services. The 2015 Universal Call for Projects for Specialized Transit (Universal Call) provided funding awards in Western
County approximating $8 million to 17 public and nonprofit agencies using Measure A funding over a three-year period through
FY 2017/18. During FY 2017/18, public and nonprofit operators provided approximately 345,000 Measure A funded one-way trips
in Western County.
Developing a Countywide Plan
Work is underway to develop a comprehensive countywide transportation plan for approval in 2019. Over the course of several
months in 2015, the Commission conducted a strategic assessment to ascertain upcoming transportation needs and the
Commission's ability to address them. The study was presented to the Commission in January 2016 and identified key funding
and project gaps. In addition to the overall long range plan, special emphasis is being placed on studies of next generation rail
services and toll facilities.
vii
Awards and Acknowledgements
The Government Finance Officers Association of the United
States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the
Commission for its CAFR for the fiscal year ended June 30, 2017.
This was the 25th consecutive year the Commission has achieved
this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and
efficiently organized CAFR. This report must satisfy both GAAP
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.
We believe our current CAFR continues to meet the Certificate of
Achievement Program's requirements, and we are submitting it
to the GFOA to determine its eligibility for another certificate.
The CAFR each year is a collaborative effort by Commission staff
and its independent auditors. The undersigned are grateful to all
staff for their willingness to expend the effort necessary to ensure
the financial information contained herein is informative and
completed within established deadlines. Special thanks must be
extended to the Finance staff, program management and staff,
and Commission's auditors for the time, effort, and commitment
so vital for the final completion of the CAFR.
G�
Government Finance Ot ieers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Riverside County
Transportation Commission
California
.For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2017
Pu'u
Executive Ureutor/CEO
In closing, without the leadership and the support of the Board, preparation of this report would not have been possible. Its prudent
management must be credited for the strength of the Commission's fiscal condition, and its vision ensures that the Riverside
County Transportation Commission will be on the move planning for and building a better future for Riverside County residents
and commuters.
Very truly yours,
ANNE MAYER
Executive Director
r �>
THERESIA TREVINO
Chief Financial Officer
viii
Riverside County Transportation Commission Organization Chart
Human
Resources
Administrator
Board of
Commissioners
Deputy
feeeubrr
hlrectce
Chief Financial
Officer
Procurement
Manager
Procurement i
Analyst
Senior
Administrative
Assistant
Senior Financial
Analyst
Accountant.
Deputy Director of .l Accounting
` Finance 1 �I Technician (2)
Accounting
Assistant (2)
Public Affairs I Senior Office
Manager Assistant
Legislative Affairs.. �a Administrative
Manager Assistant
External Affairs
Director 1 Commuter &
Motorist Management
Assistance Analyst
Mena,.] _
Senior
Management
I Analyst
Clprfr of the Board
Mulfimodaf
Services Director
Deputy Clerk of
the Board
l
Records
Technician
f
Information
Technology
Administrator
Rail teenager Management .
Analyst
Transit Manager
PFgram in Planning in
Programming 'i�lr Programming
Director l Manager
Project Delivery
Director
Tall Program.
Director
Capital Prefects �.
Manager (4)
Right of Way
Manager
Facilities
Manager
Toff Project
Manager (2)
Toll Operations
Manager
Tall Senior
1 Management
Analyst
Management
Analyst
Senior
Management
Analyst
Management
Analyst
Senior
Management
Analyst (2) l
Management
Analyst
Tog Technologies
Manager
I
ix
Riverside County Transportation Commission
List of Principal Officials
�•a
Kevin Jeffries Member
John F. Tavaglione Member
Chuck Washington Vice Chair (Commission)
V. Manuel Perez Member
Marion Ashley Member
Deborah Franklin Member
Lloyd White Member
Joseph DeConinck Member
Jim Hyatt Member
Randall Bonner Member
Greg Pettis Member
Steven Hernandez Member
Karen Spiegel Member
Scott Matas Member
Board of Commissioners -
Title Agency
Adam Rush Chair (Western Riverside County Programs and Projects Committee)
Linda Krupa Vice Chair (Budget and Implementation Committee)
Dana Reed Chair (Commission)
Michael Wilson Member
Brian Berkson Vice Chair (Western Riverside County Programs and Projects
Committee)
Kathleen Fitzpatrick Member City of La Quinta
Bob Magee Member City of Lake Elsinore
Bill Zimmerman Member City of Menifee
Victoria Baca Member City of Moreno Valley
Rick Gibbs Member City of Murrieta
Berwin Hanna Member City of Norco
Jan Harnik Member City of Palm Desert
Lisa Middleton Member City of Palm Springs
Michael M. Vargas Member City of Perris
Ted Weill Member City of Rancho Mirage
Rusty Bailey Chair (Budget and Implementation Committee) City of Riverside
Andrew Kotyuk Member City of San Jacinto
Michael S. Naggar Member City of Temecula
Ben Benoit 2nd Vice Chair (Commission) City of Wildomar
Janice Benton Governor's Appointee Caltrans, Interim District 8
Director
Anne Mayer, Executive Director
John Standiford, Deputy Executive Director
Michael Blomquist, Toll Program Director
Marlin Feenstra, Project Delivery Director
Aaron Hake, External Affairs Director
Shirley Medina, Planning and Programming Director
Lorelle Moe -Luna, Interim Multimodal Services Director
Theresia Trevino, Chief Financial Officer
County of Riverside, District 1
County of Riverside, District 2
County of Riverside, District 3
County of Riverside, District 4
County of Riverside, District 5
City of Banning
City of Beaumont
City of Blythe
City of Calimesa
City of Canyon Lake
City of Cathedral City
City of Coachella
City of Corona
City of Desert Hot Springs
City of Eastvale
City of Hemet
City of Indian Wells
City of Indio
City of Jurupa Valley
x
Financial Section
BLANK - BACK OF FINANCIAL DIVIDER
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
Riverside County Transportation Commission (the Commission) as of and for the year ended
June 30, 2018, and the related notes to the financial statements, which collectively comprise the
Commission's basic financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Commission's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the Commission, as of June 30,
2018, and the respective changes in financial position, and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
www.mgocpa.com
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparisons and information related to the
pension and other postemployment benefit plans, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Commission's basic financial statements. The combining and
individual nonmajor fund financial statements, budgetary comparison schedules, schedules of
expenditures, and schedule of uses of debt proceeds and fund balances, as listed in the table of
contents as other supplementary information, and other information, such as the introductory
and statistical section, are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison
schedules, schedules of expenditures and schedule of uses of debt proceeds and fund
balances are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements,
budgetary comparison schedules, schedules of expenditures and schedule of uses of debt
proceeds and fund balances are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
oicias griti COM/ /
Newport Beach, California
October 30, 2018
2
Riverside County Transportation Commission
Management's Discussion and Analysis
Year Ended June 30, 2018
As management of the Riverside County Transportation Commission (Commission), we offer readers of the Commission's
financial statements this narrative overview and analysis of the Commission's financial activities for the fiscal year ended June
30, 2018. We encourage readers to consider the information on financial performance presented here in conjunction with the
transmittal letter on pages i-x and the Commission's financial statements which begin on page 17.
Financial Highlights
• Total net position of the Commission was $195,326,943 and consisted of net investment in capital assets of
$242,828,909; restricted net position of $809,983,609; and unrestricted net position (deficit) of ($857,485,575).
• The governmental activities unrestricted net position (deficit) results primarily from the recording of the debt issued for
Measure A highway, local streets and roads, and regional arterial projects. As title to substantially most of those assets
vests with the State of California (State) Department of Transportation (Caltrans) or local jurisdictions, there is no asset
corresponding to the liability. Accordingly, the Commission does not have sufficient current resources on hand to cover
current and long-term liabilities; however, future Measure A sales taxes are pledged to cover Measure A debt service
payments when made.
• Total net position increased by $53,838,450 during fiscal 2018. An increase in net position from governmental activities
of $37,926,944 was primarily due to an increase in operating grants and contributions as well as Transportation
Development Act sales taxes, offset by a decrease in governmental program expenses. An increase in net position from
business -type activities of $15,911,506 was primarily due to an increase in charges for services offset by operating and
interest expenses stemming from a full year of toll operations as well as internal transfers of capital and intangible assets.
• Total capital and intangible assets, net of accumulated depreciation and amortization, were $725,578,757 and
$244,045,820 at June 30, 2018, respectively, representing an increase of $97,354,686, or 11%, from June 30, 2017.
The increase in capital assets was primarily related to land acquisition, construction in progress costs for the 1-15 Express
Lanes project, and rail track costs related to the Perris Valley Line. The increase in intangible assets was related to the
transfer of costs for the completed construction of tolled express lanes and direct connector from the governmental
activities capital assets to business -type activities intangible assets.
• The long-term liabilities net increase of $181,875,950 related to the issuance of the 2017A Sales Tax Revenue Bonds
and the compounded and accreted interest on the 2013 TIFIA Loan and 2013 Toll Revenue Bonds. During 2018, the
Commission also issued $457,015,000 of sales tax revenue bonds to refund $480,875,000 of outstanding sales tax
bonds, resulting in a significant reduction in future debt payments of approximately $53 million over the life of the bonds.
• The Commission's governmental funds reported combined ending fund balances of $776,037,540, an increase of
$69,624,472 compared to fiscal 2017 primarily due to the proceeds from the issuance of debt to fund a portion of the I-
15 Express Lanes project and to refund outstanding sales tax revenue bonds. Approximately 69% of the governmental
fund balances represent amounts available for the Measure A program, including debt service and funding from the
issuance of debt, and the TUMF program.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Commission's basic financial statements, which are
comprised of three components consisting of government -wide financial statements, fund financial statements, and notes to the
financial statements. This report also contains required supplementary information and other supplementary information in
addition to the basic financial statements.
3
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the Commission's finances,
in a manner similar to a private -sector business.
The statement of net position presents information on all of the Commission's assets, liabilities, and deferred outflows/inflows of
resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the Commission is improving or deteriorating.
The statement of activities presents information showing how the Commission's net position changed during the fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal
periods.
The government -wide financial statements report the functions of the Commission that are principally supported by sales taxes
and intergovernmental revenues, or governmental activities, from other functions that are intended to recover all or a significant
portion of its costs through user fees and charges, or business -type activities. The governmental activities of the Commission
include general government, the Measure A program, Community and Environmental Transportation Acceptability Process
(CETAP), commuter assistance, regional arterials, commuter rail, transit and specialized transportation services, planning and
programming, bicycle and pedestrian facilities projects, and motorist assistance services. Measure A program services are divided
within the three regions of Riverside County (County), namely Western County, Coachella Valley, and Palo Verde Valley. The
business -type activities of the Commission include toll road operations.
The government -wide financial statements include only the Commission and its blended component unit. The government -wide
financial statements can be found on pages 17-18 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific
activities or objectives. Fund accounting is used to ensure and demonstrate compliance with finance -related legal requirements.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government -wide financial statements; however, governmental fund financial statements focus on near -term inflows and outflows
of spendable resources and on balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near -term financing requirements.
Since the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare
the information presented for governmental funds with similar information presented for governmental activities in the government -
wide financial statements. As a result, readers may better understand the long-term impact of the government's near -term
financing decisions. Both the governmental fund balance sheet and related statement of revenues, expenditures and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Commission maintains 16 individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the related statement of revenues, expenditures and changes in fund balances for the Commission's major
governmental funds comprised of the General fund; Measure A Western County, Measure A Coachella Valley, Transportation
Uniform Mitigation Fee (TUMF), and Local Transportation Fund (LTF) Special Revenue funds; Commercial Paper and Bonds
Capital Projects funds; and Debt Service fund. Data from the other eight governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements in the other supplementary information section.
The Commission adopts an annual appropriated budget for the General fund, all Special Revenue funds, all Capital Projects
4
funds, and the Debt Service fund. Budgetary comparison schedules have been provided for the General fund and major Special
Revenue funds as required supplementary information and for the nonmajor Special Revenue funds and the Capital Projects and
Debt Service funds as other supplementary information to demonstrate compliance with these budgets.
The governmental fund financial statements, including the reconciliation between the fund financial statements and the
government -wide financial statements, can be found on pages 19-24 of this report.
The proprietary fund consists of an enterprise fund, which is used to report the same functions presented as business -type
activities in the government -wide financial statements. The Commission uses an enterprise fund to account for its toll road
operations.
Proprietary fund financial statements provide the same type of information as the government -wide financial statements, only in
more detail. The proprietary fund financial statements provide separate financial information of the RCTC 91 Express Lanes,
which is a major enterprise fund of the Commission.
The proprietary fund financial statements can be found on pages 27-30 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and
fund financial statements. The notes to the financial statements can be found on pages 32-67 of this report.
Other Information
Other information is in addition to the basic financial statements and accompanying notes to the financial statements. This report
also presents certain required supplementary information concerning the Commission's budgetary results for the General fund
and major Special Revenue funds as well as the schedules of proportionate share of net pension liability, pension contributions,
changes in the net other -post employment benefits (OPEB) liability and related ratios, and OPEB contributions. Required
supplementary information can be found on pages 67-75 of this report.
Other supplementary information is presented immediately following the required supplementary information. Other
supplementary information includes the combining statements referred to earlier relating to nonmajor governmental funds;
budgetary results for the nonmajor Special Revenue funds, all Capital Projects funds, and the Debt Service fund; schedules of
expenditures for local streets and roads and expenditures for transit and specialized transportation; and schedule of uses of debt
proceeds and fund balances. This other supplementary information can be found on pages 76-88 of this report.
Government -wide Financial Analysis
As noted previously, net position may serve over time as a useful indicator of a government's financial position. At June 30, 2018,
the Commission's assets exceeded liabilities by $195,326,943, a $53,838,450 increase from June 30, 2017. Our analysis below
focuses on the net position and changes in net position of the Commission's governmental and business -type activities.
Net Position
Approximately 124%, compared to 53% in 2017, of the Commission's net position reflects its net investment in capital assets (i.e.,
construction in progress; land and improvements; toll infrastructure; buildings; construction and rail operating easements; rail
stations; rail tracks; office improvements; transponders; and office furniture, equipment, and vehicles), less any related outstanding
debt used to acquire those assets, primarily related to land and tolled express lane projects. The Commission uses these capital
assets to provide transportation services to the residents and business community of the County. Although the Commission's
investments in capital assets is reported net of related debt, the resources used to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities. For business -type activities, the related
debt for the RCTC 91 Express Lanes exceeded the capital assets, net of accumulated depreciation.
5
The most significant portion of the Commission's net position represents resources subject to external restrictions on how they
may be used. Restricted net position from governmental activities represented approximately 169% and 137% of the total net
position at June 30, 2018 and 2017, respectively. Restricted net position from governmental activities increased by $205,187,740,
as a result of the issuance of sales tax revenue bonds and refunding bonds offset by decreased highways expenses and increased
regional arterial and transit and specialized transportation revenues net of related program expenses
Unrestricted net position represents the portion of net position that can be used to finance day-to-day operations without
constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestricted net position from
governmental activities changed from a $538,356,445 deficit at June 30, 2017 to a $857,485,575 deficit at June 30, 2018. The
governmental activities deficit results primarily from the impact of recording of the Commission's long-term debt, consisting of
bonds issued for Measure A highway, local street and road, and regional arterial projects. While a significant portion of the debt
has been incurred to build these projects which are capital assets, upon completion most projects are transferred to Caltrans or
the local jurisdiction. Accordingly, such projects are not assets of the Commission that offset the long-term debt in the statement
of net position.
Certain reclassifications have been made to 2017 amounts to conform to the 2018 presentation. Such reclassifications had no
effect on the previous reported change in net position.
The following is condensed financial data related to net position at June 30, 2018 and June 30, 2017:
Net Position
Governmental -Activities Business -Type Activities Total
2010 2017 2010 2017° 2010 2017
Current and other assets
Capital assets not being depreciated
Capital assets, net of depreciation
Intangible assets, net of amortization
Total assets
$ 844,630,845 $ 795,312,825 $ 89,085,530 $ 35,002,755 $ 933,716,375 $ 830,315,580
379,768,175 285,178,007 43,207,039 44,658,207 422,975,214 329,836,214
280,571,027 281,674,658 22,032,516 26,683,530 302,603,543 308,358,188
244,045,820 234,075,489 244,045,820 234,075,489
1,504,970,047 1,362,165,490 398,370,905 340,419,981 1,903,340,952 1,702,585,471
Deferred outflows of resources 42,863,182 15,870,375 310,156 84,567 43,173,338 15,954,942
Total assets and deferred outflows of resources 1,547,833,229 1,378,035,865 398,681,061 340,504,548 1,946,514,290 1,718,540,413
Long-term obligations 953,564,990 832,825,964 648,538,612 628,567,908 1,602,103,602 1,461,393,872
Other liabilities 120,668,602 109,496,846 27,877,895 5,613,197 148,546,497 115,110,043
Total liabilities 1,074,233,592 942,322,810 676,416,507 634,181,105 1,750,650,099 1,576,503,915
Deferred inflows of resources 505,360 545,722 31,888 2,283 537,248 548,005
Total liabilities and deferred inflows of resources 1,074,738,952 942,868,532 676,448,395 634,183,388 1,751,187,347 1,577,051,920
Net position:
Net investment in capital assets 529,178,100 377,309,766 (286,349,191) (301,737,495) 242,828,909 75,572,271
Restricted 801,401,752 596,214,012 8,581,857 8,058,655 809,983,609 604,272,667
Unrestricted (deficit) (857,485,575) (538,356,445) — — (857,485,575) (538,356,445)
Net position at end of year $ 473,094,277 $ 435,167,333 $ (277,767,334) $ (293,678,840) $ 195,326,943 $ 141,488,493
Changes in Net Position
The Commission's total program and general revenues were $461,593,431, while the total cost of all programs was $407,754,981.
Total revenues increased by 35%, and the total cost of all programs decreased by 24%. Those who directly benefited from the
programs or other governments that subsidized certain programs with grants and contributions paid approximately 40% of the
costs of the Commission's programs in 2018, compared to 12% of the costs in 2017. Sales taxes ultimately financed a significant
portion of the programs' net costs.
Governmental and business -type activities increased the Commission's net position by $53,838,450, and condensed financial
data related to the change in net position is presented in the table below. Key elements of this increase are as follows:
6
" C h a r g e s f o r s e r v i c e s i n c r e a s e d b y $ 3 9 , 7 4 7 , 9 0 0 o r 3 6 1 % , d u e t o a f u l l y e a r o f t o l l o p e r a t i o n s o n t h e R C T C 9 1 E x p r e s s
L a n e s ;
" O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s i n c r e a s e d b y $ 9 , 7 5 0 , 6 1 4 , o r 2 7 % , p r i m a r i l y d u e t o f e d e r a l a n d s t a t e r e i m b u r s e m e n t s
r e l a t e d t o t h e 1 - 1 5 E x p r e s s L a n e s a n d t h e 1 5 / 9 1 E x p r e s s L a n e s C o n n e c t o r p r o j e c t s ;
" C a p i t a l g r a n t s a n d c o n t r i b u t i o n s i n c r e a s e d b y $ 5 0 , 4 5 8 , 3 8 2 , o r 3 0 7 % , p r i m a r i l y d u e t o f e d e r a l a n d s t a t e r e i m b u r s e m e n t s
r e l a t e d t o t h e 1 - 1 5 E x p r e s s L a n e s a n d t h e 1 5 / 9 1 E x p r e s s L a n e s C o n n e c t o r p r o j e c t s ;
" M e a s u r e A s a l e s t a x r e v e n u e s i n c r e a s e d b y $ 9 8 1 , 4 4 9 , o r l e s s t h a n 1 % . T h i s s l i g h t i n c r e a s e i s n o t c o n s i s t e n t w i t h t h e
p o s i t i v e e c o n o m i c i n d i c a t o r s i n t h e r e g i o n . B a s e d o n c o r r e s p o n d e n c e f r o m t h e C a l i f o r n i a D e p a r t m e n t o f T a x a n d F e e
A d m i n i s t r a t i o n ( C D T F A ) , i t i m p l e m e n t e d a n e w s y s t e m i n M a y 2 0 1 8 a n d t h e C D T F A h a s e x p e r i e n c e d u n u s u a l d e l a y s i n
t h e p r o c e s s i n g o f s a l e s t a x r e t u r n s f o r t h e f i r s t t w o q u a r t e r s o f c a l e n d a r y e a r 2 0 1 8 . C D T F A a n t i c i p a t e s r e s o l v i n g t h e
b a c k l o g i n t h e s e c o n d q u a r t e r o f F Y 2 0 1 8 / 1 9 ;
" T r a n s p o r t a t i o n D e v e l o p m e n t A c t ( T D A ) s a l e s t a x e s i n c r e a s e d b y $ 1 6 , 2 3 9 , 0 4 3 , o r 1 7 % , a s a r e s u l t o f a n i n c r e a s e i n S t a t e
T r a n s i t A s s i s t a n c e ( S T A ) r e v e n u e s a n d t h e n e w S t a t e o f G o o d R e p a i r ( S G R ) r e v e n u e s r e l a t e d t o t h e S e n a t e B i l l 1 r a i s e
i n v e h i c l e r e g i s t r a t i o n f e e s a n d s t a t e g a s t a x f o r v a r i o u s t r a n s p o r t a t i o n p r o g r a m s ;
" U n r e s t r i c t e d i n v e s t m e n t e a r n i n g s i n c r e a s e d $ 4 , 6 1 7 , 9 0 1 , o r 1 0 8 % , a s a r e s u l t o f h i g h e r c a s h a n d i n v e s t m e n t b a l a n c e s
p r i m a r i l y d u e t o t h e i s s u a n c e o f d e b t a n d r i s i n g i n t e r e s t r a t e s a n d i n v e s t m e n t y i e l d s ;
" O t h e r m i s c e l l a n e o u s r e v e n u e s d e c r e a s e d $ 3 , 3 6 1 , 8 7 7 , o r 5 7 % , d u e t o t h e s a l e o f s u r p l u s h i g h w a y p r o p e r t y i n t h e
p r e v i o u s y e a r ;
C h a n g e s i n N e t P o s t t i o n
G o v e r n m e n t a l A c t i v i t i e s B u s i n e s s - T y p e A c t i v i t i e s
2 0 1 8 2 0 1 7
2 0 1 8 2 0 1 7
T o t a l
2 0 1 8
2 0 1 7
R e v e n u e s
P r o g r a m r e v e n u e s :
C h a r g e s f o r s e r v i c e s
O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s
C a p i t a l g r a n t s a n d c o n t r i b u t i o n s
G e n e r a l r e v e n u e s :
M e a s u r e A s a l e s t a x e s
T D A s a l e s t a x e s
U n r e s t r i c t e d i n v e s t m e n t e a r n i n g s ( l o s s )
O t h e r m i s c e l l a n e o u s r e v e n u e
T o t a l r e v e n u e s
E x p e n s e s
G e n e r a l g o v e m m e n t
B i c y c l e a n d p e d e s t r i a n f a c i l i t i e s
C E T A P
C o m m u t e r a s s i s t a n c e
C o m m u t e r r a i l
H i g h w a y s
L o c a l s t r e e t s a n d r o a d s
M o t o r i s t a s s i s t a n c e
P l a n n i n g a n d p r o g r a m m i n g
R e g i o n a l a r t e r i a l s
T o l l o p e r a t i o n s
T r a n s i t a n d s p e c i a l i z e d
t r a n s p o r t a t i o n
I n t e r e s t e x p e n s e
T o t a l e x p e n s e s
E x c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r )
e x p e n s e s
T r a n s f e r s
I n c r e a s e ( d e c r e a s e ) i n n e t p o s i t i o n
N e t p o s i t i o n a t b e g i n n i n g o f y e a r
N e t p o s i t i o n a t e n d o f y e a r
$ 3 1 0 , 8 8 4
4 5 , 3 6 3 , 6 2 4
6 6 , 9 1 0 , 2 8 5
1 7 6 , 3 0 1 , 6 5 6
1 1 0 , 8 7 8 , 5 5 7
8 , 9 1 6 , 3 2 1
2 , 4 9 7 , 9 4 2
$ 8 8 6 , 2 3 6
3 5 , 6 1 1 , 2 8 7
1 6 , 4 5 1 , 9 0 3
1 7 5 , 3 2 0 , 2 0 7
9 4 , 6 3 9 , 5 1 4
4 , 2 6 2 , 3 2 3
5 , 8 5 9 , 8 1 9
$ 5 0 , 4 4 6 , 8 2 4 $ 1 0 , 1 2 3 , 5 7 2 $ 5 0 , 7 5 7 , 7 0 8
1 , 7 2 3 4 5 , 3 6 3 , 6 2 4
6 6 , 9 1 0 , 2 8 5
1 7 6 , 3 0 1 , 6 5 6
1 1 0 , 8 7 8 , 5 5 7
( 3 2 , 6 6 2 ) 3 , 4 3 5 8 , 8 8 3 , 6 5 9
- 2 , 4 9 7 , 9 4 2
4 1 1 , 1 7 9 , 2 6 9 3 3 3 , 0 3 1 , 2 8 9
$ 1 1 , 0 0 9 , 8 0 8
3 5 , 6 1 3 , 0 1 0
1 6 , 4 5 1 , 9 0 3
1 7 5 , 3 2 0 , 2 0 7
9 4 , 6 3 9 , 5 1 4
4 , 2 6 5 , 7 5 8
5 , 8 5 9 , 8 1 9
5 0 , 4 1 4 , 1 6 2 1 0 , 1 2 8 , 7 3 0 4 6 1 , 5 9 3 , 4 3 1 3 4 3 , 1 6 0 , 0 1 9
3 , 6 5 4 , 6 2 8 7 , 2 5 8 , 0 5 1
1 , 1 4 2 , 3 0 6 1 , 3 1 4 , 9 3 2
2 2 , 2 8 5 , 9 1 3 2 , 4 8 9 , 4 4 0
3 , 6 6 8 , 3 0 7 2 , 6 5 8 , 7 8 2
3 6 , 5 7 8 , 9 2 0 3 8 , 9 6 4 , 2 1 7
7 9 , 2 3 4 , 8 0 2 2 6 4 , 2 8 3 , 9 7 4
5 3 , 6 3 9 , 6 9 8 5 1 , 8 6 4 , 0 1 1
3 , 8 3 5 , 6 1 2 4 , 1 6 4 , 8 9 2
4 , 7 5 8 , 5 0 3 3 , 1 4 1 , 7 5 9
1 2 , 8 9 7 , 5 5 7 1 9 , 0 4 0 , 0 1 2
9 0 , 1 8 5 , 2 2 7 8 0 , 7 2 4 , 5 9 1
4 6 , 4 2 1 , 2 1 1 4 9 , 2 1 4 , 5 7 9
3 5 8 , 3 0 2 , 6 8 4 5 2 5 , 1 1 9 , 2 4 0
5 2 , 8 7 6 , 5 8 5 ( 1 9 2 , 0 8 7 , 9 5 1 )
( 1 4 , 9 4 9 , 6 4 1 ) 2 9 0 , 5 4 7 , 3 1 6
3 7 , 9 2 6 , 9 4 4 9 8 , 4 5 9 , 3 6 5
4 3 5 , 1 6 7 , 3 3 3 3 3 6 , 7 0 7 , 9 6 8
$ 4 7 3 , 0 9 4 , 2 7 7 $ 4 3 5 , 1 6 7 , 3 3 3
4 9 , 4 5 2 , 2 9 7 1 3 , 2 6 0 , 2 5 4
3 , 6 5 4 , 6 2 8 7 , 2 5 8 , 0 5 1
1 , 1 4 2 , 3 0 6 1 , 3 1 4 , 9 3 2
2 2 , 2 8 5 , 9 1 3 2 , 4 8 9 , 4 4 0
3 , 6 6 8 , 3 0 7 2 , 6 5 8 , 7 8 2
3 6 , 5 7 8 , 9 2 0 3 8 , 9 6 4 , 2 1 7
7 9 , 2 3 4 , 8 0 2 2 6 4 , 2 8 3 , 9 7 4
5 3 , 6 3 9 , 6 9 8 5 1 , 8 6 4 , 0 1 1
3 , 8 3 5 , 6 1 2 4 , 1 6 4 , 8 9 2
4 , 7 5 8 , 5 0 3 3 , 1 4 1 , 7 5 9
1 2 , 8 9 7 , 5 5 7 1 9 , 0 4 0 , 0 1 2
4 9 , 4 5 2 , 2 9 7 1 3 , 2 6 0 , 2 5 4
9 0 , 1 8 5 , 2 2 7 8 0 , 7 2 4 , 5 9 1
4 6 , 4 2 1 , 2 1 1 4 9 , 2 1 4 , 5 7 9
4 9 , 4 5 2 , 2 9 7 1 3 , 2 6 0 , 2 5 4 4 0 7 , 7 5 4 , 9 8 1 5 3 8 , 3 7 9 , 4 9 4
9 6 1 , 8 6 5 ( 3 , 1 3 1 , 5 2 4 ) 5 3 , 8 3 8 , 4 5 0 ( 1 9 5 , 2 1 9 , 4 7 5 )
1 4 , 9 4 9 , 6 4 1 ( 2 9 0 , 5 4 7 , 3 1 6 )
1 5 , 9 1 1 , 5 0 6 ( 2 9 3 , 6 7 8 , 8 4 0 )
( 2 9 3 , 6 7 8 , 8 4 0 )
$ ( 2 7 7 , 7 6 7 , 3 3 4 ) $ ( 2 9 3 , 6 7 8 , 8 4 0 ) $
5 3 , 8 3 8 , 4 5 0 ( 1 9 5 , 2 1 9 , 4 7 5 )
1 4 1 , 4 8 8 , 4 9 3 3 3 6 , 7 0 7 , 9 6 8
1 9 5 , 3 2 6 , 9 4 3 $ 1 4 1 , 4 8 8 , 4 9 3
" G e n e r a l g o v e r n m e n t e x p e n s e s d e c r e a s e d b y $ 3 , 6 0 3 , 4 2 3 , o r 5 0 % , p r i m a r i l y d u e t o a n e w a d m i n i s t r a t i v e c o s t a l l o c a t i o n
p r o c e s s , o f f s e t b y d e b t i s s u a n c e c o s t s ;
7
" B i c y c l e a n d p e d e s t r i a n f a c i l i t i e s e x p e n s e s d e c r e a s e d b y $ 1 7 2 , 6 2 6 , o r 1 3 % , d u e t o a d e c r e a s e i n c l a i m s s u b m i t t e d f o r
a p p r o v e d p r o j e c t s ;
" C E T A P e x p e n s e s i n c r e a s e d b y $ 1 9 , 7 9 6 , 4 7 3 , o r 7 9 5 % , p r i m a r i l y d u e t o a s e t t l e m e n t a g r e e m e n t o n t h e M i d C o u n t y
P a r k w a y p r o j e c t ;
" C o m m u t e r a s s i s t a n c e e x p e n s e s i n c r e a s e d b y $ 1 , 0 0 9 , 5 2 5 o r 3 8 % , d u e t o t h e p r o g r a m m a n a g e m e n t a c t i v i t i e s ;
" C o m m u t e r r a i l e x p e n s e s d e c r e a s e d b y $ 2 , 3 8 5 , 2 9 7 , o r 6 % , a s a r e s u l t o f c o m p l e t i o n o f t h e P e r r i s V a l l e y L i n e e x t e n s i o n
p r o j e c t i n t h e p r i o r y e a r o f f s e t b y a n i n c r e a s e i n c o m m u t e r r a i l s t a t i o n o p e r a t i n g a n d r e h a b i l i t a t i o n c o s t s ;
" H i g h w a y e x p e n s e s d e c r e a s e d b y $ 1 8 5 , 0 4 9 , 1 7 2 , o r 7 0 % , d u e t o s u b s t a n t i a l c o m p l e t i o n o f t h e 9 1 P r o j e c t i n t h e p r i o r y e a r ;
" L o c a l s t r e e t s a n d r o a d s e x p e n s e s i n c r e a s e d b y $ 1 , 7 7 5 , 6 8 7 o r 3 % , b e c a u s e o f d i s t r i b u t i o n s t o a l o c a l j u r i s d i c t i o n t h a t
b e c a m e e l i g i b l e f o r t h e s e f u n d s i n F Y 2 0 1 7 / 1 8 ;
" M o t o r i s t a s s i s t a n c e e x p e n s e s d e c r e a s e d b y $ 3 2 9 , 2 8 0 , o r 8 % , d u e t o d e c r e a s e d c o n s t r u c t i o n f r e e w a y s e r v i c e p a t r o l a n d
c a l l b o x m a i n t e n a n c e ;
" P l a n n i n g a n d p r o g r a m m i n g e x p e n s e s i n c r e a s e d b y $ 1 , 6 1 6 , 7 4 4 , o r 5 1 % , p r i m a r i l y d u e t o f e a s i b i l i t y s t u d i e s ;
" R e g i o n a l a r t e r i a l e x p e n s e s d e c r e a s e d b y $ 6 , 1 4 2 , 4 5 5 , o r 3 2 % , a s a r e s u l t o f a d e c r e a s e i n r e i m b u r s e m e n t s t o l o c a l
j u r i s d i c t i o n s f o r a p p r o v e d r e g i o n a l a r t e r i a l p r o j e c t s ;
" T o l l o p e r a t i o n s e x p e n s e s i n c r e a s e d b y $ 3 6 , 1 9 2 , 0 4 3 , o r 2 7 3 % , a s a r e s u l t o f t h e f i r s t f u l l y e a r o f o p e r a t i o n s f o r t h e R C T C
9 1 E x p r e s s L a n e s a f t e r o p e n i n g t o m o t o r i s t s i n M a r c h 2 0 1 7 ;
" T r a n s i t a n d s p e c i a l i z e d t r a n s p o r t a t i o n e x p e n s e s i n c r e a s e d b y $ 9 , 4 6 0 , 6 3 6 , o r 1 2 % , d u e t o a n i n c r e a s e i n b u s t r a n s i t
o p e r a t i n g a n d c a p i t a l c l a i m s i n a l l t h r e e g e o g r a p h i c a r e a s ; a n d
" I n t e r e s t e x p e n s e s r e l a t e d t o g o v e r n m e n t a l a c t i v i t i e s d e c r e a s e d b y $ 2 , 7 9 3 , 3 6 8 o r 6 % , p r i m a r i l y a s a r e s u l t o f t h e i m p a c t s
o f t h e i s s u a n c e o f s a l e s t a x r e v e n u e r e f u n d i n g b o n d s ; a n d
" I n t e r n a l t r a n s f e r s d e c r e a s e d $ 2 7 5 , 5 9 7 , 6 7 5 , o r 9 5 % , d u e t o t h e t r a n s f e r o f l o n g - t e r m d e b t , c a s h a n d i n v e s t m e n t s , a n d
c a p i t a l a n d i n t a n g i b l e a s s e t s f r o m g o v e r n m e n t a l a c t i v i t i e s t o b u s i n e s s - t y p e a c t i v i t i e s i n t h e p r i o r y e a r a s a r e s u l t o f t h e
s u b s t a n t i a l c o m p l e t i o n o f t h e 9 1 P r o j e c t a n d o p e n i n g o f t h e R C T C 9 1 E x p r e s s L a n e s i n M a r c h 2 0 1 7 .
8
The graphs below present the program and general revenues by source and program expenses for the Commission's
governmental activities for the fiscal years ended June 30, 2018 and June 30, 2017:
$175,000,000
$149,000,000
$123,000,C00
$97,000, 000
$71,000, 000
$45,000,000
$19,000, 000
-$7,000,000
Revenues - Governmental Activities
Transportation
Measure A sales Development Act Unrestricted Operating grants Oilier Charges for Capital grants and
taxes sales taxes investment earnings and contributions services contributions
r2018 $176,301,666 $110,878,557 $8,916,321 S45,363,624 $2,497,942 $310,884 $66,910,265
I2017 $175,323,207 $94,639,514 $4,262,323 S35,611,287 $5,859,819 $886,2 6 $16,451,903
9
Expenses - Governmental Activities
$300,000,000
$253,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$ Bicycle and Transit and
General Commuter Local streets Motorist Planning and Regional Interest
government Pedestrian CCTAP assistance Commuter rail Highwaysspecializedroads assistance programming arterials specialized expense
facilities transportation
*2018 $3,654,628 $1,142,306 $22,285,913 $3,658,307 $36,578,920 $79,234,802 $53,639,698 $3,835,612 $4,758,503 $12,897,557 $90,185,227 $46,421,211
It 2017 $7,258,051 $1,314,932 $2,489,440 $2,658,782 $38,964,217 $264,283,974 $51,864,011 $4,164,892 $3,141,759 $19040,012 $80,724,591 $49,214,579
The graphs below present the program and general revenues by source and program expenses for the Commission's business -
type activities for the fiscal years ended June 30, 2018 and June 30, 2017:
Expenses - Business -Type Activities
$60, 000,000
$50, 000,000
$40, 000,000
$30,000,000
$20,000,000
$10,000,000
tot 2018
■ 2017
RCTC 91 Express Lanes
$49,452, 297
$13,260,254
555,000,000
050.000,000
040.000,000
isso.coo,000
s3s.coo.000
'.$30,000,000
s25,000,000
520,e00:o00
vs,coo=
sto,o0o,coo
Revenues • Business•Type Activities
Unrestricted in4estnrentearnings Operatnggrartsand conbbutions Chapestor services
• 2018. 432,062 50 $50,448.824
q 2017 53.435 $1,723 510,123572
10
Financial Analysis of the Commission's Funds
Governmental Funds
The focus of the Commission's governmental funds is to provide information on a near -term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the Commission's financing requirements.
As of June 30, 2018, the Commission's governmental funds reported combined ending fund balances of $776,037,540, an
increase of $69,624,472 compared to 2017. Less than 1%, or $4,860,033, is nonspendable fund balance related to prepaid
amounts; $3,337,343 is assigned fund balance for general government administration activities; an unassigned deficit of $268,754
is related to a deficit fund balance in a nonmajor governmental fund. The remainder of the fund balance is restricted to indicate
the following externally enforceable legal restrictions:
• $7,565,006 in TDA funds that have been allocated to jurisdictions within the County for bicycle and pedestrian projects;
• $35,212,795 of TUMF funds for new CETAP corridors in Western County;
• $16,515,124 for commuter assistance activities such as expansion of park -and -ride facilities and other projects and
programs that encourage commuters to use alternative modes of transportation under the 2009 Measure A program;
• $50,499,542 in TDA, Measure A, and Proposition 1 B funds for commuter rail operations and capital projects and
$3,266,323 in TDA and Proposition 1 B funds for the Coachella Valley/San Gorgonio Pass rail corridor;
• $11,082,909 in 2009 Measure A funds available to pay sales tax revenue bonds debt service over the next year;
• $338,871,951 for highway, economic development, and new corridor projects related to the 1989 Measure A and 2009
Measure A programs;
• $2,831 for local streets and roads programs that are returned to the jurisdictions within the County for maintenance of
their roads and local arterials under the 2009 Measure A program;
• $9,238,957 in state funds for motorist assistance services;
• $4,932,446 of TDA funds for planning and programming activities and $3,142 of intergovernmental revenues for other
agency projects;
• $42,288,115 and $43,197,192 for regional arterial projects in Western County related to the 2009 Measure A and TUMF
programs, respectively;
• $9,157,388 of Measure A funds for transit and specialized transportation in the Western County and $1,561,616 for
specialized transportation in the Coachella Valley; and
• $194,713,581 in TDA funds available to the commuter rail and bus transit operations and capital in the County.
The following table presents the changes in fund balances for the governmental funds for the fiscal years ended June 30, 2018
and 2017:
Fund Balances
Year Ended June 30
2018 2017 % Chan.e
General fund
Special Revenue major funds:
Measure A Western County
Measure A Coachella Valley
Transportation Uniform Mitigation Fee
Local Transportation Fund
Capital Projects major funds:
Commercial Paper
Bonds
Debt Service fund
Nonmajor governmental funds
$ 26,040,494
276,997,302
52,068,076
78,409,987
110,435,854
21,576,316
95,343,644
11,082,909
104,082,958
19,126,100
221,510,954
47,791,274
81,473,550
115,175, 281
46,951,913 (54)%
64,660,068 47%
21,982,515 (50)%
87,741,413 19%
36%
25%
9%
(4)%
(4)%
11
Key elements for the changes in fund balances are as follows:
• The 36% increase in the General fund resulted from increased transfers from the Local Transportation Fund and 2009
Measure A Western County Special Revenue Fund for Perris Valley Line commuter rail and related station operations;
• The 25% increase in Measure A Western County Special Revenue fund was attributed to transfers from capital project
funds for highway and rail projects;
• The 9% increase in the Measure A Coachella Valley Special Revenue fund was attributed to excess 2009 Measure A
revenues over expenditures for Coachella Valley highway and regional arterial projects;
• The 4% decrease in the TUMF Special Revenue fund was attributable to increased reimbursements to local jurisdictions
for approved projects;
• The 4% decrease in the Local Transportation Fund resulted from the excess of claims of allocations for transit operations
and capital projects and for bicycle and pedestrian facility projects over sales tax revenues;
• The 54% decrease in the Commercial Paper Capital Projects fund was attributed to the use of commercial paper notes
proceeds for the 1-15 Express Lanes project costs;
• The 47% increase in Bonds Capital Projects fund was attributed to $735,488,807 of debt proceeds from the issuance of
sales tax bonds, including refunding bonds, net of transfers out for project costs;
• The 50% decrease in the Debt Service fund was attributable to increased principal payments on sales tax revenue bonds;
and
• The 19% increase in nonmajor governmental funds resulted primarily from the excess of sales tax revenues over claims
of allocations for transit capital projects.
Proprietary Fund
The Commission's proprietary fund provides the same type of information found in the government -wide financial statements.
The net position of the proprietary fund totaled a deficit of $277,767,334 at June 30, 2018. The deficit is related to the RCTC 91
Express Lanes toll -supported debt in excess of capital and intangible assets.
General Fund Budgetary Highlights
General fund intergovernmental revenues in the original budget increased $73,587 for reimbursements for commuter rail and
planning, programming, and monitoring expenditures. The $152,100 increase in expenditure appropriations between the original
budget and the final amended budget for the General fund was related to the following changes:
• $201,800 increase to general government for various operations support services;
• $74,300 decrease to the commuter rail program for program management activities;
• $600 decrease to the planning and programming activities support costs;
• $42,800 increase for transit and specialized transportation activities support costs;
• $25,000 increase for debt service for capital lease payments; and
• $42,600 decrease to capital outlay for furniture and equipment.
During the year, General fund revenues were below budgetary estimates by $3,045,680; expenditures were less than budgetary
estimates by $21,467,212. General fund budgetary variances between the final amended budget and actual amounts are as
follows:
12
General Fund Bud!etary Variances
Year Ended June 30, 2018
Original Final Amended
Budget Bud sat ... Actual % Varian.
Revenues
Intergovernmental
Investment income
Other
Total revenues
$ 8,702,400 $ 8,775,987 $ 5,674,843 (35)%
76,400 76,400 138,417 81 %
_ 293,200 293,200 286,647 (2)%
9,072,000 9,145,587 6,099,907 (33)%
Expenditures
Current
General government 7,554,400 7,756,200 11,699 100%
Commuter rail 30,594,900 30,520,600 22,682,717 26%
Planning and programming 8,690,400 8,689,800 3,433,172 60%
Transit and specialized transportation 516,300 559,100 498,790 11%
Debt service - 25,000 24,858 0%
Capital outlay 1,040,000 997,400 429,652 57%
Total expenditures 48,396,000 48,548,100 27,080,888 44%
Other financing sources (uses)
Transfers in 39,411,600 41,103,600 28,549,875 (31)%
Transfers out (1,551,800) (1,551,800) (654,500) 58%
Net change in fund balance $ (1,464,200) $ 149,287 $ 6,914,394 4532%
Significant budgetary variances between the final amended budget and actual amounts are as follows:
• $3,101,144 negative variance for intergovernmental revenues primarily related to lower intergovernmental
reimbursements for commuter rail and planning, programming and monitoring expenditures;
• $62,017 positive variance for increased investment income related to conservative investment yield estimates;
• $7,744,501 positive variance for general government expenditures primarily related to a new administrative cost
allocations process and lower professional services and other expenditures such as maintenance, training, and travel;
• $7,837,883 positive variance for commuter rail expenditures related to lower station maintenance and repairs and
Metrolink operations;
• $5,256,628 positive variance for planning and programming expenditures related to lower special studies, grade
separation project claims, and allocations to local jurisdictions for various projects;
• $60,310 positive variance for transit and specialized transportation expenditures related to lower professional services
and other expenditures such as training and travel;
• $567,748 positive variance for capital outlay expenditures due to delayed acquisition of Commission hardware and
software improvements and station improvements;
• $12,553,725 negative variance for transfers in related to the change in the administrative cost allocations process as
well as lower commuter rail and planning and programming activities than anticipated; and
• $897,300 positive variance for transfers out related to the change in administrative cost allocations process that affected
commuter rail and planning and programming activities.
