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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Daniel Hofer, Director - Capital Programming and Support |
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Greg Andrews - Senior Capital Budget Analyst |
TITLE:
title
TBA2024-11-01 - Technical Budget Adjustment - Capital Program
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
Approve Technical Budget Adjustment TBA2024-11-01 to authorize transfer of $350,000 between projects within the 2024 Capital Budget as presented.
BACKGROUND:
Board Policy 2.3 Budget allows the Board of Trustees to amend or supplement the Authority’s budget at any time after its adoption. The Board may do this through a Technical Budget Adjustment (TBA) when the request does not increase budget authority, or through a Budget Amendment, after consultation with the Local Advisory Council, when an increase in the annual appropriation authority is requested.
DISCUSSION:
This Technical Budget Adjustment will transfer a total of $350,000 in the 2024 Capital Budget from the MSP283 Project for Right of Way and Facility Opportunity Buy to MSP263 for TOD Opportunity Buy.
If approved by the Board, the Transit Oriented Development (TOD) Working Capital project budget (MSP263) would be increased by $350,000. The TOD Working Capital project is used to help manage costs for expenses related to UTA’s TOD properties. This budget adjustment will provide funds necessary to cover TOD Working Capital expenses through the end of the year including:
• A capital contribution to UTA’s Joint Venture at the Jordan Valley TRAX Station per our operating agreement. These expenses include loan servicing obligations and costs associated with vacant land including property tax, extension fees, etc.
• Funds to cover personnel time through the end of 2024.
The Right of Way (ROW) and Facility Property Opportunity Buy project (MSP283) would be reduced by $350,000. This project has unspent funds for 2024 that can be redirected to the project outlined above.
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• Board may reject the requested TBA. The impact of this would be that UTA’s Jordan Valley TRAX Station Joint Venture Manager would not be able to pay an invoice that is due by the end of the month. Not paying that invoice on time would cause future payments over the next year to increase by approximately $1.5 million.
• The Board may request revisions to the proposed Technical Budget Adjustment. This would have the same impact as mentioned above since there are no more Board meetings scheduled in November in time for the invoice due date.
FISCAL IMPACT:
The proposed TBA of $350,000 will be funded by the approved 2024 Capital Budget by redistributing funds within the budget. This request will not impact the Capital Budget Contingency, which has a balance of $3,945,000, nor will it increase budget authority or impact UTA’s Fund Balance.
ATTACHMENTS:
• TBA2024-11-01 Technical Budget Adjustment - Capital Program