TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Board Policy 324 - Revenue and Grants
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider review of Board Policy 324 - Revenue and Grants with minor amendments.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Having clear and concise financial policies helps District staff maximize the use of existing and new revenues.
BUDGETARY/FISCAL IMPACT:
There is no direct fiscal impact from any changes to this policy.
BACKGROUND/RATIONALE:
Board Policy 324 was last amended in September 2022. Staff proposes minor amendments for Board consideration as follows:
* Prior Section IV. A. language stated, "The District shall avoid dependence on bond financing to fund on-going operations". The amended language states "The District shall not utilize bond financing to fund on-going operations". This amendment was made since, under state law, bond proceeds may only be used for capital expenditures.
* The amendment to IV. E. is a minor edit for clarity and does not change the policy in any significant way.
* Prior Section IV. H. language stated, "To the extent possible, the District shall pursue a diverse and stable revenue base. It is in the District's best interest to have economic development policies that encourage a more diverse revenue base." The amended language states "To the extent possible, the District shall pursue a diverse and stable revenue base. It is in the District's best interest to have revenue diversification strategies that encourage a more diverse and sustainable revenue base." This amendment was made since the District does not have "economic development policies" but does analyze revenue sources to achieve diversification and sustainability.
ADVANTAGES/DISADVANTAGES:...
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