san joaquin hills proposed budget -...

05_31_2011_SJH Budget

San Joaquin Hills Proposed Budget

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Fiscal Year 2012


FY11 Accomplishments & Programs

•  Fiscal Responsibility –  San Joaquin Hills Agency Indenture amendments and

bond restructure

•  Providing Excellent Customer Service –  Continued work on the Toll Operations and Policy

Planning Study –  IBTTA Annual Meeting & Exhibition supporting sponsor –  Website redesign –  Measurable marketing campaigns –  New environmental brochure –  Spring Tour Program –  TCA & Avis/Budget Group partnership –  Renegotiated credit card processor resulting in a lower fee –  Reprocured FasTrak transponders at a lower unit cost –  Opened an average of 3,000 new FasTrak accounts each

month

•  Maintaining a State of Good Repair –  Completed toll plaza roof replacement project –  Upgraded violation cameras installed at Newport Coast Drive

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Project Initiatives

• Fiscal Responsibility – Accounting software upgrade

• Providing Excellent Customer Service – Toll Operations Strategic & Policy Planning

Study, Phase 3 – Expand “Fossils in Your Backyard” program – Customer incentive programs – GIS mapping project for Development Impact

Fee program – FY12 marketing program – Website redesign, phase II

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Project Initiatives (continued)

• Maintaining a State of Good Repair – Uninterruptible Power Supply (UPS)

replacement project – Transponder reader replacement project – Server replacements – Roof replacement – utility buildings and toll

booths – Violation camera upgrades at the El Toro Road

on and off ramp plazas

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FY12 Proposed Revenues

Total Revenues $106.2M

Fees & Penalties $11.1M / 10.5%

DIF $1.0M / 0.9%

Tolls $87.6M 82.5%

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Interest Earnings $6.5M / 6.1%


Toll Revenue - $87.6M

•  Assumes transactional toll revenue of $90.4 million, a 2.5% increase over projected FY11 transactional toll revenue

•  Reduced by violations and non-revenue transactions of $2.8 million estimated at approximately 3.1% of transactional toll revenue

–  1.4% of the revenue is pursuable

–  1.7% of the revenue represents unprocessable violations and non-revenue transactions

