Three Year Budget
Changes since the Board reviewed the draft budget on February 26, 2020 are:
Operating Budget February Draft May Final Difference
Revenue & Expenditures $3,674,024 $3,556,243 - $117,781
Revenues changes due to:
1. Right of Way Rail reserve usage decreased by $95,000.
2. Undesignated reserve usage decreased by $22,781.
Expenditures changed due to:
1. Salaries (removal of cost of living allowance (COLA) & removal of part-time retired annuitant) decreased by $98,872.
2. Fringe benefits decreased by $18,908 (related to the removal of the COLA).
Direct Programs February Draft May Final Difference
Revenue & Expenditures $13,722,919 $13,722,919 $0
No changes are proposed to the Direct Program budget draft budget the Board approved on February 26, 2020. Caltrans has delayed planning grant approvals until late May; normally any successful grants would be added to the May version of the budget. TAMC applied for a grant to study options to improve the Highway 1 - Carmel Area corridor operations.
In today’s pandemic-induced environment, creating a budget for most jurisdictions is, at best, a bit of a guessing game and some difficult budget decisions are being made. Revenue projections are uncertain as local cost structures are being impacted due to a reduction in transient occupancy tax, gas tax and sales tax receipts. It is uncertain when an economic recovery will occur.
The Transportation Agency for Monterey County has over the years, prudently controlled expenses and aggressively sought new revenues by pursuing planing and project grants and will diligently continue to do so. Although, nothing is ever 100 percent certain, management has not had indications that the Agency’s state planning and programming revenues will be reduced over the next two years. Additionally, although Measure X revenues are projected to be lower over the next three years, revenues remain well above the conservative projections of $20 million per year. That conservative forecast along with the program's existing fund balance will allow the Measure X program of projects to largely stay on track to meet programmed local match requirements for the next four years.
The February budget proposed a 3.0% cost of living allowance for all employees. In light of the growing economic uncertainty for the Agency and its member jurisdictions, staff is proposing to remove that COLA. TAMC employees are not currently represented by a union and as such there is not a binding multi-year agreement related to employee compensation.
To contain costs during the year, management will analyze each expenditure by reviewing procurements, supplies, staffing, travel etc. to ensure that the expense is necessary, and that there is an identified funding source.
Two cost drivers of benefits are health premiums and retirement contributions. In order to restrain rising health care costs, the Agency proactively revised its cafeteria health benefit allowance for its employees in FY 2011/12. No change to the allowance is proposed in FY 20/21 and the cash-out allowance amount will be reduced to $375 in order to be in compliance with statutory regulations.
The Agency's contribution to CalPERS in FY 2020/21 is projected to be higher than last year due to an increase in rates. However, because the Agency paid off its side-fund liability in December of 2013 and made a sizeable payment towards its unfunded liability in June 2016, contributions are lower than they would have otherwise been. Since Caltrans requires the Agency to book the expense of the unfunded liability over a 5-year period, the budget continues to reflect $110,168 in annual pension contributions, but those payments have already been made. As such, the operating budget presented is actually lower by this amount and therefore the undesignated reserve will not be utilized in the fiscal year 20/21 budget.
The Public Employees’ Pension Reform Act of 2013 also continues to help curtail the agency’s costs 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 share in contributions towards CalPERS to help in keeping Agency payments lower.
Due to prior years cost containment, Agency has an adequate reserve to help sustain operations in the event of an unanticipated shortfall in revenues.
Details of the operating and direct budgets are attached.
Annual Work Program:
The final overall work program contains only minor changes made in response to comments by Caltrans and to reflect the budget modifications noted above. These changes have very little effect on the 2020/21 work program that the Executive Committee and Board reviewed in February.
Final 2020/21 Overall Work Program Highlights, by Agency Goal:
Deliver Projects (and Programs)
Measure X administration and implementation including:
- Work 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 in coordination with the public and key stakeholders and prepare for the environmental phase of the project.
- Imjin Road improvements: work with City of Marina to initiate construction and support public information and outreach activities.
- 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 and funding; 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 work on the Resource Conservation Investment Strategy with Caltrans and natural resources agencies.
- Safe Routes to School: continue implementing the Every Child education and Salinas Safe Routes to Schools grants as part of a coordinated effort to advance the education, enforcement and engineering improvements to reduce collisions and encourage active transportation to improve the health of school children. Assist the Cities of Marina and Seaside in applying to fund Safe Routes projects identified in their recently adopted plan.
- Senior and Disabled Mobility program: oversee programs funded in the second grant cycle.
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: begin installation of continue signs for routes identified in the Regional Bicycle Wayfinding Plan.
Administration of Ongoing Programs:
- Go831 traveler information program: continue 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; open grant cycles in the budget year include: Active Transportation Program, Trade Corridor, Solutions for Congested Corridors and Local Partnership Program.
- Planning grants: evaluate the need for future corridor studies and safe routes to school grants. Begin implementation of any planning grants received in the prior cycle.
- Other agencies: assist Caltrans, Monterey-Salinas Transit and member agencies in securing funding and delivering transportation improvements. Emphasis will be on supporting member agencies' Active Transportation Program applications and grant programs for the SURF! busway along Highway 1.
Communicate Early and Often
- Continue high level of public interactions during project development and construction. Projects that will be a focus of agency outreach are: Salinas Rail Station and Lincoln Avenue extension, Imjin Parkway improvements, and, US 101 South of Salinas.
- 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 evaluate and support the installation of new engineering designs for intersections to improve safety.
- SAFE Callbox Program: coordinate with CHP to initiate the removal of underutilized call boxes.
- Blue Zones: coordinate with the Blue Zone health and longevity program to promote active transportation and related safety improvements as the program expands countywide.