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Report ID: 22-158c   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 6/8/2022 Final action: 6/8/2022
Recommended Action: Consider adoption of Resolution No. 22-023 approving the FY 2022-23 Recommended Operating and Capital Budgets.
Attachments: 1. STAFF REPORT, 2. Att 1 Resolution 22-023, 3. Att 2 FY23 Recommended Op Budget, 4. Att 3 FY23 Recommended Cap Budget, 5. Att 4 Recommended Positions, 6. Att 5 FY23 Recommended Budget Book, 7. Red Folder details FY23 Recommended New Positions, 8. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Recommended FY 2022-23 Operating and Capital Budgets

ACTION ITEM

RECOMMENDED ACTION(S):

Title
Consider adoption of Resolution No. 22-023 approving the FY 2022-23 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 2022-23 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $547.0 million and an operating expense budget of $547.0 million. These figures are outlined in Attachment 2.

The Recommended FY 2022-23 Capital Budget includes a projected spending plan of $165.2 million, composed of $148.0 million in grant funds, $17.2 million in District Capital funds. These figures are outlined in Attachment 3.

BACKGROUND/RATIONALE:

Overview

The Recommended Operating Budget revenues and expenses have increased by $1.5 million from the Proposed Budget presented to the Board on May 11, 2022. This increase reflects the additional cost of the re-design of the District's service network ($1.0 million) and two more new positions ($500,000). The Capital budget has increased by $500,000 to pay for the roof repair at the 66th Avenue Warehouse.

Recommended Operating Budget

Revenue

Revenue of $547.0 million is an increase of $34.3 million over the FY 2021-22 budget. The increase is due primarily to strong Sales Tax funding revenues and the addition of ARP funding used to balance the budget. Farebox is still well below pre-pandemic levels and may take several years to recover.

* Farebox revenue of $28.8 million, a slight (5.9%) increase from FY 2021-22 budget. Increased service and reduced social distancing should increase ridership, however comm...

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