TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Quarterly Budget Update and Grant Report
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Quarterly budget update and grant activity for the period of July 2025 through the end of September 2025 of FY 2025-26.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Regular financial reporting benefits staff and Board Members in assessing the condition of the District.
BUDGETARY/FISCAL IMPACT:
There are no budgetary or fiscal impacts with this report.
BACKGROUND/RATIONALE:
The first quarter District financials reflect a $9.1 million deficit before accounting for District Capital spending of $1.0 million. The budget for the fiscal year includes $41.5 million in reserves, with 25% or $10.3 million "budgeted" to be used in the first quarter. The District's cash flow is currently in a good enough state that staff is not planning on actually using reserves until the second half of the year. Holding off on use of reserves allows for continued interest income on the unused amount. Had the $10.4 million in reserve "budget" for the quarter been used, the operating budget for the first quarter would have shown a surplus of $1.3 million.
Operating Revenues
Total year-to-date revenues of $138.3 million are $13.3 million (8.8%) below the $151.6 million budget for FY 2025-26. Revenues from operations are slightly above budget by $1.4 million (9.5%) for the current fiscal year as well as above prior fiscal year by $2.3 million (17.1%) mostly due to the timing of EasyPass Program receipts and Interest Income accounting entries. Subsidies are $4.3 million (-3.4%) below budget for the current fiscal year and below the prior fiscal year by $1.0 million (-0.8%) due mostly to lower tha...
Click here for full text