2005 st. louis metro comprehensive annual financial report

8/6/2019 2005 St. Louis Metro Comprehensive Annual Financial Report

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Comprehensive Annual

Financial ReportFISCAL YEAR ENDED JUNE 30, 2005

Bi-State Development Agencyof the Missouri-Illinois Metropolitan District

St. Louis, Missouri



BI-STATE DEVELOPMENT AGENCYOF THE MISSOURI-ILLINOIS METROPOLITAN DISTRICT

DBA “METRO”

TABLE OF CONTENTS

INTRODUCTORY SECTION

Table of Contents............................................................................................................... iLetter of Transmittal ...........................................................................................................iiCertificate of Achievement for Excellence in Financial Reporting.....................................xiPrincipal Officers..............................................................................................................xiiOrganizational Chart .......................................................................................................xiii

FINANCIAL SECTION

Report of Independent Auditors .................................................................................... 2

Management’s Discussion & Analysis ......................................................................... 4Basic Financial StatementsCombined Statements of Net Assets .................................................................. 10Combined Statements of Revenues, Expenses and

Changes in Net Assets..................................................................................... 12Combined Statements of Cash Flows................................................................. 13Notes to Combined Financial Statements ........................................................... 15

Supplemental SchedulesReport of Independent Auditors on Supplemental Information ........................... 48Combining 2005 Schedule of Net Assets............................................................ 49Combining 2005 Schedule of Revenues, Expenses and

Changes in Net Assets..................................................................................... 51

Combining 2005 Schedule of Cash Flows .......................................................... 52Combining 2004 Schedule of Net Assets............................................................ 55Combining 2004 Schedule of Revenues, Expenses and

Changes in Net Assets..................................................................................... 57Combining 2004 Schedule of Cash Flows .......................................................... 58

STATISTICAL SECTION

Operating DataGeneral Agency .................................................................................................. 61Gateway Arch Tram System ............................................................................... 62Gateway Arch Parking Facility ............................................................................ 63Gateway Arch Riverboats ................................................................................... 64

St. Louis Downtown Airport ................................................................................. 65Continuing Disclosure Requirements

Gateway Arch Parking Facility ............................................................................ 66Bi-State Transit System

Historical Sources and Operating Expenses........................................... 67Historical Sources and Uses by Mode..................................................... 68Prop M Sales Tax and Appropriations..................................................... 69Use of Prop M Sales Tax ........................................................................ 70Ridership and Mileage Trends ................................................................ 71

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BI-STATE DEVELOPMENT AGENCYOF THE MISSOURI-ILLINOIS METROPOLITAN DISTRICT

DBA “METRO”

November 3, 2005

Mr. Hugh Scott, III, andMembers of the Board of CommissionersBi-State Development Agency (d/b/a/ METRO)of the Missouri-Illinois Metropolitan District

Gentlemen:

State law requires that governmental agencies publish within six months of the close of each fiscalyear a complete set of financial statements presented in conformity with U.S. Generally Accepted

Accounting Principles (U.S. GAAP) and audited in accordance with U.S. Generally Accepted Auditing Standards by a firm of licensed certified public accountants. Pursuant to that requirement,we hereby transmit the Comprehensive Annual Financial Report of the Bi-State Development

Agency of the Missouri-Illinois Metropolitan District (dba “Metro”), for the fiscal year ended June 30,2005.

This report consists of management’s representations concerning the finances of Metro.Consequently, management assumes full responsibility for the completeness and reliability of all

the information presented in this report. To provide a reasonable basis for making theserepresentations, management of Metro has established a comprehensive internal controlframework that is designed both to protect the Agency’s assets from loss, theft, or misuse and tocompile sufficient, reliable information for the preparation of Metro’s financial statements inconformity with U.S. GAAP. Because the cost of internal controls should not outweigh the benefits,Metro’s controls have been designed to provide reasonable rather than absolute assurance thatthe financial statements will be free from material misstatement. As management, we assert thatto the best of our knowledge and belief, this financial report is complete and reliable in all materialrespects.

The independent audit involved examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements, assessing the accounting principles used and significant

estimates made by management, and evaluating the overall financial statement presentation. Theindependent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that Metro’s financial statements for the fiscal year ended June 30,2005, are fairly presented in conformity with U.S. GAAP. The independent auditor’s reportprecedes the Management Discussion and Analysis (“MD&A”) in the financial section of this report.

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The independent audit of the financial statements of Metro was part of a broader, federallymandated “Single Audit” designed to meet the special needs of the federal grantor agencies. Thestandards governing Single Audit engagements require the independent auditor to report not onlyon the fair presentation of the financial statements, but also on the government’s internal controlsand compliance with legal requirements, with special emphasis on internal controls and legal

requirements involving the administration of federal awards. These reports are available in the Agency’s separately issued Single Audit Report on conformity with the provisions of the UnitedStates Office of Management and Budget Circular A-133.

Basic Financial Statements. These statements include the statements of net assets at June30, 2005 and 2004, statements of revenues, expenses, and changes in net assets, andstatements of cash flows for the years ended June 30, 2005 and 2004.

U.S. GAAP requires that management provide a narrative introduction overview and analysis toaccompany the basic financial statements in the form of Management’s Discussion and

Analysis. This letter of transmittal is designed to complement MD&A and should be read inconjunction with it. Metro’s MD&A can be found immediately after the report of the independent

auditors. This is the third year Metro has prepared financial statements following Governmental Accounting Standards Board (“GASB”) Statement 34, Basic Financial Statements – andManagement’s Discussion and Analysis – for State and Local Governments.

Agency Profile

Historical Overview. The Bi-State Development Agency (the ”Agency”) was established onSeptember 20, 1949, by an interstate compact passed by the state legislatures of Illinois andMissouri, and approved by the governors of the two states. The compact was approved by theUnited States Congress and signed by President Harry S. Truman on August 31, 1950. A ten-member Board of Commissioners sets policy and direction for the Agency. The governors of thestates of Illinois and Missouri appoint five commissioners each, who must be resident voters of the

prospective state, to terms of up to five years. The compact created an organization that hadbroad powers with the ability to plan, construct, maintain, own and operate bridges, tunnels,airports and terminal facilities, plan and establish policies for sewage and drainage facilities andother public projects, issues bonds and exercise such additional powers as conferred upon it by itslegislatures of both states.

In the first years of existence, the Agency participated in or conducted several studies whichincluded a comprehensive plan for development of the Missouri-Illinois Metropolitan District,sponsoring a survey of chemical and biological pollution of the Mississippi River, and an exhaustivestudy of the St. Louis County sewer problem that led to a new sewer law that created theMetropolitan St. Louis Sewer District. The Agency also sponsored a coordinated interstatehighway planning action related to surveying highways and expressways. The most significant

project undertaken in the early years was the construction of a 600-foot wharf at Granite City,Illinois, in 1953.

The diversified organization we know today began in 1962, when the Agency was asked to fundand operate the tram system that would carry visitors to the top of the Gateway Arch Monument. A$3.3 million revenue bond issue was completed in July 1962, and the Agency’s relationship withthe Gateway Arch began. An agreement was reached in October 1962, that the Agency wouldassist in the re-opening of Parks Metropolitan Airport in Cahokia, Illinois. After a series of approvaland resolutions, the Agency purchased the Airport in 1964 for $3.4 million. In July 1999, by Board

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mandate of full ADA compliance. Currently, this mode of transportation carries over 676,000customers annually.

Business Enterprises

All other operating entities fall under the Business Enterprises umbrella. The Gateway Arch hasenjoyed significant success since inception, and is the most recognized landmark in the St. Louisregion. It is one of the most visited national memorials, attracting three million visitors yearly andcarrying one million tram riders to the top annually. The Arch Parking Facility provides parkingamenities to visitors of the Arch, riverfront and Laclede’s Landing. Vehicle transactions are above295,000 annually. Gateway Arch Riverboats operate the Becky Thatcher and Tom Sawyer Riverboats, which preserve the riverfront experience. Cross-promotional marketing opportunitieswith the Arch and deck facilities renovations have increased sales since Metro took ownership in2001. The St. Louis Downtown Airport is a full-service aviation center offering a complete line of general aviation services just eight minutes from downtown St. Louis. The airport is the fifthbusiest reliever airport in Illinois. It received the Illinois 2002 Reliever Airport of the Year award.Groundbreaking took place in October 2005, for a new $6.5 million air traffic control tower that is

scheduled for completion in April 2007.

Budget Process. The annual budget serves as the foundation for Metro’s financial planning andcontrol. All enterprises are required to submit requests for expenditures in the budget cycleimmediately prior to a new fiscal year. These requests are used as a starting point for budgetdevelopment. The preparation and eventual approval of the annual budget is both an internal andexternal process. The proposed budget is presented to the Board of Commissioners for approval.

Adoption of the budget by the Board of Commissioners completes the internal process. For theGateway Arch, the National Park Service must also approve the annual budget. After Boardapproval, Metro’s budget is subjected to a lengthy external review process. In Missouri, Metro’sbudget is reviewed by the Public Transportation Commission in St. Louis County and advanced to

the County Executive. The County Executive submits a bill to the County Council, which mustapprove the bill. In St. Louis City, the Ways and Means Committee of the Board of Aldermenreviews the budget prior to adoption by the Board. The Board of Estimates and Apportionmentauthorizes payments. In Illinois, the budget is presented for review to the St. Clair County TransitDistrict, however, the District and Metro negotiate service under a five-year contract. The Metrobudget is incorporated into the region Transportation Improvement Plan (“TIP”) and must haveEast-West Gateway Coordinating Council (“EWGCC”) approval. The approved plan isincorporated into the Missouri and Illinois Department of Transportation plans as part of eachstate’s TIP. Final review by the Federal Transit Authority is required for grant application andreceipt of federal funds.

Recent history related to federal funding begins with the Intermodal Surface TransportationEfficiency Act (“ISTEA”) of 1991, which authorized federal highway and transit funding programs.

ISTEA created a central transportation planning role for Metropolitan Planning Organizations(“MPOs”) in metropolitan areas with populations over 50,000, in an effort to ensure that federalfunds were being efficiently used to maximize mobility and accessibility, and to minimizetransportation related fuel consumption and air pollution. That responsibility continued under theTransportation Equity Act for the 21st Century (“TEA-21”) from 1998 to its expiration on September 30, 2003.

SAFETEA-LU – The Safe, Accountable, Flexible and Efficient Transportation Equity Act, A Legacyfor Users of 2003, was signed into law on August 10, 2005. This multi-year reauthorization bill for

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surface transportation provides $286.4 billion for highways and mass transit for the period 2004-2009. This is a 30% increase in funding over TEA-21.

SAFETEA-LU provides more flexibility in the decision-making authority of state and local entities byblock granting or formularizing many discretionary funds previously earmarked by the U.S.

Congressional Appropriations Committee. The Job Access and Reverse Commute (“JARC”)program, previously a discretionary program, has been established as a formula program.Recipients in urbanized areas with a population of 200,000 or more will now conduct area-widesolicitations for applications to the program. In addition, the New Freedoms program is a newlyestablished formula program that will expand transportation mobility options available to personswith disabilities beyond the requirements of the ADA.

SAFETEA-LU also revises the Section 5307 Urbanized Area Formula Grant to include a formulaallocation for Growing and High Density states. Over and above the population, population densityand level of transit service provided under Section 5307 funding, Section 5340 funds (included inthe Section 5307 allocation) are sub-allocated to urbanized areas based on the state’s populationforecast for fifteen years after the date of the census.

Changes to Section 5309 Capital Investment grants program (“New Starts”) will also provideflexible funding alternatives for future large dollar capital projects. In addition, there is greater opportunity for innovative financing, as well as improved oversight and accountability of federalfunds.

SAFETEA-LU continues to require coordination with MPO’s. Metro will continue to work with theregion’s MPO, East West Gateway Council of Governments, to develop long-range transportationplans for the metropolitan area. The Long Range Transportation Plan, entitled Legacy 2030,addresses plans that include new MetroLink light rail corridors, capital enhancements to theMetroLink system, expanded Metro Call-A-Ride services, clean air buses, transfer centers and amulti-modal complex.

As a part of the planning process for major investments using federal funds, such as theconstruction of a light rail line, the development of a Major Transportation Investment Analysis(“MTIA”) is required. The MTIA defines the transportation problems in a particular transportationcorridor and analyzes potential solutions. The MTIA is initiated and managed by EWGCC withrespect to future light rail lines and commuter rail lines. An MTIA must be completed for a selectedcorridor before federal funding of a major investment can be requested.

Factors Affecting Financial Condition

The information presented in the financial statements is perhaps best understood when it isconsidered from the broader perspective of the environment in which Metro operates. Metro isfunded by a combination of regional sales taxes, service contracts, passenger fares, federal funds,advertising, investment and other auxiliary revenues. Business Enterprises generate operatingrevenues by business segment.

Local Economy. Economic events taking place in the St. Louis region have mirrored those takingplace at the national level. The region has emerged positively from a period of economicstagnation, although growth in employment has remained persistently below that experienced inprevious periods of economic expansion. In June of 2004, the Federal Reserve Bank began acampaign of aggressive interest rate increases to forestall growth-related inflation. Short-term

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interest rates, which had been at historic lows, essentially tripled during the year. Unemploymentgenerally impacts sales taxes with the fall of retail sales, however, “this is a two- edged sword” for Metro, as ridership trends downward during periods of increased unemployment. This year, despiteunemployment and a fare increase, ridership remained stable due to escalating fuel costsnationwide. In fiscal year 2005, St. Louis City just returned to fiscal year 2001 levels, while St. Louis

County sales tax collections have increased over the 2001 collections for the past two fiscal years.Compared to fiscal year 2004, the ½ and ¼ cents sales tax collections increased 1.4% and 1.9%respectively. The State of Missouri provides operating assistance of $1.36 million for fiscal year 2006.

Certainly the Gateway Arch, Arch Parking Facility, Riverboats, and the St. Louis Downtown Airporthave been negatively impacted by the slumping economic cycle, mainly attributed to a slowing of the tourism and business travel segment. While most of these enterprises have experienceddeclines in business volume which have not yet returned to fiscal year 2000 levels, they have beenable to capitalize on the ability to raise unit prices and keep operating income stable over the lastfour years.

Market trends have begun to improve in recent months and continue to trend upward in fiscal year 2006. Major employers in the region include healthcare, aerospace, retail department stores,supermarkets, food service and universities. These industries have been reasonably stable for thelast several years.

St. Louis is a diverse community with much to offer. The population continues to grow and the citycontinues to work to attract new jobs and business each year. St. Louis Metropolitan area rankingsduring fiscal year 2005 are as follows:

FY2005

Population 18th

Media Market 16th

Corporate HQ's (Fortune 500) 6thHouseholds 15th

Airport (flights in North America) 21st largest Rail Center 2 nd in jobsInland Port 3rd largest Cost of living of top 20 metro areas 7th lowest Housing Affordability 2nd most affordableManufacturing 9th

(Source: St. Louis RCGA, St. Louis Commerce Magazine, City of St. Louis 2004 )

Annual Plan. The fiscal year (“FY”) 2006 operating and capital budget cycle has been completed.

In FY2006, the plan calls for a 0.6% increase in expenses for all enterprises as compared to theFY2005 budget. Base fares increased on bus and rail $.15 and $.25 respectively, on August 22,2005. Fares were increased to cover the rising cost of energy. Operationally, Metro anticipatesthat service levels will remain stable. Business Enterprises anticipate continuing cross-promotionalopportunities between operating units. Adult ticket increases went into effect at the Gateway Archin January 2005, and hangar rentals at the St. Louis Downtown Airport increased as well. All other 0business enterprises continued with current rates in FY2006.

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implementation of the new information technology systems, and upgrade of infrastructure projectson all enterprises. Groundbreaking for a new air traffic control tower at the St. Louis Downtown

Airport is the largest capital project in the Business Enterprises segment.

Mid-Range Plan. The Metro System is required to prepare a three-year plan to be included in the

region’s TIP. Over the next three years, Metro anticipates completing the Cross County MetroLinkextension and opening it for operation. The three-year program includes beginning to plan theMetroSouth alignment, “major bridge rehabilitation,” routine vehicle replacement, and themodernization of information and bus intelligence systems. The expected cost of the three-year capital program, if implemented, totals $752.4 million.

Long-Range Strategic Plan. Metro also reviews the 20-year vision from a regional perspectiveon an annual basis. That vision includes economic development, infrastructure maintenance andrepair, modernization of information technology, bus intelligence systems and a radio network inaddition to routine vehicle replacement. As the regional implementing agency for transportation,Metro must ensure that all MetroLink expansion projects originate from Legacy 2030, which is theregional long-range plan created by the region’s MPO. The current plan assumes MetroLink

expansion through the completion of the Cross County Project, and MetroSouth, with the DanielBoone Corridor under construction. The total operating and capital costs will exceed $7.2 billion bythe end of this 20-year period. Currently, Metro projects a capital and operating shortfall over 20years of $1.1 billion. Should the region generate more revenue for transportation throughadditional taxes or other means, MetroLink will expand. It is the intent of the region to designconstruct and implement a network of MetroLink corridors and continue to integrate the bus anddemand response service with MetroLink, providing the region with a modern, efficient 21st centurytransportation system.

Sources of Local Match Funding for Capital and Operating Budgets. The predominantsources of revenue include regional sales taxes, federal grant funds, funds from the IllinoisDepartment of Transportation, State of Missouri subsidies, passenger revenue, and auxiliary

income. These revenues are broken into jurisdictions:

Illinois Sources. Funding for Illinois projects comes from two sources: capital contributions fromthe State of Illinois and payments for services from St. Clair County. The Illinois Department of Transportation (“IDOT”) is authorized to provide capital assistance to Metro for capital grants,covering up to 100% of the local share requirement. Historically, IDOT has almost always directlyprovided the full local match for capital projects located in Illinois, buses used to provide service inIllinois, and a share of the capital projects that benefit Illinois but are located in Missouri. EffectiveJanuary 1, 1995, St. Clair County adopted an additional ½ cent countywide sales tax. The revenuefrom this tax can be used only for capital projects or operating and maintenance costs related toMetroLink light rail systems. St. Clair County Transit District contracts with Metro for bus and lightrail service and ATS maintenance.

Missouri Sources. Funding for Missouri projects comes from the City of St. Louis, St. LouisCounty and the Missouri Department of Transportation (“MoDOT”). The City of St. Louis and St.Louis County receive revenue from a ½ cent and a ¼ cent local sales tax. Both the City and theCounty appropriate all of their receipts from the ¼ cent sales tax to Metro. The City of St. Louisappropriates virtually all of its revenues from the ½ cent sales tax to Metro (97%). The Countyappropriates approximately $44 million to Metro per year, and uses the balance of its ½ cent salestax revenue for road and bridge projects throughout the County. Beginning in FY2002, the

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County’s ½ cent sales tax appropriation escalates with the Consumer Price Index. ThroughMoDOT, Metro receives limited operating and FTA discretionary capital assistance. At least twopercent of the appropriations to Metro from the ½ cent sales tax must be used for transportation for developmentally disadvantaged persons. The balance is usually required to fund Missourioperations.

Debt Administration. Metro has the power to issue revenue bonds or other methods of debt asnecessary for the operation of its enterprises. Metro does not have taxing authority. Readers aredirected to the statistical section for pertinent, continuing disclosure requirements. In November 2002, Metro issued the Mass Transit Sales Tax Appropriation Bonds related to the Cross CountyMetroLink Construction project and they are reflected in the footnote disclosure as part of long-termindebtedness outstanding. On November 2, 2005, Metro issued $150 million in additional bondsrelative to Cross County. For further discussion of this event occurring subsequent to fiscal year end June 30, 2005, see the footnote disclosures.

Cash Management Policies and Practices. Metro’s investment policy and procedures specifythe preservation of funds and the provision of operational liquidity the first and second priority,

respectively. In practice, Metro seeks to obtain a competitive yield on its portfolio whilemaintaining a high degree of liquidity and minimizing credit and market risk. (A competitive yield isdefined as the yield on the ninety day Treasury bill.) The policy specifies which investments maybe purchased and maturity and diversification limitations. All unrestricted investments aredelivered to Metro’s safekeeping agent before they are paid for and held in Metro’s name.Restricted cash is invested according to the investment policy specified by each respective trustindenture, lease or cooperative agreement. Unrestricted cash is pooled, when beneficial, for investment purposes.

Uncollateralized restricted deposits are limited to those financial counterparties, which have andmaintain certain credit ratings, as specified by nationally recognized credit rating organizations.Policy and state statutes require that other deposits be collateralized either with securities placed

into joint safekeeping with Metro and held at a third party custodian, or with surety bond.

Average monthly yields on investments in fiscal year 2005 ranged from a low of 1.39% to a highof 3.08%. For comparison purposes, the average yield on ninety-day Treasury bills ranged froma low of 1.36% to a high of 3.04% for the same period.

Risk Management. Metro self-insures a substantial portion of the risk of its operations, includingautomobile and rail liability, workers’ compensation and general liability. Excess insurancecoverage is purchased for all insured and self-insured risk exposures. Property insurance ispurchased for Metro’s building, physical assets and rolling stock. Primary liability insurance ispurchased for the Airport, Arch, Arch Parking Facility, Riverboats, and Headquarters building.Reserves are established on an accident year basis for workers’ compensation and liability

exposures and costs are incurred as current liabilities.

Risk Management & Safety introduced a number of safety and cost control measures designed toreduce the cost of Metro’s self-insured workers’ compensation program. Costs are now allocatedto operating units and a comprehensive medical management program is in place. Total workers’compensation costs for FY2005 were $2.5 million. The Risk Management & Safety departments,along with the assistance of the Federal Transit Authority’s Transportation Safety Institute, conductclasses that help to reduce accidents and improve prevention methods.

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Metro also maintains self-insurance programs for employee medical, dental and life insuranceclaims. Medical self-insured programs are administered through a third-party administrator. Theestimated liabilities for injury and damage, medical and dental claims are charged to operations inthe year the claim occurs. Management believes the estimated liabilities for all unsettled injury,damage, medical and dental claims as of June 30, 2005, are adequate to satisfy all claims for

events that have occurred through that date.

Effective August 28, 2005, Metro is entitled to statutory protection against excessive claims or judgments that might arise from vehicle accidents or injuries that occur on Metro property (RSMOs37.610), and provides statutory caps on damages for those categories.

Pension and Other Post Employment Benefits. Metro sponsors four single-employer definedbenefit pension plans for its employees. Each year, an independent actuary engaged by thepension plan calculates the amount of the annual contribution that Metro must make to the pensionplans to ensure that the plans will be able to fully meet their obligations to retired employees on atimely basis. As a matter of policy, Metro fully funds each year’s annual required contribution to thepension plan as determined by the actuary. As a result of Metro’s conservative funding policy,

each plan is adequately funded as of June 30, 2005.

