CITY OF SIMI VALLEY
MEMORANDUM
June 9, 2025
TO: City Council
FROM: Department of Public Works
SUBJECT: APPROVAL OF REVENUE FUNDING SOURCE ADJUSTMENT FOR
CAPITAL PROJECTS AND A SUPPLEMENTAL BUDGET REQUEST
AUTHORIZING THE TRANSFER OF FUNDS FROM LOCAL
TRANSPORTATION DEVELOPMENT ACT FUND ( FUND 238 ) TO
TRANSIT FUND (FUND 750)
STAFF RECOMMENDATION
It is recommended that the Cit y Council approve the revenue adjustments to the transit capital project funding sources and authorize a supplemental budget request of $547,868.
The proposed supplemental budget request includes a reduction of $323,133 in State Assistance and $224,735 in Federal Assistance totaling $547,868, offset by a $547,868 increase in Transportation Development Act (TDA) (Fund 238) with an interfund transfer to Fund 750 for three capital projects , Heating Ventilation Air Conditioning System Upgrade (CP75000001) for $55,000, Electric Vehicles and Infrastructure (CP75000014) for $392,868 and Bus Wash System Upgrade (CP75000011) for $100,000.
BACKGROUND AND OVERVIEW
The California Transportation Development Act is a vital funding source for public transportation. Simi Valley Transit has historically utilized TDA funds as a local match required to access federal grant awards for transit operating expenses and capital projects. During the preparation of the FY 22 -23 budget, transit staff inadvertently used state assistance revenue (Object 36002) instead of TDA revenues (Object 39238) for the local match.
FINDINGS AND ALTERNATIVES
Examining the current capital project budget has highlighted the need to adjust the revenue funding sources for three capital projects currently underway . The proposed correction involves changing the revenue funding sources from federal and state assistance to TDA revenue funds. These discrepancies occurred during the annual budget entry review process and should be rectified. The following capital projects required adjustments:
Heating Ventilation Air Conditioning System Upgrade (CP75000001): Replaces $55,000 of state revenue funds (Object 36002) with TDA revenue funds (Object 39238).
Electric Vehicles and Infrastructure (CP75000014): Replaces $168,133 of state revenue funds (Object 36002) with TDA revenue funds (Object 39238) and replaces $224,735 of federal revenue funds (Object 36203) with TDA revenue funds (Object 39238).
AGENDA ITEM NO.
Consent (4)
Bus Wash System Upgrade (CP75000011): Replaces $100,000 of state revenue funds (Object 36002) with TDA revenue funds (Object 39238).
The proposed funding adjustments require the City Council to approve the use of TDA revenue funds (Object 39238) in place of state assistance revenue funds (Object 36002) and federal revenue funds (Object 36203). The City Council’s action would also include authorization to transfer $547,868 from TDA (Fund 238) to the Transit Fund (Fund 750).
The following alternatives are available to the City Council:
1. Approve adjustments to the revenue funding sources and a supplemental budget request of $547,868. This proposed supplemental budget request of $547,868 includes a reduction of $323,133 in State Assistance and $224,735 in Federal Assistance, totaling $547,868, offset by a $547,868 increase in Transportation Development Act (TDA) (Fund 238) with an interfund transfer to Fund 750 for three capital projects : Heating Ventilation Air Conditioning System Upgrade (CP75000001) Electric Vehicles and Infrastructure ( CP750000014), Bus Wash System Upgrade (CP75000011);
2. Provide staff with other directions.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to approve a budget modification that includes a reduction of $323,133 in State Assistance and $224,735 in Federal Assistance, totaling $547,868, offset by a $547,868 increase in TDA funds (Fund 238) with an interfund transfer to Fund 750 for three capital projects: Heating Ventilation Air Conditioning System Upgrade (CP75000001), Electric Vehicles and Infrastructure (CP750000014), Bus Wash System Upgrade (CP75000011); and approve a Supplemental Budget Request.
SUMMARY
A recent review of the Capital Improvement Project budget has revealed the need to adjust the revenue funding sources for the three transit capital projects . It is recommended that the City Council approve the adjustment and a supplemental budget request, which reduces the State and Federal Assistance by $547,868, while increasing TDA funds (Fund 238) by the same amount and authorizes the transfer of $547,868 from the TDA Fund (Fund 238) to the Transit (Fund 750) to cover the necessary local match.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Tan Koehler, Senior Management Analyst
2