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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
Amendments to the 2026 Operating Budget and 2026-2030 Five-Year Capital Plan
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Discuss and provide feedback regarding the proposed Operating Budget Amendment and Five-Year Capital Plan Amendment prior to consultation with the Local Advisory Council in February. These proposed amendments will return for Board consideration in March.
BACKGROUND:
Board of Trustees Policy No. 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 Budget Amendment, after consultation with the Local Advisory Council, when an increase in the annual appropriation authority is requested.
DISCUSSION:
The following Amendments are proposed for discussion with the Board: 1) modification to the existing 2026 Operating Budget, and 2) modification to the existing 2026-2030 Five-Year Capital Plan. These proposed Amendments will add $1,924,000 to the 2026 Operating Budget as well as $42,487,000 to the overall 2026-2030 Five-Year Capital Plan.
2026 Operating Budget
The modification to the Operating Budget is for expenses related to additional transit services, via innovative mobility services, in northern Utah County. In partnership with the Utah Department of Transportation (UDOT), the service will be provided to portions of Lehi, Saratoga Springs, Eagle Mountain, American Fork and Alpine with an anticipated start date of July 2026.
2026-2030 Five-Year Capital Plan
The proposed changes to the Five-Year Capital Plan will update two capital projects related to the purchase of Compressed Natural Gas (CNG) buses and Low-Emission Diesel buses. These adjustments are necessary to incorporate the two recently awarded 5339(c) Federal Grants.
The combined award amount of these grants is $41.8 million (detailed below) which does not include the UTA required match of $7.4 million for a total funding amount of $49.2 million. Of the UTA local match amount, $6.7 million is previously planned match and already included in the current approved plan, leaving a needed additional match of $0.7 million; therefore, the amendment adds the remaining $42.5 million to the Capital Plan.
New Grant Award Funding Being Recognized
• REV244- Clean Diesel Bus Purchase- 2025 5339(c) Grant: $20.5 million
• REV245- CNG Bus Purchase- 2025 5339(c) Grant: $21.3 million
ALTERNATIVES:
The Board may provide feedback regarding the proposed amendments. If changes are needed, consultation with the Local Advisory Council may be delayed, thus also delaying the service and bus procurement associated with these amendments.
FISCAL IMPACT:
2026 Operating Budget
This proposed Operating Budget Amendment will increase Operating Budget expenses by $1,924,000 that would be funded by UDOT and Utah County.
2026-2030 Five-Year Capital Plan
The impact to the Five-Year Capital Plan will be an overall increase of $42,487,000 to the total Five-Year Plan amount increasing from $1,069,129,000 to $1,111,616,000. This increase in expense will be offset by incorporating $41,805,200 in new- grant funds, and $681,800 in UTA funds.
The increase in grant funds is due to the recently awarded 5339 formula fund grants for the purchase of new CNG and low-emission buses. As described in the discussion section above.
ATTACHMENTS:
• 2026 Operating Budget Amendment - Exhibit A
• 2026 Operating Budget Amendment - Exhibit A-2 Financial
• 2026 Operating Budget Amendment - Exhibit A-2 FTE
• 2026-2030 Five-Year Plan - Capital Sources - (Amendment 1)