Awards and Acknowledgements

The Government Finance Officers Association of the United States and Canada (“GFOA”) awardeda Certificate of Achievement for Excellence in Financial Reporting to Metro for its comprehensiveannual financial report (“CAFR”) for the fiscal year ended June 30, 2004. The Certificate of

Achievement is a prestigious national award recognizing conformance with the highest standardsfor preparation of state and local government financial reports.

In order to be awarded a Certificate of Achievement, a government unit must publish an easilyreadable and efficiently organized comprehensive annual financial report, whose contents conform

to program standards. Such reports must satisfy both accounting principles generally accepted inthe United States of America, and all applicable legal requirements. A Certificate of Achievementis valid for a period of one year only. We believe that our current CAFR meets the Certificate of

Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.

Metro’s preparation of the Comprehensive Annual Financial Report on a timely basis could nothave been accomplished without the dedicated effort of the Finance Division of Metro. Again, weextend our sincere appreciation to the independent accounting firm of Mayer Hoffman McCannP.C. for their assistance. Lastly, Metro thanks each of the governing bodies providing the supportand resources necessary to prepare this report including the States of Missouri and Illinois, the Cityof St. Louis, St. Louis County, and the Transit District of St. Clair County.

Respectfully submitted,

_______________________ _________________________Larry E. Salci John M. NocePresident & Sr. Vice President &Chief Executive Officer Chief Financial Officer

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Principal Officers

Board of Commissioners

Missouri Illinois

Hugh Scott, III, Chair Jeffrey K. Watson, Vice Chair

Harvey A. Harris Fonzy Coleman, SecretaryDr. Richard LaBore Michael W. Fausz

Kevin S. Cahill David Dietzel

Lewis L. McKinney David R. Tanzyus

Executive Officers

Larry E. Salci, President & Chief Executive Officer

Thomas Sehr, Executive Vice President, Administration

Raymond A. Friem, Senior Vice President, Operations

Stephen G. Knobbe, Senior Vice President, Engineering & New System Development

Jennifer H. Nixon, Senior Vice President, Business Enterprises

John M. Noce, Senior Vice President & Chief Financial Officer

M. Celeste Vossmeyer, General Counsel

Debra S. Erickson, Vice President, Information Systems

Martha Bloodsaw, Vice President, Human Resources

Adella D. Jones, Vice President, Governmental Affairs & Community Relations

Financial and Other Support Personnel

Sharon H. Edison, Director, Accounting Services

Kathy S. Klevorn, Director of Financial Planning, Budget & Grants

Paul D. Welp, Director, Treasury Services

Craig S. Macdonald, Director, Risk Management, Claims & SafetyRandy S. McGuire, Director, Passenger Revenue

Charles N. Middlebrooks, Director, Internal Audit

Deborah G. Lewis, Manager, General Accounting

Tracy L. Beidleman, Manager, Program Development, Capital Budget & Grants

Kathy A. Hunt, Director, Procurement & Materials

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M e t r o

O r g a n i z a t i o n a l C h

a r t

I n t e r n a l A u d i t

G e n e r a l C o u n s e l

C o m m u n i t y R e l a t i o n s

G o v e r n m e n t A f f a i r s

Q u a l i t y A s s u r a n c e

F i n a n c i a l S y s t e m s

S o f t w a r e & S u p p o r t

O p e r a t i o n s

I T I n f r a s t r u c t u r e

I n f o r m a t i o n T e c h n o l o g y

A D A S e r v i c e s

M a t e r i a l M a n a g e m e n t

& P r o c u r e m e n t

H u m a n R e s o u r c e s

A d m i n i s t r a t i o n

R i s k M a n a g e m e n t

P a s s e n g e r R e v e n u e

T r e a s u r y S e r v i c e s

A c c o u n t i n g S e r v i c e s

B u d g e t & G r a n t s

F i n a n c e

M a r k e t i n g &

C u s t o m e r S e r v i c e

P l a n n i n g &

S y s t e m s D e v e l o p m e n t

P a r a t r a n s i t

T r a n s p o r t a t i o n

E q u i p m e n t M a i n t e n a n c e

B u s T r a n s p o r t a t i o n

R a i l T r a n s p o r t a t i o n

T r a n s i t O p e r a t i o n s

F a c i l i t i e s &

R O W M

a i n t e n a n c e

A r t s i n T r a n s i t

R e a l E s t a t e

A c q u i s i t i o n

R a i l S y s t e m s

E n g i n e e r i n g &

C o n s t r u c t i o n S u p p o r t

E n g i n e e r i n g & N e w S y s t e m s

E c o n o m i c

D e v e l o p m e n t

G a t e w a y A r c h

R i v e r b o a t s

S t . L o u i s

D o w n t o w n A i r p o r t

G a t e w a y A r c h

P a r k i n g F a c i l i t y

G a t e w a y A r c h T r a m

T r a n s p o r t a t i o n S y s t e m

B u s i n e s s E n t e r p r i s e s

P r e s i d e n t & C E O

B o a r d o f

C o m m i s s i o n e r s

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Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictFinancial StatementsFor the Years Ended June 30, 2005 and 2004



Bi-State Development Agency of theMisouri-Illinois Metropolitan DistrictIndex to Financial SectionJune 30, 2005 and 2004

Page

Index…………………………………………………………………………………..……………….……1

Report of Independent Auditors......................................................................................................2

Management’s Discussion & Analysis ............................................................................................4

Basic Financial Statements

Combined Statements of Net Assets.....................................................................................10

Combined Statements of Revenues, Expenses and Changes in Net Assets........................12

Combined Statements of Cash Flows ...................................................................................13

Notes to Combined Financial Statements .............................................................................15

Supplemental Schedules

Report of Independent Auditors on Supplemental Information ........................................48Combining 2005 Schedule of Net Assets ........................................................................49Combining 2005 Schedule of Revenues, Expenses and

Changes in Net Assets .................................................................................................51Combining 2005 Schedule of Cash Flows .......................................................................52

Combining 2004 Schedule of Net Assets ........................................................................55Combining 2004 Schedule of Revenues, Expenses andChanges in Net Assets .................................................................................................57

Combining 2004 Schedule of Cash Flows.......................................................................58

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Report of Independent Auditors

Board of CommissionersBi-State Development Agency of theMissouri-Illinois Metropolitan District

We have audited the accompanying combined financial statements for the Bi-StateDevelopment Agency of the Missouri-Illinois Metropolitan District (the “Agency”) as of and for the years ended June 30, 2005 and 2004, which collectively comprise the Agency’s basicfinancial statements as listed in the index to the Financial Section. These financial statementsare the responsibility of Agency management. Our responsibility is to express opinions on

these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basis for our opinions.

The operation of the Agency is dependent upon the Agency's ability to obtain operatingassistance as described in Note 11 to the basic financial statements. While resources exist tomeet present obligations, revenues derived from operations are not adequate to meet theexpenses of continued operation without such operating assistance.

In our opinion, the combined financial statements referred to above present fairly, in allmaterial respects, the respective financial position of Bi-State Development Agency of theMissouri-Illinois Metropolitan District as of June 30, 2005 and 2004, and the respectivechanges in financial position and cash flows, for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated

November 3, 2005, on our consideration of Bi-State Development Agency of the Missouri-Illinois Metropolitan District’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements andother matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing and not toprovide an opinion on the internal control over financial reporting or on compliance. Thatreport is an integral part of an audit performed in accordance with Government AuditingStandards and should be considered in conjunction with this report in considering the resultsof our audits.

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The management’s discussion and analysis information on pages 4 through 9, are not arequired part of the basic financial statements but are supplementary information required byaccounting principles generally accepted in the United States of America. We have appliedcertain limited procedures, which consisted principally of inquiries of management regarding

the methods of measurement and presentation of the required supplementary information.However, we did not audit the information and express no opinion of it.

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Bi-State Development Agency of the Missouri-Illinois MetropolitanDistrict’s basic financial statements. The introductory section and statistical section arepresented for purposes for additional analysis and are not a required part of the basicfinancial statements. The introductory section and statistical section have not been subjectedto the auditing procedures applied in the audit of the basic financial statements and,accordingly, we express no opinion on them.

November 3, 2005St. Louis, Missouri

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Bi-State Development Agency of theMisouri-Illinois Metropolitan DistrictManagement’s Discussion and AnalysisJune 30, 2005 and 2004

The following represents the Management Discussion and Analysis (“MD&A”) of the financialactivities and performance of the Bi-State Development Agency (“Metro”). The MD&A

provides the reader with an introduction and overview to the basic financial statements of Metro for the fiscal year ended June 30, 2005. The information contained in this MD&Ashould be considered in conjunction with the information contained in the letter of transmittalfound in the introductory section.

Following this MD&A are the basic financial statements of Metro together with the notes andcombining financial statements that are essential to a full understanding of Metro’s financialperformance.

FINANCIAL HIGHLIGHTS

Key financial highlights for 2005 are as follows:

Total assets decreased $87.8 million or 4.4 percent.

Metro’s total assets exceeded liabilities (net assets) by $1.0 billion as of June 30, 2005,$178 million of which are unrestricted net assets and are available to meet Metro’songoing obligations.

Total net assets decreased $99 million, or down 8.7 percent from the prior year.

Total operating revenues increased $4.9 million or 11 percent.

Total operating expenses increased $5.4 million or 2.3 percent.

Total nonoperating revenues increased $23.8 million or 15.4 percent over prior year.

Capital contributions consist of Federal, State of Illinois, and local capital contributionstotaling $14.2 million for fiscal 2005, representing a $49.3 million or 77.7 percent decreasefrom prior year.

BASIC FINANCIAL STATEMENTS - OVERVIEW

Metro’s basic financial statements are comprised of the fund financial statements and notesto the financial statements. This report also contains other supplementary information inaddition to the basic financial statements.

Fund financial statements. A fund is a grouping of related accounts that is used to maintaincontrol over resources that have been segregated for specific activities or objectives. All of the funds of Metro are proprietary funds.

Proprietary funds. Metro maintains one type of proprietary fund to account for its financialactivities. Enterprise funds are used by Metro to account for the General Agency, Arch Tram,

Arch Parking Facility, Arch Riverboats, St. Louis Downtown Airport and Bi-State TransitSystem Funds.

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The basic financial statements start on Page 10.

Notes to the financial statements. The notes provide additional information that is essentialto a full understanding of the data provided in the fund financial statements. These notesbegin on Page 15 of this report.

Other information. In addition to the basic financial statements and accompanying notes,this report also presents certain additional supplementary information concerning combiningschedules for both fiscal years and can be found as part of the supplementary information.The statistical section includes operating data and required continuing disclosurerequirements. The statistical section follows the Supplementary Information within theFinancial Section of the Comprehensive Annual Financial Report.

FINANCIAL ANALYSIS

As noted in the financial highlights, Metro’s total assets exceeded liabilities (net assets) by$1.0 billion as of June 30, 2005. The most significant portion of Metro’s net assets isreflected in its investment in capital assets, such as building and improvements, revenue-producing vehicles, improvements and equipment.

Statements of Net Assets: These statements present information on all of Metro’s assetsand liabilities, with the difference between the two reported as net assets. Over time,increases or decreases in net assets may be a useful indicator of whether the financialposition of Metro is improving or deteriorating. Information on all Metro funds is detailed in thecombining schedules found in the supplemental section. The table below, which is presentedin thousands, provides a summary of Metro’s net assets for 2005 compared to 2004.

2005 2004 Incr (Decr) % ChangeAssets

Noncapital assets 595,345$ 775,871$ (180,526)$ (23.3) %Capital assets 1,303,306 1,210,629 92,677 7.7

Total assets 1,898,651 1,986,500 (87,849) (4.4)

LiabilitiesCurrent liabilities 122,888 125,217 (2,329) (1.9)Long-term liabilities 733,572 719,966 13,606 1.9

Total liabilities 856,460 845,183 11,277 1.3

Net AssetsInvested in capital assets 863,884 909,482 (45,598) (5.0)Unrestricted net assets 178,307 231,835 (53,528) (23.1)

Total net assets 1,042,191 1,141,317 (99,126) (8.7)

Total liabilities and net assets 1,898,651$ 1,986,500$ (87,849)$ (4.4) %

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Total assets amounted to $1.9 billion as of June 30, 2005, as compared to $2.0 billion as of June 30, 2004. Non-capital assets primarily consist of unrestricted and restricted cash and

investments, and decreased $180.5 million due to the use of the proceeds of the MassTransit Sales Tax Appropriation Bonds for the MetroLink Cross County Extension. Accordingly, combined capital assets including construction in process increased $92.7million. The net result is an overall decrease of $87.8 million or 4.4 percent decrease in totalassets from prior year.

Metro’s total net assets decreased $99.1 million, or 8.7 percent, from the prior year. Thisdecrease is attributable to capital contributions net of debt and operating assistance in excessof operating losses.

Total liabilities increased $11.3 million, or 1.3 percent and results from the timing of paymentsof obligations at year-end. In addition, Metro recorded $8.5 million liability for a derivative

financial instrument related to the Mass Transit Sales Tax Appropriation Bonds.Statements of Revenues, Expenses, and Net Assets: Total operating revenues increased$4.9 million or 11 percent. Transit passenger revenues accounted for $37.8 million inrevenue or 74.6 percent of total operating revenues. During the year, the Board of Commissioners approved across-the-board fare increases effective August 2004.

Total operating expenses increased $5.4 million, or 2.3 percent, over prior year. Increasedmaterials and supplies costs including, diesel fuel (increase of $3.2 million), services(increase of $1.2 million) and casualty and liability costs (increase of $2.0 million), primarilycontribute to this variance which is offset by a decrease in other expenses (decrease of $1.0million). Wages and benefits represent $121 million or 50.5 percent of total expenses.Depreciation and amortization represent $60.2 million, or 25.1 percent, of total expenses.

Total nonoperating revenues consist primarily of federal, Missouri and Illinois operatingassistance and St. Louis City and St. Louis County ¼ and ½ cents sales taxes. Total grantsand assistance revenues in 2005 were $150.3 million, which increased $19.6 million, or 15percent, over prior year. Interest revenue of $27.8 is also included in this category.

Nonoperating expenses consist of interest expense incurred from the capital lease-leasebacks and Mass Transit Sales Tax Appropriation Bonds totaling $33.7 million. Interestexpense increased $15.9 million or 89.0 percent from prior year. Also included in thenonoperating expense category are $51 million of project costs determined to be impaired asof June 30, 2005.

Management performed an assessment of the MetroLink Cross County Extension projectcosts incurred life to date and determined that approximately $51 million of construction inprocess costs were incurred during fiscal year 2005 for rework and re-engineering. Metro hasfiled a suit against the engineering firms contracted to provide the design and constructionmanagement services on the basis of errors and omissions, misrepresentations and poor performance.

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See the table below, which is presented in thousands.

2005 2004 Incr (Decr) % Change

Passenger and service revenues 48,371$ 43,193$ 5,178$ 12.0 %

Other 2,268 2,590 (322) (12.4)Total operating revenues 50,639 45,783 4,856 10.6

Wages and benefits 121,015 122,131 (1,116) (0.9)Materials and supplies 22,115 18,869 3,246 17.2Services 19,332 18,128 1,204 6.6Casualty and liability costs 7,627 5,638 1,989 35.3Electricity, telephone, leases,

and other general expenses 9,260 10,057 (797) (7.9)Depreciation and amortization 60,154 59,262 892 1.5

Total operating expenses 239,504 234,085 5,418 2.3

Operating loss (188,864) (188,302) (562) (0.3)

Grants and Assistance 150,313 130,674 19,639 15.0

Interest revenue 27,832 26,530 1,302 4.9

Other 127 (2,734) 2,861 nmTotal nonoperating revenues 178,272 154,470 23,802 15.4

Interest expense (33,722) (17,844) (15,878) 89.0

Loss on impairment of assets (51,242) - (51,242) nmContribution to outside entities (17,768) (1,190) (33) nm

Total nonoperating expenses (102,732) (19,034) (99,126) nm

Loss before contributionsand transfers (113,324) (52,866) (99,688) nm

Capital contributions 14,196 63,525 (49,329) (77.7)

Change in net assets (99,127) 10,659 (109,786) nm

Total net assets, beginning of year 1,141,318 1,130,658 10,660 0.9

Total net assets, end of year 1,042,191$ 1,141,317$ (99,126)$ (8.7) %

nm- not meaningful

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CAPITAL ASSETS AND DEBT ADMINISTRATION

Metro’s investment in capital assets for all funds amounted to $1.3 billion, net of accumulateddepreciation. This investment includes capital asset categories shown in the table below,which is presented in thousands. The increase in Metro’s investment in capital assets for thecurrent fiscal year was $92.7 million or 7.7 percent. Additional information regarding capitalassets can be found in the footnotes to the financial statements.

Totals Additions Deletions TotalsJune 30, and and June 30,

2004 Transfers Transfers 2005

Buildings andimprovements 155,025$ 2,223$ (299)$ 156,949$Airport runways 22,296 - - 22,296Arch parking 9,950 - - 9,950Riverboats and barges 1,990 1,610 - 3,600Light rail, right-of way, facility and improvements 681,182 7,141 (4,641) 683,682Revenue vehicles 271,336 14,844 (5,195) 280,985Autos &trucks 5,574 712 53 6,339Furniture, fixtures equipment & intangibles 70,367 13,100 (362) 83,105

Total net capital assets 1,217,720 39,630 (10,444) 1,246,906

Accumulated depreciation (422,910) (60,138) 5,246 (477,802)

Net capital assets 794,810 (20,508) (5,198) 769,104Land 75,415 15,038 (15) 90,438Construction inprogress 340,404 288,647 (185,289) 443,762

Total net capital assets 1,210,629$ 283,177$ (190,502)$ 1,303,304$

Major capital asset events during the current fiscal year included the following:

Light rail additions of $181.6 millionLight rail improvements and rehabilitation of $2.4 million

New revenue vehicles for MetroBus, MetroLink and Light rail Extension totaling $10.4millionMetroBus maintenance facility improvements of $1.4 millionMetroBus Transit Centers of $1.6 millionCore Financial System of $5.8 million

8




Long-term debt. At the end of the current fiscal year, Metro had total debt outstanding of $434.4 million that consists of Mass Transit Sales Tax Appropriation Bonds, MissouriTransportation Finance Corporation Loan and the Arch Parking Facility Revenue Bonds. In

addition, Metro had total finance obligations under capital lease-leasebacks of $307.5 millionfor certain light rail vehicles purchased. Lastly, Metro recorded a liability of $8.5 million inconnection with the Interest Rate Swap Derivative Instrument as of June 30, 2005 andrepresents the key factor in the increase in long-term liabilities between fiscal years.

Additional information on Metro’s long-term debt outstanding as of June 30, 2005 and debtissued subsequent to June 30, 2005 can be found in the notes to the financial statements.

ECONOMIC FACTORS

Analysis of economic factors and trends are essential to the Agency’s budgeting process.For fiscal year 2005-2006, the Board of Commissioners approved a total budgeted expenseof $189.6 million. The budget reflects flat revenues and expenses budgeted to grow inaccordance with the rate of inflation.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of Metro’s finances for allthose with an interest in Metro’s finances. Questions concerning any of the informationprovided in this report or requests for additional financial information should be addressed tothe Finance Division, Bi-State Development Agency, 707 N 1st Street, Mail Stop 154, St.Louis, MO 63102. In addition, this report and its contents are available on the web at

www.metrostlouis.org.

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Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictCombined Statements of Net AssetsJune 30, 2005 and 2004

See accompanying Notes to Combined Financial Statements.

10

2005 2004

AssetsCurrent assets

Cash and cash equivalents 35,742,962$ 30,866,121$Accounts and notes receivable 12,823,620 5,582,539State and local operating assistance receivable 10,769,077 997,589Materials and supplies 5,816,182 5,970,445Prepaid expenses, deferredchargesand other current assets 134,476 232,017

Total current assets 65,286,317 43,648,711

Noncurrent assets

Restricted cash and cash equivalents 216,632,337 340,384,587Restricted investments 307,512,227 372,999,910Restricted accounts receivable - 10,952,801Capital assets,net of accumulated depreciation 769,104,766 794,809,434Land 90,438,827 75,415,539Construction in process 443,762,011 340,404,434Other noncurrent assets, net of accumulated amortization

of $336,974 and $121,928, respectively 5,914,735 7,884,501

Total noncurrent assets 1,833,364,903 1,942,851,206

Total assets 1,898,651,220$ 1,986,499,917$



Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictCombined Statements of Net AssetsJune 30, 2005 and 2004


11

2005 2004

Current liabilities payable fromunrestricted assetsAccounts payable 67,871,644$ 53,239,363$Accrued expenses 16,281,508 18,216,750Other current liabilities 1,055,228 919,493

Total current liabilities payable fromunrestricted assets 85,208,380 72,375,606

Current liabilities payable fromrestricted assets

Accounts and retainage payable - 11,430,065Accrued interest 4,401,730 4,313,016

Self-insurance liability 16,480,725 17,071,513Current portion of long-term debt 1,585,924 1,512,709Current portion of capital lease obligations 15,211,089 18,514,310

Total current liabilities payable fromrestricted assets 37,679,468 52,841,613

Total current liabilities 122,887,848 125,217,219

Noncurrent liabilitiesLong-term debt 441,271,327 435,317,771Capital lease obligations 292,301,143 284,647,806

Total noncurrent liabilities 733,572,470 719,965,577

Total liabilities 856,460,318 845,182,796

Net assetsInvested in capital assets, net of related debt 951,611,829 997,209,743$Unrestricted 90,579,073 144,107,378

Total net assets 1,042,190,902 1,141,317,121

Total liabilities and net assets 1,898,651,220$ 1,986,499,917$

Liabilities and Net Assets



Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictCombined Statements of Cash FlowsFor the years ended June 30, 2005 and 2004


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2005 2004

Cash flows from operating activities

Receipts from customers 33,693,029$ 45,828,096$Payments to employees (122,950,276) (118,227,764)Payments to vendors (35,717,954) (8,339,741)Payments for self-insurance (8,247,736) (5,943,267)Receipts from operating assistance - 477,264

Net cash used for operating activities (133,222,937) (86,205,412)

Cash flows from noncapital financing activities

Operating assistance received 150,313,265 130,673,661Contributions to outside entities (17,768,479) (1,177,449)

Noncapital contributions 127,484 (19,530)

Net cash provided by noncapitalfinancing activities 132,672,270 129,476,682

Cash flows from capital and related financing activities

Acquisitions of capital assets (197,759,016) (237,554,891)Payments of capital lease obligations (16,831,021) (24,648,910)Payments of long-term debt (1,512,709) (1,441,011)Interest paid (19,176,272) (25,829,127)Contributed capital 66,888,995 63,524,764Other, net (43,666) (26,139)

Net cash provided by capitaland related financing activities (168,433,689) (225,975,314)

Cash flows from investing activities

Purchases of investments (22,972,525) (115,684,788)Proceeds from sale of investments 45,249,125 353,570,284Interest received 27,832,347 26,530,089

Net cash used for investing activities 50,108,947 264,415,585

Net increase in cash and cash equivalents (118,875,409) 81,711,541

Cash and cash equivalents, beginning of year 371,250,708 289,539,167

Cash and cash equivalents, end of year 252,375,299$ 371,250,708$

Noncash transaction-captial leases 21,175,605$ 20,905,720$



Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictReconciliation to Operating Cash FlowFor the years ended June 30, 2005 and 2004


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2005 2004

Reconciliation of operating loss to net cash

used for operating activitiesOperating loss (188,864,067)$ (188,301,820)$

Adjustments to reconcile operatingloss to net cash used for operating activities

Depreciation and amortization 60,154,410 59,262,404Other noncash operating charges (1,487,003) -

Changes in assets and liabilitiesReceivables (7,241,081) (553,571)Operating assistance receivable (9,771,488) 557,798Materials and supplies 154,263 277,668Prepaid expenses, deferred charges and

other current assets 97,541 (177,391)Restricted accounts receivable 10,952,801 (4,270,990)Other noncurrent assets 1,969,766 -Accounts payable 14,632,281 38,227,515Other current liabilities 135,735 426,668Accrued expenses (1,935,242) 3,903,579Self-insurance liability (590,788) (305,526)Accounts and retainage payable (11,430,065) 4,748,254

Total adjustments 55,641,130 102,096,408

Net cash used for operating activities (133,222,937)$ (86,205,412)$



Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictNotes to Combined Financial StatementsJune 30, 2005 and 2004

1. Significant Accounting Policies

The accompanying combined financial statements of the Bi-State Development Agencyof the Missouri-Illinois Metropolitan District (“Metro”) are prepared in conformity withaccounting principles generally accepted in the United States of America. The followingis a summary of the more significant policies.

