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5-Year Capital Investment Program 2025-2029
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DESCRIPTION: RTA 5-year Capital Investment Program 2025-29 |
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) 2025-2029 for the 2025 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 had 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.
The CIP is also an opportunity to formalize a program of major projects for 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.
In 2023, the Board adopted a 5-year update of the Strategic Mobility Plan to reflect significant changes and accomplishments since 2018. In late 2023, the staff prepared the agency’s first 5-year Capital Investment Program (CIP) to align with this update and its goals, strategies, and actions. The 2024-2028 5-year CIP was introduced to the Board at several meetings (Agenda Item 23-216); however, due to lack of quorum during this time, the item was never fully adopted.
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DISCUSSION:
The updated 5-Year Capital Investment Program (CIP) is a 5-year roadmap for 2025 through 2029 that will continue to be updated annually in line with the annual budget process where the next year’s expenditures are fully committed. All local funds in the CY2025 Operating and Capital Budget adopted by the Board in December 2024 for the capital program align with this 5-year 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. It is also a means of accountability for the public and the Board to ensure individual activities (e.g. grant applications, new projects) pursued by the staff are in-line with this plan and the agencies strategic priorities.
The 5-year CIP 2025-2029 reflects the need to deliver 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 $627 million. Major projects include the BRT East-West Bank Corridor Project ($282 million) with the initial project development phase funded but requiring an exploration of bond funding during 2025; the Downtown Transit Center ($32 million); expansion of passenger facilities through smaller mobility hubs (phase 1, $10 million); ADA accessible stops for the entire system ($10 million); and transit priority corridors for bus ($10.8 million); and developing a roadmap for system streetcar modernization ($1 million). The 5-year CIP also includes over $26 million for State-of-Good-Repair projects to maintain and preserve existing assets in good condition.
FINANCIAL IMPACT:
There is no direct financial impact to the agency for the 5-year CIP 2025-2029. 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 CY2025 Operating Budget has local funds for capital expenses totaling $17.51 million that will be leveraged with a projected $41.96 million in grant funds based on cash flow projects for the portfolio of projects.
NEXT STEPS:
None.
ATTACHMENTS:
1. Five-Year Capital Investment Program 2025-2029
Prepared By: Dwight Norton
Title: Chief Planning & Capital Projects Officer
Reviewed By: Rafe Rabalais
Title: Director of Capital Projects
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
3/11/2025
Lona Edwards Hankins Date
Chief Executive Officer