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Type:
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Technical Budget Adjustment
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Status:
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Agenda Ready
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On agenda:
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4/9/2025
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Final action:
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Title:
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TBA2025-04-01 - Technical Budget Adjustment - 2025 Capital Program
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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
TBA2025-04-01 - Technical Budget Adjustment - 2025 Capital Program
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
Approve TBA2025-04-01 to authorize transfer of $26,073,000 between various projects within the 2025 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 $26,073,000 between 88 projects, including the Capital Contingency (MSP999), within UTA’s 2025 capital program to aid in project delivery this year. This request, if approved by the Board, will affect the current budget total of 87 different capital program projects and shift funds to the Capital Contingency.
This adjustment aims to redirect funds to aid in delivery of work that was not able to be completed in 2024. These adjustments should better align these projects to deliver remaining 2024 work as well as 2025 planned work.
The attached exhibit provides detail for all projects included in this budged adjustment.
A summary of the benefits and reasons for the budget adjustments are provided below.
The main benefit UTA anticipates to receive from the proposed Technical Budget Adjustment include:
• Aligning budgets with remaining obligations and anticipated expenditure amounts for the projects thru the end of 2025 including unfinished 2024 work.
The reasoning and guidelines for the Technical Budget Adjustment are as follows:
Request:
Absorb approximately $26.1 million in carryforward/early requests within a $330.2 million budget in April Technical Budget Adjustments
Approach:
• Projects not hitting an 85% spend threshold for 2024 were subject to a 10% reduction in 2025
• Surplus funding sources placed in Capital Contingency line
• Funding sources were cut proportionally on projects receiving funding reductions
• Funds were redistributed based on need and known funding gaps
• More significant cuts as needed to free up appropriate amounts of correct funding sources
Obligations and Balancing:
• Priority was to address current contractual obligations as needed by Project Managers
• Ensured all offices had a stake in the process, balancing this with their obligations
Summary of Results:
The tables below show projects that have been impacted by this Technical Budget Adjustment and how much they will be adjusted. The first summary table is the impact by chief office. The last two tables are the top projects impacted by the adjustment in terms of overall dollar change.
Summary by Chief
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Chief Office |
2025 Adopted Budget |
April 9th TBA |
2025 Adjusted Budget |
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Capital Services |
$275,890,000 |
$(7,763,000) |
$268,127,000 |
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Enterprise Strategy |
15,872,00 |
2,783,000 |
18,655,000 |
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Executive Director (Safety) |
2,078,000 |
(318,000) |
1,760,000 |
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Finance |
21,148,000 |
5,488,000 |
26,636,000 |
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Operations |
9,705,000 |
513,000 |
10,218,000 |
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People |
2,145,000 |
325,000 |
2,470,000 |
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Planning & Engagement |
3,393,000 |
(1,028,000) |
2,365,000 |
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Grand Total |
$330,231,000 |
- |
$330,231,000 |
Top Project Increases
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Project ID and Name |
2025 Adopted Budget |
April 9th TBA |
2025 Adjusted Budget |
Rationale |
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SGR385 - Rail Replacement Work |
$6,500,000 |
$5,500,000 |
$12,000,000 |
Funds for interlocking replacements at 450 East on Rice on the Red line |
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MSP999 - Capital Contingency |
$5,000,000 |
$5,024,000 |
$10,024,000 |
Reduced by 10% that haven’t been reallocated yet. |
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SGR393 - Grade Crossing Program |
$2,500,000 |
$3,000,000 |
$5,500,000 |
Increased to cover remaining planned costs for 2025 replacement efforts. |
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MSP262-SL Central HQ Office |
$1,000,000 |
$1,652,000 |
$2,652,000 |
Increased funds to finish out the early design efforts for the project. |
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ICI214 - Automatic Passenger Counter Upgrade |
$850,000 |
$1,350,000 |
$2,200,000 |
Increased funds to complete replacement project in 2025 |
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ICI222 - Fares Systems Replacement Program |
$4,996,000 |
$1,230,000 |
$6,226,000 |
Increased funds to complete contract milestones for 2025 |
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ICI230 - Workforce/Enterprise Asset Management |
$5,183,000 |
$1,000,000 |
$6,183,000 |
Increased funds to complete contract milestones for 2025 |
Top Project Decreases
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Project ID and Name |
2025 Adopted Budget |
April 9th TBA |
2025 Adjusted Budget |
Rationale |
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REV238 - SD100/SD160 Light Rail Veh Rep |
$35,400,000 |
$(5,400,000) |
$30,000,000 |
Reduced due to extra 2025 funds when compared to contract milestones. |
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SGR370 - Red Light Signal Enforcement |
$3,209,000 |
$(2,883,000) |
$326,000 |
Project on Hold |
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FMA693 - Meadowbrook Electrification |
$1,786,000 |
$(1,686,000) |
$100,000 |
Funds moved and work will be completed under MidValley project |
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SGR397 - TPSS Component Replacement |
$5,000,000 |
$(1,500,000) |
$3,500,000 |
Project nearing completion - may need to add funds back at later date. |
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MSP258 - Mt. Ogden Admin Bldg Expansion |
$7,713,000 |
$(1,357,000) |
$6,356,000 |
Project still in design phase and contractor will be hired in Q4 2025 or Q1 2026 |
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MSP259 - S-Line Expansion Project |
$11,746,000 |
$(1,175,000) |
$10,571,000 |
Subject to 10% reduction due to not hitting spend threshold. |
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ICI179 - Network & Infrastructure Equipment |
$1,600,000 |
$(1,100,000) |
$500,000 |
Funds moved to cover cost of other project needs - will look to refill in Q3 2025 |
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MSP270 - Transit Signal Priority On Board Units (TOBU) Project |
$1,711,000 |
$(1,011,000) |
$700,000 |
Funds moved to cover costs of other project needs. Sufficient funding still available to cover obligations. |
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SGR040 - Light Rail Vehicle Rehab |
$10,200,000 |
$(1,000,000) |
$9,200,000 |
Funds moved to cover costs of other project needs. Sufficient funding still available to cover obligations. |
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SGR391 - Commuter Rail Vehicle Rehab/Replace |
$3,000,000 |
$(1,000,000) |
$2,000,000 |
Funds moved to cover costs of other project needs. Sufficient funding still available to cover obligations. |
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SGR403 - Train Control Rehab & Replacement |
$8,000,000 |
$(1,000,000) |
$7,000,000 |
Funds moved to cover costs of other project needs. Sufficient funding still available to cover obligations. |
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• Board may reject the requested Technical Budget Adjustment. The impact of this would be UTA would not be able to pay invoices that may come through for work that has been completed, or projects could be delayed due to lack of funding.
• The Board may request revisions to the proposed Technical Budget Adjustment. This could have the same impact as mentioned above.
FISCAL IMPACT:
The proposed TBA of $26,073,000 will be funded by the approved 2025 Capital Budget. Funds will be redistributed among the projects as described in the presentation and supplemental material contained within this packet.
If TBA is approved, there will be a balance remaining in the Capital Contingency of $10,024,000. This TBA would add a net increase of $5,024,000 to the Contingency. This net addition would be made up of additional funding sources including Bonds, Lease, State, and Local Partner funds. The UTA Funds in the Contingency line were reduced from $5,000,000 to $3,800,000.
There is no increase in budget authority. There is no impact on UTA’s Fund Balance.
ATTACHMENTS:
• TBA2025-03-01 Technical Budget Adjustment - Capital
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