MCOG staff presents draft FY 2025–26 transportation budget; recommends 10% reserve as local revenues dip

Mendocino Council of Governments (MCOG) staff on May 5 presented a draft Fiscal Year 2025–26 budget that reflects a modest decline in local Transportation Development Act (TDA) revenues and recommends maintaining a 10% reserve to protect transit operations.

The staff presentation recapped fund sources, highlighted a revised auditor estimate and described proposed allocations across transit operations, planning, bicycle and pedestrian set‑asides, and the new Northern Rural Energy Network (NREN) program. Staff said the county auditor’s revised estimate of local funds was $4,306,000 and that, compared with recent audited years, local revenues are beginning to trend downward.

Staff recommended that MCOG set a reserve at 10% of the auditor’s estimate (approximately $431,000 using the earlier estimate; staff noted a recalculated figure of about $416,000 when applying the revised estimate). The recommendation reflects a desire to preserve contingency funds if sales‑tax‑based local transportation funds decline further.

Why i…