Coversheet


Agenda Item 6.


TRANSPORTATION AGENCY FOR MONTEREY COUNTY *Memorandum*

To:	Board of Directors
From:	Rita Goel, Director of Finance & Administration
Meeting Date:	May 22, 2019
Subject:	Three-Year Budget and FY 19/20 Overall Work Program

RECOMMENDED ACTION:
APPROVE Resolution 2019-05 adopting the fiscal year 2019/20 budget and overall work program, and estimated budgets for fiscal years 2020/21 and 2021/22.

SUMMARY:

This resolution indicates Board adoption of the final budget and overall work program as well as federal, state and local grant authorizations and certifications. The Board adopted the draft version of the budget and overall work program at its February meeting. This final version makes changes to reflect the latest information on revenues and expenditures, including the receipt of a new Safe Routes to Schools grant.

FINANCIAL IMPACT:

The Transportation Agency for Monterey County gets majority of its funding from state or federal sources. The funding is usually specific to the project or program for which it is granted and cannot be used to cover expenditures of a different project or program, e.g. the funding received for the call box program can only be used for motorist aid programs.

The Agency budget separates expenditures into two types: operating and direct program. Operating expenditures include staff salaries and benefits, materials and supplies, and equipment purchases. Direct program expenditures include outside consultants, contracts, expenditures that apply to specific overall work program tasks such as rail program, highway projects, bicycle and pedestrian program etc.

The proposed fiscal year operating expenditure budget is $3,470,140, a net increase over fiscal year 2018/19 of $273,797.

The proposed fiscal year direct program expenditure budget is $20,417,987, a net increase over fiscal year 2018/19 of $1,884,096.

DISCUSSION:

Three Year Budget

Changes since the Board reviewed the draft budget on February 27, 2019 are:

Operating Budget February Draft May Final Difference
Revenue & Expenditures $3,456,898 $3,470,140 + $13,242

Revenues changes are due to:
1. SRTS-Every Child ATP grant (new grant) increased by $45,212.
2. Reserve usage decreased by $31,970.

Expenditures changed due to:
1. Change in salary and benefits for 2 Administrative positions added $13,242.

Direct Programs February Draft May Final Difference
Revenue & Expenditures $19,021,309 $20,417,987 + $1,396,678

Revenues/Expenditures are changes due to:
1. FORTAG Environmental Phase-shifted some work from current year into 2019/20, added $650,000.
2. SRTS-Every Child-consultant expenses for new ATP grant, plus Measure X match, added $621,678.
3. FORA property development costs, funded out of rail lease revenues, added $50,000
4. Federal legislative expenditures, in case earmarks return, funded by Undesignated Reserves, added $75,000.

Benefit and salary changes are set forth in the resolution, as well as authority for out of state travel trips. Title changes for the Senior Administration Assistant to Clerk of the Board/ Senior Administration Assistant and Accounting Clerk to Accounting Assistant (currently a part-time position) are recommended to better align with the duties and responsibilities of these 2 positions. In addition, a recent salary survey of partner agencies indicates that the adjustments are appropriate to bring both positions up to the current market level. As such, a salary range adjustment, in the amount of 10%, for both positions has been added since the February draft budget to be effective July 1, 2019. The individuals in these positions continue to be high performers.

Details of the operating and direct budgets and the resolution recommended for TAMC Board adoption of the FY 2019/20 budget and overall work program are attached.

Annual Work Program:

The final overall work program adds the “Every Child” Active Transportation Program grant received to expand Safe Routes to School outreach efforts and otherwise contains only minor changes made in response to comments by Caltrans. These edits effectively have very little effect on the 2019/20 work program that the Executive Committee and Board reviewed in February.

Highlights of the overall work program, organized by the Board adopted TAMC goals, and a summary of the overall work program by work element are attached. The full overall work program is included as a web attachment.

ATTACHMENTS:
	Description
	Budget FY 19-20
	Overall Work Program Highlights, by TAMC Goals
	Overall Work Program Summary, by Work Elements
	Resolution 2019-05 Adopting the Budget and OWP

WEB ATTACHMENTS:
Final FY 2019-2020 Overall Work Program