TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Financial Projection Update
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on an updated financial projection for the District.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
This report presents updated financial projections to inform the Board, staff, and the public of the District's financial future.
BUDGETARY/FISCAL IMPACT:
There is no budgetary impact from this report.
BACKGROUND/RATIONALE:
District Financial Overview
This report includes updated financial projections and assumptions. Two seven-year financial projections cover scenarios that staff is calling "funded" and "un-funded" based on the availability of revenue from a potential regional measure. These projections are part of the development process for the coming FY 26-27 Operating and Capital Budgets. Staff plans to bring draft FY 26-27 budgets to the April 8th Board meeting for review.
The District has been projecting a "fiscal cliff" for several years now, and it arrived this fiscal year. The past several budget years have tried to balance two conflicting paths: maintaining and improving service along with the many other goals and initiatives pursued, while continually trying to restrict budgets and "do more with less". Costs have been reduced during budget processes and labor vacancies closely reviewed. Measures used to reduce or defer costs such as Pension and Medical are being implemented. Reserves were built up to offset the impact of deficits. And new revenues both short-term and longer-term have been pursued.
The General Manager created a Budget Taskforce to consider frameworks and strategies for solving the budget puzzle with feedback from Board members and is guiding t...
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