TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: New Budget Goals, Proposed FY 2020-21 Budgets, Bi-Monthly Review
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving a new set of Budget Goals for FY 2020-21; receiving report on the Proposed FY 2020-21 Operating and Capital Budgets; and receiving the bi-monthly budget update for the period of July through June for the Fiscal Year 2019-20.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Adopting updated budget goals will allow staff to better focus budget related efforts. Presenting a proposed budget to the Board allows for further Board review of the budget before final adoption.
BUDGETARY/FISCAL IMPACT:
The Proposed FY20-21 Operating Budget is balanced and includes a both projected operating revenues and expenses of $467.3 million. The budget is summarized in Attachment 3 with more details in Attachment 8.
The Proposed FY20-21 Capital Budget includes a projected spending plan of $81.9 million, composed of $54.8 million in grant funds, $7.8 million in District Capital funds, and $19.3 million of Line of Credit funds for the East Bay Bus Rapid Transit (BRT) Project. It is unchanged from the Draft Capital Budget. The Proposed Capital Budget is shown in Attachment 5.
BACKGROUND/RATIONALE:
Proposed New Budget Goals
The Board adopted a set of budget goals in March (shown in Attachment 1), just before the Bay Area and counties in the District's service area were ordered to shelter-in-place (SIP) due to the coronavirus pandemic. Since then, it has become apparent that the approved budget goals do not match the new economic and social realities of the pandemic.
Attachment 2 proposes a new set of budget goals that respond to the immediate issues the District is now facing for FY2020-21. The first goal and overriding concern of this time is the health and safety of all District employe...
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