Legislation Details

File #: 23-4611    Version: 1 Name:
Type: Financial Authorization Status: Passed
File created: 8/1/2023 In control: Commissioners Court
On agenda: 8/8/2023 Final action: 8/8/2023
Title: Request for discussion and possible action related to the annual mobility transfers. OMB recommends $287.7M be transferred from HCTRA to the County for FY24 to be used for transportation projects that meet the requirements of Section 284.0031 of the Texas Transportation Code.

Department: Management and Budget

Department Head/Elected Official: Daniel Ramos, Executive Director

 

Regular or Supplemental RCA: Regular RCA

Type of Request: Financial Authorization

 

Project ID (if applicable): N/A

Vendor/Entity Legal Name (if applicable): N/A

 

MWDBE Contracted Goal (if applicable): N/A

MWDBE Current Participation (if applicable): N/A

Justification for 0% MWDBE Participation Goal:  N/A - Goal not applicable to request

 

Request Summary (Agenda Caption):

title

                     Request for discussion and possible action related to the annual mobility transfers. OMB recommends $287.7M be transferred from HCTRA to the County for FY24 to be used for transportation projects that meet the requirements of Section 284.0031 of the Texas Transportation Code.

 

end

 

Background and Discussion:

 

OMB recommends redirecting the $40M contribution from the Flood Resiliency Trust Fund to Commissioners’ Precincts for eligible transportation projects. Annually, HCTRA transfers to the County, funds that can only be used for road and mobility purposes.  OMB and HCTRA have worked with our financial advisors to create and update a projected cash flow model that includes projected revenues and expenses of the Toll Road to determine approximately how much surplus revenue is anticipated for FY24. After review of the cash flow, OMB recommends increasing the transfers to Commissioners’ Precincts, above the base $168M in FY23.

 

In addition to the state law restrictions on the use of surplus revenue, the County has adopted a Debt Management Policy that imposes certain additional limitations. First, the Debt Management Policy confirms that toll road capital improvements and maintaining the toll road system in a state of good repair are first priorities over any non-toll transportation use. Second, the Debt Management Policy specifically prohibits the transfer of surplus revenue for non-toll transportation purposes if the Authority projects that it will fail to maintain sufficient liquidity, which is targeted at a minimum of 730 days’ “cash on hand”, after giving effect to any proposed or anticipated use of surplus revenue.

The funds would be split as follows:

Commissioners’ Precincts                       $242,000,000

County Engineering                                $  45,700,000

Total                                                                                     $287,700,000

 

Expected Impact:

 

HCTRA surplus revenue would be used to supplement the budget of the County-wide connectivity and mobility program that would normally be funded with tax revenue.  All such purposes are required to comply with the requirements set under Section 284.0031 and the transfers are made from surplus revenue only after debt service payments and other bond indenture requirements have been satisfied.

 

Alternative Options:

 

TBD

 

Alignment with Goal(s):

_ Justice and Safety

_ Economic Opportunity

_ Housing

_ Public Health

X Transportation

_ Flooding

_ Environment

X Governance and Customer Service

 

Prior Court Action (if any):

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Location: N/A

Address (if applicable):

Precinct(s): Countywide

 

Fiscal and Personnel Summary

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FY 23

FY 24

Next 3 FYs

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Additional Budget Requested

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Personnel (Fill out section only if requesting new PCNs)

Current Position Count for Service

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Additional Positions Requested

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Total Personnel

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Anticipated Court Date: August 8, 2023

Anticipated Implementation Date (if different from Court date): October, 1, 2023

Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item

Contact(s) name, title, department: Amy Perez, Deputy Executive Director, OMB

Attachments (if applicable):