budget 60/215 FY 2013/14 74/215 East Junction SR-91 HOV green river local widening project I-215 South 10/Bob Hope-Ramon

Transcription

1 FY 2013/14 budget 74/215 Interchange 10/Palm- Gene Autry I-215 Central 91/La Sierra Interchange I-215 South 10/Monterey 60/91/215 Interchange 91/Van Buren Interchange 10/Bob Hope-Ramon 60/215 East Junction 10/Jefferson green river local widening project Highway 111 Indian Wells 111/Washington SR-91 HOV 10/Indian Canyon I-215 Bi-County HOV Perris Valley Line SR-91 Corridor Improvement Project 10/dAte Palm Magnolia Avenue Grade Separation SR-91 HOV Project Riverside County Transportation Commission Riverside County, California

2

3 June 12, 2013 Honorable Commissioners Riverside County Transportation Commission Riverside, California FY 2013/14 Budget Introduction The Future is Here Thank you for your interest in the Fiscal Year (FY) 2013/14 budget for the Riverside County Transportation Commission (Commission or RCTC). This document provides an opportunity to evaluate and review the financial backbone of an innovative and successful public transportation agency. The upcoming fiscal year will be one of unprecedented investment and construction in Riverside County s transportation infrastructure an investment that will undoubtedly improve the area s mobility and economic standing for decades to come. Once again, RCTC is presenting its largest and most comprehensive budget in its 36-year history which includes the beginning of construction for the $1.3 billion State Route (SR)-91 Corridor Improvement Project. This major project reveals the agency s comprehensive approach to mobility with investments in highway capacity, toll road development, rail transit, and express bus service that links all of it together. In addition to building its own projects, RCTC has been a conduit for financing a number of local projects as well. In just four years inclusive of 2011 through 2014, more than $4 billion in construction spending will be devoted to transportation projects constructed by RCTC, the County of Riverside (County), local cities, or the California Department of Transportation (Caltrans). The obvious reason for this commitment is to invest in a better transportation system resulting in better mobility, but we are also investing in Riverside County s future. It s a future that should include more local jobs, new businesses being formed, employers moving to the area, and making it easier to access numerous locales that will appeal to visitors throughout the world. People Working Building a Better Future The Commission and its project partners at Caltrans, local jurisdictions, and transit agencies are investing in transportation using a variety of local, state, and federal sources to build projects, plan and design new improvements, and get people working and contributing to the local economy. The results of the work are coming to fruition with improvements completed on the southern portion of Interstate (I)-215, the 74/215 interchange, I-10 interchanges in the Coachella Valley, and work speeding ahead on SR-91 in Riverside and the 60/215 interchange on the Riverside/Moreno Valley border. During FY 2013/14, the Commission will invest $751 million in capital projects that include highway, regional arterial, and rail projects. The Commission s overall budget will exceed $1 billion and includes funding of transit operations, payments to cities and the County for street and road improvements, and management of smaller programs such as motorist and commuter assistance. The Commission s status has become somewhat unique in Southern California. As many transportation agencies have consolidated functions and grown in size, the Commission remains true to the original intent of the state of California (State) legislation that first created it now operating with a staff of 46 budgeted positions. This maintains the original vision of the Legislature when it created the Commission in By doing so, the Commission remains effective in its role as a transportation planning and funding agency by maintaining productive relationships with other agencies. For example, Measure A funds local transportation priorities and needs. In FY 2013/14, the Commission will return $44 million in funding to local cities and the County for local streets and roads needs. The Commission also receives and programs funding from state and federal sources. This includes the State s Transportation Development Act program dollars that are allocated primarily to the County s major public transit providers. Measure A also pays its share by funding transit fare discounts and programs for senior citizens, persons with disabilities, and individuals of limited means and by operating a commuter assistance program that provides traveler information and ridesharing assistance to employers and commuters. Riverside County Transportation Commission 1

4 The SR-91 Corridor Improvement Project in Corona: Full Speed Ahead In May 2013, the Commission approved a $632.6 million design-build contract to widen SR-91 through Corona. The project will add two tolled express lanes and a general purpose in each direction of SR-91 between the Orange County line and I-15. Additional project improvements will include enhanced transit service along the corridor, a collector-distributor lane system near the I-15 and Main Street, and better connections between SR-91 and I-15 including a direct connector to the 91 Express Lanes from the northbound I-15. The $1.3 billion project, which breaks ground in 2013, is expected to generate 16,000 new jobs and will be the largest ever funded by the Commission. This year s budget also reflects an ongoing investment in project development work which includes the acquisition of needed right of way. The eventual completion of the project will culminate in a transformation of Riverside County s transportation system with reduced congestion, toll lane options, and enhanced transit service. The overall economic effect for the County will be significant and will aid economic development opportunities throughout the region. Perris Valley Line Project: A Needed Regional Priority Yet another regionally significant project is the Perris Valley Line Metrolink extension which awaits environmental and legal approvals and is scheduled to break ground during the upcoming fiscal year. The project will extend Metrolink from Downtown Riverside to South Perris, enabling Metrolink to serve additional Riverside County residents and employers. It will also establish a much stronger transit backbone that will complement existing and future bus service, pedestrian and active transportation improvements, and economic development efforts. Major Corridors Seeing Major Investment I-215: Construction crews completed a new lane in each direction along a six-mile stretch of the southern segment of I-215 a project which is being funded through Measure A and state bond funding. This is now being followed by a similar project along a 12.5-mile portion of the central segment of I-215. At the northern edge of the I-215 and SR-60, the East Junction HOV lanes connector project is underway. The Commission completed the project development for this effort, and Caltrans is responsible for the construction activities. Additionally, constructing has begun to add a new carpool lane in each direction from the 60/91/215 interchange all the way into San Bernardino County. The lead agency for this bi-county project is the San Bernardino Associated Governments. I-10: Construction has been completed on rebuilt and expanded freeway interchanges at Palm Drive, Indian Canyon Drive, Bob Hope Drive, and Date Palm Avenue in the Coachella Valley. The completed projects were funded through a combination of federal, state, Measure A, and Transportation Uniform Mitigation Fee funding. Two additional projects on Jefferson Avenue and Monterey Avenue are currently in project development. Caltrans and the County are the lead agencies for these projects. SR-91: Construction is underway on the addition of a carpool lane along a six-mile stretch of SR-91 through downtown Riverside. The project will not only widen SR-91 through downtown Riverside but will also rebuild and improve a number of interchanges and local connections with the freeway. A Commitment to Riverside County Ensuring local funding for transportation will require ongoing outreach to the public and transparent oversight and management that ensures public confidence in the Commission s fiduciary, oversight, and visionary roles. This budget document is intended to demonstrate the Commission s commitment to the public as well as documenting the Commission s dedication to sound budget practices. This budget document is one of many ways the Commission works to ensure public accountability and full transparency of its actions. Yet another Commission priority is in customer service and is demonstrated in our investment in the IE511 Traveler Information Service and other motorist service programs such as outreach to employers for ridesharing assistance, the maintenance and establishment of freeway call boxes, and the Freeway Service Patrol program. As the Commission adds more responsibilities to become a toll facility operator, it will increase RCTC s interaction with the public which will only strengthen our commitment to communicating in an effective and proactive manner. We welcome public input and participation and invite you to visit our website at or to follow us on 2 Riverside County Transportation Commission

5 GFOA Distinguished Budget Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to RCTC for its annual budget for the fiscal year beginning July 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan, and a communications device. The award is valid for a period of one year only. The Commission believes that this budget continues to conform to program requirements, and it will be submitted to GFOA to determine the Commission s eligibility for another award. Acknowledgements The preparation of this budget has been a collaborative effort of the Commission s staff. The budget reflects the Commission s desire to communicate the components of the budget in terms that are easily understandable and supportable for the general public. Staff acknowledges and appreciates the guidance and leadership of the Board of Commissioners and the sense of renewal and commitment it has and continues to inspire. Anne Mayer, Executive Director Theresia Treviño, Chief Financial Officer Riverside County Transportation Commission 3

6 Riverside-Downtown Station 4 Riverside County Transportation Commission

7 TABLE OF CONTENTS Commission Introduction Narrative discussion of the history of the Commission and list of principal officers 7 Executive Summary 9 Introduction Narrative overview of the operational and financial factors considered 9 Budget Overview Summarized narrative overview, charts, and tables of sources and uses 10 Commission Personnel Personnel expenditures and full-time equivalents 13 Department Initiatives Major initiatives and summarized uses by department 15 Fund Balances Projected fund balances by governmental fund type and program 20 Budget Comparative Schedule of budget by summarized line item 21 Operating and Capital Budget Schedule of budget classified by operating and capital purposes 22 Budget by Governmental Fund Type Schedule of budget by governmental fund type 23 Highway, Regional Arterial, and Rail Programs Listing of budgeted capital project expenditures by program 24 Gann Appropriations Limit Narrative discussion of the appropriations limit 25 Section 1: GUIDING POLICIES 27 Commission Policy Goals and Objectives Narrative description of policy goals and objectives 27 Financial and Administration Policies Description of financial policies 31 Policy Matrix Linkage of policy goals to departmental goals and objectives 33 Section 2: Budget Process Summary 35 Budget Process Narrative description of various budget stages 35 Functional Organization Chart Organization chart by Commission functions 36 Staff Organization Chart Organization chart of budgeted staff 37 Section 3: Fund Budgets 39 Budgetary Basis and Fund Structure Narrative description of budgetary basis and fund structure 39 General Fund Overview; narrative and charts of sources and uses 40 Special Revenue Funds Overview; narrative and charts of sources and uses by Measure A 43 and non-measure A special revenue funds Capital Projects Funds Overview; narrative and charts of sources and uses 55 Debt Service Fund Overview; narrative and charts of sources and uses 57 Section 4: Revenues and Other Sources 59 Revenues and Other Sources Narrative description of various revenues and other sources; schedule of funding 59 sources by department/program; definitions and background Program Revenues and Other Sources Narratives of revenues by program 63 Section 5: Commission Debt 67 Debt Narrative discussion of debt programs 67 Debt Capacity Analysis Charts and accompanying narrative demonstrating debt capacity 69 Aggregate Debt Service Schedule Schedule of debt maturities by year for sales tax bonds 69 Outstanding Debt and Debt Service Requirements Description of outstanding debt and related debt service 70 requirements as of June 30, 2014 Program and Geographic Debt Charts of debt service by program and geographic area 73 Outstanding Legal Debt Margin Schedule of calculation of legal debt margin 74 Riverside County Transportation Commission 5

8 Section 6: Department budgets 75 Budget Comparison by Department Schedule of revenues, expenditures, and other financing sources (uses) by department : management services 77 Executive Management Goals and objectives, key assumptions and budgeted uses 77 Administration Goals and objectives, key assumptions and budgeted uses 82 Legislative Affairs and Communications Goals and objectives, key assumptions and budgeted uses 88 Finance Goals and objectives, key assumptions and budgeted uses : REGIONAL PROGRAMS 101 Planning and Programming Goals and objectives, key assumptions and budgeted uses 101 Rail Goals and objectives, key assumptions and budgeted uses 111 Public and Specialized Transit Goals and objectives, key assumptions and budgeted uses 119 Commuter Assistance Goals and objectives, key assumptions and budgeted uses 124 Motorist Assistance Goals and objectives, key assumptions and budgeted uses : CAPITAL PROJECTS 133 Capital Project Development and Delivery Goals and objectives, key assumptions and budgeted uses 133 Location of Capital Projects Local map of major capital projects for current year 141 Capital Projects Summary Narrative description of each capital project 142 Local Streets and Roads Summary Schedule of local streets and roads disbursements by local agency 149 Section 7: Community Profile 151 Riverside County Narrative discussion of Riverside County s community profile 151 Demographics Charts of various demographic data 151 Statistical Information Charts and tables of various statistical information 153 Commission Facts Narrative overview of the Commission s programs and services 155 section 8: APPENDICES 157 Glossary of Acronyms Explanation of commonly used abbreviations 157 Funding Definitions Narrative description of various funding sources 160 Program Terms Description of Commission programs and related terms 162 General Terms Commonly used terms in governmental accounting and finance 163 SR-91 Corridor Improvement Project 6 Riverside County Transportation Commission

9 Commission Introduction State of California (State) law created the Riverside County Transportation Commission (Commission or RCTC) in 1976 to oversee the funding and coordination of all public transportation services within Riverside County (County). The Commission s mission is to assume a leadership role in improving mobility in the County. The governing body consists of all five members of the County Board of Supervisors, one elected official from each of the County s 28 cities, and one non-voting member appointed by the Governor of California. The Commission is responsible for setting policies, establishing priorities, and coordinating activities among the County s various transit operators and other agencies. The Commission also programs and/or reviews the allocation of federal, state, and local funds for highway, transit, rail, non-motorized travel (bicycle and pedestrian), and other transportation activities. The Commission serves as the tax authority and implementation agency for the voter approved Measure A Transportation Improvement Program (TIP). Measure A was originally approved by the County s electorate in 1988 and imposed a one-half of one cent transaction and use tax (sales tax) to fund specific programs that commenced in July 1989 (1989 Measure A). The 1989 Measure A was approved for 20 years and expired on June 30, On November 5, 2002, the voters of Riverside County approved the renewal of Measure A beginning in July 2009 through June 2039 (2009 Measure A). Additionally, the Commission provides motorist aid services designed to expedite traffic flow. These services include the Service Authority for Freeway Emergencies (SAFE), a program that provides call box service for motorists; the Freeway Service Patrol (FSP), a roving tow truck service to assist motorists with disabled vehicles on the main highways of the County during peak rush hour traffic periods; and Inland Empire 511 (IE511), a traveler information system. These services are provided at no charge to motorists and are funded through a $1 surcharge on vehicle registrations. The Commission is also legally responsible for allocating Transportation Development Act (TDA) funds, the major source of funds for transit in the County. The TDA provides two sources of funding: the Local Transportation Fund (LTF), which is derived from a one-quarter of one cent state sales tax, and State Transit Assistance (STA), which is now derived from the statewide sales tax on diesel fuel. Prior to 2010, STA revenues included the tax on gasoline. Finally, the Commission has been designated as the Congestion Management Agency (CMA) for the County. As the CMA, the Commission coordinates with local jurisdictions in the establishment of congestion mitigation procedures for the County s roadway system. 60/215 East Junction Project Riverside County Transportation Commission 7

10 Riverside County Transportation Commission List of Principal Officials Board of Commissioners Name Title Agency Kevin Jeffries Member County of Riverside, District 1 John F. Tavaglione Member County of Riverside, District 2 Jeff Stone Member County of Riverside, District 3 John J. Benoit Member County of Riverside, District 4 Marion Ashley Vice Chair (Commission) County of Riverside, District 5 Bob Botts Member City of Banning Roger Berg Member City of Beaumont Joseph DeConinck Member City of Blythe Ella Zanowic Chair (Budget and Implementation Committee) City of Calimesa Mary Craton Member City of Canyon Lake Greg Pettis Member City of Cathedral City Steven Hernandez Member City of Coachella Karen Spiegel Chair (Commission) City of Corona Scott Matas Vice Chair (Eastern Riverside County Programs and Projects City of Desert Hot Springs Committee) Adam Rush Member City of Eastvale Larry Smith Member City of Hemet Douglas Hanson Vice Chair (Budget and Implementation Committee) City of Indian Wells Glenn Miller Member City of Indio Frank Johnston Vice Chair (Western Riverside County Programs and Projects City of Jurupa Valley Committee) Terry Henderson Chair (Eastern Riverside County Programs and Projects City of La Quinta Committee) Bob Magee Member City of Lake Elsinore Scott Mann Member City of Menifee Tom Owings Member City of Moreno Valley Rick Gibbs Member City of Murrieta Berwin Hanna Member City of Norco Jan Harnik Member City of Palm Desert Ginny Foat Member City of Palm Springs Daryl Busch 2nd Vice Chair (Commission) City of Perris Ted Weill Member City of Rancho Mirage Steve Adams Member City of Riverside Andrew Kotyuk Chair (Western Riverside County Programs and Projects City of San Jacinto Committee) Ron Roberts Member City of Temecula Ben Benoit Member City of Wildomar Basem Muallem Governor s Appointee Caltrans, District 8 Management StaFF Name Anne Mayer John Standiford Cathy Bechtel Michael Blomquist Marlin Feenstra Theresia Treviño Robert Yates Title Executive Director Deputy Executive Director Project Development Director Toll Program Director Project Delivery Director Chief Financial Officer Multimodal Services Director 8 Riverside County Transportation Commission

11 Executive Summary Introduction The budget for Fiscal Year (FY) 2013/14 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 13, 2013, 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 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. Enhance corridor mobility and traveler choice by continuing property acquisition and commencing construction on the SR-91 corridor improvement project and continuing to develop tolled express lanes on I-15. Work closely with local jurisdictions to administer the Transportation Uniform Mitigation Fee (TUMF) Regional Arterial Program and facilitate the delivery of eligible arterial improvements in western Riverside County (Western County). Work closely with partners in the Coachella Valley to ensure the implementation of Measure A funding priorities. Complete projects and programs included in the 1989 Measure A. 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 motorized and non-motorized 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. Explore local options for sustainable funding in addressing long-term transportation and quality-of-life needs for Riverside County. 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 2013/14 Management Services budget is 2.45% of Measure A revenues. Maintain administrative salaries and benefits at less than 1% of Measure A revenues; the FY 2013/14 administrative salaries and benefits is.92% of Measure A revenues. Continue to maintain prudent cash reserves to provide some level of insulation for unplanned expenditures. Riverside County Transportation Commission 9

12 Maintain current positive bond ratings with rating agencies. 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, toll revenue bonds, and federal loans. Establish and maintain reserves for toll operations, capital improvements, and debt service in accordance with toll supported debt agreements. Adopt toll revenue policies to establish congestion pricing in order to maximize throughput on toll facilities. 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 enterprise resource planning (ERP) system to integrate project accounting needs and improve accounting efficiency. Budget Overview Total sources (Table 1) are budgeted at $1,921,987,400, which is an increase of 279% over FY 2012/13 projected sources and a 2% increase over the FY 2012/13 revised budget. Total sources are comprised of revenues of $474,887,600, transfers in of $636,325,800, and debt proceeds of $810,774,000. The projected fund balance at June 30, 2013 available for expenditures (excluding reserves for debt service of $48,559,900 and advances receivable of $32,818,200) is $509,443,500. Accordingly, total funding available for the FY 2013/14 budget totals $2,431,430,900. Table 1 Sources FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Measure A Sales Tax $ 134,984,300 $ 141,000,000 $ 141,000,000 $ 147,000,000 $ 6,000,000 4% LTF Sales Tax 66,556,700 69,500,000 69,500,000 72,500,000 3,000,000 4% STA Sales Tax 13,487,500 14,212,500 14,212,500 13,298,000 (914,500) -6% Intergovernmental 51,516,900 93,758,400 64,845, ,839, ,081, % TUMF Revenue 8,116,400 7,557,300 7,268,200 6,723,400 (833,900) -11% Other Revenue 1,430, , , ,000 (382,800) -43% Investment Income 4,308,300 7,265,900 3,986,300 4,026,500 (3,239,400) -45% Operating Transfers In 123,977, ,118, ,536, ,325, ,207,200 94% Debt Proceeds 40,000,000 1,220,172,000 80,000, ,774,000 (409,398,000) -34% TOTAL Sources $ 444,377,400 $ 1,882,467,500 $ 506,841,700 $ 1,921,987,400 $ 39,519,900 2% Riverside County has a number of competitive advantages 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. Prior to the national recession, 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. During the nationwide recession, the County experienced high unemployment; reduced personal income, taxable sales, and residential building permits; a decrease in the rate of home sales and the median price of single-family residences; and high rates of notices of default on mortgage loans secured by single-family residences. The impact of the recession was amplified in the Inland Empire (i.e., Riverside and San Bernardino counties) due to its relatively greater growth and the relatively lower average income levels when compared to coastal areas. These factors resulted in fluctuating Measure A and LTF sales tax revenues and TUMF fees; however, as noted on Chart 1 the sales tax revenues appear to have stabilized since FY 2009/ Riverside County Transportation Commission

13 Chart 1 Commission Sources Trend $1,000,000,000 $800,000,000 $600,000,000 Measure A Sales Tax LTF Sales Tax STA Sales Tax TUMF $400,000,000 Federal, State, Local Revenues Operating Transfers In $200,000,000 Debt Proceeds $0 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 Recovery from the nationwide recession in the local Inland Empire economy has lagged the nation and other areas of California. Sales tax revenues have rebounded from the recent economic downturn s low point in The Commission s economic outlook for FY 2013/14 continues to be cautiously optimistic; 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 continue to fluctuate and the availability of federal and state revenues continue 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 Intergovernmental 12% STA Sales Tax 1% Operating Transfers In 33% Debt Proceeds 42% LTF Sales Tax 4% Measure A Sales Tax 8% 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 5.45%. 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 optimistic revenue trends into consideration, staff projects Measure A sales tax revenues of $147,000,000 for FY 2013/14. This is a 4% increase from the FY 2012/13 revised projection of $141,000,000. 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 $72,500,000; an increase of 4% from the FY 2012/13 revised projection of $69,500,000. Riverside County Transportation Commission 11

14 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 2013/14 is $13,298,000. Intergovernmental revenues include reimbursement revenues from federal sources of $94,389,000, state sources of $133,496,300, and local agencies of $2,954,400 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 2013/14 TUMF fees are expected to remain flat at $6,300,000 to reflect the slow but encouraging signs in the housing market in the Inland Empire, and additional TUMF zone reimbursements of $423,400 are expected for the 74/215 interchange project. Other revenue of $500,000 is projected to decrease 43% from the prior year s budget of $882,800 and is related to property management revenues from properties acquired in connection with the SR-91 corridor improvement project. Investment income is anticipated to decrease in FY 2013/14 as a result of increased activity with the Perris Valley Line and the SR-91 corridor improvement projects. 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 $636,325,800 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 $20,000,000 in commercial paper notes related to the I-15 and I-215 corridor improvements projects, $404,646,000 and $207,512,000, including bond premiums of $68,616,000, in sales tax and toll revenue bonds, and a $110,000,000 federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan related to the SR-91 corridor improvement project. Total uses (Table 2), including transfers out of $636,325,800, are budgeted at $1,669,479,000, an increase of 72% from the prior year budget amount of $970,284,000. Program expenditures and transfers out totaling $1,520,181,300 represent 91% of total budgeted uses in FY 2013/14. Program costs have increased by 87% from $813,841,800 in FY 2012/13. Table 2 Uses FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Note: Management Services includes Executive Management, Administration, Legislative Affairs and Communications, and Finance. Percent Change Capital Highway, Rail, $ 238,856,700 $ 637,362,200 $ 311,301,700 $ 1,322,975,400 $ 685,613, % and Regional Arterials Capital Local Streets and Roads 40,127,900 42,129,000 42,129,000 43,825,900 1,696,900 4% Commuter Assistance 3,317,600 4,190,100 4,348,700 4,523, ,800 8% Debt Service 61,532, ,413,000 22,990, ,712,300 (7,700,700) -5% Management Services 17,714,600 13,029,200 11,934,000 13,585, ,200 4% Motorist Assistance 4,942,900 6,169,300 6,048,900 6,755, ,200 10% Planning and Programming 3,399,900 4,994,100 3,538,600 5,845, ,900 17% Public and Specialized Transit 68,068, ,443,800 77,742, ,770,000 16,326,200 16% Rail Maintenance and Operations 20,202,600 14,553,300 11,564,300 15,485, ,300 6% TOTAL Uses $ 458,163,400 $ 970,284,000 $ 491,598,700 $ 1,669,479,000 $ 699,195,000 72% Capital highway, rail, and regional arterials budgeted uses of $1,322,975,400 are 108% higher compared to the FY 2012/13 budget due to project activities on the Perris Valley Line and significant right of way activities and commencement of construction on the SR-91 corridor improvement project in addition to transfers out of debt proceeds from capital projects funds to special revenue funds to finance 2009 Measure A Western County highway project costs as well as to debt service funds. 12 Riverside County Transportation Commission

15 Local streets and roads expenditures of $43,825,900 reflect an increase of 4% over the FY 2012/13 budget and represent the disbursements to local jurisdictions for the construction, repair, and maintenance of local streets and roads. Debt Service of $135,712,300 has decreased 5% as a result of the retirement of $80 million of outstanding commercial paper notes in FY 2013/14 from sales tax revenue bond proceeds issued in connection with the SR-91 corridor improvement project financing. Additionally, debt service requirements related to the SR-91 corridor improvement project current plan of finance are lower than estimated in the prior plan of finance. Commuter Assistance budgeted expenditures of $4,523,900 are 8% higher than FY 2012/13 budget due to increased expenditures related to projects and operations activities. Management Services expenditures have increased 4% from the FY 2012/13 budget due to information technology equipment upgrades. Motorist Assistance expenditures have increased 10% or $586,200 from the FY 2012/13 budget as a result of increased demand for freeway service patrol services supporting construction projects. Planning and Programming budgeted expenditures of $5,845,000 reflect a 17% increase from the FY 2012/13 budget due to increased projects and operations activities in connection with LTF disbursements for planning and programming and grade separation projects. Public and Specialized Transit budgeted expenditures of $120,770,000 are 16% higher than FY 2012/13 budget due to increased transit capital expenditures for public transit. The 6% increase in Rail Maintenance and Operation s budgeted expenditures of $15,485,600 is primarily due to additional consultant work needed to perform planning and modeling for rail projects including the SR-91/Perris Valley Line expansion and Coachella Valley rail service. Total uses included in the FY 2013/14 budget by major categories are illustrated in Chart 3. Chart 3 Uses: Major Categories Capital Highway, Rail, and Regional Arterials 79% Rail Maintenance and Operations 1% Public and Specialized Transit 7% Motorist Assistance 1% Management Services 1% Debt Service 8% Capital Local Streets and Roads 3% Commission Personnel The Commission s salary and benefits total $7,949,400 for FY 2013/14. This represents an increase of $978,300 or 14% over the FY 2012/13 budget of $6,971,100 (Chart 4). The increase relates to the addition of four full-time equivalents (FTE); market equity adjustments resulting from a biennial classification and compensation study; a 3% cost of living adjustment to offset the employee s contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Beginning with FY 2013/14, the Commission has implemented a phased approach over a three-year period requiring employees to pay their share of normal pension costs. The current 8% employer-paid member contribution by the Commission will be eliminated in FY 2015/16. Riverside County Transportation Commission 13

16 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 $0 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 The FY 2013/14 FTE of 46 positions has increased compared to the FY 2012/13 level (Table 3) and reflects an increase of four FTEs for the recruitment of a capital projects manager, facilities administrator, human resources administrator, and a planning and programming director. The Commission is preparing for significant organization changes that include large transportation capital projects resulting in toll operations and the investment of billions of dollars requiring substantial attention at many staff levels. 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 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 full-time equivalents by Department FY FY 11/12 FY 12/13 FY 13/14 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 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 Riverside County Transportation Commission

17 Chart 5 Personnel Salary and Benefits Salary 63% Other Fringes 7% Health 13% Retirement 17% Department Initiatives The preparation of each department s budget was based on key assumptions, accomplishments in FY 2012/13, major initiatives for FY 2013/14, 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. Initiate construction on Riverside County s largest transportation project, the SR-91 corridor improvement project. Advance public transit with the construction of the Perris Valley Line making this Riverside County s first major rail expansion in more than 14 years. Advocate for state investments in transportation and approval of a federal transportation bill to fund needed transportation priorities in the 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 FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 105,200 $ 120,600 $ 83,000 $ 96,700 $ (23,900) -20% Professional 69, , , ,000-0% Support 39,600 57,600 53,700 57,200 (400) -1% TOTAL $ 214,700 $ 283,200 $ 237,800 $ 258,900 $ (24,300) -9% 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. Riverside County Transportation Commission 15

18 Table 5 Administration FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 434,000 $ 460,300 $ 398,200 $ 628,600 $ 168,300 37% Professional 239, , , ,600 (53,100) -20% Support 547, , , ,200 3,000 0% Capital Outlay 17, ,000 55, , , % Debt Service 25, N/A TOTAL $ 1,263,300 $ 1,502,200 $ 1,196,000 $ 1,865,400 $ 363,200 24% 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. Continue a leadership role in formulating a countywide direction on federal transportation policies. Take a leadership role on the modernization of California Environmental Quality Act (CEQA). 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. Conduct a concerted outreach effort to new federal and state representatives on local transportation issues. Provide new Commissioner orientation meetings and other continuing education opportunities for Commissioners. Table 6 Legislative Affairs and Communications FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 347,100 $ 395,000 $ 351,200 $ 506,700 $ 111,700 28% Professional 425, , , ,500 (108,800) -16% Support 155, , , ,200 1,200 1% TOTAL $ 927,900 $ 1,244,300 $ 953,200 $ 1,248,400 $ 4,100 0% 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 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 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. Conduct outreach activities to encourage disadvantaged business enterprise (DBE) and small business enterprise (SBE) participation in various contracts. 16 Riverside County Transportation Commission

19 Table 7 Finance FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 832,600 $ 828,600 $ 774,000 $ 840,300 $ 11,700 1% Professional 3,977,800 3,514,100 3,119,900 3,701, ,600 5% Support 516, , , ,700 7,900 1% Capital Outlay 7,000-5,500 6,000 6,000 N/A Transfers Out 10,000,000 5,000,000 5,000,000 5,000,000-0% TOTAL $ 15,333,900 $ 9,999,500 $ 9,547,000 $ 10,212,700 $ 213,200 2% 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 multi-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. Table 8 Planning and Programming FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 904,800 $ 835,800 $ 959,200 $ 1,032,700 $ 196,900 24% Professional 132, , , , ,700 34% Support 17,400 24,300 16,400 23,300 (1,000) -4% Projects and Operations 2,323,600 3,771,200 2,365,000 4,301, ,300 14% Capital Outlay 21, N/A TOTAL $ 3,399,900 $ 4,994,100 $ 3,538,600 $ 5,845,000 $ 850,900 17% 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, the Pass Area, Riverside, and the Los Angeles basin. Riverside County Transportation Commission 17

20 Table 9 Rail Maintenance and Operations FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 488,700 $ 496,700 $ 613,200 $ 636,500 $ 139,800 28% Professional 206, , , , ,000 40% Support 1,260,100 1,735,600 1,455,900 1,723,700 (11,900) -1% Projects and Operations 18,225,900 11,834,300 9,181,900 12,489, ,900 6% Capital Outlay 21,900 65,700 56,400 48,200 (17,500) -27% TOTAL $ 20,202,600 $ 14,553,300 $ 11,564,300 $ 15,485,600 $ 932,300 6% 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. Complete the second year of specialized transit funding allocations related to the 2011 universal call for projects and continue to 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. Table 10 Public and Specialized Transit FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 326,600 $ 326,200 $ 296,100 $ 380,100 $ 53,900 17% Professional 146, , , ,500 (103,000) -35% Support 8,400 18,900 13,500 24,500 5,600 30% Projects and Operations 52,677,000 84,174,600 58,822, ,210,800 22,036,200 26% Transfers Out 14,910,500 19,632,600 18,336,400 13,966,100 (5,666,500) -29% TOTAL $ 68,068,600 $ 104,443,800 $ 77,742,900 $ 120,770,000 $ 16,326,200 16% 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/buspool arrangements and facilitate transit connections. Table 11 Commuter Assistance FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 216,000 $ 218,900 $ 375,200 $ 300,800 $ 81,900 37% Professional 588, , , , ,500 26% Support 366, , , ,300 (45,900) -9% Projects and Operations 1,986,700 2,623,400 2,588,300 2,802, ,400 7% Capital Outlay - 17,000 10,000 7,000 (10,000) -59% Transfers Out 160, , , ,200 (39,100) -26% TOTAL $ 3,317,600 $ 4,190,100 $ 4,348,700 $ 4,523,900 $ 333,800 8% 18 Riverside County Transportation Commission

21 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. Utilize the opportunity to enhance coordination between California Highway Patrol (CHP) and Caltrans on traveler information. Table 12 Motorist Assistance FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 149,200 $ 175,900 $ 175,900 $ 187,200 $ 11,300 6% Professional 789, , , ,500 49,000 7% Support 515, , , ,900 (8,700) -1% Projects and Operations 2,392,100 3,070,000 2,935,000 3,635, ,000 18% Transfers Out 1,096,600 1,321,300 1,321,300 1,290,900 (30,400) -2% TOTAL $ 4,942,900 $ 6,169,300 $ 6,048,900 $ 6,755,500 $ 586,200 10% 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, 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 Measure A regional arterial and TUMF funding and support to local jurisdictions for regional arterial project engineering, right of way acquisition, and construction. Provide 2009 Measure A funding to the incorporated cities, CVAG and the County for local streets and roads maintenance, repair, and construction. Provide advance funding and support of 2009 Measure A highway and regional arterial projects. 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 in the most cost effective manner and within project schedules, while adhering to federal and state regulations. 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 FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Personnel $ 2,268,400 $ 3,113,100 $ 2,934,200 $ 3,339,800 $ 226,700 7% Professional 5,057,500 7,692,500 7,321,700 19,260,400 11,567, % Support 300, , , , ,200 52% Projects and Operations 173,405, ,850, ,066, ,987, ,137,100 99% Capital Outlay 142, ,000 78, , ,000 56% Debt Service 61,507, ,413,000 22,990, ,712,300 (7,700,700) -5% Transfers Out 97,810, ,013, ,727, ,956, ,943, % TOTAL $ 340,492,000 $ 822,904,200 $ 376,421,300 $ 1,502,513,600 $ 679,609,400 83% Riverside County Transportation Commission 19

22 Fund Balances The total fund balance as of June 30, 2013 is projected at $590,821,600. The Commission s budgeted activities for FY 2013/14 are expected to result in a $252,508,400 increase of total fund balance at June 30, 2014 to $843,330,000. The primary cause of the increase is related to the completion of financing activities in FY 2013/14 related to the SR-91 corridor improvement project. Table 14 presents the components of fund balance by governmental fund type and program at June 30, Table 14 Projected Fund Balances by Governmental Fund Type and Program at June 30, 2014 Riverside County Transportation Commission $843,330,000 General Fund $8,091,200 Special Revenue Funds $413,294,200 Capital Projects Funds $274,420,100 Debt Service Fund $147,524,500 Management Services $4,337,400 Measure A Western County: Highways $274,420,100 Planning and Programming 1,465,100 Bond Financing $4,671,500 Rail Maintenance and Operations 2,288,700 Commuter Assistance 13,476,600 Economic Development 3,737,800 Highways 103,827,000 Local Streets and Roads 1,100 New Corridors 54,310,400 Public and Specialized 7,821,000 Transit Rail 37,740,500 Regional Arterials 23,836,900 Measure A Coachella Valley: Highways and Regional Arterial 4,286,800 Local Streets and Roads 1,600 Specialized Transit 1,361,200 Measure A Palo Verde Valley Local Streets and Roads 600 Motorist Assistance 5,221,100 State Transit Assistance 42,788,800 Local Transportation Fund 86,030,100 TUMF: CETAP 17,040,200 Regional Arterials 7,141,000 Budget Summary The overall budget for FY 2013/14 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 Riverside County Transportation Commission

23 Table 15 Budget Comparative by Summarized Line Item FY Revenues FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Measure A Sales Tax $ 134,984,300 $ 141,000,000 $ 141,000,000 $ 147,000,000 $ 6,000,000 4% LTF Sales Tax 66,556,700 69,500,000 69,500,000 72,500,000 3,000,000 4% STA Sales Tax 13,487,500 14,212,500 14,212,500 13,298,000 (914,500) -6% Federal Reimbursements 28,097,000 73,151,900 40,949,200 94,389,000 21,237,100 29% State Reimbursements 21,411,300 17,917,800 21,306, ,496, ,578, % Local Reimbursements 2,008,600 2,688,700 2,589,400 2,954, ,700 10% TUMF Revenue 8,116,400 7,557,300 7,268,200 6,723,400 (833,900) -11% Other Revenue 1,430, , , ,000 (382,800) -43% Investment Income 4,308,300 7,265,900 3,986,300 4,026,500 (3,239,400) -45% TOTAL Revenues 280,400, ,176, ,305, ,887, ,710,700 42% Expenditures Personnel Salary and Benefits 6,072,600 6,971,100 6,960,200 7,949, ,300 14% Professional and Support Professional Services 11,632,200 14,676,700 13,360,700 26,675,500 11,998,800 82% Support Costs 3,728,100 5,333,300 4,586,900 5,593, ,000 5% TOTAL Professional 15,360,300 20,010,000 17,947,600 32,268,800 12,258,800 61% and Support Costs Projects and Operations Program Operations - 11,194,200 18,880,500 14,255,600 20,107,100 1,226,600 6% General Engineering 21,366,500 27,932,000 16,580,400 20,360,000 (7,572,000) -27% Construction 27,451, ,994,100 61,628, ,968, ,974,300 91% Design Build 16,285,700 29,050,000 29,050, ,750, ,700, % Right of Way/Land 53,728, ,246,800 64,716, ,707,800 52,461,000 47% Operating and 71,658,200 97,835,800 68,779, ,610,800 24,775,000 25% Capital Disbursements Special Studies 236, , , , ,000 17% Local Streets and Roads 40,127,900 42,129,000 42,129,000 43,825,900 1,696,900 4% Regional Arterials 8,962,700 16,455,400 20,500,400 25,157,500 8,702,100 53% TOTAL Projects and Operations 251,011, ,323, ,959, ,426, ,102,900 82% Debt Service Principal Payments 46,523, ,800,000 6,800,000 87,100,000 (39,700,000) -31% Interest Payments 15,008,700 16,613,000 16,190,600 41,112,300 24,499, % Cost of Issuance ,500,000 7,500,000 N/A TOTAL Debt Service 61,532, ,413,000 22,990, ,712,300 (7,700,700) -5% Capital Outlay 209, , , , ,500 78% TOTAL Expenditures 334,186, ,165, ,062,600 1,033,153, ,987,800 61% Excess (deficiency) of Revenues over (under) Expenditures (53,786,000) (307,988,500) (64,757,000) (558,265,600) (250,277,100) 81% Other Financing Sources (Uses) Transfers In 123,977, ,118, ,536, ,325, ,207,200 94% Transfers Out (123,977,200) (328,118,600) (125,536,100) (636,325,800) (308,207,200) 94% Debt Proceeds 40,000,000 1,220,172,000 80,000, ,774,000 (519,398,000) -43% TIFIA Loan Proceeds ,000, ,000,000 N/A Net Financing Sources (Uses) 40,000,000 1,220,172,000 80,000, ,774,000 (409,398,000) -34% Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (13,786,000) 912,183,500 15,243, ,508,400 (659,675,100) -72% Beginning Fund Balance 589,364, ,578, ,578, ,821,600 15,243,000 3% ENDING FUND BALANCE $ 575,578,600 $ 1,487,762,100 $ 590,821,600 $ 843,330,000 $ (644,432,100) -43% Riverside County Transportation Commission 21

24 Table 16 Operating and Capital Budget FY 2013/14 Revenues FY 13/14 Operating Budget FY 13/14 Capital Budget FY 13/14 TOTAL Budget Measure A Sales Tax $ 14,018,000 $ 132,982,000 $ 147,000,000 LTF Sales Tax 72,500,000-72,500,000 STA Sales Tax 13,298,000-13,298,000 Federal Reimbursements 751,400 93,637,600 94,389,000 State Reimbursements 5,299, ,197, ,496,300 Local Reimbursements 2,498, ,000 2,954,400 TUMF Revenue - 6,723,400 6,723,400 Other Revenue - 500, ,000 Investment Income 410,900 3,615,600 4,026,500 TOTAL Revenues 108,775, ,111, ,887,600 Expenditures Personnel Salary and Benefits 4,600,400 3,349,000 7,949,400 Professional and Support Professional Services 4,716,900 21,958,600 26,675,500 Support Costs 4,664, ,300 5,593,300 TOTAL Professional and Support Costs 9,380,900 22,887,900 32,268,800 Projects and Operations Program Operations - General 7,909,500 12,197,600 20,107,100 Engineering 5,000 20,355,000 20,360,000 Construction - 240,968, ,968,400 Design Build - 217,750, ,750,000 Right of Way and Land - 164,707, ,707,800 Operating and Capital Disbursements 120,610,800 2,000, ,610,800 Special Studies 914,000 25, ,000 Local Streets and Roads - 43,825,900 43,825,900 Regional Arterials - 25,157,500 25,157,500 TOTAL Projects and Operations 129,439, ,987, ,426,500 Debt Service Principal Payments - 87,100,000 87,100,000 Interest Payments - 41,112,300 41,112,300 Cost of Issuance - 7,500,000 7,500,000 TOTAL Debt Service - 135,712, ,712,300 Capital Outlay 446, , ,200 TOTAL Expenditures 143,866, ,286,400 1,033,153,200 Excess (deficiency) of Revenues over (under) Expenditures (35,091,100) (523,174,500) (558,265,600) Other Financing Sources (Uses) Transfers In 16,846, ,479, ,325,800 Transfers Out (15,369,200) (620,956,600) (636,325,800) Debt Proceeds - 700,774, ,774,000 TIFIA Loan Proceeds - 110,000, ,000,000 Net Financing Sources (Uses) 1,477, ,296, ,774,000 Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (33,613,700) 286,122, ,508,400 Beginning Fund Balance 198,403, ,417, ,821,600 ENDING FUND BALANCE $ 164,790,000 $ 678,540,000 $ 843,330, Riverside County Transportation Commission

25 Table 17 Budget by Governmental Fund Type FY 2013/14 Revenues General Special Revenue Capital Projects Debt Service FY 13/14 TOTAL Budget Measure A Sales Tax $ 2,800,000 $ 144,200,000 $ - $ - $147,000,000 LTF Sales Tax - 72,500, ,500,000 STA Sales Tax - 13,298, ,298,000 Federal Reimbursements 25,000 91,620,000-2,744,000 94,389,000 State Reimbursements 1,119, ,377, ,496,300 Local Reimbursements 224,800 2,729, ,954,400 TUMF Revenue - 6,723, ,723,400 Other Revenue - 500, ,000 Investment Income 20,200 1,030,400 1,877,700 1,098,200 4,026,500 TOTAL Revenues 4,189, ,978,700 1,877,700 3,842, ,887,600 Expenditures Personnel Salary and Benefits 3,991,700 3,957, ,949,400 Professional and Support Professional Services 3,024,100 21,615,000 1,248, ,300 26,675,500 Support Costs 3,292,700 2,300, ,593,300 TOTAL Professional and Support Costs 6,316,800 23,915,600 1,248, ,300 32,268,800 Projects and Operations Program Operations - General 1,471,700 18,635, ,107,100 Engineering 5,000 20,355, ,360,000 Construction - 240,968, ,968,400 Design Build - 217,750, ,750,000 Right of Way/Land - 164,707, ,707,800 Operating and Capital Disbursements 14,400, ,210, ,610,800 Special Studies 914,000 25, ,000 Local Streets and Roads - 43,825, ,825,900 Regional Arterials - 25,157, ,157,500 TOTAL Projects and Operations 16,790, ,635, ,426,500 Debt Service Principal Payments ,000,000 7,100,000 87,100,000 Interest Payments ,000 41,012,300 41,112,300 Cost of Issuance - - 7,500,000-7,500,000 TOTAL Debt Service ,600,000 48,112, ,712,300 Capital Outlay 439, , ,200 TOTAL Expenditures 27,538, ,866,100 88,848,100 48,900,600 1,033,153,200 Excess (deficiency) of Revenues over (under) Expenditures (23,349,400) (402,887,400) (86,970,400) (45,058,400) (558,265,600) Other Financing Sources (Uses) Transfers In 14,896, ,406,200 80,000, ,023, ,325,800 Transfers Out - (66,075,200) (560,250,600) (10,000,000) (636,325,800) Debt Proceeds ,774, ,774,000 TIFIA Loan Proceeds ,000, ,000,000 Net Financing Sources (Uses) 14,896, ,331, ,523, ,023, ,774,000 Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (8,452,800) (81,556,400) 243,553,000 98,964, ,508,400 Beginning Fund Balance 16,544, ,850,600 30,867,100 48,559, ,821,600 ENDING FUND BALANCE $ 8,091,200 $ 413,294,200 $ 274,420,100 $ 147,524,500 $ 843,330,000 Riverside County Transportation Commission 23

26 Table 18 Highway, Regional Arterial, and Rail Programs FY 2013/14 Description Projects and Operations Bechtel program management $ 9,200,000 SCRRA program management 1,200,000 Other 1,797,600 TOTAL PROJECTS-GENERAL $ 12,197,600 Highway Engineering 91/71 interchange improvement project $ 4,600,000 I-15 corridor improvements 7,000,000 I-215 corridor improvement southbound connector 950,000 Mid County Parkway 2,550,000 SR-91 corridor improvements 100,000 SR-91 HOV lanes/adams Street to 60/91/215 interchange 32,000 General 100,000 SUBTOTAL HIGHWAY ENGINEERING 15,332,000 Regional Arterial Engineering Various Western County TUMF regional arterial projects, including SR-79 realignment 4,823,000 Rail Engineering CCTV operations center 200,000 General 5,000 SUBTOTAL RAIL ENGINEERING 205,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING $ 20,360,000 Highway Construction 60/215 East Junction HOV lane connectors $ 1,055,000 74/215 interchange 750,000 I-215 corridor improvements (central segment)/scott Road to Nuevo Road 45,500,000 I-215 corridor improvements (south widening segment)/i-15 to Scott Road 1,700,000 I-215/Blaine Street to Martin Luther King Boulevard widening 2,057,300 I-15/Los Alamos Road bridge replacement 900,000 SR-74 curve widening 3,410,000 SR-91 corridor improvements 3,800,000 SR-91/La Sierra Avenue interchange 33,000 SR-91 HOV lanes/mary Street to 7th Street 150,000 SUBTOTAL HIGHWAY CONSTRUCTION 59,355,300 Regional Arterial Construction Various Western County TUMF regional arterial projects, including SR-79 widening/thompson to Domenigoni 41,484,100 Various Western County Measure A regional arterial projects 2,300,000 SUBTOTAL REGIONAL ARTERIAL CONSTRUCTION 43,784,100 Rail Construction Riverside station pedestrian improvements 1,152,000 CCTV operations center 1,150,000 Station rehabilitation 2,260,000 Perris Valley Line and other rail projects 133,197,000 North Main Corona station parking structure 20,000 Perris Multimodal Facility 50,000 SUBTOTAL RAIL CONSTRUCTION 137,829,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION $ 240,968,400 Highway Design Build SR-91 corridor improvements $ 217,750,000 TOTAL HIGHWAY DESIGN BUILD $ 217,750,000 Highway Right of Way and Land 74/215 Interchange $ 30,000 60/215 East Junction HOV lane connectors 274,000 I-215 corridor improvement (central segment)/scott Road to Nuevo Road 730,000 Mid County Parkway 6,182,000 SR-74 curve widening 310,000 SR-74/I-15 to 7th Street 30,000 91/71 interchange improvement project 3,335,000 SR-91 corridor improvements 135,310,000 SR-91 HOV lanes/adams Street to 60/91/215 interchange 11,444,000 Western County Multi-species Habitat Conservation Plan (MSHCP) 3,000,000 General 20,000 SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND 160,665,000 Regional Arterial Right of Way and Land Various Western County TUMF Regional Arterial Projects 3,545,800 Rail Right of Way and Land Perris Multimodal Facility 10,000 Perris Valley Line and other rail projects 427,000 General 60,000 SUBTOTAL RAIL RIGHT OF WAY AND LAND 497,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL RIGHT OF WAY AND LAND $ 164,707,800 GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL PROGRAMS $ 655,983, Riverside County Transportation Commission