Capital and Intangible Assets
Capital Assets
As of June 30, 2018, the Commission had $725,578,757, net of accumulated depreciation, invested in a broad range of capital
assets including development and construction in progress and easements; land and land improvements; construction rail
operating easements, stations, and tracks; buildings; toll infrastructure; transponders; and office improvements, furniture,
equipment, and vehicles. The total increase in the Commission's total capital assets, net for FY 2017/18 was 14%.
13
Major capital asset additions during 2018 included land acquisition for the 91 Project; construction in progress related to
preliminary engineering, construction, and design -build costs for the 1-15 Express Lanes and rail station improvements; rail track
improvements; office improvements; furniture, equipment and vehicles; toll infrastructure; and transponders.
The table below is a comparative summary of the Commission's capital assets, net of accumulated depreciation:
Governmental Activities Business -Type Activities Total
2018 2017
Hi 2017 2018
2017
Capital assets not being depreciated:
Land and land improvements
Construction easements
Rail operating easements
Construction in progress
Total capital assets not being
depreciated
Capital assets being depreciated, net
of accumulated depreciation:
Rail stations
Rail tracks
Temporary construction easements
Buildings
Toll infrastructure
Transponders
Office improvements, furniture,
equipment, and vehicles
Total capital assets, net of
accumulated depreciation
Total capital assets
$ 172,084,889 $ 162,102,279 $ 43,032,888
1,189,671 1,167,671 —
63,846,199 63,846,199 —
142,647,416 58,061,858 174,151
379,768,175 285,178,007 43,207,039
$ 44,658,207
$ 215,117,777
1,189,671
63,846,199
142,821,567
44,658,207 422,975,214
$ 206,760,486
1,167,671
63,846,199
58,061,858
329, 836, 214
132, 656, 945 137, 929, 888
144,341,460 140,127, 881
— 63,365
3,100,272 3,287,508
472,350
444,408
21,211,466
360,181
266,016 16,461
— 132,656,945 137,929,888
— 144,341,460 140,127,881
— — 63,365
484,809 3,544,680 3,772,317
26,071,062 21,211,466 26,071,062
109,743 360,181 109,743
17,916 488,811 283,932
280,571,027 281,674,658 22,032,516 26,683,530 302,603,543
308,358,188
$ 660,339,202 $ 566,852,665 $ 65,239,555 $ 71,341,737 $ 725,578,757 $ 638,194,402
More detailed information about the Commission's capital assets is presented in Note 4 to the financial statements.
Intangible Assets
On March 20, 2017, the 91 Project was substantially completed and the RCTC 91 Express Lanes opened to motorists. In
connection with a toll facilities agreement with Caltrans, or service concession agreement, the Commission may collect tolls and
operate and maintain a toll facility on SR-91 from the Orange/Riverside County line to 1-15 for 50 years from opening.
The table below is a comparative summary of the Commission's intangible assets, net of accumulated amortization:
Business -Type Activities
2018 2017
Toll facility franchise, net of accumulated amortization $ 244,045,820 $ 234,075,489
More detailed information about the intangible assets and service concession arrangements is presented in Note 5 to the financial
statements.
14
Debt Administration
As of June 30, 2018, the Commission had $1,636,313,303 outstanding in sales tax and toll revenue bonds and TIFIA loans. The
total debt increased from the $1,451,467,794 outstanding as of June 30, 2017, primarily due to the following:
• Issuance of the 2017 Series A Sales Tax Revenue Bonds, including premium, of $187,691,909 for the 1-15 Express
Lanes project, 91 Project completion, and retirement of the outstanding commercial paper notes of $30,000,000;
• Issuance of the 2017 Series B Sales Tax Refunding Bonds, including premium, of $472,788,109 to refund all of the
outstanding 2010 Series A Sales Tax Revenue Bonds of $37,630,000 and a portion of the 2013 Series A Sales Tax
Revenue Bonds of $372,445,000; and
• Issuance of the 2018 Sales Tax Refunding Bonds, including premium, of $75,008,789 to refund all of the outstanding
2009 Series B and Series C Bonds of $70,800,000.
The Commission's sales tax revenue bonds received ratings of "AA+" from S&P Global Ratings (S&P), "Aa2" from Moody's
Investors Service (Moody's), and "AA" from Fitch Ratings (Fitch), and the toll revenue bonds received ratings of "BBB" from S&P
and "BBB-" from Fitch. The TIFIA loan related to the 91 Project received a rating of "BBB-" from Fitch, and the TIFIA loan related
to the 1-15 Express Lanes project received ratings of "BBB" from Kroll Bond Rating Agency and "BBB-" from Fitch.
In March 2005 the Commission established a commercial paper program, currently authorized at $60,000,000 to provide advance
funding for 2009 Measure A capital projects. The commercial paper notes are rated "Ar by S&P and "P1" by Moody's. As of
June 30, 2018, the Commission had $0 in commercial paper notes outstanding.
The sales tax revenue debt limitation for the Commission under the 2009 Measure A program is $975,000,000 which exceeds the
total outstanding debt of $859,020,000. The Commission has also authorized the issuance of toll revenue bonds, including a TIFIA
loan, for the 91 Project not to exceed $900,000,000, which is in excess of the total outstanding debt of $648,503,036. TIFIA loans
provided federal funding up to $421,054,409 for the 91 Project and $152,214,260 for the 1-15 Express Lanes project on a
subordinate lien basis and a senior lien basis, respectively.
Additional information on the Commission's long-term debt can be found in Note 7 to the financial statements.
Economic Factors and Other Factors
During its March 2018 Commission meeting, the Commission adopted guiding principles for use in the preparation of the FY
2018/19 Budget. These principles have been incorporated in goals of the Commission and will continue to be updated annually
in response to the ever -changing social, political, and economic environment. The principles are a business planning tool designed
to assist the Commission in implementing its strategic goals and objectives and lays the foundation for future financial planning
for the annual budget process.
15
The Commission adopted the FY 2018/19 annual budget on June 13, 2018. Approximately 50% of the $881,329,400 balanced
budget is related to capital project expenditures, including:
• $27,132,900 for right of way acquisition, construction, and design -build activities related to the 91 Project consisting of
tolled express and general purpose lanes and interchange improvements;
• $145,852,500 for preliminary engineering services, right of way support services, construction, and design -build activities
related to the 1-15 Express Lanes project;
• $53,754,600 for construction and design -build activities related to the 15/91 express lanes connector project;
• $62,050,000 for preliminary engineering, right of way acquisition/support services, and construction related to the
Western County SB 132 projects;
• $26,200,000 for preliminary engineering services, right of way acquisition/support services, and construction related to
the SR-60 truck climbing lanes project;
• $13,473,000 preliminary engineering, right of way acquisition/support services, and construction related to the Pachappa
Underpass project;
• $17,742,300 for various Western County Measure A and TUMF regional arterial projects; and
• $34,425,000 for preliminary engineering, construction, and right of way acquisition/support services for the Mid County
Parkway project.
Distributions to the local jurisdictions for local streets and roads are budgeted at $56,951,500. Budgeted expenditures related to
funding of public bus transit operations and capital projects in the County aggregate $159,303,300, and budgeted transfers out
related to funding of commuter rail operations and capital are $22,100,000. Debt service costs are $76,675,600, or 9% of the
budget.
Leading economic indicators show that the local economic outlook is encouraging with the stabilization of sales tax revenues.
However, the state and federal budget issues continue to affect funding of the Commission's capital projects and programs. These
factors were considered in preparing the Commission's 2019 fiscal year budget, including the sales tax and TUMF fee revenue
projections.
There are obvious variables in terms of project financing available from federal and state funds. There is continuing uncertainty
regarding long-term federal transportation funding. The Commission continues to study alternative financing alternatives such as
tolled express lane facilities and federal financing programs to support the delivery of 2009 Measure A projects.
Contacting the Commission's Management
This financial report is designed to provide a general overview of the Commission's finances for all those with an interest in the
government's finances and to show the Commission's accountability for the money it receives. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to the Chief Financial Officer,
Finance Department at the Riverside County Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008,
Riverside, California 92502-2208.
16
Basic Financial Statements
Riverside County Transportation Commission
Statement of Net Position
June 30, 2018
Governmental Business -type
Activities Activities Total
Assets
Cash and investments $ 579,904,612 $ 33,950,063 $ 613,854,675
Receivables:
Accounts 132,796,176 25,285,773 158,081,949
Advances to other governments 25,559,386 25,559,386
Interest 2,727,963 148,492 2,876,455
Internal balances 294,509 (294,509)
Due from other governments 232,853 232,853
Prepaid expenses and other assets 4,860,033 166,966 5,026,999
Restricted investments held by trustee 98,255,313 29,828,745 128,084,058
Capital assets not being depreciated 379,768,175 43,207,039 422,975,214
Capital assets, net of accumulated depreciation 280,571,027 22,032,516 302,603,543
Intangible asset, net of amortization 244,045,820 244,045,820
Total assets 1,504,970,047 398,370,905 1,903,340,952
Deferred outflows of resources
Loss on refunding of bonds 37,948,048 - 37,948,048
Pension changes in assumptions 1,298,635 81,947 1,380,582
Pension differences between contributions and proportionate share of contributions 458,647 28,942 487,589
Pension differences between expected and actual experiences 10,467 660 11,127
Pension changes in Commission's proportion 823,142 51,942 875,084
Pension contributions subsequent to measurement date 1,231,187 77,690 1,308,877
Pension net differences between projected and actual earnings on plan investments 293,698 18,533 312,231
Other post -employment benefits net differences between projected and actual earnings on plan investments 117,392 7,408 124,800
Other post -employment benefits contributions subsequent to measurement date 681,966 43,034 725,000
Total assets and deferred outflows of resources 1,547,833,229 398,681,061 1,946,514,290
Liabilities
Accounts payable 65,205,784 1,517,652 66,723,436
Interest payable 3,632,562 1,888,106 5,520,668
Other liabilities 2,251,776 23,920,941 26,172,717
Pension liabilities 8,203,780 517,676 8,721,456
Other post -employment benefits liabilities 227,636 14,364 242,000
Long-term liabilities:
Due within one year 41,147,064 19,156 41,166,220
Due in more than one year 953,564,990 648,538,612 1,602,103,602
Total liabilities 1,074,233,592 676,416,507 1,750,650,099
Deferred inflows of resources
Pension changes in assumptions 99,023 6,248 105,271
Pension changes in Commission's proportion 54,712 3,452 58,164
Pension differences between expected and actual experiences 149,951 9,462 159,413
Other post -employment benefits net differences between projected and actual earnings on plan investments 201,674 12,726 214,400
Total liabilities and deferred inflows of resources 1,074,738,952 676,448,395 1,751,187,347
Net position
Net investment in capital assets 529,178,100 (286,349,191) 242,828,909
Restricted for:
Bicycle and pedestrian facilities 7,565,006 7,565,006
CETAP 35,212,795 - 35,212,795
Commuter assistance 16,515,124 16,515,124
Commuter rail 53,938,592 53,938,592
Debt service 11,082,909 - 11,082,909
Highways 371,991,421 371,991,421
Local streets and roads 2,831 - 2,831
Motorist assistance 9,238,957 9,238,957
Toll operations 8,581,857 8,581,857
Planning and programming 4,935,588 - 4,935,588
Regional arterials 85,485,307 85,485,307
Transit and specialized transportation 205,433,222 205,433,222
Unrestricted (deficit) (857,485,575) (857,485,575)
Total net position $ 473,094,277 $ (277,767,334) $ 195,326,943
See notes to financial statements
17
Functions/Programs
Expenses
Primary Government
Govemmental Activities:
General government
Bicycle and pedestrian facilities
CETAP
Commuter assistance
Commuter rail
Highways
Local streets and roads
Motorist assistance
Planning and programming
Regional arterials
Transit and specialized transportation
Interest expense
Total governmental activities
Business -type Activities:
RCTC 91 Express Lanes
Total Primary Government
See notes to financial statements
Riverside County Transportation Commission
Statement of Activities
Year Ended June 30, 2018
Program Revenues
Charges for Operating Grants
Services and Contributions
Net (Expense) Revenue
and Changes In Net Position
Capital Grants Governmental Business -type
and Contributions Activities Activities
Total
$ 3,654,628 $
1,142,306
22,285,913
3,668,307
38,578,920
79,234,802
53,639,698
3,835,612
4,758,503
12,897,557
90,185,227
46421,211
358,302,684
479 $ $
11,849,882
2,992,178
254,627 4,136,406
51,629 7,239,363
4,149 4,147,112
1,743,122
13,184,879
90,682
310,884 45,363,624
49,452,297 50,446,824
$ 407,754,981 ±. 50,757,708 $ 45,363,624 $
General Revenues:
Measure A sales taxes
Transportation Development Act sales tares
Unrestricted investment earnings (loss)
Other miscellaneous revenue
Transfers
Total general revenues and transfers
Change in net position
Net position at beginning of year
Net position at end of year
$ (3,654,149) $
(1,142,306)
(10,436,031)
(676,129)
7,639,680 (24,548,207)
59,270,605 (12,673,205)
(53,639,698)
315,649
(3,015,381)
267,322
(90,094,645)
(46,421,211)
66,910,285 (245,717,891)
$ (3,654,149)
(1,142,306)
(10,436,031)
(676,129)
(24,548,207)
(12,673,205)
(53,639,698)
315,649
(3,015,381)
267,322
(90,094,545)
(46,421,211)
(245,717,891)
994,527 994,527
669, 10285� $ (245,717,8911 $ 994,527 $ (244223,3641
176,301,656 176,301,656
110,878,557 - 110,878,557
8,916,321 (32,662) 8,883,659
2,497,942 - 2,497,942
(14,949,641) 14,949,641 -
283,644,835 14,916,979 298,561,814
37,926,944 15,911,506 53,838,450
435,167,333 (293,678,840) 141,488,493
3 473,094,277 $ (277,767,3341 $ 195,3266943
18
Assets
Cash and investments
Receivables
Accounts
Advances
Interest
Due from other funds
Prepaid expenditures and other assets
Restricted investments held by trustee
Total assets
Liabilities and Fund Balances
Liabilities
Accounts payable
Due to other funds
Other liabilities
Total liabilities
Fund balances
Nonspendable-prepaid amounts
Restricted for
Bicycle and pedestrian facilities
CETAP
Commuter assistance
Commuter rail
Debt service
Highways
Local streets and roads
Motorist assistance
Planning and programming
Regional arterials
Transit and specialized transportation
Assigned
General government
Unassigned
Total fund balances
Total liabilities and fund balances
See notes to financial statements
General
$ 18,214,884
3,597,828
66,953
6,358,347
232,793
Riverside County Transportation Commission
Balance Sheet • Governmental Funds
June 30, 2018
Measure A
Western
County
Major Funds
Special Revenue
Measure A
Coachella
Valley
$ 212,501,856 $ 50,085,596
6,442,274
197,603
159,403
87,391,368
116,503
996,019
9,171,454
4,627,240
Transportation
Uniform
Mitigation
Fee
Local
Transportation
Fund
$ 93,309,795 $ 94,736,015
5,716,353
331,667
235,942
14,928,400
368,480
654,500
$ 28,470,805 $ 314,804,440 $ 56,884,876 $ 99,593,757 $ 110,687,395
$ 1,600,128 $ 35,189,953 $
654,500 1,882,614
175,683 734,571
2,430,311 37,807,138
232,793 4,627,240
16,515,124
17,537,912 32,961,630
171,446,847
958
4,932,446
42,288,115
9,157,388
3,337,343
3,979,965 $ 20,861,633 $ 213,641
836,835 317,585 37,900
4,552
4,816,800 21,183,770 251,541
50,505,144
1,316
1,561,616
35,212,795
43,197,192
•
7,565,006
102,870,848
26,040,494 276,997,302
$ 28,470,805 $ 314,804,440 $
52,068,076
56,884,876 $
78,409,987 110,435,854
99,593,757 $ 110,687,395
Riverside County Transportation Commission
Balance Sheet - Governmental Funds, Continued
June 30, 2018
Major Funds
Capital Projects
Other
Nonmajor
Commercial Debt Govem mental
Paper Bonds Service Funds Total
Assets
Cash and investments $ 295,696 $ 8,686,331 $ 5,030,583 $ 97,043,856 $ 579,904,612
Receivables
Accounts - 14,719,953 132,796,176
Advances 22,091,372 3,351,511 - - 25,559,386
Interest 6,884 387,718 22,646 349,993 2,727,963
Due from other funds 585,744 67,894 1,426,800 18,660,084
Prepaid expenditures and other assets - 4,860,033
Restricted investments held by trustee 92,066,230 6,189,083 - 98,255,313
Total assets $ 22,979,696 $ 104,559,684 $ 11,242,312 $ 113,540,602 $ 862,763,567
Liabilities and Fund Balances
Liabilities
Accounts payable $ - $ - $ 3,360,464 $ 65,205,784
Due to other funds • 9,062,890 159,403 5,413,848 18,365,575
Other liabilities 1,403,380 153,150 683,332 3,154,668
Total liabilities 1,403,380 9,216,040 159,403 9,457,644 86,726,027
Fund balances
Nonspendable-prepaid amounts 4,860,033
Restricted for
Bicycle and pedestrian facilities - - 7,565,006
CETAP - - 35,212,795
Commuter assistance - 16,515,124
Commuter rail 3,266,323 53,765,865
Debt service - 11,082,909 11,082,909
Highways 21,576,316 95,343,644 - 338,871,951
Local streets and roads - 557 2,831
Motorist assistance - 9,238,957 9,238,957
Planning and programming 3,142 4,935,588
Regional arterials - 85,485,307
Transit and specialized transportation 91,842,733 205,432,585
Assigned
General government - - 3,337,343
Unassigned (268,754) (268,754)
Total fund balances 21,576,316 95,343,644 11,082,909 104,082,958 776,037,540
Total liabilities and fund balances $ 22,979,696 $ 104,559,684 $ 11,242,312 $ 113,540,602 $ 862,763,567
See notes to financial statements
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County Transportation Commission
Reconciliation of the Balance Sheet of Govemmental Funds to the Statement of Net Position
June 30,2018
Total fund balances • Governmental funds page 19 $ 776,037,540
Amounts reported for governmental activities in the statement of net position page 16 are different because:
Amounts due from other governments are not an available resource and therefore, are not reported in the funds. 232,853
Deferred outflows of resources related to the pension contributions subsequent to the measurement date. 1,231,187
Deferred outflows of pension resources related to the differences between contributions and proportionate share of contributions, net differences between projected
and actual earnings on plan investments, differences between expected and actual experiences, changes in Commission's proportion, and changes in
assumptions. 2,884,589
Deferred inflows of pension resources related to differences between expected and actual experinces, changes in Commission's proportion, and changes in
assumptions. (303,686)
Deferred outflows of other post -employment benefits resources related to the net differences between projected and actual earnings on plan investments and
contributions subsequent to the measurement date. 799,358
Deferred inflows of resources related to net differences between projected and actual earnings on other post employment benefits investments. (201,674)
Capital assets, less related accumulated depreciation, used in governmental activities are not financial resources and therefore are not reported in the funds. 660,339,202
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unearned revenue in the funds. 902,892
Interest payable on bonds outstanding is not due and payable in the current period and therefore is not reported in the funds. (3,632,562)
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Those liabilities consist of:
Net pension liability (8,203,780)
Net other post employment liability (227,636)
Compensated absences (893,822)
Capital lease obligation (7,965)
Multi -Species Habitat Conservation Plan funding liability (6,000,000)
Sales tax bonds payable (859,020,000)
Loss on refunding of sales tax bonds 37,948,048
Premium on sales tax revenue bonds payable (128,790,267)
Net adjustment (965,195,422)
Net position of governmental activities page 16 $ 473,094,277
See notes to financial statements
22
Riverside County Transportation Commission
Statement of Revenues, Expenditures and Changes in Fund Balances • Governmental Funds
Year Ended June 30, 2018
Major Funds
General
Special Revenue
Transportation
Measure Measure Uniform Local
Western Coachella Mitigation Transportation
County Valley Fee Fund
Revenues
Sales taxes $ $ 136,852,833 $ 38,512,321 $ - $ 89,557,646
Transportation Uniform Mitigation Fee 23,699,764
Intergovernmental 5,674,843 68,412,271 1,314,998 185
Investment income 138,417 2,474,963 434,803 664,023 825,116
Other 286,647 2,515,887 25,155
Total revenues 6,099,907 210,255,954 38,947,124 25,703,940 90,382,947
Expenditures
Current:
General government 11,699 954,199 12,000
Bicycle and pedestrian facilities - 1,142,306
CETAP 1,687 22,273,742
Commuter assistance 3,647,662
Commuter rail 22,682,717 14,118,997 -
Highways 164,579,201 15,984,413
Local streets and roads 39,223,884 13,479,312
Motorist assistance - - - -
Planning and programming 3,433,172 773,000
Regional arterials - 6,158,736 - 6,729,703 -
Transitandspecializedtransportation 498,790 6,184,197 5,366,000 72,799,693
Total programs 26,626,378 234,868,563 34,829,725 29,003,445 74,726,999
Debt service:
Principal 20,974
Interest 3,884
Cost of issuance - -
Payment to escrow agent
Total debt service 24,858
Capital outlay 429,652 2,177,199
Total expenditures 27,080,888 237,045,762 34,829,725 29,003,445 74,726,999
Excess (deficiency) of revenues over (under)
expenditures (20,980,981) (26,789,808) 4,117,399 (3,299,505) 15,655,948
Other financing sources (uses):
Refunding debt issuance
Debt issuance
Premium on debt issuance
Payment to refunded bonds escrow agent - -
Transfers in 28,549,875 162,784,421 159,403 235,942 654,500
Transfers out (654,500) (80,508,265) (21,049,875)
Total other financing sources (uses) 27,895,375 82,276,156 159,403 235,942 (20,395,375)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
See notes to financial statements
6,914,394 55,486,348 4,276,802 (3,063,563) (4,739,427)
19,126,100 221,510,954 47,791,274 81,473,550 115,175,281
26,040,494 $ 276,997,302 $ 52,068,076 $ 78,409,987 $ 110,435,854
23
Riverside County Transportation Commission
Statement of Revenues, Expenditures and Changes in Fund Balances • Governmental Funds
Year Ended June 30, 2018
Major Funds
Capital Projects
Commercial
Paper
Bonds
Other
Nonmajor
Debt Govemmental
Service Funds
Total
Revenues
Sales taxes $ $ $ - $ 22,257,413 $ 287,180,213
Transportation Uniform Mitigation Fee - 23,699,764
Intergovernmental 2,785,292 10,019,422 88,207,011
Investment income 1,657,775 1,988,693 240,501 725,381 9,149,672
Other 371,794 3,199,483
Total revenues 1,657,775 1,988,693 3,025,793 33,374,010 411,436,143
Expenditures
Current:
General government - 977,898
Bicycle and pedestrian facilities - 1,142,306
CETAP - 22,275,429
Commuter assistance 3,647,662
Commuter rail 898,443 37,700,157
Highways 929,220 5,594,787 187,087,621
Local streets and roads 936,502 53,639,698
Motorist assistance - 3,825,722 3,825,722
Planning and programming 471,768 4,677,940
Regional arterials 12,888,439
Transit and specialized transportation 5,305,243 90,153,923
Total programs 929,220 17,032,465 418,016,795
Debt service:
Principal 30,000,000 - 32,120,000 62,140,974
Interest 37,485 7,526,000 43,039,543 - 50,606,912
Cost of issuance - 2,256,061 - 2,256,061
Payment to escrow agent 66,966,667 3,833,333 70,800,000
Total debt service 30,037,485 76,748,728 78,992,876 - 185,803,947
Capital outlay - 2,606,851
Total expenditures 30,037,485 77,677,948 78,992,876 17,032,465 606,427,593
Excess (deficiency) of revenues over (under)
expenditures (28,379,710) (75,689,255) (75,967,083) 16,341,545 (194,991,450)
Other financing sources (uses):
Refunding debt issuance 457,015,000 457,015,000
Debt issuance 158,760,000 158,760,000
Premium on debt issuance 119,713,807 119,713,807
Payment to refunded bonds escrow agent (471,089,840) - (471,089,840)
Transfers in 30,000,000 8,916,955 68,012,174 1,310,400 300,623,670
Transfers out (26,995,887) (166,943,091) (2,944,697) (1,310,400) (300,406,715)
Total other financing sources (uses) 3,004,113 106,372,831 65,067,477 264,615,922
Net change in fund balances (25,375,597) 30,683,576 (10,899,606) 16,341,545 69,624,472
Fund balances at beginning of year 46,951,913 64,660,068 21,982,515 87,741,413 706,413,068
Fund balances at end of year $ 21,576,316 $ 95,343,644 $ 11,082,909 $ 104 082 958 $ 776,037,540
See notes to financial statements
24
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County Transportation Commission
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2018
Net change in fund balances - Total governmental funds page 22 $ 69,624,472
Amounts reported for governmental activities in the statement of activities page 17 are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is
allocated over its estimated useful lives and reported as depreciation expense. The adjustment combines the net changes of the
following amounts:
Capital outlay 120,748,221
Net loss on sale of assets (13,278)
Depreciation expense (12,081,810)
Net adjustments 108,653,133
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (232,605)
The issuance of long-term debt (e.g., bonds) provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first
issued, whereas these amounts are deferred and amortized in the statement of activities.
The adjustment combines the net changes of the following amounts:
Principal payments for commercial paper notes 30,000,000
Principal payments for sales tax revenue refunding bonds 5,450,000
Principal payment for sales tax revenue bonds 26,670,000
Redemption of 2009 Bonds series B and C 70,800,000
Redemption of 2010 Bonds series A 37,630,000
Redemption of 2013 Bonds series A 372,445,000
Issuance of sales tax revenue bonds (158,760,000)
Issuance of sales tax revenue refunding bonds (457,015,000)
Premium on sales tax revenue bonds (119,713,807)
Write off of sales tax revenue bonds premium 19,743,316
Amortization of sales tax revenue bonds premium 8,363,510
Amortization of sales tax revenue bonds discount (35,833)
Write off sales tax revenue bonds discount (471,329)
Loss on 2017B Refunding Bonds 41,742,853
Amortization of loss on 2017E Refunding Bonds (3,794,805)
Capital lease payments 20,974
Change in accrued interest (347,171)
Change in Multi -Species Habitat Conservation Plan funding liability 3,000,000
Net pension liability (610,047)
Pension change in deferred outflows of resources (514,444)
Pension change in deferred inflows of resources 242,036
Net other post -employment benefits liability 435,857
Other post -employment benefits change in deferred outflows of resources (17,975)
Other post -employment benefits change in deferred inflows of resources (201,674)
Net adjustments (124,938,539)
The effect of transfers of capital assets between the Governmental and Business -type activities do not require the use of current
financial resources and are not reported as transfers in governmental funds. (15,166,596)
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not
reported as expenditures in governmental funds. The adjustment combines the net changes of the compensated absences. (12,921)
Change in net position of governmental activities page 17 $ 37,926,944
See notes to financial statements
26
Riverside County Transportation Commission
Statement of Net Position
Proprietary Fund
June 30, 2018
RCTC 91 Express Lanes
Enterprise Fund
Assets
Current assets:
Cash and investments $ 33,950,063
Receivables
Accounts 25,285,773
Interest 148,492
Prepaid expenses 166,966
Total current assets 59,551,294
Noncurrent assets:
Restricted investments held by trustee 29,828,745
Capital assets, net:
Nondepreciable 43,207,039
Depreciable 22,032,516
Intangible assets, net 244,045,820
Total noncurrent assets 339,114,120
Total assets 398,665,414
Deferred outflows of resources
Pension benefits
Other post -employment benefits
Total deferred outflows of resources
Total assets and deferred outflows of resources
259,714
50,442
310,156
398,975,570
Liabilities
Current liabilities:
Accounts payable 1,517,652
Interest payable 1,888,106
Due to governmental funds 294,509
Unearned revenues 23,545,891
Other liabilities 375,050
Compensated absences liability 19,156
Total current liabilities 27,640,364
Noncurrent liabilities:
Net pension liabilities 517,676
Other -post employment benefits liabilities 14,364
Compensated absences liability 35,576
Bonds payable - due in more than one year 648,503,036
Total noncurrent liabilities 649,070,652
Total liabilities 676,711,016
Deferred inflows of resources
Pension benefits
Other -post employment benefits
Total deferred inflows of resources
Total liabilities and deferred inflows of resources
19,162
12,726
31,888
676,742,904
Net position
Net investment in capital assets (286,349,191)
Restricted for toll operations 8,581,857
Total net position (deficit) $ (277,767,334)
See notes to financial statements
27
Riverside County Transportation Commission
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Fund
For the Year Ended June 30, 2018
RCTC 91 Express Lanes
Enterprise Fund
Operating revenues
Tolls, penalties, and fees $ 50,446,824
Operating expenses
Management and operational services 9,136,307
Administrative overhead 532,600
Other operating expenses 464,119
Professional services 815,345
General and administrative expenses 826,558
Depreciation and amortization 10,185,622
Total operating expenses 21,960,551
Operating income 28,486,273
Nonoperating revenues (expenses)
Investment earnings (loss) (32,662)
Interest expense (27,115,090)
Loss on sale of capital asset (376,656)
Total nonoperating revenues (expenses) (27,524,408)
Income before transfers 961,865
Transfers in from governmental activities 15,166,596
Transfers out to governmental funds (216,955)
Total Transfers 14,949,641
Change in net position 15,911,506
Net position at beginning of year (293,678,840)
Net position at end of year $ (277,767,334)
See notes to financial statements
Riverside County Transportation Commission
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2018
RCTC 91 Express Lanes
Enterprise Fund
Cash flows from operating activities
Receipts from customers and users $ 49,702,640
Payments to vendors (10,087,808)
Payments to employees (426,598)
Payments for RCTC interfund services used (345,162)
Reimbursements received for shared costs 255,756
Net cash provided by operating activities 39,098,828
Cash flows from noncapital financing activities
Transfers to governmental activities for excess investment earnings
Net cash used for capital and related financing activities
(1,344,509)
(1,344,509)
Cash flows from capital and related financing activities
Interest paid on long-term debt (7,119,938)
Acquisition of capital assets, net of reimbursements from other governments (553,487)
Deposits received related to pending sale of land 250,756
Proceeds from sale of capital assets 1,248,662
Net cash used for capital and related financing activities (6,174,007)
Cash flows from investing activities
Interest received
Net cash used for investing activities
87,051
87,051
Net increase in cash and cash equivalents 31,667,363
Cash and cash equivalents at beginning of year 32,289,383
Cash and cash equivalents at end of year
$ 63,956,746
Reconciliation of cash and cash equivalents to statement of net position
Cash and investments $ 33,950,063
Add: fair value adjustment 177,938
Restricted cash and investments
Total cash and cash equivalents
See notes to financial statements
34,128,001
29,828,745
$ 63,956,746
29
Riverside County Transportation Commission
Statement of Cash Flows, Continued
Proprietary Fund
For the Year Ended June 30, 2018
RCTC 91 Express Lanes
Enterprise Fund
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities
Operating income $ 28,486,273
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities
Depreciation and amortization expense 10,185,622
(Increase) Decrease in violations receivables (20,896,980)
(Increase) Decrease in other receivables, net (496,995)
(Increase) Decrease in prepaid assets (35,631)
Increase (Decrease) in pension and other -post employment benefits liabilities, net of deferred items 277,643
Increase (Decrease) in accounts payable 373,186
Increase (Decrease) in due to other funds 270,843
Increase (Decrease) in unearned revenue 20,896,323
Increase (Decrease) in deposits payable 50
Increase (Decrease) in compensated absences liability 38,494
Total adjustments 10,612,555
Net cash provided by operating activities $ 39,098,828
Noncash capital, financing and investing activities
Amortization of bond discount
Accreted and compounded interest
See notes to financial statements
$
73,073
19,878,293
30
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies
'•a=1
Reporting entity: The Riverside County Transportation Commission (Commission) was formed in 1976 under Division 12
(commencing with Section 130000) of the California Public Utilities Code. The Commission is a special district governed by a
34-member board of commissioners (Board) consisting of one representative from each city in the county, all five county
supervisors, and one nonvoting state representative.
The Commission provides short-range transportation planning and programming for Riverside County (County), which includes
the administration of the Local Transportation Fund (LTF) and the State Transit Assistance (STA) programs created under the
Transportation Development Act (TDA) by the State of California (State). The LTF is administered by the Commission on behalf
of the County. The purpose of this program is to allocate funds for public transportation needs, local streets and roads, bicycle
and pedestrian facilities, and multimodal transportation terminals. The STA program allocates funds for public transportation
purposes to those geographic areas with special public transportation needs, which cannot be met otherwise.
On November 8, 1988, the Commission was empowered by the voters of the County, under Ordinance No. 88-1 (1989 Measure
A), to collect a one-half of one percent sales tax for the purpose of improving the transportation system of the County. Measure
A was enacted, in part, pursuant to the provisions of Division 25 (commencing with Section 240000) of the California Public
Utilities Code and Section 7252.22 of the Revenue and Taxation Code. On November 12, 2002 Riverside County's voters
approved a 30-year renewal of Measure A under Ordinance No. 02-001 (2009 Measure A). The voter action ensured the
replacement of the 1989 Measure A program when it expired in 2009 with a new 30-year program that continues funding
transportation improvements until June 2039.
In connection with the 2009 Measure A program, the County and cities in the Western County area implemented a Transportation
Uniform Mitigation Fee (TUMF) program to fund a regional arterial system to handle the traffic demands in the Western Riverside
County (Western County) area as a result of future development. Under the 2009 Measure A program, the Commission shall
receive the first $400 million of TUMF revenues to fund the regional arterial projects and new Community Environmental
Transportation Acceptability Process (CETAP) corridors included in the 2009 Measure A Transportation Improvement Plan.
Under the Memorandum of Understanding (MOU), the majority of net revenues are allocated in equal amounts to the Commission
for regional arterial projects and to Western Riverside Council of Governments (WRCOG) for local arterial projects; a small
percentage is allocated for public transit. In September 2008, the Commission approved an amendment to the MOU whereby
the $400 million cap was lifted and the Commission will continue to receive its share of TUMF revenues indefinitely.
Accounting principles generally accepted in the United States require that the reporting entity include the primary government,
organizations for which the primary government is financially accountable, and other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial
statements to be misleading or incomplete. The basic financial statements include all funds of the Commission including those
of the Service Authority for Freeway Emergencies (SAFE), a component unit, for which the Commission is considered financially
accountable. SAFE was created under Chapter 14 (commencing with Section 2550) of Division 3 of the California Streets and
Highways Code and Sections 2421.5 and 9250.1 of the Vehicle Code. SAFE receives monies from fees levied on registered
vehicles to be used to implement and maintain an emergency motorist aid system, as specified, on portions of the California
Freeway and Expressway System in the County. The governing body of SAFE is substantially identical to that of the Commission,
and management of the Commission has operational responsibility for SAFE. SAFE is presented as a special revenue fund.
Separate financial statements are not issued for SAFE.
There are many other governmental agencies, including the County of Riverside, providing services within the area served by
the Commission. These other governmental agencies have independently elected governing boards and consequently are not
under the direction of the Commission. Financial information for these agencies is not included in the accompanying financial
statements.
31
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Basis of presentation: The Commission's basic financial statements consist of government -wide financial statements, including
a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of
financial information.
Government -wide statements: The statement of net position and the statement of activities report information on all of the
activities of the Commission. The effect of interfund activity has been removed from these statements; however, interfund
services provided and used are not eliminated in consolidation. These statements report governmental activities, which normally
are supported by taxes and intergovernmental revenues, and are reported separately from business -type activities, which rely to
a significant extent on charges and fees for services.
The statement of activities demonstrates the degree to which the program expenses of a given function are offset by program
revenues. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect
expenses. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational
or capital requirements of a particular function. Taxes and other internally dedicated resources, which are properly not included
among program revenues, are reported instead as general revenues.
Fund financial statements: The fund financial statements provide information about the Commission's governmental and
proprietary funds; the Commission has no fiduciary funds. The emphasis of fund financial statements is on major governmental
and proprietary funds, each displayed in a separate column. The Commission has categorized the Commercial Paper Capital
Projects fund and Debt Service fund as major funds for public interest reasons. The Commission believes that these judgmentally
determined major funds are particularly important to the financial statement users. All remaining governmental funds not reported
as major funds are aggregated and reported as nonmajor funds.
The Commission reports the following major governmental funds:
General Fund: The General Fund is the general operating fund of the Commission and accounts for financial resources not
required to be accounted for in another fund.
Measure A Western County Special Revenue Fund: This fund accounts for the revenues from sales taxes which are
restricted to expenditures for 1989 Measure A and 2009 Measure A Western County programs.
Measure A Coachella Valley Special Revenue Fund: This fund accounts for the revenues from sales taxes which are
restricted to expenditures for 2009 Measure A Coachella Valley programs.
Transportation Uniform Mitigation Fee Special Revenue Fund: This fund accounts for TUMF revenues, which are
restricted to expenditures for Western County regional arterial and CETAP projects.
Local Transportation Fund: This special revenue fund accounts for the one -quarter percent of the state sales tax collected
within the County under TDA for planning and programming, bicycle and pedestrian facilities, and transit operations including
the Commission's commuter rail operations.
Commercial Paper Capital Projects Fund: This fund records proceeds from the issuance of commercial paper notes and
the use of these proceeds for capital projects included in the 2009 Measure A.
Bonds Capital Projects Fund: This fund records proceeds from the issuance of sales tax and toll revenue bonds and the
use of these proceeds for capital projects included in the 2009 Measure A.
32
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Debt Service Fund: This fund accounts for the resources accumulated and payments made for principal and interest on the
sales tax and toll revenue bonds.
The Commission reports the following major proprietary fund:
RCTC 91 Express Lanes Enterprise fund: This fund accounts for toll and non -toll revenues earned on the RCTC 91
Express lanes that extend from the Riverside/Orange County line to Interstate (I) 15. These revenues are restricted to pay
operations and maintenance costs, repair and rehabilitation costs, debt service, and other in accordance with the toll bond
indenture.
Measurement focus and basis of accounting: The government -wide financial statements and proprietary fund financial
statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Toll
revenues are recognized when customers utilize the toll road facility. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the
end of the current fiscal period. Expenditures generally are recorded when a liability is incurred; however, principal and interest
expenditures on long-term debt as well as compensated absences and claims and judgments are recorded only when payment
is due. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.
Those revenues susceptible to accrual include sales taxes collected and held by the State at year-end on behalf of the
Commission, TUMF, intergovernmental revenues when all applicable eligibility requirements have been met, interest revenue,
and vehicle registration user fees, charges for services, and fines and fees.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services in connection with a proprietary funds principal and ongoing operations. The principal
operating revenues of the Commission's proprietary fund are charges for services. Operating expenses for the proprietary fund
include the cost of services, administrative expenses, and depreciation and amortization on capital and intangible assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Cash and investments: The Commission maintains cash and investments in accordance with an investment policy adopted
initially by the Board in September 1995, and most recently amended in December 2017. The investment policy complies with,
or is more restrictive than, applicable state statutes. This investment policy requires the Commission's investment program to
meet three criteria in the order of their importance: safety, liquidity, and return on investments. Investments of bond and
commercial paper proceeds as permitted by the applicable debt documents are maintained by U.S. Bank, as trustee or custodial
bank, and the earnings for each bond and commercial paper issue are accounted for separately. Cash from other Commission
revenue sources is commingled for investment purposes, with investment earnings allocated to the different funds based on
average monthly dollar balances in the funds.
The Commission's investment policy is summarized in the table below; investments held by bond trustees are governed by the
provisions of the Commission's bond indentures. Other investments permitted by the California Government Code (Code) are
permitted but only with prior Board authorization; securities that could result in zero interest accrual if held to maturity are
ineligible.
33
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Authorized investment Type
Maximum Maximum
Effective Percentage
Maturity of Portfolio
Maximum
Investment in One
Issuer
Minimum
Ratings_
United States (U.S.) Treasury obligations
Federal agency securities
State/Municipal obligations
Mortgage and asset -backed securities
Repurchase agreements
U.S. corporate debt
Commercial paper
Banker's acceptances
Money market mutual funds
Riverside County Pooled Investment Fund (RCPIF)
Local Agency Investment Fund (LAIF)
Negotiable certificates of deposit
Federally insured certificates of deposit
Collateralized certificates of deposit
Time deposits
5 years
5 years
5 years
5 years
30 days
5 years
270 days
180 days
Not applicable
Not applicable
Not applicable
180 days
1 year
1 year
5 years
None
None
25%
10%
None
25%
25%
40%
20%
None
None
15%
20%
15%
None
None
None
10%
10%
10%
10%
10%
30%
10%
Set by RCPIF
Set by LAIF
10%
10%
10%
10%
Not applicable
Not applicable
Aa3/AA-
A3/A-/A-
A
Aa3/AA-
A
Not applicable
Not applicable
Not applicable
Not applicable
P-1/A-1/F-1
Not applicable
Not applicable
Not applicable
LAIF is regulated by Code Section 16429 and is under the management of the State Treasurer with oversight provided by the
Local Agency Investment Advisory Board. Oversight of the RCPIF is conducted by the County Treasury Oversight Committee.
All investments, except for those related to bond reserve funds, are subject to a maximum maturity of five years unless specific
direction to exceed the limit is given by the Board. LTF moneys are legally required to be deposited in the RCPIF.
The RCPIF and the LAIF are carried at fair value, or the value of each participating dollar as provided by the RCPIF and LAIF,
respectively. The fair value of the Commission's position in the RCPIF and LAIF is the same as the value of the pool shares.
The pooled funds are not subject to Level 1, 2, or 3 of the fair value hierarchy prescribed by Governmental Accounting Standards
Board (GASB) Statement No. 72, Fair Value Measurement and Application. Investments in U.S. government, federal agency,
mortgage and asset -backed, municipal, corporate, and commercial paper securities are carried at fair value based on quoted
market prices. Money market mutual funds are carried at fair value based on each fund's share price.
Bank balances are secured by the pledging of a pool of eligible securities to collateralize the Commission's deposits with the
bank in accordance with the Code.
Cash and cash equivalents: For the purposes of the statement of cash flows, the Commission considers all short-term
investments with an initial maturity of three months or less to be cash equivalents. All deposits, commercial paper, money market
funds, certificates of deposit, and the share of RCIPF represent cash and cash equivalents for cash flow purposes.
Accounts receivable: Accounts receivable consist primarily of Measure A and LTF sales tax revenues from the California
Department of Tax and Fee Administration on all taxable sales within the County of Riverside, California through June 30, 2018
and an estimate for outstanding unpaid violations of the RCTC 91 Express Lanes that the Commission anticipates to collect.
Unpaid violations of $23,546,548 as of June 30, 2018 are not recognized as revenue until payment is received and therefore are
reflected as unearned revenue. Unpaid violations remain recorded for a period of four years in accordance with the statute of
limitations, at which time, they will be deemed uncollectible.
Interfund transactions: During the course of operations, numerous transactions occur between individual funds involving goods
provided or services rendered. There are also transfers of revenues from funds authorized to receive the revenue to funds
authorized to expend it. Outstanding interfund balances are reported as due from/to other funds; internal financing balances are
reported as advances to/from other funds. Any residual balances outstanding between the governmental activities and business -
type activities are reported in the government wide financial statements as "internal balances".
34
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Prepaid expenditures/expenses and other assets: Certain payments to vendors and condemnation payments with the State,
which are related primarily to the 91 Project, reflect costs applicable to future accounting periods and are recorded as prepaid
expenditures/expenses using the consumption method in both the government -wide and fund financial statements.
Restricted investments held by trustee: Restricted investments held by trustee represent unexpended bond proceeds, interest
earnings thereon, and capitalized interest and reserve amounts for bonds. Under the related bond resolutions and indentures,
any remaining bond proceeds are restricted for the use of future construction improvements to the respective projects, for debt
service, or for reserve requirements in accordance with applicable debt covenants.
Capital assets: Capital assets consisting of land and land improvements; construction in progress; construction and rail
easements; buildings; rail stations; rail tracks; office improvements; and office furniture and equipment, vehicles, toll
infrastructure, and transponders are reported in applicable governmental or business -type activities in the government -wide
financial statements. Capital assets are defined by the Commission as assets with an initial, individual cost of more than $5,000
and an estimated useful life in excess of three years and are primarily included within the function of current expenditures in the
fund financial statements. Such assets are recorded at historical costs or estimated historical costs if purchased or constructed.
Donated capital assets excluding those received in a service concession arrangement are recorded at acquisition value at the
date of donation. Donated capital assets and capital assets received in a service concession arrangement are reported at
acquisition value.
