RIVERSIDE COUNTY TRANSPORTATION COMMISSION

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1 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: May 9, 2012 TO: FROM: THROUGH: Riverside County Transportation Commission Budget and Implementation Committee Michele Cisneros, Accounting and Human Resources Manager Anne Mayer, Executive Director SUBJECT: Proposed Budget for Fiscal Year 2012/13 BUDGET AND IMPLMENTATION COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to: 1) Discuss, review, and provide guidance on the proposed FY 2012/13 Budget; and 2) Open the public hearing in order to receive input and comments on the proposed FY 2012/13 Budget on May 9 and on June 7, 2012, and thereafter close the public hearing. BACKGROUND INFORMATION: Staff has completed the initial budget preparation process, and attached is an executive summary for the proposed FY 2012/13 Budget. The policy goals and objectives approved by the Commission on March 14 were the basis of this budget. The policy goals and objectives considered during the preparation of the budget relate to mobility initiatives, goods movement, improved system efficiencies, environmental stewardship, economic development, intermodalism and accessibility, and public and agency communications as well as financial and administration policies. Staff will present highlights of significant items included in the budget and is seeking review of and input on the proposed FY 2012/13 Budget. Based on input received from Commissioners, staff will update the document, as necessary, and present the proposed budget for the opening of the public hearing and for the Commission s review on May 9. As a result of input received from the public and the Commission, staff will make any necessary changes to the budget document for final review, close of the public hearing, and adoption at the June 7 Commission meeting. The executive summary document contains a summary of all departmental budgets and summarizes the information for the entire Commission. The department budgets present the goals and objectives, the resources needed to accomplish the Agenda Item 6 1

2 goals, and the appropriations required to accomplish the tasks. Staff also included the budgets by governmental fund type, as this table provides a summary of the budgeted revenues and expenditures from a fund perspective. Preliminary funding estimates for transit operating and capital expenditures have been included in the budget, although the draft Short Range Transit Plans are still under review. An adjustment for a revised estimate of these transit expenditures may be included in the final budget document presented in June At the June 7 Commission meeting, staff will present the entire budget with detailed narratives. A summary of the proposed FY 2012/13 Budget is as follows: FY 2012/1 3 Budget Revenues and other financing sources: Sales taxes-measure A and Local Transportation Funds $ 185,000,000 Reimbursements (federal, state, and other) 97,476,600 Transportation Uniform Mitigation Funds, including reimbursements 5,257,300 State Transit Assistance 14,212,500 Other revenues 882,800 Interest on investments 7,321,700 Debt proceeds 1,240,172,000 Transfers in 326,313,700 Total revenues and other financing sources 1,876,636,600 Expenditures and other financing uses: Personnel salary and fringe benefits 6,777,300 Professional services 13,891,200 Support services 5,326,600 Projects and operations 456,013,100 Capital outlay 432,700 Debt service (principal, interest and costs of issuance) 143,413,000 Transfers out 326,313,700 Total expenditures and other financing uses 952,167,600 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 924,469,000 Beginning fund balance (projected) 546,924,700 Ending fund balance (projected) $ 1,471,393,700 Attachment: FY 2012/13 Proposed Budget Executive Summary Agenda Item 6 2

3 3 Executive Summary Introduction The budget for Fiscal Year (FY) 2012/13 is presented to the Board of Commissioners (Board) and the citizens of Riverside County. The budget outlines the projects the Commission plans to undertake during the year and appropriates expenditures to accomplish these tasks. The budget also shows the funding sources and fund balances that will be used for these projects. This document will serve as the Commission s monetary guideline. To provide the reader a better understanding of the projects, staff has included descriptive information regarding each department and major projects. The discussion in each department includes a review of accomplishments, major initiatives, and key assumptions. Staff used the goals and objectives approved at the Commission meeting on March 14, 2012, to prepare this budget. In addition to the Commission s long term goals and strategic plan, the short term factors listed below were used to guide the development of the budget: Operational Complete projects and programs included in the 1989 Measure A. Aggressively pursue completion of the environmental, design, and construction processes on the State Route (SR) 91, Interstate (I) 15, and I 215 projects included in the Western Riverside County Delivery Plan. Continue development of the SR 91 corridor improvement project toll program including executing toll program agreements with key partners, preparing requests for proposals for a design build contract, and completing funding opportunities via the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan program. Work closely with local jurisdictions to implement the Transportation Uniform Mitigation Fee (TUMF) Regional Arterial Program and facilitate the delivery of arterial improvements in western Riverside County (Western County). Continue the preliminary engineering and environmental clearance for the Mid County Parkway and SR 79 realignment projects. Work with local and regional agencies in developing resources for preservation and maintenance of the highways and regional arterials. Continue cooperation with the Federal Transit Administration (FTA) regarding the Small Starts process to support activities for the Perris Valley Line Metrolink extension (Perris Valley Line) project. Improve utilization and increase efficiency of commuter rail lines serving the County. Support innovative programs that provide transit assistance in hard to serve rural areas or for riders with special transit needs. Support cost controls and promote operating efficiency for transit operators. Maintain effective partnerships among commuters, employers, and government to increase the efficiency of our transportation system by encouraging and promoting transportation alternatives. Continue to provide a motorist aid system that ensures safety and convenience to freeway motorists. Maintain an active involvement in state and federal legislative matters to ensure that the Commission receives proper consideration for transportation projects and funding. Maintain close communication with Commissioners and educate policy makers on all issues of importance to the Commission. Financial Fund administrative costs with allocations from Measure A, LTF, FSP, SAFE, and TUMF funds. Maintain administrative program delivery costs below the policy threshold of 4% of Measure A revenues; the FY 2012/13 Management Services budget is 2.63% of Measure A revenues. Maintain administrative salaries and benefits at less than 1% of Measure A revenues; the FY 2012/13 administrative salaries and benefits is.96% of Measure A revenues. Continue to maintain prudent cash reserves to provide some level of insulation for unplanned expenditures. Maintain current positive bond ratings with rating agencies.

