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 2025 through the end of March 2026 of FY 2026-26.
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:
Overview
The District financials reflect an artificially-created $21.2 million deficit before accounting for District Capital spending of $3.1 million. This deficit is being created by delayed use of reserve funds. Revenues are $24.3 million (5.3%) below budget and Expenses are $2.7 million (0.6%) below budget.
The budget for the fiscal year includes $41.5 million in reserves. The first three quarters would normally reflect 75% or $31.2 million budget used, however the District's cash flow has been sufficient to delay the use of most reserves until the final quarter of the fiscal year. Staff used $5.0 million reserves in the third quarter and expects to draw down additional reserves in the fourth quarter. Deferring the use of reserves allows the District to continue to generate interest income on the remaining balance. If $31.2 million in reserves proportional to the first three quarters had been used, the operating budget surplus would have been $5.0 million.
Reference Attachment 1 for an overview of operating revenues and expenses.
Operating Revenues
Total year-to-date revenues of $430.4 million are $24.3 million (-5.3%) below the year-to-date budget of $454.7 million for the fiscal year. Revenues from operations are above budge...
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