FY 2017 Capital and Operating Budget November 24, 2015 I. A I 5 I Schedule Date Meeting Action September 15, 2015 N/A a. Requested FY 2017 Operating & Capital Budgets and Six-Year Capital Program submitted to Board of Directors by Executive Director b. Board Chair refers to Finance Committee September 24, 2015 Finance Committee a. Presentation of FY 2017 Operating & Capital Budgets and Six-Year Capital Program b. Public hearing November 24, 2015 Finance Committee a. Decision making re: approval to transmit FY 2017 Operating & Capital Budgets to Mayor and City Council for input b. If approved, FY 2017 Operating & Capital Budgets transmitted to Mayor and Council by December 1, 2015. c. Approval of Six-Year Capital Program By December 1, 2015 Finance Committee a. Transmittal of the approved FY 2017 Operating & Capital Budgets to the City through the Executive Director by December 1st January 2016 HART and City Council a. Update of FY 2016 Capital Budget per Bill 23 passage January-June, 2016 City Council By June 30, 2016 Board b. City Council Budget Committee review of FY 2017 Operating & Capital Budgets c. City Council review of FY 2017 Operating & Capital Budgets completed by mid-June 2016 a. Public hearing on FY 2017 Operating & Capital Budgets b. Decision making re: adoption of FY 2017 Operating & Capital Budgets via resolution 2 CIP Appropriation Summary After 2017, $588 9% FY 2017, $182 3% Prior Years, 2,878 FY 2016, 47% $2,520 41% I-l in in millions 0 A I A 5 I FY 2017 CIP Cost Type Contract CPP Number Contract Name DBB600 Park-and-Ride Lots Construction MI930 Project-wide Elevator / Escalator Design-Furnish-Install-Operate MM290 Westside Construction Engrg & Inspection (CE&I) Services MM920 HDOT Coordination Consultant - West Oahu/Farrington Section MM921 HDOT Coordination Consultant – Kamehameha Section MM922 HDOT Coordination Consultant - Airport Section MM930 HDOT State Safety Oversight Agency (SOA) Consultant MM940 Kako'o Consultant MM947 On-Call Contractor 2 MM951 Owner-Controlled Insurance Program (OCIP) Broker + Insurance MM962 Core Systems Contract Oversight Consultant MM964 Safety & Security Certification Consultant MM975 LEED Commissioning Services for MSF PA101 Programmatic Agreement– Humanities Program PA103 Programmatic Agreement– HPC Park Improvements Contract Total Proposed FY 2017 $ 7,351,000 $ 15,354,000 $ 5,923,000 $ 750,000 $ 1,000,000 $ 2,000,000 $ 591,000 $ 400,000 $ 1,000,000 $ 8,000,000 $ 8,770,000 $ 800,000 $ 15,000 $ 110,000 $ 113,000 $ 52,177,000 Contingency Contingency Project Contingency Contingency Contingency Unallocated Contingency Contingency Total $ $ Grand Total $ 70,000,000 60,122,000 130,122,000 182,299,000 4 Six Year CIP Cost Type Contract CPP NumberContract Name DBB600 Park-and-Ride Lots Construction MI930 Project-wide Elevator / Escalator Design-Furnish-Install-Operate MM290 Westside Construction Engrg & Inspection (CE&I) Services MM901 Program Management Support Consultant 2 (PMSC-2) MM913 General Engineering Consultant, Construction (GEC-3) MM920 HDOT Coordination Consultant - West Oahu/Farrington Section MM921 HDOT Coordination Consultant – Kamehameha Section MM922 HDOT Coordination Consultant - Airport Section MM930 HDOT State Safety Oversight Agency (SOA) Consultant MM940 Kako'o Consultant MM947 On-Call Contractor 2 MM951 Owner-Controlled Insurance Program (OCIP) Broker + Insurance MM962 Core Systems Contract Oversight Consultant MM964 Safety & Security Certification Consultant MM975 LEED Commissioning Services for MSF PA101 Programmatic Agreement– Humanities Program PA103 Programmatic Agreement– HPC Park Improvements Contract Total Proposed FY Proposed FY Proposed FY 2017 2018 2019 7,351,000 0 0 15,354,000 13,713,000 0 5,923,000 0 0 0 14,298,000 0 0 15,197,000 0 750,000 0 0 1,000,000 0 0 2,000,000 0 0 591,000 0 0 400,000 0 0 1,000,000 0 0 8,000,000 8,000,000 2,970,000 8,770,000 8,770,000 8,770,000 800,000 0 0 15,000 0 0 110,000 0 0 113,000 0 0 52,177,000 59,978,000 11,740,000 Proposed FY 2020 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Proposed FY 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Proposed FY 2022 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6-Year Total FY 2017-2022 7,351,000 29,067,000 5,923,000 14,298,000 15,197,000 750,000 1,000,000 2,000,000 591,000 400,000 1,000,000 18,970,000 26,310,000 800,000 15,000 110,000 113,000 123,895,000 ContingencyContingencyProject Contingency Unallocated Contingency Contingency Total 70,000,000 103,123,000 60,122,000 88,572,000 130,122,000 191,695,000 53,000,000 45,521,000 98,521,000 36,000,000 54,000,000 30,920,000 46,380,000 66,920,000 100,380,000 32,000,000 27,485,000 59,485,000 348,123,000 299,000,000 647,123,000 Grand Total 182,299,000 251,673,000 110,261,000 66,920,000 100,380,000 59,485,000 771,018,000 5 Potential FY 2016 Re-Appropriations • By Board Policy budget authorization is for 1 year, lapsing on June 30th. • If contracts are not awarded by June 30, 2016, then those costs will need to be reappropriated from FY 2016 to FY 2017 by the HART Board of Directors. • FY 2017 Budgets also coming back to HART Board by 6/30/2016 for adoption. 6 FY 2016 CIP Update Cost Type Contract CPP Number ART DB275 DB450 DB550 DBB171 DBB371 DBB510 DBB511 FD600 HART201 MI900 MI930 MM913 MM920 MM921 MM922 MM930 MM940 MM947 MM950 MM951 MM962 MM964 PA102 ROW UTIL Contract Name Project-wide Art Pearl Highlands Garage, Bus erminal (PHTG) + H2 Ramp DB Airport section Guideway and Station Group (AGSG) DB City Center Section Guideway and Station Group (CCGS) DB West Oahu Station Group (WOSG) Construction Kamehameha Highway Station Group (KHSG) Construction City Center Section Utilities Construction Dillingham Utilities and Roadway Park-and-Ride Lots Final Design HART Expenses & ODC Project-wide Fare Collection Design-Furnish-Install Project-wide Elevator / Escalator Design-Furnish-Install-Operate General Engineering Consultant, Construction (GEC-3) HDOT Coordination Consultant - West Oahu/Farrington Section HDOT Coordination Consultant – Kamehameha Section HDOT Coordination Consultant - Airport Section HDOT State Safety Oversight Agency (SOA) Consultant Kako'o Consultant On-Call Contractor 2 Owner-Controlled Insurance Program (OCIP) Consultant Owner-Controlled Insurance Program (OCIP) Broker + Insurance Core Systems Contract Oversight Consultant Safety & Security