TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Bi-Monthly Budget Update
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Bi-Monthly budget update for the period of July 2021 through April 2022 of FY 2021-22.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Regular financial reporting benefits staff and Board Members in assessing the condition of the District.
BUDGETARY/FISCAL IMPACT:
There are no budgetary or fiscal impacts associated with this report.
BACKGROUND/RATIONALE:
Overview
Revenues are $5.3 million (1.2%) above budget and Expenses are $46.2 million (10.8%) below budget, resulting in a surplus of $51.5 million. While sales tax subsidy revenues are higher than expected, the District's surplus position is primarily explained by the draw-down of $55.5 million in Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act federal funds. Consistent with prior budget presentations, staff is drawing-down the federal emergency funding relatively quickly and will apply the surplus funds to future periods where a deficit is expected.
Operating Revenues & Subsidies
Total revenues and subsidies are $5.3 million (1.2%) above budget for the July-April period. Revenues from Operations are $5.2 million (14.7%) below budget, and Subsidies are $10.5 million (2.7%) above budget. Specific revenues are as follows:
* Farebox - $3.0 million or 12.9 % below budget
o Fare revenue budget is expected to be lower than originally budgeted. While fare revenue is $10.5 million higher than prior year-to-date actuals (during the first year of the pandemic), the District faces challenges increasing ridership District wide and enforcing revenue collection on the Tempo BRT line.
* Other Operating Revenues -- $3.9 million or 52.4% below budget
o Other Operating Revenues are lower than budget due to delay in receipt of BART Fe...
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