TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Recommended FY 2024-25 Operating and Capital Budgets
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution 24-023 approving the Recommended FY 2024-25 Operating and Capital Budgets.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The District must adopt a balanced budget per Board Policy and to provide financial stability for operations during the fiscal year.
BUDGETARY/FISCAL IMPACT:
The Recommended FY 2024-25 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $605.8 million and an operating expense budget of $605.8 million. These figures are outlined in Attachment 2.
The Recommended FY 2024-25 Capital Budget includes a projected maximum investment of $267.1 million, composed of $238.3 million in grant funds and $28.8 million in District Capital funds. The Recommended Capital Budget is shown in Attachment 3.
BACKGROUND/RATIONALE:
Overview
Based on the review of the Proposed FY 2024-25 budget at the May 22nd board meeting, a reduction of $1.1 million was made by removing the proposed labor initiatives for new Safety headcount ($593,000) and the following non-labor initiatives in Services: Mobile App 2.0 ($200,000), All Door Boarding Study ($100,000), and DEIA (Diversity, Equity, Inclusion, and Accessibility) consultant work ($80,000). Further reductions were incorporated for the Board of Directors budget in Services ($125,000) and travel expenses ($10,000). These savings will allow the District to reduce American Rescue Plan (ARP) Act funding by $1.1 million and can be used to support future years of service.
Overall, the $36.9 million change (6.5%) from the FY 2023-24 Operating Budget is due primarily to ant...
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