Certification Consultant Programmatic Agreement– Historic Preservation Committee Real Estate/Right-of-Way Acquisition New Utilities or Relocations by Private Utility Owners Contract Total Contingency Contingency Contingency Total Grand Total Contingency Approved FY 2016 Appropriations 5,500,000 191,423,500 425,146,800 443,165,400 58,494,000 82,338,285 63,025,100 0 2,465,900 20,000 10,000,000 16,474,000 8,233,500 5,613,000 2,600,000 1,400,000 421,000 100,000 0 208,100 5,000,000 8,078,000 1,400,000 200,000 168,200,000 34,000,000 1,533,506,585 Revised FY 2016 Appropriations 5,000,000 130,000,000 690,000,000 720,000,000 56,088,470 108,106,000 0 76,000,000 795,900 20,000 21,000,000 16,474,000 8,233,500 5,613,000 2,600,000 1,400,000 421,000 100,000 7,500,000 416,250 8,000,000 8,078,000 1,400,000 200,000 168,200,000 34,000,000 2,069,646,120 Change -500,000 -61,423,500 264,853,200 276,834,600 -2,405,530 25,767,715 -63,025,100 76,000,000 -1,670,000 0 11,000,000 0 0 0 0 0 0 0 7,500,000 208,150 3,000,000 0 0 0 0 0 536,139,535 250,000,000 250,000,000 450,000,000 450,000,000 200,000,000 200,000,000 1,783,506,585 2,519,646,120 736,139,535 7 FY 2017 Operating Budget Legai All Other RESE we 6% 4% City Reim b. 10% Rentals 12% alary and Fringe 68% Total Operating Cost $21,380,800 - .al-I'z? *Excludes Debt Service I. A I it 5 I FY 2017 Operating Budget Budget Description Labor Costs Regular Pay Fringe Benefits OPEB Contribution All Other Labor Costs Sub-total Current Expenses Changes: Rentals Professional Svcs. Direct Reimb Other Fixed Charges (Stipend) Cleanup: Office & Computer Supplies Telephone Parts / Equip Communication Svcs Advertising, Publication of Notices Printing & Binding All Other Current Expenses Sub-total Total Operating Expenses Debt Service Interest Expense Debt Service Sub-total Grand Total 2016 Budget 2017 Change From FY 2016 Budget Budget Amount % 9,401,600 4,326,400 195,000 96,000 14,019,000 9,718,600 4,470,600 292,000 96,000 14,577,200 317,000 144,200 97,000 0 558,200 3.4% 3.3% 49.7% 0.0% 4.0% 2,445,000 2,031,500 500,000 2,515,500 2,070,800 0 70,500 39,300 (500,000) 2.9% 1.9% -100.0% 150,000 40,000 210,300 128,000 45,000 1,500 1,642,500 7,193,800 130,000 60,000 188,300 150,000 35,000 11,500 1,642,500 6,803,600 (20,000) 20,000 (22,000) 22,000 (10,000) 10,000 0 (390,200) -13.3% 50.0% -10.5% 17.2% -22.2% 666.7% 0.0% -5.4% 21,212,800 21,380,800 168,000 0.8% 8,000,000 8,000,000 10,000,000 10,000,000 2,000,000 2,000,000 25.0% 25.0% 29,212,800 31,380,800 2,168,000 7.4% 9 Operating Budget History FY 2014 Row Labels Labor Cost Regular Pay Overtime, Night Shift, Temp Assign Pay Accumulated Lump sum Vacation Pay Fringe Benefits Service or Merit Awards OPEB Contribution Current Expense Advertising, Publication of Notices Audit Service Fee Communication Svcs Computer Software Maintenance Ageement Fees (Memberships, Registration & Parking) Insurance on Equip. & Gen. Liab. Legal Services Meals & Foods Office & Computer Supplies Other Fixed Charges Other Repairs to Bldgs & Structures Parts / Equip Postage & Shipping Printing & Binding Professional Svcs. Direct Reimb Professional Svcs. Other R&M - Office Furniture & Equip Rentals Safety & Misc Supplies