SANDAG
TransNet Independent Taxpayer Oversight Committee
Agenda Written Communications
Wednesday, February 14, 2024 tem #PC Name Alan C
9:30 a.m.
Welcome to SANDAG. The TransNet Independent Taxpayer Oversight Committee (ITOC) meeting scheduled for Wednesday, February 14, 2024, will be held in person in the SANDAG Board Room. While ITOC members will attend in person, members of the public will have the option of participating either in person or virtually.
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Esta reunión se llevará a cabo en inglés, y se ofrecerá interpretación simultánea en español. Se ofrecerá interpretación en otros idiomas previa solicitud a ClerkoftheBoard @sandag.org al menos 72 horas antes de la reunión.
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We are committed to creating a San Diego region where every person who visits, works, and lives can thrive. 2 Independent Taxpayer Oversight Committee
Wednesday, February 14, 2024
Comments and Communications
1. Non-Agenda Public Comments/Member Comments
Members of the public shall have the opportunity to address the TransNet Independent Taxpayer Oversight Committee (ITOC) on any issue within the jurisdiction of the ITOC that is not on this agenda. Public speakers are limited to three minutes or less per person. Public comments under this agenda item will be limited to five public speakers. If the number of public comments under this agenda item exceeds five, additional public comments will be taken at the end of the agenda. ITOC members and SANDAG staff also may present brief updates and announcements under this agenda item.
Consent
+2. Approval of Meeting Minutes Approve
Tessa Lero, Francesca Webb, SANDAG
The ITOC is asked to review and approve the minutes from its January 10, 2024, meeting.
Meeting Minutes.pdf
+3. Quarterly TransNet Financial Reports for the Period Ending December 31, Information 2023, and other Financial Data
Andre Douzdjian, Marcus Pascual, SANDAG
This report provides an update of the financial status of the TransNet Program.
Quarterly Financial Data.pdf
Att. 1 - Discussion Memo.pdf
Att. 2 - Quarterly Report for FY 2024 2nd Qtr.pdf
Att. 3 - Estimated Annual Sales Tax Revenue.pdf
Att. 4 - ITOC Operating Budget Analysis.pdf
Att. 5 - LSI Maintenance Analysis.pdf
Att. 6 - Grant Program Balances.pdf
Att. 7 - Local Agency Street and Road Balances.pdf
+4. Quarterly Finance Report and Update on Financial Markets - Through Information December 31, 2023
Andre Douzdjian, Naomi Young, SANDAG
This report provides an update on the latest developments in the financial markets, economy, sales tax revenues, and strategies being explored and implemented to minimize possible impacts to the TransNet Program.
Quarterly Finance Report and Update on Financial Markets.pdf Att. 1 - Financial Market Review.pdf
Att. 2 - Local Economy and Sales Tax Revenue.pdf
Att. 3 - Investments and Debt Portfolio.pdf
+5. Draft Schedule of ITOC Meeting Agenda Topics Information Susan Huntington, Vanessa Leon, SANDAG
The ITOC is asked to review the proposed upcoming draft schedule of agenda 3 topics.
Draft Schedule of ITOC Meeting Agenda Topics.pdf
+6. Regional Bikeway Program Status Update: Early Action Program Information Omar Atayee, Chris Kluth, SANDAG
This report provides an update of the progress made on the Regional Bike Plan Early Action Program, as a component of the Regional Bikeway Program, since October 2023.
Regional Bikeway Program Status Update EAP.pdf
Att. 1 - Bike EAP Priority List 2013.pdf
Att. 2 - Bike EAP Crosswalk and Project Status.pdf
Att. 3 - TransNet Extension Flow of Funds.pdf
Att. 4 - CIP Total Expenditure, February 1, 2024. pdf
Reports
+7. Proposed FY 2025 ITOC Annual Operating Budget Recommend Susan Huntington, Zara Sadeghian, SANDAG
The ITOC is asked to recommend that the Board of Directors approve the proposed ITOC Operating Budget as part of the FY 2025 SANDAG Program Budget.
Proposed FY 2025 ITOC Annual Operating Budget.pdf
Att. 1 - ITOC Annual Project Funding Work Element.pdf
+8. 2024 ITOC Annual Report: Initial Input Discussion
Susan Huntington, Vanessa Leon, Zara Sadeghian, SANDAG
The ITOC is asked to discuss the proposed format and content for the 2024 ITOC Annual Report.
2024 ITOC Annual Report Initial Input.pdf
Att. 1 - 2023 ITOC Annual Report.pdf
+9. FY 2025 to FY 2029 TransNet Program and Transit-Related Revenues Information Susan Huntington, Michelle Smith, Naomi Young, SANDAG
Staff will present an update of the proposed FY 2025 to FY 2029 estimates and apportionments for Transportation Development Act, Federal Transit Administration, and TransNet funds.
FY 2025 to FY 2029 TN Program and Transit-Related Revenues.pdf Att. 1 - Funding Programs.pdf
Att. 2 - Forecast Methodology for TDA and TN Forecasts.pdf Att. 3 - FY 2024 Apportionment and Estimates from FY 2025 to FY 2029.pdf +10. TransNet Regional Transportation Congestion Improvement Program Information Proposed Fee Adjustment
Susan Huntington, Zara Sadeghian, Naomi Young, SANDAG
Staff will present information regarding a proposed 4.9% adjustment to the Regional Transportation Congestion Improvement Program, beginning July 1, TransNet RTCIP Proposed Fee Adjustment.pdf
Att. 1 - Discussion Memo.pdf
4 11. Adjournment
The next ITOC meeting is scheduled for Wednesday, March 13, 2024, at 9:30 a.m. + next to an agenda item indicates an attachment
SANDAG
TransNet Independent Taxpayer Oversight Committee Item: 2 February 14, 2024
January 10, 2024, Meeting Minutes
View Meeting Video
Chair Jonathan Frankel called the meeting of the TransNet Independent Taxpayer Oversight Committee (ITOC) to order at 9:33 a.m.
1. Non-Agenda Public Comments/Member Comments
There were no public or member comments.
Consent
2. Approval of Meeting Minutes
The ITOC was asked to approve the minutes from its November 8, 2023, meeting.
3. Draft Schedule of ITOC Meeting Agenda Topics
The ITOC was asked to review the proposed upcoming draft schedule of agenda topics.
4. TransNet ITOC Member Appointment Process
This report provided an overview of the reappointment process for ITOC members whose term expires in May 2024.
5. TransNet Major Corridor and Regional Bikeway Program of Projects: Quarterly Status Report (FY 2024 Q1)
This report provided an update on TransNet Major Corridor and Regional Bikeway Program projects.
There were no public comments on the consent agenda
Action: Upon a motion by Sunnie House (CEO/Private Sector) and a second by Vice Chair Pedro Orso- Delgado (Contractor/Construction), the ITOC voted to approve the Consent Agenda.
The motion passed.
Yes: Chair Frankel, Vice Chair Orso-Delgado, Lorraine Ahlquist (Biology/Environmental), Sunnie House, Maryam Babaki (Finance/Budgeting), Frank Rivera (Licensed Civil/Traffic Engineer), and Les Hopper (Licensed Engineer).
No: None.
Abstain: None.
Absent: None.
Reports
6. Local Agency Presentation
Leia Cabrera and Matthew Widelski, City of Encinitas, presented an update on the city's TransNet Local Street and Road Program.
There were no public comments on this item.
Action: Information only.
6 7. Updates to Proposed Amendments to the TransNet Extension Ordinance: ITOC Membership and Selection Process
Chair Frankel presented the item.
There were no public comments on this item.
Action: Upon a motion by Frank Rivera, and a second by Vice Chair Orso-Delgado, the ITOC voted to recommend that the Board of Directors approve the updated TransNet Extension Ordinance amendments specific to the membership makeup and selection process for the ITOC.
The motion passed.
Yes: Chair Frankel, Vice Chair Orso-Delgado, Lorraine Ahlquist, Sunnie House, Maryam Babaki, Frank Rivera, and Les Hopper.
No: None.
Abstain: None.
Absent: None.
8. 2023 Regional Transportation Improvement Program Amendment No. 9 Associate Financial Analyst Richard Radcliffe presented Amendment No. 9, focusing the review on the TransNet-funded projects.
There were no public comments on this item.
Action: Discussion only.
9. Specialized Transportation Grant Program Cycle 13 Call for Projects Kickoff Associate Grants Program Analyst Zachary Rivera presented an overview of the Specialized Transportation Grant Program Cycle 13 Call for Projects.
Public Comments: Tim Bilash
Action: Information only.
10. TransNet Grant Programs: Biannual Status Update
Grants Program Manager Jenny Russo, Regional Planner Lauren Lee, and Associate Grants Program Analyst Aly Vazquez presented the item.
Public Comments: The Original Dra
Action: Upon a motion by Vice Chair Delgado, and a second by Maryam Babaki, the ITOC voted to recommend that the Transportation Committee approve a 6-month schedule extension for the Sweetwater Road Protected Bikeway Smart Growth Incentive Program project.
The motion passed.
Yes: Chair Frankel, Vice Chair Orso-Delgado, Lorraine Ahlquist, Sunnie House, Maryam Babaki, Frank Rivera, and Les Hopper.
No: None.
Abstain: None.
Absent: None.
11. Upcoming Meeting
The next ITOC meeting is scheduled for Wednesday, February 14, 2024, at 9:30 a.m. 7 12. Adjournment
Chair Frankel adjourned the meeting at 11:23 a.m.
DRAFTI
8 Confirmed Attendance at TransNet Independent Taxpayer Oversight Committee Meeting
Jurisdiction Name Attended
Biology/Environmental Lorraine Ahlquist Yes
CEO/Private Sector Sunnie House Yes
Contractor/Construction Pedro Orso-Delgado, Vice Chair Yes Finance/Budgeting Maryam Babaki No
Licensed Civil/Traffic Engineer Frank Rivera Yes
Licensed Engineer Les Hopper Yes
Real Estate/Right-of-Way Acquisition Jonathan Frankel, Chair Yes Advisory Members
San Diego County Auditor's Office Tracy Drager Yes
SANDAG
TransNet Independent Taxpayer Oversight Committee Item: 3 February 14, 2024
Quarterly TransNet Financial Reports for the Period Ending December 31, 2023, and other Financial Data
Overview
Action: Information
This report provides quarterly TransNet financial This report provides an update of the information in accordance with requests from the financial status of the TransNet Program.
TransNet Independent Taxpayer Oversight Committee
(ITOC) and in response to recommendations from the
first and second TransNet Triennial Performance Fiscal Impact:
Audits. Sales tax revenues of $215.67 million
through the second quarter of FY 2024 were
Key Considerations lower when compared to $219.96 milion of revenues received through the same quarter
• SANDAG has an aggregate level debt service
profile with annual debt service ranging from of the prior fiscal year. $98.4 million to $106.7 million per year through Schedule/Scope Impact:
FY 2048. Maximum annual debt service coverage This report is presented to the ITOC on a for the senior lien, using sales tax receipts of quarterly basis. $425.5 million for the last 12 months ending
December 31, 2023, is 3.99 times. For every $1 of debt service, SANDAG received $3.99 of sales tax revenue, providing ample coverage. The debt-to-revenue ratio includes the FY 2024 debt service of the 2010, 2014, 2016, 2019, 2020, 2021, and 2023 bonds. • Cumulative fiscal year sales tax revenues through December 31, 2023, came in 1.95% lower than last year.
• All cities and the county are within the allowable 30% limitations for Maintenance spending. • The City of Carlsbad has cumulatively spent 44.9% of their TransNet allocation. The City is expected to be over the 75% limit by the end of the fiscal year when taking into consideration the amount programmed in FY 2024 indicated by column J on Attachment 7.
André Douzdjian, Chief Financial Officer
Attachments: 1. Discussion Memo
2. TransNet Extension Quarterly Report for FY 2024, Second Quarter
3. TransNet Extension Estimated Annual Sales Tax Revenue as Compared to Actual Receipts through December 31, 2023
4. ITOC Operating Budget Analysis
5. Local Agency Street and Road Maintenance Analysis as of December 31, 2023
6. TransNet Grant Program Balances as of December 31, 2023
7. Local Agency Street and Road Balances as of December 31, 2023 10 Attachment 1
Discussion Memo
The TransNet Independent Taxpayer Oversight Committee (ITOC) requests certain information on a quarterly basis and is also provided information based on recommendations from the first and second TransNet Triennial Performance Audits.
The first TransNet Triennial Performance Audit recommended the following:
• Recommendation No. 17: SANDAG should....report to the ITOC on the status of the debt-to- revenue ratio on a regular basis. (See cover page)
• Recommendation No. 18: Other data that would be valuable for the ITOC to receive is the quarterly data related to sales tax revenue collected in the particular quarter, collected to date, and distributed amongst the various Extension Ordinance projects, programs, and entities. (Attachment 2)
The Following are additional items requested by ITOC to be provided on a quarterly basis:
• TransNet Extension estimated annual sales tax revenue as compared to actual receipts (Attachment 3).
• The ITOC operating budget analysis (Attachment 4) includes the Board of Directors-approved FY 2024 Program Budget, along with the actual (unaudited) expenses to date for the six months ending December 2023, and the projected budgets for FY 2025 through FY 2026. • Local Agency Street and Road Maintenance amounts paid to the local agencies (Attachment 5). • Committed and actual spent activity of TransNet grant programs (Attachment 6).
Recommendation No. 7 of the second TransNet Triennial Performance Audit includes the following:
• Replacing the 30% fund balance limitation with a more effective measure to monitor performance... where SANDAG and ITOC could observe progress and performance through administrative processes rather than through an audit compliance mechanism.
In response to Recommendation No. 7, in November 2013, the ITOC requested minor adjustments to the Local Agency Street and Road balances attachment to assist in monitoring balances and expected use of local agency TransNet funds. The Local Agency Street and Road balances schedule (Attachment 7) includes unaudited balances held at SANDAG and the local jurisdictions through December 30, 2023, balance of programmed funds remaining in the Regional Transportation Improvement Program available for payment in FY 2024, estimated balance of funds that have not been programmed, and the cumulative percentage of funds anticipated to be spent through the end of FY 2024 if all funds other than those not programmed are expended. At the request of ITOC, the heading for column J has been modified to better articulate data provided. 11 Attachment 2
TransNet EXTENSION QUARTERLY REPORT
FISCAL YEAR: FY 2024 QUARTER: 2
TransNet Allocations Fund Disbursements
Sales Tax Allocations Other. Total Program Disbursements Debt Service Total Income Allocation Disbursements
PROGRAM & RECIPIENT This Quarter FY to Date Program to Date Program to Date Program to Date This Quarter FY to Date Program to Date This Quarter FY to Date Program to Date Program to Date SANDAG Admin $2,147,596 S4.313,394 S55,698,740 $207,862 S(55,163,149) S(55, 163,149) ITOC $126,008 $252,017 54,515,515 $65,141 $4,580,656 $(61,694) $(196,381) $(4,153,445) $0 $0 $0 S(4,153,445) | Bicycle/Pedestrian/Neighborhood Safely $2,147,596 S4,313,394 $90,370,959 $4,222,519 $94,593,478 S(4,306,468) $(4,306,959) S(186,270,087) $(1,323,863) S(2,634,258) S(23,312,143) $(209,582,230) Major Coridor Capital Projecta $39,124,272 $78,580,540 $1,659,825,841 $(188,730,606) $1.471,095,235 S(21,148,456) $(21,157,595) (2,968,099,778) $(25,310,802) $(24,198,974) 5(1,263,303,873) S(4,231,403,651) Major Corridor Project EMP $4,530,179 $9,098,799 5192,190,361 $152,667,224 $344.857,585 $11.497,986 $11,496,928 S(418,596,911) S(3,646,187) S(3,849,631) $(231,492,769) $(650,089,680) Local Project EMP $1,853,255 $3,722,236 $78,623,329 $4,028,854 $82,652,183 $(239,484) $(239,917) S(18,211,442) $O so $(54) S(18,211,496) Smart Growth Incontive Program $2,162,131 $4,342,609 $91,727,218 S5,138,417 $96,865,635 $(695,546) $0 $0 $0 S(50,782,104) Local Streets and Roads
City of Carisbad $1,230,167 S2.470,748 $46,442,640 $10,745,675 $57.188,315 S(725,096) $(725,383) S(26,996,212) $O $0 $o $(26,996,212) City of Chula Vista $2,349,456 $4,718,900 $92,026,513 $6,049,539 $98,076,052 $(1,799,783) $(1,800,333) S(71,039,885) $(71,039,885) City of Coronado $202,117 $405,857 $9.200,634 $1,099,826 $10,300,460 $(14) S(60) S(6,965, 180) $0 $0 S(6.965,180) City of Del Mar $68,471 $137,421 $3,189,861 $208,991 $3,398,852 $(49,070) $(49,083) $(4.915,127) $(33,491) $(55,038) $(2,212,817) S(7.127.944) City of El Cajon $882,071 $1,771,581 $37, 400,664 $3,091,508 $40.492,172 S(1,463,213) $(1,463,417) $(28,771,877) $o $(28,771,877) City of Encinitas S606,516 $1,218,113 $25,932,351 $4,276,314 $30,208,665 $(47) $(187) S(26,431,514) $(26,431,514) City of Escondido $1,327,693 $2,666,636 $55,832,466 $6,456,293 $62,288,759 $(1,750,103) S(1,750,413) S(47,475,573) $(47,475,573) City of Imperial Beach $232,479 $466,840 $10.906.256 $597,376 $11,503,632 $(27,257) $(27,309) S(10,953,974) S(120,423) S(212,956) $(1,211,754) S(12,165,728) City of La Mesa $539,776 $1,0B4,060 523,958,602 S3,582,571 $27,541.173 $(41) S(51,266) S(22,890,466) $(12) $(12) $(4,605,170) S(27.495,636) City of Lemon Grove $242,074 $486,112 $10,952,627 $695,292 $11,647,919 $(105,444) S(105.498) $(9,963,801) $(9,963,801) City of National City $502,292 $1,008,774 $21,803,767 $1,755,808 $23,559,575 $(39) $(154) S(18,316,464) so $(8,233,109) $(26,549,573) City of Oceanside $1,605,641 $3,224,909 $70,554,954 $9,303,564 $79,858,518 $(126) S(63,511,476) $(17) $(17) $(4,915,707) S(68,427,183) City of Poway $518,266 $1.040,859 $23,130.243 $1,406,587 $24,536,830 $(40) S(159) S(19.765,580) so so $(19,765,580) City of San Diego $11,927,664 $23,957,244 $506,279,231 $29,742,205 $536,021,436 $(8,411,791) $(15,049,051) S(510,176,849) S(273,748) S(520,833) $(1,688,741) S(511,865,590) City of San Marcos $817,757 $1,642,400 $33,615,564 $4,320,816 $37,936,380 $(104,480) S(917,285) S(31,848,223) S(228,295) S(296,275) $(8,471,452) | $(40,319,675) City of Santee $489,996 $984,076 $22,112,963 S1,281,347 $23,394,310 S(500,037) $(500,150) $(25,231,198) S(203,867) S(398,573) S(14,438,158) $(39,669,356) City of Solana Beach $148,236 $297,632 $6,725,532 $606,533 $7,332,065 $(10) $(43) $(8,406,385) | S(80,485) S(106,534) $(3,009,038) $(11.415,423) • Page 1 of 4 10/01/23 - 12/31/23
12 FISCAL YEAR: FY 2024 QUARTER: 2
TransNet Allocations Fund Disbursements
Sales Tax Allocations Other Total: Program Disbursements Debt Service Total Income" Allocation
Disbursements
PROGRAM & RECIPIENT This Quarter FY to Date Program to Date Program to Date Program to Date This Quarter FY to Date Program to Date This Quarter FY to Date Program to Date Program to Date City of Vista $840,579 $1,688,241 $35,682,342 $4,095,627 $39,777,969 $(147,901) $(148,095) $(32,080,873) $0 $0 $(32,080,873)
San Diego County $5,429,704 $10,905,746 $235,329,943 $20,321,003 $255,650,946 $(1,710,426) $(1,711,701) $(168,176,393) S(448,442) $(32,258) $(24,875,919) $(193,052,312) Total Local Streets and Roads $29,960,955 $60,176,149 $1,271,077,153 $109,636,875 $1,380,714,028 $(16,794,918) S(24,300,087) 5(1,133,917,050) $(1,388,780) $(1,622,496) $(73,661,865) $(1,207,578,915)
Transit Services
MTS $11,679,654 $23,458,418 $495,377,307 $854,346 $496,231,653 $(11,955,687) $(20,786,413) $(492,667,649) $O $0 $(492,667,649) NCTD $4,756,401 $9,553,164 $201,913,344 $335,874 $202,249,218 $(4,930,371) $(9,451,482) $(198,818,796) $(833) $(21,817) $(1,809,162) $(200,627,958) Senior Grant Program $552,116 $1,108,916 $23,423,200 $251,528 $23,674,728 $(252,755) $(252,884) S(21,535,191) $0 $0 $(21,535,191)
Total Transit Services $16,988,171 $34,120,498 $720,713,851 $1,441,748 $722,155.599 S(17,138,813) $(30,490,779) S(713,021,636) $(833) $(21,817) $(1,809,162) $(714,830,798)
New Major Corridor Transit Operations $8,339,647 $16,750,062 $353,804,982 $22,264.422 $376,069,404 $(7,082,877) $(16,338,678) $(229,537,890) $0 $(229,537,890) TOTAL TRANSNET EXTENSTION $107,379,810 $215,669,698 $4,518,547,949 $110,942,456 $4,629,490,405 S(58,170,270) $(90,279,519) (5,777,753,492) $(31,670,465) $(32,327,176) 5(1,593,579,866) $(7,371,333,358) Commercial Paper Program Activity
PROGRAM & RECIPIENT Commercial Paper Disbursements PROGRAM & RECIPIENT Commercial Paper Program Availability FY to Date Program to Date Prior Years This Quarter FY to Date Program to Date City of National City $(4,500,000) CP Program $100,000,000 $0 $100,000,000 City of Santee $(3,950,000)
NCTD S(19,100,000) $1,350,000 $(17,750,000)
NCTD $(34,000,000)
City of La Mesa $(417,000) $417,000
City of Imperial Beach $(1,455,000)
City of San Diego $(26,167,000) City of Oceanside $0
City of La Mesa $(4,500,000) City of Imperial Beach $(897,000) $297,000 $(600,000) City of Oceanside $(4,790,000) Major Corridor Capital Projects $0 50 City of Del Mar $(704,000) $(26,167,000) $6,400,000
City of San Diego $6,400,000 $(19,767,000)
Major Corridor Capital Projects $(99,999,679)
Major Corridor Project EMP $0 so
Major Corridor Project EMP $(16,052,321)
Total CP Disbursements $O $(196,118,000) CP Outstanding S(46,581,000) $(38,117,000% Other Activity CP AVAILABLE FOR ISSUANCE | $53,419,000 $61,883,000 PROGRAM & RECIPIENT Sales Tax Revenue Transfers for EMP Debt Service Payments Prior Years This Quarter FY to Date Program to Date
Major Corridor Capital Projects $(151,839,904) $0 $(151,839,904) Major Corridor Project EMP $198,646,184 $(12,381,978) $(16,746,096) $181,900,088 Local Project EMP $(46,806,280) $12,381,978 $16,746,096 $(30,060,184) Total Other Activity so $0
13 2008 ABCD Sales Tax Revenue Bond Activity - $600,000,000 2012 A Sales Tax Revenue Bond Activity - $420,585,000 PROGRAM & RECIPIENT Bond Proceeds Disbursements 4 PROGRAM & RECIPIENT Bond Proceeds Disbursements4.5.6 Prior Years FY to Date Program to Date Prior Years This Quarter FY to Date Program to Date This Quarter
San Diego County $16,893,500 San Diego County $5,706,500 $0 $5,706,500 $16,893,500
Major Corridor Capital Projects $444,770,201 $444,770,201 Major Corridor Capital Projects $392,721,119 $392,721,119 Major Corridor Project EMP $26,812,066 $0 $26,812,066
Major Corridor Project EMP $45,517,182 $45,517,182 Total 2012 A Bond $477,288,767 $477,288,767 Total 2008 Bond Disbursement $455,131,801 $455,131,801 2014 A Sales Tax Revenue Bond Activity - $350,000,000 PROGRAM & RECIPIENT Bond Proceeds Disbursements 5.6
2010 A Sales Tax Revenue Bond Activity - $338,960,000
Prior Years This Quarter FY to Date Program to Date.
PROGRAM & RECIPIENT Bond Proceeds Disbursements 5
City of Del Mar $3,518,350 $0 $3,518,350
Prior Years This Quarter FY to Date Program to Date City of San Marcos $1,152,611 $0 $1,152,611
City of San Marcos $15,253,815 $0 $15,253,815
City of Santee $4.938.727 $0 $5,397,979
City of Solana Beach $5,515,065 $0 $5,515,065 Major Corridor Capital Projects $343.906.117 $0 $O $343,906,117 Major Corridor Capital Projects $276,292,690 $276,292,690 Major Corridor Project EMP $52,162,768 $0 $0 $52,162,768 $0 $43,419,140 Total 2014 A Bond Disbursement $405,678,573 $0 $0 $406,137,825 Major Corridor Project EMP $43,419,140
5340,480,710 $340,480,710 2016 A Sales Tax Revenue Bond Activity - $325,000,000 Total 2010 A Bond Disbursement $0
PROGRAM & RECIPIENT Bond Proceeds Disbursements 6
2010 B Sales Tax Revenue Bond Activity - $11,040,000 Prior Years This Quarter FY to Date Program to Date PROGRAM & RECIPIENT Bond Proceeds Disbursements
Bicycle/Pedestrian/Neighborhood Safety $31,224,192 $31,224,192 Prior Years This Quarter FY to Date Program to Date
Major Corridor Capital Projects $322,425,541 $322,425,541 City of National City $3,383,956 SO $3,383,956
City of Santee $8,519,844 $0 $8,519,844 Major Corridor Project EMP $54,042,182 $0 $54,042,182 Total 2010B Bond Disbursement $11,903,800 $0 $0 $11,903,800 Total 2016 A Bond Disbursement $407,691,915 $0 $407,691,915 2020 A Sales Tax Revenue Bond Activity - 74,820,000 2018 A Sales Tax Revenue Bond Activity - $537,480,000 PROGRAM & RECIPIENT Bond Proceeds Disbursements 6 PROGRAM & RECIPIENT Bond Proceeds Disbursements 6 Prior Years This Quarter FY to Date Program to Date Prior Years This Quarter 1 FY to Date Program to Date Bike/Pedestrian $4,346,776 $O $0
$85,222,973 $1,586,740 $89,569,749 Major Corridor Capital Projects S573.453,241 $573,453,241 TOTAL TRANSNET EXTENSION $85,222,973 $573,453,241
$1,586,740 $4,346,776 $89,569,749 $573,453,241
Total 2018 A Bond Disbursement
2021 B Sales Tax Revenue Bond Activity - $116,150,000
PROGRAM & RECIPIENT Bond Proceeds Disbursements 6
Prior Years This Quarter FY to Date Program to Date
Major Corridor Capital Projects $131,143,976 $131,143,976 Total 2021 B Bond Disbursement $131,143,976 $131,143,976
FOOTNOTES:
1. Other income includes interest revenue, transfers from TransNet I, other non-sales tax revenue, and the one-time swap of Major Corridor Sales Tax Revenue (to SI Cities and County) for ARRA funds.
2. Program Disbursements include payments to TransNet recipient agencies and program costs, including payments made for Early Action Projects in prior years, and return of funds.
3. Debt Service includes principal and interest payments, including debt payments beginning in March 2008 upon issuance of the 2008 ABCD Sales Tax Revenue Bonds, and other debt service costs net of interest earnings.
4. 2008 Bond Proceeds have been fully disbursed, net of Reserve Requirement of $17.1 million. The Program to Date total includes interest earnings. The 2008 Bonds were partially defeased with the issuance of the 2012 Bonds on June 14, 2012, thereby reducing the 2008 Bond Proceed Disbursement.
5. 2010, 2012, 2014, 2016,and 2018 Bond Proceeds have been fully disbursed and the Program to Date includes interest earnings.
6. The 2012 Bond total includes a premium of $55.8 million, the 2014 Bond total includes a premium of $55.3 million, the 2016 Bond total includes a premium of $78.8 million, the 2018 Bond includes a
7. On are 3, 202i che Co the ision issue in ses millem in 202148 minds of which $170 million was used to refund the 2014A bonds. The bonds were issued at a premium of 536 milion with $130 million in project funds available to be used on Major Corridor projects. All project funds as of March 31, 2023 have been expended.