Highway construction and certain purchases of right of way property, for which title vests with the California Department of
Transportation (Caltrans), are included in highway program expenditures. Infrastructure consisting primarily of highway
construction and right of way acquisition is generally not recorded as a capital asset, because the Commission does not have
title to such assets or rights of way. However, costs related to the development of tolled express lanes are recorded as land and
land improvements and construction in progress. The costs of normal maintenance and repairs that do not add to the value of
the asset or materially extend the life of the asset are not capitalized.
Rail stations, rail tracks, temporary construction easements, buildings, office improvements, furniture and equipment, vehicles,
toll infrastructure, and transponders are depreciated using the straight-line method over the following estimated useful lives:
Asse
e
„e-
Rail stations
Rail tracks
Temporary construction easements
Buildings
Office improvements
Furniture and equipment
Vehicles
Toll infrastructure
Transponders
Useful Life
10 to 30 years
30 years
1 to 3 years
10 to 20 years
7 to 10 years
3 to 5 years
5 years
5 to 10 years
5 years
Project costs that have been incurred for the tolled express lanes projects, consisting of the 91 Project and the 1-15 Express
Lanes project, and are expected to remain the Commission's assets, are capitalized upon completion as intangible assets that
will be amortized over the life of the service concession arrangement with Caltrans. These capitalizable costs have been
accumulated in the capital assets as land and land improvements and construction in progress. The costs of the tolled express
lanes projects that are not capitalized are expensed as incurred based on management's estimation which is generally based
upon the allocation of Measure A and other funding sources, including toll -supported debt. As of June 30, 2018, the estimated
project costs incurred but not capitalized related to the 91 Project is primarily right of way, or approximately $113.5 million. All
costs related to the 1-15 Express Lanes project are considered capitalizable.
35
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Intangible assets: In May 2012 the Commission entered into a toll facility agreement with Caltrans and obtained authority to
toll the State Route (SR) 91 from the Orange/Riverside County line to 1-15. The Commission's 91 Project included the RCTC 91
Express Lanes, which opened on March 20, 2017. The toll facility is amortized over the remaining life of the toll facility agreement
through March 2067.
Compensated absences: Vacation hours accumulated and not taken at year-end is reported as a long-term liability in the
government -wide and proprietary fund financial statements.
Sick leave is recorded as an expenditure or expense when taken by the employee. Employees with continuous five years of
service have the option of being paid for sick leave accumulated in excess of 240 hours at a rate of 50% (i.e., one hour's pay for
every two hours in excess of 240). Any sick leave in excess of 240 hours is accrued at fiscal year-end, and a liability is reported
in the government -wide and proprietary fund financial statements. Sick leave that is due and payable at year-end is reported as
an expenditure and a fund liability of the General fund.
Pensions: For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions
and pension expense, information about the fiduciary net position of the Commission's California Public Employees' Retirement
System (CaIPERS) plans (Plans) and additions to/deduction from Plans' fiduciary net position have been determined on the
same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
Postemployment Benefits Other Than Pensions: For purposes of measuring the net other post -employment benefits (OPEB)
liability, deferred outflows/inflows of resources related to the OPEB liability and OPEB expense, information about the fiduciary
net position of the Commission's OPEB plan, and additions to/deductions from the OPEB fiduciary net position have been
determined on the same basis as they are reported by California Employers' Retiree Benefit Trust (CERBT) administered by
CaIPERS. For this purpose, benefit payments are recognized when due and payable in accordance with benefit terms.
Investments are reported at fair value, except for money markets and participating interest -earning investment contracts that
have a maturity at the time of purchase of one year or less, which is reported at cost.
Risk management: The Commission is exposed to various risks of loss related to workers' compensation; torts; theft of, damage
to, or destruction of assets; and errors or omissions. The Commission protects itself against such losses by a balanced program
of risk retention, risk transfers, and the purchase of commercial insurance. Loss exposures retained by the Commission are
treated as normal expenditures and include any loss contingency not covered by the Commission's purchased insurance policies.
Construction projects and rail properties are protected through a combination of commercial insurance, insurance required of
Commission consultants, and a self-insurance fund established by the Southern California Regional Rail Authority (SCRRA).
Settled claims have not exceeded insurance coverage in any of the past three fiscal years. The RCTC 91 Express Lanes
Enterprise fund has purchased commercial property insurance, including business interruption, earthquake and flood coverage
related to the RCTC 91 Express Lanes.
36
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Deferred outflows of resources: In addition to assets, the statement of net position reports a separate section for deferred
outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future
period and will not be recognized as an outflow of resources, or expenditure, until then. The Commission has nine items — loss
on refunding of bonds, changes in pension assumptions, pension contributions subsequent to measurement date, differences
between expected and actual pension experiences, differences between Commission's pension contributions and the
proportionate share of pension contributions, pension changes in Commission's proportion, net differences between projected
and actual earnings on pension plan investments, net differences between projected and actual earnings on OPEB plan
investments, and OPEB contributions subsequent to measurement date — which qualify for reporting in this category in the
applicable column for governmental and business -type activities on the statement of net position.
Deferred inflows of resources: In addition to liabilities, the statement of net position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future
period and will not be recognized as an inflow of resources, or revenue, until then. The Commission has four items — changes
in pension assumptions, pension changes in Commission's proportion, and differences between actual and expected pension
experience, and net differences between projected and actual earnings on OPEB plan investments — which qualify for reporting
in this category in the applicable governmental and business -type activities on the statement of net position.
Fund equity: In the fund financial statements, the governmental funds report fund balances in various categories based on the
nature of any limitations requiring the use of the resources for specific purposes:
Nonspendable fund balances cannot be spent, because they are in nonspendable form such as prepaid expenditures or are
required to be maintained intact.
Restricted fund balances are restricted for specific purposes by third parties or enabling legislation.
Committed fund balances include amounts that can be used only for specific purposes determined by adoption of a resolution
of the Board. These committed amounts cannot be used for any other purpose unless the Commission removes or changes
the specified use through the same type of formal action taken to establish the commitment.
Assigned fund balances comprise amounts intended to be used by the Commission for specific purposes but are not
restricted or committed. The Board delegates the authority to assign amounts to be used for specific purposes to the Chief
Financial Officer. Assignments generally only exist temporarily; an additional action does not have to be taken for the removal
of an assignment.
Unassigned fund balance is residual positive net resources of the General Fund in excess of what can properly be classified
in one of the other four categories. In all other governmental funds, it is the negative residual fund balance of any other
governmental fund that cannot be eliminated by offsetting assigned fund balance amounts.
When both restricted and unrestricted resources are available for an incurred expenditure, it is the Commission's policy to spend
restricted resources first and then unrestricted resources, as necessary. When unrestricted resources are available for an
incurred expenditure, it is the Commission's policy to use committed amounts first, followed by assigned amounts, and then
unassigned amounts. In June 2012, the Commission adopted a resolution to establish a policy on reporting and classifying fund
balance in the General fund.
37
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Summary of Significant Accounting Policies, Continued
Net position: In the government -wide and proprietary fund financial statements, net position represents the difference between
assets and deferred outflows of resources and liabilities and deferred inflows and is classified into three categories:
Net investment in capital assets consists of capital and intangible assets, net of accumulated depreciation and amortization,
reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets
and excludes unspent debt proceeds.
Restricted —net position represents restricted assets less liabilities and deferred inflows of resources related to those
assets. Restricted assets are recorded when there are limitations imposed by creditors (such as through debt covenants),
contributions, or laws and regulations of other governments or constraints imposed by law through constitutional provisions
or through enabling legislation.
Unrestricted —(deficit) represents the amount of unrestricted resources that will need to be provided for in future periods.
When both restricted and unrestricted resources are available for use, it is the Commission's policy to use restricted --net position
resources first and then unrestricted —net position resources, as they are needed.
Administration expenditures: The Commission's staff and resources are used in the performance of its responsibilities relating
to the activities of the Commission and its component unit. Accordingly, the Commission allocates salaries and benefits to each
applicable fund on the basis of actual hours spent by activity, and other indirect overhead is allocated based on a systematic
basis. Administrative salaries and benefits of $1,591,110 allocated to Measure A in 2018 were less than 1% of revenues and in
compliance with the law.
Use of estimates: The preparation of the financial statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures
during the reporting period. As such, actual results could differ from those estimates.
Note 2. Cash and Investments
Cash and investments at June 30, 2018 consist of the following:
Unrestricted Restricted
Cash Investments Total Investments Total
Cash in bank
Petty cash
RCPIF
Operations pooled investments
LAIF
Investments with fiscal agents
Total cash and investments
$ 14,901,566 $
1,018
$ 14,901,566
1,018
544,244,040 544,244,040
50, 998, 641 50, 998, 641
3,709,410 3,709,410
128,084,058
14,901,566
1,018
544,244,040
50,998,641
3,709,410
128,084,058
$14,902,584 $ 598,952,091 $ 613,854,675 $ 128,084,058 $ 741,938,733
38
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments, Continued
Total cash and investments are reported in the following funds:
Unrestricted cash and investments
Governmental funds
Enterprise fund
Subtotal
Restricted cash and investments
Governmental funds
Enterprise fund
Subtotal
Total cash and investments
$ 579,904,612
33,950,063
613,854,675
98,255,313
29,828,745
128,084,058
$ 741,938,733
Restricted investments at June 30, 2018 represent investments held by bond trustees for project costs and debt service.
Fair Value Hierarchy: The Commission categorizes its fair
generally accepted accounting principles. The hierarchy is
assets. Level 1 inputs are quoted prices in an active market
inputs; and Level 3 inputs are significant unobservable inputs
3 inputs).
value measurements within the fair value hierarchy established by
based on the valuation inputs used to measure fair value of the
for identical assets; Level 2 inputs are significant other observable
(the Commission does not value any of its investments using Level
The following is a summary of the fair value hierarchy of the fair value of investments of the Commission as of June 30, 2018:
Investments by fair value level:
June 30, 2018
Fair Value Measurements Using
Quoted Prices in
Active Markets Significant Other
for Identical Observable
Assets (Level 1) Inputs (Level 2)
Investments subject to fair value hierarchy:
U.S. Treasury obligations
U.S. agency securities
Commercial paper
Corporate notes
Money market mutual funds
Mortgage and asset -backed securities
Municipal bonds
Total investments measured at fair value
Investments not subject to fair value hierarchy:
LAIF
RCPIF
Total investments
$ 51,547,232
9,944,354
7,473,190
44,280,037
19,072,093
37,481,816
9,283,977
179,082,699
3,709,410
544,244,040
$ 727,036,149
$ 32,592,124 $ 18,955,108
9,944,354
7,473,190
44,280,037
19,072,093
37,481,816
— 9,283,977
$ 32,592,124 $ 146,490,575
Investments classified in Level 1 of the value hierarchy, valued at $32,592,124 are valued using quoted prices in active markets.
39
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments, Continued
U.S. Treasury obligations totaling $18,955,108, U.S. agency securities totaling $9,944,354, commercial paper totaling
$7,473,190, corporate notes totaling $44,280,037, money market funds totaling $19,072,093, mortgage and asset -backed
securities totaling $37,481,816, and municipal bonds totaling $9,283,977 in 2018, classified in Level 2 of the fair value hierarchy,
are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based
on the securities' relationship to benchmark quoted prices. Fair value is defined as the quoted market value on the last trading
day of the period. These prices are obtained from various pricing sources by the custodian bank.
As of June 30, 2018, the Commission had the following investments:
Investments
Fair Value
Principal
interest Rate
Range
Weighted
Average
Maturity
Maturity Range (Year)
Unrestricted:
RCPIF
LAIF
Operations pooled
investments:
Corporate notes
Money market mutual funds
Mortgage and asset -backed
securities
Municipal bonds
U.S. agency securities
U.S. Treasury obligations
Total unrestricted investments
$ 544,244,040
3,709,410
12,701,450
247,009
4,906,830
6,764,433
7,423,811
18,955,108
$ 547,259,829
3,716,371
12,805,765
247,010
4,953,431
6,829,081
7,464,044
19,090,007
$ 598,952,091
$ 602,365,538
0.726% — 3.1 %
1.07% —1.90%
07/01/18 - 06/29/23
193 days
1.319% - 8.108% 01 /15/19 - 03/03/22
0.000%-1.502% N/A
1.169% - 3.519% 09/25/18 - 04/07/22
1.053% - 6.050% 11/01/18 - 03/01/22
0.889% - 2.914% 06/27/19 - 09/06/22
1.267% - 2.635% 08/31 /19 - 05/15/21
Unrestricted investment portfolio weighted average
1.173
193 days or
0.529
1.871
35 days or
0.096
2.742
1.688
2.176
1.665
1.493
Investments
Fair Value
Principal
interest Rate
Range
Weighted
Average
Maturity
Maturity Range (Year)
Restricted:
Commercial paper
Corporate notes
Money market mutual funds
Mortgage and asset -backed
securities
Municipal bonds
U.S. agency securities
U.S. Treasury obligations
Total restricted investments
$ 7,473,190
31,578,587
18,825,084
32, 574, 986
2,519,546
2,520,541
32,592,124
$ 7,472,766
31,843,060
18,825,084
32,889,884
2,529,175
2,550,714
32, 870,190
$ 128,084,058
$ 128,980,873
0.000%—1.753% 07/02/18 — 07/13/18
2.493% — 3.405% 07/15/18 — 06/11 /21
0.000%—1.480% N/A
-3.395% — 5.963% 07/06/18 — 09/16/55
1.800% — 2.862% 08/01/18—11/15/52
1.095% — 2.767% 07/02/18 — 01/13/22
0.613% — 2.809% 07/05/18 — 01/15/27
Restricted investment portfolio weighted average
0.017
2.334
35 days or
0.096
7.378
23.966
0.912
4.231
5.548
40
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments, Continued
The weighted average maturity is calculated using the investment's effective duration weighted by the investment's fair value.
As of June 30, 2018, mortgage and asset -backed securities totaled $37,481,816. The underlying assets are consumer
receivables that include credit cards, auto/equipment, and home loans. The securities have a fixed interest rate and are rated
AAA/Aaa by at least two of the three nationally recognized statistical rating organizations, except for $16,592,399 which is rated
AA+ by S&P.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the
Commission's investment policy follows the Code as it relates to limits on investment maturities as a means of managing
exposure to fair value losses arising from increasing interest rates. In accordance with the Commission's investment policy,
restricted investments are invested in accordance with the maturity provisions of the specific bond indenture, which may extend
beyond five years.
Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The Commission's investment policy requires that a third party bank trust
department hold all securities owned by the Commission. All trades are settled on a delivery versus payment basis through the
Commission's safekeeping agent.
The Commission has deposits with a bank balance of $16,066,000 with a financial institution; bank balances over $5,000,000
are swept daily into a money market account. Of the bank balance, up to $250,000 is federally insured under the Federal
Depository Insurance Corporation with balances in excess of $250,000 collateralized in accordance with the Code; however, the
collateralized securities are not held in the name of the Commission.
Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum acceptable credit ratings
for investments from any of the three nationally recognized statistical rating organizations. The following is a summary of the
credit quality distribution and concentration of credit risk by investment type as a percentage of each category's fair value at June
30, 2018; securities denoted as NR are not rated by one of the nationally recognized statistical rating organizations.
RCPIF
LAIF
Commercial paper
Various
Various
Various
Various
Corporate
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Mood 's S&P
Aaa-of
NR
P-1
P-2
P-1
P-2
AAAVS1
NR
A-1
A-1
A-2
A-2
% of Po"
i,•rlE+
74.86%
0.51 %
0.53%
0.19%
0.19%
0.11%
Al A 0.53%
A2 A 0.59%
A3 A 0.37%
Baal A 0.21 %
Baal A 0.21
A2 A- 0.23%
A3 A- 0.67%
Baal A- 0.15%
Al A+ 0.31
AA2 A+ 0.14%
AA3 A+ 0.33%
Al AA 0.14%
AA2 AA 0.14%
41
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments, Continued
Investments
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Money market mutual funds
Funds
Funds
Mortgage and asset -backed securities
Securities
Securities
Securities
Securities
Securities
Securities
Securities
Municipal bonds
Alameda County AA1 AA 0.07%
California State University AA2 AA- 0.02%
Colorado Housing and Finance Authority Aaa AAA 0.01%
City of Franklin Aa2 NR 0.05%
Greater Orlando Aviation Authority AA3 AA- 0.10%
Inland Valley California Development Agency Successor NR AA 0.03%
Los Angeles Community College District Aa1 NR 0.11%
Los Angeles County AA2 AA 0.01%
Los Angeles County Department of Airports AA3 AA 0.03%
Los Angeles County Redevelopment AA3 AA 0.04%
Maine State Housing Authority Aa1 AA+ 0.01%
North Dakota Housing Finance Agency Aa1 NR 0.01%
Pasadena Unified School District AA3 A+ 0.03%
Sacramento Suburban Water District NR AA+ 0.02%
San Diego Public Facilities Financing Authority NR AA- 0.10%
San Francisco Bay Area Rapid Transit District NR AA+ 0.01%
San Francisco Redevelopment Agency NR AA- 0.04%
San Jose Redevelopment Agency NR AA 0.07%
San Marcos Redevelopment Agency NR AA- 0.01%
State of California AA1 AA 0.01%
State of California AA3 AA- 0.19%
State of California High Speed Passenger Train AA3 AA- 0.05%
State of Mississippi AA2 AA 0.01%
State of Texas AAA AAA 0.03%
State of New York AA1 AA+ 0.10%
The Port Authority of New York and New Jersey AA3 AA- 0.03%
University of California AA2 AA 0.05%
University of California AA3 AA- 0.03%
Wisconsin Housing and Economic Development Authority Aa2 AA 0.01%
U.S. agency notes
Notes 1.37%
U.S. Treasuries
Treasury 7.09%
Moody's S&P
AA3
Al
AA2
AA3
AA1
AAA
AAA
A3
Baal
Aaa
AA
AA-
AA-
AA -
AA+
AA+
AAA
BBB+
BBB+
NR
of Portfolio.
0.06%
0.44%
0.35%
0.02%
0.13%
0.07%
0.10%
0.46%
0.21 %
0.23%
Aaa AAAm 2.59%
NR NR 0.03%
Aaa AA+ 2.28%
AAA AAA 0.98%
NR AAA 0.17/0
NR AAA 0.80%
AAA NR 0.70%
NR NR 0.07%
P-1 NR 0.16%
Total 100.00%
42
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments, Continued
Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount of investment holdings
with any one non-U.S. Government or non-federal agency issuer. As of June 30, 2018, the Commission did not have investments
in any one issuer that represent more than 5% of the Commission's total investments.
Note 3. Advances
The Commission has approved interest -bearing advances to other governments, which may be funded by debt proceeds, to the
cities of Blythe, Canyon Lake, and Indio and the Coachella Valley Association of Governments (CVAG) in the amounts of
$1,500,000, $600,000, $4,000,000, and $43,300,000, respectively. The cities have pledged their share of 2009 Measure A local
streets and roads revenues, and CVAG has pledged its share of 2009 Measure A highway and regional road revenue allocations
in accordance with repayment terms specified in each agreement for actual advances. Repayment amounts are withheld from
revenue allocations on a monthly basis. The final maturities of the cities of Blythe and Indio advances are due on or before
September 1, 2019; the final maturity of the city of Canyon Lake advance is due on or before December 1, 2019; and the final
maturities of the CVAG advances are due on or before September 1, 2029. Interest rates range from .910% to 7.307%, excluding
the portion of cash subsidy payments (as discussed in Note 7) that may be received by CVAG to reduce its repayment obligations.
The available advances to CVAG are $0 as of June 30, 2018.
The outstanding interest -bearing advances, including capitalized interest of $902,990, as of June 30, 2018 were as follows:
City of Blythe $ 266,395
City of Canyon Lake 116,503
City of Indio 759,430
Coachella Valley Associated Governments 24,417,058
Total interest -bearing advances receivable $ 25,559,386
43
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 4, Capital Assets
Capital assets activity for the year ended June 30, 2018 was as follows:
Governmental activities
Balance
June 30, 2017
Balance
Additions Deletions Transfers June 30, 2018
Capital assets not being depreciated:
Land and land improvements
Construction in progress
Rail operating easements
Construction easements
Total capital assets not being depreciated
Capital assets being depreciated:
Rail stations
Rail tracks
Construction easements
Buildings
Office improvements
Office furniture, equipment and vehicles
Total capital assets being depreciated
Less accumulated depreciation for:
Rail stations
Rail tracks
Construction easements
Buildings
Office improvements
Office furniture, equipment and vehicles
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
$ 162,102,279
58,061,858
63,846,199
1,167,671
285,178,007
$ 10,151,213
99,752,154
22,000
109,925,367
191,036,556 1,216,597
145,159,852 9,384,019
980,670
3,315,135
94,332
1,602,427
342,188,972
(53,106,668)
(5,031,971)
(917,305)
(27,627)
(85,949)
(1,344,794)
(60,514,314)
281,674,658
211,179
166,384
10,978,179
(6,489,540)
(5,170,440)
(63,365) —
(187,236) —
(14,008)
(157,221) 26,129
(12,081,810) 26,129
(1,103,631)
$ (168,603) $ — $ 172,084,889
- (15,166,596) 142,647,416
— — 63,846,199
1,189,671
(168,603) (15,166,596) 379,768,175
(26,129)
(26,129)
192,253,153
154,543,871
— 980,670
— 3,315,135
— 305,511
— 1,742,682
- 353,141,022
- (59,596,208)
— (10,202,411)
— (980,670)
(214,863)
(99,957)
— (1,475,886)
- (72,569,995)
- 280,571,027
$ 566,852,665 $108,821,736 $ (168,603) $ (15,166,596) $ 660,339,202
Business-t pe activities
Balance
June 30, 2017
Balance
Additions Deletions Transfers June 30, 2018
Capital assets not being depreciated:
Land and land improvements
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Toll infrastructure
Transponders
Buildings
Office furniture, equipment and vehicles
Total capital assets being depreciated
Less accumulated depreciation for:
Toll infrastructure
Transponders
Buildings
Office furniture, equipment and vehicles
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
$ 44,658,207 $
44,658,207
27,408,768
122,506
686,813
18,428
— $ (1,625,319) $
174,151
174,151 (1,625,319)
331,313
7,032
- $ 43,032,888
— 174,151
43,207,039
(2) 491,230 27,899,996
— — 453,819
— — 686,813
— — 25,460
28,236,515
(1,337,706)
(12,763)
(202,004)
(512)
(1,552,985)
26,683,530
$ 71,341,737
338,345 (2) 491,230 29,066,088
(5,350,824)
(80,875)
(40,401)
(8,487)
(5,480,587)
(5,142,242)
$ (4,968,091)
(2)
$ (1,625,321) $
491,230
491,230
(6,688,530)
(93,638)
(242,405)
(8,999)
(7,033,572)
22,032,516
$ 65,239,555
44
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 4. Capital Assets, Continued
Depreciation expense was charged to functions/programs of the Commission's governmental and business -type activities during
the year ended June 30, 2018 as follows:
Governmental activities:
General government $ 166,611
Commuter rail 11,664,598
Highway 250,601
Total depreciation expense — governmental activities $ 12,081,810
Business -type activities:
RCTC 91 Express Lanes
Total depreciation expense — business -type activities
Note 5. Intangible Assets and Service Concession Arrangements
$ 5,480,587
$ 5,480,587
On May 14, 2012, the Commission entered into a toll facilities agreement with Caltrans providing the Commission with
authorization to toll the SR-91 from Orange/Riverside County line to 1-15 for 50 years commencing as of the first day on which
the RCTC 91 Express Lanes open for public use and toll operations. The agreement also set forth the Commission's leasehold
rights to Caltrans' right of way and Caltrans' oversight role in the operations and maintenance of the RCTC 91 Express Lanes.
Intangible asset activity for the year ended June 30, 2018 was as follows:
Toll facility franchise
Less accumulated amortization
Total toll facility franchise, net
Balance
June 30, 2017
$235,251,748
(1,176,259)
$234,075,489
Additions
(4,705,035)
$ (4,705,035)
Transfers
$ 14,675,366
$ 14,675,366
Balance
June 30, 2018
$ 249,927,114
(5,881,294)
$ 244,045,820
45
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 6. Interfund Transactions
Due from/to other funds: The composition of balances related to due from other funds and due to other funds at June 30, 2018
is as follows:
Receivable Fund
Payable Fund
Amount
Explanation
General funa
General fund
General fund
General fund
General fund
General fund
General fund
General fund
General fund
General fund
General fund
General fund
Measure A Western County
Special Revenue fund
Measure A Western County
Special Revenue fund
Measure A Coachella Valley
Special Revenue fund
Transportation Uniform
Mitigation Fee Special
Revenue fund
Local Transportation Fund
Commercial Paper Capital
Projects fund
Commercial Paper Capital
Projects fund
Bonds Capital Projects fund
Nonmajor Governmental funds
Nonmajor Governmental funds
Nonmajor Governmental funds
Transportation Uniform Mitigation
Fee Special Revenue fund
Measure A Western County
Special Revenue fund
Measure A Coachella Valley
Special Revenue fund
RCTC 91 Express Lanes
Enterprise fund
Local Transportation Fund
Transportation Uniform Mitigation
Fee Special Revenue fund
Measure A Western County
Special Revenue fund
Measure A Coachella Valley
Special Revenue fund
RCTC 91 Express Lanes
Enterprise fund
Nonmajor Governmental funds
Bonds Capital Projects fund
Measure A Coachella Valley
Special Revenue fund
Debt Service fund
Measure A Western County
Special Revenue fund
General fund
Nonmajor Governmental funds
Measure A Coachella Valley
Special Revenue fund
Measure A Coachella Valley
Special Revenue fund
Nonmajor Governmental funds
68,348
Fringe benefits allocation
290,900 Administrative cost allocation
277,900 Administrative cost allocation
1,152,301 Administrative cost allocation
113,700 Administrative cost allocation
211,100 Administrative cost allocation
37,900 Administrative cost allocation
39,685 Fringe benefits allocation
494,371
301
83,409
3,588,432
9,062,890
108,564
159,403
235,942
654,500
39,368
546,376
67,894
1,426,800
Total due from/to other funds $ 18,660,084
Fringe benefits allocation
Fringe benefits allocation
Fringe benefits allocation
Cash deficit
Highway project costs allocations
Local streets and roads payment
correction
Advance loan payment adjustment
Regional arterial project costs allocations
Administrative cost allocation
reconciliation
Advance loan payment adjustment
Advance loan payment adjustment
Advance loan payment adjustment
Call box program augmentation of freeway
service patrol operations
46
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 6, Interfund Transactions, Continued
Interfund transfers: Durin
Transfers Out
General fund
Measure A Western County
Special Revenue fund
Measure A Western County
Special Revenue fund
Measure A Western County
Special Revenue fund
Measure A Western County
Special Revenue fund
Local Transportation Fund
Commercial Paper Capital
Projects fund
Commercial Paper Capital
Projects fund
Bonds Capital Projects fund
Bonds Capital Projects fund
Bonds Capital Projects fund
Bonds Capital Projects fund
2018, interfund transfers were as follows:
Debt Service fund
Debt Service fund
Nonmajor Governmental funds
Nonmajor Governmental funds
RCTC 91 Express Lanes
Enterprise fund
Total transfers
Transfers In
Local Transportation Fund
General fund
Transportation Uniform
Mitigation Fee Special
Revenue fund
Debt Service fund
Bonds Capital Projects fund
General fund
Debt Service fund
Measure A Western County
Special Revenue fund
Measure A Western County
Special Revenue fund
Measure A Western County
Special Revenue fund
Commercial Paper Capital
Projects fund
Debt Service fund
Measure A Western County
Special Revenue fund
Measure A Coachella Valley
Special Revenue fund
Nonmajor Governmental
funds
Nonmajor Governmental
funds
Bonds Capital Projects fund
Amount
Explanation
$ 654,500 Administrative cost allocation reconciliation
7,500,000 Commuter rail costs allocations
235,942 Highway project costs allocations
64,072,323 Debt service funding related to highway projects for
Western County and to advance agreements for
Western County jurisdictions
8,700,000 TIFIA ramp -up for 1-15 Express Lanes project
21,049,875
3,530,610
23,465,277
135,083,914
1,449,936
30,000,000
409,241
2,785,294
159,403
226,800
Administration, planning and programming,
commuter rail operating and station maintenance,
and grade separation costs allocations
Debt service related to advance agreements for
Coachella Valley and Palo Verde Valley
jurisdictions
Highway project costs allocations
Highway project costs allocations
Cost of issuance related to the 2017A Sales Tax
Bonds and 2017B and 2018 Refunding Bonds
Transfer of bond proceeds for retirement of
outstanding commercial paper notes
Debt service related to advance agreements for
Coachella Valley and Palo Verde Valley
jurisdictions
Cash subsidies available after debt service payment
Share of cash subsidy related to CVAG advance
agreement
Coachella Valley commuter rail costs allocations
1,083,600 Call box program augmentation of freeway service
patrol operations
216,955 Excess interest earnings
$ 300,623,670
In connection with the substantial completion of the 91 Project in March 2017 and the commencement of toll operations on the
RCTC 91 Express Lanes, the Commission transferred $15,166,596 of capital and intangible costs from the governmental
activities to the RCTC 91 Express Lanes Enterprise fund.
47
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations
The following is a summary of the changes in long-term obligations for the year ended June 30, 2018:
Governmental activities
Balance Additions t
June 30, 2017 Accretion
Reductions
Balance
June 30, 2018
Due Within
One Year
Sales tax revenue bonds:
2009 Bonds
2010 Bonds
2013 Bonds
2016 Refunding Bonds
2017 Bonds, series A
2017 Refunding Bonds, series B
2018 Refunding Bonds
Commercial Paper
Total bonds payable
Sales tax revenue bonds discount
Sales tax revenue bonds premium
Total bonds payable, net
MSHCP funding liability
Capital lease
Compensated absences liability
Total long-term obligations
$ 70,800,000 $
150,000,000
462,200,000
73,240,000
-- 158,760,000
392,730,000
64,285,000
30,000,000
786,240,000
(507,162)
37,183,286
822,916,124
9,000,000
28,939
880,901
$ 832,825,964
615,775,000
119,713,807
735,488,807
36,623
$ 735,525,430
$ (70,800,000)
(37,630,000)
(395,405,000)
(4,705,000)
(3,710,000)
(745,000)
(30,000,000)
(542,995,000)
507,162
(28,106, 826)
(570,594,664)
(3,000,000)
(20,974)
(23,702)
$ (573,639,340)
112,370,000
66,795,000
68,535,000
155,050,000
392,730,000
63,540,000
859,020,000
128,790,267
987,810,267
6,000,000
7,965
893,822
$ 994,712,054
12,090,000
4,940,000
4,470,000
4,465,000
25,965,000
11,841,860
37,806,860
3,000,000
7,967
332,237
$ 41,147,064
Business -type activities
Balance
June 30, 2017
Additions 1
Accretion
Reductions
Balance
June 30, 2018
Due Within
One Year
Toll revenue bonds:
2013 Bonds
Toll revenue bonds discount
Total bonds payable, net
TIFIA loan
Compensated absences liability
Total long-term obligations
$ 192,070,770
(2,147,519)
189,923,251
$ 4,525,846 $
4,525,846
73,073
73,073
$ 196,596,616 $
(2,074,446)
194,522,170
438,628,419 15,352,447 — 453,980,866
16,238 109,110
(70,616) 54,732
19,156
$ 628,567,908 $ 19,987,403 $ 2,457 $ 648,557,768 $ 19,156
48
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
The Commission has pledged a portion of future sales tax revenues through maturities of the bonds to repay $859,020,000 in
sales tax revenue bonds payable issued in November 2010 (2010 Bonds), July 2013 (2013 Sales Tax Bonds), September 2016
(2016 Refunding Bonds), July 2017 (2017A Sales Tax Bonds), December 2017 (2017B Refunding Bonds), and March 2018
(2018 Refunding Bonds) outstanding at June 30, 2018 plus related interest. The bonds are payable solely from the 2009 Measure
A sales tax revenues on a senior and subordinate lien basis, respectively. Annual principal and interest payments on the bonds,
are expected to require less than 38% of 2009 Measure A revenues. For the current year, interest paid on the bonds and
commercial paper notes was $43,039,543 and $37,485, respectively. Cash subsidies of $2,785,292 related to the bonds were
received from the U.S. Treasury during the current year and were recorded as intergovernmental revenues.
The toll revenue bonds issued in July 2013 (2013 Toll Bonds) are secured by a senior lien on the trust estate, which consists
primarily of toll revenues and account revenues less operating and maintenance expenses of the RCTC 91 Express Lanes, which
opened in March 2017. The Commission also executed a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan
agreement for up to $421,054,409 in July 2013 secured on a subordinate basis to the 2013 Toll Bonds, except in the case of any
bankruptcy related event, as defined in the toll indenture and TIFIA loan agreement, when the TIFIA loan automatically becomes
a senior lien obligation. The TIFIA loan is evidenced by a toll revenue bond issued pursuant to the toll bond indentures; the
amount outstanding under the TIFIA loan at June 30, 2018 is $453,980,866, including compounded interest of $32,926,457.
Additionally, the Commission executed a TIFIA loan agreement for up to $152,214,260 in July 2017 as a senior toll revenue bond
on the trust estate, which consists primarily of toll revenues and account revenues less operating and maintenance expenses of
the 1-15 Express Lanes, which are expected to open in 2020. No amounts are outstanding under the TIFIA loan at June 30,
2018.
Sales tax revenue bonds payable: Under the provisions of the 2009 Measure A, as amended by Measure K approved by the
voters in November 2010, the Commission has the authority to issue bonds subject to a bond debt limitation of $975,000,000.
The following is a summary of bonds issued and secured by 2009 Measure A revenues that are outstanding at June 30, 2018:
2010 Sales Tax Revenue Bonds (I:United Tax Bonds), Series R; (Taxable Build America Bands): Outstanding
In November 2010, the Commission issued sales tax revenue bonds consisting of the $37,630,000 Series A (2010A
Bonds) and $112,370,000 Series B (2010B Bonds), for a total issuance of $150,000,000 (collectively, the 2010 Bonds).
For the Series B Build America Bonds (BABs), $44,800,000 was designated as recovery zone economic development
bonds (RZEDBs). A portion of the 2010 Bonds was used to retire $103,284,000 of the outstanding commercial paper
notes with the remaining proceeds used to fund 2009 Measure A Western County and Coachella Valley capital projects
and pay costs of issuance for the 2010 Bonds. In December 2017, the 2010A Bonds were refunded. The remaining
2010E Bonds mature in annual installments ranging from $530,000 to $17,980,000 on various dates from June 1, 2032
to June 1, 2039 at an interest rate of 6.807%. The Commission expects, but is not guaranteed, to receive a cash subsidy
from the U.S. Treasury equal to 35% of the interest payable on the BABs or 45% of the interest payable on the 2010B
Bonds additionally designated as RZEDBs.
$ 112,370,000
During 2018 the cash subsidy related to the 2010 Bonds that was received from the U.S. Treasury was approximately $2,785,300,
or $196,800 less than the amount anticipated. The subsidy reduction resulted from federal sequestration cuts of 6.6% for federal
fiscal year ended September 30, 2018. The federal sequestration cuts may continue for an unknown duration.
49
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
In accordance with the bond maturity schedule, and assuming no subsidy reduction, annual debt service requirements to maturity
for the 2010B Bonds payable throughout the term of the bonds are as follows:
Year Ending June 30
2019
2020
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039
Principal
14,540,000
79,850,000
17,980,000
$ 112,370,000
interest
7,649,000
7,649,000
7,649,000
7,649,000
7,649,000
38,245,200
38,209,100
22,887,500
1,223,900
$ 138,810,700
Total
7,649,000
7,649,000
7,649,000
7,649,000
7,649,000
38,245,200
52,749,100
102,737,500
19,203,900
$ 251,180,700
Subsidy
(2,982,100)
(2,982,100)
(2,982,100)
(2,982,100)
(2,982,100)
(14,910,500)
(14,897,900)
(9,470,700)
(551,200)
$ (54,740,800)
Total, net
4,666,900
4,666,900
4,666,900
4,666,900
4,666,900
23,334,700
37,851,200
93,266,800
18,652,700
$ 196,439,900
2013 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt): Outstanding
In July 2013, the Commission issued $462,200,000 principal amount of serial bonds at a premium of $38,328,775 to
retire all, or $60,000,000, of the outstanding principal amount of commercial paper notes, fund a portion of the 91
Project costs, pay capitalized interest during construction, and pay cost of issuance. In December 2017, the
Commission refunded the callable portion of the outstanding 2013 Sales Tax Bonds. The remaining 2013 Sales Tax
Bonds mature in annual installments ranging from $12,090,000 to $14,695,000 on various dates from June 1, 2019
through June 1, 2023 at an interest rate of 5.00%.
$ 66,795,000
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Sales Tax Bonds
payable throughout the term of the bonds are as follows:
Year Endin • June 30 Principal Interest -- Total
2019
2020
2021
2022
2023
12,090,000
12,690,000
13,325,000
13,995,000
14,695,000
$ 3,339,800
2,735,300
2,100,800
1,434,500
734,600
15,429,800
15,425,300
15,425,800
15,429,500
15,429,600
$ 66,795,000 $ 10,345,000 $ 77,140,000
2016 Sales Tax Revenue Refunding Bonds (Limited Tax Bonds), Series A (Tax-exempt): Outstanding
In October 2016, the Commission issued sales tax revenue bonds of $76,140,000. A portion of the 2016 Refunding
Bonds was used to refund all of the outstanding Series A bonds issues in 2009, retire all of the outstanding commercial
paper notes, finance a termination payment in connection with an interest rate swap agreement with Deutsche Bank
AG (Deutsche Bank), and pay costs of issuance. The outstanding 2016 Refunding Bonds mature in annual
installments ranging from $4,940,000 to $7,305,000 on various dates from June 1, 2019 through June 1, 2029 at
interest rates ranging from 2.00% to 5.00%.
$ 68,535,000
50
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7, Long-term Obligations, Continued
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2016 Refunding Bonds
payable throughout the term of the bonds are as follows:
• Year Ending June 30 Principal Interest Total
2019
2020
2021
2022
2023
2024-2028
2029
4,940,000
5,185, 000
5,445,000
5,720,000
6,005,000
33,935,000
7,305,000
$ 2,513,100
2,266,100
2,006,900
1,734,600
1,448,600
3,335,200
146,100
7,453,100
7,451,100
7,451, 900
7,454,600
7,453,600
37, 270, 200
7,451,100
$ 68,535,000 $ 13,450,600 $ 81,985,600
2017 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A {Tax-exem Outstandin
In July 2017, the Commission issued sales tax revenue bonds of $158,760,000 at a premium of $28,931,909 to fund
a portion of the 1-15 Express Lanes project and complete the 91 Project. The outstanding 2017A Bonds mature in
annual installments ranging from $4,470,000 to $11,440,000 on various dates from June 1, 2019 to June 1, 2039 at
interest rates ranging from 3.00% to 5.00%. $ 155,050,000
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2017A Sales Tax Bonds
payable throughout the term of the bonds are as follows:
Year Endin. June 30 Principal Interest Total -
2019
2020
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
4,470,000
4,690,000
4,835,000
5,075,000
5,280,000
30,620,000
39,050,000
49,590,000
11,440, 000
$ 7,545,500
7,322,000
7,181,300
6,939,600
6,736,600
29,450,100
21,022,800
10,477,100
572,000
$ 12,015,500
12,012,000
12,016,300
12,014,600
12,016,600
60,070,100
60,072,800
60,067,100
12,012,000
$ 155,050,000 $ 97,247,000 $ 252,297,000
In connection with the issuance of the 2017A Sales Tax Bonds, the Commission provided for the establishment of an 1-15 Trust
Fund for deposits of sales tax revenues as required by the toll indenture for the 1-15 Express Lanes project.
2017 Sales Tax Revenue Refunding Bonds (Limited Tax Bonds), Series B (Tax-exempt): Outstanding
In December 2017, the Commission issued sales tax revenue bonds of $392,730,000 at a premium of $80,058,109
to refund all of the outstanding 2010A Bonds and refund a portion of the 2013 Sales Tax Bonds. The 2017E Refunding
Bonds mature in annual installments ranging from $15,045,000 to $30,980,000 on various dates from June 1, 2024
to June 1, 2039 at interest rates ranging from 4.00% to 5.00%. $ 392,730,000
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2017B Refunding Bonds
payable throughout the term of the bonds are as follows:
51
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
Year Endin . June 30 Principal
Interest Total
2019
2020
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
83,140,000
143, 745, 000
134,865,000
30,980,000
$ 19,366,400
19,366,400
19,366,400
19, 366, 300
19, 366, 300
88,923,000
62,225,000
27,783,300
1,549,000
19,366,400
19,366,400
19,366,400
19,366,300
19,366,300
172,063,000
205,970,000
162,648,300
32,529,000
$ 392,730,000 $277,312,100
$ 670,042,100
The refunding was undertaken to advance refund all of the outstanding 2010A Bonds and the callable portion of the outstanding
2013 Sales Tax Bonds in the amounts of $37,630,000 and $372,445,000, respectively, and reduce future debt service payments.
The reacquisition price exceeded the net carrying amount of the old debt by approximately $41,742,900. This amount is reflected
as a deferred outflow of resources and amortized over the life of the old debt, which is the same as the 2017B Refunding Bonds
obligation. At June 30, 2018, the unamortized deferred amount on refunding was $37,948,048. The transaction also resulted in
an economic gain (difference between the present values of the debt service payments on the old debt and the new debt) of
approximately $39,936,000 and a reduction in future debt payments of approximately $52,013,000.
2018 Sates Tax Revenue Refunding Bonds (Limited Tax Bonds), Series A (Tax-exempt): Outstanding
In April 2018, the Commission issued sales tax revenue bonds of $64,285,000 at a premium of $10,723,789 to refund
all of the outstanding Series B and Series C bonds issued in 2009 and finance a termination payment in connection
with an interest rate swap agreement with Bank of America. The outstanding 2018 Refunding Bonds mature in annual
installments ranging from $4,465,000 to $7,290,000 on various dates from June 1, 2019 through June 1, 2029 at
interest rates ranging from 4.00% to 5.00%.
$ 63,540,000
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2018 Refunding Bonds
payable throughout the term of the bonds are as follows:
Year Ending June 30
Principal
Interest Total
2019
2020
2021
2022
2023
2024-2028
2029-2033
4,465,000
4,680,000
4,890,000
5,205,000
5,425,000
31,585,000
7,290,000
$ 3,177,000
2,953,800
2,719,800
2,475,200
2,215,000
6,713,700
364,500
7,642,000
7,633,800
7,609,800
7,680,200
7,640,000
38,298,700
7,654,500
$ 63,540,000
$ 20,619,000 $
84,159,000
This refunding was undertaken to eliminate certain risks associated with managing the Commission's variable rate debt. The
transaction resulted in a decrease in future debt payments of approximately $802,000 and an economic gain of approximately
$746,000 (difference between the present value of the debt service payments on the old debt and the new debt). The
reacquisition price and the net carrying amount of the old debt were the same.
52
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
Toll revenue bonds payable: In July 2010, the Commission authorized the issuance and sale of not to exceed $900 million of
toll revenue bonds related to the 91 Project. In May 2017, the Commission authorized the issuance and sale of not to exceed
$165,000,000 of toll revenue bonds, including a TIFIA loan related to the 1-15 Express Lanes project.
2013 Toll Revenue Bonds, Series A (Current Interest Obligation):
Outstanding
In July 2013, the Commission issued $123,825,000 principal amount of serial current interest bonds (CIBs) at a discount
of $2,433,315 to fund a portion of the 91 Project, pay capitalized interest during construction, fund a debt service
reserve fund, fund an initial amount for an operations and maintenance fund, and pay costs of issuance. The CIBs
consist of a serial bond maturing on June 1, 2044 in the amount of $39,315,000 at an interest rate of 5.75% and a term
bond due on June 1, 2048 in the amount of $84,510,000 with annual sinking funds payments of $42,255,000 on June
1, 2047 and June 1, 2048 at an interest rate of 5.75%.
$ 123,825,000
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CIBs
payable throughout the term of the bonds are as follows:
Year Ending June 30
2019
2020
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
2044-2048
Principal interest
123,825,000
7,11
7,119, 900
7,119, 900
7,119, 900
7,119, 900
35,599,700
35,599,700
35,599,700
35,599,700
24,127,700
Total
9,900 $ 7,119,900
7,119,900
7,119,900
7,119,900
7,119,900
35,599,700
35,599,700
35,599,700
35,599,700
147,952,700
$ 123,825,000 $
202,126,000
$ 325,951,000
2013 Toll Revenue Bonds, Series B (Capital Appreciation Obligation):
In July 2013, the Commission issued $52,829,600 principal amount of serial capital appreciation bonds (CABs) to
fund a portion of the 91 Project, pay capitalized interest during construction, fund a debt service reserve fund, fund
an initial amount for an operations and maintenance fund, and pay costs of issuance. The CABs will not pay current
interest as interest will be compounded commencing December 2013 semiannually and paid at maturity. Therefore,
the CABs will increase in value, or accrete, by the accumulation of such compounded interest from its initial principal
amount to the maturity value in installments ranging from $3,440,000 to $34,220,000 on various dates from June 1,
2022 through June 1, 2043. Interest rates and yield to maturity range from 5.30% to 7.15%. During 2018, the accretion
amount was $4,525,846.