Financial Reporting Entity

The Agency was established on September 20, 1949, by a compact between the statesof Missouri and Illinois. The compact was approved by Congress and the President of the United States in 1950. The Agency serves the City of St. Louis, Missouri, theMissouri counties of St. Louis, St. Charles and Jefferson, and the Illinois counties of Madison, St. Clair, and Monroe. A ten-member Board of Commissioners administers the

Agency. The Governors of the States of Missouri and Illinois each appoint fivecommissioners for staggered five-year terms in the manner prescribed by each of theStates. The Board of Commissioners is responsible for all fiscal matters and thedesignation of management. Effective February 1, 2003, the Board of Commissionersapproved the adoption of the Agency’s name for doing business as Metro (“Metro”).

The basic financial statements include all proprietary functions for which Metro isresponsible. These functions include: General Agency, Gateway Arch Tram System andGateway Arch Parking Facility, Gateway Arch Riverboats, St. Louis Downtown Airport,and the Bi-State Transit System. Fiduciary activities, such as defined benefit plans thatare discussed in Note 10, are not included in these financial statements. Additionally,Metro evaluated whether there were any potential component units which should beincluded in these financial statements based on the following criteria: financialaccountability, access to resources, responsibility for debts and deficits, and fiscalindependence. No potential component units were identified, nor is Metro a componentunit of any other entity or government. The City of St. Louis, Missouri, the Missouricounties of St. Louis, St. Charles and Jefferson, the Illinois counties of Madison, St.Clair, and Monroe and the States of Illinois and Missouri have no decision-makingauthority over Metro and have no responsibility for Metro's debts or deficits.

Fund Accounting

Metro maintains its accounting records on the basis of funds. A fund is a fiscal andaccounting entity with a self-balancing set of accounts. Cash and other financialresources, together with all related liabilities and residual equities balances and changestherein are segregated for the purpose of carrying on the specific activities or attainingcertain objectives and are in accordance with special regulations, restrictions or limitations. All funds used in accounting for the financial operations of Metro areenterprise funds. For financial reporting purposes, Metro is considered a singleenterprise fund in which all subsidiary enterprise funds are combined and interfundaccounts and transactions are eliminated. Metro is required to adopt a balanced budget,however, it is not required to adopt legally enforceable budgets and does not adopt suchbudgets.

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New Accounting Standards

GASB Statement No 43, Financial Reporting for Post-employment Benefit PlansOther Than Pension Plans was issued in April 2004, is effective July 1, 2006, andrequires that state and local governmental employers provide other post-employment benefits as part of the total compensation offered to attract andretain the services of qualified employees. The impact of this standard, if any, willbe reflected in Metro’s financial statement presentation when adopted.

GASB Statement No 44, Economic Condition Reporting: The Statistical Section-an amendment of the National Council of Government Accounting (NCGA)Statement 1 was issued May 2004, and is effective July 1, 2006. This statementamends the portions of NCGA Statement 1, Governmental Accounting and Financial Reporting Principles, which guide the preparation of the statistical

section. This section details information, in ten-year trends, that assists users inutilizing the basic financial statements, notes to basic financial statements, andrequired supplementary information to assess the economic condition of government. The adoption of these standards is not expected to have asignificant impact to Metro’s financial statement presentation.

GASB Statement No. 45, Accounting and Financial Reporting for Employers for Post-employment Benefit Plans Other Than Pension was issued in June 2004and is effective July 1, 2007. This statement establishes standards for themeasurement, recognition, and display of other post-employment benefitsexpense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. Currently, Metro incurs costs in theperiod when benefits are paid. This statement will require Metro to accrue thecost of these post-employment benefits during the period of employees’ activeemployment, as the benefits are earned, and disclose the unfunded actuarialaccrued liability. This methodology mirrors the funding approach used for pension-related retirement benefits. Metro will have the option of continuing tofund benefit payments as they come due, which may result in a significantunfunded liability or prepayment during employees’ active employment in order todecrease the unfunded liability. In fiscal year 2006, Metro will continue toexamine the advantages and disadvantages of each option to insure that Metroadequately adopts this Statement.

Enterprise Funds As indicated, all funds of Metro are enterprise funds which are used to account for operations that are financed and operated in a manner similar to private businessenterprises where the intent of Metro is that the costs, including depreciation, of providing goods and services to the general public be recovered primarily through user charges, or, where Metro has decided the periodic determination of revenues earned,expenses incurred and/or net income is appropriate for capital maintenance, publicpolicy, management control or accountability. The most significant of these funds is theTransit System Fund.

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The business purposes of the various enterprise funds of Metro are as follows:

General Agency Fund - performs certain development activities and acts as theadministrative head of Metro;

Gateway Arch Tram System Fund - operates the transportation system within theGateway Arch in accordance with a cooperative agreement with the UnitedStates Government as discussed in Note 13;

Gateway Arch Parking Facility Fund - operates and maintains the parking garageat the Jefferson National Expansion Memorial Park in accordance with acooperative agreement with the United States Government as discussed in Note13;

Gateway Arch Riverboats – owns and operates both the Tom Sawyer and BeckyThatcher Riverboats docked along the Mississippi River just below the Gateway Arch;

St. Louis Downtown Airport Fund - owns and operates the St. Louis Downtown Airport and an adjacent business park located in Cahokia, Illinois; and

Transit System Fund - owns and operates the St. Louis metropolitan area masstransportation system which includes Metrobus, MetroLink and Metro Call-A-Rideservices.

Basis of Accounting

Metro follows the accrual basis of accounting and uses the flow of economic resourcesmeasurement focus for all its enterprise funds, whereby revenues are recognized whenearned and expenses are recognized at the time liabilities are incurred. Metro applies allapplicable Governmental Accounting Standards Board (“GASB”) pronouncements andFinancial Accounting Standards Board (“FASB”) Statements and Interpretationsincluding those issued after November 30, 1989, except for those that conflict with or contradict GASB pronouncements.

Estimates and Assumptions

The preparation of the financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities; thedisclosure of contingent assets and liabilities at the date of the financial statements; andthe reported amounts of revenues and expenses during the reporting period. Actualresults could differ from those estimates.

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Cash and Cash Equivalents

Metro pools all cash for investment purposes when most beneficial and each fund hasan equity in the pooled amount. Investment earnings are allocated to each individualfund on the basis of their investment or equity in the pooled amount. Metro considers allhighly liquid investments readily convertible into cash with original maturities of threemonths or less to be cash equivalents. Metro carries all cash equivalents at cost, whichapproximates fair value.

Investments

Metro pools all investments when most beneficial and each fund has an equity in thepooled amount. Investments consist of U.S. Treasury and Agency securities, bankers'acceptances, commercial paper, money market funds, repurchase agreements andcertificates of deposits with original maturities greater than three months. Theseinvestments are carried at fair value unless their remaining maturity at the time of purchase is one year or less, in which case they are carried at amortized cost. Metrodetermines fair value to be the amount at which financial instruments could beexchanged in a current transaction between willing parties, at quoted market prices.

Also, certain money market investments having a remaining maturity of one year or lessat the time of purchase and nonnegotiable certificates of deposit with redemption termsthat do not consider market rates are carried at amortized cost.

Materials and Supplies

Inventories of materials and supplies are stated at cost, using the moving weightedaverage method and are expensed when inventories are consumed in operations.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, arerecorded at cost, when acquired or constructed. Capital assets are defined by Metro asassets with initial, individual cost of more than $5,000 and an estimated useful life of 3years or more. Improvements to existing plant and equipment, which extend the lives of the related assets, are capitalized. Donated capital assets are recorded at their fair market value at the time of donation. Expenditures for maintenance and repairs arecharged to expense as incurred. When capital assets are retired or otherwise disposedof, the cost of the assets and the related accumulated depreciation are removed fromthe accounts and gains and losses on disposals are recorded. Prorated shares of theproceeds from the sale of property and equipment, which were acquired with federal or state funds, are returned to the United States Department of Transportation – FederalTransit Administration or the related state Department of Transportation, respectively.

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Depreciation and Amortization

Depreciation of capital assets is calculated using the straight-line method over theestimated useful lives of the assets. The estimated useful lives are as follows:

Year

Buildings and improvements 15-25Airport runways and related facilities 15-25Gateway Arch tram facilitiesGateway Arch riverboats and barges

15-2515-20

Buses, vans, light rail and other revenue vehicles 3-25Light rail structures and improvements 12-30Automobiles and trucks 5-10Furniture, fixtures, computers and other equipment 3-10

Amortization of bond issuance costs is calculated using the effective interest methodover the life of the bonds.

An amount equivalent to the annual depreciation and amortization expense, and the gainor loss recognized on dispositions of assets acquired with grants and assistance fromgovernmental entities is transferred from accumulated losses to capital grants andassistance to reduce the balance created by the original grant.

Self-insurance Liability

Liabilities for workers' compensation, employee medical and dental insurance claims,and public liability and property damage claims are recognized as incurred on the basisof the estimated cost to Metro upon resolution.

Workers’ compensation benefits are awarded on the basis appropriate for thegovernmental subdivision in each state in which Metro operates. The estimatedliabilities for injury and damage claims and medical and dental insurance claims arecharged to operations in the year the events giving rise to the claims occur; estimates of outstanding liabilities are made by management.

Self-insured liabilities are reported when it is probable that a loss has occurred and theamount of the loss can be reasonably estimated. Liabilities include an amount for claimsthat have been incurred but not reported. Because actual claims liabilities depend onsuch complex factors as inflation, changes in legal doctrines, and damage awards, theprocess used in computing claims liability does not necessarily result in an exactamount. Claims liabilities are evaluated on a case-by-case basis and are reevaluatedperiodically to take into consideration historical experience of recently settled claims, thefrequency of claims, and other economic and social factors.

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Derivative Financial Instruments

Metro utilizes derivatives to reduce volatility of interest rates on variable rate debt. Thefair value of the instrument is recorded in the Statement of Net Assets as part of long-term debt. The change in the fair value of the instrument is recorded in the Statement of Revenues, Expenses and Changes in Net Assets as interest expense. For the fiscalyear ended June 30, 2005, Metro established a $8.5 million liability and incrementalinterest expense.

Metro also utilizes derivatives to reduce the volatility in fuel costs. The fair value of thevariable rate debt instrument is recorded in the Statement of Net Assets as part of current assets. The change in the fair value of the instrument is recorded in theStatement of Revenues, Expenses, and Changes in Net Assets as other income. AtJune 30, 2005, the fair market value of the fuel derivative investment account was $3.2million.

Operating Revenues and Expenses

Operating revenues and operating expenses generally result from providing services inconnection with Metro’s ongoing operations. Revenues are recorded as income in amanner consistent with the timing of the provided service. The principal operatingrevenues of the various funds of Metro are as follows:

General Agency Fund – interfund charges for management services;

Gateway Arch Tram System Fund – charges to tourists for admissions to

attractions at the Jefferson National Expansion Memorial;

Gateway Arch Parking Facility Fund – charges to customers for parking fees;

Gateway Arch Riverboats – charges to tourists for riverboat excursions along theMississippi;

St. Louis Downtown Airport Fund – charges to customers for aviation and runwayservices provided including hangar rentals and fuel; and

Transit System Fund – fares charged to passengers for public transportation,advertising, and rentals.

Operating expenses include the cost of services, administrative expenses anddepreciation expenses on capital assets. All revenues and expenses not meeting thisdefinition are reported as nonoperating revenues and nonoperating expenses.

Capital Grants and Assistance

All capital grants and assistance are recorded in the accounting period in which theybecome earned and measurable. Unrestricted, irrevocable operating assistance grants

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are recorded as nonoperating income. Capital grants and assistance that are restrictedto use for payments of debt service or acquisitions of capital assets are credited directly

to fund equity (capital grants and assistance).

Reclassifications and Financial Statement Presentation

Certain amounts in the 2004 combined financial statements have been reclassified toconform to the 2005 presentation.

2. Cash, Cash Equivalents and Investments

Cash, cash equivalents and investments of Metro are presented on the combinedstatements of net assets as restricted cash and cash equivalents and restrictedinvestments, as discussed in Note 3, and as unrestricted cash and cash equivalents.Deposits and investments are segregated, in this footnote, based upon GASB StatementNo. 3, Deposits with Financial Institutions, Investments (including Repurchase

Agreements), and Reverse Repurchase Agreements, as amended by GASB StatementNo. 40.

Cash on Hand

Cash on hand, which includes petty cash and undeposited receipts, was $489,862 and$359,985 at June 30, 2005 and 2004, respectively.

Cash Deposits

At June 30, 2005 and 2004, the carrying amounts of Metro’s deposits were

$158,160,440 and $319,399,660 respectively, and the bank balances were$160,617,245 and $324,153,268 respectively. At June 30, 2005 and 2004, an additional$301,934,023 and $297,583,912 of deposits, respectively, were related to lease financeobligations, as discussed in Note 7.

Custodial Credit Risk. Custodial credit risk is the risk that in the event of a financialinstitution failure, Metro’s deposits may not be returned. Metro’s banking and investmentpolicy authorizes the use of demand deposit and interest bearing bank accounts,certificates of deposit, and money market funds. The policy specifies that bank depositsexceeding FDIC insurance coverage be collateralized with U.S. government or agencysecurities, or be guaranteed by a surety carrying the highest rating of a nationallyrecognized credit rating organization. The policy also stipulates that money market

funds used have over $500 million in assets and carry the highest rating issued by anationally recognized credit rating organization. The policy is not applicable to restricteddeposits related to lease finance obligations or bond indentures. Provisions of the leaseagreements or bond indentures stipulate that financial counterparties have and maintainthe highest rating issued by a nationally recognized credit rating organization, or collateralize the deposits with securities which carry the highest rating issued by anationally recognized credit rating organization.

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As of June 30, 2005, $43,048,739 of the bank balance of $160,617,245 was insured or collateralized. Of this amount, $23,313,976 was deposited in an investment agreement

with Citigroup Global Funding (Citigroup). Terms of the agreement require that Citigroupdeposit with the Agency’s agent securities equal to the amount of the agreement. Theremaining insured or collateralized bank balance of $19,734,403 was guaranteed byFDIC insurance or by collateral placed into a segregated custody account at the FederalReserve Bank, or with a third party custodian. The remaining bank balance of $117,568,866 was uninsured or the collateral was held by the financial counterparty, notin Metro’s name. Of this amount, $48,013,230 was deposited in an investmentagreement maturing in January 2006 with Trinity Plus LLC, which is rated AAA byStandard & Poors and Moody’s Investor Services. Of the remaining balance of $69,555,636, $66,504,641 was deposited in ten different institutional money marketfunds, $390,954 was deposited in the Illinois Funds, a state run money marketinvestment pool, and $2,660,041 was deposited in other bank or broker accounts. Of the money market fund balance, $29,286,857 was deposited in three different moneymarket funds managed by NationsFunds, a subsidiary of Bank of America; $14,881,658was deposited in two different money market funds managed by Black Rock Funds, asubsidiary of PNC Financial; $9,233,324 was deposited in two different money marketfunds managed by Fidelity Investments; and $7,972,977 was deposited in a moneymarket fund managed by UBS Financial. All institutional money market funds andinvestment pools used were of the highest rating by Standard and Poor’s, Moody’s, or Fitch Rating Services. For all money market funds and investment pools, net assetvalue equals reported fair value. The Illinois Funds are managed by the State Treasurer of Illinois, per provisions of state statute.

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Investments

As of June 30, 2005 and 2004, Metro had the following investments and maturities:

Fair Less Than 1 to 3 3 Months One to

Value 1 Month Months to 1 Year 2 Years

Repurchase Agreements 22,460,463$ 22,460,463$ -$ -$ -$U.S. Treasuries 6,890,573 - 1,993,920 4,896,653 -Government Agencies 17,385,781 2,996,155 2,770,077 11,619,549 -State Auction Rate Bonds 30,100,000 30,100,000 - - -Commercial Paper 13,506,122 13,506,122 - - -

Total 90,342,939$ 69,062,740$ 4,763,997$ 16,516,202$ -$

Fair Less Than 1 to 3 3 Months One to

Value 1 Month Months to 1 Year 2 Years

Repurchase Agreements 17,157,320$ 17,157,320$ -$ -$ -$

U.S. Treasuries 5,634,615 59,865 1,187,238 4,387,512 -

Government Agencies 31,829,498 1,027,313 - 21,863,405 8,938,780State Auction Rate Bonds 61,505,762 61,505,762 - - -

Commercial Paper 4,998,833 4,998,833 - - -

Total 121,126,028$ 84,749,093$ 1,187,238$ 26,250,917$ 8,938,780$

June 30, 2004

Investment Maturities

June 30, 2005

Investment Maturities

At June 30, 2005 and 2004, there were an additional $5.6 million of Government Agencystrip obligations held related to the 1995 Lease/Leaseback of Light Right Vehicles, asdiscussed in Note 7.

Interest rate risk . Interest rate risk is the risk that the fair value of an investment will

decline as interest rates increase, and if it is sold before its maturity a loss will result.Metro’s investment policy specifies that all funds may be invested in maturities thatmatch anticipated obligations to a maximum of five years. Due to the short duration of Metro’s investments at June 30, 2005, interest rate risk is not significant to Metro. Thestate auction rate bonds shown above are all long-term bonds issued by the State of Missouri Higher Education Loan Authority or the State of Illinois Student AssistanceCommission. Rates on these bonds are reset through auction every 28 days, at whichtime the bondholder can sell the bonds or hold them for the next rate period. Theeffective maturity period for the bonds is shown.

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Credit risk . Credit risk is the risk that the financial counter party will fail to meet itsdefined obligations. Metro’s investment policy authorizes the unlimited purchase of direct obligations of the U.S. Government or its agencies, obligations of the states of Missouri or Illinois which carry the highest rating issued by a nationally recognized creditrating organization, repurchase and reverse repurchase agreements, commercial paper,and banker’s acceptances. The policy limits investments in commercial paper andbanker’s acceptances to the top two ratings issued by nationally recognized credit ratingorganizations, and further limits these instruments to five million per issuer. Repurchaseand reverse repurchase agreements are entered into only with pre-approved credit-worthy banks or dealers, and a written repurchase agreement is completed for eachbank or dealer. As of June 30, 2005, Metro’s state auction rate bond obligations wererated AAA by Moody’s or Standard & Poor’s, and Metro’s commercial paper investmentwas rated A1 P1 by Standard & Poor’s and Moody’s.

Custodial Credit Risk . Custodial credit risk is the risk that, in the event of the failure of the counterparty, Metro will not be able to recover its investments or collateral securitiesthat are in possession of an outside party. As of June 30, 2005 and 2004, Metro’sinvestment safekeeping agent held all of Metro’s investments in treasury securities,government agency securities, commercial paper, and banker’s acceptances in Metro’sname. As of June 30, 2005 and 2004, collateral for repurchase agreements was either being held by Metro’s agent or by the financial counterparty in a segregated customer account in the name of Metro. Metro’s investment policy specifies that collateral for repurchase agreements with a term of longer than 14 days be placed in joint custodywith Metro at the Federal Reserve Bank or other third party custodian. No repurchaseagreements in effect at June 30, 2005 and 2004 had a term of longer than 14 days.

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3. Restricted Assets

At June 30, 2005 and 2004 the following assets were restricted to the purposes for whichthe funds were created.

2005 2004

Restricted under Cooperative Agreement 1,048,000$ 1,048,000$Restricted under Revenue Bond Indenture 1,318,142 1,298,469Sales tax capital 7,294,717 8,060,265Self-insurance 14,508,043 13,517,729Capital lease obligations 307,512,227 303,162,116

Mass transit sales tax bond indenture 136,841,080 323,563,821

Federal capital grant advances and interest receivable - 10,952,800

Restricted under bus financing loan 1,546,500 1,543,360Other 54,075,855 50,237,937

Total Restricted Assets 524,144,564$ 713,384,497$

4. Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of Metro'sfinancial instruments at June 30, 2005 and 2004. The fair value of a financial instrumentis defined as the amount at which the instrument could be exchanged in a currenttransaction between willing parties.

2005 2004

Carrying Fair Carrying FairValue Value Value Value

(in millions) (in millions)

Financial assets

Cash and cash equivalents 252.4$ 252.4$ 371.3$ 371.3$Receivables 23.6 23.6 17.5 17.5Investments 307.5 307.5 373.0 373.0

Financial liabilitiesPayables (67.9) (67.9) (64.7) (64.7)Total debt (441.3) (460.2) (436.8) (441.4)

The carrying amounts shown in the table are included in the Combined Statement of Net Assets under the indicated captions.

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The following methods and assumptions were used to estimate the fair value of each

class of financial instruments:

Cash, receivables, and trade payables: The carrying amounts approximate fair valuebecause of the short maturity of those instruments.

Investment securities: The carrying amounts equal fair value as Metro reportsinvestments at fair value. The fair values of investment securities are based on quotedmarket prices at the reporting date for those or similar investments.

Total debt: The fair value of Metro's total debt is estimated based on the quoted marketprices for similar issues or by discounting expected cash flows at the rates currentlyoffered to Metro for debt of the same remaining maturities, as advised by Metro'sbankers.