27 Gann Appropriations Limit In November 1979, the voters of the State approved Proposition 4, commonly known as the Gann Initiative. The Proposition created Article XIIIB of the State Constitution, placing limits on the amount of revenue that can be spent by public agencies from the proceeds of taxes. In 1980, the State Legislature added Section 7910 to the Government Code, providing that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year. The appropriations limit for any fiscal year is equal to the previous year s limit adjusted for population changes and changes in the California per capita income. The Commission is subject to the requirements of Article XIIIB. Gann appropriations limits are calculated for and applied to the Commission. In accordance with the requirements of Article XIIIB implementing legislation, the Board approved Resolution No on June 12, 2013, establishing appropriations limits for the Commission at $370,426,988. The FY 2013/14 budget appropriated $190,640,700 in taxes for the Commission, falling well within the limits set by the Gann Initiative. Based on historic trends and future projections, it appears the Commission s use of the proceeds of taxes, as defined by Article XIIIB, will continue to fall below the appropriations limit. The calculation for the FY 2013/14 appropriations limit is as follows: Appropriations Limit $ 348,861, adjustment: Change in California per capita personal income = 5.12% Change in Population, Riverside County = 1.01% Per Capita Cost of Living converted to a ratio: = Population converted to a ratio: = Calculation of factor for FY : x = $348,861,382 X = $370,426, Appropriations Limit $ 370,426,988 Source: California per capita income California Department of Finance Population, Riverside County California Department of Finance Riverside County Transportation Commission 25

28 I-215 Corridor Improvements (Central Segment) 26 Riverside County Transportation Commission

29 section 1 Guiding policies section 1 Guiding Policies Freeway Service Patrol

30 Commission Policy Goals and Objectives In addition to financial and administration policies, the Commission has seven long-term policy goals: promote mobility, mitigate and address the impact of goods movement, encourage economic development, ensure improved system efficiencies, foster environmental stewardship, support transportation choices through intermodalism and accessibility, and prioritize public and agency communications. For each of these policy goals, the objectives and initiatives that were considered in the framework of the work plan for the FY 2013/14 budget are identified below. While Riverside County shows modest signs of economic recovery, the Commission remains cautious about revenue availability. The need for better transportation remains a top public priority, and the Commission is poised to address this challenge via the seven policy goals. In moving forward with an aggressive program of projects and services, the Commission will face fluctuating Measure A, TUMF, and TDA revenues and uncertainty regarding the availability of federal and state transportation revenues. Due to the long-term nature of many of the Commission s programs, many of the policy goals objectives and initiatives are ongoing from year to year. Promote Mobility The Commission, in cooperation with local, state, and federal agencies, will strive to create a transportation system that promotes efficient mobility both within the County and region. Continue to aggressively pursue completion of the environmental, design, and construction processes on key components of the Western Riverside County Delivery Plan, which includes the SR-91, I-15, and I-215 corridor improvement projects. Enhance corridor mobility and traveler choice by: Continuing property acquisition and commencing construction on the SR-91 corridor improvement project through Corona, which includes the extension of tolled express lanes (91 Express Lanes) into Riverside County; and Continuing to develop a tolled express lane system on I-15 between SR-60 and Cajalco Road. Work closely with partners in the Coachella Valley, including CVAG and SunLine Transit Agency (SunLine) to ensure the implementation of Measure A funding priorities. Complete projects and programs included in the 1989 Measure A and determine use(s) for any unexpended revenues. Continue the preliminary engineering and environmental clearance for the Mid County Parkway and SR-79 realignment projects. Continue to work with state and federal agencies to fund and construct projects programmed in the STIP, Federal Transportation Improvement Program (FTIP), Proposition 1B bond programs, and Measure A program as well as other high priority regional projects. Maximize obtaining all available transportation funds and strategically program funds to meet funding deadlines and to prevent the lapse and loss of funds. Leverage the effective application and use of Measure A Western County regional arterial and other state and federal funds to deliver eligible regional arterial projects. Work closely with local jurisdictions to administer the TUMF Regional Arterial Program and facilitate the delivery of eligible arterial improvements in Western County. Actively participate in the SR-91 Advisory Committee to facilitate near and long-term improvements to SR-91, enhance intercounty public transit options, and foster mobility improvements between the two counties. Advocate streamlining efforts at the state and federal levels that will reduce costs, time, and delays currently associated with project delivery including, but not limited to, timely project reviews and approvals. Continue to coordinate and provide public access to commuter information via the IE511 system and focus commuter assistance and IE511 outreach efforts under one brand. Continue cooperation with the FTA regarding the Small Starts process to support the initiation of the Perris Valley Line commuter rail service in Continue to work with the public transit operators to control costs and increase system efficiencies in order to accommodate fluctuating revenues from local, state and federal sources. Continue to develop transit service to further promote seamless intracity, intercity, and regional transit connectivity for County residents. Riverside County Transportation Commission 27

31 Mitigate and Address the Impact of Goods Movement The Commission will work with federal, state, and local governments to facilitate the movement of goods and services to, within, and through the County, recognizing the vital role goods movement mobility plays in the economic health of the County, the State, and the nation. Seek funding and local agency concurrence to implement the Commission s approved, high-priority railroad grade separation list to mitigate the impact of increased goods movement demands on the transportation system. Encourage Congress to create a federal freight trust fund, or similar program with a dedicated and firewalled revenue structure, in order to treat the nation s multimodal national goods movement network as a system rather than individual projects. Remain committed to a regional approach regarding goods movement issues in order to maximize funding from state and federal sources to goods movement needs in Southern California. Continue working with the Ports and regional transportation commissions to develop a funding mechanism for needed projects and mitigation on a regional basis. Encourage Economic Development Transportation decisions will consider the economic benefits derived from any improvement, and, where feasible and practical, will pursue transportation alternatives that enhance or complement economic development. Commit to seek opportunities related to transportation projects that will create jobs and improve the economic base in the County. Support local agencies in the design and construction of interchanges that are in proximity to regional economic centers and developments. Support local projects, consistent with countywide transportation goals, which enhance business development, local employment, and area tourism. Ensure Improved System Efficiencies The Commission will select projects and allocate funds in a manner that will improve safety and reduce congested traffic corridors. Advocate the development and use of advanced technologies for transportation applications that are affordable and practical. In partnership with SANBAG, implement enhancements to the IE511 mobile application for improved deployment of real-time traffic information, real-time bus and rail transit trip planning information, and rideshare information available to commuters for the purpose of trip planning and reducing congestion. Assure the effectiveness of transit planning through coordination with the County s eight transit operators, Citizens Advisory Committee, and annual SRTP process with a goal toward promoting program productivity, efficiency, and effectiveness. Provide innovative commuter rideshare programs to reduce single occupant vehicle trips and coordinate with other regional rideshare service providers to address intercounty commute trips. Work with local jurisdictions, Caltrans, and the CHP to continue efficient delivery of a comprehensive motorist aid system which includes an IE511 traveler information service, a call box program, and a FSP program, including temporary services in freeway construction zones. Leverage resources to incorporate park and ride facilities and additional connecting bus service at Metrolink stations that may have available capacity. Continue working with Caltrans to monitor traffic conditions for the purpose of focusing transportation funds on congested corridors and system deficiencies. Work with Caltrans and regional agencies in developing resources for preservation and maintenance of the highways and regional arterials. Support the implementation of bicycle and pedestrian facilities that provide non-motorized transportation alternatives. 28 Riverside County Transportation Commission

32 Foster Environmental Stewardship The Commission will achieve its mobility goals while promoting environmental stewardship and protecting the area s natural resources and quality of life. Continue working with the Western Riverside County Regional Conservation Authority (RCA), Caltrans, and state/federal resource agencies to implement the MSHCP. Work with the Southern California Association of Governments (SCAG), South Coast Air Quality Management District (SCAQMD), sub-regional agencies, and local jurisdictions to implement the current RTP and sustainable communities strategy that meets regional air quality goals, conformity guidelines, and SB375 green house reduction targets for the SCAG region. Support a variety of outreach channels and educational programs that promote the benefits of ridesharing, public and specialized transit, rail, and availability of commuter resources for the purposes of reducing vehicle trips and vehicle miles traveled. Facilitate private/public use of clean fuels technology. Continue to develop sustainable and green commuter rail stations and provide upgrades and rehabilitation projects to reduce the environmental impact of the existing stations. Support Transportation Choices through Intermodalism and Accessibility County residents will be served, where economically feasible, through the development of transportation alternatives and travel options that consider the needs of a wide range of citizens. Work with transit providers and local social service agencies to provide specialized transit service to meet a broad spectrum of socio-economic transit needs of seniors, persons with disabilities, and low income residents. Leverage commuter and motorist assistance outreach channels in order to increase the awareness and use of alternative commuting modes. Implement the Commission s commuter rail SRTP and Southern California Regional Rail Authority s (SCRRA or Metrolink) plan for commuter rail services with an emphasis on the Perris Valley Line, an extension from Riverside to Perris via Moreno Valley. Advocate for the provision of Amtrak commuter and/or passenger rail services to the Pass Area and the Coachella Valley. Continue to pursue the goals and objectives as outlined in the Coordinated Public Transit-Human Services Transportation Plan (Coordinated Plan) for Riverside County related to a unified, comprehensive but flexible strategy for transportation service delivery to address transportation gaps and/or barriers focusing on unmet transportation needs of elderly individuals, persons with disabilities, and individuals of limited income. Enhance security, surveillance, and emergency response capabilities of County transit facilities and roadway infrastructure through proactive planning, interagency coordination, and investment. Prioritize Public and Agency Communications The Commission will provide timely, informative, and accurate information to encourage informed public and agency participation in the Commission s decision-making processes. Promote a close working relationship with news and civic entities to increase interest and understanding of transportation and related issues. Enhance the provision of public information through various forms of communication (e.g., website, annual report, monthly newsletter, television, Speakers Bureau, print media, radio, etc.). Maintain an ongoing effort of informing Riverside County s Congressional and State Legislative delegations regarding County transportation issues. Develop an effective long-range legislative strategy regarding federal transportation bill funding and federal agency practices to ensure that the federal government participates as a full partner in funding Riverside County projects that are of national and regional significance. Protect and enhance flexibility in the Commission s use of state and federal transportation revenue in addressing regional priorities and needs. Riverside County Transportation Commission 29

33 Explore local options for sustainable funding in addressing long-term transportation and quality-of-life needs for Riverside County. Advocate for sufficient funding for Riverside County transit and transportation projects from various federal and state revenue sources including, but not limited to, annual federal appropriations, economic recovery programs, STIP, and Proposition 1B bond programs. Seek legislative flexibility for innovative financing and delivery methods. Maintain ongoing efforts to educate commuters, businesses, and the public regarding the Commission s toll planning efforts and specific project development efforts currently underway. 10/Bob Hope Drive/Ramon Road Interchange 30 Riverside County Transportation Commission

34 Financial and Administration Policies Financial Planning Policies Administrative costs, including salaries and benefits, shall be funded by allocations from Measure A, LTF, FSP, SAFE, and TUMF funds. The Commission shall budget no more than one percent (1%) of Measure A sales tax revenues for administrative salaries and benefits. Administrative program delivery costs will be budgeted at whatever is reasonable and necessary, but not to exceed four percent (4%) of Measure A sales tax revenues (inclusive of the one-percent salary limitation). The Commission shall budget 100% of the annual required contribution related to the postretirement health care benefits. The Commission shall utilize unexpended 1989 Measure A funds only for projects and programs included in the 1989 Measure A. Sales tax revenues from the 2009 Measure A shall be expended only for projects and programs included in the 2009 Measure A. Amounts will be budgeted by fiscal year for multi-year projects, based on best available estimates, with the understanding that, to the extent actuals vary from those estimates and the project is ongoing, adjustments will be made on a continual basis. The fiscal capital budget should be consistent with the strategic plan and deviations appropriately noted, explained, and justified. A balanced budget shall be adopted annually with operating and capital expenditures and other financing uses equal to or less than identified revenues and other financing sources as well as available fund balances. Revenue Policies Sales tax revenue projections will be revised semi-annually to ensure use of current and relevant data. Staff may adjust annual amounts during the budget preparation process to reflect the most current economic trends. A strategic application of local funding sources will be used to maximize federal and state funding of projects. Fiduciary responsibility regarding Western County TUMF revenues shall be exercised, and revenues will be allocated pursuant to Commission direction and the approved 2009 Measure A. Adopted toll revenue policies will establish congestion pricing in order to maximize throughput on toll facilities. Such pricing will be adjusted quarterly by pre-defined formulas. Debt Management Policies Outstanding sales tax revenue bonds shall not exceed $975 million. Toll revenue supported debt may be issued for specific highway projects and may comprise toll revenue bonds and federal loans. The Commission will maintain 2.0x debt ratio coverage on all senior sales tax revenue debt and 1.3x debt ratio coverage on all toll revenue debt. Debt issuance will be for major capital projects including engineering, right of way, and construction. Operating requirements, if any, must be paid from current ongoing revenues and may not be financed except for initial toll operations. Costs of issuance, including the standard underwriter s discount, will not exceed two percent (2%). The Commission may enter into interest rate swaps to better manage assets and liabilities and take advantage of market conditions to lower overall costs and reduce interest rate risk. While it is the intent of the Commission to establish a cash debt reserve for long term bond issuance, as necessary, surety bonds can be obtained when beneficial to the Commission. All sales tax revenue debt must mature prior to the termination of 2009 Measure A on June 30, All toll revenue supported debt must mature prior to the expiration of toll facility agreements. Riverside County Transportation Commission 31

35 Expenditure Accountability Policies Established priorities for planning and programming of capital projects will be reviewed annually with the Commission. Actual expenditures will be compared to the budget on at least a quarterly basis, and significant deviations will be appropriately noted, explained, and justified. Operations and maintenance agreements for toll operations will be implemented, and related costs will be compared to toll financing assumptions. Reserve Policies The Commission will maintain program reserves in accordance with Measure A and TDA policies and guidelines. The Commission will establish and maintain a transit operator s reserve of ten percent (10%) for the Coachella Valley and Palo Verde Valley. Additionally, a ten percent (10%) reserve will be established and maintained for each of the Western County transit operators (public bus and commuter rail). The Commission will establish and maintain reserves for toll operations, capital improvements, and debt service in accordance with toll supported debt agreements. Cash Management and Investment Policies Where possible, the Commission will encourage receipt of funds by wire transfer to its accounts. Balances in the bank operating account will be maintained at the amount necessary to meet monthly expenditures. Construction and operating funds will be invested per the Commission s established investment policy emphasizing in order of priority: 1) safety, 2) liquidity, and 3) yield. Cash disbursements to local jurisdictions and vendors/consultants will be completed in an expeditious and timely manner. Auditing, Accounting, and Financial Reporting Policies The Commission will maintain its ERP system in order to integrate project and toll operations accounting needs and improve accounting efficiency. The Commission will issue a Comprehensive Annual Financial Report (CAFR); separate financial reports for the LTF, STA, Proposition 1B Rehabilitation and Security Project Accounts, and toll operations upon commencement of such operations; and State Controller s Transportation Planning Agency Financial Transactions Report as well as Government Compensation in California Report. An audit is to be conducted annually on the Commission s accounting books and records. As long as the Commission has outstanding bonds and federal loans, an independent accounting firm must conduct the audit. The Commission is responsible for ensuring that audits of Measure A and TDA funding recipients are completed and reviewed for compliance and other matters in a timely manner. Human Resources Management Policies While accommodating the assumption of toll operation responsibilities, Commission staffing levels will be consistent with the intent of its enabling legislation, which envisioned a small, but effective staff. Contract staff and consultants will be used to augment staff efforts as much as possible to support programs or workloads, which do not appear to be of a permanent nature. Information Technology Management Policy Significant effort will be made to maintain efficient and cost-effective technology infrastructure by continuously upgrading network equipment and software to ensure quality performance, productivity, and connectivity among staff, other agencies, toll operator, and the public. Network security will continue to be a top priority to maintain the integrity of the Commission s network and information. 32 Riverside County Transportation Commission

36 Linking Commission Policy Goals and Departmental Goals and Objectives The following matrix (Table 19) illustrates the linkage of the Commission s overall policy goals described in this section to the individual departmental goals and objectives included in Section 6. Table 19 Relationship Between Commission and Departmental Goals Department Mobility Goods Movement System Efficiencies Environmental Stewardship Economic Development Intermodalism & Accessibility Communications Financial & Administration Management Services Executive Management X X X X X X Administration X X Legislative Affairs & Communications X X X X X Finance X Regional Programs Planning and Programming X X X X X X X X Rail Maintenance and Operations X X X X X Public and Specialized Transit X X X X X Commuter Assistance X X X X X X Motorist Assistance X X X X Capital Project Development & Delivery X X X X X X X Small Business Expo Riverside County Transportation Commission 33

37 Columbia Railroad Bridge 34 Riverside County Transportation Commission

38 section 2 Budget Process Summary section 2 BUDGET PROCESS SUMMARY 74/215

39 Budget Process Summary The budget is the primary performance tool used to measure and control accountability of public agencies for taxpayer dollars. The budget communicates to all stakeholders (i.e., elected officials, regional agencies, and citizens) how the investment they made will be put to use by providing detailed information on the specifics of resource allocation and expenditures. Progress is monitored on a monthly basis, and revisions and updates are made as deemed necessary to reflect changing dynamics and accommodate unplanned requests. This results in a budget document that is useful and meaningful as a benchmark against which to evaluate government accomplishments and/or challenges and to assess compliance with fiscal accountability. Unlike many governments that provide direct services to the general public, the Commission has the overall responsibility of managing transportation planning and funding for Riverside County. As a result its budget, in terms of dollars, is comprised primarily of capital-related programs and projects; the operating component of the budget is related to multimodal programs (commuter and motorist assistance services, rail operations, and transit planning). Management services, which consist of executive management, administration, legislative affairs and communications, and finance, provide support to both capital and operating programs and projects. Chart 7 depicts the organization of the Commission s oversight and management functions. The budget process consists of six primary tasks conducted in phases throughout the fiscal year. Chart 6 illustrates the budget process for the development of the FY 2013/14 budget and monitoring of the FY 2012/13 budget. A summary of each task is described below. Chart 6 Budget Process ID TASK NAME DURATION J A S O N D J F M A M J 1 2 Short Term Strategic Direction Phase Resource Identification and Allocation Phase 140 Days 200 Days 3 Needs Assessment Phase 120 Days Development and Review Phase Adoption and Implementation Phase Budget Roles and Responsibilities 150 Days 45 Days 365 Days Short-Term Strategic Direction Phase The first phase of the budget process is to determine the direction of the Commission in the short-term and to integrate this with the Commission s long-term goals and objectives, including the Western Riverside County Delivery Plan as discussed in Section 6.3. Annually a workshop is held for the Board to evaluate and determine where the Commission plans to be and what it desires to accomplish over the next five to ten years. Annual reviews allow for timely responsiveness to any significant political, legislative, or economic developments that may occur locally, statewide, or nationally. Staff then adjusts its course based on the long-term strategic direction of the policy makers. Staff convenes in early January to both assess actual results, compared to the current year budget, and map changes in strategy for the ensuing fiscal year by reviewing and, if necessary, redefining departmental mission statements and setting goals. Those goals, upon review by the Board, become the Commission s short-term strategic direction. Riverside County Transportation Commission 35

40 Chart 7 Functional Organization Chart FY 2013/14 Resource Identification and Allocation Phase Simultaneous with the short-term strategic direction phase, staff focuses on what funding sources are available and what monies are estimated as carryover from the current year. Additionally, the Commission s fund balances, that are the excess of fund assets over fund liabilities, are analyzed for available appropriation in the following fiscal year. In actuality, resource identification occurs throughout the year, but it is finalized in the upcoming fiscal year budget. Amounts to be borrowed are determined as parts of the long-term strategic planning process, but such amounts are adjusted in the annual budget to reflect more current information. Needs Assessment Phase Staff and consultants evaluate what projects and studies need to be accomplished. Project priority and sequencing set in the long-term strategic plan are the top candidates for budget submission. However, priorities may have changed due to economic necessities or political realities, resulting in projects being rescheduled by acceleration or postponement. New projects may be added or existing priorities deleted based on Commission direction. Development and Review Phase Using all the data and information gathered from the previously mentioned stages, department managers submit their desired budgets to the Finance Department. The information, along with staff and overhead allocations, is compiled into a preliminary or draft budget. After review by the Executive Director and inclusion of the desired changes, the draft budget is presented to the Board for input. Adoption and Implementation Phase The proposed budget is submitted to the Commission at its May meeting. A hearing is scheduled to allow for public comment on the proposed budget. The Commission may choose, after public hearing, to adopt the budget or to request additional information and/or changes to the budget. The budget must be adopted no later than June 15 of each year. Upon adoption by the Commission, the budget is entered into the ERP system effective July 1 for the next fiscal year. 36 Riverside County Transportation Commission

41 Budget Roles and Responsibilities Involvement in the budget permeates all staffing levels, as presented in Chart 8, at the Commission from clerical support staff to policy makers. Each program manager develops a detailed line item budget that consists of the operating and/or capital components. Those budgets, by program, are submitted to the department director for review and concurrence. The department managers submit their budgets to the Chief Financial Officer by mid-march. The Finance Department compiles the department budgets. Both the capital and operating budgets are combined into the draft budget for the entire Commission. The Chief Financial Officer and Executive Director review the entire budget for overall consistency with both the short- and long-term strategic direction of the Commission, appropriateness of funding sources for the identified projects and programs, and reasonableness of the operating and capital budget expenditures. Expenditure activities of the funds are controlled at the budgetary unit, which is the financial responsibility level (General, Measure A, Motorist Assistance, LTF, STA, TUMF, Capital Projects, and Debt Service Funds) for each function (i.e., administration, programs, intergovernmental distributions, debt service, capital outlay, and other financing uses). These functions provide the legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount). Budget-to-actual reports are available to program managers and directors on a real-time basis through the ERP system for informational and management purposes, including identification and evaluation of any significant budget variations. During the fiscal year management has the discretion to transfer budgeted amounts within the financial responsibility unit according to function or may provide support for supplemental budget appropriations requests. Supplemental budget requests require the authorization of the Commission. The Commission may take action at any monthly meeting to amend the budget. In some years, the Finance Department may compile miscellaneous requests and submit a budget appropriations adjustment at midyear to the Commission for approval. Those budget amendments approved by the Commission are incorporated into the budget, as they occur, and are reflected in the CAFR in the final budget amounts reported in the budgetary schedules. Chart 8 Staff Organization Chart FY 2013/14 Riverside County Transportation Commission 37

42 SR-91 HOV Lanes/Mary Street to 7th Street 38 Riverside County Transportation Commission

43 section 3 Fund Budgets section 3 fund budgets Intermodal Rail

44 Fund Budgets Budgetary Basis The Commission accounts for its budgeted governmental funds using the modified accrual basis of accounting and the current financial resources measurement focus. The basis of accounting is the same as the basis of budgeting. Revenues are recognized as soon as they are both measurable and available to meet current year obligations. Revenues are considered to be available when they are guaranteed as to receipt, based on expenditure of funds (i.e., government matching funds), or certain to be received within 180 days of the end of the fiscal year. Expenditures are generally recorded when a liability is incurred; however, debt service expenditures are recorded when the payment is due. Total sources and uses by governmental fund type for the FY 2013/14 budget are shown in Chart 9. Chart 9 Total Sources and Uses by Governmental Fund Type FY 2013/14 Capital Projects Funds Total Sources 47% Total Uses 39% Debt Service Fund Total Sources 8% General Fund Total Uses 3% Total Sources 1% Total Uses 2% Special Revenue Funds Total Sources 44% Total Uses 56% Fund Structure There are 29 funds (Chart 10) that account for the Commission s budgeted resources and are categorized into four governmental fund types: General fund, special revenue funds, capital projects funds, and debt service funds. All of the Commission s funds are budgeted. There are three funds reported in the General fund and 21 in the special revenue funds. Three capital projects funds are used to account for capital project expenditures financed with short- or long-term debt proceeds. In addition, the Commission has two debt service funds to account for debt-related activity. Riverside County Transportation Commission 39

45 Chart 10 Budgeted Funds Structure FY 2013/14 General Fund Special Revenue Funds Capital Projects Funds Debt Service Funds Administration 1989 Measure A Commercial Paper Sales Tax Bonds Rail Operations Planning and Programming Western County Highway Rail Capital Sales Tax Bonds Toll Revenue Bonds Toll Revenue Bonds 2009 Measure A Western County Highways Local Streets & Roads Public Transit Specialized Transit Bus Transit Rail Transit Commuter Assistance New Corridors Bond Financing Regional Arterials Economic Development Coachella Valley Highways & Regional Arterials Local Streets & Roads Specialized Transit Palo Verde Valley Local Streets & Roads FSP SAFE Local Transportation Funds State Transit Assistance TUMF General Fund Overview The General fund of the Commission is used to account for all activities not legally required or designated by Board action to be accounted for separately. For many public agencies, the General fund is the largest fund; however, it is less significant for the Commission. The Commission s largest revenue source is Measure A, a locally levied sales tax that legally must be accounted for separately in special revenue funds. In addition to Commission administration and general operations, other General fund activities include commuter rail maintenance and operations as well as planning and programming. The FY 2013/14 budget for the General fund is presented in Table 20, followed by a discussion of significant components of the budget. 40 Riverside County Transportation Commission

46 Table 20 General Fund FY Revenues FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Measure A Sales Tax $ 2,700,000 $ 2,700,000 $ 2,700,000 $ 2,800,000 $ 100,000 4% Federal Reimbursements 9, ,000 10,000 25,000 (445,000) -95% State Reimbursements 176, , ,000 1,119, ,000 23% Local Reimbursements 187, , , ,800 (400) 0% Other Revenue 47, N/A Investment Income 55,200 67,900 27,000 20,200 (47,700) -70% TOTAL Revenues 3,175,700 4,373,100 3,414,700 4,189,000 (184,100) -4% Expenditures Personnel Salary and Benefits 3,270,400 3,350,800 3,392,600 3,991, ,900 19% Professional and Support Professional Services 1,639,000 2,800,900 2,022,600 3,024, ,200 8% Support Costs 2,544,800 3,295,400 2,901,000 3,292,700 (2,700) 0% TOTAL Professional and 4,183,800 6,096,300 4,923,600 6,316, ,500 4% Support Costs Projects and Operations Program Operations - General 1,398,800 1,394,800 1,300,500 1,471,700 76,900 6% Engineering - 39,400 39,500 5,000 (34,400) -87% Operating and Capital Disbursements 18,981,200 13,411,200 9,956,900 14,400, ,800 7% Special Studies 169, , , , ,000 20% TOTAL Projects and Operations 20,549,500 15,605,400 11,546,900 16,790,700 1,185,300 8% Debt Service Principal Payments 23, N/A Interest Payments 1, N/A TOTAL Debt Service 25, N/A Capital Outlay 67, , , , , % TOTAL Expenditures 28,096,400 25,258,200 19,980,000 27,538,400 2,280,200 9% Excess (deficiency) of Revenues over (under) Expenditures (24,920,700) (20,885,100) (16,565,300) (23,349,400) (2,464,300) 12% Other Financing Sources (Uses) Transfers In 25,633,600 20,470,300 19,424,100 14,896,600 (5,573,700) -27% Transfers Out (552,000) N/A Net Financing Sources (Uses) 25,081,600 20,470,300 19,424,100 14,896,600 (5,573,700) -27% Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) 160,900 (414,800) 2,858,800 (8,452,800) (8,038,000) 1938% Beginning Fund Balance 13,524,300 13,685,200 13,685,200 16,544,000 2,858,800 21% ENDING FUND BALANCE $ 13,685,200 $ 13,270,400 $ 16,544,000 $ 8,091,200 $ (5,179,200) -39% Riverside County Transportation Commission 41

47 The sources for the General fund (Chart 11) consist of allocations from Measure A sales tax revenues; various other federal, state and local reimbursements for planning activities and commuter rail station maintenance; investment income; transfers from LTF, TUMF, and motorist assistance for administration; transfers of LTF sales tax revenues for planning, programming, and monitoring (PPM) activities; transfers of LTF Article 4 allocations for commuter rail transit operations and capital; and other transfers for rail station maintenance of park and ride facilities. Chart 11 General Fund Sources FY 2013/14 Local Reimbursements 1% State Reimbursements 6% Measure A Sales Tax 15% Transfers In 78% Measure A sales tax revenues allocated for administration of $2,800,000 has increased 4% compared to the prior year to offset increased expenditures. The administrative allocation may be adjusted at mid-year based on required expenditures, but in no event will exceed four percent (4%) of total Measure A revenues (including administrative salaries and benefits). Federal reimbursements represent funding for interns. The 95% decrease is due to the delay in grant funding for the Riverside station pedestrian improvement project. State reimbursements include STIP funds for a commuter rail feasibility study in the Coachella Valley and to fund PPM activities. Local reimbursements are from other local agencies related to a portion of the security costs at the commuter rail stations. LTF sales tax revenues from the Local Transportation Fund, a special revenue fund, are allocated and transferred to the General fund for administration, planning and programming, and rail transit operations and capital for the following purposes: Administration allocations from LTF sales tax revenues of $800,000 in FY 2013/14 have increased $100,000 compared to the prior year to offset increased expenditures. Planning allocations are set by law at three percent (3%) of estimated LTF sales tax revenues. The FY 2012/13 revised budget of $2,451,400 includes the effect of the mid-year projection adjustment. This adjustment usually includes the unapportioned carryover amount, which is not determined until after the prior year s fiscal year end, and revised revenue projections. The FY 2013/14 budget for planning allocations is $2,175,000. Transit funding for commuter rail, which is tied to sales tax revenues, is based on operating and capital needs to the extent that revenues and reserved fund balance are available. The FY 2013/14 budget includes $8,141,100 in LTF and $112,200 in Measure A commuter assistance allocations primarily to fund operating and capital contribution expenditures to SCRRA as well as rail station operations and maintenance. Allocations aggregating $2,246,200 for local jurisdictions grade separation projects were included in the FY 2012/13 General fund revised budget. The FY 2013/14 budget includes LTF allocations of $2,600,000 for grade separation projects. Administrative transfers in from TUMF and motorist assistance of $1,068,300 in FY 2013/14 increased from $936,400 in FY 2012/ Riverside County Transportation Commission

48 Chart 12 General Fund Uses FY 2013/14 Capital Outlay 2% Projects and Operations 61% Personnel Salary and Benefits 14% Professional Services 11% Support Costs 12% General fund uses are depicted in Chart 12. Personnel salary and benefits expenditures increased 19% because of the addition of two FTEs for a human resources administrator and planning and programming director; market equity adjustments resulting from a biennial classification and compensation study; 3% for cost of living adjustments offset by the employee s contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs increased 8% due to increased professional services for investment advisory services and planning and programming grant administration. Support costs are comparable to the prior year s budget. Projects and operations expenditures increased 8% because of increased special studies for a new commuter rail feasibility study in the Coachella Valley. The FY 2013/14 budget includes no allocation for rail capital contributions and $2,600,000 for grade separation projects. Capital outlay expenditures increased 114% due to information technology upgrades to the Commission s data communication room and electronic document management system. Special Revenue Funds Overview The Commission s special revenue funds are legally restricted as to use for Measure A projects and programs, TUMF projects, motorist assistance services, and funding transit operations and capital in the County. The special revenue funds budgets are summarized in Table 21, and individual budgets are presented in Tables 22 through 29 along with respective discussions. SunLine Commuter Link Riverside County Transportation Commission 43

49 Table 21 Special Revenue Funds FY Revenues FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Measure A Sales Tax $ 132,284,300 $ 138,300,000 $ 138,300,000 $ 144,200,000 $ 5,900,000 4% LTF Sales Tax 66,556,700 69,500,000 69,500,000 72,500,000 3,000,000 4% STA Sales Tax 13,487,500 14,212,500 14,212,500 13,298,000 (914,500) -6% Federal Reimbursements 25,102,000 69,699,900 39,567,200 91,620,000 21,920,100 31% State Reimbursements 21,235,300 17,007,800 20,906, ,377, ,369, % Local Reimbursements 1,821,300 2,463,500 2,311,700 2,729, ,100 11% TUMF Revenue 8,116,400 7,557,300 7,268,200 6,723,400 (833,900) -11% Other Revenue 1,382, , , ,000 (382,800) -43% Investment Income 1,967,000 2,071, ,300 1,030,400 (1,040,600) -50% TOTAL Revenues 271,952, ,694, ,416, ,978, ,283,900 45% Expenditures Personnel Salary and Benefits 2,802,200 3,620,300 3,567,600 3,957, ,400 9% Professional and Support Professional Services 9,993,200 11,875,800 11,338,100 21,615,000 9,739,200 82% Support Costs 1,183,300 2,037,900 1,685,900 2,300, ,700 13% TOTAL Professional and 11,176,500 13,913,700 13,024,000 23,915,600 10,001,900 72% Support Costs Projects and Operations Program Operations - General 9,795,400 17,485,700 12,955,100 18,635,400 1,149,700 7% Engineering 21,366,500 27,573,500 16,540,900 20,355,000 (7,218,500) -26% Construction 27,451, ,994,100 60,326, ,968, ,974,300 91% Design Build 16,285,700 29,050,000 29,050, ,750, ,700, % Right of Way/Land 53,728, ,222,700 61,595, ,707,800 60,485,100 58% Operating and Capital Disbursements 52,677,000 84,424,600 58,822, ,210,800 23,786,200 28% Special Studies 67,000 40,000 70,000 25,000 (15,000) -38% Local Streets and Roads 40,127,900 42,129,000 42,129,000 43,825,900 1,696,900 4% Regional Arterials 8,962,700 16,455,400 20,500,400 25,157,500 8,702,100 53% TOTAL Projects and Operations 230,461, ,375, ,990, ,635, ,260,800 88% Capital Outlay 142, ,000 88, , ,000 48% TOTAL Expenditures 244,582, ,151, ,669, ,866, ,715,100 87% Excess (deficiency) of Revenues over (under) Expenditures 27,370,300 (143,456,200) (25,253,000) (402,887,400) (259,431,200) 181% Other Financing Sources (Uses) Transfers In 44,150, ,092,900 90,002, ,406, ,313, % Transfers Out (61,005,500) (74,323,800) (43,906,500) (66,075,200) 8,248,600-11% Net Financing Sources (Uses) (16,854,900) 76,769,100 46,095, ,331, ,561, % Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) 10,515,400 (66,687,100) 20,842,600 (81,556,400) (14,869,300) 22% Beginning Fund Balance 463,492, ,008, ,008, ,850,600 20,842,600 4% ENDING FUND BALANCE $ 474,008,000 $ 407,320,900 $ 494,850,600 $ 413,294,200 $ 5,973,300 1% 44 Riverside County Transportation Commission

50 Measure A and LTF sales taxes, STA allocations, Western County TUMF, state budgetary allocations, and vehicle registration fees are all accounted for in the 21 special revenue funds. Federal, state, and local reimbursements and transfers in consisting principally of debt proceeds are used to supplement the Measure A sales tax revenues. Chart 13 illustrates the various special revenue fund sources. Chart 13 Special Revenue Funds Sources FY 2013/14 Transfers In 45% TUMF Revenue 1% State Reimbursements 16% Federal Reimbursements 11% Measure A Sales Tax 17% LTF Sales Tax 8% STA Sales Tax 2% The special revenue funds resources are expended on County highway, rail, regional arterial, and new corridors engineering, right of way acquisition, construction, and design build; local streets and roads maintenance, repair, and construction; economic development incentives; bond financing; bicycle and pedestrian facilities; education and incentive programs to encourage use of alternate modes of transportation; special social service transportation programs; public transit operations and capital needs; and motorist towing and freeway call box assistance. As shown in Chart 14, projects and operations expenditures represent the primary use of special revenue fund resources. Chart 14 Special Revenue Funds Uses FY 2013/14 Transfers Out 7% Personnel Salary and Benefits Professional Services 1% 2% Projects and Operations 90% Measure A Special Revenue Funds Of the special revenue funds, 16 are funded primarily with Measure A sales tax revenue, which is allocated to the three geographic areas of the County (Chart 15). The Measure A funds are comprised of two 1989 Measure A and ten 2009 Measure A Western County operating funds, three 2009 Measure A Coachella Valley operating funds, and one 2009 Measure A Palo Verde Valley operating fund. Riverside County Transportation Commission 45

51 Chart 15 Measure A Sales Tax Revenues by Geographic Area Coachella Valley 24% Western County 75% Palo Verde Valley 1% Since the 1989 Measure A terminated on June 30, 2009, the remaining 1989 Measure A Western County operating funds will be closed upon the completion of the specific highway and rail projects. With the commencement of the 2009 Measure A on July 1, 2009, the 14 operating funds will be in existence for the 30-year term. These funds account for all Measure A project and program expenditures and transfers of debt service for capital projects. The Measure A special revenue funds expend monies on capital construction and improvements to highways, commuter rail, regional arterials, new corridors, and local streets and roads. Funding is also reserved for commuter assistance, public and specialized transit, and economic development incentives programs as well as bond financing costs. The Commission is a self-help county, and, as such on major highway projects, the Commission supplements the State s spending. Upon completion of most highway projects, Caltrans takes over the maintenance and operations of the projects. All revenues from the Measure A sales tax have been pledged as security for the Commission s senior sales tax revenue bonds and commercial paper notes. Debt service on the bonds is recorded in the Sales Tax Bonds debt service fund, and most of the resources for the cash payments are provided through transfers out by the Measure A special revenue funds for the 2009 Measure A bonds. Debt service for the commercial paper notes is recorded in a capital projects fund, as the notes will be paid from 2009 Measure A sales tax revenues or retired with proceeds from sales tax revenue bonds. Western County Measure A Operating Funds The Western County Measure A Operating special revenue funds account for Western County s approximately 75% share of the Measure A sales tax. As demonstrated in Table 22, most of the Commission s reimbursements flow through these funds, since the sales tax leverages state and federal dollars. SR-91 Corridor Improvement Project 46 Riverside County Transportation Commission

52 Table 22 Western County Measure A Operating Funds FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources Measure A Sales Tax Bond Financing $ 8,066,500 $ 8,433,000 $ 8,433,000 $ 8,711,000 $ 278,000 3% Commuter Assistance 1,493,800 1,562,000 1,562,000 1,613,000 51,000 3% Economic Development Incentives 1,195,000 1,249,000 1,249,000 1,291,000 42,000 3% Highways 30,473,300 31,859,000 31,859,000 32,907,000 1,048,000 3% Local Streets and Roads 28,979,500 30,297,000 30,297,000 31,294, ,000 3% New Corridors 11,054,000 11,557,000 11,557,000 11,937, ,000 3% Public Bus Transit 2,158,500 1,593,000 1,593,000 1,645,000 52,000 3% Rail 6,094,700 6,372,000 6,372,000 6,581, ,000 3% Regional Arterials 8,962,800 9,370,000 9,370,000 9,679, ,000 3% Specialized Transit 1,904,600 2,655,000 2,655,000 2,743,000 88,000 3% Total Measure A 100,382, ,947, ,947, ,401,000 3,454,000 3% Federal Reimbursements 24,972,400 69,699,900 39,567,200 91,620,000 21,920,100 31% State Reimbursements 17,482,000 13,457,800 17,320, ,197, ,739, % Local Reimbursements 1,317,400 1,933,900 1,824,100 2,227, ,100 15% TUMF Revenue 1,826,600 1,257, , ,400 (833,900) -66% Other Revenue 1,274, , , ,000 (382,800) -43% Investment Income 1,040,700 1,392, , ,800 (771,000) -55% Transfers In 39,365, ,834,000 82,084, ,136, ,302, % TOTAL Sources 187,661, ,405, ,650, ,127, ,721, % Uses Personnel Salary and Benefits 2,515,200 3,206,500 3,163,700 3,467, ,500 8% Professional Services 8,831,400 10,755,700 10,072,500 20,154,200 9,398,500 87% Support Costs 667,600 1,149, ,800 1,420, ,600 24% Projects and Operations Program Operations - General 7,126,400 14,188,800 9,792,100 14,650, ,800 3% Engineering 17,469,900 23,621,500 12,355,000 12,982,000 (10,639,500) -45% Construction 26,059,800 96,688,100 51,080, ,484, ,796, % Design Build 16,285,700 29,050,000 29,050, ,750, ,700, % Right of Way/Land 49,420,200 92,878,400 57,126, ,980,000 62,101,600 67% Operating and Capital Disbursements 4,290,800 5,189,000 4,345,200 7,834,000 2,645,000 51% Special Studies 67,000 40,000 70,000 25,000 (15,000) -38% Local Streets and Roads 28,375,700 29,842,000 29,842,000 30,634, ,900 3% TOTAL Projects and Operations 149,095, ,497, ,661, ,340, ,843, % Capital Outlay 142, ,000 88, , ,000 48% Transfers Out 44,771,400 34,924,800 18,258,200 34,804,900 (119,900) 0% TOTAL Uses 206,023, ,775, ,048, ,544, ,768, % Excess (deficiency) of Sources over (under) Uses $ (18,361,700) $ (17,370,300) $ 21,602,300 $ (12,417,300) $ 4,953,000-29% The budgeted Western County Measure A sales tax revenues reflect a 3% increase compared to the prior year due to revised Measure A sales tax projections. Taxable sales changes between jurisdictions within the County also periodically affect the geographic allocation formula from year to year. Riverside County Transportation Commission 47

53 Federal reimbursements for highway and rail projects and the commuter assistance program, which are higher in the FY 2013/14 budget and relate to funding from the FTA, Congestion Mitigation and Air Quality (CMAQ), Surface Transportation Program (STP), and earmarks. The 31% increase in federal reimbursements is primarily attributable to the commencement of construction on the Perris Valley Line project. State reimbursements are higher by 853% compared to the FY 2012/13 budget and reflect funding from STIP and Proposition 1B funding for various highway and rail projects, particularly the I-215 and SR-91 corridor improvement projects and the Perris Valley Line. Local reimbursement increases are attributable to the commuter assistance program and Perris Valley Line and other rail projects. TUMF revenue represents reimbursements from TUMF zone funds administered by WRCOG for the 74/215 interchange construction and right of way acquisition, and the decrease in these TUMF reimbursements reflects the near completion of the project. Other revenue is related to property management lease revenues, which reflects a decrease from the prior year and is related to properties acquired in connection with the SR-91 corridor improvement project. Investment income is lower compared to the previous year s budget due to lower ending projected cash balances resulting from the commencement of construction on the Perris Valley Line and the SR-91 corridor improvement project. As in prior years, a significant portion of transfers in consists of debt proceeds of $342,227,600 from sales tax revenue bonds, toll revenue bonds, and commercial paper notes to fund 2009 Measure A Western County highway projects. Other significant transfers in include funding from STA and debt service reserve funds aggregating $11,250,000 for rail capital projects and $659,100 for regional arterials in accordance with the 2009 Measure A related to a city not eligible to receive the local street and roads funds. Personnel salary and benefits expenditures increased 8% because of the addition of two FTE allocations for a facilities administrator and capital projects manager; market equity adjustments resulting from a biennial classification and compensation study; 3% for cost of living adjustments offset by the employee s contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Measure A Western County professional services expenditures in FY 2013/14 consist of general legal services for the various programs and capital projects, specialized legal and financial advisory services related to the SR-91 and I-15 corridor improvement projects, other professional services for rail capital and commuter assistance projects, and professional fees related to the Commission s debt programs. The increase of 87% in FY 2013/14 compared to the previous year reflects investment advisory services and legal services related to the SR-91 corridor improvement project financing and rail service easement activities in preparation for the commencement of commuter rail service on the Perris Valley Line. Support costs comprise operations for the commuter assistance program and property management services. General program operations comprise the program management with outside consultants for the highway and rail capital and commuter assistance programs, permits required for capital projects, and subsidies and certificates for the commuter assistance program. Such levels of operations typically fluctuate as project activities transition to another phase. Many of the Commission s Western County rail and highway projects funded by Measure A have been in the project development phase for several years and are now near or in the construction phase. Accordingly, engineering expenditures are expected to decrease 45%, while construction and design-build activities are anticipated to increase 106% and 650%, respectively. Projects still in the engineering and/or final design phase but at a decreased level of costs include the SR-91 and I-215 corridor (southbound connector) improvements, the SR-91 HOV lanes, and 60/215 East Junction HOV lanes connectors. The 74/215 interchange and I-215 corridor improvements central segments, which commenced construction in June 2010 and March 2011, respectively, will continue through FY 2013/14. Several Western County TUMF regional arterial projects will be under construction in FY 2013/14. After many years of project development, the Perris Valley Line project is anticipated to begin construction in FY 2013/14, subject to obtaining final FTA approvals. In addition to the design and construction, other design-build activities related to the SR-91 corridor improvements during FY 2013/14 include utility and railroad agreements and the agency, legal, financial, and engineering consultant staff to support these activities. Right of way acquisition is another major project activity for which the process can be lengthy. Significant right of way acquisitions will benefit the SR-91 corridor improvement, SR-91 HOV lanes, 91/71 interchange improvement, Mid County Parkway, and various Western County TUMF regional arterial projects. Operating and capital disbursements are higher by 51% compared to the FY 2012/13 budget and relate to Western County intercity bus service and specialized transit expenditures funded by Measure A. Local streets and roads comprise turn back payments to local jurisdictions and increased as a result of the higher Measure A sales tax revenues. Capital outlay includes equipment and improvements for the rail and commuter assistance programs. 48 Riverside County Transportation Commission

