RT FINANCIALS SHOWING POSITIVE TREND FOR FISCAL YEAR 2018

CONTACT: Devra Selenis	DATE: April 13, 2017
OFFICE: 916-556-0121	FOR IMMEDIATE RELEASE
CELL: 916-869-8622

SACRAMENTO, CA – The Sacramento Regional Transit District (Sac RT) has been relentlessly optimizing business practices over the past eight months to bring its financial house in order, and the positive results are very encouraging. In Fiscal Year (FY) 2017, Sac RT is trending below budget. This has allowed Sac RT to develop a budget for FY 2018 that is expected to be $1.6 million less than the prior year.

Additionally, by working diligently over the past year with rating agencies, last week Sac RT received great news from Moody’s, a bond credit rating service, that upgraded Sac RT’s bond rating from “negative” watch to “stable” outlook, which will help Sac RT to issue future bonds at a much better interest rate for regional capital projects. The significant transformation that Sac RT has made in the last year, as well as strong political support and strong board governance, is building up RT’s long-term financial stability, which will continue to move Sac RT in a new direction.

Under the direction of Henry Li, General Manager/CEO, Sac RT committed to strengthening its finances while making the system more clean, safe and convenient for riders. Sac RT has identified innovative revenue sources, strengthened its finances and reduced expenses to fund maintenance and capital investments. By aggressively containing costs and pursuing revenue enhancement opportunities, Sac RT has secured more than $3 million in operating funding, which helped enhance customer services.

“At a time when many public agencies are increasing budgets, we have been able to reduce ours. We are figuring out innovative ways to do more with less.” said Henry Li, General Manager/CEO. “Our number one priority is the customer, and the ability to reduce the annual budget without cutting service or increasing fares is a huge victory from where Sac RT was a year ago.”

Based on these positive trends, Sac RT projects to add to its fund balance for the first time in three years, and build up an emergency cash reserve of $6 million (with a 2017 year-end goal of $9 to $10 million). This will go a long way towards reducing Sac RT’s reliance on its line of credit to pay bills, a goal set by the Board of Directors.

By building strong employee and labor relations, Sac RT has been able to identify ways to reduce the annual increases associated with salaries and benefits that continue to

offer value to employees, at a sustainable cost. There will only be a small increase in spending in this category for FY 2018, which is expected to be $1.95 million, or 1.8 percent, a modest amount for an organization that provides over 1,000 jobs to the region.

About Sacramento Regional Transit District (Sac RT)
Sac RT operates approximately 69 fixed routes and 43 miles of light rail that covers a 418 square-mile service area. Buses and light rail trains operate 365 days a year. RT’s entire bus and light rail system is accessible to the disabled community.