The Nov. 14 RFTA board meeting focused heavily on the third iteration of the 2025 budget and strategic planning. During this shorter meeting, members leaned into clear questions and considerations not only of what to expect in 2025 but in the several years following.
There were no public comments volunteered at the beginning of the meeting. In response to the prompt for board comments, Aspen Mayor Torre offered general congratulations and condolences to attendees depending on how they feel about local election results. There was no discussion following the statement, so the board continued with the agenda.
Acting Chair Greg Poschman introduced the consent items for the meeting: Resolution 2024-17 authorizing RFTA to amend the existing intergovernmental agreement (IGA) with the City of Glenwood Springs for maintenance of the 27th Street and Highway 82 underpasses; Resolution 2024-18 authorizing RFTA to amend the existing IGA with the Colorado Department of Transportation for West Glenwood Transit Center; and Resolution 2024-19 authorizing submission of a grant application to the Colorado Department of Local Affairs Energy/Mineral Impact Assistance Fund grant program for the Glenwood Springs Maintenance Facility (GMF) and Regional Transit Center Underground Storage Tanks Replacement Project. All three resolutions passed quickly.
Presentations
Finance director Paul Hamilton shared notable updates and revisions in the third draft of the 2025 budget. He emphasized that this is the last in-depth discussion of the budget ahead of the planned adoption vote at the December meeting. Anticipated 2025 expenditures are now $152 million, exceeding an expected $130.9 million in revenue and $18.2 million in other financing (from grants). This means that RFTA will be drawing down $2.9 million from its fund balance to cover expenditures. This is a change from the second draft, and the increased expenditures reflect 48 priority projects that have been added to the budget since October. The third iteration also added capital grant revenues and expenses for GMF phase projects.
Hamilton shared financial overview tables and called out specific monetary updates reflected in the graphics. He called attention to differences from the 2024 budget and where grants have been added to third-draft imagery and tables. Among these changes an increase from 0% to 1% sales tax revenue budget assumption for the Town of Basalt, administrative expenditures increase by $1 million, a 6% operations expenditure increase, 12% health insurance increase, and First and Last Mile Mobility funding increase. Other contributing facets are business insurance and employee housing-related costs.
The board also reviewed a summary of organization restructuring following the transition to new CEO Kurt Ravenschlag in early autumn. Seven types of positions are being converted or renamed and defined, a facility director position is being eliminated by shifting the employee to a contractor role for two years before combining it with vehicle management, since both roles involve oversight of physical assets. A new planning director position is also being established.
The budget presentation turned to a brief discussion of the Community Grant Program and allocations. This coming year will be the second of three years that RFTA contributes to Garfield Clean Energy; the commitment for 2025 is $49,500 to support active energy management, transportation improvements and administrative aspects. RFTA has also committed to contributing $10,000 for design and construction of the Lova Trail and $6,000 to support a local match for the 5310 Mobile Mobility Management Grant for the regional transit coordinating council.
Four notable capital expenditures added to the third draft of the budget cover phases of the GMF. These phases include expansion Phase 6B for the administrative facility building, Phase 6A for the West Glenwood Transit Center, Phase 8 for the zero-emissions vehicle equipment storage facility and the addition of two traveler vehicles to the RFTA fleet. Traveler vehicles are smaller paratransit vehicles that supplement set bus route services, and this specific capital expenditure is being sourced from secured federal grant funding.
Budget conversation concluded with a summary of strategic initiative changes and a short discussion around what RFTA might anticipate from the incoming presidential administration. Poschman raised this question, specifically querying whether RFTA may receive less federal funding in the coming years. Ravenschlag reassured the board that given both the quantity and cumulative value of federal grants RFTA has received over the past four years, it does not need as much federal funding in the next few years.
Chief Operating Officer David Pesnichak provided an overview of the initial First and Last Mile Mobility committee meeting that occurred on Oct. 29. The board then aired the resolution to formally establish the committee for it to carry forward work on the topic for at least six to seven months. The motion passed unanimously. RFTA’s final 2024 board meeting is Dec. 12, and those convened will vote on the final iteration of the 2025 budget.