OPEN SESSION FEBRUARY 27, 2025 PAGE 5 OF 7
Mr. Garman explained that the chosen strategies and benchmark indices represent a reasonable and prudent compromise between long-term, multiyear return/income focus and tolerance for return volatility. Also, no changes in strategy or benchmarks are recommended. Mr. Garman further explained that investments conformed to Investment Policy limitations for the trailing twelve-month period ended December 31, 2024. 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 Dontae Carroll, continuation of the current investment strategies and benchmarks for all accounts was unanimously approved.
UPDATE – 1 ST QUARTER OPERATING BUDGET COMPARISON
Mr. Jeffrey Brown updated the MDTA Board on actual versus projected year-to-date spending for the second quarter of Fiscal Year (FY) 2025 Operating Budget. As of December 31, 2024, 37% of the budget was spent compared to a target of 49%. Except for personnel expenses, all Object Codes were below budget.
UPDATE – 1 ST QUARTER CAPITAL BUDGET COMPARISON
Ms. Jennifer Stump updated the MDTA Board on the status of actual 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 December 31, 2024, 22.7% of the FY 2025 budget was spent as compared to the targeted spending level of 50%. The total budget for FY 2025 is $809.8 million. The actual spending through the second quarter was $183.4 million. Ms. Stump further explained that twenty-seven of the 91 projects budgeted in FY 2025 were within the acceptable spending limits of 25% to 75% (plus or minus 25% of the 50% target). Due to normal lags in invoicing, generally two months, a plus or minus 25% threshold was determined to be reasonable. Actual spending through the second quarter for ten projects with the highest FY 2025 budgets was $126.5 million.
UPDATE – QUARTERLY UPDATE ON TRAFFIC AND REVENUE
Ms. Deborah Sharpless gave a quarterly and year-to-date update to the MDTA Board regarding traffic and toll revenue trends compared to the previous year and the forecast.
Ms. Sharpless explained that this quarterly review looks at traffic and toll revenue trends and compares actual system-wide experience with traffic and toll revenue forecasts. CDM Smith tracks and evaluates the performance of traffic at the lane level and traffic and revenue collected on a cash basis
She further explained that actual collected revenue was below forecast by $2.2 million for the period ending December 31, 2024 and that during December 2024, $3.3 million of transaction processing was delayed.
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