President’s Message O ne of the greatest milestones in the history of the Golden Gate Bridge, Highway and Transportation District (District) came on May 28, 2007, when the iconic Golden Gate Bridge celebrated its 70th anniversary. While there was no fanfare or public celebration for the 70th anniversary, several notable activities did take place. In recognition of the 70th anniversary, a new technical and historical book was released by the District—The Golden Gate Bridge, Report of the Chief Engineer, Volume II. This volume chronicles the engineering undertakings at the Bridge from 1940 to the present. In addition, three original Golden Gate Bridge construction workers were brought together with members of the Board of Directors and staff to reminisce about the construction of the now famed span (see more on page 3). Also, the fifth annual collectible Golden Gate Bridge holiday ornament made its debut. Both the book and the ornament are available for purchase through our website at www.goldengate.org. Over this rich 70-year history, tremendous achievements have been made and a tradition of excellence established all while facing wide-ranging challenges. In 1937, it could not have been imagined by anyone that the Golden Gate Bridge, now one of the most recognized symbols in the world, would be visited by millions each year and crossed by 40 million vehicles annually. The Golden Gate Bridge, once the longest suspension span ever built, is now recognized around the world as one of the greatest engineering marvels and construction achievements of the 20th century. Over the last two decades, I have had the honor and privilege of serving on this Board four different times, as a representative of San Francisco. During this time, I have seen incredible dedication to excellence at all levels within the District. Finding solutions and advancing initiatives for continued excellence in public service is at the heart of this organization. Just looking back over the last two decades, so many projects and programs have advanced that it can be easy to overlook these significant accomplishments. To name only a few: emergency ferry services provided after Loma Prieta in 1989, public safety patrols added to the Bridge sidewalks in 1996, initiating the Bridge’s seismic retrofit construction project in 1997, the launch of the FasTrak® toll collection system and the addition of ferry service to the San Francisco Giants ballpark in 2000, the addition of the Public Safety Railing on the Bridge in 2003, the addition of bike racks to all buses between 1999 and 2006, ongoing bus and ferry related improvements for persons with disabilities, the purchase of 252 new buses since 1991, and the addition of two new high-speed ferries in 1998 and 2001. I do want to recognize the one new Board member that joined us this past fiscal year—on January 23, 2007, Marin County Supervisor Charles McGlashan joined the Board replacing Marin County Supervisor Cynthia Murray. The Board and staff all look forward to continuing our dedication to excellence to our organization and our vital public services. 2006-2007 Annual Report John Moylan Board President 1 Board of Directors & Executive Management Team Board of Directors Officers of the District John Moylan, President, City and County of San Francisco Albert J. Boro, 1st Vice President, Marin County Tom Ammiano, 2nd Vice President, City and County of San Francisco General Manager/CEO Celia G. Kupersmith Auditor-Controller/CFO Joseph M. Wire Attorney David J. Miller District Engineer Denis J. Mulligan Secretary of the District Janet S. Tarantino City and County of San Francisco Bevan Dufty Dick Grosboll Sabrina Hernández Jake McGoldrick Lynne Newhouse Segal Janet Reilly Gerardo Sandoval Marin County Harold C. Brown Charles McGlashan J. Dietrich Stroeh Sonoma County Mike Kerns Michael F. Martini Maureen Middlebrook Del Norte County Gerald D. Cochran Napa County Barbara L. Pahre Mendocino County James C. Eddie Deputy General Managers Administration & Development Teri W. Mantony Bridge Division Kary H. Witt Bus Division Susan C. Chiaroni Ferry Division James P. Swindler District Overview The mission of the Golden Gate Bridge, Highway and Transportation District is to provide safe and reliable operation, maintenance and enhancement of the Golden Gate Bridge and to provide transportation services, as resources allow, for customers within the U.S. Highway 101 Golden Gate Corridor. 828 District Employees Total Golden Gate Bridge Traffic 39,516,006 Golden Gate Transit Riders 7,213,406 Golden Gate Ferry Riders 2,024,935 Operating Revenues $154.1 million1 Operating Expenses $129.2 million Capital Grant Revenues $34.1 million Capital Expense $11.3 million 1 The Board of Directors designated $10.3 million in operating revenues to fund future capital projects and Bridge insurance; any remaining excess of revenues over expenses has been placed in Unrestricted Net Assets. 2 Golden Gate Bridge, Highway and Transportation District Tribute to Original Bridge Workers In celebration of the 70th anniversary of the Golden Gate Bridge on May 28, 2007, the Board invited three of the original Bridge construction workers to a luncheon in their honor. With the vast majority of original Bridge workers no longer with us, it was a special opportunity to share stories with three incredible men. The legacy of all of the original workers will live on in our hearts for many, many years to come as we continue the caretaking of this special span. Charles H. Heinbockel was born in San Francisco in 1911. He is a graduate of the class of 1929 from Mission High school and attended Saint Mary’s College with a football scholarship, graduating in 1934. Heinbockel worked on the Golden Gate Bridge from the summer of 1933 to 1935. He worked on the construction of the anchorages and also on the Roebling Brothers main cable crew. In 1936, he returned to school at the University of Southern California where he earned his teaching credential. After teaching, he began a career in the United States Navy and served as a Commander of Navy Intelligence from 1941 to 1967. During his post-Navy years he returned to teaching in San Francisco, retiring in 1976. He also served as a Director and President of the Saint Mary’s College Gaelsports. Heinbockel is a veteran of World War II, Korean War, and Vietnam. Heinbockel was husband to Catherine Heinbockel for 65 years. He passed away in Burlingame, CA, on November 13, 2007. Rolf Jensen was born in San Francisco in 1910. Jensen worked for Barrett & Hilp Construction Company for 37 years. He worked for Barrett & Hilp during the entire construction period of the Golden Gate Bridge. He also worked in the gold mines of the San Gabriel Mountains, on constructing the San Francisco-Oakland Bay Bridge, on concrete boats destined for the South Pacific during World War II, on Napa’s Queen of the Valley Hospital in 1954, on the BART Transbay Tube in 1969, and on dozens of other projects. Jensen retired in 1977 as general superintendent of Swinerton & Walburg Construction Company. He now resides in Browns Valley, Napa County, CA. Edward Ashoff (pictured above on the left) was born in Sausalito in 1915. Two years after graduating from Mill Valley’s Tamalpais High School he went to work on the Golden Gate Bridge. He hauled rivets to the top of the San Francisco tower and helped with the spinning of the main cables. Ashoff commuted to the job site by boat from Sausalito. After pursuing various other jobs in the late 1930s and serving in the Navy in World War II, he returned to work for the Bridge as a toll collector. He ultimately was promoted to Bridge Captain in 1969 and retired from that position in 1976. He now resides in Mill Valley, CA, with his wife Dorothy. Original Golden Gate Bridge workers (pictured left to right) Charles H. Heinbockel, Rolf Jensen and Edward Ashoff at a luncheon in their honor May 2007. 2006-2007 Annual Report 3 General Manager’s Message T Celia G. Kupersmith General Manager 4 he sense of wonder that envelops the Golden Gate Bridge began in May 1937 as it opened to a week of celebrations. Over its 70 years, the enthusiasm for this beloved span has only continued to grow. Both Bay Area residents and visitors have a strong kinship with this majestic span. It is a bridge built by the people—the people that voted to back the construction bonds and the workers that endured harsh conditions and dramatic heights to construct what we all enjoy today as an incredible engineering marvel. The Golden Gate Bridge is a testament to many—both the past and present: members of the Board of Directors; managers and staff; elected officials; engineers; consultants; geologists; seismologists; planners; contractors; bridge workers; and the many, many hundreds of others who have contributed to creating and sustaining a legacy of excellence. For 70 years, the Golden Gate Bridge, Highway and Transportation District has continued a tradition of quality based on innovation and progress. And our dedication to the stewardship of this world-renowned icon will continue well into the future. Most recently, we have made great strides in advancing the use of technology to improve services while providing added customer benefits. For example, this fiscal year, in addition to the continued advancement of our financial reporting systems, we replaced the original FasTrak® electronic toll collection equipment installed in 2000 with a newer, more robust system that improve auditing capabilities and customer convenience. One very critical preservation project is set to start next year—the restoration of the exterior of the main cables. Most importantly, we continue towards the completion of the seismic retrofit. The retrofit of the Marin approach viaduct is compete, the retrofit of the San Francisco approach viaduct is nearing completion now, and we will begin the retrofit of the north anchorage housing next, followed by the main span and towers. Our bus and ferry transit services continue to be a key ingredient to the reduction of traffic congestion on the Golden Gate Bridge throughout the day. In fact, the investment of toll dollars to assist in operating our transit systems reduces Golden Gate Bridge traffic by more than 30 percent in the peak morning hour. Our transit services continue to serve the region effectively with a variety of transit choices. In fact, this year ferry ridership climbed to the highest ever since 1979. All buses, even our 57-passenger coaches, are now equipped with bicycles racks. We are proud to be one of the first Bay Area transit agencies to launch a new smart card transit fare payment technology system—TransLink®—on all buses and ferries. This new system offers improved convenience as customers no longer have to carry cash or purchase ticket books. In summary, this past year has been one of both celebration of our history and movement forward into our future. All of our employees continue to serve their public with our tradition of pride and excellence. Like all of you, we love this Bridge and celebrate its unique place in the world. Golden Gate Bridge, Highway and Transportation District Golden Gate Bridge Program Highlights Seismic Retrofit Construction Project Status On April 25, 2007, the American Society of Civil Engineers (ASCE) honored the Seismic Retrofit Phase 2, South Approach Structures Project with its Outstanding Civil Engineering Achievement Award. This highly prized award recognizes projects for their resourcefulness in addressing planning and design challenges, impact on the environment, pioneering uses of materials and techniques, and construction innovations. The project team consisted of District staff, HNTB Corporation and The Duffey Company’s personnel managing the project construction; the project designer Jacobs-Sverdrup/Thomas Jee & Associates; and the prime constructor Shimmick Construction/Obayashi Corporation, a Joint Venture. The U.S. Geological Survey has recently reported that there is a 65 percent probability that an earthquake with a magnitude of at least 6.7 will strike the San Francisco Bay Area before the year 2030. And the Golden Gate Bridge (Bridge), as a structure vulnerable to significant earthquake damage, is being retrofit to withstand an 8.3 Richter scale-magnitude earthquake occurring on the San Andreas Fault. In August 1997, after several years of extensive seismic design effort, a three-phased Seismic Retrofit Construction Project began. The retrofit of the Marin approach viaduct (Phase 1) was completed in 2001. The retrofit of five San Francisco approach structures (Phase 2) is nearing completion now. The third and final phase will be done in two parts—the Marin anchorage housing and pylons (Phase 3A), which will begin in 2008, and the suspension bridge and towers (Phase 3B), which is anticipated to begin in late 2009. The Seismic Retrofit Phase 2, San Francisco approach structures project included the retrofit of five structures: the south approach viaduct, anchorage housing, two south pylons, and Fort Point arch. The retrofit techniques used greatly decreased the magnitude of earthquake-induced forces in the structures. The pylons were amended so they could dampen seismic energy through rocking motion. Pylon foundations were fortified by expanding their depth and by anchoring each pylon to the bedrock. Pylon walls received an “armor” of interior and exterior steel plating. The exterior plates were covered by concrete cast in rough lumber replicating the original architectural concrete finish. The steel Fort Point arch structure was modified into a huge energy 2006-2007 Annual Report 5 damping element by installation of the energy dissipation devices, bearing uplift guides and impact force reducing devices. The original riveted connections of the Fort Point arch were enlarged and transformed into modern