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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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TITLE:
title
Consultation on Agency’s Tentative 2024 Budget
end
AGENDA ITEM TYPE:
LAC - Consultation
RECOMMENDATION:
Review the Tentative 2024 Budget and provide advice/input to the Board of Trustees.
BACKGROUND:
Each year, in compliance with State of Utah Code 17B-2a-808.1, the Board of Trustees adopts a tentative budget for the next year and sets a public hearing at which interested parties may comment on the tentative budget.
The Board of Trustees conducted four budget workshops in September. On October 11, 2023 the Board of Trustees received a presentation on the 2024 Tentative Budget. Subsequently, at their October 25, 2023 Board meeting, the Board approved a resolution adopting the 2023 Tentative Budget and conducted a public hearing on November 1, 2023.
The 2024 Tentative Budget was sent to the Governor’s office, Legislature, mayors, commissioners, metropolitan planning organizations, and others. It has also been made available to the public on UTA’s website and will be open for comment throughout the public comment period. The 30-day public comment period will conclude on December 1, 2023 with all comments provide to the Trustees.
On November 29, 2023 the Local Advisory Council will be given the opportunity to review the 2024 Tentative Budget and provide their advice/input to the Board of Trustees.
The 2024 Final Budget will be reviewed at the December 6, 2023 Board of Trustees meeting with adoption scheduled for the December 20, 2023 Board of Trustees meeting.
The detail of the 2024 Tentative Budget is attached.
DISCUSSION:
The 2024 Budget and supporting 5-Year plans were developed during a continuing time of economic uncertainty. Inflation continues at a higher-than-normal rate and interest rates have consistently been increasing versus the low rates of the past decade. Offsetting these negative indicators are robust employment, historically low unemployment levels, and a resilient Utah economy. This budget and supporting financial plans were supported by the April 2023 sales tax forecast developed by the University of Utah for UTA. This financial plan is conservative in nature and anticipates relatively moderate sales tax growth over the period 2024-2027. Staff is working with the University to continuously monitor economic conditions.
The 2024 Tentative Budget was developed with an emphasis on creating value. This will be accomplished by:
• Reducing agency costs
• Making UTA a more efficient organization
• Improving/enhancing service delivery
• Improving UTA culture
The 2024 Operating Budget:
• Increases funding for On Demand service to fund growth in demand in South Salt Lake County
• Provides enhanced Frontrunner service
• Includes a continued service strategy that supports recruitment and retention of operators to meet adopted service plan needs by:
° Adding “extra board” or entry level operators to provide support to all bus business units
° Addressing inadequate supervisor/operator ratios across the system
• Enhances effectiveness and compliance of organization by increasing financial support services
• Focuses on increased communications to customers by adding social media and communications resources
• Provides additional health resources through Hepatitis B vaccination program for employees with exposure risks
• Enhances Transit app capabilities and data integration to help customers
ALTERNATIVES:
The Advisory Council is encouraged to provide their feedback to the Board of Trustees on this tentative budget and any additional considerations that should be discussed.
FISCAL IMPACT:
The 2024 Tentative Budget includes $649 million in operating expenses and $230 million of capital investment to fund the provision of safe, convenient, reliable service and targeted investments in our infrastructure. The budget includes federal and local contributions from our partners.
ATTACHMENTS:
• 2024 Budget Summary to Stakeholders
• 2024 Tentative Budget Document