TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Proposed FY 2019-20 Operating and Capital Budgets
BRIEFING ITEM
RECOMMENDED ACTION(S):
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Consider receiving report on the Proposed FY 2019-20 Operating and Capital Budgets.
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BUDGETARY/FISCAL IMPACT:
The Proposed Budget includes a projected operating revenue and subsidy budget of $474.0 million. The Proposed Budget also includes an operating expense budget of $471.0 million, resulting in a balanced operating budget with a $3.0 million surplus. The $3.0 million surplus is proposed for the following uses: $1 million for a planned other post-employment benefit (OPEB) contribution; $1 million for payment against the District's capital commitment to the Salesforce Transit Center (STC); and $1 million for the District's Capital Budget spending.
Since negotiations are ongoing between the District and the Amalgamated Transit Union (ATU), the budget assumes no increases for ATU employees. Staff will return with an amended budget once ATU contract negotiations are finalized.
The Proposed Capital Budget includes projected spending of $10.6 million in District Capital including STC contribution, $15.0 million in East Bay Bus Rapid Transit financing proceeds, and $76.7 million in grant funding.
BACKGROUND/RATIONALE:
The proposed Annual Operating and Capital Budgets for FY 2019-20 are being provided to the Board for consideration and feedback. The proposed operating budget includes total projected operating revenues and subsidies of $474.0 million. The Proposed Budget also includes operating expenses of $471.0 million resulting in a balanced budget with a $3.0 million surplus. The $3.0 million surplus was intentionally programmed for the District to address specific priorities that are not included in the operating budget. These priorities are: reducing the unfunded OPEB liability, paying off the remaining STC capital contribution, and funding District Capital commitments.
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