54 Significant transfers out include funding for debt service payments of $16,000,000; reimbursements of $1,000,000 from the 1989 Measure A Western County rail fund to the 2009 Measure A Western County commuter assistance fund; rail operating needs of $112,200 from 2009 Measure A Western County commuter assistance fund; 1989 Measure A Western County regional arterial fund contribution of $17,000,000 for various TUMF projects; 2009 Measure A Western County local streets and roads fund allocation of $659,100 to 2009 Measure A Western County regional arterials fund; and $33,600 for CHP FSP on the I-215 corridor improvements central segment project. Coachella Valley Measure A Operating Funds These special revenue funds account for Coachella Valley s 24% share of the Measure A sales tax. Table 23 Coachella Valley Measure A Operating Funds FY Sources Measure A Sales Tax Highways & Regional Arterials FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change $ 15,499,500 $ 16,205,000 $ 16,205,000 $ 17,391,000 $ 1,186,000 7% Local Streets and Roads 10,849,700 11,343,000 11,343,000 12,173, ,000 7% Specialized Transit 4,649,900 4,861,000 4,861,000 5,217, ,000 7% Total Measure A 30,999,100 32,409,000 32,409,000 34,781,000 2,372,000 7% Federal Reimbursements 9, N/A Investment Income 63,100 12,600 41,900 14,100 1,500 12% Transfers In 284, N/A TOTAL Sources 31,356,100 32,421,600 32,450,900 34,795,100 2,373,500 7% Uses Personnel Salary and Benefits 1,300 2,700 2,000 7,500 4, % Professional Services 2,000 3,500 1,600 3,500-0% Projects and Operations Program Operations - General - 6,800 5,000 7, % Construction 99, N/A Operating and Capital 4,256,800 4,500,000 4,500,000 5,500,000 1,000,000 22% Disbursements Local Streets and Roads 10,849,700 11,343,000 11,343,000 12,173, ,000 7% Regional Arterials 8,962,700 16,455,400 20,400,400 25,000,000 8,544,600 52% TOTAL Projects and Operations 24,168,200 32,305,200 36,248,400 42,680,000 10,374,800 32% TOTAL Uses 24,171,500 32,311,400 36,252,000 42,691,000 10,379,600 32% Excess (deficiency) of Sources over (under) Uses $ 7,184,600 $ 110,200 $ (3,801,100) $ (7,895,900) $ (8,006,100) -7265% As shown in Table 23, overall budgeted Coachella Valley Measure A sales tax revenues increased 7% due to revised Measure A sales tax revenue projections. Taxable sales changes among the geographic areas also impact the geographic allocation formula from year to year. Personnel salary and benefits expenditures are minimal based on FTE allocations for coordination of debt financing activities of certain Coachella Valley projects. The Coachella Valley operating and capital disbursements represent specialized transit funds distributed to SunLine for transit operations. Local streets and roads comprise turn back payments to local jurisdictions and are directly affected by changes in Measure A sales tax revenues. Regional arterial projects are highway and regional arterial projects managed by CVAG. Debt service for CVAG highway and regional arterial and the City of Indio local streets and roads projects under advance funding agreements are reflected in projects and operations in order to be consistent with the accounting in the financial system. Riverside County Transportation Commission 49

55 Palo Verde Valley Measure A Operating Fund This special revenue fund accounts for Palo Verde Valley s 1% share of the Measure A sales tax. Table 24 Palo Verde Valley Measure A Operating Fund FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources Measure A Sales Tax Local Streets and Roads $ 902,500 $ 944,000 $ 944,000 $ 1,018,000 $ 74,000 8% TOTAL Sources 902, , ,000 1,018,000 74,000 8% Uses Projects and Operations Local Streets and Roads 902, , ,000 1,018,000 74,000 8% TOTAL Uses 902, , ,000 1,018,000 74,000 8% Excess (deficiency) of Sources over (under) Uses $ - $ - $ - $ - $ - N/A The Measure A sales tax revenues are affected by the impact of shifts in taxable sales changes on the geographic allocation formula as well as updated revenue projections. In the Palo Verde Valley as noted in Table 24, expenditures are for local streets and roads. Debt service for the City of Blythe local streets and roads projects under an advance funding agreement are reflected in projects and operations in order to be consistent with the accounting in the financial system. Non-Measure A Special Revenue Funds The non-measure A special revenue funds account for LTF disbursements; TUMF Western County project costs; motorist assistance expenditures for towing service, freeway call boxes, and IE511 system operations; and transit disbursements from STA. These activities are budgeted in the LTF, TUMF, FSP and SAFE, and STA special revenue funds, respectively. Local Transportation Fund The LTF special revenue fund derives its revenue from one quarter of one cent of the state sales tax that is returned to source and provides for funding of public transit operations in the County, bicycle and pedestrian facility projects, planning, and administration (Table 25). Table 25 Local Transportation Fund FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources LTF Sales Tax $ 66,556,700 $ 69,500,000 $ 69,500,000 $ 72,500,000 $ 3,000,000 4% Local Reimbursements 40, N/A Investment Income 317, ,800 81, ,500 (133,300) -38% TOTAL Sources 66,915,300 69,847,800 69,581,000 72,714,500 2,866,700 4% Uses Projects and Operations Operating and Capital Disbursements 42,126,100 60,630,600 47,027,100 69,274,800 8,644,200 14% TOTAL Projects and Operations 42,126,100 60,630,600 47,027,100 69,274,800 8,644,200 14% Transfers Out 14,910,500 19,382,600 18,336,400 13,716,100 (5,666,500) -29% TOTAL Uses 57,036,600 80,013,200 65,363,500 82,990,900 2,977,700 4% Excess (deficiency) of Sources over (under) Uses $ 9,878,700 $ (10,165,400) $ 4,217,500 $ (10,276,400) $ (111,000) 1% 50 Riverside County Transportation Commission

56 The LTF sales tax revenue in FY 2013/14 is projected to increase 4% from the prior year. Investment income is expected to decrease due to lower ending projected cash balances in FY 2013/14. In FY 2013/14, approximately 80% and 20% of the LTF transit expenditures of $67,439,000 are for operating and capital purposes, respectively. LTF operating allocations consist of 80% to Western County, 19% to Coachella Valley, and 1% to Palo Verde Valley public bus operators. The actual allocations will not be approved until July Other operating and capital disbursements include allocations for SB821 bicycle and pedestrian projects of $1,280,000 and planning and administration allocations of $555,800 to the County Auditor-Controller and SCAG. Transfers out include allocations to the Commission s General fund for planning and administration of $2,975,000, rail operations and station maintenance of $8,141,100, and grade separation projects of $2,600,000. Transportation Uniform Mitigation Fee Fund The TUMF fund accounts for the Commission s share of developer fee assessments on new residential and commercial developments in Western County for regional arterials and CETAP corridors (Table 26). TUMF revenue is projected to remain unchanged due to the recovering housing market. The transfers in for FY 2013/14 relate to funding from the 2009 Measure A Western County regional arterials fund of $17,000,000 for the cities of Corona, Moreno Valley, and San Jacinto and the County projects and TUMF CETAP of $15,319,500 for the city of Temecula s regional arterial projects along I-15. Table 26 Transportation Uniform Mitigation Fee Fund FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources Federal Reimbursements $ 119,800 $ - $ - $ - $ - N/A TUMF Revenue 6,289,800 6,300,000 6,300,000 6,300,000-0% Investment Income 326,500 78, ,000 60,300 (18,300) -23% Transfers In 3,701,200 19,221,900 6,880,500 32,319,500 13,097,600 68% TOTAL Sources 10,437,300 25,600,500 13,336,500 38,679,800 13,079,300 51% Uses Personnel Salary and Benefits 136, , , ,000 60,800 26% Professional Services 370, , , , ,700 73% Support Costs 300 4,300 1,900 4,100 (200) -5% Projects and Operations Program Operations - General 277, , , ,800 62,700 22% Engineering 3,896,600 3,952,000 4,185,900 7,373,000 3,421,000 87% Construction 1,292,400 29,246,000 9,246,100 41,484,100 12,238,100 42% Right of Way/Land 4,307,900 11,344,300 4,468,800 9,727,800 (1,616,500) -14% Regional Arterials , , ,500 N/A TOTAL Projects and Operations 9,773,900 44,822,400 18,223,800 59,085,200 14,262,800 32% Transfers Out 227,000 18,445,100 5,990,600 16,013,300 (2,431,800) -13% TOTAL Uses 10,507,900 63,906,100 24,969,800 76,089,400 12,183,300 19% Excess (deficiency) of Sources over (under) Uses $ (70,600) $ (38,305,600) $ (11,633,300) $ (37,409,600) $ 896,000-2% Riverside County Transportation Commission 51

57 Personnel salary and benefits have increased 26% due to the allocation of FTEs; market equity adjustments resulting from a biennial classification and compensation study; 3% for cost of living adjustments offset by employee s contributions for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional services have increased 73% due to legal services related to property acquisitions. Projects and operations costs increased 32%, as many regional arterial projects move into various stages of engineering, right of way acquisition and construction phases. Approximately 85% of the projects and operations costs are attributable to programmed regional arterial projects, including the SR-79 realignment project. The remaining 15% relates to CETAP projects such as the Mid County Parkway preliminary engineering and right of way acquisitions. Transfers out represent administrative allocations of $693,800 to the General fund and CETAP funding of $15,319,500 for two city of Temecula regional arterial projects along I-15, which are within the CETAP Winchester to Temecula corridor limits. Freeway Service Patrol Fund The FSP fund accounts for the state and local resources provided to cover the costs of servicing stranded motorists in covered service areas and construction zones by means of towing, changing tires, and providing fuel (Table 27). The State s funding share of $2,680,000 has increased 28% from the FY 2012/13 budget due to increased FSP support of construction projects. Transfers in represent Commission match funds of $916,400 from the SAFE special revenue fund and reimbursements of $33,600 from the 2009 Measure A Western County highway funds for construction FSP service related to the I-215 (central segment) corridor improvements. Table 27 Freeway Service Patrol Fund FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources State Reimbursements $ 1,988,300 $ 2,100,000 $ 2,136,400 $ 2,680,000 $ 580,000 28% Local Reimbursements 14,400 85, (85,000) -99% Other Revenue N/A Investment Income 1,600 1, ,300 (600) -32% Transfers In 800,000 1,037,000 1,037, ,000 (87,000) -8% TOTAL Sources 2,805,200 3,224,500 3,174,500 3,631, ,400 13% Uses Personnel Salary and Benefits 69,000 50,400 73,900 61,400 11,000 22% Professional Services 33,800 37,000 56,000 51,000 14,000 38% Support Costs 41,200 59,900 57,200 53,200 (6,700) -11% Projects and Operations Program Operations - General 2,314,100 2,900,000 2,830,000 3,530, ,000 22% TOTAL Projects and Operations 2,314,100 2,900,000 2,830,000 3,530, ,000 22% Transfers Out 116, , , ,400 39,600 23% TOTAL Uses 2,574,200 3,222,100 3,191,900 3,910, ,900 21% Excess (deficiency) of Sources over (under) Uses $ 231,000 $ 2,400 $ (17,400) $ (278,100) $ (280,500) % Personnel salary and benefits have increased 22% due to the allocation of FTEs; market equity adjustments resulting from the biennial classification and compensation study; 3% for cost of living adjustments offset by employee s contributions for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional services have increased 38% from the previous year due to a FSP benefit analysis planned in FY 2013/14. Support costs are comparable to the prior year s budget. Operating costs for towing services in FY 2013/14 are higher than FY 2012/13 budget due to increased FSP support on construction projects. Transfers out are administrative allocations to the General fund. Service Authority for Freeway Emergencies Fund The SAFE fund accounts for the $1 per vehicle registration fee levied by the State on all registered vehicles within the County. It funds the installation and implementation of emergency aid call boxes located strategically on the highways throughout the County as well as the operations of the IE511 system (Table 28). 52 Riverside County Transportation Commission

58 Table 28 Service Authority for Freeway Emergencies Fund FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources State Reimbursements $ 1,765,000 $ 1,450,000 $ 1,450,000 $ 1,500,000 $ 50,000 3% Local Reimbursements 448, , , ,000 58,000 13% Other Revenue 106, N/A Investment Income 25,600 21,100 13,000 11,700 (9,400) -45% TOTAL Sources 2,346,100 1,915,100 1,950,000 2,013,700 98,600 5% Uses Personnel Salary and Benefits 80, , , , % Professional Services 755, , , ,500 35,000 5% Support Costs 474, , , ,700 (2,000) 0% Projects and Operations Program Operations - General 77, , , ,000 (5,000) -5% Construction - 60, (60,000) -100% TOTAL Projects and Operations 77, , , ,000 (65,000) -38% Transfers Out 980,500 1,146,500 1,146,500 1,076,500 (70,000) -6% TOTAL Uses 2,368,600 2,947,200 2,857,000 2,845,500 (101,700) -3% Excess (deficiency) of Sources over (under) Uses $ (22,500) $ (1,032,100) $ (907,000) $ (831,800) $200,300-19% Local reimbursements represent the pass-through funds from SANBAG as its share of the IE511 system operating costs and the recoveries from call box knockdowns, which service is provided by a collection agency. Personnel and support costs are comparable to the FY 2012/13 budget. Professional services costs have increased slightly due to the IE511 website updates. Support costs are comparable to the prior year s budget. Projects and operations costs decreased as a result of the exclusion of the IE511 Caltrans detection expansion project at the 60/91/215 interchange in FY 2013/14. The transfers out reflect a matching contribution to the State s contribution for towing services of $916,400 to the FSP special revenue fund and administrative allocations to the General fund of $160,100. State Transit Assistance Fund The STA fund accounts for the state budgetary allocation of gas tax revenues designated for rail and bus transit operations and capital requirements (Table 29). The allocation is based on estimates of diesel fuel sales tax revenues provided by the Controller of the State of California, subject to an annual state budget appropriation. Riverside County Transportation Commission 53

59 Table 29 State Transit Assistance Fund FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Sources STA Sales Tax $ 13,487,500 $ 14,212,500 $ 14,212,500 $ 13,298,000 $ (914,500) -6% Investment Income 191, , , ,700 (109,500) -51% TOTAL Sources 13,679,200 14,428,700 14,331,600 13,404,700 (1,024,000) -7% Uses Projects and Operations Operating and Capital 2,003,300 14,105,000 2,950,000 25,602,000 11,497,000 82% Disbursements TOTAL Projects and Operations 2,003,300 14,105,000 2,950,000 25,602,000 11,497,000 82% Transfers Out - 250, ,000-0% TOTAL Uses 2,003,300 14,355,000 2,950,000 25,852,000 11,497,000 80% Excess (deficiency) of Sources over (under) Uses $ 11,675,900 $ 73,700 $ 11,381,600 $ (12,447,300) $ (12,521,000) % Investment income is expected to decrease because of lower cash balances due to increased capital disbursements to operators. The operating and capital disbursements consist of allocations for bus capital purposes. In FY 2013/14, 68% of the allocations are in Western County, 31% in Coachella Valley, and 1% in Palo Verde Valley. Transfers out represent rail capital allocations to the 1989 Measure A Western County rail fund. Similar to the LTF allocations, the actual STA allocations will not be approved until July Freeway Service Patrol 54 Riverside County Transportation Commission

60 Capital Projects Funds Overview The capital projects funds account for all debt proceeds from commercial paper notes and sales tax and toll revenue bonds (Table 30). Table 30 - Capital Projects Funds FY Revenues FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Investment Income $ 2,130,500 $ 5,103,600 $ 24,000 $ 1,877,700 $ (3,225,900) -63% TOTAL Revenues 2,130,500 5,103,600 24,000 1,877,700 (3,225,900) -63% Expenditures Professional and Support Professional Services ,248,100 1,248,100 N/A TOTAL Professional and Support Costs Projects and Operations ,248,100 1,248,100 N/A Engineering - 319, (319,100) -100% Construction - - 1,301, N/A Right of Way/Land - 8,024,100 3,121,000 - (8,024,100) -100% TOTAL Projects and Operations - 8,343,200 4,422,100 - (8,343,200) -100% Debt Service Principal Payments 40,000, ,000,000-80,000,000 (40,000,000) -33% Interest Payments 3, ,000 10, ,000 (333,000) -77% Cost of Issuance ,500,000 7,500,000 N/A TOTAL Debt Service 40,003, ,433,000 10,600 87,600,000 (32,833,000) -27% TOTAL Expenditures 40,003, ,776,200 4,432,700 88,848,100 (39,928,100) -31% Excess (deficiency) of Revenues over (under) Expenditures (37,873,300) (123,672,600) (4,408,700) (86,970,400) 36,702,200-30% Other Financing Sources (Uses) Transfers In 19,177, ,889, ,900 80,000,000 (56,889,600) -42% Transfers Out (42,962,100) (253,144,800) (81,629,600) (560,250,600) (307,105,800) 121% Debt Proceeds 40,000,000 1,220,172,000 80,000, ,774,000 (519,398,000) -43% TIFIA Loan Proceeds ,000, ,000,000 N/A Net Financing Sources (Uses) 16,215,200 1,103,916,800 (1,519,700) 330,523,400 (773,393,400) -70% Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (21,658,100) 980,244,200 (5,928,400) 243,553,000 (736,691,200) -75% Beginning Fund Balance 58,453,600 36,795,500 36,795,500 30,867,100 (5,928,400) -16% ENDING FUND BALANCE $ 36,795,500 $ 1,017,039,700 $ 30,867,100 $ 274,420,100 $ (742,619,600) -73% Riverside County Transportation Commission 55

61 As illustrated in the following charts, capital projects funds sources primarily consist of debt proceeds (Chart 16), and the significant uses of the capital projects funds are transfers out (Chart 17). In 2005, a commercial paper program was established to advance project development and land and right of way acquisition related to the 2009 Measure A projects. In FY 2012/13, the Commission expects to issue $80,000,000 in commercial paper notes prior to the SR-91 corridor improvement project financing, which is expected at the beginning of FY 2013/14. The commercial paper program anticipates the issuance of sales tax revenue bonds to refinance the outstanding commercial paper notes in FY 2013/14. During FY 2013/14, the Commission expects the issuance of $20,000,000 in commercial paper notes. In connection with the financing of the SR-91 corridor improvement project in early FY 2013/14, the Commission anticipates the issuance of $404,646,000 in sales tax revenue bonds (2013 Sales Tax Bonds), including $61,089,000 in bond premiums, and $207,512,000 in toll revenue bonds, including $7,527,000 in bond premiums, as well as execution of a federal TIFIA loan, from which $110,000,000 is expected to be drawn down in FY 2013/14. Chart 16 Capital Projects Funds Sources FY 2013/14 Transfers In 9% Debt Proceeds 91% Debt proceeds represent the issuance of $20 million in commercial paper notes for the I-15 and I-215 corridor improvement projects as well as the proceeds of the sales tax and toll revenue bonds and the federal TIFIA loan drawdown for the SR-91 corridor improvement project. Chart 17 Capital Projects Funds Uses FY 2013/14 Transfers Out 86% Debt Service 14% In FY 2013/14, commercial paper and sales tax and toll revenue bond proceeds of $342,227,600 will be transferred out to the 2009 Measure A Western County Highway special revenue funds for capital projects, particularly the I-15, I-215, and SR-91 corridor improvement projects; $80,000,000 of 2013 sales tax revenue bond proceeds will be transferred out to retire outstanding commercial paper notes; $90,362,000 of 2013 sales tax revenue bond proceeds will be transferred out to the Debt Service fund to pay debt service payments during the construction of the SR-91 corridor improvement project; and $47,661,000 of 2013 toll revenue bond proceeds will be transferred out to the debt service funds to fund a debt service reserve for and to pay debt service payments during the construction of the SR-91 corridor improvement project. 56 Riverside County Transportation Commission

62 Debt Service Funds Overview Under the 2009 Measure A program, as amended by Measure K in November 2010, the Commission has the authority to issue sales tax revenue bonds subject to a debt limitation of $975,000,000. The debt service fund of the Commission is used to account for all activities related to the sales tax revenue bonds debt incurred by the Commission (Table 31). The Commission s largest single expenditure is debt service. The debt agreements require the trustees to hold all debt proceeds, a portion of the sales tax revenues, and, upon commencement of toll operations in FY 2016/17, the toll revenues from the RCTC 91 Express Lanes, and to segregate all funds into separate amounts. These monies are included in the restricted investments held by trustee in the capital projects funds and the debt service funds. Under the sales tax indentures, the Commission may use sales tax revenues for any lawful purpose related to the Riverside County TIP after the trustee has satisfied debt service requirements. Under the toll indentures, which include the TIFIA loan, the use of toll revenues is prescribed by a flow of funds to be administered by the trustee. In order to advance project development activities, the Commission established a commercial paper program in Periodically a portion of the commercial paper notes issued has been retired with sales tax revenue bonds including those bonds issued in 2009 (2009 Bonds) and 2010 (2010 Bonds). Table 31 Debt Service Funds FY FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Revenues Federal Reimbursements $ 2,985,700 $ 2,982,000 $ 1,372,000 $ 2,744,000 $ (238,000) -8% Investment Income 155,600 23,400 3,078,000 1,098,200 1,074, % TOTAL Revenues 3,141,300 3,005,400 4,450,000 3,842, ,800 28% Expenditures Professional Services , ,300 N/A Debt Service Principal Payments 6,500,000 6,800,000 6,800,000 7,100, ,000 4% Interest Payments 15,003,600 16,180,000 16,180,000 41,012,300 24,832, % TOTAL Debt Service 21,503,600 22,980,000 22,980,000 48,112,300 25,132, % TOTAL Expenditures 21,503,600 22,980,000 22,980,000 48,900,600 25,920, % Excess (deficiency) of Revenues over (under) Expenditures (18,362,300) (19,974,600) (18,530,000) (45,058,400) (25,083,800) 126% Other Financing Sources (Uses) Transfers In 35,015,700 19,665,800 16,000, ,023, ,357, % Transfers Out (19,457,600) (650,000) - (10,000,000) (9,350,000) 1438% Net Financing Sources (Uses) 15,558,100 19,015,800 16,000, ,023, ,007, % Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (2,804,200) (958,800) (2,530,000) 98,964,600 99,923, % Beginning Fund Balance 53,894,100 51,089,900 51,089,900 48,559,900 (2,530,000) -5% ENDING FUND BALANCE $ 51,089,900 $ 50,131,100 $ 48,559,900 $ 147,524,500 $ 97,393, % Reimbursements consist of federal cash subsidy payments related to the 2010 Series B designated as build America bonds (BABs). The BABs subsidy payments reflect a reduction due to federal sequestration cuts. Investment income is significantly higher than the previous fiscal year due to higher cash reserve balances resulting from the issuance of sales tax and toll revenue bonds in FY 2013/14. Transfers in represent the primary sources of funding for the debt service funds (Chart 18) and consist of sales tax and toll revenue bond proceeds from the capital projects funds and Measure A funds from the 2009 Measure A Western County Highways and Bond Financing special revenue funds. Riverside County Transportation Commission 57

63 Chart 18 Debt Service Funds Sources FY 2013/14 Federal Reimbursements 2% Transfers In 98% Debt Service fund uses (Chart 19) consist of debt service on the sales tax and toll revenue bonds as well as transfers out of $10,000,000 from excess 1989 Measure A debt reserves to the 1989 Measure A Western County Rail Capital special revenue fund for a San Jacinto Branch Line (SJBL) rail project. Chart 19 Debt Service Funds Uses FY 2013/14 Professional Services 1% Debt Service 82% Transfers Out 17% PVL Metrolink Train 58 Riverside County Transportation Commission

64 section 4 Revenues and Other Sources section 4 Revenues and Other Sources 60/215 East Junction Project

65 Revenues and Other Sources Total revenues and other sources are budgeted at $1,921,987,400, and consist of Measure A sales tax of $147,000,000, (or 8% of total sources); LTF sales tax of $72,500,000 (or 4% of total sources); STA revenues of $13,298,000 (or less than 1% of total sources); federal revenues of $94,389,000 (or 5% of total sources); state revenues, including vehicle registration fees, of $133,496,300 (or 7% of total sources); TUMF of $6,723,400 (or less than 1% of total sources); debt proceeds of $810,774,000 (or 42% of total sources); transfers in of $636,325,800 (or 33% of total sources) and other revenues of $7,480,900 (or less than 1% of total sources). The specific revenue funding sources are shown in Table 32. Table 32 Revenues and Other Sources FY 2013/14 Sales Tax Department/Program Measure A LTF STA Federal State Local/Other Funding Sources Management Services $ 2,800,000 $ - $ - $ - $ - $ 22,800 $ 2,822,800 MEASURE A AND OTHER CAPITAL PROGRAMS Bond Financing 8,711, ,600 8,722,600 CETAP ,192,500 3,192,500 Economic Development 1,291, ,300 1,300,300 Highways 50,298, ,537,600 79,283,000 4,212, ,331,500 Local Streets and Roads 44,485, ,485,000 New Corridors 11,937, ,400 12,072,400 Rail 6,581, ,100,000 48,914, , ,101,400 Regional Arterials 9,679, ,227,200 12,906,200 REGIONAL PROGRAMS Public and Specialized 9,605,000 72,500,000 13,298,000 43, ,100 95,790,500 Transit Planning and ,000 3, ,700 Programming Rail Station Maintenance/ , , , ,500 Operations Commuter Assistance 1,613, ,000-1,804,600 4,100,600 Motorist Assistance ,180, ,600 4,695,600 OTHER FINANCING SOURCES Debt Proceeds ,774, ,774,000 Transfers In ,325, ,325,800 TOTAL Funding Sources $147,000,000 $ 72,500,000 $ 13,298,000 $ 94,389,000 $133,496,300 $1,461,304,100 $1,921,987,400 Revenues Definitions and Background Measure A: Measure A is a one-half of one percent transactions and use tax that was first approved by Riverside County voters in 1988 and expired on June 30, 2009 after a 20-year term. On November 5, 2002, the voters of Riverside County approved the renewal of Measure A through The 2009 Measure A is expected to raise more than $6.8 billion (in nominal dollars) during its lifespan. The amount raised by the Measure A levy has increased as the County and its economic base have grown during the past two decades, peaking in FY 2005/06 at $157 million. As a result of an economic slowdown, Measure A revenues decreased the subsequent four years but have since stabilized. Measure A revenues are projected to approximate $141,000,000 and $147,000,000 in FY 2012/13 and FY 2013/14, respectively. Riverside County Transportation Commission 59

66 Measure A requires that all sales taxes collected may only be used for transportation purposes including administration and the construction, capital acquisition, maintenance, and operation of streets, roads, highways, including state highways and public transit systems and for related purposes. These purposes include expenditures for planning, environmental reviews, engineering and design costs, and related right of way acquisition. The Commission historically has obtained and updated Measure A revenue projections through a consultant for budget and strategic project planning purposes. The most recent economic forecast was completed in December 2012, and the Commission s sales tax services consultant provides Measure A revenue projections in connection with its quarterly sales tax analysis. Measure A revenue projections, based on such updates and other factors, for the next five fiscal years are presented in Chart 20 below. Chart 20 Forecasted Measure A Sales Tax Revenues $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $ The following additional assumptions were used in the development of the Commission s revenue forecast for FY 2013/14: The Inland Empire economy will continue its recovery through FY 2013/14. The State does not change mix of items subject to the sales tax from what has been included historically. The relative sales and property tax rates of Riverside and surrounding counties do not change from historical levels. Internet sales will have minimal impact on revenue. The Measure A sales tax revenue projections are considered in the Western Riverside County Delivery Plan financing strategy. Geographic Allocation - Riverside County is comprised of three geographic areas: Western County, Coachella Valley, and Palo Verde Valley. The percentage of Measure A revenues allocated to each of these areas based on return to source is approximately 75% for Western County, 24% for Coachella Valley, and 1% for Palo Verde Valley (Chart 21). These percentages will experience some variations from year to year based on changes in levels of taxable sales among the geographic areas. Chart 21 Geographic Allocation of Measure A Revenues Coachella Valley 24% Palo Verde Valley 1% Western County 75% 60 Riverside County Transportation Commission

67 Program Allocation - The 2009 Measure A TIP defines the manner in which the sales tax revenues are to be spent, as presented in the Table 33. In Western County, public transit includes funding for specialized transit, commuter rail, intercity bus service, and commuter assistance. For the Coachella Valley, public transit includes specialized transit and public bus services. Table 33 - Program Allocation of 2009 Measure A Revenues Western County Bond Financing - 8% Economic Development Incentives - 1% Highways - 30% Local Streets and Roads - 29% New Corridors - 11% Public Transit - 12% Regional Arterials - 9% Coachella Valley Highways and Regional Arterials - 50% Local Streets and Roads - 35% Public Transit - 15% Palo Verde Valley Local Streets and Roads - 100% Local streets and roads allocations to the local jurisdictions within each geographic area are based on population (in Western County and Palo Verde Valley) or dwelling units (in Coachella Valley) and taxable sales. Based on the projected Measure A sales tax revenues of $147,000,000 for FY 2013/14, the geographic and program allocations are presented in Table 34. Table 34 - Geographic Allocation of Measure A Revenues by Program FY 2013/14 Program Administration Western County Coachella Valley Palo Verde Valley Total Administration $ 2,800,000 $ - $ - $ - $ 2,800,000 Bond Financing - 8,711, ,711,000 Economic Development Incentives - 1,291, ,291,000 Highways - 32,907, ,907,000 Highways and Regional Arterials ,391,000-17,391,000 Local Streets and Roads - 31,294,000 12,173,000 1,018,000 44,485,000 New Corridors - 11,937, ,937,000 Public Transit - 12,582,000 5,217,000-17,799,000 Regional Arterials - 9,679, ,679,000 TOTAL $ 2,800,000 $ 108,401,000 $ 34,781,000 $ 1,018,000 $ 147,000,000 Local Transportation Fund: LTF, established in state law by the TDA, is funded through a one-quarter of one cent of the State s 8.00% sales tax. The intent of the legislation was to provide a dependable revenue stream for public transportation operations. Based upon an annual projection of LTF sales taxes that considers economic forecast revenue projections prepared by a consultant, local economic factors, and monthly receipt trends, the vast majority of LTF revenue in the County is allocated to the eight public transit operators, including the Commission for its share of Metrolink operations costs. Much like Measure A revenue, LTF had increased with the growth of the County and its economy until the recent economic recession and has stabilized in recent years. Revenues received from LTF are allocated for regional and local transportation planning, program administration, SB821 bicycle and pedestrian facilities projects, public bus transit, and rail transit, including the Commission for its share related to commuter rail operations in Western County. The Commission administers these funds on behalf of the County in a special revenue fund. Riverside County Transportation Commission 61

68 State Transit Assistance: STA provides additional TDA state funding of transit operations and capital for urban counties, including the County s eight public transit operators. Due to the State s budgetary issues, it suspended the STA allocations for FY 2009/10 and FY 2010/11; however, allocations were made and funded at the end of FY 2009/10. Sales taxes on gasoline and diesel fuels have historically generated the STA funding; however, recent legislation eliminated the tax on gasoline. State Transportation Improvement Program: Administered by Caltrans, the STIP is funded through state and federal gas tax dollars and is California s primary transportation fund. Dollars are allocated to each county based on a formula that takes into consideration population and highway centerline miles. Actual programming decisions for 75% of STIP dollars are made by local transportation agencies such as the Commission. STIP reimbursement estimates are based on budgeted expenditures for specific projects with STIP allocations approved by the CTC. Proposition 1B: In November 2006, the voters in California approved Proposition 1B, which funds various transportation programs from bonds issued by the State. Programs that are funded include Corridor Mobility Improvement Account (CMIA), transit capital, STIP supplement, and Trade Corridors Improvement Fund (TCIF). CMIA and transit capital revenues for certain highway and rail projects nominated by the Commission and approved by the CTC are included in state reimbursement revenues. Department of Motor Vehicles (DMV) Registration Fees: State law allows county SAFE agencies to impose a $1 surcharge on vehicle registrations within the County to pay for call box purchases and operations; excess SAFE revenues may be used for 511 operations and as a match for FSP operations. The call boxes enable motorists to summon help should they encounter mechanical or emergency problems while on the road, whereas the IE511 system provides real-time traffic and transit trip information available via the internet or telephone. Caltrans Freeway Service Patrol Allocations: Caltrans is the primary sponsor of the FSP and provides the majority of funding for the program, including towing services in construction zones. The State provides nearly 80% of the funding for the FSP program based on population, freeway miles, and level of congestion throughout the State. The Commission administers and implements the program along with the CHP and Caltrans. Congestion Mitigation and Air Quality: The CMAQ program is federally funded and is targeted for transportation improvements in areas with air quality problems. This program pays for improvements that reduce congestion while improving air quality. The Commission has also used CMAQ dollars to include commuter assistance programs, signal interconnects, HOV lanes, and transit projects. CMAQ reimbursement estimates are based on budgeted expenditures for specific projects with CMAQ allocations. Federal Transit Administration: FTA funding is generally allocated annually by the federal government to urbanized areas and is based on calculated miles of service. On a reimbursement basis, the federal government provides funding for qualified capital investments in rail facilities, track, and vehicles. Transportation Uniform Mitigation Fee: In connection with the 2009 Measure A, the TUMF program was established in the Western County to provide additional funding for regional arterial projects. TUMF is administered by WRCOG. As a result of a MOU with WRCOG, the Commission will receive 48.7% of the TUMF revenues, which are divided equally between the regional arterial and CETAP programs. TUMF revenues maintained by WRCOG are allocated for regional arterial zone improvements and regional transit facilities. TUMF revenue estimates are based on monthly receipt trends and consideration of local housing and commercial construction activity in the County. Rail and Highway Licenses: The Commission owns parcels of land and right of way for highway, rail, and regional arterial projects in selected areas throughout the County. The ownership provides licensing and leasing opportunities for fiberoptic cable, advertising signs, and business tenants. The amount of funding received from the licenses and leases provides revenue to partially support the cost of owning and maintaining the Commission s land and facilities. Investment Income: The Commission has established a prudent investment policy for cash on hand that is intended to maximize return while providing absolute safeguards on principal and liquidity, as noted in Section 1. Interest earnings on the State and County investment pools are estimated at an interest rate of.25%. The earnings on funds held by the trustee for debt service and projects are assumed to be at.75%. 62 Riverside County Transportation Commission

69 Program Revenues and Other Sources Revenues and other financing sources for FY 2013/14 are allocated to the various Commission programs as follows: Management Services The primary funding sources for management services are Measure A allocations of $2,800,000 as well as LTF allocation transfers in of $800,000 and administration funding transfers in of $1,068,300 from TUMF, SAFE, and FSP. Other revenues include $12,000 for small business forum activities. Interest revenues in FY 2013/14 are $10,800. Bond Financing Measure A Western County revenues of $8,711,000 will be used to support bond financing costs. Interest revenues are $11,600. CETAP The Western County CETAP program will receive $3,150,000 from TUMF for development of new CETAP corridors. Additionally, other local revenues include $42,500 representing investment income. Economic Development In order to attract commercial and industrial development and jobs to locate in the Western County area, Measure A Western County revenues of $1,291,000 will be used to create an infrastructure improvement bank to improve and construct interchanges, provide public transit linkages or stations, and make other improvements to the transportation system. Interest earnings are $9,300. Highways Funding for the highway program includes 2009 Measure A sales tax revenues of $50,298,000 for Western County highways and Coachella Valley highways and regional arterials programs. The 2009 Measure A Western County sales tax revenues will be used primarily for the SR-91, I-15, and I-215 corridor improvements. Unexpended 1989 Measure A Western County revenues from prior years will be used on remaining projects such as SR-74 widening from I-15 to 7th Street and curve realignment, SR-91 HOV lanes, 60/215 East Junction HOV lane connectors as well as for pass-through funding to the city of Riverside for interchange improvements for SR-91 at La Sierra Avenue. Federal funds for highway projects include $400,000 in demonstration funds for the 74/215 interchange, $3,412,000 in CMAQ funds for the SR-91 HOV lanes, $3,266,000 in CMAQ funds for the SR-74 curve widening, $1,864,000 in STP funds for the I-215/Blaine Street project, $4,400 in STP funds for the 60/215 East Junction HOV lane connectors, and $6,847,200 in demonstration funds for the 91/71 interchange improvements. Other federal funds include $2,744,000 for BABs subsidy payments related to the 2010 Bonds. State funds include STIP funding totaling $23,595,000 will be used for the I-215 corridor improvements. The I-215 corridor improvements on the central segment will receive $18,688,000 in Proposition 1B CMIA funds, and the SR-91 corridor improvement project will receive $37,000,000 in Proposition 1B State Local Partnership Program (SLPP) funds. Additional local funding includes $423,400 in TUMF zone reimbursements from WRCOG for the 74/215 interchange, $450,000 in lease revenues, $60,000 in carpool violations, $34,000 in local property management revenues, and interest revenue of $3,245,500. In FY 2013/14, the Commission anticipates the issuance of $20,000,000 in commercial paper notes to fund the I-15 and I-215 corridor improvement projects and $404,646,000, including bond premium of $61,089,000, in sales tax revenue bonds; $207,512,000, including bond premium of $7,527,000, in toll revenue bonds; and $110,000,000 in a federal TIFIA loan drawdown to fund the SR-91 corridor improvement project. Transfers in include $342,227,600 in sales tax and toll revenue bond and commercial paper proceeds to fund the 2009 Measure A projects; $16,000,000 to the Sales Tax Bonds debt service fund for Measure A Western County and Coachella Valley highways debt service; $80,000,000 of sales tax revenue bond proceeds to retire commercial paper notes; $90,362,000 of sales tax revenue bond proceeds to fund capitalized interest payments in the debt service fund; and $47,661,000 of toll revenue bond proceeds to fund a debt service reserve and capitalized interest payments in the Toll Revenue Bonds debt service fund. Riverside County Transportation Commission 63

70 Local Streets and Roads Measure A allocations of $44,485,000 for the local streets and roads program are distributed to the cities and the County for local street repairs, maintenance, and construction. New Corridors To leverage local, state, and federal funding for four new transportation corridors identified through CETAP, Measure A Western County revenues of $11,937,000 will be available for environmental clearance, right of way acquisition, and construction of these new corridors. Interest revenues of $135,400 are included in local revenues. Rail Unexpended 1989 Measure A Western County revenues will be used primarily for the Perris Valley Line and other rail capital projects. The 2009 Measure A Western County s public transit program allocated $6,581,000 for rail. Federal FTA funding for the Perris Valley Line project consists of $51,200,000 from Small Starts and $23,900,000 from CMAQ. State Proposition 1B transit allocations of $4,574,300 will fund the Perris Transit Center, station security, and station rehabilitation projects. STIP revenues of $43,240,000 will fund the Perris Valley Line. State Transportation Enhancements (TE) revenues of $1,100,000 will fund the Riverside station pedestrian improvement project. Local revenues include investment income of $94,100, reimbursements of $353,000 related to the Perris Transit Center, and property management revenues of $59,000. Transfers in of $250,000 and $10,000,000 from STA and excess reserves, respectively, are for a rail project. Regional Arterials The Western County regional arterial program will receive funds from Measure A and TUMF in the amounts of $9,679,000 and $3,150,000, respectively. The new TUMF revenues along with unexpended TUMF revenues from prior years will be the primary source of funding TUMF regional arterial projects, including the SR-79 realignment. Other local revenues also consist of investment income of $77,200. Transfers in consist of $32,319,500 from 2009 Measure A Western County regional arterials and TUMF CETAP as a match for TUMF regional arterial projects and $659,100 from 2009 Measure A Western County local streets and roads, in accordance with the 2009 Measure A, related to a city not eligible to receive those funds. Public and Specialized Transit LTF sales tax revenues of $72,500,000 are allocated primarily for public bus and rail transit operations and capital in the County. A small portion of these revenues is used for LTF planning and administration allocations as well as SB821 bicycle and pedestrian facilities grants. STA allocations of $13,298,000 are allocated to the County s public transit operators. For the FY 2013/14 budget, unexpended LTF and STA revenues from prior years will also be used to fund transit operations as well as bicycle and pedestrian facilities grants. Under the 2009 Measure A, public transit funding of $9,605,000 has been allocated for Western County specialized transit and intercity bus services and Coachella Valley specialized and public transit services. Federal revenues consist of $43,400 in FTA Job Access and Reverse Commute (JARC) Section 5316 funding. Local revenues represent investment income of $344,100. Planning and Programming Transportation planning studies are funded with a LTF off-the-top allocation transfer in of $2,175,000, or three percent of estimated LTF revenues. A LTF allocation transfer in of $2,600,000 will fund grade separation projects for the cities of Corona, Riverside and Jurupa Valley and the County. STIP in the amount of $819,000 will fund PPM activities of the Commission and CVAG. Local revenues consist of investment income of $3,700. Rail Station Maintenance and Operations Rail operations, which include Metrolink operating and capital contributions, station maintenance, and support, will be funded with LTF allocation transfers in of $8,253,300. A federal grant of $25,000 will fund interns. Proposition 1B will fund $300,000 for a commuter rail feasibility study in the Coachella Valley. In addition to interest revenues of $5,700, local revenues include $200,000 in reimbursements primarily from SCRRA for security costs, $5,000 for Metrolink violator citations, and $7,800 for miscellaneous vending machine revenues. 64 Riverside County Transportation Commission

71 Commuter Assistance The Commuter Assistance program will receive funding of $1,613,000 from 2009 Measure A Western County public transit to assist in implementing services to commuters and employers in promoting use of alternate modes of transportation in Western County. The Commission will also receive CMAQ funds of $648,000 to support the commuter assistance program and JARC revenues of $35,000 for a ridesharing project in the Coachella Valley. Local revenues consist of other agency reimbursements of $1,771,000 for support of the San Bernardino commuter assistance program and regional ridematching as well as investment income of $33,600. The 1989 Measure A Western County rail fund will transfer $1,000,000 to the 2009 Measure A Western County commuter assistance fund for reimbursement of the park and ride facility at the Perris Transit Center. Motorist Assistance SAFE is funded from $1,500,000 in revenues received through DMV registration fees, while Caltrans will allocate $1,700,000 in State highway account funds to cover regular FSP services and $980,000 for special FSP services required for construction projects. The Commission will also receive local revenues of $492,000 to support SANBAG s share of the IE511 system operations. Local revenues represent investment income of $13,000 and cost recoveries of $10,600 from responsible parties related to call box knockdowns. The State s FSP contribution is matched with an operating transfer in from SAFE of $916,400; the 2009 Measure A Western County highway program will transfer in $33,600 for construction FSP services related to the I-215 corridor (central segment) improvements project. Specialized Transit Riverside County Transportation Commission 65

72 Riverside Transit Agency Bus 66 Riverside County Transportation Commission

73 section 5 Commission Debt Columbia Grade Separation section 5 commission debt

74 Commission Debt The Commission s current debt under the 2009 Measure A has been incurred for highway, regional arterial, economic development, and local streets and roads projects for which title usually vests or, upon completion, will vest with Caltrans or local jurisdictions for ongoing operations and maintenance. Future Measure A sales taxes are pledged to cover Measure A debt service payments on the sales tax revenue bonds and commercial paper notes. In FY 2013/14 the Commission will issue additional sales tax bonds as well as issue toll revenue bonds (2013 Toll Bonds) and obtain a federal TIFIA loan to be repaid from toll revenues generated on the RCTC 91 Express Lanes, which is part of the SR-91 corridor improvement project. The Commission will also issue commercial paper notes for the I-15 and I-215 corridor improvement projects. Since the financed projects are not assets of the Commission for which the Commission will have operating responsibilities, except for the intangible rights to operate the RCTC 91 Express Lanes, future operating costs related to these projects cannot be determined and are not applicable. However, for toll and rail assets, operating budget impacts are considered in future project development. Table 35 presents a summary of the anticipated changes in the Commission s debt during FY 2013/14. Table 35 - changes in commission debt Projected Balance July 1, 2013 Additions Accretion (Reductions) Projected Balance June 30, 2014 Commercial Paper $ 80,000,000 $ 20,000,000 $ (80,000,000) $ 20,000, Sales Tax Bonds 161,400,000 - (7,100,000) 154,300, Sales Tax Bonds 150,000, ,000, Sales Tax Bonds - 404,646, ,646, Toll Bonds - 207,512,000 1,053, ,565,000 TIFIA Loan - 110,000, ,000,000 TOTAL $ 391,400,000 $ 742,158,000 $ (86,047,000) $ 1,047,511,000 The 2013 Sales Tax Bonds and 2013 Toll Bonds are expected to be issued at premiums of $61,089,000 and $7,527,000, respectively. Commercial Paper In March 2005 the Commission established a commercial paper program to advance project development and land and right of way acquisition under the 2009 Measure A TIP. In October 2010 the Commission reduced the commercial paper program to $120,000,000. Maturities of commercial paper notes are rolled over to new issuances of commercial paper. Regarding the commercial paper notes, the Commission currently maintains a P-1 and an A-1+ rating from Moody s Investors Service (Moody s) and Standard and Poor s Rating Service (S&P), respectively. Interest payments are made from available commercial paper proceeds or sales tax revenues. The Commission projects the issuance of $80,000,000 in commercial paper notes in FY 2012/13; those notes will be retired in July 2013 with the issuance of the 2013 Sales Tax Bonds. The Commission anticipates the issuance of $20,000,000 in commercial paper notes during FY 2013/14 for capital project funding for a projected outstanding amount of $20,000,000 at June 30, The Commission will pay $100,000 in estimated commercial paper interest payments during the year. Commercial paper debt service expenditures are reflected in the Commercial Paper capital projects fund. The Commission has irrevocable direct draw letters of credit and reimbursement agreements with The Bank of Tokyo-Mitsubishi UFJ, Ltd., acting through its New York Branch (Bank of Tokyo), and Union Bank, N.A. (Union Bank) as credit and liquidity support for the commercial paper notes. The letters of credit in the amount of $60,750,000 for each series of notes expire in October 2014; however, the Commission anticipates reducing the commercial paper program to $60,000,000 following the issuance of the 2013 Sales Tax Bonds and terminating one of the letters of credit and reimbursement agreements. The costs for the liquidity support are reflected in the 2009 Measure A Western County Bond Financing special revenue fund. Sales Tax Revenue Bonds As a means to achieve a greater level of interest rate stability, the Commission entered into two interest rate swaps for a total notional amount of $185,000,000 at a fixed rate for 20 years effective October 2009; the counterparties pay the Commission a floating rate equal to 67% of the one-month London Interbank Offer Rate, or LIBOR. The counterparty for the first swap ($100,000,000 notional amount) at a fixed rate of 3.679% is Bank of America, N.A. (Bank of America), and the counterparty for the second swap ($85,000,000 notional amount) at a fixed of 3.206% is Deutsche Bank AG Riverside County Transportation Commission 67

