SamTrans Board Approves Balanced Operating and Capital Budgets
The San Mateo County Transit District Board of Directors unanimously approved balanced Fiscal Year 2016 operating and capital budgets at its regular meeting June 3.
The $139 million operating budget for FY2016 represents a $6 million increase over the previous year’s budget. Much of the increase is driven by the addition of five staff positions to the FY2016 budget and a 3.25 percent pay increase for district administrative employees. Union employees will receive a 3 percent pay increase as called for in a three-year contract previously approved by the board. SamTrans expects to collect increased farebox revenue, thanks to ongoing bus ridership gains as well as ridership increases across all other district services. The district is projecting a modest increase in sales tax revenues in FY2016.
The district’s budget is balanced thanks to the implementation of multiple cost reductions and efficiencies including employee contributions to health and retirement benefits, past wage and hiring freezes and other cost-saving measures. A key component of the balanced budget is a $5 million contribution from San Mateo County’s Measure A program to cover the cost of providing services to elderly and disabled county residents. Despite these steps, SamTrans is using about $2 million in reserve funds to achieve a balanced budget.
SamTrans continues to struggle with a structural deficit as a result of its outstanding debt obligations. Earlier this year, the district was able to refinance this debt to help contain the impact to the district’s budgets.
“One of my primary responsibilities is to align the current and future budgets with the SamTrans Strategic Plan and stabilize the financial standing of all three of the district’s agencies,” said Jim Hartnett, San Mateo County Transit District General Manager/CEO. “This budget represents one of many steps toward achieving this goal.”
The FY2016 capital budget was approved in the amount of $42 million. The largest capital project in this year’s budget includes the final increment of funding needed to upgrade SamTrans fleet. In FY2015, SamTrans began replacing more than 100 buses in its fleet that had aged out of their useful service life.
Other improvement projects receiving capital funding include replacing and upgrading information technology equipment, safety and security upgrades for the district’s administrative offices in San Carlos and bases and efficiency improvements at District facilities to enhance sustainability.
