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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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Daniel Hofer, Director - Capital Programming and Support |
TITLE:
title
Proposed Capital Plan and Budget Amendments
- 2025-2029 Five-Year Capital Plan First Amendment
- 2025 Capital Budget First Amendment
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Information item for discussion. Following a discussion with the Board of Trustees, staff will present the amendments to the Local Advisory Council for consultation.
BACKGROUND:
Board Policy 2.3 Budget allows the Board of Trustees to amend or supplement the Authority’s budget at anytime 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 proposed Budget Amendment contains two parts: 1) modifies the existing 2025-2029 Five Year Capital Plan and 2) modifies the existing 2025 Capital Budget. This proposed Budget Amendment will add $39,894,000 to the overall 2025 Five Year Capital Plan. It will also add $67,000,000 specifically to the 2025 Capital Budget.
The Budget Amendment will impact two projects:
• SD100/SD160 Light Rail Vehicle Replacement
• Mt Ogden Admin Building Expansion
SD100/SD160 Light Rail Vehicle Replacement:
In 2023, UTA awarded a contract to Stadler to purchase 20 new Light Rail Vehicles with an option to purchase additional vehicles at UTA’s discretion. 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 an option for 20 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 completing 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 Board may reject the request to advance this Budget Amendment. The impact of this would be that UTA would proceed with only 20 vehicles on order. Exercising options later may negate the current guaranteed vehicle pricing and UTA would likely end up spending more on additional vehicles. For the Mt Ogden Admin Building Expansion, UTA would lose the benefit of this early funding programming and only be able to utilize a smaller portion of the construction season in 2026.
FISCAL IMPACT:
FISCAL IMPACT:
This proposed Budget Amendment 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 on 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 later, would increase UTA’s budget authority in 2025 by $67,000,000.
There will be no impact on UTA’s Capital Contingency line. There is no impact on UTA’s Fund Balance, but this action will increase UTA’s Debt Service obligations by an estimated $211,027,857 over the life of the new bonds. Actual expense amounts will be made known once the bonds are sold and before the board’s final approval.
ATTACHMENTS:
None