Category % of Tax Transit 30.0% Highways 27.5% Local Streets - - PDF document

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AGE NDA IT E M #10 (a ) JUNE 4, 2020 SAN MAT E O COUNT Y T RANSPORT AT ION AUT HORIT Y ST AF F RE PORT

T O: T ra nspo rta tio n Autho rity F ROM: Jim Ha rtne tt E xe c utive Dire c to r T HROUGH: De re k Ha nse l Chie f F ina nc ia l Offic e r Ap ril Cha n Chie f Offic e r, Pla nning , Gra nts, a nd the T ra nspo rta tio n Autho rity SUBJE CT :

PUBL IC HE ARING AND ADOPT ION OF INT E RIM, F IRST QUART E R BUDGE T F OR F ISCAL YE AR 2021 ACT ION

Sta ff re c o mme nds the Bo a rd:

• 1. Ho ld a pub lic he a ring o n the Sa n Ma te o Co unty T

ra nsp o rta tio n Autho rity's (T A) pro po se d I nte rim Budg e t fo r the first q ua rte r o f the F isc a l Ye a r 2020-2021 (F Y2021);

• 2. Ad o pt the T

A's I nte rim Bud g e t fo r the first q ua rte r o f F Y2021 in the a mo unt o f $29,764,261.

SIGNIF ICANCE

COVI D 19 ha s ha d a dra ma tic impa c t o n the o pe ra tio ns a nd fina nc e s o f lo c a l g o ve rnme nt, a nd the full e ffe c ts o f this pa nde mic a re still unfo lding , sta ff pro po se s tha t the Bo a rd o f Dire c to rs (Bo a rd ) a p pro ve a n I nte rim Budg e t fo r the first q ua rte r o f F Y2021. T his I nte rim Bud g e t re fle c ts sta ff’ s e xpe c ta tio ns o n pro je c te d sa le s ta x g e ne ra tio n, a s we ll a s a numb e r o f o the r re ve nue so urc e s, fo r the first q ua rte r o f F Y2021, a nd the c o mme nsura te re duc tio n in a llo c a tio ns to the Me a sure A a nd W pro g ra m c a te g o rie s. Sta ff a ntic ipa te s ha ving mo re c la rity o n the pa nde mic 's impa c t o n sa le s ta xe s b y the Se pte mb e r 3, 2020 Bo a rd me e ting , whe n sta ff pla ns to pre se nt fo r Bo a rd c o nside ra tio n a b udg e t fo r the re ma ining q ua rte rs o f F Y2021. T he na rra tive se t fo rth b e lo w de sc rib e s the T A's pro po se d I nte rim Bud g e t fo r the first thre e mo nths (July thro ug h Se pte mb e r) o f F Y2021, b y line ite m. E a c h se c tio n ha s a re fe re nc e to a pa g e numb e r a nd line ite m tha t c o rre spo nd to the F ina nc ia l Sta te me nt a s sho wn o n Atta c hme nt A. Atta c hme nt B sho ws mo re de ta il fo r the Annua l Allo c a tio ns, Me a sure A, a nd Me a sure W Ca te g o rie s.

PUBL IC HE ARING RE QUIRE ME NT S & PROCE SS

Se c tio n 131266 o f the Ca lifo rnia Pub lic Utilitie s Co de re q uire s the T A to ho ld a pub lic he a ring b e fo re a do ptio n a n a nnua l b ud g e t. No tic e o f the time a nd pla c e o f the pub lic he a ring must b e pub lishe d a t le a st o nc e , 15 da ys prio r to the he a ring .

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No tic e o f this pub lic he a ring a ppe a re d in the San Mate o Daily Jo urnal o n Ma y 20, 2020. T he no tic e a lso wa s po ste d in the lo b b y o f the T A's a d ministra tive b uilding , whe re the T A's a g e nd a s a lso a re po ste d fo r pub lic vie wing . As o f the da te o f pub lic a tio n o f this sta ff re po rt, no writte n c o mme nts ha s b e e n re c e ive d . Sta ff re c o mme nds the Bo a rd :

• 1. Ope n the pub lic he a ring ;
• 2. Re c e ive a n o ra l sta ff re po rt a nd pre se nta tio n o n the pro po se d b udg e t;
• 3. Ask sta ff to a nswe r a ny Bo a rd me mb e r q ue stio ns;
• 4. Ac c e pt pub lic c o mme nt;
• 5. Clo se the pub lic he a ring ;
• 6. Co nduc t Bo a rd disc ussio n; a nd
• 7. Ad o pt the pro po se d b udg e t.

