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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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Brad Armstrong, Director, Budget & Financial Strategy |
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Dan Hofer, Director Capital Assets and Project Controls |
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TITLE:
title
Tentative 2024 Budget
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational report for discussion
BACKGROUND:
Each year, the Authority is required to prepare an operating and capital budget for the succeeding year. After consultation with the Board of Trustees, and in accordance with the provisions of the Special Districts Act (§17B-1-702) and Public Transit District Act (§17B-2a-8), the Executive Director has prepared the 2024 Tentative Budget.
DISCUSSION:
Over the first half of 2023, the Board of Trustees and UTA staff reviewed 2023 program delivery, current operating environment including economic conditions, revenue projections, and the organization’s strategic plan to support near and long-term public transportation needs in the region.
Using 2023 existing operating budgets as a starting point, the organization updated inflationary assumptions for labor, fuel and other expenses, eliminated one-time 2023 costs, and annualized the cost of mid-year budget adjustments (August 2023 service changes, technical budget adjustments, etc.). The resulting 2024 base budget or budget target was developed at the department and object of expenditure level.
Using the strategic plan and informed by discussions with the Board of Trustees, the organization built on the 2023 base with the selection of prioritized initiatives focused on:
• Quality of Life
• Customer Experience
• Organizational Excellence
• Community Support
• Economic Return
Simultaneously, the capital program development process revisited the existing 5-year capital plan, held a call for new projects, and prioritized the resulting list to select projects for consideration, culminating in a draft 5-year capital program.
The Board of Trustees held four budget work sessions in September and staff previewed existing projects and new projects being considered for inclusion in the 5-year Capital Plan. The Board also previewed the 2024 operating budget during the budget work sessions and provided feedback.
Like businesses across the state, UTA is experiencing significant recruitment and retention issues with its workforce - across all functions. The 2024 budget request includes funding to support recruitment and retention.
At the October 25, 2023, Board of Trustees meeting, UTA will present to the Board a resolution to adopt the 2024 Tentative Budget and set a public hearing date for November 1, 2023.
Summary information about the 2024 Tentative Budget is provided in the tables below. More detail will be provided in the 2024 Tentative Budget documentation that will be included in the resolution on October 25, 2023.
ALTERNATIVES:
The Board may direct staff to provide revisions to the proposed Tentative Budget that will be presented for adoption on October 25, 2023.
FISCAL IMPACT:
The proposed 2024 Tentative Budget and supporting 5-year Financial Plan are financially constrained with all required reserves fully funded.
ATTACHMENTS:
None