TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Quarterly Budget Update
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Quarterly budget update for the period of July 2022 through the end of September 2022 of FY 2022-23.
Staff Contact:
Chris Andrichak, Chief Financial Officer
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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 with this report.
BACKGROUND/RATIONALE:
Overview
The District financials are performing as expected for the first quarter of the fiscal year. Revenues are $2.1 million (1.6%) below budget and Expenses are $21.2 million (15.5%) below budget, resulting in a surplus of $19.1 million. While tax subsidy and property & parcel tax revenues are higher than budgeted for the first quarter, other revenue sources are lower than expected. The District's surplus position is mostly explained by unused budget in expenses related to service restoration. American Rescue Plan (ARP) revenue is lower than budget for the first quarter of the fiscal year. Staff is reviewing ARP funding requirements and will re-assess during the mid-year process.
Total revenues and subsidies are $2.1 million (1.6%) below budget for the July-September period. Operating Revenues are $2.0 million (18.6%) below budget, and Subsidies are $176,000 (0.1%) below budget. Specific revenues are as follows:
* Farebox - $210,000 or 2.9 % below budget
o Fare revenue budget is expected to track close to budget for the current fiscal year and is higher than prior year-to-date actuals by $1.3 million despite continuing challenges to enforce revenue collection.
* Contract Services -- $907,000 or 51.9% below budget
o Contr...
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