BACKGROUND

T he T A wa s fo rme d in 1988 with vo te r pa ssa g e o f Me a sure A, the ha lf-c e nt sa le s ta x fo r c o untywide tra nspo rta tio n pro je c ts a nd pro g ra ms. T he o rig ina l Me a sure A e xpire d De c e mb e r 31, 2008. I n 2004, c o unty vo te rs o ve rwhe lming ly a pp ro ve d a Ne w Me a sure A, re a utho rizing the ta x thro ug h 2033. I n No ve mb e r 2018, c o unty vo te rs a ppro ve d Me a sure W (pla c e d o n the b a llo t b y the Sa n Ma te o Co unty T ra nsit Distric t), a utho rizing a ha lf-c e nt sa le s ta x c o mme nc ing July 1, 2019 fo r a 30-ye a r te rm thro ug h June 30, 2049. One ha lf o f the Me a sure W p ro c e e d s a re tra nsfe rre d fro m the Sa n Ma te o Co unty T ra nsit Distric t (Distric t) to the T A fo r a dministra tio n. T he T A’ s ro le is to a dministe r the pro c e e d s fro m the Me a sure A a nd Me a sure W ta xe s to fund a b ro a d spe c trum o f tra nspo rta tio n-re la te d pro je c ts a nd pro g ra ms.

Re ve nue s

T

• ta l pro je c te d re ve nue fo r the first q ua rte r o f F

Y2021 is $103.5 millio n, a n inc r

e ase o f

$67.0 millio n, o r 183.4 pe rc e nt, fro m the first q ua rte r o f the F Y2020 b udg e t. T he Re ve nue inc lude s the fo llo wing sig nific a nt c o mpo ne nts:

Sale s T ax (Atta c hme nt A, line s 1 a nd 3) Sa n Ma te o Co unty Ordina nc e No . 04223,

whic h a utho rize d the T A to e xte nd its Me a sure A ha lf-c e nt Re ta il T ra nsa c tio ns a nd Use T a x fo r a n a dditio na l 25 ye a rs b e g inning Ja nua ry 1, 2009 a nd e nding De c e mb e r 31, 2033, wa s a ppro ve d b y the vo te rs in No ve mb e r 2004 a s a ne w Me a sure A. Sa n Ma te o Co unty T ra nsit Distric t Ordina nc e No . 105, a p pro ve d b y the vo te rs a s Me a sure W in No ve mb e r 2018, c re a te d a n a d ditio na l ha lf-c e nt Re ta il T ra nsa c tio ns a nd Use T a x fo r 30 ye a rs b e g inning July 1, 2019 a nd e nding June 30, 2049 a nd a utho rize d the T A to a dministe r 50 pe rc e nt o f the Me a sure W ta x re ve nue s. Sa le s T a x is c yc lic a l a nd sub je c t to c ha ng e s in the e c o no my, suc h a s c ha ng e s a sso c ia te d with the COVI D-19 p a nde mic . T

• ta l sa le s ta x re c e ipt re ve nue s re c e ive d b y the T

A fo r July thro ug h Se pte mb e r o f 2020 a re pro je c te d to to ta l $31.4 millio n ($20.9 millio n fo r Me a sure A; $10.5 millio n fo r Me a sure W), whic h is a de c re a se o f $2.8 millio n ($1.9 millio n fro m Me a sure A; $0.9 millio n fro m Me a sure W), o r 8.1 p e rc e nt, fro m the first q ua rte r o f the F Y2020 b udg e t.

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T he e stima te d de c re a se is due to a re vise d pro je c tio n in sa le s ta x re ve nue b a se d o n the c urre nt sta te o f the e c o no my.

