TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Bi-Monthly Budget Update and Forecast
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the bi-monthly budget update for the period of July through February of FY 2020-21.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Regular financial reporting benefits staff and Board Members in assessing the condition of the District.
BUDGETARY/FISCAL IMPACT:
There are no budgetary of fiscal impacts associated with this report.
BACKGROUND/RATIONALE:
?Overview
This staff report is an update on the District's financial position for the first eight months of the year based on actuals for revenues and expenses while operating during a pandemic. The accompanying presentation provides staff's outlook for the remainder of FY 2020-21 going into the next two fiscal years.
Revenues and Subsidies are $18.7 million (5.7%) above budget and Expenses are $18.0 million (5.9%) below budget for the July through February period of FY 2020-21. The current significant operating surplus of $59.1 million is primarily due to the draw-down of the $84.1 million in Coronavirus Aid, Relief, and Economic Security (CARES) Act federal funds during the first half of the fiscal year. The $84.1 million is 18% of our total revenues and the rapid draw-down in the first half has produced very lop-sided revenue receipts. The surplus will reduce as monthly expenses outpace monthly revenues for the remainder of the fiscal year.
Operating Revenues & Subsidies
For the July through February period of FY 2020-21, Operating Revenues are $8.1 million (34.5%) below budget and Subsidies are $26.8 million (8.8%) above budget due primarily to the following:
* Farebox revenue is $4.7 million (44.4%) below budget primarily due to continued low ridership and the inherent difficulty in forecasting revenue after not collecting fares...
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