Telephone Travel Expense - Out-of-State Equipment Debt Service Grand Total FY 2015 FY 2016 Actual Budget 11,268,354 13,843,425 7,448,730 9,414,755 118,849 68,500 163,568 26,500 3,537,207 4,332,670 0 1,000 0 0 Actual Variance % Expended Budget 11,664,110 -2,179,315 84% 14,019,000 7,755,444 -1,659,311 82% 9,401,600 148,163 79,663 216% 53,000 2,866 -23,634 11% 42,000 3,757,566 -575,104 87% 4,326,400 71 -929 7% 1,000 0 0 0% 195,000 53% 48% 93% 87% 65% 94% 90% 3% 95% 34% 0% 0% 5% 23% 623% 60% 10% 28% 91% 52% 137% 85% 7,187,800 45,000 80,000 128,000 100,000 50,000 73,000 1,000,000 6,500 150,000 500,000 5,000 210,300 39,000 1,500 2,031,500 170,000 12,000 2,445,000 6,000 40,000 95,000 FY 2017 Budget 14,577,200 9,718,600 53,000 42,000 4,470,600 1,000 292,000 6,797,600 35,000 80,000 150,000 100,000 50,000 73,000 1,000,000 6,500 130,000 0 5,000 188,300 39,000 11,500 2,070,800 170,000 12,000 2,515,500 6,000 60,000 95,000 Change % From FY 16 Change 558,200 4% 317,000 3% 0 0% 0 0% 144,200 3% 0 0% 97,000 50% 5,188,240 27,672 62,530 113,424 52,121 42,414 126,490 646,961 9,780 51,089 0 316 97,636 3,628 6,325 1,325,875 189,481 184 2,305,581 2,550 24,623 99,560 7,631,604 45,000 60,000 170,000 58,000 50,000 73,000 1,202,354 6,500 150,000 500,000 300,000 210,300 39,000 1,500 2,044,307 190,000 12,000 2,378,643 6,000 40,000 95,000 4,056,139 21,659 56,000 147,669 37,749 47,206 65,647 33,939 6,199 51,226 0 0 11,253 9,002 9,350 1,227,062 18,313 3,329 2,172,228 3,105 54,676 80,527 -3,575,465 -23,341 -4,000 -22,331 -20,251 -2,794 -7,353 -1,168,415 -301 -98,774 -500,000 -300,000 -199,048 -29,998 7,850 -817,245 -171,687 -8,671 -206,416 -2,895 14,676 -14,473 -390,200 -10,000 0 22,000 0 0 0 0 0 -20,000 -500,000 0 -22,000 0 10,000 39,300 0 0 70,500 0 20,000 0 -5% -22% 0% 17% 0% 0% 0% 0% 0% -13% -100% 0% -10% 0% 667% 2% 0% 0% 3% 0% 50% 0% 53,402 6,000 399 -5,601 0 6,000 6,000 0 0 0 0 0 0 0 8,000,000 10,000,000 2,000,000 0 16,509,996 21,481,029 15,720,648 -5,760,381 73% 29,212,800 31,380,800 2,168,000 7% 10 Mahala QuestionsExtra Slides • The following slides are to answer questions • They are not part of the formal presentation 12 Cash Flow / Debt Schedule Table A-1, Capital Plan Cash Flows @ 4% GET Surcharge Growth Rate ($ in millions) Project Total Beginning Cash Balance Project Fiscal Years: To Date 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 $298 $298 $293.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 $50.0 G.E.T. $4,815 $1,091 $233.4 $239.5 $249.1 $259.0 $269.4 $280.2 $291.4 $303.0 $315.1 $327.8 $340.9 $354.5 $261.2 Federal Grant $1,550 $411 $223.7 $302.8 $283.0 $215.2 $114.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Federal 5307 $0 $0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Project Funding Sources: All Other Total Revenue $6 $5 $0.5 $0.2 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $6,371 $1,507 $457.5 $542.5 $532.1 $474.2 $383.5 $280.2 $291.4 $303.0 $315.1 $327.8 $340.9 $354.5 $261.2 ($107.9) Debt Proceeds TECP (net) Max $350 m Variable Bonds Fixed Rate Bonds Less Issuance Costs $0 $0 $96.3 $141.3 $43.5 $15.0 ($18.9) $67.6 ($45.8) ($11.4) ($24.0) ($37.4) ($51.6) ($66.7) $252 $0 $0.0 $251.7 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1,127 $0 $0.0 $76.0 $502.7 $238.7 $309.