TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Recommended FY 2026-27 Operating and Capital Budgets
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution 26-003 approving the Recommended FY 2026-27 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 provide financial stability for operations during the fiscal year.
BUDGETARY/FISCAL IMPACT:
Compared to the Proposed budget, presented at the May 13 Board meeting, the Recommended budget includes an overall increase of $538,000 (0.1%). This increase is made up of $1.2 million interest expense for the State loan offset by $626,000 in Board requested reductions. The loan interest expense was entered later in the budget process when loan details became finalized. The State loan saves the District from needing to use reserves or reduce service at the start of the fiscal year.
The Board must adopt a (single) balanced budget, so the Recommended Funded budget is presented along with a Contingency Plan (which was also previously called the "unfunded budget"). The Contingency Plan will be triggered if the regional measure fails in November 2026. Attachment 1 is the board resolution for budget adoption specific to the Recommended Funded budget. Staff will bring the Contingency Plan to the Board for approval and implementation if the regional measure fails.
The Recommended Funded budget reflects concerted efforts by Board members and staff to abide by the Board's adopted budget guidelines and District priorities.
At the May 13 Board meeting, the Board requested the following:
1) Reduce the cost-of-living salary increase for unrepresented employees by 1% (from 3% to 2%).
2) ...
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