TO: AC Transit Board of Directors
FROM: Salvador Llamas, 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 2024 through the end of March 2025 of FY 2024-25.
Staff Contact:
Chris Andrichak, Chief Financial Officer
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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 is performing well financially for the first three-quarters of FY 2024-25. Revenues are $2.5 million (0.6%) above budget and Expenses are $31.5 million (6.9%) below budget, resulting in a surplus of $33.7 million.
The current District's surplus position is mostly explained by accelerated American Rescue Plan (ARP) Act funding drawdowns at the beginning of the year, the addition of $4.0 million from Senate Bill 125, as well as lower year-to-date Pension, Service expenses, and Purchase Transportation which should pick up in the last quarter of the year. Property & Parcel Taxes remain resilient and continue to perform well. Funding from sales taxes is beginning to show signs of weakness and is expected to continue to negatively impact District financials in the coming fiscal year.
By year-end, staff expects the current surplus to be greatly reduced as the above timing issues are resolved. Any surplus budget remaining at year-end will be used to pay for District capital requirements and to increase the District's reserves in preparation for the end of American Rescue Plan (ARP) funds.
Operating Revenues
Total revenues are $2.5 million (0.6%) above the year-to-date budget for the fiscal year. Revenues from operations are below...
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