Inte r e st Inc o me (Atta c hme nt A, line 5) is inc o me re ve nue g e ne ra te d fro m fund

b a la nc e s in the Orig ina l a nd Ne w Me a sure A a nd Me a sure W a c c o unts in the Co unty I nve stme nt Po o l, the T A’ s I nve stme nt Po rtfo lio , a nd L

• c a l Ag e nc y I

nve stme nt F und (L AI F). I nte re st I nc o me fo r July thro ug h Se pte mb e r (F Y2021) is e stima te d a t $1.9 millio n, a de c re a se o f $275,361, o r 12.7 pe rc e nt, fro m the first q ua rte r o f F Y2020 b ud g e t. T his de c re a se is a re sult o f the re mo va l o f the I nve stme nt Pre mium/ Disc o unt b ud g e t, whic h wa s b a se d o n ma rke t fluc tua tio n.

Re ntal Inc o me (Atta c hme nt A, line 7) is g e ne ra te d fro m pro pe rtie s the T

A o wns a nd le a se s o ut to le sse e s. Re nta l I nc o me fo r the first q ua rte r o f F Y2021 is pro je c te d a t $257,835, a n inc re a se o f $29,847, o r 13.1 pe rc e nt, due to a 3% inc re a se in re nts unde r le a se s b a se d o n the Co nsume r Pric e I nde x a nd the a mo unt inc lude s so me ne w le a se s.

Gra nt Proc e e ds (Atta c hme nt A, line 9) is pro je c te d a t $70.0 millio n fo r F

• Y2021. $50

millio n in re g io na l b ridg e to ll funds fro m Ba y Are a I nfra struc ture F ina nc ing Autho rity (BAI FA) pe r Re so 2019-26 a nd $20 millio n in Sta te L

• c a l Pa rtne rship Pro g ra m (SL

PP) fro m the Ca lifo rnia T ra nspo rta tio n Co mmissio n (CT C) to suppo rt the US-101 Ma na g e d L a ne s Pro je c t.

E xpe nditure s

E xpe nditure s a re b ud g e te d b a se d upo n the T ra nspo rta tio n E xpe nditure Pla n in Me a sure A (2004 T E P) a nd the Co ng e stio n Re lie f Pla n in Me a sure d W, e a c h o f whic h a ssig ns pe rc e nta g e s o f ta x re ve nue s fo r va rio us c a te g o rie s o f pro g ra ms a nd pro je c ts. Bud g e t e xpe nditure s fo r the se ve n prima ry Me a sure A pro g ra m c a te g o rie s a re a s fo llo ws:

Category % of Tax Transit 30.0% Highways 27.5% Local Streets & Transportation 22.5% Grade Separation 15.0% Pedestrian & Bicycle 3.0% Alternative Congestion Relief 1.0% Administration-Staff Support 1.0% Total

100.0%

Bud g e t e xpe nditure s fo r the fo ur prima ry Me a sure W pro g ra m c a te g o rie s a dministe re d b y the T A a re a s fo llo ws:

Category % of Tax Countywide Highway Congestion Improvement 22.5% Local Safety, Pothole and 12.5%

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Congestion Relief Improvement Bicycle & Pedestrian Improvements 5.0% Regional Transit Connections 10.0% Total 1

50.0%

T he to ta l I nte rim e xpe nditure s fo r the first q ua rte r (Atta c hme nt A, line 32) a re $29.8 millio n, a d e c re a se o f $1.8 millio n, o r 5.6 pe rc e nt, c o mp a re d to the first q ua rte r o f the F Y2020 b ud g e t due to the de c re a se in pro je c te d sa le s ta x re ve nue fo r F

• Y2021. T

he F Y2021 inte rim, first q ua rte r b udg e t e xpe nditure s a re c o mpo se d prima rily o f $7.6 millio n in Me a sure A Annua l Allo c a tio ns (Atta c hme nt A, line 16), $10.2 millio n in Me a sure A Ca te g o rie s (Atta c hme nt A, line 18), $2.1 millio n in Me a sure W Annua l Allo c a tio ns (Atta c hme nt A, L ine 20), $8.4 millio n in Me a sure W Ca te g o rie s (Atta c hme nt A, line 22), $562,500 in Ove rsig ht (Atta c hme nt A, line 24), a nd $946,968 in T