75 (Deutsche Bank). As of June 30, 2014, the projected notional amounts for the Bank of America and Deutsche Bank swaps are $83,400,000 and $70,900,000, respectively. In connection with the commencement of the interest rate swaps in October 2009, the Commission issued $185,000,000 in variable rate sales tax revenue bonds to retire outstanding commercial paper notes, refund bonds issued in 2008, fund a portion of the debt service reserve, and pay costs of issuance. The 2009 Bonds are secured by standby bond purchase agreements (SBPAs) with JP Morgan Chase Bank (JPMorgan), which expire in September In connection with the extension of the original SBPAs with JPMorgan in September 2011, the Commission obtained the release of the debt service reserve for capital project funding purposes. The costs for these liquidity facilities are accounted for in the 2009 Measure A Western County Bond Financing special revenue fund. For FY 2013/14, the Commission has budgeted debt service principal and interest payments of $7,100,000 and $6,381,800, respectively. In November 2010 the Commission issued $37,630,000 in fixed rate tax-exempt bonds (Series A Tax-Exempt) and $112,370,000 in fixed rate taxable bonds (Series B Taxable) designated as BABs under American Recovery and Reinvestment Act (ARRA). The aggregate amount issued of $150,000,000 for the 2010 Bonds was used to retire approximately $103,300,000 of outstanding commercial paper notes, provide funds for 2009 Measure A Western County capital projects, and pay costs of issuance. A portion of the BABs were designated as recovery zone economic development bonds (RZEDBs). The Commission expects to receive a cash subsidy from the United States Treasury equal to 35% of the interest payable on the BABs or 45% of the interest payable on the Series B Taxable bonds additionally designated as RZEDBs; however, in FY 2012/13, the BABs subsidy was reduced approximately 8% due to federal sequestration cuts. If sequestration continues, the FY 2013/14 BABs subsidy is expected to also be reduced by approximately 5%. Estimated net debt service payments for the 2010 Bonds in FY 2013/14 are $0 for principal and $9,530,500 for interest payments, which are offset by the $2,744,000 cash subsidy payment. In connection with the SR-91 corridor improvement financing to be completed in July 2013, the Commission anticipates the issuance of $404,646,000 in additional sales tax revenue bonds at a premium of $61,089,000. The proceeds of the 2013 Sales Tax Bonds will be used to pay a portion of the costs of the SR-91 corridor improvement project, retire approximately $80,000,000 in outstanding commercial paper notes, pay capitalized interest through January 2018, and pay costs of issuance. These 2013 Bonds have maturity dates through June 30, Estimated debt service payments for the 2013 Bonds in FY 2013/14 are $0 for principal and $18,800,000 for interest payments. The Commission has received long-term debt ratings of Aa2, AA+, and AA from Moody s, S&P, and Fitch Ratings (Fitch), respectively on its currently outstanding sales tax revenue bonds. These ratings are expected to be reaffirmed with the issuance of the 2013 Sales Tax Bonds. Toll Revenue Bonds and TIFIA Loan Toll revenue bonds of $207,512,000 will consist of current interest bonds (CIBs) and capital appreciation bonds (CABs) and include a premium of $7,527,000. The CIBs, which are expected to comprise approximately 65% of the toll revenue bonds issued, are projected to have maturity dates through June 2043, while the CABs will have projected maturity dates through June 2041 at the accreted value. In July 2010 the Commission authorized the issuance of up to $900,000,000 in toll revenue bonds in anticipation of the financing requirements for the SR-91 corridor improvement project. Estimated debt service payments for the 2013 Toll Bonds in FY 2013/14 are $0 for principal and $6,300,000 for interest payments. In April 2012 the United States Department of Transportation (U.S. DOT) announced that the Commission received an invitation to the 2012 TIFIA program, which provided the final puzzle piece needed for the full funding of the SR-91 corridor improvement project. During FY 2012/13, the Commission submitted a TIFIA loan application and obtained approval for a maximum loan of $451,000,000. Based on current project cost estimates and finance model assumptions, the Commission anticipates a TIFIA loan in the amount of $416,255,000. The TIFIA loan provides low cost subordinate financing secured by toll revenues to be generated by the RCTC 91 Express Lanes. Considered patient financing, interest repayment will be deferred for up to five years from substantial completion of the project and principal repayment will be sculpted around the revenue stream supporting the senior debt toll revenue bonds. The maximum repayment term of the TIFIA loan is 35 years from substantial completion, which would approximate January 2052 for the SR-91 corridor improvement project. The Commission anticipates the receipt of investment grade ratings for the 2013 Toll Bonds from S&P and Fitch and for the TIFIA loan from Fitch. 68 Riverside County Transportation Commission

76 Debt Capacity Analysis The Commission is legally prohibited from issuing additional sales tax revenue debt if its debt coverage ratio is less than 1.5 to 1 on all senior sales tax revenue debt. The Commission has adopted a higher standard of 2 to 1 as part of its debt management policy. As Chart 22 and Table 36 indicate, the Commission has successfully met its policy standard for sales tax revenue debt issued under the 2009 Measure A, even in a declining sales tax revenue environment. The 1989 Measure A related debt consistently exceeded the Commission s standard, and coverage for the 2009 Measure A related debt of 4.0 is anticipated for FY 2013/14. Any coverage less than 2 to 1 would necessitate using other program funding to cover all debt service expenditures. Chart 22 Measure A Debt Capacity Analysis $160,000,000 $140,000,000 Senior Debt Service $120,000,000 Available Revenues $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 FY 2012/13 FY 2013/14 Table 36 Measure A Debt Capacity Analysis FY 12/13 FY 13/14 Sales Tax Revenues $ 141,000,000 $ 147,000,000 Senior Debt Service $ 19,997,600 $ 39,068,300 Coverage Ratio - Senior Debt Long-Term Debt Rating Aa2/AA+/AA Aa2/AA+/AA Commercial Paper Rating P-1/A-1+ P-1/A-1+ In connection with the toll-supported debt consisting of the 2013 Toll Bonds as senior debt and federal TIFIA loan as subordinate debt, debt service coverages of 1.5 to 1 and 1.3 to 1 will be required on the senior debt and subordinate debt, respectively. Aggregate Debt Service Schedule for Sales Tax Bonds Debt service requirements for the sales tax revenue bonds are based on amortization schedules for the 2009 Bonds; 2010 Bonds, including the BABs cash subsidy payments; and the 2013 Sales Tax Bonds, as projected. Since commercial paper is expected to be refinanced with sales tax revenue bonds, debt service requirements for commercial paper are not included in Table 37; however, the debt service interest expenditures in FY 2013/14 for the commercial paper notes are estimated at $100,000. Riverside County Transportation Commission 69

77 Table 37 Commission Sales Tax Revenue Bonds net Debt Service Requirements Fiscal Year Principal Interest Subsidy Payments Net Debt Service 2014 $ 7,100,000 $ 34,712,326 $ (2,744,000) $ 39,068, ,400,000 35,865,526 (2,982,113) 40,283, ,800,000 35,588,926 (2,982,113) 40,406, ,100,000 35,268,526 (2,982,113) 40,386, ,973,000 34,950,226 (2,982,113) 61,941, ,588, ,482,230 (14,910,563) 251,159, ,996, ,686,430 (14,910,563) 252,771, ,479,000 97,375,052 (14,897,936) 244,956, ,150,000 49,103,516 (9,470,800) 242,782, ,460,000 2,647,899 (550,754) 48,557,144 Total $ 716,046,000 $ 615,680,656 $ (69,413,068) $ 1,262,313,588 Outstanding Debt and Debt Service Requirements as of June 30, 2014 Under the provisions of the 2009 Measure A, the Commission has the authority to issue bonds subject to a bond debt limitation of $975,000,000, reflecting an increase from the original authorization of $500,000,000 as a result of the voter approval of Measure K in November The following is a summary of debt issued and secured by 2009 Measure A revenues, receipt of which began in FY 2009/10: 2005 Commercial Paper Notes (Limited Tax Bonds), Series A and Series B: In February 2005, the Commission authorized a $200,000,000 commercial paper program. In March 2005, the Commission established the program for $185,000,000 Commercial Paper Notes (Limited Tax Bonds), Series A and B. In October 2010, the program was reduced to $120,000,000. The repayment of principal and interest on the commercial paper notes is secured by irrevocable direct draw letters of credit issued by Bank of Tokyo and Union Bank, and the Measure A sales tax revenues secure such repayment. Maturities of the commercial paper notes may range from one to 270 days, and interest rates are variable and dependent on current market conditions. The note agreements require the trustee to hold all note proceeds and a portion of sales tax revenues and to segregate all funds into separate accounts as required by the indenture Sales Tax Revenue Bonds (Limited Tax Bonds), Series A, B, and C: In October 2009, the Commission issued $185,000,000 principal amount of serial bonds to refinance the 2008 bonds, retire a portion of the outstanding principal amount of the commercial paper notes and a portion of accrued interest on the notes, and fund a reserve fund. In September 2011, the reserve fund was released to fund project costs in connection with the extension of the SBPAs by JPMorgan. The bonds mature in annual installments ranging from $6,500,000 to $13,700,000 on various dates through June 1, 2029 with variable interest rates set on a weekly basis. The 2009 Bonds are integrated with the interest rate swaps, thereby creating synthetic fixed rate debt. The 2009 Bond agreements require the trustee to hold all bond proceeds and a portion of sales tax revenues and to segregate all funds into separate accounts as required by the indentures. Debt service requirements for the 2009 Bonds are summarized in Table 38. Table Sales Tax Revenue Bonds Debt Service Requirements Fiscal Year Principal Interest Total Debt Service 2014 $ 7,100,000 $ 6,381,800 $ 13,481, ,400,000 6,103,000 13,503, ,800,000 5,826,400 13,626, ,100,000 5,506,000 13,606, ,500,000 5,187,700 13,687, ,500,000 20,633,600 69,133, ,300,000 10,212,800 70,512, ,700, ,000 14,279,000 Total $ 161,400,000 $ 60,430,300 $ 221,830, Riverside County Transportation Commission

78 2010 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A Tax-Exempt and Series B Taxable: In November 2010, the Commission issued $150,000,000 principal amount of serial bonds to retire all of the outstanding principal amount of the commercial paper notes and fund project costs. The bonds mature in annual installments ranging from $12,105,000 to $17,980,000 on various dates from June 1, 2030 through June 1, Interest rates for the Series A Tax-Exempt and Series B Taxable bonds are 5% and 6.807%, respectively. The Commission expects to receive cash subsidies from the U.S. Treasury related to the Series B Taxable bonds. The 2010 Bond agreements require the trustee to hold all bond proceeds and a portion of sales tax revenues and to segregate all funds into separate accounts as required by the indentures. Debt service requirements, net of subsidy payments for the 2010 Bonds are summarized in Table 39. Table Sales Tax Revenue Bonds Net Debt Service Requirements Fiscal Year Principal Interest Subsidy Payments Net Debt Service 2014 $ - $ 9,530,526 $ (2,744,000) $ 6,786, ,530,526 (2,982,113) 6,548, ,530,526 (2,982,113) 6,548, ,530,526 (2,982,113) 6,548, ,530,526 (2,982,113) 6,548, ,652,630 (14,910,563) 32,742, ,652,630 (14,910,563) 32,742, ,170,000 43,889,052 (14,897,936) 81,161, ,850,000 22,887,516 (9,470,800) 93,266, ,980,000 1,223,899 (550,754) 18,653,144 Total $ 150,000,000 $ 210,958,356 $ (69,413,068) $ 291,545, Sales Tax Revenue Bonds (Limited Tax Bonds), Series A Tax-Exempt: In July 2013, the Commission expects to issue $404,646,000 principal amount of serial bonds at a premium of $61,089,000 to retire all of the outstanding principal amount of commercial paper notes, fund a portion of the SR-91 corridor improvement project costs, pay capitalized interest during construction, and pay cost of issuance. The bonds are expected to mature in annual installments ranging from $10,512,000 to $28,479,000 on various dates through June 1, Interest rate estimate is 5%. The 2013 Sales Tax Bond agreements will require the trustee to hold all bond proceeds and a portion of sales tax revenues and to segregate all funds into separate accounts as required by the indentures. Anticipated debt service requirements for the 2013 Sales Tax Bonds are summarized in Table 40. Table Sales Tax Revenue Bonds Debt Service Requirements Fiscal Year Principal Interest Total Debt Service 2014 $ - $ 18,800,000 $ 18,800, ,232,000 20,232, ,232,000 20,232, ,232,000 20,232, ,473,000 20,232,000 41,705, ,088,000 90,196, ,284, ,696,000 73,821, ,517, ,609,000 52,907, ,516, ,300,000 26,216, ,516, ,480,000 1,424,000 29,904,000 Total $ 404,646,000 $ 344,292,000 $ 748,938,000 Riverside County Transportation Commission 71

79 2013 Toll Revenue Bonds, Series A (Current Interest Obligation): In July 2013, the Commission expects to issue $134,883,000 principal amount of serial CIBs to fund a portion of the SR-91 corridor improvement project, pay capitalized interest during construction, fund a debt service reserve fund, fund an initial amount for an Operations and Maintenance Fund, and pay costs of issuance. The CIBs are expected to mature in installments ranging from $2,307,000 to $39,836,000 on various dates from June 1, 2022 through June 1, Anticipated interest rate range from 3.00% to 5.00%. The Toll Revenue Bond agreements require the trustee to hold all bond proceeds and segregate funds into separate accounts as required by the indentures. Debt service requirements for the Toll Revenue bonds are summarized in Table 41. Table Toll Revenue Current Interest Obligation Bonds Debt Service Requirements Fiscal Year Principal Interest Total Debt Service 2014 $ - $ 6,300,000 $ 6,300, ,744,000 6,744, ,744,000 6,744, ,744,000 6,744, ,744,000 6,744, ,840,000 33,541,000 42,381, ,701,000 27,479,000 76,180, ,336,000 19,336, ,307,000 19,336,000 21,643, ,035,000 16,999,000 92,034,000 Total $ 134,883,000 $ 149,967,000 $ 284,850, Toll Revenue Bonds, Series A (Capital Appreciation Obligation): In July 2013, the Commission expects to issue $72,629,000 principal amount of serial CABs to fund a portion of the SR-91 corridor improvement project, pay capitalized interest during construction, fund a debt service reserve fund, fund an initial amount for an Operations and Maintenance Fund, and pay costs of issuance. The CABs will not pay current interest as interest will be compounded commencing December 2013 semiannually and paid at maturity. Therefore, the CABs will increase in value, or accrete, by the accumulation of such compounded interest from its initial principal amount to the estimated maturity value in installments ranging from $7,071,000 to $32,508,000 on various dates from June 1, 2029 through June 1, Anticipated interest rates range from 1.45% to 5.92%. The Toll Revenue Bond agreements require the trustee to hold all bond proceeds and segregate funds into separate accounts as required by the indentures. Debt service requirements for the Toll Revenue bonds are summarized in Table 42. Table Toll Revenue Capital Appreciation Obligation Bonds Debt Service Requirements Fiscal Year Principal Accreted Interest Total Debt Service $ 25,730,000 $ 42,054,000 $ 67,784, ,321,000 76,330, ,651, ,578,000 70,808,000 89,386,000 Total $ 72,629,000 $ 189,192,000 $ 261,821,000 TIFIA Loan Agreement: In July 2013, the Commission anticipates the execution of a $416,255,000 TIFIA loan for the SR-91 corridor improvement project. In FY 2013/14, the Commission is expected to draw $110,000,000 principal amount of TIFIA loan proceeds for the SR-91 corridor improvement project. During construction and for a period of up to five years following substantial completion, interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires mandatory debt service payments at a minimum and scheduled debt service payments to the extent additional funds are available. TIFIA debt service payments are expected to commence in June 2022, which is five years after substantial completion of the SR-91 corridor improvement project, through June 30, The interest rate of the TIFIA loan is estimated at 3.50%. Based on a projected draw schedule, the following is an estimate of mandatory and scheduled debt service. 72 Riverside County Transportation Commission

80 Table 43 TIFIA Debt Service Requirements Mandatory Scheduled Fiscal Year Principal Interest Total Interest Total $ - $ 3,584,000 $ 3,584,000 $ 32,157,000 $ 35,741, ,420,000 19,420,000 69,956,000 89,376, ,000 73,982,000 74,129,000 15,335,000 89,464, ,000 89,311,000 89,507,000-89,507, ,000 89,278,000 89,474,000-89,474, ,172,000 71,845, ,017, ,017, ,868,000 16,859, ,727, ,727,000 Total 510,579,000 $ 364,279,000 $ 874,858,000 $ 117,448,000 $ 992,306,000 Accretion (94,324,000) Initial Loan $ 416,255,000 The allocation of the sales tax revenue bonds to the 2009 Measure A programs is presented in Chart 23. Chart 23 Program Long-Term Debt Highways and Regional Arterials 100% The allocation of the sales tax revenue bonds by the benefiting geographic area is presented in Chart 24. Chart 24 Long-Term Debt by Geographic Area Coachella Valley 2% Western County 98% Riverside County Transportation Commission 73

81 Outstanding Debt and Legal Debt Margin at June 30, 2014 A summary of the Commission s outstanding debt secured by Measure A sales tax revenues and related legal debt margin projected at June 30, 2014 is presented in Table 44: Table 40 Legal Debt Margin 2009 Measure A Authorized Sales Tax Revenue Debt $ 975,000, Commercial Paper Notes 20,000, Bonds 154,300, Bonds 150,000, Bonds 404,646,000 Total Outstanding Debt 728,946,000 Legal Debt Margin $ 246,054,000 SR-91 Corridor Improvement Project (SR-91/Main Street Interchange in Corona) 74 Riverside County Transportation Commission

82 section 6 Department Budgets Metrolink section 6 department budgets

83 Table 41 Budget Comparison by Department FY Revenues FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Measure A Sales Tax $ 134,984,300 $ 141,000,000 $ 141,000,000 $ 147,000,000 $ 6,000,000 4% LTF Sales Tax 66,556,700 69,500,000 69,500,000 72,500,000 3,000,000 4% STA Sales Tax 13,487,500 14,212,500 14,212,500 13,298,000 (914,500) -6% Federal Reimbursements 28,097,000 73,151,900 40,949,200 94,389,000 21,237,100 29% State Reimbursements 21,411,300 17,917,800 21,306, ,496, ,578, % Local Reimbursements 2,008,600 2,688,700 2,589,400 2,954, ,700 10% TUMF Revenue 8,116,400 7,557,300 7,268,200 6,723,400 (833,900) -11% Other Revenue 1,430, , , ,000 (382,800) -43% Investment Income 4,308,300 7,265,900 3,986,300 4,026,500 (3,239,400) -45% Total Revenues 280,400, ,176, ,305, ,887, ,710,700 42% Expenditures Management Services: Executive Management 214, , , ,900 (24,300) -9% Administration 1,238,100 1,502,200 1,196,000 1,865, ,200 24% Legislative Affairs and 927,900 1,244, ,200 1,248,400 4,100 0% Communications Finance 5,333,900 4,999,500 4,547,000 5,212, ,200 4% Total Management Services 7,714,600 8,029,200 6,934,000 8,585, ,200 7% Regional Programs: Planning and Programming Services Rail Maintenance and Operations 3,399,900 4,994,100 3,538,600 5,845, ,900 17% 20,202,600 14,553,300 11,564,300 15,485, ,300 6% Public and Specialized Transit 53,158,100 84,811,200 59,406, ,803,900 21,992,700 26% Commuter Assistance 3,157,600 4,038,800 4,197,400 4,411, ,900 9% Motorist Assistance 3,846,300 4,848,000 4,727,600 5,464, ,600 13% Total Regional Programs 83,764, ,245,400 83,434, ,010,800 24,765,400 22% Capital Project Development and Delivery 181,174, ,477, ,703, ,844, ,366,900 99% Debt Service: Principal Payments 46,523, ,800,000 6,800,000 87,100,000 (39,700,000) -31% Interest Payments 15,008,700 16,613,000 16,190,600 41,112,300 24,499, % Cost of Issuance ,500,000 7,500,000 N/A Total Debt Service 61,532, ,413,000 22,990, ,712,300 (7,700,700) -5% Total Expenditures 334,186, ,165, ,062,600 1,033,153, ,987,800 61% Excess (deficiency) of Revenues over (under) Expenditures (53,786,000) (307,988,500) (64,757,000) (558,265,600) (250,277,100) 81% Other Financing Sources (Uses) Transfers In 123,977, ,118, ,536, ,325, ,207,200 94% Transfers Out (123,977,200) (328,118,600) (125,536,100) (636,325,800) (308,207,200) 94% Debt Proceeds 40,000,000 1,220,172,000 80,000, ,774,000 (519,398,000) -43% TIFIA Loan Proceeds ,000, ,000,000 N/A Net Financing Sources (Uses) 40,000,000 1,220,172,000 80,000, ,774,000 (409,398,000) -34% Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (13,786,000) 912,183,500 15,243, ,508,400 (659,675,100) -72% Beginning Fund Balance 589,364, ,578, ,578, ,821,600 15,243,000 3% Ending Fund Balance $ 575,578,600 $ 1,487,762,100 $ 590,821,600 $ 843,330,000 $ (644,432,100) -43% Riverside County Transportation Commission 75

84 I-10/Date Palm Drive 76 Riverside County Transportation Commission

85 section 6.1 management services section 6.1 Management Services 91 HOV Project

86 Executive Management Mission Statement: To maintain the highest level of achievement and professionalism possible while managing the activities of the Commission with a small staff complemented with consultants, to effectuate sound transportation policies and legislation compatible with environmental standards. Chart 25 Executive Management Support Costs 22% Professional Costs 41% Salaries and Benefits 37% Expenditures Executive Management has a budget of $258,900 (Table 46) for oversight of all Commission functions. The 20% decrease in salaries and benefits reflects the allocation of FTEs to other programs. Professional costs of $105,000 include legal fees and consulting services. Support costs include various membership dues and staff-related travel costs of $57,200. Table 46 Executive Management Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 105,200 $ 120,600 $ 83,000 $ 96,700 $ (23,900) -20% Professional Costs Legal Services 69,900 65,000 61,100 65,000-0% Professional Services ,000 40,000 40,000-0% General Total Professional Costs 69, , , ,000-0% Support Costs 39,600 57,600 53,700 57,200 (400) -1% TOTAL Executive Management $ 214,700 $ 283,200 $ 237,800 $ 258,900 $ (24,300) -9% Executive Management Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Deputy Executive Director Executive Director FTE Riverside County Transportation Commission 77

87 Department Budget Overview Department Description The Executive Director is responsible for and provides strong leadership in developing and implementing new strategies at the local, regional, and statewide levels to assure delivery of transportation improvements and programs throughout the County. Furthermore, Executive Management is committed to fostering a positive and supportive work environment for staff that emphasizes quality work and encourages teamwork and open communication, with a commitment to serving the public. This is accomplished through a productive and collaborative effort with the members of the Commission and the oversight of the Commission s Executive Committee. Key Assumptions The Executive Director will play a prominent role with external audiences with an emphasis on working with Congress, the California Legislature, Riverside County business organizations, and Southern California transportation agencies and local governments regarding advancing transportation policy in California. Policy concerns include the need for ongoing transportation investment, flexibility in project delivery methods, streamlining of environmental processes and a renewed focus of the connection between transportation projects and the overall quality of life in Riverside County. Project delivery will be a top priority in FY 2013/14 with the major focus on initiating construction on the SR-91 corridor improvement project through Corona. The overall budget for the project exceeds $1 billion and it will be the Commission s most significant project in its history. Construction is expected to begin in December 2013, and it will add two lanes of added capacity to Riverside County s most congested freeway corridor. The project s use of express lanes will also herald a new era of toll financing and operations. The focus on project delivery will also be seen in the advancement of public transit with construction of the Perris Valley Line Metrolink extension. Additional ongoing projects under construction will include the 60/215 East Junction HOV lanes connector, SR-91 HOV lane project, I-215 corridor improvement project central segment, and the I-215 bi-county project. Construction will begin on the SR-74 curve widening project near Hemet. Yet another component of project delivery will include the need to complete the environmental review process on a number of high-profile projects including the Mid County Parkway and the SR-79 realignment. The advancement of construction on a number of projects will require a requisite increase in public outreach to the media and local governments as well as the need for watchful oversight to make the most of lower construction and right of way costs. The development of the Perris Valley Line project will mark Riverside County s first major rail expansion in more than 14 years and will require a significant public outreach effort during construction. A renewed emphasis, as part of a regionwide effort, will be placed on working with local governments and stakeholders to advance active transportation projects such as bicycling, walking and transit use. Accomplishments FY 2012/13 saw extraordinary accomplishments at the Commission, placing it in the top tier of California transportation organizations. In several areas, the Commission stood by itself in successful advocacy, innovation, and leadership. Completed construction on the I-215 south in Murrieta which added a lane in each direction of the freeway. Immediately after the widening of the I-215 south, broke ground and initiated construction on the I-215 central project between Nuevo Road and Scott Road in the communities of Menifee and Perris. Awarded a $633 million design-build contract for the widening of SR-91 and extension of the existing 91 Express Lanes through Corona. Obtained and negotiated a TIFIA loan amounting to one-third of the eligible TIFIA costs of the SR-91 corridor improvement project. The Commission was one of only five agencies throughout the nation to receive TIFIA funding in the April 2012 selections. Continued to implement components of the Western Riverside County Delivery Plan. Issued a revised Draft Environmental Impact Report for the Mid County Parkway project. Guided the Commission through an uncertain economic environment with costs savings and successful adherence to limits on salaries and administrative expenditures. 78 Riverside County Transportation Commission

88 Partnered with SANBAG to launch the I-215 bi-county project which adds a HOV lane in each direction of the I-215 from SR-60 to I-10. Continued to fund the acquisition of needed habitat for the Western Riverside County MSHCP as outlined in the Measure A Expenditure Plan. Completed project work to ensure the allocation of Proposition 1B TCIF which has led to the construction of a number of railroad grade separations. Two of the 12 TCIF projects have been completed (Columbia Avenue and Magnolia Avenue/Union Pacific); three projects are under construction (Iowa Avenue, Streeter Avenue and the I-215/Van Buren interchange); and seven projects will start construction by December 2013 (Auto Center Drive, Avenue 52, Avenue 56, Clay Street, Magnolia Avenue/Burlington Northern Santa Fe (BNSF), Riverside Avenue and Sunset Avenue). Advocated for and successfully obtained inclusion of the Pass Area and Coachella Valley Rail Service into the State Intercity Rail Plan. Major Initiatives FY 2013/14 will be a year of constant activity and will feature efforts to launch a number of projects. Chief among them will be the SR-91 corridor improvement project through Corona, a $1.3 billion dollar effort that will add general purpose and express lanes to a 10-mile stretch of one of southern California s most congested freeways. This will be Riverside County s largest transportation project and one of the most valuable, in terms of project cost, in the entire state. Along with the SR-91 corridor improvement project, the Commission will continue to serve as the lead agency on construction for the widening of the I-215 central project, the SR-74 curve widening, and the Perris Valley Line. The Commission, through its partnership with Caltrans is funding construction to add HOV lanes on SR-91 through downtown Riverside and the 60/215 East Junction HOV lanes connector project. Yet another partnership can be seen with SANBAG in the widening of the I-215 known as the bi-county project. This effort adds a HOV lane in each direction to the I-215 between SR-60 and I-10. While the focus will certainly be on construction, project development work continues with the circulation of draft environmental documents for the Mid County Parkway and SR-79 realignment projects. In terms of advancing policy, a major concern in moving forward is the state of California s financial position and commitment to funding infrastructure and transportation. The Commission will continue to take an aggressive and active role in advocating for State investments in transportation. The Commission is an active member of the Self-Help Counties Coalition (SHCC) and Mobility 21, and a major focus will be placed on advocacy for transportation in the State budget. Federal funding is also an important factor for the Commission s future, and the Commission will advocate strongly for the approval of a federal transportation bill. Congress s priorities will need to include funding for Positive Train Control and for goods movement and freight-related projects in Southern California. In Riverside County, goods movement investments will continue to focus on the need to complete highway/rail grade separation projects. The success of many of these efforts will rely on proactive external communications. Media relations will continue to be a priority, and press releases will remain a major effort along with social media and the Commission s On the Move monthly newsletter and annual report. An expanding and systematic outreach to business and civic groups, focusing on Commission efforts in terms of funding, construction, and services, will be the central feature of the communications program. Riverside County has also seen a major change in its federal and state legislative delegations which will require a concerted outreach effort to new representatives on local transportation issues. While actively participating in all of these major endeavors, the Executive Director will maintain and improve administrative efficiency and fiscally sound practices characteristic of the Commission. With a total of 46 budgeted staff positions, the Commission organization remains consistent with Commission direction. The Commission must continue to be competitive in the employment market and retain capable staff as well as attract high quality applicants. Staff training and development will continue, enabling our small and dedicated staff to enhance skills, productivity, and value. Our goal is to maintain the most effective mid-sized transportation agency in California. Department Goals Focus on timely and effective completion of capital projects. (Policy Goals: Mobility, Goods Movement, Intermodalism & Accessibility) Objectives: Begin construction and serve as lead agency on the SR-91 corridor improvement project in Corona. Serve as the lead agency for the construction of the I-215 corridor improvement projects. Riverside County Transportation Commission 79

89 Work closely with Caltrans on construction of the 60/215 East Junction HOV lane connectors project in Moreno Valley as well as the SR-91 HOV lanes project in downtown Riverside and I-215 bi-county project. Ensure effective communication with the public regarding construction and project details throughout the County. Embark on construction for the Perris Valley Line Metrolink extension. Maximize funding for transportation improvements in Riverside County through legislative advocacy. (Policy Goals: Mobility, Goods Movement) Objectives: Implement the Commission s early development project priorities outlined in the recent Commission workshops, focusing on the first ten years of the 2009 Measure A, which will include an emphasis on project development for the SR-91 corridor improvement project and the Perris Valley Line. Place an emphasis on initiating federally authorized and funded projects included within the new federal transportation bill and the Commission s ongoing project priorities. Advocate federal appropriations for current projects and regional efforts to reduce the community impacts of rail goods movement. Continue to advocate for federal investment in freight and goods movement infrastructure with the goal of mitigating community impacts while increasing capacity and local job creation and economic development. Continue implementation of Transit Vision while addressing short- and long-term funding constraints. Support regional transportation solutions in cooperation with surrounding counties that are of benefit to Riverside County. (Policy Goals: Mobility, Goods Movement, System Efficiencies) Objectives: Continue work on grade separation and rail capacity projects funded through the TCIF as well as those called for in the Commission s $561 million Grade Separation Plan. Work with neighboring counties regarding corridor improvements on SR-91, I-15 and I-215. Maintain an effective working relationship with the agencies that comprise Metrolink to ensure that Riverside County commuter rail needs are served in an efficient, effective, and safe manner. Partner with SANBAG to enhance and publicize the IE511 system and work with agencies in San Diego, Orange, and Los Angeles counties to provide effective, regional 511 traveler information services. Play an active role in the implementation of revamping the implementation of intercity rail and commuter rail service in the Los Angeles-San Diego-San Luis Obispo (LOSSAN) corridor. Be an active participant in discussions involving high-speed rail especially concerning connectivity investments in the overall rail system in Southern California. Advocate for and take an active effort for additional intercity rail service to the Coachella Valley and the Pass Area. Maintain effective working relationships with Commissioners to strengthen and expand the Commission s leadership in transportation policy decision-making at all levels of government. (Policy Goal: Communications) Objectives: Facilitate Commissioner participation at the regional, state, and federal levels to raise the interests of the Commission and seek favorable action. Continue regular communication between the Executive Director, senior staff and the Commissioners. Continue collaborative efforts with member agency staff regarding local priorities and funding challenges. Work with other levels of local government such as the County Transportation Department, County Health Department, and local universities on quality of life issues that are connected to transportation such as air quality and the environment. Provide assistance to Commissioners who serve on outside boards such as SCAG and Metrolink to assist their efforts to represent Riverside County. 80 Riverside County Transportation Commission

90 While maintaining a relatively small staff, promote the Commission s effectiveness by improving and developing staff skills, using state-of-the-art working tools, and fostering an environment that encourages and rewards individual and team effort. (Policy Goal: Financial & Administration) Objectives: Continue to maintain a well-documented employee appraisal process that provides clear, understandable, and measurable performance criteria for all employees. Maintain and encourage staff morale and effectiveness. Retain quality staff as the economy improves. Develop the framework for a Commission culture that enhances productivity, encourages regular and open communication among staff, and promotes the mutual achievement of individual and organizational goals and objectives. (Policy Goal: Financial & Administration) Objectives: Conduct a semi-annual review of organization accomplishments as measured against planned objectives to determine progress in meeting those objectives and action steps needed. Facilitate open communications and coordination between management, professional staff, and support staff through regular meetings. Executive Management Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Expenditures $ 358,560,200 $ 334,186,200 $ 366,062,600 $ 1,033,153,200 Staffing levels Administration costs as percentage of expenditures 3% 2.31% 1.89%.83% Mid County Parkway Public Outreach Meeting Riverside County Transportation Commission 81

91 Administration Mission Statement: To provide quality and efficient services to the Board of Commissioners, staff, and external customers and to comply with applicable federal and state requirements. Chart 26 Administration Salaries and Benefits 34% Professional Costs 11% Capital Outlay 21% Expenditures As noted in Table 47, the Administration Department s total budget is $1,865,400 for office operations including management of office space, lease, and equipment; records; Commission and committee meetings; and special events as well as for the clerk of the board and human resources functions. Salaries and benefits expenditures of $628,600 reflect an increase of 37% for FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs of $207,600 cover various services including, but not limited to, Commissioners per diem, legal fees, and consultant and other professional services. Support costs of $644,200 cover administrative overhead including office maintenance; information technology updates, support, and maintenance; and recruitments. Capital outlay of $385,000 reflects an increase due to information technology equipment upgrades. Table 47 Administration Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected Support Costs 34% FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 434,000 $ 460,300 $ 398,200 $ 628,600 $ 168,300 37% Professional Costs Commissioner Per Diem 64,000 65,000 65,000 65,000-0% Legal Services 158,400 18,900 17,000 22,000 3,100 16% Professional Services - 16, ,800 59, ,600 (56,200) -32% General Total Professional Costs 239, , , ,600 (53,100) -20% Support Costs 547, , , ,200 3,000 0% Capital Outlay 17, ,000 55, , , % Debt Service 25, N/A TOTAL Administration $ 1,263,300 $ 1,502,200 $ 1,196,000 $ 1,865,400 $ 363,200 24% 82 Riverside County Transportation Commission

92 Administration Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Accounting Supervisor Administrative Assistant Finance Manager/Controller Human Resources Administrator Office and Board Services Manager Senior Administrative Assistant Senior Office Assistant FTE Department Budget Overview Office Operations Department Description Office Operations oversees the daily maintenance needs of the Commission s office facility and staff; manages information technology and records management systems; oversees the office lease; purchases office supplies and equipment; posts public notices on the website and local newspaper and notices of project completion; maintains a safe working environment for Commission board members, staff, and consultants; and provides support services. Office Operations continues to operate with a small staff of six consisting of the Office and Board Services Manager, Senior Administrative Assistant, three Administrative Assistants, and Senior Office Assistant. Key Assumptions Support is provided to 46 full-time Commission staff. Requests for proposals and project notices of completion are posted in accordance with applicable federal, state, and local regulations. Information technology systems are upgraded and maintained to ensure efficiency. An accurate and efficient records management system is maintained. Requests for public records are responded to in accordance with the California Public Records Act. Accomplishments Updated the web page in a timely manner for the postings of public notices. Maintained efficient information technology infrastructure. Maintained the electronic records management system to ensure accurate and efficient processing of incoming and outgoing correspondence and documents. Maintained a disaster recovery plan to ensure uninterrupted Commission operations. Responded to public records requests in accordance with the California Public Records Act. Major Initiatives The Commission will continue to maintain a robust electronic records management system. Achieving greater efficiencies and strengthening the Commission s records management processes and procedures, the system pertains to the management, storage, and accessibility of the Commission s actions and documents and the retention capability for incoming and internally created records. Office Operations will continue to provide high quality support services to the Board and to internal and external customers by providing a work environment that enhances the overall mission of the Commission. Riverside County Transportation Commission 83

93 Department Goal Office Operations Ensure quality service that demonstrates responsiveness and flexibility and provides services at the most reasonable cost. (Policy Goals: Communications, Financial & Administration) Objectives: Support 46 full-time staff. Provide accessibility to meeting agendas, legal notices, requests for proposal, and employment opportunities through the Commission s web page. Continue to improve administrative efficiency through automation of records processing. Provide a safe working environment with the maintenance of an injury and illness prevention program. Post legal notices and requests for proposals on the Commission s web page and in the newspapers on a timely basis. Provide office supplies, equipment, and services consistent with intended quality and capabilities at the most advantageous price afforded in the market. Manage the Commission s information technology systems. Department Budget Overview Clerk of the Board Department Description The Clerk of the Board provides support services to the Board of Commissioners and its alternates and for Commission and committee meetings. It serves as an important resource for the Commission and has the responsibility for recording, publishing, preserving, and filing meeting proceedings of documents acted upon by the Commission and its committees; posting legal notices; processing claims against the Commission; fulfilling requirements of the Commission and the committees as it relates to the Conflict of Interest Code; serving as the Filing Officer for Economic Interest and Campaign Disclosure statements and legal claims against the Commission; coordinating Commission special events and meetings; and performing all duties required by law, rules, or order of the Board. As such, this department has a direct link and responsibility to serving local taxpayers and the public while supporting the actions of the Commission. The need to be accountable to the public at large is further amplified by the need to comply with federal and state law requiring prompt responses to California Public Records Act requests. Key Assumptions Staff support and meeting services are provided to 34 Commissioners and their alternates, the Commission, four established committees, and a number of ad hoc committees. Monthly agenda packets and supporting documents are published and distributed in accordance with the Brown Act. Officers and members of the Commission are kept informed by providing them with the most current and accurate data to assist them and facilitate their decision making responsibilities. Frequent communication with Commissioners continues to provide news and updates on Commission items and transportation-related meetings. Available technology is used to provide simplified access of agenda items and Commission actions to the public, local agencies, and staff. Accomplishments Updated the web page and the bulletin board for the agenda, minutes, and supporting documents. Posted legal notices in local newspapers and on the Commission s web page. Regularly advised officers and members of the Commission and their staff on changes to Commission meetings and other transportation-related meetings. Arranged Commission and committee meetings and special events of the Commission. Processed and transmitted Commission-approved resolutions to appropriate agencies in a timely manner. 84 Riverside County Transportation Commission

94 Major Initiatives Each year, local agencies make changes to their appointments regarding their representation on the Commission. Staff will continue to make every effort to ensure that the newly appointed representatives, as well as their respective staff, are aware of operational policies of the Commission and other transportation-related meetings. There will be continued emphasis on the utilization of electronic mail with Commissioners for more efficient communications. Clerk of the Board staff will continue to provide high quality support services to the Board. Staff will also continue to update technology to streamline processes and procedures for easier access to Commission actions, minutes, resolutions, and ordinances, including electronic agenda distribution. Department Goals Clerk of the Board Ensure coordination and documentation of Commission and committee meetings and provide public accessibility to agenda items as required by state regulations. (Policy Goals: Communications, Financial & Administration) Objectives: Provide accurate, high quality agenda packets for Commission and committee meetings. Continue to provide support to Commission members, staff, and attendees of Commission and committee meetings. Post meeting agendas and supporting documents in compliance with Brown Act requirements. Maintain an accurate list of Commissioners and alternates and submit membership roster changes to the Secretary of State. Maintain and file all Commission and committee meetings and official records of the Commission. Perform all duties within mandated deadlines. Maintain and promote good Commission and staff relations. Facilitate access of information to Commission records. (Policy Goal: Communications) Objectives: Continue to respond to requests for records and information on a timely basis and in accordance with state law. Continue to improve the Commission s recordkeeping practices by updating the electronic records management system. Maintain Commission agreements, amendments, MOUs, resolutions, and ordinances. Maintain a centralized database for Commissioners, agencies, and consultant contact information. Coordinate special activities, meetings, events, and conferences as requested by the Executive Director and the Commission. Department Budget Overview Human Resources Department Description Human Resources responsibilities include administering the recruitment, selection, and appraisal process; updating and conducting a biennial survey of comparable classification and salaries and benefits; maintaining personnel policies and procedures; and scheduling periodic sessions for staff to review benefits and personnel rules and for supervisors to review the performance evaluation process. Key Assumptions The use of consultant services for Human Resources administration is maximized. A Human Resources Administrator will be hired to manage human resources responsibilities on a full-time basis. The assessment of Human Resources practices and procedures will continue. Continuous improvement in communication with employees regarding Human Resources information will be an ongoing process. Compliance with state and federal labor law regulations is achieved. Riverside County Transportation Commission 85

95 Accomplishments Completed the biennial classification and compensation study. Adopted a resolution in response to the Public Employees Pension Reform Act of 2013 (PEPRA), requiring existing employees to begin paying an equal share of the normal pension costs. Effective July 11, 2013 existing employees will pay 3% toward the normal pension costs and thereafter will pay an additional 3% in FY 2014/15 and 2% in FY 2015/16 for a total annual normal pension cost contribution of 8%, offset by a corresponding salary increase. Implemented PEPRA that creates a new defined benefit formula of 2% at age 62 for all new members hired as of January 1, Provided the annual Benefit Statement to all employees. Regularly provided information to employees on changes to health insurance, 401(a) defined contribution, and 457 deferred compensation plans and the personnel policies and procedures manual through the Commission s intranet and quarterly employee newsletter. Recruited and filled two intern and six full-time positions. Held training sessions on violence in the workplace, harassment-free workplace, and drug-free workplace. Disclosed employees compensation on the Commission s website in compliance with the State Controller s Office and CalPERS. Major Initiatives Human Resources focuses on managing employees and consists of a framework of activities and practices that support and develop a motivated workforce while at the same time complying with legislation and regulations that govern the employer/ employee relationship. Staff will use written position descriptions and performance expectations in order to give each employee a clear and consistent understanding of what is expected. Additionally, staff will utilize qualified human resources consultants to assist in establishing good human resources management practices, based on policies to establish parameters for fair and consistent decision-making, and to institute good workplace practices. The Commission s practice is to conduct a classification and compensation review program review every two years to ensure fair compensation is established to attract and retain the most qualified employees. After the postponement of the biennial classification and compensation review program in 2009 due to the slowdown in the economy and declining sales tax revenues, the Commission reinstituted the biennial classification and compensation review program at the request of the Executive Committee in response to the implementation of the PEPRA provisions. The Commission will provide a one-time 3% cost of living adjustment to offset the employees contribution to the normal pension costs and up to a 3% pool for merit-based salary increases based on the performance of staff in FY 2013/14. Department Goals Human Resources Administer human resources policies, procedures, and programs in order to align personnel laws and the Commission s policies with continuous improvement principles. (Policy Goal: Financial & Administration) Objectives: Review and update personnel policies and procedures to comply with federal and state requirements. Provide information to enhance the employee s knowledge of current personnel policies and procedures in various forms including electronic access, workshops, and printed information. Ensure that employee personnel records are updated timely for various personnel actions. Continue to employ and recruit a dynamic and talented workforce. (Policy Goal: Financial & Administration) Objectives: Maintain a compensation program that ensures internal equity and external competitiveness within the pay structure for Commission employees. Exercise care in making high-quality, diverse appointments. 86 Riverside County Transportation Commission

96 Develop people to be their best in order to meet the needs of the organization. (Policy Goal: Financial & Administration) Objectives: Build and maintain an effective performance system to include timely performance evaluations, personal development, and a supportive work environment. Provide appropriate and timely training to meet the demands of the organization. Foster teamwork through cooperative efforts and support for shared success. Understand and consistently deliver excellent customer service to all employees. (Policy Goal: Financial & Administration) Objective: Focus on employee as customer and consistently strive to exceed expectations by supporting and maintaining individual respect, appreciation, management accessibility, and communication. Improve the quality of the work culture. (Policy Goal: Financial & Administration) Objectives: Develop and maintain a safe working environment. Maintain a proactive employee relations process. Promote a work/family balance. Recognize and reward individual contributions, innovation, and learning from experience. Administration Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Employee rules/ Benefits review sessions held Recruitments Positions filled Legal notices Commission/Committee/ Ad Hoc meetings Commissioners supported (including alternates) Staff supported: Regular full-time Temporary/Seasonal Riverside County Transportation Commission 87

97 Legislative Affairs and Communications Mission Statement: To improve the mobility of Riverside County residents by working through the legislative process and by maintaining effective interagency relationships. This is supported by facilitating interactive communications with the public and transportation stakeholders through various outreach and media efforts. Chart 27 Legislative Affairs and Communications Salaries and Benefits 41% Support Costs 15% Professional Costs 44% Expenditures The Legislative Affairs and Communications Department has a total budget of $1,248,400 (Table 48). Salaries and benefits have increased 28% as a result of FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs of $552,500 include legislative advocacy, graphic design, and website updates. Support costs of $189,200 are comparable to last year s budget. Table 48 Legislative Affairs and Communications Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 347,100 $ 395,000 $ 351,200 $ 506,700 $ 111,700 28% Professional Costs Legal Services 2,100 2,500 1,000 2,500-0% Professional Services - 423, , , ,000 (108,800) -17% General Total Professional Costs 425, , , ,500 (108,800) -16% Support Costs 155, , , ,200 1,200 1% TOTAL Legislative Affairs and Communications $ 927,900 $ 1,244,300 $ 953,200 $ 1,248,400 $ 4,100 0% Legislative Affairs and Communications Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Community Relations Manager Deputy Executive Director Executive Director Goods Movement Manager Government Relations Manager Procurement Analyst FTE Riverside County Transportation Commission