15 Attachment 3
TransNet Extension Estimated Annual Sales Tax Revenue
as Compared to Actual Receipts through December 2023
Current Year
Current Year Actuals vs. Annual
Annual Actuals vs. Prior Year Forecast vs.
Estimates' Actuals Estimates Actuals Prior Year
FY 2009 $ 229,741,846 221,991,360 -3.37% -9.07% -6.00%
FY 2010 199,792,224 204,191,748 2.20% -8.02% -10.00%
FY 2011 216,443,252 221,304,014 2.25% 8.38% 6.00%
FY 2012 232,369,215 236,947,113 1.97% 7.07% 5.00%
FY 2013 249,979,204 247,221,162 -1.10% 4.34% 5.50%
FY 2014 262,478,164 260,114,931 -0.90% 5.22% 5.00%
FY 2015 269,965,509 268,840,549 -0.42% 3.35% 4.00%
FY 2016 278,249,968 275,500,023 -0.99% 2.48% 3.50%
FY 2017 287,988,716 284,456,260 -1.23% 3.25% 5.00%
FY 2018 292,132,637 301,455,493 3.19% 5.98% 3.00%
FY 2019 300,896,616 305,349,500 1.48% 1.29% 3.00%
FY 2020 309,923,514 305,851,214 - 1.31% - 2.07% 3.00%
FY 2021 308,165,353 333,998,567 8.38% 9.20% -0.57%
FY 2022 403,847,835 405,921,138 0.51% 21.53% 31.05%
FY 2023 425,804,071 429,735,181 0.92% 5.87% 5.44%
FY2024 429,992,613 215,669,698 -2.01% -1.95% 0.98%
Cumulative $ 4,518,547,950
Cumulative:
FY 2024
Cumulative: FY Actuals vs.
2024 Actuals vs. Same Period
FY 2024 FY 2024 of FY 2023
Estimates FY 2024 Actuals? Estimates Actuals
July 44,505,328 43,691,260 -1.83% -1.77%
August $ 29,012,850 27,925,686 -2.59% -2.53%
September $ 36,875,139 36,672,942 - 1.91% -1.5%
October $ 38,498,028 38,088,738 -1.69%
November $ 34,517,666 33,489,426 -1.93% -1.87%
December $ 36,679,101 35,801,646 -2.01% - 1.95%
January $ 33,833,796
February $ 40,849,680
March $ 34,716,113
April $ 31,458,437
May $ 34,020,342
June $ 35,026,134
$ 429,992,6131 $ 215,669,698
'Latest SANDAG Board of Directors approved estimate.
"Reflects actual year-to-date cash receipts through December 2023. 16 Attachment 4
ITOC Operating Budget Analysis
FY 2024 Approved Budget and Actual Expenses
for the six Months Ending December 31, 2023
and Projected Budgets for FY 2025 and FY 2026
Projected
FY 2024 FY 2025 FY 2026
Revenues Budget Actual Variance Budget Budget'
Annual TransNet Allocation' $ 504,034 $ 130,003 $ (374,031) $ 515,144 $ 528,383 Carryover TransNet Revenue - budgeted
Total Revenues 504,034 130,003 (374031) 515,144 528,383 Expenses
Annual Fiscal Audits? 122,485 42,870 (79,615) 122,485 122,485 Triennial Performance Audit 320,000 115,919 (204,081)
Administration - SANDAG 130,512 35,996 (94,516) 233,178 239,241 Mileage 2,066 (2,066) 2,130 2,185
Interpretation Services 9,600 1,595 (8,005) 9,898 10,155 Advertisement 1,833 (1,833) 1,890 1,939
Postage/Delivery 236 (236) 243 249
Reserve for Outside Consulting Services® 26,057 (26,057) 26,865 27,563 Total Expenses 612,789 196,381 (416,408) 396,689 403,817 Net Difference (108,755) (66,377) 42,377 118,455 124,566 Other Available Funds
Carryover TransNet Revenue - unbudgeted $362,404 $260,829 $386,464 Carryover TransNet Revenue - Budgeted/Actual (108,755) 118,455 124,566 Current Year Interest Earned' $7,180 $7,180 $7,180
End of Year $260,829 $386,464 518,210
Notes:
'Annual budget is $250,000 in $2,000 escalated annually by the most recent Consumer Price Index (CPI). 2 Projected annual fiscal audits for FY 2025 and FY 2026 are based on agreed upon future rates. 3 Salaries, benefits, indirect costs for SANDAG staff supporting the ITOC. 'Mileage and parking reimbursement for ITOC members.
Reserve started at $20,000 in FY 2013 with CP adjustment each subsequent year.
Any expenditures exceeding TransNet revenues will be funded by other unbudgeted available funds. Remaining (unspent)TransNet revenues will carry forward at year-end and be added to Other Available Funds.
Current Year Interest Earned will be added to "Carryover TransNet Revenue - unbudgeted" in future years. * Amounts are unaudited.
9 FY 2025 and FY 2026 budget is adjusted by 3.1% CPI and 2.6% CPI, respectively. 17 Attachment 5
Local Agency Street & Road (LSI)
Maintenance (30% LSI Funding) Analysis
Cumulative SANDAG Activity
As of December 31, 2023
(in thousands)
= A+ B = C + D
LSI: Maintenance
TransNet Funds Other Funds Total Funds Unspent Total Cash Balances Allocated at Allocated at Allocated at Expended at December Balance at Available at December 31, 2023 December 31, 2023? December 31, 2023 31,20233 December 31, 2023 December 31, 202345 City of Carlsbad 13,933 3,206 17,139 15,543 15,543
City of Chula Vista 27,608 1,804 29,412 9,804 9,804
City of Coronado 2,760 323 3,083 (327) 2,756 2,756
City of Del Mar 957 62 1,019 (403) 616 488
City of El Cajon 11,220 919 12,139 5,289 5,290
City of Encinitas 7,780 1,270 9,050 (1,331) 7,719 3,777 City of Escondido 16,750 1,942 18,692 (16,353) 2,339 2,340 City of Imperial Beach 3,272 178 3,450 (3,087) 363 363
City of La Mesa 7,188 1,075 8,263 (4,873) 3,390 3,390
City of Lemon Grove 3,286 208 3,494 (2,948) 546
City of National City 6,541 509 7,050 (5) 7,045 4,894
City of Oceanside 21,166 2,799 23,965 (15,101) 8,864 8,865 City of Poway 6,939 420 7,359 (6,268) 1,091 1,092
City of San Diego 151,884 9,055 160,939 (158,804) 2,135 2,136 City of San Marcos 10,085 1,290 11,375 (4,187) 7,188 7,189 City of Santee 6,634 375 7,009 (5,074) 1,935 1,604
City of Solana Beach 2,018 179 2,197 1,872 1,432
City of Vista 10,705 1,242 11,947 (8,255) 3,692 3,691
San Diego County 70,599 5,845 76,444 (3.971) 72,472 72,473 Totals 381,325 32,701 414,026 (259,366) 154,659 147,673 ' Unaudited.
2 Other Funds (Column B) may include TransNet I funds carried over to the TransNet Extension Program, Interest earnings, and ARRA swap. 3 Expended amounts (Column D) include payments made to local jurisdictions and Program Costs. * Maintenance activity is tracked to ensure no more than 30% of funds will be cumulatively paid to the local jurisdiction and/or used for Program Costs; however actual payment to local 1 As note in bold, amounts i Column are less than Column when the local unist ion rogan ming and spending tore tian 70% LS on Congesion Relief projecis.
Attachment 6
TransNet Grant Program Balances
As of December 31, 2023
(Unaudited)
= C- D
Revenue Received
Non-Grant
Total Revenue (Regional) Awarded Grant Grantee Unspent Grant Received' Revenue Revenue Expenditures Commitment
Active Transportation Grant Program (ATGP - Bike/Ped)3,4 $ 94,524,461 77,838,191 16,686,270 $ 14,101,182 2,585,088 Smart Growth Program (SGIP)5 96,794,602 n/a 59,957,009 47,560,625 12,396,384
Local Environmental Mitigation Program (EMP)6 52,531,117 33,714,456 18,816,661 15,841,745 2,974,917 Senior Mini-Grant Program (SMGP)° 23,656,534 n/a 23,925,366 10 20,705,370 3,219,996 Total Revenue Received is net of program costs.
2 Grantee Expenditures may include estimated accruals for the period ending June 30, 2023. 3 Includes 48 awarded projects from ATGP Cycles 1 through 4 (FY 2009-2019) that were funded by TransNet. TDA funded another 40 projects from those cycles.
*TransNet 2% (Bike/Ped) revenue allocation is used toward regional bike projects in addition to the ATGP Grant Program. 5 Includes awarded SGIP Cycles 1 through 5 (FY 2009-2020).
Local EMP revenues are used toward grant and non-grant projects. Includes awarded EMP Land Management Grants (FY 2006-2019). Land Acquisition Grants from Cycle 1 (FY 2014) are funded from Major Corridor EMP and are therefore not included in this report.
Local EMP non-grant projects and expenditures are funded with sales tax revenue while regional projects may also receive bond proceed funding. 8 All 19 of the 10th Cycle LMG contracts have been executed. 9 Includes awarded SMGP Cycles 1 (FY 2009-2011), 2 (FY 2012-2013), 3 (FY 2014-2015), 4 (FY 2016-2017), 5 (FY 2018-2019), 6 (FY 2020-2021), 7 (FY 2022- 2023), 8 (FY 2024-2025)
10 SMGP Awarded Grant Revenue (Column C) includes TransNet allocations through FY 2024 whereas Column A represents Total Revenues Received through December 31, 2023.
19 Attachment 7
Local Agency Street & Road Balances <60% <75% 5
As of December 31, 2023
(in thousands)
= D + E =(-C-E)/(A+B) = B+D-H = (-C-E+H)/(A+B)
LSI Allocations Cash Balances Held
FY24
Cumulative Estimated Estimated Proposed %
(Actuals) Allocation Programmed Cumulative applied to
Received Balance net Cash Funds BalanceR projects by
Through of D/S Cumulative At Local Balances Actual% spent Available to Available to 6/30/24 Local Agency 12/31/2023 Costs Disbursed* At SANDAG' Agencies' Total (Cumulative) Draw in FY243 Program (Cumulative)® City of Carlsbad 57,188 2,438 (26,996) $30,192 218 30,410 44.9% 23,964 8,666 85.1% City of Chula Vista 98,076 4,656 (71,040) $27,036 (469) 26,567 69.6% 29,947 1,746 98.8% City of Coronado 10,300 401 (6,965) $3,335 3,343 65.0% 3,150 586 94.5% City of Del Mar 3,399 70 (4,915) $488 491 141.6% 461 97 154.9% City of El Cajon 40,492 1,748 (28,772) $11,720 (308) 11,412 68.8% 12,159 1,309 97.6% City of Encinitas 30,209 1,202 (26,432) $3,777 (1,652) 2,125 89.4% 3,703 1,276 101.2% City of Escondido 62,289 2,631 (47,476) $14,813 (556) 14,257 74.0% 15,486 1,959 97.8% City of Imperial Beach 11,504 249 (10,954) $793 (198) 595 94.9% 1,241 (199) 105.4% City of La Mesa? 27,541 1,070 (22,891) $4,546 (292) 4,254 81.0% 2,403 3,213 89.4% City of Lemon Grove 11,648 480 (9,964) $1,684 (80) 1,604 82.8% 1,886 278 98.4% City of National City 23,560 996 (18,317) $4,894 (1,663) 3,231 81.4% 3,809 2,081 96.9% City of Oceanside? 79,859 3,182 (63,512) $16,221 1,830 18,051 74.3% 16,893 2,510 94.6% City of Poway 24,537 1,027 (19,766) $4,771 4,624 77.9% 3,076 2,723 89.9% 536.021 23,420 (510,178) $50,323 7,116 57,439 89.9% 69,191 4,552 102.3% Cly of San Miros 37,936 1,305 (31,848) $14,022 978 15,000 78.7% 12,270 3,057 109.9% City of Santee? 23,394 480 (25,231) $1,604 (1,770) (166) 113.1% 1,946 138 121.2% City of Solana Beach? 7,332 185 (8,406) $1,432 (313) 1,118 116.0% 232 1,385 119.1% City of Vista 39,778 1,666 (32,081) $7,697 7,651 77.5% 8,079 1,284 97.0% County of San Diego? 255,651 10,135 (168,177) $90,723 3,601 94,324 61.9% 45,152 55,706 78.9% Totals $ 1,380,714 $ 57,342 $ (1,133,919) $ 290,072 6,260 296,332 255,049 92,367 " Amounts are unaudited
2 For participants in the SCRTC Dobt Program (bonds or commercial paper), amounts may include interest earned on the unspent proceeds (cash and investment balances) and bond proceeds. * Remaining biennial programmed amounts available for drawing for FY 24, loss negative balances at local agencies. • Column (J) represent the percentage of actual sales tax spent cumulatively compared to actual cumulative sales tax revenue allocated. Allocations may include interest earnings and debt proceeds. 7 May include rounding.
20*
SANDAG
TransNet Independent Taxpayer Oversight Committee Item: 4 February 14, 2024
Quarterly Finance Report and Update on Financial Markets - Through December 31, 2023
Overview Action: Information
Staff provides quarterly briefings on the latest This report provides an update on the latest developments in the financial markets, economy, sales developments in the financial markets, tax revenues, and the strategies being explored and economy, sales tax revenues, and strategies implemented to minimize possible impacts to the being explored and implemented to minimize TransNet Program; and a quarterly report on possible impacts to the TransNet Program. investments as required per Board Policy No. 003.
Key Considerations Fiscal Impact:
• Through December 2023 of FY 2024, sales tax Senior lien debt service coverage remains revenue is 2.01% lower than FY 2023 collections strong at 3.99 times, providing ample through the same month, with TransNet revenue coverage and supporting triple-A ratings. totaling $215.7 million thus far. Schedule/Scope Impact:
Senior lien maximum annual debt service The lasting impact of inflation, higher coverage, using sales tax receipts of borrowing costs, elevated home prices, and $425.4 million for the 12 months ending mounting debt are expected to subdue December 31, 2023, is 3.99 times. Meaning, for consumer spending in the coming year. every $1 of senior lien debt service, SANDAG
received $3.99 of sales tax revenue providing ample coverage, supporting SANDAG senior lien triple- A ratings.
• Based on the significant increase in sales tax revenue over the last four years from $312 million in FY 2019 to $429 million in FY 2023, the most recent TransNet Plan of Finance shows that the Major Corridor Program has the capacity to issue up to $600 million in additional debt for projects, while maintaining its AAA ratings. However, based on sufficient current cash flows and with interest rates at multi-year highs, there are no plans to issue debt this calendar year. • National inflation has increased slightly to 3.4% for the 12-month period ending in December 2023.
Acknowledging a stabilizing inflation trend, the Fed plans to proceed cautiously with a few rate cuts anticipated through 2024.
André Douzdjian, Chief Financial Officer
Attachments: 1. Financial Market Review
2. Local Economy and Sales Tax Revenue
3. Investment and Debt Portfolio
21 Attachment 1
Market Review and Update
Overview
As we start the new year, the consensus in 2024 are slower growth and moderated inflation. The inflation rate was slightly higher than anticipated in December 2023; however, the Federal Reserve acknowledged an overall stabilizing inflation trend as the economy and the labor market remain strong. The Fed anticipates a few rate cuts in 2024 though will proceed cautiously. The annual inflation rate went up to
3.4% in December 2023 from 3.1% in November. The inflation rate rose higher than forecasted 3.2% in relation to slower drop in energy prices.
Interest Rates
• Treasury Rates: There was high volatility in Treasury rates (industry accepted benchmark for taxable bonds) in 2023 as the market reacted to key economic indicators. However, there was a palpable shift in market tone towards the end of 2023 with rates having declined significantly from the peak levels which were highest they had been since 2007. The 2-year treasury note is currently yielding
4.39%. Long-term treasury rates have also been volatile with the 10-year treasury currently yielding
4.12% and the 30-year treasury bond yielding 4.33%.
• Municipal Market Rates: Tax exempt municipal bond rates, as represented by the AAA BVAL rates (benchmark for tax-exempt rates produced by Bloomberg) also backed off from the peak levels in October with significant gains in November and December of 2023. The 30-year rate, currently at
3.57%, is a whole 1.0% lower compared to October 2023.
• Fed Funds Rate: The Fed last raised rates to 5.25% - 5.50% range at the July 2023 meeting and has held the rates steady since then. Overall, the Fed made 11 rate hikes from March 2022 to July 2023.
The Fed has signaled several rate cuts in 2024 as economic growth cools and inflation pressure slows down. At their last meeting in December the Fed acknowledged that economic growth has slowed compared to the first part of 2023. Job gains have slowed but remain strong and the unemployment rate has remained low.
Municipal Market Supply-Demand Dynamics: Bond funds experienced more outflows than inflows in 2023. However, that was balanced by lower issuance volume in 2023.
Equity Markets: Domestic equity markets experienced their fair share of volatility in 2023 but ended the year on a very strong note. S&P 500 gained nearly 25% in 2023 and hit at an all-time high of 4,839 most recently in January 2024.
U.S. Economy
• Jobs and Unemployment: The Initial Jobless Claims were at 187,000 for the week ending January 18, which was well below market expectations of 207,000 underscoring the tightness of the labor market and providing the Fed with justification to prolong its hawkish stance for the next quarter. The unemployment rate was at 3.7% in December 2023, unchanged from the previous month. • GDP: GDP increased at an annualized rate of 4.9% in the third quarter of 2023, after the 2.1% in the second quarter. It marks the strongest growth since fourth quarter of 2021. • Personal Spending: As the economy's key driver, personal spending in December 2023 increased by
0.2% from November, slightly weaker than the forecasted 0.3%. 22 • Manufacturing and Service Data: The S&P Global U.S. Composite Purchasing Managers Index (PMI) declined in 2023 but stayed above 50 with the latest read for December 2023 coming in at 50.9. A reading above 50 indicates expansion in business activity and vice versa. The composite PMI has been strengthened mostly by the services sector with manufacturing PMI at or below 50 for the past 12 months indicative of contraction in manufacturing.
• Consumer Sentiment: The University of Michigan's consumer sentiment rose to 78.8 which is the highest it's been since July 2021. The consumer sentiment was at 71.6 in July 2023 and had been weakening since then.
Long-Term Tax-Exempt and Taxable Interest Rates
The Bloomberg Valuation Service's (BVAL) AAA yield curve (i.e., the "BVAL AAA" which is a widely accepted benchmark for tax-exempt municipal bond rates) dropped significantly in the last two months of 2023 after clear signals from the Fed that the rate hike cycle which began in 2022 was concluded supported by improvement in inflation data among other economic indicators. The two charts below show current AAA BVAL yield curve and the current US Treasury yield curve (benchmark of taxable municipal bond rates) in comparison to highest and lowest they been in 2023. As seen in the chart, the BVAL AAA yield curve is 0.85% to 1.13% lower across the curve compared to its October 2023 peak. U.S. Treasury curve as well as the U.S. Treasury curve continue to reflect significant "inversion" wherein short-term rates are higher than intermediate-to-long-term rates.
The current 30-year BVAL AAA bond yield is 3.57% which is 58 bps lower than its long-term average.
AAA MMD Yield Curve Movement US Treasury Yield Curve Movement
6.0% 6.0%
5.0% 5.0%
4.0% 4.0%
3.0% 3.0% Jan 19, 2024
(Current)
2.0% 2.0%
Jan 19, 2024
(Current)
1.0% 1.0%
0.0% 0.0%
• • m = = Apr-2023 (2023 High) - - Oct-2023 (2023 Low) • Jan-2023 (2023 Low) - - Oct-2023 (2023 High) Benchmark Tax-Exempt Rate History Benchmark Tax-Exempt Rate History (January 1, 1993 to January 19, 2024)* (January 1, 2019 to January 19, 2024) — 30-Year AAA BVAL --- -- Average* 30-Year AAA BVAL
8.0% 5.0%
7.0% 4.5%
4.0%
8.0%
3.5%
5.0% 3.0%
4.0% 2.5%
3.0% 2.0%
1.5%
2.0%
1.0%
1.0% 0.5%
0.0% 0.0%
Jan-95 lan-13 lon-15 lan-17 Jan-19 0ct-19 ฿**********
*The 1993-2010 data represents the AAA Municipal Market Data (MMD) data which is also a widely accepted tax- exempt benchmark rate. The 2011-2024 data represents the AAA BVAL rates. 23 Municipal Market Supply and Demand Issuance Volume
Tax-exempt issuance in 2023 was $325.8 •2022 #2023
$40
billion, 3.4% % higher than 2022. The
$35
combined taxable and tax-exempt issuance
$30
volume of $380 billion in 2023 was 2.8%
$25
lower than 2022. Through September 2023 $20
the total issuance volume was lagging $15
significantly compared to the prior year, $10
$5
however the rally in rates in late 2023
$0
provided a healthy boost helping close the Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec year stronger than anticipated.
Mutual funds are one of the largest investors in municipal bonds and the net inflow or net outflow from mutual funds is indicative of demand for municipal bonds. There were outflows from municipal bond funds for a majority of 2022 and 2023 indicating weak limited investor appetite for municipal bonds owing to a very volatile and relatively high interest rate environment. There are modest inflows for the first couple weeks in January 2024. While that is limited data to assess investor appetite, 2024 is anticipated to be more favorable relative to prior years.
Monthly Municipal Bond Fund Flows
$20
Dillons
-$10
-$20
-$30
-$40
-550
Jan16 Apr16 Jul16 Octt6 Jan17 Apr17 Jul17 Oct17 Jants Apr18 Jult8 Oot18 Jan19 Apr19 Jul18 Octle Jul21 O0t21 Oct-23 Est.Jan-24 • Outflow
Credit Spreads
Mirroring the movements in rates, credit spreads have also been volatile for the last couple years.
Spreads that had widened significantly in 2022 generally improved over the course of 2023. That in conjunction with record low issuance volume for 2023 has helped offset weak demand and bond deals are still getting done in the market.
Interest Rate Forecasts
The Fed kept the target rate unchanged at the December meeting. The Fed dot-plot released after that meeting indicates the expectation of three rate cuts in 2024 sending a clear signal to the market that it has concluded its two-year rate tightening cycle to control inflation.
The next table provides an average of interest rate forecasts by industry professionals. These are surveyed and compiled by Bloomberg. The market expects several rate cuts in 2024 and 2025. The two- year U.S. Treasury rate is forecasted to decline by 0.32% to 3.68% by end of 2024. The ten-year U.S.
Treasury rate is forecasted to decline by 0.46% to 3.62% by end of 2024. The 30-year U.S. Treasury rate is also forecast to decline by 0.24% to 4.05% by the end the year. 24 Street's Interest Rate Forecast
Forecast 1/22/24 Q1 24 Q2 24 Q3 24 Q4 24 Q125 Q2 25 Q3 25 Q4 25 Q126 30-Year UST 4.29% 4.25% 4.15% 4.05% 4.05% 3.92% 3.89% 3.87% 3.89% 3.83% 10-Year UST 4.08% | 4.06% 3.89% 3.73% 3.62% 3.50% 3.44% 3.44% 3.42% 3.31% 2-Year UST 4.00% 4.39% 4.12% 3.86% 3.68% 3.49% 3.36% 3.28% 3.21% 3.11%
4.37% 5.28% 4.99% 4.60% 4.27% 3.97% 3.70% 3.48% 3.28% 3.18% ederal Funds Targe 5.50% 5.45% 5.15% 4.70% 4.30% 3.90% 3.60% 3.40% 3.25% 3.10% ate Upper Boun
Federal Funds Target 5.25% 5.22% 4.07%
Rate Lower Bound 4.90% 4.46% 3.64% 3.36% 3.17% 3.00% 2.87% 25 Attachment 2
SANDAG
Local Economy and Sales Tax Revenues
In the second quarter of FY2024, San Diego's regional economy displayed resilience amid a third year of elevated inflation and high interest rates. Tourism is returning to 2019 levels, and overall employment has remained healthy. At the same time, the region's households have faced headwinds from rising costs of living, only modest wage growth, and slight moderation in real estate markets.
Tourism continues its post-pandemic recovery, capitalizing on solid demand and shifts in consumer spending from goods to experiences and the tail end of the "revenge travel" phenomenon of people making up for not traveling because of the 2020 pandemic. In 2022, the region had 28.8 million visitors who spent $13.6 billion. From January through October 2023, visits and visitor spending outpaced 2022 counts during that same 10-month period by 10.9% and 4.4%, respectively.
The region's diversified employment base has also been an anchor for the region's economy. More than
1.61 million San Diegans were in the civilian labor force as of November 2023, up 1,800 workers from the prior year. Total nonfarm, wage/salary jobs were 1.59 million in November 2023, up 21,900 from the preceding year. The largest net gains came in private Healthcare and Social Assistance (10,700 jobs) and Tourism (9,900), while Administrative and Support and Waste Management and Remediation Services (-7,000) had the largest job loss. The region's unemployment rate remained relatively low at
4.2% in November 2023. The unemployment rate for California was 4.9%, and the national unemployment rate was 3.5%.
While labor market conditions remain strong, pressure on the San Diego economy comes from its cost of living continuing to rise. San Diego's household area median income (AMI) rose to $116,800 at the start of FY2024, but wage growth has not kept pace with inflation. Housing costs and elevated prices for household necessities have been cutting into discretionary spending and savings, making San Diego among the nation's top 5 most expensive places to live. In November 2023, San Diego inflation rose to
5.2% (after falling to 4.3% in July) and continued to track above the national level (3.1%). Necessities, such as groceries (2.6%), shelter (8.7%), electricity (16.2%), and medical care (5.2%), were the main contributors to November's rise. With three years of inflationary pressure, credit card debt and delinquencies are rising.
Both commercial and residential real estate have struggled amid economic uncertainty and higher borrowing costs for business expansion and homebuying on the heels of the Fed's rate-hike cycle that began in March 2022. Given the tighter lending standards, high cost of capital, lower business investment, and prevailing telework trends, the San Diego commercial real estate struggled with decreased demand for office space. Compared to the pre-pandemic period, leasing volume has plummeted almost 20% (Q3 2023), while availability has risen by 7 million square feet to 20.4 million square feet. While the region faced a 10.8% vacancy in late 2023, Downtown San Diego remained the hardest hit. The vacancy rate for Class A properties in the Downtown San Diego market is forecasted to reach an unprecedented 39% in 2024. This vacancy rate is caused by dwindling demand and 2.7 million square feet of new-and still uncommitted-office space expected to be delivered in the next 18 months.
In contrast, the residential real estate market remained especially tight and arguably frozen because of limited supply, near-record home prices, and elevated mortgage rates. In late December, mortgage rates fell to 6.61%. Falling rates are attracting more buyers, but only some would-be sellers have put their homes on the market. In November 2023, year-over-year home sales were down 14.5% to 1,549. The median-priced home was $870,000, and affordability limited to just 16% of San Diego households based on a $5,550 monthly payment on a median-priced home at a 6.82% rate for a 30-year fixed mortgage (December 2023). The region also has the nation's third-most expensive rental market, with rents up an average of 18% to $2,830 in the past year.
Local Economy and Sales Tax Revenue | SANDAG Economic Analysis (Jan 2024) 26 While recession fears appear to be fading, the lasting impact of inflation, higher borrowing costs, elevated home prices, and mounting debt are expected to subdue consumer spending in the coming year.
Sales Tax Revenues
TransNet and TDA revenue gains in FY2023 were very strong. However, expectations for FY2024 are significantly more modest. Consumer spending slowed in the first half of FY2024; through Q2, TransNet totaled $215,669,698, down 2.0% (compared to collections through Q2 of FY2023). TDA was 0.6% lower compared to the same period last fiscal year. While the entirety of the holiday spending surge has yet to be captured in collections, we expect the trend to reverse and FY2024 revenues to close out the year on par with FY2023.
Looking at FY2025, the updated forecast reflects that a shallow economic downturn will be avoided and that inflation will ease. At the same time, consumer spending is expected to cool. SANDAG economists are tracking data that points to some financial stress for consumers. After two years of wage growth that has not kept pace with inflation, households have faced higher costs of living and mounting debt. A key factor influencing the forecast update is how, if at all, San Diegans will respond to easing inflation and possible interest rate cuts in FY2025. SANDAG economists conservatively forecast that financially stressed households will divert some disposable income from spending to pay down debt or bolster depleted savings rather than increase spending. The short-term forecast includes a gradual return to "normal" growth by FY2028 (matching its pre-pandemic historical average). FY2025 is estimated to grow 1%. FY2026 growth is projected at 1.2%, FY2027 at 1.3%, and FY2028 at 2.9%.
