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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 |
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Dan Hofer, Director, Capital Program & Support |
TITLE:
title
Tentative 2026 Operating and Capital Budget
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational report for discussion
BACKGROUND:
Each year the Authority is required to prepare an operating and capital budget for the succeeding year in accordance with the provisions of the Special Districts Act (§17B-1-702), the Public Transit District Act (§17B-2a-8), and Board Policy 2.3 Budget.
The Executive Director has prepared a 2026 Tentative Budget for the Board of Trustees’ consideration and approval. The proposed budget was developed following consultation with the Board during Budget Work Sessions held on August 11-12 and August 14, 2025. Recordings and materials from those meetings are available on UTA’s Public Meeting Portal that can be accessed at www.rideuta.com <http://www.rideuta.com>.
DISCUSSION:
Over the first half of 2025, UTA staff reviewed 2025 program delivery, current operating environment including economic conditions, revenue projections, and the organization’s strategic plan to support near and long-term public transportation needs in the region.
Using 2025 existing operating budgets as a starting point, the organization updated inflationary assumptions for labor, fuel and other expenses, eliminated one-time 2025 costs, and annualized the cost of mid-year budget adjustments (August 2025 service changes, technical budget adjustments, etc.). The resulting 2026 base budget or budget target was developed at the department and object of expenditure levels.
Aligning to the strategic plan, the organization built on the base budget with the selection of prioritized initiatives focused on:
• Quality of Life
• Customer Experience
• Organizational Excellence
• Community Support
• Economic Return
Simultaneously, the capital program development process reviewed the existing 5-year Capital Plan, held a call for new projects, and prioritized the resulting list to select projects for consideration, culminating in a new Draft 2026-2030 5-year Capital Plan.
In August 2025, Budget Work Sessions were held during which the Board of Trustees reviewed 2025 capital program delivery, discussed 2026-2030 assumptions, and staff previewed existing projects and new projects being considered for inclusion in the 5-year Capital Plan.
An overview of the proposed Tentative 2026 Budget will be presented at this meeting, and a resolution to adopt the 2026 Tentative Budget will be presented at the Board’s next meeting on October 8, 2025. Stakeholder and public feedback opportunities will commence thereafter, with (1) a public comment period from October 8 - November 7, (2) a public hearing to be held on October 30, and (3) consultation with the Authority’s Local Advisory Council scheduled for November 5. A final 2026 Budget will then be prepared for the Board’s consideration in December.
Summary information about the 2026 Tentative Budget is provided in the attachments. Additional detail will be provided in the budget documentation that will be included in the agenda packet for the Board’s October 8, 2025, meeting.
ALTERNATIVES:
The Board may direct staff to provide revisions to the proposed Tentative Budget that will be presented for adoption on October 8, 2025.
FISCAL IMPACT:
The proposed 2026 Tentative Budget and supporting 5-year Capital Plan are financially constrained with all required reserves fully funded.
ATTACHMENTS:
2026 Exhibit A
2026 Exhibit A-1
2026 Exhibit A-2
2026 Exhibit A-3