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Regional Transportation District 1660 Blake Street Denver, CO 80202-1399 303-299-2306 Board of Directors Chair – Angie Rivera-Malpiede, District C First Vice Chair – Peggy Catlin, District N Second Vice Chair – Shelley Cook, District L Secretary – Vince Buzek, District J Treasurer – Lynn Guissinger, District O Bob Broom, District F Ken Mihalik, District G Claudia Folska, District E Doug Tisdale, District H Shontel M. Lewis, District B Jeff Walker, District D Judy Lubow, District I Troy Whitmore, District K Natalie Menten, District M Kate Williams, District A AGENDA Financial Administration & Audit Committee Tuesday, November 10, 2020 REMOTE MEETING 5:30 PM Conference Dial-in # 855-962-1128 Financial Administration and Audit Committee Chaired by Shelly Cook A. Call to Order B. Recommended Actions Adoption of 2021 Fiscal Policy (Heather McKillop/Jannette Scarpino - 5 minutes) Adoption of the Investment Policy (Heather McKillop/Brenden Morgan - 5 minutes) Adoption of the 2021 & 2022 Modified Mid-Term Financial Plan (Heather McKillop/Susan Cohen - 10 minutes) Adoption of the 2021 Budget (Heather McKillop/Jannette Scarpino - 20 minutes) PABs Refinancing Documents (Heather McKillop/Brenden Morgan - 15 minutes) Masabi Contract Amendment (Heather McKillop/Paul Snyder - 10 minutes) Bank Signature Authorization to Add Debra Johnson (Heather McKillop/Brenden Morgan - 5 minutes)

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Regional Transportation District 1660 Blake Street

Denver, CO 80202-1399

303-299-2306

Board of Directors

Chair – Angie Rivera-Malpiede, District C

First Vice Chair – Peggy Catlin, District N

Second Vice Chair – Shelley Cook, District L

Secretary – Vince Buzek, District J

Treasurer – Lynn Guissinger, District O

Bob Broom, District F Ken Mihalik, District G

Claudia Folska, District E Doug Tisdale, District H

Shontel M. Lewis, District B Jeff Walker, District D

Judy Lubow, District I Troy Whitmore, District K

Natalie Menten, District M Kate Williams, District A

AGE N D A Financial Administration & Audit Committee

Tuesday, November 10, 2020

REMOTE MEETING

5:30 PM

Conference Dial-in # 855-962-1128

Financial Administration and Audit Committee

Chaired by Shelly Cook

A. Call to Order

B. Recommended Actions

• Adoption of 2021 Fiscal Policy (Heather McKillop/Jannette Scarpino - 5

minutes)

• Adoption of the Investment Policy (Heather McKillop/Brenden Morgan - 5

minutes)

• Adoption of the 2021 & 2022 Modified Mid-Term Financial Plan (Heather

McKillop/Susan Cohen - 10 minutes)

• Adoption of the 2021 Budget (Heather McKillop/Jannette Scarpino - 20

minutes)

• PABs Refinancing Documents (Heather McKillop/Brenden Morgan - 15

minutes)

• Masabi Contract Amendment (Heather McKillop/Paul Snyder - 10 minutes)

• Bank Signature Authorization to Add Debra Johnson (Heather

McKillop/Brenden Morgan - 5 minutes)

• Authorization of Fiscal Authority to the GM for the North Metro Rail Line

Project (Heather McKillop/Susan Cohen - 5 minutes)

C. Updates

• September 2019 Monthly Financial Status Report (Heather McKillop/Doug

MacLeod - 5 minutes)

D. Information

• 3rd Quarter Investment Report

• Fiscal Sustainability Update

• LiVE Update

E. Other Matters

F. Next Meeting Date - December 8, 2020

G. Adjourn

The following communication assistance is available for public meetings:

• Language Interpreters

• Sign-language Interpreters

• Assisted listening devices

Please notify RTD of the communication assistance you require at least 48 business hours in advance of a

RTD meeting you wish to attend by calling 303.299.2307

THE CHAIR REQUESTS THAT ALL PAGERS AND CELL PHONES BE SILENCED DURING THE BOARD OF

DIRECTORS MEETING FOR THE REGIONAL TRANSPORTATION DISTRICT.

BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Adoption of 2021 Fiscal Policy

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the Board of Directors

approves and adopts the revised Fiscal Policy Statement for 2021.

This recommended action supports the following General Manager’s Goals:

Mission-Oriented Goal #3 - Strong Financial Management

Strategic Priority #6 – Move RTD Toward Stable Financial Situation

BACKGROUND

Proposed modifications to the Fiscal Policy Statement (the “Policy”) are brought to the Board of

Directors for approval during the year, as necessary. In addition, each year staff presents the proposed

Policy for development of the upcoming year’s budget.

The most recent modification to the Fiscal Policy was approved by the Board of Directors in October

2019 for the 2020 fiscal year. Those changes were clarification in Revenue Policies, addition of a policy

reference in Expenditure Policy, wording substitution/clarification, and update of rating agency credit

ratings at that date.

DISCUSSION

For 2021, the following changes are proposed. Please see the attached documents for the proposed full

document and document with changes shown.

1. Changes to Revenue Policies section as follows:

a. Wording clarification in Revenue Policy #1.

2. Rewrite of the Expenditure Policies section as follows:

a. Change to Expenditure Policy #5 to indicate that the Safety Management System has

taken the place of a safety program and add reference to the policy. The statement that

RTD will invest in safety outreach programs and personnel to communicate safety issues

is deleted because it has been superseded by the SMS and no longer considered relevant.

b. Change to Expenditure Policy #6 to replace service changes “needed to respond to budget

shortfalls” with “matched to funding capacity” for clarification.

3. Rewrite of the Capital Improvement Policies section as follows:

a. Change to Capital Improvement Policy #1 to replace “on annual basis” with “as

determined by the Board but not less than every two years” for preparation of the Mid-

Term Financial Plan. The capital projects criteria is deleted and replaced with #2 and #3

which state that:

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i. Capital investments should further RTD’s purpose of moving people, which is

achieved when investments are aimed at established agency metrics or key

performance indicators.

ii. The asset investment decision making process will be data driven in accordance

with the RTD Transit Asset Management (TAM) Plan.

The purpose of these changes is to indicate that the TAM is the basis for capital project

selection in the MTFP.

b. Prior Capital Improvement Policy #2 regarding basis for the capital program is deleted due

to a. above.

c. Prior Capital Improvement Policy #6 regarding facilities design is deleted due to its

irrelevance in a fiscal policy.

d. Wording clarification in Capital Improvement Policy #4 to give priority to existing,

“backlog, and deferred” assets before consideration of new assets.

e. Wording clarification in Capital Improvement Policy #7.

4. Changes to the Fund Balance Policies section as follows:

a. Wording clarification in Fund Balance Policy #1 and #2.

b. Prior Fund Balance Policy #6 regarding establishing a FasTracks construction reserve is

deleted due to its irrelevance.

5. Changes to Debt Policies section as follows:

a. Wording clarification in Debt Policy #5 and #6.

b. Update of Debt Policy #5 with the most recent rating agency credit ratings in effect.

6. Addition of new section entitled COVID-19 Response Policies as follows:

1. Guidance for Reductions:

• First consider reductions in administrative costs (overhead)

• Allowable to utilize reserves but limit use

• Allowable to utilize future FISA rubber tire service contributions

• Allowable to utilize future contributions from Credit Risk Premium (CRP) and project

savings to offset FasTracks shortfalls

• Should not utilize existing FISA balances, except for Board identified and approved

projects such as SH 119 BRT

• Do not reduce service levels below what is currently being offered

2. Guidance for Restoration:

• Restore reserves to three months if possible

• Do not utilize existing FISA balances

• Limit the use of, or do not use, future rubber tire service contributions to FISA

• Restore deferred projects related to compliance or safety

• Restore service as ridership allows

FINANCIAL IMPACT

Adopting the Fiscal Policy Statement changes as requested may have a financial impact on the 2021

Recommended Budget, the details of which are presented separately.

ATTACHMENTS:

• 2021 Fiscal Policy Statement-markup (PDF)

• 2021 Fiscal Policy Statement-Final (PDF)

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Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Jannette Scarpino, Senior Manager, Budget and Financial Analysis

Approved by:

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Fiscal Policy Statement - effective October 29November 17, 201920

1

REGIONAL TRANSPORTATION DISTRICT

20210 FISCAL POLICY STATEMENT

REVENUE POLICIES

1. The Board of Directors may consider potential fare adjustments annually at the time of the development of the Mid-Term Financial Plan. As part of this process, staff will review potential fare adjustments to establish a fare structure to ensure that it:

is understandable

is implementable

addresses equity including social and geographical

2. Fare or other revenue streams and cost savings should aim to achieve financial levels equivalent to inflationary adjustments in fare revenue established in the Mid-Term Financial Plan.

3. Fare policies will take into account the special needs of all transit dependent patrons.

4. RTD will avoid dependence on temporary revenues to fund ongoing services. One-time revenues will be used for one-time expenditures.

5. RTD will continuously explore additional sources of revenue to help balance the budget.

6. When appropriate the Board will actively pursue legislation that would help ensure the

continued accomplishment of RTD’s goals and mission statement. The Board will support efforts to ensure that legislative intent is realized in allocation of state financial resources to public transit. The Board will actively oppose legislation that would limit or diminish revenue.

7. On an annual basis, staff will identify under- or un-utilized property and equipment, and

will make an ongoing attempt to monetize such property and equipment to enhance cash flow.

8. RTD will contract with a qualified third party to provide sales and use tax forecasting containing projections for the short-term (one year by quarter), mid-term (six-year Mid-Term Financial Plan period) and long-term (30-year Long Range Financial Plan period). The purpose is to provide RTD with expert economic analysis and sales and use tax forecasts using sophisticated financial modeling techniques not available internally.

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INVESTMENT POLICIES

1. RTD financial assets are managed in accordance with the RTD Investment Policy Statement which is reviewed and approved by the RTD Board on an annual basis.

EXPENDITURE POLICIES

1. RTD will endeavor to manage expenditures to achieve service levels that will promote effectiveness through ease of use and improved travel times.

2. RTD will continue to look for and implement the most cost-effective and reliable methods

of delivering transportation services.

3. RTD will endeavor to maintain its assets at a level that protects capital investment and minimizes future maintenance and replacement costs. See Asset Management Policy RTD-AMD-PLY-0001.

4. RTD maintains a risk management program which will provide protection against loss and

mitigate exposure to liability.

5. A safety management system (SMS) program will be maintained to minimize RTD's exposure to liability and thereby reduce the number of claims against RTD. See SMS Policy RTD-SFT-PLY-0004. RTD will invest in safety outreach programs and personnel to communicate safety messages.

6. RTD will develop service changes that are needed to respond to budget shortfalls

matched to funding capacity using the system-wide and route-specific productivity measures that have been approved by the Board.

CAPITAL IMPROVEMENT POLICIES

1. On an annual basisAs determined by the Board but not less than every two years, RTD will prepare and update a six-year Mid-Term Financial Plan including projected capital construction and improvements, service levels, operating costs, and revenues to fund the capital and operating programs. Capital projects to be included in the Mid-Term Financial Plan will be evaluated using the following criteria:

total project cost (design and construction) and schedule for completion;

source of funding;

operating and maintenance costs for the remainder of the Mid-Term Financial Plan period;

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benefits and contributions to RTD and the community, including but not limited to the effect on future operating and maintenance costs, economy, service, and ridership;

consideration of alternatives (joint development, etc.); consequences of not funding; and RTD mission statement elements, Board strategic goals, and other relevant criteria.

2. Capital investments should further RTD’s purpose of moving people, which is achieved

when investments are aimed at established agency metrics or key performance indicators.

3. The asset investment decision making process will be data driven in accordance with the

RTD Transit Asset Management (TAM) Plan.

4. Priority will be given to replacement of existing, backlog, and deferred assets before consideration of new assets except as allowed for in the FasTracks Mid-Term Financial Plan and/or Long Range Financial Plan (see #7 below).

2. RTD will use the first year capital program from the adopted Mid-Term Financial Plan as

the basis for the capital program to be included in the annual budget.

5. After completion of design of a capital project, cost estimates will be revised. If the cost estimates exceed Delegation of Authority limits, the project will be brought to the Board for reconsideration.

6. Facilities will be designed using current technology and allow for future technological

changes in order to be efficient and cost-effective and to protect the public welfare.

6. RTD shall allow for multi-year capital projects to be carried forward in accordance with the carry-forward resolution adopted by the Board.

7. RTD will prepare an annual update of the Mid-Term Financial Plan incorporating the

actual costs incurred and the most recent available projections of capital improvement costs, service levels, and operating costs and revenues. to fund the FasTracks capital and operating programs.

FUND BALANCE POLICIES

1. RTD will strive to maintain a fund balance in the Base System and FasTracks to provide for unanticipated expenditures of a nonrecurring nature, to meet unexpected increases in costs or to mitigate service disruptions as a result of economic downturns affecting revenue. The Base System should strive to maintain a total fund balance at an amount approximately equal to three months of Base System operating expenses excluding depreciation among the following three reserve funds: the Board-appropriated fund, the unrestricted operating reserve, and the remaining unrestricted fund balance. For FasTracks, the total of the Board-appropriated fund and unrestricted fund balance should

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be maintained at an amount approximately equal to three months of FasTracks operating expenses excluding depreciation. RTD will consider and pursue resources that will be directed to fund balance replenishment. For example, non-recurring revenues and budget surpluses are an especially appropriate source for replenishing fund balance.

RTD will replenish fund balances as soon as economically practical. conditions allow.

2. In accordance with the adopted budget, RTD will designate a Board-appropriated fund balance on an annual basis. Use of the fund balance will be minimized and occur only in specific circumstances such as economic downturns. With Board approval, these funds may be used to avoid cash flow interruptions, reduce the need for short-term borrowing, and assist in maintaining an investment-grade bond rating., and for other specific purposes. The source of replenishment of this fund will be identified and replenishment will take place in a prompt manner.

3. In accordance with the adopted budget, RTD will designate a capital replacement fund

on an annual basis. With Board approval, these funds will be used for scheduled major vehicle replacements and other capital purchases. The source of replenishment of this fund will be identified and replenishment will take place in a prompt manner.

4. In accordance with the adopted budget, RTD will designate an unrestricted operating

reserve on an annual basis. Use of the fund balance will be to mitigate service or project disruptions due to revenue fluctuations, unanticipated expenditures of a nonrecurring nature, or to avoid cash flow disruptions. The source of replenishment of this fund will be identified and replenishment will take place in a prompt manner.

5. RTD will maintain an emergency (TABOR) reserve equal to three percent of non-Federal

revenues, as specified by Article X, Section 20 of the Colorado Constitution.

6. The Board shall establish a reserve for future construction under the FasTracks plan:

The FasTracks Management Reserve will be appropriated at a sufficient level each year to fund adjustments to the FasTracks construction schedule, relating to logistics or cost savings opportunities that might arise after the annual budget is adopted, and will not be used to fund the (non-FasTracks) Base System capital or operating activity.

6. The FasTracks Internal Savings Account (FISA) will be used to provide funding to

complete and operate additional FasTracks projects. Expenditures from the FISA will be subject to Board approval. Funding of the FISA will be provided from the sources identified in the Board approved Risk Allocation Matrix (RAM) and other sources approved by the Board.

7. All other FasTracks funds which have not been appropriated, or otherwise designated as reserved, in the current budget year will be maintained in a reserve for future FasTracks capital and operating expenditures and will not be used to fund the (non-FasTracks) Base System expenditures.

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DEBT POLICIES

1. Debt financing will not be issued to support operating expenditures.

2. Capital projects funded through the issuance of bonds, Certificates of Participation (COPs) or other financial obligations shall be financed for a period not to exceed the lesser of the expected useful life of the asset or a maximum of 40 years.

3. Effective communication with credit rating agencies will be maintained, and a policy of full

disclosure on every financial report and official statement will be followed.

4. Before long-term debt is issued, the impact of debt service on total annual expenditures and the net revenue coverage ratio will be analyzed.

5. It is the intent of RTD to maintain a high quality investment-grade credit rating. The benefit of maintaining RTD's credit ratings at the highest reasonably attainable level in light ofconsidering current economic conditions and availability of capital funding is to receive lower interest rates and lower debt insurance premiums than would be possible with lower credit ratings. RTD’s current ratings are listed below:

Classification Senior Bonds (0.6%)

FasTracks Bonds (0.4%)

Certificates of

Participation

Standard and Poor’s

AAA AA+ AA-

Moody’s Investors Service

Aa2 Aa2 A1a3

Fitch Ratings AA AA AA-

6. RTD will maintain a minimum gross sales tax revenue bond coverage ratio for the Base System (annual non-FasTracks sales and use tax revenue to annual sales and use tax debt service for senior non-FasTracks debt) of four 4.0 times for debt backed by the 0.6% sales and use tax. RTD will maintain a minimum gross sales tax revenue bond coverage ratio for FasTracks (annual FasTracks sales and use tax revenue to annual FasTracks sales and use tax debt service) of two 2.0 times for debt backed by the 0.4% FasTracks sales and use tax.

7. RTD will maintain a minimum net revenue coverage ratio (all annual revenues remaining after operating and maintenance expenses to annual debt service requirements net of excess appropriations required for variable rate debt) of 1.2 times annual debt service.

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BUDGET POLICIES

1. RTD shall comply with all requirements of the Colorado Local Government Budget Law.

2. As part of the budget development process, the Board will review the current goals, objectives, and performance indicators for use in preparing the budget for the following year. The Board will adopt the final performance indicators before the adoption of the annual budget.

3. The Board will review the adopted fiscal policies annually or on an as-needed basis to consider any changes that may be necessary.

4. There shall be a budgetary monitoring system that charges expenditures against approved budget appropriations.

5. The budget shall be summarized for adoption purposes. The actual level of detail required for adoption shall be determined by the Board.

6. The budget shall be prepared using Generally Accepted Accounting Principles with the following exceptions:

inclusion of capital outlays and debt principal payments as expenditures

inclusion of asset sale proceeds and debt issuance proceeds

exclusion of gains and losses on disposition of property and equipment

exclusion of the non-cash portion of long-term unfunded pension accruals

7. The budget document shall be submitted to the Government Finance Officers Association annually for consideration for the Distinguished Budget Presentation Award, which evaluates the document as a communications device, financial plan, operations guide, and policy document.

8. Quarterly performance reports will be presented to the Board of Directors to assess RTD's performance on the adopted performance indicators.

9. A balanced budget in which beginning reserves plus total anticipated revenues is greater than or equal to expenditures will be prepared.

10. Budgetary procedures that postpone the funding of necessary expenditures, such as preventive maintenance or replacement of equipment, will be avoided.

11. RTD will provide conservative revenue estimates that take into consideration recent experience and reflect reasonable future growth.

12. RTD will monitor revenue sources regularly and amend the budget, as necessary, to reflect the most current information available. RTD will also change the level of expenditures, as needed, to maintain a balanced budget.

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13. RTD will project revenues for at least six years and will update the projections annually

as part of the Mid-Term Financial Plan. Each existing and potential revenue source will be re-examined annually.

14. As part of the Mid-Term Financial Plan, RTD also will prepare a six-year operating expenditure plan that includes projections of annual service growth plus allowances for operating costs of new capital assets.

15. A budget will be prepared that contains essential programs and projects needed to support the goals and objectives of RTD, responds to citizen demand, and reflects administrative evaluation of current needs.

ACCOUNTING AND FINANCIAL REPORTING POLICIES

1. The accounting system will maintain records on a basis consistent with Generally Accepted Accounting Principles for enterprise funds.

2. The accounts of RTD will be reported using the accrual basis of accounting. Revenues

will be recognized when earned and expenses will be recognized when incurred.

3. RTD will establish and maintain a high standard of accounting practices to conform with uniform financial reporting in Colorado.

4. An independent firm of certified public accountants will perform an annual financial and

grant compliance audit and will issue an opinion that will be incorporated into the Comprehensive Annual Financial Report.

5. RTD will submit the Comprehensive Annual Financial Report to the Government Finance

Officers Association for consideration for the Certificate of Excellence in Financial Reporting.

6. The accounting system will record all financial activity including investment activity.

7. Internal control policies will be developed and maintained to include procedures that

separate control of assets from accounting for those assets. 8. RTD will identify and account for all revenues, expenditures, assets and liabilities related

to the FasTracks capital and operating program separately from the Base System operations.

9. A monthly financial status report shall be submitted to the Board.

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GRANT POLICIES

1. All potential grants shall be carefully examined for matching requirements (both dollar and level-of-effort matches).

2. Intergovernmental assistance shall be used to finance only those capital improvements

that are consistent with the capital improvement plan and RTD priorities and in which operating and maintenance costs have been included in operating budget forecasts.

3. RTD will program its federal grant funds to receive federal funds based upon eligible costs

as quickly as possible and minimize the time between appropriation and drawdown.

4. RTD will use all eligible Section 5307 formula federal grant funds for capital maintenance projects to minimize the time between appropriation and drawdown of federal funds.

COVID-19 RESPONSE POLICIES

1. Guidance for Reductions:

First consider reductions in administrative costs (overhead)

Allowable to utilize reserves but limit use

Allowable to utilize future FISA rubber tire service contributions

Allowable to utilize future contributions from Credit Risk Premium (CRP) and project savings to offset FasTracks shortfalls

Should not utilize existing FISA balances, except for Board identified and approved projects such as SH 119 BRT

Do not reduce service levels below what is currently being offered

2. Guidance for Restoration:

Restore reserves to three months if possible

Do not utilize existing FISA balances

Limit the use of, or do not use, future rubber tire service contributions to FISA

Restore deferred projects related to compliance or safety

Restore service as ridership allows

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Fiscal Policy Statement - effective November 17, 2020

1

REGIONAL TRANSPORTATION DISTRICT

2021 FISCAL POLICY STATEMENT

REVENUE POLICIES

1. The Board of Directors may consider potential fare adjustments at the time of the development of the Mid-Term Financial Plan. As part of this process, staff will review potential fare adjustments to establish a fare structure to ensure that it:

is understandable

is implementable

addresses equity including social and geographical

2. Fare or other revenue streams and cost savings should aim to achieve financial levels equivalent to inflationary adjustments in fare revenue established in the Mid-Term Financial Plan.

3. Fare policies will take into account the special needs of all transit dependent patrons.

4. RTD will avoid dependence on temporary revenues to fund ongoing services. One-time revenues will be used for one-time expenditures.

5. RTD will continuously explore additional sources of revenue to help balance the budget.

6. When appropriate the Board will actively pursue legislation that would help ensure the

continued accomplishment of RTD’s goals and mission statement. The Board will support efforts to ensure that legislative intent is realized in allocation of state financial resources to public transit. The Board will actively oppose legislation that would limit or diminish revenue.

7. On an annual basis, staff will identify under- or un-utilized property and equipment and

will make an ongoing attempt to monetize such property and equipment to enhance cash flow.

8. RTD will contract with a qualified third party to provide sales and use tax forecasting containing projections for the short-term (one year by quarter), mid-term (six-year Mid-Term Financial Plan period) and long-term (30-year Long Range Financial Plan period). The purpose is to provide RTD with expert economic analysis and sales and use tax forecasts using sophisticated financial modeling techniques not available internally.

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Fiscal Policy Statement - effective November 17, 2020

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INVESTMENT POLICIES

1. RTD financial assets are managed in accordance with the RTD Investment Policy Statement which is reviewed and approved by the RTD Board on an annual basis.

EXPENDITURE POLICIES

1. RTD will endeavor to manage expenditures to achieve service levels that will promote effectiveness through ease of use and improved travel times.

2. RTD will continue to look for and implement the most cost-effective and reliable methods

of delivering transportation services.

3. RTD will endeavor to maintain its assets at a level that protects capital investment and minimizes future maintenance and replacement costs. See Asset Management Policy RTD-AMD-PLY-0001.

4. RTD maintains a risk management program which will provide protection against loss and

mitigate exposure to liability.

5. A safety management system (SMS) will be maintained to minimize RTD's exposure to liability and thereby reduce the number of claims against RTD. See SMS Policy RTD-SFT-PLY-0004.

6. RTD will develop service changes that are matched to funding capacity using the system-

wide and route-specific productivity measures that have been approved by the Board.

CAPITAL IMPROVEMENT POLICIES

1. As determined by the Board but not less than every two years, RTD will prepare and update a six-year Mid-Term Financial Plan including projected capital construction and improvements, service levels, operating costs, and revenues to fund the capital and operating programs.

2. Capital investments should further RTD’s purpose of moving people, which is achieved

when investments are aimed at established agency metrics or key performance indicators.

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3. The asset investment decision making process will be data driven in accordance with the RTD Transit Asset Management (TAM) Plan.

4. Priority will be given to replacement of existing, backlog, and deferred assets before consideration of new assets except as allowed for in the FasTracks Mid-Term Financial Plan and/or Long Range Financial Plan.

5. After completion of design of a capital project, cost estimates will be revised. If the cost estimates exceed Delegation of Authority limits, the project will be brought to the Board for reconsideration.

6. RTD shall allow for multi-year capital projects to be carried forward in accordance with

the carry-forward resolution adopted by the Board.

7. RTD will prepare an annual update of the Mid-Term Financial Plan incorporating the actual costs incurred and the most recent available projections of capital improvement costs, service levels, and operating costs and revenues.

FUND BALANCE POLICIES

1. RTD will strive to maintain a fund balance in the Base System and FasTracks to provide for unanticipated expenditures of a nonrecurring nature, to meet unexpected increases in costs or to mitigate service disruptions as a result of economic downturns affecting revenue. The Base System should strive to maintain a total fund balance at an amount approximately equal to three months of Base System operating expenses excluding depreciation among the following three reserve funds: the Board-appropriated fund, the unrestricted operating reserve, and the remaining unrestricted fund balance. For FasTracks, the total of the Board-appropriated fund and unrestricted fund balance should be maintained at an amount approximately equal to three months of FasTracks operating expenses excluding depreciation. RTD will consider and pursue resources that will be directed to fund balance replenishment. For example, non-recurring revenues and budget surpluses are an especially appropriate source for replenishing fund balance.

RTD will replenish fund balances as soon as economically practical.

2. In accordance with the adopted budget, RTD will designate a Board-appropriated fund balance on an annual basis. Use of the fund balance will be minimized and occur only in specific circumstances such as economic downturns. With Board approval, these funds may be used to avoid cash flow interruptions, reduce the need for short-term borrowing, assist in maintaining an investment-grade bond rating, and for other specific purposes. The source of replenishment of this fund will be identified and replenishment will take place in a prompt manner.

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3. In accordance with the adopted budget, RTD will designate a capital replacement fund

on an annual basis. With Board approval, these funds will be used for scheduled major vehicle replacements and other capital purchases. The source of replenishment of this fund will be identified and replenishment will take place in a prompt manner.

4. In accordance with the adopted budget, RTD will designate an unrestricted operating

reserve on an annual basis. Use of the fund balance will be to mitigate service or project disruptions due to revenue fluctuations, unanticipated expenditures of a nonrecurring nature, or to avoid cash flow disruptions. The source of replenishment of this fund will be identified and replenishment will take place in a prompt manner.

5. RTD will maintain an emergency (TABOR) reserve equal to three percent of non-Federal

revenues, as specified by Article X, Section 20 of the Colorado Constitution.

6. The FasTracks Internal Savings Account (FISA) will be used to provide funding to complete and operate additional FasTracks projects. Expenditures from the FISA will be subject to Board approval. Funding of the FISA will be provided from the sources identified in the Board approved Risk Allocation Matrix (RAM) and other sources approved by the Board.

7. All other FasTracks funds which have not been appropriated, or otherwise designated as reserved, in the current budget year will be maintained in a reserve for future FasTracks capital and operating expenditures and will not be used to fund the (non-FasTracks) Base System expenditures.

DEBT POLICIES

1. Debt financing will not be issued to support operating expenditures.

2. Capital projects funded through the issuance of bonds, Certificates of Participation (COPs) or other financial obligations shall be financed for a period not to exceed the lesser of the expected useful life of the asset or a maximum of 40 years.

3. Effective communication with credit rating agencies will be maintained, and a policy of full

disclosure on every financial report and official statement will be followed.

4. Before long-term debt is issued, the impact of debt service on total annual expenditures and the net revenue coverage ratio will be analyzed.

5. It is the intent of RTD to maintain a high quality investment-grade credit rating. The benefit of maintaining RTD's credit ratings at the highest reasonably attainable level considering current economic conditions and availability of capital funding is to receive lower interest rates and lower debt insurance premiums than would be possible with lower credit ratings. RTD’s current ratings are listed below:

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Classification Senior Bonds (0.6%)

FasTracks Bonds (0.4%)

Certificates of

Participation

Standard and Poor’s

AAA AA+ AA-

Moody’s Investors Service

Aa2 Aa2 A1

Fitch Ratings AA AA AA-

6. RTD will maintain a minimum gross sales tax revenue bond coverage ratio for the Base System (annual non-FasTracks sales and use tax revenue to annual sales and use tax debt service for senior non-FasTracks debt) of 4.0 times for debt backed by the 0.6% sales and use tax. RTD will maintain a minimum gross sales tax revenue bond coverage ratio for FasTracks (annual FasTracks sales and use tax revenue to annual FasTracks sales and use tax debt service) of 2.0 times for debt backed by the 0.4% FasTracks sales and use tax.

7. RTD will maintain a minimum net revenue coverage ratio (all annual revenues remaining after operating and maintenance expenses to annual debt service requirements net of excess appropriations required for variable rate debt) of 1.2 times annual debt service.

BUDGET POLICIES

1. RTD shall comply with all requirements of the Colorado Local Government Budget Law.

2. As part of the budget development process, the Board will review the current goals, objectives, and performance indicators for use in preparing the budget for the following year. The Board will adopt the final performance indicators before the adoption of the annual budget.

3. The Board will review the adopted fiscal policies annually or on an as-needed basis to consider any changes that may be necessary.

4. There shall be a budgetary monitoring system that charges expenditures against approved budget appropriations.

5. The budget shall be summarized for adoption purposes. The actual level of detail required for adoption shall be determined by the Board.

6. The budget shall be prepared using Generally Accepted Accounting Principles with the following exceptions:

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inclusion of capital outlays and debt principal payments as expenditures

inclusion of asset sale proceeds and debt issuance proceeds

exclusion of gains and losses on disposition of property and equipment

exclusion of the non-cash portion of long-term unfunded pension accruals

7. The budget document shall be submitted to the Government Finance Officers Association annually for consideration for the Distinguished Budget Presentation Award, which evaluates the document as a communications device, financial plan, operations guide, and policy document.

8. Quarterly performance reports will be presented to the Board of Directors to assess RTD's performance on the adopted performance indicators.

9. A balanced budget in which beginning reserves plus total anticipated revenues is greater than or equal to expenditures will be prepared.

10. Budgetary procedures that postpone the funding of necessary expenditures, such as preventive maintenance or replacement of equipment, will be avoided.

11. RTD will provide conservative revenue estimates that take into consideration recent experience and reflect reasonable future growth.

12. RTD will monitor revenue sources regularly and amend the budget, as necessary, to reflect the most current information available. RTD will also change the level of expenditures, as needed, to maintain a balanced budget.

13. RTD will project revenues for at least six years and will update the projections annually as part of the Mid-Term Financial Plan. Each existing and potential revenue source will be re-examined annually.

14. As part of the Mid-Term Financial Plan, RTD also will prepare a six-year operating expenditure plan that includes projections of annual service growth plus allowances for operating costs of new capital assets.

15. A budget will be prepared that contains essential programs and projects needed to support the goals and objectives of RTD, responds to citizen demand, and reflects administrative evaluation of current needs.

ACCOUNTING AND FINANCIAL REPORTING POLICIES

1. The accounting system will maintain records on a basis consistent with Generally Accepted Accounting Principles for enterprise funds.

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2. The accounts of RTD will be reported using the accrual basis of accounting. Revenues will be recognized when earned and expenses will be recognized when incurred.

3. RTD will establish and maintain a high standard of accounting practices to conform with

uniform financial reporting in Colorado.

4. An independent firm of certified public accountants will perform an annual financial and grant compliance audit and will issue an opinion that will be incorporated into the Comprehensive Annual Financial Report.

5. RTD will submit the Comprehensive Annual Financial Report to the Government Finance

Officers Association for consideration for the Certificate of Excellence in Financial Reporting.

6. The accounting system will record all financial activity including investment activity.

7. Internal control policies will be developed and maintained to include procedures that

separate control of assets from accounting for those assets. 8. RTD will identify and account for all revenues, expenditures, assets and liabilities related

to the FasTracks capital and operating program separately from the Base System operations.

9. A monthly financial status report shall be submitted to the Board.

GRANT POLICIES

1. All potential grants shall be carefully examined for matching requirements (both dollar and level-of-effort matches).

2. Intergovernmental assistance shall be used to finance only those capital improvements

that are consistent with the capital improvement plan and RTD priorities and in which operating and maintenance costs have been included in operating budget forecasts.

3. RTD will program its federal grant funds to receive federal funds based upon eligible costs

as quickly as possible and minimize the time between appropriation and drawdown.

4. RTD will use all eligible Section 5307 formula federal grant funds for capital maintenance projects to minimize the time between appropriation and drawdown of federal funds.

COVID-19 RESPONSE POLICIES

1. Guidance for Reductions:

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First consider reductions in administrative costs (overhead)

Allowable to utilize reserves but limit use

Allowable to utilize future FISA rubber tire service contributions

Allowable to utilize future contributions from Credit Risk Premium (CRP) and project savings to offset FasTracks shortfalls

Should not utilize existing FISA balances, except for Board identified and approved projects such as SH 119 BRT

Do not reduce service levels below what is currently being offered

2. Guidance for Restoration:

Restore reserves to three months if possible

Do not utilize existing FISA balances

Limit the use of, or do not use, future rubber tire service contributions to FISA

Restore deferred projects related to compliance or safety

Restore service as ridership allows

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 5, 2020

From:

Doug MacLeod, Controller

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Adoption of the Investment Policy

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the Board of Directors

adopt the attached Investment Policy which contains recommended changes to reflect a change in

ownership of the indices used to benchmark return and risk of the district’s investments.

This recommended action supports the following General Manager’s Goals:

Mission-Oriented Goal #3: Strong Financial Management

BACKGROUND

The Policy specifies the practices and procedures that pertain to the investment of RTD’s operating and

reserve funds. The Board last approved modifications to the Policy in November 2019. Section 10 of

the Policy states “The CFO shall conduct a review of the Policy on an annual basis and present the

policy, denoting any changes, to the Board of Directors for approval.”

DISCUSSION

Staff solicited the expertise, knowledge and recommendations of the district’s investment advisor, Public

Trust Advisors, in reviewing the current Investment Policy. Recommended changes are in response to a

change in ownership of the indices used to benchmark return and risk of the district’s investments.

The purpose of the Investment Policy (the “Policy”) of the Regional Transportation District ("RTD") is to

specify the policies and procedures that support a prudent and systematic program for investments in

RTD’s operating and reserve funds. The Policy also provides for the investment of bond proceeds that

are authorized through bond resolutions or indentures of trust.

By following best practices with respect to the management of public funds, the primary objectives of

RTD’s Investment Policy in order of priority are: 1) safety of principal, 2) sufficient liquidity to meet

known cash flow requirements, and 3) yield (achieving a market rate of return). Although RTD must

legally follow the investment parameters dictated by Colorado Revised Statutes (C.R.S. 24-75-601.1) it

has previously made a policy decision to implement its investment program in a more conservative

manner than is dictated by state statute through imposing stricter diversification requirements.

A redlined copy of the recommended policy is attached which highlights the recommended changes from

the current investment policy.