5. Capital Assets

2004 2005

Beginning Additions Deletions Ending

Balance and Transfers and Transfers Retirements Balance

Construction in Progress 340,404,434$ 288,647,016$ (185,289,440)$ - 443,762,010$

Land 75,415,539 15,038,289 (15,000) - 90,438,828

Capital Assets 1,217,720,520 39,630,394 (5,136,858) (5,306,865) 1,246,907,191

-

1,633,540,493 343,315,699 (190,441,298) (5,306,865) 1,781,108,029

Less: Accumulated 422,911,086 60,137,455 - (5,246,116) 477,802,425

Depreciation

Capital Assets, net 1,210,629,407$ 283,178,244$ (190,441,298)$ (60,749)$ 1,303,305,604$

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6. Self-Insurance Liability

Metro maintains self-insurance programs for workers' compensation, employee medicaland dental insurance claims, public liability and property damage claims. Metro alsomaintains insurance coverage in these areas for claims in excess of certain amounts.There were no significant changes in insurance coverage from coverage in the prior year. No settled claims were made in excess of insurance coverage in the last four years.

Changes in the balances of self-insured claims liabilities at June 30, 2005 and 2004 areas follows:

Injury, Damage and Workers' Employee Medical Total Self-Insured

Personal Liabilities Compensation and Dental Liabilities

2005 2004 2005 2004 2005 2004 2005 2004

Balance at beginning

of fiscal year 6,605,381$ 7,160,580$ 5,629,016$ 6,760,767$ 4,837,116$ 3,455,692$ 17,071,513$ 17,377,039$

Add: Current year claims

and changes

in estimate 6,211,708 4,419,436 3,247,307 2,695,161 17,947,900 20,861,934 27,406,915 27,976,531

Less: Claim payments 5,684,303 4,974,635 4,081,091 3,826,912 18,232,309 19,480,510 27,997,703 28,282,057

Balance at end

of fiscalyear 7,132,786$ 6,605,381$ 4,795,232$ 5,629,016$ 4,552,707$ 4,837,116$ 16,480,725$ 17,071,513$

In the opinion of Metro’s management, the estimated liabilities for all unsettled injuryclaims, workers' compensation benefits, and employee medical and dental insuranceclaims at June 30, 2005 and 2004 are adequate to satisfy all claims for events that haveoccurred through those respective dates. At June 30, 2005 and 2004, the Self-InsuranceFund held $16,054,544 and $15,061,089 respectively, in investments designated for payment of these claims. At June 30, 2005 and 2004, management estimatesapproximately $4.6 million and $4.4 million, respectively of the total self-insuranceliabilities payable within one year.

7. Finance Obligations Under Lease

On October 1, 1995 Metro entered into a transaction to lease 30 Series 1000 light railvehicles to investors (the “headlease”) and simultaneously sublease the vehicles back(the “sublease”). Metro entered into similar transactions on August 26, 1997, leasingfour of its Missouri facilities (DeBaliviere, Brentwood, Main Repair and MetroLink Yardsand Shops). Additionally, Metro entered into similar transactions on August 30, 2001and November 29, 2001 leasing 34 of its Series 2000 and Series 3000 light rail vehicles.

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1995 Lease/Leaseback of 30 Light Rail Vehicles

At closing, the Series 1000 rail cars had a fair market value of approximately $63.0million. As part of the light rail headlease, Metro received a prepayment equivalent tothe net present value of the headlease obligations totaling approximately $63.0 million.With the prepayment, Metro purchased investments sufficient to make the paymentsunder the sublease. Approximately $52.7 million was deposited with AIG-FP CapitalPreservation Corporation (“AIG-FP”) according to the terms of the GuaranteedInvestment Contract (“GIC”) that AIG-FP committed to pay the debt portion of thesublease obligations and repurchase options. The GIC is guaranteed by AmericanInternational Group, Incorporated, a AA-rated financing company. In addition, $6.8million was invested in United States Government strip obligations which, at maturity, willbe sufficient to pay the remaining equity portion of the sublease obligation and exercise

the repurchase option, if Metro chooses to do so. Under this transaction, Metromaintains the right to continued use and control of the assets through the end of theleases and is required to insure and maintain the assets.

1997 Lease/Leaseback of Transit Facilities

With respect to the 1997 facility lease/leaseback, the four facilities had a fair marketvalue of approximately $92.3 million. As part of the headlease, Metro receivedprepayments equivalent to the net present value of the headlease obligations totalingapproximately $68.4 million. Approximately $57.6 million was deposited with AMBAC

Asset Funding Corporation (“AMBAC Asset”) under the terms of the payment agreementby which AMBAC Asset committed to pay the debt portion of the sublease obligation and

exercise the repurchase option, if Metro chooses to do so. In addition, $7.2 million wasinvested in a GIC with AMBAC Capital Funding, Incorporated (“AMBAC Capital”) tosatisfy the remaining equity portion of the sublease obligation. AMBAC AssuranceCompany, Inc., an AAA rated finance company, guarantees the payments under theagreement with AMBAC Asset and AMBAC Capital. Under this transaction, Metromaintains the right to continued use and control of the assets through the end of theleases and is required to insure and maintain the assets.

2001 Lease/Leaseback of 34 Light Rail Vehicles

With respect to the August 30, 2001 lease transaction, the thirty light rail vehicles atclosing had a fair market value of $120.0 million. Metro received a prepayment

equivalent to the net present value of the headlease obligations totaling approximately$120.0 million. Approximately $93.6 million was deposited with Premier InternationalFunding, to partially meet Metro’s rent obligations under the sublease and to set asidefunds to enable Metro to exercise its repurchase option, if Metro chooses to do so.Financial Security Assurance Company, Inc., an AAA rated finance company,guarantees the payments under the agreement with Premier International Funding.

Approximately $16.5 million was deposited with AIG-Matched Funding Corporation tomeet Metro’s remaining rent obligations under the sublease and to set aside funds toenable Metro to exercise its purchase options, if Metro chooses to do so. American

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International Group, Inc. an AA rated finance company, guarantees the subleasepayments of AIG Matched Funding Corporation.

With respect to the November 29, 2001 lease transaction, the four light rail vehicles atclosing had a fair market value of $16.0 million. Metro received a prepayment equivalentto the net present value of the headlease obligations totaling approximately $16.0 million.

Approximately $12.9 million was deposited with Premier International Funding to partiallymeet Metro’s rent obligations under the sublease and to set aside funds to enable Metroto exercise its repurchase option, if Metro chooses to do so. Financial Security

Assurance Company, Inc., an AAA rated finance company, guarantees the paymentsunder the agreement by Premier International Funding. Approximately $1.8 million wasdeposited with AIG-Matched Funding Corporation (“Equity Payment Undertaker”) tomeet Metro’s remaining rent obligations under the sublease and to set aside funds toenable Metro to exercise its purchase option, if Metro chooses to do so. AmericanInternational Group, Inc. an AA rated finance company, guarantees the sublease

payments of AIG Matched Funding Corporation.

Under these transactions, Metro maintains the right to continued use and control of theassets through the end of the leases and is required to insure and maintain the assets.

All of the leases discussed above have been recorded as a capital leases for accountingpurposes. The following chart highlights pertinent information on the subleases:

1995 1997 2001

Transaction Transaction Transaction Total

Sublease balances, 6/30/04 68,513,897$ 90,235,859$ 144,412,360$ 303,162,116$

Interest accrued in 2005 6,179,690 7,155,401 9,529,330 22,864,421Lease payments and reductions (4,448,769) (9,045,731) (5,019,810) (18,514,310)

Total sublease balances, 6/30/05 70,244,818$ 88,345,529$ 148,921,880$ 307,512,227$

Purchase option dates February 2017 January January 2025

2013, 2017 and

and 2018 January 2027

Sublease termination dates February 2018 January January 2025

2013, 2017 and

and 2018 January 2027

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The following is a schedule by fiscal year of future lease payments and purchase optionpayments, to the extent they are exercised, and interest expense for the above

transactions as of June 30, 2005:

Fiscal

Year Payments

2006 15,211,089$2007 15,934,6572008 16,280,7052009 16,308,056

2010 94,066,6942011-2015 77,486,9052016-2020 179,802,7362021-2025 183,295,6392026-2028 90,405,289

Total future lease payments 688,791,770

Less: Amount representing interest (381,279,543)

Present value of future lease payments 307,512,227$

8. Long-Term Debt

Debt and capital lease obligations at June 30, 2005 and 2004, consisted of the following:

2004 2005

Beginning Amortization & Ending Due WithBalance Borrowings Payments Balance One Ye

Missouri TransportationFinance Corporation Loan 8,004,681$ -$ (1,027,709)$ 6,976,972$ 1,080,92$

Capital Lease Obligations 303,162,116 22,864,421 (18,514,310) 307,512,227 15,211,08Mass Transit Sales Tax AppropriationBonds, Series 2002 A, B, C 414,121,761 - - 414,121,761

Plus: Unamortized debt premium 9,594,375 - (987,276) 8,607,099 Interest Rate Swap - 8,485,309 - 8,485,309

Arch Parking Facility RevenueRefunding Bonds, Series 1997 5,315,000 - (485,000) 4,830,000 505,00

Less: Unamortized debt discount (205,337) - 41,452 (163,885) St. Louis Downtown Airport CapitalLease Obligation 5,500 - (5,500) -

Debt and capital lease obligations 739,998,096$ 31,349,730$ (20,978,343)$ 750,369,483$ 16,797,01$

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Arch Parking Facility Revenue Refunding Bonds

The construction of the Gateway Arch Parking Facility was financed through the April 29,

1986 issuance of revenue bonds (1986 revenue bonds). On February 10, 1997, Metroissued $8,110,000 of revenue bonds at 3.9 percent to 5.875 percent (“1997 revenuebonds”). The proceeds from the 1997 revenue bonds were used to redeem all of theoutstanding 1986 revenue bonds. The 1997 revenue bonds are not a general obligationof Metro, but rather are collateralized by future operations of the garage as well as thedebt service reserve. According to the indenture under which the revenue bonds wereissued, the Gateway Arch Transportation Facilities fund must maintain a debt servicereserve at the required balance of $790,686. The indenture and resolutions under whichthe bonds were issued also specify certain restrictive covenants. The significantcovenants include not taking action to make the bonds private activity bonds, as definedby the United States Tax Code, and specified operating profits in excess of 150 percentof the next years debt service requirement and the debt service reserve. As of June 30,

2005, Metro was in compliance with such covenants.

Long-term debt principal and interest maturities subject to mandatory redemption for thebonds are shown below:

Fiscal InterestYear Principal Expense

2006 505,000$ 257,666$2007 530,000 229,8192008 550,000 200,248

2009 585,000 168,4482010 615,000 134,5582011-2013 2,045,000 174,613

4,830,000$ 1,165,352$

Bus Financing

Effective July 7, 2000, Metro closed on a $11,143,000 loan with the MissouriTransportation Finance Corporation to provide the local share requirement for a federallyfunded multi-year bus replacement procurement. Metro received $5,267,589 and

$5,476,682 on July 2000 and July 2001, respectively. Metro received its final installmentof $398,729 in October 2001. The first, second, and third loan draws accrued interest at5.49 percent, 4.64 percent and 4.64 percent, respectively. Loan payments are made ona monthly basis.

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Payments of principal and interest for the loan are shown below:

Fiscal InterestYear Principal Expense

2006 505,000$ 257,666$2007 530,000 229,8192008 550,000 200,2482009 585,000 171,1912010 645,000 101,2002011-2013 2,015,000 205,228

4,830,000$ 1,165,352$

Mass Transit Sales Tax Appropriation Bonds

In November 2002, Metro issued $414.1 million in Mass Transit Sales Tax AppropriationBonds to finance the design, engineering, acquisition of equipment and construction of the 8.2 mile Cross County MetroLink Extension. The Series 2002A, B and C Bonds areexpected to be paid from the revenues received by St. Louis County and the City of St.Louis from a one-quarter cent mass transit sales tax (“Proposition M Sales Tax”)annually appropriated for such purpose. Principal payments commence in fiscal year 2009. This bond represents proprietary fund activity.

The $100,000,000 Series 2002A variable-rate put bonds initially bear interest at aWeekly Rate. The Weekly Rate for the initial fiscal year was between 0.95 percent and1.6 percent. The Series 2002A variable rate put bonds were swapped to a syntheticfixed-rate of 3.65 percent, which matures beginning in 2019, with final maturity in fiscalyear 2032.

The $313,305,000 Series 2002B bonds bear interest at rates of 3.05 percent to 5.25percent, maturing beginning fiscal year 2010 through fiscal year 2032.

The $816,760 Series 2002C Capital Appreciation Bonds accrete interest at 4.125percent (maturing October 2012,) 4.75 percent (maturing 2017) and 5.25 percent(maturing 2022) with a value of $1,855,000 at maturity.

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Long-term debt principal and interest maturities subject to mandatory redemption for thebonds are shown below:

Fiscal Interest

Year Principal Expense

2006 -$ 19,227,863$

2007 - 19,227,863

2008 - 19,227,863

2009 8,880,000 19,092,443

2010 9,225,000 18,747,366

2011-2015 53,261,930 86,603,942

2016-2020 68,711,114 71,158,704

2021-2025 86,438,717 53,427,259

2026-2030 109,155,000 30,712,299

2031-2033 78,450,000 5,470,190

414,121,761$ 342,895,792$

The Mass Transit Sales Tax Appropriation Bonds were collectively issued at premium of $11,102,583, which is included in long-term debt. The premium is being amortized asreduction of interest expense under the effective interest rate method. At June 30, 2005,the unamortized premium was $ 8,607,095. The Agency incurred and deferred$6,164,712 of costs related to the issuance of the bonds. At June 30, 2005, theremaining balance is $5,564,096.

9. Derivative Instruments

Objective of Interest Rate Swap

As a means to lower Metro’s borrowing costs, when compared against fixed-rate bondsat the time of issuance in November 2002, Metro entered into two interest rate swaps inconnection with the $100 million Series 2002A Variable-Rate Mass Transit Sales Tax

Appropriation Bonds. The intention of the swap was to effectively change Metro’sinterest rate on the bonds to a fixed rate of 3.656 percent.

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Terms

The bonds and the related swap agreement mature from October 1, 2019 through

October 1, 2032, and the swaps’ notional amount of $100 million matches the $100million variable-rate bonds. Under the swap, Metro pays the counterparties a fixedpayment of 3.656 percent and receives a variable payment based on 67% of the variableLondon Interbank Offering Rate (LIBOR), which was 2.085% percent as of June 30,2005.

Terms Rates

Interest rate swapFixed payment to counterparties Fixed 3.656%Variable payment from counterparties 67% LIBOR -2.085%

Net interest rate swap payments 1.571%

Variable-rate bond coupon payments BMA 2.250%Synthetic interest rate on bonds 3.821%

Fair Value

As of June 30, 2005, the swap has a negative fair value of $8,485,309. Because thecoupons on Metro’s variable-rate bonds adjust to changing interest rates, the bonds donot have a corresponding fair value increase. The negative fair value due the

counterparty is the amount under the agreement Metro would have pay under certainconditions to terminate the swap.

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Basis Risk

The swap exposes Metro to a basis risk as the relationship between LIBOR and BMA

converged, changing the synthetic rate on the bonds. The effect on this difference inbasis is indicated by the difference between the intended synthetic rate (3.656%) and theLIBOR based synthetic rate as of June 30, 2005 (3.821%).

Termination Risk

Metro or the counterparties may terminate the swap if the other party fails to performunder the terms of the contract. The swap may be terminated if Metro or the bondinsurer fails to maintain specified credit ratings subject to the terms and conditions of theswap. The counterparties are required to post collateral in the event of a long-term debtcredit downgrade below Baal by Moody’s or BBB+ by Standard and Poor’s. If the swapis terminated, the variable-rate bond would no longer carry a synthetic interest rate.

Also, if at the time of termination, the swap has a negative fair value, Metro would beliable to the counterparty for a payment equal to the swap’s fair value. Such terminationpayments are secured under the Indenture on a subordinate basis to the payment of principal and interest on the Series 2002 A Bonds.

Swap Payments and Associated Debt

Using rates as of June 30, 2005, debt service requirements of the variable-rate debt andnet swap payments, assuming current interest rates remain the same, for their term areas follows:

Fiscal Variable-Rate Bond RateYear Principal Interest Swap, Net Total

2006 -$ 2,250,000$ 1,571,000$ 3,821,000$2007 - 2,250,000 1,571,000 3,821,0002008 - 2,250,000 1,571,000 3,821,0002009 - 2,250,000 1,571,000 3,821,0002010 - 2,250,000 1,571,000 3,821,0002011-2015 - 11,250,000 7,855,000 19,105,0002016-2020 5,555,000 11,039,384 7,789,548 24,383,932

2021-2025 31,070,000 8,282,266 6,112,329 45,464,5952026-2030 37,385,000 4,621,940 3,406,419 45,413,3592031-2033 25,990,000 712,414 520,433 27,222,847

100,000,000$ 47,156,004$ 33,538,729$ 180,694,733$

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10. Pension Plans

Metro sponsors four defined benefit pension plans. As fiduciaries for the plans, theBoard of Commissioners is required to appoint trustees to an administrative pensioncommittee for each plan; oversee the funded status and trustee administration; andapprove plan amendments, benefits, funding and investment policy guidelines. TheBoard of Commissioners authorizes the trustees of the pension committees toadminister, construe and interpret the pension plans in a uniform and nondiscriminatorymanner. The trustees of the pension committees are authorized to determine eligibilityfor benefits under the plans and to construe the plans terms.

The Pension Plan for Salaried Employees of Metro is a noncontributory single employer defined benefit pension plan for salaried employees (“Salaried Plan”). All Metro full-timesalaried employees are eligible to participate in the Salaried Plan. Employees who retire

after attaining the normal service retirement age as defined in the plan, provided theemployees have five years of credited service, are entitled to normal retirement benefits,payable monthly for life, based upon final average monthly earnings and years of credited service. Final average monthly earnings are the employee’s average monthlyearnings for the three consecutive Plan years preceding cessation of employmentproducing the highest average. Participants who have attained age 55 and completedten years of credited service may retire and receive reduced benefits. The Salaried Planalso provides death and disability benefits.

All Metro full-time employees who are included in one of the collective bargaining unitsrecognized by Metro are required to participate in the applicable Union Plan. The UnionPlans are contributory single employer defined benefit pension plans. Participants must

satisfy minimum age and service requirements for retirement and are eligible for adeferred vested pension if they leave the service of the Agency with at least 10 yearscredited service. The Union Plans are as follows:

1) Bi-State Development Agency Missouri-Illinois Metropolitan District and Division788 Amalgamated Transit Union, AFL-CIO Employees’ Pension Plan and

Agreement (“788 O&M Plan”)

2) Bi-State Development Agency Missouri-Illinois Metropolitan District and Division788, Clerical Unit, Amalgamated Transit Union, AFL-CIO Employees’ PensionPlan and Agreement (“788 Plan, Clerical”)

3) Bi-State Development Agency Missouri-Illinois Metropolitan District and LocalsNo. 2 and No. 309 of the International Brotherhood of Electrical WorkersEmployees’ Pension Plan and Agreement (“IBEW Plan”)

The 788 O&M Plan members are eligible for full retirement benefits at (a) age 65, (b) thecompletion of 25 years of credited service or (c) age 55 with 20 years of credited service.Participants who have attained age 55 without 15 years of credited service may retireand receive reduced benefits.

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Under the 788 Plan, Clerical Plan, members are eligible for retirement benefits at (a) age65 with 10 years of credited service or (b) the completion of 25 years of credited service.Participants in the Clerical Unit Plan who have attained age 54 with 15 years credited

service may retire and receive reduced benefits. The plan also provides survivor anddisability benefits.

The IBEW Plan members are eligible for retirement benefits at (a) age 65 with 12 yearsof credited service or (b) the completion of 25 years of credited service. The plan alsoprovides survivor and disability benefits.

As a condition of participation in the Union Plans, employees are required to contributeeach week. If a union employee leaves the employment of the Agency prior to beingeligible to receive a monthly benefit, he or she is eligible for a refund of contributions.Upon retirement, employees are entitled to a benefit, payable monthly for life. The UnionPlans also provide death and disability benefits.

Each plan has an annual actuarial valuation that includes financial statements andrequired supplementary information for that plan. The actuarial valuation is publiclyavailable. Those reports may be obtained from the Benefits Section, Bi-StateDevelopment Agency, 707 North First Street, St. Louis, MO 63132, or by calling 314-982-1471.

Total Metro covered payroll for fiscal years 2005 and 2004 was $91,316,580 and$86,378,934, respectively. Below is the total employees and retirees covered under theSalaried Plan as of June 1, 2004 and 2003, and for the Union Plans as of April 1, 2004and 2003, the dates of the latest actuarial valuation:

37




Union PlansSalaried Plan 788 Plan 788 Plan(Clerical) IBEWPlan Total

2005 2004 2005 2004 2005 2004 2005 2004 2005 2004

Retirees and beneficiaries 173 165 815 830 45 46 3 4 1,036 1,045

Vested Long-TermDisability Claimants 10 7 23 36 6 6 2 1 41 5

Terminated vested 108 9

0

4 - 2 - - - - 108 96

Fully vestedactive 256 246 712 712 34 39 6 5 1,008 1,002

Nonvested active 233 226 571 555 38 36 34 27 876 844

Total participants 780 738 2,121 2,135 123 127 45 37 3,069 3,037

Changes to prior year reports arebasedon the latest actuarial reports.

Funding Policy and Annual Pension Cost

For the Salaried Plan, Metro contributes the actuarially recommended contribution. For the Union Plans, Metro has agreed within each collective bargaining agreement, to fund

70 percent of the actuarially recommended contribution, with the remaining 30 percentfunded from employee contributions. Following is Metro's annual pension cost for thecurrent year and related information for each plan. Prior to June 1, 2004, certaininformation for the salaried plan is not available because the aggregate actuarial costmethod does not identify or amortize an actuarial unfunded liability.

38




Union Plans

788 Plan

Salaried Plan 788 Plan (Clerical) IBEW PlanContributions

Employee none 1,519,597$ 62,314$ 31,637$

Employer 1,633,450$ 3,611,019 136,579 68,343

Contribution rates (as percent

of covered payroll)

Employee 0.0% 3.0% 2.9% 1.8%

Employer 6.5% 7.2% 6.3% 3.9%

Annual Pension Cost 1,633,450$ 3,611,019$ 136,579$ 68,343$

Contributions made 1,633,450$ 3,611,019$ 136,579$ 68,343$

Actuarial valuation date 1-Jun-04 1-Apr-04 1-Apr-04 1-Apr-04

Actuarial cost method Projected Unit Entry Age Entry Age Entry Age

Credit Cost *

Amortization method 30 years, * Level dollar, Level dollar, Level dollar,

Level dollar, if fixed period fixed period fixed period

greater than $0

Remaining amortization period na 29 years 30 years 15 years

Asset valuation method Assumed yield,

with market value

adjustment

Assumed yield, with

market value

adjustment

Assumed yield, with

market value

adjustment

Assumed yield,

with market value

adjustment

Actuarial assumptions:

Investment rate of return 8.0% 8.0% 8.0% 8.0%

Inflation rate of return 3.5% 3.5% 3.5% 3.5%

Projected salary increases 4.5% 0.0% 0.0% 0.0%

Post-retirement benefit increases 0.0% 0.0% 0.0% 0.0%

39




Three Year Trend Information

Trend information relating to the annual pension cost, percentage of annual pension costcontributed and the net pension obligation, for each plan, for the most recent years for which information is available is as follows:

Annual Percentage Net

Year Pension of APC Pension

Ending Cost (APC) Contributed Obligation

Salaried Plan May 31, 2003 2,035,747$ 100% -$

May 31, 2004 2,563,745 100% -

May 31, 2005 1,633,450 100% -

788 Div ATU Plan March 31, 2003 3,470,436$ 100% -$

March 31, 2004 3,620,708 100% -

March 31, 2005 3,611,019 100% -

788 DIV ATU

Clerical Unit Plan March 31, 2003 147,213$ 100% -$

March 31, 2004 134,006 100% -

March 31, 2005 136,579 100% -

Local No 2

IBEWPlan March 31, 2003 32,606$ 100% -$

March 31, 2004 49,295 100% -

March 31, 2005 68,343 100% -

40




Schedules of Funding Progress

Following are schedules of funding progress for each pension plan for the most recent

years for which information is available.