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05_31_2011_SJH Budget 7

FY12 Recommended Toll Rates

Location Time/Type Current FY11 Proposed FY12

Change from Current

El Toro Cash AVI

$2.25 $2.00

$2.50 $2.10

$0.25 $0.10

Catalina View ML Cash Off-Peak AVI Off-Peak

$4.75 $4.00

$5.00 $4.20

$0.25 $0.20

Cash Peak AVI Peak

$5.50 $4.75

$5.75 $5.00

$0.25 $0.25

Weekend Cash Weekend AVI

$4.50 $3.75

$4.75 $3.95

$0.25 $0.20

Newport Coast Cash AVI

$2.00 $1.75

$2.25 $1.85

$0.25 $0.10

La Paz Cash AVI

$1.50 $1.25

$1.75 $1.30

$0.25 $0.05

Aliso Creek Cash AVI

$1.75 $1.50

$2.00 $1.60

$0.25 $0.10

Bonita Canyon Cash AVI

$1.00 $0.75

$1.25 $0.80

$0.25 $0.05


FY12 Budget Sources

Total Revenues

Rollover of Operating Account Funds Not Spent in FY11

Available Unrestricted Cash

$106.2M

$0.8M

$8.7M

Sources Available to Cover Cash Uses $115.7M

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FY12 Proposed Budgeted Uses

Total Uses $159.8M

Debt Service $90.1M / 56.4%

Planning, Environmental & Construction $0.7M / 0.4% Administration

$5.6M / 3.5%

Toll Ops $7.7M / 4.8%

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Non-Cash Debt Accretion

$55.7M 34.9%

Cash Uses $104.1M


0.4%

Planning, Environmental & Construction - $0.7M

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FY11 Amended Budget

FY11 Est. Actuals

FY12 Budget

Change Between Est. FY11 Actuals

& FY12 Budget

Environmental $0.2M $0.2M $0.3M $0.1M

Other $0.1M $0.0M $0.1M $0.1M

Strategic & Policy Planning Study $0.0M $0.0M $0.3M $0.3M

Total $0.3M $0.2M $0.7M $0.5M


4.8%

Toll Operations - $7.7M

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FY11 Amended

Annual Budget

FY11 Est. Actuals

FY12 Budget

Change Between Est. FY11 Actuals & FY12 Budget

Toll Customer Service and Compliance $4.0M $3.9M $4.1M $0.2M

Toll Systems $1.5M $1.5M $1.6M $0.1M

Toll Equipment $0.5M $0.4M $0.4M $0.0M

Toll Collections $1.2M $1.2M $1.2M $0.0M

Toll Facilities $0.4M $0.4M $0.4M $0.0M

Total $7.6M $7.4M $7.7M $0.3M


Administration - $5.6M

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FY11 Amended Budget

FY11 Est. Actuals

FY12 Budget

Change Between FY11 Est. Actuals &

FY12 Budget

Salaries & Benefits $3.0M $2.7M $3.0M $0.3M

Insurance $0.9M $0.7M $0.8M $0.1M

Legal $0.4M $0.2M $0.4M $0.2M

Consulting $0.8M $0.7M $0.4M ($0.3M)

Rent $0.4M $0.4M $0.4M $0.0M

Transportation & Travel $0.1M $0.1M $0.1M $0.0M

Office Expenses, Equipment, and Other $0.3M $0.3M $0.3M $0.0M

Marketing $0.2M $0.2M $0.2M $0.0M

Total $6.1M $5.3M $5.6M $0.3M


Debt Coverage Calculation FY12

Reflects estimated earnings on specific accounts in both the enterprise and debt service funds as defined per the indenture. *

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Budget FY12 ($ in Thousands)

Adjusted Net Toll Revenues Total Toll Revenues Including Fees and Fines $98,656 Interest Earnings $6,298

Current Expenses – Funded From Toll Revenue

Adjusted Net Toll Revenues $92,460

Annual Debt Service $90,132

Coverage Ratio 1.03

($12,494)

*


Estimated FY12 Available Cash & Toll Stabilization

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Estimated Available Cash

Estimated Available Cash at 7/1/11 $15,676,000

Construction Uses (PEC) Non-Operating Administration Expenses

Estimated Balance of Available Funds Prior to Current Year Revenues 14,652,000

Plus Projected Surplus Revenues Plus Projected DIFs and Interest Less Transfer to Toll Stabilization

18,249,000 1,240,000

Estimated Available Funds at 6/30/11 8,741,000

FY12 DIFs and Interest 1,084,000

Estimated Available Funds at 6/30/12 $9,825,000

Toll Stabilization (Restricted)

Estimated Toll Stabilization Funds at 7/1/11 $34,458,000

Estimated Debt Defeasance to Meet Coverage Plus Projected Interest Transfer From Available Cash

145,000

25,400,000

Estimated Toll Stabilization Funds at 6/30/11 27,103,000

Less PEC* Less Non-Operating Admin Exp* Surplus Revenue Interest

1,693,000 83,000

Estimated Toll Stabilization Funds at 6/30/12 $27,371,000

(32,900,000)

(25,400,000) (819,000) (689,000)

(212,000) (812,000)

* Eligible additional costs per indenture amendment.


Reserves

•  Caltrans Maintenance Station $7.8M

•  Current Expense $3.4M

•  Use and Occupancy $15.0M

•  Debt Service Reserve $225.7M

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05_31_2011_SJH Budget 16

Staff Recommendation

•  Approve budget totaling $159,839,884 •  Approve proposed staffing plan •  Adopt proposed toll rates as presented on the earlier slide •  Authorize CEO to reallocate within the following categories

–  Administration $5,642,022 –  Planning, Environmental & Construction $689,436 –  Toll Operations $7,669,707 –  Debt Expenses $145,838,719

•  Direct staff to submit budget to the trustee

san joaquin hills proposed budget -...

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