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Report ID: 19-052c   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 6/12/2019 Final action:
Recommended Action: Consider adoption of Resolution No. 19-021 approving the FY 2019-20 Recommended Operating and Capital Budget.
Attachments: 1. STAFF REPORT, 2. Att 1 Resolution 19-021, 3. Att 2 Budget Table Option A, 4. Att 3 Budget Table Option B, 5. Att 4 New Positions, 6. Att 5 Capital Budget, 7. Att 6 Classification Changes, 8. Att 7 FY19-20 Recommended Budget Book v2(1)
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Recommended FY 2019-20 Operating and Capital Budget

ACTION ITEM

RECOMMENDED ACTION(S):

Title
Consider adoption of Resolution No. 19-021 approving the FY 2019-20 Recommended Operating and Capital Budget.

Body
BUDGETARY/FISCAL IMPACT:

The Recommended Operating Budget includes operating revenues and subsidies of $474.0 million and expenses of either $471.0 million for Option A (staff recommendation) or $474.0 million for Option B depending on which one the Board of Directors selects. Option A results in a planned surplus of $3.0 million, which is designated for three items at $1.0 million each: OPEB trust contribution; Salesforce Transit Center (STC) capital commitment payment; and District Capital contribution. Option B results in a balanced budget with no surplus and no planned contributions to any of the items listed for Option A.

The Recommended Capital Budget includes projected District Capital spending of $10.8 million, $15.0 million in East Bay Bus Rapid Transit (BRT) project financing proceeds, and grant spending of $81.0 million for total projected capital spending of $106.8 million.

The Recommended Budget revenue total is consistent with the Proposed Budget, and the expense total is consistent for Option A. Option B includes a 2.0% increase in salary for ATU represented staff, which is offset by eliminating the $3.0 million non-operating contributions and reducing operator overtime expense by $1.0 million.

For both Options, staff reallocated a total of $5.5 million in fringe benefit expenses from the various departments into District Overhead to match where they will ultimately be accounted for. There were also minor reallocations between accounts within departments.

BACKGROUND/RATIONALE:

For the Recommended Operating Budgets, staff is presenting two Options (A and B) for the Board to choose from in approving the final budget based on Board feedback. For bo...

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