4 4 Move forward on Measure A projects for highways and regional arterials using sales tax revenues, TUMF revenues, and state and federal funding as well as financing alternatives such as commercial paper, sales tax revenue bonds, and toll revenue bonds. Leverage and protect past Measure A investments in rail with state and federal funding for additional rail improvements, including the Perris Valley Line. Maintain the financial software system to integrate project accounting needs and improve accounting efficiency. Budget Overview Total sources (Table 1) are budgeted at $1,876,636,600, which is an increase of 286% over FY 2011/12 projected sources and a 308% increase over the FY 2011/12 budget. Total sources are comprised of revenues of $310,150,900, transfers in of $326,313,700, and debt proceeds of $1,240,172,000. The projected fund balance at June 30, 2012 available for expenditures (excluding reserves for debt service of $5,665,300 and advances receivable of $31,350,700) is $509,908,700. Accordingly, total funding available for the FY 2012/13 budget totals $2,386,545,300. Table 1 Sources FY Measure A Sales Tax $ 123,439,800 $ 124,000,000 $ 124,000,000 $ 124,000,000 $ 0% LTF Sales Tax 60,772,800 61,000,000 61,000,000 61,000,000 0% STA Sales Tax 9,537,000 14,073,600 14,212,500 4,675,500 49% Intergovernmental 40,569,000 48,667,600 50,481,900 97,476,600 48,809, % TUMF Revenue 9,157,900 6,784,300 6,397,400 5,257,300 (1,527,000) 23% Other Revenue 2,321, , , , ,400 49% Investment Income 4,524,200 1,824,000 3,391,100 7,321,700 5,497, % Operating Transfers In 185,354, ,739, ,283, ,313, ,574,600 92% Debt Proceeds 170,000,000 38,000,000 60,000,000 1,240,172,000 1,202,172, % TOTAL Sources $ 596,140,300 $ 460,144,400 $ 486,078,200 $ 1,876,636,600 $ 1,416,492, % Through FY 2005/06, the County had experienced significant growth corresponding to the national economic expansion and amplified locally by competitive advantages of Riverside County over nearby coastal counties (Los Angeles, Orange and San Diego): (i) housing that was (and remains) more available and affordable; and (ii) plentiful commercial real estate and available development land at lower rates. Moreover, both transportation and communication access to employment centers in Los Angeles and Orange counties improved. Riverside County s economy thrived, reflecting the area s competitive advantages over its neighboring counties, largely as a result of the County s continuing ability to draw jobs, residents, and affordable housing away from the Los Angeles, Orange, and San Diego county areas. As a result, the County enjoyed a more diversified employment and commercial base and an increasing share of the regional economy. Today the economy in Riverside County reflects the recent nationwide recession, as evidenced by high unemployment; lower total personal income and taxable sales, residential building permits, and the rate of home sales and the median price of single family residences; and high rates of distressed properties. The impact of the recession has been amplified in the Inland Empire (i.e., Riverside and San Bernardino counties) due to its relatively greater growth through 2006 and the relatively lower average income levels when compared to coastal areas. These factors have resulted in fluctuating Measure A and LTF sales tax revenues and decreased TUMF fees as noted in Chart 1; however, the sales tax revenues appear to have stabilized since FY 2009/10.

5 5 Chart 1 Commission Sources Trend $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 Measure A Sales Tax LTF Sales Tax STA Sales Tax TUMF Federal, State, Local Revenues Operating Transfers In Debt Proceeds $200,000,000 $0 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 While economic reports indicate that the national recession ended in 2009 and economic growth has resumed, recovery in the local Inland Empire economy continues to be affected by the area s housing woes due to the exposure to the subprime mortgage market collapse several years ago. The economic outlook for the Commission in FY 2012/13 is encouraging with the stabilization of sales tax revenues; however, the state and federal budget issues continue to affect funding of the Commission s capital projects and programs. Should Measure A and LTF sales tax revenues decline again and the availability of federal and state revenues continues to be uncertain, the timing and scope of the Commission s projects and programs may be impacted. While the Commission s primary revenues are the Measure A and LTF sales taxes, other revenues and financing sources are required to fund the Commission s programs and projects as illustrated in Chart 2. Chart 2 Sources: Major Categories Other Revenue 0% Debt Proceeds 66% Measure A Sales Tax 7% LTF Sales Tax 3% Operating Transfers In 17% STA Sales Tax 1% Intergovernmental 5% TUMF Revenue 0% Investment Income 1%

