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5-Year Capital Investment Program 2024-2028
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DESCRIPTION: RTA 5-year Capital Investment Program 2024-28 |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to implement the 5-year Capital Investment Program (CIP) 2024-2028 for the 2024 Calendar Year.
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ISSUE/BACKGROUND:
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Although the agency has had a long-range, strategic plan, the Strategic Mobility Plan, since 2018 there has been no accompanying formal program of capital projects and initiatives to map out those efforts, their connection to the strategic goals of the agency, budgets, and financing plan. This work is typically accomplished by most public institutions as a Capital Improvement or Investment Program (CIP) with a five (5) year horizon. This timeframe strikes a balance between the long-term maturation of projects, particularly large capital ones, and reasonably predictable financial and tactical forecasting. A CIP does not typically have all funds identified in this 5-year window for all projects, but rather sets prioritized guidance for development and pursuit of financing, particularly for projects early in the development stage.
In 2023, the Board adopted a 5-year update of the Strategic Mobility Plan to reflect significant changes and accomplishments since 2018. Along with numerous major grants and awards, the staff has been developing the agency’s first 5-year CIP to align with this update and its goals, strategies, and actions.
The CIP is also an opportunity to formalize a program of major projects for the repair, replacement, and general State of Good Repair (a formal FTA term) of existing vehicles, facilities, rail systems and other assets. The identification of these needs is also being formalized through the Transit Asset Management Plan (TAM), another plan that FTA requires to be updated a minimum of every 4 years and connects to related formula funding for said needs.
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DISCUSSION:
The 5-Year Capital Investment Program (CIP) is a 5-year roadmap for 2024 through 2028 that will be updated annually in line with the annual budget process where the next year’s expenditures are fully committed. All local funds in the CY2024 Operating and Capital Budget adopted by the Board in December 2023 for the capital program align with this CIP. Further out, a majority of funding in the 5-year CIP is anticipated or projected. By outlining the program first, the CIP serves as a roadmap for securing funding based on strategic priorities including pursuing grants, financing opportunities, and other sources.
The 5-year CIP 2024-2028 reflects the need to make significant investments in greater transit experience including rapid rides across the region (BRT), faster payment methods, and expanded passenger facilities. This expansion also comes with the need to grow responsibly and maintain current assets and new ones as they come online. The total 5-year CIP program budget is $604 million. Major projects include the BRT East-West Bank Corridor Project ($282 million) with significant local funding needs to be identified during 2024; Downtown Transit Center ($32 million); expansion of passenger facilities through smaller mobility hubs (phase 1, $10 million and phase 2, $30 million); ADA accessible stops for the entire system ($10 million); and transit priority corridors for bus ($10.8 million); modernized streetcar corridors ($6 million) and streetcar expansion ($28 million).
FINANCIAL IMPACT:
There is no direct financial impact to the agency for the 5-year CIP 2024-2028. Local funds are committed through the annual Operating and Capital Budget. The CIP will guide the pursuit of future funding opportunities such as grants and bond issuance, each of which will align the program budget and plan and will be brought to board as individual actions. The approved CY2024 Operating Budget has capital expenses totaling $46,763,603 (including Ferry). For revenues $14,764,614 is RTA local funds. This 5-year CIP has an updated expenses total of $51,512,164 based on more recent cash flow projections, but maintains RTA local fund revenues of $14,690,123 - just under the approved budget. The additional revenues to fund the higher expense total is from secured grant funds.
NEXT STEPS:
None.
ATTACHMENTS:
1. Five-Year Capital Investment Program 2024-2028
Prepared By: Dwight Norton
Title: Chief Planning & Capital Projects Officer
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
12/21/2023
Lona Edwards Hankins Date
Chief Executive Officer