About Presentations:

Action: Review and comment, comment with edits, the April 13, 2023 Measure C Citizen Oversight Committee Action Summary.

Summary: Price Paige & Company Accountancy Corporation was retained by the Authority to perform the audit of finances on all local agencies receiving Measure C Extension revenue as required in the 2006 Measure C Extension Expenditure Plan. The firm has recently completed their audits of finances and submitted the final reports for fiscal year ending June 30, 2020¹ , which has been provided in the committee packet. In summary, the firm stated that local agencies continue to adhere to the record keeping and reporting requirements, as well as proper expenditure of Measure C funds in accordance with provisions of the Measure C Transportation Sales Tax Extension. The City of Fowler is the only local agency still completing the audit process and those reports will be presented to the COC at a future meeting.

Action: Receive, review, inspect and recommend action.

Summary: California Public Utilities Code Section 142257 provides that the 2006 Measure C Extension Expenditure Plan shall specify the amount and the formula by which the retail transactions and use tax shall be allocated to each participating jurisdiction for Local Transportation Purposes. The 2006 Measure C Extension Expenditure Plan created a number of transportation programs to be implemented by participating jurisdictions with Measure C funds passed through from the Authority to the jurisdictions. 

Consistent with adopted policy for administration of the funds, the Authority requested and received the annual estimate of Measure C funds from the Fresno County Auditor-Controller/ Treasurer-Tax Collector. Based upon the annual estimate of total street miles from the California Department of Transportation, the annual estimate of population from the California Department of Finance, and the Measure C allocation formula as dictated by the 2006 Measure C Extension Expenditure Plan, the attached estimate of available funds and the annual apportionments has been calculated and included in Resolution 2023-02.

Action: Review and comment.

Summary: This proposed 2023-24 Original Measure C budget has no estimated sales tax revenue during the fiscal year due to the expiration of the original Measure C sales tax levy in 2007. However, it is estimated to gain $1,100,000 in interest revenue which will be used to fund the remaining urban and rural projects.  Since there will be no sales tax revenue from the original Measure, the related administration will be funded with administrative reserves which are on deposit with the Auditor-Controller/Treasurer-Tax Collector.  This reserve accumulated over the 20 years of the original Measure C to fund the transition to an extension of the tax measure, or to finance Authority close-out costs if the Measure were to have expired. Use of these funds to cover the administrative costs of on-going Measure C projects is consistent with the intended use of these accumulated funds.  The proposed method of financing the administrative budget has been reviewed and accepted by Authority Legal Counsel and the Auditor-Controller/Treasurer-Tax Collector’s office. 

The overall budget for the original Measure C is very similar to last year’s budget with no new efforts planned. The proposed administrative salary, benefits and administrative support and services cost budget request is $261,150. This proposed administrative budget reflects 50% of the salary and benefits of one employee (the Program Manager) with the remaining 50% paid out of the Measure C Extension Program.  The services and supplies that pertain to the Original Measure C Program have also been split by a 70/30 percentage between the Original (30%) and Extension (70%).  Salary and Benefits reflect the currently approved salary structure. 

Action: Informational

Summary: This proposed 2023-24 Measure C Extension budget includes estimated sales tax revenue and interest earnings to be received during the 2023-24 fiscal year of $118,921,541, a $3.8 million increase over last year’s approved budget. This revenue estimate reflects a moderately conservative 1% projected increase over 2022-23 actual revenues due to heightened level of uncertainty regarding the economic outlook over the near-term. The 2022-23 budget reflected a 3% increase in revenues. The budget includes approximately $6.5 million in interest income. 

This Measure C Extension revenue projection is the result of a collaborative effort between the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and the Authority’s financial advisor, Montague DeRose Associates, which took into consideration local and Statewide financial expectations.

The proposed administrative salary and benefits budget request is $578,571. This proposed budget reflects 100 % of the cost of two employees (the Executive Director and the Contracts Administrator) and 50% of the cost of one employee (the Program Manger) at the currently approved salary structures plus 6% potential salary increase. The remaining 50% of the Program Manager’s salary is funded through the original Measure C. Measure C enabling legislation limits salary and benefits to 1% of total revenues.