bolted connections. Steel members were strengthened with tons of added steel. To complete the system, “breakaway” seismic isolation joints were constructed in the roadway deck at each end of the arch to enable the arch to move independently from the adjacent pylons during an earthquake. At the south approach viaduct, “breakaway” seismic isolation joints were constructed in the roadway deck at each end, all support towers and bents were replaced with new supports, and seismic isolation bearings were installed atop the new supports. The west wall of the south anchorage housing was completely replaced and the east wall was strengthened. The project also minimized construction impacts on the surrounding physical environment, including construction operations and material deliveries staged for continuous flow of vehicular, pedestrian and bicycle traffic; installations of platforms on the Fort Point arch, shielding the historic Fort Point structure from damage; a shuttle to the site for workers to minimize construction traffic impacts on local roads; and implementation of water, air and noise pollution prevention by an on-site environmental monitor. Suicide Deterrent Study Status In March 2005, the Board authorized proceeding with the Environmental Studies and Preliminary Design for a Suicide Deterrent System on the Golden Gate Bridge with the express understanding that the funds would come from sources outside of the District. These studies, once completed, would enable the Board to ultimately determine whether to proceed with construction of a physical suicide deterrent system. By June 2006, full funding for the studies was identified: the Metropolitan Transportation Commission provided $1,850,000; the City and County of San Francisco provided $100,000; $25,000 was contributed by the County of Marin; and public and private citizen groups contributed $28,700. On September 22, 2006, a $1.8 million contract was awarded to DMJM Harris, Inc., Oakland, CA, to undertake preliminary design and wind tunnel testing, prepare the necessary environmental documents, and conduct public outreach. The study was divided into two phases: Phase 1 would involve the wind tunnel testing of several conceptual designs to identify what options could work from an aerodynamic standpoint. Phase 2 would encompass the development of alternatives, including a “no build” alternative, as well as the preliminary engineering and environmental analysis. In November 2006, Phase 1 wind tunnel testing began and included a “pass-fail” analysis of three generic concepts: (1) Horizontal nets, (2) Adding to the existing railing, and (3) Replacement of the existing railing with new taller railing. The wind analysis was successful in identifying design parameters that would not negatively impact the wind response of the Bridge. On May 24, 2007, the wind test findings were released and included the following highlights: (1) All potential solutions will need a wind appendage device, either a fairing or winglet; (2) None of the generic concepts tested prevent the addition of a moveable median barrier to the roadway, from a wind analysis perspective; (3) Replacing the existing railing provides more potentially workable variations; (4) Railing heights ranging from 8 to 14 feet are workable; (5) Railing solid ratios could range from 12 percent to 23 percent. Phase 2 began on June 14, 2007. The Phase 1 generic concepts that passed the wind test will be used to develop potential alternatives for further engineering and environmental analysis. A draft environmental document is targeted for public and agency circulation by mid2008, with a final environmental document following in late 2008. A special project website was established at www.ggbsuicidebarrier.org and provides current information on the status of the project. 6 Golden Gate Bridge, Highway and Transportation District Suspender Rope Painting Underway In fall 2006, the painting of the Bridge’s 250 sets of vertical suspender ropes began with crews working from both the east and west sidewalks. On the west sidewalk the traditional Cable Sky Box (pictured far right) method is being used—two painters work from an enclosed wooden box structure where they are protected from the elements and do the preparation work and the painting manually. The wooden box moves up and down the suspender ropes using air driven hoists. On the east sidewalk, a new automated system known as the Cable Master is in use. This system features patented devices that clean the suspender ropes and apply paint. The devices are hauled up and down the suspender ropes by electric hoists. The hoists and system controls are located on the Bridge sidewalk. New Suspended Access System In December 2006, Safway Services, Inc., Waukesha, WI, was selected to supply the Bridge with its QuikDeck™ suspended access system. The new access system will be used by workers to perform various ongoing maintenance tasks including painting the Marin approach viaduct. The access system offers a safe and stable platform as well as sufficient work load capacity. It also provides full containment for cleaning and painting, a requirement of environmental and air quality regulations. In May 2007, Bridge crews began installation of the access system in the Marin approach viaduct structures. New FasTrak® Equipment Installed On July 14, 2006, a $4.5 million contract was awarded to TRMI Systems Integration, Accord, NY, for replacement of the FasTrak toll lane and toll plaza equipment. The contract, all funded through Bridge tolls, included the equipment, installation and a three-year maintenance contract. The original FasTrak toll equipment was installed in 1999 and was approaching the end of its seven-year life cycle. The toll lane equipment replacement included portions of the roadway treadle system which is used to determine how many axles a vehicle has; toll collectors receipt printers, touch screens, and card readers; driver feedback displays; overhead tag readers; violation enforcement cameras; and lane controller hardware and software. The toll plaza equipment was replaced with a more robust system that included hardware and software to exchange toll transaction and violation files with the Regional FasTrak Customer Service Center, manage the databases, support revenue audit processes and generate traffic and revenue reports. The installation was completed in July 2007. Safety Awareness Zone Established On March 23, 2007, in accordance with Senate Bill (SB) 988, introduced by Senator Carole Migden, the Board designated the Bridge as a Safety Awareness Zone (SAZ) and approved the SAZ Plan. SB 988 was signed into law on September 29, 2006, and designated the Bridge as a SAZ upon the passage of a resolution by the Board authorizing such designation and upon approval by the Board of a SAZ Plan. Designation of the Bridge as a SAZ took effect immediately upon approval by the Board and will remain valid for a period of three years and can be extended for another three years upon future approval by the Board. In accordance with SB 988, a SAZ Plan was developed which includes an overview of the history of efforts to promote safe travel across the Bridge and identifies several education, enforcement and engineering measures that should be pursued in conjunction with the new SAZ designation. 2006-2007 Annual Report 7 Merchant Road Realigned Construction began in August 2006 to realign Merchant Road located on the southwest side of the Bridge. Merchant Road was realigned to create a new, safer 4-way intersection with Lincoln Boulevard and Storey Road in The Presidio. New sidewalks, bicycle lanes and crosswalks were added; as well as a new paved parking lot on the north side of Merchant Road. This project was undertaken cooperatively by the District, The Presidio Trust and the Golden Gate National Recreation Area. Golden Gate Transit and Golden Gate Ferry Program Highlights TransLink® Launched Under the leadership of the Metropolitan Transportation Commission, a major step in the ultimate regional rollout of the Bay Area’s TransLink transit fare smart card began on November 17, 2006, with the pre-launch of TransLink on Golden Gate Transit (GGT), Golden Gate Ferry (GGF), and AC Transit. During pre-launch, additional bus and ferry passengers were recruited to use TransLink to assist in identifying any remaining issues. During pre-launch, about 2,400 GGT passengers and 1,680 GGF passengers were using the system during this final round of troubleshooting. The full system-wide launch of TransLink began on GGT, GGF, and AC Transit on September 17, 2007. The system will expand in phases over the next several years to include all other Bay Area transit agencies. The credit card-sized TransLink card stores value for the customer in the form of electronic cash (e-cash) and transit passes. To pay a fare, customers simply “tag“ their card by touching it to one of the card readers installed on GGT buses or at GGF terminals. In an instant, the card reader automatically deducts the correct fare and applies any appropriate discounts, including transfers. Customers never again have to fumble for exact change or juggle multiple passes and transfers. Ferry Ridership Sets Record This fiscal year system-wide ferry ridership climbed to 2,024,935 passengers, nearly reaching the 1979 high of 2,065,053. GGF also broke the 1982 record for highest system-wide ridership on an individual day. On January 6, 1982, ridership hit 16,393 during the massive flooding in Marin County. On Friday, June 23, 2006, this was surpassed as ridership topped out at 16,817. On Friday, July 21, 2006, this record was surpassed when ridership hit 24,899. This year was the seventh year of operating special direct ferry service to the San Francisco Giants ballpark in San Francisco from Larkspur. While no ridership records were set, over 72,000 fans used this service. M.S. Marin Refurbished On October 27, 2006, a contract was awarded to Bay Ship and Yacht Co., Alameda, CA, for the refurbishment of the GGF vessel M.S. Marin. The $7.9 million project was funded using 76 percent Federal Transit Administration grant funds, with the remainder coming from Bridge tolls. The M.S. Marin was the first of three Spaulding class vessels placed into service between 8 Golden Gate Bridge, Highway and Transportation District Larkspur and San Francisco in 1976. The overhaul included all new interior and exterior seating, paint, deck covering and carpeting, ceilings and wall paneling, lighting, public address system, restrooms, refreshment sales area, security cameras, windows, bicycle racks that can accommodate at least 70 bicycles, a modern lift for persons with disabilities, generator and electrical system. The refurbished M.S. Marin returned to service in July 2007 and is being used primarily on the Sausalito route to/from San Francisco. New Ferry Purchase On June 23, 2006, the Board authorized the purchase of a new 499-passenger high-speed ferry. To finance the $12 million purchase, 80 percent will come from Federal Transit Administration grant funds, and Bridge tolls will cover 20 percent. Purchasing a new highspeed catamaran has two primary advantages: it will increase available capacity on the Larkspur/San Francisco route as ridership continues to grow and it will also provide a “backup” high-speed vessel during times of service disruptions such as annual mandatory U.S. Coast Guard dry-docking and unforeseen maintenance requirements. Currently during these times, the weekday high-speed trips are replaced with a slower Spaulding vessel which adds 15 minutes to the crossings. A back-up high-speed vessel will allow for continuous high-speed service and assist in maintaining existing strong customer satisfaction. On March 23, 2007, the Board approved the hiring of Fast Ferry Management, Inc., Silverdale, WA, as the consultant to provide project management and construction oversight for the new ferry. The process of developing the vessel design and appropriate engine technology is underway. Bus Fleet 100 percent Bike Rack Equipped In July 1999, GGT launched its Bike Racks on Buses Program with the installation of front-mounted bike racks that accommodate two bikes on all 40-foot-long buses. Because of their length, all of the 45-foot-long buses could not be equipped with front-mounted bike racks under California Vehicle Code 35400, section b.8. But, by October 16, 2006, all 45-foot-long buses were equipped with racks in the “underbelly” luggage bays that can accommodate two bikes. Grant funding for the project totaling $264,500 was provided by the Transportation Fund for Clean-Air through the Transportation Authority of Marin (20 percent) and Federal Transit Administration (80 percent). New Bus Service Demonstration Project On June 11, 2007, mid-day commuters wishing to travel between the Larkspur Ferry Terminal and the San Rafael Transit Center were offered a new alternative—Route 91. Route 91 was a demonstration project created to assist in addressing mid-day parking shortages at the Larkspur Ferry Terminal and operated from 9:00 am to 2:30 pm. Customers can transfer to Route 91 at the San Rafael Transit Center or they can drive to one of the convenient nearby Park and Ride and catch the bus. Installation of New Bus Shelters Underway As part of GGT’s contract with CBS Outdoors for bus shelter construction, maintenance, and advertising, 26 new shelters are being installed at GGT bus stops along Highway 101 in Marin and Sonoma counties. The new replacement shelters are equipped with photovoltaic “green” technology for illumination at night for additional passenger safety. The bus shelters are enclosed, offer limited seating, and are ADA compliant. To date, 15 shelters have been installed. 