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TO: |
Local Advisory Council |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
William Greene, Chief Financial Officer |
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TITLE:
title
Consultation on Agency’s Tentative 2022 Budget
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AGENDA ITEM TYPE:
LAC - Consultation
RECOMMENDATION:
Review the Tentative 2022 Budget and provide advice/input to the Board of Trustees.
BACKGROUND:
Each year, in compliance with State of Utah Code 17B-2a-808.1, the Board of Trustees adopts a tentative budget for the next year and sets a public hearing at which interested parties may comment on the tentative budget.
On October 13, 2021, the Board of Trustees received a presentation on the 2021 Tentative Budget. Subsequently, at their October 27, 2021 Board meeting, the Board approved a resolution adopting the 2022 tentative budget and conducted a public hearing on November 4, 2021.
The 2022 Tentative Budget was sent to the Governor’s office, Legislature, mayors, commissioners, metropolitan planning organizations, and others. It has also been made available to the public on UTA’s website and will be open for comment throughout the public comment period. The 30-day public comment period will conclude on December 4, 2021 with all comments provide to the Trustees.
On November 17, 2021, the Local Advisory Council will be given the opportunity to review the 2022 Tentative Budget and provide their advice/input to the Board of Trustees.
The 2022 Final Budget will be reviewed at the December 8, 2021 Board of Trustees meeting with adoption scheduled for the December 15, 2021 Board of Trustees meeting.
The detail of the 2022 Tentative Budget is attached.
DISCUSSION:
The 2022 Budget and supporting 5-Year plans are bolstered by the resilience and strength of the Regional economy and support from the federal government and UTA’s state and local partners. This has allowed UTA to substantially improve its long-term financial outlook.
The agency has been able to abandon a planned $103 million bond sale in 2022 as envisioned in the adopted 2021-2025 5-Year Capital Plan. This decision contributed to a positive credit rating change to AA and completion of an October $448 million bond refunding in a very difficult market - saving over $20 million in debt service over the next 15 years.
The 2022 Tentative Budget describes a hopeful future for the Agency and the Region. Building on UTA’s focus areas of Service, Stewardship, and People and with guidance from the Board of Trustees, a framework was developed to inform the budget.
This framework and the resulting budget focus on six key areas:
• Set a strong financial foundation for the future
• Deliver on capital project commitments
• Ridership recovery and service restoration
• Recruitment and retention
• Maintain and grow local partnerships
• Pursue state and partner funding
The 2022 Operating Budget:
• Includes service adjustments across the system resulting in an additional 99,000 hours of new or restored service
• Expands the successful on-demand Microtransit program in Tooele and Davis counties
• Begins operations on new bus rapid transit service in Ogden with the Ogden Express or “OGX”
• Includes a comprehensive package of initiatives to recruit new employees and retain the existing workforce
• Develops and implements a new Rail Maintenance Apprenticeship program - modeled after UTA’s highly successful Bus Maintenance program
• Invests in information technology to support existing functions and develop new tools to move the Agency forward
ALTERNATIVES:
The Advisory Council is encouraged to provide their feedback to the Board of Trustees on this tentative budget and any additional considerations that should be discussed.
FISCAL IMPACT:
The 2022 Tentative Budget includes $356 million in operating expenses and $228 million of capital investment to fund the provision of safe, convenient, reliable service and targeted investments in our infrastructure. The budget includes federal and local contributions from our partners.
ATTACHMENTS:
1. Budget Summary to Stakeholders
2. 2022 Tentative Budget Document