OPEN SESSION MAY 29, 2025 PAGE 7 OF 10
Mr. Garman further explained that investments conformed to Investment Policy limitations for the trailing twelve-month period ended March 31, 2025. Portfolio structuring by account adhered to Board approved strategy and should remain consistent, despite short-term return volatility associated with the interest rate environment. Duration Targeted reserves maintain consistent structures and management does not attempt to time market rate changes. The longer duration strategies employed in certain reserves generate higher return volatility with expected higher average annual returns over multiyear periods. Upon motion by Member John F. von Paris and seconded by Member Mario J. Gangemi, continuation of the current investment strategies and benchmarks for all accounts was unanimously approved.
UPDATE – 3 RD QUARTER OPERATING BUDGET COMPARISON
Mr. Jeffrey Brown updated the MDTA Board on actual versus projected year-to-date spending for the third quarter of the Fiscal Year (FY) 2025 Operating Budget. As of March 31, 2025, 63% of the budget was spent compared to a target of 72%. Except for fixed charges, all Object Codes were at or below budget.
UPDATE – 3 RD QUARTER CAPITAL BUDGET COMPARISON
Ms. Jennifer Stump updated the MDTA Board on the status of actual third quarter Fiscal Year (FY) 2025 capital spending relative to the FY 2025 capital budget in the FY 2025-2030 Draft Consolidated Transportation Program (CTP). As of March 31, 2025, 36.5% of the FY 2025 budget was spent as compared to the targeted spending level of 75%. The total budget for FY 2025 is $809.8 million. The actual spending through the third quarter was $295.9 million. Ms. Stump explained that thirty-three of the 91 projects budgeted in FY 2025 were within the acceptable spending limits of 50% to 100% (plus or minus 25% of the 75% target). Due to normal lags in invoicing, generally two months, a plus or minus 25% threshold was determined to be reasonable. The actual spending through the third quarter for ten projects with the highest FY 2025 budgets was $215.1 million. She further explained that overall spending in FY 2025 remained low through the third quarter due to project invoicing delays related to the Key Bridge Rebuild. Specifically, only Kiewit’s expenditures through January have been posted, the General Engineering Consultant (GEC) contract just started invoicing and therefore are not reflected in the third quarter year to date expenditures, and State Highway Administration (SHA) has yet to invoice MDTA for the interim GEC or other SHA costs. Additionally, the Rehab Decks of EB Span - Phase I Deck Widening & Replacement of Deck Truss Spans project had a scope change that moved a large portion of the anticipated work to Phase II of the overall project. Negotiations with the Contractor for a second package of Phase I to execute an additional contract were not successful. However, MDTA has been negotiating with the Contractor further to add a portion of the work in order to take advantage of large equipment already mobilized to the bridge site.
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