TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Bi-Monthly Budget Update
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Bi-Monthly budget update for the period of July 2021 through August 2021 of FY 2021-22.
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 or fiscal impacts associated with this report.
BACKGROUND/RATIONALE:
Overview
The District financials are performing as expected for the first two months of the fiscal year and reflect the $19.3 million board-approved American Rescue Plan (ARP) Act budget increase. Revenues are $23.7 million (28.3%) above budget and Expenses are $6.8 million (8.2%) below budget, resulting in a surplus of $30.7 million. While tax revenues are higher than expected, the District's surplus position is explained by the draw-down of $35.1 million in Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act federal funds. Consistent with prior budget presentations, staff is drawing-down the federal emergency funding relatively quickly and will apply the surplus funds to future periods where a deficit is expected. For comparison, at the end of August FY 2019-20, the Bi-Monthly report showed a surplus of $27.2 million, reflecting the receipt of Coronavirus Aid, Relief, and Economic Security (CARES) Act early in the year.
Operating Revenues & Subsidies
Total revenues and subsidies are $23.7 million (28.3%) above budget for the July-August period. Operating Revenues are $2.3 million (33.7%) below budget, and Subsidies are $26.0 million (33.9%) above budget. Specific revenues are as follows:
* Farebox - $714,000 or 15.8 % below budget
o Fare revenue is lower than budgeted, however $3.6 million higher than prior year-to-date ...
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