Three Year Budget:
Attachment 1 is the budget for the three-year period from July 1, 2021 to June 30, 2024. Staff proposed several assumptions for the operating budget, which were reviewed by the Executive Committee in November 2020. At this meeting, the committee also requested staff survey other jurisdictions for cost of living allowance given in the past and provide the fiscal impact of a 2% and 3% COLA for its January 2021 meeting. After review of this information in January, the Executive committee recommended staff budget a 2% COLA.
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 2% cost of living allowance is proposed for fiscal year 21/22. 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. In order to offset recent premium cost increases, a change to TAMC’s cafeteria plan health allowance is proposed, which would result in an increase of $99.29/month for general employees and $198.58/month for management as of FY 2021/22. The last change to this allowance was made two years ago. However, the cash-out allowance amount will be remain at $375 in order to be in compliance with statutory regulations.
The Agency contribution to CalPERS in FY 2021/22 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.
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. Caltrans audit repayment, Public Outreach, and State and Federal legislative costs are funded from the unassigned reserve. No funds are budgeted for consultant Federal legislative costs at this time but will be added to the final budget 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.
The big change in the budgeting process this fiscal year is that under the Direct Programs, capital expenditures e.g. Rail to Salinas will be incorporated into the Integrated Funding Plan and ongoing programs e.g. Freeway Service Patrol, Call Boxes, and Go 831 traveler information program will remain in the budget.
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 some 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 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 2021/22 budget.
Draft 2021/22 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 1 SURF! busway on the Monterey Branch Rail Line: work with MST on final design and funding.
- SR 156-Blackie Road Extension: coordinate with County of Monterey to initiate environmental review and preliminary engineering.
- Fort Ord Regional Trail and Greenway: complete 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: pursue advance mitigation opportunities based on the on the Resource Conservation Investment Strategy.
- 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.
- Senior and Disabled Mobility program: oversee programs funded in the second grant cycle.
Non-Measure X Projects:
- Salinas Rail Extension Project:
- Transfer ownership of the Salinas train station improvements to the City of Salinas.
- Continue the right-of-way acquisition and final design for the layover facility and Gilroy station modifications portions of the project.
- Wayfinding Signs: begin installation of wayfinding signs for routes identified in the Regional Bicycle Wayfinding Plan.
Administration of Ongoing Programs:
- Go831 traveler information program: renew 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, potential new federal funding, and other matching grants for priority projects
- 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:
- Imjin Parkway improvements, segment 1 of the Fort Ord Regional Trail and Greenway project, 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.
- Participate in state and federal policy discussions advocating for the policies adopted in the Agency's legislative platform.
- Participate in Central Coast Counties efforts to coordinate electric vehicle charging infrastructure for freight and interregional passenger vehicle travel.
- Monitor emerging transportation technologies including autonomous cars and trucks and Urban Air Mobility.
- 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 complete 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.
Integrated Funding Plan:
The Agency's initial Integrated Funding Plan developed in 2017 was designed to identify projects and programs that will be strong candidates for specific matching fund programs, and to identify a funding pathway to bring projects to construction over the next five years. The primary sources of funding included in the Integrated Funding Plan are the regional share of Measure X, Monterey County's share of the State Transportation Improvement Program, and the various Senate Bill 1 formula and grant funding programs.
The draft 2021 Integrated Funding Plan updates the 2019 version of the plan with the latest funding and timing information for the projects and programs. The 2021 version of the plan includes a few additional projects to be consistent with staff work identified in the budget and work program.
Project development phases doesn't don't naturally follow the Agency's July1 to June 30 fiscal year calendar. Past Agency budgets included direct project costs such as property acquisitions for the Salinas Rail Extension project. These costs would often carry over from year-to-year, artificially inflating the Agency's direct budget. The Integrated Funding Plan covers all expenses associated with a given project. More closely aligning the Integrated Funding Plan with the Budget and Overall Work Program provides a summary of project's and program's timing and funding while allowing the Budget and Overall Work Program to focus on the Agency's planning activities and ongoing programs e.g. Freeway Service Patrol, Call Boxes, and Go 831 traveler information program.
The next steps in the process are to present the draft budget, Overall Work Program, and Integrated Funding Plan to the Board of Directors in February and in May to bring the final versions of the documents to the Executive Committee for review and the Board of Directors for adoption.