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TO: |
Local Advisory Council |
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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
Consultation on Proposed 2025 Capital Plan and Budget Amendments
- 2025-2029 Five-Year Capital Plan First Amendment
- 2025 Capital Budget First Amendment
end
AGENDA ITEM TYPE:
LAC - Consultation
RECOMMENDATION:
Consult with the Board of Trustees regarding Amendments to the 2025-2029 Five Year Capital Plan and 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.
DISCUSSION:
UTA is pursuing improvements and expansion of TRAX service over the next decade which necessitate replacement and growth of its existing light rail vehicle fleet. Additionally, with expanded transit services in the Ogden area, UTA needs to invest in infrastructure improvements at UTA’s Mt. Ogden service unit. These capital projects require supplemental funding through targeted bond issuances. UTA successfully completed bond issuances for these projects in July of 2025. Accordingly, 2025 UTA Capital Budget and 2025-2029 Five-Year Capital Plan amendments are needed to add the bond funds and increase UTA’s annual appropriation authority. The proposed capital plan amendment will add $39,894,000 in bond funds to the overall 2025-2029 Five-Year Capital Plan and the budget amendment will add $67,000,000 in bond funds to the overall 2025 Capital Budget.
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 both the 2025 Capital Budget and 2025-2029 Five Year Capital Plan.
Mt Ogden Admin Building Expansion:
UTA is about to complete design on this project. As UTA progressed through the design process, it was ultimately decided to change the physical location of this new building. It was moved from a location in the southwest corner of the lot to a location that is more closely adjacent to Wall Ave. This move required the demolition of an existing bus canopy and the installation of a new bus canopy that was not originally planned in the initial cost estimate for this project. This budget amendment will primarily address the addition of this new bus canopy as well as other minor adjustments to place the building in the new location.
While UTA does not anticipate construction to begin this year, by updating the five-year plan at this point, it will allow UTA to begin procuring a contractor for the construction of this building in 2026. This will allow for construction to start earlier in 2026 than originally planned.
ALTERNATIVES:
The Local Advisory Council may provide feedback on the proposed amendments as desired. Proceeding with the amendments will allow the Light Rail Vehicle Replacement and the Mt. Ogden Administration Building projects to proceed timely and efficiently.
FISCAL IMPACT:
The proposed amendments will have the following impacts on UTA’s 2025-2029 Five Year Capital Plan and the 2025 Capital Budget. Impacts are outlined below:
2025-2029 Five-Year Capital Plan:
The overall impact to the Five-Year Capital Plan will be an overall increase of $39,894,000, increasing the total five-year plan amount from $1,199,533,000 to $1,239,427,000. This increase in expense will be offset by an equal increase in bond funds.
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 at a later date, would increase UTA’s budget authority in 2025 by $67,000,000.
ATTACHMENTS:
• 2025-2029 Five-Year Capital Plan (Proposed Amendment 1)
• 2025 Capital Budget (Proposed Amendment 1)