2006-2007 Annual Report 9 Information Available for PDAs A slimmed-down version of the District’s website with navigation that focuses on mobile users of PDA (personal digital assistant) devices was made available in August 2006. GGT and GGF customers can now view bus and ferry schedules, bridge and transit service alerts, and current news items when they need them the most at www.goldengate.org/pda. Local Marin Routes Modified The Marin County Transit District (Marin Transit) made significant modifications to local Marin bus routes in early September 2006 in accordance with the service plan adopted on May 30, 2006. To assist local bus riders in learning about the new bus routes and schedule changes, Marin Transit hosted several informational Open Houses and numerous “Question and Answer” sessions at various locations throughout Marin County from August 17 through September 7, 2006. District staff supported these outreach efforts as well—in the Bus and Ferry Transit Guide, at the public meetings, and on the District website. New Articulated Buses for Marin Local Service In July 2006, GGT began the process of purchasing ten new articulated buses for use on Marin Transit local bus routes. The new 60-foot-long, 62-passenger buses arrived in July 2007 and entered into service in September 2007. The new buses cost $6.6 million and were funded using 80 percent Federal Transit Administration funds and 20 percent Marin Transit funds. Muir Woods Ridership Grows In the summer of 2005, GGT began operating direct bus service to Muir Woods under a contract with Marin County using grant funds obtained by the County. Route 66 operates from southern Marin County on weekends and holidays only, Memorial Day to Labor Day. During the first season, with no fare charged, over 10,000 passengers rode the Route 66. In 2006, this number grew to 14,500, with an adult round trip fare of $1.00. In 2007, the service was expanded to operate on weekends and holidays from May through September. Another added feature in 2007 was direct connections to/from the Golden Gate Sausalito Ferry from Memorial Day to Labor Day weekend. Total riders in 2007 reached 33,500, with an adult round trip fare of $2.00. District Program Highlights On March 19, 2007, a new District-wide Management Team forum was launched to bring both department heads and mid-level managers together to have an on-going quarterly dialogue about challenges facing the District, both internally and externally, as well as to discuss solutions for making the District an even better organization. At the second session on June 11, 2007, ways to improve several internal District-critical topics were the focus—procurement process, internal communication, and developing a District “mentoring” program. The October 2007 session will allow staff to report back the ideas generated on these topics based on the input from the smaller groups that were formed. On May 21, 2007, to provide improved internal communications between District divisions and provide streamlined access to a variety of District information for employees, an intranet website was launched. The intranet site contains information on everything from District values, mission and goals to benefit information, health and safety information, training materials and information, and frequently asked questions. 10 Golden Gate Bridge, Highway and Transportation District A Tribute to Our Employees of the Month July 2006 Marvin Miller, Project Manager, Information Systems I’ve always taken the view that the purpose of my job is to find ways for others to perform their job more easily. Almost my entire career has been in software application development and I’ve thoroughly enjoyed it all. Joining the District is the icing on the cake. I’ve never worked with as great a group of people as my fellow employees. It is very gratifying to me to be recognized in this way by my peers. October 2006 Kevin Runge, Laborer, Bridge Division Employed with the District for four years, I have enjoyed working for the Bridge because it is unique. There is only one Golden Gate Bridge in the world, and that alone is very special. I enjoy working with my co-workers and coming to work every day. 2006-2007 Annual Report August 2006 September 2006 Fred Bauer, Bus Operator Suzette Norris, Administrative Assistant, Ferry Division Before coming to Golden Gate Transit, I worked and commuted to San Francisco daily and enjoyed the good service and flexibility it provided me. I have now been with the District for 17 years and am proud to be able to provide that same great service to others. I am in a position where my extra efforts can make a difference to our customers. Every day provides slightly different challenges and opportunities that allow me to help people accomplish what they need to do. Getting them where they have to go in a safe and timely manner can help make all the difference in what kind of a day they have. I would like to thank my co-workers for this recognition. My experience in the Marketing and Communications Department has served me well in my current position with the Ferry Division, which demands attention to detail while working with customers and crew. I strive to be efficient, knowledgeable and courteous in our fast-paced office. The District is fortunate to have personnel that strive to be their best and are proud of the jobs they perform. November 2006 December 2006 Vicky T. Ng, Accountant Diane Bernie, Administrative Assistant, Bridge Division A decade of working for the District has taught me to appreciate all the little things that people do that make this such a great place to work. From the Bridge Service person who sells gas to distressed motorists to the Concessions Sales Associates helping tourists find their bearings, we are a group of fine individuals who are willing to help those in need. I’ve been employed with the District for seven years. As a third generation San Franciscan, I can’t think of a better place to work. To this day, I still get the chills when I see our beautiful Bridge framed through the Waldo Tunnel. I love working for the Bridge Division because I get to interact on a daily basis with some of the most talented, creative, and highly-skilled individuals I’ve ever met. They’re always there to lend a hand or offer a word of encouragement… and, in most cases, keep me laughing! 11 A Tribute to Our Employees of the Month January 2007 February 2007 March 2007 Forrest “Woody” Becker, Ironworker, Bridge Division Neil Hurley, Deckhand, Ferry Division Edward Dean, Chief Bridge Service Operator I have been employed with the District for 18 years. The reasons I have stayed with the District all these years are, first of all, the benefits of a good steady job. Next has to be the variety of jobs I do as a metal fabricator in the shop. Working as an Ironworker for the District has been the best job I have ever had. I have been with the District 9 years. I enjoy working on the ferries and being a part of the long tradition of ferryboats on the San Francisco Bay. I have been employed by the District for 26 years and enjoy the excitement of the job when we (the Bridge Service Department) are called to act in emergency situations. I know that my crew and I can make the difference in saving someone’s life or restore order to the roadway we serve. April 2007 Rodolfo Galang, Senior Civil Engineer I’ve been working for the District for almost 8 years, and it’s a great honor to be recognized for the work I have done for the Bridge. I get an amazing feeling knowing that I help thousands of commuters pass above the Golden Gate Strait safely while they enjoy the spectacular view and unique color of the Bridge. 12 May 2007 June 2007 Ron Downing, Principal Planner Manuel Duque, Paint Laborer, Bridge Division Our GGT bus service has been in operation for over 30 years in a travel market that is constantly changing. During my 6 years with the District, I have been able to bring forward new ideas on how to reshape GGT service to meet new travel markets. I’ve worked to improve access and travel time for passengers in Sonoma County who use the popular Route 72X service, brought our service closer to residents of new developments such as Hamilton with the Route 58, and developed demonstration projects such as the successful Route 66 Muir Woods shuttle. And there’s always more to be done… Even after working for the District for 24 years, I still love coming to work because of the people and the daily challenges we face in the Paint Department. The guidance and leadership I have experienced have shown me how to work as a professional and be a better person! When the time comes, I hope to retire after giving the District 35 years! Golden Gate Bridge, Highway and Transportation District The Board of Directors of the Golden Gate Bridge, Highway and Transportation District San Francisco, California INDEPENDENT AUDITOR’S REPORT We have audited the accompanying basic financial statements of the Golden Gate Bridge, Highway and Transportation District (District) as of and for the years ended June 30, 2007 and 2006. These financial statements are the responsibility of the management of the District. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the District as of June 30, 2007 and 2006, and the changes in its financial position and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. The Management’s Discussion and Analysis and the schedule of funding progress, as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. The accompanying supplemental schedule of revenues and expenses by division is presented for purposes of additional analysis and is not a required part of the basic financial statements of the District. Such additional information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion thereon. Certified Public Accountants Walnut Creek, California November 6, 2007 2006-2007 Annual Report 13 Management’s Discussion and Analysis (Unaudited) YEARS ENDED JUNE 30, 2007 AND 2006 The following Management Discussion and Analysis (MD&A) of the Golden Gate Bridge, Highway and Transportation District’s (District) activities and financial performance provides an introduction to the financial statements of the District for the fiscal years ended June 30, 2007 and 2006. Following this MD&A are the basic financial statements of the District together with the notes thereto which are essential to a full understanding of the data contained in the financial statements. DISTRICT ACTIVITIES HIGHLIGHTS In FY 2007, the District continued to experience similar growth trends in service levels for the fourth year in a row. Bridge traffic remained essentially flat, Ferry patronage continued its growth trend and Bus patronage continued to fall. It is expected that these trends will continue in the next year. Total Southbound Vehicle Crossings % increase (decrease) Bus Patronage - Regional Service % increase (decrease) 2007 ________ 2006 ________ 2005 ________ 19,758,003 19,476,189 19,398,353 1.4% 0.4% 3,999,623 4,936,429 (19.0%) (7.6%) 3,213,783 2,497,258 28.7% 13.2% 7,213,406 7,433,687 (3.0%) (1.5%) 2,024,935 1,870,169 8.3% 6.7% 5,339,842 Bus Patronage - Local Service Under Agreement with Marin Transit % increase (decrease) 2,205,173 Total Bus Patronage Regional and Local Service % increase (decrease) Ferry Patronage % increase (decrease) Club Bus Riders % increase (decrease) 57,920 62,555 (7.4%) (16.4%) 7,545,015 1,751,945 74,861 The District is based in San Francisco and consists of three operating divisions: Bridge (including Visitor Services), Bus and Ferry, and an administrative District Division. Previously, the District oversaw a Rail Division that was closed in FY 2006. Overseeing more than 800 employees who work together in the public interest, the General Manager coordinates the operations of all divisions according to the policy and direction of the District Board of Directors. The District Board of Directors consists of 19 members representing the six member counties: San Francisco, Marin, Sonoma, Del Norte, and parts of Mendocino and Napa Counties. In FY 2007 approximately 19.8 million southbound vehicles crossed the Golden Gate Bridge and 9.3 million customers rode Golden Gate Transit. The District is unique among Bay Area transit operations because it provides transit services without support from direct sales tax measures or dedicated general funds. As the District does not have the authority to levy taxes, the use of surplus Bridge toll revenue is the only available local means the District has to support the District’s regional and transbay transit services. Presently, Golden Gate Transit Bus and Ferry operations are funded approximately 33% by surplus Golden Gate Bridge tolls and 25% by transit fares. The remainder is primarily met by State and local funds received from Marin and Sonoma counties for the provision of transit services. 14 Golden Gate Bridge, Highway and Transportation District FINANCIAL POSITION SUMMARY Total net assets serve over time as a useful indicator of the District’s financial position. The District’s assets exceeded liabilities by $532.1 million at June 30, 2007, a $48.9 million increase from June 30, 2006. A condensed summary of the District’s net assets at June 30 is shown below (in thousands): 2007 ________ 2006 ________ 2005 ________ Current and other assets $180,068 $161,374 $136,042 Capital assets 459,372 ________ 639,440 432,701 ________ 594,075 444,145 ________ 580,187 Current liabilities 29,046 31,634 31,639 Debt outstanding 61,000 61,000 61,000 17,336 ________ 107,382 18,305 ________ 110,939 19,002 ________ 111,641 398,372 371,701 383,145 12,975 14,082 13,990 Assets: Total Assets Liabilities: Other non-current liabilities Total Liabilities Net Assets: Invested in capital assets, net of debt Restricted by enabling legislation: Debt service requirements Seismic project 2,262 715 971 Transit projects 66 1,707 905 118,383 ________ $532,058 ________ ________ 94,931 ________ $483,136 ________ ________ 69,535 ________ $468,546 ________ ________ Unrestricted Total Net Assets The largest portion of the District’s net assets (74.9% at June 30, 2007) represents its investment in capital assets (i.e., bridge, buses, ferries, buildings, improvements, and equipment), less the related debt outstanding used to acquire those capital assets. The District uses these capital assets to provide services to its patrons and passengers, and visitors to the Golden Gate Bridge. