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

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 Ap ril Cha n Chie f F ina nc ia l Offic e r 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 AR 2021 F ISCAL YE 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 . Pa g e 1 o f 7 16549021.1

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 o 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: ax (Atta c hme nt A, line s 1 a nd 3) Sa n Ma te o Co unty Ordina nc e No . 04223, Sale s T 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 o 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. Pa g e 2 o f 7 16549021.1

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. 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 Inte r 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 o 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 o 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% Pa g e 3 o f 7 16549021.1