6 6 The State Board of Equalization (SBOE) recently provided to cities and other agencies its projections that statewide taxable sales over the next fiscal year will increase 4%. However, given the tenuous local economy, the Commission is not basing its estimate of revenues on the SBOE s projection and will continue its conservative projection practices. After taking the state of the local economy and recent revenue trends into consideration, staff has projected that Measure A sales tax revenues will be unchanged from the FY 2011/12 revised projection of $124,000,000. At midyear the Commission will reassess sales tax revenue projections based on the economy and revenue trends. On behalf of the County, the Commission administers the LTF for public transportation needs, local streets and roads, and bicycle and pedestrian facilities. The majority of LTF funding received by the County and available for allocation is distributed to all public transit operators in the County, and the Commission receives allocations for administration, planning, and programming in addition to funding for rail operations included in the commuter rail Short Range Transit Plan (SRTP). The LTF sales tax revenue received from the State is budgeted at $61,000,000, unchanged from the FY 2011/12 revised projection due to the economic concerns discussed earlier. STA funds generated from the statewide sales tax on motor vehicle fuel are allocated by formula by the State Controller to the Commission for allocations to the County s public transit operators; however, these funds have been subject to suspension in past years due to the State s budget issues. The STA transit allocation, which is based on recent State estimates, for FY 2012/13 is $14,212,500. Intergovernmental revenues include reimbursement revenues from federal sources of $57,619,900, state sources of $37,168,000, and local agencies of $2,688,700 for highway and rail capital, rail operations and station maintenance, commuter assistance, and motorist assistance programs as well as planning and programming activities. Reimbursement revenues vary from year to year depending on project activities and funding levels. As a result of an amended Memorandum of Understanding (MOU) with the Western Riverside Council of Governments (WRCOG), the Commission will receive 48.7% of TUMF revenues (as updated by the most recent Nexus study). TUMF represents fees assessed on new residential and commercial development in Western County. FY 2012/13 TUMF fees are expected to remain flat at $4,000,000 based on the weakened housing market in the Inland Empire, and additional TUMF zone reimbursements of $1,257,300 are expected for the 74/215 interchange project. Other revenue of $882,800 is projected to increase 49% from the prior year s budget of $592,400 primarily because of property management revenues generated from properties acquired in connection with the SR 91 corridor improvements project. Investment income is anticipated to remain flat in FY 2012/13 as a result of low investment yields. Staff continues to actively manage its resources and make appropriate investments to maximize the return to the Commission without sacrificing security and affecting short term cash requirements. Transfers in of $326,313,700 relate primarily to the transfer of available debt proceeds for highway and regional arterial projects; LTF funding for general administration, planning and programming, rail operations and station maintenance, and grade separation project allocations; approved interfund allocations for specific projects; and debt service requirements from highway, regional arterial, and local streets and roads projects. Debt proceeds consist of the issuance of $100,000,000 in commercial paper notes and $1,140,172,000 in sales tax and toll revenue bonds as well as TIFIA loan proceeds related to the SR 91 corridor improvement project. Total uses (Table 2), including transfers out of $326,313,700, are budgeted at $952,167,600, an increase of 55% from the prior year budget amount of $615,387,900. Program expenditures and transfers out totaling $796,369,800 represent 84% of total budgeted uses in FY 2012/13. Program costs have increased by 37% from $581,943,400 in FY 2011/12.

7 7 Table 2 Uses FY Capital Highway, Rail, and Regional Arterials $ 300,680,000 $ 395,337,600 $ 297,581,700 $ 627,840,800 $ 232,503,200 59% Capital Local Streets and Roads 36,857,000 36,025,000 36,934,600 36,893, ,000 2% Commuter Assistance 2,831,900 9,386,400 4,391,400 4,190,300 (5,196,100) 55% Debt Service 123,364,100 20,195,000 62,964, ,413, ,218, % Management Services 8,394,000 13,249,500 17,544,100 12,384,800 (864,700) 7% Motorist Assistance 4,761,900 6,377,600 6,400,900 6,169,500 (208,100) 3% Planning and Programming 4,564,600 7,459,500 4,065,300 4,527,900 (2,931,600) 39% Public and Specialized Transit 64,024, ,858,700 77,623, ,162,500 (3,696,200) 3% Rail Maintenance and Operations 12,865,700 21,498,600 21,012,900 14,585,800 (6,912,800) 32% TOTAL Uses $ 558,343,600 $ 615,387,900 $ 528,518,100 $ 952,167,600 $ 336,779,700 55% Note: Management Services includes Executive Management, Administration, Legislative Affairs and Communications, and Finance. Capital highway, rail, and regional arterials budgeted uses of $627,840,800 are 59% higher compared to FY 2011/12 due to commencement of construction of the Perris Valley Line and significant right of way activities related to the SR 91 corridor improvement project in addition to transfers out of debt proceeds from capital projects funds to finance 2009 Measure A Western County highway project costs. Debt Service of $143,413,000 has increased 610% as a result of the retirement of $120 million of outstanding commercial paper notes from sales tax revenue bond proceeds issued in connection with the SR 91 corridor improvement project financing. Commuter Assistance budgeted expenditures of $4,190,300 are 55% lower than FY 2011/12 due to a $5,000,000 transfer in FY 2011/12 to the Perris Valley Line projects to offset the multimodal benefits of the projects. Planning and Programming budgeted expenditures of $4,527,900 reflect a 39% decrease from the FY 2011/12 budget of $7,459,500 as a result of a decrease in jump start funding disbursements for grade separation projects. The $6,912,800 decrease in Rail Department budgeted expenditures of $14,585,800 is primarily due to capital funding for new Southern California Regional Rail Authority (SCRRA or Metrolink) rail cars in FY 2011/12. Total uses included in the FY 2012/13 budget by major categories are illustrated in Chart 3. Chart 3 Uses: Major Categories Planning and Programming 0% Motorist Assistance 1% Management Services 1% Public and Specialized Transit Rail Maintenance and 11% Operations 2% Debt Service 15% Commuter Assistance 0% Capital Local Streets and Roads 4% Capital Highway, Rail, and Regional Arterials 66%