Actuarial Actuarial Accrued Unfunded UAAL as a

Actuarial Value of Liability (AAL) AAL Funded Covered Percentage of

Valuation Asset =-Entry Age (UAAL) Ratio Payroll Covered Payroll

Date (a) (b) (b – a) (a / b) (c) ((b – a) / c)

Salaried Employee's Pension Plan

6/1/2002 32,918,196 N/A (1) N/A (1) N/A (1) 21,554,152 N/A (1)

6/1/2003 35,069,865 N/A (1) N/A (1) N/A (1) 23,885,228 N/A (1)

6/1/2004 37,865,040 37,321,892$ (543,148)$ 101.5% 25,201,532 -2.2%

788 Division ATU Employee’s Pension Plan

4/1/2002 82,852,495 117,803,132$ 34,950,637$ 70.3% 46,215,304 75.6%

4/1/2003 84,075,111 129,645,438 45,570,327 64.9% 47,064,243 96.8%4/1/2004 87,121,238 142,359,132 55,237,894 61.2% 50,282,012 109.9%

788 Division ATU Clerical Unit Employee’s Pension Plan

4/1/2002 6,365,075 7,197,962$ 832,887$ 88.4% 1,795,040 46.4%

4/1/2003 6,254,427 7,454,658 1,406,937 83.9% 1,887,850 63.6%

4/1/2004 6,344,123 8,313,164 1,969,041 76.3% 2,164,590 91.0%

Local Number 2 of the IBEW Employee’s Pension Plan

4/1/2002 736,255 945,627$ 209,372$ 77.9% 1,343,097 15.6%

4/1/2003 749,454 1,029,808 280,354 72.8% 1,351,709 20.7%

4/1/2004 776,441 1,256,497 480,056 61.8% 1,739,606 27.6%

Post-Employment Benefits

In addition to the pension benefits described above, Metro provides post-employmenthealth care benefits to all employees who retire from Metro with at least 10 years of service. The retiree benefits for union employees are determined by contractualagreement and the benefits for salaried retirees represent a voluntary payment. As of June 30, 2005 and 2004, 912 and 903 retirees, respectively, met those requirements.Metro reimburses a minimum of eighty percent of the amount of validated claims for medical and hospitalization costs incurred by retirees and their dependents. For eachretiree eligible for Medicare, Metro’s Plan coordinates benefits with Medicare.Expenditures for post-employment health care benefits are recognized as retirees report

41




claims and include a provision for estimated claims incurred but not yet reported toMetro. In addition, some retirees are included in health maintenance organizations for which Metro pays fixed premiums. For fiscal 2005 and 2004, expenses of $ 5,758,969

and $4,647,706, respectively, were recognized for post-employment health care.

11. Grants and Assistance

Federal Aviation Administration Capital Improvement Grants

Capital improvement projects for airport engineering and construction costs at the St.Louis Downtown Airport are funded by capital improvement grants from the Federal

Aviation Administration and the Illinois Department of Aeronautics. Additional funds areprovided by the St. Louis Downtown Airport.

Federal Transit Administration

Metro is the recipient of several Federal Transit Administration Assistance Grantsawarded by the United States Department of Transportation under the Federal Transit

Act of 1964, as amended. Metro is the recipient of the following type of assistancegrants.

Capital Assistance Grants

The purpose of the Capital Assistance Grants is to provide financial assistance in theundertaking of urban mass transportation capital improvement projects. Additionally,beginning in fiscal year 1999, a portion of the Capital Assistance Grants may be used for fleet maintenance. The terms of the capital grants require that a portion of the project

costs be funded locally. The local share of the capital assistance grants has beenfunded by grants from the State of Illinois and by application of sales tax appropriations.

State of Missouri

In 1996 the Governor of the State of Missouri approved temporary transit operatingassistance grant funding through the Missouri Department of Transportation. Metrobegan receiving this assistance in July 1996. The grant was renewed for fiscal year 2004.

Illinois Department of Transportation Grants

The Illinois Department of Transportation is authorized under provisions of IllinoisRevised Statutes, Chapter 127, Section 49 through 51 and Illinois Revised Statues,Chapter 127, Section 701 (“Illinois Acts”) to provide capital assistance to Metro. Localshare requirements relating to certain Federal Transit Administration capitalimprovement projects have been funded in part by capital grants under the Illinois Acts.

42




Sales Tax Appropriations

The Missouri Legislature has authorized certain cities and counties to levy a 1/2 cent

sales tax to be used for transportation purposes. The bill does not require that revenuesbe paid directly to Metro, but authorizes the collecting agencies to appropriate suchrevenues for transportation purposes. A minimum of two percent of any appropriation for public mass transportation must be passed through to the St. Louis Office of MentallyRetarded/Developmentally Disabled Resources (“City Board”) and Productive LivingBoard for the Developmentally Disabled (“County Board”). Sales tax receipts that arepassed through to the City and County Boards are recorded as operating assistance,and the corresponding expense is recorded as a contribution to outside entities in thestatement of revenues and expenses of Metro.

Additionally, a 1/4 cent sales tax was established. This tax is restricted to mass transituse and is forwarded to Metro upon annual appropriations from the City of St. Louis and

St. Louis County.

The Agency has restricted a total of $ 7,288,151 in 2005 and $8,060,265 in 2004 of previously unrestricted sales tax operating assistance, which is recorded in the SalesTax Capital Account, for the purchase or construction of new transportation equipment or facilities. Temporary advances for operating purposes are allowed from the fund, to berepaid when Federal, state or local operating assistance is received. Advances allowedfor environmental clean-up activities for nonoperating properties are to be repaid fromthe proceeds from the sale of the nonoperating assets.

Illinois Counties

Metro provides public mass transportation services for the Illinois counties of St. Clair and Monroe. These contracts specify the amount of services to be provided, andmethod of reimbursement for operating costs associated with the services provided inthese counties.

43




12. Interfund Balances

The interfund receivable and payable balances as of June 30, 2005 and 2004, are as

follows:

2005 2004

Interfund Interfund Interfund InterfundReceivables Payables Receivables Payables

Current PortionGeneral Agency 17,943$ 99,789$ 162,499$ 6,392$Gateway Arch Tram System 12,883 319,885 119,306 324,545Gateway Arch Parking Facility 7,643 - 88,093 -Gateway Arch Riverboats 304,555 267,921 303,012 25,919

St. Louis Downtown Airport 2,866 16,372 72,722 54,249Bi-State Transit System 371,732 13,655 190,297 524,824

Total current 717,622$ 717,622$ 935,929$ 935,929$

These balances, which track cash activity between funds, have been eliminated in theaccompanying combined financial statements, but are included in the supplementaryschedules.

13. Operating Agreement

According to a cooperative agreement (“Agreement”) dated May 14, 1962, as amended,with the United States Government acting through the National Park Service, Metroagreed to construct and operate a transportation system (“Tram”) in the Gateway Arch.

According to the Agreement, Metro will operate the Tram until January 1, 2013, and is toreceive a monthly management fee based upon the prior month's operating results.Legal title to the Tram is retained by the United States Government. Upon termination of the Agreement, Metro is required to transfer to the United States Government all assetsremaining from the operations of the Tram after discharge of all liabilities.

Through the Agreement, Metro agreed to construct and operate a 1,200 space parkingfacility on the Jefferson National Expansion Memorial site, the Gateway Arch. Legal titleto the Gateway Arch Parking Facility is retained by the United States Government.Metro is required to establish parking rates, fees and charges to operate and maintainthe parking garage and to pay debt service on the Arch Parking Facility RevenueRefunding Bonds, Series 1997. Upon termination of the Agreement, Metro is required totransfer to the United States Government all assets remaining from the operations of theparking facility after the discharge of all liabilities.

44




14. Commitments and Contingencies

MetroLink

Metro’s long-range plan provides for the planning, construction, financing, andoperations of light rail extensions in multiple phases, consisting of approximately 45miles of double track and 35 stations of which 37.8 miles and 29 stations were in serviceat June 30, 2005.

The second phase of the light rail system (Phase IIA), MetroLink Extension extends fromthe existing 5th & Missouri terminus to Southwestern Illinois College and was opened tothe public May 2001. The $346 million project was funded through a full funding contractbetween Metro and the Federal Transit Administration (“FTA”) and local funding of 28.12percent pursuant to an agreement with the Metro East Transit District of St. Clair County(“District”). Metro, on behalf of the District, issued $160.5 million in revenue bonds

providing $132.7 million in advance funding for a portion of both federal and localfunding, (Note 15). Of the $346 million project, $1.3 million will be provided from theremaining future federal and local funds. Assets provided by the construction project areincluded in capital assets. On June 30, 2005, Metro was committed to future capitalexpenditures of $1.3 million, which is on deposit with the trustees.

The Phase IIB extension of the St. Clair alignment began revenue service in June 2003.It extends MetroLink four miles Northeast from Southwestern Illinois College to Shiloh-Scott Air Force Base. Assets provided by the construction project are included in capitalassets. On June 30, 2005, Metro was committed to future capital expenditures of approximately $103,951, all of which are to be funded by the District.

The Cross County extension is currently under construction. In 2004, Metro terminatedthe program management consultant, Cross County Collaborative (CCC) and filed suitfor unspecified damages. The revised estimated project cost is $683 million, which is$133 million greater than the original project budget. The revised project estimateincludes estimated costs for re-work, re-engineering and other costs due to CCCperformance. At June 30, 2005, management performed an initial assessment for impairment of these costs. It is estimated that approximately $51 million of constructionin progress as of June 30, 2005 should be expensed during the year ended June 30,2005 as an impairment charge.

At June 30, 2005, Metro is committed to future capital expenditures of $263 million,which will be funded from the proceeds of the Metro Transit Sales Tax Appropriation

Bonds and the $150 million bonds issued on November 2, 2005. The project is expectedto enter revenue service in early October 2006.

Other

Expenditures financed by state and Federal grants are subject to audit by the grantingagencies to determine compliance with conditions of the grants. Management believesthat Metro is in compliance with the terms of such grants and that no significant liabilitywill arise from audits previously performed or to be performed.

45




Metro is involved in legal or administrative proceedings before various courts andagencies with respect to matters occurring in the ordinary course of business, some of which involve substantial amounts. Management believes that the final disposition of

these proceedings will not have a material adverse effect on the financial position or results of operations of Metro.

15. Conduit Debt Obligations

From time to time, Metro has been associated with the issuance of IndustrialDevelopment Bonds and Special Facility Revenue Bonds to provide financial assistancefor the acquisition and construction of facilities deemed to be in the public interest.

Industrial Development Bonds

The industrial development bonds are collateralized by the property financed and

payable solely from project revenues. The bonds are not general obligations of Metro.The bonds are to be repaid by a party other than Metro. Should that party default, thecollateralized property of Metro could be at risk. Accordingly, the bonds are not reportedas liabilities in the accompanying financial statements because it is not probable thatMetro will be required to make payment. As of June 30, 2005, there was one issue of bonds outstanding maturing fiscal year 2010.

Special Facility Revenue Bonds

In connection with the construction of the second phase of the MetroLink system, Metrohas utilized funds provided by the proceeds from two special revenue bond issuances.These bonds are not general obligations of Metro. The bonds are to be repaid by a party

other than Metro. Accordingly, the bonds are not reported as liabilities in theaccompanying financial statements. The following is a description of the two bondissuances:

St. Clair County MetroLink Extension Project Bonds, Series 1998 A (Series 1998 ABonds) – The $48,550,000 Series 1998 A Bonds, issued July 1, 1998, are special,limited obligations of Metro, payable solely from certain project payments to be madeby the Metro East Transit District of St. Clair County (the “District”), pursuant to theProject Financing, Construction, and Operation Agreement dated July 1, 1998(“Project Agreement”) between the District and Metro. These bonds mature seriallyin varying amounts through 2028. As of June 30, 2005 the entire issuance wasoutstanding. These funds have been included in capital contributions in the

accompanying Statement of Revenues, Expenses and Changes in Net Assets.

St. Clair County MetroLink Extension Project Refunding Revenue Bonds, Series2004 (Series 2004 Bonds) – The $5,590,000 Series 2004 Bonds, issued April 15,2004 are special, limited obligations of Metro, payable solely from revenue and other sources provided in the indenture, and are not general obligations of the Agency.These bonds mature serially in varying amounts through 2028. The Series 2004bonds were issued to provide funds to refund a portion of the Series A bonds on July1, 2004 through July 1, 2008. As of June 30, 2005, the entire amount wasoutstanding.

46




16. Subsequent Event

Subordinate Mass Transit Sales Tax Appropriation Bonds

On November 2, 2005, Metro issued $150.0 million in Subordinate Mass Transit Sales Tax Appropriation Bonds (Series 2005A) to complete the MetroLink Cross County light railextension project. The Series 2005A variable-rate put bonds initially bear interest at aWeekly Rate. The initial rate at closing was 2.65 percent. Of the proceeds, $13.5 millionhas been deposited with the Trustee to pay interest for up to three years. The 2005A creditfacility will terminate on November 2, 2010 unless earlier terminated, or extended. Thebonds will be amortized over a twenty-five year period beginning in 2012. The Agency isrequired by law to use proceeds from pending litigation to redeem the Series 2005A bondsoutstanding.

47



INDEPENDENT AUDITORS’ REPORT ON ADDITIONAL INFORMATION

To the Board of CommissionersBi-State Development Agency of theMissouri-Illinois Metropolitan District

Our report on our audits of the combined basic financial statements that collectively comprisethe Bi-State Development Agency of the Missouri-Illinois Metropolitan District’s basic financial

statements for the years ended June 30, 2005 and June 30, 2004 appears on pages 2 and 3.Those audits were conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental schedules, as defined in the index to theFinancial Section, are presented for purposes of additional analysis and are not a required partof the combined basic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the combined basic financial statements and, in our opinion,is fairly stated in all material respects in relation to the combined basic financial statementstaken as a whole.

St. Louis, Missouri

Novemsber 3, 2005

48



B i - S t a t e D e v e l o p m

e n t A g e n c y o f t h e

M i s s o u r i - I l l i n o i s M

e t r o p o l i t a n D i s t r i c t

S u p p l e m e n t a l I n f o r m a t i o n

C o m b i n i n g S c h e d u l e o f N e t A s s e t s

J u n e 3 0 , 2 0 0 5

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u

i s

T o t a l

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r

t

S y s t e m

T o t a l s

E l i m i n a t i o n s


C u r r e n t a s s e t s

C a s h a n d c a s h e q u i v a l e n t s

4 7 5 , 3 1 7

$

3 , 5 2 9 , 5 6 9

$

1 , 5 5 4 , 2 2 1

$

2 3 9 , 3 1 9

$

3 7 8 , 6

8 8

$

2 9 , 5 6 5 , 8 4 8

$

3 5 , 7 4 2 , 9 6 2

$

-

$

3 5 , 7 4 2 , 9 6 2

$

I n t e r f u n d a c c o u n t s r e c e i v a b l e

1 7 , 9 4 3

1 2 , 8 8 3

7 , 6 4 3

3 0 4 , 5 5 5

2 , 8

6 6

3 7 1 , 7 3 2

7 1 7 , 6 2 2

( 7 1 7 , 6 2 2 )

( 0 )

A c c o u n t s a n d n o t e s r e c e i v a b l e

1 7 6 , 6 6 7

8 , 6 3 7

1 , 4 5 8

-

1 5 7 , 7

5 5

1 2 , 4 7 9 , 1 0 3

1 2 , 8 2 3 , 6 2 0

-

1 2 , 8 2 3 , 6 2 0

S t a t e a n d l o c a l o p e r a t i n g a s s i s t a n c e r e c e i v a b l e

-

-

-

-

-

1 0 , 7 6 9 , 0 7 7

1 0 , 7 6 9 , 0 7 7

-

1 0 , 7 6 9 , 0 7 7

M a t e r i a l s a n d s u p p l i e s

-

-

-

4 7 , 4 7 2

-

5 , 7 6 8 , 7 1 0

5 , 8 1 6 , 1 8 2

-

5 , 8 1 6 , 1 8 2

O t h e r c u r r e n t a s s e t s

9 0 , 7 8 2

9 , 9 3 8

-

-

-

3 3 , 7 5 6

1 3 4 , 4 7 6

-

1 3 4 , 4 7 6

T o t a l c u r r e n t a s s e t s

7 6 0 , 7 0 9

3 , 5 6 1 , 0 2 7

1 , 5 6 3 , 3 2 2

5 9 1 , 3 4 6

5 3 9 , 3

0 9

5 8 , 9 8 8 , 2 2 6

6 6 , 0 0 3 , 9 3 9

( 7 1 7 , 6 2 2 )

6 5 , 2 8 6 , 3 1 7

N o n c u r r e n t a s s e t s

R e s t r i c t e d c a s h a n d c a s h e q u i v a l e n t s

-

1 , 0 4 8 , 0 0 0

1 , 3 1 8 , 1 4 1

-

-

2 1 4 , 2 6 6 , 1 9 6

2 1 6 , 6 3 2 , 3 3 7

-

2 1 6 , 6 3 2 , 3 3 7

R e s t r i c t e d i n v e s t m e n t s

-

-

-

-

-

3 0 7 , 5 1 2 , 2 2 7

3 0 7 , 5 1 2 , 2 2 7

-

3 0 7 , 5 1 2 , 2 2 7

R e s t r i c t e d a c c o u n t s r e c e i v a b l e

-

-

-

-

-

-

-

-

-

C a p i t a l a s s e t s , n e t

o f a c c u m u l a t e d d e p r e c i a t i o n

9 , 4 5 5

3 , 9 5 6 , 5 8 8

2 , 9 9 5 , 3 0 8

3 , 3 0 9 , 9 8 1

8 , 3 4 3 , 0

7 4

7 5 0 , 4 9 0 , 3 6 0

7 6 9 , 1 0 4 , 7 6 6

-

7 6 9 , 1 0 4 , 7 6 6

L a n d

-

-

-

-

4 , 2 0 0 , 0

0 6

8 6 , 2 3 8 , 8 2 1

9 0 , 4 3 8 , 8 2 7

-

9 0 , 4 3 8 , 8 2 7

C o n s t r u c t i o n i n p r o g r e s s

-

4 1 1 , 9 0 3

-

2 7 2 , 4 7 2

1 , 1 2 9 , 6

4 6

4 4 1 , 9 4 7 , 9 9 0

4 4 3 , 7 6 2 , 0 1 1

-

4 4 3 , 7 6 2 , 0 1 1

O t h e r n o n c u r r e n t a s s e t s , n e t o f

a c c u m u l a t e d a m o r t i z a t i o n

-

-

6 8 , 6 4 1

-

-

5 , 8 4 6 , 0 9 4

5 , 9 1 4 , 7 3 5

-

5 , 9 1 4 , 7 3 5

T o t a l n o n c u r r e n t a s s e t s

9 , 4 5 5

5 , 4 1 6 , 4 9 1

4 , 3 8 2 , 0 9 0

3 , 5 8 2 , 4 5 3

1 3 , 6 7 2 , 7

2 6

1 , 8 0 6 , 3 0 1 , 6 8 8

1 , 8 3 3 , 3 6 4 , 9 0 4

-

1 , 8 3 3 , 3 6 4 , 9 0 4

T o t a l a s s e t s

7 7 0 , 1 6 4

8 , 9 7 7 , 5 1 8

5 , 9 4 5 , 4 1 2

4 , 1 7 3 , 7 9 9

1 4 , 2 1 2 , 0

3 5

1 , 8 6 5 , 2 8 9 , 9 1 4

1 , 8 9 9 , 3 6 8 , 8 4 3

( 7 1 7 , 6 2 2 )

1 , 8 9 8 , 6 5 1 , 2 2 1

A s s e t s

4 9



B i - S t a t e D e v e l o p m e n t A g e n c y o f t h e

M i s s o u r i - I l l i n o i s M e t r o p o l i t a n D i s t r i c t


C o m b i n i n g S c h e d u l e o

f N e t A s s e t s

J u n e 3 0 , 2 0 0 5

G a t e w a y

G a t e

w a y

A r c h

A r

c h

G a t e w a y

S t . L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k

i n g

A r c h

D o w n t o w n

T

r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i

l i t y

R i v e r b o a t s

A i r p o r t

S

y s t e m

T o t a l s



C u r r e n t l i a b i l i t i e s p a y a b l e f r o m

u n r e s t r i c t e d a s s e t s

A c c o u n t s p a y a b l e

1 8 7 , 5 9 1

$

3 5 1 , 4 2 3

$

4

6 , 1 7 8

$

1 4 9 , 0 9 9

$

1 8 , 6 3 3

$

6

7 , 1 1 8 , 7 2 0

$

6 7 , 8 7 1 , 6 4 4

$

-

$

6 7 , 8 7 1 , 6 4 4

$

A c c r u e d e x p e n s e s

6 1 , 5 8 7

7 0 , 0 3 6

2

7 , 6 5 9

9 2 , 4 9 4

3 2 , 7 6 6

1

5 , 9 9 6 , 9 6 6

1 6 , 2 8 1 , 5 0 8

-

1 6 , 2 8 1 , 5 0 8

O t h e r c u r r e n t l i a b i l i t i e s

-

5 0 , 8 1 8

9 , 5 9 4

1 4 9 , 4 2 3

7 , 3 4 1

8 3 8 , 0 5 2

1 , 0 5 5 , 2 2 8

-

1 , 0 5 5 , 2 2 8

C u r r e n t p o r t i o n o f c a p i t a l l e a s e o b l i g a t i o n s

-

-

-

-

-

-

-

-

-

I n t e r f u n d a c c o u n t s p a y a b l e

9 9 , 7 8 9

3 1 9 , 8 8 5

-

2 6 7 , 9 2 1

1 6 , 3 7 2

1 3 , 6 5 5

7 1 7 , 6 2 2

( 7 1 7 , 6 2 2 )

( 0 )

