Three Year Budget:
Attachment 1 is the budget for the three-year period from July 1, 2020 to June 30, 2023. Staff proposed several assumptions for the operating budget, which were reviewed by the Executive Committee in November 2019.
Operating Revenues: The Agency receives regular state planning and related operating funds from three primary state sources: Rural Planning Assistance, Project, Programming and Management funds, and Local Transportation Funds. Since November 2016, 1% revenues for Measure X administration have also been budgeted. In addition, TAMC receives funding related to specific project and program administration from several sources, which are estimated conservatively: Service Authority for Freeways and Expressways program, state rail project grants, Measure X project/program funds and railroad leases. Staff will continue to budget staff time in new grants, such as the recently received Salinas Safe Routes to School. In FY 16/17 the Congestion Management Program assessment on cities and counties was changed to a Regional Transportation Planning Assessment; the contribution amounts will stay at the same dollar level as in prior years but monies will need to be paid from a local funding source. Staff time will be billed to all of these revenues, and expenditures will be tightly controlled.
The Transportation Agency continues to subsidize the activities of the Regional Impact Fee Agency. The budget is projecting the annual use of $10,000 in fee revenue to pay for operating expenses, although the ongoing annual cost to the Transportation Agency for this activity is much higher. Expenditures on regional fee activities are being tracked with the expectation that this cost will be repaid to the Transportation Agency as more fees are collected in the future.
Potential revenue risks to the agency continue to include a reduction in federal and state planning funds and minimal new development and therefore reduced administration funds for the Regional Development Impact Fee Agency. No state funding other than Planning, Programming and Monitoring has been cut recently, but staff will keep the Board advised. Should major revenue reductions occur, the agency would have to reevaluate its revenues, costs and mission to determine essential vs. discretionary activities. Billing staff time to specific projects, when possible, will continue to be a priority.
Operating Expenses: A 3% cost of living allowance is proposed for fiscal year 20/21. Merit increases and promotions will continue to be available subject to performance.
In order to seek ways to restrain rising health care costs, while still providing and protecting quality care, the Agency revised its cafeteria health benefit allowance for its active employees in FY 2011/12. The changes eliminated several variables that existed, permitted the Agency to better forecast its obligation under the cafeteria plan, and reduced the liability for future premium increases. Employees have the flexibility to choose from several plans that are offered by CalPERS. No change to the allowance is proposed in FY 20/21. However, the cash-out allowance amount will be reduced to $375 in order to be in compliance with statutory regulations.
The Agency contribution to CalPERS in FY 2020/21 is projected to be higher than last year due to an increase in CalPERS rates. The Agency paid off its side-fund liability in December of 2013 and made a sizeable payment towards its unfunded liability in June 2016. These two factors help in keeping contributions lower than they would have otherwise been. However, due to Caltrans requiring the Agency to book the expense of the unfunded liability over a 5 year period ($110,168/year) in order to be reimbursed, the budget continues to reflect $110,168 towards the pension contributions.
The Public Employees’ Pension Reform Act of 2013 continues to help curtail the agency’s costs in the future due to the establishment of a 2nd tier, 3-year averaging and required sharing of employee contributions with future new members. In addition, all Agency employees pay a total contribution of 3.5% towards their CalPERS. These contributions help cover increases in CalPERS retirement costs and have brought the member share by employees at the payment percentage recommended in the pension reform law.
Direct Program: Projects, programs and consultant work are funded out of the Direct Program budget. For example, the traffic counts program is funded from the Regional Surface Transportation Program in the Direct Program budget. Caltrans audit repayment, Public Outreach, and State and Federal legislative costs are funded from the unassigned reserve. Funds are budgeted for consultant Federal legislative costs and will only be spent if this activity is needed. Regional Development Impact Fees have been designated by Board action to pay for project costs related to SR 156 improvements and the Highway 68 Monterey to Salinas Scenic Highway corridor.
As a result of good fiscal management, the agency has added to its reserve in past years. As designated in its GASB 54 fund balance policy, the agency will continue to maintain a minimum of a six-month operating budget balance in its undesignated reserve. Also, as requested by the Executive Committee, any excess over the six-month level is designated as a “contingency” fund to cover short-term revenue shortfalls or unanticipated expenses. A portion of the undesignated contingency fund is forecast to be used in each of the three budget years for Operating and Direct Program activities.
