TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2021-22 Budget Adjustment with ARP Act funds
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution 21-035 amending the General Fund FY 2021-22 Operating Budget.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The Board adopted a balanced FY 2021-22 budget in June and requested staff return with adjustments to the budget based on American Rescue Plan (ARP) Act funding availability.
BUDGETARY/FISCAL IMPACT:
If adopted as shown, the revised FY 2021-22 Operating Budget will be balanced and include a projected operating revenue and subsidy budget of $499.0 million and an operating expense budget of $499.0 million. These figures are outlined in Attachment 2. The $499.0 million budget represents an increase of $19.3 million over the original Recommended Budget adopted by the Board on June 09, 2021. There are no changes to the FY 2021-22 Capital Budget.
BACKGROUND/RATIONALE:
On June 9, 2021, the AC Transit Board approved the FY 2021-22 budget of $479.7 million which included $55.5 million Coronavirus Response & Relief Supplemental Appropriations (CRRSA) funding to balance the budget at the 85% service level. The American Rescue Plan (ARP) Act funding amount was unknown at the time and was not included in the budget. Staff was instructed to revise the budget when the ARP Act funding amount became known. In addition, staff was instructed to create a list of items the ARP Act funds could be used to pay for.
After the original budget adoption, the District was allocated $66.1 million in ARP Act funding on July 28, 2021, by the Metropolitan Transportation Commission (MTC). The first allocation of funds to all regional transit agencies was roughly 60% of the total ARP Act funds. MTC does not expect to allocate the remainder of the funds until at least the end of th...
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