T o t a l c u r r e n t l i a b i l i t i e s p a y a b

l e f r o m

3 4 8 , 9 6 7

7 9 2 , 1 6 2

8

3 , 4 3 1

6 5 8 , 9 3 7

7 5 , 1 1 2

8

3 , 9 6 7 , 3 9 3

8 5 , 9 2 6 , 0 0 2

( 7 1 7 , 6 2 2 )

8 5 , 2 0 8 , 3 8 0

u n r e s t r i c t e d a s s e t s

C u r r e n t l i a b i l i t i e s p a y b l e f r o m r e s t r i c t e d a s

s e t s

A c c o u n t s p a y a b l e a n d r e t a i n a g e p a y a b l e

-

-

-

-

-

-

-

-

-

A c c r u e d i n t e r e s t

-

-

2

2 , 7 7 3

-

-

4 , 3 7 8 , 9 5 7

4 , 4 0 1 , 7 3 0

-

4 , 4 0 1 , 7 3 0

S e l f - i n s u r a n c e l i a b i l i t y

-

1 1 , 7 1 6

1

1 , 5 0 0

5 0 , 3 4 8

3 3 , 8 1 2

1

6 , 3 7 3 , 3 4 9

1 6 , 4 8 0 , 7 2 5

-

1 6 , 4 8 0 , 7 2 5

C u r r e n t p o r t i o n o f l o n g - t e r m

d e b t

-

-

5 0

5 , 0 0 0

-

-

1 , 0 8 0 , 9 2 4

1 , 5 8 5 , 9 2 4

-

1 , 5 8 5 , 9 2 4

C u r r e n t p o r t i o n o f c a p i t a l l e a s e o b l i g a t i o n s

-

-

-

-

-

1

5 , 2 1 1 , 0 8 9

1 5 , 2 1 1 , 0 8 9

-

1 5 , 2 1 1 , 0 8 9

T o t a l c u r r e n t l i a b i l i t i e s p a y a b

l e f r o m

-

1 1 , 7 1 6

5 3

9 , 2 7 3

5 0 , 3 4 8

3 3 , 8 1 2

3

7 , 0 4 4 , 3 1 9

3 7 , 6 7 9 , 4 6 8

-

3 7 , 6 7 9 , 4 6 8

r e s t r i c t e d a s s e t s

T o t a l c u r r e n t l i a b i l i t i e s

3 4 8 , 9 6 7

8 0 3 , 8 7 8

6 2

2 , 7 0 4

7 0 9 , 2 8 5

1 0 8 , 9 2 4

1 2

1 , 0 1 1 , 7 1 2

1 2 3 , 6 0 5 , 4 7 0

( 7 1 7 , 6 2 2 )

1 2 2 , 8 8 7 , 8 4 8

N o n c u r r e n t l i a b i l i t i e s

L o n g - t e r m d e b t

-

-

4 , 1 6

1 , 1 1 4

-

-

4 3

7 , 1 1 0 , 2 1 3

4 4 1 , 2 7 1 , 3 2 7

-

4 4 1 , 2 7 1 , 3 2 7

C a p i t a l l e a s e o b l i g a t i o n s

-

-

-

-

-

2 9

2 , 3 0 1 , 1 4 3

2 9 2 , 3 0 1 , 1 4 3

-

2 9 2 , 3 0 1 , 1 4 3

T o t a l n o n c u r r e n t l i a b i l i t i e s

-

-

4 , 1 6

1 , 1 1 4

-

-

7 2

9 , 4 1 1 , 3 5 6

7 3 3 , 5 7 2 , 4 7 0

-

7 3 3 , 5 7 2 , 4 7 0

T o t a l l i a b i l i t i e s

3 4 8 , 9 6 7

8 0 3 , 8 7 8

4 , 7 8

3 , 8 1 8

7 0 9 , 2 8 5

1 0 8 , 9 2 4

8 5

0 , 4 2 3 , 0 6 8

8 5 7 , 1 7 7 , 9 4 0

( 7 1 7 , 6 2 2 )

8 5 6 , 4 6 0 , 3 1 8

N e t A s s e t s

I n v e s t e d i n c a p i t a l a s s e t s

9 , 4 5 6

3 , 9 0 2 , 0 8 5

( 2 , 5 5

1 , 0 5 8 )

1 , 9 3 5 , 9 7 1

1 5 , 5 3 0 , 7 6 2

9 3

2 , 7 8 4 , 6 1 3

9 5 1 , 6 1 1 , 8 2 9

-

9 5 1 , 6 1 1 , 8 2 9

U n r e s t r i c t e d

4 1 1 , 7 4 1

4 , 2 7 1 , 5 5 5

3 , 7 1

2 , 6 5 2

1 , 5 2 8 , 5 4 3

( 1 , 4 2 7 , 6 5 1 )

8

2 , 0 8 2 , 2 3 3

9 0 , 5 7 9 , 0 7 3

-

9 0 , 5 7 9 , 0 7 3

T o t a l n e t a s s e t s

4 2 1 , 1 9 7

8 , 1 7 3 , 6 4 0

1 , 1 6

1 , 5 9 4

3 , 4 6 4 , 5 1 4

1 4 , 1 0 3 , 1 1 1

1 , 0 1

4 , 8 6 6 , 8 4 6

1 , 0 4 2 , 1 9 0 , 9 0 2

-

1 , 0 4 2 , 1 9 0 , 9 0 2

T o t a l l i a b i l i t i e s a n d n e t a s s e t s

7 7 0 , 1 6 4

$

8 , 9 7 7 , 5 1 8

$

5 , 9 4

5 , 4 1 2

$

4 , 1 7 3 , 7 9 9

$

1 4 , 2 1 2 , 0 3 5

$

1 , 8 6

5 , 2 8 9 , 9 1 4

$

1 , 8 9 9 , 3 6 8 , 8 4 2

$

( 7 1 7 , 6 2 2 )

$

1 , 8 9 8 , 6 5 1 , 2 2 0

$

L i a b i l i t i e s a n d N e t A s s e t s

5 0







f C a s h F l o w s

F o r t h e Y e a r E n d e d J u

n e 3 0 , 2 0 0 5

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t .

L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w

n t o w n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s



C a s h f l o w s f r o m o

p e r a t i n g a c t i v i t i e s

R e c e i p t s f r o m c u s t o m e r s

4 4 7 , 9 5 8

$

4 , 7 1 7 , 6 9 6

$

2 , 0 5 3 , 8 2 2

$

3 , 0 0 2 , 1 3 8

$

1 , 2 5 1 , 8 3 5

$

2 2 , 2 1 9 , 5 8 0

$

3 3 , 6 9 3 , 0 2 9

$

-

$

3 3 , 6 9 3 , 0 2 9

$

P a y m e n t s t o e m p l o y e e s

( 1 , 0 6 6 , 2 1 5 )

( 1 , 2 2 6 , 9 6 0 )

( 3 6 5 , 3 8 5 )

( 1 , 3 4 0 , 7 8 9 )

(

4 3 0 , 7 9 1 )

( 1 1 8 , 5 2 0 , 1 3 6 )

( 1 2 2 , 9 5 0 , 2 7 6 )

-

( 1 2 2 , 9 5 0 , 2 7 6 )

P a y m e n t s t o v e n d o r s

( 1 , 0 4 1 , 0 6 6 )

( 1 , 6 5 0 , 5 6 1 )

( 4 3 8 , 9 7 6 )

( 1 , 1 5 7 , 8 4 8 )

(

3 4 0 , 3 1 8 )

( 3 1 , 0 8 9 , 1 8 5 )

( 3 5 , 7 1 7 , 9 5 4 )

-

( 3 5 , 7 1 7 , 9 5 4 )

P a y m e n t s f o r s e l f - i n s u r a n c e

-

( 3 3 , 3 1 5 )

( 2 9 , 8 3 8 )

( 1 2 0 , 0 7 1 )

( 5 0 , 4 9 4 )

( 8 , 0 1 4 , 0 1 8 )

( 8 , 2 4 7 , 7 3 6 )

-

( 8 , 2 4 7 , 7 3 6 )

R e c e i p t s ( p a y m e n t s ) f r o m i n t e r - f u n d a c t i v i t y

2 , 1 4 3 , 2 7 5

( 3 5 8 , 6 6 4 )

( 1 2 4 , 5 6 3 )

9 1 , 5 4 3

( 2 8 , 9 8 6 )

( 1 , 7 2 2 , 6 0 5 )

-

-

-

N e t c a s h p r o v i d e d b y ( u s e d f o r )

o p e r a t i n g a c t i v i t i e s

4 8 3 , 9 5 2

1 , 4 4 8 , 1 9 6

1 , 0 9 5 , 0 6 0

4 7 4 , 9 7 3

4 0 1 , 2 4 6

( 1 3 7 , 1 2 6 , 3 6 4 )

( 1 3 3 , 2 2 2 , 9 3 7 )

-

( 1 3 3 , 2 2 2 , 9 3 7 )

C a s h f l o w s f r o m n

o n c a p i t a l f i n a n c

i n g a c t i v i t i e s

O p e r a t i n g a s s i s t a n c e r e c e i v e d

-

-

-

-

-

1 5 0 , 3 1 3 , 2 6 5

1 5 0 , 3 1 3 , 2 6 5

-

1 5 0 , 3 1 3 , 2 6 5

C o n t r i b u t i o n s t o o u t s i d e e n t i t i e s

-

( 2 4 , 1 9 7 )

-

-

-

( 1 7 , 7 4 4 , 2 8 2 )

( 1 7 , 7 6 8 , 4 7 9 )

-

( 1 7 , 7 6 8 , 4 7 9 )

N o n c a p i t a l c o n t r i b u t i o n s

( 3 0 , 0 0 0 )

-

-

-

-

1 5 7 , 4 8 4

1 2 7 , 4 8 4

-

1 2 7 , 4 8 4

T r a n s f e r s t o o t h e r f u n d s

( 1 , 2 6 1 , 7 7 6 )

-

-

1 , 2 6 1 , 7 7 6

-

-

-

-

-


n o n c a p i t a l f i n a n c i n g a c t i v i t i e s

( 1 , 2 9 1 , 7 7 6 )

( 2 4 , 1 9 7 )

-

1 , 2 6 1 , 7 7 6

-

1 3 2 , 7 2 6 , 4 6 7

1 3 2 , 6 7 2 , 2 7 0

-

1 3 2 , 6 7 2 , 2 7 0

5 2



B i - S t a t e D e v e l o p m

e n t A g e n c y o f t h e

M i s s o u r i - I l l i n o i s M

e t r o p o l i t a n D i s t r i c t


C o m b i n i n g S c h e d u l e o f C a s h F l o w s ( c o n t i n u e d )

F o r t h e Y e a r E n d e d J u n

e 3 0 , 2 0 0 5

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i

s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w

n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s



C a s h f l o w s f r o m c a p i t a l a n d r e l a t e d

f i n a n c i n g a c t i v i t i e s

A c q u i s i t i o n s o f p r o p e r t y , p l a n t a n d e q u i p m e n t

-

$

( 4 6 6 , 4 0 8 )

$

-

$

( 2 , 0 0 4 , 6 3 2 )

$

( 9 2 , 4 3

7 )

$

( 1 9 5 , 1 9 5 , 5 3 9 )

$

( 1 9 7 , 7 5 9 , 0 1 6 )

$

-

$

( 1 9 7 , 7 5 9 , 0 1 6 )

$

P a y m e n t s o f c a p i t a l l e a s e o b l i g a t i o n s

-

-

-

-

( 5 , 5 0

0 )

( 1 6 , 8 2 5 , 5 2 1 )

( 1 6 , 8 3 1 , 0 2 1 )

-

( 1 6 , 8 3 1 , 0 2 1 )

P a y m e n t s o f l o n g - t e r m d e b t

-

-

( 4 8 5 , 0 0 0 )

-

-

( 1 , 0 2 7 , 7 0 9 )

( 1 , 5 1 2 , 7 0 9 )

-

( 1 , 5 1 2 , 7 0 9 )

I n t e r e s t p a i d

-

-

( 2 8 3 , 8 8 7 )

-

6

5

( 1 8 , 8 9 2 , 4 5 0 )

( 1 9 , 1 7 6 , 2 7 2 )

-

( 1 9 , 1 7 6 , 2 7 2 )

C o n t r i b u t e d c a p i t a l

-

-

-

-

-

6 6 , 8 8 8 , 9 9 5

6 6 , 8 8 8 , 9 9 5

-

6 6 , 8 8 8 , 9 9 5

O t h e r , n e t

-

-

( 3 6 2 , 5 4 1 )

3 4 5 , 2 6 9

( 2 6 , 3 9

4 )

-

( 4 3 , 6 6 6 )

-

( 4 3 , 6 6 6 )

N e t c a s h p r o v i d e d b y ( u s e d f o r ) c a p i t a l

-

( 4 6 6 , 4 0 8 )

( 1 , 1 3 1 , 4 2 8 )

( 1 , 6 5 9 , 3 6 3 )

( 1 2 4 , 2 6

6 )

( 1 6 5 , 0 5 2 , 2 2 4 )

( 1 6 8 , 4 3 3 , 6 8 9 )

-

( 1 6 8 , 4 3 3 , 6 8 9 )

a n d r e l a t e d f i n a n c i n g a c t i v i t i e s

C a s h f l o w s f r o m i n v e s t i n g a c t i v i t i e s

P u r c h a s e s o f i n v e s t m e n t s

-

-

-

-

-

( 2 2 , 9 7 2 , 5 2 5 )

( 2 2 , 9 7 2 , 5 2 5 )

-

( 2 2 , 9 7 2 , 5 2 5 )

P r o c e e d s f r o m s a l e o f i n v e s t m e n t s

-

-

-

-

-

4 5 , 2 4 9 , 1 2 5

4 5 , 2 4 9 , 1 2 5

-

4 5 , 2 4 9 , 1 2 5

I n t e r e s t r e c e i v e d

2 1 , 9 8 1

7 2 , 8 6 5

4 6 , 3 9 6

4 5 9

4 , 5 8

1

2 7 , 6 8 6 , 0 6 5

2 7 , 8 3 2 , 3 4 7

-

2 7 , 8 3 2 , 3 4 7


2 1 , 9 8 1

7 2 , 8 6 5

4 6 , 3 9 6

4 5 9

4 , 5 8

1

4 9 , 9 6 2 , 6 6 5

5 0 , 1 0 8 , 9 4 7

-

5 0 , 1 0 8 , 9 4 7

i n v e s t i n g a c t i v i t i e s

N e t i n c r e a s e ( d e c r e a s e ) i n c a

s h

a n d c a s h e q u i v a l e n t s

( 7 8 5 , 8 4 3 )

1 , 0 3 0 , 4 5 6

1 0 , 0 2 8

7 7 , 8 4 5

2 8 1 , 5 6

1

( 1 1 9 , 4 8 9 , 4 5 6 )

( 1 1 8 , 8 7 5 , 4 0 9 )

-

( 1 1 8 , 8 7 5 , 4 0 9 )

C a s h a n d c a s h e q u i v a l e n t s , b e g i n n i n g o f y e a r

1 , 2 6 1 , 1 5 9

3 , 5 4 7 , 1 1 1

2 , 8 6 2 , 3 3 4

1 6 1 , 4 7 4

9 7 , 1 2

8

3 6 3 , 3 2 1 , 5 0 2

3 7 1 , 2 5 0 , 7 0 8

-

3 7 1 , 2 5 0 , 7 0 8

C a s h a n d c a s h e q u i v a l e n t s , e n d o f y e a r

4 7 5 , 3 1 6

4 , 5 7 7 , 5 6 7

2 , 8 7 2 , 3 6 2

2 3 9 , 3 1 9

3 7 8 , 6 8

9

2 4 3 , 8 3 2 , 0 4 6

2 5 2 , 3 7 5 , 2 9 9

-

2 5 2 , 3 7 5 , 2 9 9

5 3






C o m b i n i n g S c h e d u l e o f C

a s h F l o w s ( c o n t i n u e d )

F o r t h e Y e a r E n d e d J u n e

3 0 , 2 0 0 5

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w

n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s





O p e r a t i n g i n c o m e ( l o s s )

3 6 4 , 0 6 5

$

8 5 6 , 4 1 6

$

5 1 4 , 4 5 5

$

( 6 4 , 2 9 0 )

$

( 6 7 8 , 5

0 8 )

$

( 1 8 9 , 8 5 6 , 2 0 5 )

$

( 1 8 8 , 8 6 4 , 0 6 7 )

$

-

$

( 1 8 8 , 8 6 4 , 0 6 7 )

$

A d j u s t m e n t s t o r e c o n c i l e o p e r a t i n g

i n c o m e ( l o s s ) t o n e t c a s h p r o v i d e d b y

( u s e d f o r ) o p e r a t i n g a c t i v i t i e s

D e p r e c i a t i o n a n d a m o r t i z a t i o n

4 , 6 6 4

$

5 0 2 , 8 4 9

$

4 5 8 , 9 1 1

$

1 8 5 , 6 9 0

$

9 9 2 , 9

8 7

$

5 8 , 0 0 9 , 3 0 9

$

6 0 , 1 5 4 , 4 1 0

-

6 0 , 1 5 4 , 4 1 0

O t h e r n o n c a s h o p e r a t i n g c h a r g e s

-

-

-

-

-

( 1 , 4 8 7 , 0 0 3 )

( 1 , 4 8 7 , 0 0 3 )

-

( 1 , 4 8 7 , 0 0 3 )

C h a n g e i n a s s e t s a n d l i a b i l i t i e s

A c c o u n t s a n d N o t e s R e c e i v a b l e s

( 6 1 , 1 8 4 )

1 6 , 0 6 2

( 2 7 8 )

1 , 3 9 3

3 2 , 8

5 2

( 7 , 2 2 9 , 9 2 6 )

( 7 , 2 4 1 , 0 8 1 )

-

( 7 , 2 4 1 , 0 8 1 )

S t a t e a n d L o c a l O p e r a t i n g A s s i s t a n c e R e c e

i v a b l e

-

-

-

-

-

( 9 , 7 7 1 , 4 8 8 )

( 9 , 7 7 1 , 4 8 8 )

-

( 9 , 7 7 1 , 4 8 8 )


1 4 4 , 5 5 6

1 0 6 , 4 2 3

8 0 , 4 5 0

( 1 , 5 4 3 )

6 9 , 8

5 6

( 8 3 , 3 5 9 )

3 1 6 , 3 8 3

( 3 1 6 , 3 8 3 )

-


-

-

-

( 4 , 0 7 8 )

-

1 5 8 , 3 4 1

1 5 4 , 2 6 3

-

1 5 4 , 2 6 3

P r e p a i d e x p e n s e s , d e f e r r e d c h a r g e s a n d


( 1 , 5 7 9 )

5 5 , 2 1 3

-

2 3 , 4 1 4

2 , 6

8 8

1 7 , 8 0 5

9 7 , 5 4 1

-

9 7 , 5 4 1

R e s t r i c t e d a c c o u n t s r e c e i v a b l e s

-

-

-

-

-

1 0 , 9 5 2 , 8 0 1

1 0 , 9 5 2 , 8 0 1

-

1 0 , 9 5 2 , 8 0 1

O t h e r n o n c u r r e n t a s s e t s

-

-

-

-

-

1 , 9 6 9 , 7 6 6

1 , 9 6 9 , 7 6 6

-

1 , 9 6 9 , 7 6 6


1 3 , 9 8 5

( 2 1 2 , 2 7 5 )

3 0 , 6 7 3

1 2 0 , 2 5 0

4 , 1

8 2

1 4 , 6 7 5 , 4 6 6

1 4 , 6 3 2 , 2 8 1

-

1 4 , 6 3 2 , 2 8 1


-

3 4 , 1 9 1

( 2 , 8 5 4 )

( 6 9 , 5 6 6 )

3 , 4

6 6

1 7 0 , 4 9 8

1 3 5 , 7 3 5

-

1 3 5 , 7 3 5


9 3 , 3 9 7

( 4 , 6 6 0 )

-

2 4 2 , 0 0 2

( 3 7 , 8

7 7 )

( 6 0 9 , 3 8 3 )

( 3 1 6 , 5 2 1 )

3 1 6 , 5 2 1

-


1 , 5 0 7

1 0 , 8 0 2

6 , 2 4 5

2 4 , 1 3 0

7 , 6

2 4

( 1 , 9 8 5 , 5 5 0 )

( 1 , 9 3 5 , 2 4 2 )

-

( 1 , 9 3 5 , 2 4 2 )


-

-

-

-

-

-

-

-

-


-

7 , 7 1 6

6 , 0 0 0

1 7 , 5 7 1

3 , 9

7 6

( 6 2 6 , 0 5 1 )

( 5 9 0 , 7 8 8 )

-

( 5 9 0 , 7 8 8 )

A c c o u n t s a n d r e t a i n a g e p a y a b l e

-

-

-

-

-

( 1 1 , 4 3 0 , 0 6 5 )

( 1 1 , 4 3 0 , 0 6 5 )

-

( 1 1 , 4 3 0 , 0 6 5 )

T o t a l a d j u s t m e n t s

1 9 5 , 3 4 6

5 1 6 , 3 2 1

5 7 9 , 1 4 7

5 3 9 , 2 6 3

1 , 0 7 9 , 7

5 4

5 2 , 7 3 1 , 1 6 1

5 5 , 6 4 0 , 9 9 1

1 3 9

5 5 , 6 4 1 , 1 3 0

N e t c a s h p r o v i d e d b y ( u s e d

f o r ) o p e r a t i n g a c t i v i t i e s

5 5 9 , 4 1 1

$

1 , 3 7 2 , 7 3 7

$

1 , 0 9 3 , 6 0 2

$

4 7 4 , 9 7 3

$

4 0 1 , 2

4 6

$

( 1 3 7 , 1 2 5 , 0 4 4 )

$

( 1 3 3 , 2 2 3 , 0 7 6 )

$

1 3 9

$

( 1 3 3 , 2 2 2 , 9 3 7 )

$

5 4



B i - S t a t e D e v e l o p m e

n t A g e n c y o f t h e

M i s s o u r i - I l l i n o i s M e

t r o p o l i t a n D i s t r i c t


C o m b i n i n g S c h e d u l e o f N e t A s s e t s

J u n e 3 0 , 2 0 0 4

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i s

T o t a l

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w

n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s



C u r r e n t a s s e t s

C a s h a n d c a s h e q u i v a l e n t s

1 , 2 6 1 , 1 5 9

$

2 , 4 9 9 , 1 1 1

$

1 , 5 6 3 , 8 6 5

$

1 6 1 , 4 7 4

$

9 7 , 1 2

8

$

2 5 , 2 8 3 , 3 8 4

$

3 0 , 8 6 6 , 1 2 1

$

-

$

3 0 , 8 6 6 , 1 2 1

$


1 6 2 , 4 9 9

1 1 9 , 3 0 6

8 8 , 0 9 3

3 0 3 , 0 1 2

7 2 , 7 2

2

2 8 8 , 3 7 3

1 , 0 3 4 , 0 0 5

( 1 , 0 3 4 , 0 0 5 )

