Metro - File #: 2019-0640

• File #: 2019-0640
• Type: Informational Report
• Status: Agenda Ready
• File created: 8/13/2019
• In control: Finance, Budget and Audit Committee
• On agenda: 9/18/2019
• Title: RECEIVE AND FILE the Annual Budget Development Process.
• Sponsors: Finance, Budget and Audit Committee, Operations, Safety, and Customer Experience Commit
• Indexes: Budget, Budgeting, Bus rapid transit, Capital Project, Capital Project Funds, Construction, Federal Transit Administration, Funding plan, Informational Report, Maintenance, Measure M, Measure R, Operations and Maintenance, Outreach, Policy Advisory Council, Program, Regional transportation, Safety, State Of Good Repair, Subsidies, Transit buses, Transit operators

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
SEPTEMBER 18, 2019
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 19, 2019

Subject
SUBJECT: BUDGET DEVELOPMENT PROCESS

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE the Annual Budget Development Process.

Issue
ISSUE

At the May 2019 Board Meeting, the Board requested a report back on the budget development process. This report provides the budget development process and improvements for increased transparency throughout the year.

Discussion
DISCUSSION

Metro is a regional transportation planner, builder, funder and transit operator for Los Angeles County. The budget represents an annual snapshot of the needs for the agency to continue with the multi-year programs and plans underway. Applying budget resources to these programs is a comprehensive and iterative year-round process. The budget development starts with updating the progress on the program plans, assessing the rate of milestone delivery, and the available resources for these core programs grouped by Transportation Infrastructure Development (Builder), Metro Transit Operations (Operator), and Planning & Subsidy Program (Planner/Funder).
At the beginning of the fiscal year (July through December), departments focus on the development of long-term project and program budget planning to ensure alignment with the program goals and agency initiatives. Staff applies available funding to meet these program needs at the same time. The second half of the year (January through June), staff refines the first year of the long term plan to produce the annual budget.
Along with the program progress review, Metro prepares a Quarterly Financial and Performance Report that summarizes the results of actual to budget variance and Metro's overall performance from the Comprehensive Agencywide Performance Evaluation (CAPE) tool. The CAPE measures progress of Mission Essential Task Lists (METLs), Key Performa...