98 Department Budget Overview Department Description Legislative Affairs Transportation issues and system enhancements affect a number of jurisdictions and stakeholders. Through proactive participation, the Commission is able to play a stronger leadership role at all levels of government to advance its interests and policy goals. The importance of this is magnified when the Commission is seeking changes in law or needs legislative authorization to move forward with a specific project. The Commission s Legislative Affairs efforts focus on taking full advantage of opportunities at both the federal and state levels when there is a potential impact to Commission programs. In doing so, the Commission maintains its role as a major legislative force and a statewide leader on a broad range of issues affecting transportation policy such as project delivery and financing. This requires the establishment and maintenance of ongoing communication with Riverside County s legislative delegations in Washington and Sacramento. The Commission accomplishes this via a combined effort that includes Commissioners, staff, and legislative consultants in the two capitals. The effort also requires working with other transportation agencies throughout the State in order to collaborate on issues of mutual concern. This cooperation takes place in a number of forums including a monthly meeting of transportation commission chief executive officers, a legislative roundtable of regional transportation advocates, Mobility 21, SHCC, and Coalition for America s Gateways and Trade Corridors (CAGTC). In the November 2012 election, Riverside County voters sent several new legislators to Washington and Sacramento. These new elected officials bring with them new staff members and new perspectives on government policy, requiring the Commission s legislative affairs team to increase its effort to educate and partner with its delegation in both capitals. Establishing these relationships will be a major focus for the year. A chief concern continuing through FY 2013/14 is modernization of CEQA. Potential changes to this law could have significant benefits to the Commission s ability to deliver needed projects that improve mobility and benefit the environment. In Washington, it will be important to monitor the implementation of Moving Ahead for Progress in the 21st Century (MAP-21) and prepare for the next surface transportation authorization in In terms of federal action on specific projects, the Commission was selected by the U.S. DOT to apply for a TIFIA loan in April 2012 related to the SR-91 corridor improvement project. After submitting the TIFIA application in August 2012, the Commission obtained approval in February 2013 for a TIFIA loan of up to $451,000,000. The execution of this federal loan is anticipated in July The Commission s project was one of 26 letters of interest submitted for a total request exceeding $13 billion, and it was one of only five selected to submit a TIFIA loan application. The Commission will also seek to elevate its policy presence on matters pertaining to the tolling operations. In recent years, federal and state legislators have given significant attention to how tolling on highways is regulated. With the SR-91 and I-15 corridor improvement projects on the near-term horizon, the Commission has a newfound interest in participating in these discussions. Communications The Commission is committed to communicating with and educating a broad arena of interested parties on the roles and responsibilities of the agency. An emphasis will continue to be placed on informing Riverside County residents and businesses about transportation projects and services and maintaining open communication with other transportation stakeholders. Various forms of media and communication tools are used in these outreach efforts with the overall objectives to provide accurate, informative, and easily accessible information; facilitate public participation in the Commission processes; and increase interagency coordination and cooperation. The Deputy Executive Director is responsible for communications with the news media and prepares text for Commission materials, presentations, and speeches. Along with the Executive Director, the Deputy Executive Director, Community Relations Manager, and individual project managers actively participate in public presentations at the local, regional, and state levels to represent the Commission s interests. Strong relationships with the news media are very important to ensure that the public is well informed regarding the Commission s progress in determining funding priorities, designing infrastructure improvements, and constructing projects. There are many points throughout these processes in which the public can and should play a role in shaping the future of the County s transportation network. Riverside County Transportation Commission 89

99 Key Assumptions The Government Relations Manager will oversee legislative affairs work efforts with guidance from the Executive Director and the Deputy Executive Director. The annual report to the public will be distributed throughout the County and will be posted on the Commission s website in a printable format. The On the Move newsletter will be published and distributed electronically and posted on the Commission website. The Speakers Bureau effort will continue to seek local community opportunities to expand outreach regarding the Commission s activities. The Commission s website will be updated and refreshed on a regular basis. Additional communications tools and opportunities will be explored for incorporation into the ongoing program to help build public awareness of Commission activities including radio, television, social media outlets such as Twitter, and the internet. The Commission will continue to take a leadership role in formulating a countywide direction on federal transportation policy. Public outreach will take a heightened role as project development activities accelerate on projects such as the SR-91 corridor improvement, I-215 corridor improvements, the 60/215 East Junction HOV lanes connector, SR-91 HOV lanes, Perris Valley Line, Mid County Parkway, and SR-79 realignment. Goods movement will remain a key policy priority for the Commission, and there will be an emphasis to ensure that Riverside County receives significant funding for this need from state and federal governments. The Commission will monitor and influence the development of the national freight network required by MAP-21. Government Relations will assist the Commission in taking a leadership role in Sacramento on modernization of CEQA. Accomplishments Submitted application for and obtained approval for a TIFIA loan from the U.S. DOT for the SR-91 corridor improvement project. Published a four-page annual report supplement in three major newspapers The Press Enterprise, Desert Sun, and The Californian and posted the supplement on the Commission s website in a printable format. Met with and provided SR-91 corridor improvement project tour for Senator Dianne Feinstein. Continued to update the functionality of the Commission s website. Continued effective relationships with the news media resulting in informative coverage regarding local and regional transportation issues and Measure A project delivery. Provided extensive public outreach support as part of the project development process for the Mid County Parkway, Perris Valley Line, SR-91 corridor improvement, 60/215 East Junction HOV lanes connector, and I-215 corridor improvement projects. Conducted multiple public meetings as part of the environmental review process for a number of efforts including the Perris Valley Line, I-215 corridor improvement, SR-91 corridor improvement, 74/215 interchange, and 91/71 interchange projects. Supported the Rail Department in the development of various marketing materials and advertisements including weekend and holiday train services. Continued to take a leadership role and collaborate with neighboring counties, local business leaders, Mobility 21, SHCC and CAGTC on many transportation policy issues in Sacramento and Washington. Continued work with the Southern California National Freight Gateway collaboration to foster cooperation, coordination, and collaboration to facilitate the movement of goods through Southern California. Developed new collateral materials for an overview of the Commission s programs and projects as well as construction projects planned for Western County, which are often distributed at public events. Developed and distributed a Transportation Quick Reference Guide for Riverside County. The guide was designed for elected, appointed, and community leaders with an emphasis on Commission projects and funding issues. 90 Riverside County Transportation Commission

100 Improved and maintained the Commission s photo library to assist with documenting the project delivery progress of the voter-approved Measure A tax program. The photo library has been used to develop PowerPoint presentations, information brochures, and TIFIA loan submissions. Maintained a presence on the social networking site Twitter which can be accessed at Held widely attended events for the completion of the I-215 South Project and the groundbreaking of the I-215 Central Project. Conducted a Small Business Forum on contracting opportunities with the Commission that attracted approximately 200 people. Took an active role in providing comments and ensuring that Riverside County projects were included in the RTP. Continued to provide a Commissioner-orientation program that bolsters Commissioner knowledge and participation regarding Commission projects and activities and was presented to every new Commissioner. Major Initiatives Legislative Affairs The Commission will continue to advocate strategically and effectively on the policy issues described above in Washington and Sacramento, utilizing its contract advocacy teams, coalitions, and partnerships. The Commission will seek to build on its recent successes in both capitals and continue to maintain a strong presence as a respected, knowledgeable and effective resource to policy leaders and decision-makers. Communications The Commission provides information to the public through various channels including: 1) participation at public meetings, chambers of commerce, industry associations, and service clubs; 2) production and provision of resource materials and fact sheets; 3) maintenance and enhancement of the Commission s website; and 4) development of newspaper press releases, radio and television interviews, and cable television spots. The Commission s largest publication effort to provide widespread understanding of its projects and expenditures is its four-page annual report which has been published in three area newspapers throughout the County and is now posted on the Commission s website in a printable format. A continuing emphasis will be placed on providing communications support to major project development efforts including the Perris Valley Line, the Mid County Parkway, the SR-91, I-15, and the I-215 projects. The need for proactive public communication and outreach remains important, as the Commission continues to move forward with the delivery of the Measure A work program. This is an area of emphasis, as the Western Riverside County Delivery Plan places the Commission in a high-profile role to deliver large-scale highway projects. This will require additional contact with the public by the Community Relations Manager. The Commission s outreach will include a proactive effort to work closely with various media formats such as print, radio, internet, and television to increase their understanding and interest in transportation issues and to generate a higher level of media coverage. Toward that end, opportunities will be identified for live or taped interviews and presentations that speak to local residents and employers and their questions concerning transportation issues. Appropriate forums may include city council meetings, local cable television, and radio. Broad distribution of On the Move, an newsletter highlighting actions of the Commission and emerging topics, will continue as part of the Commission s communications. Efforts will continue to update and expand the Commission s contact database including addresses in order to support distribution of the Commission s public information materials. New Commissioner-orientation meetings will be provided by the Executive Director, Deputy Executive Director, and Clerk of the Board in individualized settings. To supplement individual Commissioner meetings with the Executive Director, continuing education opportunities at the small group level will also be provided to Commissioners that focus on timely issues. Riverside County Transportation Commission 91

101 Department Goals Foster the Commission s full involvement and input in a broad range of local, regional, state, and federal government settings. (Policy Goals: Mobility, Goods Movement, System Efficiencies) Objectives: Participate in the SHCC; California Transit Association; Southern California Legislative Roundtable; League of Cities; Mobility 21; CAGTC; Southern California National Freight Gateway Collaboration; regional, state and federal transportation agencies; and community/business organizations to influence funding and policy decisions that impact Riverside County. Maintain a leadership role in local and regional transportation venues related to project development efforts and current and emerging issues. Provide leadership to the Technical Advisory Committee (TAC) of the Mobile Source Air Pollution Reduction Review Committee (MSRC) to ensure that funding for air quality-related transportation improvements is fully distributed to Riverside County jurisdictions. Work with SCAG, WRCOG, and CVAG to monitor and respond to transportation issues involving the implementation of SB375 on smart growth planning. Coordinate with other local agencies and business interests to modernize and reform CEQA to improve project delivery and deter frivolous lawsuits and challenges that delay projects. Continue regular meetings at the Executive Director/Chief Executive Officer level with transportation agencies throughout the region. Conduct ongoing meetings and communication with transit providers in Riverside County. Implement the Commission s state and federal legislative program to maximize flexibility in the use of existing transportation revenues by supporting legislation to protect and increase current funding levels, ensuring an equitable distribution of available resources, streamlining administrative procedures to reduce costs and time of project development, and accelerating the allocation and use of existing resources. (Policy Goals: Mobility, Goods Movement) Objectives: Coordinate legislative activities of federal and state legislative consultants and obtain monthly reports on activities performed. Work with board members to establish policy positions, review and analyze legislation, visit with elected representatives in Sacramento and Washington, draft legislation, and maintain strong relationships with key decision-makers. Provide regular updates to the Commission regarding state and federal government issues. Effectively represent the Commission before the state and federal legislative bodies, CTC, and other agencies in funding, programming, and policy matters. Convene meetings with state, federal, and legislative staff members. Support the continuing education of Commissioners to increase their understanding of transportationrelated issues at local, state, and federal levels to maximize the effectiveness of the Commission in affecting policy and funding actions. (Policy Goal: Communications) Objectives: Provide orientation training for new Commissioners. Produce and distribute a monthly newsletter, On the Move, highlighting actions and activities of the Commission. Provide periodic educational workshops or study sessions for Commissioners. Provide on-going up-dates to Commissioners, via , on topical issues including projects, funding and newsworthy events impacting the Commission. 92 Riverside County Transportation Commission

102 Develop and maintain an information program which educates the public and other stakeholders on the roles and responsibilities of the Commission as it relates to accomplishments achieved through Measure A or other funding sources controlled or administered by the Commission. (Policy Goals: Communications, Financial & Administration) Objectives: Expand, maintain, and update information on the Commission s website including individual project websites and social media. Annually produce a report that informs the public regarding Measure A progress and other Commission programs. Issue news releases to the local media announcing significant achievements and providing information on Commission actions and activities. Develop and maintain open lines of communication with news reporters to facilitate adequate and accurate news coverage. Schedule periodic media information briefings or news conferences when a particular issue warrants it. Expand the stock of video footage for use in production of cable television spots that feature transportation projects funded and/or implemented by the Commission. Periodically use cable television and other forms of media such as internet sites and blogs, if appropriate, to communicate information to the public regarding the Commission s activities and services. Coordinate and oversee message content of all Commission publications and communications to provide uniformity of message and direction. Support the development and planning of projects in regard to public outreach and communication efforts. Require the use of Measure A project/program signage by funding recipients to increase public awareness of Measure A accomplishments. Continue to administer and expand the use of the Speakers Bureau to reach community members in service and other organizations. Monitor and distribute media coverage from various outlets in the County and throughout the region to Commissioners and staff to enable them to closely follow transportation policy trends. Provide oversight and coordination to Commission departments in the development of communications materials. Foster and maintain effective communications with other agencies to heighten their understanding of the roles and responsibilities of the Commission and increase interagency coordination and cooperation. (Policy Goal: Communications) Objective: Assign designated staff members to attend other agency meetings and require staff to provide written/verbal communication on topics of discussion during regular staff meetings. Legislative Affairs and Communications Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Speakers bureau presentations Legislative action submittals to Commission Southern California legislative staff roundtables Riverside County Transportation Commission 93

103 Finance Mission Statement: To safeguard the Commission s assets and maintain strong and prudent fiscal controls in investing, accounting, budgeting, procurements, and financial reporting including ongoing disclosure to all interested parties. Seek financing alternatives that complement the Commission s strategic direction. Chart 28 Finance Support Costs 7% Professional Costs 36% Debt Service 49% Salaries and Benefits 8% Expenditures The Finance Department s total budget is $10,212,700 (Table 49) and reflects a 2% increase over the prior year s budget. Department staffing costs will total $840,300, reflecting an increase due to FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs of $3,701,700 include various services related to general and specialized legal, financial and investment advisory, external and internal audits, debt management, CAFR and annual budget graphic design, and procurement. Support costs of $664,700 include insurance, printing, and staff training. Capital outlay of $6,000 includes ERP updates. A transfer out of $5,000,000 is related to funding a portion of the debt service interest payments from the 2009 Measure A Western County bond financing program. Table 49 Finance Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 832,600 $ 828,600 $ 774,000 $ 840,300 $ 11,700 1% Professional Costs Legal Services 340, , , ,000 50,000 22% Audit Services 392, , , ,000 33,000 7% Financial Advisory 70, , , ,000 95,000 51% Professional Services - 3,174,700 2,652,100 2,249,000 2,661,700 9,600 0% General Total Professional Costs 3,977,800 3,514,100 3,119,900 3,701, ,600 5% Support Costs 516, , , ,700 7,900 1% Capital Outlay 7,000-5,500 6,000 6,000 N/A Transfers Out 10,000,000 5,000,000 5,000,000 5,000,000-0% TOTAL Finance $ 15,333,900 $ 9,999,500 $ 9,547,000 $ 10,212,700 $ 213,200 2% 94 Riverside County Transportation Commission

104 Finance Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Accounting Assistant Accounting Supervisor Accounting Technician Administrative Assistant Chief Financial Officer Executive Director Finance Manager/Controller Procurement Analyst Procurement Manager Senior Office Assistant FTE Department Budget Overview Department Description Finance and Accounting Commission resources are allocated to assure financial stability and fiscal accountability. Finance activities include investing the Commission s cash resources, planning and directing financial transactions, and subsequent monitoring of legal and regulatory requirements. Adequate cash flow must be maintained while at the same time prudently investing operating and capital funds. Borrowing needs are carefully planned using both short- and long-term debt. Once debt is issued, there are ongoing responsibilities including interaction with financial advisors, bankers, dealers and remarketing agents, underwriters, bond counsel, bond insurers, trustees, issuing and paying agents, arbitrage consultants, and rating agencies as well as providing regular and consistent information disclosure to investors. Fiscal accountability involves receiving all funds due the Commission, paying all Commission obligations, maintaining the general ledger, reporting regularly on the Commission s fiscal results, and preparing and monitoring the budget. Fiscal accountability requires the coordination of budget planning and monitoring and the accurate and timely accounting for all funding sources, including compliance with all applicable laws and regulations governing those funds. Accounting encompasses cash receipt and disbursement functions, maintenance of the general ledger including project cost accounting, payroll processing, quarterly and annual financial reporting, and retention of and coordination with independent auditors. The Commission also recognizes the importance of accountability for the organization. As a result, the Commission is highly regarded by individuals, peers, other organizations, and government officials at a local, regional, state, and national basis. A formal organizational accountability program was approved in January 2006 to address fraud risk, ethical conduct, financial and operational disclosure, and maintaining the public s confidence in the Commission. Accordingly, measures have been implemented based on a conceptual framework related to oversight, reporting, fraud, internal control, and ethics. Procurement Management In the management of the procurements and contracts process, the responsibility of the procurement management function is to ensure that the procurement policies approved by the Commission are followed and procurement procedures are updated as required. The function is responsible for the purchase of all goods and services, except for real property acquisition, in accordance with Commission policies and federal and state funding requirements to ensure the implementation of the Commission s projects and programs. This includes the administration of the Commission s DBE and SBE programs. Procuring goods and services for the Commission is a cooperative effort. All Commission staff involved in procurements for their projects and programs are responsible to employ sound judgment and appropriate standards of ethics and fairness to procure in a manner most advantageous to the Commission. The Procurement division also conducts a review of and updates insurance coverage for the Commission and its properties. Riverside County Transportation Commission 95

105 Key Assumptions The commercial paper program will continue as a short-term financing vehicle for the Western Riverside County Delivery Plan projects; however, one of the two letters of credit providing credit and liquidity support for the commercial paper program will be terminated and the commercial paper program reduced to $60,000,000 after financial close for the SR-91 corridor improvement project. The sales tax revenue bond SBPAs facilities will be maintained with the current short-term ratings. Proceeds from the sales tax revenue bonds, toll revenue bonds, and TIFIA loan will be used to fund the SR-91 capital improvement project. Arbitrage calculations related to the outstanding debt issues will be performed by a consultant on an annual basis. The Commission will pay 100% of the annual required contribution related to postretirement health care benefits based on a new actuarial valuation. Directors and program managers will continue to have adequate project budget and accounting information to make informed decisions. Construction fund bond proceeds will be invested in mid-term securities that mature in accordance with the construction draw schedule. Operating funds will be invested in state and local agency investment pools for short-term liquidity purposes and in mid-term treasury and federal agency securities as available funds are identified. The overall interest rate is conservatively projected to be.25% for state and County investment pools and.75% for funds held by the tollsupported debt trustee for debt service and construction funds. Procurements will be conducted in accordance with the Commission s procurement policy manual. Procurement will continue to develop and implement a standardized procurement filing system and maintain centralized procurement files. Procurement will conduct outreach activities to encourage DBE and SBE participation in various contracts. Accomplishments Conducted an internal audit review of the prime/sub-contractor invoice process. Issued a request for proposal and awarded a contract for trustee services for the sales tax revenue bonds construction and toll revenue bonds proceeds in connection with the SR-91 corridor improvement project. Issued a request for proposal and awarded a contract for investment management services for operating and capital funds. Developed a plan of finance for the SR-91 corridor improvement project with the assistance of financial advisor and underwriters as well as various counsel. Submitted a TIFIA loan application followed by a presentation to the U.S. DOT TIFIA Joint Program Office and approval of a TIFIA loan for the SR-91 corridor improvement project. Negotiations on the TIFIA loan are expected to conclude with the execution of a TIFIA loan agreement in July Presented the SR-91 corridor improvement project plan of finance to the three rating agencies in order to maintain the Commission s AA rating related to sales tax revenue bonds and obtain investment grade ratings for the toll revenue bonds and TIFIA loan. Obtained financial reporting excellence award from the Government Finance Officers Association (GFOA) (20th year) related to the CAFR for the fiscal year ended June 30, Obtained GFOA distinguished budget award (17th year) for annual budget for the fiscal year beginning July 1, Generated over $2 million in additional Measure A sales tax revenue since the engagement of a firm in January 2008 to provide sales tax audit services in order to detect and correct reporting errors. Participated in the development of the three-party toll operations agreement related to the RCTC 91 Express Lanes. Revised the Procurement Policy Manual to provide comprehensive guidance regarding federal, state and local procurement policies and produced a Quick Reference Guide poster related to procurements. Implemented PlanetBids Online system software, an e-procurement solution for online vendor and procurement management. Completed a FTA procurement systems review. 96 Riverside County Transportation Commission

106 Participated in numerous small business networking activities and met with potential DBE and SBE vendors. Hosted a small business forum for military veterans and DBE/SBEs to learn about contracting opportunities available through the Commission. Participated in the Member Agency Advisory Committee to provide guidance and recommendations regarding Metrolink finances. Major Initiatives Finance and Accounting The commercial paper program has been in place for over eight years and has provided short-term, advance funding for projects included in the 2009 Measure A and related Western Riverside County Delivery Plan. Commission management will continue to consider appropriate uses of commercial paper to advance 2009 Measure A projects. The letters of credit supporting the commercial paper program expire in October 2014; however, the Commission will terminate one of the two letters of credit and reimbursement agreements providing credit and liquidity support in order to reduce the commercial paper program to $60,000,000. In connection with the 2009 variable rate bonds, the Commission entered into SBPAs with JPMorgan, which were extended through September The Commission will monitor the credit quality of the banks providing these liquidity facilities for any actions which may affect the short-term ratings of the commercial paper program and 2009 Bonds. Staff continues to develop a comprehensive financing plan to support the highway and rail capital projects to be delivered through 2019 and to assess future financing requirements. This financing plan incorporates revised sales tax revenue forecasts as well as other potential federal, state, and local revenue sources, including tolls. Based on the updated cost estimates for these projects and identified revenues, potential project funding shortfalls may result in project deferrals or require alternative financing strategies. Financing alternatives to be considered include commercial paper, long-term bond issues to finance Measure A and toll projects, and federal loan programs. A significant effort the past few years related to a plan of finance for the SR-91 corridor improvement project will culminate in July 2013 with financial close of the 2013 Sales Tax Bonds, 2013 Toll Bonds, and federal TIFIA loan. During FY 2013/14, the Commission will consider financing opportunities related to the 2009 Bonds and 2010 Bonds that minimize exposure to fluctuating interest rates and federal budget issues. As a result of the significant financing proceeds received in connection with the SR-91 corridor improvement plan of finance, the Commission will invest such funds as well as available operating funds with the advice and assistance of investment managers and advisors. Investments will be made in accordance with the Commission s priorities of safety, liquidity, and then yield. The investment managers and advisors will also review the Commission s investment policy for any required updates and other recommendations. To ensure that the Commission receives the proper amount of Measure A sales taxes, the Commission will continue to engage a firm to conduct sales tax audit services. The firm will also provide quarterly sales tax analysis and reporting services, of which a summary report is presented to the Commission on a quarterly basis. The Commission will also engage a consultant to provide semi-annual sales tax forecasts. The Finance Department will continue to keep abreast of GASB technical activities affecting the Commission s accounting and financial reporting activities. Various new standards will be considered for early implementation as part of the preparation of the CAFR for the year ended June 30, The Finance Department will also continue to consider changes to accounting and financial reporting related to the commencement of toll operations in FY 2016/17. The Finance Department will continue to update its ERP system that integrates data processing across the Commission, automate administrative processes, and embrace data integration. The continued ERP efficiency gains include an automated paperless workflow system, advanced project accounting, multi-year budgeting, multi-year contract management, grant tracking, and readily available scanned images that can be retrieved by all users. Procurement Management A centralized procurements process will continue to be implemented to manage requests for proposals, qualifications, invitations for bids, small purchases, and related contract administration issues. The Procurement Policy Manual was recently updated to reflect current best practices and applicable federal, state, and local laws and regulations. Accordingly, the procurement system will strengthen controls to ensure consistency in the development and application of procurement policies and procedures and adherence to applicable laws and regulations, especially those related to federal and state grants. Procurement Management is responsible for developing, implementing, and monitoring DBE and SBE program requirements in coordination with contractors and other appropriate officials. Duties and responsibilities include establishing DBE attainment goals, monitoring reporting and utilization by contractors, gathering and reporting statistical data and other information as required, reviewing third party contracts and purchase requisitions for compliance with the program, ensuring that bid Riverside County Transportation Commission 97

107 notices and requests for proposals are made available to DBEs and SBEs in a timely manner, reporting to and advising the Executive Director and Commission on DBE and SBE matters, and providing outreach to DBEs and SBEs to fully advise them of contracting opportunities. During FY 2013/14 the Commission will host and attend several outreach events in order to acquaint potential vendors with the Commission s procurement procedures and opportunities. Staff also consults with the Commission s insurance broker in procuring competitive quotes, on an annual basis, for various insurance coverages secured by the Commission in order to provide cost effective solutions to meet its diverse insurance needs. Department Goals Protect the Commission s cash resources by regular monitoring of investment practices to ensure consistency with established investment policy. (Policy Goal: Financial & Administration) Objectives: Utilize investment management and advisory services to prudently invest operating and capital funds in accordance with the Commission s investment policies. Achieve a rate of return at least equal to the County of Riverside Treasury Pool rate for operating funds. Establish an appropriate benchmark for the investment of debt proceeds. Manage the Commission s outstanding debt ensuring compliance with applicable laws and regulations and continued investor awareness and receptivity to the Commission s program. (Policy Goal: Financial & Administration) Objectives: Provide an annual update and review of the debt programs with one or more of the rating agencies no later than June 30, Meet continuing disclosure requirements of the debt programs and comply with the TIFIA loan reporting requirements. Prepare arbitrage calculations as required. Ensure the Commission and funding recipients comply with Measure A and TDA laws and regulations as they relate to the annual financial and compliance audits as well as close cooperation and coordination with independent auditors. (Policy Goal: Financial & Administration) Objectives: Minimize the number of substantive management letter comments and compliance findings requiring corrective action by the Commission. Maintain appropriate fiduciary review and monitoring procedures for Measure A recipient and TDA claimant audits. Maintain fiscal and budgetary control through monitoring of periodic results and ensuring consistency with the Commission s strategic direction. (Policy Goal: Financial & Administration) Objectives: Obtain the GFOA Distinguished Budget Award for the FY 2013/14 budget. Facilitate a comprehensive budgeting approach that effectively involves management staff, requiring full accountability for all department expenditures. Fund 100% of the annual required contribution related to the postretirement health care benefits. Assure fiscal accountability for Commission funds with general ledger accounting and financial reporting consistent with generally accepted accounting principles. (Policy Goal: Financial & Administration) Objectives: Ensure proactive communication and timely responses to any noted errors, corrections, and budget transfers related to program management reviews of accounting and budget information. Obtain an unqualified opinion on the basic financial statements. Receive financial reporting excellence award from the GFOA related to the preparation and issuance of the CAFR. Stay abreast of finance, accounting, and financial reporting developments by attending training and conferences in these general areas or in specialized areas applicable to job duties. 98 Riverside County Transportation Commission

108 Update and maintain the fiscal policies and procedures manual. Update and maintain complete accounting desk procedures manual for ERP system to facilitate cross training. Assist local governments with Measure A funding by providing timely allocation of funds for eligible projects and financing opportunities to the extent funding does not impact other programs and is financially feasible and prudent. Maintain ERP system to reflect technical updates and current technology. Commence development of accounting and financial process with the RCTC 91 Express Lanes operator and the Orange County Transportation Authority (OCTA) in preparation for start of toll operations in Develop and maintain an organizational accountability program encompassing financial and operational functions. (Policy Goal: Financial & Administration) Objectives: Establish and implement measures related to oversight, fraud, internal control, and ethics. Issue annual disclosure statements related to financial and operational responsibilities. Procure goods and services from qualified consultants, contractors, and other vendors in accordance with laws and regulations at a competitive price. (Policy Goal: Financial & Administration) Objectives: Assist departments and programs to procure and obtain goods and services in a cost effective and efficient manner. Ensure that procurements are conducted in accordance with a comprehensive Procurement Policy Manual. Ensure that agreements, amendments, and MOUs are entered into with appropriate legal considerations. Process agreements, amendments, and MOUs in a timely and efficient manner. Ensure that consistent procedures, processes, and tools are used for procurements. Review existing procurement policies and procedures. (Policy Goal: Financial & Administration) Objectives: Ensure that the procurement polices reflect Commission requirements and practices. Segregate policies and procedures so that procedures can be easily updated without Commission approval. Ensure that procurement policies and procedures reflect the requirements of the Commission s federal, state, and other funding sources. Provide an easy to read desktop quick procurement policies reference guide for use by Commission staff. Maximize the value received for the Commission s expenditure of public funds. Provide all vendors an equal opportunity to provide needed goods and/or services. Finance Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Sales tax revenue bond rating Aa2/AA+/AA Aa2/AA+/AA Aa2/AA+/AA Aa2/AA+/AA Toll revenue bond rating N/A N/A N/A BBB-/BBB- TIFIA loan rating N/A N/A N/A BBB- Commercial paper rating P-1/A-1+ P-1/A-1+ P-1/A-1+ P-1/A-1+ GFOA Certificate of Achievement Awarded Awarded Awarded Awarded GFOA Distinguished Budget Award Proficient Proficient Proficient Proficient Invoices processed 4,100 5,545 5,600 5,800 Checks processed 3,100 3,762 3,800 4,000 Audit adjustments Average yield on investments.50%.30%.25%.25% operating/.75% debt proceeds Payroll hours processed 72,700 82,209 87,300 95,000 Accounts receivable invoices processed Agreements processed Riverside County Transportation Commission 99

109 Small Business Expo 100 Riverside County Transportation Commission

110 section 6.2 Regional Programs section 6.2 regional programs Ridesharing

111 Planning and Programming Mission Statement: To exert leadership in transportation planning and the programming of funds to improve mobility, foster environmental stewardship, expedite project delivery, and form partnerships with regional, state, and federal agencies resulting in maximum returns on local investment. Support a coordinated regional approach to solving transportation funding issues. Chart 29 Planning and Programming Professional Costs 8% Projects and Operations 74% Salaries and Benefits 18% Expenditures Planning and Programming expenditures of $5,845,000 have increased 17% from last year s budget (Table 50). Salaries and benefits represent 18% of total expenditures and reflects an increase due to FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional services totaling $487,500 have increased 34% compared to the FY 2012/13 budget due to walkability grant activities and air quality assessments. Professional services include CMP implementation efforts, air quality analysis, project database management, local and regional planning activities, on-call goods movement consultants, and legal services. Projects and operations costs have increased 14% due to an increase in LTF disbursements for planning and programming activities and rail allocations related to grade separation projects in the cities of Corona, Jurupa Valley, and Riverside and the County. Table 50 Planning and Programming Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 904,800 $ 835,800 $ 959,200 $ 1,032,700 $ 196,900 24% Professional Costs Legal Services 17,200 21,900 17,000 21,500 (400) -2% Professional Services - 115, , , , ,100 37% General Total Professional Costs 132, , , , ,700 34% Support Costs 17,400 24,300 16,400 23,300 (1,000) -4% Projects and Operations Special Studies 147, , , ,000 4,000 1% Operating and Capital Disbursements 2,175,800 3,161,200 2,115,000 3,687, ,300 17% Total Projects and Operations 2,323,600 3,771,200 2,365,000 4,301, ,300 14% Capital Outlay 21, N/A TOTAL Planning and Programming $ 3,399,900 $ 4,994,100 $ 3,538,600 $ 5,845,000 $ 850,900 17% Riverside County Transportation Commission 101

112 Planning and Programming Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Chief Financial Officer Deputy Executive Director Executive Director Goods Movement Manager Planning and Programming Director Planning and Programming Manager Procurement Analyst Project Development Director Senior Staff Analyst Staff Analyst FTE Department Budget Overview Department Description The Commission is responsible for short- and long-range transportation planning and programming. Short-range planning and programming involves the development of the five-year STIP and preparation of the five-year FTIP for Riverside County. These programming documents identify projects and their respective funding and schedules. The Commission s involvement with long-range planning efforts includes the coordination and input into planning efforts throughout the County and southern California region. These efforts involve participation in local, bi-county, and regional corridor studies, including the continued development of the CETAP corridors. Regional planning efforts are incorporated in the RTP (a 30-year transportation plan) developed by SCAG in conjunction with county transportation commissions, subregional agencies, local agencies, transit operators, and other interested parties. The Commission is responsible for approving projects for Regional Improvement Program (RIP) funds in Western County and coordinating with Caltrans on the selection of Interregional Improvement Program (IIP) funds as part of the STIP approved by the CTC every two years. The Commission has delegated the authority to nominate projects for RIP funds in the Coachella Valley to CVAG. A MOU between the city of Blythe, representing Palo Verde Valley, and the Commission allows the city to trade RIP funds for local Measure A funds. In November 2006, Proposition 1B was approved by the voters of California, which provided $20 billion in transportation infrastructure funding. Various program categories were established including a $2 billion infusion into the STIP. Other competitive program categories included CMIA and TCIF; Riverside County was successful in receiving CMIA funding for the SR-91 HOV lanes and I-215 widening projects as well as TCIF funding for 12 grade separation projects and a ground access improvement project at the I-215/Van Buren interchange. The Commission is a member of the Southern California Consensus Group that developed and submitted project proposals for the TCIF program. As with the RIP and IIP funds, Proposition 1B funds are administered and allocated by the CTC. Given the current economic conditions, Proposition 1B funds have been the most reliable state funding source for transportation projects. Proposition 1B CMIA funds are legislatively set to expire by the end of SLPP funding is another program authorized by Proposition 1B. A formula program has been established for transportation agencies that administer self-help transportation sales tax programs. Riverside County s formula share over the five-year program was $ million. SLPP funds must be programmed for construction and matched by the sales tax on a basis. The Commission approved three projects in Western County, and CVAG selected six projects in the Coachella Valley. SLPP fund allocation requests must be submitted and approved by the CTC s June 2013 meeting. Programming specifically involves the development, review, and approval of projects for various funding programs. Additionally, programming involves the monitoring of projects from project selection through construction close-out. In order to receive federal funds and approvals, all projects funded with federal and state dollars, or local projects that are regionally significant, must be included in the RTP and FTIP. SCAG is responsible for incorporating all six county (Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura) transportation improvement programs into one regional programming 102 Riverside County Transportation Commission

113 document and conducting a conformity analysis with the adopted air plans to ensure compliance with the National Ambient Air Quality Standards. The RTP is updated every four years, and the FTIP update effort is performed every 18 to 24 months. Multiple amendments occur within each RTP and FTIP cycle. FTIP amendments can occur for minor project changes that do not affect the conformity analysis. The Commission is responsible for allocating the following local, state, and federal funding sources: Local Sources: 1989 and 2009 Measure A Western County TUMF regional arterial program State Sources: SB821 bicycle and pedestrian projects RIP Proposition 1B Federal Sources: Congressional discretionary programs, such as ARRA Transportation Alternatives Program (TAP) (formerly TE) STP CMAQ The Commission also serves as the CMA for the County and is responsible for developing and updating the CMP. The CMP was developed to meet state legislation and federal Congestion Management System (CMS) requirements, which includes an enhanced traffic monitoring system. The CMP s highways and regional arterials are regularly monitored to ensure that they are operating at acceptable levels (above Level of Service (LOS) F ). If a deficiency occurs along the CMP system, a deficiency plan must be prepared that identifies mitigation measures and/or projects that will improve the LOS to E or higher. Partnership development, public and private, is critical to the Commission s continued success in affecting positive transportation decisions to meet future demands. Commission staff works in close coordination with its partners to advocate for federal, state, and local funding to improve mobility and mitigate the impacts of goods movement. Key Assumptions The Commission will continue its efforts in working with transportation partners to streamline and improve project delivery. Consultant contracts are maintained to provide assistance with the CMP, air quality analysis, project database management, and other related planning activities. The Commission will utilize all available funding sources on transportation projects identified in the 1989 Measure A and the 2009 Measure A as well as other regional high priority projects, including TUMF regional arterial projects and grade separation projects. The Commission will continue participation in local, bi-county, and regional planning efforts representing the interests of the County. The Commission will work with the CTC, Caltrans, and local project sponsors to implement projects funded with STIP-RIP, CMIA, SLPP formula, and TCIF to ensure that the programming and allocations are consistent with project schedules. The Commission will continue to assist local project sponsors with the processing of state and federal funding approvals/obligations/allocations and overall project delivery. Riverside County Transportation Commission 103

114 Accomplishments Processed 32 STIP actions that consisted of but were not limited to: allocations, financial allocation amendments, programming of funds, future consideration of funding, and baseline agreement amendments. Completed the technical studies and prepared the draft recirculated environmental document and project report for the modified Mid County Parkway project. Completed four local agency agreements and/or amendments for the implementation of TUMF regional arterial projects. Processed over 53 project amendments into the 2011 FTIP and 148 project amendments in the 2013 FTIP. Coordinated with Caltrans and project sponsors regarding the obligation of federal and state funding, met obligation deadlines, and prevented loss of funding to the County. Monitored federal funding expenditures of inactive projects to ensure funds are not deobligated. Advised local agencies and coordinated the use of toll credits and local match waiver for federally funded projects funded at the maximum reimbursement level, saving the Commission and local agencies up to $23.3 million in local match funds. Of the $23.3 million, $1.66 million toll credits were programmed and obligated in FY 2012/13. Reviewed and approved five-year capital improvement plans (CIP) for each local agency in the County. Processed one RTP project amendment. Worked with Southern California agencies to develop MAP-21 funding distribution recommendations. Monitored expansion projects for each of the Ports. Monitored TCIF project development to ensure timely completion of the 11 grade separations and a ground access improvement project to improve the I-215/Van Buren interchange as required for the $162.7 million Proposition 1B TCIF funds. One project (Columbia Avenue in Riverside) was completed in March 2010; an additional project (Magnolia Avenue in Riverside) was completed in January Currently under construction are the Iowa Avenue grade crossing and the I-215/Van Buren interchange project. Two additional grade separation projects, Auto Center Drive in Corona and Streeter Avenue in Riverside, are projected to start construction by March The remaining six TCIF projects will start construction no later than January Developed the 2012 Grade Separation Funding Strategy: A Blueprint for Advancing Projects. Continued to take a leadership role and work collaboratively with the five-county consensus working group, Mobility 21, SCAG s Southern California National Freight Gateway Collaboration, and the CAGTC on goods movement issues. Major Initiatives Each county transportation commission throughout the state is resposible for programming RIP funds, which represents 75% of the total STIP funding available statewide for capital enhancement projects. The 75% funding level is then further distributed with 60% of the funds allocated to Southern California and 40% to Northern California. A population formula is then applied to determine county funding levels called county shares. The Commission is responsible for ensuring that projects funded with STIP funding are administered and implemented consistent with CTC and Caltrans policies. It is the Commission s policy to set aside 2% off the top for staff support to carry out STIP PPM activities. The remaining RIP funds are further distributed geographically among Western County, Coachella Valley, and Palo Verde Valley per the Commission s intra-county STIP formula. The Commission also may consider a call for projects for RIP discretionary funds. Federal TAP funds are also administered through the STIP. TAP funds are not subject to general fund diversions; however, TAP funds are authorized each year by the passage of the state budget. MAP-21 directs TAP funds to be distributed through a minimum of four competitive processes. Federal and state guidance will be issued over the next few months that will outline the distribution and administration of the TAP funds including project categories. CMIA and TCIF funds are monitored by Caltrans and the CTC. Baseline agreements are developed for each project under these programs. Any changes to project funding, scope, or schedule will require an amendment to the baseline agreement. The CTC allocates the CMIA and TCIF funds, and the process for allocating the funds is similar to the process established for STIP funds. TUMF funds are collected and administered by WRCOG. Approximately half of the TUMF funds collected are set aside for WRCOG s zone projects and regional transit facilities. After the deduction of an administrative fee, WRCOG provides the other half of the TUMF revenues to the Commission. These funds are further distributed to the Commission s TUMF CETAP corridors and regional arterial programs. In September 2004, the Commission established a five-year program and approved the programming of 24 regional arterial projects. To date, $100 million has been programmed for TUMF regional arterial projects. Due to fluctuating TUMF revenues over the past few years, $11.5 million in 2009 Western County Measure A regional arterial (MARA) funds and $25.5 million in TUMF CETAP funds were programmed on two projects to fulfill the 104 Riverside County Transportation Commission

115 TUMF commitment. Of the 24 TUMF regional arterial projects, six projects have completed construction, eight projects are currently under construction or will begin construction in FY 2013/14, and five additional projects are anticipated to begin construction in FY 2014/15. Six projects have been placed on hold at the request of the local agency. Planning and Programming also manages the 2009 Western County MARA program. The expenditures for these regional arterial capital projects are included in the Capital Project Development and Delivery Department budget. Transportation Planning The Commission s role in planning throughout the year will involve working with Federal Highway Administration (FHWA), FTA, Caltrans, SCAG, sub-regional agencies, local agencies, and the other county transportation commissions in the region on various planning efforts relative to the implementation of the 2012 RTP/Sustainable Communities Strategy (SCS), corridor studies, goods movement studies, and efforts to update transportation computer models and project databases. In FY 2013/14 the Commission will continue its work efforts on the intra-county CETAP corridors. An updated environmental document and project report has been prepared for the Mid County Parkway to address changes made to the project limits, which are now between SR-79 and I-215. The recirculated/supplemental draft environmental document was released for public review and comment in January Final project approval and conclusion of the environmental phase is expected in Spring Work on a portion of the north-south CETAP corridor is underway with the Commission s I-215 south widening project and improvements to the French Valley Parkway interchange being led by the city of Temecula. Given funding constraints, work on the two inter-county CETAP corridors by the Commission is not expected in this fiscal year. The FY 2013/14 CMP effort will involve updating the CMP (as required by federal CMS regulations). The update will involve an analysis of the level of service on the CMP system, review and incorporation of any new state and federal requirements, and aligning requirements for consistency with the RTP/SCS. Transportation Programming As mentioned above, the Commission is responsible for allocating various local, state and federal funds. These funds are monitored to ensure that regulations are adhered to in order to prevent funds from lapsing. The following summarizes the status of these funding programs: Local Funding Western County TUMF Regional Arterial Program Project monitoring of TUMF regional arterial projects by Planning and Programming staff will occur according to the agreements between local agencies and the Commission. In addition, Commission staff will work with local agencies regarding amendments to agreements and any issues regarding project delivery. To date, 24 project agreements have been executed totaling approximately $100 million of TUMF regional arterial funds. During FY 2013/14, a total of $46 million is anticipated to be reimbursed to local agencies for TUMF regional arterial projects. These project expenditures are included in the Capital Projects Development and Delivery Department Measure A Western County Regional Arterial Program A call for projects is being planned for the 2009 Measure A Western County Regional Arterial program. To date, this funding source has been reviewed for qualifying projects on a case by case basis. Two TUMF regional arterial projects and three MARA projects have been approved for these funds totaling $18.8 million. The balance of available MARA funds will be included in the upcoming call for projects, which will also include federal fund sources Measure A Local Streets and Roads In order to receive Measure A local streets and roads funding, each year local jurisdictions are required to submit their fiveyear CIP based on Measure A revenue projections. Additionally, the local jurisdictions are required to submit a Maintenance of Effort (MOE) certification consistent with adopted MOE guidelines and participate in the MSHCP and in the local agency s respective TUMF program, as applicable. Amendments to CIPs are processed administratively for minor changes that do not affect the total programmed amount or are within budget levels. Significant changes require Commission approval. State Funding STIP - RIP/IIP STIP funding continues to be unstable with a minimal amount of programming capacity resulting from the last two STIP cycles. Proposition 1B has provided funding for STIP projects and other bond program categories such as CMIA, TCIF, and SLPP. However, the State s declining revenues and budget impasses have limited the frequency and timing of bond issuances. The recent economic challenges created an advantage for construction projects with a low bid environment. Cost savings for STIP and Proposition 1B projects have resulted in additional programming capacity, and the Commission will be prepared to apply for these additional funds. This year Commission staff will continue to deliver projects programmed in the 2012 STIP Riverside County Transportation Commission 105

116 and work with local agencies to ensure that bond funds are allocated by the respective deadlines. Staff will also be involved with the development of the 2014 STIP guidelines and federal/state Active Transportation (AT) program development working with the CTC, Caltrans, SCAG, and regional transportation planning agencies. SB821 Annually, the Commission releases a call for bicycle and pedestrian projects in April. These projects are funded by 2% of LTF revenues, as required by SB821. The Commission establishes an evaluation committee to rank eligible projects that meet the established criteria. Project recommendations are approved by the Commission in June of each year. The Commission approved seventeen projects in the amount of $1.635 million for FY 2012/13. The FY 2013/14 call for projects will have new funding of approximately $1.38 million available for award. These expenditures are included in the LTF special revenue fund, which is reflected in the Public and Specialized Transit Department since this fund s activities relate primarily to transit funding. Federal Funding CMAQ, STP, and TE The Commission is responsible for allocating CMAQ and STP funds to transportation projects in the County. In 2003, the Commission directed staff to program SAFETEA-LU funds (CMAQ and STP) to projects that were impacted by the state budget crisis and/or the rise in construction material costs with the exception of the CMAQ funding that is apportioned to the Salton Sea Air Basin (SSAB). The Commission delegates the selection of projects for CMAQ funds apportioned to the SSAB to CVAG. In 2007, the Commission approved 25% of future CMAQ and STP funds for grade separation projects approved in the Proposition 1B TCIF program. With the decline in State revenues over the past few years, the Commission has focused funds toward high priority regional projects that are ready for construction. Through the passage of MAP-21, CMAQ funding levels and project categories have changed to include the consideration of Particulate Matter (PM) 2.5 non-attainment areas and direct funding to PM 2.5 projects such as diesel retrofits. Funding levels will be identified in the near future as FHWA develops new CMAQ guidance. MAP-21 restructured the former TE program, which was administered and programmed in the STIP by the CTC. The State is currently developing an AT program that will consolidate federal and state funding that traditionally funded bicycle and pedestrian projects. Although TAP funds are federal, state budget authority must be granted in order for the funds to be allocated by the CTC. If the State budget approval is delayed, the TAP funds cannot be allocated until the State budget is passed. In 2005, the Commission approved 18 projects totaling $17.6 million. To date, 17 projects have been delivered, and the remaining project will be allocated in FY 2012/13. In FY 2011/12 the Commission partnered with Caltrans and wildlife agencies on a TE project in the Santa Ana Canyon. The Commission approved use of regional TE funds for the improvement of the B Canyon wildlife corridor, which is widely used by small to mid-sized mammals between the Cleveland National Forest, Santa Ana River, and the Puente-Chino Hills. Funding from the partner agencies is still being secured. Project Monitoring The high demand for reporting and monitoring the progress of projects is essential to prevent funds from lapsing. The programming project database, Fundtrack, allows for efficient monitoring of project schedules and funding. Local agencies have been provided access to project information as well as the capability to update their respective project information in a timely manner. The Planning and Programming Department provides assistance to the Capital Project Development and Delivery Department and local agencies by participating in regular project delivery team meetings and preparing and submitting requests for authorization (RFA)/allocation of federal and state funding. In addition, Programming monitors allocation and award deadlines, expenditures, project closeouts, and inactive projects of federal and state funded projects to prevent loss of funds. Regional Issues The Commission s work effort will remain focused on facilitating ongoing commitments as well as being responsive to various emerging issues. These include bi-county issues with the counties of San Bernardino, Orange, Imperial, and San Diego as well as goods movement. The Commission will continue working with partners from the Southern California Consensus Group (Ports, Alameda Corridor Transportation Authority, Alameda Corridor East Construction Authority, SANBAG, OCTA, Los Angeles County Metropolitan Transportation Authority, Ventura County Transportation Commission, SCAG, and SCRRA) regarding goods movement issues. A priority will be to coordinate with legislative staff and advocacy groups such as Mobility 21 and CAGTC to secure funding through the federal transportation bill for goods movement-related needs such as the funding of Alameda Corridor East grade separations in the County and/or the creation of a federal freight trust fund, or similar program with a dedicated and firewalled revenue structure, in order to treat the nation s multimodal national goods movement network as a system rather than individual projects. 106 Riverside County Transportation Commission

