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TO: |
Local Advisory Council |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
William Greene, Chief Financial Officer |
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TITLE:
title
Consultation on Agency’s Tentative 2023 Budget
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AGENDA ITEM TYPE:
LAC - Consultation
RECOMMENDATION:
Review the Tentative 2023 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 12, 2022 the Board of Trustees received a presentation on the 2023 Tentative Budget. Subsequently, at their October 26, 2022 Board meeting, the Board approved a resolution adopting the 2023 Tentative Budget and will conduct a public hearing on November 10, 2022.
The 2023 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 10, 2022 with all comments provide to the Trustees.
On November 2, 2022 the Local Advisory Council will be given the opportunity to review the 2023 Tentative Budget and provide their advice/input to the Board of Trustees.
The 2023 Final Budget will be reviewed at the December 7, 2022 Board of Trustees meeting with adoption scheduled for the December 21, 2022 Board of Trustees meeting.
The detail of the 2022 Tentative Budget is attached.
DISCUSSION:
The 2023 Budget and supporting 5-Year plans were developed during a time of economic uncertainty. Inflation recently set a new 40-year high and interest rates are approaching levels last seen during the Great Recession of 2008. 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 2022 sales tax forecast developed by the University of Utah for UTA. This financial plan is conservative in nature and anticipates flat sales tax growth over the period 2023-2026. Staff is working with the University to monitor economic conditions and a new forecast will be produced in November to support the Final Budget.
The 2023 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 2023 Operating Budget:
• Includes funding to operate the new Ogden Express (OGX) bus rapid transit line and associated local service improvements in Ogden
• Funds Light Rail service on Saturdays
• Increases funding for On Demand to fund growth in demand in South Salt Lake County
• Includes a 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
° Identifying 2024 service needs and developing a strategy to ensure adequate number of operators are in place to support potential 2024 changes
° Addressing inadequate supervisor/operator ratios across the system
• Helps the region address the needs of the unhoused through a Transit Connection Program • Contains initiatives to reduce or avoid operating costs, improve efficiency, and improve compliance through implementation of audit report recommendations and strengthening the audit function at UTA
• Creates a workforce innovation program to engage employees in reducing costs and/or increasing revenues to UTA
• Improves the management of data and lowers risk to UTA’s information technology infrastructure
• Funds a full-time position dedicated to supporting Transit Oriented Communities and Station Area Planning across the region
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 2023 Tentative Budget includes $396 million in operating expenses and $319 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:
1. Budget Summary to Stakeholders
2. 2023 Tentative Budget Document