• ta l Administra tive

E xpe nse s (Atta c hme nt A, line 30). I nte rim e xpe nditure s fo r F Y2021 fa ll into the fo llo wing ma jo r c a te g o rie s:

Me asur e A Annual Allo c atio ns (Attac hme nt A, line 16)

Annua l Allo c a tio ns a re a llo c a te d dire c tly to the re c ipie nts witho ut a se pa ra te fund pro g ra mming pro c e ss. T

• ta l Annua l Allo c a tio ns fo r the first q ua rte r o f F

Y2021 a re pro je c te d a t $7.6 millio n, a de c re a se o f $675,250, o r 8.1 pe rc e nt, fro m the first q ua rte r o f F Y2020 b ud g e t. Annua l Allo c a tio ns inc lude pro je c ts with F Y2021 funding re q uire me nts a s de ta ile d in Atta c hme nt B.

• Alloc a tion to L
• c a l E

ntitie s – T

he F Y2021 inte rim, first q ua rte r b udg e t o f $4.7 millio n is fo r the impro ve me nt a nd ma inte na nc e o f lo c a l tra nspo rta tio n, inc luding stre e ts a nd ro a d s fo r the twe nty c itie s in the Co unty a nd the uninc o rpo ra te d Co unty.

• SF

O Ba rt E xte nsion – T

he F Y2021 inte rim b udg e t o f $418,000 is a dire c t a llo c a tio n to BART , a nd it re pre se nts the Distric t’ s sha re o f fina nc ia l a ssista nc e a sso c ia te d with the e xisting Sa n Ma te o Co unty / SF O Ba rt e xte nsio n.

• Pa ra tra nsit – T

he F Y2021 inte rim b udg e t o f $836,000 is to me e t the pa ra tra nsit ne e ds o f the c o unty.

• T

ra nsfe r to Sa n Ma te o County T ra nsit Distric t (SMCT D) for Ca ltra in – T

he F Y2021 inte rim b udg e t o f $1.7 millio n is fo r Sa n Ma te o Co unty's lo c a l sha re fo r Ca ltra in

• pe ra tio na l e xpe nditure s; this re pre se nts the up-to 8% o f sa le s ta x re c e ipts tha t

c a n b e tra nsfe rre d to Ca ltra in fo r ra il o pe ra tio ns.

Me asur e A Cate go r ie s (Attac hme nt A, line 18)

Me a sure A Ca te g o rie s inc lude pro g ra ms a s de ta ile d in Atta c hme nt B. T he se c a te g o rie s inc lude Alte rna tive Co ng e stio n Re lie f, Dumb a rto n, Ca ltra in, Pe de stria n a nd Bic yc le

1 Pursuant to Me asure W, the o the r 50% o f the sale s tax re ve nue s are use d fo r

transpo rtatio n syste ms and administe re d b y the San Mate o Co unty T ransit Distric t.

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Pro g ra m, L

• c a l Shuttle , Stre e ts a nd Hig hwa ys, Gra de Se pa ra tio n, a nd the Sa n Ma te o

Co unty F e rry Se rvic e .

• Alte rna tive Cong e stion Re lie f – T

he $209,000 in the F Y2021 inte rim, first q ua rte r b udg e t re pre se nts the full 1 pe rc e nt o f pro je c te d sa le s ta x o utline d in the 2004 T ra nspo rta tio n E xpe nditure Pla n (T E P). Of the to ta l, $77,847 is pro po se d to b e se t a side fo r future a lte rna tive c o ng e stio n re lie f pro je c ts. T he re ma ining $131,153 is b udg e te d fo r Co mmute .o rg ’ s T ra nspo rta tio n De ma nd Ma na g e me nt Pro g ra m fo r the first q ua rte r o f F Y2021.

• Dumba rton – T

he F Y2021 inte rim, first q ua rte r b udg e t o f $418,000 is fo r sta tio n fa c ilitie s a nd e nha nc e me nt fo r the Dumb a rto n ra il c o rrido r thro ug h E a st Pa lo Alto , Me nlo Pa rk, a nd Re dwo o d City.