Outstanding
$ 72,771,616
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CABs
payable throughout the term of the bonds are as follows:
Year Ending June 30
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
Princi al Accreted Interest
Total
$ 2,396,700
3,098,000
18,364,800
15,215,000
1,963,300
11,791,800
$ 52,829,600
$ 1,423,300
2,231,900
22,490,300
34,850,000
6,196,700
78,458,200
$ 145,650,400
$ 3,820,000
5,329,900
40,855,100
50,065,000
8,160,000
90,250,000
$ 198,480,000
53
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
2013 TIFIA Loan A! reement — 91 Project::
Outstanding
In July 2013, the Commission executed a TIFIA loan of up to $421,054,409, which proceeds financed a portion of the
costs for the 91 Project. During construction and for a period of up to five years following substantial completion,
interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires mandatory debt service payments
at a minimum and scheduled debt service payments to the extent additional funds are available. TIFIA debt service
payments are expected to commence on December 1, 2021, which is five years after substantial completion of the 91
Project, through June 1, 2051. The interest rate of the TIFIA loan is 3.47%.
$ 453,980,866
The TIFIA loan is a toll revenue bond that is subordinate to the senior toll revenue bonds per the 91 Project indenture.
In accordance with the TIFIA loan maturity schedule, the approximate annual mandatory debt service requirements to maturity
for the TIFIA loan payable throughout the term of the loan are as follows:
Mandatory
Year ending June 30 Principal Interest Total
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
2044-2048
2049-2051
Total
Future compounded interest
Total TIFIA loan
— $
1,921,000
— 1,921,000
23,604,000
200,000 73,743,000
97,548,000 81,787,000
99,208,000 61,359,000
177,427,000 41,287,000
128,955,000 6,519,000
503,338,000 $ 292,141,000 $
(49,357,100)
$ 453,980,900
1,921,000
1,921,000
23,604,000
73,943,000
179,335,000
160,567,000
218,714,000
135,474,000
795,479,000
Pursuant to the 91 Project toll indenture and TIFIA loan agreement, the Commission deposited with the trustee $136,451,515
through 2017 into an equity account for payment of 91 Project costs.
In connection with the issuance of the 2013 Toll Bonds consisting of the CIBs and CABs, a debt service reserve of $17,665,460
and an operations and maintenance fund of $3,137,666 were established. Additionally, the toll indenture and TIFIA loan
agreement require the Commission to establish a subordinate obligations reserve fund of $20,000,000 with Measure A sales tax
revenues no later than July 1, 2019, to the extent that the proceeds from the sales of excess right of way acquired by the
Commission in connection with the 91 Project are insufficient.
2017 TIFIA loan A reement -1.15 Express Lanes:
Outstanding
In July 2017, the Commission executed a TIFIA loan of up to $152,214,260, which proceeds will finance a portion of
the costs for the 1-15 Express Lanes project. During construction and for a period of up to five years following
substantial completion, interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires mandatory
debt service payments at a minimum and scheduled debt service payments to the extent additional funds are available,
TIFIA debt service payments are expected to commence on June 1, 2025, which is five years after substantial
completion of the 1-15 Express Lanes project, through June 1, 2053. The interest rate of the TIFIA loan is 2.84%.
During 2018, there were no draws on the TIFIA loan.
The TIFIA loan is a senior toll revenue bond per the 1-15 Express Lanes project indenture.
54
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
Pursuant to the 1-15 Express Lanes project toll indenture, the Commission will establish the following to support the 1-15 Express
Lanes:
• A $16.5 million ramp -up reserve prior to substantial completion and commencement of express lanes operations
anticipated in 2020;
• An $18 million TIFIA loan reserve from an initial loan of Measure A sales tax revenues up to $3 million per year from
2019 through 2024 to the extent that 1-15 Express Lanes revenues are not sufficient to fund the TIFIA loan reserve; and
• Up to a $38.5 million backstop loan from Measure A sales tax revenues of up to $3.85 million per year to the extent I-
15 Express Lanes revenues are not sufficient to cover operations and maintenance costs, TIFIA loan mandatory debt
service, and TIFIA scheduled interest.
Commercial paper notes payable: In February 2005, the Commission authorized the issuance of tax-exempt commercial paper
notes in an amount not to exceed $200,000,000 for the primary purpose of financing right of way and mitigation land acquisition
and project development costs of capital projects under the 2009 Measure A. The Commission reduced the authorization to
$60,000,000 in September 2013. As of June 30, 2018, $0 was outstanding in commercial paper notes.
The source of revenue to repay the commercial paper notes and any subsequent long-term debt refinancing is the 2009 Measure
A sales tax. Interest is payable on the respective maturity dates of the commercial paper notes, which is up to 270 days from the
date of issuance. The maximum allowable interest rate on the commercial paper notes is 12%.
As a requirement for the issuance of the commercial paper notes, the Commission entered into a $60,750,000 irrevocable direct
draw letter of credit and reimbursement agreement with State Street Bank and Trust Company (State Street) as credit and
liquidity support for the commercial paper notes through October 2019. The commitment fees paid to State Street were $241,368
in 2018.
Funds are drawn under the letter of credit to pay debt service on the commercial paper notes, and the Commission is required
to reimburse the bank for such drawings. Amounts drawn on the letter of credit and not reimbursed within 30 days are not due
until five years after the date of such draw. Accordingly, the commercial paper notes are classified as long-term liabilities in the
Commission's government -wide financial statements. There were no unreimbursed draws by the Commission on the remaining
letter of credit during the year ended June 30, 2018; nor were there any amounts outstanding under the remaining letter of credit
agreement at June 30, 2018.
The Commission's commercial paper program functions similar to bond anticipation notes for reporting purposes, as the
commercial paper notes are issued and retired with long-term debt issuances. Commercial paper notes are classified as long-
term debt as long as the Commission's letter of credit facility extends at least one year past its fiscal year end; otherwise, the
commercial paper notes are classified as a fund liability.
Capital lease obligation: The Commission has entered into a lease agreement for financing the acquisition of office equipment.
This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value
of its future minimum lease payments. The office equipment book value of $78,606 is recorded as a capital asset in the
governmental activities. Total future minimum lease obligations and the net present value of these minimum lease payments as
of June 30, 2018 are as follows:
Total minimum lease payments 8,298
Less amount representing interest (333)
Present value of minimum lease payments $ 7,965
55
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 7. Long-term Obligations, Continued
Interest rate swaps: As a means to achieve a greater level of interest rate stability, specifically rising interest rates that would
negatively impact cash flows, the Commission entered into two forward -starting interest rate swaps in August 2006 for a total
original notional amount of $185,000,000 whereby it swapped obligations to pay fixed rates for those that pay a floating rate. The
swaps were part of a synthetic fixed rate financing with the Commission's 2009 Bonds. The floating rate receipts under the swaps
corresponded to the floating rate payments on the 2009 Bonds. The fixed rate payment remained for the Commission as its
primary interest obligation.
The counterparty for the first swap ($100,000,000 original notional amount) was Bank of America, N.A. (Bank of America), and
the counterparty for the second swap ($85,000,000 original notional amount) was Deutsche Bank. Under the swap agreements
which became effective on October 1, 2009, the Commission paid Bank of America and Deutsche Bank (Counterparties or each
a Counterparty) a fixed rate of 3.679% and 3.206%, respectively, for twenty years, the term of the 2009 Bonds; the Counterparties
paid the Commission a floating rate equal to 67% of the one -month London Interbank Offer Rate (LIBOR).
In September 2016, the Commission terminated the swap with Deutsche Bank and paid a termination payment of $10,292,000.
In March 2018, the Commission terminated the swap with Bank of America and paid a termination payment of $7,526,000.
Arbitrage rebate: The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt
bonds and commercial paper notes after August 31, 1986. In general, arbitrage regulations deal with the investment of all tax-
exempt bond and commercial paper note proceeds at an interest yield greater than the interest yield paid to bondholders or
noteholders. Failure to follow the arbitrage regulations could result in all interest paid to bondholders or noteholders retroactively
rendered taxable. In accordance with the arbitrage regulations, if excess earnings were calculated, 90% of the amount calculated
would be due to the Internal Revenue Service at the end of each five-year period. The remaining 10% would be recorded as a
liability and paid after all bonds had been redeemed. During the current year, the Commission performed calculations of excess
investment earnings on all bond and commercial paper financings. There was no arbitrage liability at June 30, 2018.
MSHCP funding liability: Under the 2009 Measure A, the Commission is required to provide $153,000,000 of Measure A funding
under the Western County MSHCP. Through the current year, the Commission has fulfilled approximately $147,000,000 of the
funding requirement. In March 2012, the Commission authorized a $24,000,000 commitment to the Western Riverside County
Regional Conservation Authority (RCA) to provide funding for its remaining obligation to the MSHCP for its covered activities.
Under the terms of the agreement, the commitment will be paid over eight years at $3,000,000 per year through December 2019.
However, if, within the first two years of the agreement, the RCA received a federal loan guarantee related to the MSHCP or its
revenues have returned to 2005 levels, the Commission may modify its commitment. The Commission did not modify its
commitment within the first two-year period, and, accordingly, the remaining liability of $6,000,000 is recorded as a liability in the
government -wide financial statements.
Note 8. Net Position and Fund Balances
Net position: Net investment in capital assets of $242,828,909, as reported on the statement of net position, represents capital
and intangible assets, net of accumulated depreciation and amortization, of $969,624,577 less the related debt of $726,795,668.
The related debt includes the portion of the sales tax revenue and toll revenue bonds that was used for the development of tolled
express lane capital assets.
Net investment in Ca ital Assets
Capital assets, net
Less: related debt
Total
Governmental Activities
660,339,202
(131,161,102)
$ 529,178,100
Bus ness-Type Activities
309,285,375
(595,634,566)
969,624,577
(726,795,668)
$ (286,349,191) $ 242,828,909
Additionally, the statement of net position reports $809,983,609 of restricted net position, of which $485,734,398 is restricted by
enabling legislation.
56
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 8. Net Position and Fund Balances, Continued
Fund balances:
Measure A: Measure A sales tax revenues are allocated to the three defined geographic areas of Riverside County, consisting
of Western County, Coachella Valley, and Palo Verde Valley in proportion to the funds generated within those areas. Revenues
must then be allocated to the programs of the geographic areas according to percentages as defined by Measure A and are
legally restricted for applicable program expenditures. Bond and commercial paper note proceeds are allocated to the geographic
areas based on the estimated uses. Accordingly, the related fund balances are classified as follows:
Highways: Funds are to be used for project costs including engineering, right of way acquisitions, and construction of the
Western County highways and Coachella Valley highways and regional arterials. Funds for new corridors are to be used for
environmental clearance, right of way acquisition, and construction of four new Western County transportation corridors
identified through CETAP. In order to attract commercial and industrial development and jobs in the Western County, funds
are expended to create an infrastructure improvement bank to improve and construct interchanges, provide public transit
linkages or stations, and make other improvements to the transportation system. Funds are also provided to support bond
financing costs. These program funds are intended to supplement existing federal, state, and local resources. Coachella Valley
highway and regional arterial funds are matched by TUMF revenues generated in the Coachella Valley. Accordingly, funds for
highways, Coachella Valley regional arterials, new corridors, economic development, and bond financing are reflected as
restricted for these specific purposes as stipulated by the 1989 Measure A and 2009 Measure A.
Commuter rail: Funds for rail operations and to match federal funds for capital are restricted as stipulated by the 2009 Measure
A Western County public transit program. Certain state revenues are restricted for the planning and development of the new
Coachella Valley/San Gorgonio Pass corridor rail service.
Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system,
as defined by WRCOG.
Local streets and roads: Funds to be expended by local jurisdictions for the construction, repair, and maintenance of local
streets and roads are reflected as restricted as stipulated by the 2009 Measure A. The County and local cities are required to
supplement those expenditures with other previously dedicated revenue sources to maintain road improvements. Monies are
disbursed to the jurisdictions which comply with the requirements to maintain the same level of funding for streets and roads
as existed prior to the passage of the 2009 Measure A and participate in TUMF (as applicable in the Western County and
Coachella Valley areas) and the MSHCP in Western County and which annually submit a five-year capital improvement plan.
Commuter assistance and transit: Funds for public transit are used to promote and subsidize commuter assistance programs
such as ridesharing and telecommuting and specialized transportation to guarantee reduced transit fares, expand existing
transit services, and implement new transit services for seniors and persons with disabilities. These funds are restricted as
stipulated by the 2009 Measure A. Funds for intercity bus services in Western County and bus replacement and more frequent
service in the Coachella Valley are restricted as stipulated by the 2009 Measure A.
Debt service: Certain bond proceeds that have been used to make required sinking fund payments in the Debt Service fund
as required by the bond agreements are classified as restricted. Amounts held by the trustee equal to the maximum annual
debt service are recorded in the Debt Service fund as restricted.
Transportation Development Act: Restricted fund balance for the LTF represents the apportionments related to transit
programs by geographic area, bicycle and pedestrian facilities, and planning and programming services and unapportioned
revenues. Restricted fund balance for the STA and State of Good Repair represents the apportionments for transit by geographic
area. The TDA restrictions at June 30, 2018 are as follows:
57
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 8. Net Position and Fund Balances, Continued
Local
Transportation State Transit State of Good
Fund Assistance Repair
Total
Bicycle and pedestrian facilities
Transit and specialized transportation
Western County:
Bus transit:
$ 7,565,006
$ 7,565,006
City of Banning — 324,506 2,328 326,834
City of Beaumont 4,221 1,693,431 19,122 1,716,774
City of Corona — 1,301,586 4,848 1,306,434
City of Riverside — 255,690 3,995 259,685
Riverside Transit Agency 3,126,866 6,093,543 159,505 9,379,914
Apportioned and unallocated 65,373,121 39,907,169 1,967,334 107,247,624
Commuter rail:
Commission 2,000,000 197,812 2,197,812
Apportioned and unallocated 11,985,261 22,298,020 554,889 34,838,170
Total Western County 82,489,469 71,873,945 2,909,833 157,273,247
Coachella Valley:
SunLine Transit Agency 82,138 14,094,513 141,155 14,317,806
Commuter Rail — (30,809) — (30,809)
Apportioned and unallocated 10,649,567 2,051,934 612,966 13,314,467
Total Coachella Valley 10,731,705 16,115,638 754,121 27,601,464
Palo Verde Valley:
Palo Verde Valley Transit Agency — 49,069 1,208 50,277
Apportioned and unallocated for transit and
local streets and roads 1,133,716 104,689 34,230 1,272,635
Total Palo Verde Valley 1,133,716 153,758 35,438 1,322,912
Unapportioned funds
8,515,958 8,515,958
Total transit and specialized transportation $ 110,435,854 $ 88,143,341 $ 3,699,392 $ 202,278,587
Commuter rail: Restricted fund balance in the General fund represents TDA monies to be used for commuter rail operations
and capital.
Transportation Uniform Mitigation Fee: TUMF revenues to be received by the Commission are to be used for new CETAP
corridors and the regional arterial system in Western County and are restricted as follows:
CETAP: Funds for the development of new transportation corridors are used to provide congestion relief and mobility within
the County and between the County and its neighboring Orange and San Bernardino counties. Funds will be matched by
revenues of $370 million generated from the 2009 Measure A.
Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system.
Funds will be matched by revenues of $300 million generated from the 2009 Measure A.
Prepaid amounts: Prepaid amounts are reported as nonspendable fund balance as they are in nonspendable form.
Motorist assistance: Funds in the Service Authority for Freeway Emergencies and Freeway Service Patrol Special Revenue
funds, which are reported as nonmajor governmental funds, of $740,055 and $8,498,902, respectively, to assist motorists on
County roads are restricted as stipulated by the State.
58
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 8. Net Position and Fund Balances, Continued
General government: Funds allocated by Measure A, TUMF, LTF, motorist assistance, STA, Coachella Valley Rail, and SB 132
programs to the General Fund have been assigned by the Commission for general government administration.
RCTC 91 Express Lanes: Restricted net position for toll operations consists of net toll revenues from toll operations in the
RCTC 91 Express Lanes Enterprise fund in accordance with the toll bond indenture.
Unassigned: A nonmajor governmental fund reported a negative unassigned fund balance of $268,754.
Note 9. Commitments and Contingencies
Operating lease: The Commission has entered into an operating lease agreement for office facilities. The term of the lease, as
amended, is for a period of 10 years expiring in October 2027. Rental expenditures for the fiscal year ended June 30, 2018 were
approximately $423,700.
2019 $ 541,454
2020 557,698
2021 574,429
2022 591,662
2023 609,412
2024-2027 2,626,037
Total minimum rental commitment $ 5,500,692
Real property and project agreements: The Commission has entered into other agreements in the ordinary course of business
with companies and other governmental agencies for the acquisition of real property as well as the engineering and construction
of certain highway and commuter rail projects. These agreements, which are significant, are funded with available and future
revenues and debt proceeds.
Litigation: Certain claims involving disputed construction costs and property acquisition costs, including goodwill claims, have
arisen in the ordinary course of business. Additionally, the Commission is a defendant in lawsuits. Although the outcome of these
matters is not presently determinable, management does not expect that the resolution of these matters will have a material
adverse impact on the financial condition of the Commission.
Note 10. Joint Agreements
Joint ventures: The Commission is one of five members of the SCRRA, an independent joint powers authority created in June
1992. The SCRRA's board consists of one member from the Ventura County Transportation Commission; two each from the
Orange County Transportation Authority (OCTA), the San Bernardino Associated Governments, and the Commission; and four
members from the Los Angeles County Metropolitan Transportation Authority. The SCRRA is responsible for implementing and
operating a regional commuter rail system (Metrolink) in five southern California counties. As a member of SCRRA, the
Commission makes capital and operating contributions for its pro rata share of rail lines servicing the County. The Commission
expended $15,405,400 and $3,313,388 during 2018 for its share of Metrolink operating and capital costs, respectively. As of
June 30, 2018, cumulative capital contributions were $51,181,486. Other funds for rail service are contributed to the SCRRA by
the State from state rail bonds on behalf of the Commission. Separate financial statements are prepared by and available from
the SCRRA, which is located at One Gateway Plaza, 12th Floor, Los Angeles, California 90012.
59
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 10. Joint Agreements, Continued
In May 2013 the Commission became a full voting member of the Los Angeles —San Diego —San Luis Obispo (LOSSAN) Rail
Corridor Agency with the intent to have greater involvement in regional rail issues because of its legal ownership rights regarding
passenger rail service between Fullerton and Los Angeles. The LOSSAN Rail Corridor Agency is a locally governed joint powers
authority comprised of 13 agencies created to oversee the intercity passenger rail service in the travel corridor between San
Diego and San Luis Obispo County. The Commission's share of administration costs is subject to future negotiations; however,
during 2018 the Commission contributed $0 for administration efforts.
Riverside Orange Corridor Authority cooperative agreement: In May 2006 the Commission entered into a cooperative
agreement, Riverside Orange Corridor Authority, with OCTA and the Transportation Corridor Agencies to jointly exercise the
common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor, which have been
completed. The Commission was the recipient and administering entity of federal and state funds as necessary to accomplish
this work, and the three agencies shared in meeting the local agency matching requirements. As of June 30, 2018, the
Commission was not required to make any contributions.
RCTC 91 Express Lanes cooperative agreements: The RCTC 91 Express Lanes are jointly operated with the existing OCTA
91 Express Lanes and collectively referred to as the 91 Express Lanes.
Under the Orange -Riverside Cooperative Agreement, which was entered into in December 2011, the Commission and OCTA
agreed on the use of the same initial toll operator, cost and revenue sharing, toll policies, business rules, interoperability of
technology, and marketing activities as well as OCTA review of design plans and construction activities for the 91 Project.
In May 2013 the Commission entered into a three -party agreement with OCTA and Cofiroute USA, LLC (Cofiroute), as the
operator, for the operations of the 91 Express Lanes. This will ensure a streamlined and consistent intercounty travel for motorists
on the OCTA 91 Express Lanes in Orange County and RCTC 91 Express Lanes in Riverside County. Cofiroute provides
operating services in the annual amount of $6,942,600 plus inflation for three initial years with two one-year extension options,
subject to Board of Commissioners approval. Cofiroute is responsible for the day-to-day operations of the toll facility. The
agreement with Cofiroute expires on June 30, 2021.
Note 11. Employees' Pension Plans
General Information about the CaIPERS Pension Plan: The Commission contracts with the CaIPERS to provide its employees
retirement as well as death and retirement disability benefits, which are paid by the CaIPERS under a cost sharing multiple -
employer plan. CaIPERS issues publicly available reports that include a full description of the pension plan regarding benefit
provisions, assumptions and membership information that can be obtained from its executive office located at 400 P Street,
Sacramento, California 95814, or by visiting the CaIPERS website at www.calpers.ca.gov. All permanent Commission
employees are eligible to participate in the Miscellaneous Employee Pension Plan, cost -sharing multiple employer defined benefit
pension plan administered by CaIPERS. Benefit provisions under the Plan are established by State statute and Commission
resolution.
60
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 11. Employees' Pension Plans, Continued
Benefits Provided — CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service,
equal to one year of full time employment. Employees hired prior to January 1, 2013 and attaining the age of 55 with five years
of credited California service (service) are eligible for normal retirement and are entitled to a monthly benefit of 2.7% of their final
compensation for each year of service. Final compensation is defined as the highest annual salary earned. Retirement may begin
at age 50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Employees hired on or after January
1, 2013 who are not "classic" members and attaining the age of 62 with five years of credited service are eligible for normal
retirement and are entitled to a monthly benefit of 2% of their three-year final compensation for each year of service. Retirement
may begin at age 52 with a reduced benefit rate. Upon separation from the plan prior to retirement, members' accumulated
contributions are refundable with interest credited through the date of separation. All members are eligible for non -duty disability
benefits after 10 years of service. The pre -retirement death benefit is one of the following: the 1957 Survivor Benefit — level 3
or the Optional Settlement 2W Death Benefit. The post -retirement death benefit is one of the following: lump sum or survivor
allowance. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
The Plan provisions and benefits in effect at June 30, 2018, are summarized as follows:
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required Commission contribution rates
Miscellaneous
Prior to January 1, 2013 On or after January 1, 2013
2.7% @ 55
5 years of service
Monthly for life
50 — 55
2.0% to 2.7/0
8%
14.053%
2% @ 62
5 years of service
Monthly for life
52 — 62
1.0% to 2.0%
7.25%
7.262%
Contributions — Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution
rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following
notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by
CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability. The Commission is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2018, the contributions recognized as part of pension expense for the Plan were as follows:
Miscellaneous
Contributions — Commission
Contributions — Employee
1,308,877
440,294
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions:
As of June 30, 2018, the Commission reported a net pension liability for its proportionate shares of the net pension liability of the
Plan as follows:
Proportionate Share of Net Pension Liability =
Miscellaneous $ 8,721,456
61
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 11. Employees' Pension Plans, Continued
The Commission's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net
pension liability of the Plan is measured as of June 30, 2017, and the total pension liability for the Plan used to calculate the net
pension liability was determined by an actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard
update procedures. The Commission's proportion of the net pension liability was based on a projection of the Commission's
long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially
determined. The Commission's proportionate share of the net pension liability for the Plan as of June 30, 2016 and 2017 is as
follows:
11111 )11 1 d
Proportion — June 30, 2016
Proportion — June 30, 2017
Change — Increase (Decrease)
0.08829%
0.08794%
(0.00035%)
For the year ended June 30, 2018, the Commission recognized pension expense of $2,489,767. At June 30, 2018, the
Commission reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 1,308,877
Differences between actual and expected experiences 11,127
Changes in assumptions 1,380,582
Differences between contributions and the proportionate share of contributions 487,589
Changes in Commission's proportion 875,084
Net differences between projected and actual earnings on plan investments 312,231
159,413
105,271
58,164
Total $ 4,375,490 $ 322,848
The $1,308,877 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ending June 30, 2018. Other amounts reported as deferred
outflows of resources and deferred (inflows) of resources related to pensions will be recognized as pension expense as follows:
d' g June 30
2019
2020
2021
2022
$ 1,106,312
1,121,208
701,623
(185,378)
$ 2,743,765
Actuarial Assumptions — The total pension liability in the June 30, 2016 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry -Age Normal Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Projected Salary Increase
Investment Rate of Return
Mortality
Miscellaneous.
7,15%
2.75%
Varies by entry age and service
7.15% net of pension plan investment and administrative expenses, includes
inflation
Derived using CaIPERS' membership data for all funds
62
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 11. Employees' Pension Plans, Continued
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation were based on
the results of a January 2016 actuarial experience study for the period 1998 to 2012. Further details of the experience study can
be found on the CaIPERS website.
Discount Rate — The discount rate used to measure the total pension liability was 7.15% for the Plan compared to 7.65% in
2017 due to a decrease in the long-term expected rate of return. To determine whether the municipal bond rate should be used
in the calculation of a discount rate for each plan, CaIPERS stress tested plans that would most likely result in a discount rate
that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of
assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not
necessary. The long-term expected rate of 7.15% will be applied to all plans in the Public Employees Retirement Fund. The
stress test results are presented in a detailed report that can be obtained from the CaIPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net pension plan investment expense and inflation) are
developed for each major asset class. The long-term expected rate of return was 7.15% for the Plan compared to 7.50% in
2017.
In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return
expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected
compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block
approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated
for each fund. The expected rate of return was set by calculating the single equivalent expected rate that arrived at the same
present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of
return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of
one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the
capital market assumptions applied to determine the discount rate as asset allocation. These rates of return are net of
administrative expenses.
Asset Class
Current Target Real Return Real Return
Allocation Years 1-10,(a) Years 11+ (b)
Global Equity
Global Debt Securities
Inflation Sensitive
Private Equity
Real Estate
Infrastructure and Forestland
Liquidity
Total
47.0%
19.0%
6.0%
12,0%
11.0%
3.0%
2.0%
100%
(a) An expected inflation rate of 2.5% used for this period.
(b) An expected inflation rate of 3.0% used for this period.
4.90%
0.80%
0.60%
6.60%
2.80%
3.90%
(0.40%)
5.38%
2.27%
1.39%
6.63%
5.21 %
5.36%
(0.90%)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate — The following
presents the Commission's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the
Plan, as well as what the Commission's proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1 % below or 1 % higher than the current rate:
63
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 11. Employees' Pension Plans, Continued
Miscellaneous
1 % Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1 % Increase
Net Pension Liability
6.15%
$13, 272, 247
7.15%
$8,721,456
8.15%
$4,952,408
Pension Plan Fiduciary Net Position — Detailed information about the pension
separately issued CaIPERS financial reports.
Payable to the Pension Plan — At June 30, 2018, the Commission reported a
contributions to the pension plan required for the year ended June 30, 2018.
plan's fiduciary net position is available in the
payable of $0 for the outstanding amount of
401(a) plan: The Commission offers its employees a 401(a) single -employer defined contribution plan referred to as the Money
Purchase Plan & Trust (Plan), which covers all permanent full-time employees. Employees are fully vested in the Plan after five
years. The Plan, which is administered by the International City/County Management Association (ICMA), requires the
Commission to make a contribution of 7.5% of the employees' earnings for the Plan year. Fiduciary responsibility and reporting
of the Plan assets rests with ICMA. The Commission has the authority to amend the contribution requirements. Total payroll for
covered employees for the current year was $5,653,205. The Commission's contributions to the Plan were $420,746 for the year
ended June 30, 2018.
Note 12. Post -employment Benefits Other Than Pensions (OPEB)
Plan description — The Commission's OPEB plan through the CERBT, is a single -employer defined benefit plan for eligible
retirees and their dependents. CERBT issues a publicly available financial report that can be obtained from its executive office
or its website.
Benefits provided — The Commission provides post -employment health benefits for eligible retirees and their dependents at
retirement. For employees hired on or after January 1, 2007, retirees must have a minimum of 10 years of PERS service and no
less than five years of Commission service in order to receive post -employment health benefits in accordance with PERS as per
Government Code Section 22893. For employees hired prior to January 1, 2007, retirees are not required to meet the eligibility
criteria and may receive post -employment health benefits at the monthly health benefit rate paid for active employees, which is
currently at $600. The Commission's contributions toward premiums for retiree health insurance are coordinated with Medicare
and other benefits provided by federal and state law, when available, to the extent it reduces the cost of insurance premiums.
Employees covered by benefit terms at June 30, 2018 are as follows:
Inactive employees or beneficiaries currently receiving benefit payments
Inactive employees entitled to but not yet receiving benefit payments
Active employees
Total
16
0
47
63
Contributions — The contribution requirements of plan members are established and may be amended by the Commission. The
Commission has adopted a policy to fund 100% of the actuarially determined amount. For the year ended June 30, 2018, the
Commission's average contribution rate was 12.4% of covered -employee payroll. Employees are not required to contribute to
the plan.
64
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 12, Postemployment Benefits Other Than Pensions (OPEB), Continued
Net OPEB Liability — The Commission's net OPEB liability was measured as of June 30, 2017, and the total OPEB liability used
to calculate the net OPEB liability was determined by an actuarial valuation as of that date.
Actuarial assumptions — The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial, Assumptions
Inflation
Salary increases
Investment rate of return
Healthcare cost trend rates
June 30, 2016 Measurement Date
2.75% per annum
3.00% aggregate
6.00%
Non -Medicare: 7.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076 and later years
Medicare: 6.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076 and later years
Mortality rates are based on projected fully generational with Scale MP-16.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for
the period July 1, 2016 to June 30, 2017.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation)
are developed for each major asset class. These ranges are combined to produce long-term expected rate of return by weighing
the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Target Expected Real
Allocation Rate of Return
Strategy,2
Global equity
Fixed income
TIPS
Commodities
REITs
Assumed long-term rate of inflation
Expected long-term net rate of return
40%
39%
10%
3%
8%
4.82%
1.47%
1.29%
0.84%
3.76%
2.75%
6.00%
Discount rate — The discount rate to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine
the discount rate assumed that contributions from the Commission will be made at contractually required rates, actuarially
determined. Based on this assumption, the OPEB plan's fiduciary net position was projected to be available to make projected
OPEB payments for current and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments
was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in the Net OPEB Liability — The changes in the net OPEB liability from the measurement date of June 30, 2016 to
June 30, 2017 are as follows:
65
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 12. Postemployment Benefits Other Than Pensions (OPEB), Continued
Balances at June 30, 2016 (measurement date
Changes for the year:
Service cost
Interest
Contributions - employer
Net investment income
Benefit payments
Administrative expense
Net changes
Balances at June 30, 2017 (measurement date)
Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB Liability
Liability Position
$ 5,235,000
5,911,000
449,000
377,000
(172,000)
654,000
666,000
597,000
(172,000)
(3,000)
1,088,000
676,000
449,000
377,000
(666,000)
(597,000)
3,000
(434,000)
$ 6,565,000 $ 6,323,000 $ 242,000
Sensitivity of the net OPEB liability to changes in the discount rate - The following table presents the Commission's net
OPEB liability, as well as what the Commission's net OPEB liability would be if it were calculated using a discount rate that is 1%
below or 1 % higher than the current discount rate:
Changes in the Discount Rate
1% Decrease
Net OPEB Liability
Current Discount Rate
Net OPEB Liability
5.00%
$1,249,000
6.00%
$242,000
1% Increase 7.00%
Net OPEB Asset ($574,000)
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The following table presents the net
OPEB liability as well as what the Commission's net OPEB liability would be if it were calculated using healthcare cost trend
rates that are 1% below or 1% higher than the current healthcare cost trend rates:
Changes in the Healthcare Cost Trend Rate
1% Decrease
Net OPEB Asset
Current Healthcare Trend Rate
Net OPEB Liability
1% Increase
Net OPEB Liability
1% Decrease
($655,000)
Current Trend
$242,000
1% Increase
$1,346,000
OPEB plan fiduciary net position - Detailed information about the OPEB plan's fiduciary net position is available in the
separately issued CERBT financial reports.
OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB - For the year
ended June 30, 2018, the Commission recognized OPEB expense of $488,000. At June 30, 2018 the Commission reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources.
66
Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 12. Postemployment Benefits Other Than Pensions (OPEB), Continued
Deferred Outflows of Deferred Inflows of
Resources Resources
Contributions subsequent to measurement date $ 725,000 $
Net differences between projected and actual earnings on plan investments 124,800
Total $ 849,800 $
214,400
214,400
The $725,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be
recognized as a reduction of the net OPEB liability in the year ending June 30, 2019. Amounts reported as deferred outflows of
resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ending Ju °
2019
2020
2021
2022
i
$ (12,000)
(12,000)
(14,000)
(51,600)
$ (89,600)
Payable to the OPEB Plan — At June 30, 2018 the Commission reported a payable of $0 for the outstanding amount of
contributions to CERBT required for the year ended June 30, 2018.
Note 13. Measure A Conformance Requirements
Measure A requires that the sales taxes collected may only be used for transportation purposes including administration and the
construction, capital acquisition, maintenance, and operation of streets, roads, highways including state highways, and public
transit systems and for related purposes. These purposes include expenditures for planning, environmental reviews, engineering
and design costs, and related right of way acquisition.
Note 14. Pronouncements Issued, Not Yet Effective
The GASB pronouncements issued prior to June 30, 2018 that have an effective date that may impact future financial
presentations include:
• GASB Statement No. 83, Certain Assets Retirement Obligations, effective for fiscal years beginning after June 15, 2018;
• GASB Statement No. 84, Fiduciary Activities, effective for fiscal years beginning after December 15, 2018;
• GASB Statement No. 87, Leases, effective for fiscal years beginning after December 15, 2019;
• GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements, effective
for fiscal years beginning after June 15, 2018; and
• GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period, effective for fiscal
years beginning after December 15, 2019.
67
Required Supplementary Information
RIVERSIDE
COUNTY
TRANSPORTATION
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
Year Ended June 30, 2018
Revenues
Intergovernmental
Investment income
Other
Total revenues
Expenditures
Current:
General government
Commuter rail
Planning and programming
Transit and specialized transportation
Total programs
Debt service:
Principal
Interest
Total debt service
Capital outlay
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
See notes to required supplementary information
General
Original
Budget
$ 8,702,400 $
76,400
293,200
Final
Budget
8,775,987 $
76,400
293,200
Actual
5,674,843 $
138,417
286,647
Variance with
Final Budget
Positive
(Negative)
(3,101,144)
62,017
(6,553)
9,072,000
7,554,400
30,594,900
8,690,400
516,300
9,145,587 6,099,907
7,756,200
30,520,600
8,689,800
559,100
11,699
22,682,717
3,433,172
498,790
(3,045,680)
7,744,501
7,837,883
5,256,628
60,310
47,356,000
47,525,700 26,626,378
21,000
4,000
20,974
3,884
20,899,322
26
116
25,000
24,858
1,040,000 997,400 429,652
48,396,000 48,548,100 27,080,888
(39,324,000) (39,402,513) (20,980,981)
39,411,600 41,103,600 28,549,875
(1,551,800) (1,551,800) (654,500)
37,859,800 39,551,800 27,895,375
$ (1,464,200) $ 149,287 6,914,394 $
19,126,100
142
567,748
21,467,212
18,421,532
(12,553,725)
897,300
(11,656,425)
6,765,107
$ 26,040,494
68
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual • Major Special Revenue Funds
Year Ended June 30, 2018
Measure A Western County Measure A Coachella Valley
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Sales taxes $ 136,042,000 $ 139,907,000 $ 136,852,833 $ (3,054,167) $ 38,923,000 $ 40,029,000 $ 38,512,321 $ (1,516,679)
Transportation Uniform Mitigafion Fee
Intergovernmental 74,012,900 74,912,900 68,412,271 (6,500,629) - - - -
Investment income 623,300 623,300 2,474,963 1,851,663 112,300 112,300 434,803 322,503
Other 1,828,500 1,828,500 2,515,887 687,387
Total revenues 212,506,700 217,271,700 210,255,954 (7,015,746) 39,035,300 40,141,300 38,947,124 (1,194,176)
Expenditures
Current:
General government 1,747,300 1,064,800 954,199 110,601
Bicycle and pedestrian facilities -
CETAP - 1,487 1,687 (200)
Commuter assistance 3,368,000 4,148,100 3,647,662 500,438
Commuter rail 46,308,500 46,715,300 14,118,997 32,596,303 - -
Highways 304,134,400 294,074,713 164,579,201 129,495,512 30,008,500 30,464,500 15,984,413 14,480,087
Local streets and roads 38,311,500 39,150,500 39,223,884 (73,384) 13,589,300 13,880,300 13,479,312 400,988
Planning and programming
Regional arterials 3,668,100 8,673,300 6,158,736 2,514,564 -
Transit and specialized transportation 7,865,500 7,712,100 6,184,197 1,527,903 5,000,000 5,153,400 5,366,000 (212,600)
Total programs 405,403,300 401,540,300 234,868,563 166,671,737 48,597,800 49,498,200 34,829,725 14,668,475
Capital outlay 3,940,000 5,221,300 2,177,199 3,044,101
Total expenditures 409,343,300 406,761,600 237,045,762 169,715,838 48,597,800 49,498,200 34,829,725 14,668,475
Excess (deficiency) of revenues over (under)
expenditures (196,836,600) (189,489,900) (26,789,808) 162,700,092 (9,562,500) (9,356,900) 4,117,399 13,474,299
Other financing sources (uses)
Debt issuance 88,000,000 81,810,000 - (81,810,000) - - - -
Transfers in 156,715,900 157,305,900 162,784,421 5,478,521 188,000 188,000 159,403 (28,597)
Transfers out (113,591,000) 114,551,100 (80,508,265) (195,059,365) (124,800) (399,400) 399,400
Total other financing sources(uses) 131,124,900 353,667,000 82,276,156 (271,390,844) 63,200 (211,400) 159,403 370,803
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
See notes to required supplementary information
$ (65,711,700) $ 164,177,100 55,486,348 $ (108,690,752) $ (9,499,300) $ (9,568,300) 4,276,802 $ 13,845,102
221,510,954 47,791,274
$ 276,997,302 $ 52,068,076
Revenues
Sales taxes
Transportation Uniform Mitigation Fee
Intergovernmental
Investment Income
Other
Total revenues
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual • Major Special Revenue Funds, Continued
Year Ended June 30, 2018
Transportation Uniform Mitigation Fee Local Transportation Fund
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
$ - $ • $ - $ 88,000,000 $ 91,000,000 $ 89,557,646 $ (1,442,354)
21,250,000 22,250,000 23,699,764 1,449,764 -
1,314,998 1,314,998 185 185
390,600 390,600 664,023 273,423 435,300 435,300 825,116 389,816
25,155 25,155 •
21,640,600 22,640,600 25,703,940 3,063,340 88,435,300 91,435,300 90,382,947 (1,052,353)
Expenditures
Current
General government 12,000 12,000 12,000 -
Bicycle and pedestrian facilities - - - 4,000,000 5,063,600 1,142,306 3,921,294
CETAP 11,587,000 27,112,900 22,273,742 4,839,158
Commuter assistance
Commuter rail
Highways
Local streets and roads • - -
Planning and programming - - 660,000 1,433,000 773,000 660,000
Regional arterials 12,424,200 10,269,100 6,729,703 3,539,397 -
Transit and specialized transportation 83,180,000 81,456,400 72,799,693 8,656,707
Total programs 24,011,200 37,382,000 29,003,445 8,378,555 87,852,000 87,965,000 74,726,999 13,238,001
Capital outlay
Total expenditures 24,011,200 37,382,000 29,003,445 8,378,555 87,852,000 87,965,000 74,726,999 13,238,001-
Excess (deficiency) of revenues over (under)
expenditures (2,370,600) 04,741,400) (3,299,505) 11,441,895 583,300 3,470,300 15,655,948 12,185,648
Other financing sources (uses)
Debt issuance - - • - - - -
Transfers in 435,000 435,000 235,942 (199,058) 654,500 654,500
Transfers out (1,119,000) (1,709,000) 1,709,000 (23,783,300) (24,233,300) (21,049,875) 3,183,425
Total other financing sources (uses) (684,000) (1,274,000) 235,942 1,509,942 (23,783,300) (24,233,300) (20,395,375) 3,837,925
Net change in fund balances $. (3,054,600) $ (16,015,400) (3,063,563) $ 12,951,837 $ (23,200,000) $ (20,763,000) (4,739,427) $ 16,023,573
Fund balances at beginning of year 81,473,550 115,175,281
Fund balances at end of year $ 78,409,987 $ 110,435,854
See notes to required supplementary information
Riverside County Transportation Commission
Schedule of Proportionate Share of Net Pension Liability
Last Ten Fiscal Years
June 30, 2018
Fiscal Year
2018 2017 2016 20151
Measurement Date Fiscal Year 2017 2016 2015 2014
Proportion of the net pension liability/(asset) 0.08794% 0.08829% 0.09176% 0.08559%
Proportionate share of the net pension liability/(asset) $ 8,721,456 $ 7,639,639 $ 6,298,052 $ 5,325,565
Covered payroll (measurement year) $ 5,536,781 $ 5,287,151 $ 4,792,270 $ 4,316,567
Proportionate share of the net pension liability/(asset) as percentage
of covered payroll 157.52% 144.49% 131.42% 123.38%
Plan fiduciary net position as a percentage of the total pension liability 73.31% 74.06% 78.40% 78,21%
See notes to required supplementary information
Fiscal year 2015 was the first year of implementation, therefore, only four years are shown. Represents most recent data available.
71
Riverside County Transportation Commission
Schedule of Pension Contributions
Last Ten Fiscal Years'
June 30, 2018
Fiscal Year
2018 2017 2016 2015'
Contractually required contribution (actuarially determined) $ 1,301,958 $ 1,211,922 $ 1,101,641 $ 1,044,018
Contributions in relation to the actuarially determined contributions (1,308,877) (1,238,891) (1,132,393) (1,125,317)
Contribution deficiency (excess) $ (6,919) $ (26,969) $ (30,752) $ (81,299)
Covered payroll $ 5,653,205 $ 5,536,781 $ 5,287,151 $ 4,792,270
Contributions as a percentage of covered payroll 23.15% 22.38% 21.42% 23.48%
Valuation date 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Actuarial cost method Entry age normal cost method
Amortizations method Level of percentage of payroll
Remaining amortization period 19 years as of valuation date
Asset valuation method 15 year smoothed market
Inflation 2.75%
Projected salary increases 3.30% to 14.20% depending on age, service, and type of employment
Discount rate 7.50% (net of administrative expenses)
Retirement age 55 years
Mortality RP-2000 Healthy Annuitant Mortality Table
See notes to required supplementary information
'Fiscal year 2015 was the first year of implementation, therefore, only four years are shown. Represents most recent data available.
72
Riverside County Transportation Commission
Schedule of Changes in the Net OPEB Liability and Related Ratios
Last Ten Fiscal Years
June 30, 2018
Measurement date fiscal year
Total OPEB liability
Service cost
Interest
Benefit payments
Net change in total OPEB liability
Beginning total OPEB liability
Ending total OPEB liability
Plan fiduciary net position
Employer contributions
Net invesment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Beginning fiduciary net position
Ending fiduciary net position
Ending net OPEB liability
Plan fiduciary net position as a percentage of the total OPEB liability
Covered payroll (measurement year)
Net OPEB liability as a percentage of covered -employee payroll
See notes to required supplementary information
Fiscal Year
2018 20171
2017 2016
$ 449,000 $ 437,000
377,000 338,000
(172,000) (155,000)
654,000 620,000
5,911,000 5,291,000
$ 6,565,000 $ 5,911,000
$ 666,000
597,000
(172,000)
(3,000)
1,088,000
5,235,000
$ 634,000
86,000
(155,000)
(2,000)
563,000
4,672,000
$ 6,323,000 $ 5,235,000
$ 242,000 $ 676,000
96.31 % 88.56%
$ 5,536,781 $ 5,287,151
4.37% 12.79%
Fiscal year 2017 was the first year of implementation, therefore, only two years are shown. Represents most recent
data available.