8 8 Commission Personnel The Commission s salary and fringe benefits total $6,777,300 for FY 2012/13. This represents a slight increase of 3% or $200,400 over the FY 2011/12 budget of $6,576,900 (Chart 4). The increase relates to a set aside pool of 3% for cost of living adjustments and 3% for merit based salary increases. The Commission had not provided a meritbased salary increase since FY2007/08. Chart 4 Salary and Benefits Costs: Five Year Comparison $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 The Full Time Equivalent (FTE) of 41.0 FTE positions is comparable to the FY 2011/12 level (Table 3). Management continues to be firmly committed to the intent of the Commission s enabling legislation that called for a small staff. Staff will continue to be provided the tools needed, including state of the art technology, to ensure an efficient and productive work environment. However, it must be recognized that small is not viewed in an absolute context; it is relative to the required tasks to be performed and the demands to be met. Table 3 Staff Summary by Department FY FY 10/11 FY 11/12 FY 12/13 Executive Management Administration Legislative Affairs and Communications Finance Planning and Programming Rail Maintenance and Operations Public and Specialized Transit Commuter Assistance Motorist Assistance Capital Project Development and Delivery TOTAL

9 9 The Commission provides a comprehensive package of benefits to all permanent, salaried employees. The package includes: health, dental, vision, and life insurance, short and long term disability, workers compensation, tuition assistance, sick and vacation leave, retirement benefits in the form of participation in California Public Employees Retirement System (CalPERS), postretirement health care, deferred compensation, and employee assistance program. The compensation components are shown in Chart 5. Chart 5 Personnel Salary and Benefits Other Fringes 1% Health 18% Retirement 20% Salary 61% Department Initiatives The preparation of each department s budget was based on key assumptions, accomplishments in FY 2011/12, major initiatives for FY 2012/13, and department goals and related objectives. Following are the key initiatives and summary of expenditures for each department (Tables 4 through 13). Executive Management Continue project development and delivery as the key Measure A priority. Ensure the SR 91 corridor improvement project environmental review will be completed along with advance right of way, solicitation of a design build team, and a federal loan from the TIFIA program. Obtain approvals from the FTA, railroads, and community related to the development of the Perris Valley Line. Advocate for state investments in transportation and approval of a federal transportation bill to fund needed transportation priorities in Riverside County and stimulate the local economy. Maintain regional cooperation and collaboration as a significant effort consistent with the philosophy and mission of the Commission. Enhance external communications with media, business and civic groups, and the community. Maintain an effective mid sized transportation agency with a small and dedicated staff. Table 4 Executive Management Personnel $ 128,000 $ 83,600 $ 61,600 $ 120,700 $ 37,100 44% Professional 459, ,000 70, ,000 3,000 3% Support 38,900 58,700 54,100 57,600 (1,100) 2% TOTAL $ 626,200 $ 244,300 $ 185,700 $ 283,300 $ 39,000 16%

10 10 Administration Provide high quality support services to the Commission and to internal and external customers. Continue to strengthen the electronic records management system. Continue to provide timely communications to Commissioners with continued emphasis on the utilization of electronic mail. Continue to update technology to streamline processes and provide easier access to Commission records. Support and develop a motivated workforce with a framework of activities and practices that comply with employment laws and regulations. Table 5 Administration Personnel $ 400,700 $ 412,400 $ 372,400 $ 460,600 $ 48,200 12% Professional 97, , , ,500 (17,500) 13% Support 558, , , ,600 (30,200) 5% Capital Outlay 29,000 20,000 5, , , % Debt Service 25,300 N/A TOTAL $ 1,110,400 $ 1,235,200 $ 1,064,500 $ 1,340,700 $ 105,500 9% Legislative Affairs and Communications Continue efforts to protect and seek greater state and federal investment in transportation infrastructure and goods movement. Develop effective partnerships with transportation providers to communicate a unified message to Congress regarding mobility needs. Advocate positions in the State Legislature and in Congress that advance the County s transportation interests, especially those related to the implementation of the SR 91 corridor improvement project. Develop a leadership role in formulating a countywide direction on federal transportation policies. Continue to develop a broad public information program regarding the Commission s responsibilities and accomplishments through a variety of media formats and presentation opportunities. Continue to place an emphasis on providing proactive public communications support related to major project development efforts. Provide new Commissioner orientation meetings and other continuing education opportunities for Commissioners. Table 6 Legislative Affairs and Communications Personnel $ 321,300 $ 437,100 $ 367,500 $ 395,400 $ (41,700) 10% Professional 385, , , ,500 (101,000) 15% Support 145, , , ,100 15,700 9% TOTAL $ 851,600 $ 1,297,000 $ 958,100 $ 1,170,000 $ (127,000) 10% Finance Continue appropriate uses of long and short term financing to advance 2009 Measure A projects of the Commission and the Coachella Valley Association of Governments (CVAG). Apply the sales tax revenue forecast update to develop a financing plan to support the Western Riverside County Delivery Plan and CVAG highway and regional arterial projects. Continue to support the financing efforts for the SR 91 corridor improvement project.