• Ca ltra in – Sa n Ma te o Co unty's lo c a l sha re fo r the syste m-wide impro ve me nt

pro g ra m in the F Y2021 inte rim, first q ua rte r b udg e t is $1.7 millio n. Syste m-wide c a pita l impro ve me nts a ntic ipa te d to b e unde rta ke n in F Y2021 fo r the Ca ltra in syste m inc lude : Sta te o f Go o d Re pa ir ro lling sto c k, sig na l, tra c k a nd sta tio n wo rk. T he se fund s will b e ma tc he d with mo nie s fro m Ca ltra in pa rtne rs, the Sa nta Cla ra Va lle y T ra nspo rta tio n Autho rity a nd the City a nd Co unty o f Sa n F ra nc isc o .

• Pe de stria n a nd Bic yc le – T

he Pe de stria n a nd Bic yc le line ite m fo r $627,000 re pre se nts o ne q ua rte r o f the 3 pe rc e nt o f sa le s ta x re ve nue s de sig na te d fo r this c a te g o ry in the 2004 T E

• P. T

he se funds will b e use d fo r pro je c ts se le c te d thro ug h future c a lls fo r pro je c ts.

• L
• c a l Shuttle – T

he $836,000 fo r this line ite m re pre se nts the funds se t a side fo r shuttle s re c e iving a llo c a tio ns in the first q ua rte r re sulting fro m the F Y2021 Shuttle Pro g ra m c a ll fo r pro je c ts.

• Stre e ts a nd Hig hwa ys – I

n a c c o rd a nc e with the 2004 T E P, the Stre e ts a nd Hig hwa ys Pro g ra m e xpe nditure s inc lude first q ua rte r funding fo r ke y c o ng e ste d c o rrido rs in the a mo unt o f $3.6 millio n, a nd fo r supple me nta l ro a dwa y pro je c ts in the a mo unt o f $2.1 millio n. T he se fund s will b e use d fo r pro je c ts se le c te d thro ug h future c a lls fo r pro je c ts pro c e sse s.

• Gra de Se pa ra tion – T

he $414,817 inte rim, first q ua rte r b udg e t fo r this line ite m is a va ila b le fo r future Gra de Se pa ra tio n pro je c ts. 15 pe rc e nt o f Me a sure A sa le s ta x re ve nue o utline d in the 2004 T E P is se t a side fo r g ra de se pa ra tio n pro je c ts. Whe n the T A Bo a rd a p pro ve d funding fo r the 25th Ave nue Gra de Se pa ra tio n pro je c t (Pro je c t), it inc lude d funding fro m future ye a rs’ Gra de Se pa ra tio n pro g ra m funds. I n F Y21, the o b lig a tio ns fo r the Pro je c t is no w pa id o ff, a nd the $414,817 is a va ila b le fo r o the r future pro je c ts.

• Sa n Ma te o County F

e rry Se rvic e - $251,976 fo r this line ite m is b udg e te d in the

F Y2021 inte rim b udg e t fo r the first q ua rte r a nd is a va ila b le fo r pro g ra mming to fe rry pro je c ts in a c c o rda nc e with the T A Stra te g ic Pla n.

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Me asur e W Annual Allo c atio ns (Attac hme nt A, line 20)

Annua l Allo c a tio ns a re a llo c a te d dire c tly to the re c ipie nts witho ut a se pa ra te fund pro g ra mming pro c e ss. T

• ta l Annua l Allo c a tio ns fo r the first q ua rte r a re pro je c te d a t

$2.1 millio n. Annua l Allo c a tio ns inc lude pro je c ts with F Y2021 funding re q uire me nts a s de ta ile d in Atta c hme nt B.

• Alloc a tion to L
• c a l E

ntitie s – T

he F Y2021 inte rim, first q ua rte r b udg e t o f $2.1 millio n is fo r the ma jo r a rte ria l a nd lo c a l ro a dwa y impro ve me nts in ke y c o ng e ste d a re a s thro ug ho ut the Co unty.

