TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Recommended FY 2021-22 Operating and Capital Budgets
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 21-020 approving the FY 2021-22 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 Recommended FY 2021-22 Operating Budget is balanced and includes a projected operating revenue budget of $479.7 million and an operating expense budget of $479.7 million. These figures are outlined in Attachment 2.
The Recommended 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. These figures are outlined in Attachment 3.
BACKGROUND/RATIONALE:
The Recommended Operating Budget revenues and expenses have not changed from the Proposed Budget presented to the Board on May 26, 2021. No new positions are included in the Recommended budget. No changes have been made to the Capital budget either.
Service level plans also remain the same as the Proposed budget, assuming an increase from 75% currently to 85% in FY 2021-22. This increase starts with a restoration of supplemental service for the coming school year, but is constrained by the District's ability to recruit, hire, and train new operators at a rate greater than our normal attrition levels. Future increases in service will be evaluated during the year but must be considered in light of the operational and financial position of the District.
Fare revenue assumptions have not changed from the Proposed budget and assume a deferral of local fare increases for 12 months from July 1, 2021. This had reduced budgeted r...
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