ATTACHMENTS:

• Recommended Investment Policy - REDLINE (DOC)

• Recommended Investment Policy - For Signature (DOC)

Prepared by:

1.B.2

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Heather McKillop, CFO/AGM, Finance & Administration

Brenden Morgan, Senior Manager, Debt & Investments

Approved by:

1.B.2

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Investment Policy Statement

1.B.2.a

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Table of Contents

Section Page

1. Purpose ............................................................................1

2. Scope ...............................................................................1

3. Objectives ........................................................................1

4. Standards of Care ............................................................2

5. Authorized Investments ...................................................3

6. Investment Parameters ....................................................7

7. Safekeeping and Custody ................................................8

8. Reporting Requirements ..................................................8

9. Performance Standards ....................................................8

10. Investment Policy Review ...............................................9

11. RTD Investment Policy Summary ................................10

12. Investment Policy Review & Approval .........................11

Appendix

Appendix 1- Authorized Personnel ...........................................12

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Regional Transportation District

Investment Policy Statement

1. PURPOSE

The purpose of this document is to specify the policies and procedures that support a prudent and

systematic program for investment transactions involving operating and reserve funds of the

Regional Transportation District ("RTD").

2. SCOPE

This investment policy ("Policy") applies to investment of all operating and reserve funds of the

RTD (collectively, the “Portfolio").

This Policy shall not restrict the ability of RTD to invest proceeds from the issuance of RTD

securities in financial obligations permitted through board-approved bond resolutions or

indentures of trust pursuant to which the securities were issued. The standards of care dictated

for investments of other RTD funds shall also pertain to the investment of such proceeds.

3. OBJECTIVES

The objectives, in priority order, of the RTD's investment activities shall be:

3.1 Safety

Safety of principal is the foremost objective of the investment program. Investments of RTD

will be made in a manner that seeks to ensure the preservation of capital in the Portfolio. To

attain this objective, RTD will endeavor to mitigate credit and interest rate risks.

Credit Risk: RTD will minimize credit risk, which is the risk of loss due to the failure of the

security issuer or backer, by:

• Limiting investments to the types of securities listed in the Authorized Investments

section of this Policy.

• Diversifying the Portfolio in accordance with Policy limits in order to minimize the

potential for losses from any one type of security or any one individual issuer.

Interest Rate Risk: RTD will minimize interest rate risk, which is the risk that the market

value of securities in the Portfolio will fall due to changes in market interest rates, by:

• Maintaining Portfolio duration appropriate to the cash flow requirements of RTD,

thereby reducing the likelihood that securities would need to be sold on the open

market prior to maturity.

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3.2 Liquidity

The Portfolio will remain sufficiently liquid to enable RTD to meet all cash flow requirements

which might be reasonably anticipated. This will be achieved through maturity diversification

and purchases of securities that have an established secondary market.

3.3 Yield

The Portfolio shall be designed with the objective of attaining a market rate of return throughout

budgetary and economic cycles, taking into account the investment risk constraints, liquidity

needs, and cash flow characteristics of the Portfolio.

4. STANDARDS OF CARE

4.1 Prudence

All RTD officers and employees involved in the investment of RTD funds, along with any

external investment advisors, shall adhere to the guidance provided by the “prudent investor”

standard to insure that:

“When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing

public funds, a trustee shall act with care, skill, prudence, and diligence under the

circumstances then prevailing, including, but not limited to, the general economic

conditions and the anticipated needs of the agency, that a prudent person acting in a like

capacity and familiar with those matters would use in the conduct of funds of a like

character and with like aims, to safeguard the principal and maintain the liquidity needs

of the agency. Within the limitations of this section and considering individual

investments as part of an overall strategy, investments may be acquired as authorized by

law."

RTD shall recognize that no investment is totally riskless and that the investment activities of

RTD are a matter of public record. Accordingly, it recognizes that occasional measured losses

are inevitable in a diversified portfolio and shall be considered within the context of the overall

Portfolio’s return, provided that adequate diversification has been implemented, and that the sale

of a security is in the best long-term interest of RTD.

Authorized investment personnel acting in accordance with this Policy and exercising due

diligence shall be relieved of personal responsibility for an individual security’s credit risk or

market price changes, provided that deviations from expectation are reported in a timely fashion

and appropriate action is taken to control adverse developments.

4.2 Delegation of Authority

RTD is granted legislative authority to invest its funds pursuant to Colorado Revised Statutes,

Section 32-9-119. Management responsibility for the investment program is hereby delegated to

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the General Manager and his designees. The General Manager’s designee will hereinafter be

referred to as the Chief Financial Officer (“CFO”).

RTD may, in its discretion, contract with one or more investment advisers, registered with the

Securities and Exchange Commission under the Investment Advisers Act of 1940, to manage a

portion of its Portfolio assets. Any such advisor shall comply with this Policy and such other

written instructions as provided by RTD.

While it is understood that the procedures and trading counterparties of a contracted investment

adviser may differ from those of RTD, contracted investment advisers must maintain internal

controls and compliance systems at least as extensive as those of the RTD in order to assure

adequate protection of RTD assets in keeping with the standards of prudence outlined below.

4.3 Investment Procedures

The CFO shall establish written procedures for the operation of the investment program,

consistent with this Policy, which shall include explicit delegation of authority to persons

responsible for investment transactions. No person may engage in an investment transaction

except as provided under the terms of this Policy and the internal procedures established by the

CFO. Persons who are authorized to transact investment business and wire funds on behalf of

RTD are listed in Appendix 1 to this policy.

4.4 Internal Controls

The CFO shall establish a system of internal controls, which shall be reviewed annually. The

controls shall be designed to prevent loss of funds due to fraud, employee error,

misrepresentation by third parties, or imprudent actions by employees of RTD.

4.5 Ethics and Conflicts of Interest

Investment activities shall be performed in accordance with RTD’s Code of Ethics and other

policies of RTD. Officers and employees involved in the investment process shall refrain from

personal business activity that could conflict with the proper execution of the investment

program, or which could impair their ability to make impartial investment decisions. Employees

and investment officials shall disclose to the General Manager any material financial interests in

financial institutions that conduct business with RTD, and they shall further disclose any large

personal/financial/investment positions that could be related to the performance of the Portfolio.

Employees and officers shall subordinate their personal investment transactions to those of RTD

particularly with regard to the timing of purchases or sales.

5. AUTHORIZED INVESTMENTS

Authorized investments for RTD funds are specifically listed below. RTD recognizes that

investment risk can result from issuer defaults, market price changes or various technical

impediments leading to diminished liquidity or loss of capital. Portfolio risk management and

diversification are employed as a way to minimize the risks inherent in investing.

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Credit Criteria: Credit criteria listed in this section refer to the credit rating at the time the

security is purchased. Rating categories defined by nationally recognized statistical rating

organizations (“NRSROs”) include intermediate rating categories. For example, the second

highest rating category (“AA”) includes bonds rated AA+, AA and AA- for Standard & Poor's

and Fitch, and Aa1, Aa2 and Aa3 for Moody's Investors Service. In the event that an issuer or

security is downgraded below the minimum rating level for any specific security that is held in

the Portfolio, the CFO will review the exposure of that security holding and will determine if it is

advisable to sell such holding.

Maturity Restrictions: Maturity restrictions shall be calculated from settlement date to maturity

date. Portfolio percentage restrictions by security type and issuer are applicable only on the date

of purchase of the investment.

Sector Diversification: The Portfolio will be limited to an aggregate exposure of 50% for the

following investment types: Municipal Bonds, Corporate Bonds, Commercial Paper, Time

Deposits/Time Certificates of Deposit and Banker's Acceptances.

1. U.S. Treasury Obligations. Obligations in the form of bills, notes, bonds or certificates

of indebtedness backed by the full faith and credit of the United States of America.

100% of the Portfolio may be invested in U.S. Treasury Obligations. The maximum

maturity for investments in U.S. Treasury Obligations shall be limited to five years.

2. Federal Agency and Instrumentality Securities: Obligations, participations or other

instruments of any Federal agency, instrumentality or United States government-

sponsored enterprise as described in CRS 24-75-601.1(1)(b) (an “Agency” or

“Agencies”). Such securities shall be rated in one of the two highest rating categories (as

described above in the Credit Criteria section) by at least two NRSROs. No more than

75% of the Portfolio may be invested in Federal Agency and Instrumentality Securities,

with no more than 25% being invested in a single issuer. Subordinate debt of any issuer

is not authorized. The maximum maturity for investments in Federal Agency and

Instrumentality Securities shall be limited to five years.

Authorized Securities include, but may not be limited to:

• Federal Home Loan Bank

• Federal Home Loan Mortgage Corporation

• Federal National Mortgage Association

• Federal Farm Credit Bank

• International Bank for Reconstruction and Development (World Bank)

3. Municipal Bonds. General Obligation Bonds and Revenue Obligation Bonds of state or

local governments. Such obligations of Colorado (or any political subdivision, institution,

department, agency, instrumentality, or authority of the state) shall be rated in one of the

three highest rating categories (as described in the Credit Criteria section) by at least two

NRSROs. Such obligations of any other governmental entity shall be rated in one of the

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two highest rating categories (as described in the Credit Criteria section) by at least two

NRSROs.

For short term or variable rate instruments ("Short Term Municipal Bonds"), the

securities must be rated at least “A-1”, “MIG 1”, or the equivalent, by a NRSRO.

Pre-Refunded Municipal Bonds which are secured by an escrow of U.S. Treasury

securities or State and Local Government Series securities, shall be rated in one of the

two highest rating categories (as described in the Credit Criteria section) by a NRSRO.

No more than 40% of the Portfolio may be invested in Pre-Refunded Municipal Bonds

and no more than 5% may be invested with a single issuer.

With the exception of Pre-Refunded Municipal Bonds described above, no more than

20% of the Portfolio may be invested in Municipal Bonds with no more than 3% of the

Portfolio invested with a single issuer. The maximum maturity for investments in

Municipal Bonds shall be limited to five years.

4. Corporate or Bank Securities. Debt denominated in United States Dollars, issued by

corporations or financial institutions organized and operating in the United States.

Eligible corporate or bank securities (such as negotiable certificates of deposit) shall be

rated in one of the two highest categories (as described in the Credit Criteria section) by

at least two NRSROs. These ratings requirements first apply to the security being

purchased and second, if the security itself is unrated, to the issuer provided the security

contains no provisions subordinating it from being a senior debt obligation of the issuer.

No more than 20% of the Portfolio may be invested in corporate and bank securities and

no more than 3% may be invested with a single corporation or bank; notwithstanding the

book value limits of 24-75-601.1(1)(m). The maximum maturity for investments in

corporate and bank securities shall be limited to three years.

5. Commercial paper. Commercial paper issued by a corporation or bank that is organized

and operated within the United States. Investments in commercial paper must carry at

least two credit ratings from any NRSRO and both must be at least “A-1”, “P1” or “F1”.

Investments in commercial paper may not exceed 40% of the Portfolio and no more than

3% may be invested with a single issuer. The maximum maturity for investments in

commercial paper is 270 days.

6. FDIC Insured Certificates of Deposit (CDs). FDIC Insured Certificates of Deposit

(CDs ) issued by a nationally or state-chartered bank or a state or federal savings and loan

association or by a state-licensed branch of a foreign bank. Eligible certificates of

deposit shall be rated in one of the two highest categories (as described in the Credit

Criteria section) by a NRSRO. CDs shall be exempted from rating requirements if the

CDs are fully insured by the Federal Deposit Insurance Corporation (FDIC).

For CDs in amounts in excess of the FDIC limit, the CD amount must be collateralized in

accordance with the Public Deposit Protection Act. No more than 10% of the Portfolio

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may be invested in securities described in this investment category. No more than 3% of

the Portfolio may be invested in CDs of a single institution. The maximum maturity for

investments in FDIC Insured CDs shall be limited to one year.

7. Bankers’ Acceptances (BAs). Bills of exchange or time drafts that are drawn on and

accepted by a commercial bank. Eligible BAs shall be rated in one of the two highest

categories (as described in the Credit Criteria section) by at least two NRSROs. No more

than 20% of the Portfolio may be invested in BAs and no more than 3% may be invested

with a single institution. The maximum maturity for investments in BAs shall be limited

to one year.

8. Repurchase Agreements. Repurchase Agreements concerning U.S. Treasury and agency

securities listed in items (1) or (2) above. Repurchase agreement counterparties must be

Primary Government Securities Dealers reporting to the Federal Reserve Bank of New

York and shall have either a) a long term rating in one of the two highest categories by a

NRSRO (as described in the Credit Criteria section), or b) short term ratings not less than

“A1”, “P1” or “F1” by any NRSRO.

The market value of collateral securities shall be marked-to-market daily. RTD shall have

specific written agreements with each firm with which it enters into repurchase

agreements.

No more than 50% of the Portfolio may be invested in repurchase agreements and no

more than 10% may be invested with a single counterparty. The maximum maturity for a

repurchase agreement shall be limited to 90 days.

9. Money Market Funds. Shares of beneficial interest issued by diversified management

companies that are treasury or government money market funds registered with the

Securities and Exchange Commission under the Investment Company Act of 1940, and

meeting the maturity requirements specified in rule 2a-7 of that Act. To be eligible for

investment, these companies shall have either: (i) attained the highest ranking or the

highest letter and numerical rating provided by one or more NRSROs or (ii) assets under

management of one billion dollars or more ($1,000,000,000). The investment policies of

any such fund shall include seeking to maintain a stable $1 net asset value. Additionally,

the purchase price of shares of beneficial interest shall not include any commission that

these companies may charge. A maximum of 100% of the Portfolio may be invested in

treasury or government money market funds with a single fund constituting no more than

50% of the Portfolio.

10. Local Government Investment Pools. Any interest in a local government investment

pool organized under CRS 24-75-701 et. seq. To be eligible for investment, a local

government investment pool shall have the highest ranking or the highest letter and

numerical rating provided by one or more NRSROs. A maximum of 100% of the

Portfolio may be invested in local government investment pools with a single pool

constituting no more than 50% of the Portfolio.

1.B.2.a

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6. INVESTMENT PARAMETERS

6.1 Sale of Securities

RTD does not make investments for the purpose of trading or speculation, but, rather, with the

prevalent intent to hold securities to maturity. The prohibition of speculative investment

precludes pursuit of profit through unusual risk or conjectural fluctuations in market prices.

However, fluctuations in market rates or changes in credit quality may produce situations where

securities may be sold at a nominal loss in order to mitigate further erosion of principal or to

reinvest proceeds of sale in securities that will out-perform the original investment.

6.2 Competitive Bidding

RTD shall obtain competitive bid or offer information on all purchases or sales of investment

instruments on the secondary market. A competitive bid or offer can be executed through a

bidding process involving at least three separate brokers/financial institutions. If RTD is offered

a security for which there is no readily available competitive offering on the same specific issue,

the investment officer may document quotations for comparable or alternative securities. When

purchasing original/new issue securities, no competitive offerings will be required as all dealers

in the selling group offer those securities at the same original issue price.

6.3 Portfolio Duration

The maturity of the securities in the Portfolio shall be managed with respect to the cash flow

needs of RTD and the Portfolio shall be managed to maintain a duration of three years or less.

6.4 Authorized Financial Dealers and Institutions

RTD or an investment advisor hired by RTD will maintain a list of financial institutions

authorized to provide investment services and it shall be the policy of RTD to purchase securities

only from those authorized institutions and firms. Trading counterparties shall be limited to (i)

primary dealers reporting to the Federal Reserve Bank of New York, or (ii) broker/dealers that

qualify under Securities and Exchange Commission Rule 15c3-1 (uniform net capital rule).

6.5 Authorized Investment Advisors

RTD may engage the services of one or more professional investment advisory firms to assist in

the management of the Portfolio. Such investment advisors may be granted discretion to

purchase and sell investment securities in accordance with this Policy and may utilize their own

approved list of broker/dealers. Such firms must be authorized to conduct business in the State

of Colorado and shall be registered with the Securities and Exchange Commission under the

Investment Advisers Act of 1940.

1.B.2.a

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7. SAFEKEEPING AND CUSTODY

7.1 Safekeeping and custody

With the exception of collateral under repurchase agreements (discussed below), all investment

securities purchased shall be held in a safekeeping account or trust custody account at a

designated third party custodian. For safekeeping accounts, the institution shall issue a

safekeeping receipt for each security, listing the specific instrument, par value, rate, CUSIP and

any other pertinent information. In addition, the safekeeping or trust custody institutions shall

provide a statement on at least a monthly basis listing all securities held in account, including

book value and market value of holdings at month-end.

For collateral (purchased securities) under repurchase agreements, RTD may utilize tri-party

repurchase agreements with an acceptable third-party custodian provided that RTD is satisfied

that it has perfected interest in the securities used as collateral, and that RTD has a properly

executed tri-party agreement.

7.2 Delivery vs. Payment

All investment transactions will be executed on a delivery versus payment basis.

8. REPORTING REQUIREMENTS

Investment reports shall be prepared on a monthly, quarterly and annual basis. Transaction

summaries shall be maintained and available in the office of the CFO or other authorized

investment personnel. Quarterly investment reports shall be submitted to the Board of Directors

and shall outline RTD’s total investment return and compare the Portfolio’s performance to a

publicly available index of securities having similar quality and duration characteristics.

Within 120 days of the end of RTD’s fiscal year, a comprehensive report on RTD’s investment

program and investment activity shall be prepared for the Board of Directors. The annual report

shall include quarterly comparisons of investment return and may suggest improvements that

might be made in the investment program. Such annual report shall include any other item of

significance which may enhance the understanding of the investment program. Each investment

advisor shall submit like reports in a timely manner based on the respective terms of each

contract and agreement

All securities holdings reports for RTD shall disclose the maximum maturity liability to RTD

(the stated maturity) as well as the first call date of each callable security held.

9. PERFORMANCE STANDARDS

RTD's Portfolio is managed with the objective of obtaining a market rate of return,

commensurate with identified risk constraints and cash flow characteristics. Because the

composition of the Portfolio fluctuates, depending on market and credit conditions, various

indices may be used to monitor investment performance.

1.B.2.a

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The current board-approved index for the liquidity tier of the Portfolio (cash and cash

equivalents) is the ICE BofAML 3-month U.S. Treasury Bill Index. as published by Bank of

America Merrill Lynch. For the enhanced cash portion of the Portfolio (securities maturing

between 90 days and 5 years and with a target duration of 1 year), the designated performance

benchmark is the Merrill LynchICE BofAML 1-year U.S. Treasury Note Index.

RTD recognizes that bond proceeds must be invested in accordance with Section 1.148 of the

U.S. Internal Revenue Code, related to arbitrage rebate, which limits the investment returns

which may be achieved or retained by RTD on such proceeds investments. For purposes of this

Policy “bond proceeds” shall mean proceeds from the issuance of bonds, certificates of

participation or other financial securities issued by RTD.

10. INVESTMENT POLICY REVIEW AND APPROVAL

The CFO shall conduct a review of the Policy on an annual basis and present the Policy,

denoting any changes, to the Board of Directors for approval.

1.B.2.a

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11. RTD AUTHORIZED INVESTMENT SUMMARY

THIS PAGE IS PROVIDED FOR SUMMARY PURPOSES ONLY. FOR A DETAILED

DESCRIPTION PLEASE SEE AUTHORIZED INVESTMENTS.

Security Type Maximum

Portfolio %

Maximum

Issuer %

Maturity

Restrictions

Rating

Restrictions

U.S. Treasuries 100% 100% 5 years N/A

Federal Agencies and

Instrumentalities 75% 25% 5 years AA

Municipal Bonds,

of a Colorado Issuer 20%* 3%* 5 years A

Municipal Bonds,

of a non-Colorado Issuer 20%* 3%* 5 years AA

Municipal Bonds,

Short Term 20%* 3%* 5 years

“A-1” or

“MIG 1”

Municipal Bonds,

Pre-Refunded 40% 5% 5 years AA

Corporate or Bank

Securities 20% 3% 3 years AA

Commercial Paper 40% 3% 270 days “A-1/P1/F1”

FDIC Insured CDs 10% 3% 1 year AA

Bankers Acceptances 20% 3% 1 year AA

Repurchase Agreements 50% 10% 90 days AA

Money Market Funds 100% 50% N/A AAAm

Local Government

Investment Pools 100% 50% N/A AAAm/AAAf

* The aggregate exposure to such bonds may not exceed 20% of the Portfolio and no more than

3% of the portfolio may be invested with a single issuer.

1.B.2.a

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12. INVESTMENT POLICY APPROVAL AND ADOPTION

Approved

Chief Financial Officer Date

Adopted

Board of Directors

Chair Date

Secretary Date

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Regional Transportation District (“RTD”)

Investment Policy Statement

Appendix 1

Authorized Personnel

The following persons are authorized to transact investment business on behalf of the Regional

Transportation District (“RTD”):

General Manager

Chief Financial Officer

Sr. Manager of Debt and Investments

Controller

Sr. Manager of Budget and Financial Analysis

1.B.2.a

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Investment Policy Statement

1.B.2.b

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Table of Contents

Section Page

1. Purpose ............................................................................1

2. Scope ...............................................................................1

3. Objectives ........................................................................1

4. Standards of Care ............................................................2

5. Authorized Investments ...................................................3

6. Investment Parameters ....................................................7

7. Safekeeping and Custody ................................................8

8. Reporting Requirements ..................................................8

9. Performance Standards ....................................................8

10. Investment Policy Review ...............................................9

11. RTD Investment Policy Summary ................................10

12. Investment Policy Review & Approval .........................11

Appendix

Appendix 1- Authorized Personnel ...........................................12

1.B.2.b

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Regional Transportation District

Investment Policy Statement

1. PURPOSE

The purpose of this document is to specify the policies and procedures that support a prudent and

systematic program for investment transactions involving operating and reserve funds of the

Regional Transportation District ("RTD").

2. SCOPE

This investment policy ("Policy") applies to investment of all operating and reserve funds of the

RTD (collectively, the “Portfolio").

This Policy shall not restrict the ability of RTD to invest proceeds from the issuance of RTD

securities in financial obligations permitted through board-approved bond resolutions or

indentures of trust pursuant to which the securities were issued. The standards of care dictated

for investments of other RTD funds shall also pertain to the investment of such proceeds.

3. OBJECTIVES

The objectives, in priority order, of the RTD's investment activities shall be:

3.1 Safety

Safety of principal is the foremost objective of the investment program. Investments of RTD

will be made in a manner that seeks to ensure the preservation of capital in the Portfolio. To

attain this objective, RTD will endeavor to mitigate credit and interest rate risks.

Credit Risk: RTD will minimize credit risk, which is the risk of loss due to the failure of the

security issuer or backer, by:

• Limiting investments to the types of securities listed in the Authorized Investments

section of this Policy.

• Diversifying the Portfolio in accordance with Policy limits in order to minimize the

potential for losses from any one type of security or any one individual issuer.

Interest Rate Risk: RTD will minimize interest rate risk, which is the risk that the market

value of securities in the Portfolio will fall due to changes in market interest rates, by:

• Maintaining Portfolio duration appropriate to the cash flow requirements of RTD,

thereby reducing the likelihood that securities would need to be sold on the open

market prior to maturity.

1.B.2.b

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3.2 Liquidity

The Portfolio will remain sufficiently liquid to enable RTD to meet all cash flow requirements

which might be reasonably anticipated. This will be achieved through maturity diversification

and purchases of securities that have an established secondary market.

3.3 Yield

The Portfolio shall be designed with the objective of attaining a market rate of return throughout

budgetary and economic cycles, taking into account the investment risk constraints, liquidity

needs, and cash flow characteristics of the Portfolio.

4. STANDARDS OF CARE

4.1 Prudence

All RTD officers and employees involved in the investment of RTD funds, along with any

external investment advisors, shall adhere to the guidance provided by the “prudent investor”

standard to insure that:

“When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing

public funds, a trustee shall act with care, skill, prudence, and diligence under the

circumstances then prevailing, including, but not limited to, the general economic

conditions and the anticipated needs of the agency, that a prudent person acting in a like

capacity and familiar with those matters would use in the conduct of funds of a like

character and with like aims, to safeguard the principal and maintain the liquidity needs

of the agency. Within the limitations of this section and considering individual

investments as part of an overall strategy, investments may be acquired as authorized by

law."

RTD shall recognize that no investment is totally riskless and that the investment activities of

RTD are a matter of public record. Accordingly, it recognizes that occasional measured losses

are inevitable in a diversified portfolio and shall be considered within the context of the overall

Portfolio’s return, provided that adequate diversification has been implemented, and that the sale

of a security is in the best long-term interest of RTD.

Authorized investment personnel acting in accordance with this Policy and exercising due

diligence shall be relieved of personal responsibility for an individual security’s credit risk or

market price changes, provided that deviations from expectation are reported in a timely fashion

and appropriate action is taken to control adverse developments.

4.2 Delegation of Authority

RTD is granted legislative authority to invest its funds pursuant to Colorado Revised Statutes,

Section 32-9-119. Management responsibility for the investment program is hereby delegated to

1.B.2.b

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the General Manager and his designees. The General Manager’s designee will hereinafter be

referred to as the Chief Financial Officer (“CFO”).

RTD may, in its discretion, contract with one or more investment advisers, registered with the

Securities and Exchange Commission under the Investment Advisers Act of 1940, to manage a

portion of its Portfolio assets. Any such advisor shall comply with this Policy and such other

written instructions as provided by RTD.

While it is understood that the procedures and trading counterparties of a contracted investment

adviser may differ from those of RTD, contracted investment advisers must maintain internal

controls and compliance systems at least as extensive as those of the RTD in order to assure

adequate protection of RTD assets in keeping with the standards of prudence outlined below.

4.3 Investment Procedures

The CFO shall establish written procedures for the operation of the investment program,

consistent with this Policy, which shall include explicit delegation of authority to persons

responsible for investment transactions. No person may engage in an investment transaction

except as provided under the terms of this Policy and the internal procedures established by the

CFO. Persons who are authorized to transact investment business and wire funds on behalf of

RTD are listed in Appendix 1 to this policy.

4.4 Internal Controls

The CFO shall establish a system of internal controls, which shall be reviewed annually. The

controls shall be designed to prevent loss of funds due to fraud, employee error,

misrepresentation by third parties, or imprudent actions by employees of RTD.

4.5 Ethics and Conflicts of Interest

Investment activities shall be performed in accordance with RTD’s Code of Ethics and other

policies of RTD. Officers and employees involved in the investment process shall refrain from

personal business activity that could conflict with the proper execution of the investment

program, or which could impair their ability to make impartial investment decisions. Employees

and investment officials shall disclose to the General Manager any material financial interests in

financial institutions that conduct business with RTD, and they shall further disclose any large

personal/financial/investment positions that could be related to the performance of the Portfolio.

Employees and officers shall subordinate their personal investment transactions to those of RTD

particularly with regard to the timing of purchases or sales.

5. AUTHORIZED INVESTMENTS

Authorized investments for RTD funds are specifically listed below. RTD recognizes that

investment risk can result from issuer defaults, market price changes or various technical

impediments leading to diminished liquidity or loss of capital. Portfolio risk management and

diversification are employed as a way to minimize the risks inherent in investing.

1.B.2.b

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Credit Criteria: Credit criteria listed in this section refer to the credit rating at the time the

security is purchased. Rating categories defined by nationally recognized statistical rating

organizations (“NRSROs”) include intermediate rating categories. For example, the second

highest rating category (“AA”) includes bonds rated AA+, AA and AA- for Standard & Poor's

and Fitch, and Aa1, Aa2 and Aa3 for Moody's Investors Service. In the event that an issuer or

security is downgraded below the minimum rating level for any specific security that is held in

the Portfolio, the CFO will review the exposure of that security holding and will determine if it is

advisable to sell such holding.

Maturity Restrictions: Maturity restrictions shall be calculated from settlement date to maturity

date. Portfolio percentage restrictions by security type and issuer are applicable only on the date

of purchase of the investment.

Sector Diversification: The Portfolio will be limited to an aggregate exposure of 50% for the

following investment types: Municipal Bonds, Corporate Bonds, Commercial Paper, Time

Deposits/Time Certificates of Deposit and Banker's Acceptances.

1. U.S. Treasury Obligations. Obligations in the form of bills, notes, bonds or certificates

of indebtedness backed by the full faith and credit of the United States of America.

100% of the Portfolio may be invested in U.S. Treasury Obligations. The maximum

maturity for investments in U.S. Treasury Obligations shall be limited to five years.

2. Federal Agency and Instrumentality Securities: Obligations, participations or other

instruments of any Federal agency, instrumentality or United States government-

sponsored enterprise as described in CRS 24-75-601.1(1)(b) (an “Agency” or

“Agencies”). Such securities shall be rated in one of the two highest rating categories (as

described above in the Credit Criteria section) by at least two NRSROs. No more than

75% of the Portfolio may be invested in Federal Agency and Instrumentality Securities,

with no more than 25% being invested in a single issuer. Subordinate debt of any issuer

is not authorized. The maximum maturity for investments in Federal Agency and

Instrumentality Securities shall be limited to five years.

Authorized Securities include, but may not be limited to:

• Federal Home Loan Bank

• Federal Home Loan Mortgage Corporation

• Federal National Mortgage Association

• Federal Farm Credit Bank

• International Bank for Reconstruction and Development (World Bank)

3. Municipal Bonds. General Obligation Bonds and Revenue Obligation Bonds of state or

local governments. Such obligations of Colorado (or any political subdivision, institution,

department, agency, instrumentality, or authority of the state) shall be rated in one of the

three highest rating categories (as described in the Credit Criteria section) by at least two

NRSROs. Such obligations of any other governmental entity shall be rated in one of the

1.B.2.b

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two highest rating categories (as described in the Credit Criteria section) by at least two

NRSROs.

For short term or variable rate instruments ("Short Term Municipal Bonds"), the

securities must be rated at least “A-1”, “MIG 1”, or the equivalent, by a NRSRO.

Pre-Refunded Municipal Bonds which are secured by an escrow of U.S. Treasury

securities or State and Local Government Series securities, shall be rated in one of the

two highest rating categories (as described in the Credit Criteria section) by a NRSRO.

No more than 40% of the Portfolio may be invested in Pre-Refunded Municipal Bonds

and no more than 5% may be invested with a single issuer.

With the exception of Pre-Refunded Municipal Bonds described above, no more than

20% of the Portfolio may be invested in Municipal Bonds with no more than 3% of the

Portfolio invested with a single issuer. The maximum maturity for investments in

Municipal Bonds shall be limited to five years.

4. Corporate or Bank Securities. Debt denominated in United States Dollars, issued by

corporations or financial institutions organized and operating in the United States.

Eligible corporate or bank securities (such as negotiable certificates of deposit) shall be

rated in one of the two highest categories (as described in the Credit Criteria section) by

at least two NRSROs. These ratings requirements first apply to the security being

purchased and second, if the security itself is unrated, to the issuer provided the security

contains no provisions subordinating it from being a senior debt obligation of the issuer.

No more than 20% of the Portfolio may be invested in corporate and bank securities and

no more than 3% may be invested with a single corporation or bank; notwithstanding the

book value limits of 24-75-601.1(1)(m). The maximum maturity for investments in

corporate and bank securities shall be limited to three years.

5. Commercial paper. Commercial paper issued by a corporation or bank that is organized

and operated within the United States. Investments in commercial paper must carry at

least two credit ratings from any NRSRO and both must be at least “A-1”, “P1” or “F1”.

Investments in commercial paper may not exceed 40% of the Portfolio and no more than

3% may be invested with a single issuer. The maximum maturity for investments in

commercial paper is 270 days.

6. FDIC Insured Certificates of Deposit (CDs). FDIC Insured Certificates of Deposit

(CDs ) issued by a nationally or state-chartered bank or a state or federal savings and loan

association or by a state-licensed branch of a foreign bank. Eligible certificates of

deposit shall be rated in one of the two highest categories (as described in the Credit

Criteria section) by a NRSRO. CDs shall be exempted from rating requirements if the

CDs are fully insured by the Federal Deposit Insurance Corporation (FDIC).

For CDs in amounts in excess of the FDIC limit, the CD amount must be collateralized in

accordance with the Public Deposit Protection Act. No more than 10% of the Portfolio

1.B.2.b

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may be invested in securities described in this investment category. No more than 3% of

the Portfolio may be invested in CDs of a single institution. The maximum maturity for

investments in FDIC Insured CDs shall be limited to one year.

7. Bankers’ Acceptances (BAs). Bills of exchange or time drafts that are drawn on and

accepted by a commercial bank. Eligible BAs shall be rated in one of the two highest

categories (as described in the Credit Criteria section) by at least two NRSROs. No more

than 20% of the Portfolio may be invested in BAs and no more than 3% may be invested

with a single institution. The maximum maturity for investments in BAs shall be limited

to one year.

8. Repurchase Agreements. Repurchase Agreements concerning U.S. Treasury and agency

securities listed in items (1) or (2) above. Repurchase agreement counterparties must be

Primary Government Securities Dealers reporting to the Federal Reserve Bank of New

York and shall have either a) a long term rating in one of the two highest categories by a

NRSRO (as described in the Credit Criteria section), or b) short term ratings not less than

“A1”, “P1” or “F1” by any NRSRO.

The market value of collateral securities shall be marked-to-market daily. RTD shall have

specific written agreements with each firm with which it enters into repurchase

agreements.

No more than 50% of the Portfolio may be invested in repurchase agreements and no

more than 10% may be invested with a single counterparty. The maximum maturity for a

repurchase agreement shall be limited to 90 days.

9. Money Market Funds. Shares of beneficial interest issued by diversified management

companies that are treasury or government money market funds registered with the

Securities and Exchange Commission under the Investment Company Act of 1940, and

meeting the maturity requirements specified in rule 2a-7 of that Act. To be eligible for

investment, these companies shall have either: (i) attained the highest ranking or the

highest letter and numerical rating provided by one or more NRSROs or (ii) assets under

management of one billion dollars or more ($1,000,000,000). The investment policies of

any such fund shall include seeking to maintain a stable $1 net asset value. Additionally,

the purchase price of shares of beneficial interest shall not include any commission that

these companies may charge. A maximum of 100% of the Portfolio may be invested in

treasury or government money market funds with a single fund constituting no more than

50% of the Portfolio.

10. Local Government Investment Pools. Any interest in a local government investment

pool organized under CRS 24-75-701 et. seq. To be eligible for investment, a local

government investment pool shall have the highest ranking or the highest letter and

numerical rating provided by one or more NRSROs. A maximum of 100% of the

Portfolio may be invested in local government investment pools with a single pool

constituting no more than 50% of the Portfolio.

1.B.2.b

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6. INVESTMENT PARAMETERS

6.1 Sale of Securities

RTD does not make investments for the purpose of trading or speculation, but, rather, with the

prevalent intent to hold securities to maturity. The prohibition of speculative investment

precludes pursuit of profit through unusual risk or conjectural fluctuations in market prices.

However, fluctuations in market rates or changes in credit quality may produce situations where

securities may be sold at a nominal loss in order to mitigate further erosion of principal or to

reinvest proceeds of sale in securities that will out-perform the original investment.

6.2 Competitive Bidding

RTD shall obtain competitive bid or offer information on all purchases or sales of investment

instruments on the secondary market. A competitive bid or offer can be executed through a

bidding process involving at least three separate brokers/financial institutions. If RTD is offered

a security for which there is no readily available competitive offering on the same specific issue,

the investment officer may document quotations for comparable or alternative securities. When

purchasing original/new issue securities, no competitive offerings will be required as all dealers

in the selling group offer those securities at the same original issue price.

6.3 Portfolio Duration

The maturity of the securities in the Portfolio shall be managed with respect to the cash flow

needs of RTD and the Portfolio shall be managed to maintain a duration of three years or less.

6.4 Authorized Financial Dealers and Institutions

RTD or an investment advisor hired by RTD will maintain a list of financial institutions

authorized to provide investment services and it shall be the policy of RTD to purchase securities

only from those authorized institutions and firms. Trading counterparties shall be limited to (i)

primary dealers reporting to the Federal Reserve Bank of New York, or (ii) broker/dealers that

qualify under Securities and Exchange Commission Rule 15c3-1 (uniform net capital rule).

6.5 Authorized Investment Advisors

RTD may engage the services of one or more professional investment advisory firms to assist in

the management of the Portfolio. Such investment advisors may be granted discretion to

purchase and sell investment securities in accordance with this Policy and may utilize their own

approved list of broker/dealers. Such firms must be authorized to conduct business in the State

of Colorado and shall be registered with the Securities and Exchange Commission under the

Investment Advisers Act of 1940.

