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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 11/19/2008 - Workshop 1 REGIONAL TRANSPORTATION AUTHORITY BOARD OF DIRECTORS' BUDGET WORKSHOP MEETING MINUTES WEDNESDAY, NOVEMBER 19, 2008 SUMMARY OF ACTIONS 1. Heard Presentation on Twenty-Year Capital Projections 2. Heard Presentation on FY 2009 Capital Budget 3. Heard Update on Proposed 2009 Operating Budget The Regional Transportation Authority Board of Directors met at 10 a.m. in the Regional Transportation Authority Facility located at 5658 Bear Lane, Corpus Christi, Texas. Board Members Present: Anna Flores (Board Vice-Chair), Vangie Chapa, Ricardo Ramon, Mike Rendon, Mary Saenz, Judy Telge Board Members Absent: Crystal Lyons (Board Chair), John Longoria, David Martinez, Sara Salvide, John Valls Staff Present: Eduardo Carrion (Interim General Manager), Sylvia Castillo, Sharon Montez, Oscar Vargas, Lamont Taylor, Ruth Willey, Beth Vidaurri Public Present: Elias Sissamis, Financial Consultant; Eloy Soza, RCAT; John Bell, Legal Counsel Call to Order Ms. Flores called the meeting to order at 10:10 a.m. Presentation on Twenty-Year Capital Projections Mr. Sissamis referred to a handout which provided an overview of the long-range (20-year) projections that explained how to read the projections, listed the various capital projects, and contained copies of the current Board Reserves Policy. He explained that the cash flow projections guidance tool was developed to assist the agency in projecting future financial resources and the uses of the funds for capital items to sustain and even expand the transit system. • Reviewing the long-range projections for the -operating budget, cash flow, and grants, Mr. Sissamis noted that the projection range listed was from 2008 to 2028. Under the cash flow section, he informed that the ending resources over the twenty years were projected to range from $15 to. $16 million. This indicated financial stability and the projected "Unreserved" balances indicated sustainability. In response to Ms. Flores, Mr. Sissamis explained that the projections were based on the agency controlling operating expenses. • Regi nal Transportation Authority Board of Directors' Budget Workshop Meeting Minutes November 19, 2008 Page 2 Providing an overview of the agency's reserves, Mr. Sissamis gave details on each of the reserve accounts. The Operating Reserve, he explained, was designed to meet emergency operating needs due to revenue shortfalls and unforeseen major operations-related expenditures. The Health Insurance Reserve, created in 2006, provides that funds remaining at year end after paying all expenses related to the health insurance program would remain in the reserve account and could build up to a maximum of $500,000. He noted that by the end of 2008 the reserve would not have a surplus due to several large claims. The Grant Matching Reserve was designed to cover the local share of grants authorized for the agency. He stated that this reserve was updated based on the application for or receipt of grants. Continuing with the explanation of reserve accounts, Mr. Sissamis said that the Capital Acquisition Reserve was designed to address capital acquisition needs that were funded from 100 percent local funds. The Capital Replacement Reserve was designed to address capital replacement needs that were funded from local funds or from future grants requiring,a local match. The Unreserved account was designed to be a non-project specific fund and could be used to meet the match on any new grants received or to fund unbudgeted projects. Mr. Sissamis noted that several years ago the RTA's revenue projection was not favorable, but due to the unexpected increase in sales tax revenue within the past couple of years, the agency's cash flow projection was favorable. In response to Ms. Saenz, Mr. Carrion explained that the Capital Replacement Reserve account was used to fund Board approved projects. Mr. Carrion reported that in the long-range projections schedule, he had obligated approximately $8 million for growth initiatives for the agency which he would detail under the next agenda item. Presentation on FY 2009 Capital Budget Mr. Carrion distributed an outline on the long-range projections capital outlay. He explained that his vision was to provide for growth initiatives instead of just sustaining the current public transportation system. Mr. Carrion identified the items included in the projection to sustain the transit system such as the replacement of buses; continuance of bus stop and station improvements; and the purchase of IT and facilities equipment. The items he included in the capital forecast for growth, which were funded in the projected capital outlay, were the purchase of land on the Southside, Flour Bluff, and Northwest areas of town; providing for the grant match for the intermodal facility; identifying ADA transition plan initiatives; adding for the purchase