OPEN SESSION DECEMBER 18, 2025 PAGE 7 OF 9
Mr. Garman explained the purpose of MDTA Board Resolution 25-02 for Municipal Financing and request approval for delegated authority. The resolution authorizes the issuance of toll revenue bonds to finance a portion of capital projects in calendar year 2026. He further explant that the $600 million limit contained in the resolution is based on the most recent official forecast approved by the MDTA Board in November 2025. Based on realized fiscal 2026 capital spending, more precise financing needs will be known in coming months. Resolution 25-02 amends Resolution 25-01 that was approved in April, extending the deadline to December 2026 from December 2025. With delegated authority granted in the prior resolution, management is currently working with bond counsel and Municipal Advisors on the Official Statement development and other elements of the financing process that comfortably requires 90-days to complete. The Executive Director and Chief Financial Officer (CFO) will have the authority to manage the bond sale and closing, including the award of the 2026 bonds to the successful underwriting firm(s) or negotiation of terms for a private placement. The resolution also provides for authority to select other service providers and to prepare and execute all closing documents, certificates, and bond forms.
Upon motion by Member Samuel D. Snead and seconded by Member John F. von Paris, the MDTA Board Resolution 25-02 - Municipal Financing was unanimously approved.
UPDATE – 1 ST QUARTER OPERATING BUDGET COMPARISON
Mr. Jeffrey Brown briefed the MDTA Board on the first quarter Fiscal Year (FY) 2026 spending compared to the FY 2026 Amended Operating Budget.
Mr. Brown explained that as of September 30, 2025 19% of the budget was spent compared to a target of 25% and that all Object Codes were at or below budget spending levels. The seasonality of the expenses, the timing of invoices, and the year-end accruals heavily impacted 1st quarter performance.
UPDATE – 1 st QUARTER CAPITAL BUDGET COMPARISON
Ms. Jennifer Stump updated the MDTA Board on the status of actual Fiscal Year (FY) 2026 capital spending against the FY 2026 capital budget in the FY 2026-2031 Draft Consolidated Transportation Program (CTP). Ms. Stump explained that as of September 30, 2025, 7.2% of the FY 2026 budget was spent as compared to the targeted spending level of 25%. The total budget for FY 2026 is $1.15 billion. The actual spending through the first quarter was $83.6 million. The first quarter percentage is low because there are outstanding accruals for work completed in FY 2025. Ms. Stump further explained that ninety-five of the 102 projects budgeted in FY 2026 were within the acceptable spending limits of 0% to 50% (plus or minus 25% of the 25% target) and that due to normal lags in invoicing, generally two months, a plus or minus 25% threshold was determined to be reasonable.
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