The following tables provide a breakdown of sales tax collected. Table 1 provides a comparison by month for the past two fiscal years, and Table 2 reports annual revenue beginning in FY2009 (the first year of the TransNet Extension Ordinance):
Table 1: TransNet Revenue by Month Table 2: TransNet Revenue by Year Month FY2023 FY2024 Year Annual Revenue
July $44,478,683 $43,691,260 FY2009 $221,991,360
August $28,995,480 $27,925,686 FY2010 $204,191,748
September $36,853,062 $36,672,942 FY2011 $221,304,014
October $38,474,980 $38,088,738 FY2012 $236,947,113
November $34,497,001 $33,489,426 FY2013 $247,221,162
December $36,657,141 $35,801,646 FY2014 $260,114,931
January $33,813,540 FY2015 $268,840,549
February $40,825,224 FY2016 $275,500,023
March $34,695,328 FY2017 $284,456,260
April $31,439,603 FY2018 $301,455,493
May $33,999,974 FY2019 $305,349,500
June $35,005,164 FY2020 $305,851,214
TOTAL $429,735,181 $215,669,698 FY 2021 $333,998,567
FY2022 $405,921,138
FY2023 $429,735,181
FY2024* $215,669,698
* FY2024 includes values through only the first six months. TOTAL $4,518,547,950 Attachment 3
AGENCY DEBT PORTFOLIO OVERVIEW
Commission Outstanding Debt Overview
SANDAG, serving as the San Diego County Regional Transportation Commission, has $2.26 billion of outstanding long-term debt. A summary of the outstanding bonds is tabulated and graphically presented below.
Summary of Outstanding Debt
Coupor Original Issue Final
Series Lien Tax Status Outstanding Call Option Maturity Type Size
2010A Senior Taxable Fixed Rate $338,960,000 338,960,000 Make-Whole 4/1/2048 2014A Senior Tax-Exempt Fixed Rate $350,000,000 6,460,000 4/1/2024 4/1/2024 2016A Senior Tax-Exempt Fixed Rate $325,000,000 291,265,000 4/1/2026 4/1/2048 2019A Senior Taxable Fixed Rate $442,620,000 314,062,000 4/1/2030 4/1/2048 2020A Senior Tax-Exempt Fixed Rate $74,820,000 69,955,000 4/1/2030 4/1/2048 2021A Senior Taxable Fixed Rate $149,840,000 149,840,000 4/1/2031 4/1/2048 2023A Senior Tax-Exempt Fixed Rate $433,355,000 $433,355,000 4/1/2033 4/1/2042 2021B Subordinate Tax-Exempt Fixed Rate $116,150,000 116,150,000 4/1/2031 4/1/2039 Junior Sub. Taxable Fixed Rate $537,484,439 537,484,439 Anytime 10/1/2045 Total $2,257,531,439
The debt portfolio is comprised of 100% fixed-rate debt. As a result of the 2023 refunding, SANDAG has no long-term variable rate bonds and no interest rate swaps outstanding. Of the total debt portfolio, 59% consists of taxable debt, including the TIFIA loan and the remaining is tax-exempt bonds.
Outstanding Par Breakdown by Tax Status
Tax-Exempt
$917.2MM
Taxable
41%
$1,340.3MM
59%
Debt Service and Coverage
SANDAG has debt obligations on three separate lien levels, providing different priority of sales tax payment to investors based on their respective lien level. Senior lien obligations are paid first, followed by subordinate lien obligations and then junior subordinate lien obligations (i.e., TIFIA loan). The TIFIA loan is repayable from a third lien that is subordinate to the senior lien bonds, the 2021B Bonds, the commercial paper notes, and SANDAG's revolving credit facility. This three-tiered lien structure has been 28 developed by SANDAG to maximize program capacity, keep senior lien ratings as high as possible, and minimize borrowing costs. Excluding the TIFIA loan, SANDAG has a level debt service profile with senior lien annual debt service ranging from $98.4 million to $106.7 million per year through FY 2048. The aggregate senior and subordinate lien debt service ranges from $104.2 million to $114.0 million. With the TIFIA loan, SANDAG's aggregate debt service is ascending with peak debt service of $161.2 million in FY 2045.
Aggregate Debt Service Schedule
• Series 2008A-D • Series 2010A • Series 2014A •Series 2016A • Series 2019A Series 2020A • Series 2021A • Series 2023A = Series 2021B • TIFIA Loan $180
Millions $160
$140
$120
$100
$80
$60
$40
$20
SO
Senior lien debt service coverage, using sales tax receipts of $425.5 million for the 12 months ending December 31, 2023, is 3.99 times. Meaning, for every $1 of senior lien debt service, SANDAG received $3.99 of sales tax revenue providing ample coverage, supporting SANDAG senior lien triple-A ratings.
Total coverage, when comparing the annual revenues for the 12 months ending December 31, 2023, to peak debt service in FY 2045, is 2.43 times.
Major Corridors Coverage
In accordance with the TransNet Ordinance, the Major Corridors subprogram receives 38% of TransNet revenues after allocations for administrative and ITOC expenses. Major Corridors is the most capital- intensive program, funding various projects, including the Mid-Coast Corridor Transit Project. Costs associated with these projects can and have been funded with tax-exempt bonds. SANDAG Board Policy No. 036: San Diego County Regional Transportation Commission Debt Policy, dictates that the Major Corridors subprogram (and other TransNet subprograms) maintain an annual debt service coverage ratio of at least 1 times, meaning that for every $1 of TransNet revenue, there is no more than $1 of debt service allocated to the subprogram in any given year. Board Policy No. 036, Section 2.3, states as follows:
2.3 Borrowing requirements are determined for each eligible sub-program and debt service is allocated to each sub-program based upon its pro rata share of bond proceeds. It is the general principal for the TransNet Plan of Finance that the annual debt service for each sub-program be less than the annual sales tax revenue allocated to a sub-program on an annual basis. This 1.0 times program debt service coverage requirement ensures that no single sub-program incurs more debt than it can afford.
29 For planning purposes, debt service has been structured using a forecast of sales tax receipts. Based on this forecast, coverage in the Major Corridors Program is estimated at 1.84 times in FY 2024. Based on that revenue forecast, annual coverage is projected to dip to 1.46 times when the TIFIA loan payments start in FY 2026. The TIFIA debt service structure in the Major Corridors Program increases over time, in anticipation of increase in sales tax revenue.
Major Corridor Debt Service Coverage
$350
Millions $300
$250
$200
$150
$100
$50
2041
I Total Senior Lien Total Sub. Lien TIFLA Loan - - Major Corridors Revenues Cost of Capital
SANDAG has a very attractive weighted average SANDAG's WACC Calculations cost of capital (WACC) of 2.90%. Series Original Par All-in TIC The 2010A bonds were issued as taxable Build 2010A $338,960,000 3.8871% America Bonds and have a borrowing cost of 3.89%. 2014A $24,055,000 3.8507% The 2014A, 2016A, and 2020A bonds were issued 2016A $325,000,000 3.2947% at an all-in cost of 3.85%, 3.29%, and 2.62% 2019A $442,620,000 3.1890% respectively. The 2019A refunding bonds that 2020A $74,820,000 2.6226% refunded a part of 2012A and 2014A bonds were $149,840,000 2.2136% 2021A
issued at an all-in cost of 3.19%. The taxable 2021A
2023A $433,355,000 3.2264%
bonds refunded a portion of the remaining 2014A
2021B $116,150,000 2.7146%
bonds were issued at an all-in cost of 2.21%. The
TIFIA $537,484,439 1.7500%
tax-exempt 2021B bonds raised new money funding
as well as refunded a portion of the 2014A bonds Total Weighted Avg. 2.8967% and issued at an all-in cost of 2.71%. The 2023A bonds were issued to refund all of the variable-rate 2008 bonds as well as a portion of the 2019A bonds and issued at an all-in cost of 3.23%. The TIFIA loan has a borrowing cost of 1.75%. Taken together, SANDAG has issued over $2.0 billion in long-term debt to accelerate project delivery and for refunding, for a WACC of 2.90%. 30 Credit Ratings
SANDAG's debt secured by TransNet sales tax
revenues is rated by Standard and Poor's (S&P) and SANDAG Ratings (TransNet) Fitch as shown here. The ratings were most recently Lien S&P Fitch reviewed in June 2023 in conjunction with the Series Senior Lien AAA/Stable AAA/Stable 2023A sales tax bond issuance. As part of the review
S&P affirmed all the ratings. Fitch also affirmed the Subordinate Lien Bonds AA/Stable AAt/Stable senior lien and TIFIA loan rating and upgraded the Third Lien TIFIA Loan A+/Stable At/Stable subordinate lien rating by one notch to 'AAt' owing to
the strength of the pledged revenues and improvement in subordinate line debt service coverage ratio.
Commercial Paper and Revolving Credit Facility
In addition to the long-term debt, SANDAG has a short-term Commercial Paper Program supported by a Letter of Credit (LOC) from Bank of America Merrill Lynch. The Commercial Paper Program was authorized at $100 million and has a current outstanding balance of $38.1 million as of December 31, 2023, when it was remarketed out 152 days, at a rate of 3.44%. The supporting LOC is in place through August 2024 at an annual cost of 0.30%.
In March 2022, SANDAG established a Revolving Credit Agreement with U.S. Bank National Association in the amount not-to-exceed $100 million. This drawdown facility provides SANDAG with additional flexibility to manage short-term cash flow needs when capital expenses are incurred prior to the receipt of federal and state grant funds. The facility has a term of 3.5 years, a commitment fee of 0.20%, and a variable interest rate of SIFMA plus 0.34% on any outstanding balance. Currently there is a nominal balance of $1 million outstanding on the Revolving Credit Agreement.
SANDAG Outstanding Debt Overview
SANDAG has debt outstanding in conjunction with the South Bay Expressway toll road as summarized in the table below. SANDAG had Capital Grant Receipts Revenue Bonds outstanding in conjunction with the Mid-Coast Corridor Transit Project, that were refunded and defeased in full in October 2023; as described in more detail below.
South Bay Expressway
The SANDAG debt portfolio for South Bay Expressway (SBX) is comprised of a single bond series. In November 2017, SANDAG issued Toll Revenue First Senior Lien Bonds, 2017 Series A to refinance indebtedness incurred with the acquisition of SBX. The bonds are secured from the toll revenues generated on SBX, net of operating expenses. As of July 1, 2023, the debt outstanding is $167.2 million.
Summary of Outstanding Debt
Series Tax Status Coupon Type Original Par Outstanding Par Call Date Final Maturity Tax-
2017A Fixed-Rate $194,140,000 $167,180,000 7/1/2027 7/1/2042 Exempt
An annual debt service chart is provided presented below. The annual payment on the bonds is level at about $13.8 million through final maturity in FY 2043. Based on unaudited annual net toll revenues of $28.5 million for FY 2023, the coverage on future maximum annual debt service payment was 2.07 times.
This demonstrates a strong recovery in traffic and revenue, compared to recent years and satisfies the rate covenant of 1.50 times in the bond documents.
31 S&P and Fitch maintain credit ratings on the toll-revenue bonds. S&P last affirmed their rating of 'A' in January 2023. Fitch most recently affirmed their rating of 'A' in May 2023.
Debt Service Profile
16 Millions 14
12 10
6 4
2 ¿ кої
• Series 2017A
Mid-Coast Corridor Transit Project
SANDAG issued $335 million Capital Grant Receipts Revenue Bonds, Series 2019A and Series 2019B in August 2019 for the Mid-Coast Project secured solely by future grants under the Full Funding Grant Agreement (FFGA) with the Federal Transit Administration (FTA) signed in 2016.
The accelerated receipt of federal grant funds allowed SANDAG to refund and defease all of the outstanding bonds. With the early redemption and the legal defeasance, these bonds no longer represent an obligation of SANDAG.
Looking Ahead
SANDAG expects to deliver a majority of upcoming project needs on a pay-go basis. That said, SANDAG is currently evaluating increased borrowing capacity driven by strong TransNet sales tax revenue receipts over the past two years. Staff will evaluate borrowing capacity in the context of project delivery needs and determine any recommendation for future bond issuance that may be presented to the Board for consideration. Additionally, staff is in the process of replacing Citi as the commercial paper (CP) dealer on SANDAG's CP program. The CP dealer is responsible for marketing SANDAG's outstanding CP to new investors on a periodic basis. Citi announced their exit from the US municipal bond business in 2023, driving the need to replace them and procure a new CP dealer for SANDAG's CP program.
Quarterly Investment Data
Included with this quarterly finance report through December 31, 2023, are a Detail of Portfolio Balances (by Account); and a Detail of Portfolio Balances (by Investment Type) for all money under the direction or care of SANDAG, including funds of the Commission, SourcePoint, and the Automated Regional Justice Information System (ARJIS).
As of December 31, 2023, a total of $1.01 billion was held by SANDAG in a number of investment accounts, in comparison to $908.5 million held in the previous quarter. The $98.0 million increase during the quarter is primarily due to operating activity within the investment and operating accounts.' 1 Due to rounding, the numbers below may not tie to the attached detail of investments. 32 The chart below provides a summary of the holdings by Agency.
Investment Holdings By Agency
SDCRTC (COMMISSION) FUNDS/
76.47% $769,843,384
CORONADO BRIDGE TOLL FUNDS
0.03% $305,846
SOURCEPOINT FUNDS/
0.02% $203,978
ARJIS FUNDS
1.14%] $11,517,571
SANDAG SR125 FUNDS
12,480 $125,617,813
SANDAG OTHER FUNDS
9.86%L $99,235,747
Approximately $35.2 million was held in nine U.S. Bank, N.A. accounts at the end of the quarter, which are used for operating purposes. Approximately $974.8 billion was invested in eight institutions. $688,430 $31,999,602 L $14,629,371
0.07% Investment Holdings By Institution
3.18% $590,376 1.45%
$12,352,590 0.06% Ş35,169,340 (Market Value)
1.23% 3.49%
$100,528 $1,725,798
0.17%
DUS BANK, N.A.
0.01% - $63,206,938
• LAIF
6.28%
• CAMP IP
• CAMP CASH RESERVE
$233,215,466
• US BANK
23.17%
DUS BANK IP
• US BANK CASH RESERVE
• COSD TREASURER'S POOL
• CALIFORNIA BANK AND TRUST
• JP MORGAN
• PACIFIC WESTERN BANK
• PRINCIPAL CUSTODY SOLUTIONS
$70,773,226 . $542,272,674|
7.03% 53.87%
The Finance Department has continued to implement the Board of Directors investment objectives of safety, liquidity, and return on investment for the SANDAG investment portfolio. These will continue to be important investment objectives for the future.
Certifications
The Chief Financial Officer reports that this investment portfolio, together with the authorized short-term Commercial Paper Program, will provide the necessary liquidity to meet the expenditure requirements of SANDAG, the Commission, ARJIS, and SourcePoint for the next six months. This portfolio is in compliance with state law and Board Policy No. 003: Investment Policy. 33 SANDAG
Summary of Portfolio Balances (by Institution)
as of December 31, 2023
Wid Avg.
Book Percent of Unrealized Yield on Days to
Value Portfolio Value Price Gain/(Loss) Cost Maturity
US BANK, N.A. 35,169,339.51 3.49% 35,169,339.51 100.00% N/A STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND 1,725,797.81 0.17% 1,725,797.81 100.00% 3.96% CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP) INDIVIDUAL PORTFOLIO 61,106,058.99 6.07% 63,206,938.46 103.44% 2,100,879.47 4.22% 310 CAMP CASH RESERVE PORTFOLIO 542,272,673.81 53.86% 542,272,673.81 100.00% 5.56% US BANK TRUST 70,830,189.76 7.03% 70,773,226.23 99.92% (56,963.53) 4.57% US BANK INDIVIDUAL PORTFOLIO 236,133,451.92 23.45% 233,215,466.04 98.76% (2,917,985.88) 2.82% 780 US BANK CASH RESERVE PORTFOLIO 100,527.61 0.01% 100,527.61 100.00% 0.00% SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND 12,352,589.65 1.23% 12,352,589.65 100.00% 3.99% 383 JP MORGAN 33,993,718.10 3.18% 31,999,601.95 100.02% 5,883.85 5.45% CALIFORNIA BANK AND TRUST 688,430.58 0.07% 688,430.58 100.00% N/A - PACIFIC WESTERN BANK 590,376.06 0.06% 590,376.06 100.00% N/A PRINCIPAL CUSTODY SOLUTIONS 13.915,316.84 14629.370.88 105.13% 714,054.04 TOTAL S 1,006,878,470.64 100.00% S 1.006.724.338.59 (154,132.05) 235 Summary of Portfolio Balances (by Agency)
Wid Avg.
Book Percent of Market Market Unrealized Yield on Days to Agency Value Portfolio Value Price Gain/(Loss) Cost Maturity SANDAG FUNDS 224,196,469.43 22.27% 224,853,559.94 100.29% 657,090.51 5.14% 48 AUTOMATED REGIONAL JUSTICE INFORMATION SYSTEM FUNDS 11,517,571.15 1.14% 11,517,571.15 100.00% 5.56% 41 SOURCEPOINT FUNDS 203,977.89 0.02% 203,977.89 100.00% 3.99% 357 CORONADO BRIDGE TOLL FUNDS 305,846.10 0.03% 305,846.10 100.00% 5.56% 48 SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION FUNDS 770.654,606.07 76.54% 769.843.383.51 _99.89% (811,222.56) 4.53% 293 TOTAL S 1,006,878,470.64 100.00%S 1.006.724,338.59 99.98% (154,132.05) 4.66% 235 Note: In addition to the funds held above, there is S5,210 pelly cash held at SANDAG. 34 SANDAG
Detail of Portfolio Balances (by Account)
as of December 31, 2023
Wtd Avg.
Book Percent of Market Market Unrealized Yield on Days to Institution/ Account Value Portfolio Value Price Gain/(Loss) Cost Maturity US BANK, N.A.:
Checking - (ARJIS) 1,659,139.53 0.16% 1,659,139.53 100.00% N/A Checking - (RTC) TransNet Sales Tax 6,636.065.42 0.66% 6,636,065.42 100.00% N/A Checking - (SANDAG) Flexible Spending Acet (FSA) 53,360.26 0.01% 53,360.26 100.00% N/A Checking - (SANDAG) General 9,853,531.95 0.98% 9,853,531.95 100.00% Checking - (SANDAG) Interstate 15(1-15) FasTrak® 6,606,600.13 0.66% 6,606,600.13 100.00% Checking - (SANDAG) Refund Account Common 353,460.61 0.04% 353,460.61 100.00% N/A Checking - (SANDAG) Revenue Account Common 868,305.91 0.09% 868,305.91 100.00% N/A Checking - (SANDAG) SAFE Program Account 1,805,424.64 0.18% 1,805,424.64 100.00% Checking - (SANDAG) State Route 125 (SR-125) Collection Account 2,324,123.99 0.23% 2,324,123.99 100.00% Checking - (SANDAG) State Route 125 (SR-125) Payment Account 4,995,541.43 0.50% 4,995,541.43 100.00% Checking - (SourcePoint) 13,785.64 0.00% 13,785.64 100.00% TOTAL US BANK, N.A. 35,169,339.51 3.49% 35,169.339.51 100.00% STATE OF CA LOCAL AGENCY INVESTMENT FUND (LAIF):
(RTC) TransNet 1,610,464.23 0.16% 1.610,464.23 100.00%
(SANDAG) 3.96% 230
1155333.58 0.01% 115,333.58 100.00% 3.96% 230
TOTAL LAIF 1,725,797.81 0.17% 1.725,797.81 100.00%
3.96% 230
CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP):
INDIVIDUAL PORTFOLIO:
(RTC) TransNet Program Reserve 28,308,718.36 2.81% 29,029,292.17 102.55% 720,573.81 4.21% 407 (RTC) TransNot Sales Tax 32,797,340.63 3.26% 34.177,646.29 104.21% 1,380,305.66 4.22% 228
TOTAL INDIVIDUAL PORTFOLIO 61,106.058.99 6.07% 63.206.938.46 103.44% 2,100,879.47 4.22% 310
CASH RESERVE PORTFOLIO:
(ARJIS) 9,852,495.36 0.98% 9,852,495.36 100.00%
(RTC) 2008 Cap Proj DSRF Release 5.56%
18,383,568.83 1.83% 18,383,568.83 100.00% 5.56% 48
(RTC) 2008 Sales Tax Account - TransNet Extension 318,094,900.09 31.59% 318,094,900.09 100.00% (RTC) 2010 Bond Series A - Interest 5.56% 48
5,038,238.33 0.50% 5,038,238.33 100.00% 5.56%
(RTC) 2014 Bond Series A Interest 1,742,951.42 0.17% 1,742,951.42 100.00%
5.56%
(RTC) 2014 Bond Series A Principal 4,899,434.25 0.49% 4,899,434.25 100.00% 5.56% (RTC) 2016 Bond Series A Interest 3,662,350.31 0.36% 3,662,350.31 100.00% 5.56% (RTC) 2016 Bond Series A Principal 4,630,191.64 0.46% 4,630,191.64 100.00% 5.56% (RTC) 2020 Bond Series A Interest 832,578.11 0.08% 832,578.11 100.00% 5.56% (RTC) 2020 Bond Series A Principal 1,353,740.99 0.13% 1,353,740.99 100.00% 5.56% (RTC) Sage Hill Endowment 940,670.73 0.09% 940,670.73 100.00% 5.56% (RTC) TransNet Program Reserve 30,553,917.36 3.03% 30,553,917.36 100.00% 5.56% (RTC) Wetland Mitigation TransNet Sales Tax 333,780.45 0.03% 333,780.45 100.00% 5.56% (SANDAG) 2019 Series AB Cap-1 Fund 108,570.79 0.01% 108,570.79 100.00% 5.56% (SANDAG) 2019 Series AB DSR Fund 13,431,074.61 1.33% 13,431,074.61 100.00% 5.56% (SANDAG) California Coastal Commission 343,540.67 0.03% 343,540.67 100.00% 5.56% (SANDAG) Coronado Bridge Toll Funds 305,846.10 0.03% 305,846.10 100.00% 5.56% 35 Wtd Avg.
Book Percent of Market Market Unrealized Yield on Days to Institution / Account Value Portfolio Value Price Gain/(Loss) Cost Maturity (SANDAG) El Portal Project 473,633.89 0.05% 473,633.89 100.00% 5.56% 48 (SANDAG) I-15 FasTrak® 8,848,080.22 0.88% 8,848,080.22 100.00% 5.56% 48 (SANDAG) SR 125 2,118,276.55 0.21% 2,118,276.55 100.00% 48 (SANDAG) SR 125 36,818,465.17 3.66% 36,818,465.17 100.00% 48 (SANDAG) SR 125 33,809,228.46 3.36% 33,809,228.46 100.00% 48 (SANDAG) SR 125 2017 A Bond Interest 4,317,768.24 0.43% 4,317,768.24 100.00% 48 (SANDAG) SR125 2017 A Bond Principal 2,825,342.35 0.28% 2,825,342.35 100.00% 48 (SANDAG) SR125 2017 A Debt Reserve Fund 20,180,295.01 2.00% 20,180,295.01 100.00% (SANDAG) SR125 2017A Bond Fastrak Customer Prepaid Fund 2,369,251.73 0.24% 2,369,251.73 100.00% (SANDAG) SR125 2017A Bond Reserve Account 14,040,403.81 1.39% 14,040,403.81 100.00% (SANDAG) SR125 2017A Bond Toll Revenue Fund 1,779,223.04 0.18% 1,779,223.04 100.00% 48 (SANDAG) Shoreline Management 184,855.30 0.02% 184,855.30 100.00% 48 TOTAL CASH RESERVE PORTFOLIO 542.272.673.81 53.86% 542.272.673.81 100.00% 5.56% 48 TOTAL CAMP 603,378,732.80 59.93% 605.479.612.27 100.35% 2,100,879.47 5.43% 75 US BANK TRUST:
Money Market - (RTC) 2019 Bond Series A Principal 2,517.81 0.00% 2,517.81 100.00% 4.83% - Money Market - (RTC) 2019 Revenue Bond Series A Interest 2,551,436.50 0.25% 2,551,436.50 100.00% 4.83% - Money Market - (RTC) 2021 Revenue Bond Series A COl 0.02 0.00% 0.02 100.00% 4.98% Money Market - (RTC) 2021 Revenue Bond Series A Interest 743,660.24 0.07% 743,660.24 100.00% 4.98% Money Market - (RTC) 2021 Revenue Bond Series B COI 0.01 0.00% 0.01 100.00% ( 4.98% Money Market - (RTC) 2021 Revenue Bond Series B Interest 1,455,072.91 0.14% 1,455,072.91 100.00% 4.98% Money Market - (RTC) 2022 Subordinate Sales Tax Revenue Interest 18,041.93 0.00% 18,041.93 100.00% 5.30% Money Market - (RTC) 2022 Subordinate Sales Tax Revenue Revolving Notes Project Fund 922,251.35 0.09% 922,251.35 100.00% 5.30% Money Market - (RTC) 2023 Sales Tax Revenue Bonds Series A Cost of Issuance 34,435.15 0.00% 34,435.15 100.00% 4.98% Money Market - (RTC) 2023 Sales Tax Revenue Bonds Series A Interest 5,427,731.95 0.54% 5,427,731.95 100.00% 4.98% Money Market - (RTC) 2023 Sales Tax Revenue Bonds Series A Principal 10,706,841.10 1.06% 10,706,841.10 100.00% 4.98% Money Market - (RTC) Commercial Paper Notes Series B Interest 307,284.12 0.03% 307,284.12 100.00% 4.83% Money Market - (RTC) Commercial Paper Notes Series B Principal 180,392.34 0.02% 180,392.34 100.00% 4.83% Money Market - (RTC) Commercial Paper Series B - NCTD Interest 238,044.23 0.02% 238,044.23 100.00% 0.00% Money Market - (SANDAG) Grant Receipt 2019 AB Escrow AC Account 1,520,995.06 0.15% 1,520,995.06 100.00% 5.26% Money Market - (SANDAG) Grant Receipt 2019 AB Grant Receipts Construction 23,392.25 0.00% 23,392.25 100.00% 5.26% Money Market - (SANDAG) Grant Receipt 2019 AB Interest 1,499,436.33 0.15% 1,499,436.33 100.00% 5.26% Moncy Market - (SANDAG) Grant Receipt 2019 AB Principal 330,698.38 0.03% 330,698.38 100.00% 5.26% Money Market - (SANDAG) Grant Receipt 2019 AB Redemption Account 25,419,263.56 2.52% 25,419,263.56 100.00% 5.26% Money Market - (SANDAG) SR 125 2017 Bond Series A Interest 3,649.94 0.00% 3,649.94 100.00% 4.98% Money Market - (SANDAG) SR 125 2017 Bond Series A Principal 2,335.44 0.00% 2,335.44 100.00% 4.98% Moncy Market - (SANDAG) SR 125 2017 Bond Series A Reserve 33.902.28 0.00% 33,902.28 100.00% 4.98% Money Market - (SANDAG) SR 125 FasTrak Customer Prepaid Fund 5.75 0.00% 5.75 100.00% 0.00% Certificates of Participation - (RTC) North County Transit District 17,750,000.00 1.76% 17,750,000.00 100.00% 3.44% 152 Capital Project Retention Accounts 1.658.801.11 0.16% 1,601.837.58 96.57% (56,963.53) N/A TOTAL US BANK TRUST 70,830,189.76 7.03% 70.773,226.23 99.92% (56,963.53) 4.57% US BANK:
INDIVIDUAL PORTFOLIO:
(RTC) TransNet Extension 236,133,451.92 23.45% 233,215,466.04 98.76% (2,917,985.88) 2.82% 780 36 Institution / Account
TOTAL INDIVIDUAL PORTFOLIO
CASH RESERVE:
(RTC) TransNet Extension 100,527.61 0.01% 100,527.61 100.00%
0.00%
TOTAL CASH RESERVE 1000527.61 0.01%
100,527.61 100.00% 0.00%
TOTAL US BANK 236.233,979.53 23.46% 233.315.993.65 98.76% -S (2,917.985.88) 2.82% SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND:
San Diego County Treasurer's Pooled Moncy Fund - (ARJIS) 5,936.26 0.00% 5,936.26 100.00% 3.99% 383 San Diego County Treasurer's Pooled Money Fund - (RTC) 2020 Bonds 2,151,414.53 0.21% 2,151,414.53 100.00% 3.99% 383 San Diego County Treasurer's Pooled Money Fund - (RTC) 2021 Bonds 12,694.80 0.00% 12,694.80 100.00% 3.99% 383 San Diego County Treasurer's Pooled Money Fund - (RTC) TransNet Extension 106,178.30 0.01% 106,178.30 100.00% 3.99% 383 San Diego County Treasurer's Pooled Money Fund - (SANDAG) I-IS FasTrak® 1,547,694.86 0.15% 1,547,694.86 100.00% San Diego County Treasurer's Pooled Money Fund - (SANDAG) SAFE Program 3.99% 383 8,338,478.65 0.83% 8,338,478.65 100.00% 3.99% 383
San Diego County Treasurer's Pooled Money Fund - (SourcePoint) 190,192.25 0.02% 190.192.25 100.00% 3.99% 383
TOTAL SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND 12.352,580.65 1.23% 12.352.589.65100.00% $
3.99%
21,327,257.59 2.12% 21,329,899.98 100.01% 2,642.39 5.44% 47 10,666,460.51 1.06% 10.669.701.97 100.03% 3,241.46 5.45% TOTAL JP MORGAN 31,993,718.10 3.18% 31,999,601.95 100.02% S 5,883.85 5.45%
CALIFORNIA BANK AND TRUST:
Capital Project Retention Accounts 688,430.58 0.07% N/A TOTAL CALIFORNIA BANK AND TRUST 688,430.58 0.07% 688,430.58 100.00% $ N/A
PACING NESTERN AN ACCUS
590,376.06 0.06% 590,376.06 100.00% N/A
TOTAL PACIFIC WESTERN BANK 590,376.06 0.06% 590,376.06 100.00% S N/A
PRINCIPAL CUSTODY SOLUTIONS:
(SANDAG) Section 115 Pension Trust 13,915,316.84 1.38% 14,629,370.88105.13% 714,054.04 2.56% TOTAL PRINCIPAL CUSTODY SOLUTIONS 13.915,316.84 1.38% 14,629.370.88105.13% 714,054.04 2.56% TOTAL S 1,006,878,470.64 100.00% 1,006,724,338.5099.98% S (154,132.05)
4.66%
Legend:
Automated Regional Justice Information System (ARJIS)
Commercial Paper (CP)
State of California Local Agency Investment Fund (LAIF) North County Transit District (NCTD)
San Diego County Regional Transportation Commission (RTC) 37 SANDAG
Detail of Portfolio Balances (by Investment Type)
as of December 31, 2023
Wid. Avg.