117 The Commission will continue to monitor the Ports projects for possible impacts on Riverside County by reviewing agendas and requesting notices for projects under CEQA and the Brown Act. Department Goals Build upon relationships with local, state, and federal agencies to coordinate short- and long-range planning to ensure that transportation projects receive funding and approvals. (Policy Goals: Mobility, Environmental Stewardship, Intermodalism & Accessibility) Objectives: Work with CVAG, WRCOG, Caltrans, transit operators, local agencies, and SCAG to coordinate project amendments to the 2012 RTP and/or 2013 FTIP. Provide the Commissioners information to assist in advocating Commission projects. Continue CETAP intra-county corridor work. Continue working with the RCA to implement the MSHCP. Maintain maximum flexibility in project selection for MAP-21 fund sources to serve the diverse needs of Riverside County. Continue to seek a stronger role for county transportation commissions in state and regional transportation and air quality programs in order to direct funding for programs and projects that will improve air quality and mobility in Riverside County. (Policy Goals: Mobility, Environmental Stewardship) Objectives: Support efforts to seek additional funding at the local, state, and federal levels for projects that improve air quality. Support ongoing efforts to regulate federal emission sources. Support efforts that allow more flexibility in funding transit operating and capital costs. Continue implementation of the CMP in cooperation with SCAG, WRCOG, CVAG, Caltrans, and local agencies and maintain federal certification for the CMP. (Policy Goal: Mobility) Objectives: Implement the CMP to meet federal CMS requirements cited under the metropolitan planning organization (i.e., SCAG) planning regulations. Provide data collected on the CMP system to SCAG and Caltrans for reporting on the Highway Performance Monitoring System. Provide data collected on the CMP system to local agencies and other interested parties. Continue monitoring the CMP system to ensure the minimum adopted LOS threshold is met. Continue working with Caltrans to monitor traffic conditions for the purpose of focusing transportation funds on congested corridors and system deficiencies. (Policy Goal: System Efficiencies) Objectives: Review Caltrans Performance Monitoring System count data to infill segments that currently do not have Smart Call Boxes or loop detectors to monitor traffic. Identify congested corridors for potential funding opportunities. Continue to advocate for jobs/housing balance and attracting high income jobs to Riverside County in addition to addressing intercounty congestion. (Policy Goal: Economic Development) Objectives: Participate in ongoing studies and activities regarding the jobs/housing imbalance between Orange and Riverside counties and San Diego and Riverside counties. Support the County interests pertaining to transportation planning as population, job, and housing forecasts are developed by SCAG and the State. Riverside County Transportation Commission 107

118 Maintain Fundtrack project database to allow for efficient monitoring of projects and funding with the ability to share project information with local jurisdictions. (Policy Goals: Communications, Financial & Administration) Objectives: Maintain consultant contract to manage and host the Commission s web-based project management database. Work with SCAG and other county transportation commissions to refine and maintain the SCAG regional database, including the coordination of the Commission s database with SCAG s FTIP database. Coordinate with Caltrans to assure database compatibility and promote information sharing including timely reporting of fund obligation information. Ensure maximum funding and flexibility for projects funded with STIP-RIP, Proposition 1B, and federal MAP-21 funds. (Policy Goals: Mobility, Goods Movement) Objectives: Participate in statewide efforts to implement projects and fully utilize all available funds from Proposition 1B funding programs. Work with Caltrans and the CTC to meet the intent of the Proposition 1B programs (including CMIA, TCIF, and SLPP) related to implementing projects within the timeframes specified in the baseline project agreements or programming application. Advocate that regions that program local and federal funds to replace state funding due to the state budget shortfall (or limited allocation capacity) be given high priority for repayment when funds are available, or in future programming in the next STIP programming cycle. Participate in various state and federal forums to increase funding levels, streamline programming processes, and provide flexibility in obligating funds. Support efforts advocating the continuation and protection of state transportation funding and the payback of loans taken from state transportation accounts. Advocate that RIP county share reserves receive priority programming over counties that advance shares. Continue to strategically program and fund projects in an effort to obligate and/or allocate funds in an expeditious manner for the maximum use of all available funding. Participate in Southern California Programming Roundtable meetings to ensure that 100% of federal obligation authority (OA) for CMAQ and STP funding is obligated within the SCAG region. Continue to monitor project implementation through the use of milestone reporting on a quarterly basis to maintain maximum funding levels for projects and prevent loss of funds to Riverside County. Provide support to the Commission s Capital Project Development and Delivery and Finance departments to maintain project funding and schedules and minimize programming issues. (Policy Goals: Mobility, Financial & Administration) Objectives: Provide input to the budget development process. Attend regular meetings with the Capital Projects Development and Delivery Department. Serve in an oversight role regarding project invoicing and close-outs. Prepare project agreement summaries. Coordinate project RFA/OA packages. Monitor progress of project milestones and RFAs as they are processed through Caltrans headquarters and FHWA. Prepare CTC allocation requests, extensions, and amendments for STIP and Proposition 1B funded projects. 108 Riverside County Transportation Commission

119 Provide assistance to local agencies to facilitate and streamline project delivery. (Policy Goals: Mobility & Communications) Objectives: Continue coordination of TAC meetings. Provide information regarding project programming data, including funding status, to project sponsors on a quarterly basis. Provide local agencies with recommendations on project programming to minimize unnecessary requirements and delays. Upon request, attend local agency project delivery team meetings to provide advice on programming issues. Meet regularly with Caltrans local assistance staff to monitor project submittals and resolve project implementation and obligation issues. Assist local agencies in preparing RFAs, STIP submittals, and inactive reporting justifications. Continue to work with state and federal agencies to streamline processes for funding and project approvals. (Policy Goals: Mobility, Environmental Stewardship & Communications) Objectives: Maintain relationships with key staff at regional, state and federal agencies. Participate in SCAG s National Freight Gateway Collaboration to define a system that meets the region s long-term mobility, safety, environmental, and energy needs including developing a brand specific to goods movement projects in Southern California. Identify problematic areas with project delivery and/or programming and work with federal lobbyists to develop solutions for streamlining and clarifying processes for the next federal transportation bill. Participate in regional, state, and federal forums addressing issues related to project programming, implementation, and air quality conformity. Facilitate development of regional transportation solutions that benefit Riverside County, including implementation of Proposition 1B TCIF projects and the Commission s Grade Separation Plan. (Policy Goals: Goods Movement, Intermodalism & Accessibility) Objectives: Monitor progress made in constructing the TCIF-funded projects through discussions with staff from partner agencies including Caltrans; cities of Banning, Coachella, Corona, and Riverside; and the County. Timely completion of the TCIF projects is required to demonstrate the region s ability to deliver projects consistent with the CTC s direction when the Proposition 1B funding was allocated. Determine where future efforts regarding addressing Riverside County goods movement issues would prove most effective. (Policy Goal: Goods Movement) Objectives: Identify drivers of demand for goods movement services and performance of modal systems and services as well as public benefits, specific areas of inefficiency, and the impacts of goods movement on communities. Implement the Commission s 2012 Grade Separation Funding Strategy through coordination of advocacy efforts with the Legislative Affairs and Communications Department. Facilitate public and private investments in clean air technology in support of the broader air quality programs for SCAG, SCAQMD, and Riverside County local entities. (Policy Goal: Environmental Stewardship) Objectives: Monitor the impact of AB32 (greenhouse gas emission reduction) application to Commission transportation projects. Monitor the impact of SB375 (greenhouse gas emission reduction) from light trucks and automobiles through the implementation of the 2012 RTP/SCS. Actively participate on the MSRC s TAC to ensure equitable funding is available in support of capital projects within Riverside County. Riverside County Transportation Commission 109

120 Planning and Programming Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Federal projects monitored for obligational authority delivery TUMF Regional Arterial projects monitored TUMF agreements/amendments FTIP amended projects STIP/Proposition 1B programming, allocations, amendments, and extensions for: Commission projects Local agency projects Dillon Avenue Grade Separation 110 Riverside County Transportation Commission

121 Rail Mission Statement: To develop and support passenger rail transportation options for increased mobility within Riverside County and the region. Chart 30 Rail Salaries and Benefits 4% Professional Costs 4% Support Costs 11% Projects and Operations 81% Expenditures Rail expenditures of $15,485,600 include Metrolink operations and capital support as well as maintenance and operations of the five Commission-owned and operated commuter rail stations and the Perris Transit Center (Table 51). Salaries and benefits reflect a 28% increase and is a result of an increase in FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs, which include legal and consultant services, have increased 40% due to on-call rail consultants who will be used to perform service planning and modeling for rail projects including 91 line/perris Valley Line expansion and Coachella Valley service. Support costs, which reflect a decrease of 1%, include station maintenance, media ads, printing services, and marketing incentives. Station maintenance includes property management, utilities, grounds maintenance, repairs, cleaning, and security services at the five Commission-owned commuter rail stations, adjacent parking structures, and the Perris Transit Center. Projects and operations expenditures of $12,489,200 increased 6% compared to the previous year s budget and include an operating contribution of up to $10,462,500 to SCRRA for Metrolink operations, which includes new service, and $250,000 to connect transit to Riverside Transit Agency (RTA) and Corona Cruiser buses. The Commission s commuter rail program intends to utilize existing mechanisms within Metrolink to assess and monitor operations and budget performance. Program operations relate primarily to station operations. Table 51 Rail Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 488,700 $ 496,700 $ 613,200 $ 636,500 $ 139,800 28% Professional Costs Legal Services 158, , , ,000 (21,000) -17% Professional Services - 47, , , , ,000 63% General Total Professional Costs 206, , , , ,000 40% Support Costs 1,260,100 1,735,600 1,455,900 1,723,700 (11,900) -1% Projects and Operations Program Operations 1,398,800 1,394,800 1,300,500 1,471,700 76,900 6% Engineering - 39,500 39,500 5,000 (34,500) -87% Special Studies 21, , , , % Operating and Capital 16,805,400 10,250,000 7,841,900 10,712, ,500 5% Disbursements Total Projects and Operations 18,225,900 11,834,300 9,181,900 12,489, ,900 6% Capital Outlay 21,900 65,700 56,400 48,200 (17,500) -27% TOTAL Rail Maintenance and Operations $ 20,202,600 $ 14,553,300 $ 11,564,300 $ 15,485,600 $ 932,300 6% Riverside County Transportation Commission 111

122 Rail Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Capital Projects Manager Chief Financial Officer Commuter and Motorist Assistance Manager Deputy Executive Director Facilities Administrator Multimodal Services Director Procurement Analyst Procurement Manager Project Delivery Director Rail Manager Senior Office Assistant Staff Analyst FTE Department Budget Overview Rail Operations Department Description The Commission has directed efforts in the areas of regional commuter rail, intercity passenger rail, high speed rail, and capital improvements to support enhanced passenger and freight rail service. The entire program includes elements of planning, programming, commuter rail development and support, station and corridor management, mitigation of community and environmental impacts, legislative and regulatory advocacy, and construction of capital projects. Many elements are managed or supported by other Commission departments, legal counsel, and consultants. Departmental efforts contributing to the rail program are found throughout the budget document. Coordination and consultation also occur with a variety of public and private entities including the CTC, Caltrans, California Public Utilities Commission, California High Speed Rail Authority (CHSRA), Federal Railroad Administration, FTA, Amtrak, environmental agencies, the University of California, transit providers, SCAG, WRCOG, CVAG, San Diego Association of Governments, LOSSAN Rail Corridor Agency, local governments, private freight railroads, businesses, and property owners. The Commission participates in the ongoing funding and governance of Metrolink through SCRRA, a joint powers authority consisting of the county transportation commissions of Riverside, San Bernardino, Orange, Los Angeles, and Ventura counties. The Commission holds two voting positions on SCRRA s eleven member board. Commission staff serves on the five-county TAC which negotiates service and funding levels, based upon the County s established priorities. The TAC provides technical assistance, coordination between various SCRRA and Commission departments, and linkages to local communities. Of the seven commuter rail lines operated by Metrolink, three routes consisting of the Riverside, Inland Empire-Orange County (IEOC), and 91 Lines directly serve Western County. Unlike the other SCRRA member agencies, the Commission owns and operates the commuter rail stations serving Riverside County: Riverside Downtown, Pedley, La Sierra, West Corona, and North Main Corona (Chart 31). The Commission is also the owner of and the operating partner with RTA at the Perris Transit Center, a multimodal transportation facility. Station operation and maintenance costs are included in the Rail Department budget with services currently coordinated by the Capital Projects Development and Delivery Department. New and ongoing construction projects at these stations are described in the capital budget managed by the Capital Project Development and Delivery Department. 112 Riverside County Transportation Commission

123 Serfas Club Dr. Archibald Ave. Hamner Ave. Wood Rd. Frederick Frederick St. Hansen Ave. Dunlap Dr. Menifee Rd. Pico Ave. Antelope Rd. Goetz Rd. Murrieta Rd. Nason St. Moreno Beach Blvd. Redlands Blvd. Theodore St. Day St. Pigeon Pass Rd. Perris Blvd. Chart 31 Riverside County Metrolink Station Locations Riverside County Metrolink Service Auto Center Dr. River r Rd. Rd. NORTH MAIN CORONA STATION Lincoln Ave. 2nd St. WEST CORONA STATION Main n St. Ontario Ave. 6th St. CORONA Riverside Dr. Bellegrave Ave. 6th St. Etiwanda Ave. Hidden Valley Pkwy. McKinley St. Magnolia Ave. SAN BERNARDINO COUNTY RIVERSIDE COUNTY Jurupa Rd. Limonite Ave. Clay St. La Sierra Ave. Pierce St. Pedley Rd. Van Buren Blvd. PEDLEY STATION Mountain View Ave. California Ave. Streeter Ave. Magnolia Ave. Tyler St.. RIVERSIDE- LA SIERRA STATION Valley Way / Armstrong Rd. Mission Blvd. Jurupa Ave. Central Ave. Arlington Ave. Victoria Ave. 60 Indiana Ave. Adams St. 14th St. Madison St. Lake Matthews 3rd St. Mary St. Main St. Washington St. Van Buren Blvd. Chicago Ave. A Iowa Ave. Spruce St. Alessandro Blvd. RIVERSIDE 215 Center St. Palmyrita Ave. Columbia Ave. Marlborough Ave. UCR RIVERSIDE 215 DOWNTOWN STATION RIVERSIDE HUNTER PARK STATION Trautwein Rd. Markham St. 60 MORENO VALLEY/ MARCH FIELD STATION 215 Clark St. Cactus Ave. MARCH AIR RESERVE BASE Marlborough Ave. Sunnymeady Blvd. Ramona Expressway PERRIS MORENO VALLEY Cajalco Rd. Locust Ave. Lake Perris Ramona Expressway Orange Ave. EXISTING STATIONS PROPOSED STATIONS METROLINK LINE PROPOSED PERRIS VALLEY LINE 15 Nichols Rd. Old Elsinore Rd. DOWNTOWN PERRIS STATION Forrest Dr. 74 San Jacinto Ave. 4th St. Ellis Ave. Nuevo Rd. San Jacinto Ave. Case Rd. Proposed Perris Valley Line SOUTH PERRIS STATION Ethanac Rd. Ellis Ave. 74 McCall Blvd. Porter St. Montgomery Ave. Simpson Rd. Key Assumptions Metrolink s preliminary FY 2013/14 budget is adopted by the Commission and SCRRA. In the event that additional funds are needed during the budget year, a mid-year budget adjustment will be presented to the Commission for approval. Ridership and fare revenues continue to grow slightly on the Riverside, IEOC, and 91 Lines (Chart 32). The Commission manages the station security guard contract. Estimated costs are based on the actual contract terms with a portion reimbursed by SCRRA. Riverside County Transportation Commission 113

124 Chart 32 Metrolink Average Daily Ridership 14, Line 12,000 10,000 IEOC Riverside/LA 8,000 6,000 4,000 2,000 Accomplishments Added a fifth new peak period round-trip train on the IEOC service, which is the first added peak train in over a decade on this line. This provides greater options for daily commuters. Actively participated on the LOSSAN board and supported efforts for local control for the Southern California intercity rail service. Continued to implement the recommendations of the comprehensive safety and security assessment and emergency response plan at the Metrolink stations. Successfully oversaw the new security guard contractor while implementing tougher standards and accountability in the security program. Significant improvements have been realized with more detailed and responsive reporting and monitoring of station facilities. Supported the holiday toy train event at the La Sierra and North Main Corona rail stations. The community continues to support this event with strong local participation. This event also generates needed donations for the Spark of Love Toy Drive for local charities. Major Initiatives Over the last 20 years, more than $110 million in capital improvements have been made in developing stations and securing access to support the Commission s commuter rail services operations. The development of the Perris Valley Line project and its operational impacts will continue to be pursued and evaluated, respectively. The four Perris Valley Line stations (see Chart 31) are currently completely designed. In addition, continued efforts are underway to expand peak period rail service on the IEOC and 91 Lines to better meet the needs of Inland Empire commuters. Department Goals Rail Operations Improve utilization and increase efficiency of commuter rail lines serving Riverside County. (Policy Goals: System Efficiencies, Intermodalism & Accessibility) Objectives: Support improved Metrolink system safety and security initiatives. Implement enhanced safety and security features at all stations. Work with Metrolink staff to increase patronage on Riverside County lines. Continue to expand service on Metrolink lines with increased train frequencies. Coordinate with Metrolink staff to develop future service plans to best meet the needs of Riverside County residents. Continue to monitor Metrolink s financial performance to ensure Riverside County transportation funds are used efficiently and responsibly Riverside County Transportation Commission

125 Maximize opportunities for public use of rail-related investment. (Policy Goal: Intermodalism & Accessibility) Objectives: Support transit operator efforts to expand availability and use of connecting transit in order to improve access and reduce demand on parking capacity; costs associated with transfers are currently reimbursed to the transit operators by the Commission and are budgeted. Explore track rights opportunities. Expand opportunities with the Commuter Assistance Program s park and ride operations for the designation of specific car/vanpool/buspool parking at commuter rail stations with available capacity. Expand opportunities for interline travel through coordination of schedules with Amtrak intercity and long distance trains, such as the Sunset Limited, and other Metrolink lines, including encouraging joint ticketing options. Implement energy efficient systems and generate revenue to offset maintenance costs of rail properties. (Policy Goals: Environmental Stewardship, Financial & Administration) Objectives: Explore track rights opportunities and potential for joint development opportunities at stations. Explore the installation of cell phone towers as a revenue source to offset operating costs. Explore additional revenue potential at the rail stations. Evaluate alternative and emergency power systems. Department Budget Overview Rail Development In order to expand passenger rail options throughout the County, the Commission conducts feasibility studies to assess the viability of commuter rail expansion. In 2005, the Commission completed the commuter rail feasibility study that examined the viability of extending Metrolink commuter rail service largely within existing rail rights of way. The Commission approved the study and recommended advanced study of extensions on the SJBL to Hemet/San Jacinto and Murrieta/Temecula. The next phase of Alternatives Analysis for these corridors will be pursued in future years as funding availability allows. North Main Corona Station Riverside County Transportation Commission 115

126 Wood Rd. Frederick St. Hansen Ave. Dunlap Dr. Sanderson Ave. Menifee Rd. Warren Rd. Beaumont Ave. San Jacinto St. State St. Pico Ave. Antelope Rd. Highland Springs Ave. Soboba St. Goetz Rd. Murrieta Rd. Nason St. Moreno Beach Blvd. Redlands Blvd. Theodore St. Day St. Pigeon Pass Rd. Perris Blvd. San Jacinto Branch Line The Commission holds title to and manages the 38-mile SJBL (Chart 33) and several adjacent properties, preserved for future passenger rail service. BNSF Railroad holds the freight rights in the corridor, providing service to local shippers, and performs maintenance on the line. San Jacinto Branch Line Chart 33 San Jacinto Branch Line SAN BERNARDINO COUNTY RIVERSIDE COUNTY urupa Rd. ite Ave. Clay St. La Sierra Ave. rce St. Pedley Rd. Van Buren Blvd. Mountain View Ave. California Ave. Streeter Ave. Magnolia Ave. Tyler St. Valley Way / Armstrong Rd. Mission Blvd. Jurupa Ave. Central Ave. Arlington Ave. Victoria Ave. 60 Indiana Ave. Adams St. 14th St. Madison St. Lake Matthews 3rd St. Mary St. Main St. Washington St. Van Buren Blvd. Chicago Ave. Iowa Ave. Spruce St. RIVERSIDE 215 Alessandro Blvd. Center St. Palmyrita Ave. Columbia Ave. Marlborough Ave. UCR 215 Trautwein Rd. 60 Markham St. Old Elsinore Rd. 215 Clark St. Cactus Ave. MARCH AIR RESERVE BASE Sunnymead Blvd. Ramona Expressway PERRIS Orange Ave. MORENO VALLEY Locust Ave. Lake Perris Ramona Expressway Gilman Springs Road San Timoteo Canyon Rd. Cherry Valley Blvd. 14th St. Laird Rd. BEAUMONT SAN JACINTO BANNING 10 SAN JACINTO BRANCH LINE Forrest Dr. San Jacinto Ave. Ellis Ave. 4th St. Nuevo Rd. San Jacinto Ave. Case Rd. Ellis Ave. Porter St. Montgomery Ave. De Anza Dr. Main St. 15 Nichols Rd. 74 Ethanac Rd. 74 McCall Blvd. Simpson Rd. Harrison Ave. Stetson Ave. HEMET. Ortega Hwy Riverside Dr. Lakeshore Dr. LAKE ELSINORE Grand A Main St. Railroad Canyon Rd. Bundy CANYON LAKE Scott Rd. Winchester Rd. Diamond Valley Reserve Lake Perris Valley Line Small Starts Project In June 2000, the Commission allocated $20 million of Measure A funds for capital and operating expenditures related to the implementation of passenger rail service on the initial operating segment of the SJBL, known as the Perris Valley Line (see Chart 31). Project cost estimates have been revised and are now approximately $248 million. 116 Riverside County Transportation Commission

127 Staff is seeking a small starts grant agreement from the FTA Small Starts Program to fund $75 million of the project cost with the balance to be funded by other federal, state, and local funding sources, as illustrated in Table 52 and Chart 34. Since 2008, $75 million in Small Starts funding has been federally appropriated. Details on this capital project are included in the Capital Project Development and Delivery section. Chart 34 Perris Valley Line Funding Chart State 21% Measure A 23% Federal 56% Table 52 Perris Valley Line Funding Plan Total Federal: STP $ 500,000 FTA ,514,263 FTA 5309 Small Starts 75,000,000 CMAQ 26,157,453 State: STIP 52,978,000 Local: Measure A 57,100,869 Total Perris Valley Line Project Estimate $ 248,250,585 The project has received FTA approval to begin project development and advance preliminary engineering. The National Environmental Policy Act (NEPA) draft environmental assessment was circulated for public review in 2004, and a new Supplemental Environmental Assessment was released in 2010 and again in The CEQA document was finalized in 2011, and final NEPA approval was obtained in May The FY 2013/14 budget in the Capital Project Development and Delivery section includes total expenditures of $147 million for the Perris Valley Line and other rail projects. The public outreach program for this project continues to be a priority with ongoing efforts to reach all the communities including residents, businesses, and schools along the corridor. Passenger Rail to the Pass Area and Coachella Valley In recent years the Commission has also focused attention on the creation of intercity passenger rail service between the Coachella Valley, the Pass Area, Riverside, and the Los Angeles basin through advocacy efforts with state, federal, and local government entities and negotiation with the freight railroads. The Commission s current efforts include ensuring the corridor is prominently featured in the updated California State Rail Plan and that a Service Development Plan is pursued. The Commission has worked closely with CVAG in recent years to update the feasibility studies to include current cost and travel time information. There has been enhanced coordination with CVAG, Amtrak, and the State on this project. Riverside County Transportation Commission 117

128 High Speed Rail The Commission continues to play a proactive role in the development of a statewide, high speed passenger rail system, including routing of the backbone corridor through the Inland Empire with possible stations in the Riverside/Corona and Murrieta/Temecula areas. With the passage of Proposition 1A in November 2008, there is now a proposed funding mechanism to move the state high speed rail project forward. The CHSRA has begun work on a project level environmental assessment and corridor alignment study for the section between Los Angeles and San Diego via the Inland Empire. The Commission has directed the review to include an alignment alternative along I-15 for analysis. The Commission has entered into a MOU to be supportive in the development of this high speed rail project and is participating in the Southern California Inland Corridor Group meetings. The Commission actively contributed to the development of the supplemental Alternatives Analysis released in spring 2012 and continues to coordinate local participation at Technical Working Group meetings attended by local stakeholders. Work on this effort has slowed down with the release of the latest business plan that extends the development of this Phase II section from Los Angeles to San Diego via the Inland Empire to beyond The Commission signed a MOU along with the other Southern California transportation entities and SCAG to commit $1 billion in unallocated Proposition 1A funds for early investment to be spent locally for rail transportation improvement projects. Key Assumption Project development on the Perris Valley Line will continue in FY 2013/14. Accomplishments Having received a medium-high rating from the FTA on the Perris Valley Line in December 2007, continued project development activities including progress on environmental documents and the related public reviews. The project is now complete with final design. Worked with the on-call rail consultant bench to provide detailed schedules and models for proposed 91 and IEOC line service expansion proposals. Major Initiatives As discussed above, project development and right of way acquisition related to the Perris Valley Line project is expected to continue. Department Goals Rail Development Identify and plan for capital improvements necessary to increase the scope, appeal, and reliability of commuter rail operations. (Policy Goals: Mobility, Intermodalism & Accessibility, Financial & Administration) Objectives: Continue efforts to fully fund the Perris Valley Line. Finalize the station design elements for the Perris Valley Line. Continue to review parking requirements and develop plans to address projected parking deficiencies. Maintain efforts with local agencies, other Southern California counties, and the state and federal governments to expand intercity passenger rail service into Riverside County and the Coachella Valley. (Policy Goals: Mobility, Intermodalism & Accessibility) Continue to support and influence state efforts in the creation of a high speed passenger rail system along an Inland Empire alignment through coordination with state and local agencies. In addition, continue to identify and advocate for high speed rail funding to be spent on beneficial local rail projects in Riverside County. (Policy Goals: Mobility, Intermodalism & Accessibility) Rail Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Average daily ridership on existing commuter lines Riverside Line 5,279 5,205 5,456 5,070 IEOC Line 4,142 3,825 4,073 4, Line 2,254 2,265 2,465 2,503 Farebox recovery ratio Riverside Line 58.5% 60.6% 60.9% 58.6% IEOC Line 31.3% 32.1% 37.2% 36.5% 91 Line 49.7% 53.4% 48.5% 45.2% 118 Riverside County Transportation Commission

129 Public and Specialized Transit Mission Statement: To coordinate the operation of all public transportation services within the County with a goal toward promoting compliance and improving mobility as well as program efficiency and effectiveness between transit operators. To maintain and improve, as resources allow, mobility options for seniors, persons with disabilities, and persons of limited means to enhance quality of life through innovative solutions and better coordination of existing services. Chart 35 Public and Specialized Transit Transfers Out 12% Projects and Operations 88% expenditures Public and specialized transit uses are budgeted at $120,770,000 for FY 2013/14, as presented in Table 53, and consist primarily of capital projects and operations costs as well as transfers out to Commission funds for administration, planning, and rail purposes. Salaries and benefits reflect a 17% increase as a result of an increase in FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. LTF disbursements consist of transit operating and capital allocations to public transit operators of $67,439,000, bicycle and pedestrian facilities allocations to cities and the County of $1,280,000, and planning and administration allocations to other agencies of $555,800. STA disbursements of $25,602,000 are for bus capital purposes in Western County, Coachella Valley, and Palo Verde Valley. Transfers out comprise $8,391,100 for rail operations and capital, $2,600,000 for grade separation projects, $2,175,000 for planning, and $800,000 for administration. The LTF transit allocations reflect the use of $10,276,400 in fund balances. Measure A disbursements include $2,725,400 for Western County specialized transit funding of the first year of the 2013 two-year call for projects. The majority of other Measure A disbursements relate to 2013 Measure A public transit programs: $722,600 for Western County Consolidated Transportation Service Agency (CTSA) allocations, $5,500,000 for Coachella Valley public and specialized transit, and $2,386,000 for Western County intercity bus services. The Western County allocations are disbursed monthly to RTA, the major transit provider in the Western County, while the Coachella Valley allocation is disbursed monthly to SunLine, the major transit provider in the Coachella Valley. Riverside County Transportation Commission 119

130 Table 53 Public and Specialized Transit Expenditure Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 326,600 $ 326,200 $ 296,100 $ 380,100 $ 53,900 17% Professional Costs Legal Services 8,400 28,500 21,600 23,500 (5,000) -18% Audit Services - 100,000 98,000 - (100,000) -100% Professional Services - 137, , , ,000 2,000 1% General Total Professional Costs 146, , , ,500 (103,000) -35% Support Costs 8,400 18,900 13,500 24,500 5,600 30% Projects and Operations Operating and Capital Disbursements 52,677,000 84,174,600 58,822, ,210,800 22,036,200 26% Total Projects and Operations 52,677,000 84,174,600 58,822, ,210,800 22,036,200 26% Transfers Out 14,910,500 19,632,600 18,336,400 13,966,100 (5,666,500) -29% TOTAL Public and Specialized Transit $ 68,068,600 $ 104,443,800 $ 77,742,900 $ 120,770,000 $ 16,326,200 16% Public and Specialized Transit Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Chief Financial Officer Executive Director Multimodal Services Director Procurement Analyst Procurement Manager Staff Analyst Transit Manager FTE Department Budget Overview Department Description The Measure A specialized transit program provides a valuable service to the community by serving the needs of commuters, mainly seniors and persons with disabilities, whose transportation needs are not met by traditional services. Specialized transit operations are typically managed by social service and nonprofit agencies. The Commission also allocates funding, following a competitive call for projects, through the FTA Section 5310 program that is administered by Caltrans. This program provides funding to nonprofit transportation and social service agencies and public operators under special circumstances for the purchase of capital equipment. With the passage of SAFETEA-LU and subsequent inclusion also in MAP-21, the following are two relatively new federal funding sources for specialized transit services: JARC (Section 5316) program provides funding for the development and maintenance of jobs access projects to transport welfare recipients and eligible low-income individuals to and from work during non-peak hours as well as provide reverse commute options for workers in suburban areas. New Freedom (Section 5317) program provides funding for new public transportation services and alternatives for people with disabilities beyond the requirements of the Americans with Disabilities Act (ADA) of Riverside County Transportation Commission

131 Eligibility for the above federal funds requires recipients to comply with all federal coordinated planning requirements in accordance with SAFETEA-LU and MAP-21 provisions. Projects selected for funding under these programs must be derived from a locally-developed Coordinated Plan and must be developed through a process that includes representatives of the public, private, and nonprofit transportation and human service providers. The update of the Coordinated Plan was completed in April 2012, and the third Universal Call for Projects was issued in November Approval of Measure A and JARC/ New Freedom grant awards under the 2013 Universal Call for Projects was obtained in April 2013 for the Western County and Coachella Valley applicants, and approved projects will begin provision of services on July 1, The Commission is responsible for short-range transportation planning and programming. Planning includes the development of the countywide SRTPs for eight public transit operators consisting of the cities of Banning, Beaumont, Corona, and Riverside; SCRRA s Metrolink commuter rail; Palo Verde Valley Transit Agency; RTA; and SunLine. The Commission assists in coordinating the annual development, review, and approval of the operator SRTPs and allocates Measure A, LTF, STA, and FTA Sections 5307, 5309, 5311, 5316, and 5317 transit funding resources to public transit programs. The Commission is responsible for the disbursement of Measure A, LTF, and STA funds, while federal transit funds are administered by the FTA. In partnership with the County s transit operators, the Commission coordinates the allocation of available Proposition 1B transit (capital and security) funding and ensures that proposed projects meet the mobility needs of the County. Proposition 1B funds are annually appropriated by the legislature and used for transit related capital purchases, infrastructure/facility improvements, and security enhancements. The Riverside County operators annually apply for Proposition 1B funds; however, due to the state s ongoing financial condition, the release of funds is contingent upon available proceeds from future bond sales. The Commission has public transit operator oversight and fiduciary responsibilities to ensure that annual fiscal audits and a state triennial performance audit are conducted in accordance with TDA regulations. The Commission is also charged with annually reviewing public transit operator activities and recommending potential productivity improvements to lower operating costs. To ensure that specialized transit allocations are expended and required service goals are met in accordance with funding agreements, the Commission engages an audit firm to perform certain agreed-upon procedures for the Measure A specialized transit funding recipients, some of which also receive Section 5310, JARC and New Freedom funds. Key Assumptions LTF, STA, and Measure A disbursements are based on projected budgetary allocations but may be adjusted after the Commission approves actual allocations in July Fluctuating LTF and Measure A sales tax revenues will continue to require efforts to streamline operating expenses by all operators while maintaining efficiency and quality of service. Transit Vision, adopted by the Commission in June 2008, established a 25% allocation of 2009 Measure A Western County specialized transit funds to the RTA as the CTSA for Western County. Accomplishments Oversaw the successful second-year implementation of the ongoing specialized transit services resulting from the 2011 Universal Call for Projects funding allocation process. Received approval notification of 20 capital projects awarded to five successful Riverside County recipients of funding under the FY 2009/10 and FY 2010/11 FTA Section 5310 program. Projects were derived from a locally-developed Coordinated Plan. Incorporated FY 2010/11 Proposition 1B Public Transportation, Modernization, Improvement, and Service Enhancement Account (PTMISEA) funds with transit capital funding sources following Caltrans release of program funding covering a three-year period need for fiscal years 2010/ /13. Approved allocation of FY 2012/13 Proposition 1B California Transit Security Grant Program California Transit Assistance Funds for eligible transit safety and security projects identified by transit operators following release of program funding and guidelines by the California Emergency Management Agency. Contracted an outside auditor to conduct the triennial performance audits of the Commission and the seven transit operators in Riverside County that receive TDA funds. Issued the 2013 Call for Projects funding allocations for specialized transit services for FY 2013/14 and FY 2014/15 and awarded grants. Riverside County Transportation Commission 121

132 Major Initiatives The Commission has long demonstrated a strong commitment to assist in the mobility of those with specialized transit needs. Through its 1989 Measure A specialized transit program, the Commission provided millions of dollars to public and nonprofit transit operators for the provision of special transit services to improve the mobility of seniors and persons with disabilities. Along with support of traditional dial-a-ride services, the Commission supports innovative programs that provide transit assistance in hard to serve rural areas or for riders having very special transit needs. The riders, many frail and elderly, have come to depend on these services that provide a higher level of assistance than can be provided by the public transit providers and/or operate in areas not served by public transit. As a result of the 2009 Measure A, these specialized transit programs will continue through In June 2013, 17 programs in Western County and four programs in the Coachella Valley will complete their second year of specialized transit services under the 2011 Universal Call for Projects, including the non-emergency medical transportation component. In April 2013, 17 programs in Western County and five programs in the Coachella Valley were awarded grants under the 2013 Universal Call for Projects. Thirteen of these projects are fully funded with Measure A funds, while the other nine projects will be funded by a mix of Measure A, JARC, and New Freedom funds. As identified in the Coordinated Plan, the specialized transit projects approved for funding will require implementation and yearlong performance monitoring during FY 2013/14 and FY 2014/15. To maintain funding stability of Measure A, LTF and STA funding from the state, staff will continue monitoring long-range planning activities to ensure that both anticipated revenues and on-hand reserves are properly utilized and in line with projected levels of service by the public operators. Staff will also work with the operators to plan and coordinate major capital purchases and investments into new rolling stock and other system improvements in order to maintain a viable onhand reserve. Department Goals Provide timely information to the public regarding Commission-implemented projects and support public relations activities of Measure A, JARC, and New Freedom funded programs by grant recipients. (Policy Goal: Communications) Objectives: Complete contract agreement execution processes and start implementation of projects awarded under the 2013 Universal Call for Projects beginning July 1, Produce and distribute public information materials as needed including press releases, flyers, brochures, marketing materials, and newspaper ads. In addition, staff will also leverage the IE511 traveler information system in order to more fully market the availability of specialized transit programs. Allocate Measure A Specialized Transit and federal funds to support services that will maintain and/or enhance mobility by alleviating transportation barriers for seniors, persons with disabilities, and the truly needy. (Policy Goals: Mobility, Intermodalism & Accessibility, Financial & Administration) Objectives: Monitor performance of specialized transit grant recipients through analysis of their monthly performance reports. Support the FTA Section 5310, 5316 and 5317 grant processes to improve mobility for seniors, persons with disabilities and individuals of limited means by working with Caltrans, public operators, and social service agencies to ensure a competitive process statewide for the allocation of federal transportation dollars for social service programs. Provide technical assistance and program support to agencies offering specialized transit programs to ensure the maximum benefit of funding for improved mobility for seniors, persons with disabilities, and individuals of limited means. Seek Commission approval on funding allocations for the Universal Call for Projects every two years. Coordinate the operation of all public transportation services within the County with a goal toward promoting program efficiency and harmony between transit operators as outlined in state law. (Policy Goals: Mobility, System Efficiencies, Intermodalism & Accessibility, Financial & Administration) Objectives: Review transit planning, resource allocation, and service implementation policy requirements including appropriate coordination of commuter rail, intercounty and intercity bus, local bus and paratransit, and social service transportation services to ensure convenient service for passengers. 122 Riverside County Transportation Commission

133 Implement recommendations resulting from the TDA-mandated triennial performance audits of the Commission and the seven Riverside County transit operators. Assure the ongoing effectiveness of the SRTP process and work with the County s eight transit operators to assure productivity and efficiency as well as compliance with the productivity improvement program. Coordinate regional transit connections among commuter rail, buses, and paratransit services to ensure convenient service for passengers. Monitor transit operators quarterly capital grants reports. Monitor transit operators performance through analysis of their quarterly performance reports using the TransTrack computer-based tracking program. Continue to provide staff resources to assist and support the coordination of transit services within the County and throughout the State. (Policy Goals: Mobility, System Efficiencies, Intermodalism & Accessibility, Communications) Objectives: Participate and influence intercounty discussions between Riverside, Orange, and San Diego counties regarding the enhancement of intermodal options. This includes additional transit services (rail and express bus) and rideshare services. Regularly participate in meetings that focus on the coordination of transit services, such as the California Association for Coordinated Transportation, SunLine s Access Committee, RTA s ADA Committee, the Riverside County Foundation on Aging Board of Directors, the Older Californian Traffic Safety Task Force, and the Commission s Citizens Advisory Committee/Social Service Transportation Advisory Council. Continue the development of a marketing and distribution network for communicating specialized transit mobility options to seniors, the disabled, and persons of limited means. Public and Specialized Transit Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected SRTPs submitted by operators and reviewed SRTP amendments Specialized Transit grants awarded One-way trips provided by Measure A funded projects 150, , , ,000 One-way trips provided by JARC & New Freedom funded agencies One-way trips reimbursed through the Western County Transportation Reimbursement and Information Project Transit tickets provided through the Transportation Access Program Clients served through Blindness Support Services 250, , , ,000 75,000 82,383 83,700 84,000 64,976 65,263 64,500 65, Riverside County Transportation Commission 123

134 Commuter Assistance Mission Statement: To encourage and promote transportation alternatives for commuters through employer partnerships, information services, technological innovation, and community outreach. Chart 36 Commuter Assistance Support Costs 11% Professional Costs 18% Salaries and Benefits 7% Projects and Operations 62% Transfers Out 2% Expenditures Commuter Assistance expenditures and transfers out total $4,523,900, which represents an 8% increase from last year s budget (Table 54). Salaries and benefits of $300,800 reflect a 37% increase due to FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs of $817,800 have increased 26% over the prior year due to the enhancements on the regional ridematching database. Support costs totaling $483,300 include mail and printing services, computer and vehicle maintenance, communications, and other office expenditures. Projects and operations expenditures of $2,802,800 consist of park and ride lease payments of $150,000, regional transportation consultant services totaling $1,880,500 to manage and implement the program, and merchant vouchers valued at $772,300. Capital outlay expenditures include $7,000 to upgrade the hardware and network to enhance the equipment in the commuter exchange vehicle and to purchase equipment for local back up of the regional ridematching database. Reimbursements from local county transportation commissions for regional rideshare services provided by the Commission are included in revenues to offset these expenditures. Transfers out consist of $112,200 to the General fund for costs related to maintenance of the park and ride facility at the Perris Transit Center. Table 54 Commuter Assistance uses Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 216,000 $ 218,900 $ 375,200 $ 300,800 $ 81,900 37% Professional Costs Legal Services 32,500 25,000 25,000 25,000-0% Professional Services - 555, , , , ,500 27% General Total Professional Costs 588, , , , ,500 26% Support Costs 366, , , ,300 (45,900) -9% Projects and Operations Program Operations 1,986,700 2,623,400 2,588,300 2,802, ,400 7% Total Projects and Operations 1,986,700 2,623,400 2,588,300 2,802, ,400 7% Capital Outlay - 17,000 10,000 7,000 (10,000) -59% Transfers Out 160, , , ,200 (39,100) -26% TOTAL Commuter Assistance $ 3,317,600 $ 4,190,100 $ 4,348,700 $ 4,523,900 $ 333,800 8% 124 Riverside County Transportation Commission

135 Commuter Assistance Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Chief Financial Officer Commuter and Motorist Assistance Manager Deputy Executive Director Multimodal Services Director Procurement Analyst Procurement Manager Staff Analyst FTE Department Budget Overview Department Description While much of the Commission s work is focused on increasing transportation infrastructure and capacity, there is significant value in ensuring that the transportation systems are used efficiently. To help foster more efficient use of these systems, the Commission s Commuter Assistance Program seeks to encourage Riverside County constituents and commuters to make a mode-shift decision away from single occupancy vehicle commuting and into alternative modes of transportation such as a carpool, vanpool, buspool, public bus, Metrolink, walking, bicycling, or telecommuting. The Commuter Assistance Program seeks to efficiently influence driver behavior by fostering a mode-shifting decision at both the employer and commuter levels via the following methods: The provision of employer services to foster the implementation of employer-based mode-shift and rideshare programs; The use of incentives both for beginning and then maintaining a mode-shift/rideshare arrangement; Public information services including the dissemination of personalized commute options and traveler information to educate commuters of all travel options available and to foster congestion avoidance behavior when traveling; and Leverage technology to deliver easy to use online resources and tools to more efficiently serve employer partners, their employees, and all other commuters. The Commission s Commuter Assistance Program was implemented as a specific requirement under Measure A to address congestion mitigation. While ridesharing has a beneficial impact on air quality, first and foremost, it is a strategy to improve mobility through increased use of alternative travel modes. Key Assumptions The Commission will continue to contract with a consulting firm to administer the Commuter Assistance Program. Maintaining its long-term partnership with the Commission, SANBAG will contract with the Commission to manage and implement a sister Commuter Assistance Program for its residents and employers in San Bernardino County. At the regional level, four-county transportation commissions (Los Angeles, Orange, San Bernardino, and Ventura) will contract with the Commission for the provision of regional ridematching database operations. Accomplishments Developed a new and more cost effective ridematching system with new features that will launch in FY 2013/14. In addition, the new hosted ridematching system will no longer require hardware or a network administrator to maintain it. Continued to operate the report card program for both program participants and employer partners which translates individual or worksite rideshare participation into money saved, congestion reduced, and emissions reduced. This outreach is intended to recognize rideshare efforts and to motivate participants to continue ridesharing and/or grow employer program participation. Increased participation and use of on-line services by employer partners. Continued to operate, maintain, and enhance the regional ridematching system on behalf of the five-county region. Riverside County Transportation Commission 125

