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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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Brad Armstrong, Director Budget & Financial Strategy |
TITLE:
title
TBA2025-05-01 - Technical Budget Adjustments
- 2025 Capital Budget
- 2025 Operating Budget
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
Approve TBA2025-05-01 to authorize transfer of $16,363,000 between various projects within the 2025 Capital Budget, authorize the addition of 0.5 position (FTE) to the Board Office and 2.0 positions (FTE) to the Enterprise Strategy Office within the 2025 Operating Budget.
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 make the following changes:
2025 Capital Budget:
Transfer a total of $16,363,000 between 11 projects, including the Capital Contingency (MSP999), within UTA’s 2025 capital program to aid in project delivery this year. This request, if approved by the Board, will affect the current budget total of 10 different projects within UTA’s capital program and shift funds out of the Capital Contingency.
These adjustments should better align these projects with the planned 2025 Milestones and cover additional obligations.
The attached exhibits provide detail for all projects included in this budget adjustment.
The main benefit UTA anticipates receiving from the proposed Technical Budget Adjustment includes:
• Aligning budgets with remaining obligations and anticipated expenditure amounts for the projects through the end of 2025 including unfinished 2024 work.
2025 Operating Budget:
Add a new 0.5 FTE Board Office Assistant position to the Board Office to support management of elected officials lists and other administrative functions. This change will have a net neutral budget impact, with funding for the position coming from current salary savings in the Government Relations and Board Office budgets. Add 2.0 FTE Senior Systems Administrator positions to the Enterprise Strategy Office to support UTA’s efforts to support the installation and expansion of the Enterprise Asset Management System. This change will have a net neutral budget impact, with funding for the positions coming from the current 2025 capital budget for technology items.
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• The Board may reject the requested Technical Budget Adjustments. The impact of this would be UTA would need to revise its spending plan, or projects could be delayed due to lack of funding. If the operating changes are not made, then support for UTA’s Board administrative activities and Asset Management process may be impacted.
• The Board may request revisions to the proposed Technical Budget Adjustment. This could have the same impact as mentioned above.
FISCAL IMPACT:
Capital Budget:
The proposed TBA of $16,363,000 will be funded by the approved 2025 Capital Budget. Funds will be redistributed among the projects described in the presentation and supplemental material contained within this packet.
If TBA is approved, there will be a balance remaining in the Capital Contingency of $4,516,000. The funding source amounts for the Capital Contingency line are as follows: $555,000 in Bonds, $1,237,000 in State funds, $296,000 in Local Partner funds, and $2,428,000 in UTA funds. This TBA would have a net decrease of $5,508,000 to the Contingency.
Operating Budget:
The proposed addition of the Board Office Assistant 0.5 FTE position will be funded from the 2025 Operating Budget using operating savings.
The proposed addition of the Enterprise Strategy 2.0 FTE positions will be funded from existing funding available in the 2025 Capital Budget.
There is no increase in budget authority. There is no impact on UTA’s Fund Balance within this TBA.
ATTACHMENTS:
• TBA2025-05-01 - Capital
• TBA2025-05-01 - Operating Exhibit A Financial (by mode/function)
• TBA2025-05-01 - Operating Exhibit A-2 Financial (by Office)
• TBA2025-05-01 - Operating Exhibit A-2 FTE