Maturity Market Unrealized S&P Moody's Fitch Yield Days to Investment Date Value Value Gain/(Loss) Value Rating_ Rating on Cost Maturity Cash and cash equivalents:
Demand deposits:
(ARJIS) NUA 1.659.139.53 1.659,139.53 $
(RTC) TransNet Salcs Tax 6,636,065.42 6,636,065.42
(SANDAG) Flexible Spending Acet (FSA) 53.360.26 53,360.26 (SANDAG) General 9,853,531.95 9,853,531.95
(SANDAG) Interstate 15 (I-15) FasTrakiR N/A N/A 6.606,600.13 6,606,600.13 2222222222 (SANDAG) Refund Account Common N/A N/A 353,460.61 353,460.61 žžžžžžžžžžž žŽŽŽ·žŽžžžŽ žžžžžžžžžžž (SANDAG) Revenue Account Common N/A 868.305.91 868.305.91 (SANDAG) SAFE Program Account N/A 1.805.424.64 1,805.424.64 (SANDAG) State Route 125 (SR-125) Collection Account N/A 2,324,123.99 2,324.123.99 (SANDAG) State Route 125 (SR-125) Payment Account N/A N/A 4,995,541.43 4,995,541.43 (SourcePoint) N/A 13,785.64 13.785.64
Total demand deposits 35.169.339.51 35.169,339.51 S
Money market accounts and funds:
CAMP Cash Rescrve Portfolio - (ARJIS) N/A N/A 9.852.495.36 9.852,495.36 CAMP Cash Reserve Portfolio - (RTC) 2008 Cap Proj DSRF Relense N/A 18,383.568.83 18,383.568.83 CAMP Cash Reserve Portfolio - (RTC) 2008 Sales Tax Account - TransNet Extension N/A 318,094,900.09 318,094.900.09 !!!!!! CAMP Cash Reserve Portfolio - (RTC) 2010 Bond Series A - Interest 5.038,238.33 5.038,238.33 CAMP Cash Reserve Portfolio - (RTC) 2014 Bond Series A Interest 1.742,951.42 1,742,951.42 CAMP Cash Reserve Portfolio - (RTC) 2014 Bond Series A Principal 4.899,434.25 4.899,434.25 CAMP Cash Reserve Portfolio - (RTC) 2016 Bond Series A Interest 3.662,350.31 3,662,350.31 CAMP Cash Reserve Portfolio - (RTC) 2016 Bond Series A Principal 4,630,191.64 4.630,191.64 ^1Am CAMP Cash Reserve Portfolio - (RTC) 2020 Bond Series A Interest 832,578.11 832,578.11 AAAm CAMP Cash Reserve Portfolio - (RTC) 2020 Bond Series A Principal/ 1,353,740.99 1,353,740.99 CAMP Cash Reserve Portfolio - (RTC) Sage Hill Endowment 940,670.73 940,670.73 11Am CAMP Cash Reserve Portfolio - (RTC) TransNet Program Reserve 30,553.917.36 30.553.917.36 A/Am CAMP Cash Reserve Portfolio - (RTC) Wetland Mitigation TransNet Sales Tax 333.780.45 333,780.45 AAAm CAMP Cash Reserve Portfolio - (SANDAG) 2019 Series AB Cap- 1 Fund 108.570.79 108,570.79 AAAm CAMP Cash Reserve Portfolio - (SANDAG) 2019 Series AB DR Fund 13.431,074.61 13.431.074.61 CAMP Cash Reserve Portfolio - (SANDAG) California Coastal Commission 343,540.67 343,540.67 CAMP Cash Reserve Portfolio - (SANDAG) Coronado Bridge Toll Funds 305,846.10 305,846.10 CAMP Cash Reserve Portfolio - (SANDAG) El Portal Project 473.633.89 473.633.89 CAMP Cash Rescrve Portfolio - (SANDAG) 1-15 FasTrak® 8,848,080.22 8,848,080.22 CAMP Cash Reserve Portfolio - (SANDAG) SANDAG Shoreline Management 184,855.30 184,855.30 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 33,809,228.46 33,809,228.46 CAMP Cash Reserve Portlolio - (SANDAG) SR 125 36,818.465.17 36,818,465.17 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2.118.276.55 2.118,276.55 ... žŽŽŽŽŽŽžžŽŽŽŽŽŽŽžŽŽŽŽŽŽŽŽŽžŽŽŽŽŽŽŽŽŽŽžžžŽžŽ·žŽ ŽŽŽŽŽŽŽ··ŽŽŽŽŽŽŽŽŽŽŽŽŽŽžŽžžžŽžžŽŽŽžžŽžž·žžžžž ......
CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2017A Bond Fastrak Customer Prepaid Fund 2.369,251.73 2,369,251.73 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2017A Bond Interest 4,317,768.24 4,317.768.24 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2017A Bond Principal 2.825,342.35 2,825,342.35 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2017A Bond Reserve Account 14,040,403.81 14.040,403.81 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2017A Bond Toll Revenue Fund 1.779,223.04 1.779.223.04 CAMP Cash Reserve Portfolio - (SANDAG) SR 125 2017A Debt Reserve Fund 20,180,295.01 20.180.295.01 Moncy Market - (RTC) 2019 Bond Series A Principal/ 2,517.81 2,517.81 ЛНIТИЛ!Н(≥zzz8277277272233 Money Market - (RTC) 2019 Revenue Bond Series A Interest 2,551.436.50 2.551.436.50 Money Market - (RTC) 2021 Revenue Bond Series A COl 0.02 0.02 Moncy Market - (RTC) 2021 Revenue Bond Series A Interest 743,660.24 743,660.24 Moncy Market - (RTC) 2021 Revenue Bond Series B COI 0.01 0.01 Money Market - (RTC) 2021 Revenuc Bond Series B Interest 1,155,07291 1.455.072.91 Money Market - (RTC) 2022 Subordinate Sales Tax Revenue Interest 18,041.93 18.041.93 Moncy Market - (RTC) 2022 Subordinate Sales Tax Revenuc Revolving Notes Project Fund 922,251.35 922,251.35 Money Market - (RTC) 2023 Sales Tax Revenue Bonds Series A Cost of Issuance 34,435.15 34.435.15 Money Market - (RTC) 2023 Sales Tax Revenue Bonds Series A Interest 5.427.731.95 5,427.731.95 Money Market - (RTC) 2023 Sales Tax Revenue Bonds Series A Principal 10,706,841.10 10.706,841.10 Money Market - (RTC) Commercial Paper Notes Series B Interest 307,284.12 307,284.12 Money Market - (RTC) Commercial Paper Notes Series B Principal 180,392.34 180,392.34 Moncy Market - (RTC) Commercial Paper Series B - NCTD Interest 238,044.23 238,044.23 Money Market - (SANDAG) Grant Receipt 2019 AB Escrow AC Account 1.520,995.06 1.520,995.06 Money Market - (SANDAG) Grant Receipt 2019 AB Grant Receipts Construction N/A 23,392.25 23,392.25 Moncy Market - (SANDAG) Grant Receipt 2019 AB Interest 1,499,436.33 1.499.436.33 Trade Maturity Unrealized Wid. Avg.
Market S&P Moody's Days fo
Investment Date Value Value Gain/(Loss)
Rating Maturity
Moncy Market - (SANDAG) Grant Recipt 2019 AB Principal Account N/A N/A 330,698.38 330,698.38 N/A Money Market - (SANDAG) Grant Receipt 2019 AB Redemption Account NR N/A N/A 25,419,263.56 25,419,263.56
Money Market - (SANDAG) SR 125 2017 Bond Scries A Interest N/A 3,649.94 3.649.94 Money Market - (SANDAG) SR 125 2017 Bond Series A Principal/ N/A N/A 2,335.44 2,335.44 žžžžŽ
Moncy Market - (SANDAG) SR 125 2017 Bond Series A Reserve N/A N/A 33.902.28 33,902.28 Moncy Market - (SANDAG) SR 125 FasTrak Customer Prepaid Fund N/A N/A 5.75 5.75 Principal Custody Solutions - (SANI)AG) Section 115 Pension Trust N/A N/A 13.915,316.84 14.629.370.88 714,054.04 San Diego County Treasurer's Pooled Money Fund - (ARJIS) N/A N/A 5,936.26 5.936.26 AAA/SI San Diego Couly Treasurer's Pooled Money Fund - (RTC) 2020 Borkis N/A N/A 2,151,414.53 2,151,414.53 MAT/SI San Diego County Trensurer's Pooled Moncy Fund - (RTC) 2021 Bonds 222 N/A N/A 12,694.80 12,694.80 MAT/SI
San Diego County Treasurer's Pooled Money Fund - (RTC) TransNet Extension N/A N/A 106.178.30 106,178.30 San Diego Conly Treasurer's Pooled Money Fund - (SANDAG) I-IS FaxTrakto N/A AMA/SI 1,547,694.86 1,547,694.86 AMA/SI 383
San Diego County Treasurer's Pooled Money Fund - (SANDAG) SAFE Program N/A N/A 8,338,478.65 8,338.478.65 San Diego County Treasurer's Pooled Money Fund - (SourcePoint) | N/A AAAr/SI N/A 190,192.25 190,192.25
State ofCA Local Agency Insestment Fund (LAIF) - (RTC) TransNet N/A N/A 1.610,464.23 1,610,464.23 NR State of CA Local Agency Insestment Fund (LAIF) - (SANDAG) N/A N/A 115.333.58 115,333.58 US Bank Cash Reserve Portfolio - (RTC) TransNet Extension • - 988 N/A N/A 100.527.61 100,527.61 NR
JP Morgan (RTC) JPMorgan Prime Money Market Fund N/A NIA 21.327,257.59 21,329,899.98 2,642.39 JP Morgan (RTC) Morgan Stanley Institutional Liquidity Funds: Prime Portfolio NIA N/A 10.666,460.51 1AAm AAAmml 10,669,701.97 3,241.46 AAAm AAAmml
Capital Project Retention Accounts - US Bank NIA N/A 1,658.801.11 1.601,837.58 (56,963.53) Capital Project Retention Accounts - CA Bank && Trust N/A NA 688.430.58 688,430.58 Capital Project Retention Accouts - Pacific Wester Bank N/A 590,376.06 590.376.06 Total money market accounts and funds $ 056.719.620.22 $ 657.382,504.58 662.974.36 s Total cash and cash equivalents $ 691.888,959.73 $ 692.551,934.09 $ 662.974.36 Investments:
U.S. Agencies:
FEDERAL FARM CREDIT BANK 09/28/2020 03/28/2024 5,995,500.00 5.924,460.00 (71,040.00) S FEDERAL FARM CREDIT BANK 6,000,000.00 0.32%
09/17/2019 09/10/2024 5,079,870.00 4,901,900.00 (177,970.00) 5,000,000.00 1.74% FEDERAL FARM CREDIT BANK 08/27/2019 07/26/2024 6,615,310.00 6,383,390.00 (231,920.00) 6.500,000.00 FEDERAL FARM CREDIT BANK 11/06/2023 10/10/2025 6,114,274.00 6.173,200.00 S8,926.00 6,100,000.00 FEDERAL HOME LOAN BANK 10/12/2023 09/11/2026. 5.785.152.00 5.913,390.00 128,238.00 5.800,000.00 FEDERAL HOME LOAN BANK 03/10/2023 4.97%
03/10/2028 5,294,796.00 5,322,980.00 28,184.00
FEDERAL HOME LOAN BANK 02/08/2021 02/10/2025 6,017.160.00 5.753,700.00 (263,460.00)
05/25/2023 09/10/2027 S,127,540,00 S.188,425.00 60,885.00 FEDERAL HOME LOAN MORTGAGE CORP 023/09/2021 05/15/2024 4,993,750.00 4,906,150.00 (87,600.00) FEDERAL HOME LOAN MORTGAGE CORP 09/28/2020 03/29/2024 5.000,000.00 4,940,850.00 (59,150.00) FEDERAL NATIONAL MORTGAGE ASSOCIATION XN09/2021 6,461,206.00 6,007,862.00 4.200000 16020) 01072024 (453,344.00)
FEDERAL NATIONAL MORTGAGE ASSOCIATION 4,993,150.00 4,916,600.00 (76,550.00) UNITED STATES TREASURY NOTE/BOND 10102/2023 09/30/2028 4,386,264.74 4,541,636.00 155,371.26 440000 4.70% UNITED STATES TREASURY NOTE/BOND 09/27/2019 04/30/2024 5.091.423.00 4,947,650.00 5,000,000.00 L UNITED STATES TREASURY NOTE/BOND (143,773.00)
08/19/2021 11/30/2024 5,888.61 5.528.54 (360.07) 5,700.00 0.48% UNITED STATES TREASURY NOTE/BOND 09/08/2021 11/30/2024 6,093,593.75 5.722,528.00 (371,065.75) 5,900,000.00 UNITED STATES TREASURY NOTE/BOND 03/23/2022 12/15/2024 S.111,187.50 5.111.002.00 (185.50) 5.300,000.00 UNITED STATES TREASURY NOTE/BOND 12/31/2024 2.36%
09/13/2021 5.727,323.11 5.337,695.00 (389.628.11) 5.500,000.00 0.48% UNITED STATES TREASURY NOTE/BOND 03/23/2022 01/31/2025 5.322,152.34 5.175,768.00 (146,384.34) 5,300,000.00 UNITED STATES TREASURY NOTE/BOND 2.35%
14/06/2022 04/30/2025 4,657.812.50 4,731,650.00 73,837.50 5,000,000.00 UNITED STATES TREASURY NOTE/BOND 11/13/2023 07/31/2025 5.009,468.75 5.075.876.00 5,200,000.00 3.13% UNITED STATES TREASURY NOTEBOND 66,407.25
11/27/2023 09/30/2025 6,182,521.44 6,252,480.00 69,958.56 UNITED STATES TREASURY NOTEBOND 12/31/2025 5,184,328.13 5200000 00132022 5,282,532.00 98.203.87 3.12%
UNITED STATES TREASURY NOTE/BOND 06/30/2026 4,909,332.03 4,901,069.00 (8,263.03) 5,300,000.00 UNITED STATES TREASURY NOTE/BOND 10/27/2023 04/30/2028 2.88% 4,738,493.31 4.920,500.00 182,006.69 5.000,000.00 4.81% UNITED STATES TREASURY NOTE/BOND 09/13/2023 06/30/2028 5.596,464.84 S,726,961.00 130,496.16 5,700,000.00 UNITED STATES TREASURY NOTE/BOND 08/29/202308/15/2028 4,837,921.66 4,917,308.00 79,386.34 4,600,000.00 4.33% UNITED STATES TREASURY NOTE/BOND 12/07/2022 11/15/2027 4,672.070.31 4,701,150.00 5.000,000.00 UNITED STATES TREASURY NOTE/BOND 29,079.69 3.72%
04/03/2023 03/31/2028 3,582,200.90 3,586,880.00 4,679,10 4,000,000.00 3.55% US TREASURY NOTES 08/15/2025 14,130,240.23 14,254,100.00 123,859.77 14.545,000.00 US TREASURY NOTES I0V0S/2022 08/15/2024 4.19%
32,797,340.63 34,177,646.29 1,380,305.66 35,195,000.00
US TREASURY NOTES 14.178,478.13 14.775.192.17 596.714.04
15.215,000.00 4.22%
Total U.S. Agencies 200.692.21391 S 210.428,059.00
785.845.09 S 215.560.700.00 3.12%
Corporate Medium Term Notes:
AMAZON.COM INC 5,678,075.00 173,225.00
5,851,300.00 6.500,000.00 4.63% 1.594
AMERICAN HONDA FINANCE 4.926,068.00 4,941,258.00 15.190.00 4,900,000.00 APPLE INC 12/15/2022 4.57% 1,473
09/12/2027 2,559,816.00 2,585.358.00 2,700,000.00 4.12% 39 Wid. Avg.
Trade Maturity Unrealized S&P Moody's Days to
Investment Date Date Value Value Gain/(Loss) Value Rating. Maturity_ BANK OF AMERICA CORP 10/20/2023 02/04/2028 3,974,265.00 4,168,530.00 194.265.00 4,500,000.00 AA- 1,496 CHEVRON CORP 05/10/2022 05/11/2025 5,719,560.00 5.753,160.00 33,600.00 6,000,000.00 497 CITIBANK NA 12/04/2023 09/29/2028 3,072,060.00 3,132,390.00 60,330.00 3,000,000.00 CITIBANK NA 06/21/2021 01/23/2024 6,565,064.00 6,093,168.00 (471,896.00) 6,100,000.00 COCA-COLA CO/THE 04/20/2023 05/25/2027 3,357,025.00 3,346,980.00 (10,045.00) | 3.500,000.00 1,241 COLGATE-PALMOLIVE CO 04/03/2023 03/01/2028 3,604,160.00 3,586,800.00 (17,360.00) 3,500,000.00 1,522 HONEYWELL INTERNATIONAL 11/08/2019 08/15/2024 2,933,756.00 2,848,351.00 (85,405.00) 2,900,000.00 JOHN DEERE CAPITAL CORP 02/06/2023 01/20/2028 5.781,054.00 5,794,335.00 13,281.00 5.700,000.00 2ağ82{222 1,481 MICROSOFT CORP 07/18/2019 02/06/2024 6,043,518.00 5.835.433.50 (208,084.50) 5.850,000.00 PEPSICO INC 05/31/2023 05/15/2028 2,626,208.00 2,645.292.00 19,084.00 2,600,000.00 1,597 PFIZER INC 09/30/2019 05/15/2024 4,036,968.00 3.772,450.00 (264,518.00) 3,800,000.00 PNC BANK NA 07/20/2023 01/22/2028 2,760,870.00 2,821,710.00 60,840.00 3,000,000.00 << US BANCORP 01/20/2022 02/05/2024 5.208,050.00 1,988,150.00 (219,900.00) 5,000,000.00
69.550.000.00 29065151864 8 1841991 223
Total Corporate Medium Notes 68,846,517.00 S 68.164.665.50 S (681.851.50) S Supra-National Agency Bond/Note
INTL BANK FOR RECON AND DEVELOPMENT 03/08/2021 01/15/2025 320,5000 5,809,440.00 (420,120.00) S 6,000,000.00 Ana INTER-AMERICAN DEVELOPMENT BANK 11/06/202002/21/2024 4,982,700.00 (453,450.00) 5,000,000.00 AAA Aaa INTER-AMERICAN DEVELOPMENT BANK 05/22/2023 01/12/2028 7.035,070.00 6.987.540.00 (47,530.00) 7,000,000.00 AAA Aaa Total Supra-National Agency Bond/Notes 18,700.780.00 17.779,680.00 (021,100.00) S 18,000.000.00 718 Certificates of Participation: 81 1111
(RTC) North County Transit District Certilicates of Participation 11/30/2023 04/30/2024 17.750,000.00 $ 17.750.000.00 S 17.750,000.00 NR Total Certificates of Participation S 17.750.000.00 S 17.750.000.00 S $ 17,750.00.00 Total investments $ 314,982.510.91 314,172,404.50 (812,106.41) 320,860,700.00 650 Total Portfolio: § 1.006,878.470.64 S 1,006,724,338.59 (1S4,132.05) N/A 235 Legend:
Automated Regional Justice Information System (ARJIS)
Commercial Paner (CP)
State of California Local Agency Investment Fund (LAIF) North County Transit District (NCTD)
San Diego County Regional Transportation Commission (RTC) 40 Agenda Item No. 5
ITOC 12 Month Look Ahead ITOC
Master Calendar February 14, 2024
Wednesday, March 13, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint
MASTER CALENDAR
FY 2023 TransNet MAJOR CORRIDORS AND BIKEWAY PROGRAM PROJECT ANNUAL
STATUS REPORT
FY 2023-2024 ITOC GOALS UPDATE
TENTATIVE: CITY OF SAN DIEGO TransNet PROGRAM AND TRANSPORTATION
CAPITAL IMPROVEMENT PROGRAM UPDATE
FY 2024 TransNet TRIENNIAL PERFORMANCE AUDIT: DRAFT REPORT INDEPENDENT AUDITOR'S DRAFT ANNUAL REPORT ON RESULTS OF FY 2023 TransNet COMPLIANCE AUDITS
INDIRECT COSTS FOR NONPROFIT TransNet GRANT RECIPIENTS
DRAFT FY 2025 CAPITAL PROGRAM BUDGET UPDATE: TransNet PROGRAM OF Wednesday, April 10, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint
MASTER CALENDAR
ANNUAL SUBMITTAL OF REGIONAL TRANSPORTATION CONGESTION
MPROVEMENT PROGRAM FUNDING PROGRAMS BY LOCAL JURISDICTIONS
NORTH COAST CORRIDOR STATUS UPDATE
2024 ITOC ANNUAL REPORT: PROGRESS UPDATE
TENTATIVE: FY 2018 AND FY 2021 TransNet TRIENNIAL PERFORMANCE AUDIT:
IMPLEMENTATION OF RECOMMENDATIONS STATUS
Wednesday. May 8, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint
MASTER CALENDAR
QUARTERLY TransNet FINANCIAL REPORTS AND OTHER FINANCIAL DATA
QUARTERLY FINANCE REPORT AND UPDATE ON FINANCIAL MARKETS XX REGIONAL BIKEWAY PROGRAM STATUS UPDATE: EARLY ACTION PROGRAM TransNet MAJOR CORRIDOR AND REGIONAL BIKEWAY PROGRAM OF PROJECTS:
QUARTERLY STATUS REPORT (FY 2024 Q3)
APPOINTMENT OF SUBCOMMITTEE MEMBERS FOR FY 2024 FISCAL AND
COMPLIANCE AUDIT
TRANSNET LOCAL STREET AND ROAD PROGRAM ANNUAL STATUS REPORT 2024 ITOC ANNUAL REPORT: DRAFT REPORT
LOCAL AGENCY PRESENTATION (TBD)
Wednesday, June 12, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint
MASTER CALENDAR
ANNUAL SELECTION PROCESS FOR ITOC CHAIR AND VICE CHAIR
2024 ITOC ANNUAL REPORT: FINAL REPORT
FY 2024 TransNet TRIENNIAL PERFORMANCE AUDIT: FINAL REPORT ACCEPTANCE OF FY 2023 TransNet FISCAL AND COMPLIANCE AUDITS 2023 STATE OF THE COMMUTE: ANNUAL REPORT
FY 2023-2024 ITOC GOALS UPDATE
Wednesday, July 10, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint
MASTER CALENDAR
TransNet GRANT PROGRAMS: BIANNUAL STATUS UPDATE
FY 2023-2024 ITOC GOALS UPDATE
ANNUAL SELECTION OF ITOC CHAIR AND VICE CHAIR
APPOINTMENT OF SUBCOMMITTEE MEMBERS FOR 2023 STATE OF THE COMMUTE FY 2024 TransNet AGREED-UPON PROCEDURES
REGIONAL ACTIVE TRANSPORTATION PROGRAM AWARDS AND FY 2024
PROGRAM BUDGET AMENDMENT
TENTATIVE: LOCAL AGENCY PRESENTATION (TBD)
41 ITOC 12 Month Look Ahead
Master Calendar
Wednesday, August 14, 2024 Consent Report Information Discussion Recommend Approve Appoint No meeting
Wednesday, September 11, 2024 Consent Report Information Discussion Recommend Approve Appoint
MASTER CALENDAR
QUARTERLY TransNet FINANCIAL REPORTS AND OTHER FINANCIAL DATA
QUARTERLY FINANCE REPORT AND UPDATE ON FINANCIAL MARKETS X REGIONAL BIKEWAY PROGRAM STATUS UPDATE: EARLY ACTION PROGRAM TransNet MAJOR CORRIDOR AND REGIONAL BIKEWAY PROGRAM OF PROJECTS:
QUARTERLY STATUS REPORT (FY 2024 Q4)
Wednesday, October 09, 2024 Consent Report Information Discussion Recommend Accept Appoint
MASTER CALENDAR
2023 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM AMENDMENT REGIONAL BIKEWAY PROGRAM STATUS UPDATE: EARLY ACTION PROGRAM FY 2018 AND FY 2021 TransNet TRIENNIAL PERFORMANCE AUDIT:
IMPLEMENTATION OF RECOMMENDATIONS STATUS UPDATE
REGIONAL SAFETY PROGRAM UPDATES
FY 2023-2024 ITOC GOALS UPDATE
Wednesday, November 13, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint
MASTER CALENDAR
2025 ITOC MEETING CALENDAR
TransNet MAJOR CORRIDOR AND REGIONAL BIKEWAY PROGRAM OF PROJECTS:
QUARTERLY STATUS REPORT (FY 2025 Q1)
NORTH COAST CORRIDOR STATUS UPDATE
TransNet ENVIRONMENTAL MITIGATION PROGRAM: ANNUAL STATUS REPORT TENTATIVE: UPDATE ON TransNet EXTENSION ORDINANCE AMENDMENTS
DOWNTOWN LAYOVER FACILITY STATUS UPDATE
Proposed FY 2024 Program Budget Amendment
FIXING AMERICA'S SURFACE TRANSPORTATION ACT: PERFORMANCE
MANAGEMENT SAFETY TARGETS
DRAFT SCHEDULE OF ITOC MEETING AGENDA TOPICS
TENTATIVE: LOCAL AGENCY PRESENTATION (TBD)
Wednesday, December 11, 2024 Consent Report Information Discussion Recommend Approve Accept Appoint No meeting
Wednesdav Januarv 8. 2025 Consent Report Information Discussion. Recommend Approve Accept Appoint
MASTER CALENDAR
TransNet ITOC MEMBER APPOINTMENT PROCESS
TransNet GRANT PROGRAMS: BIANNUAL STATUS UPDATE
QUARTERLY TransNet FINANCIAL REPORTS AND OTHER FINANCIAL DATA
QUARTERLY FINANCE REPORT AND UPDATE ON FINANCIAL MARKETS REGIONAL BIKEWAY PROGRAM STATUS UPDATE : EARLY ACTION PROGRAM TENTATIVE: LOCAL AGENCY PRESENTATION (TBD)
42 ITOC 12 Month Look Ahead
Master Calendar
Wednesday, February 12, 2025 Consent Report Information Discussion Recommend Approve Accept
TransNet REGIONAL TRANSPORTATION CONGESTION IMPROVEMENT PROGRAM
FEE ADJUSTMENT
TransNet MAJOR CORRIDOR AND REGIONAL BIKEWAY PROGRAM OF PROJECTS:
QUARTERLY STATUS REPORT (FY 2024 Q2)
QUARTERLY TransNet FINANCIAL REPORTS AND OTHER FINANCIAL DATA
QUARTERLY FINANCE REPORT AND UPDATE ON FINANCIAL MARKETS PROPOSED FY 2024 ITOC ANNUAL OPERATING BUDGET
TENTATIVE: CITY OF SAN DIEGO TransNet PROGRAM AND TRANSPORTATION
CAPITAL IMPROVEMENT PROGRAM UPDATE
TransNet PROGRAM REVENUE ESTIMATES
OTAY MESA EAST PORT OF ENTRY STATUS UPDATE
TENTATIVE: UPDATE ON TransNet EXTENSION ORDINANCE AMENDMENTS 2024 ITOC ANNUAL REPORT: INITIAL INPUT
43 SANDAG
6 TransNet Independent Taxpayer Oversight Committee Item:
February 14, 2024
Regional Bikeway Program Status Update: Early Action
Program
Overview Action: Information
In 2013, the Board of Directors approved a This report provides an update of the $200 million initial investment over ten years to progress made on the Regional Bike Plan implement the Regional Bike Plan Early Action Early Action Program, as a component of the Program (EAP). The EAP (Attachment 1) is a network Regional Bikeway Program, since of high-quality bikeways comprised of new facilities October 2023. designed to increase transportation options for people
to make connections to transit, schools, employment,
Fiscal Impact:
shopping, recreational centers, and other everyday
TransNet funds represent $190 million (39%)
destinations.
of programmed funds. Leveraged funds have
Ten years into the program, many projects have increased to $300 million (61%). opened to the public, others are in construction, with
Schedule/Scope Impact:
more beginning construction in the upcoming year
Eastern Hillcrest Bikeway Invitations for Bid
(Table 1). The initial investment has allowed the EAP
Program to leverage outside funding consistent with delayed by approximately three months the intent of TransNet. To date, 39% of expenditures Execution of Inland Rail Trail 3B construction have been TransNet funds while leveraging 61% of contract delayed by approximately one funds from outside Federal, State, or Local sources. month.