73
Riverside County Transportation Commission
Schedule of OPEB Contributions
Last Ten Fiscal Years
June 30, 2018
Fiscal Year
2018 20171
Actuarially determined contribution $ 533,000 $ 494,000
Contributions in relation to the actuarially determined contribution 725,000 666,000
Contribution deficiency (excess) $ (192,000) $ (172,000)
Covered payroll $ 5,653,205 $ 5,536,781
Contributions as a percentage of covered -employee
payroll 12.82% 12.03%
Valuation date:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions
are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Amortization period
Entry age normal - level percentage of payroll
Level percentage of payroll
Eight years
Asset valuation method Investment gains and losses spread over five-year rolling period
Inflation 3.00%
Healthcare cost trend rates Non -Medicare: 7.0% for 2017, decreasing to an ultimate rate of 5.0% in 2021
and later years
Medicare: 7.2% for 2017, decreasing to an ultimate rate of 5.0% in 2021 and
later years
Salary increases
Investment rate of return
Retirement age
3.00% aggregate
6.75%
Classic employees: 50 - 55
Public Employees' Pension Reform Act: 52 - 62
Mortality Mortality projected fully generational with Scale MP-14
See notes to required supplementary information
i Fiscal year 2017 was the first year of implementation, therefore, only two years are shown. Represents most recent data available.
74
Riverside County Transportation Commission
Notes to Required Supplementary Information
June 30, 2018
Budgetary Data
In February of each year, department heads begin the process of compiling budget data for the upcoming fiscal year. Budget
numbers along with supporting documentation are provided to the Chief Financial Officer by March 15. That budget data is
compiled and presented to the Executive Director for review and approval and is submitted to the Budget and Implementation
Committee at its April meeting. After review by the Budget and Implementation Committee, the proposed budget is scheduled for
preliminary review and comment as well as public hearing at the Commission's May meeting. The final budget for the new fiscal
year is then adopted by motion of the Board of Commissioners (Board) no later than June 15 of the current year. This appropriated
budget covers substantially all Commission expenditures by financial responsibility unit [e.g., General fund and Measure A (for
each of the three county areas), Local Transportation Fund, and Transportation Uniform Mitigation Fee special revenue funds] by
fund. All appropriated amounts are as originally adopted or as amended by the Commission. Unexpended appropriations lapse
at year-end. All budgets are adopted on a basis consistent with generally accepted accounting principles.
As adopted by the Board, expenditure activities of the funds with adopted budgets are controlled at the budgetary unit, which is
the financial responsibility level, for each function (i.e., administration, programs, intergovernmental distributions, and capital
outlay). These functions provide the legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed
the appropriated amount). Management has the discretion to transfer the budgeted amounts within the financial responsibility unit
according to function. Supplemental budget appropriations were necessary during the year.
Pension Plan
Schedule of Proportionate Share of Net Pension Liability — The schedule provides the proportion (percentage) of the
collective net pension liability, proportionate share (amount) of the collective net pension liability, the Commission's covered -
employee payroll, proportionate share (amount) of the collective net pension liability as a percentage of Commission's
covered -employee payroll, and the pension plan's fiduciary net position as a percentage of the total pension liability.
Schedule of Pension Contributions — The schedule provides the Commission's actuarially determined contributions to the
pension plan, the Commission's actual contributions, the difference between the actual and actuarially determined
contributions, and a ratio of the actual contributions divided by covered -employee payroll.
Postemployment Benefits Other Than Pensions
Schedule of Changes in the Net OPEB Liability and Related Ratios — The schedule provides the schedule of changes in
the net OPEB liability, the plan fiduciary net position as a percentage of the total OPEB liability, the Commission's covered -
employee payroll, and the net OPEB liability as a percentage of covered -employee payroll.
Schedule of OPEB Contributions — The schedule provides the Commission's actuarially determined contributions to the
OPEB plan, the Commission's actual contributions, the difference between the actual and actuarially determined
contributions, and a ratio of the actual contributions divided by covered -employee payroll.
75
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Other Supplementary Information
Riverside County Transportation Commission
Nonmajor Governmental Funds Description
Special Revenue Funds
Measure A Palo Verde Valley: This fund is used to account for the revenues from sales taxes which are restricted to
expenditures for Palo Verde Valley programs and activities.
Freeway Service Patrol: This fund is used to record the revenues received from state funds for the purpose of implementing a
freeway service patrol for motorists.
Service Authority for Freeway Emergencies: This fund is used to record the revenues received from Department of Motor
Vehicle user registration fees for the purpose of implementing an emergency call box system for motorists.
State Transit Assistance: This fund is used to account for revenues from sales taxes on gasoline restricted for transit projects.
State of Good Repair: This fund is used to account for revenues from sales taxes on gasoline and vehicle fee revenues
restricted for transit projects.
Coachella Valley Rail: This fund is used to account for revenues from state funds for the planning and development of the new
Coachella Valley/San Gorgonio Pass corridor rail service.
SB 132: This fund is used to account for program revenues allocated by the State for the Riverside County Transportation
Efficiency Corridor. The program comprises five projects in northwest Riverside County.
Other Agency Projects: This fund is used to account for revenues from the Riverside County Regional Park and Open Space
District for the interagency cooperative planning and development of projects in the County.
76
Riverside County Transportation Commission
Combining Balance Sheet • Nonmajor Governmental Funds
June 30, 2018
Special Revenue
Service
Measure Freeway Authority State State of
Palo Verde Service for Freeway Transit Good
Valley Patrol Emergencies Assistance Repair
Assets
Cash and investments $ 557 $ 1,370,698 $ 6,887,100 $ 83,044,463 $ 2,461,760
Receivables:
Accounts 156,657 1,073,962 506,197 5,584,017 1,237,632
Interest 3,628 27,239 307,971
Due from other funds 1,200,000
Total assets $ 157,214 $ 2,448,288 $ 8,620,536 $ 88,936,451 $ 3,699,392
Liabilities and fund balances
Liabilities:
Accounts payable $ 104,989 $ 428,767 $ 109,382 $ 528,410 $
Due to other funds 51,668 1,279,466 12,252 264,700
Other liabilities
Total liabilities 156,657 1,708,233 121,634 793,110
Fund balances:
Restricted for:
Commuter rail
Local streets and roads 557
Motorist assistance 740,055 8,498,902
Planning and programming
Transit and specialized transportation = 88,143,341 3,699,392
Unassigned:
Total fund balances 557 740,055 8,498,902 88,143,341 3,699,392
Total liabilities and fund balances $ 157,214 $ 2,448,288 $ 8,620,536 $ 88,936,451 $ 3,699,392
Coachella
Valley
Rail
Riverside County Transportation Commission
Combining Balance Sheet • Nonmajor Governmental Funds, Continued
June 30, 2018
Special Revenue
Total
Nonmajor
Other Governmental
SB 132 Agency Projects Funds
Assets
Cash and investments $ 2,914,464 $ $ 364,814 $ 97,043,856
Receivables:
Accounts 320,195 5,341,293 500,000 14,719,953
Interest 10,877 278 349,993
Due from other funds 226,800 1,426,800
Total assets $ 3,472,336 $ 5,341,293 $ 865,092 $ 113,540,602
Liabilities and fund balances
Liabilities:
Accounts payable $ 186,468 $ 1,834,550 $ 167,898 $ 3,360,464
Due to other funds 19,545 3,775,497 10,720 5,413,848
Other liabilities 683,332 683,332
Total liabilities 206,013 5,610,047 861,950 9,457,644
Fund balances:
Restricted for:
Commuter rail 3,266,323 3,266,323
Local streets and roads 557
Motorist assistance 9,238,957
Planning and programming 3,142 3,142
Transit and specialized transportation • 91,842,733
Unassigned: • (268,754) (268,754)
Total fund balances 3,266,323 (268,754) 3,142 104,082,958
Total liabilities and fund balances $ 3,472,336 $ 5,341,293 $ 865,092 i 113,540,602
Riverside County Transportation Commission
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances
Nonmajor Governmental Funds
Year Ended June 30, 2018
Special Revenue
Service
Measure A Freeway Authority State State of
Palo Verde Service for Freeway Transit Good
Valley Patrol Emergencies Assistance Repair
Revenues
Sales taxes $ 936,502 $ - $ - $ 17,608,016 $ 3,712,895
Intergovernmental 1,613,144 2,167,579
Investment income (loss) 1 5,543 64,120 634,536 (13,503)
Other - 366,776 5,018
Total revenues 936,503 1,985,463 2,236,717 18,242,552 3,699,392
Expenditures
Current:
Commuter rail
Highways
Local streets and roads 936,502 - -
Motorist assistance 3,241,816 583,906
Planning and programming
Transit and specialized transportation - - 5,305,243 -
Total expenditures 936,502 3,241,816 583,906 5,305,243
Excess (deficiency) of revenues over (under)
expenditures 1 (1,256,353) 1,652,811 12,937,309 3,699,392
Other financing sources (uses):
Transfers in 1,083,600 •
Transfers out (1,083,600) (226,800)
Total other financing sources (uses) 1,083,600 (1,083,600) (226,800)
Net change in fund balances 1 (172,753) 569,211 12,710,509 3,699,392
Fund balances at beginning of year 556 912,808 7,929,691 75,432,832
Fund balances at end of year $ 557 $ 740,055 $ 8,498,902 $ 88,143,341 $ 3,699,392
Riverside County Transportation Commission
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances
Nonmajor Governmental Funds, Continued
Year Ended June 30, 2018
Special Revenue
Total
Coachella Nonmajor
Valley Other Governmental
Rail SB 132 Agency Projects Funds
Revenues
Sales taxes $ - $ - $ $ 22,257,413
Intergovernmental 602,224 5,341,294 295,181 10,019,422
Investment income (loss) 27,324 7,793 (433) 725,381
Other - - 371,794
Total revenues 629,548 5,349,087 294,748 33,374,010
Expenditures
Current:
Commuter rail 898,443 898,443
Highways 5,594,787 5,594,787
Local streets and roads • 936,502
Motorist assistance 3,825,722
Planning and programming 471,768 471,768
Transit and specialized transportation 5,305,243
Total expenditures 898,443 5,594,787 471,768 17,032,465
Excess (deficiency) of revenues over (under)
expenditures (268,895) (245,700) (177,020) 16,341,545
Other financing sources (uses):
Transfers in 226,800 1,310,400
Transfers out (1,310,400)
Total other financing sources (uses) 226,800
Net change in fund balances (42,095) (245,700) (177,020) 16,341,545
Fund balances at beginning of year 3,308,418 (23,054) 180,162 87,741,413
Fund balances at end of year $ 3,266,323 $ (268,754) $ 3,142 $ 104,082,958
Revenues
Sales lazes
Intergovernmental
Investment income (loss)
Other
Total revenues
Expenditures
Current:
Commuter rail
Highways
Local streets and roads
Motorist assistance
Planning and programming
Transit and specialized transportation
Total programs
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses)
Transfers In
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes In Fund Balances
Budget and Actual—Nonma)or Special Revenue Funds
Year Ended June 30, 2018
Measure A Palo Verde Valley
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Freeway Service Patrol
Variance with
Final Budget
Original Final Positive
Budget @Art Actual (Negative)
$ 1,035,000 $ 1,064,000 $ 936,502 $ (127,498) $ - $ - $ - $ -
• - 2,200,000 2,200,000 1,613,144 (586,856)
• 1 1 - 5,543 5,543
675,000 675,000 366,776 (308,224)
1,035,000 1,064,000 936,503 (127,497) 2,875,000 2,875,000 1,985,463 (889,537)
1,032,200 1,054,200 936,502 117,698
3,934,800 3,929,800 3,241,816 687,984
1,032,200 1,054,200 936,502 117,698 3,934,800 3,929,800 3,241,816
2,800 9,800 1 (9,799) (1,059,800) (1,054,800) (1,256,353)
(2,800) (10,100)
(2,800) (10,100)
$ •$
1,083,600 1,083,600 1,083,600
10,100 (112,900) (112,900) -
10,100 970,700 970,700 1,083,600
687,984
(201,553)
112,900
112,900
(300) 1 $ 301 $ (89,100) $ (84,100). (172753) $ (8885;
556 22,008
$ 557
$ 740,055
Revenues
Sales taxes
Intergovernmental
Investment Income (loss)
Other
Total revenues
Expenditures
Current:
Commuter rail
Highways
Local streets and roads
Motorist assistance
Planning and programming
Transit and specialized transportation
Total programs
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses)
Transfers In
Transfers out
Total other financing sources (uses)
Net change In fund balances
Fund balances at beginning of year
Fund balances al end of year
Service Authority f
Original Final
Budget Budget
$ - $
2,029,600 2,029,600
39,100 39,100
7,000 7,000
2,075,700 2,075,700
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes In Fund Balances
Budget and Actual-NonmaJor Special Revenue Funds, Continued
Year Ended June 30, 2018
or Freeway Emergencies
Variance with
Final Budget
Positive
Actual (Negative)
$ - $
2,167,579
64,120
5,018
137,979
25,020
(1,982)
2,236,717 161,017
•
809,100 804,100 583,906 220,194
21,336,300 21,336,600 5,305,243 16,031,357
809,100 804,100 583,906 220,194 21,336,300 21,336,600 5,305,243 16,031,357
State Transit Assistance
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 10,469,000 $ 10,469,000 $ 17,608,016 $ 7,139,016 $
327,900 327,900 634,536 306,636
10,796,900 10,796,900 18,242,552 7,445,652
1,266,600 1,271,600 1,652,811 381,211 (10,539,400) (10,539,700) 12,937,309 23,477,009
(1,144,600) (1,144,600) (1,083,600) 61,000 (272,900) (272,900) (226,800)
(1,144,600) (1,144,600) (1,083,600) 61,000 (272,900) (272,900) (226,800)
46,100
46,100
Original
Budget
State of Good Repair
Final
Budget
Variance with
Final Budget
Positive
Actual (Negative)
$ 3,712,895 $ 3,712,895
(13,503) (13,503)
3,699,392 3,699,392
3,699,392 3,699,392
$ 122,000 $ 127,000 56%211 $ 442,211 $ (10,812,330) (10,812,600) 12,710,509 $ 23,523,109 $ $ 3,699,392 $ 3,699,392
7,94691 75 432,832 -
$ 8,498,902 $ 88143,341 $ 3,699,392
82
Revenues
Sales taxes
Intergovernmental
Investment Income (loss)
Other
Total revenues
Expenditures
Current:
Commuter rail
Highways
Local streets and roads
Motorist assistance
Planning and programming
Transit and specialized transportation
Total programs
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses)
Transfers In
Transfers out
Total other financing sources (uses)
Net change In fund balances
Fund balances at beginning of year
Fund balances at end of year
Coachella Valley Rail
Original Final
Budget Budget Actual
$ $ $
2,400,000 2,400,000 602,224
27,324
Variance with
Final Budget
Positive
(Negative)
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes In Fund Balances
Budget and Actual—Nonmajor Special Revenue Funds, Continued
Year Ended June 30, 2018
SB 132
Variance with
Final Budget
Original Final Positive
Beset Budget Actual (Negative)
$ $
(1,797,776)
27,324
2,400,000 2,400,000 629,548 (1,770,452)
5,814,600 5,714,600
898,443 4,816,157
5,814,600 5,714,600 898,443 4,816,157
(3,414,600) (3,314,600) (268,895) 3,045,705
322,400 322,400 226,800 (95,600)
(165,000) (165,000) - 165,000
157,400 157,400 226,800 69400
$ (3,257,200) $ (3,157,20% (42,095) $ 3,115,105
3,308.418
$ 3,266,323
- $ •
- 8,756,970
•
5,341,294
7,793
(3,415,676)
7,793
• 8,756,970 5,3,19,087 (3,407,883)
10,763,570 5,594,787 5,168,783
- 10,763,570 5,594,787 5,1E8,783
- (2,006,600) (245,700) 1,760,900
Odginal
Budget
Other Agency Projects
Final
Budget
Actual
S $ • $
4,001,000 4,001,000 295,181
1,000 1,000 (433)
Variance with
Final Budget
Positive
(Negative)
•
(3,705,819)
(1,433)
4,002,000 4,002,000
3,873,500 4,438,300
294,748
471,768
(3,707,252)
3,966,532
3,873,500 4,438,300
471,768
128,500 (436,300) (177,020)
208,000 208,000
(208,000) (208,000)
3,966,532
259,280
(208,000)
208,000
$ (2,006,600) (245,700) 9 1,760,900 $ 128,500 $ (436,300), (177020).1 259,280
(23,054) 180,162
$ (268 754)
83
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual —Capital Projects Funds
Year Ended June 30, 2018
Capital Projects Funds
Commercial Paper Bonds
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Intergovernmental $ - $ - $ - $ - $ - $ - $ - $
Investment income 105,800 105,800 1,657,775 1,551,975 1,028,700 1,028,700 1,988,693 959,993
Total revenues 105,800 105,800 1,657,775 1,551,975 1,028,700 1,028,700 1,988,693 959,993
Expenditures
Current:
Highways 400,000 1,287,000 929,220 357,780
Total programs 400,000 1,287,000 929,220 357,780
Debt service:
Principal 30,000,000 30,000,000 30,000,000 - -
Interest 172,500 172,500 37,485 135,015 7,526,000 7,526,000
Cost of issuance - - 5,500,000 5,057,016 2,256,061 2,800,955
Payment to escrow agent 66,966,708 66,966,667 41
Total debt service 30,172,500 30,172,500 30,037,485 135,015 5,500,000 79,549,724 76,748,728 2,800,996
Capital outlay
Total expenditures 30,172,500 30,172,500 30,037,485 135,015 5,900,000 80,836,724 77,677,948 3,158,776
Excess (deficiency) of revenues over (under)
expenditures (30,066,700) (30,066,700) (28,379,710) 1,686,990 (4,871,300) (79,808,024) (75,689,255) 4,118,769
Other financing sources (uses)
Refunding debt issuance 20,000,000 20,000,000 - (20,000,000) • 457,490,000 457,015,000 (475,000)
Debt issuance 158,760,000 158,760,000 158,760,000 -
Premium on debt issuance 18,892,000 119,722,000 119,713,807 (8,193)
Payment to refunded bonds escrow agent - (471,089,800) (471,089,840) (40)
Transfers In 30,000,000 30,000,000 30,000,000 6,100,000 6,100,000 8,916,955 2,816,955
Transfers out (40,100,000) (40,100,000) (26,995,887) 13,104,113 (123,009,000) (123,009,000) (166,943,091) (43,934,091)
Total other financing sources(uses) 9,900,000 9,900,000 3,004,113 (6,895,887) 60,743,000 147,973,200 106,372,831 (41,600,369)
Net change In fund balances $ (20,166,700) $ (20,166,700) (25,375,597) $ (5,208,897) $ 55,871,700 $ 68,165,176 30,683,576 $ (37,481,600)
Fund balances at beginning of year 46,951,913 64,660,068
Fund balances at end of year $ 21,576,316 $ 95,343,644
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes In Fund Balances
Budget and Actual —Debt Service Fund
Year Ended June 30, 2018
Debt Service Fund
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ 2,746,500 $ 2,746,500 $ 2,785,292 $ 38,792
Investment income 206,600 206,600 240,501 33,901
Total revenues 2,953,100 2,953,100 3,025,793 72,693
Expenditures
Current
Highways
Total programs
Debt service:
Principal 36,045,000 32,120,000 32,120,000
Interest 33,830,800 43,039,543 43,039,543
Cost of issuance
Payment to escrow agent 3,833,333 3,833,333
Total debt service 69,875,800 78,992,876 78,992,876
Capital outlay
Total expenditures 69,875,800 78,992,876 78,992,876 •
Excess (deficiency) of revenues over (under)
expenditures (66,922,700) (76,039,776) (75,967,083) 72,693
Other financing sources (uses)
Refunding debt issuance
Debt Issuance
Premium on debt issuance
Payment to refunded bonds escrow agent
Transfers In 73,960,000 73,960,000 68,012,174 (5,947,826)
Transfers out (2,746,500) (2,746,500) (2,944,697) (198,197)
Total other financing sources (uses) 71,213,500 71,213,500 65,067,477 (6,146,023)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
$ 4,290,800 $ (4,826,276) (10,899,606) $ (6,073,330)
21,982,515
$ 11,082,909
85
Riverside County Transportation Commission
Schedule of Expenditures for Local Streets and Roads
by Geographic Area - All Special Revenue Funds
Year Ended June 30, 2018
Western County:
City of Banning $ 563,927
City of Beaumont 601,889
City of Calimesa 160,323
City of Canyon Lake 177,749
City of Corona 3,985,329
City of Eastvale 1,266,707
City of Hemet 1,700,088
City of Jurupa Valley 1,938,244
City of Lake Elsinore 1,303,137
City of Menifee 1,664,930
City of Moreno Valley 3,871,953
City of Murrieta 2,338,740
City of Norco 653,147
City of Perris 1,568,415
City of Riverside 7,372,116
City of San Jacinto 845,657
City of Temecula 3,062,870
City of Wildomar 616,835
Riverside County 5,313,428
Other 218,400
39,223,884
Coachella Valley:
City of Cathedral City 1,418,893
City of Coachella 578,871
City of Desert Hot Springs 454,537
City of Indian Wells 253,043
City of Indio 1,864,232
City of La Quinta -
City of Palm Desert 2,665,356
City of Palm Springs 2,017,700
City of Rancho Mirage 879,700
Riverside County 1,687,061
Coachella Valley Association of Governments, including
$726,209 due to City of La Quinta 1,452,419
Other 207,500
13,479,312
Palo Verde Valley:
City of Blythe 724,303
Riverside County 175,199
Other 37,000
936,502
Total local streets and roads expenditures $ 53,639,698
86
Riverside County Transportation Commission
Schedule of Expenditures for Transit and Specialized Transportation
by Geographic Area and Source • All Special Revenue Funds
Year Ended June 30, 2018
Sales Taxes
Local State
Transportation Transit
Measure A Fund Assistance Total
Western County:
Blindness Support Services, Inc. $ 65,353 $ $ - $ 65,353
Boys and Girls Club of Southwest County 208,265 208,265
Care -A -Van 324,870 - 324,870
Care Connexxus 293,598 293,598
City of Banning 1,416,829 21,550 1,438,379
City of Beaumont 2,350,846 117,016 2,467,862
City of Corona 1,306,283 1,306,283
City of Norco 60,000 - 60,000
City of Riverside 3,334,851 23 3,334,874
Community Connect 46,723 46,723
Friends of Moreno Valley Center, Inc 66,262 66,262
Forest Folk 55,000 55,000
Independent Living Partnership 483,399 483,399
Operation Safehouse 29,304 29,304
Riverside University Health Systems 307,659 - 307,659
Riverside County Department of Mental Health 200,000 - 200,000
Riverside Transit Agency 3,423,973 44,665,663 2,936,764 51,026,400
United States Veterans Initiative 32,028 - 32,028
Voices for Children 95,478 - 95,478
Other 492,285 218,400 119,342 830,027
6,184,197 53,292,872 3,194,695 62,671,764
Coachella Valley:
SunLine Transit Agency 5,153,400 18,630,403 1,996,420 25,780,223
Other 212,600 - 212,600
5,366,000 18,630,403 1,996,420 25,992,823
Palo Verde Valley:
Palo Verde Valley Transit Agency 876,418 114,128 990,546
876,418 114,128 990,546
Total transit and specialized transportation expenditures $ 11,550,197 $ 72,799,693 $ 5,305,243 $ 89,655,133
87
Riverside County Transportation Commission
Schedule of Uses of Debt Proceeds and Fund Balances
Year Ended June 30, 2018
Capital Projects
Commercial Paper
Notes
I.15 Express Lanes,
advance agreements,
and other
Sales Tax Revenue Bonds
I.15 Express Lanes, 91
Project, advance
agreements, and other
Toll Revenue
Bonds
91 Project Total
Revenues
Investment income $ 1,657,775 $ 1,987,869 $ 824 $ 3,646,468
Total revenues 1,657,775 1,987,869 824 3,646,468
Expenditures
Professional services
Support services
Highways — design -build
Swap termination payment
Debt service
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
924,577 924,577
4,643 4,643
7,526,000 7,526,000
30,037,485 69,222,728 99,260,213
30,037,485 77,677,948 107,715,433
(28,379,710) (75,690,079) 824 (104,068,965)
Other financing sources (uses)
Refunding debt issuance 457,015,000 - 457,015,000
Debt issuance 158,760,000 158,760,000
Premium 119,713,807 - 119,713,807
Payment to refunded bonds escrow agent (471,089,840) (471,089,840)
Transfers in
Retirement of outstanding commercial paper notes 30,000,000 - 30,000,000
1-15 Express Lanes ramp -up reserve 8,700,000 - 8,700,000
Excess earnings 216,955 216,955
Transfers out
Debt service on advance agreements (3,530,610) - (3,530,610)
Debt service offset (409,240) (409,240)
Retirement of commercial paper notes (30,000,000) - (30,000,000)
Requisitions to reimburse Commission funds
Salaries and benefits (1,465,519) (180,412) - (1,645,931)
Professional services (2,408,789) (4,611,756) (7,020,545)
Support services (27,301) (244,203) (132) (271,636)
Program operations (966,816) (6,274,568) (7,241,384)
Engineering (6,537,841) (20,483) - (6,558,324)
Construction (4,450,546) - (4,450,546)
Right of way (1,199,301) (20,699,211) (21,898,512)
Design -build (7,544,575) (98,196,845) (1,345,201) (107,086,621)
Other (3,315,135) (510,494) (3,825,629)
Total other financing sources (uses) 3,004,113 107,501,209 (1,128,378) 109,376,944
Net change in fund balance (25,375,597) 31,811,130 (1,127,554) 5,307,979
Fund balances at beginning of year 46,951,913 63,532,514 1,127,554 111,611,981
Fund balances at end of year $ 21,576,316 $ 95,343,644 $ $ 116,919,960
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Statistical Section
BLANK - BACK OF STATISTICAL DIVIDER
Riverside County Transportation Commission
Statistical Section Overview
This part of the Riverside County Transportation Commission's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the Commission's overall financial health.
Financial Trends: These schedules contain trend information to help the reader understand how the government's financial
performance and well-being have changed over time. The schedules include:
Net Position By Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity: These schedules contain information to help the reader assess the government's most significant local
revenue source, the Measure A sales tax. These schedules include:
Sources of County of Riverside Taxable Sales by Business Type
Direct and Overlapping Sales Tax Rates
Principal Taxable Sales Generation by City
Measure A Sales Tax Revenues by Program and Geographic Area
Measure A Sales Tax by Economic Category
Debt Capacity: These schedules present information to help the reader assess the affordability of the government's current
levels of outstanding debt and the government's ability to issue additional debt in the future. These schedules include:
Pledged Revenue Coverage
Ratios of Outstanding Debt by Type
Computation of Legal Debt Margin
Demographic and Economic Information: These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take place. These schedules include:
Demographic and Economic Statistics for the County of Riverside
Employment Statistics by Industry for the County of Riverside
Operating Information: These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides and the activities it performs.
These schedules include:
Full-time Equivalent Employees by Function/Program
Operating Indicators
Capital Asset Statistics by Program
89
Riverside County Transportation Commission
Primary Government Net Position by Component
Last Ten Fiscal Years
(Accrual Basis)
Fiscal Year
2018 2017 2016 2015 2014
Governmental activities:
Net Investment in capital assets $ 529,178,100 $ 377,309,766 $ 389,646,370 $ 509,106,481 $ 381,796,683 "
Restricted 801,401,752 596,214,012 615,457,192 578,207,942 642,385,244
Unrestricted (deficit) (857,485,575) (538,356,445) (668,395,594) (623,769,876) (470,327,554)
Total governmental activities net position $ 473,094,277 $ 435,167,333 $ 336,707,968 $ 463,544,547 5 $ 553,854,373
Business -type activities:
Net Investment in capital assets $ (286,349,191) $ (301,737,495)
Restricted 8,581,857 ' 242,134,144
Unrestricted (deficit) $ - ' $ (234,075,489)
Total business -type activities net position $ (277,767,334) $ (293,678,840) 6
Source: Finance Department
1 Net investment in capital assets increased in 2009 primarily as a result of right of way purchases related to the Mid County Parkway project, the planning and development of toll projects, and the
construction of a muitimodal transit facility and a commuter rail station parking structure.
2 Net investment in capital assets increased in 2010 primarily as a result of the planning and development of toll projects and the completion of construction of the Perris Transit Center and North Main
Corona station parking structure.
3 Net investment in capital assets increased in 2011 primarily as a result of the planning and development of toll projects and right of way acquisiton for the 91 Project and Perris Valley Line extension
project.
Net investment in capital assets increased in 2014 primarily as a result of construction related to the Perris Valley Line project.
5 In FY 2015, the Commission implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date - An Amendment of GASB Statement No. 68. Prior year amounts in this presentation have not been revised to reflect this change.
6 In FY 2017, the Commission reached substantial completion on the 91 Project and in March 2017 the RCTC 91 Express Lanes opened to motorists.
In FY 2018, the Commission changed its presentation of net position related to intangible assets.
$300,000,000
$200,000,000
$100,000,000
$(100,000,000)
$(200,000,000)
$(300,000,000)
$(400,000,000)
Business -type Activities Net Position by Component
ORestricted
Net Investment in capital assets
90
Riverside County Transportation Commission
Primary Government Net Position by Component, Continued
Last Ten Fiscal Years
(Accrual Basis)
Fiscal Year
2013 2012 2011 2010 2009
Governmental activities:
Net Investment in capital assets $ 336,834,025 $ 327,277,502 $ 341,912,094 3 $ 294,218,263 2 $ 266,647,382
Restricted 619,089,707 572,183,941 587,098,179 549,781,414 505,474,075
Unrestricted (deficit) (216,162,697) (215,929,362) (293,146,251) (229,888,408) (205,658,986)
Total governmental activities net position $ 739,761,035 $ 683,532,081 $ 635,864,022 $ 614,111,269 $ 566,462,471
$1,500,000,000
$1,000,000,000
$500,000,000
$(500,000,000)
$(1,000,000,000)
Governmental Activities Net Position by Component
ILO
201
201
201
POaA
y
y
2013 2012 2011 2010 2009
4Unrestricted (deficit)
GRestricted
/Net Investment in capital assets
91
Riverside County Transportation Commission
Changes in Primary Government Net Position
Last Ten Fiscal Years
(Accrual Basis)
Fiscal Year Ended June 30
2018 2017 2 2016 2015 2014
Expenses
Govemmental activities:
General govemment $ 3,654,628 $ 7,258,051 $ 6,614,285 $ 7,402,725 $ 6,994,832
Bicycle and pedestrian projects 1,142,306 1,314,932 212,647 1,747,090 1,065,476
CETAP 22,285,913 2,489,440 1,871,426 4,130,374 2,195,074
Commuter assistance 3,668,307 2,658,782 2,615,610 2,914,990 3,171,842
Commuter rail 36,578,920 38,964,217 41,449,269 20,455,178 17,255,402
Highways 79,234,802 264,283,974 245,668,543 228,857,938 339,194,681
Local streets and roads 53,639,698 51,864,011 49,826,564 48,615,708 46,677,580
Motorist assistance 3,835,612 4,164,892 4,149,320 4,314,601 3,498,420
Planning and programming 4,768,503 3,141,759 3,965,071 3,064,115 3,216,441
Regional arterials 12,897,557 19,040,012 23,095,562 21,010,980 23,886,840
Transit and specialized transportation 90,185,227 80,724,591 70,611,967 86,712,958 78,723,898
Interest expense 46,421,211 49,214,579 53,658,472 50,037,270 52,939,762
Total governmental activities expenses 358,302,684 525,119,240 503,638,636 479,263,927 578,820,248
Business -type activities:
RCTC 91 Express Lanes 49,452,297 13,260,254
Total primary govemment expenses $ 407,754,981 $ 538,379,494 $ 503,638,636 $ 479,263,927 $ 578,820,248
Program Revenues
Govemmental activities:
Charges for services
Commuter assistance $ - $ $ - $ $ -
Commuter rail 254,627 250,416 255,847 786,869 297,911
Highways 51,629 - 90,655 412,535
Motorist assistance 4,149 635,373 1,076,751 21,307 15,026
Other 479 447 421 450 999
Operating grants and contributions 45,363,624 35,611,287 42,568,860 57,784,238 61,767,456
Capital grants and contributions 66,910,285 16,451,903 54,062,314 70,133,121 71,744,926
Total govemmental activities program revenues 112,584,793 52,949,426 97,964,193 128,816,640 134,238,853
Business -type activities:
Charges for services
RCTC 91 Express Lanes 50,446,824 10,123,572
Operating grants and contributions 1,723
Total business -type actNities program revenues 50,446,824 10,125,295
Total primary govemment revenutes 163,031,617 63,074,721 97,964,193 128,816,640 134,238,853
Net Revenues (Expenses)
Govemmental activities (245,717,891) (472,169,814) (405,674,443) (350,447,287) (444,581,395)
Business -type activities 994,527 (3,134,959) - -
Total primary govemment net expense $ (244,723,364) $ (475,304,773) $ (405,674,443) $ (350,447,287) $ (444,581,3%)
General Revenues and Other Changes in Net Position
Govemmental activities:
Measure A sales taxes $ 176,301,656 $ 175,320,207 $ 167,630,239 $ 163,092,776 $ 156,355,894
Transportation Devebpment Act sales taxes 110,878,557 94,639,514 97,134,594 94,816,814 91,953,554
Unrestricted investment eamings 8,916,321 4,262,323 8,383,732 6,060,400 9,794,662
Other miscellaneous revenue 2,497,942 5,1359,819 4,950,964 1,643,078 556,049
Gain on sale of capital assets - 738,335 - 14,674
Transfers (14,949,641) 290,547,316 - -
Total govemmentalactivities 283,644,835 570,629,179 278,837,864 265,613,068 258,674,733
Business -type actNities:
Unrestricted investment eamings (32,662) 3,435
Transfers 14,949,641 (290,547,316) -
Total business -type actNities 14,916,979 (290,543,881) -
Total primary govemment $ 2,38,561,814 $ 280,085,298 $ 278,837,864 $ 265,613,068 $ 258,674,733
Changes in Net Position
Govemmental activities $ 37,926,944 $ 98,459,365 $ (126,836,579) $ (84,834,219) $ (185,906,662)
Business -type activities 15,911,506 (293,678,840) - - -
Totalprimarygovemment $ 53,838,450 $ (195,219,475) $ (126,836,579) $ (84,834,219) $ (185,906,662)
Source: Finance Department
r In FY 2015 the Commission implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension
Transition for Contributions Made Subsequent to the Measurement Date - An Amendment of GASB Statement No. 68. Prior year amounts in this presentation have
not been revised to reflect this change.
2 In FY 2017 the Commission reached substantial completion on the 91 Project and in March 2017 the RCTC 91 Express Lanes opened to motorists. Additionally, the
Commission early Implemented GASB Statement No. 75, Accounting and Financial Reporting for Post -Employment Benefits Other Than Pensions, and GASB
Statement No. 85, Omnibus 2017.
92
Riverside County Transportation Commission
Changes in Primary Government Net Position, Continued
Last Ten Fiscal Years
(Accrual Basis)
Fiscal Year Ended June 30
2013 2012 ° 2011 2010 2009
Expenses
Govemmental activities:
General govemment $ 6,959,827 $ 7,780,478 $ 8,453,876 $ 7,024,517 $ 5,525,963
Bicycle and pedestrian projects 956,308 1,389,567 1,940,499 317,048 2,747,151
CETAP 954,700 4,464,387 5,490,993 2,362,393 4,832,608
Commuter assistance 2,904,048 3,193,172 2,868,630 3,266,834 5,199,032
Commuter rail 23,531,252 21,480,248 27,792,375 20,544,634 16,038,028
Highways 59,604,916 72,341,578 40,113,092 24,828,958 143,532,009
Local streets and roads 44,594,891 40,127,890 36,856,925 34,258,313 45,661,155
Motorist assistance 3,563,581 3,846,245 3,530,695 2,987,136 2,623,184
Planning and programming 3,725,703 3,924,413 4,683,272 5,321,121 10,126,142
Right of way management - ' 1,270,487 1,428,066 1,399,316
Regional arterials 17,047,135 5,816,666 29,362,894 26,371,339 20,948,530
Transit and specialized transportation 55,659,188 51,221,772 44,69,3,650 43,820,225 77,417,741
Interest expense 15,364,677 15,221,031 11,799,586 7,099,038 9,515,282
Total govemmental activities expenses 234,866,226 . 230,807,447 218,862,974 179,629,622 345,565,541
Business -type activities:
RCTC 91 Express Lanes
Total primary govemment expenses $ 234,866,226 $ 230,807,447 $ 218,862,974 $ 179,629,622 $ 345,565,541
Program Revenues
Govemmental activities:
Charges for services
Commuter assistance $ 1,500 $ - $ $ $
Commuter rail 107,194 145,735 2,525,314
Right of way management 184,010 196,527 421,738
Highways 796,385 -
Motorist assistance 13,915 19,778
Planning and programming - -
Other 14,873 - 27,681 - 46
Operating grants and contributions 46,567,900 54,641,955 39,886,648 23,130,456 90,280,426
Capital grants and contributions 4,897,301 5,228,621 9,199,268 12,257,099 25,321,886
Total govemmental activities program revenues 52,399,068 60,016,311 49,297,607 35,584,082 118,569,188
Business -type activities:
Charges for services
RCTC 91 Express Lanes
Operating grants and contributions
Capital grants and contributions -
Total business -type activities program revenues
Total primary govemment revenutes 52,399,068 60,016,311 49,297,607 35,584,082 118,569,188
Net Revenues (Expenses)
Govemmental activities (182,467,158) (170,791,136) (169,565,367) (144,045,540) (226,996,353)
Business -type activities
Total primary govemment net expense $ (182,467,158) $ (170,791,136) $ (169,565,367) $ (144,045,540) $ (226,996,353)
General Revenues and Other Changes In Net Position
Govemmental activities:
Measure A sales taxes $ 149,428,124 $ 134,984,307 $ 123,439,833 $ 114,526,254 $ 119,688,289
Transportation Development Act sales taxes 86,999,018 80,044,131 60,772,795 69,499,841 77,920,485
Unrestricted investment eamings 1,664,789 4,196,452 4,411,122 5,987,921 14,211,197
Other miscellaneous revenue 604,181 1,287,981 2,694,370 1,680,322 1,454,611
Gain on sale of capital assets -
Transfers
Total govemmental activities 238,696,112 220,512,871 191,318,120 191,694,338 213,274,582
Business -type activities:
Unrestricted investment eamings
Transfers
Total business -type activities
Total primarygovemment $ 238,696,112 $ 220,512,871 $ 191,318,120 $ 191,694,338 $ 213,274,582
Changes in Net Position
Govemmental activities
Business -type activities
Total primary govemment
$ 56,228,954 $ 49,721,735 $ 21,752,753 $ 47,648,798 $ (13,721,771)
$ 56,228,954 $ 49,721,735 $ 21,752,753 $ 47,648,798 $ (13,721,771)
Source: Finance Department
3 Right of way expenditures were classified as highways or commuter rail expenditures beginning in 2012.
° In FY 2012 the Commission implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Prior year amounts in this presentation have
not been revised to reflect this change.
93
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$-
Riverside County Transportation Commission
Changes in Primary Government Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis)
Expenses by Function
•
•
2018 2017 2016
2015 2014
2013
2012 2011 2010
2009
LiToll operations
■ Interest expense
®Transit and specialized transportation
3Regional arterials
® Right of way management
■ Planning and programming
❑ Motorist assistance
® Local streets and roads
13 Highways
■ Commuter rail
®Commuter assistance
0 CETAP
■ Bicycle and pedestrian facilities
oGeneral government
$500,000,000
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000 -
$150,000,000
$100,000,000
$50,000,000
$-
Riverside County Transportation Commission
Changes in Primary Government Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis)
Au_
Revenues by Source
1
•
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
■Gain on sale of capital assets, net
D Other miscellaneous revenue
al Unrestricted investment earnings
■Transportation Development Act sales taxes
o Measure A sales taxes
ElCapital grants and contributions
®Operating grants and contributions
❑ Charges for services
95
Riverside County Transportation Commission
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2018 2017 2016 2015 2014
GENERAL FUND
General fund:
Nonspendable $ 232,793 $ 232,759 $ 192,235 $ 255,446 $ 257,721
Restricted 22,470,358 16,321,159 7,143,844 5,680,411 5,073,685
Committed - - - - -
Assigned 3,337,343 2,572,182 3,456,111 4,246,940 5,258,703
Total general fund $ 26,040,494 $ 19,126,100 $ 10,792,190 $ 10,182,797 $ 10,590,109
General fund:
Reserved
Unreserved
Total general fund
ALL OTHER GOVERNMENTAL FUNDS
All other governmental funds:
Nonspendable $ 4,627,240 $ 9,162,068 $ 10,848,614 $ 21,510,571 $ 31,978,235
Restricted 745,638,560 678,147,954 718,780,598 772,109,076 988,908,077
Unassigned (268,754) (23,054) -
Total all other governmental funds $ 749,997,046 $ 687,286,968 $ 729,629,212 $ 793,619,647 $ 1,020,886,312
Source: Finance Department
1 In FY 2010 the Commission implemented GASB Statement No. 54Fund Balance Reporting and Governmental Fund Type Definitions. Prior year amounts in this presentation have
not been revised to reflect this change.
96
Riverside County Transportation Commission
Fund Balances of Governmental Funds, Continued
Last Ten Fiscal Years
(Modified Accrual Basis)
2013 2012 2011 2010
GENERAL FUND
General fund:
Nonspendable $ 194,794 $ 157,957 $ 143,397 $ 253,819
Restricted 7,412,686 8,114,440 7,110,013 7,266,584 1
Committed - - 1,606,976
Assigned 5,232,871 5,412,830 6,270,944 4,134,059
Total general fund $ 12,840,351 $ 13,685,227 $ 13,524,354 $ 13,261,438
2009
General fund:
Reserved $ 6,756,708
Unreserved 3,348,711
Total general fund $ 10,105,419
ALL OTHER GOVERNMENTAL FUNDS
All other governmental funds:
Nonspendable $ 3,274,483 $ 1,481,019 $ 5,389,775 $ 2,554,136
Restricted 606,072,061 560,412,373 570,450,515 535,752,354
Unassigned
Total all other governmental funds $ 609,346,544 $ 561,893,392 $ 575,840,290 $ 538,306,490
All other governmental funds:
Reserved $ 487,425,652
Unreserved, reported in:
Special revenue funds 8,289,036
Capital projects funds (49,576,636)
Total all other governmental funds $ 446,138,052
Source: Finance Department
97
Riverside County Transportation Commission
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2018 2017
2016 2015 2014
Revenues
Sales taxes $ 287,180,213 $ 269,959,721 $ 264,764,833 $ 257,909,590 $ 248,309,448
Transportation Uniform Mitigation Fee 23,699,764 19,594,829 19,831,327 17,400,782 11,284,394
Intergovernmental 88,207,011 32,467,616 76,821,362 110,515,661 122,486,605
Investment income 9,149,672 4,483,174 8,592,753 6,258,226 9,979,912
Vehicle registration user fees
Other 3,199,483 6,746,055 7,295,648 2,542,359 1,282,520
Total revenues 411,436,143 333,251,395 377,305,923 394,626,618 393,342,879
Expenditures
Current:
General Government 977,898 6,558,752 6,514,255 7,302,325 6,991,303
Programs:
Bicycle and pedestrian facilities 1,142,306 1,314,932 233,815 1,747,090 1,065,476
CETAP 22,275,429 4,028,104 5,249,516 4,135,996 6,509,915
Commuter assistance 3,647,662 2,686,073 2,648,632 2,891,431 3,136,150
Commuter rail 37,700,157 32,820,139 95,717,909 112,424,851 68,072,414
Highways 187,087,621 250,383,800 372,657,029 325,128,109 299,398,122
Local streets and roads 53,639,698 51,864,011 49,826,564 48,615,815 46,677,580
Motorist assistance 3,825,722 4,177,349 4,159,520 4,317,961 3,498,420
Planning and programming 4,677,940 3,248,031 4,090,731 3,099,358 3,204,073
Right of way management
Regional arterials 12,888,439 19,056,339 23,111,109 21,016,097 23,886,840
Transit and specialized transportation 90,153,923 80,764,125 70,652,804 86,725,394 78,723,898
Debt service:
Principal 62,140,974 27,317,242 7,814,176 7,411,654 67,112,884
Interest 50,606,912 44,684,153 45,620,922 45,913,275 43,410,203
Cost of Issuance 2,256,061 654,007 7,050,855
Payment to escrow agent 70,800,000 63,900,000
Intergovernmental distributions
Capital outlay 2,606,851 5,670,356 1,182,208 475,334 143,888
Total expenditures 606,427,593 599,127,413 689,479,190 671,204,690 658,882,021
Excess (deficiency) of revenues
over(under)expenditures (194,991,450) (265,876,018) (312,173,267) (276,578,072) (265,539,142)
Other financing sources (uses):
Sales of capital assets -
Refunding debt issuance 457,015,000
Debt issuance 158,760,000 249,498,089 248,792,225 48,904,095 638,854,602
Discount on debt issuance - - (2,433,315)
Premium on debt issuance 119,713,807 8,414,007 - 38,328,775
Payment to refunded bond escrow agent (471,089,840) - -
Transfers in 300,623,670 182,713,859 162,708,720 232,626,156 481,987,735
Transfers out (300,406,715) (208,758,271) (162,708,720) (232,626,156) (481,987,735)
Total other financing sources (uses) 264,615,922 231,867,684 248,792,225 48,904,095 674,750,062
Net change in fund balances $ 69,624,472 $ (34,008,334) $ (63,381,042) $ (227,673,977) $ 409,210,920
Debt service as a percentage of
noncapital expenditures 23.7% 5 12.2% 10.6% 11.0% 19.1%
Source: Finance Department
Debt service as a percentage of noncapital expenditures in 2010 increased significantly as a result of the retirement of $53,716,000 of commercial paper,
which is included in principal payments.