136 Continued use of the Program Measurement Tool to evaluate program performance. Continued to provide rideshare services to employers and commuters in the Coachella Valley, leveraging JARC funds. Renewed leases for park and ride facilities with the following locations: Canyon Community Church of the Nazarene (Corona), Living Truth Christian Fellowship (Corona), Corona Friends Church (Corona), Elsinore Naval Military School (Lake Elsinore), Lake Elsinore Outlets (Lake Elsinore), Revival Christian Fellowship (Menifee), Mount San Jacinto College (San Jacinto), Hope Lutheran Church (Temecula), Orchard Christian Fellowship (Temecula), and the United Methodist Church (Temecula). Continued partnering with the Rail Department to provide a permitted section of park and ride spaces in the city of Corona at the North Main Corona station. Major Initiatives A cornerstone of the Commuter Assistance Program is its continued partnership among commuters, employers, and government. The partnership, based on voluntary efforts, makes a collective difference in increasing the efficiency of the County s transportation system local roads, freeways, commuter rail, and public bus. The combined effort results in less congestion, decreased vehicle miles traveled, and improved air quality. The major initiatives to continue these partnerships and efforts in FY 2013/14 are described below. Grow Employer Partnerships: Given that the highest percentage of rideshare arrangements is formed at work sites, voluntary employer participation is critical to address congestion and air quality goals; employers are the conduit to directly influence their employees personal transportation choices. The ongoing success of the core Western County rideshare program and the explosive success of the now six-year old Coachella Valley rideshare program demonstration is a testament to the significance of employer partnerships in the program s success. However, the current economic environment will pose challenges in terms of maintaining and/or growing these partnerships. Employer Transportation Coordinators (ETCs) have to do more with less. Delivery of value-added services and tools to make the ETC s job easier will be a critical motivation to continue the partnership. Roll Out New Program Tools: The Commission is continuously looking for opportunities to enhance the suite of services and outreach to both the program participants and employer partners to improve participation, partnerships, and program efficiencies. Commuter Assistance will launch its new ridematching software in FY 2013/14. As part of this effort, the program will feature brand new services, including state-of-the-art trip planning, individual user profiles, and a customizable employer portal for ETCs to more effectively manage their company s rideshare programs. Support Multimodal Travel: In addition to ridematching, information services, and incentives to facilitate ridesharing, the Commuter Assistance Program also implements park and ride facilities to support ridesharing efforts. The last Caltrans park and ride facility in Riverside County was built in The Commission leases park and ride spaces from property owners to supplement the network of park and ride spaces in Riverside County. A continued focus for FY 2013/14 will be to monitor and optimize the number of spaces leased and coordinate with ridesharers and transit and rail partners to identify areas where the lease program can help support car/vanpool/buspool arrangements as well as facilitate transit connections. Department Goals Operate a cost-effective Commuter Assistance Program within Riverside County that results in a demonstrable reduction in single occupant vehicle trips, thus assisting with congestion mitigation and improving air quality. (Policy Goals: Mobility, System Efficiencies, Environmental Stewardship) Objectives: Continue to offer short-term incentives for commuters to try a transportation mode other than driving alone. Continue to provide a rewards program for long-term ridesharers to encourage their continued use of alternative modes of transportation. Ensure the effectiveness of the Commuter Assistance Program through program analysis and recurring assessments of participation and retention of ridesharers. The Commission will continue to look for ways to pare program costs without impacting service delivery or participation. Explore opportunities to further enhance the 511 mobile application by integrating incentive enrollment and/or tracking. Extend the mode-shift/rideshare incentive and services to the Coachella Valley using awarded JARC funds. Increase participation and use of on-line service by employer partners to reduce administrative costs. Optimize the number of park and ride spaces leased and address park and ride gaps in the system. Assess vanpool program funding opportunities. 126 Riverside County Transportation Commission

137 Ensure the coordination of ridesharing programs throughout the Inland Empire and the southern California region. (Policy Goals: System Efficiencies, Intermodalism & Accessibility, Financial & Administration) Objectives: Continue to administer a sister Commuter Assistance Program in San Bernardino County on a contract basis, thus expanding the reach and effectiveness of commuter programs throughout the Inland Empire area. Continue to provide leadership with regard to the ongoing operation, maintenance, and enhancement of both the regional ridematching database and network. Fund and participate in regional rideshare marketing programs to enhance awareness of and encourage participation in commute modes that provide an alternative to driving alone. Coordinate with regional partners with respect to the implementation of ridematching alternatives. Investigate the modification of the regional vanpool agreement with the regional partners in order to provide for more service availability and a revision to the current cost sharing formula. Implement the revised Guaranteed Ride Home model that is more suitable to the region s interests. Strategically broaden the reach of the program to encourage the use of alternative transportation modes amongst all travelers and continue to grow the core target base of employers and their employees. (Policy Goals: System Efficiencies, Communications) Objectives: Develop and implement a rideshare brand strategy and streamlined communications plan anchored by the IE511 system. Develop and support on-line resources and tools for employers to more effectively manage and market their organizations rideshare programs. Continue the dissemination of the report card program for both program participants and employer partners that translate individual or worksite rideshare participation into money saved, congestion reduced, and emissions reduced. Publicize the participation of local employers in the Commission s Commuter Assistance Program through various media options. Continue the operation of the Commuter Exchange vehicle to include 50 site visits for the FY 2013/14. In partnership with the four-county transportation commissions and others, utilize the regional ridesharing database and website, Commuter Assistance Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Number of one-way single occupant vehicle trips reduced as a result of Rideshare Incentives 93, , , ,425 Number of Rideshare Plus Rewards Members 6,890 4,848 5,100 5,355 Number of incoming RIDESHARE telephone calls 1,294 1,531 1,600 1,680 Number of services provided by Inland Empire Commuter Services to support employer trip reduction efforts at worksites: Employers requesting survey services RideGuides produced 29,564 15,628 16,400 17,220 Number of events participated in by the Commuter Exchange in total, and as identified individually below: Public events Employer work sites Elementary schools Riverside County Transportation Commission 127

138 Ridesharing 128 Riverside County Transportation Commission

139 Motorist Assistance Mission Statement: To improve safety, reduce congestion, and enhance access to traveler information for motorists through the provision of a comprehensive motorist aid system. Chart 37 Motorist Assistance Salaries and Benefits 3% Transfers Out 19% Professional Costs 11% Support Costs 13% Projects and Operations 54% Expenditures Motorist Assistance expenditures and uses are budgeted at $6,755,500 for FY 2013/14, or an increase of 10% compared to the prior year budget (Table 55) due to increased demand for FSP services supporting construction projects. Salaries and benefits reflect an increase of 6% due to market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs of $766,500 increased 7% due to enhancements to the IE511 traveler information service. Support costs of $875,900 decreased $8,700, or 1%, primarily due to the FSP communication costs. Reimbursement from SANBAG for half of all IE511 related expenditures is included in revenues. Budgeted expenditures for project operations include $3,300,000 in towing contract costs for the FSP program. Projects and operations costs have increased 18% due to increased towing for FSP construction services projects. Transfers out represent SAFE s matching funds of $916,400 to state funding for FSP services and a $374,500 allocation for administrative costs. Table 55 Motorist Assistance uses Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 149,200 $ 175,900 $ 175,900 $ 187,200 $ 11,300 6% Professional Costs Legal Services 40,800 30,000 23,000 29,000 (1,000) -3% Professional Services - General 748, , , ,500 50,000 7% Total Professional Costs 789, , , ,500 49,000 7% Support Costs 515, , , ,900 (8,700) -1% Projects and Operations Program Operations 2,392,100 3,010,000 2,935,000 3,635, ,000 21% Construction - 60, (60,000) -100% Total Projects and Operations 2,392,100 3,070,000 2,935,000 3,635, ,000 18% Transfers Out 1,096,600 1,321,300 1,321,300 1,290,900 (30,400) -2% TOTAL Motorist Assistance $ 4,942,900 $ 6,169,300 $ 6,048,900 $ 6,755,500 $ 586,200 10% Riverside County Transportation Commission 129

140 Motorist Assistance Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Chief Financial Officer Commuter and Motorist Assistance Manager Multimodal Services Director Procurement Analyst Procurement Manager Staff Analyst FTE Department Budget Overview Department Description As a SAFE, the Commission is responsible for providing a motorist aid system for Riverside County. This system is comprised of three components: 1) call boxes, 2) FSP, and 3) the IE511 traveler information system. The call box system allows motorists to call for assistance in the event of a mechanical breakdown, accident, or other emergency on the freeway. The FSP clears small debris on freeways and assists stranded motorists on the most congested Riverside County freeways by towing, changing flat tires, and temporarily taping cooling system hoses at no charge to the motorists. FSP service is also provided in construction zones through separate funding agreements with Caltrans to help mitigate congestion. The IE511 system is a telephone and web-based service that delivers real-time traffic information, including incidents and travel times, bus and rail trip planning, and rideshare information. Key Assumptions Annual maintenance costs are based on a flat-fee contract based on the number of call boxes. Current percentage levels of vandalism, knockdowns, and miscellaneous repairs to call boxes will remain consistent with the past year. The FSP will continue as long as state funding support is available. Tow truck contractor costs for the nine existing FSP beats are based on Commission-approved contracts. In partnership with SANBAG, the Commission will maintain and operate the IE511 system in accordance with national 511 implementation standards. The Commission will maintain and operate an IE511 system to be funded 50% by the Commission and 50% by SANBAG. The Commission s share of operating costs will be funded with SAFE revenues. The Commission will enhance IE511 with the roll-out of a more personalized traffic information service. Accomplishments Grew the IE511.org web visits per month by 40% in FY 2012/13. Enhanced the IE511 system with a new interactive voice recognition platform, manual flood gating capabilities for major incidents, and improved functionality and global positioning system capabilities for the IE511 mobile application. Incorporated the new I-10 to state line detection and CMS signs into the traveler information system. Performed a comprehensive assessment that identified additional call box reduction opportunities to improve program efficiencies and maintain an effective safety-net for stranded motorists. Continued the cost recovery program for call box knockdowns in an effort to collect reimbursements from motorists involved in accidents that damage Commission property. Achieved one of the highest benefit-to-cost ratios statewide for FSP in the latest statewide FSP Management Information System Report. Performed an assessment of current FSP coverage and identified opportunities to further optimize the benefit: costs realized and assessed the feasibility of program expansion. Implemented a new digital radio system for FSP that addresses coverage gaps, significantly improves reception, and complies with the Federal Communication Commission s narrowband radio conversion regulation. 130 Riverside County Transportation Commission

141 Major Initiatives Major Motorist Assistance initiatives will focus on system efficiencies and evaluating and/or implementing enhanced program services or coverage. The call box system program has served as a safety-net for stranded motorists in Riverside County since However, call box usage has declined over the years with the proliferation of mobile phone use. In response, call box reductions have been made, and, upon award of a new call box maintenance contractor, additional reductions will be made based on call box removals identified in the call box reduction planning assessment. In addition, staff will focus on maintaining a high benefit-to-cost ratio and seek opportunities to maximize funding to not only improve the level of service but to potentially expand FSP coverage as well. The Commission, along with its partner, SANBAG, will continue to operate and maintain the IE511 system. This system includes a website interface and an interactive voice response (IVR) telephone system that serves Riverside and San Bernardino county residents and commuters. While several enhancements have been made to the system since its launch, new enhancements will focus on the development of serving more personalized traffic information services specific to a commuter s location, route, and time of travel. Department Goals Provide efficient delivery of a comprehensive motorist aid system (Call Box, FSP, IE511) and an outstanding level of service to the traveling public. (Policy Goals: Mobility, System Efficiencies, Financial & Administration) Objectives: Work in coordination with CHP and Caltrans to implement call box reductions identified in the planning assessment. Along with San Bernardino County SAFE, continue to monitor the operation of the call answering center contractor. Research new technologies to streamline FSP processes and develop new tools to automate the production of reports that track the performance of FSP tow operators. Continue to evaluate opportunities to provide more efficient FSP coverage through changes in service days, service hours, or number of vehicles assigned to each beat; perform budget assessments to identify potential service expansion (i.e., holiday service, weekend service on select beats) opportunities that can be supported. Review proposed construction projects with Caltrans and local cities and coordinate the use of temporary tow service to mitigate congestion. Enhance access to real-time traveler information. (Policy Goals: System Efficiencies, Communications) Objectives: Develop access to, or delivery of, more personalized traffic information services specific to a commuter s location, route, and time of travel. Grow the number of users with more personalized offerings, services, and cost-effective marketing efforts. Continue to refine and enhance IE511 web content, applications, and outreach. Continue to leverage existing resources, such as traffic data, provided by Caltrans District 8, existing IVR software, and Google Transit to minimize costs. Coordinate with Caltrans on expanding traffic detection and feeding that traffic data into the IE511 system. Utilize the opportunity at the new Caltrans District 8 Traffic Management Center to enhance coordination between CHP and Caltrans on traveler information. IE511 Riverside County Transportation Commission 131

142 Motorist Assistance Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Number of call boxes Number of call box calls 5,094 5,043 4,791 4,551 Number of vehicle assists 47,123 42,748 44,885 47,129 Number of IE511 phone calls 503, , , ,569 Number of IE511 web visits 251, , , ,742 Freeway Service Patrol 132 Riverside County Transportation Commission

143 section 6.3 Capital Projects section 6.3 capital projects Perris Multimodal Center

144 Capital Project Development and Delivery Mission Statement: To keep the Commission s contract with the voters of Riverside County by accelerating the planning, programming, and implementation of projects and programs in the Measure A Transportation Improvement Plan, as enhanced by the Toll Program, to the extent that funds are available. To ensure that capital projects are environmentally acceptable, expertly designed, and implemented in a cost effective manner. To acquire and manage required right of way in the most economical, efficient, and timely manner. Chart 38 Capital Project Development and Delivery Transfers Out 41% Professional Costs 1% Debt Service 9% Projects and Operations 49% Expenditures The budgeted expenditures and transfers out total $1,502,513,600 to cover all of the Commission s major capital projects (Table 56). Personnel costs represent less than 1% of the budgeted uses. Salaries and benefits reflect an increase of 7% due to FTE allocations; market equity adjustments resulting from a biennial classification and compensation study; 3% cost of living adjustment offset by employees contribution for their share of normal pension costs; and a 3% pool for merit-based salary increases. Professional costs of $19,260,400 are primarily related to general legal costs, specialized legal and financial advisory services related to the toll program, debt management services, and BNSF services related to a rail capital project. Support costs of $907,300 consist primarily of services needed to maintain the Commission s real properties in a condition that complies with all local codes and regulations governing property maintenance. General project costs include $12,197,600 related to program management provided by Bechtel Infrastructure (Bechtel), SCRRA, and permits for highway and rail capital projects. Significant projects included in engineering expenditures of $20,355,000, are the SR-91, I-15, and I-215 corridor improvements; 91/71 interchange improvement project; Mid County Parkway; 60/215 East Junction HOV lanes connector; SR-91 HOV lanes; various Western County TUMF regional arterial projects, including the SR-79 realignment; and commuter rail CCTV operations center. Construction expenditures of $240,968,400, are primarily related to the I-215 corridor improvements (central segment); SR-91 corridor improvement; SR-74 curve widening; I-15/Los Alamos Road bridge replacement; I-215/ Blaine to Martin Luther King widening; 60/215 East Junction HOV lanes connector; 74/215 interchange; SR-91/La Sierra interchange; SR-91/HOV lanes Mary Street to 7th Street; various Western County Measure A and TUMF regional arterial projects, including the SR-79 realignment; and Perris Valley Line and other rail projects. Design-build costs of $217,750,000 pertain to the SR-91 corridor improvement project. Approximately 14% of the projects and operations costs represent right of way expenditures of $164,707,800 on significant projects including the SR-91 corridor improvement project; SR-91 HOV lanes; I-215 corridor improvements (central segment); 91/71 interchange improvements; SR-74 curve widening; Mid County Parkway; 74/215 interchange; 60/215 East Junction HOV lanes connector; various Western County TUMF regional arterial projects; and Perris Valley Line and other rail projects. Funding will also be provided for MSHCP land mitigation acquisitions. Local turnback payments to jurisdictions and the County for local streets and roads repair, maintenance, and construction amount to $43,825,900, net of an allocation of $659,100 to the 2009 Measure A Western County Regional Arterial special revenue fund related to the ineligibility of the city of Beaumont for its local streets and roads allocation. Disbursements to CVAG for the 2009 Measure A Coachella Valley highway and regional arterial program comprise substantially all of the regional arterial expenditures. Riverside County Transportation Commission 133

145 Special studies of $25,000 are related to the SJBL. Operating and capital disbursements of $2,000,000 are related to Metrolink station rehabilitation costs. Rail capital equipment purchases for the station security project represent 71% of the capital outlay expenditures. Interest payments on outstanding commercial paper and the 2009 Bonds, 2010 Bonds, 2013 Bonds, and the Toll Bonds are approximately $41,112,300. Principal payments of $7,100,000 are related to the 2009 sales tax revenue bonds and $80,000,000 to retire commercial paper notes. Cost of issuance expenditures of $7,500,000 are related to the issuance of the 2013 Sales Tax Bonds and 2013 Toll Bonds. Significant transfers out consist of the following: $342,227,600 in commercial paper, sales tax and toll revenue bond proceeds to fund 2009 Measure A Western County highway projects such as the SR-91 and I-15 corridor improvements, I-215 corridor improvements (central segment) project, and the 91/71 interchange project; $15,319,500 from the TUMF CETAP reserves for two city of Temecula regional arterial projects along I-15 and the I-215 corridor improvements (central segment) project; $11,000,000 from 2009 Measure A Western County highway funds to the Debt Service fund; $10,000,000 from 1989 Measure A excess debt service reserves for a rail project; $693,800 from TUMF for administrative allocations to the General fund; $659,100 from 2009 Measure A Western County local streets and roads to the 2009 Measure A Western County regional arterial program for the city of Beaumont s local streets and roads allocation; $17,000,000 from 2009 Measure A Western County regional arterial reserves to TUMF regional arterial projects for the cities of Corona, Moreno Valley, and San Jacinto, and the County; $33,600 for construction FSP service related to the I-215 corridor improvement (central segment) project; $1,000,000 from 1989 Measure A Western County rail fund to the 2009 Measure A Western County commuter assistance fund to return funds advanced but not spent for the Perris Transit Center; $80,000,000 in 2013 Sales Tax Bonds proceeds to retire commercial paper notes; $90,362,000 in 2013 Sales Tax Bonds proceeds to the Sales Tax Bonds debt service fund to pay interest during the construction of the SR-91 corridor improvement project; and $47,661,000 in 2013 Toll Bonds proceeds to the Toll Bonds debt service fund to pay interest during the construction of the SR-91 corridor improvement project. I-215/Clinton Keith Road 134 Riverside County Transportation Commission

146 Table 56 Capital Project Development and Delivery Uses Detail FY 11/12 Actual FY 12/13 Revised Budget FY 12/13 Projected FY 13/14 Budget Dollar Change Percent Change Salaries and Benefits $ 2,268,400 $ 3,113,100 $ 2,934,200 $ 3,339,800 $ 226,700 7% Professional Costs Legal Services 3,242,200 4,507,900 4,573,900 4,534,600 26,700 1% Audit Services 38,000 86,500 60,000 44,000 (42,500) -49% Financial Advisory 437, , ,500 2,392,400 1,482, % Professional Services - 1,339,800 2,188,100 2,087,300 12,289,400 10,101, % General Total Professional Costs 5,057,500 7,692,500 7,321,700 19,260,400 11,567, % Support Costs 300, , , , ,200 52% Projects and Operations Program Operations 5,416,600 11,852,300 7,431,800 12,197, ,300 3% Engineering 21,366,500 27,892,500 16,540,900 20,355,000 (7,537,500) -27% Construction 27,451, ,934,100 61,628, ,968, ,034,300 91% Design Build 16,285,700 29,050,000 29,050, ,750, ,700, % Right of Way and Land 53,728, ,246,800 64,716, ,707,800 52,461,000 47% Local Streets and Roads 40,127,900 42,129,000 42,129,000 43,825,900 1,696,900 4% Regional Arterials 8,962,700 16,455,400 20,500,400 25,157,500 8,702,100 53% Special Studies 67,000 40,000 70,000 25,000 (15,000) -38% Operating and Capital Disbursements - 250,000-2,000,000 1,750, % Total Projects and Operations 173,405, ,850, ,066, ,987, ,137,100 99% Capital Outlay 142, ,000 78, , ,000 56% Debt Service 61,507, ,413,000 22,990, ,712,300 (7,700,700) -5% Transfers Out 97,810, ,013, ,727, ,956, ,943, % TOTAL Capital Project Development and Delivery $ 340,492,000 $ 822,904,200 $ 376,421,300 $ 1,502,513,600 $ 679,609,400 83% Capital Project Development and Delivery Staffing Summary Position FY 11/12 FY 12/13 FY 13/14 Administrative Assistant Capital Projects Manager Chief Financial Officer Community Relations Manager Deputy Executive Director Executive Director Facilities Administrator Goods Movement Manager Government Relations Manager Planning and Programming Manager Procurement Analyst Procurement Manager Project Delivery Director Project Development Director Right of Way Manager Senior Staff Analyst Staff Analyst Toll Program Director Toll Project Manager FTE Riverside County Transportation Commission 135

147 Department Budget Overview Department Description The primary responsibility of Capital Projects is the development and delivery of major highway and rail capital projects where the Commission is identified as the lead agency. The delivery of a capital project can include tasks such as feasibility studies, preliminary engineering, environmental clearance, final design, right of way acquisition, construction, and construction management. Funding is also provided through Capital Projects for local jurisdiction highway and regional arterial projects based on funding agreements with the Commission. Approximately 79% of the Commission s FY 2013/14 budgeted expenditures originates in this department managed by the Toll Program, Project Delivery, and Project Development Directors responsible for the capital program. Capital Projects accelerates delivery of the Measure A, toll, state, and federally funded highway, regional arterial, and rail capital improvement projects throughout the County. Highway improvements currently in progress include the addition of mixed flow, carpool, and tolled express lanes; widening and realignment projects; and interchange improvements as well as a new CETAP corridor. Regional arterial capital improvements include funding for Western County TUMF regional arterial projects. Commuter rail capital improvements include the expansion of commuter rail service in Riverside County. This department also provides the necessary coordination between the Commission and Caltrans for the development of scope, cost, and project delivery schedules for Measure A projects that are funded by the STIP and Proposition 1B CMIA. The 2009 Measure A program includes funding to the incorporated cities and the County for local streets and roads maintenance, repair, and construction. The budgeted amount is set by formula established in the Measure A TIP. To be eligible to receive these Measure A funds, each city in the Western County and Coachella Valley areas and the County must participate in the TUMF program, which is administered by WRCOG in Western County and by CVAG in Coachella Valley. Additionally, for Western County jurisdictions, they must also participate in the MSHCP. Annually all cities and the County are required to submit a five-year CIP and meet a MOE requirement. Each jurisdiction s respective allocation is based on population (Western County and Palo Verde Valley) or dwelling unit (Coachella Valley) and the amount of sales tax generated. The city of La Quinta had not participated in the Coachella Valley TUMF Program prior to February 2013 when the city adopted the TUMF ordinance and entered into an agreement with CVAG to reimburse CVAG for the shortfall of prior TUMF. Accordingly, the city of La Quinta will begin to receive 50% of its allocation until the shortfall is repaid and CVAG the remaining 50%. The city of Beaumont was determined to be in noncompliance with the Western County TUMF program. As a result, Beaumont s Measure A allocation is transferred to the Commission s 2009 Measure A Western County regional arterial program. Given the support required to oversee and participate in the project development work, costs for Commission staff and related support have been included in this department budget. The projects identified in the FY 2013/14 budget funded by Measure A, TUMF, state, or federal funds as well as future toll revenues require the continued support of the Bechtel program management team which includes program managers, project engineers, construction engineers, inspectors, contracts administration, and support staff. Right of Way Acquisition and Support Services The primary goal of the Right of Way Management Division is to deliver right of way in the most cost-effective manner and within project schedules, while adhering to federal and state regulations. Commission staff required to supervise and manage right of way services and related support for individual projects are included in the Capital Project Development and Delivery Department budget. The Commission authorized the development of a Right of Way Acquisition Program in To implement the Commission s directive, staff procured the services of on-call right of way consultant services in the fields of right of way engineering and surveying, environmental assessment, appraisal and appraisal review, acquisition and relocation, feasibility studies and cost estimates, property management, and utility relocation. These consultants are managed and supervised by the Right of Way Management Division. Property Management The Commission strives to manage its real property with the objective of maximizing existing and future public transportation benefits, safety, and income by means of professional property management policies and procedures. This includes issuing licenses and rights of entry for authorized third-party uses, as well as investigating and resolving issues regarding uses that are not authorized by the Commission. On certain occasions, the Commission may also grant easements. General maintenance activities and security measures are also part of the property management scope of work on all Commissionowned properties. 136 Riverside County Transportation Commission

148 The demolition and clearance of structures and other improvements on acquired property, excluding commuter rail stations, is included in the property management function. Additionally, the Commission must manage real property acquired for a project until it is required for construction. Since 1990, the Commission has acquired property assets in the course of rail and highway project implementation. To date, the rail properties number over 225 parcels. The Commission acquired approximately 500 parcels for the SR-74 widening project (Segments 1 and 2), and most of these parcels, which were related to Segment 1, have been transferred to Caltrans. In addition approximately 125 properties have been acquired for the SR-91 HOV lanes, Mid County Parkway, SR-79 realignment, SR-74 curve widening, Perris Valley Line, I-215 corridor improvements (central segment), and SR-60 HOV lanes/i-215 to Redlands Boulevard projects. Property acquisition for the SR-91 corridor improvement project began in 2010 with 48 properties acquired to date. These properties were acquired in fee, and will be transferred primarily to Caltrans upon completion of the projects. Upon project completion, all remaining portions of properties within every project are reassessed and deemed surplus when it has been determined that the continued retention of the property no longer supports the Commission s policy goals and objectives. Long-Term Strategic Planning Several years ago, the strategic plan for the 1989 Measure A highway program was updated and provided the guidance for completion of the 1989 Measure A highway projects. A significant effort was completed in December 2006 to develop an implementation plan strategy for the 2009 Measure A state highway program, with a focus on the first 10 years of the program through An objective-based assessment of the Western County portion of the 2009 Measure A TIP was completed along with the prioritization of the program of projects. Four highway corridors, I-215, I-15, I-10, and SR-91, were selected as the priority focus for the first 10 years of the 2009 Measure A program, and long-term development work was approved for large scale projects such as the development of the Mid County Parkway, realignment of SR-79, and the bi-county widening of I-215 to San Bernardino County. Project development activities for most of these projects have been ongoing since an update and reprioritization was completed in January Since 2010, a scope reevaluation was completed on the I-15 corridor improvement project and the Commission adopted a new scope of work which entails tolled express lanes on the northern 14 miles of I-15 in Riverside County. The I-10 truck climbing lanes project was deferred several years and has been replaced with added safety improvements on SR-60. For the strategic projects, preliminary engineering and environmental clearance will be completed for the Mid County Parkway and SR-79 realignment; right of way acquisition for Mid County Parkway will be considered for extraordinary acquisitions on a pay-as-you-go basis, while right of way acquisitions for SR-79 realignment will be suspended due to lack of available funding. Project costs and anticipated funding for these projects have been updated annually, and a status update has been included in each of the annual Commission workshops since Updated capital project implementation strategic plans are expected in 2019 and 2029, as required by the 2009 Measure A. CVAG has developed a strategic plan for Coachella Valley highway and regional arterial projects based upon a transportation project prioritization study that is updated periodically. The Perris Valley Line is the most significant rail capital project, and it was included in the 1989 and 2009 Measure A programs. Other rail capital projects are developed in coordination with SCRRA as well as the implementation of the Perris Valley Line. Four new Western County transportation corridors were identified through CETAP and are eligible for 2009 Measure A Western County new corridor and TUMF CETAP funding. Given the size and anticipated cost of these new corridors, they are moving forward on varied schedules with the work on the internal corridors, the Mid County Parkway and I-215 corridor improvement project (south segment) to French Valley interchange, being the most advanced. Western County TUMF regional arterial projects were approved in 2004 based on a call for projects, which is discussed in the Planning and Programming Department in section 6.2 of this document. Additionally, the Commission will participate in the improvement of a wildlife corridor crossing under SR-91, B Canyon, in collaboration with Caltrans, U.S. Fish and Wildlife, U.S. National Forest, California Department of Fish and Wildlife, and the Department of Parks and Recreation. The actual construction of this enhancement will be done subsequent to the construction on the SR-91 corridor improvement project. These strategic planning activities play a significant part of the Commission s annual budget process, in particular the capital budget. Riverside County Transportation Commission 137

149 Key Assumptions The Commission will continue its emphasis on the closeout of the 1989 Measure A program. The Western Riverside County Delivery Plan serves as the basis for defining the 2009 Measure A project selection and prioritization. Western County TUMF regional arterial projects are based on the list approved by the Commission in Agreements for the advancement of 2009 Measure A funds have been obtained from CVAG and cities participating in the debt programs. The annual principal and interest payments for these loans will be deducted by the Commission from each agency s respective disbursements based on the terms of the loan agreements. Highway project costs are based on engineers estimates and scope agreements with Caltrans. Construction projects are competitively bid to minimize costs. All projects will be built to required standards. All highway projects, with the exception of tolled express lane facilities, are transferred upon completion to Caltrans; operation of these facilities is the responsibility of Caltrans. Tolled express lane facilities, when completed, will be operated and maintained by the Commission for 50 years by agreement between Caltrans and the Commission. The Commission will develop strategies to implement alternative financing structures including public toll roads Measure A Western County regional arterial projects have been selected and programmed when revenues are at a level that can sustain reasonable cash flow to fund the construction projects selected for this program. A call for projects that combines available MARA funds with federal revenues will be conducted. Development of the SR-79 realignment and Mid County Parkway strategic projects through preliminary engineering and environmental clearance will continue. Accomplishments Continued implementation of the Western Riverside County Delivery Plan. Completed construction phase for I-215 corridor improvement project (south segment) widening from Murrieta Hot Springs Road to Scott Road. Continued construction for the 60/215 East Junction and SR-91 HOV lanes projects. Completed final design, right of way acquisition, and utility relocations and initiated procurement for construction management teams for the SR-74 curve realignment project and the I-215/Blaine Street to Martin Luther King Boulevard widening project. Completed the final design, right of way acquisitions, and utility relocations and began construction for the I-215 corridor improvement project (central segment) widening from Scott Road to Nuevo Road. Completed the design and right of way acquisition and utility relocations and began construction for the I-215 bi-county HOV project. Began the project report and environmental phase for the I-215 corridor improvement project south connectors and the SR-60 truck climbing lane. Continued to advance the development of the SR-91 corridor improvement project in numerous areas: Received approval for an approximate $451 million federal loan under the U.S. DOT s TIFIA program. Reached agreement with OCTA and Cofiroute USA, LLC to operate and maintain the 91 Express Lanes. Completed the project report and environmental document. Completed the procurement and awarded a contract for design-build services. Continued to acquire the necessary property along the corridor to construct the project. Continued final design for the 91/71 interchange improvement project. Received Commission approval for a tolled express lane work scope for the I-15 corridor improvement project. Completed the construction phase for the 74/215 interchange project. Completed the updated technical studies and engineering modifications to address the reduced project limits of the proposed Mid County Parkway project and released a recirculated environmental document for public review and comment. 138 Riverside County Transportation Commission

150 Released the draft environmental document for public review and comment for the SR-79 realignment project. Continued successful negotiations with FTA related to the Small Starts funding authorization for the Perris Valley Line. Completed engineering for the Perris Valley Line project. Supported public outreach activities by providing graphics from the right of way project management database for Commission presentations to facilitate public understanding of project issues. Continued to declare property no longer needed for transportation purposes as surplus and sold several surplus properties. Completed right of way acquisition for the Perris Valley Line project. Major Initiatives FY 2013/14 will mark the fifth year as the Commission closes out the 1989 Measure A programs and continues project activities related to the 2009 Measure A programs, of which the highway, rail, regional arterial, and local streets and roads programs represent the majority of the funding allocations. While most of the 1989 Measure A highway projects have been completed, a few projects will continue such as the SR-91 HOV lanes from Adams Street to 60/91/215 interchange, SR- 74 curve widening, and 60/215 East Junction HOV lanes connector. The I-215 bi-county HOV gap closure project and Perris Valley Line rail projects will continue, as both are also included in the 2009 Measure A. Various stages of project development work for projects included in the Western County Highway Delivery Plan will continue in FY 2013/14. Detailed descriptions of the capital projects, including local streets and roads funding, that are included in the FY 2013/14 budget follow the Performance/Workload Indicators. Department Goals Build upon and strengthen the partnership with Caltrans toward timely delivery of identified Measure A, CMIA, toll program, and STIP projects. (Policy Goals: Mobility, Environmental Stewardship, Economic Development) Objectives: Develop agreements with Caltrans and FHWA, as may be required, to finalize project scoping and cost issues for the STIP, federal demonstration, toll, and Measure A funded highway projects in Riverside County. Meet the project milestones identified in the CMIA agreements between Commission, Caltrans, and the CTC. To the extent permitted by law, pursue reasonable involvement of local DBE and SBE firms in contract work. (Policy Goal: Communications) Objective: Maintain and monitor goal for a minimum DBE participation in all federally funded contracts. Provide effective communication of project progress to the Commission board members, city councils, the County Board of Supervisors, Caltrans, CTC, FTA and FHWA. (Policy Goal: Communications) Objectives: Develop a strategy with Caltrans District 8 that would allow the Commission to advance specific projects identified in the Western Riverside County Delivery Plan to take advantage of any unexpected state or federal funding which may become available through increased state or federal budget authorizations, federal stimulus, or potential loan programs to advance construction. Conduct quarterly meetings with FTA and report on progress of Perris Valley Line project. Work with Caltrans and other agencies toward completion of preliminary engineering and environmental clearance of all projects. (Policy Goal: Mobility) Objectives: Work with Caltrans, the County, and the cities in Riverside County to complete preliminary design and environmental clearance for Measure A projects that could be eligible to receive additional or early funding from various sources that could become available if a project is sufficiently developed. Release for public review and comment the NEPA and CEQA environmental documents for the I-215 corridor improvement project southbound connector. Prepare the final environmental document for the SR-79 realignment project. Riverside County Transportation Commission 139

151 Prepare and receive approval on the final environmental document for the modified Mid County Parkway project. Initiate the project approval and environmental document of the SR-60 truck climbing lane project. Continue the project approval and environmental document for the I-15 corridor improvement project. Construct the highway projects identified in the budget. (Policy Goals: Mobility, Economic Development, Financial & Administration) Objectives: Complete closeout of the 74/215 interchange project. Commence and complete construction of the SR-74 curve widening project and the I-215/Blaine Street to Martin Luther King Boulevard widening project. Complete closeout of the I-215 corridor improvement project (south segment), the first project in the Western Riverside County Delivery Plan to reach construction. Continue construction on the I-215 corridor improvement project (central segment) between Scott Road and Nuevo Road. Continue construction of the 60/215 East Junction HOV lanes project and the SR-91 HOV lanes project. Continue construction on the I-215 bi-county HOV project. Continue design and construction of the SR-91 corridor improvement design-build project. In coordination with the Rail Program Manager, construct capital improvements at existing commuter rail stations as identified in the budget. (Policy Goals: Mobility, System Efficiencies, Environmental Stewardship, Intermodalism & Accessibility, Financial & Administration) Objective: Continue construction for the Perris Valley Line. Acquire right of way for rail and highway projects identified in the budget. (Policy Goals: Mobility, Financial & Administration) Objectives: Acquire right of way for the following projects: SR-91 corridor improvement project, SR-74 curve realignment project, I-215 corridor improvement project (central segment), and Perris Valley Line. Protect and maintain properties acquired for future projects. Identify alternative financing strategies in order to fully fund projects identified in the Western Riverside County Delivery Plan. (Policy Goal: Mobility) Objective: Continue the assessment and evaluation of available strategies. 140 Riverside County Transportation Commission

152 Location of Major FY 2013/14 Projects within Riverside County SR-74 Construction for the curve widening on SR-74 from Calvert Avenue to California Avenue. 74/215 Construction close out of the interchange. SR-79 Realignment between Gilman Springs Road and Domenigoni Parkway including project study report, project report, and environmental document. SR-91 (A) Construction of HOV lanes from Adams Street to the 60/91/215 interchange. (B) Final design for the 91/71 interchange improvements. (C) Design-build toll and mixed flow lanes from the Orange County line to Pierce Street. Mid County Parkway Preliminary engineering, project report, and environmental documentation for the project Perris Valley Line Construction for the Perris Valley Line (Riverside- Moreno Valley-Perris) along the SJBL. 12 Local Streets and Roads Allocation of Measure A revenues to each city and the County to improve, maintain, and repair high priority local streets and roads. 60/215 Construction of the East Junction HOV lane connectors. I-215 Bi-County HOV Gap Closure Project Construction and utility relocations for HOV lanes on the I-215 from the 60/91/215 interchange to Orange Show Road in San Bernardino County. I-215 (A) Closeout of the south segment from I-15 to Scott Road. (B) Construction of the central segment from Scott Road to Nuevo Road. (C) Construction of the I-215/Blaine to Martin Luther King Boulevard widening. I-15 Preparation of engineering and environmental document for the addition of tolled express lanes from SR-60 to Cajalco Road in Corona. SR-60 Truck Climbing Lane Continue project approval and environmental document of the truck climbing lane project. Riverside County Transportation Commission 141

153 Capital Project Development & Delivery Performance/Workload Indicators FY 11/12 Estimated FY 11/12 Actual FY 12/13 Estimated FY 13/14 Projected Preliminary engineering (project reports and environmental documentation) contracts awarded Plans, specifications, and estimate contracts awarded Number of projects with active right of way acquisition Construction awards Highway and Rail project close-outs License agreements managed Appraisal and appraisal reviews completed Capital Projects Summary The following is a summary of the capital projects included in the FY 2013/14 budget. Costs are generally categorized by preliminary engineering, final design, right of way, construction, and design-build phases in addition to other project-related costs such as salaries and benefits, Bechtel project management, and legal fees. Western County Highway and Regional Arterial Projects SR-74/I-15 to 7th Street (P003001) Complete right of way acquisition closeout for Segment II related to the realignment and widening of four-lane roadway between Wasson Canyon Road in the city of Lake Elsinore and 7th Street in the city of Perris. FY 2013/14 Cost $ 30,000 Right of way support services $ 22,900 Other project-related costs Measure A Budget Impact Costs will be funded using 1989 Measure A. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. 74/215 Interchange (P003015) Continue plant establishment until Preliminary engineering began in 2006 and was completed in Final design was completed in Construction began in mid-2010 and was completed in The total project cost is estimated at $30 million. FY 2013/14 Cost $ 750,000 Construction/construction management/support services $ 30,000 Right of way acquisition/support services $ 176,800 Other project-related costs Measure A Budget Impact Costs will be funded using 1989 Measure A highway funds, TUMF zone contributions, ARRA funds, and a federal earmark. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. SR-74 Curve Widening (P003009) Continue with right of way acquisition. Construction of the project should begin The total estimated project cost is $4.2 million. FY 2013/14 Cost $ 3,410,000 Construction/construction management $ 310,000 Right of way acquisition/support services $ 215,600 Other project-related costs Measure A Budget Impact Costs will be funded using 1989 Measure A highway funds. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. 142 Riverside County Transportation Commission

154 SR-79 Realignment (P & P005127) Perform realignment environmental and preliminary engineering services from Gilman Springs Road to Domenigoni Parkway. The project is expected to be completed with the environmental phase in The total estimated project cost is $1.2 billion. Initiation of subsequent phases will be dependent upon the availability of funding. FY 2013/14 Cost $ 4,000,000 Preliminary engineering $ 317,500 Other project-related costs Measure A Budget Impact None; costs have been funded using TUMF regional arterial, federal earmarks, and SAFETEA-LU federal funds. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. SR-79 Widening/Thompson to Domenigoni (P005114) Provide funding and support to complete construction for the widening of SR-79 to four lanes. Right of way acquisition was completed in FY 2013/14 Cost $ 3,000,000 Construction Measure A Budget Impact Costs will be funded using 2009 Measure A regional arterial funds with the County of Riverside as lead agency. The Measure A funding commitment for this project was $7.1 million. Operating Budget Impact N/A; state highway and regional arterial operations are the responsibility of Caltrans and the local jurisdiction, respectively. SR-91 Corridor Improvement Project (P & P003028) Continue property acquisition and start final design and construction for the tolled express and mixed flow lanes project from the Orange County line to Pierce Street, including tolled express lanes connectivity to I-15 and improvements to the 15/91 interchange. Project development activities began in September 2007 and lanes are expected to be open to traffic in The SR-91 corridor improvement project cost is estimated at $1.3 billion. FY 2013/14 Cost $ 100,000 Preliminary engineering $ 3,800,000 Construction/support services $ 135,310,000 Right of way acquisition/support services $ 217,750,000 Design-build $ 6,822,400 Other project-related costs Measure A Budget Impact Costs will be funded using 2009 Measure A highway funds, including sales tax revenue bonds, toll revenue bonds, a federal TIFIA loan, STIP, and SLPP funds. Operating Budget Impact Operation and maintenance of future tolled express lanes facilities are the responsibility of the Commission, while all other state highway operations are the responsibility of Caltrans. Current estimates of annual operating and maintenance costs are $11,200,000. Such costs will be paid from the collection of toll revenues beginning in /71 Interchange Improvements Project (P003021) Continue final design for interchange improvements to the 91/71 interchange. Final design began in March The total estimated project cost is $123 million. FY 2013/14 Cost $ 4,600,000 Final design $ 3,335,000 Right of way acquisition/support services $ 554,300 Other project-related costs Measure A Budget Impact Costs for final design and right of way acquisition will be primarily funded using Congressionally-designated federal funding remaining from previous area projects. The balance of funding will come from 2009 Measure A highway funds. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. Riverside County Transportation Commission 143

155 SR-91 HOV Lanes/Adams Street to 60/91/215 Interchange (P003005) Begin construction and complete utility relocations. Preliminary engineering began in Construction of the project should be completed in the summer of The estimated total project cost is $273 million. FY 2013/14 Cost $ 32,000 Final design $ 150,000 Construction $ 11,444,000 Right of way acquisition/support services $ 672,700 Other project-related costs Measure A Budget Impact Final design costs will be funded using Letter of No Prejudice funds received and CMAQ with 1989 Measure A highway funds for local match. Right of way costs will be funded using STIP-RIP, Traffic Congestion Relief Program, CMAQ, and 1989 Measure A highway funds. CMAQ and CMIA funds generated by Proposition 1B will be used for construction activities. Caltrans is the lead agency. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. SR-91/La Sierra Avenue Interchange (P003014) Provide funding and support to complete construction to widen and fully improve La Sierra Avenue from SR-91 to El Sobrante Road. The landscaping and plant establishment portion of the project is expected to be completed in mid FY 2013/14 Cost $ 33,000 Construction Measure A Budget Impact Costs will be funded using 1989 Measure A highway funds with the city of Riverside as lead agency. The Measure A funding commitment for this project was $27.2 million. Operating Budget Impact N/A; state highway and regional arterial operations are the responsibility of Caltrans and the local jurisdiction, respectively. I-15 Corridor Improvement Project (P003027) Resume preliminary engineering and environmental work originally started in April 2008, as the Commission approved a scope of work in early 2013 that will add two tolled express lanes in each direction from SR-60 to Cajalco Road in Corona. The estimated total project cost is $415 million. FY 2013/14 Cost $ 7,000,000 Preliminary engineering $ 2,110,000 Other project-related costs Measure A Budget Impact Project development costs and a portion of construction will be funded using 2009 Measure A highway funds. It is anticipated that toll revenue bonds will be issued and the Commission will secure a federal TIFIA loan to complete the project financing plan in the future. Operating Budget Impact Operation and maintenance of future tolled express lanes facilities are the responsibility of the Commission, while all other federal and state highway operations are the responsibility of Caltrans. Preliminary estimates of annual operating and maintenance costs are $15 million. Such costs will be paid from the collection of toll revenues. I-15/Los Alamos Road Bridge Replacement (P003036) Provide funding and support to begin construction in Construction of the project is expected to be completed by The total project cost is estimated at $3.8 million. FY 2013/14 Cost $ 900,000 Construction Measure A Budget Impact 2009 Measure A highway funds will be used for construction. The Measure A funding commitment for this project was approximately $2.9 million. The city of Murrieta is the lead agency for construction. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. 144 Riverside County Transportation Commission

156 60/215 East Junction HOV Lane Connectors (P003017) Complete construction of the project in Preliminary engineering began in Final design and right of way acquisition were completed in The total project cost is estimated at $42 million. FY 2013/14 Cost $ 1,055,000 Construction/support services $ 274,000 Right of way acquisition/support services $ 82,600 Other project-related costs Measure A Budget Impact STP and CMAQ, with STIP-RIP and STIP-IIP for local match funds, will be used for construction. Caltrans is the lead agency for construction. Operating Budget Impact N/A; state highway operations are the responsibility of Caltrans. I-215 Corridor Improvements (South Widening Segment)/I-15 to Scott Road (P003022) Conclude project closeout as construction was completed in Preliminary engineering began in 2007 and was completed in Final design began in 2008 and was completed in The total project cost is estimated at $33 million. FY 2013/14 Cost $ 1,700,000 Construction/construction management/support services $ 148,800 Other project-related costs Measure A Budget Impact Costs will be funded using STIP-RIP funds and 2009 Measure A highway funds; CMIA funds generated by Proposition 1B bonds will be used for construction activities. Operating Budget Impact N/A; federal highway operations are the responsibility of Caltrans. I-215 Corridor Improvements (Central Segment)/Scott Road to Nuevo Road (P003023) Continue to add one mixed flow lane in each direction. Preliminary engineering began in 2007 and was completed in Final design began in 2011 and was completed in December 2012; construction began in Construction of the project is expected to be completed by The total project cost is estimated at $120 million. FY 2013/14 Cost $ 45,500,000 Construction/construction management/support services $ 730,000 Right of way acquisition/support services $ 1,240,900 Other project-related costs Measure A Budget Impact Costs will be funded using CMIA, STIP-RIP, and 2009 Measure A highway funds. Operating Budget Impact N/A; federal highway operations are the responsibility of Caltrans. I-215 Corridor Improvement Southbound Connector (P003031) Continue preliminary engineering, which began in 2010, to widen southbound connector to I-15 with construction expected to be completed by The total project cost is estimated at $8.5 million. FY 2013/14 Cost $ 800,000 Preliminary engineering $ 150,000 Final design $ 99,300 Other project-related costs Measure A Budget Impact Costs will be funded using 2009 Measure A highway funds. Operating Budget Impact N/A; federal highway operations are the responsibility of Caltrans. I-215/Blaine Street to Martin Luther King Boulevard Widening (P003035) Commence construction to widen the I-215 from Blaine Street to Martin Luther King Boulevard. Construction is expected to be completed in Total project cost is $2.2 million. FY 2013/14 Cost $ 2,057,300 Construction/construction management $ 153,900 Other project-related costs Measure A Budget Impact Costs will be funded using 1989 Measure A highway funds and STP. Operating Budget Impact N/A; federal highway operations are the responsibility of Caltrans. Riverside County Transportation Commission 145