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources required to repay this debt must be provided annually from operations, since the capital assets themselves are unlikely to be used to liquidate liabilities. An additional portion of the District’s net assets (2.9% at June 30, 2007) represents resources that are subject to external restrictions imposed by creditors (debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by laws through constitutional provisions or enabling legislation, that restrict the use of net assets. The remaining unrestricted net assets (22.2% at June 30, 2007) may be used to meet the District’s capital and ongoing obligations. FISCAL YEAR 2007 FINANCIAL OPERATIONS HIGHLIGHTS Ω As a result of the renegotiated contract with Marin Transit to provide local bus service within Marin County, the District reclassified the financial statements to segregate the operating and non-operating revenue components related to that contract for both current and prior years. The Marin Transit renegotiated contract that went into effect in April 2006 provides greater revenues from increased cost recoveries. Ω Operating revenues increased from $121.9 million to $127.0 million, due primarily to the full year impact of the aforementioned contract with Marin Transit. Other gains were experienced by the continuing trend of increased ridership in the Ferry Division. Ω Operating expenses before depreciation increased slightly from $120.6 million to $121.0 million. Inflationary increases in labor and benefits were offset by insurance savings associated with the Bridge self-insurance status, along with increased capitalization of labor and related benefits. Ω As a result of the above, operating income before depreciation increased from $1.3 million in 2006 to $6.0 million in 2007. Depreciation decreased from $20.2 million in 2006 to $16.2 million in 2007 as the previous year reflected a onetime adjustment of accumulated costs due to changes in the useful life of a number of existing capital assets. Operating loss before non-operating revenues and expenses decreased from a loss of $18.9 million in 2006 to a loss of $10.3 million in 2007. 2006-2007 Annual Report 15 Ω Nonoperating net revenue increased to $25.0 million in 2007 from $21.3 million in 2006 due to increased interest rates on the District’s investment portfolio. Ω Capital contributions received in the form of grants from the Federal, State and Local governments increased from $23.6 million in 2006 to $34.1 million in 2007 as a result of the implementation of several major projects. These projects include: (1) the purchase of ten Articulated Buses for use in Marin County local service routes; (2) the rehabilitation of the MS Marin ferry vessel; and (3) the Larkspur Ferry Terminal Channel Dredging. FISCAL YEAR 2006 FINANCIAL OPERATIONS HIGHLIGHTS Ω As mentioned above, the District reclassified its 2006 financial statements to reflect the revenue components related to the contract with Marin Transit for comparison purposes. Ω Operating revenues increased slightly from $117.7 in 2005 to $121.9 million in 2006 due primarily to revenues from increased cost recoveries relating to Marin Transit along with one-time insurance recoveries. Slight gains in toll and fare revenue were offset by the continuing loss of Bus patronage in 2006. Ω Operating expenses before depreciation increased by 2.5% from $117.7 million to $120.6 million. Increases, primarily in pension and fuel costs, were offset by full year savings from continuous efforts to control operations expenses, medical costs and administrative costs. Ω Operating income before depreciation was relatively flat, at $1.3 million. Depreciation increased from $18.3 million in 2005 to $20.2 million in 2006 as the previous year reflected a one-time reduction of accumulated costs due to changes in the useful life of a number of existing capital assets. Operating loss before non-operating revenues and expenses was $18.9 million in 2006, compared to a loss of $18.3 million in 2005. Ω Nonoperating net revenue experienced little change ($22.0 million in 2005 to $21.3 million in 2006). Ω Capital contributions received in the form of grants from the Federal and State governments decreased from $34.1 million in 2005 to $23.6 million in 2006 as a result of the continued reduction in spending on the Phase II construction and Phase III design of the seismic retrofit of the Bridge. This decrease is also the result of the completion in 2005 of several major projects which included the installation of particulate matter traps on buses, Larkspur Ferry Terminal berth dredging and Ferry security system improvement. Ω In March 2006, the District transferred its Rail Division assets to Sonoma-Marin Area Rail Transit (SMART); as a result, it recognized a special one-time decrease in net assets of $11.4 million. SUMMARY OF CHANGES IN NET ASSETS (In thousands) Operating revenues 2007 ________ $127,008 2006 ________ $121,908 2005 ________ $117,713 Operating expenses (121,037) ________ (120,610) ________ (117,706) ________ 5,971 1,298 7 (16,223) ________ (20,200) ________ (18,285) ________ (10,252) (18,902) (18,278) 25,033 ________ 21,305 ________ 21,954 ________ Income before depreciation and other nonoperating revenue and expenses Depreciation Operating Loss Other nonoperating revenue and expenses, net Income before capital contributions and special item 14,781 2,403 3,676 Capital contributions 34,141 23,590 34,132 Special Item-Transfer of assets to SMART ________Increase in net assets $48,922 ________ ________ (11,403) ________ $14,590 ________ ________ ________$37,808 ________ ________ 16 Golden Gate Bridge, Highway and Transportation District DISTRICT TOLLS AND FARES Golden Gate Bridge tolls are set by Board Policy and change when determined necessary by the Board. In June of 2002, the District Board approved a 66% increase in the auto cash Bridge toll to $5.00 and a 33% increase in the FasTrak toll to $4.00, effective September 1, 2002. The District Board established a policy in 1999 that increased transit fares by the local Consumer Price Index for five years. In 2006, the Board developed a second five year fare increase plan to increase transit fares by 5% per year. The tolls and fares were as follows: 2007 ______ $4.30 2006 ______ $4.35 2005 ______ $4.34 Average Bus Fare - Regional Service $2.95 $2.44 $2.34 Average Bus Fare - Local Service Under Agreement with Marin Transit $0.94 $0.97 $0.92 Average Bridge Toll Average Bus Fare - Regional and Local Service $2.05 $1.95 $1.92 Average Ferry Fare $4.53 $4.46 $4.32 REVENUES The following chart shows the major sources and the percentage of operating revenues for the year ended June 30, 2007 (tolls, transit fares, visitor services and other): Bridge Tolls 67.0% Bus Fares 9.3% Other 2.9% Ferry Fares 7.2% Visitor Services 2.5% Marin Transit 11.1% A summary of revenues for the years ended June 30, 2007 and 2006 and the amount and percentage of change in relation to prior year amounts is as follows (in thousands): 2007 Amount _________ Percent of Total _________ $ 85,043 45.2% Increase/ (Decrease) From 2006 _________ Percent Increase/ (Decrease) _________ 2006 Amount _________ Percent of Total _________ 296 0.3% $ 84,747 49.7% Increase/ (Decrease) From 2005 _________ Percent Increase/ (Decrease) _________ Operating: Bridge Tolls Bus Fares $ $ 534 0.6% 11,781 6.3% (268) (2.2%) 12,049 7.1% (444) (3.6%) 9,165 4.9% 823 9.9% 8,342 4.9% 772 10.2% 14,127 7.5% 4,140 41.5% 9,987 5.9% 1,845 22.7% Visitor Services Concessions 3,154 1.7% 95 3.1% 3,059 1.8% 42 1.4% 3,738 _________ 127,008 2.0% _________ 67.5% 14 _________ 5,100 0.4% _________ 4.2% 19,146 10.2% (1,656) 7,900 _________ 27,046 4.2% _________ 14.4% 3,664 _________ 2,008 86.5% _________ 4,236 _________ 2.5% _________ 1,601 _________ 60.8% _________ 8.0% 25,038 14.7% 2,026 8.8% 34,141 _________ $188,195 _________ _________ 18.1% _________ 100.0% _________ _________ 10,551 _________ $17,659 _________ _________ 44.7% _________ 23,590 _________ 13.8% _________ (10,542) _________ (30.9%) _________ 10.4% $170,536 _________ 100.0% $ (4,321) (2.5%) _________ _________ _________ _________ _________ _________ _________ _________ _________ Ferry Fares Marin Transit Other Total Operating 3,724 _________ 2.2% _________ 1,446 _________ 63.5% _________ 121,908 71.5% 4,195 3.6% Nonoperating: Operating Assistance Investment Income Total Nonoperating Capital Contributions Total Revenues (8.0%) 20,802 12.2% 425 2.1% The operating assistance decrease of 8.0% is mainly attributable to a reclass of operating assistance funding to Marin Transit, in accordance with the contract, along with the termination of certain Federal Operating Assistance programs. Also, investment income increased by 86.5% primarily due to rising interest rates. Capital contributions have increased by 44.7% due to major Bus and Ferry projects. 2006-2007 Annual Report 17 The District funds its operations with Bridge tolls, transit fares, government grants and other revenues from operations or investments. The operations of the Bridge Division produce a surplus of Bridge toll revenue that is used to subsidize transit operations. In addition, in years where there is not sufficient Bridge toll revenue to fully subsidize transit operations, funds are taken from District reserves to cover the shortfall. The reserves were funded with surplus Bridge toll revenues from past years. The following table, which is derived from the unaudited supplemental schedule, records how the divisions were funded in FY 2007. The table includes a $9.0 million transfer to reserves to be used to fund capital projects. How Golden Gate District was funded in FY 2007 (in thousands) Bridge Bus Ferry District Division _______ Division _______ Division _______ Total _______ Bridge Tolls $42,500 $19,500 $8,500 $70,500 Patron Fares - 11,800 9,200 21,000 Marin Transit Other Revenue Government Grants Total - 13,500 - 13,500 12,000 2,000 900 14,900 300 _______ $54,800 _______ _______ 16,900 _______ $63,700 _______ _______ 2,700 _______ $21,300 _______ _______ $139,800 _______ 19,900 _______ _______ EXPENSES The following chart shows the major cost centers and the percentage of operating expenses (excluding depreciation) for the year ended June 30, 2007: Bus 51.0% Bridge 33.2% Ferry 15.8% A summary of expenses for the years ended June 30, 2007 and 2006 and the amount and percentage of change in relation to prior year amounts is as follows: Increase/ (Decrease) From 2006 _________ 2007 Amount _________ Percent of Total _________ $ 40,228 28.9% $ (1,402) Percent Increase/ (Decrease) _________ 2006 Amount _________ Percent of Total _________ Increase/ (Decrease) From 2005 _________ Percent Increase/ (Decrease) _________ $ 41,630 26.7% $ 1,665 4.2% Operating: Bridge (3.4%) Bus 61,744 44.3% 1,511 2.5% 60,233 38.6% 1,708 2.9% Ferry 19,065 13.7% 524 2.8% 18,541 11.9% (435) (2.3%) _________121,037 0.0% _________ 86.9% Rail Total Operating Interest Expense Depreciation (Gain)/Loss on disposal of assets Special item-transfer of assets to SMART Total Expenses (206) _________ (100.0%) _________ 206 _________ 0.1% _________ (34) _________ (14.2%) _________ 427 0.4% 120,610 77.3% 2,904 2.5% 2,162 1.6% 381 21.4% 1,781 1.1% 723 68.3% 16,223 11.6% (3,977) (19.7%) 20,200 13.0% 1,915 10.5% (149) (0.1%) (2,101) 0.0% 1,952 1.3% 1,952 0.0% _________$139,273 _________ _________ 0.0% _________ 100.0% _________ _________ (11,403) _________ 0.0% _________ 11,403 _________ 7.3% _________ 11,403 _________ 0.0% _________ $(16,673) (10.7%) $155,946 100.0% $18,897 13.8% _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ The 0.4% increase in operating expenses is mainly attributable to normal inflationary cost increases associated with steady operation levels, offset by savings from conversion of the Bridge to a self-insured status, and increased capitalization of labor and benefits. Higher interest rates have continued to impact interest expenses associated with the commercial paper program. The District also experienced decreased expenses due to one-time prior year charges in the Bus Division of $2.0 million relating to the transfer of thirty-five buses to other transit agencies, and a prior year charge of $11.4 million as a result of the transfer of assets to SMART. 