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 2024 through the end of September 2024 of FY 2024-25.
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:
Overview
The District financials are performing within reasonable expectations for the first quarter of FY 2024-25. Revenues are $15.3 million (10.1%) below budget and Expenses are $13.5 million (8.9%) below budget, resulting in a deficit of $1.9 million for the quarter. This deficit is primarily due to timing of revenues, as no federal pandemic funding was received in the first quarter. Staff plans to draw-down this federal funding in the second quarter.
Operating Revenues
Total revenues are $15.3 million (10.1%) below the annual budget for FY 2024-25. Revenues from operations are slightly below budget by $836,000 (6.1%) for the current fiscal year as well as below prior fiscal year by $575,000 (4.3%) mostly due to the timing of EasyPass Program receipts. Property & Parcel Tax subsidies are doing better than prior fiscal year by $2.8 million, but Sales Tax Subsidies are $7.3 million worse. Overall, first quarter subsidies are below budget by $3.3 million (2.6%) for the current fiscal year due to timing of receipts for Local Regional Measures 2 and 3 (RM2/RM3) and federal Americans with Disabilities Act (ADA) set aside. Federal pandemic funds are below budget by $11.2 million due to timing of draw-downs. Specific revenues are ...
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