2 Debt service as a percentage of noncapital expenditures in 2011 increased significantly as a result of the retirement of $103,284,000 of commercial paper,
which is included in principal payments.
3 Right of way management expenditures were classified as highways or commuter rail expenditures beginning in 2012.
4 Debt service as a percentage of noncapital expenditures in 2014 increased significantly as a result of the retirement of $60,000,000 of commercial paper,
which is included in principal payments and interest payments and cost of issuance as a result of the issuance of $638,854,602 in debt.
5 Debt service as a percentage of noncapital expenditures in 2018 increased significantly as a result of the retirement of commercial paper and
a current refunding of debt, which included a swap termination payment.
98
Riverside County Transportation Commission
Changes in Fund Balances of Governmental Funds, Continued
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2013 2012 2011 2010 2009
Revenues
Sales taxes $ 236,427,142 $ 215,028,438 $ 184,212,628 $ 184,026,095 $ 197,608,774
Transportation Uniform Mitigation Fee 12,421,110 8,116,420 9,157,863 8,618,231 10,957,420
Intergovernmental 38,817,347 51,516,775 40,012,488 26,769,324 105,512,656
Investment income 1,769,709 4,308,395 4,524,219 5,663,178 13,567,938
Vehicle registration user fees - - 1,677,374
Other 1,540,542 1,430,195 2,878,380 1,853,641 1,876,349
Total revenues 290,975,850 280,400,223 240,785,578 226,930,469 331,200,511
Expenditures
Current:
General Government 6,692,187 7,586,207 8,340,263 6,920,479 5,368,677
Programs:
Bicycle and pedestrian facilities 956,308 1,389,567 1,940,499 317,048 2,747,151
CETAP 954,700 4,464,387 5,490,993 2,362,393 35,809,396
Commuter assistance 2,868,356 3,157,480 2,816,392 3,228,709 5,155,263
Commuter rail 27,118,480 39,870,670 35,482,511 33,733,888 40,704,106
Highways 118,750,336 111,049,502 75,011,698 45,698,211 165,100,551
Local streets and roads 44,594,891 40,127,890 36,856,925 34,258,313 45,661,155
Motorist assistance 3,563,581 3,846,245 3,530,695 2,987,136 2,623,184
Planning and programming 3,712,596 3,913,520 4,674,397 5,312,246 9,193,944
Right of way management s 1,270,487 1,428,066 1,399,316
Regional arterials 17,047,135 5,816,666 29,362,894 26,371,339 20,948,530
Transit and specialized transportation 55,659,188 51,221,772 44,699,650 43,820,225 77,417,741
Debt service:
Principal 6,824,654 46,523,931 109,607,230 57,738,548 33,646,475
Interest 15,404,719 15,008,695 11,296,268 5,240,307 12,026,942
Cost of Issuance 1,493,196 675,464 -
Payment to escrow agent
Intergovernmental distributions 975,833
Capital outlay 220,443 209,716 147,297 124,080 1,055,997
Total expenditures 304,367,574 334,186,248 372,021,395 270,216,452 459,834,261
Excess (deficiency) of revenues
over (under) expenditures (13,391,724) (53,786,025) (131,235,817) (43,285,983) (128,633,750)
Other financing sources (uses):
Sales of capital assets 117,127
Refunding debt issuance - -
Debt issuance 60,000,000 40,000,000 170,000,000 268,284,000 53,716,000
Discount on debt issuance (967,467) (278,685)
Premium on debt issuance
Payment to refunded bond escrow agent (129,394,875)
Transfers in 133,065,312 123,977,167 185,354,839 104,833,227 33,466,298
Transfers out (133,065,312) (123,977,167) (185,354,839) (104,833,227) (33,466,298)
Total other financing sources (uses) 60,000,000 40,000,000 169,032,533 138,610,440 53,833,127
Net change in fund balances $ 46,608,276 $ (13,786,025) $ 37,796,716 $ 95,324,457 $ (74,800,623)
Debt service as a percentage of
noncapital expenditures
Source: Finance Department
9.3% 22.5% 32.5% 2 23.3% I 9.9%
99
Riverside County Transportation Commission
Sources of County of Riverside Taxable Sales by Business Type
Last Ten Calendar Years (In Thousands)
Apparel stores
General merchandise stores
Food stores
Eating & drinking
Household
Building materials
Automotive
Other retail sales
Total all other outlets
Measure A direct sales tax rate (Ordinance 88-1 through
2009 and 02-001 thereafter)
2016'
2015 2014 2013 2012
$ 2,190,228 $
3,052,409
1,574,030
3,648,980
1,386,985
1,965,101
7,751,812
2,452,591
10,209,008
2,136,728 $
3,040,244
1,727,518
3,384,494
1,135,235
1,826,294
7,693,173
2,338,039
9,629,185
34,231,144 $ 32,910,910
0.50%
0.50%
1,989,623 $ 1,771,603 $ 1,672,482
3,289,057 3,298,920 3,174,022
1,509,404 1,421,590 1,356,148
3,093,861 2,836,388 2,668,324
1,030,455 996,484 930,068
1,706,184 1,535,178 1,364,513
7,844,773 7,421,523 7,009,138
2,182,987 2,025,088 1,841,973
9,389,345 8,758,693 8,079,341
32,035,689 $ 30,065,467 $ 28,096,009
0.50%
0.50%
Source: State Board of Equalization
' Year represents most recent data available.
Sources of County of Riverside Taxable Sales by Business Type for 2016
Apparel stores General
1_6%
Total
all other outlets
30%
Other retail sales `
7%
merchandise
..stores
/ 8%
_ [CATEGORY NAME]
5%
Eating &
drinking
11%
-,_Household
4%
Building materials
6%
0.50%
Riverside County Transportation Commission
Sources of County of Riverside Taxable Sales by Business Type, Continued
Last Ten Calendar Years (In Thousands)
Apparel stores
General merchandise stores
Food stores
Eating & drinking
Household
Building materials
Automotive
Other retail sales
Total all other outlets
Measure A direct sales tax rate (Ordinance 88-1 through
2009 and 02-001 thereafter)
Source: State Board of Equalization
2011 2010 2009 2008 2007
$ 1,505,821
3,051,709
1,304,731
2,473,339
914,888
1,303,073
6,311,272
1,711,453
7,065,212
$ 1,391,174
2,947,905
1,267,758
2,317,486
412,325
1,232,145
5,306,408
1,951,385
6,326,194
$
1,293,271 $ 1,121,543 $ 1,171,013
2,855,733 3,389,936 3,593,134
1,251,220 1,254,366 1,352,609
2,266,853 2,340,554 2,388,039
858,098 816,379 843,945
1,237,518 1,435,337 1,961,911
4,749,994 6,126,512 7,137,075
1,442,875 3,250,335 2,794,790
6,272,315 6,268,633 7,781,093
$ 25,641,498 $ 23,152,780
$
22,227,877 $ 26,003,595 $ 29,023,609
0.50%
0.50%
0.50%
0.50%
0.50%
Riverside County Transportation Commission
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
County of
Fiscal Year Measure A Direct Rate' Riverside
2018 0.50% 7.75%
2017 0.50% 7.75%
2016 0.50% 8.00%
2015 0.50% 8.00%
2014 0.50% 8.00%
2013 0.50% 8.00%
2012 0.50% 7.75%
2011 0.50% 8.75%
2010 0.50% 8.75%
2009 0.50% 8.75%
Source: Commission Finance Department and California State Board of Equalization.
1 The Measure A sales tax rate may be changed only with the approval of 2/3 of the voters.
2 The State of California increased the state sales tax rate 1% in April 2009.
3 Effective July 1, 2011, the State of California decreased the state sales tax rate by 1%.
4 Effective January 1, 2013, the State of California increased the state sales tax rate by 0.25%.
City of Riverside
City of Corona
City of Temecula
City of Palm Desert
City of Moreno Valley
City of Murrieta
City of Palm Springs
City of Hemet
City of Indio
City of Perris
City of Jurupa Valleys
City of Lake Elsinore
City of Cathedral City
City of La Quinta
City of Eastvale4
City of Menifee3
City of Norco
City of Rancho Mirage
City of Beaumont
City of Coachella
City of San Jacinto
City of Banning
City of Blythe
City of Wildomar2
City of Desert Hot Springs
City of Indian Wells
City of Calimesa
City of Canyon Lake
Incorporated
Unincorporated
Countywide
California
Riverside County Transportation Commission
Principal Taxable Sales Generation by City
Current Year and Nine Years Ago
20161
2007
Taxable Sales (in Percentage of Taxable Sales (in Percentage of
thousands) Rank Total thousands) Rank Total
$ 5,507,805 2 16.1% $ 4,789,554 2 16.5%
3,396,905 3 9.9% 3,478,337 3 12.0%
3,208,193 4 9.4% 2,583,938 4 8.9%
1,618,078 5 4.7% 1,593,698 5 5.5%
1,571,730 6 4.6% 1,267,045 6 4.4%
1,340,131 7 3.9% 1,098,431 7 3.8%
1,067,028 8 3.1% 852,473 9 3.0%
1,015,877 9 3.0% 962,919 8 3.3%
986,137 10 2.9% 766,341 12 2.6%
980,763 11 2.9% 554,129 14 1.9%
888,190 12 2.6% - - N/A
791,622 13 2.3% 723,996 13 2.5%
790,202 14 2.3% 812,985 11 2.8%
724,252 15 2.0% 826,488 10 2.9%
633,526 16 1.9% N/A
628,923 17 1.8% N/A
565,886 18 1.7% 509,334 15 1.8%
459,544 19 1.3% 501,618 16 1.7%
414,906 20 1.2% 262,964 18 0.9%
299,236 21 0.9% 319,336 17 1.1%
244,673 22 0.7% 173,716 21 0.6%
192,449 23 0.6% 232,890 19 0.8%
150,104 24 0.4% 178,507 20 0.6%
146,087 25 0.4% - N/A
125,456 26 0.4% 94,617 22 0.3%
106,587 27 0.3% 94,073 23 0.3%
63,982 28 0.2% 51,047 24 0.2%
20,820 29 0.1 % 12,938 25 0.0%
27,939,092 81.6% 22,741,374 78.4%
6,292,052 1 18.4% 6,282,235 1 21.6%
$ 34,231,144 100.0% $ 29,023,609 100.0%
$ 649,079,371
Source: California State Board of Equalization for the calendar year indicated.
Year represents most recent data available.
2 City of Wildomar was incorporated on July 1, 2008.
3 City of Menifee was incorporated on October 1, 2008.
4 City of Eastvale was incorporated on October 1, 2010.
5 City of Jurupa Valley was incorporated on July 1, 2011.
Taxable Sales by City
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$ 561,050,149
t 20161
N 2007
Riverside County Transportation Commission
Measure A Sales Tax Revenues by Program and Geographic Area
Year Ended June 30, 2018
Highways
Regional arterials
Highways and regional arterials
New corridors
Economic development incentives
Local streets and roads
Public transit:
Commuter assistance
Commuter rail
Bus
Specialized transportation
Bus and specialized transportation
Bond financing
Source: Finance Department
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
Special Revenue Funds
Western
County
$ 41,544,610 $
12,219,003
15,070,104
1,629,200
39,508,109
2,036,501
8,308,922
2,077,230
3,462,051
10,997,103
Coachella
Valley
19,256,161
13,479,312
5,776,848
Palo
Verde
Total
$ $ 41,544,610
12,219,003
19,256,161
15,070,104
1,629,200
936,502 53,923,923
2,036,501
8,308,922
2,077,230
3,462,051
5,776,848
10,997,103
$ 136,852,833 $ 38,512,321 $ 936,502 $ 176,301,656
Sales Tax Revenues by Program and Geographic Area
T T
•
4' aye a�5 °cy ,a5 a5 Ga
I``°'r4a a\a‹,0 a\a�at� °<<�a �o°e��` a a�o� 5 eye
U (� 5
,40
CP
03
Q aa�a• c Je\°Q Ga
�.
Gaeye
�° G
see °�°
�G
'11p+0~•-•
�gQ �gQ e
ea4 eati�a �°o
5Q a5e
a°
05
Geographic Distribution by Area
Coachella Valley. k
22%
Palo Verde
0% .
Western County
78%
+ Palo Verde
+Coachella Valley
• Western County
104
Riverside County Transportation Commission
Measure A Sales Tax by Economic Category
Last Ten Calendar Years
% of Total
Economic Category 2017' 2016 2015 2014 2013 2012 2011 2010 2009 2008
General retail 28.3 28.9 28.8 28.4 28.7 28.8 29.8 30.9 30.9 28.2
Transportation 25.3 25.1 25.9 26.6 27.0 26.9 27.1 25.0 22.8 24.9
Food products 17.6 17.7 17.3 16.6 16.1 16.2 16.4 17.0 17.8 16.0
Business to business 15.6 15.3 15.0 14.4 14.5 15.0 14.1 14.5 15.2 16.4
Construction 10.8 10.8 10.8 12.0 11.8 11.1 10.5 10.5 11.1 12.3
Miscellaneous 2.4 2.2 2.2 2.0 1.9 2.0 2.1 2.1 2.2 2.2
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: MuniServices LLC. Prior years' information is not available.
' Year represents most recent data available.
105
Riverside County Transportation Commission
Measure A Revenues and Pledged Revenue Coverage'
Last Ten Fiscal Years
Sales Tax Revenue Bonds
Net Measure A Measure A Sales Tax Senior Lien Subordinate Total Debt
Sales Tax Revenue Growth Senior Lien Debt Coverage Lien Debt Total Debt Service
Fiscal Year Revenues2 (Decline) Rate Service Ratio Service Service Coverage Ratio
2018 $ 176,301,656 0.56% $ 75,159,543 2.35 $ - $ 75,159,543 2.35
2017 175,320,207 4.59% 51,889,982 3.38 - 51,889,982 3.38
2016 167,630,239 2.78% 53,400,019 3.14 - 53,400,019 3.14
2015 163,092,776 4.31% 53,300,072 3.06 - 53,300,072 3.06
2014 156,355,894 4.64% 50,499,417 3.10 50,499,417 3.10
2013 149,428,124 10.70% 22,156,116 6.74 22,156,116 6.74
2012 134,984,307 9.35% 21,503,582 6.28 21,503,582 6.28
2011 123,439,833 7.78% 12,651,386 9.76 12,651,386 9.76
20103 114,526,254 -4.31% 8,918,183 12.84 - 8,918,183 12.84
20094 119,688,289-16.03% 34,020,724 3.52 1,452,634 35,473,358 3.37
Source: Finance Department
This schedule meets the requirements for Continuing Disclosure of historical Measure A sales tax revenues.
2 Sales tax revenue bonds are backed by the sales tax revenues, net of Board of Equalization fees, during the fiscal year.
3 In FY 2010 the 2008 bonds related to the 2009 Measure A program were current refunded. The payment to escrow agent is excluded from debt
service.
4 In FY 2009 all bonds related to the 1989 Measure A program matured as the 1989 Measure A program expired on June 30, 2009.
106
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Year
Riverside County Transportation Commission
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Sales Tax Revenue
Bonds, net of
premium and Commercial MSHCP Funding Capital
discount Paper Liability Leases
2018 $ 987,810,267 $ $ 6,000,000 $ 7,965
2017 792,916,124 30,000,000 9,000,000 28,939
2016 782,532,106 20,000,000 12,000,000 46,181
2015 792,297,152 15,000,000 60,357
2014 801,782,659 18,000,000 72,011
2013 310,435,508 60,000,000 6,289
2012 317,138,111 - 30,943
2011 323,537,074 54,874
2010 180,731,699 83,284,000 78,104
2009 127,538,888 110,000,000 100,652
Sources: Finance Department for outstanding debt for the fiscal year ended June 30 and
California State Department of Finance for population as of January 1.
See the Schedule of Demographic and Economic Statistics on page 112 for personal
income and population data.
Year
Riverside County Transportation Commission
Ratios of Outstanding Debt by Type, Continued
Last Ten Fiscal Years
Business -Type Activities
Toll Revenue
Bonds, net of
discount and
accretion
TIFIA Loan
Total Primary
Government
Percentage of
Personal
Income 1
County of
Riverside
Population
Debt per
Capital
2018 $ 194,522,170 $ 453,980,866 $ 1,642,321,268 N/A 2,382,640 $ 689.29
2017 189,923,251 438,628,419 $ 1,460,496,733 N/A 612.42
2016 185,607,330 277,696,320 $ 1,277,881,937 1.45% 551.30
2015 181,557,045 48,904,095 $ 1,037,818,649 1.24% 436.30
2014 177,755,391 $ 997,610,061 1.28% 423.81
2013 $ 370,441,797 0.49% 167.47
2012 $ 317,169,054 0.44% 142.38
2011 $ 323,591,948 0.48% 2,217,778 145.91
2010 $ 264,093,803 0.41% 2,179,692 121.16
2009 $ 237,639,540 0.38% 2,140,626 111.01
Sources: Finance Department for outstanding debt for the fiscal year ended June 30 and California State Department of Finance for
population as of January 1.
109
Riverside County Transportation Commission
Computation of Legal Debt Margin
Last Ten Fiscal Years
Measure A Ordinance No. 02-001, as amended by Ordinance No.10.0022
Total debt limit authorized
Amount of debt applicable to debt limit
Legal debt margin
% of debt to legal debt limit
Source: Finance Department
Fiscal Year
2018 2017 2016 2015 2014
$ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000
859,020,000 786,240,000 771,300,000 759,100,000 766,500,000
$ 115,980,000 $ 188,760,000 $ 203,700,000 $ 215,900,000 $ 208,500,000
88.1% 80.6% 79.1% 77.9% 78.6%
' The Commission's debt limits were approved by the voters of Riverside County as part of the sales tax ordinances and are specific to the Commission; accordingly, there are no
overlapping debt considerations.
2 Ordinance No. 02-001 was approved by a 213 majority of the voters in November 2002. In November 2010, a majority of the voters approved Ordinance No. 10-002 to increase the debt
limit from $500 million to $975 million.
3 Ordinance No. 88-1 expired on June 30, 2009. All outstanding debt related to Ordinance 88-1 matured prior to the expiration date.
Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-002
$1, 200,000, 000
$1, 000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
S
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Total debt limit authorized
LAmount of debt applicable to debt limit
110
Riverside County Transportation Commission
Computation of Legal Debt Margin, Continued 1
Last Ten Fiscal Years
Measure A Ordinance No. 02.001, as amended by Ordinance No.10.0022
Total debt limit authorized
Amount of debt applicable to debt limit
Legal debt margin
% of debt to legal debt limit
Fiscal Year
2013 2012 2011 2010 2009
$ 975,000,000 $ 975,000,000 $ 975,000,000 $ 500,000,000 $ 500,000,000
371,400,000 318,200,000 324,700,000 264,284,000 236,395,000
$ 603,600,000 $ 656,800,000 $ 650,300,000 $ 235,716,000 $ 263,605,000
38.1% 32.6% 33.3% 52.9% 47.3%
Measure A Ordinance No. 88.1, as amended by Ordinance 92-13
Total debt limit authorized $ 525,000,000
Amount of debt applicable to debt limit -
Legal debt margin $ 525,000,000
%d of debt to legal debt limit 0.0%
Source: Finance Department
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$-
Measure A Ordinance No. 88-1, as amended by Ordinance 92-1
2009
/Total debt limit authorized
II1Amount of debt applicable to debt
limit
111
Riverside County Transportation Commission
Demographic and Economic Statistics for the County of Riverside
Last Ten Calendar Years
Per Capita
Personal Income Personal Unemployment
Calendar Year Population' (thousands)2 Income 2 Rate3
2018 2,415,955 N/A N/A 0.0%
2017 2,382,640 N/A N/A 5.2%
2016 2,347,828 $ 87,827,068 $ 36,782 6.1%
2015 2,317,924 84,025,987 35,589 6.7%
2014 2,329,271 78,239,388 33,590 8.2%
2013 2,255,059 76,289,477 33,278 10.3%
2012 2,227,577 72,015,057 31,742 12.2%
2011 2,217,778 67,024,780 29,927 12.4%
2010 2,179,692 64,376,498 29,222 14.7%
2009 2,140,626 63,228,086 29,748 13.4%
Sources:
i California State Department of Finance as of January 1.
2 U.S. Department of Commerce Bureau of Economic Analysis. Represents most recent
data available.
3 Riverside County Economic Development Agency. Represents most recent data
available.
112
Riverside County Transportation Commission
Employment Statistics by Industry for the County of Riverside
Calendar Year 2017 and Nine Years Prior
Industry Type
% of Total % of Total
20171 Employment 2008 Employment
Agricultural services, forestry, fishing and other 12,600 1.8% 13,100 2.2%
Mining 400 0.1 % 500 0.1 %
Construction 62,300 8.8% 54,700 9.2%
Manufacturing 42,800 6.0% 48,400 8.1%
Transportation, warehousing, and public utilities 42,100 5.9% 21,200 3.6%
Wholesale trade 23,900 3.4% 20,400 3.4%
Retail trade 92,800 13.1% 84,900 14.2%
Professional & business services 67,000 9.4% 58,000 9.7%
Education & health services 106,200 14.9% 70,100 11.8%
Leisure & hospitality 90,800 12.8% 72,800 12.2%
Finance, insurance, and real estate 21,900 3.1% 22,300 3.7%
Other services 22,800 3.2% 19,400 3.3%
Federal government, civilian 7,100 1.0% 6,600 1.1%
State government 17,800 2.5% 15,700 2.6%
Local government 100,500 14.0% 88,300 14.8%
Total employment 711,000 100.0% 596,400 100.0%
Source: State of California Economic Development Department
i Year represents most recent data available.
113
Function/Program
Riverside County Transportation Commission
Full-time Equivalent Employees by Function/Program
Last Ten Fiscal Years
As of June 30
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Management services and administration 19.2 17.1 14.7 16.2 13.8 14.1 13.9 12.7 8.9 12.7
Planning and programming 4.2 4.9 6.2 6.1 5.9 4.9 5.1 5.2 5.5 5.1
Rail operations and maintenance 4.1 4.3 4.5 4.0 3.1 2.9 3.3 3.1 3.3 2.9
Specialized transit/transportation 2.4 2.7 2.3 2.3 3.4 2.5 2.5 2.6 2.6 2.2
Commuter assistance 1.7 1.4 1.8 3.0 1.7 1.8 1.6 1.6 1.8 1.2
Motorist assistance 0.9 0.8 0.7 0.7 0.9 0.9 1.2 0.9 0.7 0.8
Capital project development and delivery 15.5 15.8 15.8 13.7 15.2 13.9 12.3 11.9 14.2 11.1
Total full-time equivalents
Source: Finance Department
48.0 47.0 46.0 46.0 44.0 41.0 40.0 38.0 37.0 36.0
114
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County Transportation Commission
Operating Indicators
Last Ten Fiscal Years
As of June 30
2018
2017 2016 2015 2014
Toll operations:
Gross trips 14,518,302 4,049,067
Gross potential revenue $ 47,941,733 $ 9,618,429
Average gross potential revenue per trip $ 3.30 $ 2.38
Commuter rail operations:
Growth of average daily ridership on commuter lines:
Riverside line 3,863 4,050 4,404 4,651 4,715
IEOC line 4,874 4,900 4,438 4,613 4,522
91line 3,109 3,258 2,610 2,419 2,340
Farebox recovery ratio:
Riverside line N/A 47.2% 45.7% 49.6% 50.9%
IEOC line N/A 31.8% 33.4% 32.6% 37.6%
91line N/A 26.5% 27.7% 38.6% 51.3%
Specialized transit/transportation:
Specialized transit grants awarded 16 17 17 20 22
Commuter assistance:
Club Ride members N/A N/A N/A N/A N/A
Rideshare Incentive members 573 505 597 736 1,106
Rideshare Plus Rewards members 1,114 792 1,142 3,723 5,770
Incoming 1-866-RIDESHARE telephone calls 6,287 5,227 5,026 1,797 2,625
Rideshare Connection bulletins produced N/A N/A N/A 8 10
Rideguides produced 4,606 5,219 8,607 6,527 10,059
Commuter Exchange events N/A N/A N/A 48 54
Motorist assistance:
Call boxes 241 240 545 549 570
Calls made from call boxes 1,598 2,161 3,053 3,882 4,685
Contracted Freeway Service Patrol vehicles 20 20 21 21 21
Assists by Freeway Service Patrol 41,417 40,180 36,711 42,471 44,278
1E511 web visits 408,021 618,130 473,462 452,713 443,359
1E511 call volumes 142,287 201,099 233,895 263,757 306,108
Transportation Uniform Mitigation Fee program:
Approved regional arterial projects
20 20 24 24
24
Measure A program:
Highways $ 180,565,301 $ 250,360,723 $ 372,657,029 $ 325,128,109 $ 299,398,122
Commuter rail 14,118,997 8,528,984 75,831,961 98,302,229 56,148,017
Regional arterials 6,158,736 14,739,703 17,090,247 5,012,254 1,441
Local streets and roads 53,639,698 51,864,011 49,826,564 48,615,815 46,677,580
Specialized transit and commuter assistance 15,197,859 13,826,624 14,499,642 14,063,310 13,378,223
Total program expenditures $ 269,680,591 $ 339,320,045 $ 529,905,443 $ 491,121,717 $ 415,603,383
Source: Commission Departments
116
Riverside County Transportation Commission
Operating Indicators, Continued
Last Ten Fiscal Years
Toll operations:
Gross trips
Gross potential revenue
Average gross potential revenue per trip
Commuter rail operations:
Growth of average daily ridership on commuter lines:
Riverside line
IEOC line
91 line
Farebox recovery ratio:
Riverside line
IEOC line
91 line
Specialized transit/transportation:
Specialized transit grants awarded
As of June 30
2013 2012 2011 2010 2009
4,911 5,279
4,317 4,142
2,407 2,254
57.0% 58.5%
34.9% 31.3%
42.2% 49.7%
22 21
5,177
3,855
2,289
59.8%
31.1%
54.6%
5,124
4,011
2,205
52.5%
28.3%
49.3%
5,269
4,611
2,344
51.0%
37.3%
53.0%
22 22 22
Commuter assistance:
Club Ride members N/A N/A N/A N/A 7,378
Rideshare Incentive members 926 1,056 1,061 1,131 N/A
Rideshare Plus Rewards members 6,786 4,848 5,518 7,080 N/A
Incoming 1-866-RIDESHARE telephone calls 2,527 1,531 1,257 2,145 2,423
Rideshare Connection bulletins produced 13 11 13 N/A N/A
Rideguides produced 14,813 15,628 29,052 43,319 34,940
Commuter Exchange events 55 52 52 50 73
Motorist assistance:
Call boxes 580 594 613 614 614
Calls made from call boxes 5,337 5,043 5,251 5,934 6,574
Contracted Freeway Service Patrol vehicles 21 21 22 22 20
Assists by Freeway Service Patrol 43,633 42,748 45,751 48,312 43,119
1E511 web visits 399,730 341,716 244,277 N/A N/A
1E511 call volumes 351,161 362,957 489,036 N/A N/A
Transportation Uniform Mitigation Fee program:
Approved regional arterial projects 24 24 24 24 24
Measure A program:
Highways $118,750,336 $ 111,049,502 $ 75,011,698 $ 45,698,211 $ 165,100,551
Commuter rail 15,895,661 19,690,126 22,632,065 20,312,056 32,089,238
Regional arterials 1,787 124 8,638,637 11,920,846 12,645,090
Local streets and roads 44,594,891 40,127,890 36,856,925 34,258,313 45,661,155
Specialized transit and commuter assistance 11,927,634 11,930,437 11,262,588 10,161,780 9,838,990
Total program expenditures $ 191,170,309 $ 182,798,079 $ 154,401,913 $ 122,351,206 $ 265,335,024
Source: Commission Departments
117
Riverside County Transportation Commission
Capital Asset Statistics by Program
Last Ten Fiscal Years
As of June 30
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Commuter rail:
Transit centers owned and managed 1 1 1 1 1 1 1 -
Commuter rail stations owned and managed 9 9 9 5 5 5 5 5 5 5
Miles of commuter rail easements 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6
Commuter Assistance:
Commuter Exchange Vehicle
Toll operations:
Storage and maintenance building 1 1
Toll utility buildings 3 3
Regional operations center buildings 2 2
Miles of express lanes 36 36
Toll collection system 1 1
On -road closed circuit TV cameras 36 36
Traffic operations center system 1 1
Communications network 1 1
Changeable message signs 8 8
Source: Commission Departments
118
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
ATTACHMENT 2
Local Transportation Fund of the County of
Riverside, as Administered by the Riverside
County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2018
Certified
Public
Accountants
19
Contents
Independent Auditor's Report
1-2
Financial Statements
Balance Sheet 3
Statement of Revenues, Expenditures and Change in Fund Balance 4
Notes to Financial Statements 5-7
Supplementary Information
Schedule of Allocations and Disbursements
Schedule of Unclaimed Apportionments (Article 3)
Schedule of Unclaimed Apportionments (Articles 4 and 8)
8
9
10
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards
11-12
20
21
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Local Transportation Fund (the Fund) of
the County of Riverside, as administered by the Riverside County Transportation Commission (the
Commission), as of and for the year ended June 30, 2018, and the related notes to the financial statements,
which collectively comprise the Fund's financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the Fund's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control related to the Fund. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Fund of the County of Riverside, as administered by the Commission,
as of June 30, 2018 and the respective changes in financial position for the year then ended, in accordance
with accounting principles generally accepted in the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
22
www.mgocpa.com
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not,
present fairly the financial position of the Commission or the County of Riverside, California, as of June 30,
2018, and the changes in financial position for the year then ended, in accordance with accounting
principles generally accepted in the United States of America. Our opinion is not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the financial statements.
Such missing information, although not a part of the financial statements, is required by the Governmental
Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the
financial statements in an appropriate operational, economic or historical context. Our opinion on the
financial statements is not affected by this missing information.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Fund's financial statements. The schedules listed in the table of contents as supplementary
information are presented for purposes of additional analysis and are not a required part of the financial
statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in
all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 30,
2018 on our consideration of the Commission's internal control over the Fund's financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Commission's internal control over financial reporting or on compliance related to the
Fund. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Commission's internal control over the Fund's financial reporting and
compliance.
gint ceiljtei ll)
Newport Beach, California
October 30, 2018
2
23
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Balance Sheet
June 30, 2018
Assets
Cash and investments in Riverside County Pooled Investment Fund
Accounts receivable
Due from other Commission funds
Interest receivable
Total assets
Liabilities and Fund Balance
$ 94, 736, 015
14,928,400
616,600
368,480
$ 110, 649, 495
Liabilities:
Accounts payable $ 213,641
Restricted:
Unapportioned Local Transportation Funds
Rail and bus transit and local streets and roads apportionments
Bicycle and pedestrian projects
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
8,515,958
94,354,890
7,565,006
110, 435, 854
$ 110,649,495
3
24
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Statement of Revenues, Expenditures and Change in Fund Balance
Year Ended June 30, 2018
Revenues:
Sales taxes $ 89,557,646
Other reimbursements 185
Interest 825,116
Total revenues 90,382,947
Expenditures:
Bicycle and pedestrian projects 1,142,306
Transit 89, 399,168
Planning, programming, and administration 4,580,900
Total expenditures 95,122,374
Net change in fund balance (4,739,427)
Fund balance, beginning of year 115,175,281
Fund balance, end of year $ 110,435,854
See Notes to Financial Statements.
4
25
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Significant Accounting Policies
The Riverside County Transportation Commission (the Commission), in its capacity as the transportation
planning agency for the County of Riverside, California (the County), is responsible for administering funds
provided through the Local Transportation Fund (the Fund), which was created in accordance with the
provisions of the Transportation Development Act of 1971. The significant revenue to the Fund is derived
from 0.25 percent of the 8.25 percent statewide sales tax collected in the County by the State Board of
Equalization (State).
The accounting policies of the Fund conform to accounting principles generally accepted in the United
States as applicable to governmental units.
Presentation: The accompanying financial statements of the Fund are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to,
and do not, present fairly the financial position of the Commission as of June 30, 2018 and the changes in
its financial position for the year then ended, in conformity with accounting principles generally accepted in
the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting and current resources measurement focus is followed in the Fund. Under this method
of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available.
"Measurable" means the amount of the transaction can be determined, and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period. For
this purpose, the Commission considers revenues to be available if they are collected within 180 days of
the end of the current fiscal period. Those revenues susceptible to accrual include sales taxes collected
and held by the State at year-end on behalf of the Commission and interest revenue.
Funding: There is a three -step process for obtaining funds from the Fund: apportionment, allocation and
payment. Annually, the Commission determines each area's share of the anticipated Fund. This share is
the area apportionment. Once funds are apportioned to a given area, they are typically available only for
allocation to claimants in that area. Allocation is the discretionary action by the Commission that designates
funds for a specific claimant for a specific purpose. Payment is authorized by disbursement instructions
issued by the Commission.
Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment
Fund (RCPIF), as legally required, until the funds are required for disbursement. Interest income is earned
while these funds are deposited.
Accounts receivable: Accounts receivable consist primarily of Fund sales tax revenues from the State on
all taxable sales within the County of Riverside, California through June 30, 2018.
Due from other Commission funds: Due from other Commission funds represents a receivable from the
Commission's General fund for a reduction in the allocation of administrative costs as of June 30, 2018.
Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not
paid by the Commission, to the appropriate transit operators by June 30, 2018.
5
26
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Significant Accounting Policies (Continued)
Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint
governing the use of the funds as set forth by enabling State legislation.
Expenditures: Expenditures represent disbursements to the Commission, Southern California Association
of Governments, cities, the County of Riverside and transit operators that have met the claimant eligibility
requirements to receive Fund allocations that are approved by the Commission, per various Public Utilities
Code Sections. All disbursements are to be used for transportation purposes.
Note 2. Cash and Investments with County Treasurer
The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's
investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices
and/or direct bids, when needed, from government dealers on some variable or floating rate items. The
pooled funds are not subject to level 1, 2 or 3 of the fair value hierarchy prescribed by Governmental
Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. An Investment
Oversight Committee has been established by the County, which acts as a regulator of the pool. As of June
30, 2018, the Commission had $94,736,015 invested in the RCPIF, with a weighted average maturity of
427 days. Additional information on investment types, fair value measurement and credit risk of the RCPIF
may be obtained from the County of Riverside Treasurer -Tax Collector located at 4080 Lemon Street, 4th
Floor, Riverside, California 92502 or by visiting the Treasurer -Tax Collector website at
www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2018, the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only requires credit
quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances
and certificates of deposit.
6
27
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 3. Fund Balance
The restricted fund balance represents the apportionments related to transit programs by geographic area,
bicycle and pedestrian projects, planning and programming, and unapportioned Local Transportation
Funds. For Western County transit programs, commuter rail and bus allocations are in accordance with the
Commission's policy.
At June 30, 2018, amounts in fund balance are restricted as follows:
Rail and bus transit and local streets and roads apportionments:
Western County:
Commuter rail:
Allocated and unclaimed
Apportioned and unallocated
Bus transit:
Allocated and unclaimed —City of Beaumont
Allocated and unclaimed —Riverside Transit Agency
Apportioned and unallocated
Total rail and bus transit —Western County
Coachella Valley:
Allocated and unclaimed
Apportioned and unallocated
Total bus transit —Coachella Valley
Palo Verde Valley:
Allocated and unclaimed —Transit
Apportioned and unallocated for transit and local streets and roads
Total bus transit and local streets and roads —Palo Verde Valley
Total for rail and bus transit and local streets and roads apportionments
$ 2,000,000
11,985,261
4,221
3,126, 866
65, 373,121
82, 489, 469
82,138
10, 649, 567
10,731,705
861,668
272,048
1,133,716
$ 94,354,890
Bicycle and pedestrian projects:
Allocated and unclaimed $ 6,196,138
Unallocated 1,368,868
Total for bicycle and pedestrian projects $ 7,565,006
Unapportioned Local Transportation Funds $ 8,515,958
Total fund balance $ 110,435,854
7
28
29
Supplementary Information
30
31
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Allocations and Disbursements
Year Ended June 30, 2018
Article 3
Planning, Programming
SB 821 Article 3 Article 4 and Administrative
(Allocations (Allocations
Allocations Disbursements (Reimbursement) Allocations Disbursements Returned) Allocations Disbursements Returned)
Expenditures:
City of Banning $ - $ - $
City of Beaumont 204,000 204,000
City of Coachella 2,200,000 -
City of Corona -
City of Desert Hot Springs 293,000
City of Eastvale 262,200 -
City of Hemet 75,000 75,000
City of Indio 306,148 -
Qty of Jurupa Valley 53,550
City of Lake Elsinore 749,015
City of La Quinta 199,500
City of Moreno Valley 49,000
City of Palm Desert 85,000
City of Palm Springs 409,450 348,296
City of Perris 68,731 68,731
City of Rancho Mirage 234,925
City of Riverside 504,115 287,879
City of San Jacinto 40,000
City of Temecula 132,300
City of Wildomar 868,400 158,400
County of Riverside:
Auditor/Controller
Road Department 1,437,000 -
Palo Verde Valley Transit Agency
Commission
Riverside Transit Agency
SCAG
Sunline Transit Agency
Totals
(Reimbursement / Unclaimed Amount
Allocations Disbursements Allocations
Returned)
$ 1,416,829 $ 1,416,829 $ $ - $ - $ $ 1,416,829 $ 1,416,829 $ - $
2,350,846 2,350,846 (52,994) 2,554,846 2,554,846 (52,994) (52,994)
- - - - - 2,200,000 - - 2,200,000
(173) 1,306,283 1,306,283 1,306,283 1,306,283 (173) (173)
- - 293,000 - - 293,000
262,200 - 262,200
- 75,000 75,000 - -
(12) 306,148 - (12) 306,136
53,550 - 53,550
749,015 749,015
199,500 199,500
49,000 49,000
85,000 85,000
409,450 348,296 61,154
68,731 68,731 -
- - - - - - - 234,925 - - 234,925
3,334,851 3,334,851 (28,278) 3,838,966 3,622,730 (28,278) 187,958
- 40,000 40,000
132,300 132,300
868,400 158,400 710,000
12,000 12,000 12,000 12,000
- 1,437,000 1,437,000
876,418 876,418 876,418 876,418
16,817,875 16,817,875 - 4,232,000 3,795,900 (436,100) 21,049,875 20,613,775 (436,100)
44,630,335 44,665,663 - - 44,630,335 44,665,663 - (35,328)
773, 000 773,000 773,000 773,000 - -
- 18,571,956 18,630,403 - - - - 18,571,956 18,630,403 - (58,447)
S 8,171.334 S 1.142,306 $ (185) $89,305,393 $ 89,399,168 $ (81,272) $ 5,017,000 $ 4,580,900 S (436.100) $ 102,493,727 $ 95,122,374 $ (517,557) $ 6,853,796
8
32
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Unclaimed Apportionments (Article 3)
Year Ended June 30, 2018
Unclaimed Unclaimed
Apportionment Interest Apportionment
July 1, 2017 Apportionment Reimbursements Disbursements Allocations June 30, 2018
Bicycle and pedestrian projects $ 6,682,584 $ 1,960,000 $ 185 $ 1,142,306 $ 64,543 $ 7,565,006
9
33
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Unclaimed Apportionments (Articles 4 and 8)
Year Ended June 30, 2018
Fiscal Year 2017/18
Prior Fiscal Year
Apportionment
Amounts
Claimed
Amounts
Returned Apportionment Apportionment Gaimed
Unclaimed
Amounts
Amount
Returned
Total
Unclaimed
Apportionment
Apportionment Allocation June 30, 2018
Unclaimed Interest
Western County:
Rail
Bus
Coachella Valley
Palo Verde Valley:
Transit
Unallocated
Total transportation
$ 15,130,000 $16,817,875 $
53,641,000 53,039,144
16,715,000 18,571,956
936,000 876,418
$ (1,687,875) $ 15,570,881 $
$ - $ 15,570,881 $ 102,255 $ 13,985,261
601,856 67,298,623 35,328 81,272 67,344,567 557,785 68,504,208
(1,856,956) 12,556,248 58,447 12,497,801 90,860 10,731,705
59,582 794,734
269,727
794,734 7,352 861,668
269,727 2,321 272,048
86,422,000 89,305,393
(2,883,393) 96,490,213 93,775
81,272 96,477,710 760,573 94,354,890
Auditor/Controller 12,000 12,000 - - - -
Commission administration 1,142,000 705,900 436,100 - -
Commission planning 3,090,000 3,090,000 - - -
SCAG planning 773,000 773,000 -
Total administration
and planning 5,017,000 4,580,900 436,100
Total apportionm e nts $ 91,439,000 $93,886,293 $ 436,100 $(2,883,393) $96,490,213 $ 93,775 $ 81,272 $96,477,710 $760,573 $ 94,354,890
10
34
35
Certified
Public
Accountants
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance With
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the Local Transportation
Fund (the Fund) of the County of Riverside, as administered by the Riverside County Transportation
Commission (the Commission), as of and for the year ended June 30, 2018, and the related notes to the
financial statements, and have issued our report thereon dated October 30, 2018. Our report includes an
emphasis of matter paragraph indicating that the financial statements present only the Fund and do not
purport to, and do not, present fairly the financial position of the Commission as of June 30, 2018, and the
changes in its financial position for the year ended in accordance with accounting principles generally
accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal
control over the Fund's financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control
related to the Fund. Accordingly, we do not express an opinion on the effectiveness of the Commission's
internal control related to the Fund.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Fund's
financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
11
36
www.mgocpa.com
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance as it relates to the Fund. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Commission's internal
control and compliance related to the Fund. Accordingly, this communication is not suitable for any other
purpose.
aft o4S gitt.t/0Mg
i
Newport Beach, California
October 30, 2018
12
37
ATTACHMENT 3
State Transit Assistance Fund of the County of
Riverside, as Administered by the Riverside
County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2018
Certified
Public
Accountants
39
Contents
Independent Auditor's Report
1-2
Financial Statements
Balance Sheet
Statement of Revenues, Expenditures and Change in Fund Balance
Notes to Financial Statements
3
4
5-7
Supplementary Information
Schedule of Allocations and Disbursements Approved During the Year 8
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards
9-10
40
41
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Financial Statements
We have audited the accompanying financial statements of the State Transit Assistance Fund (the Fund)
of the County of Riverside, as administered by the Riverside County Transportation Commission (the
Commission), as of and for the year ended June 30, 2018, and the related notes to the financial statements,
which collectively comprise the Fund's financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the Fund's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control related to the Fund. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Fund of the County of Riverside, as administered by the Commission,
as of June 30, 2018, and the respective changes in financial position for the year then ended, in accordance
with accounting principles generally accepted in the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
42
www.mgocpa.com
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not,
present fairly the financial position of the Commission or the County of Riverside, California, as of June 30,
2018, and the changes in financial position for the year then ended, in accordance with accounting
principles generally accepted in the United States of America. Our opinion is not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the financial statements.
Such missing information, although not a part of the financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
financial statements in an appropriate operational, economic or historical context. Our opinion on the
financial statements is not affected by this missing information.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Fund's financial statements. The schedule listed in the table of contents as supplementary
information is presented for purposes of additional analysis and is not a required part of the financial
statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in
all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 30,
2018 on our consideration of the Commission's internal control over the Fund's financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Commission's internal control over financial reporting or on compliance related to the
Fund. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Commission's internal control over the Fund's financial reporting and
compliance.
a da-S gilt( ��C�Q�1.eif 1
i
Newport Beach, California
October 30, 2018
2
43
State Transit Assistance Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Balance Sheet
June 30, 2018
Assets
Cash and investments
Accounts receivable
Interest receivable
Total assets
Liabilities and Fund Balance
$ 83,044,463
5,584,017
307,971
$ 88,936,451
Liabilities
Accounts payable
Due to other Commission funds
Total liabilities
Fund Balance
Restricted allocations available for programming
Restricted for unclaimed allocations
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
$ 528,410
264,700
793,110
64,361,812
23, 781, 529
88,143, 341
$ 88,936,451
3
44
State Transit Assistance Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Statement of Revenues, Expenditures and Change in Fund Balance
Year Ended June 30, 2018
Revenues:
Sales taxes $ 17,608,016
Interest 634,536
Total revenues 18,242,552
Expenditures:
Transit
Excess of revenues over (under) expenditures
Other financing sources (uses):
Transfers to the Commission
Total other financing sources (uses)
5,429,243
12, 813, 309
(102, 800)
Net change in fund balance 12,710,509
Fund balance, beginning of year 75,432,832
Fund balance, end of year $ 88,143,341
See Notes to Financial Statements.
