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Report ID: 21-140a   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 4/28/2021 Final action: 4/28/2021
Recommended Action: Consider receiving a report on the Draft FY 2021-22 Operating and Capital Budgets, including an overview of the major assumptions and drivers to the operating revenues and operating expenses.
Attachments: 1. STAFF REPORT, 2. Att 1 SR Table Draft Budget, 3. Att 2 FY22 Capital Budget.pdf, 4. Att 3 FY22 Draft Budget Presentation.pdf, 5. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Draft FY 2021-22 Operating and Capital Budgets

BRIEFING ITEM

RECOMMENDED ACTION(S):

Title
Consider receiving a report on the Draft FY 2021-22 Operating and Capital Budgets, including an overview of the major assumptions and drivers to the operating revenues and operating expenses.
Body

STRATEGIC IMPORTANCE:

Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization

Presenting a Draft Budget to the Board allows for an early picture of what the District's financial state will be for the coming fiscal year.

BUDGETARY/FISCAL IMPACT:

The Draft FY 2021-22 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $478.3 million and an operating expense budget of $478.3 million. These figures are outlined in Attachment 1.

The Draft FY 2021-22 Capital Budget includes a projected spending plan of $77.5 million, composed of $71.6 million in grant funds, $5.9 million in District Capital funds. The Draft Capital Budget is shown in Attachment 2.

BACKGROUND/RATIONALE:

Overview

The financial impact of the COVID-19 pandemic on the District has been greatly reduced by federal stimulus funding - $114.2 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and now $55.5 million from the Consolidated (CRRSA) Act. The District and its communities are beginning to look past the pandemic towards service restoration and some "new normal" of transportation. This draft budget utilizes the CRRSA Act funds to begin the restoration process, but there is still a long road ahead for the District towards that "new normal".

Based on current operator counts and available funding, this budget proposes an increase to 85% of pre-pandemic service levels, an increase of 10% over the current 75% level. The increase primarily happens during the August signup with the return of school supplementary servi...

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