Me asur e W Cate go r ie s (Attac hme nt A, line 22)

Me a sure W Ca te g o rie s inc lude pro g ra ms a s de ta ile d in Atta c hme nt B. T he se c a te g o rie s inc lude Co untywide Hig hwa y Co ng e stio n I mpro ve me nts, L

• c a l Sa fe ty,

Po tho le a nd Co ng e stio n Re lie f I mpro ve me nts, Bic yc le a nd Pe d e stria n I mpro ve me nts, a nd Re g io na l T ra nsit Co nne c tio ns.

• Countywide Hig hwa y Cong e stion Improve me nts – T

he $4.7 millio n in the F Y2021 inte rim, first q ua rte r b udg e t is the full 22.5 pe rc e nt o f pro je c te d sa le s ta x o utline d in Me a sure W.

• L
• c a l Sa fe ty, Pothole a nd Cong e stion Re lie f Improve me nts Gra de Se pa ra tion –

T he F Y2021 inte rim, first q ua rte r b udg e t o f $522,500 is the full 2.5 pe rc e nt fo r Co ng e stio n Re lie f Pro je c ts in Me a sure W.

• Bic yc le a nd Pe de stria n Improve me nts – T

he Bic yc le a nd Pe d e stria n line ite m fo r $1.0 millio n in the first q ua rte r re pre se nts the full 5 pe rc e nt o f sa le s ta x re ve nue s de sig na te d fo r this c a te g o ry in Me a sure W. T he se fund s will b e use d fo r pro je c ts se le c te d thro ug h future c a lls fo r p ro je c ts.

• Re g iona l T

ra nsit Conne c tion – T

he F Y2021 inte rim b udg e t o f $2.1 millio n is the full 10 pe rc e nt fo r Co ng e stio n Re lie f Pro je c ts in Me a sure W. T he se fund s will b e use d fo r pro je c ts to impro ve tra nsit c o nne c tivity b e twe e n the Co unty a nd the re g io n.

Ove r sight (Attac hme nt A, line 24)

Ove rsig ht c o sts inc lude sta ff a nd c o nsulta nt c o sts to suppo rt pro g ra mming a nd mo nito ring o f pro je c ts, c a lls fo r pro je c ts a nd a dministra tio n o f the po lic ie s a nd pro c e dure s fo r imple me nta tio n o f the 2004 Me a sure . T he se e xpe nditure s will b e funde d fro m inte re st e a rne d o n the inve stme nt o f fund b a la nc e s. T he o ve rsig ht c a te g o ry c o nta ins $562,500 fo r T A c o sts a sso c ia te d with imple me nting the va rio us T E P c a te g o rie s in the first q ua rte r. T he re is no c ha ng e in o ve rsig ht whe n c o mpa re d to the F Y2020 b udg e t.

Staff Suppo r t (Attac hme nt A, line 27)

Sta ff suppo rt inc lude s wa g e s a nd b e ne fits to a dministe r the T

• A. T

he F Y2021 inte rim, first q ua rte r b udg e t fo r this line is $354,683. A ma jo rity o f the $354,683 b udg e t will b e funde d b y the 1.0 pe rc e nt o f the F Y2021 Me a sure A sa le s ta x c a te g o ry de sig na te d fo r sta ff suppo rt. T he de c re a se b e twe e n the first q ua rte r o f F Y2021 a nd first q ua rte r o f F Y2020 b udg e t is prima rily due to de c re a se s in re tire e me dic a l c o sts a nd unfund e d pe nsio n

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• b lig a tio ns.

Othe r Admin E xpe nse s (Attac hme nt A, line 29)

Othe r Admin E xpe nse s re pre se nt a dministra tive e xpe nse s o the r tha n Sta ff Suppo rt a nd Me a sure A I nfo -Othe r. Othe r Ad min E xpe nse s is b udg e te d a t $588,536 fo r the first q ua rte r a nd prima rily c o nsists o f le g a l e xpe nse s, insura nc e e xpe nse s, a nd b a nk a nd a udit fe e s. T he inc re a se b e twe e n F Y2021 first q ua rte r e xpe nse s a nd first q ua rte r o f F Y2020 b ud g e t is prima rily due to the inc re a se in insura nc e pre mium e stima te s fo r F Y2021.