4
45
State Transit Assistance Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Significant Accounting Policies
The Riverside County Transportation Commission (the Commission), in its capacity as the transportation
planning agency for the County of Riverside, California (the County), is responsible for administering funds
provided through the State Transit Assistance Program, which was created in 1979 under Chapter 161 (SB
620) of the California statutes to provide a second source of Transportation Development Act funding for
the development of transit systems. The funds are derived from fuel sales tax revenue and are budgeted
through legislation and appropriated to the State Controller's Office (the State) for allocation to local
agencies.
The accounting policies of the State Transit Assistance Fund (the Fund) conform to accounting principles
generally accepted in the United States as applicable to governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the Fund are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to,
and do not, present fairly the financial position of the Commission as of June 30, 2018 and the changes in
its financial position for the year then ended, in conformity with accounting principles generally accepted in
the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting and current resources measurement focus is followed in the Fund. Under this method
of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available.
"Measurable" means the amount of the transaction can be determined, and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period. For
this purpose, the Commission considers revenues to be available if they are collected within 180 days of
the end of the fiscal year. Those revenues susceptible to accrual include fuel sales tax revenue and interest
revenue.
Allocations to local agencies: State transit assistance funds are allocated to the operators within the
County. Public Utilities Code (PUC) Section 99313 allocates funds to regional transportation planning
agencies based on the ratio of area population to state population. PUC Section 99314 allocates funds to
public operators based on their share of fares and local support to other operators in the state. The
allocations must be made in a resolution adopted by the Commission.
Cash and investments: It is the Commission's policy to deposit all funds received in the Riverside County
Pooled Investment Fund (RCPIF) or US Bank for investment until the funds are required for disbursement.
Interest income is earned while these funds are deposited.
Accounts receivable: Accounts receivable consist primarily of fuel sales tax revenues from the State of
California not received as of June 30, 2018.
5
46
State Transit Assistance Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Significant Accounting Policies (Continued)
Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint
governing the use of the funds as set forth by enabling State legislation. The restricted fund balance for
allocations available for programming represents amounts apportioned but not allocated to claimants. The
restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due
to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to
the Commission as of June 30, 2018.
Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not
paid by the Commission, to the appropriate transit operators by June 30, 2018.
Expenditures: Expenditures represent funds disbursed to transit operators that have met the eligibility
requirements to receive State Transit Assistance Program funds per PUC Sections 99313 and 99314. All
disbursements are to be used for transit purposes.
Note 2. Cash and Investments
Cash and investments at June 30, 2018 consist of the following:
Cash and investments with RCPIF
Commission operating investment pool
Cash in bank
$ 72, 701, 994
10,199, 728
142,741
$ 83,044,463
The funds in the County Treasury are pooled with those of other entities in the RCPIF and invested in
accordance with the County's investment policy. The funds with the custodian are pooled with those of
other Commission operating funds and invested in accordance with the Commission's investment
policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or
direct bids, when needed, from government dealers on some variable or floating rate items. The pooled
funds are not subject to level 1, 2 or 3 of the fair value hierarchy prescribed by Governmental Accounting
Standards Board Statement No. 72, Fair Value Measurement and Application. The Commission is a
voluntary participant in the RCPIF. An Investment Oversight Committee has been established by the
County, which acts as a regulator of the RCPIF. As of June 30, 2018, the Fund had $72,701,994 invested
in the RCPIF, with a weighted average maturity of 427 days, and $10,199,728 invested in the Commission
operating investment pool. Additional information on investment types, fair value measurement and credit
risk of the RCPIF and the Commission operating investment pool may be obtained from the County of
Riverside Treasurer -Tax Collector located at 4080 Lemon Street, 4th Floor, Riverside, California 92502 or
by visiting the Treasurer -Tax Collector website at www.countytreasurer.org. and the notes to the
Commission's basic financial statements included in the Commission's Comprehensive Annual Financial
Report, respectively.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2018, the Commission's investment in its operating investment pool is not rated
and in the RCPIF was rated Aaa/bf by Moody's Investors Service and AAAf/S1 by Fitch Ratings. The
Commission's investment policy only requires credit quality ratings for repurchase agreements, U.S.
corporate debt, commercial paper, bankers' acceptances and certificates of deposit.
6
47
State Transit Assistance Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 3. Fund Balance
At June 30, 2018, amounts are restricted for apportioned and unallocated amounts and for unpaid
allocations by geographic area. For Western County transit programs, commuter rail and bus allocations
are in accordance with the Commission's policy.
Restricted for allocations available for programming:
Western County:
Commuter rail $ 22,298,020
Bus 39, 907,169
Coachella Valley:
Bus 2,051,934
Palo Verde Valley 104,689
64, 361, 812
Restricted for unclaimed allocations:
Western County:
City of Banning 324,506
City of Beaumont 1,693,431
City of Corona 1,301,586
City of Riverside 255,690
Riverside Transit Agency 6,093,543
Coachella Valley:
SunLine Transit Agency 14,094,513
Rail (30, 809)
Palo Verde Valley:
Palo Verde Valley Transit Agency 49,069
23, 781, 529
Total fund balance $ 88,143,341
7
48
49
Supplementary Information
50
51
State Transit Assistance Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Allocations and Disbursements Approved During the Year
Year Ended June 30, 2018
Recipient
California
Code of
Regulations
Current Year Amount Section No.
Allocation Disbursed Reference
Western County:
City of Banning $ 110,000 $ 21,550 6731
City of Beaumont 300,000 117,016 6731
City of Riverside - 23 6731
Riverside Transit Agency 1,245,576 2,936,764 6730
Total Western County 1,655,576 3,075,353
Coachella Valley:
SunLine Transit Agency 3,450,718 1,996,420 6730
Rail Program 226,800 226,800 6730
Total Coachella Valley 3,677,518 2,223,220
Palo Verde Valley Transit Agency 115,000
114,128 6730
Other - 16,542
$ 5,448,094 $ 5,429,243
8
52
53
Certified
Public
Accountants
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance With
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the State Transit
Assistance Fund (the Fund) of the County of Riverside, as administered by the Riverside County
Transportation Commission (the Commission), as of and for the year ended June 30, 2018, and the related
notes to the financial statements, and have issued our report thereon dated October 30, 2018. Our report
includes an emphasis of matter paragraph indicating that the financial statements present only the Fund
and do not purport to, and do not, present fairly the financial position of the Commission as of June 30,
2018, and the changes in its financial position for the year ended in accordance with accounting principles
generally accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal
control over the Fund's financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control
related to the Fund. Accordingly, we do not express an opinion on the effectiveness of the Commission's
internal control related to the Fund.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Fund's
financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
9
54
www.mgocpa.com
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance as it relates to the Fund. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Commission's internal
control and compliance related to the Fund. Accordingly, this communication is not suitable for any other
purpose.
ac,as gikr 6" OCeNtell AP
Newport Beach, California
October 30, 2018
10
55
ATTACHMENT 4
State of Good Repair Fund of the County of
Riverside, as Administered by the Riverside
County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2018
Certified
Public
Accountants
57
Contents
Independent Auditor's Report
1-2
Financial Statements
Balance Sheet
Statement of Revenues, Expenditures and Change in Fund Balance
Notes to Financial Statements
3
4
5-7
Supplementary Information
Schedule of Allocations and Disbursements Approved During the Year 8
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards
9-10
58
59
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Financial Statements
We have audited the accompanying financial statements of the State of Good Repair Fund (the Fund) of
the County of Riverside, as administered by the Riverside County Transportation Commission (the
Commission), as of and for the year ended June 30, 2018, and the related notes to the financial statements,
which collectively comprise the Fund's financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the Fund's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control related to the Fund. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Fund of the County of Riverside, as administered by the Commission,
as of June 30, 2018, and the respective changes in financial position for the year then ended, in accordance
with accounting principles generally accepted in the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
60
www.mgocpa.com
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not,
present fairly the financial position of the Commission or the County of Riverside, California, as of June 30,
2018, and the changes in financial position for the year then ended, in accordance with accounting
principles generally accepted in the United States of America. Our opinion is not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the financial statements.
Such missing information, although not a part of the financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
financial statements in an appropriate operational, economic or historical context. Our opinion on the
financial statements is not affected by this missing information.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Fund's financial statements. The schedule listed in the table of contents as supplementary
information is presented for purposes of additional analysis and is not a required part of the financial
statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in
all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 30,
2018 on our consideration of the Commission's internal control over the Fund's financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Commission's internal control over financial reporting or on compliance related to the
Fund. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Commission's internal control over the Fund's financial reporting and
compliance.
a da-S gilt( ��C�Q�1.eif 1
i
Newport Beach, California
October 30, 2018
2
61
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Balance Sheet
June 30, 2018
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities and Fund Balance
$ 2,461,760
1,237,632
$ 3,699,392
Fund Balance
Restricted allocations available for programming
Restricted for unclaimed allocations
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
3,169, 419
529,973
3,699,392
$ 3,699,392
3
62
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Statement of Revenues, Expenditures and Change in Fund Balance
Year Ended June 30, 2018
Revenues:
Sales taxes
Investment income (loss)
Total revenues
Net change in fund balance
Fund balance, beginning of year
$ 3,712,895
(13, 503)
3,699,392
3,699,392
Fund balance, end of year $ 3,699,392
See Notes to Financial Statements.
4
63
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Significant Accounting Policies
The Riverside County Transportation Commission (the Commission), in its capacity as the transportation
planning agency for the County of Riverside, California (the County), is responsible for administering funds
provided through the State of Good Repair Program, which was created in 2017 under Chapter 5, (SB 1)
of the California statutes to provide additional revenues for transit infrastructure repair and service
improvements. The funds are derived from fuel sales tax and vehicle fee revenues and are budgeted
through legislation and appropriated to the State Controller's Office (the State) for allocation to local
agencies based on the State Transit Assistance formula.
The accounting policies of the State of Good Repair Fund (the Fund) conform to accounting principles
generally accepted in the United States as applicable to governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the Fund are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to,
and do not, present fairly the financial position of the Commission as of June 30, 2018 and the changes in
its financial position for the year then ended, in conformity with accounting principles generally accepted in
the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting and current resources measurement focus is followed in the Fund. Under this method
of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available.
"Measurable" means the amount of the transaction can be determined, and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period. For
this purpose, the Commission considers revenues to be available if they are collected within 180 days of
the end of the fiscal year. Those revenues susceptible to accrual include fuel sales tax, vehicle fee, and
interest revenue.
Allocations to local agencies: State of Good Repair funds are allocated to the operators within the
County. Public Utilities Code (PUC) Section 99313 allocates funds to regional transportation planning
agencies based on the ratio of area population to state population. PUC Section 99314 allocates funds to
public operators based on their share of fares and local support to other operators in the state. The
allocations must be made in a resolution adopted by the Commission.
Cash and investments: It is the Commission's policy to deposit all funds received in the Riverside County
Pooled Investment Fund (RCPIF) for investment until the funds are required for disbursement. Interest
income is earned while these funds are deposited.
Accounts receivable: Accounts receivable consist primarily of fuel sales tax and vehicle fee revenues
from the State of California not received as of June 30, 2018.
5
64
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Significant Accounting Policies (Continued)
Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint
governing the use of the funds as set forth by enabling State legislation. The restricted fund balance for
allocations available for programming represents amounts apportioned but not allocated to claimants. The
restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due
to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to
the Commission as of June 30, 2018.
Expenditures: Expenditures represent funds disbursed to transit operators that have met the eligibility
requirements to receive State of Good Repair Program funds per PUC Sections 99313 and 99314. All
disbursements are to be used for transit purposes. There were no expenditures incurred for the year ended
June 30, 2018.
Note 2. Cash and Investments
Cash and investments at June 30, 2018 consist of the following:
Cash and investments with RCPIF
Cash in bank
$ 2,436,760
25,000
$ 2,461,760
The funds in the County Treasury are pooled with those of other entities in the RCPIF and invested in
accordance with the County's investment policy. The funds with the custodian are pooled with those of
other Commission operating funds and invested in accordance with the Commission's investment
policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or
direct bids, when needed, from government dealers on some variable or floating rate items. The pooled
funds are not subject to level 1, 2 or 3 of the fair value hierarchy prescribed by Governmental Accounting
Standards Board Statement No. 72, Fair Value Measurement and Application. The Commission is a
voluntary participant in the RCPIF. An Investment Oversight Committee has been established by the
County, which acts as a regulator of the RCPIF. As of June 30, 2018, the Fund had $2,436,760 invested in
the RCPIF, with a weighted average maturity of 427 days. Additional information on investment types, fair
value measurement and credit risk of the RCPIF may be obtained from the County of Riverside Treasurer -
Tax Collector located at 4080 Lemon Street, 4th Floor, Riverside, California 92502 or by visiting the
Treasurer -Tax Collector website at www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2018, the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only requires credit
quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances
and certificates of deposit.
6
65
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 3. Fund Balance
At June 30, 2018, amounts are restricted for apportioned and unallocated amounts and for unpaid
allocations by geographic area. For Western County transit programs, commuter rail and bus allocations
are in accordance with the Commission's policy.
Restricted for allocations available for programming:
Western County:
Commuter rail $ 554,889
Bus 1,967,334
Coachella Valley 612,966
Palo Verde Valley 34,230
Restricted for unclaimed allocations:
Western County:
Commuter rail
City of Banning
City of Beaumont
City of Corona
City of Riverside
Riverside Transit Agency
Coachella Valley:
SunLine Transit Agency
Palo Verde Valley:
Palo Verde Valley Transit Agency
3,169,419
197,812
2,328
19,122
4,848
3,995
159,505
141,155
1,208
529,973
Total fund balance $ 3,699,392
7
66
67
Supplementary Information
68
69
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Allocations and Disbursements Approved During the Year
Year Ended June 30, 2018
Recipient
California
Code of
Regulations
Current Year Amount Section No.
Allocation Disbursed Reference
Western County:
City of Banning $ 2,325 $ 6731
City of Beaumont 19,093 6731
City of Corona 4,841 6731
City of Riverside 3,989 6731
Riverside Transit Agency 159,264 6730
Western County Bus 1,966,201 6731
Commission Commuter Rail Program 752,084 6730
Total Western County 2,907,797
SunLine Transit Agency 753,623 6730
Palo Verde Valley Transit Agency 35,510 6730
$ 3,696,930 $
8
70
71
Certified
Public
Accountants
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance With
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the State of Good Repair
Fund (the Fund) of the County of Riverside, as administered by the Riverside County Transportation
Commission (the Commission), as of and for the year ended June 30, 2018, and the related notes to the
financial statements, and have issued our report thereon dated October 30, 2018. Our report includes an
emphasis of matter paragraph indicating that the financial statements present only the Fund and do not
purport to, and do not, present fairly the financial position of the Commission as of June 30, 2018, and the
changes in its financial position for the year ended in accordance with accounting principles generally
accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal
control over the Fund's financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control
related to the Fund. Accordingly, we do not express an opinion on the effectiveness of the Commission's
internal control related to the Fund.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Fund's
financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
9
72
www.mgocpa.com
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance as it relates to the Fund. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Commission's internal
control and compliance related to the Fund. Accordingly, this communication is not suitable for any other
purpose.
ac,as gikr 6" OCeNtell AP
Newport Beach, California
October 30, 2018
10
73
ATTACHMENT 5
Proposition 1 B Rehabilitation, Safety and
Security Project Accounts, Accounts of the
Riverside County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2018
Certified
Public
Accountants
75
Contents
Independent Auditor's Report
1-2
Financial Statements
Balance Sheets
Statements of Revenues, Expenditures and Change in Fund Balance
Notes to Financial Statements
3
4
5-7
Supplementary Information
Combining Balance Sheets —By Project 8-9
Combining Statements of Revenues, Expenditures and Change in Account Fund
Balance —By Project 10-11
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards
12-13
76
77
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Proposition 1 B Rehabilitation, Safety and
Security Project Accounts (the Accounts), accounts of the Riverside County Transportation Commission
(the Commission), as of and for the years ended June 30, 2018 and 2017, and the related notes to the
financial statements, which collectively comprise the Accounts' financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted
our audits in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the Accounts' preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control related to the Accounts. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Accounts of the Commission as of June 30, 2018 and 2017, and the
respective changes in financial position for the years then ended, in accordance with accounting principles
generally accepted in the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
78
www.mgocpa.com
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Accounts and do not purport to, and do
not, present fairly the financial position of the Commission as of June 30, 2018 and 2017, and the changes
in financial position for the years then ended, in accordance with accounting principles generally accepted
in the United States of America. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the financial statements.
Such missing information, although not a part of the financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
financial statements in an appropriate operational, economic or historical context. Our opinion on the
financial statements is not affected by this missing information.
Other Information
Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Accounts' financial statements. The statements listed in the table of contents as
supplementary information are presented for purposes of additional analysis and are not a required part of
the financial statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audits of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in
all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our reports dated October 30,
2018 and October 27, 2017 on our consideration of the Commission's internal control over the Accounts'
financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of those reports is solely to describe the scope of
our testing of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the effectiveness of the Commission's internal control over the Accounts' financial
reporting or on compliance. Those reports are an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Commission's internal control over the Accounts'
financial reporting and compliance.
oi,otS glitt (ceN.ell ll)
Newport Beach, California
October 30, 2018
2
79
Proposition 1 B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Balance Sheets
June 30, 2018 and 2017
2018 2017
Assets PTMISEA CTSGP-CTAF Total PTMISEA CTSGP-CTAF Total
Cash and investments in Riverside County Pooled
Investment Fund $ 4,904,424 $ 176,132 $ 5,080,556 $6,569,885 $ 504,584 $ 7,074,469
Interest receivable 20,505 25 20,530 15,082 765 15,847
Total assets $ 4,924,929 $ 176,157 $ 5,101, 086 $ 6, 584, 967 $ 505,349 $ 7,090,316
Liabilities and Fund Balance
Liabilities
Accounts payable $ 13,450 $ $ 13,450 $ 28,847 $ 38,698 $ 67,545
Total liabilities 13,450 13,450 28,847 38,698 67,545
Fund Balance
Restricted:
Rail projects 4,911,479 176,157 5,087,636 6,556,120 466,651 7,022,771
Total fund balance 4,911,479 176,157 5,087,636 6,556,120 466,651 7,022,771
Total liabilities and fund balance $ 4,924,929 $ 176,157 $ 5,101,086 $6,584,967 $ 505,349 $ 7,090,316
See Notes to Financial Statements.
3
80
Proposition 1 B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Statements of Revenues, Expenditures and Change in Fund Balance
Years Ended June 30, 2018 and 2017
2018 2017
PTMISEA CTSGP-CTAF Total PTMISEA CTSGP-CTAF Total
Revenues:
State allocations
Interest
Total revenues
$ $ 284,654 $ 284,654 $ 76,408 $ 355,763 $ 432,171
76,774 1,929 78,703 54,885 3,445 58,330
76,774 286,583 363,357 131,293
359,208 490,501
Evenditures:
Rail 1,721,415 577,077 2,298,492 1,506,311 773,490 2,279,801
Net change in account fund balance
(1,644,641) (290,494) (1,935,135)
(1,375,018) (414,282) (1,789,300)
Fund balance, beginning of year 6,556,120 466,651 7,022,771 7,931,138 880,933 8,812,071
Fund balance, end of year $ 4,911,479 $ 176,157 $ 5,087,636 $ 6,556,120 $ 466,651 $ 7,022,771
See Notes to Financial Statements.
4
81
Proposition 1 B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Summary of Significant Accounting Policies
Nature of operations: On November 7, 2006, the voters of California approved the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1 B). Proposition 1 B included a state
program of funding in the amount of $4 billion and $1 billion to be deposited in the Public Transportation
Modernization, Improvement, and Service Enhancement Account (PTMISEA) and Transit System Safety,
Security, and Disaster Response Account (TSSSDRA), respectively. The California Transit Security Grant
Program —California Transit Assistance Fund (CTSGP-CTAF) is a TSSSDRA program. The PTMISEA
funds, which are administered by the California Department of Transportation (Ca!trans), and the CTSGP-
CTAF funds, which are administered by the California Emergency Management Agency (CaIEMA), are
made available to project sponsors in California for eligible public transportation projects and related
security and safety projects, respectively.
The Riverside County Transportation Commission (the Commission) owns and operates nine commuter
rail stations and a transit center in Riverside County (the County). As a project sponsor, the Commission
has applied for and obtained approval for PTMISEA and CTSGP-CTAF funds for various projects related
to its commuter rail stations. These funds are accounted for in the Measure A Western County Rail and
Coachella Valley Station Development Special Revenue Funds in project accounts (the Accounts). The
revenue to the Accounts is derived from allocations approved by the Controller of the State of California
(the Controller).
The accounting policies of the Commission conform to accounting principles generally accepted in the
United States of America as applicable to governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the Accounts are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the PTMISEA and CTSGP-CTAF Accounts of the
Commission. They do not purport to, and do not, present fairly the financial position of the Commission as
of June 30, 2018 and 2017 and the changes in its financial position for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting and current resources measurement focus is followed in the PTMISEA and CTSGP-
CTAF Accounts. Under this method of accounting, expenditures are recorded when they are expected to
be liquidated with expendable available resources, and revenue is recorded when it becomes both
measurable and available. "Measurable" means the amount of the transaction can be determined, and
"available" means collectible within the current period, or soon enough thereafter to be used to pay liabilities
of the current period. For this purpose, the Commission considers revenues to be available if they are
collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual
include PTMISEA and CTSGP-CTAF allocations and interest revenue.
For the year ended June 30, 2018, the Commission recognized revenue related to an allocation of $284,654
for the Station Security project. For the year ended June 30, 2017, the Commission recognized revenues
related to an allocation of $76,408 and $355,763 for the Station Rehabilitation and Station Security projects,
respectively.
5
82
Proposition 1 B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)
Funding: Project sponsors may submit applications for funding of eligible transit capital projects to Caltrans
or CaIEMA, which approve projects for funding related to PTMISEA and CTSGP-CTAF, respectively.
PTMISEA eligible projects include rehabilitation, safety or modernization improvements; capital service
enhancements or expansions; new capital projects; bus rapid transit improvements; and rolling stock
procurement, rehabilitation, expansion or replacement. CTSGP-CTAF eligible projects include capital
projects that provide increased protection against a security or safety threat; increase the capacity of transit
operators to prepare for disaster -response transportation systems to move people, goods, emergency
personnel and equipment in the aftermath of a disaster; and other allowable costs under California
Government Code 16727(a). The State Controller will disburse funds upon receipt of the approved
PTMISEA and CTSGP-CTAF projects. Funds must be encumbered within three years of receipt and must
be expended within three years of being encumbered.
Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment
Fund (RCPIF) for investment until the funds are required for disbursement. Interest income is earned while
these funds are so deposited.
Fund balance restrictions: The Accounts report restricted account fund balances to show the level of
constraint governing the use of the funds. Restricted account fund balances are restricted for specific
purposes by enabling legislation.
Expenditures: Expenditures represent rail capital projects as identified in PTMISEA and CTSGP-CTAF
applications submitted by the Commission.
For the year ended June 30, 2018, the Commission incurred qualifying expenditures of $1,721,415 for the
Station Rehabilitation project and $577,077 for the Station Security project, for a total of $2,298,492. For
the year ended June 30, 2017, the Commission incurred qualifying expenditures of $1,515,298 for the
Station Rehabilitation project, ($8,987) prior fiscal year accrual adjustments for the Coachella Valley Station
Development project, and $773,490 for the Station Security project, for a total of $2,279,801.
Note 2. Cash and Investments With County Treasurer
The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's
investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices
and/or direct bids, when needed, from government dealers on some variable or floating rate items. The
pooled funds are not subject to level 1, 2 or 3 of the fair value hierarchy prescribed by Governmental
Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. The Commission
is a voluntary participant in the pool. An Investment Oversight Committee has been established by the
County, which acts as a regulator of the pool.
6
83
Proposition 1 B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments With County Treasurer (Continued)
As of June 30, 2018 and 2017, the Account has $5,080,556 and $7,074,469, respectively, included in the
Commission's investment with the RCPIF, with a weighted average maturity of 427 days and 412 days,
respectively. Additional information on investment types, fair value measurement and credit risk of the
RCPIF may be obtained from the County of Riverside Treasurer -Tax Collector located at 4080 Lemon
Street, 4th Floor, Riverside, California 92502 or by visiting the Treasurer -Tax Collector website at
www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2018 the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings and as of June 30, 2017 the Commission's investment in
the RCPIF was rated Aaa/bf by Moody's Investors Service and AAA/V1 by Fitch Ratings. The
Commission's investment policy only requires credit quality ratings for repurchase agreements, U.S.
corporate debt, commercial paper, bankers' acceptances, and certificates of deposit.
7
84
85
Supplementary Information
86
87
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Combining Balance Sheet —By Project
June 30, 2018
Assets
Cash and investments in Riverside County
Pooled Investment Fund
Interest receivable
Total assets
Liabilities and Fund Balance
PTMISEA
Station
Rehabilitation
$ 2,175, 607
9,065
Coachella Valley
Station Development Total
$ 2,728,817 $ 4,904,424
11,440 20,505
$ 2,184, 672 $ 2,740,257 $ 4,924,929
Liabilities
Accounts payable
Total liabilities
Account Fund Balance
$ 13,450 $
CTSGP-CTAF
Station
Security
$ 176,132
25
Total
$ 5,080,556
20,530
$ 176,157 $ 5,101, 086
$ 13,450 $
13,450
13,450
Fund Balance
Restricted:
Rail projects
Total fund balance
Total liabilities and fund balance
2,171, 222
2,171, 222
$ 2,184, 672 $
2,740,257 4,911,479
2,740,257 4,911,479
2,740,257 $ 4,924,929
176,157
$ 13,450
13,450
5,087,636
176,157 5,087,636
$ 176,157 $ 5,101, 086
8
88
Proposition 1 B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Combining Balance Sheet —By Project, Continued
June 30, 2017
PTMI SEA CTSGP-CTAF
Station Coachella Valley Station
Assets Rehabilitation Station Development Total Security Total
Cash and investments in Riverside County
Pooled Investment Fund $ 3,872,405 $ 2,697,480 $ 6,569,885 $ 504,584 $ 7,074,469
Interest receivable 8,808 6,274 15,082 765 15,847
Total assets $ 3,881,213 $ 2,703,754 $ 6,584,967 $ 505,349 $ 7,090,316
Liabilities and Fund Balance
Liabilities
Accounts payable
Total liabilities
Fund Balance
Restricted:
Rail projects
Total fund balance
Total liabilities and fund balance
$ 28,847 $
$ 28,847 $ 38,698 $ 67,545
28,847 28,847
38,698 67,545
3,852,366 2,703,754 6,556,120 466,651 7,022,771
3,852,366 2,703,754 6,556,120 466,651 7,022,771
$ 3,881,213 $ 2,703,754 $ 6,584,967 $ 505,349 $ 7,090,316
9
89
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Combining Statement of Revenues, Expenditures and Change in Fund Balance —By Project
Year Ended June 30, 2018
PTMISEA CTSGP-CTAF
Station Coachella Valley Station
Rehabilitation Station Development Total Security
Total
Revenues:
State allocations $ - $ - $ - $ 284,654 $ 284,654
Interest 40,271 36,503 76,774 1,929 78,703
Total revenues 40,271 36,503 76,774 286,583 363,357
Expenditures:
Rail 1,721,415 1,721,415 577,077 2,298,492
Net change in fund balance (1,681,144) 36,503 (1,644,641) (290,494) (1,935,135)
Fund balance, beginning of year 3,852,366 2,703,754 6,556,120 466,651 7,022,771
Fund balance, end of year $ 2,171,222 $ 2,740,257 $ 4,911,479 $ 176,157 $ 5,087,636
10
90
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Combining Statement of Revenues, Expenditures and Change in Fund Balance —By Project, Continued
Year Ended June 30, 2017
PTMISEA CTSGP-CTAF
Station Coachella Valley Station
Rehabilitation Station Development Total Security
Revenues:
State allocations $ 76,408 $
Interest 34,414
20,471
Total
$ 76,408 $ 355,763 $ 432,171
54,885 3,445 58,330
Total revenues 110,822
20,471 131,293 359,208 490,501
Expenditures:
Rail 1,515,298 (8,987) 1,506,311 773,490 2,279,801
Net change in account fund balance (1,404,476) 29,458 (1,375,018) (414,282) (1,789,300)
Fund balance, beginning of year 5,256,842 2,674,296 7,931,138 880,933 8,812,071
Fund balance, end of year $ 3,852,366 $ 2,703,754 $ 6,556,120 $ 466,651 $ 7,022,771
11
91
Certified
Public
Accountants
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance With
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the Proposition 1 B
Rehabilitation, Safety and Security Project Accounts (the Accounts), accounts of the Riverside
Transportation Commission (the Commission), as of and for the year ended June 30, 2018, and the related
notes to the financial statements, and have issued our report thereon dated October 30, 2018. Our report
includes an emphasis of matter paragraph indicating that the financial statements present only the Accounts
and do not purport to, and do not, present fairly the financial position of the Commission as of June 30,
2018, and the changes in its financial position for the year ended in accordance with accounting principles
generally accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal
control over the Accounts' financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control
related to the Account. Accordingly, we do not express an opinion on the effectiveness of the Commission's
internal control related to the Account.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Accounts'
financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Accounts' financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
12
92
www.mgocpa.com
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance as it relates to the Accounts. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Commission's internal
control and compliance related to the Accounts. Accordingly, this communication is not suitable for any
other purpose.
aft o4S gitt.t/0Mg
i
Newport Beach, California
October 30, 2018
13
93
ATTACHMENT 6
Low Carbon Transit Operations Program
Account, an Account of the Riverside County
Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2018
Certified
Public
Accountants
95
Contents
Independent Auditor's Report
1-2
Financial Statements
Balance Sheets 3
Statements of Revenues, Expenditures and Change in Fund Balance 4
Notes to Financial Statements 5-6
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards
7-8
96
97
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Low Carbon Transit Operations Program
(LCTOP) Account, an Account of the Riverside County Transportation Commission (the Commission), as
of and for the years ended June 30, 2018 and 2017, and the related notes to the financial statements, as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted
our audits in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the LCTOP Account's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control over the LCTOP Account. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the LCTOP Account of the Commission as of June 30, 2018 and 2017 and
the respective changes in financial position for the years then ended, in accordance with accounting
principles generally accepted in the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
98
www.mgocpa.com
Emphasis of Matter
As discussed in Note 1, the financial statements present only the LCTOP Account and do not purport to,
and do not, present fairly the financial position of the Commission as of June 30, 2018 and 2017 and the
changes in its financial position for the years then ended, in accordance with accounting principles generally
accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 30,
2018 and October 27, 2017 on our consideration of the Commission's internal control over the LCTOP
Account's financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to describe the
scope of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the Commission's internal control over financial
reporting or on compliance related to the LCTOP Account. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Commission's internal
control over the LCTOP Account's financial reporting and compliance.
°LC,64-5 giti L 000MI l
Newport Beach, California
October 30, 2018
2
99
Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Balance Sheets
June 30, 2018 and 2017
2018 2017
Assets
Cash and investments in Riverside County Pooled
Investment Fund $ 397,753 $ 576,272
Interest receivable 1,668 914
Total assets $ 399,421 $ 577,186
Liabilities and Fund Balance
Liabilities
Accounts payable $ $ 8,117
Total liabilities 8,117
Fund Balance
Restricted:
Rail operations
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
399,421 569,069
$ 399,421 $ 569,069
$ 399,421 $ 577,186
Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Statements of Revenues, Expenditures and Change in Fund Balance
Years Ended June 30, 2018 and 2017
Revenues:
State allocations
Interest
Total revenues
2018 2017
$
5,823
$ 183,080
2,959
5,823 186,039
Expenditures:
Rail 175,471 138,600
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
See Notes to Financial Statements.
(169,648) 47,439
569,069 521,630
$ 399,421 $ 569,069
Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 1. Nature of Operations and Summary Significant Accounting Policies
Nature of Operations: In 2014, the California Legislature established Senate Bill 862 (SB 862), Low Carbon
Transit Operations Program (LCTOP), one of several programs that is part of the Transit, Affordable Housing, and
Sustainable Communities Program. LCTOP was created to provide operating and capital assistance for transit
agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged
communities. For agencies whose service area includes disadvantaged communities, at least 50 percent of the
total moneys received shall be expended on projects that will benefit disadvantaged communities.
The accounting policies of the Riverside County Transportation Commission (Commission) conform to accounting
principles generally accepted in the United States as applicable to governmental units.
A summary of the Commission's significant accounting policies is a follows:
Presentation: The accompanying financial statements of the LCTOP Account are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the Commission
that is attributable to the transactions of the LCTOP Account of the Commission. They do not purport to, and do
not, present fairly the financial position of the Commission as of June 30, 2018 and 2017 and the changes in its
financial position for the years then ended, in conformity with accounting principles generally accepted in the United
States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of
accounting and the current financial resources measurement focus is followed in the LCTOP Account. Under this
method of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available. "Measurable" means
the amount of the transaction can be determined, and "available" means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers
revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues
susceptible to accrual include LCTOP Account allocations and interest revenue.
For the years ended June 30, 2018 and 2017, the Commission recognized revenues related to an allocation of $0
and $183,080, respectively, for the Perris Valley Line station operations.
Funding: Project sponsors may submit expenditure proposals for funding of LCTOP to Caltrans and the California
Air Resources Board to determine compliance with the requirements of SB 862 and the LCTOP guidelines. Caltrans
submits a final list of approved expenditures to the State Controller's Office, and the approved amounts of funds
will be available for release, not to exceed 75 percent of each eligible recipient's share of the full appropriation, with
the remaining 25 percent available for release by fiscal year end.
Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment Fund
(RCPIF) for investment until the funds are required for disbursement. Interest income is earned while these funds
are deposited.
Fund balance restrictions: The LCTOP Account reports restricted account fund balance to show the level of
constraint governing the use of the funds. Restricted account fund balances are restricted for specific purposes by
third parties.
Expenditures: Expenditures represent rail operations as identified in the LCTOP application submitted by the
Commission for the years ended June 30, 2018 and 2017, the Commission incurred qualifying expenditures of
$175,471 and $138,600, respectively, for the Perris Valley Line station operations.
5
102
Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2018
Note 2. Cash and Investments with County Treasurer
The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's
investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or
direct bids, when needed, from government dealers on some variable or floating rate items. The pooled funds are
not subject to level 1, 2 or 3 of the fair value hierarchy prescribed by Governmental Accounting Standards Board
Statement No. 72, Fair Value Measurement and Application. The Commission is a voluntary participant in the pool.
An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. As
of June 30, 2018 and 2017, the LCTOP Account has $397,753 and $576,272, respectively, in the Commission's
investment with the RCPIF, with a weighted average maturity of 427 days and 412 days, respectively. Additional
information on investment types, fair value measurement and credit risk of the RCPIF may be obtained from the
County of Riverside Treasurer -Tax Collector located at 4080 Lemon Street, 4th Floor, Riverside, California 92502
or by visiting the Treasurer -Tax Collector website at www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to limits on
investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.
Credit risk: As of June 30, 2018 the Commission's investment in the RCPIF was rated Aaa/bf by Moody's Investors
Service and AAAf/S1 by Fitch Ratings and as of June 30, 2017 the Commission's investment in the RCPIF was
rated Aaa/bf by Moody's Investors Service and AAA/V1 by Fitch Ratings. The Commission's investment policy only
requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers'
acceptances, and certificates of deposit.
6
103
Certified
Public
Accountants
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance With
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the Low Carbon Transit
Operations Program (LCTOP) Account, account of the Riverside County Transportation Commission (the
Commission), as of and for the year ended June 30, 2018, and the related notes to the financial statements,
and have issued our report thereon dated October 30, 2018. Our report includes an emphasis of matter
indicating that the financial statements present only the LCTOP Account, and do not purport to, and do not,
present fairly the financial position of the Commission as of June 30, 2018 and the changes in its financial
position for the year then ended, in accordance with accounting principles generally accepted in the United
States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal
control over the LCTOP Account's financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control related to LCTOP Account. Accordingly, we do not express an opinion on the effectiveness
of the Commission's internal control related to the LCTOP Account.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the LCTOP
Account financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the LCTOP Account financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
7
104
www.mgocpa.com
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance as it relates to the LCTOP Account. This report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the Commission's
internal control and compliance related to the LCTOP Account. Accordingly, this communication is not
suitable for any other purpose.
ada-S ge ( 0)C6Mei i 4
i
Newport Beach, California
October 30, 2018
8
105
ATTACHMENT 7
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
Single Audit Reports
For the Year Ended June 30, 2018
Certified
Public
Accountants
107
Table of Contents
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance With
Government Auditing Standards
Independent Auditor's Report on Compliance for Each Major Program; Report on Internal Control
Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the
Uniform Guidance
1-2
3-4
Schedule of Expenditures of Federal Awards 5
Notes to Schedule of Expenditures of Federal Awards 6
Schedule of Findings and Questioned Costs 7-8
Summary Schedule of Prior Year Audit Findings 9
108
109
Certified
Public
Accountants
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance
With Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information of
the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30,
2018, and the related notes to the financial statements, which collectively comprise the Commission's basic
financial statements, and have issued our report thereon dated October 30, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly,
we do not express an opinion on the effectiveness of the Commission's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Commission's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Commission's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
110
www.mgocpa.com
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Commission's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
togs gliti 6 O'Conitell
Newport Beach, California
October 30, 2018
2
111
Certified
Public
Accountants
Independent Auditor's Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on Schedule
of Expenditures of Federal Awards Required by The Uniform Guidance
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on Compliance for Each Major Federal Program
We have audited the Riverside County Transportation Commission's (the Commission) compliance with
the types of compliance requirements described in the OMB Compliance Supplement that could have a
direct and material effect on each of the Commission's major federal programs for the year ended June 30,
2018. The Commission's major federal programs are identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the Commission's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted our
audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the Commission's
compliance with those requirements and performing such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the Commission's compliance.
Opinion on Each Major Federal Program
In our opinion, the Commission complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2018.
Report on Internal Control Over Compliance
Management of the Commission is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the Commission's internal control over compliance with the types
of requirements that could have a direct and material effect on each major federal program to determine
the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion
on compliance for each major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Commission's internal control over compliance.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
3
112
www.mgocpa.com
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type
of compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the Commission as of and for the year ended
June 30, 2018, and the related notes to the financial statements, which collectively comprise the
Commission's basic financial statements. We issued our report thereon dated October 30, 2018, which
contained unmodified opinions on those financial statements. The accompanying schedule of expenditures
of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and
is not a required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic
financial statements as a whole.
oLdas oce.el I 4)
i
Newport Beach, California
October 30, 2018
4
113
Riverside County Transportation Commission
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2018
Federal Grantor/Program or Cluster Title/Pass-Through Grantor
Catalog of
Federal
Domestic
Assistance
Number
(CFDA #)
Identifying Number
Passed Total
Through to Federal
Subrecipients Expenditures
U.S. Department of Transportation:
Highway Planning and Construction Program:
Pass -through State Department of Transportation:
State Route (SR) 91 Utilities
SR91/SR71 Junction
Regional Rideshare
1-15 Express Lanes
1-15 Express Lanes
Downtown Riverside/Pedley Metrolink Stations
Total Highway Planning and
Construction Program
Transportation Infrastructure Finance and Innovation Act (TIFIA) Program:
Direct Program, TIFIA 91 Project
Total TIFIA Program
High -Speed Rail Corridors and Intercity Passenger Rail Service - Capital
Assistance Grants Program:
Pass -through State Department of Transportation:
Coachella Valley -San Gorgonio Pass Corridor Investment Plan
Total High Speed Rail Corridors and Intercity
Passenger Rail Service - Capital Assistance Grants Program
20.205 08-31-002-04
20.205 08-31-033-05
20.205 08-41-042-00
20.205 18-62-062-00
20.205 08-1625
20.205 15-33-058-00
$ (105,069)
1,072,918
1,847,777
52,665,018
1,579,375
1,186,721
58,246,740
20.223* TIFIA-2012-1006A 421,054,409
421,054,409
20.319 16-25-017-00 602,224
602,224
Federal Transit Cluster:
Federal Transit Capital Investment Grant:
Direct Program, Commuter Rail 5 Year Rehab 5309 20.500* CA-05-0268-00 693,652 693,652
Direct Program, Commuter Rail Rehab Final 5309 20.500* CA-05-0283-00 311,905 311,905
Direct Program, Rail State of Good Repair 20.500" CA-05-0033-00 2,299,999 2,299,999
Federal Transit Urbanized Area Formula Grant:
Direct Program, Perris Valley Line Construction 20.507" CA-954202-00 - 2,301,372
Direct Program, Perris Valley Line Operations 20.507* CA-95-X339-00 3,425,149 4,136,406
Total Federal Transit Cluster 6,730,705 9,743,334
Public Transportation Research:
Direct Program, Blythe Wellness Express 20.514 CA-2017-115-00 90,497 90,497
Total Federal Expenditures $ 6,730,705 $489,737,204
* Denotes major program
See Accompanying Notes to Schedule of Expenditures of Federal Awards
5
114
Riverside County Transportation Commission
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2018
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the activity of all
federal award programs of the Riverside County Transportation Commission (the Commission) for the year
ended June 30, 2018. The Schedule includes federal awards received directly from federal agencies, as
well as federal awards passed through other agencies. The Commission's reporting entity is defined in Note
1 to the Commission's basic financial statements. Because the Schedule presents only a selected portion
of the operations of the Commission, it is not intended to and does not, present the financial position of the
Commission. The information in this Schedule is presented in accordance with the requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this
Schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
Note 2. Summary of Significant Accounting Policies
The accompanying Schedule is presented on the modified -accrual basis of accounting. Expenditures are
recognized following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures may or may not be allowable or may be limited as to reimbursement. Negative amounts shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years.
Note 3. Transportation Infrastructure Finance and Innovation Act (TIFIA) Program Loan
In July 2013, the Commission executed a TIFIA loan agreement with the United States Department of
Transportation in an amount not to exceed $421,054,409 to finance a portion of the Commission's 91
Project. The TIFIA loan is evidenced by a toll revenue bond of the Commission issued pursuant to the
master indenture and the second supplemental indenture. There were no TIFIA loan proceeds expended
during the fiscal year ended June 30, 2018, and the outstanding loan payable at June 30, 2018 is
$453,980,866.
Note 4: Indirect Cost Rates
The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance. There were no indirect costs charged to any of the Commission's Federal programs
during the year ended June 30, 2018.
6
115
Riverside County Transportation Commission
Schedule of Findings and Questioned Costs
Year Ended June 30, 2018
I. Summary of Auditor's Results
Financial Statements
Type of report the auditors issued on whether the financial statements audited were prepared in
accordance with GAAP: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified? Yes X None Reported
Type of auditors' report issued on compliance for major federal programs: Unmodified
• Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)? Yes X No
Identification of major federal programs:
CFDA Number(s) Name of Federal Program or Cluster
20.223 Transportation Infrastructure Finance and Innovation Act
(TIFIA) Program
20.500 & 20.507 Federal Transit Cluster
Dollar threshold used to distinguish between Type A and Type B programs: $2,060,484
Auditee qualified as low -risk auditee? X Yes No
7
116
Riverside County Transportation Commission
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2018
II. Financial Statement Findings
A. Internal Control Matters
None reported.
B. Compliance Findings
None reported.
III. Federal Award Findings and Questioned Costs
A. Internal Control Matters
None reported.
B. Compliance Findings
None reported.
8
117
Riverside County Transportation Commission
Summary Schedule of Prior Year Audit Findings
Year Ended June 30, 2018
Prior Year Federal Award Findings
Finding
No.
Program
CFDA
No.
Compliance
Requirements
Status of Corrective Action
2017-001
High Speed Rail Corridors
and Intercity Passenger Rail
Service — Capital Assistance
Grants
20.319
Reporting
The Commission has fully
implemented the corrective
action.