18 Golden Gate Bridge, Highway and Transportation District FINANCIAL STATEMENTS The District’s financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board. The District is structured as a single enterprise fund with revenues recognized when earned, not when received. Expenses are recognized when incurred, not when they are paid. Capital assets are capitalized and (except land and construction-in-progress) are depreciated over their useful lives. Amounts are restricted for debt service and, where applicable, for construction purposes. See the notes to the financial statements for a summary of the District’s significant accounting policies. CAPITAL ACQUISITIONS AND CONSTRUCTION ACTIVITIES During 2007, the District expended $42.9 million, which is an increase of $20.2 million or 89.0% over the amount expended in 2006, on capital activities. This included major construction projects, principally the seismic retrofit projects ($14.6 million), north approach viaduct suspended maintenance scaffolding system ($1.4 million), security system build-out at the Bridge ($2.1 million), Merchant Road improvements ($1.6 million), suicide deterrent investigation ($2.5 million), the purchase of ten articulated buses ($5.6 million), Spaulding vessel refurbishment ($6.9 million), Larkspur Ferry Terminal Channel Dredging ($4.0 million) and Ferry’s fuel piping system replacement ($0.5 million). During 2007, completed projects totaling $11.3 million, which is an increase of $7.1 million or 172.4% over the amount completed in 2006, were closed from construction-in-progress to their respective capital accounts. The major completed projects included the purchase and installation of security equipment necessary to support Bridge security initiatives ($2.9 million), Larkspur Ferry Terminal Channel Dredging ($4.3 million), toll plaza transfer point improvement ($1.1 million) and the installation of bike racks on 52 MCI coaches ($0.3 million). Capital asset acquisitions are capitalized at cost. Acquisitions are funded using a variety of financing techniques, including Federal grants, with matching State grants and District reserve funds, debt issuance, and District revenues. At June 30, 2007, the District has commitments of approximately $10.2 million for bridge-related projects and approximately $3.4 million for other projects. During 2006, the District expended $22.7 million, which is a decrease of $17.0 million or 42.7% below the amount expended in 2005, on capital activities. This included major construction projects, principally the seismic retrofit projects ($19.0 million), toll plaza transfer point improvement ($0.9 million), security system build-out at the Bridge ($0.8 million), installation of bike racks on the MCI buses ($0.3 million), Spaulding vessel refurbishment ($0.4 million) and Larkspur Ferry Terminal Channel Dredging ($0.3 million). During 2006, completed projects totaling $4.1 million, which is a decrease of $12.6 million or 72.6% below the amount completed in 2005, were closed from construction-in-progress to their respective capital accounts. The major completed projects included the installation of particulate matter (PM) traps on buses ($1.0 million) and security system improvement at the Ferry Division ($1.2 million). At June 30, 2006, the District had commitments of approximately $16.6 million for Bridge-related projects and approximately $3.2 million for other projects. Additional information on the District’s capital assets and commitments can be found in the notes to the financial statements. DEBT ADMINISTRATION On July 12, 2000, the District issued commercial paper notes in Series A and Series B in an amount of $30.5 million for each series to provide funds for the Golden Gate Bridge (Bridge) seismic retrofit project and the renovation of main cables of the Bridge. The commercial paper notes are secured by a pledge of the District’s revenues and two dedicated reserves, and additionally secured by a line of credit. Under this program, the District is able to issue commercial paper notes at prevailing interest rates for period of maturity not to exceed 270 days. At June 30, 2007, $61.0 million in commercial paper notes was outstanding and maturing within 30 to 270 days, with interest ranging from 3.48% to 3.68% (2.44% to 3.46% in 2006). Once the project is complete, the District plans to pay off the commercial paper over 22 years. CREDIT RATINGS AND BOND ISSUANCE Standard & Poor’s and Fitch began rating the District in 2000 when the District issued commercial paper for the first time. The District has the highest credit rating (AA- and A+) in the nation for a single toll facility. These are implied credit ratings as the District has no outstanding long-term debt. Currently, the District has $61.0 million in outstanding commercial paper and has no plans at this time to increase that amount. In connection with the sale of the commercial paper, the District has secured a Line of Credit with J.P. Morgan to guarantee the payment of interest when due. As additional security, the District established both an Operating Reserve Fund and a Debt Service Reserve Fund. Additional information on the District’s commercial paper notes payable can be found in the notes to the financial statements. 2006-2007 Annual Report 19 ADDITIONAL FINANCIAL INFORMATION This financial report is designed to provide the District’s customers, investors and other interested parties with an overview of the District’s financial operations and financial condition. Should the reader have questions regarding the information included in this report or wish to request additional financial information, please contact the District’s AuditorController at Box 9000, Presidio Station, San Francisco, California 94129-0601. 20 Golden Gate Bridge, Highway and Transportation District STATEMENTS OF NET ASSETS JUNE 30, 2007 AND 2006 (In thousands) 2007 ________ 2006 ________ $ 39,356 $ 64,787 ASSETS CURRENT ASSETS: Unrestricted assets: Cash and cash equivalents Investments 106,218 66,507 Capital and operating grants receivable 5,583 6,577 Accounts receivable 6,865 3,088 3,996 3,440 2,039 ________ 164,057 ________ 1,420 ________ 145,819 ________ 15,237 ________ 179,294 ________ 14,797 ________ 160,616 ________ Maintenance inventories and supplies - average cost Prepaid expenses Total unrestricted assets Restricted assets: Cash and cash equivalents Total current assets NONCURRENT ASSETS: Capital assets Nondepreciable capital assets: Land 6,650 6,650 209,710 ________ 216,360 ________ 178,086 ________ 184,736 ________ Bridge, related buildings and equipment 257,838 252,730 Bus transit property and equipment 110,159 114,587 83,639 79,723 Construction in progress Total nondepreciable capital assets Depreciable capital assets: Property and equipment: Ferry transit property and equipment Visitor services property and equipment Accumulated depreciation Total depreciable capital assets Total capital assets Other assets Total noncurrent assets TOTAL ASSETS 1,217 1,040 (209,841) ________ 243,012 ________ (200,115) ________ 247,965 ________ 459,372 432,701 774 ________ 460,146 ________ 758 ________ 433,459 ________ $639,440 ________ $594,075 ________ See accompanying notes to the financial statements. 2006-2007 Annual Report 21 STATEMENT OF NET ASSETS (continued) JUNE 30, 2007 AND 2006 (In thousands) 2007 ________ 2006 ________ LIABILITIES: CURRENT LIABILITIES: Trade accounts payable $ 6,977 $ 8,023 Accrued liabilities 4,815 4,812 Deferred revenue 2,292 3,245 397 573 Contract retentions 7,606 7,272 Self-insurance liabilities 6,959 7,709 61,000 ________ 90,046 ________ 61,000 ________ 92,634 ________ 7,548 6,876 9,788 ________ 17,336 ________ 11,429 ________ 18,305 ________ 107,382 ________ 110,939 ________ 398,372 371,701 12,975 14,082 2,262 715 Accrued compensated absences Commercial paper notes payable Total current liabilities NONCURRENT LIABILITIES: Accrued compensated absences Self-insurance liabilities Total noncurrent liabilities TOTAL LIABILITIES NET ASSETS: Invested in capital assets, net of related debt Restricted Debt service requirements Seismic project Transit operation Unrestricted TOTAL NET ASSETS 66 1,707 118,383 ________ $532,058 ________ ________ 94,931 ________ $483,136 ________ ________ See accompanying notes to the financial statements. 22 Golden Gate Bridge, Highway and Transportation District STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30, 2007 AND 2006 (In thousands) 2007 ________ 2006 ________ OPERATING REVENUES: Bridge tolls $ 85,043 $ 84,747 Transit fares 20,946 20,391 Marin Transit 14,127 9,987 3,154 3,059 3,738 ________ 127,008 ________ 3,724 ________ 121,908 ________ Operations 65,324 63,148 Maintenance 27,132 26,579 General and administrative 28,581 30,883 16,223 ________ 137,260 ________ 20,200 ________ 140,810 ________ (10,252) ________ (18,902) ________ Translink and paratransit assistance - 862 Translink and paratransit assistance pass-through - (862) 15,646 14,398 707 3,811 2,793 ________ 19,146 2,593 ________ 20,802 Visitor services concessions Other operating Total operating revenues OPERATING EXPENSES: Depreciation Total operating expenses OPERATING LOSS NONOPERATING REVENUES (EXPENSES): Pass-through federal capital assistance: Operating assistance: State operating assistance Federal operating assistance Local operating assistance Total operating assistance Investment income 7,900 4,236 Interest expense (2,162) (1,781) 149 ________ 25,033 ________ (1,952) ________ 21,305 ________ Gain (loss) on disposal of capital assets Total nonoperating revenues INCOME BEFORE CAPITAL CONTRIBUTIONS CAPITAL CONTRIBUTIONS INCREASE IN NET ASSETS BEFORE SPECIAL ITEM SPECIAL ITEM - Transfer of assets to SMART NET INCREASE IN NET ASSETS NET ASSETS, Beginning of year NET ASSETS, End of year 14,781 2,403 34,141 ________ 48,922 23,590 ________ 25,993 ________48,922 (11,403) ________ 14,590 483,136 ________ $532,058 ________ ________ 468,546 ________ $483,136 ________ ________ See accompanying notes to the financial statements. 2006-2007 Annual Report 23 STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2007 AND 2006 (In thousands) 2007 ________ 2006 ________ $122,421 $122,640 (65,295) (63,556) (62,331) ________ (5,205) ________ (59,678) ________ (594) ________ 21,700 ________ 19,815 ________ 32,581 22,736 CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers Cash payments to suppliers for goods and services Cash payments to employees for services Net cash used in operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating grants received CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital contributions received Capital grants disbursed to other agencies Interest paid - (862) (2,162) (1,781) Proceeds from sale of capital assets 149 - Increase in retention related to capital assets 334 744 (39,878) ________ (8,976) ________ (21,556) ________ (719) ________ (37,991) 3,093 5,481 ________ (32,510) ________ 4,281 ________ 7,374 ________ Purchase of capital assets Net cash used in capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Net proceeds (purchases) of investment securities Investment income received Net cash (used in) provided by investing activities NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS CASH AND EQUIVALENTS, Beginning of year CASH AND EQUIVALENTS, End of year RECONCILIATION OF OPERATING LOSS TO (24,991) 25,876 79,584 ________ $________ 54,593 ________ 53,708 ________ $________ 79,584 ________ $ (10,252) $ (18,902) 16,223 20,200 (3,077) 121 NET CASH USED IN OPERATING ACTIVITIES: Operating loss Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation Effect of changes in: Accounts receivable Prepaid expenses (619) 873 Inventory and supplies (556) (937) Other assets Trade accounts payable (16) 52 (4,063) (3,554) Accrued liabilities 3 383 Deferred revenue (953) 1,548 Accrued compensated absences Self-insurance liabilities Net cash used in operating activities 496 616 (2,391) ________ $________ (5,205) ________ (994) ________ $________ (594) ________ $________ 3,016 ________ $________________ $________ 1,201 ________ $________ 11,403 ________ $________ (1,720) ________ $________ 782 ________ Supplemental disclosures of cash flow information: Noncash capital and related financing and investing activities: Acquisition of capital assets in accounts payable and contract retention Transfer of capital assets to SMART Noncash investing activities: Change in fair value of investments See accompanying notes to the financial statements. 24 Golden Gate Bridge, Highway and Transportation District Notes to the Financial Statements YEARS ENDED JUNE 30, 2007 AND 2006 (1) ORGANIZATION The Golden Gate Bridge, Highway and Transportation District (the “District”) is a political subdivision of the State of California created by the legislature in 1923 and subject to regulation under the Bridge and Highway District Act, as amended. The District operates the Golden Gate Bridge, operates bus service primarily in Marin, San Francisco and Sonoma counties and operates ferry service between Marin and San Francisco counties. The disbursement of funds received by the District is controlled by statute and by provisions of various grant contracts entered into with the federal government, the State of California and certain counties within the District. The District is based in San Francisco and consists of three operating divisions, Bridge (bridge and visitor center operations), Bus, Ferry and an administrative District Division. Previously the District oversaw a Rail division that was closed out in the year ended June 30, 2006. In March 2006, the District transferred its Rail Division assets to Sonoma-Marin Area Rail Transit District and recognized a loss of $11,403,000 during the year ended June 30, 2006. The District Division has no revenues and all its expenses are allocated to general and administrative expenses of the other Divisions (see Note 12). (2) SIGNIFICANT ACCOUNTING POLICIES Reporting Entity - The District’s reporting entity includes all activities of the District. Basis of Accounting - The District is a single enterprise fund and maintains its records on the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the related liability is incurred. The District has elected under Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements, as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board, or any Accounting Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. Cash Equivalents - The District considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents (see Note 3). Investments - are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools (see Note 3). Statutes authorize the District to invest in obligations of the U.S. Treasury, its agencies and instrumentalities; certificates of deposit; commercial paper rated A-1 by Standard and Poor’s Corporation or P-1 by Moody’s Commercial Paper