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7. SAFEKEEPING AND CUSTODY

7.1 Safekeeping and custody

With the exception of collateral under repurchase agreements (discussed below), all investment

securities purchased shall be held in a safekeeping account or trust custody account at a

designated third party custodian. For safekeeping accounts, the institution shall issue a

safekeeping receipt for each security, listing the specific instrument, par value, rate, CUSIP and

any other pertinent information. In addition, the safekeeping or trust custody institutions shall

provide a statement on at least a monthly basis listing all securities held in account, including

book value and market value of holdings at month-end.

For collateral (purchased securities) under repurchase agreements, RTD may utilize tri-party

repurchase agreements with an acceptable third-party custodian provided that RTD is satisfied

that it has perfected interest in the securities used as collateral, and that RTD has a properly

executed tri-party agreement.

7.2 Delivery vs. Payment

All investment transactions will be executed on a delivery versus payment basis.

8. REPORTING REQUIREMENTS

Investment reports shall be prepared on a monthly, quarterly and annual basis. Transaction

summaries shall be maintained and available in the office of the CFO or other authorized

investment personnel. Quarterly investment reports shall be submitted to the Board of Directors

and shall outline RTD’s total investment return and compare the Portfolio’s performance to a

publicly available index of securities having similar quality and duration characteristics.

Within 120 days of the end of RTD’s fiscal year, a comprehensive report on RTD’s investment

program and investment activity shall be prepared for the Board of Directors. The annual report

shall include quarterly comparisons of investment return and may suggest improvements that

might be made in the investment program. Such annual report shall include any other item of

significance which may enhance the understanding of the investment program. Each investment

advisor shall submit like reports in a timely manner based on the respective terms of each

contract and agreement

All securities holdings reports for RTD shall disclose the maximum maturity liability to RTD

(the stated maturity) as well as the first call date of each callable security held.

9. PERFORMANCE STANDARDS

RTD's Portfolio is managed with the objective of obtaining a market rate of return,

commensurate with identified risk constraints and cash flow characteristics. Because the

composition of the Portfolio fluctuates, depending on market and credit conditions, various

indices may be used to monitor investment performance.

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The current board-approved index for the liquidity tier of the Portfolio (cash and cash

equivalents) is the ICE BofAML 3-month U.S. Treasury Bill Index. as published by Bank of

America Merrill Lynch. For the enhanced cash portion of the Portfolio (securities maturing

between 90 days and 5 years and with a target duration of 1 year), the designated performance

benchmark is the Merrill LynchICE BofAML 1-year U.S. Treasury Note Index.

RTD recognizes that bond proceeds must be invested in accordance with Section 1.148 of the

U.S. Internal Revenue Code, related to arbitrage rebate, which limits the investment returns

which may be achieved or retained by RTD on such proceeds investments. For purposes of this

Policy “bond proceeds” shall mean proceeds from the issuance of bonds, certificates of

participation or other financial securities issued by RTD.

10. INVESTMENT POLICY REVIEW AND APPROVAL

The CFO shall conduct a review of the Policy on an annual basis and present the Policy,

denoting any changes, to the Board of Directors for approval.

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11. RTD AUTHORIZED INVESTMENT SUMMARY

THIS PAGE IS PROVIDED FOR SUMMARY PURPOSES ONLY. FOR A DETAILED

DESCRIPTION PLEASE SEE AUTHORIZED INVESTMENTS.

Security Type Maximum

Portfolio %

Maximum

Issuer %

Maturity

Restrictions

Rating

Restrictions

U.S. Treasuries 100% 100% 5 years N/A

Federal Agencies and

Instrumentalities 75% 25% 5 years AA

Municipal Bonds,

of a Colorado Issuer 20%* 3%* 5 years A

Municipal Bonds,

of a non-Colorado Issuer 20%* 3%* 5 years AA

Municipal Bonds,

Short Term 20%* 3%* 5 years

“A-1” or

“MIG 1”

Municipal Bonds,

Pre-Refunded 40% 5% 5 years AA

Corporate or Bank

Securities 20% 3% 3 years AA

Commercial Paper 40% 3% 270 days “A-1/P1/F1”

FDIC Insured CDs 10% 3% 1 year AA

Bankers Acceptances 20% 3% 1 year AA

Repurchase Agreements 50% 10% 90 days AA

Money Market Funds 100% 50% N/A AAAm

Local Government

Investment Pools 100% 50% N/A AAAm/AAAf

* The aggregate exposure to such bonds may not exceed 20% of the Portfolio and no more than

3% of the portfolio may be invested with a single issuer.

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12. INVESTMENT POLICY APPROVAL AND ADOPTION

Approved

Chief Financial Officer Date

Adopted

Board of Directors

Chair Date

Secretary Date

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Regional Transportation District (“RTD”)

Investment Policy Statement

Appendix 1

Authorized Personnel

The following persons are authorized to transact investment business on behalf of the Regional

Transportation District (“RTD”):

General Manager

Chief Financial Officer

Sr. Manager of Debt and Investments

Controller

Sr. Manager of Budget and Financial Analysis

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Adoption of the 2021 & 2022 Modified Mid-

Term Financial Plan

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the RTD Board of Directors

adopts the 2021 & 2022 Modified Mid-term Financial Plan.

This recommended action supports the following General Manager’s Goals:

Mission-Oriented Goal #3: Strong Financial Management

COVID-19 Financial Goal: Identify Funding Sources

2020 Strategic Priority #6: Move RTD Toward Stable Financial Condition

BACKGROUND

The Mid-term Financial Plan is a six-year financial plan consisting of the Base System and FasTracks.

The Base System includes only service and projects funded from the Base System 0.6% sales/use tax,

and FasTracks operations activity. The FasTracks includes expense and projects (non-operational)

funded from the FasTracks 0.4% sales/use tax.

Updated annually, the Mid-term Financial Plan provides important cash flow planning information used to

determine the District’s operating, investing and financing activity as well as services that the District

can provide using projected financial resources. The first year of the Mid-term Financial Plan serves as

the basis for the preparation of the annual budget.

Each year during the planning process, operating costs are forecasted, and capital projects are developed

to support the goals and objectives of the District. Estimates of other expenditures, such as principal

and interest payments on long-term debt, are also developed as part of the overall costs to the District.

The other major component of the plans is the estimate of available revenues during the six-year time

period. These estimates of costs and revenues are brought together to insure that RTD will have

adequate resources to meet cash flow needs.

Per RTD’s Fiscal Policy Statement, RTD will contract with a qualified third party to provide sales and use

tax forecasting containing projections for the short term (annual budget), medium term (Mid-term

Financial Plan) and long term (Financial Plan). RTD has contracted with the University of Colorado-Leeds

School of Business for this service.

Capital and operating/maintenance projects are developed through the Asset Management Plan process.

The Mid-term Financial Plan also provides the basis for the District’s application for federal transit

funding through the Transportation Improvement Program (TIP), prepared by the Denver Regional Council

of Governments. The TIP is a list of all roadway and transit projects in the region that receive federal

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funding. RTD cannot receive federal funds for projects unless the MTFP qualifying projects are included

in the TIP.

DISCUSSION

Although RTD was facing funding shortfalls prior to the pandemic, COVID-19 has had a significant effect

of the ability for RTD to offer the same level of service that was provided in 2019.

Multiple study sessions and workshops have been held with the Board over the last seven months to

provide guidance to RTD on how to move forward. On July 21, 2020, the Board adopted the following

COVID-19 budget reduction principles:

#1 Keeping riders, employees and the region healthy and safe: We will strive to keep our

communities connected and our riders, employees and region healthy and safe.

#2 Service reductions should not be our primary response. We’ll be creative: We will take a balanced

approach to budget reductions and do so in such a way as to align with our mission. Accordingly,

service reductions should be minimized so as to minimize the impact to our customers. We will

strive for a well-rounded approach by incorporating reductions in overhead, breaking down silos

and engaging partners, and seeking creative approaches to service delivery.

#3 We’ll prioritize mobility for people who most depend on transit during the pandemic: We will

strive to maximize mobility during the pandemic for those customers who most depend upon our

services to access essential jobs and other necessities, while also keeping our communities and

activity centers appropriately connected.

#4 We will support and value all of our employeesz: We acknowledge our frontline employees who

directly promote our mission to the public and who have borne the brunt of mandating in the

past. We also acknowledge those fulltime employees in the lower wage categories, because a

humane work environment is valued by RTD.

#5 Being data-driven and informed by collective wisdom and expertise: We will use a thoughtful,

responsible approach to decision-making for the COVID period, while planning for the mid-term

financial period and post-pandemic future, by incorporating the best available data, expertise, and

wisdom, including through the Re-Imagine project, the accountability committee, and

stakeholders.

#6 We’ll be actively transparent and seek input: We will take active measures to be transparent and

seek input regarding our use of CARES Act money as well as in the decision-making process for

measures we adopt to respond to ongoing COVID financial impacts

On September 1, 2020, the Board also provided guidance on how to solve for the shortfall.

• First consider reductions in Administrative costs (overhead)

• Ok to utilize reserves but try to limit use

• Ok to utilize FISA rubber tire service contributions

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• Ok to utilize future contributions from Credit Risk Premium (CRP) and project savings to offset

FasTracks shortfalls

• Should not utilize existing FISA balances, except for possibility SH 119 BRT

• Don’t reduce service levels below what we are currently offering

In June, General Manager and CEO Paul Ballard established the an internal COVID-19 Fiscal Task

Force to focus resources on identifying savings. The Task Force identified the following:

Cost Reductions/ Elimination Recommendations

• Business Travel

• Temporary Employees

• Professional Dues

• Publications and Subscriptions

• Employee Referral and Signing Bonus (except for those already earned)

• Elimination of Professional Development Funds (except job required)

• Suspend the Leadership Academy

• Suspend MAX Program

Payroll/ Benefit Related Reduction Recommendations

• No pay increases for Salaried Employees

• Tiered Furloughs for Salaried Employees

o $0 - $60,000 – No furlough days or pay reduction

o $60,001 - $120,000 – 6 furlough days and no pay reduction

o $120,001 - $180,000 – 6 furlough days + 3.5% pay reduction

o $180,001 + - 6 furlough days + 7.5% pay reduction

• No increases in the contribution to the Salaried Defined Benefit (DB) Pension plan

• Temporary reduction in the contribution for the Salaried Defined Contribution (DC) plan

• Elimination of Salaried Vacation/Sick/PTO Buyback

• Elimination of Overtime and Extra Shift Pay (except OT when required in the runboard)

• Adjustments to staffing levels to “right size” the organization to align staffing with the

anticipated continuation of operating service at the 60% level.

o Elimination of some position and consolidation of other positions

o Reduce the number of positions by about 25-30%

o Reductions include both vacant and filled positions for represented and salaried staff

o This equates to approximately 428 part-time and fulltime filled positions for both

represented and salaried staff

We had originally anticipated the shortfall to be approximately $166 million for 2021 as revenues

forecasts changed it grew to $215 million. We have since received the September 2020 forecast from

CU Leeds School of Business and the current shortfall forecast for 2021 is approximately $140 million.

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The 2021-2026 cash flows are presented in Exhibit A for Base System and Exhibit B for FasTracks. In

addition, we have provided a line by line narrative for both the Base System and FasTracks (Exhibit C).

This narrative walks through some of the assumptions made and an explanation of what each line item

represents.

In order to balance 2021 and future years, we have relied on having fund balances to carry forward into

2021. Please see Exhibit D for more information.

Asset Management Plan

In being able to solve the shortfall for 2021, we had to defer all capital and expense projects except for

the Electric Bus and Infrastructure project for which we had received two grants. The Asset

Management Plan is Exhibit D. The list of projects that has been deferred in on page 1 for the Base

system and page 7 for FasTracks. The Asset Management Division along with the Asset Stewards will

be meeting over the next several months to review the projects listed and will reprioritize the projects

over the 2022-2026 timeframe. They will be look at how lower service levels may cause a reduction in

asset replacements.

The current list of deferred projects prior to the deferral of projects in 2021 equated to $205 million.

The deferral of projects in 2021 grows the deferred list by approximately 10% and increases the risk for

potential catastrophic failures that could create and immediate need for funds.

FINANCIAL IMPACT

The staff-recommended Modified Mid-term Financial Plan for 2021 and 2022 is balanced where

forecasted revenues equal forecasted expenditures and provides RTD with a plan for maintaining three

months of reserves.

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ATTACHMENTS:

• Exhibit A - Base 2021-2026 Cash Flow (PDF)

• Exhibit B - FasTracks 2021-2026 Cash Flow (PDF)

• Exhibit C - Line by Line Narrative of Base Cash and FasTracks Cash Flows (PDF)

• Exhibit D - 2020 Estimated Year End Reserves for Base and FasTracks (PDF)

• Exhibit E - Asset Management Plan 2021-2026 (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Susan Cohen, Senior Manager, Finance and ECM

Approved by:

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2021-2026 Midterm Financial Plan Exhibit ABase System Cash Flow - 2021-2026(thousands of dollars)

Fiscal Year 2021 2022 2023 2024 2025 2026 TotalRevenue and Other Sources of Funds

Operating Revenue1 Fare Revenue 60,961 67,069 86,613 87,280 87,970 110,963 500,8562 Other Operating Revenue 8,138 8,353 8,568 8,791 9,016 5,378 48,245 3 Total Operating Revenue 69,099 75,422 95,182 96,071 96,986 116,341 549,101

Non-Operating Revenue4 0.6% Sales and Use Tax 393,025 417,779 444,180 466,168 487,793 510,695 2,719,639 5 Grants 112,707 101,436 104,099 106,808 109,538 112,326 646,914 6 Investment Income - 7 Local and Third Party Contributions - 8 Other Non-Operating Revenue 3,243 3,243 9 Total Non-Operating Revenue 505,731 519,215 548,279 572,976 597,331 626,263 3,369,795

10 Total Revenue 574,831 594,637 643,461 669,047 694,316 742,604 3,918,897

Debt Service11 Revenue Bond Payments 14,496 9,584 9,582 9,588 - - 43,250 12 COP Payments (Gross) 63,776 60,132 47,029 47,011 47,013 38,580 303,540 13 Other Financing Payments - - - - - - - 14 Total Debt Service and Lease Payments 78,271 69,716 56,612 56,599 47,013 38,580 346,790 14a Percent of Sales and Use Tax Used for Debt Service 19.9% 16.7% 12.7% 12.1% 9.6% 7.6% 12.8%

15 Remaining Funds After Debt Service 496,560 524,921 586,849 612,448 647,303 704,025 3,572,107

Operating and Maintenance Costs16 Operating and Maintenance Expense - 2020 Adopted Budget Baseline 546,747 563,625 579,625 598,130 616,413 637,919 3,542,459 17 Cost Changes - 2020 Amended Budget 5,981 6,138 6,297 6,461 6,626 6,795 38,298 18a Administrative Personnel Related Savings (12,798) (12,296) (12,614) (12,942) (13,273) (13,611) (77,535)18b Other Administrative Reductions - Task Force (5,908) (6,064) (6,220) (6,382) (6,545) (6,712) (37,831)18c Service Reduction Savings (76,931) (78,957) (80,997) (83,105) (85,229) (87,398) (492,617)18d One-Time Personnel Costs 11,932 11,93218e Other Changes - 2021 Recommended Budget (5,044) (5,177) (5,311) (5,449) (5,588) (5,731) (32,300)19 Current O&M Forecast 463,979 467,269 480,780 496,713 512,403 531,262 2,952,406

Contribution to / (Use of) Reserves20 FasTracks Internal Savings Account Service - 21 Other Reserves (2,521) 114 1,385 687 2,179 (5,142) (3,298)22 Total Contributions to / (Use of) Reserves (2,521) 114 1,385 687 2,179 (5,142) (3,298)

23 Remaining Funds After Debt Service, O&M, and Reserve Contribution 35,102 57,538 104,685 115,048 132,721 177,905 622,999

Other Projects24 SH 119 BRT 33,231 33,231 25 New Bus Maintenance Facility - 26 Burnham Yard - 27 Electric Vehicles and Charging Infrastructure 16,076 16,076 28 Allowance for New Projects - 3,000 3,000 3,000 3,000 3,000 15,000 29 70% of Current Asset Management List - 2021 Costs Deferred - 49,333 20,647 48,728 51,443 46,337 216,488 30 Total Other Projects 16,076 52,333 56,879 51,728 54,443 49,337 280,795

31 Remaining Funds After Debt Service, O&M, Reserve Contribution, and Other 19,026 5,205 47,806 63,320 78,278 128,568 342,204

32 Cumulative Remaining Funds 19,026 24,231 72,037 135,358 213,636 342,204

Remaining funds may be used to fund deferred Asset Management requirements or to restore service.NOTE: Grant revenues are based on 2020 formula grant allocations. The impacts of the 2020 Census and potential RTD service changes on formula grants are not known at this time.

Prepared 11/2/2020 by Susan Cohen Page 1

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2021-2026 Midterm Financial Plan Exhibit BFasTracks Cash Flow - 2021-2026(thousands of dollars)

Fiscal Year 2021 2022 2023 2024 2025 2026 TotalRevenue and Other Sources of Funds

Operating Revenue1 Fare Revenue 27,501 30,257 39,074 39,374 39,686 50,059 225,9502 Other Operating Revenue 367 - - - - - 367 3 Total Operating Revenue 27,868 30,257 39,074 39,374 39,686 50,059 226,317

Non-Operating Revenue4 0.4% Sales and Use Tax 262,017 278,519 296,120 310,779 325,195 340,463 1,813,092 5 Grants - 4,419 4,534 4,652 18,161 23,734 55,499 6 Investment Income - 7 Local and Third Party Contributions - 8 Other Non-Operating Revenue - 9 Total Non-Operating Revenue 262,017 282,939 300,653 315,430 343,356 364,197 1,868,592

10 Total Revenue 289,884 313,196 339,727 354,805 383,041 414,256 2,094,909

Debt Service11 Revenue Bond Payments 83,138 83,194 102,941 102,946 102,947 123,952 599,118 12 COP Payments (Gross) 45,107 45,172 57,652 57,650 57,638 45,014 308,233 12a Less: BAB Subsidy (8,319) (8,319) (8,319) (8,319) (8,319) (8,319) (49,914) 13 Other Financing Payments 56,999 55,353 56,525 57,945 69,143 63,852 359,817 14 Total Debt Service and Lease Payments 176,925 175,401 208,800 210,222 221,408 224,498 1,217,254 14a Percent of Sales and Use Tax Used for Debt Service 67.5% 63.0% 70.5% 67.6% 68.1% 65.9% 67.1%

15 Remaining Funds After Debt Service 112,959 137,795 130,927 144,583 161,633 189,758 877,654

Operating and Maintenance Costs16 Operating and Maintenance Expense - 2020 Adopted Budget Baseline 144,141 148,958 155,207 175,005 202,802 169,806 995,920 17 FasTracks Plan Bus Service 19,843 20,365 20,892 21,435 21,983 22,543 127,061 18 Cost Changes - 2020 Amended Budget (7,830) (8,036) (8,244) (8,458) (8,674) (8,895) (50,138) 19a Administrative Personnel Related Savings (1,582) (1,639) (1,682) (1,725) (1,770) (1,815) (10,213) 19b Other Administrative Reductions (1,343) (1,378) (1,414) (1,451) (1,488) (1,526) (8,600) 19c Service Reduction Savings (974) (1,000) (1,025) (1,052) (1,079) (1,106) (6,237) 19d One-Time Personnel Costs - - 19e Other Changes - 2021 Recommended Budget 2,810 781 802 822 843 865 6,924 20 Current O&M Forecast 155,065 158,052 164,536 184,576 212,618 179,872 1,054,718

Contribution to / (Use of) Reserves21 FasTracks Internal Savings Account Contribution 17,658 20,034 20,614 21,192 21,776 22,368 123,643 22 FasTracks Internal Savings Account Service - - - - (21,776) (22,368) (44,144) 23 Other Reserves (59,764) (41,744) (57,070) (63,130) (19,676) 3,343 (238,042) 24 Total Contributions to / (Use of) Reserves (42,106) (21,710) (36,456) (41,939) (19,676) 3,343 (158,543)

25 Remaining Funds After Debt Service, O&M, and Reserve Contribution - 1,454 2,847 1,945 (31,309) 6,543 (18,520)

Other Projects26 Vehicle Replacements - - - - - - - 27 70% of Current Asset Management List - 2021 Costs Deferred - 1,454 2,847 1,945 1,853 2,226 10,325 28 Total Other Projects - 1,454 2,847 1,945 1,853 2,226 10,325

29 Remaining Funds After Debt Service, O&M, Reserve Contribution, and Other - - - - (33,162) 4,317 (28,845)

30 Cumulative Remaining Funds - - - - (33,162) (28,845)

NOTE: Grant revenues are based on 2020 formula grant allocations. The impacts of the 2020 Census and potential RTD service changes on formula grants are not known at this time.

Prepared 11/2/2020 by Susan Cohen Page 1

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Exhibit C

November 5, 2020 Heather McKillop

Narrative for 2021-2026 Mid-Term Financial Plan Cash Flows

Due to the uncertain nature of the impacts of COVID-19 on both revenues and expenditures,

the Board gave guidance that they would like to approve a modified Mid-Term Financial Plan

that encompasses 2021 and 2022 at this time. However, we have prepared a six-year analysis

so the Board can see the longer-term impact of current information regarding revenues and

expenditures and the assumptions made.

Base/FasTracks Cash Flow for 2021-2016

The first page is the cash flow for the Base system (2021-2026) and the second page is the cash

flow for FasTracks (2021-2026.)

Base System Cash Flow:

Line 1: The 2020-2025 fare box revenue estimates have been reduced to the

percentages specified in the chart below to account for lower ridership due to

COVID-19 and the uncertainty as to when ridership will return. These estimates

include an assumption of a fare rate increase in both 2023 and 2026 which was

deferred from 2022 and 2025 per Board direction.

2021 2022 2023 2024 2025 2026

55% 60% 70% 70% 70% 80%

Line 2: Other operating revenue such as advertising and local service buy-ups.

Line 3: Total operating revenue to include fare box revenues and other operating

revenue.

Line 4: Sales and Use Tax – Based on the September 2020 Leeds forecast which includes

July actual collections.

Line 5: Grant revenues are based on 2020 formula grant allocations. The impacts of the

2020 Census and potential RTD service changes on formula grants are not known

at this time.

Line 6: This was excluded from this analysis.

Line 7: This is only applicable to FasTracks.

Line 8: This revenue is lumped in with other operating revenue in 2021-2025 Mid-Term

financial plan but is broken out in 2026 and beyond – it includes lease, rental,

and miscellaneous income.

Line 9: Total non-operating revenue.

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Exhibit C

November 5, 2020 Heather McKillop

Line 10: Total operating and non-operating revenue combined. This is the amount of

total funds available for distribution.

Line 11: These are the payment on the outstanding T-Rex Bonds. These bonds will be

paid off in 2024. After these bonds are paid off, RTD will be subject to TABOR

spending limitations on the Base System.

Line 12: These are the payments due on the COPs in the base system. COPs were issued

routinely for bus and light rail vehicle purchases prior to 2017.

Line 13: There are no other financing payments on the base system.

Line 14: This is the sum of revenue bond and COP payments.

Line 14a: This is the percent of sales & use taxes that are used for debt service.

Line 15: These are the funds that RTD has available to spend on operations, projects, and

assets.

Line 16: Operating and Maintenance costs taken from the 2020 Adopted Budget and

inflated by CPI.

Line 17: Since we used the 2020 Adopted Budget as the baseline, we have to adjust for

changes reflected in the 2020 Amended Budget adopted by the Board in July

2020.

Line 18a: Administrative Personnel Related Changes identified through the COVID-19 fiscal

task force.

Line 18b: Other administrative reductions identified through the COVID-19 fiscal task

force.

Line 18c: Savings from Service remaining at the 60% level (includes personnel savings

related to service).

Line 18d: Onetime costs related to reduction in staffing such as unemployment.

Line 18e: Other savings identified by Divisions through the 2021 budget process.

Line 19: This is the total of lines 16-18e, and it represents the forecasted Operations and

Maintenance cost with all the adjustments.

Line 20: Use of future rubber tire service contributions to the FISA to fund current year

service. No contributions are need currently.

Line 21: Use and contributions to reserves () denotes use of reserves. A positive number

represents a contribution to reserves. Three (3) months of reserves are

maintained through 2026.

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Exhibit C

November 5, 2020 Heather McKillop

Line 22: Total of lines 20 and 21.

Line 23: These are the funds remaining after debt service, O&M, and contribution to (or

use of) reserves.

Line 24: Per the Board direction, we funded SH 119 BRT in 2023.

Line 25 & 26: We deferred Burnham Yard and the Maintenance Facility until after 2026.

Line 27: We are funding the electric buses and infrastructure. We have pulled these

electric bus purchases out of the Asset Management list because we received

two grants for these buses and infrastructure. One is a federal grant and one is

from the Volkswagen settlement.

Line 28: This is an allowance for new projects which are non-asset related.

Line 29: We are funding 70% of the Asset Management Plan (AMP). 2021 projects have

been deferred to 2022-2026. RTD should be funding between 80% and 90% of

the list so assets don’t fall into a state of disrepair, however funding is not

available to achieve that level.

Line 30: This is the total of lines 24 – 29.

Line 31: Funds remaining after all expenses have been funded. These funds can be used

for funding deferred projects from the AMP or restoring service.

Line 32: There is a positive balance in years 2021-2026.

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Exhibit C

November 5, 2020 Heather McKillop

FasTracks Cash Flow:

Line 1: The 2020-2025 fare box revenue estimates have been reduced to the

percentages specified in the chart below to account for lower ridership due to

COVID-19 and the uncertainty as to when ridership will return. These estimates

include an assumption of a fare rate increase in both 2023 and 2026 which was

deferred from 2022 and 2025 per Board direction.

2021 2022 2023 2024 2025 2026

55% 60% 70% 70% 70% 80%

Line 2: Other operating revenue such as advertising, naming rights, and local service

buy-ups.

Line 3: Total operating revenue to include fare box revenues and other operating

revenue.

Line 4: Sales and Use Tax – Based on September 2020 Leeds forecast which includes July

actual collections.

Line 5: Operating grants are assumed to start in 2022 based on federal guidelines. The

impacts of the 2020 Census and potential RTD service changes on formula grants

are not known at this time.

Line 6: This was excluded from this analysis.

Line 7: There are no contributions in 2021-2026.

Line 8: There is no other Non-Operating Revenue in 2021-2026.

Line 9: Total non-operating revenue.

Line 10: Total operating and non-operating revenue combined. This is the amount of

total funds available for distribution.

Line 11: These are payments on outstanding bonds issued for the FasTracks program.

Line 12: These are the payments due on the COPs on FasTracks. COPs were issued to

fund the North Metro project, and for light rail vehicles, buses, and parking

garages on the West Corridor.

Line 12a: Subsidy received due to Build America Bonds.

Line 13: These are the payments due on the TABOR portion of the DTP payment and the

TIFIA loan for the Eagle project.

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Exhibit C

November 5, 2020 Heather McKillop

Line 14: This is the sum of revenue bond payments, COPs, and other financing payments.

Line 14a: This is the percent of Sales and Use Taxes that are used to pay debt service.

Line 15: These are the funds that RTD has available to spend on operations, projects, and

assets.

Line 16: Operating and Maintenance costs taken from the 2020 Adopted Budget and

inflated by CPI.

Line 17: Amount of funds for bus service specified in the original FasTracks plan.

Line 18: Since we used the 2020 Adopted Budget as the baseline, we must adjust for

changes reflected in the 2020 Amended Budget adopted by the Board in July

2020.

Line 19a: Administrative Personnel Related Changes identified through the COVID-19 fiscal

task force.

Line 19b: Other administrative reductions identified through the COVID-19 fiscal task

force.

Line 19c: Savings from Service remaining at the 60% level (includes personnel savings

related to service).

Line 19d: Onetime costs related to reduction in staffing such as unemployment. These

were all deducted from the base system and will be allocated to FasTracks.

Line 19e: Other costs identified by Divisions through the 2021 budget process.

Line 20: This is the total of lines 16-19e, and it represents the forecasted Operations and

Maintenance cost with all the adjustments.

Line 21: The is the contribution to the FISA from enhanced bus service that was capped in

2012 by the Board of the Directors.

Line 22: The FISA currently has a balance of $119.6 million as of year-end 2020. We have

not drawn from the current existing balance. The allocation in line 21 is used to

fund current year service on FasTracks in 2025-2026.

Line 23: These are the Board Appropriated Reserve, Capital Acquisition Reserve, and the

Operating Reserve for FasTracks, and are set at 3 months one month of

operating expenses between in 2021-2023, 2 months in 2024, and 1 month in

2025 and 2026.

Line 24: Total of lines 21-23.

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Exhibit C

November 5, 2020 Heather McKillop

Line 25: Funds available after deducting debt, operations & maintenance, and

contribution to (or use of) reserves.

Line 26 : Line reserved for future vehicle replacements in 2027-2050

Line 27: We are funding 70% of the Asset Management Plan (AMP). 2021 projects have

been deferred to 2022-2026. RTD should be funding between 80% and 90% of

the list so assets don’t fall into a state of disrepair, however funding is not

available to achieve that level.

Line 28: This is the total of lines 26-27.

Line 29: Funds remaining after all expenses have been funded. FasTracks has a negative

balance in years 2025-2026.

Line 30: There is a cumulative shortfall in years 2025-2026 of $28.8 million.

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Exhibit D

Board Adopted

Amended Budget

Increase due to September

2020 Leeds Forecast (Low)

Decrease due to

Represented Furloughs

Decrease due to Fare

Box Revenue

Changes for 2020

Decrease due to

Change in TABOR Reserve

Decrease due to Funding of

Accountability Committee

Total of Changes since Board Amended

Budget

Forecasted 2020 Year

End Balance NotesBase SystemBase Board Appropriated Fund $26.4 $0.0 $0.0 $0.0 $0.0 -$0.2 -$0.2 $26.2Base Unrestricted Operating Reserve $15.4 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $15.4Base Unrestricted Fund $39.7 $61.1 -$4.2 -$11.7 -$1.5 $0.0 $43.7 $83.4Total $81.5 $61.1 -$4.2 -$11.7 -$1.5 -$0.2 $43.5 $125.0

Board Adopted

Amended Budget

Increase due to September

2020 Leeds Forecast (Low)

Decrease due to

Represented Furloughs

Decrease due to Fare

Box Revenue

Changes for 2020

Decrease due to

Change in TABOR Reserve

Decrease due to Funding of

Accountability Committee

Total of Changes since Board Amended

Budget

Forecasted 2020 Year

End Balance NotesFasTracks SystemBeginning Fund Balance $179.7 $40.7 $0.0 -$5.0 $0.0 $0.0 $35.7 $215.4FT Management Reserve $0.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.9

FT Internal Savings Account $119.6 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $119.6

Note: The FISA is not counted towards the required 3 month reserve

FT Board Appropriated Fund $15.8 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $15.8FT Capital Fund $15.8 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $15.8FT Unrestricted Fund $15.8 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $15.8Total $347.6 $40.7 $0.0 -$5.0 $0.0 $0.0 $35.7 $383.3

Note: These numbers may vary after year end close and don't include carryforward.

Reserve Estimates for Year End 2020 (in millions)

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RTD Asset Management PlanAsset Management Requirements ‐ 2021Base System(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location CostGillig ‐ 40 ft 40 ft low floor transit buses Districtwide 46,363,789$              Gillig ‐ 30 ft 30 ft low floor transit buses Districtwide 12,201,263$              Cutaway Vehicles used for call and ride/flex ride system Districtwide 16,351,275$              Roof Replacement of roof at Blake Blake St 184,907$                    Hoist Replacement of hoists at East Metro East Metro 4,371,440$                Doors High Speed roll up doors East Metro 82,240$                      HVAC HVAC units ‐ District Shops District Shops 376,000$                    

NetworkNetwork Group consists of four primary asset types; Switches, Routers, Firewall, and Wifi.

District Shops 1,964,915$                

TelecomTelecom Group consists of four primary asset types; Telecom Servers, Media Gateway, Power Distribution Units, and Uninterruptible Power Supply. 

District Shops 132,237$                    

ServerServer Group consists of four primary asset types; Server, Storage, Switch, and Load Balancer Server

District Shops 6,114,804$                

Software Architecture DevelopmentSAD Group consists of three primary assets; Servers, Switches, and Storage.

District Shops 2,663,279$                

Parking Structure Structural repair costs for RTD parking structures Nine Mile 795,300$                    Unleaded,Diesel, and Standby Vehicles All Support Vehicles Districtwide 3,608,710$                

TVMTicket Vending Machine ‐ Machine at park and rides that disburse tickets for public transportation. 

Districtwide 3,004,475$                

Stamp ValidatorMachine at park and rides used to time stamp a ticket to validate the ticket may be used for public transportation. 

Districtwide 432,950$                    

Platform Validator HeadElectronic machines located at park and rides used to validate smart media payments for public transportation. 

Districtwide 89,721$                      

Subtotal ‐ Capital Cost 98,737,306$              

Asset O&M Requirements 

Equipment Type Description Location Cost

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 2,284,473$                

Lot Asphalt seal, asphalt resurface, concrete resurfaceAsphalt Seal ‐  Work to be done at Pine Junction, Olympic, US36 and Church Ranch, US85 and Bridges

105,556$                    

Grounds Station or park and ride grounds maintenance Wagon Road irrigation 400,000$                    Grounds Station or park and ride grounds maintenance US36 and McCaslin 1,085,070$                Subtotal ‐ O&M Cost 3,875,099$                

Annual Total 102,612,405$            

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RTD Asset Management PlanAsset Management Requirements ‐ 2022Base System(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location CostGillig ‐ 40 ft 40 ft low floor transit buses Districtwide 14,105,317$              Gillig ‐ 30 ft 30 ft low floor transit buses Districtwide 3,189,419$                Cutaway Vehicles used for call and ride/flex ride system Districtwide 2,950,127$                HVAC HVAC units ‐ District Shops District Shops 157,819$                    Roof East Metro Roof Replacement East Metro 6,427,144$                Steel Pits Replace steel inspection pits at East Metro East Metro 2,775,600$                HVAC HVAC units ‐ Blake St Blake St 120,000$                    Shop Equipment Internal Vacuum ‐ District Shops District Shops 73,904$                      

NetworkNetwork Group consists of four primary asset types; Switches, Routers, Firewall, and Wifi.

District Shops 244,773$                    

ServerServer Group consists of four primary asset types; Server, Storage, Switch, and Load Balancer Server

District Shops 414,118$                    

Software Architecture DevelopmentSAD Group consists of three primary assets; Servers, Switches, and Storage.

District Shops 2,761,430$                

Parking Structure Structural repair costs for RTD parking structures Nine Mile 795,300$                    

MOW WireWire Replacement Project: Overhead Catenary System (OCS); components responsible for transmission of electricity to the train pantograph.

Central Platte Valley 4,831,467$                

Unleaded,Diesel, and Standby Vehicles All Support Vehicles Districtwide 642,144$                    Currency Sorter Coin sorter and counter Treasury Building 61,136$                      Subtotal ‐ Capital Cost 39,549,698$              

Asset O&M Requirements 

Equipment Type Description Location Cost

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 4,052,232$                

Lot Asphalt seal, asphalt resurface, concrete resurfaceAsphalt Seal ‐  Work to be done at 39th Table Mesa, Arapahoe, Aspen Park, Lafayette, Lutheran Church, Parker, Pinery, Tantra Table Mesa, Parker, Olde Town Arvada, US36 Flatiron, US36 McCaslin

260,505$                    

Grounds Station or park and ride grounds maintenance Nederland, Mile High Stadium, US36 and Flatiron 182,153$                    DRS Driver Relief Stations Boulder, 106th and Melody 700,000$                    Subtotal ‐ O&M Cost 5,194,890$                

Annual Total 44,744,588$              

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RTD Asset Management PlanAsset Management Requirements ‐ 2023Base System(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location CostCutaway Vehicles used for call and ride/flex ride system Districtwide 1,005,725$                Roof Roof replacement at Mariposa Mariposa 380,277$                    Vehicle Wash Vehicle Wash ‐ District Shops District Shops 187,835$                    

NetworkNetwork Group consists of four primary asset types; Switches, Routers, Firewall, and Wifi.

