TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2021-22 Mid-Year Operating and Capital Budget Review
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the FY 21-22 Mid-Year Budget Review and adopt Resolution No. 22-002 amending the FY 21-22 Annual Operating and Capital Budget.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Amending the Annual Operating and Capital Budgets benefits staff and Board Members in understanding revisions needed for the remainder of the fiscal year to better align the District budget with projected revenues and expenses.
BUDGETARY/FISCAL IMPACT:
Approving the proposed budget changes will increase the Operating Revenue and Expense budgets by $13.7 million each, resulting in a balanced budget. The Capital budget will increase by $12.6 million including $10.5 million from new grants and $2.1 million from District capital.
BACKGROUND/RATIONALE:
Overview
The proposed Mid-Year budget amendment for FY 2021-22 increases the District's total Operating Revenues and Expenses by $13.7 million (2.8%). The increase in revenues is composed of an increase in operating revenue of $948,000 and an increase in subsidies of $12.7 million. Total expenses are composed of increases of $8.3 million for Labor and $5.4 million for Non-Labor. The proposed budget also includes an increase in the Capital Budget by $12.6 million which includes $10.5 million in new grants and $2.1 million in District capital.
Attachment 2 provides a summary of proposed changes to the District's Total Operating Revenues and Expenses.
Operating Revenues & Subsidies
Recent confirmation that the District can move beyond the PERPA/Section 13(c) issues and that the American Rescue Plan (ARP) Act funding will be distributed has allowed the District to add revenue of $13.7 million to the Mid-Year Budget.
The following revenue budget adjustme...
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