Record; bankers’ acceptances; repurchase agreements; reverse repurchase agreements; and the State Treasurer’s investment pool. Restricted Assets – consist of monies and other resources which are restricted legally as described below: Special Operating Fund – These assets are restricted for the Bridge Division operating expenses and principal of and interest on the 2000 commercial paper notes which must be at least equal to the lesser of $12,000,000 or 12% of the principal amount of all notes then outstanding. Debt Reserve Fund – These assets represent the 2000 commercial paper notes proceeds held in Debt Reserve Account which must be at least equal to the lesser of 125% of average annual debt service on all notes then outstanding or 10% of the principal amount of all notes then outstanding. Capital Assets - The District defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Major additions and replacements are capitalized. Maintenance, repairs and additions of a minor nature are expensed as incurred. The costs of acquisition and construction of equipment and facilities are recorded in construction in progress until such assets are completed and placed in service, at which time the District commences recording depreciation expense. Depreciation - is calculated on the straight-line method over the estimated useful lives of the assets, as follows: Bridge structural components 100 years Bridge buildings, toll plaza structure, deck and approach roadways and sidewalks 20 - 50 years Buses 12 - 16 years Ferry boats 25 - 30 years Visitor services and other transit properties 5 – 50 years 2006-2007 Annual Report 25 Effective July 1, 2005, the District changed its estimates of FasTrak transponder useful lives from a maximum of 8 years to 5 years. The District made this change to better reflect the estimated periods during which the District maintained its own FasTrak customer service center. This change had the effect of increasing depreciation expense and operating loss by $1,760,000 in fiscal year 2006. Capitalization of interest – Interest costs incurred that relate to the acquisition or construction of property and equipment acquired with tax-exempt debt is capitalized. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project, with interest earned on invested debt proceeds over the same period. Capitalized interest cost is prorated to completed projects based on the completion date of each project. No interest was capitalized for the years ended June 30, 2007 and 2006. Operating assistance grants – are recorded as revenue when earned. Capital contributions - The District has grant contracts with the U.S. Department of Transportation through the Federal Transit Administration for certain capital improvements. Federal Transit Administration funds are used to replace and improve the District’s buses, ferries and transit facilities. The District also has contracts with CalTrans for State Transit Assistance funds, which are used either to match Federal Transit Administration grants or to fund transit improvement projects. Capital funding provided under government grants is considered earned as the related allowable expenditures are incurred. Grants for property and equipment acquisition and facility development and rehabilitation are reported in the statement of revenues, expenses and changes in net assets, after nonoperating revenues and expenses as capital contributions. The District’s capital contributions for the years ended June 30, 2007 and 2006 are as follows (in thousands): Bridge Bus Ferry Division _______ Division _______ Division _______ Total _______ $21,796 $ 361 $ 656 $22,813 Capital contributions in fiscal 2006: U.S. Department of Transportation U.S. Department of Homeland Security Local Assistance Total capital contributions 602 - - 602 10 _______ $22,408 _______ _______ 156 _______ $ 517 _______ _______ 9 _______ $ 665 _______ _______ 175 _______ $23,590 _______ _______ $ 16,589 $5,352 $8,634 $30,575 1,534 - 8 1,542 851 _______ $18,974 _______ _______ 1,112 _______ $6,464 _______ _______ 61 _______ $8,703 _______ _______ 2,024 _______ $34,141 _______ _______ Capital contributions in fiscal 2007: U.S. Department of Transportation U.S. Department of Homeland Security Local Assistance Total capital contributions Compensated Absences – Accumulated vacation and sick leave are recorded as an expense and liability as the benefits accrue to employees. Operating Revenues and Expenses - consists of those revenues that result from the ongoing principal operations of the District. Operating revenues consist primarily of bridge tolls, transit fares and gift center sales. Effective with the renegotiated contract entered into in April 2006 with Marin County, the transit fare revenue for the Marin local service lines ($2,986,000 in 2006) is shown separately and the related revenues from Marin County’s state and local funding sources ($7,001,000 in 2006) are reclassified from nonoperating revenues to operating revenues. Nonoperating revenues and expenses consist of those revenues and expenses that are related to financing and investing type of activities and result from nonexchange transactions or ancillary activities. When an expense is incurred for purposes for which there are both restricted and unrestricted net assets available, it is the District’s policy to apply those expenses to restricted net assets to the extent such are available and then to unrestricted net assets. Special Items – Significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence. In March 2006, the District transferred its Rail Division assets to SMART and recognized a loss of $11,403,000. Net Assets - comprise the various net earnings from operating income, nonoperating revenues, expenses and capital contributions. Net assets are classified in the following three components: Invested in capital assets, net of related debt – This component of net assets consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net assets component as the unspent proceeds. 26 Golden Gate Bridge, Highway and Transportation District Restricted - This component of net assets consists of external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation, that restrict the use of net assets. Unrestricted - This component of net assets consists of net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.” Pension Plans - The District participates in several pension plans covering all employees. Certain union members are covered under single employer or multi-employer plans while other union and nonunion employees participate in the State of California’s Public Employees’ Retirement System. Pension contributions are based on rates established by negotiated labor contracts or by the actual plans. The District’s policy is to fund pension costs as accrued (see Note 8). Postemployment Health Care Benefits - The District provides postemployment health care benefits to certain employees and their dependents. The District recognizes the expenses for such costs on a pay-as-you-go basis (see Note 9). Effects of New Pronouncements Not Adopted - The District anticipates adopting GASB 45 in fiscal year ending June 30, 2008 when it become effective. In June 2004, GASB issued Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, which addresses how state and local governments should account for and report their costs and obligations related to postemployment healthcare and other nonpension benefits. Collectively, these benefits are commonly referred to as other postemployment benefits, or OPEB. The statement generally requires that employers account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions. Annual OPEB cost for most employers will be based on actuarially determined amounts that, if paid on an ongoing basis, generally would provide sufficient resources to pay benefits as they come due. This statement’s provisions may be applied prospectively and do not require governments to fund their OPEB plans. An employer may establish its OPEB liability at zero as of the beginning of the initial year of implementation; however, the unfunded actuarial liability is required to be amortized over future periods. This statement also establishes disclosure requirements for information about the plans in which an employer participates, the funding policy followed, the actuarial valuation process and assumptions, and, for certain employers, the extent to which the plan has been funded over time. In December 2006, GASB issued Statement No. 49, Accounting for Remediation Obligations. This statement requires state and local governments to provide the public with better information about the financial impact of environment cleanups. This statement is effective for the District’s fiscal year ending June 30, 2009. In May 2007, GASB issued Statement No. 50. Disclosure Requirements for Governmental Pensions and Retiree Healthcare. The statement requires agencies to more closely align current pension disclosure requirements with retiree health insurance and other post-employment benefits (OPEB). The District will implement GASB Statement No. 45 (Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions) in fiscal year ending June 30, 2008 and will implement Statement No. 50 at the same time. In July 2007, GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible Assets, providing additional guidance on the accounting of intangible assets. Although the statement is effective for fiscal years beginning after June 15, 2009, the District expects to be in compliance by fiscal year ending June 30, 2008. Use of Estimates – The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Reclassifications - Certain 2006 amounts have been reclassified to conform to the 2007 presentation. (3) CASH AND INVESTMENTS The District maintains cash and investments that are available for general use subject to prior Board designations and debt covenant restrictions. At June 30, cash and investments are comprised of the following (in thousands): 2007 _________ 2006 _________ $ 39,356 $ 64,787 106,218 _________ 145,574 66,507 _________ 131,294 15,237 _________ $160,811 _________ _________ 14,797 _________ $146,091 _________ _________ Reported as: Unrestricted: Cash and cash equivalents Investments Total unrestricted cash and investments Restricted: Cash and cash equivalents Total cash and investments 2006-2007 Annual Report 27 Deposits - Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The California Government Code requires California banks and savings and loan associations to secure governmental deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of the District’s deposits. California law also allows financial institutions to secure governmental deposits by pledging first trust deed mortgage notes having a value of 150% of the District’s total deposits. Such collateral is considered to be held in the District’s name. As of June 30, 2007 (and 2006), of the District’s bank balance of $7,079,000 (2006, $6,712,000), approximately $6,879,000 (2006, $6,536,000) held in contract retention escrow accounts is uninsured and uncollateralized. Investments At June 30, 2007 and 2006 cash and investments were comprised of the following (in thousands): June 30, 2007 _____________________________________ Fair Investments Federal Agency Notes Federal Agency Notes (Callable) Certificate of Deposits Municipal Bonds June 30, 2006 ______________________________________ Investment (Maturities in Years) ________________________ Investment (Maturities in Years) ________________________ Fair Value _________ Less than 1 _________ 1-5 _________ Value _________ Less than 1 _________ 1-5 _________ $ 37,470 $ 22,595 $ 14,875 $ 28,609 $ 6,525 $ 22,084 29,540 - 29,540 23,655 - 23,655 - - - 25,973 25,973 - 3,639 - 3,639 - - - Medium-term Corporate Notes 35,568 4,958 30,610 17,916 - 17,916 Commercial Paper 23,761 23,761 - 31,822 31,822 - 22,490 22,490 - 9,583 9,583 - 873 ________ 873 ________ ________- 826 ________ 826 ________ ________- 153,341 $ 74,677 ________ ________ $ 78,664 ________ ________ 138,384 $ 74,729 ________ ________ $ 63,655 ________ ________ Investment in State Treasurer’s Investment Pool Federal Obligation Mutual Funds Cash and deposits Demand deposits Cash on hand 7,441 7,678 29 ________ 29 ________ $ 146,091 ________ ________ $ 160,811 ________ ________ Interest Rate Risk – Interest rate risk is the risk that changes in market rates will adversely affect the fair market value of an investment. State law limits investment maturities to five years as a means of managing entities’ exposure to fair value losses arising from increasing interest rates. In addition, the District limits eligible commercial paper to have a maximum maturity of 270 days or less. The District invests in callable Federal Agency notes as noted above. These issues are sensitive to interest rate changes and are callable at par prior to maturity based on these rate changes. Credit Risk – The District’s investment policy limits corporate commercial paper and medium-term corporate notes investments as follows: Corporate commercial paper rated in the highest short-term category, as rated A-1 by Standard and Poor’s Corporation or P-1 by Moody’s Commercial Paper Record; provided that the issuing corporation is organized and operating within the United States, has total assets of $500 million and has an “A” or higher rating for its long-term debt. Medium-term corporate notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any State and operating within the United States may be purchased. These notes are to be rated at a level of “A” its equivalent or better by a nationally recognized rating service. 