TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 20-21 Mid-Year Operating and Capital Budget Review
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the FY 2020-21 Mid-Year Budget review and Adopt Resolution No. 21-003 amending the General Fund Operating and Capital Budgets for FY 2020-21.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Amending the Annual Operating and Capital Budget benefits staff and Board members in understanding revisions needed for the remainder of the fiscal year to better align the District budgets with projected revenues and expenses.
BUDGETARY/FISCAL IMPACT:
Approving the proposed budget changes will decrease the Revenue budget by $2.5 million (0.5%) and decrease the Expense budget by $6.5 million (-1.4%), resulting in a $4.0 million projected Operating surplus for the fiscal year.
The proposed change in the Capital Improvement Plan (CIP) will result in an additional $337,000 for expected District Capital spending.
No new positions are proposed to be added (or removed) as part of the Mid-Year budget amendment.
BACKGROUND/RATIONALE:
Overview
The proposed Mid-Year budget for FY 20-21 reduces the District's Total Operating Revenues by $2.5 million (-0.5%) and reduces the Total Operating Expenses by $6.5 million (-1.4%), resulting in an adjustment of the expected District Operating Surplus from zero to $4.0 million. The reductions in revenues is composed of a decrease in operating revenue by $3.8 million (9.3%) and increase in subsidies of $1.3 million (0.3%). Total expenses are proposed to decrease $6.5 million (1.4%), composed of decreases of $1.8 million (0.5%) for Labor and $4.7 million (3.7%) for Non-Labor. The proposed budget also increases the District Funded Capital Program by $507,000, increasing the District Capital Contribution to $11.5 million.
Operating Revenues & Subsidie...
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