11 11 Annually update the internal audit projects related to the organizational accountability program. Continue to keep abreast of Governmental Accounting Standards Board (GASB) technical activities affecting the Commission s accounting and financial reporting activities and consider early implementation of new pronouncements. Continue to strengthen the enterprise resource planning (ERP) system to benefit all staff in the management of accounting and project information and automation of a paperless workflow system. Continue to implement a centralized procurements process in order to strengthen controls and ensure consistency in the application of procurement policies and procedures and adherence to applicable laws and regulations. Table 7 Finance Personnel $ 778,200 $ 818,500 $ 659,300 $ 829,300 $ 10,800 1% Professional 4,483,500 3,956,000 4,096,800 3,160,500 (795,500) 20% Support 544, , , ,000 32,000 6% Capital Outlay 24, ,500 4,000 (129,500) 100% Transfers Out 5,000,000 10,000,000 5,000,000 0% TOTAL $ 5,831,100 $ 10,473,000 $ 15,335,800 $ 9,590,800 $ (882,200) 8% Planning and Programming Monitor funding authority and responsibility related to the State Transportation Improvement Program (STIP) and impacts on the STIP caused by the state budget issues. Ensure STIP and Proposition 1B funded projects are administered and implemented consistent with California Transportation Commission (CTC) and California Department of Transportation (Caltrans) policies. Continue to strategically program projects and obligate funds in an expeditious manner for the maximum use of all available funding, including monitoring the use of such funding to prevent funds from lapsing. Focus on interregional concerns and maintain effective working relationships involving various bi county transportation issues, including goods movement. Coordinate planning efforts with regional and local agencies relating to the development of regional transportation plans (RTP) and green house gas reduction implementation guidelines. Secure funding through the federal transportation bill for goods movement related needs. Monitor and track the TUMF regional arterial projects. Work cooperatively with member agencies to continue the work efforts on the new Community Environmental Transportation Acceptability Process (CETAP) corridors. Continue the Congestion Management Program (CMP) update and traffic monitoring along urban and rural highway systems. Administer the SB821 Bicycle and Pedestrian Facilities Program. Monitor the Port of Los Angeles and Port of Long Beach s (Ports) projects for impacts on Riverside County.

12 12 Table 8 Planning and Programming Personnel $ 817,600 $ 833,000 $ 788,600 $ 846,000 $ 13,000 2% Professional 102, , , ,800 11,800 3% Support 9,800 18,800 18,400 19, % Projects and Operations 3,634,700 6,247,500 3,050,600 3,299,700 (2,947,800) 47% Transfers Out 9,200 (9,200) 100% TOTAL $ 4,564,600 $ 7,459,500 $ 4,065,300 $ 4,527,900 $ (2,931,600) 39% Rail Maintenance and Operations Continue active participation in governance and operations of the Metrolink commuter rail system. Continue the planning and implementation of capital improvements at the commuter rail stations in Riverside County, including the Perris Valley Line, security and rehabilitation projects, and parking requirements. Continue to support activities related to the Perris Valley Line project and evaluate its operational impact. Establish best approach to build, maintain, and operate cost effective and environmentally sustainable facilities that meet the public s transportation needs. Continue coordination with CVAG, Amtrak and the State to focus attention on the creation of intercity passenger rail service between Coachella Valley, Riverside, and the Los Angeles basin. Table 9 Rail Maintenance and Operations Personnel $ 491,500 $ 494,300 $ 429,300 $ 493,100 $ (1,200) 0% Professional 128, , , , ,000 33% Support 1,209,200 1,640,700 1,640,000 1,811, ,500 10% Projects and Operations 11,021,600 18,985,900 18,740,800 11,794,800 (7,191,100) 38% Capital Outlay 15,300 60,700 24,700 65,700 5,000 8% TOTAL $ 12,865,700 $ 21,498,600 $ 21,012,900 $ 14,585,800 $ (6,912,800) 32% Public and Specialized Transit Support innovative programs that provide transit assistance in hard to serve rural areas or for riders having very special transit needs and monitor funding of these programs. Implement the specialized transit funding allocations related to the second universal call for projects and monitor performance. Continue long range planning activities to ensure that anticipated revenues are in line with projected levels of service by transit operators. Monitor public and specialized transit operators performance through the TransTrack program. Provide availability for local matching funds to Western County applicants seeking FTA Section 5310 federal capital grants. Coordinate with operators on major capital purchases and investments into new rolling stock and other system improvements in order to maintain a viable on hand reserve.

13 13 Table 10 Public and Specialized Transit Personnel $ 320,900 $ 361,900 $ 338,400 $ 326,500 $ (35,400) 10% Professional 129, , , , ,200 56% Support 11,400 23,800 10,400 18,900 (4,900) 21% Projects and Operations 46,288,000 86,469,800 61,131,900 82,698,300 (3,771,500) 4% Transfers Out 17,274,500 18,815,900 15,983,500 18,827,300 11,400 0% TOTAL $ 64,024,400 $ 105,858,700 $ 77,623,200 $ 102,162,500 $ (3,696,200) 3% Commuter Assistance Improve the suite of services and outreach to rideshare participants and employer partners, including personalized information and electronic access and distribution. Maintain and grow employer partnerships through value added services and tools for ridesharing programs. Maintain and operate a four county ridematching database system with partner agencies. Maintain long term partnership with San Bernardino Associated Governments (SANBAG) to manage and implement a sister Commuter Assistance program for residents and employers in San Bernardino County. Optimize park and ride facilities to support car/vanpool arrangements and facilitate transit connections. Table 11 Commuter Assistance Personnel $ 197,600 $ 228,900 $ 264,800 $ 219,100 $ (9,800) 4% Professional 230, , , ,300 (164,800) 20% Support 309, , , ,200 25,800 5% Projects and Operations 2,079,000 2,559,000 2,668,000 2,633,400 74,400 3% Capital Outlay 15, , ,000 17,000 (113,000) 87% Transfers Out 5,160, , ,300 (5,008,700) 97% TOTAL $ 2,831,900 $ 9,386,400 $ 4,391,400 $ 4,190,300 $ (5,196,100) 55% Motorist Assistance Assess opportunities for efficiency related to the call box program operations. Maintain a high benefit to cost ratio related to the performance of the FSP program. Operate and maintain the IE511 system in accordance with national 511 implementation standards in partnership with SANBAG. Enhance the IE511 with more personalized traffic information services. Table 12 Motorist Assistance Personnel $ 103,800 $ 112,200 $ 196,900 $ 176,100 $ 63,900 57% Professional 649,500 1,008, , ,500 (291,200) 29% Support 435, , , , ,300 46% Projects and Operations 2,341,800 3,543,100 3,585,800 3,080,000 (463,100) 13% Transfers Out 1,231,200 1,114,300 1,114,300 1,321, ,000 19% TOTAL $ 4,761,900 $ 6,377,600 $ 6,400,900 $ 6,169,500 $ (208,100) 3%

