9/4/25 SCCRTC P7b - Measure D Expenditures and Financing Continued

OverviewSignificant funding gap for rail trail segments 8-11, with a shortfall of $17 million (projected cost: $137M + $88M = $225M; grants received: $120M).Measure D revenues are nearly fully committed, limiting future borrowing and project capacity.Urgency to secure additional funding by June 2027 to avoid losing $120M in outside grants.No contingency for litigation costs included in current budgets.Scaling back project scope may risk current grant funding and require state approval.Measure D Borrowing and Revenue ConstraintsBorrowing for active transportation projects uses only Measure D active transportation revenues, not full Measure D revenue.Other Measure D program areas remain unaffected and retain borrowing capacity under proposed scenarios.Project Cost Overruns and Funding Gaps for Segments 8-11Segments 10 and 11 over budget by $72 million; only $55 million projected funding, creating a shortfall.Measure D revenues cannot fully cover current project cost estimates; borrowing $55 million considered to partially fill gap.Future Measure D capacity to leverage state and federal funds will be significantly reduced after current funds are exhausted.Ongoing project cost estimates are subject to revision and updates are provided regularly.Grant Funding Risks, Deadlines, and Local ResponsibilitiesReceived $120 million in outside funding for rail trail segments 8–11.Funding deadline for construction is June 2027; must achieve 100% design and full funding by then.California Active Transportation Program does not cover cost overruns; local sponsors responsible for extra costs.Failure to meet deadlines risks loss of $120 million in grants.Additional construction funding needed to complete segments 8–11 and future segments 13–20.Efforts to Secure Additional Funding and Grant CompetitivenessApplied for two additional federal grants in 2023; received BUILD/RAISE grants in 2024.City of Santa Cruz submitted $20.5M Safe Streets for All grant for segments 8 and 9; decision expected December.Grant construction allocation request required by June 27, 2027; construction start not required by that date.Current Active Transportation Program cycle has significantly less funding than previous cycle.Projects are over budget; limited options and time remain to secure additional funding.Project Scope, Grant Compliance, and Feasibility ConcernsCalifornia Transportation Commission approval required for scope changes.Total cost for segments 8–11: $225 million (8–9: $88M, 10–11: $137M).Total grants received for segments 8–11: $120 million.Measure D revenue capacity estimated at $174–175 million; about $40 million obligated.No contingency funding allocated for litigation costs.No requirement to repay state design funds if projects not constructed.