District Shops 442,041$                    

ServerServer Group consists of four primary asset types; Server, Storage, Switch, and Load Balancer Server

District Shops 356,905$                    

Parking Structure Structural repair costs for RTD parking structures Table Mesa 450,800$                    Unleaded,Diesel, and Standby Vehicles All Support Vehicles Districtwide 467,228$                    Currency Sorter Coin sorter and counter Treasury Building 34,118$                      Subtotal ‐ Capital Cost 3,324,930$                

Asset O&M Requirements 

Equipment Type Description Location Cost

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 1,283,359$                

Lot Asphalt seal, asphalt resurface, concrete resurfaceAsphalt Seal‐  Work to be done at 27th Broadway, Dayton Station, Evergreen, Genesee, Highlands Rach, Longmont, Smoky Hills, HWY119 Niwot

97,266$                      

Grounds Station or park and ride grounds maintenance C470 and University, Highlands Ranch, and US85 and Bridge 1,399,883$                Subtotal ‐ O&M Cost 2,780,508$                

Annual Total 6,105,437$                

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RTD Asset Management PlanAsset Management Requirements ‐ 2024Base System(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location CostCutaway Vehicles used for call and ride/flex ride system Districtwide 1,944,402$                MCI Coaches used in the express routes, Sky Ride and BRT systems.  Districtwide 3,844,382$                Hoist Replacement of hoists at District Shops District Shops 7,587,036$                Overhead Doors Replacement of overhead doors at Elati Elati 554,616$                    HVAC Internal/External HVAC replacement at Elati Elati 1,134,510$                

ServerServer Group consists of four primary asset types; Server, Storage, Switch, and Load Balancer Server

District Shops 18,230$                      

Parking Structure Structural repair costs for RTD parking structures Table Mesa 450,800$                    MOW Track Components associated with maintaining proper track geometry Central Corridor 20,023,521$              Unleaded,Diesel, and Standby Vehicles All Support Vehicles Districtwide 402,048$                    Subtotal ‐ Capital Cost 35,959,544$              

Asset O&M Requirements 

Equipment Type Description Location Cost

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 2,297,012$                

Lot Asphalt seal, asphalt resurface, concrete resurface

Asphalt Resurface ‐ Paradise HillsConcrete Resurface ‐ 30th and Downing                                                            Asphalt Seal ‐  8th Coffman, Church of Nazeren, Littleton Mineral, Nederland, US36 Sheridan, Wadsworth Hampdon

478,255$                    

Grounds Station or park and ride grounds maintenance 106th and Melody, I25 and Broadway 591,331$                    DRS Driver Relief Stations Arapahoe, Nine Mile, Southmoor, University of Denver 1,400,000$                Subtotal ‐ O&M Cost 4,766,598$                

Annual Total 40,726,142$              

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RTD Asset Management PlanAsset Management Requirements ‐ 2025Base System(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location CostHVAC External HVAC at Platte Platte 3,430,000$                Vehicle Wash Bus Wash at East Metro East Metro 1,644,800$                HVAC External HVAC units at Boulder Boulder 4,040,000$                Parking Structure Structural repair costs for RTD parking structures US36 and Sheridan 337,420$                    Parking Structure Structural repair costs for RTD parking structures University 170,055$                    

MOW Traction PowerComponents associated with transforming incoming AC power into DC power needed for operating light rail vehicles ‐ Southwest Corridor

Southwest Corridor 11,086,810$              

MOW SwitchMechanism and related components responsible for diverting trains from one track to another.   Southwest Corridor

Southwest Corridor 1,452,273$                

MOW Relay Case Small building structure that houses all relay circuitry ‐ Southwest Corridor Southwest Corridor 10,191,807$              

MOW Signal Components responsible for signaling the trains Southwest Corridor 3,687,882$                Unleaded,Diesel, and Standby Vehicles All Support Vehicles Districtwide 803,026$                    

Stamp ValidatorMachine at park and rides used to time stamp a ticket to validate the ticket may be used for public transportation. 

Districtwide 128,281$                    

Subtotal ‐ Capital Cost 36,972,356$              

Asset O&M Requirements 

Equipment Type Description Location Cost

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 4,636,105$                

Lot Asphalt seal, asphalt resurface, concrete resurfaceAsphalt Resurface ‐ Pine Junction, US36 and Church RanchConcrete Resurface ‐ US285 Twin ForksAsphalt Seal ‐ Olympic, US85 and Bridges

358,518$                    

Grounds Station or park and ride grounds maintenance Alameda and Havana, Pine Junction 210,285$                    DRS Driver Relief Stations C470 and University  350,000$                    Subtotal ‐ O&M Cost 5,554,908$                

Annual Total 42,527,264$              

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RTD Asset Management PlanAsset Management Requirements ‐ 2026Base System(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location CostCutaway Vehicles used for call and ride/flex ride system Districtwide 12,605,089$              HVAC External HVAC at East Metro East Metro 85,000$                      

NetworkNetwork Group consists of four primary asset types; Switches, Routers, Firewall, and Wifi.

District Shops 40,939$                      

TelecomTelecom Group consists of four primary asset types; Telecom Servers, Media Gateway, Power Distribution Units, and Uninterruptible Power Supply. 

District Shops 31,458$                      

ServerServer Group consists of four primary asset types; Server, Storage, Switch, and Load Balancer Server

District Shops 1,114,738$                

Parking Structure Structural repair costs for RTD parking structures Arapahoe, Lincoln 417,590$                    

MOW WireWire Replacement Project: Overhead Catenary System (OCS); components responsible for transmission of electricity to the train pantograph.

Southwest Corridor 11,532,716$              

Unleaded,Diesel, and Standby Vehicles All Support Vehicles Districtwide 525,224$                    

Change MachineMachine used to change dollar bills into coins, located at several RTD locations for patrons

Districtwide 51,245$                      

Platform Validator HeadElectronic machines located at park and rides used to validate smart media payments for public transportation. 

Districtwide 1,071,666$                

Subtotal ‐ Capital Cost 27,475,666$              

Asset O&M Requirements 

Equipment Type Description Location Cost

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 3,380,764$                

Lot Asphalt seal, asphalt resurface, concrete resurface

Asphalt Resurface ‐ Olde Town Arvada, US36 and FlatironConcrete Resurface ‐ US287 NiwotAsphalt Seal ‐ 39th Table Mesa, Arapahoe, Aspen Park, Lafayette, Lutheran Church, Pinery, Tantra Table Mesa, Parker, US36 and McCaslin

575,151$                    

Grounds Station or park and ride grounds maintenanceBelleview Stn, Colorado Stn, County Line Stn, Dayton Stn, Dry Creek Stn, East Metro, Lincoln Stn, Louisiana Pearl Stn, and Yale Stn

3,174,376$                

Passenger Elevator Hydraulic Passenger elevator or escalator Nine Mile, Table Mesa 253,236$                    Subtotal ‐ O&M Cost 7,383,527$                

Annual Total 34,859,193$              

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RTD Asset Management PlanAsset Management Requirements ‐ 2021‐2026FasTracks(2019 Dollars)

Capital Asset Requirements

Equipment Type Description Location 2021 2022 2023 2024 2025 2026

TVMTicket Vending Machine ‐ Machine at park and rides that disburse tickets for public transportation. 

Districtwide 4,109,019$       

Subtotal ‐ Capital Cost 4,109,019$        ‐$                    ‐$                    ‐$                    ‐$                    ‐$                   

Asset O&M Requirements

Equipment Type Description Location 2021 2022 2023 2024 2025 2026

Bridges and StructuresPreventative Maintenance Program includes washing, sealing, spot painting, and other minor repairs for all parking structures and bridges

Districtwide 1,608,774$        723,572$            2,472,305$        1,245,942$        295,497$            1,460,557$       

LotAsphalt seal, asphalt resurface, concrete resurface

Asphalt Seal ‐  Work to be done at 13 Ave, 2nd and Abeline, Aurora Metro, Decature Federal, Federal Center, Oak

279,173$           

LotAsphalt seal, asphalt resurface, concrete resurface

Asphalt Resurface ‐ Decatur Federal, Federal Center, OakAsphalt Seal ‐ 13 Ave, 2nd and Abeline, Aurora Metro

‐$                     776,714$           

Subtotal ‐ O&M Cost 1,887,947$        723,572$           2,472,305$        1,245,942$        1,072,211$        1,460,557$       

Annual Total 5,996,966$        723,572$           2,472,305$        1,245,942$        1,072,211$        1,460,557$       

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Adoption of the 2021 Budget

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the Board of Directors

adopt Resolution No. ___, Series of 2020 for the adoption of the 2021 Budget, Resolution No. ___,

Series of 2020 for the 2021 Budget Appropriation and Resolution No. ___, Series of 2020 for the

appropriation of 2021 Previously Appropriated Capital.

This recommended action supports the following General Manager’s Goals:

Mission-Oriented Goal #1 – Successful Delivery of Transit Services

Mission-Oriented Goal #3 – Strong Financial Management

Strategic Priority #6 – Move RTD Toward Stable Financial Situation

BACKGROUND

In accordance with State law, the District submitted its initial 2021 Requested Budget to the governing

body on October 20, 2020. By legal notice, the governing body made available/posted the initial 2021

Requested Budget for public review prior to October 15. A public hearing to solicit formal public

comment for the 2021 Recommended Budget is scheduled for the November 17, 2020 regular meeting

of the Board of Directors.

DISCUSSION

The 2021 Recommended Budget includes the following summary of operating and non-operating

revenue, and operating expenses, debt and reserves, capital expenditures, and fund balances. The

attached Fiscal Year 2021 Recommended Budget and Fiscal Year 2021 Recommended Budget-Fund

Balance (Exhibit I) provide the supporting detail for the Base System, FasTracks Project and FasTracks

Operations.

The 2021 Recommended Budget includes projected operating and non-operating revenue below (in

thousands) which are estimated, not appropriated. The following amounts are summarized from data in

Exhibit I.

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BASE SYSTEM (0.6%)

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Farebox Revenue 65,677$ 60,961$ (4,716)$

Other Operating Revenue 4,541 3,932 (609)

Sales/Use Tax 300,573 393,025 92,452

Grant Revenue 297,019 118,510 (178,509)

Investment Income 704 - (704)

Other Income 3,392 3,170 (222)

Base System Revenue 671,905$ 579,598$ (92,308)$

Operating Revenue, Non-Operating Revenue

FASTRACKS PROJECT (0.4%)

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Farebox Revenue -$ -$ -$

Other Operating Revenue - - -

Sales/Use Tax 49,970 148,376 98,406

Grant Revenue 255,638 66,772 (188,866)

Investment Income 3,044 - (3,044)

Other Income 8,274 8,319 45

FasTracks Project Revenue 316,926$ 223,467$ (93,459)$

FASTRACKS OPERATIONS

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Farebox Revenue 28,147$ 27,501$ (646)$

Other Operating Revenue 972 874 (98)

Sales/Use Tax 150,412 113,641 (36,771)

Grant Revenue - - -

Investment Income - - -

Other Income 1,303 442 (861)

FasTracks Operations Revenue 180,834$ 142,458$ (38,376)$

Total FasTracks Revenue 497,760$ 365,925$ (131,835)$

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DISTRICT-WIDE

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Farebox Revenue 93,824$ 88,462$ (5,362)$

Other Operating Revenue 5,513 4,806 (707)

Sales/Use Tax 500,954 655,041 154,087

Grant Revenue 552,657 185,282 (367,375)

Investment Income 3,748 - (3,748)

Other Income 12,969 11,931 (1,038)

District-Wide Revenue 1,169,665$ 945,522$ (224,143)$

The 2021 Recommended Budget appropriation includes projected operating expenses, debt and reserves,

capital expenditures, and fund balances below (in thousands). The following amounts are summarized

from relevant data in Exhibit I.

BASE SYSTEM (0.6%)

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Operating Expense 543,976$ 474,409$ (69,567)$

Interest Expense 16,760 14,340 (2,420)

New Capital 39,292 17,099 (22,193)

Debt Payments 65,793 63,931 (1,862)

FasTracks Internal Savings Account - - -

Board Appropriated Fund 26,400 26,200 (200)

Capital Replacement Fund - - -

Unrestricted Operating Reserve 15,400 15,400 -

Unrestricted Fund 39,689 83,400 43,711

Base System (0.6%) Appropriation 747,310$ 694,779$ (52,531)$

Base System Previously Approved Capital 109,915$ 133,626$ 23,711$

Total Base System Appropriation 857,225$ 828,405$ (28,820)$

Operating Expenses, Debt Service, Capital Expenditures, Fund Balances

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FASTRACKS PROJECT (0.4%)

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Operating Expense 9,006$ 4,973$ (4,033)$

Interest Expense 152,217 161,384 9,167

New Capital 59,179 - (59,179)

Debt Payments 22,381 23,860 1,479

FasTracks Management Reserve 890 - (890)

FasTracks Internal Savings Account 119,646 137,304 17,658

Board Appropriated Fund 751 414 (337)

Capital Replacement Fund 751 414 (337)

Unrestricted Fund 751 414 (337)

FasTracks Project (0.4%) Appropriation 365,572$ 328,763$ (36,809)$

FasTracks Project Previously Approved Capital 340,541$ 318,598$ (21,943)$

Total FasTracks Project Appropriation 706,113$ 647,361$ (58,752)$

FASTRACKS OPERATIONS

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Operating Expense 180,204$ 150,006$ (30,198)$

Interest Expense - - -

New Capital - - -

Debt Payments - - -

Board Appropriated Fund 15,017 12,501 (2,516)

Capital Replacement Fund 15,017 12,501 (2,516)

Unrestricted Fund 15,017 12,501 (2,516)

FasTracks Operations Appropriation 225,255$ 187,509$ (37,746)$

FasTracks Operations Previously Approved Cap. -$ -$ -

Total FasTracks Operations Appropriation 225,255$ 187,509$ (37,746)$

Total FasTracks Appropriation 931,368$ 834,870$ (96,498)$

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DISTRICT-WIDE

2020 Amended

Budget

$000s

2021 Recommended

Budget

$000s Change

Operating Expense 733,186$ 629,388$ (103,798)$

Interest Expense 168,977 175,724 6,747

New Capital 98,471 17,099 (81,372)

Debt Payments 88,174 87,791 (383)

FasTracks Management Reserve 890 - (890)

FasTracks Internal Savings Account 119,646 137,304 17,658

Board Appropriated Fund 42,168 39,115 (3,053)

Capital Replacement Fund 15,768 12,915 (2,853)

Unrestricted Operating Reserve 15,400 15,400 -

Unrestricted Fund 55,457 96,315 40,858

District-Wide Appropriation 1,338,137$ 1,211,051$ (127,086)$

District-Wide Previously Approved Capital 450,456$ 452,224$ 1,768$

Total District-Wide Appropriation 1,788,593$ 1,663,275$ (125,318)$

Overview of the 2021 Recommended Budget

Revenues of $945.5 million on a combined basis are expected to decrease $224.1 million (-19.2%) in

2021 from the 2020 Amended Budget. This is due to 1) a decrease in farebox revenue of $5.4 million,

2) a decrease in grant revenue of $367.4 million, 3) a decrease in investment income of $3.7 million, 4)

a decrease in other income of $1.7 million, offset by 5) an increase in sales/use tax revenue of $154.1

million.

• Combined (Base System and FasTracks) farebox revenue of $88.5 million is budgeted to

decrease $5.4 million or 5.7% from the 2020 Amended Budget. Planned service levels in

2021 will be approximately 55% of pre-pandemic levels.

o On the Base System, farebox revenue is forecast at $61.0 million, a decrease of $4.7

million from the 2020 budget amount.

o For FasTracks, farebox revenue is forecast at $27.5 million, a decrease of $0.6 million

from the 2020 budget amount

• Ridership is expected to continue to be diminished through much of 2021 due to the

effects of the pandemic.

• Sales and use tax revenue of $655.0 million in 2020 is forecast to increase 5.5% or

$34.0 million over the 2020 estimate. The 2021 budget incorporates the most recent

September quarterly sales/use tax forecast by the CU-Leeds School of Business.

• Total grant revenue, including new and carry-forward amounts, is estimated at $185.3

million, a decrease of $367.4 million from the 2020 Amended Budget.

o Total Base System grants are estimated at $118.5 million in 2021, and of that amount

$114.9 million is new grants while projected carry-forward grant funding is $3.6

million. Base System grants are projected to decrease $178.5 million from the 2020

Amended Budget. The forecast assumes no additional CARES Act grant funding for

2021. Large grants for the Base System include formula FTA grants for capital

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maintenance (5307), fixed guideway (5337), and bus facilities (5339), state FASTER

grants, and VW settlement funds.

o FasTracks grants are budgeted at $66.8 million, which is a decrease of $188.9 million

from the 2020 Amended Budget. Of the amount, all $66.8 million is the projected

carry-forward grant funding to 2021, with no new grant funding. Operating grant

revenue is estimated to decrease $82.0 million while capital grant revenue is estimated

to decrease $106.9 million from the 2020 Amended Budget. The carryforward is

made up of final draws on the FFGA for the Eagle project and Small Starts funding for

SERE.

• Combined investment income is budgeted at $0 due to expectation of minimal investable

fund balances.

• Other operating income and other income totaling $16.7 million is budgeted to decrease

$1.7 million from the 2020 Amended Budget. This recurring miscellaneous revenue is

mostly increased at the CPI and includes advertising revenue, joint venture revenue,

parking income, rental income, third-party reimbursement, and other items. Included in

other income is the Build America bonds subsidy (FasTracks Project), payment by the

University of Colorado for naming rights on the A Line which discontinues in April

(FasTracks Operations), DUS rental income (Base System and FasTracks Operations), and

Greyhound rental income (Base System).

Operating expenditures are budgeted at $629.4 million on a combined basis in 2021 (excluding

depreciation), which is $103.8 million lower than the 2020 Amended Budget. Base System operating

expenses are budgeted to decrease $69.6 million, FasTracks Project operating expenses are budgeted to

decrease $4.0 million, and FasTracks Operations operating expenses are budgeted to decrease $30.2

million.

On the Base System, departmental operating expenses are targeted amounts derived from the 2021-

2022 Mid-Term Financial Plan, plus operating/expense projects carry-forward from 2020, and other

miscellaneous revisions unknown at the time of the MTFP.

The 2021 budget is reduced in the following areas: business travel, temporary employees, professional

dues, publications and subscriptions, employee referral and signing bonus, professional development

funds, Leadership Academy, MAX program, no pay increases for salaried employees, tiered furloughs for

salaried employees, salary reductions for some salaried employees, no increase in contribution to salaried

defined benefit plan, reduced contribution to salaried defined contribution plan, elimination of PTO and

sick buy-backs, elimination of overtime and extra shift pay, and reduction in personnel as appropriate to

reduced service levels.

For FasTracks Operations, operating expenses include full allocation from Base to FasTracks for costs of

operating FasTracks services, which is a full allocation including administrative and support costs, and

which totals $31.0 million for 2021. FasTracks Operations also includes a $58.1 million estimated

service payment to Denver Transit Operators for commuter rail operations.

The operating/expense project carry-forward to 2021 is $10.4 million for Base System, $0.09 million for

FasTracks Project, and $2.6 million for FasTracks Operations.

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Diesel fuel is budgeted at $2.03 per gallon, compared to a lock price of $2.00 per gallon in 2020.

Gasoline is budgeted at an average cost of $2.50/gallon in 2020, which is down from $2.90 in the

2020 budget. Total fuel usage will be lower in 2021 due to service reductions.

The major changes in operating expenses comparing the Recommended Budget to the posted Requested

Budget are shown in Attachment A. The majority of the changes from the initial Requested Budget

consist of carry-forward expense projects, various operating expense item reductions as detailed above,

new grant-funded expense projects, depreciation expense, and other minor items.

Interest expense in 2021 is budgeted at $175.7 million on a combined basis, an increase of $6.7 million

over the 2020 Amended Budget. Of total interest expense, $14.3 million is budgeted for Base System

and $161.4 million is budgeted for FasTracks. The increase is mainly due to interest beginning on the

TIFIA loan in 2021 for $10.7 million. FasTracks interest expense includes the TABOR interest expense

of $35.6 million.

Principal payments on debt will be $87.8 million on a combined basis, which is down $0.4 million from

the 2020 budget. Base System principal payments of $63.9 million are $1.9 million lower than the

2020 Amended Budget due to scheduled principal amortization on current debt and a refunding.

FasTracks principal payments of $23.9 million are $1.5 million higher than the 2020 Amended Budget

due to scheduled principal amortization on current debt offset by a refunding. The TABOR principal

payment of $10.7 million is included in the FasTracks debt payment. No new debt issuances are

planned in 2021 for either the Base System or FasTracks. Both will draw from previously issued debt to

fund major capital purchases and/or construction.

Capital expenditures are comprised of both the capital carry-forward from 2020 (previously approved

capital) arising from timing of project completion, and new capital for 2021. The capital carry-forward is

$452.2 million made up of $133.6 million on the Base System and $318.6 million on FasTracks.

New capital spending of $17.1 million on a combined basis will decrease $81.4 million from the 2020

Amended Budget. Base System new capital expenditures account for the entire $17.1 million,

consisting of the electric bus purchases project of $16.1 million funded by settlement funds, and $1.0

million in an innovative mobility project fully-funded by grants. FasTracks new capital expenditures are

estimated at zero. The Base System electric buses project was approved as part of the MTFP.

New capital expenditures for 2021 and the change in new capital in the 2021 Recommended Budget

over the 2021 Requested Budget are shown in Attachment B. The capital carry-forward expenditures

for 2021 and the change in the capital carry-forward in the 2021 Recommended Budget over the 2020

Amended Budget are shown in Attachment C.

Fund balance and reserve accounts include an increase of $43.7 million to the Base System unrestricted

year-end fund balance for a total fund balance of $83.4 million. The actual amount realized may be

lower or higher than projected due to lower or higher fare revenue and sales tax revenue in 2021, which

will become evident in the 2021 amended budget. Also on the Base System, the Board-appropriated

fund is budgeted at $26.2 million, the capital replacement fund is budgeted to remain at $0, and the

unrestricted operating reserve is budgeted to be unchanged at $15.4 million. The total of these fund

balances is budgeted at $125.0 million for the Base System.

In FasTracks Project and FasTracks Operations, the three key reserve funds (Board-appropriated, capital

replacement, and unrestricted fund) are maintained at 3 months of operating expenses and total $38.7

million in the 2021 budget. The FasTracks Internal Savings Account (FISA) is budgeted at $137.3

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million in 2021, an increase of $17.6 million. Other designated reserve funds (unrestricted) are

estimated at $164.8 million.

On a District-wide basis, the total of the Board-appropriated fund, the capital replacement fund, the

unrestricted operating reserve and the unrestricted fund balance is budgeted to increase $34.9 million

over the 2020 Amended Budget. These fund balances are maintained in accordance with fiscal policies

for the Base System, FasTracks Project and FasTracks Operations per Fund Balance Policy below.

Cost Recovery Ratio

The 2021 Recommended Budget meets the cost recovery ratio mandated by the Colorado General

Assembly. The estimated SB154 recovery ratio (all non-tax revenue except ADA farebox revenues

divided by all expenditures, including depreciation, except ADA expenditures and expenditures incurred

for long-term planning and development of rapid transit infrastructure) exceeds the annual target of 30%

mandated by the General Assembly.

Fund Balance Policy

The Fund Balance Policy for 2021 requires fund balances to consist of a Board-appropriated fund, a

capital replacement fund, and the remaining unrestricted year-end fund balance for both the Base

System and FasTracks, and an additional unrestricted operating reserve for the Base System. The

objective is for the total of these funds excluding the capital acquisition fund to equal approximately

three months of operating expenses excluding depreciation for both Base System and FasTracks. The

2021 budget reflects maintenance of the FISA at a level considered sufficient to fund adjustments to

FasTracks operations and maintenance.

On a District-wide basis, the total of these fund balances (excluding the FISA) for 2020 is projected at

$163.7 million, comprised of 1) the Board-appropriated fund of $39.1 million, 2) the capital replacement

fund of $12.9 million, 3) the unrestricted operating reserve of $15.4 million, and 4) the remaining

unrestricted year-end fund balance of $96.3 million. The Base System portion of these fund balances

listed for 2021 is projected to total $125.0 million. The total combined fund balances excluding the

FISA are projected to be 20.3% of budgeted District-wide operating expenses including interest expense

at the end of 2021.

Basis of Accounting Used in Budgeting

The accounts of the District are reported using the GAAP accrual basis of accounting with two

exceptions:

• Capital outlays and payments of bond principal are treated as expenditures.

• Gains and losses on disposal of property and equipment are excluded.

• The non-cash portion of the long-term unfunded pension accrual is excluded.

• Asset sale proceeds and debt issuance proceeds are included.

Attachments

As noted above, please refer to the attached Fiscal Year 2021 Recommended Budget and Fiscal Year

2021 Recommended Budget-Fund Balance (Exhibit I) which shows the operating/non-operating sources,

debt and reserves, and capital sources as well as operating uses, capital expenditures, and fund balances

of the District, and a reconciliation of net assets. Also attached is the Program Capital Summary

including previously approved capital, an Operating Budget Changes Since Posted Budget summary

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(Attachment A), a New Capital Projects summary (Attachment B), and Capital Carry-Forward

Expenditures (Attachment C).

FINANCIAL IMPACT

The 2021 Recommended Budget is balanced, and the total proposed current year appropriation for the

2021 Recommended Budget (combined Base and FasTracks) is $1.211 billion. This includes an

operating expense budget of $629.4 million, interest expense of $175.7 million, new capital

expenditures of $17.1 million, debt payments of $87.8 million, FasTracks Internal Savings Account of

$137.3 million, Board-appropriated fund of $39.1 million, capital replacement fund of $12.9 million,

unrestricted operating reserve of $15.4 million, and estimated unrestricted fund balance of $96.3

million. The previously approved capital (capital carry-forward) is $452.2 million. The sum of the

budget appropriation and capital carry-forward is $1.663 billion.

ATTACHMENTS:

• 2. Exhibit I (PDF)

• 3. Program Capital (PDF)

• 4. Attachment A (PDF)

• 5. Attachment B (PDF)

• 6. Attachment C (PDF)

• 7. Board Resolutions-2021 Adopted Budget (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Jannette Scarpino, Senior Manager, Budget and Financial Analysis

Approved by:

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Exhibit I

Regional Transportation District

Fiscal Year 2021 Recommended BudgetBase System (In Thousands)

BASE SYSTEM 2019 Actual

2020 Amended

Budget

2020

Projected

2021

Recommended

Budget

$ Change 2021

Recommended

Budget vs. 2020

Amended Budget

% Change 2021

Recommended

Budget vs. 2020

Amended Budget

Operating Revenue

Farebox Revenues1 111,269$ 65,677$ 65,677$ 60,961$ (4,716)$ -7.2%

Advertising Revenues 3,450 2,870 2,870 1,619 (1,251) -43.6%

Joint Venture Revenue2 (201) 1,002 1,002 1,027 25 2.5%

Other Operating Revenues 2,156 669 669 1,286 617 92.1%

Total Operating Revenue 116,674 70,218 70,218 64,893 (5,325) -7.6%

Operating Expenses (excluding Depreciation)

Bus Operations 182,671 168,651 168,651 127,095 (41,556) -24.6%

Rail Operations 67,792 76,850 76,850 69,157 (7,693) -10.0%

Private Carrier Operations 94,315 119,154 119,154 93,117 (26,037) -21.9%

Access-a-Ride 45,362 46,602 46,602 35,960 (10,642) -22.8%

Planning 6,359 10,668 10,668 4,790 (5,878) -55.1%

Capital Programs & Facilities 52,527 54,642 54,642 44,866 (9,776) -17.9%

Safety, Security & Asset Management 24,840 26,581 26,581 24,573 (2,008) -7.6%

General Counsel 15,763 17,111 17,111 16,243 (868) -5.1%

Finance & Administration 53,400 54,892 54,892 47,591 (7,301) -13.3%

Communications 12,557 14,604 14,604 13,565 (1,039) -7.1%

Executive Office 6,809 6,647 6,647 9,986 3,339 50.2%

Board Office 878 1,192 1,192 891 (301) -25.3%

Other Non-Departmental 9,830 7,203 7,203 27,013 19,810 275.0%

Less: FasTracks Service Increases (18,860) (19,342) (19,342) (19,826) (484) 2.5%

Allocated Expenditures (61,935) (41,479) (41,479) (31,033) 10,446 -25.2%

Expense Projects Carry-forward - - (10,421) 10,421 10,421 0.0%

Total Operating Expenses (excluding Depreciation) 492,308 543,976 533,555 474,409 (69,567) -12.8%

Operating Income/(Loss) (375,634) (473,758) (463,337) (409,516) 64,242 -13.6%

Non-Operating RevenuesSales Tax 362,875 272,449 327,435 357,278 84,829 31.1%

Use Tax 32,775 28,124 34,234 35,747 7,623 27.1%

Grant Revenue - Operating 86,905 237,930 237,930 89,461 (148,469) -62.4%

Grant Revenue - Capital3

9,783 59,089 55,473 29,049 (30,040) -50.8%

Investment Income 7,894 704 704 - (704) -100.0%

Other Income/Gain & Loss 13,169 3,392 3,392 3,170 (222) -6.5%

Total Non-Operating Revenues 513,401 601,688 659,168 514,705 (86,983) -14.5%

Income Before Debt Service and Cap Ex 137,767 127,929 195,830 105,189 (22,741) -17.8%

Debt and ReservesDebt Payments (65,859) (65,793) (65,793) (63,931) 1,862 -2.8%

Interest Expense (17,843) (16,760) (16,760) (14,340) 2,420 -14.4%

Financing Proceeds - - - - - 0.0%

Drawdown/(Increase) in Capital Replacement Reserve - - - - - 0.0%

Contributed Capital - - - - - 0.0%

Increase / (Decrease) in Debt and Reserves (83,702) (82,553) (82,553) (78,271) 4,282 -5.2%

Capital ExpendituresPrior Year Approved Capital Carryforward 56,693 109,915 109,915 133,626 23,711 21.6%

Facilities Construction & Maintenance - 6,552 6,552 - (6,552) -100.0%

Bus Infrastructure - - - - - 0.0%

Park-n-Rides - - - - - 0.0%

Capital Support Projects - 3,584 3,584 - (3,584) -100.0%

Rail Construction - 1,282 1,282 - (1,282) -100.0%

Rail Transit - 1,282 1,282 - (1,282) -100.0%

Fleet Modernization & Expansion - 20,504 20,504 16,076 (4,428) -21.6%

Capital Support Equipment - 933 933 1,023 90 9.6%

Treasury - 5,155 5,155 - (5,155) -100.0%

Systems Planning - - - - - 0.0%

Unallocated Capital - - - - - 0.0%

Net Capital Expenditures 56,693 149,207 149,207 150,725 1,518 1.0%

Current Activity (2,628)$ (103,831)$ (35,930)$ (123,807)$ (19,977)$ 19.2%

Notes:1 Farebox revenues include passenger fares for regular route services, special service fares, and farebox revenues collected and retained by private carriers under contract to RTD.

2 Joint venture revenues include contributions from local entities to provide local match for CMAQ grants for specific services. Joint venture revenues also include contributions from the City of Boulder to maintain the level of service on the

JUMP, BOUND, and STAMPEDE above the level required by RTD's Route Service Standards.3 Federal grant revenues include grants awarded in the current year in addition to carry-forward grant awards.

