TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Draft FY 2023-24 Operating and Capital Budgets
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the Draft FY 2023-24 Operating and Capital Budgets, including an overview of the major assumptions and drivers to the operating revenues and operating expenses.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Presenting a Draft Budget to the Board allows for an early picture of what the District's financial state will be for the coming fiscal year.
BUDGETARY/FISCAL IMPACT:
The Draft FY 2023-24 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $545.6 million and an operating expense budget of $545.6 million. These figures are outlined in Attachment 1.
The Draft FY 2023-24 Capital Budget includes a projected spending plan of $110.7 million, composed of $92.3 million in grant funds, and $18.4 million in District Capital funds. The Draft Capital Budget is shown in Attachment 2.
BACKGROUND/RATIONALE:
Overview
The District is looking ahead and preparing for projected future deficits after federal stimulus dollars run out. Staff has been communicating the need to use one-time funds from the American Rescue Plan (ARP) Act as judiciously as possible by controlling expenses where possible. To this end, the budgeting cycle was a period of heightened engagement to develop a budget that is as lean as possible while still being able on our mission: "to deliver safe, reliable, sustainable transit service that responds to the needs of our customers and community."
The Draft FY 2023-24 budget is lean in both labor and non-labor expenses, reflecting refined priorities and emphasizing commitment to the District budget goals. To ...
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