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File #: 2015-1776   
Type: Plan Status: Passed
File created: 12/16/2015 In control: Executive Management Committee
On agenda: 1/21/2016 Final action: 1/28/2016
Title: A. ESTABLISHING Internal Savings Account to capture cost savings and revenues generated from RAM, including deposits from FY15 budget-to-actual savings and FY16 mid-year budget assessments; B. DIRECTING the CEO to implement all RAM new initiatives and deposit all cost savings and new revenues generated into the Internal Savings Account, as identified in Attachment B; C. DIRECTING the CEO to return to the Board on those initiatives requiring policy changes or Board action before implementing each initiative, as identified in Attachment B; and D. APPROVING Internal Savings Account eligible priority uses and withdrawal criteria guidelines, as identified in Attachment C. Quarterly updates and monitoring of the activities of the account will be provided to the Board. AMENDMENT: CEO will have authority to withdraw funds for eligible uses in the priority order specified. Withdrawal of funds by the CEO will be allowed if within current Board-approved budget authority and in accorda...
Indexes: Guidelines, Plan, Safety, Variance
Attachments: 1. Attachment A - Ten Year Financial Forecast and RAM Impact, 2. Attachment B - RAM New Initiatives 12.30.15, 3. Attachment C- ISA Guidelines, 4. Attachment D - RAM Presentation
Meeting_Body
REVISED
EXECUTIVE MANAGEMENT COMMITTEE
JANUARY 21, 2016

Subject/Action
SUBJECT: RISK ALLOCATION MATRIX (RAM) AND INTERNAL SAVINGS ACCOUNT

ACTION: APPROVE ADOPTION OF RISK ALLOCATION MATRIX (RAM) AND INTERNAL SAVINGS ACCOUNT

Heading
RECOMMENDATION

Title
A. ESTABLISHING Internal Savings Account to capture cost savings and revenues generated from RAM, including deposits from FY15 budget-to-actual savings and FY16 mid-year budget assessments;

B. DIRECTING the CEO to implement all RAM new initiatives and deposit all cost savings and new revenues generated into the Internal Savings Account, as identified in Attachment B;

C. DIRECTING the CEO to return to the Board on those initiatives requiring policy changes or Board action before implementing each initiative, as identified in Attachment B; and

D. APPROVING Internal Savings Account eligible priority uses and withdrawal criteria guidelines, as identified in Attachment C. Quarterly updates and monitoring of the activities of the account will be provided to the Board.

AMENDMENT: CEO will have authority to withdraw funds for eligible uses in the priority order specified. Withdrawal of funds by the CEO will be allowed if within current Board-approved budget authority and in accordance with agency policies. Use of funds not specified as eligible will require unanimous 3/4 majority Board approval.

Issue
ISSUE

Based on the most recent 10-year financial forecast (Attachment A), Metro is projecting a financial deficit of $272.6M in FY19. In order to mitigate this projected budget shortfall, we must take small steps now in order to avoid the need for drastic measures in the future. By establishing an internal savings account, implementing new initiatives for cost savings and revenue generation, and depositing the resulting funds into the internal savings account, Metro can achieve financial stability.


Discussion
DISCUSSION

In June 2015, the CEO introduced the Ri...

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