14 14 Capital Project Development and Delivery Continue project development, right of way, and construction activities on remaining 1989 Measure A projects including SR 74 curve widening, 74/215 interchange, SR 91 high occupancy vehicle (HOV) lanes/adams Street to 60/91/215 interchange, and 60/215 East Junction HOV lane connectors. Continue project activities on the I 215 bi county highway and Perris Valley Line rail projects, which were included in both the 1989 Measure A and 2009 Measure A programs. Continue project work on the Western Riverside County Delivery Plan projects, including the 91/71 connectors; the SR 91, I 15, and I 215 corridor mobility improvement projects; SR 79 realignment; and Mid County Parkway. Provide Western County TUMF funding and support to local jurisdictions for regional arterial project engineering, right of way acquisition, and construction. Provide advance funding and support of 2009 Measure A highway and regional arterial projects and for the acquisition for land as mitigation in the Coachella Valley. Develop strategies to implement alternative financing structures including public toll roads. Maintain a right of way acquisition and management program in support of capital projects. Manage right of way acquisition schedules and budget control measures. Maintain and manage the access, use, safety, and security of Commission owned properties including commuter rail stations, properties in acquisition process, and income generating properties. Table 13 Capital Project Development and Delivery Personnel $ 2,308,900 $ 2,795,000 $ 3,026,500 $ 2,910,500 $ 115,500 4% Professional 5,450,000 9,601,500 6,202,200 7,490,600 (2,110,900) 22% Support 309, , , ,000 (226,000) 28% Projects and Operations 162,557, ,337, ,625, ,506,900 74,169,500 27% Capital Outlay 62, , , ,000 49,000 28% Debt Service 123,338,800 20,195,000 62,964, ,413, ,218, % Transfers Out 166,849, ,639, ,025, ,013, ,374, % TOTAL $ 460,875,800 $ 451,557,600 $ 397,480,300 $ 808,146,800 $ 356,589,200 79% Fund Balances The total fund balance as of June 30, 2012 is projected at $546,924,700. The Commission s budgeted activities for FY 2012/13 are expected to result in a $924,469,000 increase of total fund balance at June 30, 2013 to $1,471,393,700. The primary cause of the increase is related to the completion of financing activities for the SR 91 corridor improvement project near the end of FY 2012/13. Table 14 presents the components of fund balance by governmental fund type and program at June 30, 2013.

15 15 Table 14 Projected Fund Balances by Governmental Fund Type and Program at June 30, 2013 Riverside County Transportation Commission $1,471,393,700 General Fund $13,008,300 Special Revenue Funds $407,752,200 Capital Projects Funds $1,045,926,700 Debt Service Fund $4,706,500 Management Services $6,431,700 Measure A Western County: Highways $1,045,926,700 Planning and Programming 1,632,200 Bond Financing $2,002,000 Rail Maintenance and Operations 4,944,400 Commuter Assistance 12,778,100 Budget Summary Economic Development 3,463,400 Highways 118,768,800 Local Streets and Roads 1,300 New Corridors 39,932,900 Public and Specialized Transit 8,394,200 Rail 64,611,900 Regional Arterials 32,297,900 Measure A Coachella Valley: Highways and Regional Arterial 1,500 Local Streets and Roads 1,600 Specialized Transit 842,500 Measure A Palo Verde Valley Local Streets and Roads 500 Motorist Assistance 4,629,300 State Transit Assistance 42,627,600 Local Transportation Fund 61,603,200 TUMF: CETAP 15,081,800 Regional Arterials 713,700 The overall budget for FY 2012/13 is presented in Table 15 by summarized line items, Table 16 by operating and capital classifications, and Table 17 by governmental fund type. Highway, rail, and regional arterial program expenditures by project are summarized in Table 18.

