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Report ID: 23-519   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 11/8/2023 Final action: 11/8/2023
Recommended Action: Consider receiving the Quarterly budget update for the period of July 2023 through the end of September 2023 of FY 2023-24. Staff Contact: Chris Andrichak, Chief Financial Officer
Attachments: 1. STAFF REPORT, 2. Att.1. FY24 Q1 Budget Report.pdf, 3. Master Minute Order
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 2023 through the end of September 2023 of FY 2023-24.

Staff Contact:
Chris Andrichak, Chief Financial Officer
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 with this report.

BACKGROUND/RATIONALE:

Overview
The District financials are performing reasonably for the first quarter of FY 2023-24. Revenues are $14.0 million (10.3%) above budget and Expenses are $4.9 million (3.6%) below budget, resulting in a surplus of $18.9 million. The District's surplus position is mostly explained by the timing of a drawdown for the American Rescue Plan (ARP) Act funding as well as Sales Tax revenues performing better than anticipated.

Subsidies (Sales Tax, Property Tax, and Other Federal, State & Local) revenues remain resilient for FY 2023-24, resulting in $7.2 million revenue surplus. Any surplus budget remaining at year-end will be used to pay for District capital requirements and to increase the District's reserves in preparation for a potential economic downturn and the end of ARP funds.

Operating Revenues
Total revenues and subsidies are $14.0 million (10.3%) above budget for the fiscal year. Operating Revenues, including Farebox, are on-budget and $3.0 million (31.0%) higher than the prior fiscal year-to-date actuals. Subsidies are $7.2 million (6.1%) over budget and $9.4 million (12.9%) higher than prior fiscal year-to-date actuals due to higher-than-anticipated Sales Tax and Property Taxes. Overall, revenues are $13.0 million (9...

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