CITY OF POMONA
COUNCIL REPORT
April 17, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: EXCHANGE OF $4.2 MILLION OF PROPOSITION A LOCAL RETURN FUNDS FROM CITY OF POMONA FOR $3.15 MILLION OF GENERAL FUNDS FROM FOOTHILL TRANSIT RECOMMENDATION:
It is recommended that the City Council adopt the following Resolution:
RESOLUTION NO. 2023-58 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE fy 2022-23 capital improvement program (CIP) BUDGET BY UNAPPROPRIATING and exchanging $4,200,000 OF PROPOSITION A LOCAL RETURN FUNDS FROM VARIOUS PROJECTS AND FUND BALANCE for $3,150,000 of foothill transit’s GENERAL purpose FUNDS AND increasing revenue and APPROPRIATING $3,150,000 OF GENERAL purpose FUNDS RECEIVED FROM FOOTHILL TRANSIT TO THESE cip PROJECTS EXECUTIVE SUMMARY:
Approval of Resolution No. 2023-58 (Attachment No. 1) will unappropriate $3,314,428 from various CIP projects and add $885,572 of fund balance of the City of Pomona’s (City) Proposition A Local Return Funds for a total of $4,200,000 of Proposition A Local Return Funds. The City will exchange $4,200,000 of Proposition A Local Return Funds for $3,150,000 of Foothill Transit’s General Purpose Funds. The General Purpose Funds received by the City of Pomona from Foothill Transit will then be appropriated to these projects as detailed in Attachment No. 2 – Exhibit A to the Resolution.
FISCAL IMPACT:
The fiscal impact is depicted in the tables below:
Category
“Street Rehabilitation – Districts 4 and 5”
Project No. 428-2590-XXXXX-67922
Beginning Budget
$2,403,852
Unappropriate Proposition A Local Return Funds
($203,943)
Appropriate General Funds Received from Foothill Transit in Exchange for Proposition A Local Return Funds $193,825
Revised Budget
$2,393,734
Expenses / Encumbrances as of March 29, 2023
($1,983,551)
Remaining Balance for Addendums, Construction, Contingencies, etc.* $410,183
Category
“Transit Improvement Program – Gold Line”
Project No. 428-2590-XXXXX-68559
Beginning Budget
$2,646,783
Unappropriate Proposition A Local Return Funds
($2,301,000)
Appropriate General Funds Received from Foothill Transit in Exchange for Proposition A Local Return Funds $2,186,848
Revised Budget
$2,532,631
Expenses / Encumbrances as of March 29, 2023
($347,074)
Remaining Balance for Addendums, Construction, Contingencies, etc.* $2,185,557
Category
“Technology – Work Order and Management System”
Project No. 428-2590-XXXXX-71060
Beginning Budget
$1,020,000
Unappropriate Proposition A Local Return Funds
($10,000)
Appropriate General Funds Received from Foothill Transit in Exchange for Proposition A Local Return Funds $9,504
Revised Budget
$1,019,504
Expenses / Encumbrances as of March 29, 2023
($28,532)
Remaining Balance for Addendums, Construction, Contingencies, etc.* $990,972
Category
“Arrow Highway Improvements”
Project No. 428-2590-XXXXX-71066
Beginning Budget
$799,485
Unappropriate Proposition A Local Return Funds
($799,485)
Appropriate General Funds Received from Foothill Transit in Exchange for Proposition A Local Return Funds $759,823
Revised Budget
$759,823
Expenses / Encumbrances as of March 29, 2023
$0
Remaining Balance for Addendums, Construction, Contingencies, etc.* $759,823
PREVIOUS RELATED ACTION:
On June 6, 2022, City Council adopted Resolution No. 2022-94 adopting the City’s FY 2022-23 Capital Improvement Program budget. On February 27, 2023, City Council approved a fund exchange agreement between the City of Pomona and Foothill Transit exchanging $4.2 million of Proposition A funds from the City of Pomona for $3.15 million of General Funds from Foothill Transit.
DISCUSSION:
Proposition A was approved by voters in 1980 to levy a half-cent sales tax in Los Angeles County. This funding is administered by Los Angeles County Metropolitan Transportation Authority (MTA) to be used to improve and expand public transit within LA County. The funding flows through the MTA and is allocated to itself and other agencies throughout the County on a per capita basis.
The City annually receives approximately $3,000,000 to $3,500,000 in Proposition A Local Funds. Nearly $1,000,000 of this funding is utilized at the City’s two transit stations for maintenance, security, and to fund transit subsidies (including Get About Tickets, bus passes, and Metrolink subsidies). The remaining funding is then transferred to various CIP projects or reserved as fund balance.
Through recent discussions with the MTA, the City has been advised that the projects proposed for the unappropriated Proposition A funds do not meet the guidelines for this funding. While the projects have a nexus with public transit, they do not specifically improve the transit stations, provide bus stops, or bus lanes. Further, these funds cannot be used to renovate streets and roads unless it is on the property of a transit station. Given the limited and very specific uses that Proposition A funds can be used for, City Staff have determined that it is financially prudent to transfer Proposition A funds in exchange for General Funds, which have fewer restrictions and will allow the City to continue work on the projects named in the tables above. The City was able to enter into an agreement with Foothill Transit to exchange $4.2 million of the City’s Proposition A funds for $3.15 million of General Funds to allow the City to continue work on the projects identified above. Foothill Transit approved the agreement on their side on March 28, 2023.
COUNCIL PRIORITIES & GOALS:
This item supports the June 21, 2021 City Council Priorities and Goals, Priority 1: Fiscal and Operational Responsibility – Goal C: Obtain additional grant funding and other revenues to help achieve City goals.
Prepared by:
Shandy Dittman
Public Works Fiscal and Project Manager
ATTACHMENT(S):
Attachment No. 1 –Resolution No. 2023-58
Attachment No. 2 – Exhibit A to Resolution
Amend FY 2022-23 CIP Budget by Exchanging $4.2 Million of Proposition A Local Return Funds from the City of Pomona for $3.15 Million of General Funds from Foothill Transit