16 BLANK

17 16 Table 15 Budget Comparative by Summarized Line Item FY Revenues Measure A Sales Tax $ 123,439,800 $ 124,000,000 $ 124,000,000 $ 124,000,000 $ 0% LTF Sales Tax 60,772,800 61,000,000 61,000,000 61,000,000 0% STA Sales Tax 9,537,000 14,073,600 14,212,500 4,675,500 49% Federal Reimbursements 17,735,600 23,650,700 24,349,500 57,619,900 33,969, % State Reimbursements 17,811,800 23,935,100 23,200,200 37,168,000 13,232,900 55% Local Reimbursements 5,021,600 1,081,800 2,932,200 2,688,700 1,606, % TUMF Revenue 9,157,900 6,784,300 6,397,400 5,257,300 (1,527,000) 23% Other Revenue 2,321, , , , ,400 49% Investment Income 4,524,200 1,824,000 3,391,100 7,321,700 5,497, % TOTAL Revenues 240,785, ,405, ,794, ,150,900 57,745,600 23% Expenditures Personnel Salary and Benefits 5,868,500 6,576,900 6,505,300 6,777, ,400 3% Professional and Support Professional Services 12,115,400 17,149,100 13,014,800 13,891,200 (3,257,900) 19% Support Costs 3,571,400 5,068,900 4,607,000 5,326, ,700 5% TOTAL Professional and Support Costs 15,686,800 22,218,000 17,621,800 19,217,800 (3,000,200) 14% Projects and Operations Program Operations General 10,554,500 16,827,000 14,057,700 16,605,700 (221,300) 1% Engineering 27,545,300 41,568,800 27,796,100 24,312,600 (17,256,200) 42% Construction 24,414,800 59,777,600 31,472, ,586,900 62,809, % Design Build 16,272,900 29,438,000 11,000,000 29,050,000 (388,000) 1% Right of Way/Land 44,663,000 85,927,000 54,535, ,476,500 23,549,500 27% Operating and Capital Disbursements 58,516, ,547,300 81,317,500 95,888,000 (13,659,300) 12% Special Studies 459, , , ,000 30,000 4% Local Streets and Roads 36,857,000 36,025,000 36,934,600 36,893, ,000 2% Regional Arterials 8,638,600 16,262,000 17,409,200 20,400,400 4,138,400 25% TOTAL Projects and Operations 227,922, ,142, ,802, ,013,100 59,870,400 15% Debt Service Principal Payments 109,607,200 6,500,000 46,500, ,800, ,300, % Interest Payments 11,296,300 13,695,000 16,464,000 16,613,000 2,918,000 21% Cost of Issuance 1,493,100 N/A TOTAL Debt Service 122,396,600 20,195,000 62,964, ,413, ,218, % Capital Outlay 147, , , ,700 (83,500) 16% TOTAL Expenditures 372,021, ,648, ,234, ,853, ,205,100 40% Excess (deficiency) of Revenues over (under) Expenditures (131,235,800) (193,243,500) (102,439,900) (315,703,000) (122,459,500) 63% Other Financing Sources (Uses) Transfers In 185,354, ,739, ,283, ,313, ,574,600 92% Transfers Out (185,354,800) (169,739,100) (166,283,400) (326,313,700) (156,574,600) 92% Debt Proceeds 170,000,000 38,000,000 60,000,000 1,240,172,000 1,202,172, % Payment to Refund Bond Escrow Agent N/A Bond Discount (967,500) N/A Net Financing Sources (Uses) 169,032,500 38,000,000 60,000,000 1,240,172,000 1,202,172, % Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) 37,796,700 (155,243,500) (42,439,900) 924,469,000 1,079,712, % Beginning Fund Balance 551,567, ,364, ,364, ,924,700 (42,439,900) 7% ENDING FUND BALANCE $ 589,364,600 $ 434,121,100 $ 546,924,700 $ 1,471,393,700 $ 1,037,272, %

18 17 Table 16 Operating and Capital Budget FY 2012/13 FY 12/13 FY 12/13 FY 12/13 Operating Budget Capital Budget TOTAL Budget Revenues Measure A Sales Tax $ 12,059,000 $ 111,941,000 $ 124,000,000 LTF Sales Tax 61,000,000 61,000,000 STA Sales Tax 14,212,500 14,212,500 Federal Reimbursements 911,800 56,708,100 57,619,900 State Reimbursements 4,460,000 32,708,000 37,168,000 Local Reimbursements 2,167, ,400 2,688,700 TUMF Revenue 5,257,300 5,257,300 Other Revenue 882, ,800 Investment Income 717,300 6,604,400 7,321,700 TOTAL Revenues 95,527, ,623, ,150,900 Expenditures Personnel Salary and Benefits 3,856,000 2,921,300 6,777,300 Professional and Support Professional Services 4,046,600 9,844,600 13,891,200 Support Costs 4,739, ,000 5,326,600 TOTAL Professional and Support Costs 8,786,200 10,431,600 19,217,800 Projects and Operations Program Operations General 7,048,200 9,557,500 16,605,700 Engineering 24,312,600 24,312,600 Construction 60, ,526, ,586,900 Design Build 29,050,000 29,050,000 Right of Way and Land 109,476, ,476,500 Operating and Capital Disbursements 95,638, ,000 95,888,000 Special Studies 760,000 40, ,000 Local Streets and Roads 36,893,000 36,893,000 Regional Arterials 20,400,400 20,400,400 TOTAL Projects and Operations 103,506, ,506, ,013,100 Debt Service Principal Payments 126,800, ,800,000 Interest Payments 16,613,000 16,613,000 Cost of Issuance TOTAL Debt Service 143,413, ,413,000 Capital Outlay 207, , ,700 TOTAL Expenditures 116,356, ,497, ,853,900 Excess (deficiency) of Revenues over (under) Expenditures (20,828,200) (294,874,800) (315,703,000) Other Financing Sources (Uses) Transfers In 20,202, ,111, ,313,700 Transfers Out (20,299,900) (306,013,800) (326,313,700) Debt Proceeds 1,240,172,000 1,240,172,000 Net Financing Sources (Uses) (97,500) 1,240,269,500 1,240,172,000 Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (20,925,700) 945,394, ,469,000 Beginning Fund Balance 164,808, ,116, ,924,700 ENDING FUND BALANCE $ 143,883,000 $ 1,327,510,700 $ 1,471,393,700

