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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): |
Viola Miller, Chief Financial Officer |
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Daniel Hofer, Director - Capital Programming and Support |
TITLE:
title
R2025-09-06 - Resolution Approving the First Amendment to the Authority’s 2025 Capital Budget
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Recommend approval by the UTA Board of Trustees for Budget Amendment 1 for the 2025 Capital Budget
BACKGROUND:
Board Policy 2.3 Budget allows the Board of Trustees to amend or supplement the Authority’s budget or five-year capital plan 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.
UTA staff brought this item to the Board of Trustees for discussion on July 23rd, 2025 and subsequently to the Local Advisory Council for consultation on August 27th, 2025.
DISCUSSION:
This proposed Budget Amendment modifies the existing 2025 Capital Budget. This proposed Budget Amendment will add $67,000,000 to the overall 2025 Capital Budget.
This Budget Amendment will affect the SD100/SD160 Light Rail Vehicle Replacement. A summary is provided below.
SD100/SD160 Light Rail Vehicle Replacement:
In 2023, UTA entered into a contract with Stadler to purchase 20 new Light Rail Vehicles with an option to purchase additional vehicles at UTA’s discretion. UTA has always planned to purchase at least 40 vehicles under this contract. Due to current market conditions, and with deadlines outlined in the purchase contract, UTA has determined it is in its best interest to accelerate the exercising of these options for the additional vehicles. To take advantage of the best/current pricing, these options need to be exercised in October 2025. To accomplish this, additional funding is needed in the 2025 Capital Budget.
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• The Board may reject the request to advance this Budget Amendment. The impact of this would be:
o Light Rail Vehicle Replacement- UTA would proceed with only 20 vehicles on order. It may choose at a later date to exercise the additional options. Exercising these options at a later date negates the current guaranteed vehicle pricing and UTA would likely end up spending more for the additional vehicles.
FISCAL IMPACT:
This proposed Budget Amendment will have the following impacts on UTA’s 2025 Capital Budget. Impacts are outlined below:
2025 Capital Budget:
The overall impact to the 2025 Capital Budget will be an overall increase of $67,000,000, increasing the total capital budget from $330,231,000 to $397,231,000. This increase in expense will be offset by an equal increase in bond funds.
This addition, if approved by the board, would increase UTA’s budget authority in 2025 by $67,000,000.
There will be no impact on UTA’s Capital Contingency line. There is no impact on UTA’s Fund Balance, but this action, along with the Bonding for the Mt Ogden Admin Building Expansion project, will increase UTA’s Debt Service obligations by $195,785,178 over the life of the new bonds. .
ATTACHMENTS:
• R2025-09-06 Resolution Approving the First Amendment to the Authority’s 2025 Capital Budget including Exhibit A