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Exhibit I

Regional Transportation District

Fiscal Year 2021 Recommended BudgetFasTracks Project (In Thousands)

FASTRACKS PROJECT 2019 Actual

2020 Amended

Budget

2020

Projected

2021

Recommended

Budget

$ Change 2021

Recommended

Budget vs. 2020

Amended Budget

% Change 2021

Recommended

Budget vs. 2020

Amended Budget

Operating RevenueFarebox Revenues -$ -$ -$ -$ -$ 0.0%

Other Operating Revenues - - - - - 0.0%

Total Operating Revenue - - - - - 0.0%

Operating Expenses (excluding Depreciation)

Planning 365 747 747 2,249 1,502 201.1%

Capital Programs & Facilities 8,985 7,045 7,045 1,865 (5,180) -73.5%

General Counsel 232 - - - - 0.0%

Finance & Administration 147 198 198 - (198) -100.0%

Communications - 789 789 - (789) -100.0%

Other Non-Departmental 1,016 227 227 760 533 234.8%

Service Increases 18,860 - - - - 0.0%

Expense Projects Carry-forward - - (99) 99 99 0.0%

Total Operating Expenses (excluding Depreciation) 29,605 9,006 8,907 4,973 (4,033) -44.8%

Operating Income/(Loss) (29,605) (9,006) (8,907) (4,973) 4,033 -44.8%

Non-Operating RevenuesSales Tax 148,314 46,262 82,919 134,772 88,510 191.3%

Use Tax 13,378 3,708 7,781 13,603 9,895 266.9%

Grant Revenue - Operating (642) 83,639 82,000 1,639 (82,000) -98.0%

Grant Revenue - Capital2

110,999 171,999 106,866 65,133 (106,866) -62.1%

Investment Income 9,775 3,044 3,044 - (3,044) -100.0%

Other Income 11,030 8,274 8,274 8,319 45 0.5%

Total Non-Operating Revenues 292,854 316,926 290,884 223,467 (93,459) -29.5%

Income Before Debt Service and Cap Ex 263,249 307,920 281,977 218,494 (89,426) -29.0%

Debt and ReservesDebt Payments (80,816) (22,381) (22,381) (23,860) (1,479) 6.6%

Interest Expense (183,742) (152,217) (152,217) (161,384) (9,167) 6.0%

Financing Proceeds 93,030 - - - - 0.0%

Drawdown/(Increase) in FasTracks Debt Service Reserve - - - - - 0.0%

Drawdown/(Increase) in FasTracks Construction Reserve - - - - - 0.0%

Drawdown/(Increase) in FasTracks Internal Savings Account - (16,101) (16,101) (17,658) (1,557) 9.7%

Drawdown/(Increase) in FasTracks Management Reserve - - - - - 0.0%

Contributed Capital1

3,704 79,025 24,659 54,366 (24,659) -31.2%

Increase / (Decrease) in Debt and Reserves (167,824) (111,674) (166,040) (148,536) (36,862) 33.0%

Capital ExpendituresPrior Year Approved Capital Carryforward 259,223 340,541 340,541 318,598 (21,943) -6.4%

Fastracks Program - 59,179 59,179 - (59,179) -100.0%

Net Capital Expenditures 259,223 399,720 399,720 318,598 (81,122) -20.3%

Current Activity (163,798)$ (203,474)$ (283,783)$ (248,640)$ (45,166)$ 22.2%

Notes:

2 Federal grant revenues include grants awarded in the current year in addition to carry-forward grant awards.

1 Includes project third party capital

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Exhibit I

Regional Transportation District

Fiscal Year 2021 Recommended BudgetFasTracks Operations (In Thousands)

FASTRACKS OPERATIONS 2019 Actual

2020 Amended

Budget

2020

Projected

2021

Recommended

Budget

$ Change 2021

Recommended

Budget vs. 2020

Amended Budget

% Change 2021

Recommended

Budget vs. 2020

Amended Budget

Operating RevenueFarebox Revenues 43,121$ 28,147$ 28,147$ 27,501$ (646)$ -2.3%

Advertising Revenues 1,032 530 530 421 (109) -20.6%

Other Operating Revenues 115 442 442 453 11 2.5%

Total Operating Revenue 44,268 29,119 29,119 28,375 (744) -2.6%

Operating Expenses (excluding Depreciation)

Rail Operations 71,572 98,873 98,873 77,866 (21,007) -21.2%

Capital Programs & Facilities 818 7,153 7,153 6,698 (455) -6.4%

Safety, Security & Asset Management 9,110 12,923 12,923 11,911 (1,012) -7.8%

Finance & Administration - - - - - 0.0%

Communications 700 796 796 57 (739) -92.8%

Non-Departmental - (362) (362) - 362 -100.0%

Service Increases - 19,342 19,342 19,826 484 2.5%

Allocated Expenditures 38,502 41,479 41,479 31,033 (10,446) -25.2%

Expense Projects Carry-forward - - (2,615) 2,615 2,615 0.0%

Total Operating Expenses (excluding Depreciation) 120,702 180,204 177,589 150,006 (30,198) -16.8%

Operating Income/(Loss) (76,434) (151,085) (148,470) (121,631) 29,454 -19.5%

Non-Operating RevenuesSales Tax 93,603 135,371 135,371 103,413 (31,958) -23.6%

Use Tax 8,472 15,041 15,041 10,228 (4,813) -32.0%

Grant Revenue - Operating - - - - - 0.0%

Grant Revenue - Capital - - - - - 0.0%

Investment Income - - - - 0.0%

Other Income 10 1,303 1,303 442 (861) -66.1%

Total Non-Operating Revenues 102,085 151,715 151,715 114,083 (37,632) -24.8%

Income Before Debt Service and Cap Ex 25,651 630 3,245 (7,548) (8,178) -1297.7%

Debt and ReservesDebt Payments - - - - - 0.0%

Interest Expense - - - - - 0.0%

Financing Proceeds - - - - - 0.0%

Drawdown/(Increase) in FasTracks Construction Reserve - - - - - 0.0%

Contributed Capital - - - - - 0.0%

Increase / (Decrease) in Debt and Reserves - - - - - 0.0%

Capital ExpendituresPrior Year Approved Capital Carryforward - - - - - 0.0%

Fastracks Program - - - - - 0.0%

Net Capital Expenditures - - - - - 0.0%

Current Activity 25,651$ 630$ 3,245$ (7,548)$ (8,178)$ -1297.7%

Notes:

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Exhibit I

Regional Transportation District

Fiscal Year 2021 Recommended Budget

Combined (In Thousands)

COMBINED 2019 Actual

2020 Amended

Budget

2020

Projected

2021

Recommended

Budget

$ Change 2021

Recommended

Budget vs. 2020

Amended Budget

% Change 2021

Recommended

Budget vs. 2020

Amended Budget

Operating RevenueFarebox Revenues 154,390$ 93,824$ 93,824$ 88,462$ (5,362)$ -5.7%

Advertising Revenues 4,482 3,400 3,400 2,040 (1,360) -40.0%

Joint Venture Revenue (201) 1,002 1,002 1,027 25 2.5%

Other Operating Revenues 2,271 1,111 1,111 1,739 628 56.5%

Total Operating Revenue 160,942 99,337 99,337 93,268 (6,069) -6.1%

Operating Expenses (excluding Depreciation)

Bus Operations 182,671 168,651 168,651 127,095 (41,556) -24.6%

Rail Operations 139,364 175,723 175,723 147,023 (28,700) -16.3%

Private Carrier Operations 94,315 119,154 119,154 93,117 (26,037) -21.9%

Access-a-Ride 45,362 46,602 46,602 35,960 (10,642) -22.8%

Planning 6,724 11,415 11,415 7,039 (4,376) -38.3%

Capital Programs & Facilities 62,330 68,840 68,840 53,429 (15,411) -22.4%

Safety, Security & Asset Management 33,950 39,504 39,504 36,484 (3,020) -7.6%

General Counsel 15,995 17,111 17,111 16,243 (868) -5.1%

Finance & Administration 53,547 55,090 55,090 47,591 (7,499) -13.6%

Communications 13,257 16,189 16,189 13,622 (2,567) -15.9%

Executive Office 6,809 6,647 6,647 9,986 3,339 50.2%

Board Office 878 1,192 1,192 891 (301) -25.3%

Other Non-Departmental 10,846 7,068 7,068 27,773 20,705 292.9%

FasTracks Service Increases - - - - - 0.0%

Allocated Expenditures (23,433) - - - - 0.0%

Expense Projects Carry-forward - - (13,135) 13,135 13,135 0.0%

Total Operating Expenses (excluding Depreciation) 642,615 733,186 720,051 629,388 (103,798) -14.2%

Operating Income/(Loss) (481,673) (633,849) (620,714) (536,120) 97,729 -15.4%

Non-Operating RevenuesSales Tax 604,792 454,082 545,725 595,463 141,381 31.1%

Use Tax 54,625 46,873 57,056 59,579 12,706 27.1%

Grant Revenue - Operating 86,263 321,569 319,930 91,100 (230,469) -71.7%

Grant Revenue - Capital 120,782 231,088 162,339 94,182 (136,906) -59.2%

Investment Income 17,669 3,748 3,748 - (3,748) -100.0%

Other Income 24,209 12,969 12,969 11,931 (1,038) -8.0%

Total Non-Operating Revenues 908,340 1,070,328 1,101,766 852,254 (218,074) -20.4%

Income Before Debt Service and Cap Ex 426,667 436,479 481,052 316,134 (120,345) -27.6%

Debt and ReservesDebt Payments (146,675) (88,174) (88,174) (87,791) 383 -0.4%

Interest Expense (201,585) (168,977) (168,977) (175,724) (6,747) 4.0%

Financing Proceeds 93,030 - - - - 0.0%

Drawdown/(Increase) in Capital Replacement Reserve - - - - - 0.0%

Drawdown/(Increase) in FasTracks Debt Service Reserve - - - - - 0.0%

Drawdown/(Increase) in FasTracks Construction Reserve - - - - - 0.0%

Drawdown (Increase) in FasTracks Internal Savings Account - (16,101) (16,101) (17,658) (1,557) 9.7%

Drawdown/(Increase) in FasTracks Management Reserve - - - - 0.0%

Contributed Capital 3,704 79,025 24,659 54,366 (24,659) -31.2%

Increase / (Decrease) in Debt and Reserves (251,526) (194,227) (248,593) (226,807) (32,580) 16.8%

Capital ExpendituresPrior Year Approved Capital Carryforward 315,916 450,456 450,456 452,224 1,768 0.4%

Facilities Construction & Maintenance - 6,552 6,552 - (6,552) -100.0%

Bus Infrastructure - - - - - 0.0%

Park-n-Rides - - - - - 0.0%

Capital Support Projects - 3,584 3,584 - (3,584) -100.0%

Rail Construction - 1,282 1,282 - (1,282) -100.0%

Rail Transit - 1,282 1,282 - (1,282) -100.0%

Fleet Modernization & Expansion - 20,504 20,504 16,076 (4,428) -21.6%

Capital Support Equipment - 933 933 1,023 90 9.6%

Treasury - 5,155 5,155 - (5,155) -100.0%

Systems Planning - - - - - 0.0%

Unallocated Capital - - - - - 0.0%

Fastracks Program - 59,179 59,179 - (59,179) -100.0%

Net Capital Expenditures 315,916 548,927 548,927 469,323 (79,604) -14.5%

Current Activity (140,775)$ (306,675)$ (316,468)$ (379,996)$ (73,321)$ 23.9%

Notes:

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Exhibit I

NET POSITION 2019 Actual

2020 Amended

Budget

2020

Projected

2021

Recommended

Budget

$ Change 2021

Recommended

Budget vs. 2020

Amended Budget

% Change 2021

Recommended

Budget vs. 2020

Amended Budget

BASE SYSTEMBEGINNING NET POSITION 680,586$ 711,826$ 711,826$ 979,020$ 267,194$ 37.5%

Income Before Debt Service and Cap Ex 137,767 127,929 195,830 105,189 (22,741) -17.8%

Debt and Reserves (83,702) (82,553) (82,553) (78,271) 4,282 -5.2%

Net Capital Expenditures (56,693) (149,207) (149,207) (150,725) (1,518) 1.0%

Current Activity (2,628) (103,831) (35,930) (123,807) (19,977) 19.2%

Depreciation and Amortization (115,198) (109,453) (109,453) (103,122) 6,331 -5.8%

Other 1

149,066 583,116 412,577 272,592 (310,524) -53.3%

Total Change in Net Position 31,240 369,832 267,194 45,663 (324,170) -87.7%

ENDING NET POSITION 711,826$ 1,081,658$ 979,020$ 1,024,683$ (56,975)$ -5.3%

NET POSITION

Net Investment in Capital Assets 915,680 955,434 807,453 855,056 (100,378) -10.5%

Nonspendable Net Assets 915,680 955,434 807,453 855,056 (100,378) -10.5%

Debt Service Reserves2

32,900 31,984 31,984 29,290 (2,694) -8.4%

Other Designated Reserves2

1,503 1,504 1,504 1,504 - 0.0%

Tabor Reserve 16,051 11,247 13,079 13,833 2,586 23.0%

Restricted Net Position 50,454 44,735 46,567 44,627 (108) -0.2%

FasTracks Internal Savings Account (FISA) - - - - - 0.0%

Net Pension Liability (298,082) - - - - 0.0%

Board Appropriated Fund 23,400 26,400 26,200 26,200 (200) -0.8%

Capital Replacement Fund - - - - - 0.0%

Unrestricted Operating Reserve 15,400 15,400 15,400 15,400 - 0.0%

Unrestricted Fund 4,974 39,689 83,400 83,400 43,711 110.1%

Unrestricted Net Position (254,308) 81,489 125,000 125,000 43,511 53.4%

TOTAL NET POSITION 711,826$ 1,081,658$ 979,020$ 1,024,683$ (56,975)$ -5.3%

FASTRACKS PROJECTBEGINNING NET POSITION 2,690,652$ 2,533,475$ 2,533,475$ 3,299,479$ 766,004$ 30.2%

Income Before Debt Service and Cap Ex 263,249 307,920 281,977 218,494 (89,426) -29.0%

Debt and Reserves (167,824) (111,674) (166,040) (148,536) (36,862) 33.0%

Net Capital Expenditures (259,223) (399,720) (399,720) (318,598) 81,122 -20.3%

Current Activity (163,798) (203,474) (283,783) (248,640) (45,166) 22.2%

Depreciation and Amortization (240,219) (244,331) (244,331) (222,274) 22,057 -9.0%

Other 1

243,136 1,232,880 1,269,459 483,308 (749,572) -60.8%

Contributed Capital & Deferred Interest 3,704 79,025 24,659 54,366 (24,659) -31.2%

Total Change in Net Position (157,177) 864,100 766,004 66,760 (797,340) -92.3%

ENDING NET POSITION 2,533,475$ 3,397,575$ 3,299,479$ 3,366,238$ (31,336)$ -0.9%

NET POSITION

Net Investment in Capital Assets 2,119,115 3,011,785 2,878,339 2,974,663 (37,122) -1.2%

Nonspendable Net Assets 2,119,115 3,011,785 2,878,339 2,974,663 (37,122) -1.2%

Debt Service Reserves2

84,904 81,444 81,444 83,532 2,088 2.6%

Other Designated Reserves2

228,291 179,718 179,718 164,796 (14,922) -8.3%

Tabor Reserve 4,387 1,839 1,839 4,701 2,862 155.6%

FasTracks Management Reserve3

890 890 890 - (890) -100.0%

FasTracks Construction Reserve4

- - - - - 0.0%

Restricted Net Position 318,472 263,891 263,891 253,029 (10,862) -4.1%

FasTracks Internal Savings Account (FISA) 92,084 119,646 119,646 137,304 17,658 14.8%

Net Pension Liability - - - - 0.0%

Board Appropriated Fund 1,268 751 1,001 414 (337) -44.9%

Capital Replacement Fund 1,268 751 1,001 414 (337) -44.9%

Unrestricted Fund 1,268 751 35,601 414 (337) -44.9%

Unrestricted Net Position 95,888 121,899 157,249 138,546 16,647 13.7%

TOTAL NET POSITION 2,533,475$ 3,397,575$ 3,299,479$ 3,366,238$ (31,336)$ -0.9%

Notes:

Regional Transportation DistrictFiscal Year 2021 Recommended Budget - Fund Balance

Base System and FasTracks (In Thousands)

1 Reconciling items reflect cash activity in capital projects, inventory, accounts receivable and prepaids, accruals and capitalized interest.

2 Reserves include funds that are legally restricted by bond covenants, other contracts, Board designation and policy guidelines.

3 Reserves are an appropriated reserve which is available to fund unforseen projects expenses (such as a contingency reserve).

4 Reserves respresent revenues that are designated to be spent in future years for the construction of the FasTracks capital program.

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Exhibit I

NET POSITION 2019 Actual

2020 Amended

Budget

2020

Projected

2021

Recommended

Budget

$ Change 2021

Recommended

Budget vs. 2020

Amended Budget

% Change 2021

Recommended

Budget vs. 2020

Amended Budget

FASTRACKS OPERATIONSBEGINNING NET POSITION 30,240$ 55,891$ 55,891$ 49,822$ (6,069)$ -10.9%

Income Before Debt Service and Cap Ex 25,651 630 3,245 (7,548) (8,178) -1297.7%

Debt and Reserves - - - - - 0.0%

Net Capital Expenditures - - - - - 0.0%

Current Activity 25,651 630 3,245 (7,548) (8,178) -1297.7%

Depreciation and Amortization - - - - - 0.0%

Other 1

(6,045) (9,314) (497) 5,548 -91.8%

Contributed Capital - - - - - 0.0%

Total Change in Net Position 25,651 (5,415) (6,069) (8,045) (2,630) 48.6%

ENDING NET POSITION 55,891$ 50,476$ 49,822$ 41,777$ (8,699)$ -17.2%

NET POSITION

Net Investment in Capital Assets - - - - - 0.0%

Nonspendable Net Assets - - - - - 0.0%

Debt Service Reserves2

- - - - - 0.0%

Other Designated Reserves2

5,954 - - - - 0.0%

Tabor Reserve 5,503 5,425 5,425 4,274 (1,151) -21.2%

FasTracks Construction Reserve4

- - - - - 0.0%

Restricted Net Position 11,457 5,425 5,425 4,274 (1,151) -21.2%

FasTracks Internal Savings Account (FISA) - - - - - 0.0%

Net Pension Liability - - - - - 0.0%

Board Appropriated Fund 14,811 15,017 14,799 12,501 (2,516) -16.8%

Capital Replacement Fund 14,811 15,017 14,799 12,501 (2,516) -16.8%

Unrestricted Fund 14,811 15,017 14,799 12,501 (2,516) -16.8%

Unrestricted Net Position 44,433 45,051 44,397 37,503 (7,548) -16.8%

TOTAL NET POSITION 55,891$ 50,476$ 49,822$ 41,777$ (8,699)$ -17.2%

COMBINEDBEGINNING NET POSITION 3,401,478$ 3,301,192$ 3,301,192$ 4,328,321$ 1,027,129$ 31.1%

Income Before Debt Service and Cap Ex 426,667 436,479 481,052 316,134 (120,345) -27.6%

Debt and Reserves (251,526) (194,227) (248,593) (226,807) (32,580) 16.8%

Net Capital Expenditures (315,916) (548,927) (548,927) (469,323) 79,604 -14.5%

Current Activity (140,775) (306,675) (316,468) (379,996) (73,321) 23.9%

Depreciation and Amortization (355,417) (353,784) (353,784) (325,396) 28,388 -8.0%

Other 1

392,202 1,809,951 1,672,722 755,403 (1,054,548) -58.3%

Contributed Capital & Deferred Interest 3,704 79,025 24,659 54,366 (24,659) -31.2%

Total Change in Net Position (100,286) 1,228,517 1,027,129 104,377 (1,124,140) -91.5%

ENDING NET POSITION 3,301,192$ 4,529,709$ 4,328,321$ 4,432,699$ (97,011)$ -2.1%

NET POSITION

Net Investment in Capital Assets 3,034,795 3,967,219 3,685,792 3,829,719 (137,500) -3.5%

Nonspendable Net Assets 3,034,795 3,967,219 3,685,792 3,829,719 (137,500) -3.5%

Debt Service Reserves2

117,804 113,428 113,428 112,822 (606) -0.5%

Other Designated Reserves2

235,748 181,222 181,222 166,300 (14,922) -8.2%

Tabor Reserve 25,941 18,511 20,343 22,808 4,297 23.2%

FasTracks Management Reserve3

890 890 890 - (890) -100.0%

FasTracks Construction Reserve4

- - - - - 0.0%

Restricted Net Position 380,383 314,051 315,883 301,930 (12,121) -3.9%

FasTracks Internal Savings Account (FISA) 92,084 119,646 119,646 137,304 17,658 14.8%

Net Pension Liability (298,082) - - - - 0.0%

Board Appropriated Fund 39,479 42,168 42,000 39,115 (3,053) -7.2%

Capital Replacement Fund 16,079 15,768 15,800 12,915 (2,853) -18.1%

Unrestricted Operating Reserve 15,400 15,400 15,400 15,400 - 0.0%

Unrestricted Fund 21,053 55,457 133,800 96,315 40,858 73.7%

Unrestricted Net Position (113,987) 248,439 326,646 301,049 52,610 21.2%

TOTAL NET POSITION 3,301,192$ 4,529,709$ 4,328,321$ 4,432,699$ (97,011)$ -2.1%

Notes:

Fiscal Year 2021 Recommended Budget - Fund Balance

Regional Transportation District

Combined (In Thousands)

1 Reconciling items reflect cash activity in capital projects, inventory, accounts receivable and prepaids, accruals and capitalized interest.

2 Reserves include funds that are legally restricted by bond covenants, other contracts, Board designation and policy guidelines.

3 Reserves are an appropriated reserve which is available to fund unforseen projects expenses (such as a contingency reserve).

4 Reserves respresent revenues that are designated to be spent in future years for the construction of the FasTracks capital program.

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PROGRAM CAPITAL

2021 ADOPTED BUDGET 2021 ADOPTED BUDGET

PRIOR PERIOD CAPITAL CARRYFORWARD NEW CAPITAL

CAPITAL PROGRAM BY PROJECT Project LOCAL FEDERAL TOTAL LOCAL FEDERAL TOTAL LOCAL FEDERAL TOTAL

FASTRACKS

COMMUTER RAIL MAINTENANCE FACILITY 70003 2,433,747 3,730,862 6,164,609 - - - 2,433,747 3,730,862 6,164,609

CRMF TO PECOS 70036 73,663 - 73,663 - - - 73,663 - 73,663

DENVER UNION STATION-OVERSIGHT 70030 5,533,841 - 5,533,841 - - - 5,533,841 - 5,533,841

DOWNTOWN CIRCULATOR 70041 3,371 - 3,371 - - - 3,371 - 3,371

DUS ELECTRIFICATION 70037 12,241,389 - 12,241,389 - - - 12,241,389 - 12,241,389

DUS SYSTEMS-EAGLE 70040 129 - 129 - - - 129 - 129

DUS TO CRMF CORRIDOR 70020 2,880,811 - 2,880,811 - - - 2,880,811 - 2,880,811

EAST CORRIDOR 70010 952,529 91,364,904 92,317,433 - - - 952,529 91,364,904 92,317,433

FASTRACKS ADMIN PROJECTS 70001 6,647,601 - 6,647,601 - - - 6,647,601 - 6,647,601

FASTRACKS CONTINGENCY 70039 1,500,000 - 1,500,000 - - - 1,500,000 - 1,500,000

GOLD LINE 70016 9,470,778 18,779,884 28,250,662 - - - 9,470,778 18,779,884 28,250,662

I-225 CORRIDOR 70019 7,507,365 - 7,507,365 - - - 7,507,365 - 7,507,365

I-225 LRT VEHICLE STORAGE TRACKS 70055 1,876,351 - 1,876,351 - - - 1,876,351 - 1,876,351

I-225 THIRD PARTY BETTERMENTS 70044 1 - 1 - - - 1 - 1

LONGMONT STATION 70048 16,491,712 - 16,491,712 - - - 16,491,712 - 16,491,712

NORTH METRO 70018 1,821,825 - 1,821,825 - - - 1,821,825 - 1,821,825

NORTH METRO COP 70059 56,586,541 - 56,586,541 - - - 56,586,541 - 56,586,541

NORTH METRO NON COP 70058 27,389,575 - 27,389,575 - - - 27,389,575 - 27,389,575

NORTH METRO O&M INTERFACE 70061 4,375,758 - 4,375,758 - - - 4,375,758 - 4,375,758

NORTH METRO MOBILIZATION 70063 10,375,876 - 10,375,876 - - - 10,375,876 - 10,375,876

NORTHWEST RAIL 70007 10,513,254 - 10,513,254 - - - 10,513,254 - 10,513,254

P.P.P. PREPARATION 70026 250,000 - 250,000 - - - 250,000 - 250,000

PEORIA INTERFACE COORDINATION 70056 749,544 - 749,544 - - - 749,544 - 749,544

SOUTHEAST CORRIDOR EXTENSION 70024 11,623,598 5,213,516 16,837,114 - - - 11,623,598 5,213,516 16,837,114

U.S. 36 B.R.T. PHASE 2 70009 5,920,909 - 5,920,909 - - - 5,920,909 - 5,920,909

FLATIRON FLYER POST-OPENING VEHICLE 70064 423,991 - 423,991 - - - 423,991 - 423,991

WEST CNPA STIMULUS FUNDING 70027 253,466 - 253,466 - - - 253,466 - 253,466

WEST LINE EQUIPMENT FOR FM 70051 107,214 - 107,214 - - - 107,214 - 107,214

WEST LINE PIDS ELECTRONIC SIGNS 70052 30,419 - 30,419 - - - 30,419 - 30,419

WEST PARKING GARAGE 70033 1,474,033 - 1,474,033 - - - 1,474,033 - 1,474,033

TOTAL FASTRACKS 199,509,291 119,089,166 318,598,457 - - - 199,509,291 119,089,166 318,598,457

FACILITIES CONSTRUCTION & MAINTENANCEDISTRICT SHOPS

ELEVATORS (3) REPLACEMENT 11907 421,320 - 421,320 - - - 421,320 - 421,320

ENGINE STAND 11823 40,000 - 40,000 - - - 40,000 - 40,000

HVAC 601 REPLACEMENT IN UPHOLSTRY SHOP 11909 41,104 - 41,104 - - - 41,104 - 41,104

WATER JET CUTTER 11804 23,401 - 23,401 - - - 23,401 - 23,401

SUBTOTAL - DISTRICT SHOPS 525,825 - 525,825 - - - 525,825 - 525,825

PLATTE

CHARGING INFRASTRUCTURE FOR ELECTRIC BUSES 12007 1,230,668 - 1,230,668 - - - 1,230,668 - 1,230,668

FIRE PROTECTION UPGRADES - ALARM PANEL 11910 619,654 - 619,654 - - - 619,654 - 619,654

PARTICULATE SENSORS REPLACEMENT WITH CO NO2 SENSORS 11911 205,522 - 205,522 - - - 205,522 - 205,522

ROOF REPLACEMENT@PLATTE 11912 4,887,401 - 4,887,401 - - - 4,887,401 - 4,887,401

SUBTOTAL - PLATTE 6,943,245 - 6,943,245 - - - 6,943,245 - 6,943,245

OTHER PROJECTS

BLAKE COOLING SYSTEM 10374 - - - - - - - - -

BLAKE ENTRYWAY REMODEL 11613 34,918 - 34,918 - - - 34,918 - 34,918

EXPANSION @ CUSTOMER CARE TELEPHONE CTR 11607 - - - - - - - - -

DUS ROOF REPLACEMENT 10078 - - - - - - - - -

FIRE PROTECTION FOR ZEE & SCC FACILITIES 11706 253,331 - 253,331 - - - 253,331 - 253,331

HVAC UNIT REPLACEMENT - SCC FACILITIES 11913 270,262 - 270,262 - - - 270,262 - 270,262

MEZZANINE ADDITION FOR OPERATOR TRAINING - ELATI 11818 1,701,150 - 1,701,150 - - - 1,701,150 - 1,701,150

REDUNDANT COOLING TOWER-POST BLDG. 10249 - - - - - - - - -

SUBTOTAL - OTHER PROJECTS 2,259,661 - 2,259,661 - - - 2,259,661 - 2,259,661

TOTAL FACILITIES CONSTRUCTION & MAINTENANCE 9,728,731 - 9,728,731 - - - 9,728,731 - 9,728,731

TRANSFER STATIONSOTHER

CIVIC CENTER STATION REBUILD 10409 11,175 - 11,175 - - - 11,175 - 11,175

NINE MILE STATION DRIVER RELIEF STATION 12008 482,339 - 482,339 - - - 482,339 - 482,339

SUBTOTAL - OTHER 493,514 - 493,514 - - - 493,514 - 493,514

TOTAL TRANSFER STATIONS 493,514 - 493,514 - - - 493,514 - 493,514

PARK - N - RIDESHWY 287 & NIWOT RD 10364 (264,371) 564,000 299,629 - - - (264,371) 564,000 299,629

STAPLETON 10094 313,909 - 313,909 - - - 313,909 - 313,909

THORNTON PNR EXPANSION 10414 5,180 20,720 25,900 - - - 5,180 20,720 25,900

THORNTON PNR PLAZA UPGRADES 11806 296,910 308,000 604,910 - - - 296,910 308,000 604,910

LAFAYETTE PNR RECONSTRUCTION 11601 1,231,100 - 1,231,100 - - - 1,231,100 - 1,231,100

WESTMINSTER CENTER PNR SOUTHSIDE 11602 418,345 1,500,000 1,918,345 - - - 418,345 1,500,000 1,918,345

TOTAL PARK-N-RIDES 2,001,073 2,392,720 4,393,792 - - - 2,001,073 2,392,720 4,393,792

2021 ADOPTED BUDGET

TOTAL CAPITAL

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PRIOR PERIOD CAPITAL CARRYFORWARD NEW CAPITAL

CAPITAL PROGRAM BY PROJECT Project LOCAL FEDERAL TOTAL LOCAL FEDERAL TOTAL LOCAL FEDERAL TOTAL

2021 ADOPTED BUDGET

TOTAL CAPITAL

CAPITAL SUPPORT PROJECTSOTHER

16TH STREET MALL PAVER REPAIR 10369 1,251,919 13,824,234 15,076,153 - - - 1,251,919 13,824,234 15,076,153

BLANK OUT SCREENS - WELTON STREET 11808 1,672,932 1,500,000 3,172,932 - - - 1,672,932 1,500,000 3,172,932

SH119 BUS RAPID TRANSIT - ENVIRONMENTAL 11612 97,134 388,534 485,668 - - - 97,134 388,534 485,668

COLFAX AVE./TRANSIT PRIORITY PROJ. FTA LOP 11609 (3,156,040) 6,771,674 3,615,634 - - - (3,156,040) 6,771,674 3,615,634

SUBTOTAL - OTHER (134,055) 22,484,442 22,350,387 - - - (134,055) 22,484,442 22,350,387

TOTAL CAPITAL SUPPORT PROJECTS (134,055) 22,484,442 22,350,387 - - - (134,055) 22,484,442 22,350,387

LRT CONSTRUCTION

DOWNTOWN TRACK & SWITCHES REPLACEMENT 11707 87,778 351,111 438,888 - - - 87,778 351,111 438,888

OCS WIRE REPLACEMENT ON CENTRAL RAIL LINE 11905 385,354 - 385,354 - - - 385,354 - 385,354

RAIL REPLACEMENT @ CENTRAL CORRIDOR 11809 2,250,434 1,150,000 3,400,434 - - - 2,250,434 1,150,000 3,400,434

TOTAL LRT CONSTRUCTION 2,723,565 1,501,111 4,224,676 - - - 2,723,565 1,501,111 4,224,676

RAIL TRANSIT

CAB SIGNALING ON LRVS 11803 3,015,588 - 3,015,588 - - - 3,015,588 - 3,015,588

HEAVY EQUIPMENT FOR LR MAINTENANCE 10395 1,162,479 - 1,162,479 - - - 1,162,479 - 1,162,479

LRV PURCHASE OF 27 VEHICLES 10424 16,687,414 - 16,687,414 - - - 16,687,414 - 16,687,414

MAINT MGMT(MAXIMUS/OPTRAM) 10169 559 - 559 - - - 559 - 559

POWER SWITCHING ON EMERGENCY CROSSOVERS 10393 32,587 446,609 479,196 - - - 32,587 446,609 479,196

SUBSTATION PLC UPGRADE 10426 1,702,849 - 1,702,849 - - - 1,702,849 - 1,702,849

PENTA PA/VMS UPGRADES 11917 806,990 - 806,990 - - - 806,990 - 806,990

YARD ELECTRIC SWITCH HEATERS MARIPOSA 10363 32,630 - 32,630 - - - 32,630 - 32,630

TOTAL RAILTRANSIT 23,441,096 446,609 23,887,705 - - - 23,441,096 446,609 23,887,705

FLEET MODERNIZATION & EXPANSION ACCESS-a-RIDE CUTAWAY BUSES 11810 3,009,301 - 3,009,301 - - - 3,009,301 - 3,009,301

CALL & RIDE CUT AWAY BUSES 11811 971,194 - 971,194 - - - 971,194 - 971,194

NEW-3 ELECTRIC BUSES NEW-3 - - - 8,733,500 7,342,500 16,076,000 8,733,500 7,342,500 16,076,000

NEW-6 FLEXRIDE BUSES NEW-6 36,000 144,000 180,000 - - - 36,000 144,000 180,000

HOP BUSES 10417 482,140 - 482,140 - - - 482,140 - 482,140

MALL SHUTTLES EXPANSION 2012 PURCHASE 10338 11,024 - 11,024 - - - 11,024 - 11,024

TRANSIT BUSES 40 FT 11900 24,773,749 13,529,818 38,303,567 - - - 24,773,749 13,529,818 38,303,567

TOTAL FLEET MODERNIZATION & EXPANSION 29,283,407 13,673,818 42,957,225 8,733,500 7,342,500 16,076,000 38,016,907 21,016,318 59,033,225

CAPITAL SUPPORT EQUIPMENTOPERATIONS

ADA VEHICLES/CUTAWAYS 10416 5,283 - 5,283 - - - 5,283 - 5,283

ADMIN/POOL/SUPERVISOR VEHICLES - Bus 10420 287,185 - 287,185 - - - 287,185 - 287,185

FRAME PULLING MACHINE 12001 192,658 - 192,658 - - - 192,658 - 192,658

INCORPORATE MoD SERVICE INTO OPEN TRIP PLANNER 11906 253,433 - 253,433 - - - 253,433 - 253,433

INFORMATION SECURITY TECH-SUPERVISORY CONTROLS ENV 12002 153,834 - 153,834 - - - 153,834 - 153,834

IN PLANT VEHICLES & EQUIP (BUS) 11902 162,437 - 162,437 - - - 162,437 - 162,437

SIGN SHOP MACHINERY 11916 51,358 - 51,358 - - - 51,358 - 51,358

STAND SECURITY ARCHITECTURE FOR SUPERVISORY CONTROLS (SC ssa) 12003 179,472 - 179,472 - - - 179,472 - 179,472

SUPPORT /SERVICE VEHICLES 10341 98,448 - 98,448 - - - 98,448 - 98,448

SUPPORT/SERVICE VEHICLES 11814 322,867 - 322,867 - - - 322,867 - 322,867

IN PLANT VEHICLES & EQUIPMENT 10421 10,381 - 10,381 - - - 10,381 - 10,381

SUBTOTAL - OPERATIONS 1,717,355 - 1,717,355 - - - 1,717,355 - 1,717,355

TREASURY

ACCOUNT-BASED FARE COLLECTION SYSTEM 11919 4,362,287 - 4,362,287 - - - 4,362,287 - 4,362,287

TVM REPLACEMENT (ST80) FOR PCI NON-COMPLIANCE 12005 1,435,780 - 1,435,780 - - - 1,435,780 - 1,435,780

TVMS - SE CORRIDOR 11820 281,062 - 281,062 - - - 281,062 - 281,062

SMART CARD SYSTEM ARRA 10283 51,197 - 51,197 - - - 51,197 - 51,197

SUBTOTAL - TREASURY 6,130,326 - 6,130,326 - - - 6,130,326 - 6,130,326

INFORMATION TECHNOLOGY

511 INTEGRATION MY STOP 10301 4,504 - 4,504 - - - 4,504 - 4,504

NEW-5 ACCELERATING INNOVATIVE MOBILITY NEW-5 - - - 30,000 993,000 1,023,000 30,000 993,000 1,023,000

AUTOMATED PASSENGER COUNTERS 10345 51,917 - 51,917 - - - 51,917 - 51,917

AUTOMATED SOFTWARE/INTEGRATION TESTING TOOL 10428 153,750 - 153,750 - - - 153,750 - 153,750

AVAYA PHONE SYSTEM UPGRADE & SUPPORT 11603 8,450 - 8,450 - - - 8,450 - 8,450

BI INITIATIVES 10429 290,975 - 290,975 - - - 290,975 - 290,975

DISASTER RECOVERY 10464 365,770 - 365,770 - - - 365,770 - 365,770

ENTERPRISE CONTENT MANAGEMENT 10433 1,011,742 - 1,011,742 - - - 1,011,742 - 1,011,742

ENTERPRISE CRM STUDY/REPLACEMENT 11815 1,035,184 - 1,035,184 - - - 1,035,184 - 1,035,184

GARAGE CONCENTRATORS 11703 274,982 - 274,982 - - - 274,982 - 274,982

INTEGRATION OF NEW PLANNING/SCHEDULING SOFTWARE 10437 382,802 - 382,802 - - - 382,802 - 382,802

INVENTORY PLANNING & FORECASTING 10438 1,475,044 - 1,475,044 - - - 1,475,044 - 1,475,044

CYBERSECURITY 10439 207,425 - 207,425 - - - 207,425 - 207,425

LAW PRACTICE MANAGEMENT INTEGRITY SYSTEMS 11812 47,732 - 47,732 - - - 47,732 - 47,732

MOBILE DATA TERMINALS FOR ACCESS-A-RIDE 10444 241,764 - 241,764 - - - 241,764 - 241,764

MOBILE TICKETING 11700 110,000 - 110,000 - - - 110,000 - 110,000

MYSTOP & WHERE'S MY RIDE IVR 10449 30,000 - 30,000 - - - 30,000 - 30,000

NETWORK SYSTEMS 11822 16,665 - 16,665 - - - 16,665 - 16,665

OPERATOR SELF-SERVICE AND AUTOMATED ATTENDANCE 10451 205,000 - 205,000 - - - 205,000 - 205,000

ORACLE BI SOFTWARE UPGRADES FOR ASSET MGMT 10452 15,827 - 15,827 - - - 15,827 - 15,827

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2021 ADOPTED BUDGET 2021 ADOPTED BUDGET

