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RATIFYING THE SAN JOAQUIN COUNCIL OF GOVERNMENTS’ ANNUAL FINANCIAL PLAN FOR FISCAL YEAR 2018-19
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RECOMMENDATION
It is recommended that the City Council approve a motion to ratify the San Joaquin Council of Governments’ Annual Financial Plan for Fiscal Year 2018-19.
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Summary
The San Joaquin Council of Governments (SJCOG) is requesting ratification of its Annual Financial Plan (AFP) for Fiscal Year (FY) 2018-19. The SJCOG Joint Powers Agreement requires the AFP to be ratified by a majority of the seven-member governments. As a member, the City of Stockton is being asked to ratify the AFP prior to June 30, 2018. The AFP implements the SJCOG FY 2018-19 Overall Work Program which includes ongoing and new projects and services. There are no General Fund or unrestricted funds appropriated directly for SJCOG operations.
DISCUSSION
Background
The SJCOG joint-powers agreement requires that a majority of the member governments noted above ratify the SJCOG’s budget each year. The SJCOG is a joint-powers authority comprised of the City of Stockton, San Joaquin County, Lodi, Manteca, Tracy, Ripon, Escalon and Lathrop. In addition, the Port of Stockton, San Joaquin Regional Transit District, and Caltrans District 10 are ex officio members. The City of Stockton is represented by three of the twelve members of the SJCOG Board of Directors by appointees from City Council. Currently, Vice Mayor Holman, Councilmember Andrade, and Councilmember Lofthus are Members of the Board. The SJCOG adopted the Annual Financial Plan for FY 2018-19 on March 22, 2018.
Present Situation
Attached is a request for ratification of the SJCOG Annual Plan which implements the FY 2018-19 Overall Work Program (Attachment A). The Annual Financial Plan included in Attachment A provides an outline of expenditures by category and line item comparing the proposed FY 2018-19 budget with the current FY 2017-18 adopted budget. The SJCOG Annual Financial Plan includes a 10.6% or $1,033,110 increase in revenues. The increase in revenues is due to Regional Surface Transportation Program (RSTP) carrying over from FY 2017-18, slight increases in Federal Highway Administration (FHWA) planning funds, and Federal Transit Administration (FTA) Metropolitan Planning Agency funds. In addition, $100,000 of previous year’s FTA funds is being reprogrammed.
State funding sources are 31.35% or $467,303 higher primarily due to an allocation of SB1 Transportation funding for both FY 17-18 and FY 18-19, and additional Freeway Service Patrol funding. In addition, local revenues are 3.74% or $155,433 higher due to increased sales tax-based revenues.
Expenditures for salaries and benefits are up by 6.1% for increases in medical and dental premimums, as well as a 5% pool for merit-based raises. Services and supplies increased by 2.6%, and transportation and training is up by 3.9%. The largest increase is in professional services at 21.8% from $3,121,209 to $3,976,944 reflecting the increase in State Route (SR) 99/120 Project Approval and Environmental Document (PA&ED) consulting work. Additional details of the Annual Financial Plan are included in Attachment A.
The Overall Work Program includes ongoing programs and services that will continue in FY 2018-19 including project development/design on SR-99/120, Interstate 205 (I-205) High Occupancy Vehicle (HOV) Lane Widening if funding is approved, and 15 bike/pedestrian/safe routes to school or smart growth projects funded by Measure K.
New studies and products proposed for FY 2018-19 include:
• Conducting seminars with University of the Pacific on Census Research and Forecasting
• Participation in the SR-99/I-5/I-205/SR-120 Integrated Corridor Management Plan and the Mega-Region Goods Movement Study
• Implementation of the new federally required Work Element - Performance-Based Planning and Programming
• Nearing completion of the Sustainable Communities Strategy Implementation Study, Mega-Regional Economic Model, Climate Change Planning Study, and the Public Health Impact Analysis Study
• Participation in the Tri-Valley - San Joaquin Valley Regional Rail Authority Technical Advisory Group
FINANCIAL SUMMARY
The operations and projects of the SJCOG are funded through local sales tax, state and federal grants, special assessments, and fees. The City of Stockton may participate in funding specific infrastructure projects in cooperation with the San Joaquin Council of Governments. However, there are no General Fund or unrestricted funds that are appropriated directly for SJCOG operations.
Attachment A - SJCOG FY 2018-19 Annual Financial Plan Summary