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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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Greg Andrews, Senior Capital Budget Analyst |
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Daniel Hofer, Director- Capital Programming and Support |
TITLE:
title
TBA2024-12-01 Technical Budget Adjustments
- 2024 Capital Budget
- 2024 Operating Budget
- 2025 Operating Budget
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
Approve TBA2024-12-01 to authorize transfer of $2,360,000 between ten projects within the 2024 Capital Budget, authorize the addition of one position (FTE) to the Board Office within the 2024 Operating Budget, and approve $142,000 from the Non-Departmental contingency budget to fund the addition of the same FTE in 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:
2024 Capital Budget:
Transfer a total of $2.360 million from five projects to five other projects within UTA’s 2024 capital budget to aid in delivery this year.
Benefits UTA anticipates will result from the proposed Technical Budget Adjustment include:
• Aligning budgets with agreements and grants.
• Provide budget assistance for anticipated expenses for these projects through the end of 2024.
The projects identified below will have their budgets increased:
The Automated Passenger Counter (APC) Project, with this budget adjustment, can begin earlier and be completed in 2025. A vendor was recently selected for this project. By adding these funds, work can begin in earnest this year and be completed next year. This would be two years earlier than originally planned. Increasing budget by $1,300,000.
The Human Resource Information System project budget that was programmed in the 2024-2028 Five Year Capital Plan did not include the Payroll Module. This module was recently added, additional funds will be allocated to this project to include the Payroll Module subscription fees for 2024. Increasing budget by $22,000.
The Mid-Valley Connector project has been able to increase construction progress. This budget adjustment will provide project expense authority through the end of 2024. Increasing budget by $300,000.
The FrontRunner Bike Rack project is being closed out. These additional funds will cover final expenses related to project closeout. Increasing budget by $38,000.
The Commuter Rail Vehicle Rehab project has been accelerated. Most of these costs are to accommodate the install of new parts. Increasing budget by $700,000.
The projects where budgets would be decreased are identified below:
The FHWA Charging and Infrastructure Community Program. The grant for this project was not awarded, resulting in unused budgeted funds for 2024. Reducing budget by $910,000.
The System Restrooms project will have available funding at the end of 2024. Reducing budget by $1,000,000.
Bus Stop Improvements & Signing in Salt Lake County project. This project is nearing completion and will have unused funds left over at project completion. Reducing budget by $300,000.
The United Way Tablet Upgrade project is currently on hold. It will be revisited next year. Reducing project by $50,000.
The Meadowbrook Electrification project was delayed this year due to personnel changes. These funds will be unspent at the end of the year. Reducing budget by $100,000.
2024 Operating Budget:
Add a new Government Relations Manager position to the Board Office to support the Board’s effort in government relations strategies. This change will have a net neutral budget impact, with funding for the position coming from current government relations departmental savings.
2025 Operating Budget:
Add the new Board Manager position described in the 2024 Operating Program adjustment to the 2025 Operating Budget. This change will have a net neutral impact on the overall UTA 2025 Operating budget, with funding for the $142,000 increased cost for the position offset by a reduction in the budgeted Contingency account within Non-Departmental funds.
ALTERNATIVES:
The following options the Board could consider and the potential impacts of those decisions:
Board may reject the requested Technical Budget Adjustments. The impact of this would be that capital projects could be delayed until 2025. Additionally, UTA would not be able to pay final invoices and complete the FrontRunner Bike Rack project this year. If the operating change is not made, then support for UTA’s governmental strategies may be impacted.
The Board may request revisions to the proposed Technical Budget Adjustments. This would have the same impact as mentioned above.
FISCAL IMPACT:
Capital Budget:
The proposed TBA of $2.360 million will be funded by the approved 2024 Capital Budget. Funds will be redistributed among the projects as described in the presentation and supplemental material contained within this packet.
Operating Budget:
The proposed addition of the FTE position will be funded by the approved 2024 Operating Budget from operating savings. The addition of $142,000 expense in 2025 will be funded by the approved 2025 Operating budget using the budgeted Contingency account within Non-Departmental funds, leaving a Contingency Balance of $858,000.
There is no increase in budget authority. There will be no impact on UTA’s Fund Balance with this TBA.
ATTACHMENTS:
• TBA2024-12-01 Technical Budget Adjustment - Capital
• 2024 Technical Budget Adjustment - Exhibit A
• 2024 Technical Budget Adjustment - Exhibit A-2 Financial
• 2024 Technical Budget Adjustment - Exhibit A-2 FTE
• 2025 Technical Budget Adjustment - Exhibit A
• 2025 Technical Budget Adjustment - Exhibit A-2 Financial
• 2025 Technical Budget Adjustment - Exhibit A-2 FTE