Comprehensive Annual Financial Report - Metro Transit

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Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictNotes to Financial StatementsJune 30, 2011 and 201013.Interfund BalancesThe interfund receivable and payable balances as of June 30, 2011 and 2010, are asfollows:2011 2010Interfund Interfund Interfund InterfundReceivables Payables Receivables PayablesCurrent PortionGeneral Agency $ 1,122,191 $ 988 $ 554,681 $ 1,161Gateway Arch Tram System - 362,473 7,696 157,346Gateway Arch Parking Facility 12,174 106,637 54,252 -Gateway Arch Riverfront 36,896 371,124 88,693 110,868St. Louis Downtown Airport 79,001 - 449,838 171,283Bi-State Transit System 424,443 833,483 - 714,502Total current $ 1,674,705 $ 1,674,705 $ 1,155,160 $ 1,155,160These balances, which track cash activity between funds, have been eliminated in theaccompanying combined financial statements, but are included in the supplementaryschedules.14. Operating AgreementsAccording to a cooperative agreement (“Agreement”) dated May 14, 1962, as amended,with the United States Government acting through the National Park Service, Metroagreed to construct and operate a transportation system (“Tram”) in the Gateway Arch.According to the Agreement, Metro will operate the Tram until January 1, 2013, and is toreceive a monthly management fee. The monthly management fee is based upon thecurrent month's estimate of operating results. The United States Government retainslegal title to the Tram. Upon termination of the Agreement, Metro is required to transfer tothe United States Government all remaining assets from the operations of the Tram afterdischarge of all liabilities.Through the Agreement, Metro constructed and operates a 1,200 space parking facilityon the Jefferson National Expansion Memorial site. The United States Governmentretains legal title to the Gateway Arch Parking Facility. Metro is required to establishparking rates, fees and charges to operate and maintain the parking garage and to paydebt service on the Arch Parking Facility Revenue Refunding Bonds, Series 1997. Upontermination of the Agreement, Metro is required to transfer to the United StatesGovernment all assets remaining from the operations of the parking facility after thedischarge of all liabilities.55
Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictNotes to Financial StatementsJune 30, 2011 and 201015. Joint Venture AgreementOn June 12, 2007, Metro opened a 1,200 car parking facility (Meridian Garage) at theBrentwood I-64 MetroLink Station that had been constructed in conjunction with a privatedeveloper. The joint venture is organized under the Uniform Missouri Condominium Actof Missouri. Initially, Metro’s portion consisted of two-thirds of the non-retail portion of theparking facility.On December 16, 2010, Metro purchased the remaining one-third interest in the MeridianGarage for $5.85 million. Metro pays a management fee to a property manager tooversee the property and its day to day operations. Metro also pays for expenses relatedto the upkeep of the garage.16. Fuel HedgeMetro has adopted GASB 53 to account for their investment in oil future contracts tohedge against the volatility in diesel fuel prices. Because the fuel hedge is an effectivehedge as defined by GASB 53, the unrealized gain (loss) on the fuel hedge is reported onthe Statement of Net Assets as an investment and a deferred inflow/outflow. Thehedging instruments affected are weekly fuel hedge contracts with a notional amount of42,000 gallons each with an index of New York Harbor Heating Oil #2 as listed on theNYMEX. There were 71 and 114 open contracts at June 30, 2011 and 2010,respectively. On average, it costs Metro $32 to acquire a fuel hedge contract. Theaggregate fuel hedge contracts cover a rolling 18-month period.Basis risk. Metro is exposed to basis risk on its fuel hedge contracts because the futurefuel purchases are based on a pricing point different from the pricing point at which thefuture contracts are expected to settle (New York Harbor Heating Oil #2).There is no termination or interest rate risk.17. Commitments and ContingenciesExpenditures financed by State and Federal grants are subject to audit by the grantingagencies to verify compliance with conditions of the grants. Management believes thatMetro is in compliance with the terms of such grants and that no significant liability willarise from audits previously performed or to be performed.In the ordinary course of business, a number of claims and lawsuits arise from individualsseeking compensation for personal injury, death, and/or property damage resulting fromaccidents occurring in the operation of the system. In addition, Metro has been namedas a defendant in a number of lawsuits relating to personnel and contractual matters.Management does not believe that the outcome of these claims will have a materialadverse effect on Metro’s financial position. However, in the event of an unfavorableoutcome in one or more of these matters, the impact could be material to Metro’sfinancial position or results of operations.56
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2011Comprehensive AnnualFinancial R
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Introduction SectionBi-State Develo
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October 26, 2011Vincent C. Schoemeh
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Sources of Local Match Funding for
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Business EnterprisesAll other opera
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Emerson Electric, Express Scripts a
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moved forward with the dedication o
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Executive OfficersJohn M. NationsPr
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Bi-State Development Agency of theM
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Board of CommissionersBi-State Deve
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Page 113 and 114: Ticket prices are: All: $62.00"Sund
Page 119: 707 N. First StreetSt. Louis, MO 63
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Comprehensive Annual Financial Report - Metro Transit

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