TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Quarterly Budget Update
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Quarterly Budget Update for the period of July 2024 through the end of June 2025 of FY 2024-25.
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 District financials are performing better than budgeted as of fiscal year end 2024-25. Revenues are at budget and Expenses are $23.6 million (3.9%) below budget, resulting in an operating surplus of $23.4 million. The operating surplus less District Capital of $11.6 million results in a net surplus of $11.8 million (2% of budget). See Attachment 1 for details.
The District's surplus is due in part to the lower cost of the negotiated paratransit contract compared to the anticipated budgeted cost (a difference of approximately $10 million). Lower spending in Services also contributed to the surplus. These savings are offset by a deficit of $9.1 million (-2.3%) in the labor budget, mostly explained by increases in workers compensation insurance, Pension Expense, and Bus Operator premium time expenses.
District capital funds are comprised solely of operating surplus. After subtracting District capital spending, the remaining operating surplus could be used to increase the District's reserves and balance future fiscal year budgets. Due to forecasted deficits, the District will rely on reserves for the next couple fiscal years to balance the operating budget. Funding received as a part of any approved state loan or revenue measure would ...
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