TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Quarterly Budget Update
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Quarterly budget update for the period of July 2022 through end of December 2022 of FY 2022-23.
Staff Contact:
Chris Andrichak, Chief Financial Officer
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 with this report.
BACKGROUND/RATIONALE:
The District financials are performing better than expected for the first half of the fiscal year. Revenues are $6.6 million (2.4%) above budget and Expenses are $37.6 million (13.7%) below budget, resulting in a surplus of $44.2 million. The District's surplus position is mostly explained by unused budget in expenses related to service restoration. This means that less American Rescue Plan (ARP) Act revenue is required to support the financials this year and staff is recommending a mid-year adjustment to lower the ARP allocation which will free up additional ARP funding for future years.
Operating Revenues
Total operating revenues and subsidies are $6.6 million (2.4%) above budget for the July-December period. Operating Revenues are $391,000 (1.9%) below budget, and Subsidies are $6.2 million (2.5%) above budget. Specific revenues are as follows:
* Farebox - $119,000 or 0.8 % below budget
o Fare revenue has been gradually increasing this year and is expected to track close to budget for the current fiscal year. So far, Fare revenue is higher than prior year-to-date actuals by $2.6 million (22.7%).
* Contract Services -- $163,000 or 4.7% above budget
o Contract service revenue is expected to exceed the budget this fiscal year due to ex...
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