-

A c c o u n t s a n d n o t e s r e c e i v a b l e

1 1 5 , 4 8 3

2 4 , 6 9 9

2 , 6 3 8

1 , 3 9 3

1 9 0 , 6 0

7

5 , 2 4 7 , 7 1 9

5 , 5 8 2 , 5 3 9

-

5 , 5 8 2 , 5 3 9

S t a t e a n d l o c a l o p e r a t i n g a s s i s t a n c e r e c e i v a b l e

-

-

-

-

-

9 9 7 , 5 8 9

9 9 7 , 5 8 9

-

9 9 7 , 5 8 9


-

-

-

4 3 , 3 9 4

-

5 , 9 2 7 , 0 5 1

5 , 9 7 0 , 4 4 5

-

5 , 9 7 0 , 4 4 5


1 3 , 7 4 4

1 4 0 , 6 1 0

-

2 3 , 4 1 4

2 , 6 8

8

5 1 , 5 6 1

2 3 2 , 0 1 7

-

2 3 2 , 0 1 7

T o t a l c u r r e n t a s s e t s

1 , 5 5 2 , 8 8 5

2 , 7 8 3 , 7 2 6

1 , 6 5 4 , 5 9 6

5 3 2 , 6 8 7

3 6 3 , 1 4

5

3 7 , 7 9 5 , 6 7 7

4 4 , 6 8 2 , 7 1 6

( 1 , 0 3 4 , 0 0 5 )

4 3 , 6 4 8 , 7 1 1

N o n c u r r e n t a s s e t s

R e s t r i c t e d c a s h a n d c a s h e q u i v a l e n t s

-

1 , 0 4 8 , 0 0 0

1 , 2 9 8 , 4 6 9

-

-

3 3 8 , 0 3 8 , 1 1 8

3 4 0 , 3 8 4 , 5 8 7

-

3 4 0 , 3 8 4 , 5 8 7

R e s t r i c t e d i n v e s t m e n t s

-

-

-

-

-

3 7 2 , 9 9 9 , 9 1 0

3 7 2 , 9 9 9 , 9 1 0

-

3 7 2 , 9 9 9 , 9 1 0

R e s t r i c t e d a c c o u n t s r e c e i v a b l e

-

-

-

-

-

1 0 , 9 5 2 , 8 0 1

1 0 , 9 5 2 , 8 0 1

-

1 0 , 9 5 2 , 8 0 1

C a p i t a l a s s e t s , n e t

o f a c c u m u l a t e d d e p r e c i a t i o n

1 4 , 1 1 9

4 , 3 0 9 , 6 9 3

3 , 4 3 7 , 2 6 1

1 , 6 8 6 , 0 3 9

9 , 2 8 8 , 8 4

9

7 7 6 , 0 7 3 , 4 7 3

7 9 4 , 8 0 9 , 4 3 4

-

7 9 4 , 8 0 9 , 4 3 4

L a n d

-

-

-

-

4 , 2 0 0 , 0 0

6

7 1 , 2 1 5 , 5 3 3

7 5 , 4 1 5 , 5 3 9

-

7 5 , 4 1 5 , 5 3 9

C o n s t r u c t i o n i n p r o g r e s s

-

9 5 , 2 4 0

-

7 5 , 6 2 2

4 5 3 , 3 8

3

3 3 9 , 7 8 0 , 1 8 9

3 4 0 , 4 0 4 , 4 3 4

-

3 4 0 , 4 0 4 , 4 3 4

O t h e r n o n c u r r e n t a s s e t s , n e t o f

a c c u m u l a t e d a m o r t i z a t i o n

-

-

8 5 , 5 9 8

-

-

7 , 7 9 8 , 9 0 3

7 , 8 8 4 , 5 0 1

-

7 , 8 8 4 , 5 0 1

T o t a l n o n c u r r e n t a s s e t s

1 4 , 1 1 9

5 , 4 5 2 , 9 3 3

4 , 8 2 1 , 3 2 8

1 , 7 6 1 , 6 6 1

1 3 , 9 4 2 , 2 3

8

1 , 9 1 6 , 8 5 8 , 9 2 7

1 , 9 4 2 , 8 5 1 , 2 0 6

-

1 , 9 4 2 , 8 5 1 , 2 0 6

T o t a l a s s e t s

1 , 5 6 7 , 0 0 4

$

8 , 2 3 6 , 6 5 9

$

6 , 4 7 5 , 9 2 4

$

2 , 2 9 4 , 3 4 8

$

1 4 , 3 0 5 , 3 8

3

$

1 , 9 5 4 , 6 5 4 , 6 0 4

$

1 , 9 8 7 , 5 3 3 , 9 2 2

$

( 1 , 0 3 4 , 0 0 5 )

$

1 , 9 8 6 , 4 9 9 , 9 1 7

$

A s s e t s

5 5







f N e t A s s e t s

J u n e 3 0 , 2 0 0 4

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w n

T r a n s i t

I n

t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s

E l i m

i n a t i o n s


C u r r e n t l i a b i l i t i e s p a y a b l e f r o m u n r e s t r i c t e d a s s e t s


1 7 3 , 6 0 6

$

5 6 3 , 6 9 8

$

1 5 , 5 0 5

$

2 8 , 8 4 9

$

1 4 , 4 5 1

$

5 2 , 4 4 3 , 2 5 4

$

5 3 , 2 3 9 , 3 6 3

$

-

$

5 3 , 2 3 9 , 3 6 3

$


6 0 , 0 8 0

5 9 , 2 3 4

2 1 , 4 1 4

6 8 , 3 6 4

2 5 , 1 4 2

1 7 , 9 8 2 , 5 1 6

1 8 , 2 1 6 , 7 5 0

-

1 8 , 2 1 6 , 7 5 0


-

1 6 , 6 2 7

1 2 , 4 4 8

2 1 8 , 9 8 9

3 , 8 7 5

6 6 2 , 0 5 4

9 1 3 , 9 9 3

-

9 1 3 , 9 9 3

C u r r e n t p o r t i o n o f c a p i t a l l e a s e o b l i g a

t i o n s

-

-

-

-

5 , 5 0 0

-

5 , 5 0 0

-

5 , 5 0 0


6 , 3 9 2

3 2 4 , 5 4 5

-

2 5 , 9 1 9

5 4 , 2 4 9

6 2 2 , 9 0 0

1 , 0 3 4 , 0 0 5

( 1 , 0 3 4 , 0 0 5 )

-

T o t a l c u r r e n t l i a b i l i t i e s p a y a b l e f r o m

2 4 0 , 0 7 8

9 6 4 , 1 0 4

4 9 , 3 6 7

3 4 2 , 1 2 1

1 0 3 , 2 1 7

7 1 , 7 1 0 , 7 2 4

7 3 , 4 0 9 , 6 1 1

( 1 , 0 3 4 , 0 0 5 )

7 2 , 3 7 5 , 6 0 6

u n r e s t r c t e a s s e t s

C u r r e n t l i a b i l i t i e s p a y b l e f r o m r e s t r i c t e d

a s s e t s

A c c o u n t s p a y a b l e a n d r e t a i n a g e p a y a b

l e

-

-

-

-

-

1 1 , 4 3 0 , 0 6 5

1 1 , 4 3 0 , 0 6 5

-

1 1 , 4 3 0 , 0 6 5


-

-

2 4 , 8 9 5

-

-

4 , 2 8 8 , 1 2 1

4 , 3 1 3 , 0 1 6

-

4 , 3 1 3 , 0 1 6


-

4 , 0 0 0

5 , 5 0 0

3 2 , 7 7 7

2 9 , 8 3 6

1 6 , 9 9 9 , 4 0 0

1 7 , 0 7 1 , 5 1 3

-

1 7 , 0 7 1 , 5 1 3

C u r r e n t p o r t i o n o f l o n g - t e r m d e b t

-

-

4 8 5 , 0 0 0

-

-

1 , 0 2 7 , 7 0 9

1 , 5 1 2 , 7 0 9

-

1 , 5 1 2 , 7 0 9

C u r r e n t p o r t i o n o f c a p i t a l l e a s e o b l i g a

t i o n s

-

-

-

-

-

1 8 , 5 1 4 , 3 1 0

1 8 , 5 1 4 , 3 1 0

-

1 8 , 5 1 4 , 3 1 0

T o t a l c u r r e n t l i a b i l i t i e s p a y a b l e f r o m

r e s t r i c t e d a s s e t s

-

4 , 0 0 0

5 1 5 , 3 9 5

3 2 , 7 7 7

2 9 , 8 3 6

5 2 , 2 5 9 , 6 0 5

5 2 , 8 4 1 , 6 1 3

-

5 2 , 8 4 1 , 6 1 3

T o t a l c u r r e n t l i a b i l i t i e s

2 4 0 , 0 7 8

9 6 8 , 1 0 4

5 6 4 , 7 6 2

3 7 4 , 8 9 8

1 3 3 , 0 5 3

1 2 3 , 9 7 0 , 3 2 9

1 2 6 , 2 5 1 , 2 2 4

( 1 , 0 3 4 , 0 0 5 )

1 2 5 , 2 1 7 , 2 1 9

N o n c u r r e n t l i a b i l i t i e s

L o n g - t e r m d e b t

-

-

4 , 6 2 4 , 6 6 2

-

-

4 3 0 , 6 9 3 , 1 0 9

4 3 5 , 3 1 7 , 7 7 1

-

4 3 5 , 3 1 7 , 7 7 1

C a p i t a l l e a s e o b l i g a t i o n s

-

-

-

-

-

2 8 4 , 6 4 7 , 8 0 6

2 8 4 , 6 4 7 , 8 0 6

-

2 8 4 , 6 4 7 , 8 0 6

T o t a l n o n c u r r e n t l i a b i l i t i e s

-

-

4 , 6 2 4 , 6 6 2

-

-

7 1 5 , 3 4 0 , 9 1 5

7 1 9 , 9 6 5 , 5 7 7

-

7 1 9 , 9 6 5 , 5 7 7

T o t a l l i a b i l i t i e s

2 4 0 , 0 7 8

9 6 8 , 1 0 4

5 , 1 8 9 , 4 2 4

3 7 4 , 8 9 8

1 3 3 , 0 5 3

8 3 9 , 3 1 1 , 2 4 4

8 4 6 , 2 1 6 , 8 0 1

( 1 , 0 3 4 , 0 0 5 )

8 4 5 , 1 8 2 , 7 9 6

N e t A s s e t s

I n v e s t e d i n c a p i t a l a s s e t s

1 4 , 1 2 0

4 , 4 0 4 , 9 3 4

( 2 , 0 9 2 , 1 4 7 )

1 , 7 7 4 , 5 4 1

1 5 , 9 2 2 , 3 7 3

9 7 7 , 1 8 5 , 9 2 2

9 9 7 , 2 0 9 , 7 4 3

-

9 9 7 , 2 0 9 , 7 4 3

U n r e s t r i c t e d

1 , 3 1 2 , 8 0 6

2 , 8 6 3 , 6 2 1

3 , 3 7 8 , 6 4 7

1 4 4 , 9 0 9

( 1 , 7 5 0 , 0 4 3 )

1 3 8 , 1 5 7 , 4 3 8

1 4 4 , 1 0 7 , 3 7 8

-

1 4 4 , 1 0 7 , 3 7 8

T o t a l n e t a s s e t s

1 , 3 2 6 , 9 2 6

7 , 2 6 8 , 5 5 5

1 , 2 8 6 , 5 0 0

1 , 9 1 9 , 4 5 0

1 4 , 1 7 2 , 3 3 0

1 , 1 1 5 , 3 4 3 , 3 6 0

1 , 1 4 1 , 3 1 7 , 1 2 1

-

1 , 1 4 1 , 3 1 7 , 1 2 1

T o t a l l i a b i l i t i e s a n d n e t a s s e

t s

1 , 5 6 7 , 0 0 4

$

8 , 2 3 6 , 6 5 9

$

6 , 4 7 5 , 9 2 4

$

2 , 2 9 4 , 3 4 8

$

1 4 , 3 0 5 , 3 8 3

$

1 , 9 5 4 , 6 5 4 , 6 0 4

$

1 , 9 8 7 , 5 3 3 , 9 2 2

$

( 1 , 0 3 4 , 0 0 5 )

$

1 , 9 8 6 , 4 9 9 , 9 1 7

$

L i a b i l i t i e s a n d N e t A s s e t s

5 6







a s h F l o w s


3 0 , 2 0 0 4

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w

n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r

t

S y s t e m

T o t a l s





R e c e i p t s f r o m c u s t o m e r s

5 8 4 , 7 9 9

$

4 , 1 6 9 , 7 6 1

$

2 , 0 3 0 , 0 0 4

$

2 , 8 1 4 , 3 3 2

$

1 , 0 2 4 , 7 8 0

$

3 5 , 2 0 6 , 1 9 7

$

4 5 , 8 2 8 , 0 9 6

$

-

$

4 5 , 8 2 8 , 0 9 6

$

P a y m e n t s t o e m p l o y e e s

( 9 4 2 , 8 6 3 )

( 1 , 1 8 5 , 1 7 7 )

( 3 5 5 , 8 4 0 )

( 1 , 2 8 6 , 7 3 6 )

( 4 5 6 , 7 1 8 )

( 1 1 4 , 0 0 0 , 4 3 0 )

( 1 1 8 , 2 2 7 , 7 6 4 )

-

( 1 1 8 , 2 2 7 , 7 6 4 )

P a y m e n t s t o v e n d o r s

( 1 , 0 6 7 , 7 2 8 )

( 1 , 5 0 2 , 8 0 0 )

( 4 8 4 , 9 8 7 )

( 1 , 0 9 9 , 2 1 2 )

( 3 6 5 , 3 3 4 )

( 3 , 8 1 9 , 6 8 0 )

( 8 , 3 3 9 , 7 4 1 )

-

( 8 , 3 3 9 , 7 4 1 )

P a y m e n t s f o r s e l f - i n s u r a n c e

-

( 3 9 , 0 6 6 )

( 2 8 , 3 3 9 )

( 1 3 5 , 3 8 4 )

( 2 2 , 6 2 7 )

( 5 , 7 1 7 , 8 5 1 )

( 5 , 9 4 3 , 2 6 7 )

-

( 5 , 9 4 3 , 2 6 7 )

R e c e i p t s ( p a y m e n t s ) f r o m i n t e r - f u n d a c t i v i t y

1 , 8 0 0 , 2 2 9

1 7 , 0 9 8

( 1 5 0 , 0 8 0 )

( 2 2 4 , 0 5 7 )

( 1 6 4 , 3 1 5 )

( 8 0 1 , 6 1 1 )

4 7 7 , 2 6 4

-

4 7 7 , 2 6 4


o p e r a t i n g a c t i v i t i e s

3 7 4 , 4 3 7

1 , 4 5 9 , 8 1 6

1 , 0 1 0 , 7 5 8

6 8 , 9 4 3

1 5 , 7 8 6

( 8 9 , 1 3 5 , 1 5 2 )

( 8 6 , 2 0 5 , 4 1 2 )

-

( 8 6 , 2 0 5 , 4 1 2 )

C a s h f l o w s f r o m n

o n c a p i t a l f i n a n c i n g a c t i v i t i e s

O p e r a t i n g a s s i s t a n c e r e c e i v e d

-

-

-

-

-

1 3 0 , 6 7 3 , 6 6 1

1 3 0 , 6 7 3 , 6 6 1

-

1 3 0 , 6 7 3 , 6 6 1

C o n t r i b u t i o n s t o o u t s i d e e n t i t i e s

-

( 4 1 , 6 2 3 )

-

-

-

( 1 , 1 3 5 , 8 2 6 )

( 1 , 1 7 7 , 4 4 9 )

-

( 1 , 1 7 7 , 4 4 9 )

N o n c a p i t a l c o n t r i b u t i o n s

( 3 2 , 5 8 8 )

( 7 , 3 9 5 )

1 6 , 2 7 8

( 7 , 2 4 8 )

2 4 , 3 0 3

( 1 2 , 8 8 0 )

( 1 9 , 5 3 0 )

-

( 1 9 , 5 3 0 )


n o n c a p i t a l f i n a n c i n g a c t i v i t i e s

( 3 2 , 5 8 8 )

( 4 9 , 0 1 8 )

1 6 , 2 7 8

( 7 , 2 4 8 )

2 4 , 3 0 3

1 2 9 , 5 2 4 , 9 5 5

1 2 9 , 4 7 6 , 6 8 2

-

1 2 9 , 4 7 6 , 6 8 2

5 8



B i - S t a t e D e v e l o p m e

n t A g e n c y o f t h e

M i s s o u r i - I l l i n o i s M e

t r o p o l i t a n D i s t r i c t


C o m b i n i n g S c h e d u l e o f C a s h F l o w s ( c o n t i n u e d )

F o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 0 4

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s



C a s h f l o w s f r o m c

a p i t a l a n d r e l a t e d

f i n a n c i n g a c t i v i t i e s

A c q u i s i t i o n s o f c a p i t a l a s s e t s

-

$

( 1 4 3 , 4 9 1 )

$

( 1 3 , 8 9 8 )

$

( 1 7 0 , 4 5 3 )

$

( 3 8 , 1 9 7 )

$

( 2 3 7 , 1 8 8 , 8 5 2 )

$

( 2 3 7 , 5 5 4 , 8 9 1 )

$

-

$

( 2 3 7 , 5 5 4 , 8 9 1 )

$

P a y m e n t s o f c a p i t a l l e a s e o b l i g a t i o n s

-

-

-

-

( 2 1 , 0 5 3 )

( 2 4 , 6 2 7 , 8 5 7 )

( 2 4 , 6 4 8 , 9 1 0 )

-

( 2 4 , 6 4 8 , 9 1 0 )

P a y m e n t s o f l o n g - t e r m d e b t

-

-

( 4 6 5 , 0 0 0 )

-

-

( 9 7 6 , 0 1 1 )

( 1 , 4 4 1 , 0 1 1 )

-

( 1 , 4 4 1 , 0 1 1 )

I n t e r e s t p a i d

-

-

( 3 1 0 , 5 9 7 )

-

( 1 , 2 0 7 )

( 2 5 , 5 1 7 , 3 2 3 )

( 2 5 , 8 2 9 , 1 2 7 )

-

( 2 5 , 8 2 9 , 1 2 7 )

P r o c e e d s f r o m b o r r o w i n g

-

-

-

-

-

-

-

-

-

C o n t r i b u t e d c a p i t a l

-

-

-

-

-

6 3 , 4 9 8 , 6 2 5

6 3 , 4 9 8 , 6 2 5

-

6 3 , 4 9 8 , 6 2 5


c a p i t a l

a n d r e l a t e d f i n a n c i n g a c t i v i t i e s

-

( 1 4 3 , 4 9 1 )

( 7 8 9 , 4 9 5 )

( 1 7 0 , 4 5 3 )

( 6 0 , 4 5 7 )

( 2 2 4 , 8 1 1 , 4 1 8 )

( 2 2 5 , 9 7 5 , 3 1 4 )

-

( 2 2 5 , 9 7 5 , 3 1 4 )

C a s h f l o w s f r o m i n

v e s t i n g a c t i v i t i e s

P u r c h a s e s o f i n v e s t m e n t s

-

-

-

-

-

( 1 1 5 , 6 8 4 , 7 8 8 )

( 1 1 5 , 6 8 4 , 7 8 8 )

-

( 1 1 5 , 6 8 4 , 7 8 8 )

P r o c e e d s f r o m s a l e o f i n v e s t m e n t s

-

-

-

-

-

3 5 3 , 5 7 0 , 2 8 4

3 5 3 , 5 7 0 , 2 8 4

-

3 5 3 , 5 7 0 , 2 8 4

I n t e r e s t r e c e i v e d

1 0 , 0 9 7

2 3 , 1 2 4

1 9 , 4 0 5

-

-

2 6 , 4 7 7 , 4 6 3

2 6 , 5 3 0 , 0 8 9

-

2 6 , 5 3 0 , 0 8 9


i n v e s t i n g a c t i v i t i e s

1 0 , 0 9 7

2 3 , 1 2 4

1 9 , 4 0 5

-

-

2 6 4 , 3 6 2 , 9 5 9

2 6 4 , 4 1 5 , 5 8 5

-

2 6 4 , 4 1 5 , 5 8 5

N e t i n c r e a s e ( d e c r e a s e ) i n c a s h

a n d c a s h e q u i v a l e n t s

3 5 1 , 9 4 6

1 , 2 9 0 , 4 3 1

2 5 6 , 9 4 6

( 1 0 8 , 7 5 8 )

( 2 0 , 3 6 8 )

7 9 , 9 4 1 , 3 4 4

8 1 , 7 1 1 , 5 4 1

-

8 1 , 7 1 1 , 5 4 1

C a s h a n d c a s h e q u i v a l e n t s , b e g i n n i n g o f y e a r

9 0 9 , 2 1 3

2 , 2 5 5 , 1 4 6

2 , 6 0 5 , 3 8 8

2 7 0 , 2 3 2

1 1 7 , 4 9 6

2 8 3 , 3 8 1 , 6 9 2

2 8 9 , 5 3 9 , 1 6 7

-

2 8 9 , 5 3 9 , 1 6 7

C a s h a n d c a s h e q u i v a l e n t s , e n d o f y e a r

1 , 2 6 1 , 1 5 9

3 , 5 4 5 , 5 7 7

2 , 8 6 2 , 3 3 4

1 6 1 , 4 7 4

9 7 , 1 2 8

3 6 3 , 3 2 3 , 0 3 6

3 7 1 , 2 5 0 , 7 0 8

-

3 7 1 , 2 5 0 , 7 0 8

5 9







a s h F l o w s ( c o n t i n u e d )


3 0 , 2 0 0 4

G a t e w a y

G a t e w a y

A r c h

A r c h

G a t e w a y

S t . L o u i s

T o t a l s

G e n e r a l

T r a m

P a r k i n g

A r c h

D o w n t o w

n

T r a n s i t

I n t e r f u n d

A f t e r

A g e n c y

S y s t e m

F a c i l i t y

R i v e r b o a t s

A i r p o r t

S y s t e m

T o t a l s





O p e r a t i n g i n c o m e ( l o s s )

3 3 8 , 2 2 5

$

4 0 4 , 6 6 8

$

5 3 9 , 7 0 8

$

( 8 2 , 8 1 2 )

$

( 8 8 1 , 7

1 9 )

$

( 1 8 8 , 6 1 9 , 8 8 9 )

$

( 1 8 8 , 3 0 1 , 8 2 0 )

$

-

$

( 1 8 8 , 3 0 1 , 8 2 0 )

$

A d j u s t m e n t s t o r e c o n c i l e o p e r a t i n g

i n c o m e ( l o s s ) t o n e t c a s h p r o v i d e d b y

( u s e d f o r ) o p e r a t i n g a c t i v i t i e s

D e p r e c i a t i o n a n d a m o r t i z a t i o n

4 , 6 6 4

5 2 5 , 9 9 4

4 5 9 , 7 5 0

1 4 6 , 3 0 9

1 , 0 4 9 , 7

4 4

5 7 , 0 7 5 , 9 4 3

5 9 , 2 6 2 , 4 0 4

-

5 9 , 2 6 2 , 4 0 4

C h a n g e i n a s s e t s a n d l i a b i l i t i e s

A c c o u n t s a n d N o t e s R e c e i v a b l e s

6 9 , 2 5 9

( 2 2 , 2 7 9 )

