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Report ID: 22-278   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 6/22/2022 Final action: 6/22/2022
Recommended Action: Consider review of Board Policy 322 - Reserve Policy with no amendments.
Attachments: 1. STAFF REPORT, 2. Att.1. BP 322 Reserve Policies, 3. Master Minute Order

TO:                                          AC Transit Board of Directors                                          

FROM:                                          Michael A. Hursh, General Manager

SUBJECT:                     Board Policy 322 - Reserve Policy                     

 

BRIEFING ITEM


RECOMMENDED ACTION(S):

 

Title

Consider review of Board Policy 322 - Reserve Policy with no amendments.

Body

 

STRATEGIC IMPORTANCE:

 

Goal - Financial Stability and Resiliency

 

The policy helps to ensure financial resilience and continuity of operations in the unforeseen instances of revenue reductions and/or one-time significant expenses.

 

BUDGETARY/FISCAL IMPACT:

 

The replenishment of District financial reserves is accomplished as part of the budgetary process.

 

BACKGROUND/RATIONALE:

 

The Reserve Policy lays out the purpose of maintaining a reserve, the acceptable uses of, and its replenishment when necessary. Essentially, it provides direction to the District on how to maintain sufficient resources to handle short duration events, or if longer, the time to implement orderly and considered adjustments to the District’s operations and staffing plans. Additionally, it addresses self-insurance, and provisioning for upcoming known events that are anticipated to have a significant financial impact.

 

Staff has reviewed the existing policy and determined that no changes are needed.

 

ADVANTAGES/DISADVANTAGES:

 

No disadvantages to keeping the existing policy have been identified.

 

ALTERNATIVES ANALYSIS:

 

There are no alternatives to the course of action recommended in this report.

 

PRIOR RELEVANT BOARD ACTION/POLICIES:

 

This Board Policy was last updated in June, 2020.                     

ATTACHMENTS:

 

1.                     Board Policy 322

 

Prepared by:

Kenneth Myers, Acting Controller

 

Approved/Reviewed by:

Chris Andrichak, Chief Financial Officer

Jill A. Sprague, General Counsel