TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Bi-Monthly Budget Update
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Bi-Monthly budget update for the period of July 2021 through June 2022 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
Revenues are $17.2 million (3.4%) above budget and Expenses are $41.4 million (8.1%) below budget, resulting in a surplus of $58.6 million. While sales tax subsidy revenues are higher than expected, the District's surplus position is primarily explained by the draw-down of $55.5 million in Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act federal funds and $10.0 million draw down from the American Rescue Plan (ARP) Act.
Operating Revenues & Subsidies
Total revenues and subsidies are $17.2 million (3.4%) above budget for the July-June period. Revenues from Operations are $5.6 million (13.3%) below budget, and Subsidies are $22.8 million (4.9%) above budget. Specific revenues are as follows:
* Farebox - $2.6 million or 9.4 % below budget
o Fare revenue budget is expected to be lower than originally budgeted. While fare revenue is $12.0 million higher than prior year-to-date actuals (still recovering from the pandemic), the District faces challenges increasing ridership District wide and enforcing revenue collection on the Tempo BRT line.
* Other Operating Revenues -- $4.5 million or 49.7% below budget
o Other Operating Revenues are lower than budget, however this figure does not yet reflect $2.7 million in BART Feeder Service Agreement receipts expected to be recorded for FY 2021-22.
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