Typical issues of project delays and escalating construction costs have resulted in the Program's proposed schedule, described in detail for each project in Attachment 2. Staff continue returning to the ITOC with this detailed accounting of each EAP project's status since the start of the EAP. This report will provide a summary of project progress to date and an update of upcoming project milestones.
Key Considerations
Current Implementation Status
Early Action Program - Bikeway Project Status (Miles)
February 1, 2024
70|
22.4 60
50 14.8
40 30
23.4 20
10 0
Open to Public In Construction In Final Design Pursuing NEPA 44 Imperial Avenue Bikeway has moved to construction phase. Howard Avenue Bikeway has received NEPA certification. Projects in construction are progressing and projects in final design are working toward approval and preparation for Invitations for Bid. Below is a summary of the status of projects in construction and anticipated timeline of projects heading into construction in the next 12 months.
Projects in construction
• Pershing Bikeway - 85% complete
• Bayshore Bikeway: Barrio Logan - 68% complete
• Border to Bayshore Bikeway - 24% complete
• Imperial Avenue Bikeway - Construction contract executed Projects currently in bid phase
• Inland Rail Trail 3B
Projects anticipated going into construction next 18 months • Uptown Bikeways: Eastern Hillcrest - Early 2024 bid date • North Park | Mid-City Bikeways: University Avenue - Spring 2024 bid date • North Park | Mid-City Bikeways: Orange Avenue - Summer/Fall 2024 bid date • North Park | Mid-City Bikeways: Howard Avenue - Summer/Fall 2024 bid date • Central Avenue Bikeway - Summer/Fall 2024 bid date
• Uptown Bikeways: Washington Street - Summer 2024 bid date Leveraging TransNet and Program Expenditures to Date
Leveraging local TransNet Funds to Date: The Regional Bikeway Program projects are funded by TransNet, the regional half-cent sales tax for transportation approved by San Diego County voters.
Currently, 2% of TransNet revenues are set aside for bike and pedestrian improvements (Attachment 3).
Since the adoption of the Bike EAP in 2013, those TransNet funds have been successfully leveraged to bring in significant federal, state, and other local dollars so the region can gain greater economic, health, and mobility benefits. As of January 2024, the total approved funding for active and completed projects within the Regional Bikeway Program is $490 million. TransNet funds represent $190 million (39%) of programmed funds, which helped leverage $300 million (61%) from federal, state, and other local sources.
Expenditures to Date: Approximately $254.7 million has been spent to date (Attachment 4).
Next Steps
Anticipating construction costs will continue to increase the Bikeway Program will be meeting with Financial Planning, Budgets, and Grants Department to continue to explore additional funding sources and use other financial tools that utilized to address potential funding gaps for construction.
Omar Atayee, Director of Engineering and Construction
Attachments: 1. Regional Bikeway Early Action Program—Project Priority List 2013
2. Regional Bikeway Early Action Program—EAP Crosswalk and Project Status
3. TransNet Extension Flow of Funds
4. CIP Total Expenditures, February 1, 2024
45 Attachment 1
Regional Bike Plan EAP
Proposed Project Priority
Phasing: EAP within S200m cap HEAP exceeding $200m cap h • Continued from previous phase riority Facility Type rolect f urisdictionts) Project Phase Rolling Total Cost High-Priority Urban Bikeway San Diego 2 Regar
Hieh Priority Urban Bikeway Uptawn 40,868,000
Hah-Priority Urban Bikeway 520.000 ARALE ONE
2High-Priority Urban. Bikeway 2 San Diego 5,727,000 49,173,000 High-Priority Urban Bikeway North Park - Mid-City: CAGER MO Hich Prlority Urban Biteway North Park - Mid-City 2,688,000$ 57,636,000 an Dippo Jesign 62,505,000
High-Priority Urban Bikeway forth Park - Mid-cit San Diego Isec 1 Altewsu San Diego Design 67,652,000
San Diego River Trail Father Junipero Serra Trail to Santee 20460002 Coastal Rail Trail San Diego - Rose Creek San Diego Design Const. 20,636,000 91,105,000 Bayshore Bikeway: Main St to Palomar Chula Vista/Imperial Beach fantt ) 950 000 S 04054 00/ Coastal Rail Trail Encinitas - Chesterfield to G Encinitas Design 100,949,000 Class | Bikeway Coastal Rail Trail Encinitas - Chesterfield to Solana Beach Emintas Desian 100.000 S 101.050.000 51 (A.B.C.D) Inland Rail Trait San Marcos, Vista, Co. of SD 133,740,000 coastal Rail Trail Oceanside. Wisconsin to Oceanside Bivd. Oceanside Const Const. 133,940,000 Plaza Bonita Bike Path dational Cir 124.340.000
Class i Bikeway 55 Bayshore Bikeway - National City Marina to 32ndi St Const 1,503,000 $ 135,843,000 are l Bikeway 1-15 Mid City - Adams Ave to Camino Del Rio S 9,341.000 125.194 000 $50 Bayshore Bikeway - Barrio Logan San Diego ROW 4,604,000S 149,789,000 Pershing and El Prado 157.071.000
High-Priority Urban Bikeway
Han Priority Urban 8 keway bershing and El Prado San Diego: Ts 157,684,000 High-Priority Urban Bikeway lowntown to Southeast connections 787,000 158471,000 19 High-Priority Urban Bikeway." San Diego
Ech. Pilority Urbs Downtown to Southeast connections ROW 2,825,000 High-Priority Urban Bikeway san Ysidro to Imperial Beach - Bayshore Bikeway Connection mperial Beach/San Diego 12260008 164057000 San Ysidro to Imperial Beath - Bayshore Bikeway Connection Imperial Beach/San Diego ROW 860,000 $ 166,927,000 21 High-Priority Urban Bikeway Terrace Or/Central Ave Adams to Wightman Canet. 1,407,000 168,334,000 San Diego River Trail - 1805 to Fenton San Diego 1,741,000 170,075,000 taect Bikeway an Diego River Trail - Short zap connections san Dienc 1,370,000 171,445,000 Coastal Rail Trail Encinitas • Leucadis to G Street Encinitas Const. 1 9e0 a Be son ana otal Railtrail San Deto -UTC
Coastal Rail Trall San Diego - Rose Canyon San Diego Env/Design > che con 120 c02 or Coastal Rail Trail San Diego Pac Hwy (W. Washington Street to Laurel Street) San Diego Const. 4,050,0005 183,359,000 coastal Rail Trail San Diego - Pac Hwy (Laurel Street to Santa Fe Depot). onet. 7,628,000 191,187,000 Coastal Rail Trail San Diego • Encinitas Chesterfield to Solana Beach (construction phase) Encinitas Const. 127,000 $ 191,314,000 Coastal Rail Trail San Diego • PacHwy (Taylor Street to W. Washington Street) 3,994,000 195,308,000 San Ysidro to Imperial Beach - Bayshore Bikeway Connection Imperial Beach/San Diego Const. 201,513,000 Grenado 1. 6200M with Ci million annual arante Tace 1 Pikeway Coastal Rall Trail San Diego-Pac Hwy (Elesta Island Road to Taylor Street) San Diego 7,270,000 203,783,000 54318 an Diego River Trail - Father Junipero Serra Trail to Santee (construction phase Const. te tot me 40% Class Bikeway
Sayshore Bikeway - Barrio Loran (construction phase) San Diego 13,591,000 1 High-Priority Urban Bikeway 8, 9,10 Downtown to Southeast connections (construction phase) San Diego Const. 17,015,000 $ 246,801,000 Coastal Rail Trail San Diego - UTC (construction phase) San Diego Const. 249,492,000 = High-Priority Urban Bikeway 11. 16, 16A City Heights /Encanto/Leman Grove 12005000 d 256,537,000 High-Priority Urban Bikeway 12, 12A City Heights/Fairmount Corridot 12.216,000 268,753,000 inland in Grottmant/l Mech La Mesa/El Cajon/San Diego Const. 2,469,000 271,222,000 15, 15A, 20, 20A La Mesa/Lemon Grove/El Cajon connections Lemon Grava/La Mesa SACRAM 226 680 000 Clace l Rice way Coastal Rall Trail - Rose Canyon (construction phase) San Diego Const. as v 8,433,000 285,112,000 tase | Alkaway 31E San Diego River Trail - Qualcomm Stadium to Ward Rd "onet 1,568,000 S 286,691,000 Class | Bikeway RES 31F San Diego River Trail - Rancho Mission Road to Camino Del Rio North San Diego Const. 263,000 S 286,944,000 Class | Bikeway 33A Coastal Rail Trall San Diego - Rose Creek Mission Bay Connection Can Nieac 3,990,000 290,934,000 Coastal Rail Trail Cartsbad - Reach 4 Cannon to Palomar Airport Rd. Carlsbad 3,84000 3 296,018,000 coastal Rail Trail Carisbad Reach 5 Palomar Airport Road to Polnsettia Station Const. 2,738,000 298,757,000 Class | Bikeway 39A Coastal Rail Trail Encinitas - Carlsbad to Leucadia Encinitas Const. 305.391.000 High-Priority Urban Bikeway Ascal Roll Trill nol Mar Jol Mar Const 305,787,000 Coastal Rail Trail San Diego - Del Mar to Sorrento via Carmel Valley Del Mar/San Diego Const 0c 100 con lass t Bikeway Coastal Rail Trail San Diego - Carmel Valley to Roselle via Sorrento ! Const. 867,000 $ 307,065,000 Class i Bikeway Coastal Rail Trail San Diego - Roselle Canyon Const. 312.024.000 13A 22 This Mathas Cit connectlant Const. 10,516,000
(Hich-Priority Urban Bikeway $ 19.30 Pacific Beach to Mission Beach ian Diego oner To the none 332,049,000 Eth Priority Urban Bleway 25, 26/26A Ocean Beach to Mission Bay Const. 23,815,000 $ 355,864,000 san Diego River Trail - Bridee connection (Sefton Field to Mission Valley YMCA) ian Diego Const. 7,259,000 363,122,000 San Diego River Trail: Mast Park to Lakeside baseball park Const. to sac as & Flyover (Camino del Rio South to Camine del Rio North) an Diego Const. 445,000
High-Priority Urban Bikeway 17.23,29,294 i Cajon Santee connections El Cajon/La Mesa/Santee San Diego River Trail - Father IS Trail to West Hill Parkway ian Diego Const 398,989,000 Class T Bikeway *one 18,786,000
Class i Bikeway BRA Coastal Rail Trail Carisbad - Reach 3 Tamarack to Cannon ARIA M 122 E80 000 High-Priority Urban Bikeway Clairemont Drive (Mission Bay to Burgener) San Diego: 7,688,000 S 430,277,000 Tal Disto Bless Dews white Inautomato ten Rawhi on Nozo cons 437,257,000 High-Priority Urban Bikeway Mira Mesa Bike Boulevard San Diego Const. 3751.000 s 441 00e m Class | Bikeway 120 Sweetwater River Bikeway Ramps lational City 8,883,000 $ 449,891,000 Class | Bikeway Coastal Rail Trail Oteanside - Alta Loma Marsh bridge Oceanside 4,684,000 S 454,575,000 Class | Bikeway ARA Coastal Rall Trail San Deigo - Mission Bay (Clairemant to Tecolote): Can Namo 3,092,000 $ 457,667,000 Class | Blkeway Bayshore Bikewav Coronado - Golf course adjacent 2,817,000 $ 460,484,000 46 Attachment 2
SANDAG Bikeways Early Action Program (EAP) Capital Improvement Program (CIP) Crosswalk and Project Status EAP EAP Project Actual Actua Actual Current Origina
Project Project Names) Project Area lurisdiction Planned Planned Planned Cost 2013 I CIP Project Status% Complete Costs Through Additional Notes Priorit Facily Type Projo Se no Number/s Phase I FAP 02-01-2024 FY Start Complet Duration Status (per Duratio Associate as of 02-01-2024 (years) Start Miles (x1000)
n (years) Planning Design Construction Date Opened
This CIP project combines segments from EAP
High-Priority Projects 1 & 3 - No. 1's Segments 1-7 from Third Urban 1.83 9.35 1223081 Wasting Bon st. and Ave at Upas in Hikest to Friars Rd was shortened to Uptown San Diego Design $18,810,115| = 3.5 make a more direct connection from CIP 1223022 to Bikeway Mission Valley
the SD River Trail and Fashion Valley Transit Center.
AP Project No. 3's Segments 3-S on Washington St
and San Diego Ave were added to this CIP. Expected to go out to bid summer 100M 2024.
High-Priority
8-9 of 122302 Uits venourth and This CIP project is Segments 8&9 from EAP Project 1.
Uptown San Diego Design $13,220,592 14 4.5 It was extended farther north to create a safer Bikeway $23,973
connection to CIPS 1223084 and 1223083. Mar-22
High-Priority 1,2,86 Uptown: Mission Hills Complete.
Urban 1223085 and Old Town Uptown San Diego Design 31,880,574 14 Bikeway of 9 1.7 $173 Received Cycle 6 ATP for fnal design.
Old Toum
High-Priority this CP project is Segments 1,2,83 from EAP Project Design work to begin in 2024.
Urban 3.6,7 3, 2 of 1223083 Unten: Easier North Park - San Diego 6, and Segment 2 from Project 7. The alignments Mid-City $7,797,847 14 1.5
Bikeway significantly changed for better connectivity to $4,145 UntowNPMC projects. tbd Expected to go out to bid Early 2024.
High-Priority 2-3 of (to Caper Hites 192 as, pericary segment. - urban see cell
1223086 Uptown: Park Bird Uptown San Diego = Design $84,813 14 22 0.8 2 from EAP Project 7. The remainder on Park Blvd Bikeway above $174
from Cypress Ave to Village Place, will be built by the City of San Diego. _ 100| tbe Complete.
2013 mileage reflects Park Bivd section of original
alignment but that segment's costs were not
High-Priority North Park I Mid-City ncludied in this, or any other EAP project. Georgia St Urban 2,7 from Robinson St north to Meade Ave was the
1223082 Bikeways: Georgia- Uptown San Diego $5,726,867 3.5 preferred alternative alignment built with 1223082.
Bikeway Meade $26,192
Costs for Preliminary Engineering of Monroe Bikeway
12 be intele to ine tent and the cras men
Closed Out. Mar-22
223079 split into two segments. Howard Ave Completo.
High-Priority (1223079) from Park to I-805 is currently in DSO Urban 1223079 |NPMC: Howard Ave North Park - San Diego Design $5,775,10014 3.3 Mid-City 3.6 review. Orange Ave (1223087) segment is from 1-805 Bikeway to Estrella and connects to NPMC: University Ave 11223079 split into iwo segments. Howard Ave
High-Priority 1223079) from Park to 1-805 is currently in DSD 1 of 1 | 1223087 NPMC: Orange Ave North Park - San Diego = Design see above see coll see cell Bikeway Mid-City above above review. Orange Ave (1223087) segment is from 1-805 to Estrella and connects to NPMC: University Ave
tigh-Priority 6-8 of Confiruction costs for the Lands Bikeway project are Irban 6,7 6. 2 of 1223078 NPMC: Landis Ave North Park - San Diego Const $5,182,068 14 included with the Georgla-Meade Bikeway, above.
Bikeway Mid-City 3.1 $1,408
Planning and Design costs are included in other
ligh-Priority Some i cos associated with other NPMC projects Complete
4.5 of 1223020 NPMC: Robinson Vorth Park -
Mid-City San Diego Design $1,516,75014 0.25 0.25 may be reflected in the costs for this project $3.632 Received Cycle 6 ATP for construction (1223020) wil go out to bid in 2024/25.
High-Priority Originally the alignment was a parallel bike boulevard 1o11 1223081 NPMC: Universily Ave Midhak San Diego i Design $4,318,572 14 2.9 2.8 through neighborhoods. The updated, current $3,477 Rocoived December 2023 CTC Bikeway alignment, is more direct on University Ave from Chamoune Ave to the City of La Mesa. sonstruction alocation. Will go out to bid Spring 2024.
EAP EAP 2013 Actual
EAP Current Project Actua Actua Current Origina Project Status % Complete Planned Planned I CIP Additional Notes Status
Project Name(s) Cost 2013 Comments 02.01.2022
Pront priorit Facility Type Prolet he No Numberts Project Area lurisdiction pry set Complet yation status (per star 1CP Duratio Associate Miles as of 02-01-2024 n (years)| (x1000)
Planning Design Construction | Date Opened
Renamed San Diego River Trail - Stadium Segment in
draft FY 19 budget. This connection of the San Diego
River Trail will be built as part of the SDSU/Mission
Class I 1223052 Sundom lotum. Sane Trai San Diego Design $828,644 = Valley development project. We are sharing our civil 72( Bikeway River Trail engineering design plans for connections at each end of the development site. ^Entire project to be built by Will be done by others as part of SDSU/Snapdragon redevelopment.
*This project not funded through construction in Mll be done as nat of adiacent 1223053 Santon olive Trail. Save Trail $2,816,296 14 original EAP list. Project most likely to be constructed $1,249 redevelopment. Coorination with a Bikeway Santee Design Only o othere a condition of development. Designs River Trail Cities of Son Diego and Santoe to
shared with Cities of San Diego and Santee. share design.
Coastal Rail This project constructed with the same CM team 1 of 1/ Coastal Rail Trail: Rose Trail San San Diego $20,636,000 working on the Mid-Coast trolley extension, Jacobs $27,523 Bikeway 1223016 Creek Bikeway Diego and MCTC. ( 100]
May-21
This project is closed out and designs have been Stalemate on RoV 1 of 11144300, Bayshore Bikeway: 88 Bayshore Vista/imperi ( Enviro $2,959,000 shared with the City of Chula Vista to condition upon $1.175 acquisition/easement: See Comments Bikeway 1129900 Main Street to Palomar Bikeway al Beach redevelopment. nima Coastal Rail Trail natal Ral 1.4 miles complete from Chesterfield Or. to Santa Fe Encinitas: E Street to Trail Encinitas Encinitas = Design $6,885,107 1.4 $9,248 Or. in spring of 2019. May.19| Complete.
Chesterfield Dr. Additional 0.5 miles from Santa Fe Dr. north to F St.
Coastal Rail Trail Coastal Rail see 1123017.
Class! | 1223017 Encinitas: E Street to 4 Design see above 0.5 slove Note, his biker say end 2o south of 5., are 700% Construction funding secured Bikeway Trail Encinitas Encinitas above
Chesterfield Dr south of E St. 100 Expected begin construction in FY25.
The City of Encinitas has undertaken street
Class i Coastal Rail Trail improvements on this segment of Coast Hwy that 1223018 Encinitas: Chestered Trai Encintas Encinitas Design $227,167 1.6 Bikeway ncludes Class IV bikeway, ^Project has been done by Drive to Solana Beach May-201 Completed by City of Encinitas. 100 (Ph)
Phase 1 San Marcos (1 mile), and Phase 2 County. 1 and 2) A-D (4 1223023, Inland Rail Trail Phases inland Rail Marcos/Vist Fela paintido (2 mile) comoloto Phaco 2R Vista 100 (Ph Env/Design $32,691,000 14 7.3 7.1 Feb-17 (Ph 1) $55,355,687 of 4) a/County of CIP 1223094) (1 mile) in bid phase. Phase 4 Vista 100 (Ph 1 and| Jan•21 (Ph 2) Phases 1, 2, and 3A complete. Phase 1223095 (CIP 1223095) (2 miles) in final design. 38 construction anticipated spring 65 (Ph 2) tbd (Ph 3 and
100] 4) 0 (Ph 3 and 4)| 2024
Class i Coastal Rail Trail Coastal Rail
13 Bikeway 1223024 Oceanside: Wisconsin Trail Oceanside $200,00014 0.4 0.4 $2,471 Ave. to Oceanside Bivd. Oceanside 100 Complete.
14 ClaSsI National $400,00014 0.4 0.6 $1,464
1144500 Sues Bonia Sigment Be Ponies =
Bikeway City 100 Spr-15 Completo.
Construction separated into two phases, first
Is tikeway 1143700 Bayshore Bikeway: 4& Bayshare Const $1,503,000 = m 2.8 Segment 4 from 32nd Street in San Diego to Vesta $6,379 Bikeway Street, and Segment 4B/S from Vesta Street to the 2015 and nal City National City Marina. 100| 2018| Completo.
This was originally part of the Project 18 alignment - H 15 Bikeway: Mission Valley to Normal Heights. See
1-15 Mid-City • *CIP 1223054 Central Ave Bikeway for 1.2 miles 16 Chea 123014 SkisCommuter Adams Ave to san Diego $9,341,000 14 associated from original 2.4 EAP mile total. The $14,288 Camino Del Engineering remaining 0.2 miles was taken off SR15 project due Rio S to scope adjustment and feasibility of making a
connection all the way to original termination at
intersection with San Diego River Trail. Aug-17
Class i 50|1 of: 1223055 Bayshore Bikeway - Bayshore $4,604,000 14 EAPist. Construction coit estimated i berginal $26,173 San Diego Env/Design
Bikeway Barrio Logan Bikeway $13,591,264 in 2013. 100 Construction 68% conciete. 48 Current EAP 2013
EAP Project Actual Current Origina
Priorit Facility Type Project Segme Numbers Project Name(s) Project Area Jurisdiction Planned Planned Cost 2013 Project Status % Complete count nt No. FY Start Complet Duration Status (per lEAP Comments Costhough aditonal No 0201-2024 02-01-2024 Status (years) EAP) Planning Design Construction Date Opened (x1000) High-Priority
Urban 1,284 1223057 Pershing Bikeway Construction underway with Class I path open to Balboa Park San Diego = Enw/Design S4,704,689 public. Segment 3 within Caltrans ROW moved to Bikeway $19,329 Construction 85% complete. Expected
Project 6A
open to pubic May 2024.
Caltrans retrofit and repaved the brickge in 2015(7A).
High-Priority This project includes the partially designed Segment 3 Urban GA, 7A 3. 1 of /Not in CiP Pershing and El Prado from Project GA (Pershing Bikeway 1223057) from Balboa Park San Diego Planning $3,190,472 15 =
Bikeway Florida Dr to B St where the original Downtown
Mobility Plan cycletrack alignment was planned (now
on C St. only). No activity.
Segments, including this one in downtown, are now
High-Priority part of City of San Diego Downtown Mobility Flan Downtown Mobility Downtown to Cycletrack network. Project 9 Segment 1 and a Urban T 8,9 Southeast San Diego Env/Design $901,083
1 of 3 Plan Phase 3 = portion of Segment 2(1 St) built by City of San Diego Bikeway connections
with SANDAG SGIP Cycle 4 funds, and Final Design is
complete for Project 8 Segment 1 (Park Bive). *Was
not funded through construction in original EAP list.
See Comments column.
High-Priority Downtown to Ready to Advertise for Construction. Originally 2-3 of Southeast San Diego included downtown segments which are now part of 1223058 Imperial Ave Bikeway Enw/Design 32.930,91715 3.6 the City of San Diego Downtown Mobility Plan, see Bikeway connections 34,000
above. *Was not funded through construction in
original EAP list. Construction contract awarded January
31. 2024.
High-Priority Segments, including these 5 in downtown, are now Downtown Mobility Downtown to part of City of San Diego Downtown Mobility Plan 1-5 Plan Phases 2 and 3 San Diego Env/Design $2,825,000 Bikeway connections
vicinal GAP list Soo Comments column.
San Ysidro to Construction groundbreaking anticipated February High-Priority Imperial Beach Imperial 2023. *Difference from original mileages for this Urban 13.21 1-5. 1 12230550 Bikeler to Bayshore Bayshore Beach / San project and the one below is due to their being of2 lanning $10,790,145 6.7 5.4
Bikeway Bikeway Diego merged, a more direct final alignment between $9,861 terminii determined, and some western segments in
Imperial Beach done by others. In construction. Estimated 24% San Ysadro to complete.
High-Priority Imperial Beach imperial "Segment 1 of Project 21 merged with the above CIP 2 of 2 Border to Bayshore Bayshore Beach / San Project 1223056, this project (segment 2) was Bikeway Bikeway Planning 5580,219 0.8 2.7
Bikeway completed by the City of Imperial Beach and planned Connection. with funds from SANDAG SIP Cycles 2 and 3. 100 100] Aug-21 See Comments colum
High-Priority Project fully designed and awaiting final permitting 1 of 1| 1223054 Central Ave Bikeway Terrace Dr/ San Diego from Caltrans and the City of San Diego. See CIP Central Ave Planning $1,406,808
Bikeway 1223014 SR15 Commuter Bikeway for 1 mile $1,336 associated from original 2.4 EAP mile total. Recelved Cycle 6 ATP for construction. 100 Wal go out to bid in 2024.
Vot in CIP San Diego River Trail - 1- San Diego Mill be included with Kumeyaay Corridor Bikeway 805 to Fenton River Trail San Diego Planning $1,741,275 0.5 0.5 Comprehenisve Multimodal Corridor Plan (CMCP).
Soe Comments column,
San Diego River Trail - San Diego \Pedestrian Hybrid Beacon on Mission Center Rd Short gap connections River Trail San Diego Planning $1,370,057 0.2 completed by City of San Diego with SANDAG ATGP Cycle 2 funds, also installed on Camino Del Este.
Dec-15] Complete.
Not in CIP | Coastal Rail Trail Coastal Rail A plan for this corridor was completed, designs were Encinitas - Leucodia to Trail Encinitas Encinitas Planning 34,763,309 1.7 1.7 developed for portions of this segmen and G Street construction has begun on the North Coast Highway 101 Strotecano noisett
Coastal Rail Soo Comments column,
25 Greway Not in CIP Coastal Rail Trail San •Was not funded through construction as part of Diego - UTC Trail San San Diego Planning $791.414| 1.4 = Original EAP list. Included with Coasts, Canyons, and Diego! Trail CMC2. ol thd See Comments column
49 EAP EAP 2013
EAP EAP EAP Current EAP Planned Project Status % Complete Project Planned Project Additional Notes Status
Project Name(s) Project Area Jurisdiction planned Cost 2013 Comments 02.01-2024 Priorit Facility Type Project Segme Number(s FY Start Complet Duration Status (per as of 02-01-2024 nt No. Miles (x1000)
(years) EAP) n (years) Planning | Design Construction Date Opened •Was not funded through construction as part of
1 of 1 Not in CIP Coastal Rail Trail San Trail San San Diego Erv/Design 52,508,499 3.4 3.4 original EAP list. Included with Coasts, Canyons, and Diego - Rose Canyon See Comments column.
