TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Recommended FY 2025-26 Operating and Capital Budgets
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution 25-026 approving the Recommended 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 District must adopt a budget per Board Policy and to provide financial stability for operations during the fiscal year.
BUDGETARY/FISCAL IMPACT:
The Recommended FY 2025-26 Operating Budget is balanced with the use of $41.5 million in reserves. It includes a projected operating revenue and subsidy budget of $564.7 million and an operating expense budget of $606.3 million, resulting in an operating deficit of $41.5 million before the use of reserves. These figures are outlined in Attachment 2.
The Recommended FY 2025-26 Capital Budget includes a projected maximum investment of $393.5 million, composed of $368.2 million in grant funds, $25.3 million in District Capital funds. The Recommended Capital Budget is shown in Attachment 3.
BACKGROUND/RATIONALE:
No changes have been made to the Recommended budget since presented to the board on May 28, 2025. Below is a review of the changes from the FY 2024-25 budget to the Recommended FY 2025-26 budget.
Revenue
The overall Operating Revenue for next year, at $564.7 million, is a decrease of $41.1 million (6.8%) from the FY 2024-25 budget. The primary decrease is in Federal and State "emergency" funding, which will be reduced from $52.2 million in the FY 2024-25 budget to $21.0 million.
Below is a summary of the major revenue categories, and changes from the current year budget:
* Farebox revenue of $40.0 million, a $3.3 million (8.9%) increase from FY 2024-25 budget. Ridership and...
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