157 Mid County Parkway (P & P005123) Perform activities related to the development of a recirculated project report and environmental document for a new corridor from I-215 to SR-79. The environmental phase is anticipated to be completed in FY 2013/14. Construction of this new facility will be completed over many years as funding becomes available and is estimated to cost $ billion. FY 2013/14 Cost $ 2,300,000 Preliminary engineering $ 250,000 Final design $ 6,182,000 Right of way acquisition/support services $ 623,500 Other project-related costs Measure A Budget Impact Costs will be funded with TUMF CETAP funds and 2009 Measure A new corridor funds. Operating Budget Impact N/A; responsibility for highway operations has not been determined. Various Western County Highway Projects (P & P312402) Provide funding and support for the engineering, construction, and right of way activities related to various Western County highway projects. FY 2013/14 Cost $ 100,000 Environmental engineering $ 20,000 Right of way support services Measure A Budget Impact Costs will be funded using 2009 Measure A highway funds. Operating Budget Impact N/A; federal highway operations are the responsibility of Caltrans. Various Western County Measure A and TUMF Regional Arterial Projects (P005201, P005102, P005103, P005104, P005105, P005106, P005107, P005108, P005113, P005115, P005116, P005118, P005119, P005120, P005128, P005132, P & P725000) Provide Western County Measure A and TUMF funding and support for the engineering, right of way, and construction activities related to various Western County Measure A and TUMF regional arterial projects approved by the Commission in September 2004 following a call for projects. Total project costs approved for TUMF regional arterial projects approximate $79 million. FY 2013/14 Cost $ 823,000 Engineering and design $ 40,784,100 Construction $ 3,545,800 Right of way acquisition $ 326,000 Other project-related costs Measure A Budget Impact Costs will be funded using TUMF regional arterial and 2009 Measure A regional arterial funds with various local jurisdictions as lead agency for their respective projects. Operating Budget Impact N/A; regional arterial operations are the responsibility of the local jurisdictions. MSHCP Land Acquisition in Western County (P002800) Provide funding and support for the acquisition of land as mitigation for the cumulative and indirect impacts associated with construction of future highway projects as required by 2009 Measure A. FY 2013/14 Cost $ 3,000,000 Land acquisition Measure A Budget Impact Costs will be funded using 2009 Measure A highway funds. Operating Budget Impact N/A; land mitigation operations are the responsibility of RCA. 146 Riverside County Transportation Commission

158 Rail Projects North Main Corona Station Parking Structure (P003808) Complete construction close-out of a parking structure at the North Main Corona station. FY 2013/14 Cost $ 20,000 Construction management $ 133,200 Other project-related costs Measure A Budget Impact 1989 Measure A Western County Commuter Rail funds. Operating Budget Impact Operations of this parking structure will be the responsibility of the Commission. Annual operating costs are estimated at $300,000 to be funded with LTF. Perris Multimodal Facility (P003816) Complete construction close-out of the Perris Transit Center. FY 2013/14 Cost $ 50,000 Construction management $ 10,000 Right of way support services $ 220,700 Other project-related costs Measure A Budget Impact Costs will be funded using Proposition 1B PTMISEA and a contribution from the 2009 Measure A Western County Commuter Assistance fund. Operating Budget Impact Operations of this facility will be the responsibilities of the Commission and RTA, as defined in a cooperative agreement. Annual operating costs are estimated at $76,000. Perris Valley Line and Other Rail Projects (P003800, P003823, P003824, P003825, P003827, P003828, P003829, P003830, P003831, P003832, P003833, and P003834) Continue final design and commence construction for extension of commuter rail services to Perris. Project commenced in December 2007 when the Commission received approval from FTA to move into project development. Other rail projects include adding a fourth main track between the Riverside Downtown station to the connector to the SJBL branch line at Highgrove. Expected completion date of the Perris Valley Line is July 2015 for a total project cost of $248.3 million. FY 2013/14 Cost $ 133,197,000 Construction/construction management/support services $ 427,000 Right of way acquisition/support services $ 13,824,100 Other project-related costs Measure A Budget Impact Costs will be funded using FTA, CMAQ, STP, and 1989 Measure A rail funds as well as proceeds from sales of surplus properties. Subsequent year costs will also include STIP funding. Operating Budget Impact Rail station operations related to this project, which will be the responsibility of the Commission upon completion of the project, will be funded with LTF and property management fees. Rail service and capital operations will be the responsibility of Metrolink and will be funded by the Commission with LTF and STA based on an allocation determined by Metrolink. Annual station operations approximate $300,000 per station, or $1,200,000 annually in the aggregate for four proposed stations. Station Rehabilitation (P004011) Provide funding and support for station rehabilitation activities at various rail stations. FY 2013/14 Cost $ 2,260,000 Construction/construction management Measure A Budget Impact Costs will be funded using Proposition 1B funds. Operating Budget Impact Operations of all commuter rail stations are the responsibility of the Commission and are funded using LTF. Riverside County Transportation Commission 147

159 CCTV Operations Center (P004018) Provide funding and support for a CCTV operations center at the Riverside downtown station. Final design and construction are expected to begin in August FY 2013/14 Cost $ 200,000 Final Design $ 1,150,000 Construction/construction management $ 50,000 Other project-related costs Measure A Budget Impact Costs will be funded using Proposition 1B funds and 2009 Measure A Western County Commuter Rail funds. Operating Budget Impact Operations will be the responsibility of the Commission. Annual operating costs are estimated at $20,000 to be funded with 2009 Measure A Western County Commuter Rail funds. Riverside Station Pedestrian Improvements (P004019) Provide funding and support for the Riverside downtown station pedestrian improvement project. Construction is expected to begin October FY 2013/14 Cost $ 1,152,000 Construction/construction management Measure A Budget Impact Costs will be funded using state TE grant funds and 2009 Measure A Western County Commuter Rail funds. Operating Budget Impact Operations of the Riverside downtown station are the responsibility of the Commission. Annual operating costs are estimated at $450,000 to be funded with LTF. Various Western County Rail Projects (P and ) Provide Measure A funding and support for right of way activities related to various rail projects. FY 2013/14 Cost $ 5,000 Final design $ 60,000 Right of way support services $ 1,136,900 Other project-related costs Measure A Budget Impact 2009 Measure A Western County Commuter Rail funds. Operating Budget Impact Costs will be funded using 2009 Measure A rail funds. Jurupa Underpass 148 Riverside County Transportation Commission

160 Local Streets and Roads Annually monitor the MOE requirements to ensure local agencies are expending funds according to the 2009 Measure A ordinance. Review local agency five-year CIPs to ensure Measure A funds are expended on eligible local street and road projects. Western County Area Distribute local return funding for local streets and roads projects in Western County. FY 2013/14 Cost $ 470,000 Banning 0 Beaumont 132,000 Calimesa 148,000 Canyon Lake 3,279,000 Corona 882,000 Eastvale 1,422,000 Hemet 1,487,000 Jurupa Valley 993,000 Lake Elsinore 1,261,000 Menifee 3,136,000 Moreno Valley 1,836,000 Murrieta 533,000 Norco 1,194,000 Perris 5,918,000 Riverside 684,000 San Jacinto 2,429,000 Temecula 487,000 Wildomar 4,344,000 Riverside County 659,000 Commission 31,294,000 Total Western County (659,100) Less: Allocation to Western County regional arterials (Beaumont allocation) $ 30,634,900 Total Western County, net Measure A Budget Impact Operating Budget Impact All costs will be distributed in accordance with 2009 Measure A local streets and roads funds. N/A; local streets and roads operations are the responsibility of the local jurisdiction. Riverside County Transportation Commission 149

161 Coachella Valley Distribute local return funding for local streets and roads projects in Coachella Valley. FY 2013/14 Cost $ 1,274,000 Cathedral City 578,000 Coachella 437,000 Desert Hot Springs 231,000 Indian Wells 1,515,000 Indio 693,500 La Quinta (50% of total allocation) 2,478,000 Palm Desert 1,854,000 Palm Springs 814,000 Rancho Mirage 1,605,000 Riverside County 693,500 CVAG (50% of total La Quinta allocation) $ 12,173,000 Total Coachella Valley Measure A Budget Impact All costs will be distributed in accordance with 2009 Measure A local streets and roads funds. Operating Budget Impact N/A; local streets and roads operations are the responsibility of the local jurisdiction. Palo Verde Valley Area Distribute local return funding for local streets and roads projects in Palo Verde Valley. FY 2013/14 Cost $ 810,000 Blythe 208,000 Riverside County $ 1,018,000 Total Palo Verde Valley Measure A Budget Impact All costs will be distributed in accordance with 2009 Measure A local streets and roads funds. Operating Budget Impact N/A; local streets and roads operations are the responsibility of the local jurisdiction. I-10/Monterey Avenue 150 Riverside County Transportation Commission

162 section 7 Community Profile section 7 community profile SR-91 in Riverside

163 COMMUNITY PROFILE Riverside County is the fourth largest county in California, stretching westward nearly 200 miles from the Colorado River and comprising more than 7200 square miles that include 28 incorporated cities. Riverside County can trace its beginning back to 1893 when voters approved the formation of a new county. The area was carved from parts of San Bernardino and San Diego counties. In its 120 years of existence, the County s economy has diversified and prospered. Originally, Riverside County was a very agricultural area, known for a wide variety of crops grown on its fertile soils. The County remains a strong agricultural area, but it is increasingly becoming a leader in manufacturing, transportation, construction, and tourism. DEMOGRAPHICS The success of the area has brought dramatic population growth to Riverside County (Chart 39). Since the 1980 s, the County has been one of the fastest growing counties in the State. CHART 39 POPULATION LAST TEN YEARS 2,500,000 2,000,000 1,500,000 1,000, , Source: California Department of Finance The available and affordable housing in Riverside County has attracted many people to the County (Chart 40); however, housing is gradually recovering from a slowdown due to the effect of the subprime mortgages, ensuing credit crisis, and recession. 15/91 Flyover Traffic in Corona Riverside County Transportation Commission 151

164 CHART 40 HOME PRICE ADVANTAGE Home Value Advantage Riverside County and Southern California Markets (February, 2013) Median Home Values Riverside County Advantage $500,000 $485,000 $450,000 $400,000 $390,000 $350,000 $350,000 $360,000 $300,000 $250,000 $228,000 $257,000 $200,000 $150,000 $122,000 $132,000 $162,000 $100,000 $50,000 $0 Riverside Los Angeles San Diego Ventura Orange Source: DataQuick News COUNTY During the growth period, jobs also increased as many firms relocated to the area and moved away from older communities; however, the recent economic slowdown had caused the County s unemployment rate to rise from its near all-time lows (Chart 41). The unemployment rate has been decreasing. CHART 41 UNEMPLOYMENT RATE (%) LAST TEN YEARS 15% 12% 9% 6% 3% 0% Source: California Employment Development Department The overall economic outlook for Riverside County is expected to continue to improve in 2014 based on various economic forecasts. The area is preparing for its future as well in supporting better education. The County is home to a number of colleges and universities including University of California, Riverside. 152 Riverside County Transportation Commission

165 STATISTICAL INFORMATION RETAIL SALES As a result of demographic changes and growth, retail sales in the County increased through 2007 (Chart 42 and Table 57); however, the effect of the recent recession on retail sales was noted in sales tax receipts beginning in FY 2012/13 retail sales have shown continued improvements from these previous years. CHART 42 RETAIL SALES (%) - $25 BILLION 2011 DATA Building Materials 5.08% Automotive 24.61% Other Retail Sales 6.67% Total All Other Services and Outlets 27.55% Household and Electronics 3.57% Eating and Drinking 9.65% Food Stores 5.09% General Mechandise 11.90% Apparel Stores 5.88% Source: State Board of Equalization TABLE 57 RIVERSIDE COUNTY TAXABLE SALES BY BUSINESS TYPE (IN 000 S) LAST FIVE YEARS Apparel Stores $ 1,505,821 $ 1,391,174 $ 1,293,271 $ 1,121,543 $ 1,171,013 General Merchandise 3,051,709 2,947,905 2,855,733 3,389,936 3,593,134 Food Stores 1,304,731 1,267,758 1,251,220 1,254,366 1,352,609 Eating & Drinking 2,473,339 2,317,486 2,266,853 2,340,554 2,388,039 Household & Electronics 914, , , , ,945 Building Materials 1,303,073 1,232,145 1,237,518 1,435,337 1,961,911 Automotive 6,311,272 5,306,408 4,749,994 6,126,512 7,137,075 Other Retail Sales 1,711,453 1,480,601 1,442,875 3,250,335 2,794,790 Total all other services & outlets 7,065,212 6,326,196 6,272,315 6,268,633 7,781,093 $ 25,641,498 $ 23,152,782 $ 22,227,877 $ 26,003,595 $ 29,023,609 Source: State Board of Equalization The 2011 taxable sales generation by jurisdiction in the County, including ranking compared to 2002, is presented in Table 58. Riverside County Transportation Commission 153

166 TABLE 58 TAXABLE SALES GENERATION BY JURISDICTION IN RIVERSIDE COUNTY FOR Taxable Sales (in 000's) % of Total 2011 Rank 2002 Rank City of Riverside $ 4,019, % 2 2 City of Corona 2,715, % 3 3 City of Temecula 2,364, % 4 4 City of Palm Desert 1,384, % 5 5 City of Moreno Valley 1,172, % 6 6 City of Murrieta 965, % 7 11 City of Palm Springs 880, % 8 10 City of Hemet 799, % 9 7 City of La Quinta 680, % City of Indio 650, % 11 9 City of Lake Elsinore 634, % City of Cathedral City 606, % 13 8 City of Perris 584, % City of Menifee 421, % 15 N/A City of Norco 384, % City of Rancho Mirage 374, % City of Eastvale 340, % 18 N/A City of Beaumont 317, % City of Coachella 289, % City of San Jacinto 193, % City of Jurupa Valley 184, % 22 N/A City of Banning 157, % City of Blythe 145, % City of Wildomar 116, % 25 N/A City of Desert Hot Springs 113, % City of Indian Wells 84, % City of Calimesa 57, % City of Canyon Lake 12, % Incorporated 20,651, % Unincorporated county area 4,989, % 1 1 Countywide $ 25,641, % California $ 520,568,055 Source: California State Board of Equalization 1 Year represents most recent data available MEASURE A SALES TAXES Measure A is a one-half of one cent transaction and use tax for transportation improvements in Riverside County. The County had an 8.75% sales tax rate including the Measure A rate through June 2011, 7.75% from July 2011 through December 2012, and 8.00% thereafter (Table 59). TABLE 59 DIRECT AND OVERLAPPING SALES TAX RATES LAST FIVE YEARS Fiscal Year Measure A Direct Rate County of Riverside % 8.00% % 7.75% % 8.75% % 8.75% % 8.75% Source: Commission Finance Department and California State Board of Equalization 154 Riverside County Transportation Commission

167 Since the recent economic slowdown, changes have occurred in the economic categories in which the Measure A sales tax was generated (Table 60). General retail and transportation represented the two highest economic categories and more than 56% of sales taxes generated. Transportation has improved in recent years due to high fuel prices and new auto purchases. Construction, which was comprised of the building materials wholesale and building materials retail segments, is a significant contributor and has shown slight improvement from previous years of declines due to the effects of the recession and housing slowdown. TABLE 60 SALES TAX BY ECONOMIC CATEGORY Economic Category 2009/4 2010/4 2011/4 2012/4 % of Total % of Total % of Total % of Total General Retail 30.9% 30.9% 29.9% 29.0% Transportation 22.8% 25.0% 27.1% 27.0% Food Products 17.8% 17.0% 16.4% 16.4% Business to Business 15.2% 14.5% 14.1% 14.7% Construction 11.1% 10.5% 10.5% 10.9% Miscellaneous 2.2% 2.1% 2.0% 2.0% Total 100.0% 100.0% 100.0% 100.0% Source: MuniServices, LLC Each economic category consists of several economic segments, which provide additional information regarding economic activity in the County. In 2009 the top six economic segments consisted of department stores, service stations, restaurants, auto sales-new, miscellaneous retail, and building materials-wholesale. Over the next three calendar years, auto sales-new and building materials wholesale have improved, while service stations, department stores, and restaurants have comprised the top three economic segments. The top six economic segments in 2012 with comparisons to previous years are presented in Table 61. TABLE 61 SALES TAX BY ECONOMIC SEGMENT Top Six Economic Segments (Category) 2009/4 2010/4 2011/4 2012/4 % of Total % of Total % of Total % of Total Service Stations (Transportation) 10.0% 11.6% 12.9% 11.9% Department Stores (General Retail) 12.9% 12.6% 11.8% 11.2% Auto Sales - New (Transportation) 7.9% 8.4% 9.1% 10.0% Restaurants (Food Products) 11.0% 10.7% 10.3% 10.0% Building Materials - Wholesale (Construction) 5.8% 5.5% 6.1% 6.5% Miscellaneous Retail (Miscellaneous) 6.5% 6.7% 6.6% 6.3% Source: MuniServices, LLC COMMISSION FACTS PROGRAMS AND SERVICES Measure A: The Commission administers Measure A, the local half-cent sales tax for new transportation projects in the County. Under Measure A, funding is used to improve highways, commuter rail, regional arterials, local streets and roads, transit and specialized transportation services including commuter assistance, economic development, new corridors, and Commission administration. Measure A expires in Transportation Development Act: The TDA is comprised of two elements: Local Transportation Fund and State Transit Assistance funding. The Commission administers the LTF one-quarter of one cent of the state sales tax on behalf of the County. STA is generated from the statewide sales tax on diesel fuel and is allocated by the State to the Commission on the basis of population and as a percentage of transit fare revenues. TDA funding is allocated primarily to bus and rail transit operators for transit operating and capital needs. Additionally, LTF funding is available for bicycle and pedestrian facilities, planning, and administration and allocated to the Commission and local jurisdictions in the County. Riverside County Transportation Commission 155

168 Highways: The Commission assists with the planning and funding for highway improvements. Major current projects include: 60/215 East junction HOV lanes connector, SR-74 curve widening, 91/71 connectors, SR-91 corridor improvement project, SR-91 HOV lanes/adams Street to the 60/91/215 interchange, I-15 corridor improvement project, I-215 corridor mobility improvement projects, and Mid County Parkway. State highway maintenance is generally the responsibility of Caltrans. Local Streets and Roads: The Commission administers funding to local jurisdictions to improve streets, intersections, signal coordination, and pavement. Local streets and roads maintenance is the responsibility of the local jurisdictions. Commuter Rail: The Commission funds and oversees Metrolink rail services within the County. The Commission s three Metrolink lines are the Riverside, IEOC, and 91 lines. The Commission owns and maintains five Metrolink stations and one transit center located at: Riverside Downtown Station, 4066 Vine Street, Riverside La Sierra Station, Indiana Avenue, Riverside Pedley Station, 6001 Pedley Road, Riverside North Main Corona Station, 250 E. Blaine Street, Corona West Corona Station, 155 S. Auto Center Drive, Corona Perris Multimodal Transit Center, 121 S. C Street, Perris Motorist Assistance: The Commission provides emergency call boxes and the IE511 traveler information system through the SAFE and offers emergency towing services through the FSP. Commuter Assistance: The Commission provides a variety of rideshare services both to employers and commuters. Through voluntary participation, commuters and employers receive a direct benefit from their sales tax dollars, and the entire region benefits from reduced traffic congestion and improved air quality. Specialized Transit: The Commission maintains a strong commitment to assist in the mobility of those with specialized transit needs. Through its Specialized Transit Program, the Commission has provided millions of dollars to public and nonprofit transit operators to assist in the provisions of special transit services to improve the mobility of seniors and persons with disabilities. Interagency Traffic Management 156 Riverside County Transportation Commission

169 section 8 Appendices SR-79 Public Outreach Meeting section 8 appendices

170 Appendices Glossary of Acronyms ADA Americans with Disabilities Act ARRA* American Recovery and Reinvestment Act AT Active Transportation BABs Build America Bonds Bank of America Bank of America, N.A. Bank of Tokyo The Bank of Tokyo-Mitsubishi UFJ, Ltd., acting through its New York Branch Bechtel Bechtel Infrastructure BNSF Burlington Northern Santa Fe Railroad Board Board of Commissioners for the Riverside County Transportation Commission CABs Capitalized Appreciation Bonds CAFR Comprehensive Annual Financial Report CalPERS California Public Employees Retirement System Caltrans California Department of Transportation CAGTC Coalition for America s Gateways and Trade Corridors CEQA California Environmental Quality Act CETAP Community Environmental Transportation Acceptability Process CHP California Highway Patrol CHSRA California High Speed Rail Authority CIBs Current Interest Bonds CIP Capital Improvement Plan CMA Congestion Management Agency CMAQ* Congestion Mitigation and Air Quality CMIA* Corridor Mobility Improvement Account (Proposition 1B funding category) CMP Congestion Management Program CMS Congestion Management System Commission Riverside County Transportation Commission Coordinated Plan Coordinated Public Transit Human Services Transportation Plan County County of Riverside CTC California Transportation Commission CTSA Consolidated Transportation Service Agency CVAG Coachella Valley Association of Governments Deutsche Bank Deutsche Bank AG DBE Disadvantaged Business Enterprise DMV Department of Motor Vehicles ERP Enterprise Resource Planning ETC Employer Transportation Coordinators FHWA* Federal Highway Administration FITCH Fitch Ratings FSP Freeway Service Patrol FTA* Federal Transit Administration FTE Full-time Equivalent FTIP Federal Transportation Improvement Program FY Fiscal Year Riverside County Transportation Commission 157

171 GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GPS Global Positioning System HOV High Occupancy Vehicle (Carpool Lane) I Interstate IE511 Inland Empire 511 IEOC Inland Empire Orange County Metrolink Service IIP* Interregional Improvement Program Inland Empire Region covering Riverside and San Bernardino counties IVR Interactive Voice Response JARC Jobs Access Reverse Commute (FTA Section 5316) JPMorgan JP Morgan Chase Bank LIBOR London Interbank Offer Rate LOS Level of Service LOSSAN Los Angeles-San Diego-San Luis Obispo, a rail corridor LTF* Local Transportation Fund MARA Measure A Regional Arterial, a Western County Measure A Program Measure K Increase of sales tax revenue bonds debt limit to $975 million approved by voters in November 2010 Metrolink Operating Name for SCRRA (see SCRRA) Moody s Moody s Investors Service MOE Maintenance of Effort MOU Memorandum of Understanding MSHCP Multi-Species Habitat Conservation Plan MSRC Mobile Source Air Pollution Reduction Review Committee (AB 2766) NEPA National Environmental Policy Act OA Obligation Authority OCTA Orange County Transportation Authority Perris Valley Line Perris Valley Line Metrolink Extension Project PM Particulate Matter Ports Port of Los Angeles and Port of Long Beach PPM Planning, Programming, and Monitoring PTMISEA* Public Transportation, Modernization, Improvement, and Service Enhancement Account (Proposition 1B transit funding category) RCA Regional Conservation Authority RCTC Riverside County Transportation Commission RFA Request for Authorization RIP* Regional Improvement Program RTA Riverside Transit Agency RTP Regional Transportation Plan RTPA Regional Transportation Planning Agency RZEDBs Recovery Zone Economic Development Bonds S&P Standard & Poor s Rating Service SAFE Service Authority for Freeway Emergencies SAFETEA-LU* Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users Sales Tax Reference including transaction and use tax such as Measure A SANBAG San Bernardino Associated Governments 158 Riverside County Transportation Commission

172 SB375 Senate Bill 375 (Steinberg) California s Sustainable Communities and Climate Protection Act SB821 Senate Bill 821 LTF Bicycle and Pedestrian Funds SBE Small Business Enterprise SBOE State Board of Equalization SBPAs Standby Bond Purchase Agreements SCAG Southern California Association of Governments SCAQMD South Coast Air Quality Management District SCRRA Southern California Regional Rail Authority SCS Sustainable Communities Strategy Series A Tax-Exempt Series of tax-exempt bonds issued under 2010 Bonds Series B Taxable Series of taxable Build America Bonds issued under 2010 Bonds SHCC Self-Help Counties Coalition SJBL San Jacinto Branch Line SLPP* State Local Partnership Program SR State Route SRTP Short Range Transit Plan SSAB Salton Sea Air Basin STA* State Transit Assistance State State of California STIP* State Transportation Improvement Program STP* Surface Transportation Program SunLine SunLine Transit Agency TAC Technical Advisory Committee TAP Transportation Alternatives Program TCIF* Trade Corridors Improvement Fund (Proposition 1B funding category) TDA* Transportation Development Act TE* Transportation Enhancements TIFIA* Transportation Infrastructure Finance and Innovation Act TIGER Transportation Investment Generating Economic Recovery TIP Transportation Improvement Plan TUMF* Transportation/Traffic Uniform Mitigation Fee (Western County/Coachella Valley) Union Bank Union Bank, N.A. U.S. DOT U.S. Department of Transportation Western County Western area of Riverside County WRCOG Western Riverside Council of Governments 1989 Measure A* Original 1/2 cent transportation sales tax measure approved by voters in November Measure A* Extension of sales tax measure approved by voters in November 2002 which became effective upon expiration of original sales tax measure on July 1, Bonds Sales Tax Revenue Bonds, Series A, B and C issued in October Bonds Sales Tax Revenue Bonds, Series A Tax-exempt and Series B Taxable in November Bonds Sales Tax Revenue Bonds anticipated to be issued in July Toll Bonds Toll Revenue Bonds anticipated to be issued in July 2013 * Additional information provided in Funding Definitions. Riverside County Transportation Commission 159

173 Funding Definitions Federal Funding Sources Transportation Infrastructure Finance and Innovation Act The TIFIA program provides credit assistance for qualified projects of regional and national significance that are critical improvements to the nation s surface transportation system. It is designed to fill market gaps and leverage substantial private and non-federal co-investment by providing supplemental and subordinate capital. TIFIA credit assistance is often available on more advantageous terms than in the financial market making it possible to obtain financing, in the form of a secured loan, loan guarantee, and/or standby line of credit, for needed projects when it might not otherwise be possible. American Recovery and Reinvestment Act of 2009 Commonly referred to as the Stimulus or The Recovery Act, ARRA is an economic stimulus package intended to create jobs and promote investment and consumer spending during the recent recession. It includes domestic spending in infrastructure with investment transportation, environmental protection, and other infrastructure providing long-term economic benefits. ARRA also created the Build America Bond program, which authorized state and local governments to issue in 2009 and 2010 such bonds as taxable bonds to finance capital expenditures for which would otherwise be financed with tax-exempt governmental bonds. State and local governments issuing BABs receive a direct federal subsidy payment for a portion of their borrowing costs on BABs equal to 35 to 45 percent of the total coupon interest paid to investors. The BAB program was intended to assist state and local governments finance capital projects at lower borrowing costs and to stimulate the economy and create jobs. Federal Transit Administration Section 5307 formula funds made available to urbanized areas for operating subsidies, capital projects and planning. Operating match is up to 50% of the net operating cost; capital and planning match is 80% federal and 20% local. Section 5309 discretionary funds generally provided to urbanized areas for funding new start rail projects, major bus fleet replacement, and transit facility construction. Matching ratios range from 50/50 to 80% federal and 20% local. Section 5310 funds made available to states for providing capital support to private non-profit and, in certain circumstances, public transit operators. This is a state administered discretionary program providing funds on an 88.53% federal and 11.47% local basis. Section 5311 funds provided to support rural transit operating subsidies and capital projects. Operating match is up to 50% of the net operating cost; capital match is 80% federal and 20% local. Section 5316 funds provided for the development and maintenance of jobs access projects to transport welfare recipients and eligible low-income individuals to and from work during non-peak hours as well as supply reverse commute options for workers in suburban areas. Section 5317 funds made available for new public transportation services and alternatives for people with disabilities beyond the requirements of the ADA of Federal Highway Administration In 1991, the Intermodal Surface Transportation Efficiency Act (ISTEA) was approved by Congress to replace the former Federal Aid Urban/Federal Aid System funding programs. ISTEA was established as a six-year funding program and was reauthorized for another six years in This new transportation act was renamed as the Transportation Equity Act of the Twenty-first Century (TEA21) and was extended through August 10, 2005 when the President signed into law SAFETEA-LU. With guaranteed funding for highways, highway safety, and public transportation totaling $244.1 billion, SAFETEA-LU represents the largest surface transportation investment in our nation s history. Under these programs the following fund sources are allocated to each county, and the Commission further allocates these funds based on federal provisions. Surface Transportation Program Funds allocated by the Commission and administered by Caltrans that provide funding for local street and road improvements. Current matching rate is 88.53% federal and 11.47% local. 160 Riverside County Transportation Commission

174 Congestion Mitigation and Air Quality Funds allocated by the Commission for transportation related air quality improvement projects in air quality nonattainment areas. Current matching rate is 88.53% federal and 11.47% local. Safety projects can qualify for 100% of CMAQ funding. Transportation Enhancements The amount of funds made available under this program is 10% of the state apportionment of STP funds. Projects are qualified and prioritized by the Commission and submitted to the California Transportation Commission for inclusion in the State Transportation Improvement Program. The basic definition of a transportation enhancement project is an improvement that is over and above the base transportation project. Project categories are pedestrian and bicycle facilities, scenic or historic highways, scenic beautification, historic preservation, rehabilitation of historic transportation facilities, preservation of abandoned railway corridors, control/removal of outdoor advertising, archaeological planning and research, and mitigation of water pollution due to highway runoff. Current matching rate is 88.53% federal and 11.47% local. State Local Funding Sources State Transportation Improvement Program The STIP consists of RIP and IIP funds. The RIP and IIP programs are mainly supported by Proposition 42 funding. The RIP component represents 75% of STIP funds available for capacity projects. Regional Transportation Planning Agencies are responsible for selection of projects proposed for RIP funds. The IIP component represents the remaining 25% of STIP funds available for capacity projects and Caltrans is responsible for the selection of IIP-funded projects. The Commission and Caltrans District 8 work closely in coordinating projects for these fund sources. Proposition 1B Program In November 2006, the voters in California approved Proposition 1B, which will fund various transportation programs from bonds issued by the state of California. Programs to be funded include CMIA, transit capital (PTMISEA), transit security (CTSGP-CTAF), STIP supplement, goods movement (TCIF), SLPP funds, and cities and counties. Transportation Development Act The TDA is comprised of two elements: LTF and STA funds. LTF funds are derived from 1/4 of one cent of the state sales tax and are returned to source. There are three areas of apportionment within Riverside County comprised of Western County, Coachella Valley, and Palo Verde Valley (Blythe). The Commission administers the LTF on behalf of the County of Riverside. Funds are provided for program administration, Southern California Association of Governments regional planning, local transportation planning, and transit services in Western County and the Coachella Valley. In the Palo Verde Valley, funds support transit services and local street and road improvements. Additionally, under SB 821, 2% of LTF funds are made available for bicycle and pedestrian projects. STA funds are generated from the statewide sales tax on diesel fuel and are allocated by the state to the Commission based on population and as a percentage of transit fare revenue. The Commission has generally used these funds to support capital purchases and improvements as these funds have been subject to state budgetary actions. Local Funding Sources Measure A Measure A is a half-cent local retail transaction and use tax that was initially approved by the voters in November 1988 for 20 years (Ordinance 88-1) and extended in November 2002 for an additional 30 years (Ordinance ), through June 2039, to help fund key transportation improvements in Riverside County. It provides funds to improve highways, regional arterials, and local streets and roads; to develop new transportation corridors; to expand commuter rail, public transit, specialized transportation services, and commuter programs; develop a program of economic incentives to attract commercial and industrial development and jobs; and support bond financing. These types of improvements are needed to maintain and improve the quality of life in the County, reduce current congestion, and provide adequate transportation facilities to accommodate reasonable growth. Since existing state and federal sources provide only a limited amount of funding for a limited number of projects, Measure A will cover the shortfall for key projects with a funding source that is under local control. It will use the revenue generated in Western County, Coachella Valley, and Palo Verde Valley to meet the unique transportation needs of each of those areas. Riverside County Transportation Commission 161

175 Transportation Uniform Mitigation Fee The TUMF program was adopted by all local jurisdictions in the Western County area of Riverside County in July Under this program, which is administered by the WRCOG, fees are assessed on new residential and commercial development in Western County to ensure that new development pays its fair share toward providing the needed infrastructure improvements on the regional system of highways and arterials. In accordance with the extension of Measure A in 2002 and an amended Memorandum of Understanding with WRCOG, the Commission shall receive 48.7% of the TUMF revenues to fund equally the regional arterial system and the development of new corridors. Program Terms The following explanations of terms are presented to aid in understanding the various program terms used and discussed in the narrative. Bicycle and Pedestrian LTF provides revenues for the construction of bicycle and pedestrian facilities and related right-of-way costs. Bond Financing In order to accomplish the construction of the highway and rail projects and implementation of the local streets and roads and other programs identified in the Measure A TIP as soon as possible, some level of borrowing will be required. A portion of the revenues generated in the Western County will be made available for this purpose. Commuter Assistance The purpose of this program is to provide short-term incentives to encourage single occupant vehicle drivers to use alternate modes of transportation including carpools, vanpools, bus pools, public bus, commuter rail, walking, and bicycling. Commuter Rail Measure A provides operating and capital revenue for commuter rail service to Orange and Los Angeles counties. LTF provides revenue for commuter rail operations in Riverside County. These trains operate on existing railroad tracks parallel to major freeways. Commuter rail service provides a safe and reliable transit alternative to driving alone during the peak period. Plans to expand commuter rail service in Western Riverside County from Riverside to Perris via Moreno Valley are currently underway. Economic Development Measure A will be used to create an infrastructure improvement bank to improve existing interchanges, construct new interchanges, provide public transit linkages or stations, and make other improvements to the transportation system in Western County. These incentives are intended to attract commercial and industrial development and jobs to locate within the Western County area. Highways Measure A provides revenues to widen existing highways, expand interchanges, and improve remote freeways. These improvements are needed to control traffic congestion in Western County and improve access and safety in Coachella Valley. Costs of these improvements will be covered by funds from state and federal sources. Measure A revenue will be used to supplement not replace these other sources and to accelerate work on projects deferred for lack of funding. Local Streets and Roads Measure A provides revenues to local jurisdictions for the construction, repair, and maintenance of local streets and roads. The County and local cities are required to supplement those expenditures with other previously dedicated revenue sources to maintain road improvements at a level equal to or greater than the base year amount. LTF provides revenue for local street and road improvements in the Palo Verde Valley. Metrolink The Commission s commuter rail program is part of the regional network operated by SCRRA operating under the name of Metrolink, a five-county joint powers agency composed of the transportation commission s of Los Angeles, San Bernardino, Orange, Riverside, and Ventura. The purpose of this agency is to manage the operation and maintenance of commuter rail in the five-county metropolitan area. 162 Riverside County Transportation Commission

176 Motorist Assistance The Motorist Assistance program has three elements. The FSP is a special team of tow trucks that travel on selected Riverside County freeways during peak commute hours to assist drivers when their cars break down. Another element is the call box system, which installation and operation is made possible with revenue provided by the public. Call boxes are being provided by the Commission, which serves as the County s SAFE. The third element is the Inland Empire 511 traveler information system. One dollar per year from every motor vehicle registration pays for the call boxes and their operation and maintenance, IE511 operations, and matching funds for FSP. New Corridors Four new transportation corridors were identified through the CETAP. Measure A and TUMF funds will be used for environmental clearance, right of way, and construction of these new corridors. Public Transit The Commission is the agency responsible for short-range transportation planning and programming and coordinating the operation of all public transportation service within the County. The Commission allocates and disburses TDA as well as Measure A funds to the transit operators for operating and capital purposes. Regional Arterials Measure A funds generated within the Western County and Coachella Valley areas are used for major regional road projects. The system is to be implemented with a mix of funding required from new development under a Transportation Uniform Mitigation Fee to be paid by developers from new development and from Measure A funds returned to the Western County and Coachella Valley areas. The Transportation Uniform Mitigation Fee schedule shall be established in order to generate at least the equivalent of Measure A funding toward the regional arterial system. Specialized Transit Measure A provides public transit revenues to improve transportation services for seniors, persons with disabilities and commuters. For seniors and persons with disabilities, it provides dial-a-ride cab service at night for emergency purposes, guarantees half-price bus fares, and assists centers with their transit programs. For commuters, it improves express bus service and expands ridesharing programs. In the Coachella Valley, revenues also are available for bus replacement and local bus service. Transportation Improvement Plan This plan also acts as the County s expenditure plan and was prepared by the Commission for the proposed 1/2% local retail transaction and use tax for transportation purposes to be collected. This was proposed by the Commission as a means to fill the funding shortfall to implement needed highway, regional arterial, economic development incentives, and new corridors; local street and road programs; commuter rail projects and operations; public bus transit and specialized transportation improvements; commuter assistance programs; and bond financing. General Terms The following explanations of terms are presented to aid in understanding the narrative discussions and illustrations included in this budget document and the terminology generally used in governmental accounting, auditing, financial reporting, and budgeting. Accountability The state of being obliged to explain one s actions, to justify what one does. Accountability requires a government to answer to its citizenry to justify the raising of public resources and the purposes for which they are used. Accounting System The methods and records established to identify, assemble, analyze, classify, record, and report a government s transactions and to maintain accountability for the related assets and liabilities. Accrual Basis of Accounting The accounting of the financial effects of transactions, events, and interfund activities when they occur, regardless of when cash is received or paid. Riverside County Transportation Commission 163

177 Audit A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management s assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. The auditor obtains this evidential matter through inspection, observation, inquiries, and confirmations with third parties. Balanced Budget The identification of revenues and other financing sources as well as available fund balances to fund operating and capital expenditures and other financing uses on an annual basis. Basis of Accounting A term used to refer to when the effects of transactions or events are recognized for financial reporting purposes. For example, the timing of recognition can be when the transaction or event occurs (accrual basis) or when cash is received or paid (cash basis). Bond A written promise to pay a specified sum of money (face or principal amount) at a specified date or dates in the future (maturity date), together with periodic interest at a specified rate. Bonds are primarily used to finance capital projects. Budget A plan of financial activity for a specified period indicating all planned revenues and expenditures for the budget period. Annual budgets are usually required by law and are essential to sound financial management. The Commission prepares an annual budget that is applicable to a single fiscal year. Budgetary Control The control or management of a government in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues. Budget Document The instrument used by the budget-making authority to present a comprehensive financial program to the appropriating governing body. Capital Outlay Expenditures resulting in the acquisition of or addition to the government s capital assets or assets to be transferred to Caltrans, such as highway projects. Capital Project A long-term strategic project requiring relatively large sums of revenues, accumulated reserves, and/or financing to acquire, develop, construct, improve, and/or maintain a capital asset such as land, buildings, and infrastructure. Capital Projects Fund A governmental fund type created to account for financial resources to be used for the acquisition or construction of major capital projects. The Commission has two capital projects funds for Commercial Paper and Sales Tax Bonds to account for debt proceeds from 2009 Measure A commercial paper notes and sales tax revenue bonds related to highway, commuter rail, regional arterial, and local streets and roads projects. Commercial Paper An unsecured short-term promissory note issued primarily by corporations with maturities ranging from two to 270 days. The credit risk of almost all commercial paper is rated by a rating service. Comprehensive Annual Financial Report A financial report that encompasses all funds of the government. In the financial section of the CAFR are the basic financial statements and required supplementary information as well as combining and individual fund financial statements, as necessary. The CAFR also contains introductory information and statistical data. 164 Riverside County Transportation Commission

178 Current Financial Resources Measurement Focus A measurement focuses that reports on the near-term or current inflows, outflows, and balances of spendable financial resources. This focus is unique to accounting and financial reporting for state and local governments and is used for reporting the financial position and results of operations of governmental funds. Debt An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants, and notes. Debt Coverage Ratio The ratio of pledged revenues to related debt service for a given year. Debt Limit The maximum amount of outstanding gross or net debt legally permitted. Debt Proceeds The difference between the face amount of debt and the issuance discount or the sum of the face amount and the issuance premium. Debt proceeds differ from cash receipts to the extent issuance costs, such as underwriters fees, are withheld by the underwriter. Debt Service Fund A governmental fund type created to account for the accumulation of resources for and payment of general long-term debt principal and interest. The Commission has one debt service fund for its sales tax revenue bonds. Expenditures Represents decreases in net financial resources on the transfer of property or services for acquiring an asset, service, or settling a loss. Financial Advisor In the context of the issuance of debt, a consultant who advises the issuer on any of a variety of matters related to the issuance. The financial advisor sometimes also is referred to as the fiscal consultant. Financial Audit An audit made to provide independent assurance whether the financial statements of a government are presented fairly in conformity with generally accepted accounting principles. Financial Resources Resources that are or will become available for spending and include cash, resources ordinarily expected to be converted to cash such as receivables, inventory, and prepaid assets. Fiscal Year For the Commission, the 12-month period that begins July 1 and ends June 30 of the designated fiscal or operating year for accounting and budgeting purposes. Fund A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities, and residual equities or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations. Fund Balance The excess of a governmental fund s assets over its liabilities. Riverside County Transportation Commission 165

179 Fund Type Any one of eleven classifications into which all funds are categorized in governmental accounting. Governmental fund types include general, special revenue, debt service, capital projects, and permanent funds. Proprietary fund types include enterprise and internal service funds. Fiduciary fund types include pension trust, investment trust, and privatepurpose trust funds and agency funds. GASB 45 Statement No. 45, Accounting for Other Postemployment Benefits (OPEB), issued by the Governmental Accounting Standards Board implemented by the Commission in FY 2007/08. GASB 45 requires recognition of postretirement health care costs on an accrual basis over a period approximating the employees years of service and to provide information about actuarial accrued liabilities associated with these benefits and whether and to what extent progress is being made in funding the plan. General Fund The governmental fund type used to account for all financial resources, except those required to be accounted for in another fund. General Ledger A record containing the accounts needed to reflect the financial position and the results of operations of a government. In double-entry bookkeeping, debit balances equal the credit balances in the general ledger. Generally Accepted Accounting Principles (GAAP) Minimum standards and guidelines for financial accounting and reporting. GAAP encompasses the conventions, rules, and procedures that serve as the norm for the fair presentation of financial statements. The GASB is the primary authoritative accounting and financial reporting standard-setting body on the application of GAAP to state and local governments. Generally Accepted Auditing Standards (GAAS) Rules and procedures established by the American Institute of Certified Public Accountants (AICPA) for the conduct of a financial audit. There are ten basic GAAS, classified into three broad categories: general standards, standards of fieldwork, and standards of reporting. The Auditing Standards Board of the AICPA publishes Statements on Auditing Standards (SAS) and related interpretations to comment and expand upon these basic standards. Generally Accepted Government Auditing Standards (GAGAS) Standards established by the General Accounting Office (GAO) in its publication, Government Auditing Standards, for the conduct and reporting of both financial and performance audits in the public sector. GAGAS set forth general standards applicable to both types of audits and separate standards of fieldwork and reporting for financial and performance audits. The GAGAS standards of fieldwork and reporting for financial audits incorporate and build upon GAAS. Governmental Funds Funds generally used to account for tax-supported activities. The Commission s governmental funds are comprised of general, special revenue, debt service, and capital projects funds. Grant A contribution by a government or other organization to support a particular function or program. Independent Auditor An auditor meeting the independence criteria set forth in GAAS and GAGAS. Internal Audit An independent appraisal of the diverse operations and controls within a government entity to determine whether acceptable policies and procedures are followed, established standards are met, resources are used efficiently and economically, and the organization s objectives are being achieved. The term covers all forms of appraisal of activities undertaken by auditors working for and within an organization. Internal Control Policies and procedures established to provide reasonable assurance that specific government objectives will be achieved. 166 Riverside County Transportation Commission

180 Joint Venture A legal entity or other organization resulting from a contractual agreement and that is owned, operated, or governed by two or more participants as a separate and specific activity for the benefit of the public or service recipients and in which the government retains an ongoing financial interest or ongoing financial responsibility. The Commission is a member agency of Metrolink. Legal Level of Budgetary Control The level at which a government s management may not reallocate resources without special approval from the legislative body. Loans Receivable An asset account reflecting amounts loaned to individuals or organizations external to the Commission, including notes taken as security for such loans. Measurement Focus The objective of a measurement that is what is being expressed in reporting a government s financial performance and position. A particular measurement focus considers not only which resources are measured (financial or economic), but also when the effects of transactions or events involving those resources are recognized (basis of accounting). The measurement focus of the Commission s government-wide and fiduciary fund financial statements is economic resources, whereas the measurement focus of governmental fund financial statements is current financial resources. Modified Accrual Basis The accrual basis of accounting adapted to the governmental funds measurement focus according to which revenues and other financial resource increments (e.g., bond issue proceeds) are recognized when they become susceptible to accrual, that is when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the fund liability is incurred except for unmatured interest on general long-term debt and certain similar accrued obligations when due. The Commission s governmental funds are accounted for using the modified accrual basis of accounting. Other Financing Sources Amounts classified separately from revenues to avoid distorting revenue trends that represent an increase in current financial resources. Other financing sources generally include general long-term debt proceeds, amounts equal to the present value of minimum lease payments arising from capital leases, proceeds from the sale of capital assets, and transfers in. Other Financing Uses Amounts classified separately from expenditures to avoid distorting expenditure trends and represent a decrease in current financial resources. Other financing uses generally include transfers out and the amount of refunding bond proceeds deposited with the escrow agent. Overhead Indirect costs that cannot be specifically associated with a given service, program, or department and thus, cannot be clearly associated with a particular functional category. Principal In the context of bonds other than deep-discount debt, the face value or par value of a bond or issue of bonds payable on stated dates of maturity. Program Group activities, operations, or organizational units directed to attaining specific purposes or objectives. Program Budget A budget wherein expenditures are based primarily on the functions or activities of a government rather than to specific items of cost or to specific departments. Riverside County Transportation Commission 167

181 Purchase Order A document authorizing the delivery of specified merchandise or the rendering of certain services and the making of a charge for them. Refunding Bonds Bonds issued to retire bonds already outstanding. The proceeds of refunding bonds may be used to repay the previously issued debt (current refunding) or to be placed with an escrow agent and invested until used to pay principal and interest on old debt at a future date (advance refunding). Reimbursement Grant A grant for which a potential recipient must first incur qualifying expenditures to be eligible. Restricted Fund Balance Those portions of fund balance which are restricted for specific purposes by third parties or enabling legislation. Special Revenue Fund A governmental fund type used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditure for specified purposes. The Commission maintains special revenue funds for Measure A Western County, Coachella Valley, and Palo Verde Valley; Transportation Uniform Mitigation Fee; Freeway Service Patrol; Service Authority for Freeway Emergencies; State Transit Assistance; and Local Transportation Fund. Transfers All interfund transfers representing flows of assets between funds of the government without equivalent flows of assets in return and without a requirement for repayments. Trustee A fiduciary holding property on behalf of another. RTA Commuter Link 168 Riverside County Transportation Commission