Diego. resigns erecoped for the Terminal 2 San Diego
Coastal Rall Trail San
Diego - Pac Hwy (W. Coastal Rail Regional Airporty Authority's Terminal 1 expansion. 8 Class I Trail San San Diego Planning $4,050,421 16
Bikeway Washington Street to Ikely to be built by others during that project's Diego mplementation. See Comments column
Coastal Rail Part of City of San Diego Downtown Mobility Plan Class I Diego - Pac Hwy (Laurel Trail San San Diego Planning $7.628,464| Bikeway troot to Santa fo Cycletrack Network and constructed during Phase 2.
Diego Aug-20 See Comments column.
Costa Ral Tral San
Class i Diego - Pac Huy (Taylor Casal Rail Son Diego Planning $3,993,954 Bikeway 1223200 Street to W.
Diego 100
Washington Street
Attachment 3
SANDAG TransNet Extension Flow of Funds
FY 2009 - FY 2048*
Total Annual 1/2% Sales Tax Receipts
(Net of CDTFA Admin Fees)
2 % $250,000 2 %
Up to 2% to Bicycle, Pedestrian
SANDAG for & Neighborhood
Administration adjustment) Safety Program
Net Annual Revenues
38 % 1.8 % 2.1% 29.1 % 16.5 % 8.1 %
Major Corridor Major Corridor Local Project Smart Local Street & Transit New Major Corridor Capital Project EMP Growth Incentive Road Formula Services Transit Operations Projects EMP Program Funds**
75%* 25%* 20%* 80% *
2.5 % 3.25 % 94.25 %
Major Economic Specialized Services Senior Pass/Subsidies/ Project Benefit Project for Seniors & Grant Operations/ Mitigation Fund Mitigation Disabled (ADA) Program Capital Per SRTP
90.3%* 9.7%*
Percentage/Dollar distribution specified in Ordinance
50% Match
For Financing
State/Fed Costs Percentages based on 2002 dollar estimates in TransNet Extension Ordinance and Expenditures Plan Funds
* * Formula Distribution to local jurisdictions based 213 on population and 1/3 on maintained road miles with a $50,000 base per jurisdiction.
* On May 14, 2021, the SANDAG Board of Directors, acting as the San Diego County Regional Transportation Commission, approved an adjustment to increase the administrative expense limitation from 1% to 2% beginning in FY 2022.
Revised May 2021
51 Attachment 4
CIP Total Expenditure Report
SANDAG Expenditures: As of 2/1/2024
Total Through
Ordinance ID Segment CIP Project Name End Date
(x1000)
49 1129900 Bayshore Bikeway: 8B Main Street to Palomar $1,174 49 1143700 Bayshore Bikeway: Segments 4 & 5 $6,379
49 1144300 Bayshore Bikeway: Segments 7 & 8A $2,412
1144500 Sweetwater Bikeway: Plaza Bonita Segment $1,464 49 49 1223014 SR 15 Commuter Bike Facility $14,288
49 1223016 Coastal Rail Trail San Diego: Rose Creek $27,523 49 1223017 Coastal Rail Trail Encinitas: E Street to Chesterfield Drive $9,248 49 1223018 Coastal Rail Trail Encinitas: Chesterfield Drive to Solana $5 Beach
49 1223020 North Park/Mid-City Bikeways: Robinson Bikeway $3,632 1223021 Bicycle Facilities - Normal Heights to Balboa Park $9 49 49 1223022 Uptown Bikeways: Fourth and Fifth Avenue Bikeways $23,973 49 1223023 Inland Rail Trail $54,054
49 1223024 Coastal Rail Trail: Phase 2B - Oceanside $2,471 49 1223025 Regional Bikeway Program PE $348
49 1223052 San Diego River Trail: Stadium Segment $730
1223053 San Diego River Trail: Carlton Oaks Segment $1,249 49 49 1223054 Central Avenue Bikeway $1,336
49 1223055 Bayshore Bikeway: Barrio Logan $26,173
49 1223056 Border to Bayshore Bikeway $9,861
49 1223057 Pershing Drive Bikeway $19,329
1223058 Downtown to Imperial Avenue Bikeway $4,000
49 49 1223078 North Park/Mid-City Bikeways: Landis Bikeway $1,408 49 1223079 North Park/Mid-City Bikeways: Howard Bikeway $1,411 49 1223080 North Park/Mid-City Bikeways: Monroe Bikeway $197 49 1223081 North Park/Mid-City Bikeways: University Bikeway $3,477 49 1223082 North Park/Mid-City Bikeways: Georgia-Meade Bikeway $26,192 49 1223083 Uptown Bikeways: Eastern Hillcrest Bikeways $4,145 49 1223084 Uptown Bikeways: Washington Street and Mission Valley $2,948 Bikeways
49 1223085 Uptown Bikeways: Mission Hills and Old Town Bikeways $173 1223086 Uptown Bikeways: Park Boulevard Bikeway $174
49 1223087 North Park/Mid-City Bikeways: Orange Bikeway $1,248 49 49 1223093 GObyBIKE San Diego: Construction Outreach Program $1,461 1223094 Inland Rail Trail Phase 3 $2,103
49 1223095 Inland Rail Trail Phase 4 $114
49 1223096 Bayshore Bikeway: Barrio Logan Phase 2 $19
49 1223097 Bayshore to Imperial Bikeway $3
49 49 1223200 Pacific Coast Highway/Central Mobility Bikeway Grand Total $254,732
* Dollars In Thousands
52 SANDAG
TransNet Independent Taxpayer Oversight Committee Item: 7 February 14, 2024
Proposed FY 2025 ITOC Annual Operating Budget
Overview Action: Recommend
The TransNet Extension Ordinance states that costs The ITOC is asked to recommend that the incurred in administering TransNet Independent Board of Directors approve the proposed Taxpayer Oversight Committee (ITOC) activities are to ITOC Operating Budget as part of the be paid from TransNet sales tax proceeds and audited FY 2025 SANDAG Program Budget. annually. The TransNet Extension Ordinance also
specifies that the responsibilities of the ITOC include conducting the annual fiscal and compliance audits, Fiscal Impact:
overseeing triennial performance audits, and The proposed FY 2025 ITOC operating developing the associated year-end report for the budget is $396,689 which is proposed to be Board of Directors and the public. Mileage, covered by the FY 2025 TransNet allocation. advertisement, postage, and consulting service Schedule/Scope Impact:
expenses, salaries, and benefits incurred for staff The ITOC operating budget funds the involved in administering ITOC activities are also administration of ITOC activities, including eligible ITOC costs per the TransNet Extension conducting the annual fiscal and compliance Ordinance. audits; overseeing triennial performance
audits; and developing the associated year-
Key Considerations
end report. Mileage, advertisement, postage,
The TransNet Extension Ordinance states that an consulting service expenses, salaries and amount of no less than $250,000 (2002 dollars), plus benefits incurred for staff involved in inflation, may be allocated from TransNet revenues to administering ITOC activities also are support ITOC activities. For FY 2025, this equals included. $515,144. The proposed FY 2025 ITOC operating
budget (Attachment 1) is $396,689, which is lower than the estimated allocation amount for FY 2025.
The FY 2025 ITOC operating budget includes the total estimated expenses related to the ITOC Program except for the cost associated with the TransNet Triennial Performance Audit which is expected to conclude in FY 2024. Any savings in the FY 2025 budget would be proposed to be used to pay for future years' expenses including FY 2027 TransNet Triennial Performance Audit and direct staff hours to support implementation of FY 2024 Triennial Performance Audit.
Activities included in the FY 2025 ITOC operating budget include the FY 2025 annual fiscal audits. In addition, direct staff hours spent in support of ITOC responsibilities which may include the following:
• conducting the annual fiscal audit and development of the ITOC annual report; • meeting interpretation services; and
set-aside for outside consulting services consistent with prior ITOC direction.
Next Steps
The Board of Directors is scheduled to consider approval of the draft FY 2025 Overall Work Program Budget, including the proposed ITOC operating budget, at its March 22, 2024, meeting.
Susan Huntington, Director of Financial Planning, Budgets, and Grants Attachment: 1. ITOC Annual Project Funding Work Element FY 2025 Proposed Budget 53 Attachment 1
Work Element: 1500200 Independent Taxpayer Oversight Committee Program Area of Emphasis: TransNet
Annual Project Funding 1
FY 2023 Actual FY 2024 Estimated Actual FY 2025 Budget
TransNet ITOC Program $461,610 $504,034 $515,144
Total $461,610 $504,034 $515,144
Project Expenses
FY 2023 FY 2024 FY 2025
SANDAG Salaries, Benefits, $135,298 $130,512 $233,178
Indirect?
Annual Fiscal Audits $133,524 $122,485 $122,485
Triennial Performance Audit $0 $320,000 $0
Other Direct Costs? $0 $2,066 $2,130
Advertisement $2,337 $1,833 $1,890
Postage/Delivery $0 $236 $243
Meeting Interpretation Services $7,088 $9,600 $9,898
Reserve for Outside Consulting
Services4 $1,251 $26,057 $26,865
Total Project Expenses $279,498 $612,789 $396,689
Carryover Balance $173,112 $362,404 $260,829
Net Difference $182,112 $(108,755) $118,455
Current Year Interest Earned® $7,180 $7,180 $7,180
TOTAL $362,404 $260,829 $386,464
' Annual revenue is $250,000 ($2000) escalated annually by the most current Consumer Price Index (CPI). 2 Salaries, benefits, indirect costs for SANDAG staff supporting the ITOC. 3 Mileage and parking reimbursement for ITOC members.
4 Reserve started at $20,000 in FY 2013 with CPI adjustment each subsequent year. 5 Canyover balance is transferred from the prior year and includes a net difference between annual funding and expenses, prior year unspent funding, and may include interest earned.
6 Current Year Interest Earned will be added to "Carryover TransNet Revenue - unbudgeted" in future years. 7 Year-end carryover balance.
Objective
The obiective of this work element is to fulfill the requirements of the TransNet Extension Ordinance, which authorizes the Independent Taxpayer Oversight Committee (ITOC) to oversee a number of functions relating to independent oversight of the TransNet Program.
Emphasis in FY 2025 will be implementation of TransNet Ordinance amendments, updates to ITOC Bylaws and related SANDAG Board Policy amendments, overseeing implementation of recommendations from the FY 2024 TransNet Triennial Performance Audit, and continued implementation of recommendations from the FY 2021 TransNet Triennial Performance Audit, including the Transportation Performance Framework; and providing oversight for the continued implementation of the TransNet Program.
54 Previous Accomplishments
Previous accomplishments include overseeing the annual fiscal and compliance audits, implementation of the FY 2018 and FY 2021 TransNet Triennial Performance Audit recommendations, and review of the TransNet Program Update.
Justification
The ITOC Program fulfills a voter mandate in the TransNet Extension Ordinance.
Project Manager: Zara Sadeghian, TransNet ITOC and Program Oversight Committee(s): Transportation Committee
Working Group(s): Independent Taxpayer Oversight Committee Products, Tasks, and Schedules for FY 2025
Task Total Task Product Completion
Task Description
No. Date
Product
1 $69,953.00 Review the TransNet Program Update and oversee implementation of Status reports on 6/30/2025 recommendations from the FY 2024 TransNet Triennial Performance progress of Audit. implementing Triennial
Perform
$23,318.00 Produce annual ITOC report in accordance with the TransNet Extension 2025 ITOC Annual 6/30/2025 Ordinance. Report to the Board of
Directors
$172,668.00 Provide additional review services by independent consultant, as Independent report to 6/30/2025 appropriate the Board of Directors
4 $84,114.00 Oversee annual TransNet fiscal and compliance audits and present FY 2024 TransNet 6/30/2025 recommendations and findings, if any, to the ITOC, Transportation Fiscal and Committee, and SANDAG Board of Directors. Compliance Audit Report
$46,636.00 Continue implementation of recommendations from the FY 2018 and FY Reports on 6/30/2025 2021 TransNet Triennial Performance Audits. implementation of recommendations
from the prior
TransNet
Performance Audits
Future Activities
Implementation of the FY 2024 TransNet Triennial Performance Audit, as well as continued implementation of the FY 2018 and FY 2021 TransNet Triennial Performance Audit recommendations and providing oversight for the continued implementation of the TransNet Program.
55 SANDAG
Item: 8
TransNet Independent Taxpayer Oversight Committee
February 14, 2024
2024 ITOC Annual Report: Initial Input
Overview Action: Discussion
In accordance with the TransNet Extension Ordinance, The ITOC is asked to discuss the proposed one of the responsibilities of the TransNet Independent format and content for the 2024 ITOC Annual Taxpayer Oversight Committee (ITOC) is to prepare Report. an annual report to the Board of Directors and the
public, presenting the results of its annual fiscal and Fiscal Impact:
compliance audits and its triennial performance audits.
The most recent annual report (2023 ITOC Annual Efforts to develop the ITOC annual report are Report) was presented to the Board of Directors in funded through Overall Work Program October 2023. Element Nos. 1500100 and 1500200 in the
FY 2024 Program Budget and will be
Key Considerations supported by the services of a copywriting and editing services firm.
Enhancement of communication practices has been
one of the ITOC's goals. Attachment 1 includes the Schedule/Scope Impact:
2023 ITOC Annual Report as reference. Consistent with TransNet Extension SANDAG staff is seeking feedback from the ITOC on Ordinance provisions, upon completion by the content and updates to the 2024 ITOC Annual the ITOC, the annual report is presented to the Board of Directors and the public.
Report. The ITOC Annual Report generally contains
the following items:
• Letter from the Chair • Funding and Project Highlights • ITOC and SANDAG Goals • Key Initiatives
• Triennial Performance Audit • Grants and Local TransNet Funding • Fiscal and Compliance Audit • Public Participation
Additionally, 2024 was the 35th anniversary of TransNet. A section can be added to the 2024 ITOC Annual Report to highlight the regional impact of the transportation improvement and environmental conservation projects that TransNet Program has supported.
Next Steps
Pending ITOC feedback, staff will begin to prepare a draft annual report for consideration by the ITOC.
Staff will return with a draft annual report for the ITOC's review and feedback in spring 2024. Consideration of the final draft annual report is scheduled for the June 2024 ITOC meeting. ITOC Chair Jonathan Frankel will present the final 2024 ITOC Annual Report at the June 2024 Board of Directors meeting.
Susan Huntington, Director of Financial Planning, Budgets, and Grants Attachment: 1. 2023 ITOC Annual Report
56 Attachment 1
SANDAG
ITOC IX
Independent Taxpayer
Oversight Committee
2023
ANNUAL REPORT
SANDAG.org/TransNet
57 Contents Letter from the Chair
Letter from the Chair... Our mission is to ensure accountability and transparency in TransNet projects - to be stewards of valuable public tax dollars. As we conclude Fiscal Year New ITOC Goals for FY 2023/24......... 2 2023 and look forward to the future, this remains foremost in our minds.
Draft Scope of Work for the FY 2024
This past year we have worked hard to develop the scope of our next Triennial Triennial Performance Audit........3-4 Performance Audit, or TPA, the primary instrument we use to ensure the Triennial Performance Audits proper and transparent use of tax dollars for TransNet, the San Diego region's Progress (FY 2021 and FY 2018).....5-6 half-cent sales tax for transportation improvements.
Fiscal and Compliance The 2025 Regional Transportation Plan, under development now by the San Audit Results.... 7 Diego Association of Governments (SANDAG), will advance the 2021 Regional Plan and inform what our next TPA looks like because it will shape future Funding Highlights... ....8
TransNet priorities.
Project Highlights... .9-12
As we prepare for our next TPA, we are also looking at fundamental changes How to Get Involved... ....13 to the makeup of the Independent Taxpayer Oversight Committee (ITOC).
Discussions are ongoing about how to add new expertise to our oversight committee and make it more reflective of our larger community - because everyone should have a voice in how our transportation future unfolds. In this ITOC Members* regard, we are currently discussing broadening ITOC membership by two members. We are exploring the idea of adding a representative of emerging JONATHAN FRANKEL transportation technologies, which are playing such a big role in our Chair, Real Estate/Land Economics evolving transportation system. We've also discussed adding a member who Term ends May 2024 represents a regular user of our regional transportation system - because PEDRO ORSO-DELGADO no one knows better how well our regional transportation system works Vice Chair, Construction Project than someone who uses it every day. In the coming year, ITOC's members Management will continue discussing how to move forward with this expansion of its Term ends May 2025 membership.
LORRAINE AHLQUIST This Annual Report reviews our accomplishments of the past fiscal year, while Biology/Environmental Science keeping an eye on the future. In the following pages you will find a review of Term ends May 2027 progress on goals that the ITOC and SANDAG set in FY 2022. These include increasing communication with the transit agencies, municipalities, and MARYAM BABAKI other recipients of TransNet funds; working with SANDAG to follow through Municipal/Public Finance on TPA recommendations; and increasing the diversity of ITOC members - Term ends May 2027
as I mentioned above.
LES HOPPER
Following this discussion of goals is our review of ITOC progress on Triennial Engineer/Transportation Performance Review recommendations.
Term ends May 2024
Next, you will find our annual reports of fiscal and compliance audit results, SUNNIE HOUSE as well as our annual presentation of TransNet funding highlights.
CEO, Private Sector
Term ends May 2025 Last, this Annual Report features some of the concrete accomplishments of the TransNet Program, in partnership with SANDAG and its many
TRACY DRAGER
stakeholders. Part of ITOC's role is to show the public what its tax dollars are San Diego County Auditor
producing, and this Annual Report highlights progress on numerous projects (non-voting member)
around the region, including the Otay Mesa East Port of Entry, the Central Mobility Hub, stabilizing coastal bluffs in Del Mar for the LOSSAN rail corridor, and other initiatives. Also reviewed are key initiatives such as Digital Equity and the Regional Bike network, and grants and local transportation funding *According to the ITOC Bylaws, members of for environmental mitigation, promoting active transportation, and other the ITOC are required to attend at least 50%
efforts.
of the regular ITO meetings, not including
special meetings or subcommittee meetings, As the Regional Plan's vision for our transportation future evolves, taxpayers in one calendar year. All ITO members have deserve to be kept informed on how tax funds are being spent. We at the met the established standard for attendance
for calendar year 2022. In addition, all members Independent Taxpayer Oversight Committee will be there to ensure that participate in subcommittees established public funds are spent wisely, and that projects progress on time and within to focus on ITOC activities such as triennial budget. In the end, we play a vital role in helping to realize our collective performance audits, annual fiscal and vision for transportation and personal mobility. compliance audits, state of the commute
reports, and ITOC goals, among others. Best Regards,
Jonathan Frankei, ITOC Chair
ITOC | 2023 Annual Report 58
New ITOC Goals for FY 2023/24
The ITOC and SANDAG are pursuing goals to improve communication, transparency, and accountability for the general public and TransNet's many other stakeholders. Below is a review of four goals and progress to date adopted by the ITOC. To track more recent updates, please go online at SANDAG.org/itoc.
ITOC Goals for FY 2023
#1 #2
Invite transit agencies, municipalities, and other Enhance effectiveness and impact of ITOC in recipients of TransNet funds to attend and achieving its mission to ensure voter mandates highlight their TransNet program successes and/or are carried out and develop recommendations challenges in delivering TransNet-funded projects for improvements to the financial integrity and at ITOC meetings. The goal is for at least one performance of the program. presentation per quarter in FY 2023.
Progress
Progress The ITOC Subcommittee to Consider TransNet
The cities of Chula Vista and San Diego, as well as Ordinance Amendments drafted potential SANDAG staff, have made presentations to ITOC on amendments to the TransNet Extension Ordinance local transportation projects funded with TransNet related to ITOC membership and the selection proceeds. Other agencies, including Caltrans, have process. Draft amendments were presented to the also been invited to present to the ITOC. SANDAG Board of Directors for first and second readings in January 2023. However, the motion did
not reach the required vote. Discussion on next steps
has continued within the ITOC
SANDAG Goals for ITOC
#1 #2
Consider how the TransNet program is supporting Work closely with ITOC to develop and implement the 2021 Regional Plan priorities and policies. streamlining measures to enhance communication practices that continue increasing transparency
Progress and accountability, and simplify information
provided to make it more digestible for ITOC
A Subcommittee of the Mobility Working Group has members and the public. been formed to discuss amendments to the TransNet
Extension Ordinance. The subcommittee has met
several times and discussed various topics, including Progress Transit Operations and Transit Operator Eligibility; SANDAG staff has been working with the ITOC to Bicycle, Pedestrian, and Neighborhood Safety; the improve communication practices and efficiency Local Streets and Road Program; and Dig Smart. Other of the ITOC and its subcommittee meetings. As topics are to be discussed in the future, continuing the a result, the number of ITO subcommittees was effort to better align the TransNet program with the reduced, and reporting in meetings was made more Regional Plan. streamlined and time efficient. The result has been that meetings and meeting records are now more
accessible, and digestible, for the public.
ITOC | 2023 Annual Report 2 g
Draft Scope of Work for
the FY 2024 Triennial
Performance Audit
On July 1, 2023, the ITOC began conducting
its sixth Triennial Performance Audit (TPA).
Mandated by the TransNet Extension Ordinance,
the TPA helps ensure that all voter mandates are
carried out, and it develops recommendations
to improve the program's financial integrity and
performance. SANDAG
The TPA evaluates the performance of SANDAG TransNet Program and other agencies involved in implementing
TransNet-funded projects and programs.
Build NCC
These agencies include Caltrans, San Diego
Metropolitan Transit System (MTS), North County UNDER CONSTRUCTION Transit District (NCT), and a representative
sample of consultants used by these
transportation agencies. The TPA also examines SANDAG.org the performance of the ITOC, the County of San
Diego, the City of San Diego, and, as needed,
a representative sample of the other 17 Cities
of the San Diego region and key stakeholder
groups. Interviews may be conducted with third
parties, including subject matter experts, peers
from similar agencies, and members of citizen
advisory groups, to provide further insights into
best practices.
The TPA reviews project delivery, cost control,
schedule adherence, and related activities. It
considers changes to contracting, construction,
permitting, and related processes that could
improve the efficiency and effectiveness of
TransNet spending.
What does the TPA do?
Make recommendations for improving the
efficiency and effectiveness of expenditures
under the TransNet Extension Ordinance
Who conducts the audit?
• The ITOC
• Independent Performance Auditing firm
under the direction of the ITOC
What time period will the audit
review?
The three-year period between July 1, 2020 and
June 30. 2023
When will the Sixth TPA be
completed?
June 30, 2024
ITOC | 2023 Annual Report 60
The FY 2024 TPA will tentatively focus on 10 objectives* Objective 1 Review progress on TransNet projects, the 2021 Regional Transportation Plan, and the 5 Big Moves including proposed Ordinance amendments and timing.
Objective 2 Measure the impacts of SB 375 on project prioritization and consistency with the TransNet Extension Ordinance.
Objective 3 Evaluate the effect of Board governance and the use of AB 805 on TransNet and project delivery.
Assess status of funding (shortages, use of state and federal money, etc.), use of cost Objective 4
escalation methodology, and SANDAG administration costs.
Objective 5 Review project delivery performance data for design, construction, permitting and other procedures.
Objective 6 Evaluate methodology for recording metrics and outcome measurements.
Identify process changes in contracting, construction, permitting, and other procedures that Objective 7 could improve the efficiency and effectiveness of the TransNet program as applicable within the areas identified by the ITOC.
Objective 8 Track progress of the Smart Growth Incentive Program.
Assess the status of implementation of the recommendations from the fifth Triennial Objective 9 Performance Audit, in addition to any outstanding recommendations from previous audits, and the effectiveness of these prior recommendations.
Objective 10 Evaluate the efficiency and effectiveness of the ITOC, including adherence to its bylaws.
What will the completed audit deliver?
1. Entrance and exit conferences.
2. A listing of interviewees, a schedule, and summaries of interviews and site visits.
3. A proposed Work Plan, including a proposed audit methodology.
4. Memorandums summarizing items reviewed and key issues identified.
Draft and final reports in accordance with TransNet Extension Ordinance requirements.
6. Draft and final presentations at Board, Policy Advisory, and/or ITOC meetings, as necessary.
7. A memorandum that specifies recommendations for potential analysis, and also for increasing the efficiency of future performance audits.
Points of contact for the audit and coordinating the effort • Each Agency reviewed will have a point of contact.
• Consistent with policy set by the SANDAG Board of Directors, it will be a goal not to duplicate efforts between any audits undertaken by the agency's Office of the Independent Performance Auditor (OIPA), and the Triennial Performance Audit undertaken by the ITOC.
The Sixth TPA, and future audits
The last five TPAs conducted broad-sweeping reviews of all TransNet areas. The Sixth Triennial Performance Audit will focus on fewer areas, which will allow for deeper analyses of the ones chosen. Future audits will look further into subjects not covered by the 2024 TPA, including those pertinent to the upcoming 2025 Regional Plan. * This is a draft scope of work for the upcoming 2024 TPA and is subject to the ITO's final determination.
ITOC 2023 Annual Report 4 61
Triennial Performance Audits Progress (FY 2021 and FY 2018) The Independent Taxpayer Oversight Committee (ITOC) provides an increased level of accountability for expenditures made under the TransNet Extension Ordinance. In addition to conducting independent annual fiscal and compliance audits, the ITOC also conducts Triennial Performance Audits (TPAs) of SANDAG and partner agencies involved in the implementation of TransNet-funded projects and programs in order to provide recommendations for improvement. The most recent Triennial Performance Audits were conducted in FY 2018 and FY 2021, and the next TPA is scheduled for FY 2024.
FY 2021 TPA Implementation Status
Over the last year, SANDAG has completed several audit recommendations including a critical and high priority recommendation. These include:
• Creating a TransNet Dashboard on the new SANDAG website, which has improved transparency on the progress and accomplishments of TransNet Projects.
Incorporating SANDAG conflict-of-interest policy clarifications in the ITOC member recruiting materials, which will be used for future recruiting.
Progress updates are brought quarterly to the ITOC, Item 7 at the April 12 meeting being the most recent. • Implemented O In progress O Upcoming
Major Corridor Capital Identify whether the remaining TransNet Extension Ordinance projects will be Construction part of the 2021 Regional Transportation Plan (Summer 2023).
With only 17 years of the 40-Year TransNet • Develop crosswalks to compare planned major corridor projects outlined in Extension Ordinance timeframe elapsed, the TransNet Extension Ordinance with current improvement implementation SANDAG has completed many projects. status (Summer 2023).
However, delivery of remaining future
projects depends on 2021 Regional
Transportation Plan adoption.
Finance Develop a formal process to address identified issues during annual Plan of Through renewed focus on improving Finance updates (Summer 2023). revenue forecasts and expenditure • Develop a risk-based approach for QA/QC testing to strengthen documentation models over the past few years, SANDAG of employed QA/QC activities and their results (Summer 2023). identified a funding shortfall for the
TransNet Extension Ordinance Major Enhance organization of Peer Review Process supporting documents to better Corridor Program that needs to be link plans, actions taken, and how issues were addressed (Summer 2023). addressed. • Describe to the Board the QA/QC sampling methodology, limitations of the data, and associated cost-benefits or risks of the approach (Summer 2023). • Continue efforts to formalize and implement a mature system of QA/QC policies and procedures (Summer 2023).
Compliance, Transparency, Report on actual progress and accomplishments on project scope, cost, and Accountability schedule and outcomes periodically and on a regular basis (Spring 2022).
SANDAG demonstrated its commitment Demonstrate compliance with the TransNet Extension Ordinance by identifying, to compliance with TransNet Extension tracking, and reporting on various requirements and provisions (Spring 2024).
Ordinance provisions and focused efforts
toward continued improvement, but it Implement shorter-term performance reporting while waiting on could further incorporate certain leading Transportation Performance Management Framework (Spring 2024). practices to better demonstrate its Create summarized graphics to indicate TransNet Extension Ordinance status accountability to taxpayers. based on data in the quarterly reports (Spring 2024).
AB 805 impacts
Assembly Bill 805 affected the composition of the SANDAG Board and its voting structure. The weighted voting changes, however, did not significantly impact the delivery of TransNet Extension Ordinance programs and projects.
No recommendations for this chapter.
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ITOC | 2023 Annual Report
• Implemented • In progress O Upcoming
Safety • Consider identifying a regional safety planning coordinator to synchronize safety With safety as a stated TransNet efforts of the region (Summer 2023).