28 Golden Gate Bridge, Highway and Transportation District As of June 30, 2007 and 2006, the District held investments in corporate commercial paper and medium corporate notes with the following Standard and Poor’s Corporation ratings and amounts (in thousands): Investment __________ Rating _______ 2007 _______ 2006 _______ Corporate commercial paper A-1+ $ 13,974 $ 16,792 Corporate commercial paper A-1 15,030 _______ $_______ 31,822 _______ $ 4,752 - Medium-term corporate notes AAA 9,787 _______ $_______ 23,761 _______ $ 9,646 Medium-term corporate notes AA+ 8,124 Medium-term corporate notes AA 10,013 - Medium-term corporate notes AA- 7,785 _______ $_______ 35,568 _______ $ - 13,164 _______ $_______ 17,916 _______ $ 21,053 _______$______________ 4,920 _______ $_______ 25,973 _______ Total corporate commercial paper Total medium corporate notes Certificate of deposit A-1+ Certificate of deposit A-1 Total certificate of deposit In addition, the District’s investments in Municipal Bonds, Federal Agency Notes and Federal Obligation mutual funds have a credit rating of AAA from Standard and Poor’s Corporation as of June 30, 2007 and 2006. As of June 30, 2007 and 2006, the District’s investment in the State Treasurer’s investment pool (LAIF) is $22,490,000 and $9,583,000, respectively. The total amount invested by all public agencies in LAIF at those dates is $19,736,253,000 and $16,392,047,000, respectively. LAIF is part of the State of California Pooled Money Investment Account (PMIA). Of the total invested in PMIA, 96.53% and 97.43% is invested in non-derivative financial products and 3.47% and 2.57% in structured notes and asset-backed securities as of June 30, 2007 and 2006, respectively. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different than the fair value of the District’s position in the pool. The District’s investment in LAIF is unrated. Concentration of Credit Risk – The District limits the purchase of medium-term corporate notes to not exceed 30% of the District’s surplus money. At June 30, 2007 and 2006, these investments are 23% and 13%, respectively, of the District’s total investments. At June 30, 2007 and 2006, the District holds more than 5% of the District’s investments in the following issuers: Investment __________ Merrill Lynch & Co Note 2007 _______ 2006 ______ 5.11% - Dexia Delaware LLC Commercial Paper 5.25% - Wells Fargo Global Notes 5.33% - Dresdner Corp Commercial Paper 6.42% - - 5.13% Morgan Stanley DW Commercial Paper Bear Stearns Co. Inc. Commercial Paper - 5.80% USB Finance Delaware LLC - 8.09% Citizens Bank Federal Home Loan Board Federal Home Loan Mortgage Corporation Federal National Mortgage Association 2006-2007 Annual Report - 7.27% 19.84% 21.34% - 4.82% 17.68% 8.38% 29 (4) CAPITAL ASSETS Capital asset activity for the years ended June 30, 2007 and 2006 was as follows (in thousands): Balance July 1, 2006 _________ Additions _________ Reductions/ Adjustments _________ Transfers _________ Balance June 30, 2007 _________ Capital assets, not being depreciated: Land $ Construction in progress 178,086 _________ 42,897 _________ _________- (11,273) _________ 209,710 _________ 184,736 _________ 42,897 _________ _________- (11,273) _________ 216,360 _________ Bridge, related buildings and equipment 252,730 - (295) 5,403 257,838 Bus transit property and equipment 114,587 - (5,864) 1,436 110,159 79,723 - (341) 4,257 83,639 1,040 _________ 448,080 _________ __________________- 177 _________- _________ (6,500) _________ 11,273 _________ 1,217 _________ 452,853 _________ Bridge, related buildings and equipment (87,590) (5,793) 295 19 (93,069) Bus transit property and equipment (62,209) (7,289) 5,865 (19) (63,652) Ferry transit property and equipment (49,831) (3,102) 338 - (52,595) (485) _________ (40) __________________ (200,115) _________ (16,224) _________ 6,498 _________ 247,965 (16,224) (2) _________ _________ _________ $ 432,701 $ 26,673 $ (2) _________ _________ _________ _________ _________ _________ __________________- (525) _________ (209,841) _________ 11,273 _________ $ _________ _________ 243,012 _________ $ 459,372 _________ _________ Transfers _________ Balance June 30, 2006 _________ Total capital assets, not being depreciated 6,650 $ - $ - $ - $ 6,650 Capital assets, being depreciated: Ferry transit property and equipment Visitor services property and equipment Total capital assets, being depreciated Accumulated depreciation Visitor services property and equipment Less accumulated depreciation Total capital assets, being depreciated, net Total capital assets, net Balance July 1, 2005 _________ Additions _________ Reductions/ Adjustments _________ Capital assets, not being depreciated: Land $ 18,026 Construction in progress 160,181 _________ 178,207 _________ 22,111 _________ 22,111 _________ Bridge, related buildings and equipment 255,912 - (3,947) Bus transit property and equipment 126,215 - 77,886 - Total capital assets, not being depreciated $ - $ (11,376) $ - $ 6,650 (67) _________ (4,139) _________ 178,086 _________ (11,443) (4,139) 184,736 _________ _________ _________ Capital assets, being depreciated: Ferry transit property and equipment Visitor services property and equipment 765 252,730 (13,145) 1,517 114,587 (20) 1,857 79,723 - - 1,040 (438) __________________ (17,550) _________ 4,139 _________ _________448,080 _________ 1,040 - 438 _________ 461,491 _________ __________________- Bridge, related buildings and equipment (84,307) (7,848) 4,565 - (87,590) Bus transit property and equipment (65,196) (7,656) 10,643 - (62,209) Ferry transit property and equipment (45,214) (4,637) 20 - (49,831) (450) (35) - - (485) (388) _________ (24) _________ 412 _________ (195,555) (20,200) 15,640 _________ _________ _________ 265,936 _________ (20,200) _________ (1,910) _________ $ 444,143 _________ $ 1,911 _________ $ (13,353) _________ _________ _________ _________ __________________- _________(200,115) _________ 4,139 _________ $ _________ _________ 247,965 _________ $ 432,701 _________ _________ Rail transit property and equipment Total capital assets, being depreciated Accumulated depreciation Visitor services property and equipment Rail transit property and equipment Less accumulated depreciation Total capital assets, being depreciated, net Total capital assets, net 30 Golden Gate Bridge, Highway and Transportation District Construction in progress consists of the following projects at June 30, 2007 and 2006 (in thousands): Bridge Seismic South Viaduct Phase II 2007 _________ 2006 _________ $ 180,265 $ 166,769 4,781 3,690 Bridge Seismic Design Review Phase III Bridge Security System Improvement - 266 Bridge Security System 437 871 Bridge Main Cable Restoration 802 802 10 921 Bridge Access Platforms 1,470 54 Bridge Fastrak System Upgrade 2,608 75 Bridge Merchant Road Improvement 1,672 12 982 27 Bridge Toll Plaza Transfer Point/Pavement Bridge Suicide Deterrent Study District MIS-Financial 110 905 7,514 634 Ferry LFT Channel Dredging 141 281 Ferry Fuel Piping System Replacement 476 - Ferry Spaulding Refurbishment Bus Replacement Other Total construction in progress 5,568 - 2,874 _________ $ 209,710 _________ _________ 2,779 _________ $ 178,086 _________ _________ At June 30, 2007 and 2006, the District had commitments of approximately $10,247,000 and $16,624,000, respectively, for bridge-related projects and approximately $3,364,000 and $3,216,000 for other projects. (5) COMMERCIAL PAPER NOTES PAYABLE On July 12, 2000, the District issued commercial paper notes Series A and Series B in an amount of $30,500,000 for each series to provide funds for the Golden Gate Bridge (Bridge) seismic retrofit project and the renovation of main cables of the Bridge. The commercial paper notes are secured by a pledge of the District’s revenues and additionally secured by a line of credit. Under this program, the District is able to issue commercial paper notes at prevailing interest rates for periods of maturity not to exceed 270 days. At June 30, 2007, $61,000,000 in commercial paper notes was outstanding and maturing within 30 to 270 days, with interest ranging from 3.48% to 3.68%. (6) CAPITAL GRANTS PASSED-THROUGH TO MTC The District passed-through its federal capital assistance allocation of $862,000 for the year ended June 30, 2006, of which $388,000 was passed through to the Metropolitan Transportation Commission (MTC) for the Translink Project and $474,000 was passed through to Marin County Transit District for the purchase of paratransit vans. This amount was recognized as nonoperating revenue and expense in the financial statements. 2006-2007 Annual Report 31 (7) OPERATING ASSISTANCE The District receives operating assistance from various federal, state and local sources. Transportation Development Act funds are received from the state through Marin and Sonoma Counties to meet, in part, the District’s operating requirements based on annual claims filed by the District and approved by the MTC. Federal funds are distributed to the District by the Federal Transit Administration after approval by MTC. The District also receives Marin County Transit local funds and other amounts of assistance from other state agencies. Operating assistance is summarized as follows for the years ended June 30, 2007 and 2006 (in thousands): Transportation Development Act less Marin Transit portion Federal Transit Administration State Transit Assistance less Marin Transit portion Regional Measure 2 CalTrans Other Total 2007 _________ 2006 _________ $ 15,056 $ 14,628 (3,515) (2,796) 707 3,811 5,537 2,749 (1,612) (362) 2,363 2,341 180 180 430 _________ $ 19,146 _________ _________ 251 _________ $ 20,802 _________ _________ (8) PENSION PLANS CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT FUND Plan Description - All permanent District employees (except bus and ferry operators and deckhands) are eligible to participate in the Public Employees’ Retirement Fund (the “Fund”) of the State of California’s Public Employees’ Retirement System (“CalPERS”). The Fund is an agent multi-employer defined benefit retirement plan that acts as a common investment and administrative agent for various local and state governmental agencies within the State of California. The Fund provides retirement, disability, and death benefits based on employees’ age, years of service, and the highest year’s compensation. Employees vest after five years of service and may receive retirement benefits commencing at age 50. These benefit provisions and all other requirements are established by state statute. A stand-alone report for the District’s plan is not available; however, copies of the Fund’s annual financial report may be obtained from CalPERS’ executive office: 400 Q Street, Sacramento, CA 95811. Funding Policy – In May 2007, the District amended the plan from 2% at 55 to 2.5% at 55. As a result, active plan members in the CalPERS are now required to contribute 8.0% of their annual covered salary. In addition, the District is required to contribute at an actuarially determined rate. Based on the actuarial valuation, the contribution rate was 14.024%, 15.544%, and 8.48% for fiscal years 2007, 2006, and 2005, respectively. With the onset of the amended contract, the contribution rate increased from 14.024% to 16.813% in May 2007. The contribution requirements of plan members and the District are established by State statute and the employer contribution rate is established and may be amended by CalPERS. Annual Pension Cost - For fiscal years ended June 30, 2007, 2006, and 2005, the District’s annual pension costs for CalPERS is $7,439,000, $7,711,000, and $4,963,000, respectively. The required contribution for the year ended June 30, 2007 was determined as part of the June 30, 2004 actuarial valuations, using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected annual salary increases that vary by duration of service and (c) 3.25% per year cost-of-living adjustments. Both (a) and (b) included an inflation component of 3.00%. The actuarial value of CalPERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a 3-year period. CalPERS unfunded actuarial accrued liability is being amortized as a percentage of projected payroll on a closed basis. The amortization period as of June 30, 2004 is 30 years. GOLDEN GATE TRANSIT - AMALGAMATED RETIREMENT PLAN Plan Description - The District’s bus operators participate in the Golden Gate Transit - Amalgamated Retirement Plan (“GGT-ARP”), a single employer defined benefit pension plan funded by the District and administered by a Board of Trustees consisting of District and union representatives. This plan provides retirement, disability and death benefits based on employees’ age, years of service, and average compensation. Employees may receive normal retirement benefits based on a predetermined formula. Copies of the GGT-ARP’s annual financial report may be obtained from the District. Funding Policy - The District’s contribution to the GGT-ARP is a result of collective bargaining. As of January 1, 2003, 32 Golden Gate Bridge, Highway and Transportation District the District was required to make contributions to GGT-ARP. Prior to this time, the previous contribution was made through July 22, 1999. The contribution rate was 15.165% of eligible earnings. There is no provision for employee contributions. Annual Pension Cost - For the fiscal years ended June 30, 2007, 2006, and 2005, the District’s annual pension cost for the GGT-ARP was equal to the negotiated contribution amount and actuarially required contribution. The actuarial cost method for determining the annual pension cost was the entry age normal cost method. The actuarial assumptions included (a) 8.0% investment rate of return (net of investment expenses), (b) projected 5.0% of annual salary increases that includes a 12.0% increase for seniority wage increases. The actuarial value of assets was determined using a method that smoothes the effects of short-term volatility in the market value of investments by recognizing one-third of the difference between the expected