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Report ID: 21-140b   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 5/26/2021 Final action: 5/26/2021
Recommended Action: Consider receiving a report on the Proposed FY 2021-22 Operating and Capital Budgets.
Attachments: 1. STAFF REPORT, 2. Att 1 FY22 Operating Budget, 3. Att 2 FY22 Capital Budget, 4. Att 3 FY22 Operating Projections, 5. Att 4 ARP Spending List, 6. Att 5 RED FOLDER New Position Requests, 7. Att 5 New Position Requests, 8. Att 6 FY22 Proposed Presentation, 9. Att 7 Proposed Budget Book 2021-2022, 10. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Proposed FY 2021-22 Operating and Capital Budgets

BRIEFING ITEM

RECOMMENDED ACTION(S):

Title
Consider receiving a report on the Proposed FY 2021-22 Operating and Capital Budgets.
Body

STRATEGIC IMPORTANCE:

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

Presenting a Proposed Budget to the Board allows staff opportunity to receive and incorporate feedback from the Board in preparation of a Recommended Budget for the coming fiscal year. This report also gives Board members the opportunity to review financial projections of service level increases.

BUDGETARY/FISCAL IMPACT:

The Proposed FY 2021-22 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $479.7 and an operating expense budget of $479.7. These figures are outlined in Attachment 1.

The Proposed FY 2021-22 Capital Budget includes a projected spending plan of $76.4 million, composed of $69.2 million in grant funds, $7.2 million in District Capital funds. The proposed capital budget amount is adjusted to accommodate an increased budget for one project, another new project and a revived continuing project.

BACKGROUND/RATIONALE:

The COVID-19 pandemic has caused stress and hardship for the District, but so far AC Transit has weathered the storm due to the resilience of its workforce as well as additional help from federal stimulus packages. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has allowed the District to continue at a 75% service level through FY 2020-21. The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act is expected to allow the District to operate in FY 2021-22 at a proposed 85% service level. Additional stimulus funding is expected from the American Rescue Plan (ARP) Act but is not included in this Proposed Budget as the amount the District will be allocated is no...

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