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Report ID: 21-223   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 4/28/2021 Final action: 4/28/2021
Recommended Action: Consider receiving the bi-monthly budget update for the period of July through February of FY 2020-21.
Attachments: 1. STAFF REPORT, 2. Att.1. Table, 3. Att.2. Graph, 4. Master Minute Order
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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