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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
TBA2024-06-01 - Technical Budget Adjustment - 2024 Capital Program
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
Approve TBA2024-06-01 to authorize transfer of $3.575 million between various 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 $3.575 million to various projects within UTA’s 2024 capital program to aid in the delivery of projects this year. This request will affect the current budget total of 16 different projects within UTA’s capital program. Due to the length of the list, a supplemental document has been provided that details the current budgets for the affected projects, the requested amount, and the proposed new total, dependent on approval from the Board of Trustees.
The main benefits UTA anticipates will result from the proposed Technical Budget Adjustment include:
• Aligning budgets with contract milestones or anticipated expenditure amounts for the projects thru the end of 2024.
o The Human Resource Information System project’s budget was programmed against the 2024-2028 Five Year Capital Plan amount. The contract was approved against the entire $3.75 million budget in January covering years 2024-2026. To right-size this budget with the approved contract amounts, the budget needs to be adjusted by increasing available 2024 funds to accommodate the first year’s full payment and remove the 2026 capital budget number during the 2025-2029 capital planning efforts. This will not affect the overall price agreed to previously in January 2024 and result in an overall net reduction of about $600,000 on the project budget (not contract) when the new capital plan is created.
o The Rail Switches and Trackwork Controls project experienced a delay due to materials arriving later this year than previously anticipated. This funding is currently being included in the capital planning efforts to incorporate into next year’s budget to accommodate the shift in the construction schedule.
• Additional police vehicles to help decrease the number of older or high-mileage vehicles in their current fleet.
• Improved safety and security enhancements at park and ride and end of line locations.
• Ability to better meet federal compliance requirements.
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• Projects would be cancelled.
• Projects could be delayed until next year.
• Delays in meeting federal compliance obligations.
• The board may request revisions to the proposed Technical Budget Adjustment.
FISCAL IMPACT:
The proposed TBA of $3.575 million will be funded by the approved 2024 Capital Budget. Funds will redistributed among the projects as described in the supplemental file contained within this packet, with those delayed projects being accounted for in the 2025-29 Capital Plan currently being developed.
There is no increase in budget authority or impact on UTA’s Fund Balance with this TBA.
ATTACHMENTS:
• TBA2024-06-01 Technical Budget Adjustment - Capital
• TBA2024-06-01 Technical Budget Adjustment - Capital Details