actuarial value of assets and the market value of assets. Actuarially Determined Contributions Required and Contributions Made - The District’s contributions to GGT-ARP for the years ended June 30, 2007, 2006, and 2005, are the result of collective bargaining. The total annual pension cost and funded contributions were $2,773,000, $2,720,000, and $2,730,000 for the years ended June 30, 2007, 2006, and 2005, respectively (15.2%, 15.2%, and 15.2% of current covered payroll of $18,285,000, $17,936,000, and $18,007,000, for 2007, 2006, and 2005 respectively). OTHER RETIREMENT PLANS The District’s ferry operators and deckhands participate in the Inlandboatmen’s Union of the Pacific National Pension Plan (“Inlandboatmen’s”) or the MEBA Towboat Operators Pension Trust (“MEBA”). Inlandboatmen’s and MEBA are unionadministered cost-sharing multiple-employer defined benefit pension plans in which the District is a participant. Annual pension cost for the Inlandboatmen’s plan was $199,000, $160,000, and $181,000 for the years ended June 30, 2007, 2006, and 2005, respectively. The District contributed to Inlandboatmen’s 11.7%, 8.5%, and 8.4% of payroll for covered employees for the years ended June 30, 2007, 2006, and 2005, respectively. The District’s covered payroll for employees participating in this plan was $1,710,000, $1,889,000, and $2,160,000 for the years ended June 30, 2007, 2006, and 2005, respectively. Annual pension cost for the MEBA plan was $96,000, $95,000, and $96,000 for the years ended June 30, 2007, 2006, and 2005, respectively. The District contributed to MEBA 7.9%, 8.3%, and 9.8% of payroll for covered employees for the years ended June 30, 2007, 2006, and 2005, respectively. The District’s covered payroll for employees participating in this plan was $1,219,000, $1,140,000, and $991,000 for the years ended June 30, 2007, 2006, and 2005, respectively. (9) POSTEMPLOYMENT HEALTH CARE BENEFITS In addition to the pension benefits described in Note 8, the District provides postemployment health care benefits. For all employees hired on or after August 9, 1991, the benefits are provided to retiree and dependent coverage based on age plus years of services as follow: 1) the District does not contribute toward the cost of postemployment health benefits for retirees whose combination of age and number of years of service amounts to less than 70 points; 2) the retiree contributes the normal contribution paid by all retirees plus 30% of the COBRA rates for the coverage they select if their combination of age and number of years of service falls within 70-74 points; 3) the retiree contributes the normal contribution paid by all retirees plus 20% of the COBRA rates for the coverage if their combination of age and number of years of service falls within 75 – 79 points; and 4) the retiree contributes the normal contribution paid by all retirees if their combination of age and number of years of service is equal to or over 80 points. The benefits are also provided to all employees, hired between July 1, 1983 through August 8, 1991, who retire from the District on or after attaining age 55 with at least 10 years of service. For those employees age 55 with at least 15 years of service, survivor and dependent care benefits are also received. If the employee began employment at the District prior to January 1, 1983, the benefits are provided on or after attaining age 50 with at least 5 years of service. Currently 669 retirees meet the eligibility requirements. For single coverage, the premium is $93.50 per month until Medicare eligible. Coverage for a spouse/domestic partner is an additional $93.50 per month until Medicare eligible. Expenses for postretirement health care benefits are recognized on a pay-as-you-go basis. Postretirement health care benefits expense was $6,375,000 and $5,980,000 for the years ended June 30, 2007 and 2006, respectively. (10) SELF-INSURANCE The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and patrons; natural disasters; employee, retiree and dependent health benefits. The District is self-insured for its general liability, workers’ compensation, Bridge physical use and occupancy, auto liability and public transportation liabilities. The District has set aside assets for claim settlements associated with the above risks of loss up to certain limits. In April 2006, the District did not renew its Bridge Physical Use and Occupancy policy and became self-insured. The District also adjusted the Property (earthquake/flood) and Marine coverage to better represent its risks. As a result, the District designated net assets for self-insured losses in the amount of $1,630,000 at June 30, 2007. 2006-2007 Annual Report 33 Self-insurance and limits are as follows: Type of Coverage __________________ Self-Insurance __________________ Excess Coverage __________________ General /Vehicle Liability Workers Compensation Health Benefits Railroad Liability Boiler and Machinery Bus Fleet Property (earthquake/flood) Ferry Hull, Machinery Marine Crime and Dishonesty $3,000,000 per occurrence $1,000,000 per claim $100,000 per individual $10,000 per accident $1,000 per accident $3,000,000 per occurrence $250,000 (5% per structure) $350,000 annual aggregate $100,000 annual aggregate $25,000 per occurrence (faithful performance) $1,000 per occurrence forgery $5,000 all other $100,000,000 $10,000,000 (statutory limits) $175,000 stop loss/ w carve outs $1,000,000 accident/$2mil aggregate $1,000,000 per occurrence $30,000,000 per occurrence $20,000,000 per occurrence/aggregate $1,000,000 per occurrence $100,000,000 per occurrence $1,000,000 Faithful Public Officials Liability $100,000 Each Wrongful Act $100,000 Each Employment Practices $500,000 Forgery/Alteration $500,000 Theft Inside/Toll $15,000 All other locations $1,000,000 Computer Fraud $5,000,000 per Occurrence/ aggregate All property is insured at full replacement value. To date, no settlement amounts have exceeded commercial insurance coverage for the last three years. The District’s estimated self-insurance liability is based on requirements of GASB Statements No. 10 and 30. These statements require a liability for claims to be reported if information prior to issuance of the financial statements indicates that it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The actuarially determined liability includes allocated expenses and a provision for incurred but not reported claims. Changes in the balances of claims liabilities for the years ended June 30, 2007 and 2006 are as follows (in thousands): Self-insurance liabilities, beginning of fiscal year 2007 _________ $ 19,138 Incurred claims and changes in estimates Claim payments and related costs Total self-insured claims liabilities Less current portion Non-current portion 2006 _________ $ 20,132 (554) 1,197 (1,837) _________ 16,747 (2,191) _________ 19,138 (6,959) _________ $ 9,788 _________ _________ (7,709) _________ $ 11,429 _________ _________ (11) DESIGNATION OF DISTRICT FUNDS The Board of Directors has designated available funds for seismic retrofit of the Bridge, other Bridge maintenance and transit capital projects. In addition, the Board has restricted funds due to the legal requirements of the commercial paper program, possible operational emergencies, and self insured losses. (12) ALLOCATION OF DISTRICT DIVISION EXPENSE For the years ended June 30, 2007 and 2006, District Division expense has been allocated to the operating divisions (included in general and administrative expenses) by resolution of the Board of Directors as follows (in thousands): 2007 _________ $ 9,379 2006 _________ $ 9,970 Bus 7,607 8,140 Ferry 3,663 3,984 504 - _________$ 21,153 _________ _________ 168 _________ $ 22,262 _________ _________ Bridge Visitors Services Rail Total 34 Golden Gate Bridge, Highway and Transportation District (13) ENVIRONMENTAL REMEDIATION During 1992, the District discovered lead contamination in the soil beneath the north and south approaches to the Bridge. The District entered into a Voluntary Cleanup Agreement (VCA) with the State of California Department of Toxic Substances Control to affect a Remedial Action Plan for the first phase of a two-phased cleanup program and a Remedial Investigation (RI) for the second phase. The District has completed the Phase I cleanup under the VCA and has expensed approximately $6.5 million for that work. The VCA requires that the District complete an RI of the Phase II areas, but does not require the District to actually complete the remediation. It is likely that remediation will be required under Phase II; however, the VCA identifies two other Potential Responsible Parties, the National Park Service and the U.S. Army, who may be required to share in any costs associated with the Phase II remediation. Because the RI has not been completed in these areas, it is not possible at this time to determine any potential cleanup costs for Phase II, and what the District’s share of those costs might be. REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS YEARS ENDED JUNE 30, 2007 AND 2006 (UNAUDITED) CALIFORNIA PUBLIC EMPLOYEE’S RETIREMENT FUND Funding progress information for the District for 2006 is unavailable as of the date of this report. SCHEDULE OF FUNDING PROGRESS (in thousands) Valuation Date _________ 6/30/2003 6/30/2004 6/30/2005 Actuarial Value of Assets _________ $ 169,923 177,512 185,728 Actuarial Accrued Liability Unfunded Funded _________ $ 195,259 204,776 219,556 AAL _________ $ (25,336) (27,264) (33,828) Ratio _________ 87.0% 86.7% 84.6% Annual Covered Payroll _________ Unfunded AAL as a % of Covered Payroll _________ $ 34,343 32,986 32,253 (73.8%) (82.7%) (104.9%) GOLDEN GATE TRANSIT – AMALGAMATED RETIREMENT PLAN Funding progress information for the District for January 1, 2007 is available as of the date of this report. The District’s funding progress information as of January 1, 2006 is illustrated as follows: SCHEDULE OF FUNDING PROGRESS (in thousands) Valuation Date _________ 1/1/2004 1/1/2005 1/1/2006 Actuarial Value of Assets _________ $ 112,137 115,857 117,796 2006-2007 Annual Report Actuarial Accrued Liability Unfunded Funded _________ $ 118,371 120,251 122,198 AAL _________ $ (6,234) (4,394) (4,402) Ratio _________ 94.7% 96.3% 96.4% Annual Covered Payroll _________ Unfunded AAL as a % of Covered Payroll _________ $ 22,952 20,249 18,175 (27.2%) (21.7%) (24.2%) 35 36 Golden Gate Bridge, Highway and Transportation District 14,127 Marin Transit (9,000) - (13,355) (1,781) 4,236 2,593 _________ 20,802 3,811 14,398 20,200 _________ 140,810 _________ (7,029) - 1 (2,162) 7,900 127 _________ 307 - 180 5,536 _________ 45,764 _________ 11,454 14,632 14,142 909 _________ 89,106 _________ 3,154 - - $85,043 $ - 14,127 11,781 - $ - 9,987 12,049 - $ - - 9,165 - $ - - 8,342 - 12,941 14,005 11,677 9,918 12,049 10,053 5,450 2,582 5,697 2,511 388 _________ 1,958 _________ 1,432 _________ 871 _________ 1,679 _________ 88,194 _________ 27,866 _________ 23,468 _________ 10,036 _________ 10,021 _________ 14,684 40,149 38,131 11,033 10,333 3,059 - - $84,747 - - - - $ - - - - - - 196 10 225 _________- _________ 225 _________- _________ - $ 680 12,832 3,061 11,831 27 2,634 750 2,387 (7,019) (231) - (1,781) 4,236 (603) - 123 - - (585) (213) (2,029) - - (1,368) - 25 - - (1,396) (101) 77 - - 127 _________ 2,666 _________ 2,466 _________- __________________ 307 16,178 17,358 2,661 3,137 - 180 - - - - - - - - 545 (11,403) - - _________- _________- - - EXCESS REVENUES (LOSS) $14,536 _________ _________ ASSETS ACQUIRED WITH CAPITAL GRANTS_________ 10,090 DEPRECIATION AND GAIN/LOSS ON CAPITAL 24,422 _________ 1,510 _________ 1,410 _________ 6,175 _________ 8,639 _________ 2,405 _________ 3,472 _________- _________ 10,901 _________ $ 6,122 $42,534 $35,529 $(19,498) $(21,402) $(8,500) $(8,040) $ $ 35 _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ (1,335) _________ (300) _________ (1,335) _________ (300) _________- _________- _________- _________- _________- __________________ Total nonoperating revenues (expenses) _________ 14,698 _________ 602 _________ (2,318) _________ (4,788) _________ 15,698 _________ 14,531 _________ 1,318 _________ 1,717 _________- _________ (10,858) NET INCOME (LOSS) 4,446 (18,300) 41,024 34,119 (25,673) (30,041) (10,905) (11,512) (10,866) Contribution to capital Bridge self insurance (9,000) Interdivision transfers 149 (2,162) Interest expense Gain (Loss) on disposal of assets 7,900 2,793 _________ 19,146 707 15,646 Investment income Total operating assistance Local operating assistance Federal operating assistance State operating assistance Operating assistance: NONOPERATING REVENUES (EXPENSES): OPERATING INCOME (LOSS) Total operating expenses 30,883 26,579 63,148 3,724 _________ 121,908 _________ 3,059 9,987 20,391 $84,747 7,657 _________ 7,493 _________ 7,807 _________ 3,194 _________ 4,709 _________- _________ 27 _________ 49,287 69,237 68,040 22,259 23,250 233 _________ _________ _________ _________ _________ _________ _________ (10,252) _________ (18,902) _________ 43,342 _________ 38,907 _________ (41,371) _________ (44,572) _________ (12,223) _________ (13,229) _________- _________ (8) _________ 28,581 General and administrative 16,223 _________ 137,260 _________ 27,132 Maintenance Depreciation 65,324 3,738 _________ 127,008 _________ Operations Total operating revenues Other operating 3,154 20,946 Transit fares Visitor services concessions $85,043 Bridge tolls OPERATING REVENUES: Bridge Division Total (Bridge & Visitor Services) _____________________ Bus Division Ferry Division Rail Division _____________________ _____________________ _____________________ _____________________ 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ YEARS ENDED JUNE 30, 2007 AND 2006 (In thousands) SUPPLEMENTAL SCHEDULE OF REVENUES AND EXPENSES BY DIVISION (NON-GAAP BASIS)
© Copyright 2024