9
118
ATTACHMENT 8
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Financial Statements
For the Year Bided June 30, 2018
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
119
120
RCTC 91 Bg3ress Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Financial Statements
For the Year Ended June 30, 2018
Contents
Independent Auditor's Report
Management's Discussion and Analysis
1
3
Financial Statements
Statement of Net Position 8
Statement of Revenues, Expenscs and Change in Fund Net Position 9
Statement of Cash Flows 10
Notes to Financial Statements 12
121
122
Certified
Public
Accountants
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited the accompanying financial statements of the RCTC 91 Express Lanes Fund
(the Fund), an enterprise fund of the Riverside County Transportation Commission (the
Commission), as of and for the year ended June 30, 2018, and the related notes to the financial
statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the RCTC 91 Express Lanes Fund of the Commission, as of June 30,
2018, and the changes in financial position and cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
123
www.mgocpa.com
Emphasis of Matter
As discussed in Note 1, the financial statements present only the RCTC 91 Express Lanes Fund
and do not purport to, and do not present fairly the financial position of the Commission as of June
30, 2018, the changes in its financial position, or, where applicable, its cash flows for the year
then ended in accordance with accounting principles generally accepted in the United States of
America. Our opinion is not modified with respect to this matter
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, as listed in the table of contents, be presented to
supplement the financial statements. Such information, although not a part of the financial
statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the financial statements, and other knowledge we obtained during our
audit of the financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
aims ��Ca�1 ei I4
Newport Beach, California
October 30, 2018
2
124
RCTC 91 Bg3ress Lanes Fund
Management Discussion and Analysis
For the Year Ended June 30, 2018
As management of the RCTC 91 Express Lanes Fund (the Fund), an enterprise fund of the Riverside County
Transportation Commission, we offer readers of the Fund financial statements this narrative overview and analysis of
the Fund's financial activities for the fiscal year ended June 30, 2018. VVe encourage readers to consider information
on financial performance proscnted in conjunction with the financial statements that begin on page 8.
Financial Highlights
• At the end of fiscal year (FY) 2017/18, the total net position (deficit) of the Fund was ($277,767,334) and
consisted of net investment in capital assets of ($286,349,191) and restricted net position of $8,581,857.
• Net position of ($277,767,334) during FY 2017/18 reflects the first full year of toll operations. The eight -mile
stretch between Interstate 15 and the Crange/Rverside County line and a tolled direct connector reached
substantial completion and opened to motorists on March 20, 2017.
• In FY 2017/18, total operating revenues of $50,446,824 include toll, violation penalty, and account fee
revenues and Crange County Transportation Authority (OCTA) reimbursements. Total operating expenses
of $21,960,551 include roadway and toll systems maintenance, customer service, back office operations, and
other support costs.
Overview of the Rnancial Statements
This discussion and analysis is intended to serve as an introduction to the Fund's financial statements. The financial
statements are comprised of the Fund financial statements and notes to the financial statements.
The statement of net position presents information on all of the Fund's assets, liabilities, deferred outflows of resources,
and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position of the Fund is improving or deteriorating.
The statement of revenues, expenses and changes in net position presents information sh0wing how the Fund's net
position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change oco x's, regardless of the timing of related crash flows. Thus, revenues and expend are reported
for some items that will only result in cash flows in future fiscal periods.
The statement of cash flows presents information on the cash flows related to operating, noncapital financing, capital
and related financing, and investing activities.
The Fund financial statements can be found on pages 8-11 of this report.
Notes to the financial statements provide additional information that is essential to a full understanding of the data
provided in the financial statements. The notes to the financial statements can be found on pages 12-22 of this report.
91 Express Lanes Financial Analysis
As noted previously, net position may serve over time as a useful indicator of the Fund's financial position. At June
30, 2018, the Fund's net position reflected a deficit of $277,767,334. Cur analysis below focu,cs on net position and
changes in net position of the Fund's financial activities.
3
125
RCTC 91 Bg3ress Lanes Fund
Management Discussion and Analysis
For the Year Ended June 30, 2018
RCTC 91 Express Lanes Fund
Net Position
2018 2017
Current and other assets $ 59,551,294 $ 8,591,572
Restricted assets 29,828,745 27,562,399
Capital assets, net 65,239,555 71,341,737
Intangible assets, net 244,045,820 234,075,489
Total assets 398,665,414 341,571,197
Deferred outflows of resources
Total assets and deferred outflows of resources
310,156 84,567
398,975,570 341,655,764
Current liabilities 27,640,364 6,770,239
Long-term liabilities 649,070,652 628,562,082
Total liabilities 676,711,016 635,332,321
Deferred inflows of resources
Total liabilities and deferred inflows of resources
31,888 2,283
676,742,934 635,334,604
Net position
Net investment incapital assets (286,349,191) (301,737,495)
Restricted 8,581,857 8,058,655
Total net position (deficit) $ (277,767,334) $ (293,678,840)
FY 2017/18 represents the first full year of toll operations for the Fund. As a result, total assets increased $57,094,217,
or 17%, due to increases in cash and investments, receivables, and capital and intangible assets. Total liabilities
increased $41,378,695, or 7%, primarily due to increases in deferred violation revenues and toll supported long-term
debt related to accreted and compounded interest.
The Fund's net investment in capital assets reflects a deficit of $286,349,191 and reprOcnts (103.1%) of the total net
position (deficit) in FY 2017/18. The Fund's net position reflects its investment in oapital assets (i.e., land and land
improvements; buildings; toll infrastructure; equipment, furniture and fixtures; transponders; and intangible assets),
less any related outstanding debt used to acquire these assets. The Fund u ;cs these capital and intangible assets to
provide improved mobility for the Fund customers and commuters along the SR-91 corridor.
Restricted net position, representing resources subject to external restrictions on how they may be used, was
$8,581,857 and represents 3.1%of the total net position at June 30, 2018.
The analysis belowfocukes on the changes in net position.
4
126
RCTC 91 Bg3ress Lanes Fund
Management Discussion and Analysis
For the Year Ended June 30, 2018
RCTC 91 Express Lanes Fund
Changes in Net Position
2018 2017
Operating revenues
Toll, penalties, and fees $ 50,446,824 $ 10,125,295
Total operating revenues 50,446,824 10,125,295
Cperating expenses
Management and operational services 9,136,307 2,691,372
Administrative overhead 532,600 -
Olher operating expenses 464,119 275,308
Profcscional services 815,345 117,772
General and administrative 826,558 219,932
Depredation and amortization 10,185,622 2,527,24-0
Total operating expenses 21,960,551 5,831,624
Operating inoome 28,486,273 4,293,671
Nonoperating revenues (expenses)
Investment income (loss) (32,662) 3,435
Interest expense (27,115,090) (7,428,630)
C hir (376,656) -
Total nonoperatingexpenses (27,524,408) (7,425,195)
Income (loss)bebretransfers %1,865 (3,131,524)
Transfers from the Commission, net 14,949,641 (290,547,316)
Changes in net position 15,911,506 (293,678,840)
Total net position at beginning of year (293,678,840)
Total net position at end of year $ (277,767,334) $ (293,678,840)
The Fund's total operating revenues increased $40,321,529, or 398% and total operating expenses increased
$16,128,927, or 277°/0, as a result of the first full year of toll operations. Nonoperating expenses increased
$20,099,213, or 271 %, primarily due to a full year of interest expense. Net transfers from the Commission decreased
by $305,496,957 as a result of the prior year's transfer of capital and intangible assets, offset by the transfer of toll -
supported long-term debt related to the 91 Project. Total traffic volume on the RCTC 91 Express Lanes Fund during
FY 2017/18 was appro dn ralely 14,518,000 trips compared to 4,049,000 trips in FY 2016/17.
5
127
RCTC 91 Bg3ress Lanes Fund
Management Discussion and Analysis
For the Year Ended June 30, 2018
Capital and Intangible Assets
Capital Assets
As of June 30, 2018, the Fund had $65,239,555, net of accumulated depredation, invested in a broad range of capital
assets induding: land and land improvements; buildings; toll infrastructure corrprised of communication equipment
and corrputer hardware and software; equipment, fumiture and fixtures; and transponders. The decrease of
$6,102,182, or 9%, was primarily due to the sale of excess land and the depredation of the Fund's toll infrastructure.
RCTC 91 Express Lanes Fund
Capital Assets, Net of Depreciation
2018
2017
Land and land improvements
Construdion in progress
Tdl infrastructure
Transponders
Buildings
Equipment, furniture, and vehides
Trial capital assets, net
$ 43,032,888
174,151
21,211,4.66
360,181
444,408
16,461
$ 65,239,555
$ 44,658,207
26,071,062
109,743
484,809
17,916
$ 71,341,737
More detailed information about the Fund's capital assets is presented in note 4 to the finandal statements.
Intangible Assets
The information below is a sur'futy of the Commission's intangible assets, net of accumulated amortization:
RCTC 91 Express Lanes Fund
Intangible Assets, Net of Amortization
2018 2017
Total intangible asset, net $ 244,045,820 $ 234,075,489
The increase of $9,970,331, or 4%, is a result of 91 Project completion costs, offset by the current year amortization.
More detailed information about the Fund's intangible assets is presented in note 5 to the financial statements.
Debt Administration
As of June 30, 2018, the Fund had $648,503,036 outstanding in tdl revenue bonds, including a toll revenue bond in
the form of a Transportation Innovation Finance and Infrastructure Act (l1FIA) loan. The increase of $19,951,366, or
3%, is due to the compounded and accreted interest on the toll -supported lorxtterm debt.
6
128
RCTC 91 Bg3ress Lanes Fund
Management Discussion and Analysis
For the Year Ended June 30, 2018
RCTC 91 Express Lanes Fund
Outstanding Debt
2018 2017
Toll revenue bonds $ 194,522,170 $ 189,923,251
11FIA loan 453,980,866 438,628,419
Total outstanding debt $ 648,503,036 $ 628,551,670
Additional information on long-term debt can be found in note 7 to the financial statements.
Economic and Other Factors
The Fund makes up $45,581,800 or 7%of Commission's FY 2018/19 revenue budget. In FY 2018/19, toll and non -
toll revenues are forecasted to increase by 168% over the FY 2017/18 budget. This increase is based on estimated
toll transactions and current traffic and revenue data. The RCTC 91 Express Lanes have exceeded initial expectations;
accordingly, the Cornrnission traffic consultant is updating the investment grade and traffic and revenue study. The
average projected longterm rate of growth for toll road revenues beyond FY 2018/19 is 6.9%
The majority of expen.,cs related to the Fund within FY 2018/19 budget are on -gang general costs related to day-to-
day operations of the toll facility. As a fully electronic toll facility, motorists pay tolls through the convenient use of
FasTrak®transponders that automatically deduct toll charges from a prepaid account.
Under a cooperative agreement entered into with OCTA in December 2011, the RCTC 91 Express Lanes are jointly
operated with the OCTA 91 Express Lanes and collectively referred to as the 91 Express Lanes. The Commission and
OCTA agreed on the use of the same initial operator, cost and revenue sharing, toll policies, business rules,
interoperability of technology, and shared marketing activities. The joint operation allows for the sharing of costs and
a seamless customer experience.
Contacting 91 Express Lane's Management
This financial report is designed to provide a general overview of the Fund's finances for all those with an interest in
the govemrrent's finances and to demonstrate the Fund's aocountability for the money it receives. Questions
conceming any of the information provide in this report or requests for additional information should be addressed to
the Chief Financial Officer, Finance Department at the Riverside County Transportation Commission, 4080 Lemon
Street, ad Floor, P.O. Box 12008, Riverside, CA 92502-2208.
7
129
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Corrrrission)
Statenent of Net Position
June 30, 2018
Assets
Current :
Cash and investments $ 33,950,063
Receivables
Accounts 1,739,225
Interest 148,492
Mdations 23,546,548
Prepaid evenses 166,966
Total arrent nazi 59,551,294
Nonmarrent assets:
Reslric ed cash and investments 29,828,745
Capital xcc i,, net
Nondepredable 43,207,039
Depreciable 22,032,516
Intanjble assets, net 244,045,820
Total nu iu rrent aJuct 339,114,120
Total 398,665,414
Deferred outfloNs of resources
Pension benefits
Other post -employment benefits
Tonal assets and deferred ou8oNs of resources
259,714
50,442
398,975,570
Liabilities
Current liabilities:
Amounts payable 1,517,W
Interest payable 1,888,106
Due to other Commission funds 294,509
Urftrnrzt revenues 23,545,891
Ober liabilities 375,050
Compensated absences liability 19,156
Total arrent liabilities 27,640,364
Nonaarrent liabilities:
Net pension liabilities 517,676
Clher post employment benefits liabilities 14,364
Compensated absences liability 35,576
Bands payable - due in more than one year 648,503,036
Total nonarreitt649,070,W
Total liabilities 676,711,016
Deferred intions of resouces
Pension benefits
Ober post -employment benefits
Total liabilities and deferred inflows of resources
19,162
12,/
676,742,904
Net position
Net invest -rent in capital assets (286,349,191)
Resticied for toll operations 8,581,857
Total net position (deficit) $ (277,767,334)
See notes to financial staterrs
8
130
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Corrrrission)
Statement of Revenues, Expenses and Change in Fund Net Position
For the Year Ended June 30, 2018
Operating revenues
Tolls, penalties, and fees $ 50,446,824
Operating expenses
Management and operational services 9,136,307
Administrative overhead 532,600
Other operating expenses 464,119
Professional services 815,345
General and administrative expenses 826,558
Depreciation and amortization 10,185,622
Total operating expenses 21,960,551
Operating inoome 28,486,273
Nonoperating revenues (expenses)
Investment eamings (loss) (32,662)
Interest expense (27,115,090)
Loss on sale of capital assets (376,656)
Total nonoperating revenues (expenses) (27,524,4-08)
Inoome before transfers 961,865
Transfers
Transfers in from Commission governmental adivities 15,166,5%
Transfers out to Commission governmental funds (216,955)
Total transfers 14,949,641
Change in net position 15,911,506
Net position at beginning of year
Net position at end of year
9
(293,678,840)
$ (277,767,334)
131
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flow
For the Year Ended June 30, 2018
Cash flows from operating activities
Reoeipts from customers and users $ 49,702,640
Payments to vendors (10,087,808)
Payments to employe (426,598)
Payments for RCTC interfund services used (345,162)
Reimbursements received for shared oosts 255,756
Net cash provided by operating activities 39,098,828
Cash flows from noncapital financing activities
Transfers to governmental activities for excess investment earnings
Net cash provided by nonsepital financing activities
(1,344,509)
(1,344,509)
Cash flows from capital and related financing activities
Interest paid on long-term debt (7,119,938)
Acquisition of capital assets, net of reimbursements from other governments (553,487)
Deposits received related to pending sale of land 250,756
Proceeds from sale of capital assets 1,248,662
Net cash provided by capital and related financing activities (6,174,007)
Cash flows from investing activities
Interest received
Net cash used fa- investing activities
87,051
87,051
Net incrin cash and cash equivalents 31,667,363
Cash and rash equivalents at beginning of year 32,289,383
Cash and cash equivalents at end of year $ 63,956,746
Reconciliation of cash and cash equivalents to statement of net position
Cash and investments $ 33,950,063
Add: fair value adjustment 177,938
Restricted cash and investments
Total cash and cash equivalents
See notes to financial statements
10
34,128,001
29,828,745
$ 63,956,74.6
132
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Corrrrission)
Statement of Cash Flows, Continued
For the Year Ended June 30, 2018
Reoonoiliation of operating income (loss) to net cash
provided by (used for) operating acts ities
Operating income
Adjustments to reconcile operating income b net cash
provided by (used for) operating activities
Depreciation and amortizaion expense
Change in assets and liabilities
(Increase) Decrease in violations receivables
(Increase) Decrease in other receivables, net
(Increase) Decrease in prepaid assets
Increase (Decrease) in pension and post -employment benefit liabilities, net of deferred items
Increase (Decrease) in accounts payable
Increase (Decrease) in due to other funds
Increase (Decrease) in unearned revenues
Increase (Decrocrc) in deposits payable
Increase (Decrease) in oompensated absenoes liability
Total adjustments
Net cash provided by operating activities
Norxash capital, financing and investing acivities
Amortization of bond discount
Accreted and compounded interest
See notes to financial statements
11
$ 28,486,273
10,185,622
(20,896,980)
(496,995)
(35,631)
277,643
373,186
270,843
20,895,323
50
38,494
10,612,555
$ 39,098,828
$ 73,073
19,878,293
133
134
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 1. Reporti • Enti
After more than a decade of work, which includes approximately three years of construction, the Riverside County
Transportation Commission (Commission) achieved substantial completion on the SR-91 Corridor Improvement (91
Project) on March 20, 2017, induding express lane and general purpose lane improvements. In achieving substantial
completion, the RCTC 91 Express Lanes opened to traffic and tolling commenced. The RCTC 91 Express Lanes cover an
eight -mile stretch on State Route 91 (SR-91) between Interstate 15 (1-15) and the Orange/Riverside County line and a tdled
direct connector.
The RCTC 91 Express Lanes Fund (Fund) is reported as a major enterprise fund in the Commission's basic finandal
statements. The accompanying financial statements present the net position, changes in net position, and cash flows of
the Fund only. They do not purport to, and do not, present the overall financial position of the Commission or its changes
in net position as of June 30, 2018.
Note 2. Summary of Significard Accounting Policies
The accounting policies of the Fund are in conformity with generally acrppted accounting principles applicable to
govemrrental units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for
establishing accounting and financial reporting principles.
Basis of Accounting: The finandal statements of the Fund are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues consisting substantially of tills and fcce, are recorded when earned,
and expend are recorded when a liability is incurred, regardless of the tirring of related cash flows. Tdl revenue is
recognized when the customers utilize the toil road facility.
Enterprise funds distinguish operating revenues and expenses from nonoperating items. Cperating revenues and expen ;ce
generally result from providing services in connection with an enterprise fund's principal and ongoing operations. The
principal operating revenues of the Fund are charges to customers for use of the tdl fadlity. Operating expend for the
Fund include the cost of services, administrative expend, and depredation and amortization on capital and intangible
assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expend.
Cash and investments: The Commission maintains rash and investments in accordance with the Investment Policy
adopted by the Board of Commissioners in December 2017. The Investment Policy complies with the California
Government Code (Code). Investments of bond proceeds as pemitted by the applicable debt documents are maintained
with U.S. Bank as trustee. Separate investment accounts are maintained for the proceeds of bond issues, with the eamings
for each bond issue accounted for separately. The Fund participates in the Riverside County Pooled Investment Fund
(RCPIF). Cash from other Commission revenue sources is commingled for investment purpos in the RCPIF, with
investment eamings allocated to the different accounts based on average daily account balances.
The Commission holds investments that are measured at fair value on a recurring basis. Investments in U.S. Treasury
obligations, U.S. agency securities, corporate notes, mortgage and asset -backed securities, and munidpal bonds are
carried at fair value based on quoted market prices, except for money market investments, which are carried at amortized
oust which approximates fair value. The RCPIF is carried at fair value based on the value of each participating dollar as
provided by RCPIF.
Cash and cash equivalents: For the purpose of the statement of cash flows, the Commission considers all short-term
investments with an initial maturity of three months or less to be cash equivalents. All deposits, commerdal paper, money
market funds, certificates of deposit, and the Fund's share of the RCPIF represent cash and cash equivalents for cash flow
purposes.
12
135
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 2. Sumrary of Si • nificant Accounti • Policies, Continued
Restricted cash and investments: Investments set aside in the Senior Lien Obligations Reserve Fund, Senior Lien
Capitalized Interest Fund, Residual Fund Scheduled Retained Balance Fund, and Toll Revenue Fund are pursuant to the
terms of the 2013 Indenture and their use is limited by applicable debt ter rTb and conditions.
Permitted investments per the debt indentures indude govemment obligations, State of Califomia and local agency
obligations, banker's acceptances, corrn erdal paper, negotiable certificates of deposit, repurchase agreements, money
market funds, other mutual funds, investment agreements, RCPIF, and variable and floating rate securities.
Receivables: Violations receivables indude unoollected violation tolls and penalties. Unpaid violations of $23,546,248 as
of June 30, 2018 are not recognized as revenue until payment is received and therefore are reflected as uneamed revenue.
If violations and penalties remain owed for more than 90 days, they are tumed over to the collection agency. Unpaid
violations remain recorded for a period of four years in accordance with the statute of limitations, at which time, they will be
deemed uncolIectible.
Other receivables indude amounts due from other Cal ifomia toll road agencies related to their customers' use of the RCTC
91 Express Lanes, as well as amounts owed from the Orange County Transportation Authority (OCTA) in accordance with
a cooperative agreement.
Capital assets: Capital assets indude land and land improvements; toll infrastructure; buildings; equipment, fumiture and
fixtures; and transponders. Capital assets are defined by the Fund as assets with an initial, individual cost of more than
$5,000 and a useful life in excess of one year. It is also the Fund's policy to capitalize transponder purchases, as they are
considered a significant loss of assets even though individually under $5,000. Such assets are recorded at historical cost.
The costs of normal maintenance and repairs that do not add value to the asset or materially extend asset lives are not
capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Asset Type Useful Life
Buildings 10 years
Equipment, fumiture and fixtures 3 to 5 years
Toll infrastructure 5 to 10 years
Transponders 5 years
Intangible assets: In May 2012 the Commission entered into a toll facility agreement with Califomia's Department of
Transportation (Caltrans) and obtained authority to toll the SR-91 from the Orange County/Riverside County line to 1-15 for
50 years commendng as of the first day on which the RCTC 91 Express Lanes open for public use and toll operations. The
RCTC 91 Express Lanes opened on March 20, 2017.
Deferred outflows of resources: In addition to assets, the statement of net position reports a separate section for deferred
outflows of resources. This separate financial statement element, represents a consumption of net position that applies to
a future period and so will not be recognized as an outflow of resources (expense) until then. As of June 30, 2018, the
Fund has two items which qualify for reporting in this category— pension and other post -employment benefits.
Due to other Commission funds: During the course of operations, transactions occur between governmental funds
involving goods provided and services rendered.
13
136
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 2. Sumrary of Significant Accounting Policies, Continued
Compensated absences: Vacation hours accumulated and not taken at year-end is reported as a long-term liability, net
of current portion, in the Fund.
Side leave is recorded as an expense wren taken by the employee. Employees with continuous five years of service have
the option of being paid for side leave accumulated in excess of 240 hours at a rate of 50% (i.e., one hour's pay for every
two hours in excess of 240). Any sick leave in excess of 240 hours is accrued at fiscal year-end, and a liability is reported
in the Fund.
Pensions: For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions and pension expense, information about the fiduciary net position of the Commission's California Public
Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deduction from Plans' fiduciary net position have
been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments
are reported at fair value.
Postemployment benefits other than pensions: For purposes of measuring the net other post -employment benefits
(OPEB) liability, deferred outflows/inflows of resources related to the OPEB liability and OPEB expense, information about
the fiduciary net position of the Commission's CPEB plan, and additions to/deductions from the OPEB fiduciary net position
have been determined on the same basis as they are reported by California Err ployers' Retiree Benefit Trust administered
by CaIPERS. For this purpose, benefit payments are recognized when due and payable in accordance with benefit terms.
Investments are reported at fair value, except for money markets and participating interest-eaming investment contracts
that have a maturity at the time of purchase of one year or less, which is reported at cost.
Deferred inflows of resources: In addition to liabilities, the statement of net position reports a separate section for
deferred inflows of resources. This separate financial statement element, represents an acquisition of net position that
applies to a future period and will not be recognized as an inflow of resources, or revenue, until then. The Fund had two
items which qualifies for reporting in this category — pension and other post -employment benefits.
Risk management: The Fund purchases commercial property insurance induding business interruption, earthquake, and
flood coverage related to the tdl facility.
Net position: Net position represents the difference between assets plus deferred outflow of resources and liabilities plus
deferred inflow of resources and is dassifred into three categories:
■ IVet investrmnt in capital assets consists of capital and intangible assets, net of accumulated depredation, reduced by
the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets and
excludes unspent debt prooeeds.
■ Restricted net position represents restricted assets less liabilities related to those assets. Restricted assets are
recorded when there are limitations imposed by creditors (such as through debt covenants). The statement of net
position includes restricted net position for the portion of net toll revenues restricted by the 2013 Master Indenture for
toll operations.
14
137
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 2. Summary of Significant Accounting Policies, Continued
Use of estimates: The preparation of the financial statements in conformity with accounting principles generally accepted
in the United States requires management to make estimates and assumption that affect certain reported amounts and
disdosures during the reporting period. As such, actual results could differ from those estimates.
Note 3. Cash and Investments
Cash and investments are comprised of the fdlowing at June 30, 2018:
Cash in bank $ 278,774
Investments
With RCPIF
With Trustee
Total investments
Total cash and investments
Total cash and investments are reported in the financial statements as:
Unrestricted cash and investments
Restricted cash and investments
Total cash and investments
33,671,289
29,828,745
63,500,034
$ 63,778,808
$ 33,950,063
29,828,745
$ 63,778,808
Fair Value Hierarchy: The Commission categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of
the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other
observable inputs; and Level 3 inputs are significant unobservable inputs (the Commission does not value any of its
investments using Level 3 inputs).
The following is a sure nary of the fair value hierarchy of the fair value of investments of the Fund as of June 30, 2018:
Investments by fair value level:
June 30, 2018
Fair Value Measurements Using
(Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Investments subject to fair value hierarchy:
U.S. Trowury obligations
U.S. agency securities
Corporate notes
Money market mutual funds
Mortgage and asset -backed securities
Municipal bonds
Total investments measured at fair value
Investments not subject to fair value hierarchy:
RCPI F
Total investments
$ 10,163,335 $
2,220,541
2,416,983
5,644,587
8,983,299
4-00,000
10,163,335
2,220,541
2,416,983
5,644,587
8,983,299
400,000
29,828,745 $
33,671,289
$ 63,500,034
10,163,335
$ 19,665,410
Investments classified in Level 1 of the value hierarchy, valued at $10,163,3355 are valued using quoted prices in active
markets.
15
138
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 3. Cash and Investments, Continued
•
U.S. agency securities totaling $2,220,541, corporate notes totaling $2,416,983, money market funds totaling $5,644,587,
mortgage and asset -backed securities totaling $8,983,299, and municipal bonds totaling $400,000, dassified in Level 2 of
the fair value hierarchy, are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is
used to value securities based on the securities' relationship to benchmark quoted prices. Fair value is defined as the
quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the
custodian bank.
As of June 30, 2018, the Fund has the following restricted investments:
Investments
Fair Value Principal
Interest Rate Range
Maturity Range
Mighted
Average
Maturity (Years)
RCPI F
Held by Trustee
Corporate notes
Money market
Mortgage and asset- backed
stn lilies
MLnicipal bonds
U.S. agency securities
U.S. Treasury obligations
Total Investments
Portfolio weighted average
$ 33,671,289 $ 34,137,231 0.726%- 3.100%
2,416,983
5,644,587
8,983,299
2,426,463
5,644,587
9,212,189
400,000 400,000
2,220,541 2,250,729
10,163,335 10,436,052
$ 63,500,034 $ 64,507,251
2.493%- 3.405%
0.00%-1.330%
-3.395%- 5.963%
1.800%- 2.050%
1.095%- 2.767%
0.613%- 2.809%
07/01/18 - 06/29/23
11/05/18 - 06/11/21
I�UA
11/01/18 - 09/16/55
09/01/37 - 11/15/52
07/06//18 - 01/13/22
07/15/18 - 01/15/27
1.173
1.352
0.000
12.482
23.468
2.407
3.904
7.464
The weighted average maturity is calculated using the investment's effective duration weighted by the investment's fair
value.
As of June 30, 2018, mortgage and asset-bad<ed securities totaled $8,983,299. The underlying assets are consumer
receivables that include credit cards, auto/equipment, and home loans. The sen arities have a fixed interest rate and are
rated MalAA+ at least two of the three nationally recognized statistical rating organizations
Deposits and withdrawals in the RCPIF are made on the basis of $1.00 (cost basis) and not fair value. Accordingly, the
Fund's investment at June 30, 2018 is uncategorized, not defined as Level 1, Level 2, or Level 3 input.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the
Commission's investment policy follows the Code as it relates to limits on investment maturities as a means of managing
exposure to fair value losses arising from increasing interest rates. In accordance with the Commission's investment policy,
restricted investments are invested in accordance with the maturity provisions of the specific bond indenture, which may
extend beyond five years.
Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in
the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The Commission's investment policy requires that a third
party bank trust department hold all securities owned by the Commission. All trades are settled on a delivery versus payment
basis through the Commission's safekeeping agent.
16
139
RC:TC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 3. Cash and Investments, Continued
The Fund has deposits with a bank balance of $278,774 with a financial institution; bank balances over $5,000,000 are
swept daily into a money market account. Of the bank balance, up to $250,000 is federally insured under the Federal
Depository Insurance Corporation with balances in excess of $250,000 collateralized in accordance with the Code;
however, the collateralized securities are not held in the name of the Commission.
Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum acceptable credit
ratings for investments from any of the three nationally recognized statistical rating organizations. The following table is a
summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of each
category's fair value at June 30, 2018; securities denoted as NR are not rated by one of the nationally reoognized statistical
rating organizations.
Investments
Moody's S&P % of Portfolio
RCPIF Aaa bf AAAf/S1 53.02%
Corporate
Notes Al Ak 0.16%
Notes A2 A- 3.18%
Notes A3 BBB+ 0.31 %
Notes Aaa NR 0.16%
Money market mutual funds
Funds NR NR 8.89%
Mortgage and asset backed securities
Securities Aaa AA+ 12.92%
Securities Aaa AAA 0.35%
Securities Aaa NR 0.46%
Securities NR AAA 0.42%
Municipal bonds
Colorado Housing and Finance Authority Aaa AAA 0.16%
Maine State Housing Authority Aa1 AA+ 0.16%
North Dakota Housing Finance Agency Aa1 NR 0.16%
Wisconsin Housing and Econonic Development Aa2 AA 0.16%
U.S. agency securities
Notes 3.49%
U.S. Treasuries
Treasury 16.00%
Total 100.00%
Concentration of credit risk: The Commission's investment policy places a limit of 10%on the amount of investment
holdings with any one non-U.S. Government or non-federal agency issuer. As of June 30, 2018, the Commission did not
have investments in any one issuer that represents more than 5%of the Commission's total investments.
17
140
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 4. Capital Assets
Capital assets activity for the Fund for the year ended June 30, 2018 is as follows:
Balance Balance
June 30, 2017 Transfers Additions Deletions June 30, 2018
Capital assets not being depredated:
Land and land improvements
Construction in progress
Total capital assets not being depredated
Capital assets being depredated:
Toll infrastructure
Transponders
Buildings
Office fumiture, equipment and vehides
Total capital assets being depredated
Les accumulated depredation for:
Toll infrastructure
Transponders
Buildings
Office fumiture, equipment and vehides
Total accumulated depredation
Total capital assets being depredated, net
Capital assets, net
$ 44,658,207 $ — $ — $ (1,625,319) $ 43,032,888
174,151
174,151
44,658,207
27,408,768
122,506
686,813
18,428
491,230
174,151 (1,625,319) 43,207,039
331,313
7,032
(2) 27,899,996
453,819
686,813
25,4.60
28,236,515 491,230 338,345
(1,337,706)
(12,763)
(202,004)
(512)
(5,350,824)
(80,875)
(4-0,4-01)
— (8,487)
(1,552,985) —
26,683,530 4.91,230
$ 71,341,737 $ 4.91,230
(5,480,587)
(5,142,242)
$ (4,968,091)
(2) 29,066,088
(2)
$ (1,625,321)
(6,688,530)
(93,638)
(242,405)
(8,999)
(7,033,572)
22,032,516
$ 65,239,555
Note 5. Intangible Assets and Service Concession Arrangements
Cr) May 14, 2012, the Commission entered into a toll facilities agreement with Caltrans providing the Commission with
authorization to toll the SR-91 from Crange/Riverside County line to 1-15 for 50 years corrrruncing as of the first day on
Mich the RCTC 91 Express Lanes open for public use and toll operations. The agreement also set forth the Commission's
leasehold rights to Caltrans' right of way and Caltrans' oversight role in the operations and maintenance of the RCTC 91
Express Lanes.
Intangible asset activity for the year ended June 30, 2018 was as follovvs:
Balance
June 30, 2017 Transfers
Additions
Balance
June 30, 2018
Tdl fadlity franchise $ 235,251,748 $ 14,675,366
Less accumulated amortization (1,176,259) —
Total toll facility franchise, net $ 234,075,489 $ 14,675,366
(4,705,035)
$ (4,705,035)
$ 249,927,114
(5,881,294)
$ 244,045,820
18
141
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Due fronnfto other funds: The composition of balances related to due from other funds and due to other funds at June
30, 2018 is as follows:
Payable Fund Receivable Fund
Amount Explanation
RCTC 91 Express Lanes Enterprise fund Commission's General fund $ 211,100
RCTC 91 Express Lanes Enterprise fund Commission's General fund 83,409
Total due to other Commission funds $ 294,509
Interfund transfers: During 2018, interfund transfers were as follows:
Administrative cyst allocation
Fringe benefits allocation
Transfer Out
Transfer In
Amount Explanation
RCTC 91 Express Lanes
Enterprise fund
Commission's
Governmental activities
Total transfers
Commission's Capital
Projects fund
RCTC 91 Express Lanes
Enterprise fund
$ (216, 955) Transfer of excess interest eami ngs
15,166, 596 Transfer of capital and intangible assets
$14,949,641
Nate 7. Long -Term Obligations
Toll revenue bonds payable: In July 2010, the Commission authorized the issuance and sale of not to exceed $900
rrillion of toll revenue bonds related to the 91 Project.
Balance Additions / Balance Due Within
June 30, 2017 Accretion Reductions June 30, 2018 One Year
Tdl revenue bonds:
2013 Bonds
$ 192,070,770 $ 4,525,846 $
Tdl revenue bonds discount (2,147,519)
Total bonds payable, net
TT FIA loan
Compensated absences liability
Total long -temp obligations
$ 196,5%,616 $
73,073 (2,074,446)
189,923,251 4,525,846 73,073 194,522,170
438,628,419 15,352,447 — 453,980,866 —
16,238 109,110 (70,616) 54,732 19,156
$ 628,567,908 $19,987,403 $ 2,457 $ 648,557,768 $ 19,156
2013 Toll Revenue Bonds, Series A (Current Interest Obligation): Outstanding
In July 2013, the Commission issued $123,825,000 principal amount of serial current interest
bonds (GBs) at a discount of $2,433,315 to fund a portion of the 91 Project, pay capitalized
interest during oonstruction, fund a debt service reserve fund, fund an initial amount for an
operations and maintenance fund, and pay costs of issuance. The aBs consist of a serial bond
maturing on June 1, 2044 in the amount of $39,315,000 at an interest rate of 5.75%and a term
bond due on June 1, 2048 in the amount of $84,510,000 with annual sinking funds payments of
$42,255,000 on June 1, 2047 and June 1, 2048 at an interest rate of 5.75%.
19
$ 123,825,000
142
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 7. Long -Term Obligations, Continued
In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CI Bs
payable throughout the term of the bonds are as follows:
Year Ending June 30 Principal
Interest Total
2019
2020
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
2044-2048
123,825,000
- $ 7,119,900
7,119,900
7,119,900
7,119,900
7,119,900
35,599,700
35,599,700
35,599,700
35,599,700
24,127,700
$ 7,119,900
7,119,900
7,119,900
7,119,900
7,119,900
35,599,700
35,599,700
35,599,700
35,599,700
147,952,700
$ 123,825,000 $ 202,126,000 $ 325,951,000
2013 Toll Revenue Bonds, Series B (Capital Appreciation Obligation): Outstanding
In July 2013, the Commission issued $52,829,600 principal amount of serial capital appreciation
bonds (CABS) to fund a portion of the 91 Project, pay capitalized interest during construction, fund
a debt service reserve fund, fund an initial amount for an operations and maintenance fund, and
pay costs of issuance. The CASs will not pay current interest as interest will be compounded
commencing December2013 semiannually and paid at maturity. Therefore, the CABswill increase
in value, or accrete, by the accumulation of such compounded interest from its initial principal
amount to the maturity value in installments ranging from $3,440,000 to $34,220,000 on various
dates from June 1, 2022 through June 1, 2043. Interest rates and yield to maturity range from
5.30%to 7.15%. During 2018, the accretion amount was $4,525,846.
$ 72,771,616
In accordance with the bond maturity schedule, annual debt service requirements to nu u urity for the 2013 Toll Bonds CABs
payable throughout the term of the bonds are as follows:
Year Ending June 30
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
Principal
$ 2,396,700
3,098,000
18,364,800
15,215,000
1,963,300
11,791,800
Accreted Interest Total
$ 1,423,300 $ 3,820,000
2,231,900 5,329,900
22,490,300 40,855,100
34,850,000 50,065,000
6,196,700 8,160,000
78,458,200 90,250,000
$ 52,829,600
$ 145,650,400 $ 198,480,000
20
143
RC:TC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 7. Long -Term Obligations, Continued
71F1A Loan Agreement: Outstanding
In July 2013, the Commission executed a TIFIA loan of up to $421,054,409, which proceeds
financed a portion of the costs for the 91 Project. During construction and for a period of up to five
years following substantial completion, interest is compounded and added to the initial T1FIA loan.
The 11FIA loan requires mandatory debt service payments at a minimum and scheduled debt
service payments to the extent additional funds are available. 71FIA debt service payments are
expected to cor r IT pence on December 1, 2021, which is five years after substantial completion of
the 91 Project, through June 1, 2051. The interest rate of the T1FIA loan is 3.47/0.
$ 453,980,866
The T1FIA loan is a tdl revenue bond that is subordinate to the senior tdl revenue bonds.
In accordance with the 71FIA loan maturity schedule, the approxirrrele mandatory annual debt service requirements to
maturity for the T1FIA loan payable throughout the term of the loan are as follows:
Mandatory
Year ending June 30
Principal
Interest
Total
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
2044-2048
2049-2051
Total
Future compounded interest
Total T1FIAloan
200,000
97,548,000
99,208,000
177,427,000
128,955,000
503,338,000 $
(49,357,100)
$ 453,980,900
1,921,000
1,921,000
23,604,000
73,743,000
81,787,000
61,359,000
41,287,000
6,519,000
292,141,000
$ 1,921,000
1,921,000
23,604,000
73,943,000
179,335,000
160,567,000
218,714,000
135,474,000
$ 795,479,000
In connection with the issuance of the 2013 Toll Bonds oonsisting of the GBs and CABS, a debt service reserve of
$17,665,460 and an operations and maintenance fund of $3,137,666 were established. Additionally, the toll indenture and
T1FIA loan agreement require the Comrission to establish a subordinate obligations resorve fund of $20,000,000 with
Measure A sales tax revenues no later than July 1, 2019, to the extent that the proceeds from the sales of excess right of
way acquired by the Commission in oonnection with the 91 Project are insuffident. As of June 30, 2018, the Comrission
accumulated $1,501,339 from the sale of excess land.
21
144
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2018
Note 8. Commitments and Contingencies
Cooperative agreements: The RCTC SR-91 Express lanes are jointly operated with the existing CCTA 91 Express Lanes
and collectively referred to as the 91 Express Lanes.
Under the Crange-Riverside Cooperative Agreement, which was entered into in December 2011, the Commission and
OCTA agreed on the use of the same initial toll operator, cost and revenue sharing, toll policies, business rules,
interoperability of technology, and marketing activities as well as OCTA review of design plans and construction activities
for the 91 Project.
In May 2013 the Commission entered into a three -party agreement with OCTA and Cofiroute USA, LLC (Cofiroute), as the
operator, for the operations of the 91 Express Lanes. This will ensure a streamlined and consistent intercounty travel for
motorists on the OCTA 91 Express Lanes in Crange County and RCTC 91 Express Lanes in Riverside County. Cofiroute
provides operating services in the annual amount of $6,942,600 plus inflation for three initial years with two one-year
extension options, subject to Board of Commissioners approval. Cofiroute is responsible for the day-to-day operations of
the toll facility. The agreement with Cofiroute expires on June 30, 2021.
Purchase commitments: The Fund has entered into other agreements in the ordinary course of business with corrpanies
and other governmental agencies related to operations and maintenance. These agreements, which are significant, are
funded with available and future revenues.
Note 9. Pensions and Other Post -Employment Benefits Other Than Pensions (OPFB
The Fund participates in the Commission's cost -sharing multiple employer defined benefit pension plan administered by
the Cal ifomia Public Employees' Retirement System and the Commission's OPEB. Employees of the Fund are employees
of the Commission as a whole. The required note disdosures regarding pension plans and OPEB are included in the
Commission's financial statements. Please see those financial statements for inforr ation about the pension plans and
CPEB as a whole.
The net pension and CPEB liabilities of $517,676 and $14,364, respectively, reported by the Fund, represent the Fund's
proportional share of the Commission's cost -sharing multiple employer defined benefit pension plan of $8,721,456 and
CPEB liability of $242,000. The Fund's net pension liability and OPEB liability each represent 5.9% of the Commission's
net pension liability and OPEB liability, respectively.
Note 10. Pronouncements Issued, Not Yet Effective
The GASB pronouncements issued prior to June 30, 2018 that have an effective date that may irrpact future financial
presentations indude:
• GASB Statement No. 83, Certain Assets Retirement Obligations, effective for fiscal years beginning after June 15, 2018;
• GASB Statement No. 84, RduciatyActMties, effective for fiscal years beginning after December 15, 2018;
• GASB Statement No. 87, Leases, effective for fiscal years beginning after December 15, 2019;
• GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placerrunts,
effective for fiscal years beginning after June 15, 2018; and
• GASB Statement No. 89, Accounting for Interest Cast Incurred Before the End of a Construction Period, effective for
fiscal years beginning after December 15, 2019.
22
145
ATTACHMENT 9
17'1GO
Certified
Public
Accountants
Independent Auditor's Report on Compliance
With Aspects of Contractual Agreements
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with auditing standards generally accepted in the United States
of America, and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of
the Riverside County Transportation Commission (the Commission) as of and for the year ended
June 30, 2018, and the related notes to the financial statements, which collectively comprise the
Commission's basic financial statements, and have issued our report thereon dated October 30,
2018.
In connection with our audit, nothing came to our attention that caused us to believe that the
Commission failed to comply with the terms, covenants, provisions or conditions of Sections
6.2(g) and 6.2(I) contained in the Reimbursement Agreement, dated October 1, 2014, with State
Street Bank and Trust Company, a wholly -owned subsidiary of State Street Corporation, related
to the Commercial Paper Notes (Limited Tax Bonds) Series A, insofar as they relate to accounting
matters. However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed additional procedures, other matters may have
come to our attention regarding the Commission's noncompliance with the above -referenced
terms, covenants, provisions or conditions of the Reimbursement Agreement, insofar as they
relate to accounting matters.
The report is intended solely for the information and use of the Board of Commissioners and
management of the Commission and State Street Bank and Trust Company and is not intended
to be, and should not be, used by anyone other than these specified parties.
i
oecIo4S gikr 6 0Conitei Z5)
Newport Beach, California
October 30, 2018
Macias Gini & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
146
www.mgocpa.com
ATTACHMENT 10
MGO
Certified
Public
Accountants
November 5, 2018
To the Audit Ad Hoc Committee
Riverside County Transportation Commission
Riverside, California
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the Riverside County Transportation
Commission (the Commission) for the year ended June 30, 2018. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing standards,
Government Auditing Standards and the Uniform Guidance, as well as certain information related to the
planned scope and timing of our audit. We have communicated such information in our letter to you dated
July 1, 2018. Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Commission are described in Note l to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during the year.
We noted no transactions entered into by the Commission during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from
those expected. The most sensitive estimates affecting the Commission's financial statements were:
• Fair values of investments are based on quoted market prices or significant other observable inputs
from independent published sources;
• Depreciation estimates for capital assets are based on estimated useful lives for capital assets;
• Valuations of actuarially determined contributions, deferred outflows of resources, deferred
inflows of resources and net OPEB liability for the Commission's OPEB plan are based on actuarial
calculations, which incorporate actuarial methods and assumptions adopted by the Board of
Commissioners;
• Valuations of actuarially determined contributions, deferred outflows of resources, deferred
inflows of resources and net pension liability for the Commission's employee pension plan are
based on actuarial calculations, which incorporate actuarial methods and assumptions adopted by
the Board of Commissioners;
Macias Ginl & O'Connell LLP
4675 MacArthur Court, Suite 600
Newport Beach, CA 92660
1
147
www.mgocpa.com
" C o s t s o f t h e I - 1 5 C o r r i d o r I m p r o v e m e n t P r o j e c t t h a t a r e c a p i t a l i z e d v e r s u s n o t c a p i t a l i z e d a r e b a s e d
u p o n m a n a g e m e n t '