TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Recommended FY 2022-23 Operating and Capital Budgets
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 22-023 approving the FY 2022-23 Recommended Operating and Capital Budgets.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The District must adopt a balanced budget per Board Policy and to provide financial stability for operations during the fiscal year.
BUDGETARY/FISCAL IMPACT:
The Recommended FY 2022-23 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $547.0 million and an operating expense budget of $547.0 million. These figures are outlined in Attachment 2.
The Recommended FY 2022-23 Capital Budget includes a projected spending plan of $165.2 million, composed of $148.0 million in grant funds, $17.2 million in District Capital funds. These figures are outlined in Attachment 3.
BACKGROUND/RATIONALE:
Overview
The Recommended Operating Budget revenues and expenses have increased by $1.5 million from the Proposed Budget presented to the Board on May 11, 2022. This increase reflects the additional cost of the re-design of the District's service network ($1.0 million) and two more new positions ($500,000). The Capital budget has increased by $500,000 to pay for the roof repair at the 66th Avenue Warehouse.
Recommended Operating Budget
Revenue
Revenue of $547.0 million is an increase of $34.3 million over the FY 2021-22 budget. The increase is due primarily to strong Sales Tax funding revenues and the addition of ARP funding used to balance the budget. Farebox is still well below pre-pandemic levels and may take several years to recover.
* Farebox revenue of $28.8 million, a slight (5.9%) increase from FY 2021-22 budget. Increased service and reduced social distancing should increase ridership, however comm...
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