Extension Ordinance goal, SANDAG • Prepare a regional safety plan to address regional trends, road conditions, and conducted regional safety planning driving behaviors (Summer 2024). efforts, and bicycle and pedestrian
safety improved in San Diego County • Consider ways to encourage emergency planning and response entities to include over the past few years. SANDAG in discussions and local plans related to emergency capacity (ongoing).
Bike Early Action Program Estimate the quantifiable impact of permit delays on the overall Regional Bikeway Program (Summer 2023).
The Bike Early Action Program (EAP)
experienced significant delays that will • Work with the Board to rectify critical Bike EAP project permit issues (ongoing). likely impact its 2024 completion target • Develop a crosswalk that compares planned Bike EAP projects outlined in the and may require changes to future
Regional Bikeway Program projects. Regional Bikeway Program with project segment status (ongoing). • Revise quarterly status reports to compare progress against initial Bike EAP plans for costs, schedules, and miles expected (ongoing). • Modify TransNet Dashboard data or Board reports to compare actual project data against baseline budgets and schedule (Fall 2023).
D Track and analyze more granular project milestones within Bike EAP project phases (ongoing).
• Provide extra scrutiny on less certain Regional Bikeway Program funding during updates to the Plan of Finance (Summer 2023).
• Ensure that the TransNet Dashboard Bike Early Action Program schedule and budget fields include explanatory notes on why particular data may not be applicable to a project stage (Fall 2022).
ITOC Incorporate conflict-of-interest policy clarifications from ITOC new member With recent trends in transportation on-boarding resources into recruitment materials (Winter 2022). planning broadening the spectrum of • Modify the TransNet Extension Ordinance language to be consistent with the topics and related challenges beyond service limits for all members (Winter 2022). freeway expansion or adding transit
routes, additional member expertise areas Consider expanding the ITOC qualifications to include knowledge of emerging could further strengthen ITOC's efforts in topics SANDAG represents before the committee (Winter 2023). advising SANDAG and providing taxpayer
Explore options and feasibility of moving ITOC candidate screening and oversight of the TransNet Extension
selection process outside of the SANDAG Board to maximize transparency and Ordinance.
minimize any bias (Winter 2023).
FY 2018 TPA Progress on Critical Audit Recommendation
In addition, certain critical audit recommendations from the FY 2018 TransNet Triennial Performance Audit are in progress as follows.
Performance Framework
Establish a comprehensive performance framework by:
Setting targets to measure TransNet performance against TransNet Extension Ordinance goals, in line with federally mandated deadlines or at a faster pace. At minimum, some narrative could accompany performance reporting to help others understand whether data and results were favorable or unfavorable.
Capturing performance outcome data related to safety metrics, pavement condition, and bridge condition for highways, local roadways, and bicycle and pedestrian modes.
Progress updates are brought quarterly to the ITOC, Item 7 at the April 12 meeting being the most recent.
ITOC | 2023 Annual Report 6 63
Fiscal and Compliance Audit Results
Requirement Audit Results
As required by SANDAG Board Policy No. 031, each recipient Revenues for each recipient agency were recorded, and agency is required to account for TransNet activities in a expenditures reported by all recipient agencies were allowable separate fund, or if an alternative approach is used, it must in accordance with the TransNet Ordinance, TransNet Extension be approved by SANDAG. Ordinance, and SANDAG Board Policy No. 031.
In accordance with Section 8 of the TransNet Extension All local street and road recipient agencies met their Ordinance, each recipient agency receiving revenues Maintenance of Effort (MOE) requirement, with the exception pursuant to Section 4(D) shail annually maintain, at a of cities of Del Mar and San Marcos, for the year ended June 30, minimum, the same level of local discretionary funds 2022, ensuring that TransNet revenues were used to augment expended for street and road purposes on average over the and not supplant local revenues. last three fiscal years (FY) completed prior to the operative date of the TransNet Extension Ordinance. CORRECTIVE ACTION:
The Cities of Del Mar and San Marcos will have the next two years to make up an FY21 shortfall, and the City of San Marcos will have the next three years to make up the additional shortfall incurred in FY22.
In accordance with the 30% Rule, a recipient agency that All reporting agencies, with the exception of the cities of National maintains a balance of more than 30 percent of its annual City, were in compliance with Board Policy No. 031, apportionment (after debt service payments) must use Rule #17, Section IV, requiring TransNet recipient agencies to the remaining balance to fund projects. SANDAG will defer maintain a fund balance that does not exceed 30 percent of its payment until the recipient agency's Director of Finance, or annual apportionment. equivalent, submits a certification that the unused balance has fallen below the 30 percent threshold, and will remain CORRECTIVE ACTION:
below the threshold until such time that a new threshold is The City of National City has certified that it is currently below the 30% threshold and will continue to remain below the determined.
threshold for the remainder of fiscal year 2023.
As specified in Section 2(C)(1) of the TransNet Extension SANDAG appropriately allocated TransNet revenues - at Ordinance, at least 70% of the revenues provided for local least 70 percent for congestion relief purposes and up to 30 street and road purposes should be used for congestion percent for maintenance purposes - in accordance with the relief, and the cities may not spend more than 30% for Ordinance. maintenance purposes.
All recipient agencies were in compliance with this requirement.
In accordance with Section 9(A) of the TransNet Extension Each city and the County of San Diegounder the Regional Ordinance and Expenditure Plan, each local agency in Transportation Congestion Improvement Program were the San Diego region shall contribute a minimum of compliant with the TransNet Extension Ordinance and Board $2,000, subject to an annual adjustment based upon an Policy No. 31, except for the cities of Coronado, Escondido, index, in exactions from the private sector, for each newly La Mesa, and Lemon Grove. constructed residential housing unit in that jurisdiction to the RTIP. However, each jurisdiction may use their own fee CORRECTIVE ACTION:
schedule, as long as the fees are at a minimum the adjusted The cities of Coronado, La Mesa, and Lemon Grove are in the amount as approved by the SANDAG Board of Directors process of collecting their shortfalls. The City of Escondido has annually. The RTCIP revenue is to be used to construct recovered all under-collected exaction fees. improvements to the Regional Arterial System.
In accordance with the TransNet Extension Ordinance, in Transit operators appropriately limited the increase in operating order for transit operators to maintain eligibility for receipt costs per revenue vehicle hour for bus and rail to the increase in of funds, the operator must limit the increase in its total CPI. operating cost per revenue vehicle hour for bus or
revenue vehicle mile for rail services from one fiscal year to All transit operators were in compliance with this requirement. the next, to no more than the increase in the Consumer Price Index (CPI) for San Diego County over the same period.
7 64
ITOC | 2023 Annual Report
Funding Highlights
TransNet Dollars, TransNet Focuses Resources
Compared with Other on Improving Major
Sources Corridors and Local Street
The 2023 Regional Transportation Improvements
Improvement Program (RTIP) is a TransNet funding between FY 2023 and FY multi-billion-dollar program of projects 2027 is expected to improve the quality of planned by SANDAG and jurisdictions life for people in the region as the program throughout the county between FY 2023 focuses funding on major corridors where and FY 2027. The RTIP relies on several many people travel to and from work, and sources of funding, which include local streets and roads where people live, TransNet funds and contributions from shop, and go to school. Between FY 2023 the federal government, the State of and FY 2027, more than $300 million is California, and other local sources. The earmarked for improving major corridors ITOC reviews projects proposed for in the region such as I-5, I-15, and SR78, funding with TransNet funds as part while $669 million is planned for local of its review of the RTIP. Local sales tax street improvements. Meanwhile, more dollars raised by TransNet represent than $181 million is planned for improving a relatively stable source of funding the regional transit system; more than However, when compared with the $153 million will go to operating Bus Rapid total number of dollars contributed by Transit and rail service; and $32 million federal, state, and other funding sources, is budgeted for bicycle, pedestrian, and TransNet represents about 25 percent of neighborhood safety improvements. More the approximately $5.91 billion projected than $34 million is earmarked for the between FY 2023 and FY 2027. region's environmental mitigation program.
TransNet and Other Funding
FY 2023-FY 2027
Transit System
Improvement
Local/Private 13%
26% ($181.1M) Bus Rapid Regional Environmental
Transit/Rail Mitigation Program, 3%
($1.55B) Operations
Major Corridor ($34.3M)
11%
22% Bicycle, Pedestrian, and
($153.5M)
($302.1M) Neighborhood Safety, 2%
State TransNet ($32.7M)
21% 24%
Smart Growth Incentive
($1.24B) ($1.40B) Program, 1%
($13.1M)
Local Street Americans with
Federal Improvement (LSI) Disabilities Act, 0.3%
29% 48% ($43M)
($1.72B) ($669.1M) Border, 0.2%
($3.5M)
Senior Services, 0.2%
($2.2M)
Total = $5.91 Billion Total = $1.40 Billion
Source: 2023 Regional Transportation Improvement Program ITOC | 2023 Annual Report 8 65
Project Highlights
SANDAG allocates millions of dollars annually to make the region's streets safer, give people more travel choices, better connect places throughout the region, and protect the environment. TransNet funding* plays an important role in moving these initiatives forward and bringing the Regional Plan to life through priority projects and key initiatives. Local jurisdictions, nonprofit organizations, community groups, and transportation partners also receive funding through the TransNet half- cent sales tax and competitive grant programs. Ongoing revenues from the TransNet Extension Ordinance pave the way for a transformative transportation system. ITOC provides an increased level of accountability and transparency for TransNet expenditures and helps ensure that projects are progressing on schedule and on budget.
PRIORITY PROJECTS
SANDAG connects people, places, and innovative ideas with solutions that benefit the region's unique and diverse communities. Priority projects represent the big ideas in the Regional Plan.
Otay Mesa East Airport Transit Smart Connections
Port of Entry Connection: Central Smart Connections use data and The Otay Mesa East Port of Entry Mobility Hub technology to provide people with choices as they travel to the places
will be a modern border crossing The Central Mobility Hub will that matter most. Whether people are
that uses innovative technology to bring together all modes of transit driving, riding, rolling, or walking, the
strengthen border security, bolster the and provide fast and convenient goal is to reduce gridlock and keep the
binational economy, enhance mobility, connections to San Diego International and improve regional air quality. In region running smoothly and safely.
Airport. It will improve mobility, reduce
Smart Connections make the smartest
FY 2023, this project celebrated its traffic, advance climate action goals, use of taxpayer money by getting the
historic groundbreaking, a binational and boost economic development. In most out of infrastructure already in
Toll Revenue Sharing Agreement, and FY 2023, project staff began a concept place. In FY 2024, SANDAG will explore
widespread federal support. Work study to analyze several alternatives continues to deliver this historic project, customizing lane usage based on traffic, for airport transit connections. In
with recent legislation streamlining providing right-sized, on-demand ride FY 2024, SANDAG will complete the
contracting methods. In FY 2024, services, creating more access to transit study, gather input, and begin the
SANDAG will begin designing the facility options, and more. environmental clearance process.
in collaboration with federal partners.
LOSSAN Corridor/Del Mar Bluffs
The Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Corridor is the second busiest intercity rail corridor in the nation and the only viable rail freight link from the San Diego region to the rest of the country. SANDAG continues to move forward with double tracking the corridor and stabilizing the Del Mar Bluffs, while planning to relocate the tracks off the bluffs by 2035. In FY 2023, state and federal leadership demonstrated widespread support, and SANDAG completed project design and construction arrangements for Phase 5 of the bluffs stabilization, as well as a relocation planning study. In FY 2024, stabilization, double tracking, and infrastructure work will continue. For the relocation project, SANDAG will advance the environmental clearance and refine alignment concepts.
ITOC | 2023 Annual Report 9 66
ELEE Blue Line Expansion
On November 21, 2022, SANDAG celebrated the one-year anniversary of the Mid- Coast Trolley Extension, the largest completed infrastructure project in the history of the San Diego region. The community continues to share how the heavily used Blue Line can better serve the region's residents. In FY 2024, SANDAG will explore possible improvements including extending the Trolley across the border, providing first- and last-mile connections, building a San Ysidro Mobility Hub, and providing a safer, more comfortable, and convenient ride with added express options.
Purple Line Study (M) (T)
The Purple Line is a new priority project for FY 2024. This new, high-speed transit line is designed to connect the most populated areas of our region with major job centers, carrying people from San Ysidro to Sorrento Mesa via National City, City Heights, and Kearny Mesa. In FY 2024, relief may come in the form of rapid buses and other corridor improvements. Long-term, this transit line will transform the San Diego region by connecting Mobility Hubs and biking/walking paths to provide a fast and useful transit option for tens of thousands of residents.
KEY INITIATIVES
Many of the San Diego region's transportation challenges are deeply connected to larger societal issues that impact everyone's quality of life. To address the many challenges that face our region, SANDAG is leading several initiatives focused on mobility options, increased safety, and access to opportunities.
Digital Equity Transit Equity and Youth Housing Acceleration The Digital Equity Program is working Opportunity Pass Program to close the digital divide and ensure The Transit Equity Pilot includes the The Housing Acceleration Program that everyone has equal access to Youth Opportunity Pass pilot program, promotes fair and equitable housing
educational, economic, and social which provides free transit for anyone for all by providing technical
opportunities through a reliable, age 18 and under and educates youth assistance, educational outreach, affordable internet connection. In FY and families about transit options. Since and financial resources that 2023, SANDAG worked to accelerate its launch, SANDAG has distributed contribute to accelerating affordable broadband infrastructure deployment more than 40,000 free transit passes housing production and preventing and raise awareness of available and provided more than 5 million rides displacement. In FY 2023, SANDAG resources by collaborating with state, to San Diego County youth, with up to continued education on housing regional, and local partners. In FY 2024, three times as many monthly youth policies and legislation and program SANDAG will continue to develop the riders as before. In FY 2024, SANDAG implementation. In FY 2024, SANDAG Broadband Master Plan, implement the has identified funding to extend the will work with partners to expand the Digital Equity Strategy and Action Plan, program and is working on expanding it program, support a housing trust fund
and streamline the permitting process. to riders age 24 and under. and release $16 million in grants to local jurisdictions.
ITOC | 2023 Annual Report 10 67
Regional Bike Network Safety and Vision Zero People, Processes, In FY 2023, the SANDAG Board of and Technology
Safe, accessible bikeways encourage
active transportation by providing Directors adopted a Regional Vision In FY 2024, SANDAG will invest in new convenient routes within and between Zero Resolution with the intention technologies, its employees, and agency communities. As of March 2023, of eliminating all traffic fatalities and process improvements to ensure that SANDAG has built nearly 25 miles of severe injuries while increasing safe, it is efficient, effective, and ultimately bikeways as part of the Regional Bike healthy, and equitable mobility options. a world-class agency. SANDAG will Plan Early Action Program. By 2028, Vision Zero views traffic crashes as streamline its processes, putting into SANDAG will more than double that preventable incidents and recommends practice what it's learned from its number. In FY 2023, SANDAG broke proven roadway safety strategies. The audits. And by bringing on the proper ground on 6.5 miles of new bikeways Safety Dashboard will be released in skill sets and training staff, SANDAG Will and construction progressed on an FY 2023. By the end of FY 2024, the continue to be an innovative and data- additional 5.3 miles. In FY 2024, SANDAG Regional Vision Zero Action Plan driven agency. plans to break ground on 8.7 miles of will be complete and the team will new bikeways and open 2.3 miles be applying for additional funds to to the public. implement the plan.
Data, Research, and Analytics
SANDAG conducts original research and maintains a tremendous amount of data.
The agency also uses emerging datasets to better understand the needs of the region and translate data into actionable information. Unlike most other MPOs, SANDAG compiles public safety data, conducts independent program evaluations, and provides partner organizations with regional economic updates. In FY 2023, SANDAG launched the Open Data Portal, making a variety of data publicly and readily available, and began the process of building forecasts and models for the 2025 Regional Plan. In FY 2024, the team will continue to work on the Regional Plan and provide actionable information.
GRANTS AND LOCAL TRANSNET FUNDING
Local Streets and Roads
Since 1988, nearly $2 billion in TransNet funding (plus more than $700 million from federal, state, and local sources) has been provided to help each city and the county with street improvement projects. These funds have been used to build new major roads, repave and widen streets, repair potholes, improve local bikeways and walkways, complete median and landscaping projects, repair bridges, improve drainage, install traffic-calming infrastructure, and complete other major congestion relief and rehabilitation projects. In FY 2023, TransNet provided more than $80 million toward projects in progress, and 13 projects were completed.
In FY 2024 allocations and improvements will continue.
ITOC | 2023 Annual Report 11 68
Environmental Mitigation Active Transportation Housing Acceleration Program Program and Smart Grant Program
To date, SANDAG has awarded Growth Incentive Program
SANDAG launched the Housing
about $18.8 million in TransNet Land Since 2009, $59 million in TransNet Acceleration Grant Program in 2022 to Management grants over ten cycles. Smart Growth Incentive Program support jurisdictions, developers, and This competitive program awards funding and more than $28 million transit agencies by funding projects funding for projects that protect in Active Transportation funding that accelerate housing production threatened, rare, and endangered has helped build more walkable, while also creating sustainable and species and their habitats. In FY 2023, bike-friendly, and transit-oriented climate resilient communities. In FY SANDAG executed 19 grants totaling communities. These projects have 2023, SANDAG launched its second $2.4 million, bringing the total number revitalized downtown areas, created funding cycle, which includes planning of grants to 136. In FY 2024, the San economic growth, beautified public and capital components. In FY 2024, the Dieguito Lagoon Restoration Project spaces, and increased connectivity. In first cycle of projects will be completed, Phase Il will enter its second year FY 2023, 12 projects were completed and resulting in policies and programs of construction, with completion many more that received funding in that offer people across the San Diego estimated in 2025. SANDAG and region more affordable housing choices. past years moved forward with planning
Caltrans will coordinate with the County and construction. In FY 2024, SANDAG of San Diego to develop a Resource will launch its sixth Smart Growth Management Plan as part of Phase I for Incentive Program funding cycle. the Rancho Lilac property.
Senior Mini-Grant Program
The Senior Mini-Grant Program uses TransNet funding to provide San Diego County residents who are age 60 and older with specialized transportation options. In FY 2023, 4,375 older adults benefitted from funded services, and SANDAG released a call for more projects, awarding more than $2 million in Senior Mini-Grant funds. In FY 2024, SANDAG will begin the eighth cycle of the program.
See also the 2022 SANDAG Annual Report.
*Local Transet funding is a key component in the SANDAG budget and helps the agency leverage other local, state, and federal funds. Not all projects and programs listed in this section are funded by TransNet.
ITOC | 2023 Annual Report 12 69
How to Get Involved
KeepSanDiegoMoving.com
According to SANDAG's most recent data,
Offers real time information about TransNet projects, including 60 percent of the 48 major corridor capital
construction projects were completed and a dashboard that shows budgets and schedules. 28 percent were in progress as of June 30,
2023 — a significant accomplishment 13 SANDAG.org/TransNet years into the 40-year program. Completed Contains key documents related to the TransNet Extension projects include the modernization of the Ordinance.
Blue and Orange Trolley lines; construction
of the I-15 Express Lanes; the widening of Meetings
SR 76; I-15, Mid-City, and South Bay Rapid ITOC meets on a regular basis, usually the second Wednesday Transit projects; and others. For specific of the month at 9:30 a.m. at SANDAG offices information on the status of projects under 401 B Street, Suite 800, San Diego, CA 92101. A list of past the TransNet program, readers can go to and upcoming agendas for all ITOC meetings can be found at the following sources online: sandag.org/itoc
• FY 2021 TransNet Triennial Questions?
Performance Audit (FY 2021 TPA) The ITOC encourages your feedback on this report and other Appendix C details the status of TransNet-related matters. Inquiries can be directed to major corridor projects. [email protected]. Individuals interested in serving on the committee, as vacancies occur, are encouraged to email
• A status of all TransNet Major [email protected] to be placed on the vacancy notification list.
Corridor projects can be found
on the TransNet Dashboard at
transnetdashboard.sandag.org.
ITOC | 2023 Annual Report 13 70
4/23 1415
SANDAG
TransNet Independent Taxpayer Oversight Committee Item: 9 February 14, 2024
FY 2025 to FY 2029 TransNet Program and Transit-Related Revenues
Overview
Action: Information
Each year, SANDAG provides funding estimates for Staff will present an update of the proposed Transportation Development Act (TDA), Federal FY 2025 to FY 2029 estimates and Transit Administration (FTA), and TransNet funds for apportionments for Transportation the upcoming fiscal year as well as a projection for the Development Act, Federal Transit next four fiscal years to allow the transit and local Administration, and TransNet funds. agencies to plan for capital projects and determine
operating subsidies. An overview of these funding
sources is provided in Attachment 1. Fiscal Impact:
SANDAG estimates that approximately
Key Considerations $800 million will be available in
FY 2025 TransNet, TDA, and FTA Estimates Transportation Development Act (TDA), Federal Transit Administration (FTA), and
For FY 2025, the TransNet estimate is approximately TransNet funds in FY 2025. $434 million and reflects an estimated growth rate of
approximately 1.0% over anticipated revenues for Schedule/Scope Impact:
FY 2024 of $429.7 million. Of this total, the TransNet Pending approval by the Board of Directors, Transit System Improvements, which includes funding SANDAG and the transit agencies will use for transit operations and capital improvements, the FY 2025 to FY 2029 TDA, FTA, and Americans with Disabilities, and competitive grant TransNet estimates to inform the FY 2025 program funding for senior transportation services, budget development process. The transit estimate is approximately $68 million. operators also would use the FY 2024 TDA and TransNet revised estimates to inform
The TDA estimate for FY 2025 is approximately
any amendments to its Capital Improvement
$205.7 million and reflects similar growth as confirmed by the County of San Diego. Program budgets and amend its FY 2024 TDA claims.
The FTA estimate for FY 2025 is approximately
$164 million. Estimates for FY 2025 are based on the Federal Register which provides the FTA apportionment based on the new federal transportation bill passed in the Bipartisan Infrastructure Law as enacted in the Infrastructure Investment and Jobs Act (IIJA).
Forecast Methodology
The forecast methodology used to develop the TransNet and TDA estimates is described in Attachment 2. The revenue estimates for each of the funding sources for FY 2025 through FY 2029 are shown in Attachment 3.
Peer Review Process
Consistent with the SANDAG Data Accuracy and Modeling Work Plan, on December 12, 2023, a Peer Review Process (PRP) meeting, consisting of subject matter experts and an external economic forecasting expert panel' was convened to review the proposed forecast methodology. The PRP expert panel concurred with the proposed forecast methodology. In addition, the current forecast went through the SANDAG Quality Assurance/Quality Control process in December 2023. 1 Peer Review Panel participants: Mark Bryson, Fran Mancia, and Thomas Adams (Avenu Insights); Andre Douzdjian, Ray Major, Susan Huntington, Naomi Young, Marcia Smith, Mike Duncan, Purva Singh, Michelle Smith and Zara Sadeghian (SANDAG staff).
71 Next Steps
Upon approval by the Board, SANDAG and the transit agencies will use these estimates to inform the FY 2025 budget development process and any proposed FY 2024 amendments to Capital Improvement Program budgets and/or TDA claims.
Susan Huntington, Director of Financial Planning, Budgets, and Grants Attachments: 1. Funding Programs
Forecast Methodology for Transportation Development Act and TransNet Forecasts
3. FY 2024 Apportionment and Estimates from FY 2025 to FY 2029 72 Attachment 1
Funding Programs
Transportation Development Act - Local Transportation Fund The Transportation Development Act's Local Transportation Fund (TDA) program is the major funding source that supports the region's public transit operators and nonmotorized transportation projects like bicycle and pedestrian projects. The Local Transportation Fund (LTF) portion of the TDA funds comes from a quarter of a percent of state sales tax assessed in the region. The San Diego Association of Governments (SANDAG), as the Regional Transportation Planning Agency, is responsible for apportionment of TDA funds each year in conformance with state statute. The transit operators and other member agencies submit their annual TDA claims based on the annual apportionment and in compliance with SANDAG Board Policy No. 027.
Pursuant to state statute, the County of San Diego Auditor has the responsibility for providing the TDA apportionment for the upcoming fiscal year. The County Auditor develops the apportionment in consultation with SANDAG staff and with the transit operators, based on actual sales tax receipts and projections. The annual apportionment determines the amount of funds available to each agency to claim.
SANDAG is required to notify prospective claimants of the apportionment by March 1, necessitating action by the Board of Directors in February each year.
The legislative priorities established by state law include certain categories for which TDA funds are taken "off the top." These include the allocation to SANDAG for various planning, programming, and administrative-related expenses, funding of bike and pedestrian facilities, and support of community transit services. In addition, the County Auditor receives an allocation based on estimates of its costs to administer the TDA program. The remaining apportionment, along with any prior year carryover funds, is available to be claimed by the North County Transit District (NCT) and Metropolitan Transit System (MTS). The balance of current-year funds is allocated based upon the population of the service area served by the two transit agencies.
Pursuant to provisions of Senate Bill 1703 (Peace, 2002) and as agreed to by MTS, NCTD, and SANDAG, regional transit capital projects are implemented by SANDAG with funding transferred from both MTS and NCTD. The transit agencies may choose to transfer a portion of their TDA share for purposes of matching federal formula funds for the capital projects to be implemented by SANDAG on behalf of MTS or NCTD. Transfers of federal funds and/or TDA as the match are based on the draft five- year transit Capital Improvement Program (CIP). The final list of projects and associated funding will be included with the transit CIP scheduled for Transportation Committee and Board action in March or April of each year. An additional apportionment to SANDAG covers those indirect administrative functions not directly funded by projects. The calculation for the cost of these administrative functions was memorialized in Addenda Nos. 3 and 4 to the Memorandum of Understanding between SANDAG, MTS, and NCTD.
TransNet
The TransNet Extension, a 40-year half-cent sales tax transportation funding measure approved by the voters in 2004, became effective in FY 2009. TransNet provides funding for major transportation projects in the region. After deducting costs associated with administrative expenses; the operation of the TransNet Independent Taxpayer Oversight Committee (ITOC); and the Bicycle, Pedestrian, and Neighborhood Safety program; the TransNet program is divided into Major Corridor (42.4%), New Bus Rapid Transit/Rail Operations (8.1%), Local System Improvements (33%), and Transit System Improvements (16.5%).
Within the Transit System Improvements, services provided pursuant to the Americans with Disabilities Act of 1990 (ADA) and subsidies for seniors have specific earmarks (2.5% and 3.25%, respectively). The remaining revenues can be used by the transit agencies for operating or miscellaneous capital purposes.
Similar to TDA, the transit share between NCTD and MTS is allocated based upon the respective population of the two transit agencies' service areas.
73 The ITOC reviews the TransNet estimates for the entire program at its meeting in February each year.
Significant comments from the ITOC are shared with the Transportation Committee and Board.
Federal Transit Administration Formula Programs
Section 5307: FTA 49 US Section 5307 provides for transit capital and operating assistance in urbanized areas and for transportation-related planning. For areas with populations of 200,000 and more, such as San Diego County, the formula is based on a combination of bus/vanpool revenue vehicle miles, bus/vanpool passenger miles, fixed-guideway revenue vehicle miles, and fixed-guideway route miles, as well as population and population density. Eligible activities under this program include planning, engineering design, and an evaluation of transit projects and other technical transportation-related studies; capital investments in bus and bus-related activities; construction of maintenance and passenger facilities; and capital investments in new and existing fixed-guideway systems, including rolling stock, overhaul and rebuilding of vehicles, track, signals, communications, and computer hardware and software. Preventive maintenance and some ADA complementary paratransit service, while recorded as operating expenditures, are considered capital costs for purposes of eligibility.
The Infrastructure Investment and Jobs Act (IIJA) includes a provision that requires the transit agencies to maintain equipment and facilities in accordance with the transit asset management plan and that transit agencies are no longer required to expend 1% for associated transit improvements. These requirements did not substantively impact how SANDAG or the transit agencies use this program.
Section 5337: This State of Good Repair (SGR) program provides funding to transit agencies that operate rail fixed-guideway and high-intensity motorbus systems for the maintenance, replacement, and rehabilitation of capital assets, along with the development and implementation of transit asset management plans. This program reflects a commitment to ensuring that public transit operates safely, efficiently, reliably, and sustainably so that communities can offer balanced transportation choices that help to improve mobility, reduce congestion, and encourage economic development. Eligible activities include projects that maintain, rehabilitate and replace capital assets as well as projects that implement transit asset management plans. The Infrastructure Investment and Jobs Act clarifies that high-intensity motorbus tier funds can only be used for vehicle SGR costs and not for roadway SGR repair costs.
Section 5339: The Infrastructure Investment and Jobs Act provides both formula and discretionary funding for this section, and there is also a sub-program that provides competitive grants for bus and bus facility projects that support low- and zero-emission vehicles. The purpose of both formula and competitive programs is to provide capital funding to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities.