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0 $0.0 ($2.7) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($9) ($2.7) ($1.7) ($1.9) $0.0 Total Debt Proceeds $1,370 $0 $96.3 $466.3 $543.5 $252.0 $289.1 $67.6 ($45.8) ($11.4) ($24.0) ($37.4) ($51.6) ($66.7) ($107.9) Total Project Sources $7,741 $1,507 $553.8 $1,008.8 $1,075.6 $726.2 $672.6 $347.8 $245.6 $291.6 $291.1 $290.4 $289.3 $287.8 $153.3 $4,555 $900 $615.9 $805.7 $763.8 $615.4 $600.4 $230.9 $23.2 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $187 $143 $31.6 $7.7 $4.2 $0.4 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Project Uses: Construction Design ROW / Utilities $511 $105 $106.6 $146.6 $109.8 $43.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Program-Wide $346 $218 $21.7 $21.1 $20.7 $18.7 $18.5 $18.5 $9.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 HART / City $190 $70 $19.0 $21.4 $20.0 $19.4 $16.5 $16.2 $7.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $81 $77 $1.9 $1.4 $0.5 $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Project Costs $5,870 $1,512 $796.8 $1,003.8 $919.0 $697.0 $635.3 $265.6 $40.2 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Debt Svcs Principal $1,379 $0 $0.0 $0.0 $0.0 $0.0 $0.0 $16.6 $120.5 $211.8 $217.8 $224.0 $230.4 $236.9 $121.0 Planning Debt Service Interest $310 $0 $0.1 $5.0 $16.6 $29.2 $37.3 $45.6 $45.0 $39.8 $33.3 $26.4 $18.9 $10.9 $1.8 Transfer to Reserve $140 $0 $0.0 $0.0 $140.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Transfer from Reserve Other Debt Service Fees Debt Service Reserves: net of interest Total Project Uses Net Current Change Ending Cash Balance ($140) $0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0 $0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($140.0) $1,689 $0 $0.1 $5.0 $156.6 $29.2 $37.3 $62.2 $165.4 $251.6 $251.1 $250.4 $249.3 $247.8 ($17.2) $0.0 $288 $0 $0.0 $0.0 $0.0 $0.0 $0.0 $20.0 $40.0 $40.0 $40.0 $40.0 $40.0 $40.0 $28.0 $7,847 $1,512 $796.9 $1,008.7 $1,075.6 $726.2 $672.6 $347.8 $245.6 $291.6 $291.1 $290.4 $289.3 $287.8 $10.8 ($105) $193 ($5) $293 ($243.0) $50 $0.1 ($0.0) $0.0 $0.0 ($0.0) ($0.0) $0.0 $0.0 ($0.0) ($0.0) ($0.0) $142.5 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $193 13 MILLIONS Cash Balances $500 $450 $400 $350 $441 $428 $419 $392 $441 $370 $392 $300 $367 $355 $355 $367 $322 $333 $347 $348 $346 $338 $348 $346 $322 $289 $250 $327 $327 $274 $293 $284 $292 $284 $234 $200 $266 $284 $232 $235 $232 $235 $201 $150 $100 June July Aug Sep Oct Nov Dec Jan Feb Mar April May June July Aug Sep Oct Nov 15 Ending Cash Balance Lowest Monthly Point As of November 13, 2015 14 Project Needs Debt Financing Debt Required Project Cost Line • Debt financing for project needed to meet project cash flow requirements to be funded by G.E.T. Surcharge revenues. • G.E.T. Surcharge used to payoff project debt. 15 Office Rental Costs • In 2010, City negotiated HART’s office space lease at $2.72 per square foot – Lower cost and available space than leasing in Kapolei at $3.86 per sq. ft. • Current lease rate is $2.92 per sq. ft. vs. current Downtown average of $2.91 per sq. ft. 16