19 18 Table 17 Budget by Governmental Fund Type FY 2012/13 FY 12/13 General Fund Special Revenue Capital Projects Debt Service TOTAL Budget Revenues Measure A Sales Tax $ 2,700,000 $ 121,300,000 $ $ $ 124,000,000 LTF Sales Tax 61,000,000 61,000,000 STA Sales Tax 14,212,500 14,212,500 Federal Reimbursements 20,000 54,617,900 2,982,000 57,619,900 State Reimbursements 910,000 36,258,000 37,168,000 Local Reimbursements 225,200 2,463,500 2,688,700 TUMF Revenue 5,257,300 5,257,300 Other Revenue 882, ,800 Investment Income 66,200 2,028,500 5,203,600 23,400 7,321,700 TOTAL Revenues 3,921, ,020,500 5,203,600 3,005, ,150,900 Expenditures Personnel Salary and Benefits 3,359,100 3,418,200 6,777,300 Professional and Support Professional Services 2,577,300 11,313,900 13,891,200 Support Costs 3,328,800 1,997,800 5,326,600 TOTAL Professional and Support Costs 5,906,100 13,311,700 19,217,800 Projects and Operations Program Operations General 1,394,800 15,210,900 16,605,700 Engineering 23,993, ,100 24,312,600 Construction 122,586, ,586,900 Design Build 29,050,000 29,050,000 Right of Way/Land 106,452,400 3,024, ,476,500 Operating and Capital Disbursements 12,939,700 82,948,300 95,888,000 Special Studies 760,000 40, ,000 Local Streets and Roads 36,893,000 36,893,000 Regional Arterials 20,400,400 20,400,400 TOTAL Projects and Operations 15,094, ,575,400 3,343, ,013,100 Debt Service Principal Payments 120,000,000 6,800, ,800,000 Interest Payments 433,000 16,180,000 16,613,000 Cost of Issuance TOTAL Debt Service 120,433,000 22,980, ,413,000 Capital Outlay 190, , ,700 TOTAL Expenditures 24,550, ,547, ,776,200 22,980, ,853,900 Excess (deficiency) of Revenues over (under) Expenditures (20,629,000) (156,526,800) (118,572,600) (19,974,600) (315,703,000) Other Financing Sources (Uses) Transfers In 19,165, ,592, ,889,600 19,665, ,313,700 Transfers Out (72,518,900) (253,144,800) (650,000) (326,313,700) Debt Proceeds 1,240,172,000 1,240,172,000 Net Financing Sources (Uses) 19,165,400 78,074,000 1,123,916,800 19,015,800 1,240,172,000 Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (1,463,600) (78,452,800) 1,005,344,200 (958,800) 924,469,000 Beginning Fund Balance 14,471, ,205,000 40,582,500 5,665, ,924,700 ENDING FUND BALANCE $ 13,008,300 $ 407,752,200 $ 1,045,926,700 $ 4,706,500 $ 1,471,393,700

20 19 Table 18 Highway, Regional Arterial, and Rail Programs FY 2012/13 Description Projects and Operations Bechtel Program Management $ 5,882,700 SCRRA Program Management 2,608,000 TOTAL PROJECTS GENERAL $ 8,490,700 Highway Engineering SR 60 Truck Climbing Lanes $ 3,000,000 91/71 Connectors 4,000,000 I 15 Corridor Improvements 8,000,000 I 215 Corridor Improvement (Central Segment)/Scott Road to Nuevo Road 1,000,000 I 215 Southbound to I 15 Connector Widening Gap Closure 750,000 Mid County Parkway 2,000,000 SR 91 Corridor Improvements 2,000,000 SR 91 HOV Lanes/Adams Street to 60/91/215 Interchange 150,000 General 419,100 SUBTOTAL HIGHWAY ENGINEERING 21,319,100 Regional Arterial Engineering Various Western County TUMF Regional Arterial Projects, including SR 79 realignment 1,952,000 SUBTOTAL REGIONAL ARTERIAL ENGINEERING 1,952,000 Rail Engineering Perris Valley Line and Other Related Projects 1,041,500 SUBTOTAL RAIL ENGINEERING 1,041,500 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING $ 24,312,600 Highway Construction 60/215 East Junction HOV Lanes Connector $ 30,000 74/215 Interchange 1,820,000 I 215 Corridor Improvements (South Segment)/I 15 to Scott Road 14,780,000 I 215 at Blaine Street 1,750,000 I 15 Los Alamos Road Bridge Replacement 2,000,000 SR 74 Curve Widening 2,500,000 SR 91 Corridor Improvements 4,000,000 SR 91/La Sierra Interchange 110,600 SR 91/Van Buren Interchange 3,184,300 General (details presented in Section 6.3 Motorist Assistance) 60,000 SUBTOTAL HIGHWAY CONSTRUCTION 30,234,900 Regional Arterial Construction Various Western County TUMF Regional Arterial Projects 27,246,000 SUBTOTAL REGIONAL ARTERIAL CONSTRUCTION 27,246,000 Rail Construction Perris Valley Line and Other Related Projects 65,106,000 SUBTOTAL RAIL CONSTRUCTION 65,106,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION $ 122,586,900 Highway Design Build SR 91 Corridor Improvements $ 29,050,000 TOTAL HIGHWAY DESIGN BUILD $ 29,050,000 Highway Right of Way and Land 74/215 Interchange $ 550,000 60/215 East Junction HOV Lanes Connector 265,000 I 215 Corridor Improvement (Central Segment)/Scott Road to Nuevo Road 1,303,000 Mid County Parkway 20,000 SR 74 Curve Widening 310,000 SR 74/I 15 to 7th Street 38,200 91/71 Connectors 1,250,000 SR 91 Corridor Improvements 60,400,000 SR 91 HOV Lanes/Adams Street to 60/91/215 Interchange 14,195,000 Coachella Valley MSHCP 3,024,100 SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND 81,355,300 Regional Arterial Right of Way and Land Various Western County TUMF Regional Arterial Projects 10,488,700 SUBTOTAL REGIONAL ARTERIAL RIGHT OF WAY AND LAND 10,488,700 Rail Right of Way and Land Perris Valley Line and Other Related Projects 17,632,500 SUBTOTAL RAIL RIGHT OF WAY AND LAND 17,632,500 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL RIGHT OF WAY AND LAND $ 109,476,500 GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL PROGRAMS $ 293,916,700