October YTD 2022 Financial Performance Review: Revenues, Expenses, and Operations

CFO Report Finance and Audit Committee 12/15/22

Why we are here October YTD 2022 Financial Performance Report Financial Performance Asset Liability Management Other Finance Updates: Enterprise Risk Management Program Shared Business Planning 2024 Budget Development 2

October YTD 2022 Financial Performance Report

October YTD Performance Revenues and Other Financing Sources (in thousands) Tax Revenues Other Revenues Total Revenues & Other Financing Sources October 2022 YTD Budget $ $ $ October 2022 YTD Actual $ $ $ Variance ($) Under/(Over) $ $ $ Actuals as % of Budget 1,844,223 1,067,217 2,911,441 1,846,603 974,740 2,821,344 2,380 (92,477) (90,097) 100% 91% 97% October 2022 YTD Budget $ $ $ $ $ $ October 2022 YTD Actual $ $ $ $ $ $ Variance ($) Under/(Over) $ $ $ $ $ $ Actuals as % of Budget Expenditures (in thousands) Transit Operations System Expansion Projects Non-System Expansion Projects Debt Service Other Expenses Total Expenditures 353,293 1,748,103 82,450 115,906 52,554 2,352,305 315,496 1,368,391 29,527 93,962 35,403 1,842,779 37,796 379,712 52,923 21,944 17,151 509,526 89% 78% 36% 81% 67% 78% 4 4

October YTD Revenue Performance Total revenues of $2.8B is $90M or 3% below budget mainly due to mark-to-market adjustments to investment income and lower federal grants. Tax revenues $2M above budget. Federal grants $39M under budget. Expected to catch-up by year-end. Investment income $57M below budget. 5 5

October YTD Transit Operations Performance at 89% of budget or $38M below budget Expense transfers at 67% or $15M under budget: o Vacancies across the agency and delays on operating projects Services at 84% or $12M under budget: o Delays in facility maintenance work, prior year partner reconciliations and security & safety understaffing Insurance at 67% or $6M under budget: o Insurance carrier market softening and timing of DSTT turnover Purchased transportation at 98% or $3M under budget: o Prior year partner reconciliations 6 6

October YTD System Expansion Projects Performance at 78% of budget or $380M under budget Link at 81% or $278M under budget Lynnwood, Federal Way, Downtown Redmond and LRV Fleet Extensions o Stride at 47% or $56M under budget I-405 BRT and SR 522/NE 145th St o Sounder at 77% or $14M under budget Sounder South Capacity Expansion and Sounder Fleet Expansion o Regional Express at 65% or $7M under budget Pacific Ave SR 7 Bus Corridor o 7 7

October YTD Non-System Expansion Projects Performance at 36% of budget or $53M under budget Enhancements at 28% or $26M under budget: o Digital Passenger Info System (PIMS) o Fare Paid Zone State of good repair at 41% or $23M under budget: o Sounder Vehicle Overhaul Program o IT Network Redesign Phase 2 Administrative at 43% or $4M under budget: o IT Program 8 8

Asset Liability Management Report

Asset and Liability Management Highlights Fed tightening cycle expected to continue o Increased market volatility expected as inflation and employment data is analyzed Continuing to monitor market movements and adjust the portfolio to minimize risk and maximize returns Beginning the process to obtain additional federal loans of ~$500 million 10

Other Finance Updates

Enterprise Risk Management Foundational activities are underway to proactively create Agency level risk management Moving to an Agency level aggregation and awareness of risks Working to meet ISO standards, focus internal audit efforts, and allocate budget dollars 12

Shared Business Planning Goal Improve quality and efficiency of agency-wide planning Time savings by integrating and aligning processes. Shared understanding for improved partnerships to achieve One ST Enhanced communication and collaboration 13

Strategic Priorities Department Goals Shared Business Planning Cycle Q4 Workforce & Space Planning Goals Reporting Q3 Q1 Q2 NSEP & IT Budget 14

Thank you. soundtransit.org