Lee and Ryan discuss capital plan front-loading
Chair Lee asks about the front-loaded capital plan with $432.9M in FY26 dropping to $16.4M in FY29. Ryan explains the front-loading is driven by vehicle capitalization and the Rodman's Neck project, with projects shifting as construction progresses.
Actually, talking about capital and going into that theme, so looking at the capital plan, it appears to be heavily front-loaded with $432.9 million planned in the current fiscal year, and then it drops to about $16.4 million in FY29.
And we know that capital plans are generally front-loaded, and there are some large capital projects wrapping up in the next few years.
Could you generally explain some of the big projects happening in the next few years that drive some of these changes and also give some context on the planning of projects?
So part of the reason that it's so front-loaded is, as you mentioned, large projects.
So one is, as we mentioned earlier, the infusion of capital funding now for vehicles.
So there's a significant amount of funding early in the plan so that we can jumpstart continuing to replace those vehicles.
And also our largest single project is also in the early years of the plan, which is Rodman's Neck.
So we're working on that, which should be done by the summer of 28.
So those are the two biggest.
and then the others are spread out more throughout the plan.
What we do when we plan our capital budget, it changes with each financial plan because we take a look at where we are in the construction process and whether or not we have CPs yet, and obviously with the procurement of contracts.
The drawing's been done.
Exactly.
So things tend to shift.
Certain things we will push out, but then at the same time, OMB works very well with us, and they're very flexible.
If something's moving more quickly or we have a need earlier than it's reflected in the capital plan, we will look to accelerate those funds.
Okay, perfect.