|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Viola Miller, Chief Financial Officer |
|
|
Brad Armstrong, Director, Budget & Financial Strategy |
TITLE:
title
Tentative 2025 Operating and Capital 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 in accordance with the provisions of the Special Districts Act (§17B-1-702), the Public Transit District Act (§17B-2a-8), and Board Policy 2.3 Budget.
The Executive Director has prepared a 2025 Tentative Budget for the Board of Trustees’ consideration. The proposed 2025 Tentative Budget was informed by the Board’s Budget Work Sessions held on August 5-9 and August 16, 2024. Recordings and materials from those meetings are available on UTA’s Public Meeting Portal that can be accessed at www.rideuta.com <http://www.rideuta.com>.
DISCUSSION:
Over the first half of 2024, the Board of Trustees and UTA staff reviewed 2024 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 2024 existing operating budgets as a starting point, the organization updated inflationary assumptions for labor, fuel and other expenses, eliminated one-time 2024 costs, and annualized the cost of mid-year budget adjustments (August 2024 service changes, technical budget adjustments, etc.). The resulting 2025 base budget or budget target was developed at the department and object of expenditure levels.
Aligning to the strategic plan and informed by discussions with the Board of Trustees, the organization built on the base budget 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 new Draft 2025-2029 5-year Capital Plan.
In August 2024, the Board of Trustees reviewed 2024 capital program delivery, discussed 2025-2029 assumptions, and staff previewed existing projects and new projects being considered for inclusion in the 5-year Capital Plan. Also in August, the Board of Trustees held multiple budget work sessions to discuss the 2025 operating and capital budgets.
An overview of the proposed Tentative 2025 Budget will be presented at this meeting, and a resolution to adopt the 2025 Tentative Budget will be presented at the Board’s next meeting on September 25, 2024. Stakeholder and public feedback opportunities will commence thereafter, with a public comment period from October 7 - November 6, a public hearing will be held on October 10, and consultation with the Authority’s Local Advisory Council will be scheduled on November 6. A Final 2025 Budget will then be prepared for the Board’s consideration in December.
Summary information about the 2025 Tentative Budget is provided in the tables below. More detail will be provided in the budget documentation that will be included in the agenda packet for the Board’s September 25, 2024 meeting.
ALTERNATIVES:
The Board may direct staff to provide revisions to the proposed Tentative Budget that will be presented for adoption on September 25, 2024.
FISCAL IMPACT:
The proposed 2025 Tentative Budget and supporting 5-year Capital Plan are financially constrained with all required reserves fully funded.
ATTACHMENTS:
None