PRIOR PERIOD CAPITAL CARRYFORWARD NEW CAPITAL

CAPITAL PROGRAM BY PROJECT Project LOCAL FEDERAL TOTAL LOCAL FEDERAL TOTAL LOCAL FEDERAL TOTAL

2021 ADOPTED BUDGET

TOTAL CAPITAL

ORACLE ENGINEERED SYSTEMS END OF LIFE REPLACEMENT 11701 168,008 - 168,008 - - - 168,008 - 168,008

ORACLE ERP PROCUREMENT AND CONTRACT MODULES 10351 222,641 - 222,641 - - - 222,641 - 222,641

ORACLE ERP UPGRADE AND/OR ALTERNATIVE SYSTEM 11813 1,974,388 - 1,974,388 - - - 1,974,388 - 1,974,388

RADIO SYSTEMS/SOFTWARE - CAD/AVL 10302 2,704,236 - 2,704,236 - - - 2,704,236 - 2,704,236

RIDER ALERT SYSTEM 11702 (8,000) 8,000 - - - - (8,000) 8,000 -

RISK MANAGEMENT INFORMATION SYSTEM UPGRADE 12006 7,339 - 7,339 - - - 7,339 - 7,339

SCHEDULING AND RUN CUTTING SOFTWARE 10386 1,018,483 - 1,018,483 - - - 1,018,483 - 1,018,483

SMS SOFTWARE SOLUTION 11915 145,000 - 145,000 - - - 145,000 - 145,000

SMT STORED VALUE CARD IMPLEMENTATION 10322 313,805 - 313,805 - - - 313,805 - 313,805

STORAGE AREA NETWORK 10242 48,625 - 48,625 - - - 48,625 - 48,625

THERMAL PRINTERS FOR BUS 10465 43,664 - 43,664 - - - 43,664 - 43,664

TIME AND ATTENDANCE 11611 124,455 - 124,455 - - - 124,455 - 124,455

TIS/RTPI + 2 FTE 10459 204,656 - 204,656 - - - 204,656 - 204,656

TRIP PLANNER ENHANCEMENTS 10323 44,348 - 44,348 - - - 44,348 - 44,348

UNION TIMECLOCK SYSTEM @ DS 10356 378,006 - 378,006 - - - 378,006 - 378,006

SUBTOTAL - INFORMATION TECHNOLOGY 13,319,186 8,000 13,327,186 30,000 993,000 1,023,000 13,349,186 1,001,000 14,350,186

SECURITY

BUS AUDIO/VISUAL PROJECT 12009 - 2,416,000 2,416,000 - - - - 2,416,000 2,416,000

HSEC 19 K9 11918 230,465 - 230,465 - - - 230,465 - 230,465

QUOGNIFY VMS SERVER REPLACEMENTS 11800 293,833 - 293,833 - - - 293,833 - 293,833

UNIVERSITY SCC 11821 168,878 - 168,878 - - - 168,878 - 168,878

SUBTOTAL - SECURITY 693,175 2,416,000 3,109,175 - - - 693,175 2,416,000 3,109,175

OTHER CAPITAL PROJECTS

AURORA/EAST BIKE SHELTERS 11714 12,273 350,091 362,364 - - - 12,273 350,091 362,364

PASSENGER INFORMATION DISPLAYS 10410 (190,510) 340,463 149,953 - - - (190,510) 340,463 149,953

PIDS PROGRAM INFRASTRUCTURE SUPPORT 11901 359,459 - 359,459 - - - 359,459 - 359,459

SHERIDAN/BRMFLD BIKE SHELTERS 11715 123,379 311,495 434,874 - - - 123,379 311,495 434,874

SUBTOTAL -OTHER CAPITAL PROJECTS 304,601 1,002,049 1,306,650 - - - 304,601 1,002,049 1,306,650

TOTAL CAPITAL SUPPORT EQUIPMENT 22,164,644 3,426,049 25,590,693 30,000 993,000 1,023,000 22,194,644 4,419,049 26,613,693

TOTAL CAPITAL 289,211,266 163,013,915 452,225,181 8,763,500 8,335,500 17,099,000 297,974,766 171,349,415 469,324,181

FASTRACKS 199,509,291 119,089,166 318,598,457 - - - 199,509,291 119,089,166 318,598,457

BASE SYSTEM 89,701,975 43,924,749 133,626,724 8,763,500 8,335,500 17,099,000 98,465,475 52,260,249 150,725,724

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Base System

Department/Project Dollar Change Explanation

Board Office

Changes to Personnel Budget (247) Budget adjustments from task force

Expenses carried forward from 2020 to 2021 200,000

Subtotal 199,753

Bus Operations

Changes to Personnel Budget 1,664,012 Budget adjustments from task force

Expenses carried forward from 2020 to 2021 25,000

Reduction of Fixed Route Purchased Transportation (8,300,000) Adjusted to match recommendations from task force

Subtotal (6,610,988)

Communications

Changes to Personnel Budget (2,416) Budget adjustments from task force

Subtotal (2,416)

Executive Office

Changes to Personnel Budget (48,608) Budget adjustments from task force

Subtotal (48,608)

Finance and Administration

Changes to Personnel Budget 369,252 Budget adjustments from task force

Expenses carried forward from 2020 to 2021 1,174,991

Subtotal 1,544,243

General Counsel

Changes to Personnel Budget (1,543) Budget adjustments from task force

Subtotal (1,543)

Planning

Changes to Personnel Budget (864) Budget adjustments from task force

Expenses carried forward from 2020 to 2021 3,311,569

Transit Signal Priority Expense Project 450,000 Project finalized after requested budget

TSP Data Management Expense Project 530,000 Project finalized after requested budget

Broomfield Planning Expense Project 270,000 Project finalized after requested budget

HOPE Expense Project 200,000 Project finalized after requested budget

Subtotal 4,760,705

Rail Operations

Changes to Personnel Budget (198,243) Budget adjustments from task force

Expenses carried forward from 2020 to 2021 1,074,200

Subtotal 875,957

Attachment A

2021 Recommended Budget

Operating Budget Changes Since Posted Budget

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Attachment A

2021 Recommended Budget

Operating Budget Changes Since Posted Budget

Safety, Security & Asset Management

Changes to Personnel Budget 367,411 Budget adjustments from task force

Expenses carried forward from 2020 to 2021 323,460

Reduction in expenses for HOPE local match (20,000) Project finalized after requested budget

Subtotal 670,871

Capital Programs

Changes to Personnel Budget 245,212 Budget adjustments from task force

Expenses carried forward from 2020 to 2021 4,311,519

Subtotal 4,556,731

Non-Departmental

Changes to Personnel Budget (1,350,305) Budget adjustments from task force

Depreciation Expense 103,122,184

Board Ridership Initiative 250,000

Subtotal 102,021,879

Total Base System Changes 107,966,584$

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Attachment A

2021 Recommended Budget

Operating Budget Changes Since Posted Budget

FasTracks - Project

Department/Project Dollar Change Explanation

Planning

Stock Show Station Trails Expense Project 2,049,000$ Project budget was missed in 2020 budget

Subtotal 2,049,000

Capital Programs

Changes to Personnel Budget (67,278) Budget adjustments from task force

Expenses carried forward from 2020 to 2021 98,958

Subtotal 31,680

Non-Departmental

Depreciation Expense 222,273,858

Subtotal 222,273,858

Total FasTracks Project Changes 224,354,538$

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Attachment A

2021 Recommended Budget

Operating Budget Changes Since Posted Budget

FasTracks - Operations

Department/Project Dollar Change Explanation

Capital Programs

Changes to Personnel Budget 383,037 Budget adjustments from task force

Expenses carried forward from 2020 to 2021 534,590

Subtotal 917,627

General Counsel

Insurance for Commuter Rail 2,800,000 Was not included in requested budget

Subtotal 2,800,000

Rail Operations

Changes to Personnel Budget (691,999) Budget adjustments from task force

Expenses carried forward from 2020 to 2021 2,081,000

Subtotal 1,389,001

Safety, Security & Asset Management

Changes to Personnel Budget (247) Budget adjustments from task force

Subtotal (247)

Total FasTracks Operations Changes 5,106,381$

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PROJECT

Base System

Fleet Modernization & Expansion

ELECTRIC BUSES 16,076,000$

Capital Support & Equipment: Operations

ACCELERATING INNOVATIVE MOBILITY 1,023,000

Total Base System 17,099,000$

FasTracks

Total Fastracks -$

Base System New Capital 17,099,000

FasTracks New Capital -

TOTAL NEW CAPITAL FOR THE 2021 ADOPTED BUDGET 17,099,000$

Reconciliation of Changes

2021 Adopted Budget Base System New Capital 17,099,000$

2021 Requested Budget Base System New Capital -

Net Change in New Capital for Base System 17,099,000$

Reconciliation of Change in Base New Capital:

ELECTRIC BUSES 16,076,000

ACCELERATING INNOVATIVE MOBILITY 1,023,000

17,099,000

2021 Adopted Budget FasTracks New Capital -$

2021 Requested Budget FasTracks New Capital -

Net Change in New Capital for FasTracks -$

2021 Total Adopted Budget New Capital 17,099,000$

2021 Total Requested Budget New Capital -

Net Change in New Capital 17,099,000$

Attachment B

2021 Adopted Budget

New Capital Projects

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Description

BASE SYSTEM

FACILITIES CONSTRUCTION & MAINTENANCE

ELEVATORS (3) REPLACEMENT 421,320$

ENGINE STAND 40,000

HVAC 601 REPLACEMENT IN UPHOLSTRY SHOP 41,104

WATER JET CUTTER 23,401

CHARGING INFRASTRUCTURE FOR ELECTRIC BUSES 1,230,668

FIRE PROTECTION UPGRADES - ALARM PANEL 619,654

PARTICULATE SENSORS REPLACEMENT WITH CO NO2 SENSORS 205,522

ROOF REPLACEMENT@PLATTE 4,887,401

BLAKE ENTRYWAY REMODEL 34,918

FIRE PROTECTION FOR ZEE & SCC FACILITIES 253,331

HVAC UNIT REPLACEMENT - SCC FACILITIES 270,262

MEZZANINE ADDITION FOR OPERATOR TRAINING - ELATI 1,701,150

TOTAL FACILITIES CONSTRUCTION & MAINTENANCE 9,728,731

TRANSFER STATIONS

CIVIC CENTER STATION REBUILD 11,175

NINE MILE STATION DRIVER RELIEF STATION 482,339

TOTAL TRANSFER STATIONS 493,514

PARK - N - RIDES

HWY 287 & NIWOT RD 299,629

STAPLETON 313,909

THORNTON PNR EXPANSION 25,900

THORNTON PNR PLAZA UPGRADES 604,910

LAFAYETTE PNR RECONSTRUCTION 1,231,100

WESTMINSTER CENTER PNR SOUTHSIDE 1,918,345

TOTAL PARK - N - RIDES 4,393,792

CAPITAL SUPPORT PROJECTS

16TH STREET MALL PAVER REPAIR 15,076,153

BLANK OUT SCREENS - WELTON STREET 3,172,932

COLFAX AVE./TRANSIT PRIORITY PROJ. FTA LOP 3,615,634

SH119 BUS RAPID TRANSIT - ENVIRONMENTAL 485,668

TOTAL CAPITAL SUPPORT PROJECTS 22,350,387

LRT CONSTRUCTION

DOWNTOWN TRACK & SWITCHES REPLACEMENT 438,888

OCS WIRE REPLACEMENT ON CENTRAL RAIL LINE 385,354

RAIL REPLACEMENT @ CENTRAL CORRIDOR 3,400,434

TOTAL LRT CONSTRUCTION 4,224,676

RAIL TRANSIT

CAB SIGNALING ON LRVS 3,015,588

HEAVY EQUIPMENT FOR LR MAINTENANCE 1,162,479

LRV PURCHASE OF 27 VEHICLES 16,687,414

MAINT MGMT(MAXIMUS/OPTRAM) 559

PENTA PA/VMS UPGRADES 806,990

POWER SWITCHING ON EMERGENCY CROSSOVERS 479,196

SUBSTATION PLC UPGRADE 1,702,849

YARD ELECTRIC SWITCH HEATERS MARIPOSA 32,630

TOTAL RAIL TRANSIT 23,887,705

FLEET MODERNIZATION & EXPANSION

ACCESS-a-RIDE CUTAWAY BUSES 3,009,301

CALL & RIDE CUT AWAY BUSES 971,194

FLEXRIDE BUSES 180,000

HOP BUSES 482,140

MALL SHUTTLES EXPANSION 2012 PURCHASE 11,024

TRANSIT BUSES 40 FT 38,303,567

TOTAL FLEET MODERNIZATION & EXPANSION 42,957,225

Attachment C

2021 Adopted Budget

Capital Carry-Forward Expenditures

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Attachment C

2021 Adopted Budget

Capital Carry-Forward Expenditures

CAPITAL SUPPORT EQUIPMENT

ADA VEHICLES/CUTAWAYS 5,283

ADMIN/POOL/SUPERVISOR VEHICLES - Bus 287,185

FRAME PULLING MACHINE 192,658

INFORMATION SECURITY TECH-SUPERVISORY CONTROLS ENV 153,834

STAND SECURITY ARCHITECTURE FOR SUPERVISORY CONTROLS (SC ssa) 179,472

ACCOUNT-BASED FARE COLLECTION SYSTEM 4,362,287

TVM REPLACEMENT (ST80) FOR PCI NON-COMPLIANCE 1,435,780

511 INTEGRATION MY STOP 4,504

SCHEDULING AND RUN CUTTING SOFTWARE 1,018,483

AVAYA PHONE SYSTEM UPGRADE & SUPPORT 8,450

RISK MANAGEMENT INFORMATION SYSTEM UPGRADE 7,339

AURORA/EAST BIKE SHELTERS 362,364

AUTOMATED PASSENGER COUNTERS 51,917

AUTOMATED SOFTWARE/INTEGRATION TESTING TOOL 153,750

BI INITIATIVES 290,975

CYBERSECURITY 207,425

DISASTER RECOVERY 365,770

BUS AUDIO/VISUAL PROJECT 2,416,000

ENTERPRISE CONTENT MANAGEMENT 1,011,742

ENTERPRISE CRM STUDY/REPLACEMENT 1,035,184

GARAGE CONCENTRATORS 274,982

IN PLANT VEHICLES & EQUIPMENT 10,381

IN PLANT VEHICLES & EQUIP (BUS) 162,437

INCORPORATE MoD SERVICE INTO OPEN TRIP PLANNER 253,433

INTEGRATION OF NEW PLANNING/SCHEDULING SOFTWARE 382,802

INVENTORY PLANNING & FORECASTING 1,475,044

HSEC 19 K9 230,465

LAW PRACTICE MANAGEMENT INTEGRITY SYSTEMS 47,732

MOBILE DATA TERMINALS FOR ACCESS-A-RIDE 241,764

MOBILE TICKETING 110,000

MYSTOP & WHERE'S MY RIDE IVR 30,000

NETWORK SYSTEMS 16,665

OPERATOR SELF-SERVICE AND AUTOMATED ATTENDANCE 205,000

ORACLE BI SOFTWARE UPGRADES FOR ASSET MGMT 15,827

ORACLE ENGINEERED SYSTEMS END OF LIFE REPLACEMENT 168,008

ORACLE ERP PROCUREMENT AND CONTRACT MODULES 222,641

ORACLE ERP UPGRADE AND/OR ALTERNATIVE SYSTEM 1,974,388

PASSENGER INFORMATION DISPLAYS 149,953

PIDS PROGRAM INFRASTRUCTURE SUPPORT 359,459

QUOGNIFY VMS SERVER REPLACEMENTS 293,833

RADIO SYSTEMS/SOFTWARE - CAD/AVL 2,704,236

SHERIDAN/BRMFLD BIKE SHELTERS 434,874

SIGN SHOP MACHINERY 51,358

SMART CARD SYSTEM ARRA 51,197

SMS SOFTWARE SOLUTION 145,000

SMT STORED VALUE CARD IMPLEMENTATION 313,805

STORAGE AREA NETWORK 48,625

SUPPORT /SERVICE VEHICLES 98,448

SUPPORT/SERVICE VEHICLES 322,867

THERMAL PRINTERS FOR BUS 43,664

TIME AND ATTENDANCE 124,455

TIS/RTPI + 2 FTE 204,656

TRIP PLANNER ENHANCEMENTS 44,348

TVMS - SE CORRIDOR 281,062

UNION TIMECLOCK SYSTEM @ DS 378,006

UNIVERSITY SCC 168,878

TOTAL CAPITAL SUPPORT EQUIPMENT 25,590,693

TOTAL BASE SYSTEM 133,626,724$

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Attachment C

2021 Adopted Budget

Capital Carry-Forward Expenditures

FASTRACKS

FASTRACKS ADMIN PROJECTS 6,647,601$

COMMUTER RAIL MAINTENANCE FACILITY 6,164,609

NORTHWEST RAIL 10,513,254

U.S. 36 B.R.T. PHASE 2 5,920,909

EAST CORRIDOR 92,317,433

GOLD LINE 28,250,662

NORTH METRO 1,821,825

I-225 CORRIDOR 7,507,365

DUS TO CRMF CORRIDOR 2,880,811

SOUTHEAST CORRIDOR EXTENSION 16,837,114

P.P.P. PREPARATION 250,000

WEST CNPA STIMULUS FUNDING 253,466

DENVER UNION STATION-OVERSIGHT 5,533,841

WEST PARKING GARAGE 1,474,033

CRMF TO PECOS 73,663

DUS ELECTRIFICATION 12,241,389

FASTRACKS CONTINGENCY 1,500,000

DUS SYSTEMS-EAGLE 129

DOWNTOWN CIRCULATOR 3,371

I-225 THIRD PARTY BETTERMENTS 1

LONGMONT STATION 16,491,712

WEST LINE EQUIPMENT FOR FM 107,214

WEST LINE PIDS ELECTRONIC SIGNS 30,419

I-225 LRT VEHICLE STORAGE TRACKS 1,876,351

PEORIA INTERFACE COORDINATION 749,544

NORTH METRO NON COP 27,389,575

NORTH METRO COP 56,586,541

NORTH METRO O&M INTERFACE 4,375,758

NORTH METRO MOBILIZATION 10,375,876

FLATIRON FLYER POST-OPENING VEHICLE 423,991

TOTAL FASTRACKS 318,598,457$

TOTAL BASE SYSTEM 133,626,724

TOTAL FASTRACKS 318,598,457

TOTAL CAPITAL CARRYFORWARD FOR THE 2021 ADOPTED BUDGET 452,225,181$

Summary of Changes

2021 ADOPTED BUDGET BASE SYSTEM CAPITAL CARRYFORWARD 133,626,724$

2020 AMENDED BUDGET BASE SYSTEM CAPITAL CARRYFORWARD 109,915,313

Net Change 23,711,411

2021 ADOPTED BUDGET FASTRACKS CAPITAL CARRYFORWARD 318,598,457

2020 AMENDED BUDGET FASTRACKS CAPITAL CARRYFORWARD 340,540,811

Net Change (21,942,355)

2021 ADOPTED BUDGET TOTAL CAPITAL CARRYFORWARD 452,225,181

2020 AMENDED BUDGET TOTAL CAPITAL CARRYFORWARD 450,456,124

Net Change 1,769,057$

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REGIONAL TRANSPORTATION DISTRICT

RESOLUTION NO. ____, SERIES OF 2020

(2021 Budget Adoption) A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES AND ADOPTING A BUDGET FOR THE REGIONAL TRANSPORTATION DISTRICT, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY, 2021 AND ENDING ON THE LAST DAY OF DECEMBER, 2021. WHEREAS, The Board of Directors of the Regional Transportation District has appointed the General Manager to prepare and submit a proposed budget to said governing body at the proper time; and WHEREAS, the General Manager has submitted a proposed budget to this governing body on October 20, 2020 for its consideration; and WHEREAS, upon due and proper notice, published and posted in accordance with the law, said proposed budget was open for inspection by the public at a designated place, a public hearing was held on November 17, 2020, and interested taxpayers were given the opportunity to file or register any objections to said proposed budget; and WHEREAS, whatever increases that have been made in expenditures, like increases were added to revenues so that the budget remains balanced, as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REGIONAL TRANSPORTATION DISTRICT: Section 1. That the budget as submitted herein above is approved and adopted as the budget of the Regional Transportation District for the year stated above. Section 2. That the budget hereby approved and adopted shall be signed by the Chairman of the Board and Secretary, and made part of the public records of the District. ADOPTED, this seventeenth day of November, 2020.

Angie Rivera-Malpiede, Chair

Vince Buzek, Secretary

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REGIONAL TRANSPORTATION DISTRICT

RESOLUTION NO. ____, SERIES OF 2020

(2021 Budget Appropriation)

BE IT RESOLVED that the following sums of money or as much thereof as may be needed or deemed necessary to defray all expenses and liabilities of the Regional Transportation District be, and the same, are hereby appropriated for the corporate purposes and objectives of the District hereinafter specified for the fiscal year commencing on the first day of January, 2021, and ending on the last day of December, 2021.

BE IT RESOLVED that the appropriations made in this resolution shall become available

on the first day of January, 2021, and if any multi-year appropriated capital project is not completed within the calendar year, previously appropriated funds shall remain until completion of the capital projects for which the funds are appropriated or for a period of three years, whichever comes first, at which time unexpended locally funded balances shall revert to the unrestricted fund balance. Federally funded capital projects in this context imply those discrete multi-year activities or tasks which are components of those capital programs that comprise the annual budget. Authority for the roll forward of the capital project shall be subject to the approval of the Board of Directors.

(In Thousands)

Operating Expense 629,388$

Interest Expense 175,724

New Capital 17,099

Debt Payments 87,791

FasTracks Internal Savings Account 137,304

Board Appropriated Fund 39,115

Capital Replacement Fund 12,915

Unrestricted Operating Reserve 15,400

Unrestricted Fund Balance 96,315

Current Year Appropriation 1,211,051$

Passed and adopted by the Board of Directors of the Regional Transportation District on the seventeenth day of November, 2020.

Angie Rivera-Malpiede, Chair Vince Buzek, Secretary

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REGIONAL TRANSPORTATION DISTRICT

RESOLUTION NO. ____, SERIES OF 2020

(2021 Previously Appropriated Capital)

BE IT RESOLVED that the following sums of money or as much thereof as may be needed or deemed necessary to defray all expenses and liabilities of the Regional Transportation District be, and the same, are hereby appropriated for the corporate purposes and objectives of the District hereinafter specified for the fiscal year commencing on the first day of January, 2021, and ending on the last day of December, 2021.

BE IT RESOLVED that for multi-year appropriated capital projects not completed within the calendar year, previously appropriated funds shall remain until completion of the capital projects for which the funds are appropriated or for a period of three years, whichever comes first, at which time unexpended locally funded balances shall revert to the unrestricted fund balance. Federally funded capital projects in this context imply those discrete multi-year activities or tasks which are components of those capital programs that comprise the annual budget. Authority for the roll forward of the capital project shall be subject to the approval of the Board of Directors.

(In Thousands)

Previously Appropriated Capital 452,224$

Passed and adopted by the Board of Directors of the Regional Transportation District on

the seventeenth day of November, 2020.

Angie Rivera-Malpiede, Chair

Vince Buzek, Secretary

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

PABs Refinancing Documents

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the RTD Board of Directors

adopts the attached Resolution Number __ (the “Bond Resolution”), authorizing the issuance of Tax –

Exempt and Taxable Refunding Private Activity Bonds, Series 2020 (Denver Transit Partners Eagle P3

Project).

This recommended action supports the following General Manager’s Goals:

Mission-Oriented Goal #3: Strong Financial Management

COVID-19 Financial Goal: Identify Funding Sources

2020 Strategic Priority #6: Move RTD Toward Stable Financial Condition

BACKGROUND

In 2010, RTD issued the Private Activity Bonds (PABs) as conduit issuer and lent the proceeds of the

PABs to Denver Transit Partners (DTP) to assist in financing the Eagle Project. (See attached 2010 RTD

Board of Directors Resolution.) The principal of and interest on the PABs are payable by DTP pursuant to

the 2010 Loan Agreement. The PABs do not constitute an indebtedness of RTD. However, DTP relies on

TABOR payments from RTD to pay debt service on the PABs. The PABs are subject to optional

redemption (refunding) on or any date after July 15, 2020. In September 2020 the RTD board voted to

authorize DTP to proceed with refinancing the Series 2010 Private Activity bonds.

DISCUSSION

The contractual documents required to effectuate the PABs refunding are identified in the Resolution and

include:

• The Loan Agreement

• The Trust Indenture

• The Bond Purchase Agreement

• The Preliminary Official Statement

• The Continuing Disclosure Undertaking

Collectively, these documents comprise the “2020 Documents” as defined in the Resolution.

Substantially final drafts of the 2020 Documents are on file and available for review on the RTD Investor

Information webpage under the “Documents for Potential PABs Refunding”. The Investor Information

webpage can be found at the following link: https://www.rtd-denver.com/services/financials-investors

RTD Board approval of the 2020 Documents is required prior to the issuance of the PABs.

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Resolution No. __ delegates to the General Manager or the Chief Financial Officer the authority (effective

for one year following the date thereof) to determine terms of the PABs, provided that: (a) the final

maturity of the Bonds shall be no later than December 31, 2044; (b) the maximum net effective interest

rate on the Bonds shall not exceed 5.00%; (c) the purchase price of the Bonds shall not be less than

98% of the par amount of the Bonds; (d) the maximum annual regularly scheduled payments of principal

and interest on the Bonds shall not exceed $37,780,000; (e) the maximum aggregate principal amount

of the Bonds shall not exceed $420,000,000; (f) the Bonds may be subject to optional redemption prior

to maturity, mandatory redemption, or extraordinary optional or mandatory redemption on such terms

and conditions as are permitted by the Act and determined by the General Manager or Chief Financial

Officer; and (g) the amount of savings from the refunding of the 2010 Bonds to be received by the

District pursuant to the Concession Agreement if taken as an upfront payment shall not be less than

$10,000,000 and if taken over the life of the Bonds shall not be less than $13,000,000; either the

General Manager or the Chief Financial Officer is authorized to make the determination as to whether to

take the savings as an upfront payment or a payment over life of the Bonds. Such determinations with

respect to the Bonds shall be set forth in a Sale Certificate to be executed by the General Manager or

the Chief Financial Officer.

FINANCIAL IMPACT

Financial market conditions as of October 16, 2020 would create savings to RTD of approximately $16

million on a present value basis.

ATTACHMENTS:

• PABs Refunding Resolution (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Brenden Morgan, Senior Manager, Debt & Investments

Approved by:

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4133-4997-8152.3

RESOLUTION NO. ___, SERIES OF 2020

AUTHORIZING THE ISSUANCE OF TAX-EXEMPT NON-

AMT PRIVATE ACTIVITY BONDS (DENVER TRANSIT

PARTNERS EAGLE P3 PROJECT), SERIES 2020A AND

TAXABLE PRIVATE ACTIVITY BONDS (DENVER TRANSIT

PARTNERS EAGLE P3 PROJECT), SERIES 2020B.

WHEREAS, the Regional Transportation District in the City and County of

Broomfield, the City and County of Denver and the Counties of Adams, Arapahoe, Boulder,

Douglas, Jefferson and Weld in the State of Colorado (the “District”) was created by the General

Assembly of the State of Colorado in 1969 by Chapter 231, Laws of Colorado 1969, which is

currently codified as Sections 32-9-101 through 32-9-164, inclusive, of the Colorado Revised

Statutes (the “Act”) and the District’s Board of Directors (the “Board”) and officers from time to

time, including the present incumbents, have been duly chosen and qualified; and

WHEREAS, Section 32-9-128.5 of the Act provides, in part, that the District may

issue private activity or exempt facility bonds as authorized by federal law and may enter into

agreements with private businesses under which:

(I) The District agrees to loan to a private business the net proceeds of private

activity or exempt facility bonds issued so that the private business can finance all or a portion of

a mass transportation system project that is owned by, leased from the District by, or operated by

the private business; and

(II) The private business agrees that it has the sole responsibility to pay, either

directly or indirectly through the District or a bond trustee, all financial obligations owed to bond

holders and that it shall provide and maintain any reserve deemed necessary by the District to

ensure that the financial obligations are paid; and

WHEREAS, pursuant to Internal Revenue Code Section 142(a)(15), governments

such as the District are permitted to issue exempt facility bonds for certain transportation

purposes which include any surface transportation project which receives Federal assistance

under Title 23, United States Code; and

WHEREAS, the District previously determined that (i) the design, construction

and procurement of the East Corridor Project, the Gold Line Project and a portion of the

Northwest Rail Corridor Project (collectively, the “Commuter Rail Projects”) and the Commuter

Rail Maintenance Facility (the “CRMF”), (ii) the procurement and installation of the

communications systems, signaling system and traction electrification system (and all equipment

forming part thereof) to be installed as part of the Denver Union Station Rail Segment, (iii) the

procurement of certain rolling stock, (iv) the operation and maintenance of the Commuter Rail

Projects, the CRMF and other facilities and certain rolling stock and (v) the dispatch of certain

heavy rail movements (collectively, the “Eagle Project”) are to be carried out by a private sector

party through the grant by the District of a concession and lease in relation to the Eagle Project;

and

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WHEREAS, the District issued Request for Proposals No. 18FH012 on

September 30, 2009 in relation to the Eagle Project, pursuant to which Denver Transit Partners,

LLC (the “Concessionaire”) submitted a final proposal to the District and the District and the

Concessionaire have entered into a Concession and Lease Agreement dated July 9, 2010 (as

amended on July 22, 2010 and August 12, 2010, and as may be further amended, supplemented

or otherwise modified from time to time, the “Concession Agreement”) in order to implement

the Eagle Project; and

WHEREAS, pursuant to and in accordance with the 32-9-128.5 of the Act, the

District issued Tax-Exempt Private Activity Bonds (Denver Transit Partners Eagle P3 Project),

Series 2010 (the “2010 Bonds”) pursuant to an Indenture of Trust dated as of August 1, 2010 (the

“Indenture”) between the District and The Bank of New York Mellon Trust Company, N.A., as

Trustee (the “Trustee”) and made a loan from the proceeds of the 2010 Bonds to the

Concessionaire pursuant to a Loan Agreement dated as of August 1, 2010 (the “Loan

Agreement”) between the District and the Concessionaire to finance a portion of the cost of the

Eagle Project, to pay certain costs of issuance associated therewith and to provide for a bond

reserve fund therefore; and

WHEREAS, pursuant to the Concession Agreement and in order to take

advantage of the current low interest rate environment, the Concessionaire has requested the

District to issue Tax-Exempt Non-AMT Private Activity Bonds (Denver Transit Partners Eagle

P3 Project), Series 2020A and Taxable Private Activity Bonds (Denver Transit Partners Eagle P3

Project), Series 2020B (collectively, the “Bonds”); and

WHEREAS, the proceeds of the Bonds will be loaned by the District to the

Concessionaire for purposes of, among other things, (i) repaying the loan made by the District to

the Concessionaire, which loan was made from the proceeds of the 2010 Bonds, (ii) paying or

reimbursing the prior payment of the costs of issuance of the Bonds and (iii) subject to

agreement between the District and the Concessionaire, paying to the District its share of any

refinancing gain as set forth in the Concession Agreement; and

WHEREAS, there are on file with the District (1) the proposed form of an

amended and restated Loan Agreement between the District and the Concessionaire, (2) the

proposed form of an amended and restated Indenture between the District and the Trustee, (3) the

proposed form of Bond Purchase Agreement to be dated the date of the pricing of the Bonds (the

“Bond Purchase Agreement”) among the District, the Concessionaire, Barclays Capital, Inc.

(“Barclays”), BofA Securities Inc. (“BofA”), and Wells Fargo National Bank (collectively, with

Barclays and BofA, the “Underwriters”), (4) the proposed form of Preliminary Official

Statement (the “Preliminary Official Statement”) relating to the Bonds, and (5) the proposed

form of a Continuing Disclosure Undertaking among the District, the Concessionaire, and Digital

Assurance Certification, L.L.C., as Dissemination Agent (collectively the “2020 Documents”);

and

WHEREAS, Section 11-57-204 of the Supplemental Public Securities Act,

constituting Title 11, Article 57, Part 2, Colorado Revised Statutes (the “Supplemental Act”),

provides that a public entity, including the District, may elect in an act of issuance to apply all or

any of the provisions of the Supplemental Act; and

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WHEREAS, all acts, conditions and things required by law to exist, happen and

be performed precedent to and in connection with the authorization of the Bonds exist, have

happened and have been performed in regular and due time, form and manner as required by law,

it is appropriate for the Board to adopt this Resolution at this time.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS

OF THE REGIONAL TRANSPORTATION DISTRICT, IN THE CITY AND COUNTY OF

BROOMFIELD, THE CITY AND COUNTY OF DENVER AND THE COUNTIES OF

ADAMS, ARAPAHOE, BOULDER, DOUGLAS, JEFFERSON AND WELD, IN THE STATE

OF COLORADO, AS FOLLOWS:

Section 1. All actions heretofore taken (not inconsistent with the provisions

of this Resolution) by the Board, the officers or employees of the District and otherwise by the

District directed toward (i) the Eagle Project, (ii) the execution and delivery of the Concession

Agreement and any agreements attached to the Concession Agreement, and (iii) the sale and

delivery of the Bonds for that purpose, including the use by the Underwriters of the Preliminary

Official Statement prepared in connection with the Bonds are, ratified, approved, and confirmed.

The designation of the Preliminary Official Statement by the General Manager or the Chief

Financial Officer of the District as “final” for purposes of Rule 15c2-12 (the “Rule”) of the

Securities and Exchange Commission, except for omissions permitted by the Rule, is hereby

authorized, approved and confirmed. The distribution by the Underwriters of the Preliminary

Official Statement and the Official Statement for the Bonds to interested persons in connection

with the sale of the Bonds is hereby ratified, approved and confirmed.

Section 2. The 2020 Documents are in all respects approved, authorized and

confirmed. The form, terms and provisions of the Bonds, in the form contained in the Indenture,

are in all respects approved, authorized and confirmed.

Section 3. The Board hereby elects to apply all of the Supplemental Act to the

Bonds. The Board hereby delegates to the General Manager or the Chief Financial Officer of the

District the authority (effective for one year following the date hereof) to accept the proposal of

the Underwriters to purchase the Bonds.

Section 4. The Board hereby further delegates to the General Manager or the

Chief Financial Officer the authority (effective for one year following the date hereof) to make

any and all determinations listed in Section 11-57-205(1) of the Supplemental Act with respect to

the Bonds without any requirement that the Board approve such determinations; provided, that:

(a) the final maturity of the Bonds shall be no later than December 31, 2044; (b) the maximum

net effective interest rate on the Bonds shall not exceed 5.00%; (c) the purchase price of the

Bonds shall not be less than 98% of the par amount of the Bonds; (d) the maximum annual

regularly scheduled payments of principal and interest on the Bonds shall not exceed

$37,780,000; (e) the maximum aggregate principal amount of the Bonds shall not exceed

$420,000,000; (f) the Bonds may be subject to optional redemption prior to maturity, mandatory

redemption, or extraordinary optional or mandatory redemption on such terms and conditions as

are permitted by the Act and determined by the General Manager or Chief Financial Officer; and

(g) the amount of savings from the refunding of the 2010 Bonds to be received by the District

pursuant to the Concession Agreement if taken as an upfront payment shall not be less than

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$10,000,000 and if taken over the life of the Bonds shall not be less than $13,000,000; either the

General Manager or the Chief Financial Officer is authorized to make the determination as to

whether to take the savings as an upfront payment or a payment over life of the Bonds. Such

determinations with respect to the Bonds shall be set forth in a Sale Certificate to be executed by

the General Manager or the Chief Financial Officer.

Section 5. The Chair of the Board (the “Chair”), the General Manager or the

Chief Financial Officer are hereby authorized and directed to execute the 2020 Documents as

required. The Chair and Secretary of the Board (the “Secretary”) are each hereby authorized to

execute the Bonds, by facsimile or manual signature, and each is authorized to deliver the Bonds,

and a facsimile or manual impression of the seal of the District is hereby authorized to be affixed

to the Bonds. The Chair, the General Manager, the Chief Financial Officer, the Secretary and

other officials and employees of the District are hereby authorized to execute and deliver for and

on behalf of the District any agreements approved by or contemplated by this Resolution or the

Concession Agreement, and any and all certificates, documents and other papers, and to perform

all other acts that they may deem necessary or appropriate in order to implement and carry out

the transactions and other matters authorized by this Resolution and the Concession Agreement.

The approval hereby given to the various documents referred to above includes an approval of

such additional details therein as may be necessary and appropriate for their completion,

deletions therefrom and additions thereto as may be approved by bond counsel prior to the

execution of the documents. The execution of any instrument by the appropriate officers or

employees of the District herein authorized shall be conclusive evidence of the approval by the

District of such instrument in accordance with the terms hereof.

Section 6. The Bonds shall specify that holders of the Bonds may not look to

any revenues of the District for repayment of the Bonds. The Bonds shall further specify that the

only sources of repayment for the Bonds are revenues provided by the Concessionaire, property

of the Concessionaire, or credit enhancement obtained by the Concessionaire that may be

pledged to the payment of the Bonds. Because the Bonds are payable only from said sources, the

Bonds shall not be deemed to create District indebtedness or a multiple-fiscal year obligation

within the meaning of any provision of the constitution or the laws of the State of Colorado, and

the District may issue the Bonds without voter approval.

Section 7. The proceeds of the Bonds and other monies held by the Trustee

under the Indenture may be invested in any legal investment, including those authorized by the

Act and by Section 24-75-601.1, C.R.S., subject to the limitations in the Indenture. The period

from the date of settlement of any investment to its maturity date may exceed any limit set forth

in Section 24-75-601.1, C.R.S., subject to the limitations in the Indenture.

Section 8. If any section, paragraph, clause or provision of this Resolution or

the documents hereby authorized and approved shall for any reason be held to be invalid or

unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision

shall not affect any of the remaining provisions of this Resolution or such documents.

Section 9. All bylaws, orders and resolutions of the District, or parts thereof,

inconsistent with this Resolution or with any of the documents hereby approved, are hereby

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repealed only to the extent of such inconsistency. This repealer shall not be construed as

reviving any bylaw, order or resolution of the District, or part thereof.