of additional buses; ,provision for an alternative fuel initiative; and refurbishment of the MV facility. • Reg ; tai Transportation Authority Board of Directors' Budget Workshop Meeting Minutes November 19,2008 Page 3 A discussion ensued regarding the expansion of services provided by the RTA. Mr. Carrion explained that attention should be given to providing more service to the outlying areas and potentially expanding the member cities. Unfunded capital outlay growth initiatives, as identified by Mr. Carrion, were for the establishment of a Bus Rapid Transit (BRT) system and light rail. In response to Ms. Telge, Mr. Carrion stated that if the Board decided to pursue either initiative, funding would be from the Capital Replacement Reserve account. In response to Ms. Chapa, Mr. Sissamis referred to the ledger sheet handout identifying and placing the proposed capital projects under the year the project was anticipated to be undertaken. He stated that this tool would assist in identifying the target start date for capital initiatives. Mr. Rendon initiated a discussion on the Street Improvement Fund. Mr. Sissamis explained that the $500,000 given to the City of Corpus Christi was listed under the Capital Budget and was required to be applied to projects that the Agency would own or would have a direct benefit to the Agency. The funds for the Street Improvement Fund were taken from the operating budget and used for general purpose type of projects. Ms. Flores requested a breakdown of the funding provided to the RTA member cities under the program. Ms. Telge requested a copy of the Street Improvement Fund agreement(s). Mr. Rendon said that he felt that the agreements should stress that the funds needed to be applied to transit-related projects. Mr. Sissamis stated that an information document on the Street Improvement Fund would be provided. Discussing the proposed Robstown Intermodal project, Mr. Carrion explained that the anticipated grant match of $250,000 was included in the current capital budget and that the estimated $8 million project cost was based on preliminary costs research of other intermodal facilities. In response to Mr. Rendon, Mr. Carrion stated that the area on the Southside being considered for construction of a future transit station was the vicinity of Lipes and Staples. Ms. Telge suggested that the Housing Authority be contacted regarding their development experiences and also that development of a Transit Oriented Development (TOD) be considered. Update on Proposed 2009 Operating Budget Mr. Sissamis distributed a document depicting the revised proposed 2009 operating budget based on input received in prior budget workshops. He informed the Board that the handout was the document that would be posted for public review in compliance with the 14 day public notice posting requirement under Chapter 451 of the Texas Transportation Code. He pointed out that the Board was being asked to approve a budget that was short by approximately $853,359, but noted that the Regi' ; ,, Transportation Authority Board of Directors' Budget Workshop Meeting Minutes November 19, 2008 Page 4 shortfall could be funded from the projected $1,478,275 favorable balance from FY 2008. He informed that the favorable 2008 budget was due to higher than budgeted sales tax revenues. Explaining staffs projected usage for the remaining balance of the FY 2008 funds, Mr. Sissamis said that the proposed plan was to establish a temporary "contingency fund" for the purpose of meeting economic uncertainties that could affect the 2009 sales tax and investment revenues as well as ensuring adequate funding for the employee pension plan; covering potential high health insurance claims; and providing for transit system expansion and other trial services to meet latent regional demands. Over viewing the proposed 2009 operating budget, Mr. Sissamis stated that the proposed 2009 budget represented a 3.6 percent increase in revenues and a 3.7 percent increase in expenses over the amended 2008 budget. He identified the changes made to the draft operating budget presented to the Board in September as follows: 1) added provision for relocating the Customer Center office to the former Roosevelt-Baker location; 2) removed Customer Programs part-time intern; 3) added Route #27 express; 4) increased the budget for the CEO salary; 5) updated the Health Insurance estimate; 6) added funding for compensation study recommendations; 7) decreased the budget for insurance rates and moved those funds into the insurance savings to fund the pension plan; and 8) adjusted the funds for the 2009 Street Improvement Fund. Ms. Telge commented that staff had provided very informative and thorough information at the budget workshops which would allow Board Members to make informed decisions when adopting the budget. There being no further business, the meeting was adjourned at 11:35 a.m. 5wteu 466..Akt, Sara Salvide, Board Secretary I9OR Date