Metro - File #: 2025-0108

• File #: 2025-0108
• Type: Informational Report
• Status: Agenda Ready
• File created: 2/5/2025
• In control: Finance, Budget and Audit Committee
• On agenda: 3/20/2025
• Title: RECEIVE AND FILE the Fiscal Year 2026 (FY26) Budget Development Status Update.
• Indexes: Access Services Inc., Active Transportation Program, Amtrak, Budget, Budgeting, Capital Project, Congestion Reduction Demonstration, Construction, Construction Support, Funding plan, Grade separations, Grant Aid, High speed rail, Informational Report, Inglewood, Inglewood Transit Connector Project, Labor, Local Returns, Low-Income Fare is Easy (LIFE), Metro ExpressLanes, Metrolink, Metrolink Antelope Valley Line, Multimodal, Operations and Maintenance, Outreach, Palmdale, Pomona, Program, Project, Project delivery, Railroad commuter service, Ridership, Safety, South Bay Cities subregion, South Bay Service Sector, State Of Good Repair, Strategic planning, Subsidies, Tolls, Transit operators, Transit Oriented Development, Transit Oriented Development Planning Grant Program, Transit Pass

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
MARCH 20, 2025

Subject
SUBJECT: FISCAL YEAR 2026 BUDGET DEVELOPMENT STATUS UPDATE

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE the Fiscal Year 2026 (FY26) Budget Development Status Update.

Issue
ISSUE

This report continues the monthly updates to the Board on the FY26 Budget development process, culminating in a planned May 2025 Board Adoption. It focuses on Metro's diverse portfolio of major infrastructure projects included in Transit Infrastructure Development, Highway Multimodal Development, and Regional Rail Programs.

Additionally, it provides an overview of Metro's Regional Allocation and Pass Throughs (Subsidy) funding programs. This report also provides an update on Metro's comprehensive budget outreach efforts.

Background
BACKGROUND

The annual budget request reflects the 12-month financial increments required for advancing through each project's development phase. It serves to monitor the cash flow requirements for activities in each project phase and considers factors such as the existing level of Board authorization, the respective project delivery schedules, and the identification of eligible and available funding sources. These sources may include federal, state, and local grants, sales taxes, and various financing mechanisms.

Most of the projects within the major capital programs adopt a multiyear Life of Project (LOP) Budget. For projects utilizing the alternative delivery methods, a multi-year Pre-Construction Budget is adopted prior to establishing a full LOP Budget. The purpose of the multi-year budget is to establish the financial resources necessary for the duration of a particular project phase in the case of Pre-Construction Budget, and for the completion of the project in the case of a full LOP Budget. The LOP budget encompasses the Pre-Construction Budget and planning phase expenditures. These multi-year budgets seek Board appr...