Section 10. This Resolution shall be in full force and effect upon its passage

and adoption.

PASSED, ADOPTED AND APPROVED this November 17, 2020.

REGIONAL TRANSPORTATION DISTRICT

Chair of the Board of Directors

(SEAL)

Attest:

Secretary

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I, the Secretary of the Board of Directors (the “Board”) of the Regional

Transportation District, in the City and County of Broomfield, City and County of Denver and

the Counties of Adams, Arapahoe, Boulder, Douglas, Jefferson and Weld in the State of

Colorado (the “District”), do hereby certify:

1. The foregoing pages are a true and correct copy of a resolution (the

“Resolution”) passed and adopted by the Board at a meeting thereof held on November 17, 2020.

2. The Resolution was duly moved and seconded and the Resolution was

adopted at the meeting of November 17, 2020, by an affirmative vote of a majority of the Board

as follows:

Name Yes No Abstain Absent

Angie Rivera-Malpiede

Bob Broom

Vince Buzek

Peggy Catlin

Shelley Cook

Claudia L. Folska

Lynn Guissinger

Shontel M. Lewis

Judy Lubow

Natalie Menten

Ken Mihalik

Doug Tisdale

Jeff Walker

Troy L. Whitmore

Kate Williams

3. The members of the Board were present at such meeting constituting a

quorum and voted on the passage of the Resolution as set forth above.

4. The Resolution was approved and authenticated by the signature of the

Chair of the Board, sealed with the District seal, attested by the Secretary and recorded in the

minutes of the Board.

5. There are no bylaws, rules or regulations of the Board which might

prohibit the adoption of the Resolution.

6. Notice of the meeting of November 17, 2020 in the form attached hereto

as Exhibit A was posted at 1660 Blake Street within the District, at least twenty-four hours prior

to the meeting in accordance with law.

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WITNESS my hand and the seal of the District ____________, 2020.

Secretary

(SEAL)

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4133-4997-8152.3

EXHIBIT A

(Attach copy of notice given prior to the November 17, 2020 meeting)

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Masabi Contract Amendment

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the Board of Directors

approves an increase to the contract with RTD’s mobile ticketing vendor, Masabi (contract #16DH050),

to a Not-to-Exceed (NTE) value from $1,450,000 to $8,867,000 (difference of $7,417,000), and

expansion of the Scope of Work to include Masabi’s Account-Based Ticketing (ABT) feature for the

remainder of that contract.

This recommended action supports the following General Manager’s Goals:

Mission-Oriented Goal #1 – Successful Delivery of Transit Services

Mission-Oriented Goal #3 – Strong Financial Management

2020 Strategic Priority #3 – Enhance Current and Future Transportation Methods

2021 Strategic Priority #4 – Increase Ridership and Improve Rider Experience (Implement Account-Based

Ticketing System)

BACKGROUND

Mobile Ticketing Program Success Story

RTD has three mobile app sales channels which allow customers to purchase fare products for bus and

rail; the RTD branded app (launched Nov 2017), Uber app (launched May 2019), and Transit app

(launched Sept 2019). Full fare, senior, individual with disabilities discount, and youth discount 3-hour

pass, day pass, and monthly passes, as well as, LiVE discount 3-hour and day passes are sold in all

three mobile app sales channels. All mobile tickets sold in the Uber app and Transit app cost the same as

they do in the RTD branded mobile app. 13.8% of the fare revenue generated January through March

2020 is from the mobile ticketing sales channel (all 3 apps combined). Since inception through August

2020, RTD has sold 5,407,774 tickets in the RTD branded app, 72,914 tickets in the Uber app, 31,074

tickets in the Transit app, and 128,405 tickets sold in other channels such as the mobile ticketing web

portal, and partner portal for a total of 5,407,774 mobile tickets valued at $32,855,175.

The mobile ticketing sales channel has been wildly successful. Sales have exceeded several other sales

channels and fare media offerings. In January 2018, mobile ticketing sales exceeded MyRide stored

value sales, in December 2018, they exceeded paper 10-ride ticket book sales, in December 2019, they

exceeded farebox sales, and in March 2020, they were expected to exceeded ticket vending machine

sales.

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DISCUSSION

Account-Based Fare Collection System

Electronic Fare Operations resources and efforts are focused on launching a new Account-Based Fare

Collection feature to replace RTD’s existing, first generation card-based fare collection system from

Conduent. The $1.8M grant received from DRCOG, in 2019, will be used to purchase validators in a

competitive procurement. The new Account-Based Fare Collection System will consist of activating

Masabi’s Account-Based Ticketing (ABT) feature on RTD’s existing Masabi mobile ticketing platform and

connecting and integrating the new validators to the Masabi mobile ticketing platform. The ABT feature

allows smart cards and other media (such as a student ID or a contactless bank card) to be used as fare

media. Moving the Pass Program and MyRide product to the Masabi mobile ticketing platform will enable

RTD to improve customer experience and replace the current smart card system for a modern fare

collection system. Implementation will be conducted in a phased approach.

Account-Based Fare Collection System - Phase 1

• Replace Conduent bus and rail validators with new validators

• Implement ABT feature on Masabi mobile ticketing platform

o Transition Pass Program (EcoPass, Neighborhood EcoPass, CollegePass, ) to ABT

o Transition MyRide to ABT

Account-Based Fare Collection System - Future Phase

• Integration of electronic proof of eligibility for discount cards

• Accepting contactless bank card for payment

• Other 3rd party retailer integration to digitize cash

Other Related Projects

• Integration with ticket vending machines

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FINANCIAL IMPACT

Account-Based Ticketing (ABT) Contract Amendment / Increase Contract Not-to-Exceed (NTE) Value

RTD pays Masabi implementation costs, license fees, commission and credit/debit card processing fees

(passed through to RTD at cost). Due to the incredible success of the mobile ticketing program, the

contract authority was exceeded approximately in August 2019. The team is requesting board approval

for an increase in contract NTE authority for the following reasons.

• The success of the mobile ticketing sales channel has resulted in higher than

expected sales and associated commissions/fees in excess of the 2017

authorization.

• To account for future commission and fee costs in excess of the 2017

authorization.

• Due to upcoming expansion work on the Fare Collection System by implementing

the ABT feature.

For these reasons, the team requests an increase in the Masabi contract NTE value from $1,450,000 to

$8,867,000 which represents an additional $7,417,000. Funding for project expenses have already

been budgeted through 2020. Commissions and fees are paid directly from associated sales.

Summary of justifications for the increase to the contract authority. (Details in the table below)

The higher than anticipated sales of mobile tickets have resulted in higher commissions and fees than

previously estimated and approved in the 2017 authorization in the amount of $1,134,000 from

November 2017 to September 2020. We also added a web portal functionality for $11,000 in late 2019

that allows customers to buy tickets through a website. Additionally, higher than anticipated future

sales of mobile tickets will result in commission and fees in the amount of $4,359,000 from October

2020 to March 2023. Finally, implementing the ABT feature will result in an additional cost of

$1,803,000.

Background information for Vendor Portal

We are also looking to add another functionality, a vendor portal that would allow our customers to

purchase mobile tickets at the RTD sales outlets with cash or checks. Tickets purchased through the

vendor portal appear in the customer’s mobile app ticket wallet. Implementation costs and the

commissions and fees associated with the anticipated additional sales would total about $110,000 from

early 2021 to March 2023.

Background Information on Masabi ABT Sole Source

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Contract Item Description Cost Details

Costs exceeding the current authorization (Aug 2019 – Sep 2020)

Implementation cost for the Mobile

Ticketing web portal

$11,000 This was a one-time initial

implementation cost to launch the

mobile ticketing web portal which

allows customers to purchase RTD

tickets via a website. Tickets

purchased through this website appear

in their mobile app ticket wallet.

Mobile Ticketing Commissions and

Fees (Nov 2017 - Sep 2020).

$1,134,000 Higher than expected sales of tickets in

the mobile ticketing sales channel

resulted in higher commissions and

fees.

• License fees $24,000

• Commission on sales (average

2.2%) $306,000

• Credit/debit processing

$804,000

Subtotal (Cost exceeding current

authorization)

$1,145,000

Future Costs Excluding ABT (Oct 2020 – Mar 2023)

Estimated Future Mobile Ticketing

commissions and processing fees

from the mobile ticketing app

(excluding ABT transactions) for the

Remainder of the Contract Term

(Oct 2020 - Mar 2023).

$4,359,000 (Estimate) Higher than expected sales of tickets in

the mobile ticketing sales channel will

result in higher commissions and fees.

• License fees $73,000

• Commission on sales (average

1.7%) $1,092,000

• Credit/debit processing

$3,194,000

Vendor Portal $110,000 (Estimate) This cost includes implementation

costs, licensing fees, and commission.

Subtotal (Future costs excluding

ABT)

$4,469,000 (Estimate)

Future Costs ABT Only (Jan 2022 – Mar 2023)

Masabi ABT Project Implementation

Costs

$211,000 (Estimate) One-time costs for implementation for

the new ABT project features with

Masabi

ABT Commissions and Fees (Jan

2022 - Mar 2023).

$1,592,000 (Estimate) On-going fees and commissions related

to the addition of the new ABT features

in January 2022.

• License fees $483,000

• Commission on sales (average

1.6%) $1,022,000

Credit/debit processing $87,000

Subtotal (Future costs ABT only) $1,803,000 (Estimate)

TOTAL $7,417,000

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RTD contracted with Four Nines Technologies to conduct a thorough analysis comparing Masabi total

cost of ownership over a 5-year period against some of the relative closest competitors. The findings

are attached separately as Attachment A – Total Cost of Ownership Report by Four Nines Technologies.

The report shows that Masabi, while not the least expensive, has one of the lowest up-front initial

implementation costs. A Masabi ABT sole source provides a savings of approximately $4,500,000 by

not duplicating efforts to redo work already implemented by RTD, and results in a project implementation

timeline savings in upward of 2 years. As a result of this analysis, RTD developed, evaluated and

approved a sole source justification (Attachment B) following the guidelines for substantial duplication of

costs and unacceptable delay in order to allow RTD to proceed with Masabi’s Account-Based Ticketing

feature in accordance with RTD’s procurement standards.

ATTACHMENTS:

• Attachment A - Total Cost of Ownership Report by Four Nines Technologies (PDF)

• Attachment B - Masabi Account Based Ticketing Functionality Sole Source Justification (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Paul Snyder, Senior Project Manager, Information Technology

Approved by:

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Bank Signature Authorization to Add Debra

Johnson

RECOMMENDED ACTION

It is recommended that the Board of Directors approve the attached Bank Account Signature

Authorization Agreement (the “Agreement”).

This recommended action supports the following General Manager’s Goals:

Mission-oriented Goal #3 – Strong Financial Management

BACKGROUND

Wells Fargo, as the District’s commercial bank, requires prompt notification of all modifications in the

authorized signatories on the District’s various bank accounts. In order to reflect any changes in District

personnel and the election of new Board officers, the Agreement is updated at least annually and

periodically as otherwise required.

DISCUSSION

The attached recommended Agreement has been modified from the previously approved Agreement to

reflect the new General Manager and CEO.

FINANCIAL IMPACT

There is no cost associated with this action.

ATTACHMENTS:

• Bank Account and Signature Authorization Agreement 2020-11-17 (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Brenden Morgan, Senior Manager, Debt & Investments

Approved by:

1.B.7

Packet Pg. 151

BANK ACCOUNT SIGNATURE AUTHORIZATION AGREEMENT

ARTICLE I

The Regional Transportation District (RTD or the District) is a public body politic and

corporate and a political subdivision of the State of Colorado. The RTD is authorized to

deposit moneys of the District in an eligible depository as defined under Colorado law.

Wells Fargo Bank Denver, N.A., and Wells Fargo Bank Ohio Van Wert, N.A. (Banks) are

eligible depositories. In order to further the purposes of RTD and provide authority for

essential continuing disbursements, the Board has approved the establishment of and

placement of funds in the:

(a) RTD General Operating Account at Wells Fargo Bank, Denver; Acct. No.

XXXXXX4234

(b) RTD Controlled Disbursement Account at Wells Fargo Bank, Van Wert, Ohio; Acct.

No. XXXXXX2107

(c) RTD Salaried Payroll Account at Wells Fargo Bank, Denver; Acct. No.

XXXXXX9520

(d) RTD Represented Payroll Account at Wells Fargo Bank, Denver; Acct. No.

XXXXXX9538

(e) RTD Salaried Health Benefits Account at Wells Fargo Bank, Denver; Acct. No.

XXXXXX5663

(f) RTD Lockbox Depository Account at Wells Fargo Bank, Denver; Acct. No.

XXXXXX4674

(g) RTD Credit Card Sales Draft Account at Wells Fargo Bank, Denver; Acct. No.

XXXXXX4250

(h) RTD DUSPA Account at Wells Fargo Bank, Denver; Acct. No. XXXXXX1168

Now, therefore, RTD authorized the following:

ARTICLE II

AUTHORIZATIONS

2.1 Depository Designation. RTD designates the Banks as depositories for RTD’s

funds, subject to the terms and conditions of this Agreement.

2.2 Endorsements. RTD authorizes and directs the Banks to accept for collection all

negotiable instruments and other forms of order for payment of money payable to

the order of or endorsed to the order bearing either RTD’s written endorsement by

any one designated signer named in this Agreement or RTD’s stamped

endorsement.

2.3 Required Signatures. RTD authorizes and directs the Banks to honor all negotiable

instruments and other forms of order for payment of money drawn on RTD’s

account, (including those drawn to bearer, to cash or to the individual order of any

designated signer), that bear the signature(s) required by Article IV of this

Agreement.

2.4 Effect of Agreement. An Agreement of RTD previously delivered to the Banks shall

remain in effect and binding on RTD until RTD delivers a new Agreement or a

1.B.7.a

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written notice of termination to the Banks. RTD shall not modify an Agreement

except by delivering to an authorized officer of Banks an Agreement containing the

modification. RTD shall not terminate an Agreement except by delivering to an

officer of Banks a written notice of termination. Negotiable instruments or other

forms of order for payment of money, drawn on RTD’s accounts prior to

termination or modification of an Agreement, shall be deemed governed by either

the Agreement in effect when dawn or the Agreement in effect when presented to

the Banks.

2.5 Miscellaneous. (a) This Agreement shall inure to the benefit of, and shall be binding

on the parties’ successors, assigns, deputies, and agents; (b) This Agreement shall

be governed by the laws of the State of Colorado; (c) In the event that a court of

competent jurisdiction declares any provision of the Agreement invalid or

unenforceable, the remainder of this Agreement shall continue in full force and

effect; (d) This Agreement shall not be modified except in a writing signed by an

authorized representative of RTD and an authorized representative of banks; (e) In

the event of litigation, the prevailing party shall be entitled to recover reasonable

attorney’s fees and cost from the other party.

ARTICLE III

CERTIFICATION

I hereby certify that I am the authorized representative of RTD, and that:

3.1 All acts, events, and undertakings required by law or by RTD to happen, exist or be

performed precedent to and in the issuance of this authorization have happened,

exist, and have been performed.

3.2 Each of the designated signers named in Article IV presently holds the title herein

set forth and all signatures in Article IV hereof are genuine signatures.

________________________________________________ _________________________

Debra Johnson, General Manager and CEO Date

1.B.7.a

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ARTICLE IV

SIGNATURES

4.1 The following are designated signers of RTD, subject to the special instructions in

4.2 below, for the

(a) RTD General Operating Account at Wells Fargo Bank, Denver

(b) RTD Controlled Disbursement Account at Wells Fargo Bank, Van Wert, Ohio

(c) RTD Salaried Payroll Account at Wells Fargo Bank, Denver

(d) RTD Represented Payroll Account at Wells Fargo Bank, Denver

(e) RTD Salaried Health Benefits Account at Wells Fargo Bank, Denver

(f) RTD Lockbox Depository Account at Wells Fargo Bank, Denver

(g) RTD Credit Card Sales Draft Account at Wells Fargo Bank, Denver

(h) RTD DUSPA Account at Wells Fargo Bank, Denver

Angie Rivera-Malpiede

Chair of the Board _____________________________________________

Peggy Catlin

First Vice-Chair of the Board _____________________________________________

Shelley Cook

Second Vice-Chair of the Board _____________________________________________

Vince Buzek

Secretary of the Board _____________________________________________

Lynn Guissinger

Treasurer of the Board _____________________________________________

Debra Johnson

General Manager and CEO _____________________________________________

Doug MacLeod

Controller _____________________________________________

Michael Ford

Chief Operations Officer _____________________________________________

4.2 a. Checks of $25,000 or less may be signed by using a signature plate with

the signature of

Debra Johnson

General Manager and CEO ____________________________________________

1.B.7.a

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b. Checks over $25,000, up to and including $100,000 must be signed by

two of the following authorized RTD employees; with at least one signature

being manual.

Debra Johnson

General Manager

and CEO ________________________________________

Michael Ford

Chief Operations

Officer ________________________________________

Doug MacLeod

Controller ________________________________________

c. Checks over $100,000 must be signed by a Board officer and one of the

authorized RTD employees specified in 4.2.b., above.

d. Irrespective of the amount of the check, only one of the above-named

individuals must sign a check issued to make Payroll withholding deposits or

to make other Payroll-related deposits.

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ARTICLE V

ACCEPTANCE BY BANK

_______________________________________ ________________________

Printed Name Title

_______________________________________ ______________________

Signature Date

1.B.7.a

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 17, 2020

Subject:

Authorization of Fiscal Authority to the GM for

the North Metro Rail Line Project

RECOMMENDED ACTION

It is recommended by the Financial Administration and Audit Committee that the RTD Board of Directors

(“Board”) increase the authority granted to the General Manager or designee to enter into all contracts,

real property transactions and intergovernmental agreements for the North Metro Rail Line Project by

$35.2 million to a total authorization of $757.5 million. This authority shall include the ability to

negotiate and execute all contracts; work orders; change orders and contract modifications; agreements

for the acquisition and conveyance of property interests; and intergovernmental agreements that are

necessary or advisable to complete the North Metro Rail Line within the scope of the North Metro Rail

Line Project budget.

This recommended action supports the following General Manager’s Goals:

Strategic Priority #4: Increase Ridership, Improve Rider Experience.

BACKGROUND

As part of the RTD FasTracks Plan, the full North Metro Corridor is an approximately 18.5-mile-long

Commuter Rail line extending from Denver Union Station through the City and County of Denver, the

Cities of Commerce City, Thornton, Northglenn and parts of Adams County. The initial segment of the

corridor, the N line to 124th Avenue, entered revenue service on September 21, 2020.

In November, 2013, the Board authorized eight actions related to the North Metro Rail Line project:

• Award of a design/build contract to Regional Rail Partners (RRP) for construction of the North

Metro Rail Line from Denver Union Station to 124th Avenue, with options to extend to 162nd

Avenue as funds become available.

• Provided the General Manager or designee with authority to enter into all contracts and

intergovernmental agreements for the North Metro Rail Line Project in the amount not to exceed

the remaining project budget to 124th Avenue of $633.8 million.

• Provided the General Manager or designee with authority to accept grants or other contributions

and to increase the project budget in the amount of third-party contributions for project work

without further Board approval.

• Granted authority to the General Manager to exercise the option to extend to 162nd Avenue and

issue a notice to proceed for that phase, should funding become available, subject to presentation

to the board through the annual budget appropriation and with approval of financing provisions.

• Approved intergovernmental agreements (IGA) with the City of Commerce City, the City of

Thornton, and the City of Northglenn regarding the North Metro Rail Line project. Each IGA

includes specific terms defining the local agency contribution, coordination, and the rights and

responsibilities of each party within the boundaries of each municipality.

• Approved an IGA with the Colorado Department of Transportation (CDOT) regarding the North

Metro Rail Line project, including specific terms defining the coordination between CDOT and

1.B.8

Packet Pg. 157

RTD and the rights and responsibilities of each party associated with the construction of the

North Metro Rail Line, especially regarding interface with the state highway system.

In May 2014, the Board approved the issuance of Certificates of Participation (COPs) to fund a portion

of the North Metro Rail Line project, using the section of the corridor from Denver Union Station to

104th Avenue as collateral for the COPs. RTD issued the COPs in the par amount of $441 million in

July 2014.

In October 2014, the Board authorized the transfer of $16 million from FasTracks Railroad Right of Way

budget to a project to construct additional track sidings on the North Metro Rail Line. The Board did not

increase the General Manager’s contract authority for the project at that time.

In August 2015 the Board authorized an increase of $40 million to the North Metro project capital

budget through the Annual Program Evaluation to fund additional costs for hazardous materials, property

impacts, and the operations and maintenance interface with the Eagle project. At that time, the Board

also increased the General Manager’s contract authority by $56 million to cover these costs and the

previous authorization for the track sidings.

In March, 2016 the Board authorized the General Manager to execute contract amendments, change

orders and other necessary modifications to the Eagle Concession Agreement, or to enter into contracts

with subsidiaries and subcontractors of Denver Transit Partners (DTP) for purposes of North Metro Rail

Line vehicle and systems maintenance, dispatching and operations, up to the start of revenue passenger

operations on the N line. The resolution specified that this authority extended only to dollar amounts

included in the RTD annual budget, and the Board did not increase the General Manager’s contract

authority for the project at that time.

In October 2017 the Board authorized an increase of $52.7 million to the North Metro project capital

budget through the Annual Program Evaluation to fund additional costs for the current scope to

complete. The Board did not increase the General Manager’s contract authority for the project at that

time.

In October 2018, the Board authorized a settlement of claims with Regional Rail Partners in the amount

of $32.5 million and the transfer of $15 million from FasTracks Management Reserve to fund the initial

payment of settlement costs. The Board approved the total settlement amount as an increase to the

contract with RRP, and the increase to the project budget.

DISCUSSION

The intense nature of construction projects requires quick decision-making capability at the project level.

Failure to provide direction to contractors in a timely manner can result in delays or expensive rework.

Delays in approving change orders can also delay payments to contractors and subcontractors.

Similarly, the ability to acquire, dedicate exchange or dedicate property and property interests, enter into

third party agreements for goods, services, funds or mutually desirable change orders may be required in

time frames that are more abbreviated than board cycles.

Providing this delegation is consistent with previous Board actions for major corridor projects. Based on

this experience, the Board delegated fiscal authority to the amount of the remaining project budget at

the same time that it approved the contract for construction of the project.

At this time, the corridor has entered revenue service and is approaching contract closeout. However,

several outstanding issues remain on the project, which include, but are not limited to, the following:

1.B.8

Packet Pg. 158

• 124th Station PED crossing updates

• 124th and Claude Ct. – train signal design and integration with new Thornton traffic signal

• 72nd train signal system changes with Allowable Acceleration Buffer testing

• 72nd NB train movement improvement/signal system modification

• 112th train signal system changes with Allowable Acceleration Buffer testing

• 124th subdivision modifications to improve SB train movements

• Engineering support to provide network connectivity to 124th cascading operator booth

• PTC Engineering support to provide detailed analysis of daily train movement PTC issues

• Signal System Speed Smoothing/crossing approach changes/express move elimination across the

entire alignment

• CyberSecurity Risk Mitigation – separation of CCTV network

• CyberSecurity Train Control Network Intrusion Detection System

• WabtecOne daily report modifications

• WabtecOne transmission of daily PTC and Wireless Activation performance

• Signal Engineering design and construction services to eliminate pedestrian crossing activation

while train is in the 124th Station

• PTC/ATC signal engineering and construction services to support revenue service rail operations

• Signal engineering and construction for electric lock at Steel Street Maintenance Facility

• Scope gap - Metal stairs for six emergency and maintenance access points

• Scope gap - Bus stop improvements for bus route changed due to N-Line rail service.

• Settlement of any future potential claims

The breakdown of the requested fiscal authority for the North Metro Rail Line capital project is detailed

below:

Original Project Budget $633.8

Previously Approved Contract Authority Increases

August 2015 56.0

RRP Claim Settlement – Approved October 2018 32.5

Current Contract Authority $722.3

Recommended Contract Authority Increases

Additional Funding for Scope to Complete –

Approved October 2017 $52.7

Less: RRP Claim Settlement Amount Paid from

October 2017 Project Budget -17.5

Subtotal – Recommended Contract Authority

Increases $35.2

Updated Contract Authority $757.5

FINANCIAL IMPACT

Funding for the full capital cost of the North Metro project to 124th Avenue is included in the 2020

Amended Budget for the FasTracks program, and any unspent funding is included in the 2021

Recommended Budget in the capital carryforward.

1.B.8

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Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Steve Szczecina,

Approved by:

1.B.8

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 10, 2020

Subject:

September 2019 Monthly Financial Status

Report

Information

ATTACHMENTS:

• 093020 MFS Final (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Doug MacLeod, Controller

Approved by:

1.C.1

Packet Pg. 161

To: Debra Johnson, General Manager and CEO ACTION UPDATE INFORMATION

From: Heather McKillop, CFO and AGM Administration x

Date: November 10, 2020

2020

ACTUAL

2020

AMENDED

BUDGET

VARIANCE VARIANCE %2019

ACTUAL

VARIANCE

TO 2019

MONTH 57,796 38,810 18,986 48.9% 56,984 812 1.4%

YTD 461,556 381,120 80,436 21.1% 483,467 (21,911) -4.5%

Note: The 2020 Amended Budget reflects the May sales and use tax forecast from CU Leeds

48.9%

4.7%

-18.5%

(In Thousands)

-4.5%

-45.7%

-51.6%

1.4%

-63.2%

-49.0%

21.1%

-5.0%

-19.5%

VARIANCE

%

TO 2019

SALES AND USE TAX

SEPTEMBER 2020

MONTHLY FINANCIAL STATUS

SEPTEMBER 2020

SEPTEMBER 2020

ACTUAL VS.

AMENDED

YEAR TO DATE

2020 VS. 2019

SEPTEMBER

2020 VS. 2019

YTD 2020

ACTUAL VS.

AMENDED BUDGET

SEPTEMBER 2020

2020 ACTUAL 57,796

2020 BUDGET 38,810

2019 ACTUAL 56,984

30,000

35,000

40,000

45,000

50,000

55,000

60,000

S&U TAX - SEPTEMBER 2020

ACTUAL VS. AMENDED BUDGET

$30.0

$35.0

$40.0

$45.0

$50.0

$55.0

$60.0

$65.0

(Mil

lio

ns)

SALES AND USE TAX TRENDS

2019 Actual

2020 Amended

Budget

2020 Actual

SEPTEMBER YTD 2020

2020 ACTUAL 461,556

2020 BUDGET 381,120

2019 ACTUAL 483,467

300,000

320,000

340,000

360,000

380,000

400,000

420,000

440,000

460,000

480,000

500,000

S&U TAX - YTD

ACTUAL VS. AMENDED BUDGET

S&U TAX

RIDERSHIP

FARE

REVENUE

S&U TAX

RIDERSHIP

FARE

REVENUE

S&U TAX

RIDERSHIP

FARE

REVENUE

S&U TAX

RIDERSHIP

FARE

REVENUE

July Forecast

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4382

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Mo

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2020

ACTUAL

2020

AMENDED

BUDGET

VARIANCE VARIANCE %2019

ACTUALVARIANCE

VARIANCE %

to 2019

MONTH 3,448 3,294 154 4.7% 9,358 (5,910) -63.2%YEAR TO DATE 42,859 45,118 (2,259) -5.0% 78,963 (36,104) -45.7%

*

*

The N Line opened on September 21, 2020. Fares are suspended for the first week and then will be only local fares for the first six months.

RIDERSHIP

SEPTEMBER 2020

(In Thousands)

The G Line opened on April 26, 2019 and the Southeast Rail Extension opened on May 17, 2019. Fares were suspended on April 5, 2020 and resumed on July 1, 2020 due to the COVID-19 pandemic

Bus Mall & Metro Ride Light Rail Commuter Rail Other

SEPT 2020 ACTUAL 2,152 234 630 393 38

SEPT 2019 ACTUAL 5,230 867 2,233 940 88

-

1,000

2,000

3,000

4,000

5,000

6,000

RIDERSHIP BY TYPE - SEPTEMBER 2020

Bus Mall & Metro Ride Light Rail Commuter Rail Other

2020 ACTUAL YTD 26,843 3,052 8,754 3,798 411

2019 ACTUAL YTD 44,776 8,030 18,283 7,074 799

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

RIDERSHIP BY TYPE - YTD

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

(Mil

lio

ns)

RIDERSHIP TRENDS

2019 Actual

2020 Amended Budget

2020 Actual

SEPT 2020

2020 ACTUAL 3,448

2020 AMD BUDGET 3,294

2019 ACTUAL 9,358

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

RIDERSHIP - SEPTEMBER 2020

ACTUAL VS. AMENDED BUDGET

SEPT YTD 2020

2020 ACTUAL 42,859

2020 AMD BUDGET 45,118

2019 ACTUAL 78,963

22,000

32,000

42,000

52,000

62,000

72,000

82,000

RIDERSHIP - YTD

ACTUAL VS. AMENDED BUDGET

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2020

ACTUAL

2020

AMENDED

BUDGET

VARIANCE VARIANCE %2019

ACTUALVARIANCE

VARIANCE %

to 2019

MONTH 7,040 8,642 (1,602) -18.5% 13,796 (6,756) -49.0%

YEAR TO DATE 55,763 69,231 (13,468) -19.5% 115,259 (59,496) -51.6%

The N Line opened on September 21, 2020. Fares are suspended for the first week and then will be only local fares for the first six months.

The second quarter 2020 SB154 ratio is 12.1% which is lower than the statutorially required 30% ratio. The low ratio is caused by the absence of fare revenue and reduction of taxes due to COVID.

FARE REVENUE

SEPTEMBER 2020

(In Thousands)

the G Line opened on April 26, 2019 and the Southeast Rail Extension opened on May 17, 2019. Fares were suspended on April 5, 2020 and resumed on July 1, 2020 due to the COVID-19 pandemic

FARE BOX MY RIDE/MOBILE 10 RIDE/MONTHLY/FLEX COLLEGE PASS ECO PASS TVM

SEPT 2020 ACTUAL 2,049 694 792 606 2,258 641

SEPT 2019 ACTUAL 1,822 738 6,435 2,643 2,137 83

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000FARE REVENUE - SEPTEMBER 2020

FARE BOX MY RIDE/MOBILE 10 RIDE/MONTHLY/FLEX COLLEGE PASS ECO PASS TVM

2020 ACTUAL YTD 7,029 7,592 12,164 4,713 18,218 6,047

2019 ACTUAL YTD 15,750 8,833 54,274 20,492 15,746 226

-

10,000

20,000

30,000

40,000

50,000

60,000

FARE REVENUE - YTD

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

(Mil

lio

ns)

FARE REVENUE TRENDS

2020 Actual

2019 Actual

2020 Amended

Budget

AUGUST 2020

2020 ACTUAL 7,040

2020 AMD BUDGET 8,642

2019 ACTUAL 13,796

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

FARE REVENUE - SEPT 2020

ACTUAL VS. AMENDED BUDGET

AUGUST YTD 2020

2020 ACTUAL 55,763

2020 AMD BUDGET 69,231

2019 ACTUAL 115,259

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

FARE REVENUE - YTD

ACTUAL VS. AMENDED BUDGET

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2020 2020 2020 2020 December 31, 2019

Base System FasTracks Project FasTracks Ops Combined Combined Change

ASSETS

CURRENT ASSETS:

Cash & Cash Equivalents 184,442$ 345,564$ 56,729$ 586,735$ 420,264$ 166,471$

Receivables:

Sales Taxes 67,460 45,989 - 113,449 119,300 (5,851)

Grants 33,058 - - 33,058 63,448 (30,390) (1)

Other (less allowance for doubtful accts) 3,644 7,371 - 11,015 13,696 (2,681) (2)

Total Net Receivables 104,162 53,360 - 157,522 196,444 (38,922)

Inventory 34,710 - - 34,710 33,355 1,355

Restricted Debt Service/Project Funds 55,863 105,510 - 161,373 125,515 35,858

Other Assets 6,815 2,145 384 9,344 9,496 (152)

TOTAL CURRENT ASSETS 385,992 506,579 57,113 949,684 785,074 164,610

NONCURRENT ASSETS:

Capital Assets:

Land 171,781 688,568 - 860,349 789,639 70,710

Land Improvements 1,304,877 4,356,402 - 5,661,279 5,089,458 571,821

Buildings 296,952 391,953 - 688,905 664,678 24,227

Revenue Earning Equipment 753,317 761,167 - 1,514,484 1,323,153 191,331

Shop, Maintenance & Other Equipment 192,559 7,620 - 200,179 335,706 (135,527)

Construction in Progress 56,145 265,280 - 321,425 989,048 (667,623)

Total Capital Assets 2,775,631 6,470,990 - 9,246,621 9,191,682 54,939

Accumulated Depreciation (1,548,291) (1,039,709) - (2,588,000) (2,349,339) (238,661)

Net Capital Assets 1,227,340 5,431,281 - 6,658,621 6,842,343 (183,722)

TABOR Reserves 9,045 10,188 - 19,233 18,415 818

Restricted Debt Service/Debt Service Reserves 29,037 65,668 - 94,705 93,173 1,532

Deposits 1,500 - - 1,500 1,503 (3)

TOTAL NONCURRENT ASSETS 1,266,922 5,507,137 - 6,774,059 6,955,434 (181,375)

TOTAL ASSETS 1,652,914$ 6,013,716$ 57,113$ 7,723,743$ 7,740,508$ (16,765)$

DEFERRED OUTFLOW OF RESOURCES 78,127$ 27,004$ -$ 105,131$ 106,844$ (1,713)$

REGIONAL TRANSPORTATION DISTRICT

STATEMENT OF NET POSITION - COMBINED

(UNAUDITED)(In Thousands)

SEPTEMBER 30, 2020

(2) Increase in receivables for billings for annual Eco and College passes

(1) Primarily for draws submitted on the Eagle FFGA

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2020 2020 2020 2020 December 31, 2019

Base System FasTracks Project FasTracks Ops Combined Combined Change

REGIONAL TRANSPORTATION DISTRICT

STATEMENT OF NET POSITION - COMBINED

(UNAUDITED)(In Thousands)

SEPTEMBER 30, 2020

LIABILITIES

CURRENT LIABILITIES:

Accounts & Contracts Payable 32,730$ 14,847$ 6,620$ 54,197$ 85,339$ (31,142)$ (3)

Current Portion of Long Term Debt 68,636 13,140 - 81,776 78,128 3,648

Accrued Compensation 24,342 - - 24,342 25,806 (1,464)

Accrued Interest Payable 5,487 45,210 - 50,697 17,840 32,857

Other 24,528 2,001 14 26,543 25,629 914 (4)

TOTAL CURRENT LIABILITIES 155,723 75,198 6,634 237,555 232,742 4,813

NONCURRENT LIABILITIES:

Long Term Debt 358,890 2,881,619 - 3,240,509 3,305,181 (64,672)

Other Long-Term Liabilities - 594,136 - 594,136 594,136 -

Net Pension Liability 319,177 - - 319,177 319,177 -

TOTAL NONCURRENT LIABILITIES 678,067 3,475,755 - 4,153,822 4,218,494 (64,672)

TOTAL LIABILITIES 833,790$ 3,550,953$ 6,634$ 4,391,377$ 4,451,236$ (59,859)$

DEFERRED INFLOW OF RESOURCES 58,405$ 280$ -$ 58,685$ 58,737$ (52)$

NET POSITION

Net Investment in Capital Assets 843,000$ 2,027,030$ -$ 2,870,030$ 2,987,538$ (117,508)$

Restricted - Debt Service, Projects and Deferrals 47,526 108,497 - 156,023 119,307 36,716

Restricted - TABOR Reserves 11,247 1,839 5,428 18,514 25,940 (7,426)

Restricted - FasTracks - 225,455 - 225,455 216,395 9,060

FasTracks Internal Savings Account (FISA) - 123,523 - 123,523 92,084 31,439

Board Appropriated Fund 26,200 751 15,017 41,968 39,479 2,489

Capital Replacement Fund - 751 15,017 15,768 16,079 (311)

Unrestricted Operating Reserve/Mgt Reserve 15,400 890 15,017 31,307 15,400 15,907

Unrestricted Fund 161,314 751 - 162,065 90,998 71,067

Net Pension Liability - Represented (265,841) - - (265,841) (265,841) -

TOTAL NET POSITION 838,846$ 2,489,487$ 50,479$ 3,378,812$ 3,337,379$ 41,433$

TOTAL LIABILITIES & NET POSITION 1,731,041$ 6,040,723$ 57,113$ 7,828,874$ 7,847,352$ (18,478)$

- - - - -

(3) Decrease due primarily to reversals of year-end accruals

(4) Increase is due to unearned revenues for payments received on 2020 Eco and College passes

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YTD YTD YTD YTD YTD YTD YTD YTD $ %

Base Base FasTracks FasTracks FasTracks FasTracks System System Favorable Favorable

System System Project Project Operations Operations Wide Wide (Unfavorable) (Unfavorable)

Actual Amd Budget Actual Amd Budget Actual Amd Budget Actual Amd Budget

----------------- ----------------- ----------------- ------------- ----------------- ------------- ----------------- ----------------- ----------------- -------------

OPERATING REVENUE:

Passenger Fares 40,569$ 49,031$ -$ -$ 15,194$ 20,200$ 55,763 69,231 (13,468) -19.5%

Advertising, Rent and Other 3,167 3,405 - - 861 1,542 4,028 4,947 (919) -18.6%- - 0.0%

Total Operating Revenue 43,736 52,436 - - 16,055 21,742 59,791 74,178 (14,387) -19.4%

OPERATING EXPENSES

Bus Operations 222,379 250,700 - - - - 222,379 250,700 28,321 11.3% (1)

Rail Operations 47,480 57,358 - - 63,483 75,256 110,963 132,614 21,651 16.3% (2)

Planning 4,108 8,388 147 512 - - 4,255 8,900 4,645 52.2% (3)

Capital Programs 31,998 40,339 5,317 6,319 682 2,056 37,997 48,714 10,717 22.0% (4)

Safety, Security and Asset Management 17,250 19,780 - - 6,835 9,703 24,085 29,483 5,398 18.3% (5)

General Counsel 9,762 12,908 147 174 - - 9,909 13,082 3,173 24.3% (6)

Finance and Administration 37,528 41,775 153 148 - - 37,681 41,923 4,242 10.1% (7)

Communications 8,906 10,938 - - 115 827 9,021 11,765 2,744 23.3% (8)

Executive Office 5,915 4,945 - - - - 5,915 4,945 (970) -19.6% (9)

Board Office 673 1,143 - - - - 673 1,143 470 41.1% (10)

FasTracks Service Increase (14,508) (14,508) 14,508 14,508 - - - - - 0.0%

Depreciation and Other Non-Departmental 85,820 55,914 169,807 169,641 2,000 48,972 257,627 274,527 16,900 6.2%- - 0.0%

Total Operating Expenses 457,311 489,680 190,079 191,302 73,115 136,814 720,505 817,796 97,291 11.9%

OPERATING INCOME/(LOSS) (413,575) (437,244) (190,079) (191,302) (57,060) (115,072) (660,714) (743,618) 82,904 11.1%

NONOPERATING REVENUE (EXPENSES)

Sales & Use Tax 276,933 226,900 173,033 37,745 11,589 113,522 461,555 378,167 83,388 22.1%

Operating Grants 227,823 151,448 3,429 47,824 46,010 - 277,262 199,272 77,990 39.1%

Investment Income 3,464 528 4,241 2,283 - - 7,705 2,811 4,894 174.1%

Other Income 1,935 2,537 6,379 6,206 - 165 8,314 8,908 (594) -6.7%

Gain/(Loss) Capital Assets (3,603) - (160) - - - (3,763) - (3,763) 0.0%

Interest Expense (11,320) (12,570) (114,139) (114,163) - - (125,459) (126,733) 1,274 1.0%- 0.0%

Net Nonoperating Revenue (Expense) 495,232 368,843 72,783 (20,105) 57,599 113,687 625,614 462,425 163,189 35.3%

INCOME BEFORE CAPITAL GRANTS 81,657 (68,401) (117,296) (211,407) 539 (1,385) (35,100) (281,193) 246,093 -87.5%

Capital Grants and Local Contributions 4,045 35,363 73,307 101,480 - - 77,352 136,843 (59,491) -43.5% (11)

INCREASE/(DECREASE) IN NET

POSITION 85,702$ (33,038)$ (43,989)$ (109,927)$ 539$ (1,385)$ 42,252$ (144,350)$ 186,602$ -129.3%

(1) Variance is due to lower parts, suppliers and purchased transportation.