T

• tal Administr

ative (Attac hme nt A, line 30)

T

• ta l a dministra tive e xpe nditure s fo r the first q ua rte r a re pro je c te d a t $946,968, o r

0.6 pe rc e nt le ss tha n the first q ua rte r o f F Y2020 b udg e t. Pre pa re d By: Je a nnie Che n, Ma na g e r, Bud g e ts 650-508-7733 Da nie l Sro ur, Se nio r Bud g e t Ana lyst 650-508-6302

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RE SOL UT ION NO. 2020 – BOARD OF DIRE CT ORS, SAN MAT E O COUNT Y T RANSPORT AT ION AUT HORIT Y ST AT E OF CAL IF ORNIA *** ADOPT ING T HE INT E RIM BUDGE T IN T HE AMOUNT OF $29,764,261 F OR T HE F IRST QUART E R OF F ISCAL YE AR 2021 WHE RE AS, Se c tio n 131265(a ) o f the Ca lifo rnia Pub lic Utilitie s Co de re q uire s the

Sa n Ma te o Co unty T ra nspo rta tio n Autho rity ("Autho rity" o r "T A") Bo a rd o f Dire c to rs to a do pt the I nte rim b udg e t; a nd

WHE RE AS, in a c c o rda nc e with Se c tio n 131266 o f the Ca lifo rnia Pub lic Utilitie s

Co de , the Autho rity c o nduc te d a pub lic he a ring c o nc e rning the I nte rim b udg e t a t its me e ting o n June 4th, 2020; a nd

WHE RE AS, the E

xe c utive Dire c to r ha s pre pa re d a nd pre se nte d to the Bo a rd o f Dire c to rs the pro po se d inte rim b udg e t fo r fisc a l ye a r 2021 whic h inc lude s: Me a sure A Annua l Allo c a tio ns in the a mo unt o f $7,628,500, Me a sure A Ca te g o rie s in the a mo unt o f $10,176,292, Me a sure W Annua l Allo c a tio ns in the a mo unt o f $2,090,000, Me a sure W Ca te g o rie s in the a mo unt o f $8,360,000, Ove rsig ht in the a mo unt o f $562,500, a nd T

• ta l

Ad ministra tive E xpe nse s in the a mo unt o f $946,968.

NOW, T HE RE F ORE , BE IT RE SOL VE D tha t the Bo a rd o f Dire c to rs o f the Sa n Ma te o

Co unty T ra nspo rta tio n Autho rity a do pts the inte rim b udg e t fo r the first q ua rte r o f F isc a l Ye a r 2021, a c o p y o f whic h is a tta c he d a nd inc o rpo ra te d he re in a s Atta c hme nts A a nd B.

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Re g ula rly p a sse d a nd a do pte d the 4th d a y o f June 2020 b y the fo llo wing vo te : AYE S: NOE S: ABSE NT : _________________________________________________ Cha ir, Sa n Ma te o Co unty T ra nsp o rta tio n Autho rity AT T E ST : ___________________________ Autho rity Se c re ta ry

Interim FY2021 Budget

Board of Directors June 04, 2020

Agenda Item #10 (a)

FY2021 Interim Budget Introduction

• The interim budget reflects staff’s expectations of

revenue and expenditures for the first quarter of Fiscal Year 2021.

• Due to current state of the economy, this

proposed interim budget is meant to be a stopgap as we gain more information and can better predict the annual impact on the budget.