The total proposed Administrative Budget, which includes employee salary and benefits as well as other administrative costs and unallocated reserves, is $1,116,245. The Administrative Budget shares all office expenses and support services needed to fulfill the administrative duties of all three employees at a 70% Extension/30% Original split.  As with prior years, the balance of the 1% of total revenues allowed for salary and benefit costs by the enabling legislation is recommended to be reserved to build up funds to finance agency closedown if required, or transition to another Extension in 2027. 

The 2023/24 Extension budget also proposes Services and Supplies expenditures in the amount of $797,084.  This budget category provides the services needed to deliver the overall Measure C Program and for the most part reflects actions previously approved by the Board.  Where appropriate, Services and Supplies expenses are prorated between the FCTA Original Measure and the Extension to reflect actual service to each.  Examples of services funded in this category include:

• Legislative Advocate
• Financial Advisor
• Outreach Program
• Self Help County Organization membership dues
• Accounting & Legal Services
• Audit expense

The remainder of the proposed Extension budget is similar to the 2022-23 budget and consists of pass-through funding to participating jurisdictions for all categories of projects and programs identified as eligible pass-through activities. 

The proposed budget also identifies the undistributed reserve allocations for programs or projects that are not ready to proceed at this time.  These funds will continue to be retained by the Authority in separate accounts until reimbursement agreements are approved and claims submitted.

Action: Receive, review, inspect and recommend action.

Summary:  The RTMF revenue projection is the result of a collaborative effort between the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and RTMF Agency staff, which took into consideration projected development activity in Fresno County during the 2023-24 fiscal year.  The fee income identified in this budget is the result of applying the RTMF fee schedule, as updated by the Board in January 2020, to the development activity estimated to take place during the upcoming fiscal year.

There are no proposed administrative salaries, benefits, or support costs proposed in this budget because the fee is calculated and collected by the RTMF Agency.  Costs associated with RTMF Administration are also covered by a separate fee imposed and collected by the RTMF Agency.

The RTMF fund currently has an uncommitted fund balance of $16,910,486 in cash and the budget under consideration today proposes to continue repaying the RTMF loans by transferring this current fiscal year’s uncommitted fund balance to Measure C in 2023-24. Annual payback will include prior year uncommitted fund balance minus the anticipated Administrative Expenditures.  This payback process will continue annually to service the outstanding loan balance.  The current outstanding loan balance as of March 31, 2023, is $82,161,719 which reflects the total prior years payback of $29,783,511 against the loan principal and accumulated interest. This budget is the continuation of that repayment effort. 

The 2023-24 RTMF budget identifies an estimated $5,500,000 in fee collection revenue based on recent development activity in Fresno County and $125,950 in interest earnings.  The final category of resources available to deliver the RTMF construction program in 2023-24 is $26,278,050 in Measure C Loans that are estimated to be needed to service ongoing construction contracts in the coming year.  These funds are available, if needed, to pay costs as they come due for on-going contracts and will be added to the outstanding $82,161,719 Measure C loan identified above to be amortized over the remaining life of the fee program.  Combining all of the above listed resources, results in a total of $48,814,486 available to deliver the 2023-24 RTMF Program.

The expenditure side of the proposed 2023-24 RTMF Budget identifies $31,904,000 for design, R/W and construction of projects, $15,000 for Services and Supplies which is made up of an estimated $5,000 for legal services and $10,000 for Consultant Services to update the Strategic Implementation Plan as needed to reflect the changes resulting from the anticipated 2023 Measure C Expenditure Plan update and $16,895,486 in Measure C RTMF Loan payback program.

To date, nearly $54 million of RTMF funds have been collected to help fund critical Measure C infrastructure projects.

Action: Receive, review, inspect and recommend action. 

Summary:  Each fiscal year the Citizen Oversight Committee (COC) asks all local agencies receiving Measure C Local Transportation Pass-Through Funds to complete a reporting of how they expect to spend the current year's Measure C Local Program allocations. The request goes out to local agencies via a form that staff updates and emails out each year.

To date, the following required Local Agency Budget Forms were completed and returned for COC review by local agencies:

• City of Firebaugh

Action:  Review and comment.

A.  Upcoming 2023 COC meeting dates - please reserve these dates from 4-6:00 pm

B.  Items for the next agenda

C.  Upcoming Meetings/Events of other related Boards/Committees

FCTA

• June 14, 2023 at 9:00 AM in-person at the Plaza Building Ballroom
  
• August 16, 2023 at 9:00 AM in-person with location to be determined.