1 , 6 3 3

6 2

( 4 4 , 6

1 8 )

( 5 5 7 , 6 2 8 )

( 5 5 3 , 5 7 1 )

-

( 5 5 3 , 5 7 1 )

O p e r a t i n g a s s i s t a n c e r e c e i v a b l e

-

-

-

-

-

5 5 7 , 7 9 8

5 5 7 , 7 9 8

-

5 5 7 , 7 9 8


( 2 7 , 1 9 9 )

2 0 2 , 4 4 6

5 9 , 2 0 6

( 1 1 0 , 3 2 1 )

( 7 2 , 7

2 2 )

( 1 2 7 , 1 0 1 )

( 7 5 , 6 9 1 )

7 5 , 6 9 1

-


-

-

-

( 1 7 , 5 2 4 )

-

2 9 5 , 1 9 2

2 7 7 , 6 6 8

-

2 7 7 , 6 6 8

P r e p a i d e x p e n s e s , d e f e r r e d c h a r g e s a n d

o t h e r c u r r e n t a s s e t s

( 7 , 6 6 4 )

( 1 4 0 , 6 1 0 )

-

( 2 1 , 8 3 8 )

( 6

7 8 )

( 6 , 6 0 1 )

( 1 7 7 , 3 9 1 )

-

( 1 7 7 , 3 9 1 )

R e s t r i c t e d a c c o u n t s r e c e i v a b l e s

-

-

-

-

-

( 4 , 2 7 0 , 9 9 0 )

( 4 , 2 7 0 , 9 9 0 )

-

( 4 , 2 7 0 , 9 9 0 )


( 3 5 , 7 1 3 )

2 3 5 , 3 2 7

( 4 8 , 6 0 5 )

( 1 3 , 3 9 5 )

( 1

7 7 )

3 8 , 0 9 0 , 0 7 8

3 8 , 2 2 7 , 5 1 5

-

3 8 , 2 2 7 , 5 1 5


-

( 3 6 2 )

( 1 , 9 8 8 )

1 1 1 , 2 7 7

4 , 5

6 5

3 1 3 , 1 7 6

4 2 6 , 6 6 8

4 2 6 , 6 6 8


5 , 3 4 7

2 3 5 , 9 9 3

( 2 , 8 8 6 )

2 5 , 9 1 9

( 3 6 , 9

0 8 )

( 1 5 1 , 7 7 4 )

7 5 , 6 9 1

( 7 5 , 6 9 1 )

-


2 7 , 5 1 8

1 6 , 5 0 5

( 9 6 0 )

1 8 , 6 6 4

( 1 , 7

0 1 )

3 , 8 4 3 , 5 5 3

3 , 9 0 3 , 5 7 9

-

3 , 9 0 3 , 5 7 9


-

3 , 6 6 8

4 , 9 0 0

9 , 2 9 1

-

( 3 2 3 , 3 8 5 )

( 3 0 5 , 5 2 6 )

-

( 3 0 5 , 5 2 6 )

A c c o u n t s a n d r e t a i n a g e p a y a b l e

-

-

-

-

-

4 , 7 4 8 , 2 5 4

4 , 7 4 8 , 2 5 4

-

4 , 7 4 8 , 2 5 4

T o t a l a d j u s t m e n t s

3 6 , 2 1 2

1 , 0 5 6 , 6 8 2

4 7 1 , 0 5 0

1 4 8 , 4 4 4

8 9 7 , 5

0 5

9 9 , 4 8 6 , 5 1 5

1 0 2 , 0 9 6 , 4 0 8

-

1 0 2 , 0 9 6 , 4 0 8

N e t c a s h p r o v i d e d b y ( u s e d

f o r ) o p e r a t i n g a c t i v i t i e s

3 7 4 , 4 3 7

$

1 , 4 6 1 , 3 5 0

$

1 , 0 1 0 , 7 5 8

$

6 5 , 6 3 2

$

1 5 , 7

8 6

$

( 8 9 , 1 3 3 , 3 7 4 )

$

( 8 6 , 2 0 5 , 4 1 2 )

$

-

$

( 8 6 , 2 0 5 , 4 1 2 )

$

,

,

6 0


http://slidepdf.com/reader/full/2005-st-louis-metro-comprehensive-annual-financial-report 76/86 B i - S t a t e D e v e l o p m e n t A g

e n c y o f t h e

M

i s s o u r i - I l l i n o i s M e t r o p o

l i t a n D i s t r i c t

G e n e r a l A g e n c y

O p e r a t i n g D a t a

L a

s t T e n F i s c a l Y e a r s

2 0 0 5

2 0 0 4

2 0 0 3

2 0 0 2

2 0 0 1

2 0 0 0

1 9 9 9

1 9 9 8

1 9 9 7

1 9 9 6

O p

e r a t i n g R e v e n u e

2 , 4

1 4 , 4 6

4

$

2 , 3

3 7 , 6

2 1

$

1 , 9

9 6 , 3

6 2

$

1 , 6

3 0 , 4

5 4

$

1 , 6

0 4 , 9

0 1

$

1 , 5

7 0 , 0 0 1

$

1 , 7

2 8 , 1

7 0

$

1 , 7

3 6 , 2

0 5

$

1 , 6

2 7 , 0

0 3

$

1 , 1

2 2 , 9

1 2

$

O p

e r a t i n g E x p e n s e s

b

e f o r e d e p r e c i a t i o n

2 , 0

4 5 , 7 3

4

1 , 9

9 4 , 7

3 2

1 , 5

2 6 , 9

9 2

1 , 5

8 0 , 4

3 1

1 , 5

1 7 , 9

9 3

1 , 4

6 3 , 1 6 4

1 , 3

4 2 , 6

6 7

1 , 1

4 8 , 9

9 4

1 , 0

8 4 , 0

0 0

9 6 9 , 2

3 9

O p

e r a t i n g I n c o m e ( L o s s )

b

e f o r e d e p r e c i a t i o n

3 6 8 , 7 3

0

$

3 4 2 , 8

8 9

$

4 6 9 , 3

7 0

$

5 0 , 0

2 3

$

8 6 , 9

0 8

$

1 0 6 , 8 3 7

$

3 8 5 , 5

0 3

$

5 8 7 , 2

1 1

$

5 4 3 , 0

0 3

$

1 5 3 , 6

7 3

$

D e

p r e c i a t i o n &

A

m o r t i z a t i o n

4 , 6 6

4

$

4 , 6

6 4

$

2 , 9

6 2

$

1 , 2

6 0

$

1 , 2

6 0

$

1 , 2 6 0

$

1 , 6

4 6

$

2 , 6

1 7

$

3 , 0

8 8

$

2 , 1

8 3

$

O p

e r a t i n g I n c o m e ( L o s s )

3 6 4 , 0 6

6

$

3 3 8 , 2

2 5

$

4 6 6 , 4

0 8

$

4 8 , 7

6 3

$

8 5 , 6

4 8

$

1 0 5 , 5 7 7

$

3 8 3 , 8

5 7

$

5 8 4 , 5

9 4

$

5 3 9 , 9

1 5

$

1 5 1 , 4

9 0

$

N o

n o p e r a t i n g I n c o m e

( L o s s ) *

( 8 , 0 1

9 )

$

( 2 2 , 4

9 1 )

$

( 2 3 6 , 8

7 5 )

$

( 1 9 3 , 3

1 2 )

$

7 9 , 5

8 5

$

4 2 , 4 0 9

$

3 5 , 9

2 8

$

( 6 9 , 2

2 5 )

$

( 4 , 8

9 3 )

$

( 2 2 , 2

4 5 )

$

N e

t I n c o m e ( L o s s )

3 5 6 , 0 4

7

$

3 1 5 , 7

3 4

$

2 2 9 , 5

3 3

$

( 1 4 4 , 5

4 9 )

$

1 6 5 , 2

3 3

$

1 4 7 , 9 8 6

$

4 1 9 , 7

8 5

$

5 1 5 , 3

6 9

$

5 3 5 , 0

2 2

$

1 2 9 , 2

4 5

$

T o

t a l A s s e t s

7 7 0 , 1 6

4

$

1 , 5

6 7 , 0

0 4

$

1 , 2

5 4 , 1

1 8

$

2 , 7

5 0 , 2

8 0

$

6 , 0

2 9 , 8

6 9

$

5 , 8

7 0 , 9 8 4

$

5 , 6

9 1 , 2

1 7

$

5 , 1

8 7 , 3

5 9

$

5 , 1

2 6 , 9

4 4

$

4 , 3

2 5 , 6

9 4

$

C a

p i t a l A s s e t s

9 , 4 5

5

$

1 4 , 1

1 9

$

1 8 , 7

8 3

$

4 , 7

2 4

$

5 , 9

8 4

$

7 , 4 7 5

$

1 4 , 6

0 1

$

1 0 , 1

4 9

$

1 2 , 7

6 6

$

1 6 , 4

0 3

$

C a

p i t a l A s s e t s a s

P

e r c e n t o f T o t a l A s s e t s

1 . 2 3

%

0 . 9

0 %

1 . 5

0 %

0 . 1

7 %

0 . 1

0 %

0 . 1 3 %

0 . 2

6 %

0 . 2

0 %

0 . 2

5 %

0 . 3

8 %

* I n c l u d e s I n t e r e s t I n c o m e a n d I n t e r e s t E x p e n s

e

S o u r c e o f d a t a : A u d i t e d F i n a n c i a l S t a t e m e n t s

6 1



B i - S t a t e D e v e l o p m e n t A

g e n c y o f t h e

M i s s o u r i - I l l i n o i s M e t r o p

o l i t a n D i s t r i c t

G a t e w a y A r c h R i v e r b o a t s

O p e r a t i n g D a t a

L a s t F o u r F i s c a l Y e a r s

2 0 0

5

2 0 0 4

2 0 0 3

2 0 0 2

2 0 0 1

O p e r a t i n g R e v e n u e

3 ,

0 0 0 , 7 4 5

$

2 , 8 1 4 , 2 7 0

$

2 , 4 6 6 , 4 6 8

$

1 , 6 8 5 , 5 4 1

$

( A c q u i r e d i n 2 0 0 2 )

O p e r a t i n g E x p e n s e s

b e f o r e

d e p r e c i a t i o n

2 ,

8 7 9 , 3 4 5

$

2 , 7 4 7 , 4 6 2

$

2 , 1 5 1 , 4 6 8

$

1 , 6 3 2 , 1 2 8

$

O p e r a t i n g I n c o m e ( L o s s )

b e f o r e d e p r e c i a t i o n

1 2 1 , 4 0 0

$

6 6 , 8 0 8

$

3 1 5 , 0 0 0

$

5 3 , 4 1 3

$

D e p r e c i a t i o n & A m o r t i z a t i o n

1 8 5 , 6 9 0

$

1 4 6 , 3 0 9

$

1 3 3 , 2 9 1

$

1 2 7 , 5 2 4

$

O p e r a t i n g I n c o m e ( L o s s )

( 6 4 , 2 9 0 )

$

( 7 9 , 5 0 1 )

$

1 8 1 , 7 0 9

$

( 7 4 , 1 1 1 )

$

N o n o p e r a t i n g I n c o m e *

4 5 9

$

( 2 0 , 1 2 8 )

$

7 , 7 7 2

$

-

$

N e t I n c o m e ( L o s s )

( 6 3 , 8 3 1 )

$

( 9 9 , 6 2 9 )

$

1 8 9 , 4 8 1

$

( 7 4 , 1 1 1 )

$

T o t a l A s s e t s

4 ,

1 7 3 , 7 9 9

$

2 , 2 9 4 , 3 4 8

$

2 , 2 2 9 , 3 4 1

$

2 , 0 7 8 , 4 8 2

$

C a p i t a l A s s e t s

3 ,

5 8 2 , 4 5 3

$

1 , 7 6 1 , 6 6 1

$

1 , 7 3 7 , 5 1 7

$

1 , 7 9 3 , 0 6 2

$

C a p i t a l A s s e t s a s P e r c e n t o f

T o t a l A s s e t s

8 5 . 8 3 %

7 3 . 4 9 %

7 7 . 9 4 %

8 6 . 2 7 %

N u m b e r o f P a s s e n g e r s

1 6 3 , 7 5 2

1 7 0 , 0 6 4

1 5 6 , 9 5 0

1 0 9 , 9 2 9

N u m b e r o f C r u i s e s

1 , 4 6 3

1 , 4 7 0

1 , 4 6 2

1 , 1 6 6

D a y s o f O p e r a t i o n

2 7 3

2 8 4

2 7 7

2 3 5

S o u r c e o f d a t a : A u d i t e d f i n a n c i a l s t a t e m e n t s

6 4



B i - S t a t e D e v e l o p m e n t A g e n c y o f t h e M i s s o u r i - I l l i n o i s

M e t r o p o l i t a n D i s t r i c t

C o n t i n u i n g D i s c l o s u r e R e q u i r e m e n t

M e t r o L i n k C r o s s C o u n t y E x

t e n s i o n P r o j e c t

M a s s T r a n s i t S a l e x T a x A p p r o p r i a t i o n B o n d s

S e r i e s 2 0 0 2 A B C

U s e o f P r o p M S a l e s T a x b y

t h e A g e n c y

2 0 0 5

2 0 0 4

2 0 0 3

2 0 0 2

2 0 0 1

2 0 0 0

1 9 9 9

1 9 9 8

1 9 9 7

1 9 9 6

G r o s s R e c e i p t s

4 8 , 2

7 0 , 2

9 4

$

4 7 , 3

8 3 , 2

5 0

$

4 6 , 7

0 6 , 6

9 0

$

4

7 , 4

4 1 , 9

7 8

$

4 7 , 2

3 6 , 8

4 4

$

4 6 , 8

6 5 , 3

7 6

$

4 4 , 5

7 3 , 0

6 0

$

4 2 , 0

9 4 , 6

7 7

$

4 2 , 0

3 0 , 8

4 4

$

4 1 , 4

7 5 , 2

6 0

$

D e b t S e r v i c e C o v e r a g e

1 9 , 8

5 5 , 6

7 0

$

1 9 , 5

1 2 , 8

7 7

$

6 , 9

4 3 , 3

9 5

$

N e t R e c e i p t s t o M e t r o

2 8 , 4

1 4 , 6

2 4

$

2 7 , 8

7 0 , 3

7 3

$

3 9 , 7

6 3 , 2

9 5

$

4

7 , 4

4 1 , 9

7 8

$

4 7 , 2

3 6 , 8

4 4

$

4 6 , 8

6 5 , 3

7 6

$

4 4 , 5

7 3 , 0

6 0

$

4 2 , 0

9 4 , 6

7 7

$

4 2 , 0

3 0 , 8

4 4

$

4 1 , 4

7 5 , 2

6 0

$

O p e r a t i n g E x p e n d i t u r e s

2 8 , 4

1 4 , 6

2 4

$

2 6 , 4

4 8 , 9

8 4

$

2 4 , 7

1 4 , 1

9 8

$

2

0 , 2

5 7 , 0

5 0

$

2 2 , 8

4 9 , 7

9 5

$

1 8 , 8

8 8 , 6

3 5

$

1 5 , 2

8 5 , 6

7 7

$

1 6 , 8

5 7 , 0

6 2

$

1 7 , 1

2 8 , 4

2 1

$

1 7 , 8

3 3 , 3

0 0

$

C a p i t a l E x p e n d i t u r e s

6 , 7

9 4 , 7

5 3

$

4 , 4

7 5 , 3

0 8

$

7 5 , 1

5 8 , 1

1 9

$

3

7 , 2

9 4 , 9

2 4

$

2 , 1

3 6 , 1

3 3

$

1 , 6

0 8 , 7

1 3

$

6 , 9

4 9 , 2

8 4

$

( 9 9 9 , 9

5 9 )

$

8 , 8

0 4 , 0

7 9

$

4 , 1

2 5 , 3

1 7

$

D e b t S e r v i c e C o v e r a g e

R a t i o

2

4 3 %

2 4 2 %

4 2 9 %

C u m u l a t i v e B a l a n c e

5 3 , 8

8 3 , 2

6 8

$

6 0 , 6

7 8 , 0

2 1

$

6 3 , 7

3 1 , 9

4 0

$

1 2

7 , 4

8 4 , 8

8 6

$

1 3 7 , 8

9 4 , 8

8 2

$

1 1 5 , 6

4 3 , 9

6 6

$

8 9 , 2

7 5 , 9

3 8

$

6 6 , 9

3 7 , 8

3 9

$

4 0 , 7

0 0 , 2

6 5

$

2 4 , 6

0 1 , 8

8 1

$

S o u r c e : B i - S t a t e D e v e l o p m e n t A g e n c y

* D e b t S e r v i c e : U n d e r t h e i n d e n t u r e , m o

n i e s a p p r o p r i a t e d b y t h e s p o n s o r s a r e p a i d d i r e c t l y t o t h e T r u s t e e .

T h e T r u s t e e u n d e r t h e F l o w o f F u n d s , f i r s t m a k e s d e p o s i t s t o t h e D e b t S e r v i c e a n d E x p e

n s e F u n d s ,

w i t h a l l r e m a i n i n g f u n d s t r a n s f e r r e d t o t h

e A g e n c y ' s T r a n s i t O p e r a t i n g A c c o u n t .

7 0



A g e n c y o f t h e M i s s o u r i - I l l i n o i s

e m e n t

n s i o n P r o j e c t

o p r i a t i o n B o n d s

y E x t e n s i o n B o n d s )

t i s t i c s

2 0 0 5

2 0 0 4

2 0 0 3

2 0 0 2

2 0 0 1

2

0 0 0

1 9 9 9

1 9 9 8

1 9 9 7

1 9 9 6

6 , 5 0 5 , 5 0 7

4 5 , 6 4 4 , 0 9 6

4 6 , 0 2 5

, 1 7 9

4 7 , 6 6 1 , 3 3 3

5 0 , 9 7 1 , 1 2 7

5 2 , 1 8 6 , 4 6 8

5 3 , 6 4 7 , 3 8 0

5 4 , 5 2 2 , 5 9 2

5 3 , 3 5 0 , 3 1 9

5 0 , 8 2 9 , 0 7 8

0 , 1 8 1 , 2 6 3

3 0 , 4 5 2 , 4 7 7

3 0 , 6 0 5

, 8 6 6

3 2 , 4 4 8 , 7 0 2

3 6 , 2 3 7 , 6 0 9

3 7 , 5 8 4 , 7 7 7

3 8 , 2 6 2 , 7 6 0

3 9 , 5 8 5 , 2 9 6

3 8 , 5 0 0 , 9 2 2

3 7 , 6 2 6 , 6 6 4

5 , 6 4 8 , 2 3 3

1 4 , 5 0 9 , 5 2 2

1 4 , 8 4 3

, 9 6 9

1 4 , 6 8 0 , 2 1 3

1 4 , 2 8 8 , 9 7 6

1 4 , 1 6 5 , 7 6 8

1 4 , 9 8 0 , 6 9 6

1 4 , 5 6 0 , 2 9 1

1 4 , 4 8 5 , 7 9 5

1 2 , 8 7 0 , 1 0 2

6 7 6 , 0 1 1

6 8 2 , 0 9 7

5 7 5

, 3 4 4

5 3 2 , 4 1 8

4 4 4 , 5 4 2

4 3 5 , 9 2 3

4 0 3 , 9 2 4

3 7 7 , 0 0 5

3 6 3 , 6 0 2

3 3 2 , 3 1 2

1 4 8 , 5 4 8

1 4 6 , 3 6 5

1 4 7

, 6 6 5

1 5 4 , 7 6 6

1 6 4 , 8 4 9

1 6 8 , 1 6 9

1 7 2 , 3 1 3

1 7 4 , 3 1 4

1 7 1 , 7 2 0

1 6 4 , 3 0 3

9 9 , 7 9 6

1 0 0 , 3 4 1

1 0 1

, 1 7 2

1 0 8 , 1 2 2

1 2 0 , 9 3 8

1 2 4 , 9 0 2

1 2 6 , 8 2 4

1 3 1 , 0 1 0

1 2 7 , 8 8 5

1 2 5 , 7 9 9

4 6 , 4 1 7

4 3 , 6 6 1

4 4

, 5 3 9

4 4 , 8 2 1

4 2 , 3 8 1

4 1 , 7 7 6

4 4 , 0 7 8

4 1 , 9 5 9

4 2 , 5 1 9

3 7 , 3 0 5

2 , 3 3 5

2 , 3 6 3

1

, 9 5 4

1 , 8 2 3

1 , 5 3 0

1 , 4 9 1

1 , 4 1 1

1 , 3 4 5

1 , 3 1 6

1 , 1 9 9

2 , 7 9 8 , 6 5 9

2 , 5 9 2 , 7 4 3

2 , 4 0 7

, 3 3 4

2 , 0 1 3 , 0 1 7

R e v e n u e S e

r v i c e t o c o m m e n c e i n 2 0 0 6

8 , 3 5 8 , 1 2 8

2 8 , 6 1 0 , 6 4 4

2 8 , 1 9 9

, 2 3 9

2 9 , 0 9 3 , 8 0 1

2 9 , 7 1 2 , 8 8 4

2 8 , 8 8 7 , 3 3 8

2 8 , 2 8 8 , 8 5 8

2 8 , 4 9 7 , 2 9 0

2 8 , 7 4 2 , 1 1 5

2 8 , 4 6 0 , 3 7 9

9 , 7 3 7 , 7 8 9

1 9 , 8 7 8 , 5 8 7

2 0 , 2 3 7

, 1 8 5

2 1 , 5 5 3 , 3 4 3

2 4 , 1 3 9 , 1 7 8

2 3 , 4 0 6 , 6 3 0

2 3 , 1 1 0 , 1 7 6

2 3 , 4 4 6 , 2 9 8

2 3 , 8 2 4 , 2 3 6

2 3 , 8 6 2 , 5 6 3

2 , 4 0 5 , 5 5 3

2 , 6 1 2 , 1 7 1

2 , 6 5 8

, 4 3 2

2 , 6 7 9 , 2 4 9

1 , 5 3 7 , 6 4 5

1 , 3 6 9 , 5 5 3

1 , 3 6 8 , 7 3 8

1 , 3 9 5 , 0 1 8

1 , 4 1 9 , 3 7 5

1 , 3 9 6 , 3 9 6

6 , 2 1 4 , 7 8 6

6 , 1 1 9 , 8 8 6

5 , 3 0 3

, 6 2 2

4 , 8 6 1 , 2 0 9

4 , 0 3 6 , 0 6 1

4 , 1 1 1 , 1 5 5

3 , 8 0 9 , 9 4 4

3 , 6 5 5 , 9 7 4

3 , 4 9 8 , 5 0 4

3 , 2 0 1 , 4 2 0

7 1

2005 st. louis metro comprehensive annual financial report

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