As stated above, the Section 5307 program is based on a number of factors, including data from the vanpool program. Over the years, the Regional Vanpool program has contributed substantially to the overall funding that comes to the region. In recognition of its contribution, the transit agencies have agreed to update the funding level to fully fund the Regional Vanpool program from the total apportionment based on prior year actual expenditure. After deducting for the cost of the Regional Vanpool program, Section 5307 funds are allocated 70% for MTS and 30%for NCTD. The șame 70/30 formula was used to allocate the Sections 5337 and 5339 between MTS and NCTD. SANDAG does not directly receive funds from either Section 5337 or Section 5339. 74 Attachment 2
Forecast Methodology for Transportation Development Act and TransNet Forecasts Forecast Methods
SANDAG updates its forecast of sales tax revenue each year. The near-term forecast covers FY 2024 through FY 2028, and long-term estimates extend the forecast through FY 2048.
The sales tax revenue forecast relies on two key variables: (1) a consensus (arithmetic mean) of three independent nationally recognized forecasts of growth in per-capita nominal retail sales (IHS Markit, Moody's Analytics, and Oxford Economics'); and (2) San Diego regional population growth as projected by the SANDAG Series 15 forecast (2022-2060). The per-capita nominal sales growth rate is considered the most reliable predictor of how retail sales-and ultimately, TransNet and Transportation Development Act Local Transportation Fund (TDA) revenues-are likely to behave.2 SANDAG uses quarterly data (rather than annual) to inform the forecast. It made this shift to quarterly data in 2020 in response to COVID-19-related disruptions. The quarterly data better captured evolving economic conditions and responses to social-distancing protocols, business restrictions, fiscal stimulus payments and tax credits, increased telework, shifting consumer spending patterns on taxable goods, and inflation. Given the continuing level of economic uncertainty, quarterly data remains preferred for its sensitivity to current conditions.
The above methodology allows for adjustments to the near-term forecast (five-year window). The adjustments are based on the professional judgment of SANDAG staff and informed by a variety sources.
These sources include the California Department of Tax and Fee Administration's (CDTFA, formerly known as the California Board of Equalization) sales tax revenue allocation formula; the year-to-date sales tax collections; the forecasts provided by SANDAG's sales tax revenue consultant, Avenu Insights & Analytics; and current and forecasted general economic conditions.
Forecast Overview
TransNet sales tax revenues in FY 2023 posted a record year totaling $429.7 million, marking a healthy gain of 5.9% and the third consecutive year of higher-than-normal growth. TDA collections also showed solid growth, increasing 4.4% to $202.7 million in FY 2023.
Expectations for FY 2024 are significantly more modest despite FY 2023's strong revenue gains for TransNet and TDA. The collections in the first half of FY 2024 signal slowing consumer spending.
Through December of FY 2024, sales tax revenue has been pacing below FY 2023 collections. TransNet revenue is down 2.0%, and TDA is down 0.6% compared to the same period last fiscal year. While the entirety of the reported holiday spending surge has yet to be captured in collections, we expect this slowing trend to reverse enough for FY 2024 revenues to close out the year on par with FY 2023.
The updated forecast also reflects that, while a shallow economic downturn appears to have been avoided, consumer spending cools in FY 2025. While inflation is expected to ease, SANDAG economists are tracking data that points to some financial stress for consumers. After two years of wage growth that has not kept pace with inflation, households have faced higher costs of living and mounting debt. A key factor influencing the forecast update is how, if at all, San Diegans will respond to easing inflation and the Fed's signaling of interest-rate cuts beginning in FY 2025. SANDAG economists conservatively forecast or bolster depleted savings. The short-term forecast includes a gradual return to "normal" growth by 1 Woods & Poole Economics and Caltrans forecasts were dropped from the consensus forecasts because they are only available in calendar years and updated only once a year (July for Woods & Poole, November for Caltrans). 2 Based on SANDAG's forecast of TransNet revenue growth, TDA revenue growth is projected to follow the same pattern but at half a percent lower.
75 FY 2028 (matching its pre-pandemic historical average). FY 2025 is estimated to grow 1%. FY 2026 growth is projected at 1.2%; FY 2027 at 1.3%; and FY 2028 at 2.9%.
For TDA, SANDAG generally projects its revenue growth to be half a percent lower than TransNet.
However, mid-way through FY 2024, TDA collections do not show the same slowing seen in TransNet revenue. As a result, SANDAG adjusted the TDA projection upwards for FY 2024; annual growth is projected to be 1%. Starting in FY 2025, TDA growth projects return to being 0.5% lower than TransNet.
Projected growth for TDA revenue is 0.5% for FY 2025, 0.7% for FY 2026, 0.8% for FY 2027 and 2.4% in FY 2028.
The table below shows actual and projected TransNet Extension Ordinance revenues, starting in FY 2009, the first year of collections. Given economic uncertainty and a desire to exercise caution with revenue projections, this forecast is intended to be conservative.
Growth in TransNet Extension Ordinance Sales Tax Receipts Fiscal Year Amount Percent Change
2009 (Actual) $222.0M -9.2%
2010 (Actual) $204.2M -8.0%
2011 (Actual) $221.3M 8.4%
2012 (Actual) $236.9M 7.1%
2013 (Actual) $247.2M 4.3%
2014 (Actual) $260.1M 5.2%
2015 (Actual) $268.8M 3.4%
2016 (Actual) $275.5M 2.5%
2017 (Actual) $284.5M 3.3%
2018 (Actual) $301.5M 6.0%
2019 (Actual) $305.3M 1.3%
2020 (Actual) $305.9M 0.2%
2021 (Actual) $334.0M 9.2%
2022 (Actual) $405.9M 21.5%
2023 (Actual) $429.7M 5.9%
2024 (Forecast) $429.7M 0.0%
2025 (Forecast) $434.0M 1.0%
2026 (Forecast) $439.3M 1.2%
2027 (Forecast) $444.8M 1.3%
2028 (Forecast) $457.5M 2.9%
Peer Review Process
Based on a request by the TransNet Independent Taxpayer Oversight Committee (ITOC) and consistent with the SANDAG Data Accuracy and Modeling Work Plan, on December 12, 2023, a Peer Review Process (PRP) meeting, consisting of subject matter experts and an external economic forecasting expert panel, was convened to review the proposed forecast methodology. The PRP expert panel concurred with the proposed forecast methodology. In addition, the current forecast went through the SANDAG Quality Assurance/Quality Control process in December 2023.
The ITOC will review the TransNet program revenue estimates at its February 14, 2024, meeting. 76 Economic Conditions
In the second quarter of FY 2024, San Diego's regional economy displayed resilience amid a third year of elevated inflation, high interest rates, and countervailing pressures. Tourism is returning to 2019 levels, and overall employment has remained healthy. At the same time, the region's households have faced headwinds from inflation-impacted rising costs of living accompanied by only modest wage growth and slight moderation in real estate markets.
Tourism continues its post-pandemic recovery, capitalizing on solid demand and shifts in consumer spending from goods to experiences and the tail end of the "revenge travel" phenomenon of people making up for not having traveled because of the 2020 pandemic. In 2022, the region had 28.8 million visitors who spent $13.6 billion. From January through October 2023, visits and visitor spending outpaced 2022 counts during that same 10-month period by 10.9% and 4.4%, respectively.
Another strength of the region's economy has been its diversified employment base. More than
1.61 million San Diegans were in the civilian labor force as of November 2023, up 1,800 workers from the prior year. Total nonfarm, wage/salary jobs were 1.59 million in November 2023, up 21,900 from the prior year. The largest net gains came in private Healthcare and Social Assistance (10,700 jobs) and Tourism (9,900), while Administrative and Support and Waste Management and Remediation Services (-7,000) had the largest net job loss.
The unemployment rate remained relatively low at 4.2% in November 2023, though 15,100 more persons were unemployed than in November 2022 (3.3% unemployment rate). Unemployment rates also ticked up in California to 4.9% and nationally to 3.5% in November 2023.
While labor market conditions remain strong, the cost of living in the region continues to rise. Modest wage increases contributed to San Diego's household area median income (AMI) rising to $116,800 in FY 2024, but wage growth has not kept pace with inflation. Sticky housing costs and elevated prices for household necessities have been cutting into both discretionary spending and savings, making San Diego among the nation's top 5 most expensive places to live. In November 2023, San Diego inflation rose to
5.2%, after falling to 4.3% in July. San Diego also continues to track above the national level (3.1%). The San Diego price increases (measured against November 2022) were seen mainly in necessities, such as groceries (2.6%), shelter (8.7%), electricity (16.2%), and medical care (5.2%).
For more than three years, inflationary pressures have stretched household budgets, especially for low- income families. San Diegans have been making ends meet by cutting back on discretionary spending; trading down to less-expensive, discounted goods and services; putting more on credit cards; and taking second jobs. Moreover, credit card debt and delinquencies are on the rise. The impact of mounting debt, compounded by record-high interest rates (21.5% from large commercial banks in November 2023), will likely become more burdensome in the coming year.
Given the tighter lending standards, high cost of capital, lower business investment, and prevailing telework trends, the San Diego commercial real estate struggled with decreased demand for office space.
Compared to the pre-pandemic period, leasing volume has plummeted almost 20% while availability has risen by 7 million square feet to 20.4 million square feet. While the region faced a 10.8% vacancy in late 2023, Downtown remained the hardest hit, with vacancy rates at 26.5% and climbing. Downtown San Diego's vacancy rates are projected to reach an unprecedented 39% in 2024. The high vacancy rate is due to dwindling demand and the expected delivery of 2.7 million square feet of new, yet uncommitted, office space in the next 18 months,
77 In contrast, the residential real estate market remained especially tight and arguably frozen because of limited supply, near-record home prices, and elevated mortgage rates, which reached a 23-year-high of
7.79% in late October 2023 and receded to 6.61% in late December 2023. The falling rates have attracted more buyers, but few would-be sellers have put their homes on the market. In November 2023, year-over-year home sales were down 14.5% to 1,549. The median-priced home was $870,000, and affordability limited to just 16% of San Diego households can afford the $5,550 monthly payment on a median-priced home at a 6.82% rate for a 30-year fixed mortgage (December 2023). The region also has the nation's third-most expensive rental market, with rents up an average of 18% to $2,830 in the past year.
While recession fears appear to be fading, the lasting impact of inflation, higher costs of borrowing, rising home prices, and mounting debt create uncertainty about consumer spending in the coming year. Also, numerous macroeconomic factors—$38 billion state budget shortfall, U.S. Presidential election, wars in Russia-Ukraine and the Middle East, and trade tensions with China, among others-could become impactful economic headwinds.
78 Attachment 3
Transportation Development Act
FY 2024 Apportionment and Estimates from FY 2025 - FY 2029 Estimated amounts are in $000s
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Columni Apportionment Estimate Estimate Estimate Estimate Total Apportionment 2 $205,736,668 $207,178 $208,769 $213,679 $218,076 Less County Auditor Expenses (PUC 99233.1) (50,000) (51) (52) (53) (54) Less SANDAG Administration (PUC 99233.1)? (563,777) (778) (574) (587) (809) Less 3% Planning Funds (PUC 99233.2) 6,153,687) (6,190) (6,244) (6,391) (6,516) Less 2% Bicycle/Pedestrian Funds (PUC 99233.3) (3,979,384) (4,003) (4,038) (4,133) (4,214) Less 5%Community Transit Service (PUC 99233.7) (9,749,491) (9,808) (9,893) (10,126) (10,324) Subtotal $185,240,329 $186,348 $187,968 $192,389 $196,158 Total Available for MTS 131,457,281 132,243 133,393 136,530 139,205 Less Regional Planning/Capital Projects* (284,392) (296) (302) (308) (314) Less Transferred Functions® (2,647,252, (2,663) (2,686) (2,749) (2,803) Total Community Transit Service 6,780,428 6,821 6,880
7,042 7,180
Total Available to Claim $135,306.066 $136,105 $137,285 $140,515 $143,268
Total Available for NCTD 53,783,048 54,105 54,575 55,859 56,953 Less Regional Planning/Capital Projects*
Less Transferred Functions® (900,866) 906) (914) (936)
(954)
Total Community Transit Service 2,774,073 2.791 2,815 2,881 2,938
Total Available to Claim $55,656,255 $55,989 $56,476 $57,804 $58,936
Total Available for SANDAG
Regional Planning/Capital Projects 284,392 296 302 308 314 Transferred Functions 3,548,118 3,569 3,600 3.685 3,757 SANDAG Expenses? 563,777 778 587 809
3% Planning Funds 6,153,687 6,190 6,244 6,391 6,516
Prior Year Carryover
Total Available to Claim $10,549.974 $10,833 $10,720 $10,972 $11,397 Total Community Transit Service (CTSA) $194,990 $196 $198 $203 $206 Prior Year Carryover $0
Total Available to Claim $194,990 $196 $198 $203 $206
*Totals may not add up due to rounding
The County Auditor provided the apportionment for FY 2024. The projected estimates for FY 2025 to FY 2028 are based on the growth rate in retail sales as forecasted by SANDAG and excludes interest and prior year excess funds. "Apportionment distribution is based on the population estimates published by the California Department of Finance (DOF) estimates as of January 2022 - approximately 71% for MTS and 29% for NCTD.
3 The SANDAG Administration cost rises in FY 2025 and FY 2028 disproportionately due to costs associated with the triennial performance audit. All other annual increases in SANDAG administrative share are consistent with the estimated growth in the TDA.
Represents the local match for federally funded regional planning and transit capital development projects identified in the FY 2024 transit CIP as provided by MTS and NCTD.
The projects funded will be included as part of the FY 2024 Capital Improvement Program presented to the Transportation Committee/Board at their March/April meetings.
Based on Addendums No. 3 and No. 4 to the Master Memorandum of Understanding between MTS, NCTD, and SANDAG. For NCTD, 26.09% of this share is transferred back to NCTD to be used for TDA-eligible purposes.
79 Attachment 3
TransNet Program
Estimates from FY 2025 to FY 2029 (in $000s)
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
TransNet Program Revenues. 105% 95% 105% 95% 105% 95% 105% 95% 105% 95% Estimated Sales Tax Receipts $429,736 $455,743 $434,040 $412,338 S461.215 $439,252 $417.290 _ $467,063 $444,822 $422,581 $480.382 $457,507 $434,631 $492,668 $469,208 $445,748 TransNet Program Allocations
Administrative Allocations' $8,681 $8,785 $8,896 $9,150 $9,384 Independent Taxpayer Oversight Committee? $515 $528 $540 $551 Bike, Pedestrian & Neighborhood Safaly? S8.681 $8,785 $8,896 $9,150 $9,384 Total off-the-top Programs $17,877 $18,098 $18,332 $18,851 $19,331 Not Available for Subprograms* $416,164 $421,154 $426,489 $438,656 Program Allocations
Major Corridors Program S176,453 $178,569 $180,831 $185,990 $190,748 New BRT/Rail Operations® $33,709 $34,113 $34,546 $35,531 $36,440 Transit System Improvements® $68,667 $69,490 $70,371 $72,378 $74,230 Local System Improvement? $137,334 $138,981 $140,741 $144,756 $148,459 Total Program Allocations* $416,164 $421.154 $426,489 $438.656 $449,377 •Tolals may not add up due to rounding
NOTES:
The TransNet Extension Ordinance established the rules for the allocation of all Commission revenues. Commission funds are allocated according to the following priorities:
'Up to 2% of the annual revenues shall be allocated for administrative expenses, which includes Commission/Board expenses, administrative reserve. & The ITOC allocation is based on the annual increase in CP/ using $250,000 as the starting base. "Total of 2% shall be allocated for bicycle facilities. *42.4% of the total revenues less off the top programs shall be allocated for Major Corridor projects which include transportation mitigation undor the Environmental Mitigation program (EMP) and any finance charges incurred. " 8.1% of the total revenues less off the top programs shall be allocated to operate new rail or bus rapid transit (BRT) services. •16.5% of the total revenues loss off the top programs shall be allocated for purposos of public transit sorvices including providing for sonior and Amarican with Disabilitios Act (ADA)-rolatod sorvicos. " 33% of total revenues less off the top programs shall be allocated for local street improvement services, which includes roadway projects, as well as local EMP and smart growth incentive programs. 80 Attachment 3
TransNet Revenue Forecast - Transit System Improvement Program k Estimates for FY 2025 to FY 2029 (in $000s)
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
(Proposed) (Estimate) (Estimate) (Estimate) (Estimate)
Mid-Range Mid-Range Low Mid-Range Low Mid-Range Mid-Range Low Total Available For Transit Purposes!2: $67,988 $68,667 $69,490 $66,016 $70,371 $66,852 $72,378 $68,759 $74,230 $70,518
Less 2.5% for ADA-related Services ($1,700) ($1,717) ($1,737) ($1,650) ($1,759) ($1,671) ($1,809) ($1,719) ($1,856) ($1,763)
Less 3.25% for Senior Services ($2,210) ($2,232) ($2.258) ($2,146) ($2.287) ($2,173) (S2,352) ($2,235) ($2.412) (S2,292)
Subtotal $64,078 $64,719 $65,495 $62,220 $66,324 $63,008 $68,216 $64,806 $69,961 $66,463
MTS Projects And Services:
Transit Service Improvements
(Operations and Supporting Capital) $45,535 $45,928 $46,479 $44,155 $47,068 $44,715 $48,410 $45,990 $49,649 $47,167 ADA Services $1,206| $1.218 $1,233 $1.171 $1,248 $1.186 $1,284 $1,220 $1,317 $1,251
NCTD Projects And Services:
(operation and Supering capia)
$18,543 $18,791 $19,016 $18,065 $19,256 $18,294 $19,806 $18,816 $20,312 $19,297
ADA Services $493 $498 $479 $511 $485 $499
$539 $512
Regional Discretionary Programs:
Competilive Grant Program for Senior
L Transportation Services $2,210 $2,232 $2,258 $2,146 $2,287 $2.173 $2.352 $2,235 $2,412 *Totais may not add up due to rounding $2,292
The funds are allocated via a Call for Projects process by SANDAG.
Other Notes:
A. The estimated revenues are based on growth rate in taxable sales as forecasted by SANDAG and excludes interest and prior year excess funds.
B. Distribution of revenue estimates are based on the 2004 Proposition A Extension: San Diego Transportation Improvement Program and Expenditure Plan. 81 Attachment 3
SUMMARY OF FY 2025 TRANSIT RELATED REVENUES ($1000s)
Transportation TransNet Federal Transit
Development Act Transit System Administration (FTA) Total TDA' Improvements 2024'
Total Estimated 205,737 68,667 163,875 438,279
County Administration Fee (50) (50)
Amounts Distributed 205,687 68,667 163,875 438,229
Metropolitan Transit 135,306 47,146 109,722 292,174
System
North County Transit 55,656 19,289 47,519 122,464
District
SANDAG 10,550 6,635 17,185
Community Transit 195 195
Services (CTSA)
Discretionary Programs? 3,979 2,232 6,211
' Distribution between transit agencies and SANDAG subject to change based on final transit CIPs and capital project transfers 2 Reflects TDA funds for bike/ped projects and TransNet TSI funds for competitive grants *Totals may not add up due to rounding.
82 Attachment 3
Federal Transit Administration Formula Programs
FY 2025 Apportionment and Estimates from FY 2026 - FY 2029 FY 2025
FY 2029
($000s)
Regional
Carryover Apportion- Capital Regional
Apportionment ment' Projects Apportion- Capital Regional Projects Planning
Section 5307 Urbanized Area Formula
Funds
MTS S62,473,841 ($1,137,567) $63,780 (51,184) $65,113
($1,207) $66,473 ($1,231) S67,863 ($1,256)
NCTD $26.774,503 S27,334 NIA $27,905 NA
$28,489 $29,084
SANDAG (Vanpool Program)? $5,497,451 N/A $1,137,567 $5,612 N/A $1,207 $5,849 N/A $1,231 $5,972 N/A $1,256
SANDAG (Capital Projects)'
SO
Total SO $94,745,795 $96.726 $98.748 $100,811
S102,918
Section 5337 State of Good Ropair/ High
Intensity
MTS $44,062,511 $44,775 $45,500 $46,236 NA NA
$46,984
NCTD $18,891.431 $19,197 S19,508 $19,823
Total NIA $20,144 NIA
S62,953,942 $63.973 $65.008 $66,059
N/A| $67,128 N/A
Section 5339 Bus/Bus Facilities
MTS $4.322,792
$4,506 N/A
NCTD S1,852,625
$1.931 N/A
Total S6,175,417 $6.240 N/A $6,305 NAI
$6,371 N/A| $6,438 N/A
*SANDAG and transit agoncies have agreed to fully fund the rideshare portion of the regional Transportation Demand Managoment program in recognition of the vanpool program's contribution to the funding level apportioned to the region. Prior year is reconciled with next year's ostimate based on consultation with the transit agencios.
" anite ford Drectors as par of no 2020 Transt Capta tiprovemen Program a mersge ive meting is neilar based n the draf FY 2025 MISING capital buds. The spectic prices and unting recommandatin waul be prosent to the Transportation.
Note:
share in these programs). SANDAG share is based on the estimated costs to operate the regional vanpool program and its estimated increase in future years. The balance of 5307 funds are allocated 70% to MTS and 30% to NCTD. The same 70/30 split applies to the 5337 and 5339 funds (SANDAG does not 83 SANDAG
TransNet Independent Taxpayer Oversight Committee Item: 10 February 14, 2024
TransNet Regional Transportation Congestion Improvement Program Proposed Fee Adjustment
Overview Action: Information
The TransNet Extension Ordinance requires the Staff will present information regarding a 18 cities in the San Diego region and the County of proposed 4.9% adjustment to the Regional San Diego to collect a Regional Transportation Transportation Congestion Improvement Congestion Improvement Program (RTCIP) fee from Program, beginning July 1, 2024. the private sector for each new housing unit
constructed in its jurisdiction, with certain exceptions, including low income residential units and accessory Fiscal Impact:
dwelling units. The Regional Transportation Congestion
The fee's purpose is to help ensure that future Improvement Program (RTCIP) fee would development contributes its proportional share of the increase from $2,741.97 to $2,875.06 funding needed to pay for the impact of new growth on beginning July 1, 2024. the Regional Arterial System and related regional Schedule/Scope Impact:
transportation facility improvements as defined in the
The Board of Directors will be asked to
most recent Regional Transportation Plan adopted by approve the 4.9% adjustment to the RTCIP SANDAG. at its upcoming meeting. Pending Board
approval, the adjusted RTCIP fee will
Key Considerations
become effective on July 1, 2024.
SANDAG is required to adjust the minimum RTCIP fee
amount on July 1 of each year based on an analysis of construction cost indices, but never less than 2%.
The purpose of this annual adjustment is to ensure that the RTCIP retains its purchasing power to improve the Regional Arterial System.
Based on an analysis of construction cost trends and relevant indices, staff recommends a 4.9% fee adjustment to the RTCIP, raising the minimum RTCIP fee from $2,741.97 to $2,875.06 beginning July 1, 2024 (Attachment 1). This increase accounts for recent years' inflation and the Construction Cost Index, which has accelerated from its previous low pace. It helps to ensure that the RTCIP fee maintains its purchasing power to complete necessary transportation improvements.
Next Steps
In accordance with TransNet Extension Ordinance provisions!, each jurisdiction's RTIP funding program must be submitted for review by the TransNet Independent Taxpayer Oversight Committee (ITOC) by April 1 of each year to remain eligible for TransNet Local Street and Road funding. The annual submittal of RCIP funding programs by local jurisdictions is scheduled for review at the ITOC meeting on April 10, 2024.
Susan Huntington, Director of Financial Planning, Budgets, and Grants Attachment: 1. Discussion Memo
1 Section 9 of the TransNet Extension Ordinance requires that local jurisdictions establish a program or mechanism for funding the Regional Arterial System. For purposes of the RTCIP, the Regional Arterial System is defined in the most recent Regional Transportation Plan adopted by SANDAG. 84 Attachment 1
Discussion Memo
Background
The TransNet Extension Ordinance requires the 18 cities and the County of San Diego to collect a fee from the private sector for each new housing unit' constructed in that jurisdiction for contribution to the Regional Transportation Congestion Improvement Program (RTCIP). RTCIP revenue is required to be used to construct improvements on the Regional Arterial System, such as new or widened arterials, traffic signal coordination and other traffic improvements, freeway interchange and related freeway improvements, railroad grade separations, and improvements required for express bus and rail transit.
The Ordinance further requires SANDAG to adjust the RTCIP fee amount each year and states that in no event shall the adjustment be less than 2% per year or more than the percentage increase set forth in the Engineering Construction Cost Index (CCI) published by the Engineering News-Record (ENR), or a similar CCI. The purpose of this annual adjustment is to ensure that the RTCIP retains its purchasing power to improve the Regional Arterial System and to help ensure future development contributes its proportional share of the funding needed to pay for the impact of new growth on the Regional Arterial System and related regional transportation facility improvements, as defined in the most recent Regional Transportation Plan adopted by SANDAG.
The RTCIP funding programs fall under the responsibility of the 19 local jurisdictions, which must maintain their RTCIP funding programs and comply with specific administrative requirements to remain eligible for TransNet local street and road funding.
The RTCIP has been implemented in the San Diego region since July 1, 2008. Annual RTCIP fee adjustments, funding program reports, and related audits can be found on the RTCIP page of the SANDAG Website. Relevant excerpts can be referenced in the TransNet Extension Ordinance and SANDAG Board Policy No. 031: TransNet Ordinance and Expenditure Plan Rules.
Construction Cost Increases
SANDAG staff evaluated changes recorded in the ENR Construction Cost Index for Los Angeles (ENR CCI-LA).2 The index is based on monthly price changes in four areas: lumber, cement, structural steel, and labor. It helps track month-to-month fluctuations in construction costs, and when tracked over time, it measures year-over-year price increases.
Chart 1 shows annual increases in the ENR CCI-LA since Fiscal Year 2009. For about ten years (from FY 2010 through FY 2021), construction costs rose by less than 4% per year. FY 2022 marked the first sharp rise in costs (7.9%) and was followed by another strong year of cost increase (4.9% in FY 2023).
Only the first six months of data are available for FY 2024, suggesting another year of strong cost escalation.
Chart 2 shows how much construction cost growth in each fiscal year varied from (above or below) the 2% minimum specified by the Ordinance. Between FY 2009 and FY 2023, there were eight years where construction costs rose by more than 2% minimum (as specified by the Ordinance) and seven years where the costs rose by less than the 2% minimum requirement. 1 Some types of new construction can be exempted, such as low to moderate-income housing. 2 ENR produces construction cost indices for 20 US cities. SANDAG uses the Los Angeles index since it is the closest approximation of construction cost trends for San Diego. 85 Chart 1. Engineering New-Record Construction Cost Index - Los Angeles: Average Fiscal Year Change
10.0%
10%
/
7.9%
8%
6%
4.9%
4%
2%
0%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24* Chart 2. CCI Growth Above/Below the 2% Minimum Fee Increase 8%
6%
4%
2%
0%
-2%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Recommendation on the RTCIP Fee Increase
Each year, SANDAG recommends an increase in the RTCIP fee to ITOC. Staff usuaily bring the recommendation to ITOC in February, and the fee increase takes effect in the new fiscal year (starting July 1).
Strong construction cost increases mark the last two years. Despite this, SANDAG staff had recommended the 2% minimum, maintaining that the RTCIP fee could preserve the purchasing power needed to complete necessary transportation improvements. Chart 3 shows that through FY2021, RTCIP fee growth was in line with construction cost increases. However, the region is now entering its third year 86 of construction costs rising well above 2%, even as general economic conditions are improving (inflation is easing and fears of a recession are receding). Between FY 2021 and FY 2023, construction costs increased by 13% while the RTCIP fee grew by 4%. The gap is likely to widen in FY 2024 based on how construction costs are rising in the first half of FY 2024.
As a result of these conditions, staff recommend a 4.9% increase ($133.09) to the RTCIP fee for FY 2025. The increase will bring the RTCIP fee to $2,875.06. The proposed 4.9% increase will be the third time (since FY2009) that staff recommends an increase above the 2% minimum.
Chart 3. CCI and RTCIP Growth Since FY 2009
1.45 1.40
1.35 3.3%
1.30 increase
1.25 Indexed Growth (2009=1) 2.5%
1.20 increase
1.15 1.10
1.05 1.00
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 a RTCIP Increase
Note: The RTCIP fee has increased by more than 2% only two times since FY 2009. In FY 2016, the fee increase was 2.5%; in FY 2019, the increase was 3.3%.
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