Annual Work Program:
The annual Agency Overall Work Program describes the activities to be accomplished during the fiscal year beginning July 1, and ending June 30. After the draft Overall Work Plan is approved by the Transportation Agency Board of Directors at their February meeting, the draft plan will be submitted to Caltrans, who reviews the document and provides comments on the state and federal funded activities in the plan. Agency staff then incorporates comments from Caltrans, as well as comments received from the Transportation Agency Board, into to a final proposed Overall Work Program to be presented to the Board of Directors in May for adoption in conjunction with the fiscal year 2020/21 budget. Attachment 2 is a summary of the Draft 2020/21 Overall Work Program. The full document is linked as a Web Attachment.
Draft 2020/21 Overall Work Program Highlights, by Agency Goal:
Deliver Projects (and Programs)
Measure X administration and implementation including:
- Working with Caltrans on state highway projects:
- Monterey to Salinas Highway 68 Corridor: environmental review and preliminary engineering;
- Highway 156/Castroville Boulevard Interchange: final engineering design and acquisition of right-of-way; and,
- US 101 Safety Improvements – South of Salinas: update Project Study Report and prepare for the environmental phase of the project.
- Imjin Road improvements: work with City of Marina to initiate construction.
- Highway 68 - Holman Highway: work with City of Pacific Grove and Caltrans on relinquishment and future bicycle and pedestrian safety improvements.
- Highway 1 SURF! busway on the Monterey Branch Rail Line: work with MST on environmental review; work with Caltrans, the Cities of Seaside and Sand City to design improvements to intersection at Fremont/California Avenues at Highway 1.
- SR 156-Blackie Road Extension: coordinate with County of Monterey to initiate environmental review and preliminary engineering.
- Fort Ord Regional Trail and Greenway: initiate the Right-of-Way and final engineering phase for the Del Rey Oaks/SR 218 segment and pursue grant funding for other Fort Ord Regional Trail and Greenway segments.
- Habitat Preservation/Advance Mitigation: continue the Resource Conservation Investment Strategy with Caltrans and natural resources agencies.
- Safe Routes to School: continue implementing the Every Child and Salinas grants as part of a coordinated effort to advance the education, enforcement and engineering improvements to reduce collisions and encourage healthy alternatives to driving. Initiate the Safe Routes to Schools in Salinas program.
- Senior and Disabled Mobility program: oversee programs funded in the second round of funding.
Non-Measure X Projects:
- Salinas Rail Extension Project: Complete construction of the Lincoln Avenue extension and parking improvements and continue the right-of-way acquisition and final design for the remainder of the project.
- Wayfinding Signs: continue installing signs for routes identified in the Regional Bicycle Wayfinding Plan.
Administration of Ongoing Programs:
- Go831 traveler information program: continue to outreach to major employers to encourage carpooling, vanpooling, telecommuting, using the bus, biking and walking to work.
- Bicycle Secure Program: fund racks, lockers and related secure storage for bicycles, skateboards and scooters.
Maximize Funding
- Matching grants: work to secure SB 1 and other matching grants for priority projects.
- Planning grants: evaluate the need for future corridor studies and safe routes to school grants.
- Other agencies: assist Caltrans, Monterey-Salinas Transit and member agencies in securing funding and delivering transportation improvements.
Communicate Early and Often
- Continue high level of public interactions during project development and construction.
- Prepare Agency and Measure X annual report.
- Assist member agencies with public outreach.
- Continue ongoing agency media outreach, staff and Board member education.
Prepare for the Future
- Continue developing the 2022 Regional Transportation Plan update.
- Complete streets: support local use of bicycle and pedestrian safety improvements as part of a “complete streets” policy.
- Intersection safety and roundabouts: continue to investigate and support the installation of new engineering designs for intersections to improve safety.
- SAFE Callbox Program: coordinate with CHP to initial removal of underutilized call boxes.
- Blue Zones: continue to coordinate on safety and active transportation with the Blue Zones health and longevity program as it expands countywide.
After the draft Overall Work Plan and budget are approved by the Board of Directors, they will be submitted to Caltrans for review and comment. Agency staff then will incorporate comments from Caltrans and the Transportation Agency Board into a final proposed Overall Work Program to be presented in May to the Executive Committee for review and to the TAMC Board of Directors for adoption.