(2) Variance is due to lower labor, repair parts and purchased transportation.

(3) Variance is due to projects budgeted evenly across year but not yet started.

(4) Variance is due to timing of project expenses not yet incurred, many of which are grant-funded.

(5) Variance is due to lower outside security services costs.

(6) Variance is due primarily to timing of outside counsel costs related to litigation.

(7) Variance is due to timing of outstide IT services costs for projects.

(8) Variance is due to timing of outside printing costs for schedules, other outside services and special events.

(9) Variance due to purchasing card costs that initially get coded to this cost center until they can be coded to each cost center where they were incurred

(10) Variance due timing of hosting services charges for MinuteTraq.

(11) Variance due to timing of grant fund draws, particularly the Eagle P3 FFGA and preventive maintenance grants typcially drawn late in the year.

STATEMENT OF REVENUE, EXPENSES AND CHANGE IN NET POSITION - COMBINED

(UNAUDITED)

(In Thousands)

SEPTEMBER 30, 2020

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January February March April May June July August September October November December Total Year

2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 To Date

Actual 49,293$ 48,223$ 43,604$ 46,315$ 49,235$ 56,393$ 55,044$ 55,653$ 57,796$ -$ -$ -$ 461,556$

Budget 49,293 48,223 43,604 46,315 37,022 39,318 39,106 39,429 38,810 38,583 37,238 44,013 500,955

Favorable/(Unfavorable) -$ -$ -$ -$ 12,212$ 17,075$ 15,938$ 16,224$ 18,986$

% Favorable/(Unfavorable) - Month 0.0% 0.0% 0.0% 0.0% 33.0% 43.4% 40.8% 41.1% 48.9%

% Favorable/(Unfavorable) - YTD 0.0% 0.0% 0.0% 0.0% 5.4% 11.1% 14.9% 18.0% 21.1%

Net Sales & Use Tax Received January February March April May June July August September October November December Total

2020 49,293$ 48,223$ 43,604$ 46,315$ 49,235$ 56,393$ 55,044$ 55,653$ 57,796$ -$ -$ -$ 461,555$

2019 47,010 46,355 52,545 53,173 54,360 57,730 57,419 57,893 56,984 56,651 54,676 64,624 659,418

Change from to 2019 2,283$ 1,869$ (8,941)$ (6,858)$ (5,125)$ (1,337)$ (2,375)$ (2,240)$ 812$

% Increase/(Decrease) by Month vs. 2019 4.9% 4.0% -17.0% -12.9% -9.4% -2.3% -4.1% -3.9% 1.4%

% Increase YTD vs. 2019 4.9% 4.4% -3.3% -5.9% -6.6% -5.8% -5.6% -5.3% -4.5%

REGIONAL TRANSPORTATION DISTRICT

1% SALES AND USE TAX REVENUE - SYSTEM WIDE

(In Thousands)

2020 ACTUAL VS. AMENDED BUDGET

2020 VS. 2019 ACTUALS

SEPTEMBER 30, 2020

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REGIONAL TRANSPORTATION DISTRICT

RIDERSHIP

(UNAUDITED)

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec YTD 2020 YTD 2019 Change % Change

Fixed Route 4,667 4,372 3,577 2,072 2,179 2,405 2,146 2,146 2,087 - - - 25,652 41,813 (16,161) -38.6%

Flatiron Flyer 280 269 158 48 43 51 45 50 50 - - - 995 2,540 (1,546) -60.8%

FlexRide & Special Services 45 42 28 11 11 14 15 15 15 - - - 196 423 (227) -53.6%

Total Bus Service 4,992 4,683 3,764 2,131 2,233 2,470 2,206 2,211 2,152 - - - 26,843 44,776 (17,933) -40.1%

C Line 217 210 132 78 121 121 115 117 120 - - - 1,230 1,853 (623) -33.6%

D Line 283 221 160 45 2 2 2 2 2 - - - 719 2,253 (1,534) -68.1%

E Line 319 336 230 100 131 135 127 134 135 - - - 1,647 3,382 (1,735) -51.3%

F Line 231 239 152 24 - - - - - - - - 645 2,212 (1,566) -70.8%

H Line 328 378 247 78 115 127 128 136 127 - - - 1,663 3,475 (1,812) -52.1%

L Line 57 53 21 20 28 30 28 29 25 - - - 291 521 (231) -44.2%

R Line 171 148 122 65 61 70 73 75 72 - - - 857 1,441 (583) -40.5%

W Line 342 319 206 120 126 136 149 153 149 - - - 1,701 3,147 (1,446) -45.9%

Total Light Rail 1,947 1,903 1,271 529 586 621 622 645 630 - - - 8,754 18,283 (9,529) -52.1%

A Line 639 594 240 130 208 248 276 292 295 - - - 2,923 5,815 (2,892) -49.7%

B Line 39 27 17 7 9 10 9 9 16 - - - 143 381 (238) -62.6%

G Line 149 141 101 49 49 55 54 54 48 - - - 699 878 (179) -20.4%

N Line - - - - - - - - 34 34 - 34 0.0%

Total Commuter Rail 827 762 358 186 266 312 338 355 393 - - - 3,798 7,074 (3,276) -46.3%

Access-a-Ride 64 57 35 8 12 17 17 23 25 - - - 258 551 (293) -53.1%

Access-a-Cab 9 8 7 4 5 6 6 7 7 - - - 59 97 (38) -39.6%

Vanpool 20 17 17 7 6 6 6 8 7 - - - 94 151 (56) -37.4%

Total Revenue Service 7,861 7,431 5,451 2,866 3,108 3,433 3,195 3,249 3,213 - - - 39,807 70,933 (31,126) -43.9%

Mall Shuttle 818 801 508 31 - 60 222 239 234 - - - 2,913 7,478 (4,565) -61.0%

MetroRide 55 51 31 2 - - - - - - - - 139 552 (413) -74.9%

Total Non-Revenue Services 872 852 539 33 - 60 222 239 234 - - - 3,052 8,030 (4,978) -62.0%

Total System 8,733 8,283 5,991 2,899 3,108 3,493 3,416 3,489 3,448 - - - 42,859 78,963 (36,104) -45.7%

2020 RIDERSHIP (in Thousands)

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2020 PROPOSED AMENDED BUDGET

Risk Level 2013-2018 2019 2020 2021 2013-2021

Estimated in

MTFP 2022

Estimated in

MTFP Cash Flow

2023-2026

Estimated in LRP

2027-2030

Estimated in LRP

2031-2040 Total

------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -------------

IDENTIFIED SOURCES:

Limit Fastracks funding increases for bus and paratransit expansion to CPI Medium 36,107$ 13,377$ 15,441$ 17,658$ 82,583$ 20,034$ 85,883$ 94,956$ 273,651$ 557,107$

Reduce FasTracks Minimum Unrestricted Fund Balance from $150 million Medium - - - - - - - - - -

Reduce FasTracks Operating and Maintenance Fund Balance from 3 to 2 months Medium - - - - - - - - - -

Defer the Union Pacific Railroad (UPRR) relocation for the SW Corridor Extension Low 9,000 - - - 9,000 - - - - 9,000

Achieve project underruns on FasTracks projects currently under contract 1

Low 40,804 - 15,500 - 56,304 - - - - 56,304

Sales and lease opportunities for all RTD properties 2

Low 14,078 - 601 - 14,679 - - - - 14,679

Request local financial participation in projects above the current 2.5% Low 22,179 - - - 22,179 - - - - 22,179

Restore FISA drawdowns for operations between 2031-2040 3

Low - - - - - - - 16,601 - 16,601

FasTracks sales and use tax collections above adopted budget 4

Low 3,207 - - - 3,207 - - - - 3,207

Sales tax audit/parity Low - - - - - - - - - -

Total Sources 125,375 13,377 31,542 17,658 187,952 20,034 85,883 111,557 273,651 679,077

IDENTIFIED USES:

US36 Project draws 1

(2,113) (36) (103) (3,877) (6,129) - - (33,304) - (39,433)

North Metro Project draws (22,338) - - - (22,338) - - - - (22,338)

Southeast Rail Extension (SERE) Project draws (22,179) - - - (22,179) - - - - (22,179)

Debt service and operations funding 1,3

(2) - - - (2) - (44,144) (16,601) - (60,747)

Return to 3 months O&M Fund Balance 1

- - - - - - - - - -

Total Uses (46,632) (36) (103) (3,877) (50,648) - (44,144) (49,905) - (144,697)

Net Sources and Uses 78,743$ 13,341$ 31,439$ 13,781$ 137,304$ 20,034$ 41,739$ 61,652$ 273,651$ 534,380$

FasTracks Internal Savings Account Balance 78,743$ 92,084$ 123,523$ 137,304$ 137,304$ 157,338$ 199,077$ 260,729$ 534,380$ 534,380$

1 Includes approved changes from 2020-2025 Midterm Financial Plan adopted in October 2019 and Long Range Plan adopted in October 2018, plus changes proposed in 2020 Amended Budget.

2 Sale of Civic Center air rights for $8,063 less $2,500 cost of NAMS study - these are Base System funds; plus Fort Lupton property sale of $4,096; plus Alameda property sale of $5,140, plus Montbello propoerty sale of $601

3 The Long Range Financial Plan adopted in 2018 restores funds drawn from the FISA for operations and debt service to the FISA to the extent of available funding in FasTracks.

4 The transfer of FasTracks sales and use tax revenues in excess of the annual adopted budget to the FISA was approved by the Board in October 2016.

REGIONAL TRANSPORTATION DISTRICT

FASTRACKS INTERNAL SAVINGS ACCOUNT (FISA)(In Thousands)

Actual Estimated

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 10, 2020

Subject:

3rd Quarter Investment Report

Information

POLICY REFERENCE

Investment Policy

DISCUSSION

Please find the District’s investment report for the third quarter of 2020 attached.

Economic activity and employment picked up in recent months but remain well below levels experienced

at the beginning of the year. During the third quarter of 2020 as the coronavirus outbreak caused

tremendous human and economic hardships. The U.S. unemployment rate continued to decline during

the quarter and declined to 7.9% by the end of September. The continuation of social distancing in

response to the coronavirus outbreak continued to depress economic activity and long term interest

rates although credit spreads have continued to narrow.

The Federal Reserve Open Market Committee maintained the target range for the federal funds rate to

0.00 to 0.25 percent. The Committee stated that it expects to “maintain this target range until it is

confident that the economy has weathered recent events and is on track to achieve its maximum

employment and price stability goals.” This drastic reduction in short term interest rates is now directly

impacting returns on RTD’s financial investments.

The District’s Investment Policy (the “Policy”) is conservative in nature and seeks to satisfy the three

primary objectives of: safety, liquidity and yield, in that order of importance. The Policy specifies that:

“Quarterly reports shall outline the District’s total investment return and compare the portfolio’s

performance to a publicly available index of securities having similar quality and duration characteristics

to the portfolio or sub-portfolio being measured. For the liquidity tier of the portfolio (cash and cash

equivalents), the specified index shall be the 3-month U.S. Treasury Bill Index as published by Bank of

America Merrill Lynch for the period being measured. For the enhanced cash portion of the portfolio

(securities maturing between 90 days and 5 years and with a target duration of 1 year), the designated

performance benchmark will be the Merrill Lynch 1-year U.S. Treasury Note Index.”

The total return (yield plus change in market value) on the liquidity and enhanced cash tiers of the

District’s unrestricted portfolio and investment benchmarks were as follows:

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Liquidity Tier: 3rd Quarter Y-T-D

RTD cash and cash equivalents: 0.064% 0.683%

B of A/Merrill Lynch 3-month U.S. T-Bill Index 0.039% 0.636%

Enhanced Cash Tier:

RTD enhanced cash: 0.072% 1.264%

B of A/Merrill Lynch 1-year U.S. Treasury Note Index: 0.105% 1.649%

The yield of the District’s unrestricted portfolio for the month of September was 0.28%. Investment

income year to date was $2.9 million.

Historical performance of RTD Liquidity Tier investments relative to the Investment Policy benchmark is

reflected in the following graph:

Historical performance of RTD Enhanced Cash Tier investments relative to the Investment Policy

benchmark is reflected in the following graph:

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In addition to the liquidity and enhanced cash tiers of the District’s portfolio, all other reserves are

invested in accordance with state law and additional guiding documents such as bond indentures,

and escrow agreements. The following graphs reflect characteristics of all RTD investments

excluding unrestricted cash and equivalents.

Credit rating distribution:

Moody’s Standard & Poor’s

Time to Maturity:

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Security Type Distribution: Market Sector:

ATTACHMENTS:

• INVESTMENT REPORT SEPT 2020 Page 1 (PDF)

• INVESTMENT REPORT SEPT 2020 Page 2 (PDF)

• INVESTMENT REPORT SEPT 2020 Page 3 (PDF)

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Brenden Morgan, Senior Manager, Debt & Investments

Approved by:

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REGIONAL TRANSPORTATION DISTRICT PAGE 1

2020 RETURN ON INVESTMENT REPORT

UNRESTRICTED ONLY (BASE & FASTRACKS)

AS OF SEPTEMBER 30, 2020

TOTAL

UNRESTRICTED INVESTMENTS

WEIGHTED AVG BOOK VALUE AND/OR FAIR VALUE: 2019 2020

JANUARY 392,289,990 413,340,427

FEBRUARY 385,681,224 448,329,083

MARCH 393,073,164 447,237,168

APRIL 394,059,492 466,656,387

MAY 347,851,399 484,529,209

JUNE 317,445,595 481,986,448

JULY 307,817,692 484,831,091

AUGUST 303,645,538 505,802,331

SEPTEMBER 375,476,354 528,940,723

OCTOBER 415,566,955

NOVEMBER 398,478,266

DECEMBER 410,441,257

ANNUALIZED WABV AND/OR WAFV 370,011,319 473,492,690

YTD INVESTMENT EARNINGS BASE & FT 8,068,086 3,358,484

ANNUAL INVESTMENT EARNINGS 8,068,086 4,486,150

2019 YTD YIELD, 2020 YTD YIELD 2.2 0.9

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REGIONAL TRANSPORTATION DISTRICT

QUARTERLY INVESTMENT REPORT

FOR THE QUARTER ENDING SEPTEMBER 30, 2020

QUARTERLY SEPTEMBER 30, 2020

WEIGHTED AVERAGE QUARTERLY SEPTEMBER 30, 2020 UNREALIZED TOTAL

FAIR VALUE EARNINGS QUARTER YIELD ON ADJUSTMENT TO RETURN ON

BOOK VALUE PER G/L WEIGHTED AVERAGE FAIR VALUE WEIGHTED AVERAGE

RTD Unrestricted Portfolio:

Cash Base/Fastracks Equivalents 466,567,185 297,426 0.064%

Enhanced Cash RTD BASE 5,008,116 24,548 0.490% (20,992) 0.071%

Enhanced Cash FASTRACKS 34,705,761 157,130 0.453% (132,069) 0.073%

Total Enhanced Cash 39,713,877 181,677 0.457% (153,061) 0.072%

Total Return September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019

Cash Equivalents (Base & FasTracks) 0.064% 0.188% 0.431% 0.480%

ML 3-Month U.S. Treasury Bill index 0.039% 0.022% 0.575% 0.460%

Enhanced Cash (Base & FasTracks) 0.072% 0.069% 1.123% 0.557%

ML 1-YEAR U.S. Treasury Note Index 0.105% -0.001% 1.545% 0.592%

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UNRESTRICTED

SEPTEMBER 30, 2020

PAGE 3

REGIONAL TRANSPORTATION DISTRICT

UNRESTRICTED INVESTMENT YIELD FOR THE MONTH: SEPTEMBER 30, 2020

WEIGHTED AVERAGE

BOOK VALUE SEPTEMBER

FAIR VALUE SEPTEMBER G/L ON SALES ANNUALIZED SEPTEMBER

FOR SEPTEMBER 30, 2020 EARNINGS G/L ON CALLS EARNINGS YIELD

RTD INTERNAL PORTFOLIO

CASH BASE/FT EQUIVALENTS 491,448,486 74,139 0 904,497 0.18 %

RTD BASE - Enhanced Cash 4,683,747 8,521 (1,695) 83,281 1.78 %

FASTRACKS - Enhanced Cash 32,808,490 55,503 (14,238) 503,433 1.53 %

TOTAL UNRESTRICTED 528,940,723 138,163 (15,933) 1,491,212 0.28 %

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 10, 2020

Subject:

Fiscal Sustainability Update

Information

INFORMATION

This informational item is to update the Board with any changes to Fiscal Sustainability Task Force

recommendations. Per Board policy, an update is provided periodically on the status of the Task Force

recommendations.

BACKGROUND

A Fiscal Sustainability Task Force (Task Force) was formed in 2010 for the purpose of making

recommendations detailing opportunities for operating efficiencies and revenue enhancement for the

Base System to ensure RTD’s long-term fiscal sustainability. The Task Force consisted of 22 members

with 12 of those members being external to RTD. The Task Force presented its written

recommendations to the Board of Directors in 2011. The Board of Directors subsequently approved

those recommendations and directed Staff to pursue implementation of each recommendation. The

Task Force reconvened for a final meeting in 2012 to be briefed on the progress of their

recommendations and provide an opportunity for feedback.

DISCUSSION

The Task Force made revenue enhancement, expense reduction and fiscal policy recommendations to

the Board of Directors, which were approved for further consideration and/or implementation. The

majority of the recommendations made have been completed or their status has not changed since our

last report in June 2020. Each recommendation is summarized below and expanded comments are

provided for those that have had a change in status since the last report.

Recommendations - Completed

Removing the Volatility from Sales and Use Tax Projections

RTD contracted with the University of Colorado, Leeds School of Business – Business Research Division

(Leeds) to provide sales and use tax forecasts beginning in 2011. These forecasts are updated semi-

annually by CU-Leeds each March and September.

Fund Balance Policy

Due to the volatility of RTD’s largest single revenue source, sales and use taxes, the Task Force

recommended implementation of a more robust fiscal policy regarding fund balances. In response to this

recommendation, RTD implemented a fund balance policy with a target level of three months of

operating expenses among applicable funds for both the Base System and FasTracks. Both entities are

expected to meet this goal in 2021.

Sales and Use Tax Exemptions

Exemption parity with the state of Colorado was identified by the Task Force as providing a benefit to

RTD during difficult economic conditions when the state implements exemption changes. In addition,

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exemption parity removes the complexity to vendors of RTD having different taxable items than the

state. Through legislation introduced by RTD, exemption parity took effect in 2014.

Technology and Energy Innovation

In response to the Task Force recommendation, RTD conducted an energy review of the major operating

facilities and installed equipment and lighting upgrades where possible. RTD budgets for energy

upgrades throughout the District in each annual budget. We will continue to address energy efficiency

in building systems as on-going projects are completed.

Sales and Use Tax Compliance Reviews

The Colorado Department of Revenue (DOR) collects and audits sales and use taxes for RTD. The Task

Force identified an opportunity for revenue enhancement by performing additional sales and use tax

compliance reviews based on the favorable collection experiences of Colorado cities and municipalities

that implemented these reviews. While assessments from this effort exceeded the costs, it was not

clear to what extent those assessments would be collected. RTD staff decided not to extend the

contract for this work beyond 2015 due to the limited remaining opportunities for assessments outside

of the scope of work of the DOR.

Recommendations – Ongoing

Service Optimization

Service optimization was recommended by the Task Force and implemented with Board approval in order

to match services provided with available funding sources. Service modifications were brought forward

to accommodate new FasTracks lines opened since 2016. Certain service revisions are made with each

runboard period in response to public feedback, internal ridership, and utilization data. The Reimagine

RTD Project will review service optimization as part of the project scope. Service revisions were made

in 2020 in response to continuing labor shortages and the COVID-19 pandemic and revisions will

continue to be made in 2021.

Naming Rights

The first naming rights/corporate sponsorship agreement under the Board-adopted naming rights policy

was reached with the University of Colorado for naming the University of Colorado A Line and creating

an advertising presence on the Flatiron Flyer BRT line. The naming rights contract on the A Line will

conclude in April 2021. Any additional proposed naming rights/corporate sponsorship contracts will be

brought to the RTD Board for approval.

Partnerships and Privatization

The Task Force described this recommendation as a broad area that could include items such as

privatizing routes and administrative and operational functions to reduce expenses. These have included

the lease (retail) of the DUS historic building, lease of DUS bus concourse space to Greyhound, IGAs for

improvements to US36 and the East (A) Line, partnering with the City & County of Denver on Route 15L

improvements, partnering with the City & County of Denver on the 16th Street Mall to receive a grant

and share in the O&M costs, as well as TOD activities. RTD continues to look for partnership and

privatization opportunities on an ongoing basis.

Recommendations – Low Priority

The status of recommendations made by the Task Force and categorized as having lower priority

follows:

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Charge for Parking

RTD currently charges parking fees to out-of-District patrons, in-District patrons who park longer than

24 hours, and for reserved parking. In 2016, RTD staff presented a parking management briefing at a

study session that focused on a consultant-led pay-for-parking study. In late 2016, the Board approved

the Parking Guiding Principles, which clarify how future changes to parking policy will be evaluated.

Tolling and Managed Lanes

The Task Force recommended investigating the possibility of RTD generating additional revenues

through charges for tolling and managed lanes. Enacting this recommendation would require

coordination with CDOT and other agencies. The US36 BRT project is an example of how tolling and

managed lanes can enhance RTD operations and save costs.

Home Rule Initiative

The Task Force recommended that RTD consider becoming a “Home Rule” entity which would allow

RTD to collect and audit its sales and use taxes instead of the DOR. This initiative would require

legislation. The Colorado Municipal League and other entities recommended against it. It could only be

secured for RTD by statewide constitutional amendment. As noted earlier in this report, RTD has

effected simplification of state and RTD taxation through legislation that provides for uniformity on items

taxed.

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Jannette Scarpino, Senior Manager, Budget and Financial Analysis

Approved by:

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BOARD OF DIRECTORS REPORT

To:

Debra Johnson, General Manager and CEO

Date: November 4, 2020

From:

Heather McKillop, CFO/AGM, Finance &

Administration

GM

Date:

November 4, 2020

Board Meeting Date: November 10, 2020

Subject:

LiVE Update

Information

BACKGROUND

In 2018, the RTD Board of Directors approved a new income-based fare discount program to be

implemented along with several other fare changes in 2019. This new program was named LiVE

(pronounced as in “live your best life”) and was developed using recommendations from the Pass

Program Working Group and public input. LiVE fares offer a 40% discount from RTD’s full fare rates

for eligible customers. To be eligible for the LiVE program, participants must live within the District,

have household incomes at or below 185% of the federal poverty level and be between the ages of 20

and 64 years old. Other RTD fare discount programs apply to those that are ages 19 and under and

ages 65 and older.

In conjunction with the implementation of LiVE, the non-profit fare discount program transitioned to

new rules after December 31, 2019.

DISCUSSION

In order to use the discounted LiVE fare products, customers must be able to present a valid LiVE

eligibility card to bus operators and fare inspectors. To obtain this eligibility card, customers must

apply through the State of Colorado’s Program Eligibility and Application Kit (PEAK) website. The

PEAK website is the application point for several public assistance programs, and now also offers an

option to apply for the LiVE program.

Applicants who are enrolled in certain medical, food, or cash assistance programs and fall under the

income threshold for the LiVE Program will automatically be approved (“categorical eligibility”) for the

LiVE program if they choose to apply and fulfill the age and address requirements. Applicants who do

not participate in assistance programs may apply for the LiVE program as well. After an applicant has

submitted all required information through the PEAK system for the LiVE program and has uploaded a

photo, applications that were not automatically approved by the system are reviewed for eligibility by

Denver Human Services. Data for applicants who meet the eligibility requirements and have uploaded

a photo is transferred to RTD and RTD’s LiVE eligibility card vendor for production, mailing, and card

administration. Approved participants can expect to receive their eligibility card within about two

weeks of application approval. Applicants who do not meet eligibility requirements or do not provide

the required photo or information are notified by mail.

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The PEAK application for the LiVE program became available to the public on July 29, 2019.

As of September 30, 2020, 12,282 LiVE eligibility applications have been submitted, 7,593 have been

approved, 3,649 have been denied, 1,026 are pending and the remaining 14 have been closed for other

reasons. Of the 3,649 denied, 2,111 were denied because of age, i.e. they were 19 or younger or 65

and older which entitles them to a better discount, 473 were denied because their address was out of

District, 81 were denied because it was a duplicate application, 81 were denied because the applicants

were already enrolled, 688 were denied because they did not respond to requests for a photo or

additional information, and 215 were denied because they did not meet the income threshold. Of the

1,026 pending applications, all lack an uploaded photo.

In the month of October 2020, 510 applications were approved.

The decrease in ridership caused by the COVID-19 pandemic and the suspension of fare collection from

April to June 2020 have had a significant impact on the program. The number of approved applications

went from an average of 230 per week in the first two weeks of March to an average of 100 in April,

50 in May and June,110 in July and August, 123 in September, and about 117 in October.

The 7,593 LiVE participants enrolled as of September 30, 2020, provided a mailing address1 in the

following counties: Denver 3,669, Arapahoe 1,697, Jefferson 857, Adams 710, Boulder 338, Douglas

88, Broomfield 32, and Weld 32. Note that some counties are only partially in the RTD District. 170

participants reside in the RTD District but provided a mailing address in a county outside of the District,

which is acceptable under the program rules.

From the implementation of the LiVE program through September 2020, we issued 610 LiVE MyRide

cards that were used for 15,250 trips. 3,010 mobile app users bought 38,650 mobile 3-hour passes and

day passes. Nonprofit organizations bought 139,840 LiVE paper tickets. We do not know how many

individual riders received LiVE tickets from nonprofit organizations since the number of tickets issued to

each client depends on the organization and the client’s situation.

We compared sales of LiVE mobile tickets and LiVE MyRide stored value to assess the drop in LiVE

ridership related to COVID-19. These sales only decreased by 23% between February and September

2020 (47% if adjusted for the fact that there were more LiVE participants in September than in

February). This is a significantly smaller decrease than the 67% COVID-related decrease in sales for the

same fare products across RTD’s entire customer base.

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In addition to going live on July 29, 2019, the following actions have been completed:

• LiVE fares are available through RTD’s mobile ticketing application.

• LiVE fares are available on LiVE MyRide smart cards. The cards can be ordered through the

MyRide portal and have been made available for purchase at RTD sales outlets as well as

King Soopers and Safeway stores.

• LiVE airport upgrades are available on buses and from Ticket Vending Machines (TVMs).

• Order forms for LiVE 10-ride tickets have been made available to organizations in the RTD

nonprofit program.

• RTD Operations staff and Security staff have been trained on the LiVE fares and eligibility

requirements.

• Marketing, training, product readiness and communications activities have been deployed.

• Step-by-by step instructions for applications as well as other materials are available

through the RTD LiVE web page. A LiVE Program handout has been created, printed, and

uploaded to the web page. The instructions and handout are available in English and

Spanish.

• The LiVE application process in PEAK is available to applicants in both English and

Spanish.

• RTD customer service is answering LiVE program questions and referring customers to the

appropriate parties for assistance.

• Denver Human Services is verifying income for those not categorically income-eligible

through public assistance programs.

• Denver Human Services is providing LiVE eligibility customer service by phone and e-mail.

• RTD staff are performing quality control, making any needed adjustments for uploaded

photos, working with applicants if a better photo is required, and assisting customers

whose cards have been lost or stolen.

• The [email protected] mailbox is active and being utilized to communicate with

customers about photos and cards and to field questions. Community partners can request

printed LiVE handouts through this email address.

• A feedback form about the LiVE application experience is available on the RTD website.

• RTD staff have promoted the LiVE program and answered questions at community events.

• Denver Human Services has provided information about the LiVE Program and application

at community events and to community partners and caseworkers.

• RTD hosted live and webinar training by PEAK Outreach (Boulder County) for nonprofit

organizations that are interested in helping their clients apply for LiVE.

• RTD has refined the communications plan for LiVE and is expanding outreach and

marketing activities.

• The team has identified requirements for PEAK enhancements related to the LiVE

application and application processing.

• Negotiated the scope for enhancements to the LiVE application and application processing

in PEAK with the State’s software vendor. These enhancements will include revised

verbiage in the LiVE application based on feedback. Due to the pandemic’s impacts on the

RTD budget, this project was put on hold.

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• RTD kicked off a broader marketing campaign about all fare discounts, including LiVE,

starting with in-vehicle advertising and social media posts. In June, RTD issued social

media posts for each fare discount. We also included information about the fare discounts

in the communications and outreach related to resuming front door boarding and fare

collection on July 1.

• We worked with Denver Human Services to adjust procedures due to the COVID-19

situation. The LiVE eligibility technicians are processing applications and provide customer

service remotely while the Denver Human Services offices are closed to the public. In

addition to the online application on PEAK, interested individuals have the option of

applying by phone, at least until the offices re-open.

• Executed an amendment to the intergovernmental agreement with the City and County of

Denver to add the services of an Outreach Coordinator at Denver Human Services. The

person in this new position will assist eligible riders who face barriers to completing a LiVE

application. We plan to offer this service at rotating locations throughout the District, for

example in homeless shelters.

• Created new LiVE informational materials based on feedback by customers, Denver Human

Services, and community-based organizations. This included a comprehensive questions &

answers document and short videos with basic information, how to apply, and how to use

the program. Updated the LiVE website for clarity and ease of use and added the new

materials and a new “partner toolkit” area.

• Launched a new round of communications about the LiVE program. This included issuing a

news release and posting the new LiVE videos on social media. New communications

about the program and partner toolkit were emailed to community partners and RTD

Nonprofit Program customers. PEAK Outreach and Denver Human Services disseminated

the information through their email lists as well.

On-Going:

• RTD is working with the State’s software vendor and Denver Human Services to work out

remaining “bugs” from the initial implementation in PEAK.

• RTD is evaluating next activities for the marketing campaign about the discounts offered

by RTD, in accordance with the LiVE/All Discounts Communications Plan.

• On-going communications with organizations in the RTD Nonprofit Program about program

rules, the application process, feedback, and changes due to the COVID-19 situation.

• RTD is working with homeless services providers to develop and implement a temporary

LiVE ID card. Organizations that serve individuals in emergency situations will be able to

issue temporary LiVE ID cards to their clients after the PEAK application is completed. This

will eliminate the wait time between the LiVE application and the ability to use the

discounted tickets for these individuals.

• Work with the City and County of Denver to add the services of an application outreach

worker who will help individuals apply for the LiVE Program at partner locations

throughout the District.

• A survey for LiVE customers asking for feedback on all aspects of the LiVE program was

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mailed in the week of October 26 to all current LiVE participants, with additional

communications going out to customers who provided an email address. We are asking for

information about the effectiveness of RTD communication, customer service provided by

DHS and RTD, application experience, fare products, demographics and income level, and

suggestions for improvement. LiVE participants can complete the survey by mail or online

until November 25.

Next Steps:

• Denver Human Services has started the hiring process for the LiVE Outreach Coordinator.

• Create policies, procedures, and agreements for the temporary LiVE ID card described

above.

• Compile and analyze results of the survey of LiVE participants to determine common

themes and assist customers who indicate that there is an issue with their application or

LiVE ID card that was not resolved.

• Prepare a program report after the LiVE participant survey information has been compiled

and analyzed.

• RTD will continue to refine communications materials and outreach activities.

• The team will use participation and usage numbers as well as feedback from customers,

partner organizations, and RTD staff to consider further enhancements to the program.

This will include re-assessing which fare products are available for LiVE.

1In order to limit RTD’s handling of personally identifiable information for LiVE participants, RTD only

stores the mailing address of participants but not the home address. In most cases, however, home

address and mailing address are the same or in the same county.

Prepared by:

Heather McKillop, CFO/AGM, Finance & Administration

Monika Treipl-Harnke, Sr. Manager of Revenue

Approved by:

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