Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
SEPTEMBER 18, 2019
Subject
SUBJECT: METROLINK ADDITIONAL FY 2020 FUNDING
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. REPROGRAMMING $2,088,793 of forecasted FY 2018-19 (FY19) surplus to fund the Southern California Regional Rail Authority's (SCRRA operated as "Metrolink") FY 2020 CEO Workplan; and
B. AMENDING and APPROVING Metro's revised share of the FY 2019-20 (FY20) Metrolink Budget for a new total programming amount of $119,976,796.
Issue
ISSUE
Metrolink is requesting approval of $3.75 million of their forecasted FY 19 year end surplus be reprogrammed and carried forward into the Metrolink FY 20 Operating Budget. Metro's share of the $3.75 million is $2,088,793 which would increase Metro's FY 20 Metrolink funding share to a new total programming amount of $119,976,796. The Metro Board approved Metro's funding share of the Metrolink FY 20 budget in the amount of $117,888,003 at the Board of Directors meeting on May 23, 2019. As a member of the Metrolink Joint Powers Authority, Metro is required to approve Metro's funding share of the Metrolink budget on an annual basis. Staff's recommended Board action will increase Metro's funding share of the Metrolink FY 20 budget by $2,088,793 from $117,888,003 to $119,976,796.
Discussion
DISCUSSION
Metrolink staff analyzed their FY 19 budget actual revenue and expenditures in comparison to their adopted budget and identified an FY 19 forecasted budget surplus of $7.5 million as of May 31, 2019. The FY 19 forecasted budget surplus is a result of lower than budgeted operational expenditures amounting to a cost savings of $10.1 million. However, Metrolink is forecasting a revenue shortfall of $2.5 million which is being deducted from the $10.1 million for a net forecasted surplus of $7.5 million.
Metrolink is requesting to use 50% of the FY 19 forecasted surplus, totaling $3,734,202 to focus on improved fiscal sust...
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