FINANCE AND BUDGET COMMITTEE

MAY 16, 2002

 

SUBJECT:            FISCAL YEAR 2002 - 2003 Metro BUDGET

 

ACTION:            ADOPT THE FISCAL YEAR 2002 - 2003 Metro BUDGET

 

RECOMMENDATION

 

A.     Adopt the Fiscal Year 2002 - 2003 (FY03) Budget (Attachment A).

 

B.     Adopt the attached Reimbursement Resolution (Attachment B) to authorize the expenditure of funds for capital construction and acquisition activities prior to issuance of debt for specific activities.

ISSUE

 

On April 25, 2002, the Board of Directors adopted Financial Standards that state the Board shall approve the budget by June 30 of the preceding fiscal year.  Additionally, the Financial Standards include the Business Planning Parameters used in developing the fiscal year budget. The FY03 budget submitted for adoption meets or exceeds all of the Business Planning Parameters set forth in the Financial Standards.

FINANCIAL IMPACT

 

The FY03 Budget establishes the Metro’s annual budget objectives as well as identifies and appropriates the resources necessary to accomplish them.  Furthermore, this annual expenditure plan demonstrates the Metro’s capacity to meet its capital and operating obligations, a requirement necessary to receive financial subsidies from the State and Federal governments.

 

ALTERNATIVES CONSIDERED

 

Adopt a continuing resolution until such time that the Metro Budget is adopted.

 

Discussion

 

The proposed budget authorizes 9,158 full-time equivalent positions (FTEs) and a $2,598.6 million spending plan that provides for the following funding:  enterprise activities (bus and rail operations, excluding debt) are budgeted at $884.7 million; capital projects are budgeted at $511.3 million, debt is budgeted at $325.5 million; Benefit Assessment District is budgeted at $6.8 million, other operating expenditures are budgeted at $169.3 million; and regional programs are budgeted at $701.0 million.