TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Proposed FY 2025-26 Operating and Capital Budgets
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the Proposed FY 2025-26 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 FY 2025-26 Proposed Budget represents staff's final revenue and expense projections. It is presented to the Board for information and direction, which will be incorporated into the Recommended Budget and presented to the Board in June for final approval. The FY 2025-26 Fiscal Year begins on July 1, 2025.
BUDGETARY/FISCAL IMPACT:
The Proposed FY 2025-26 Operating Budget projects operating revenues of $564.7 million and operating expenses of $606.3 million, resulting in an operating deficit of $41.5 million. Both the revenue and expense budget amounts are slightly lower than those presented in the Draft Budget in April. Staff recommends covering the operating deficit using District reserves. These figures are outlined in Attachment 1.
The Proposed FY 2025-26 Capital Budget includes projected maximum investment of $393.5 million, composed of $368.2 million in grant funds and $25.3 million in District Capital funds. The Proposed Capital Budget is shown in Attachment 2. Because of the projected operating budget deficit for the fiscal year, staff changed how the District Capital funding is calculated for inclusion at the bottom of the Operating Budget table. Capital projects often take multiple years to complete, so the budget amounts are a commitment over the life of the project and actual spending of the projects in aggregate in a fiscal year is always going to be less than the budget. Since actual spending is what matters for the deficit and use of rese...
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