TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Recommended FY 2020-21 Operating and Capital Budgets
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 20-044 approving the FY 2020-21 Recommended Operating and Capital Budgets.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The District must adopt a balanced budget per Board Policy and to provide financial stability for operations during the fiscal year.
BUDGETARY/FISCAL IMPACT:
The FY 20-21 Recommended Operating Budget is balanced and includes operating revenues and subsidies and expenses of $466.4 million. This includes expenses incurred in the first three months under temporary spending authority.
The FY 20-21 Recommended Capital Budget contains $82.0 million in total spending made up of $54.8 million in grant funds, $7.9 million in District Capital, and $19.3 million in Line of Credit funds for the Tempo Bus Rapid Transit (BRT) project.
BACKGROUND/RATIONALE:
The Recommended Operating Budget is reduced by $1.0 million (-0.2%) from the Proposed Budget presented on August 5, 2020. There are several changes to both revenues and expenses. The revenue reduction required staff to look at several expense items to reduce expenses to match. Service level plans have not changed since the Proposed Budget. The Recommended Operating Budget is shown in Attachment 2.
Expenses to-date in this fiscal year have been within the limits of the Recommended budget, so no changes were required due to spending during the temporary spending authority period. Sales tax revenues look to have stabilized, but natural month-to-month variations in collections make it difficult to discern yet whether the trend is starting upwards. If the Recommended Budget is adopted, staff will replace the temporary budget with the adopted starting October 1, 2020. Reporting for the full year from the...
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