2

FY2021 Interim Budget TA Revenues (in millions)

3

Percent of Total Revenue for FY2021 Interim Budget

FY2020 Adopted FY2021 Interim % Change inc/(dec) Sales Tax Measure A $22.8 $20.9 (8.1%) Sales Tax Measure W 11.3 10.4 (8.1%) Interest Income 2.2 1.9 (12.7%) Rental Income 0.2 0.3 13.1% Grant Proceeds 70.0 n/a Total Revenue $36.5 $103.5 183.4%

30% 2% 68%

Sales Tax Interest/Rental Income Grant Proceeds

Sales Tax

4

40,000,000 45,000,000 50,000,000 55,000,000 60,000,000 65,000,000 70,000,000 75,000,000 80,000,000 85,000,000 90,000,000 95,000,000 100,000,000 105,000,000

Measure A Half Cent Sales Tax

Measure A Half Cent Sales Tax Measure W Half Cent Sales Tax

2000-2019: Ac tua ls 2020: F

• re c a st

2021: Pro je c tio n 2000-2019: Ac tua ls 2020: F

• re c a st

2021: Pro je c tio n

FY2021 Expenditures

(in millions)

5

Percent of Total Expenditures FY2021 Interim Budget

FY2020 Adopted FY2021 Interim % Change inc/(dec) Measure A Annual Allocations $8.3 $7.6 (8.1%) Measure A Categories 10.3 10.2 (1.7%) Measure W Annual Allocations 2.3 2.1 (8.1%) Measure W Categories 9.1 8.4 (8.1%) Oversight 0.6 0.6

• Total

Administrative 0.9 0.9 (0.6%) Total Expenditures $31.5 $29.8 (5.6%)

26% 34% 7% 28% 2% 3%

Measure A Annual Allocations Measure A Categories Measure W Annual Allocations Measure W Categories Oversight Total Administrative

Measure A Annual Allocations

(in millions)

6

Percent of Total Annual Allocations FY2021 Interim Budget

FY2020 Adopted FY2021 Interim % Change inc/(dec) Allocations to Local Entities (Measure A) $5.1 $4.7 (8.1%) SFO BART Extension 0.5 0.4 (8.1%) Paratransit 0.9 0.8 (8.1%) Transfer to SMCTD For Caltrain 1.8 1.7 (8.1%) Total Annual Allocations $8.3 $7.6 (8.1%)

62% 5% 11% 22%

Local Entities SFO Paratransit Caltrain

Measure A Categories (in millions)

6

Percent of Total Measure A Categories FY2021 Interim Budget

FY2020 Adopted FY2021 Interim % Change inc/(dec) Alternative Congestion Relief $0.2 $0.2 (8.1%) Dumbarton 0.5 0.4 (8.1%) Caltrain 1.8 1.7 (8.1%) Pedestrian & Bicycle 0.7 0.6 (8.1%) Local Shuttle 0.9 0.8 (8.1%) Streets & Highways 6.3 5.8 (8.1%) Grade Separation

• 0.4

N/A San Mateo County Ferry

• 0.3

N/A Total Measure A Categories $10.3 $10.2 (1.7%) 2% 4% 16% 6% 8% 57% 4% 3%

ACR Dumbarton Caltrain Ped & Bike Local Shuttle Streets & Hwy Grade Separation San Mateo County Ferry

Measure W Annual Allocations

(in millions)

8

FY2020 Adopted FY2021 Interim % Change inc/(dec) Measure W Allocations $2.3 $2.1 (8.1%) Total Measure W Allocations $2.3 $2.1 (8.1%)

Percent of Total Allocations FY2021 Interim Budget

100%

Local Entities

Measure W Categories (in millions)

9

Percent of TA Measure W Categories FY2021 Interim Budget

FY2020 Adopted FY2021 Interim % Change inc/(dec) Countywide Highway Congestion Improvements $5.1 $4.7 (8.1%) Local Congestion Relief- Grade Separation 0.6 0.5 (8.1%) Bicycle & Pedestrian Improvements 1.1 1.0 (8.1%) Regional Transit Connections 2.3 2.1 (8.1%) Total Measure W Categories $9.1 $8.4 (8.1%)

56% 6% 13% 25%

Countywide Highway Local Congestion Relief- Grade Sep

FY2021 Interim Budget Conclusion

• As this crisis unfolds, staff anticipates having more clarity
• n the pandemic’s impact on sales taxes in the near

future and will be able to present the budget for the remaining quarters of FY2021.

• In August, staff will return to the board to present the

FY2021 preliminary budget for the remainder of the fiscal year.

• In September, staff will return to the board for adoption of

the FY2021 budget.

10

Interim FY2021 Budget

Board of Directors June 04, 2020