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 December 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 well for the first half of FY 2023-24, although there are expense timing issues and revised Metropolitan Transportation Commission (MTC) funding estimates that are inflating the current positive financial performance. Revenues are $28.7 million (10.1%) above budget and Expenses are $24.1 million (8.5%) below budget, resulting in a surplus of $52.8 million.
The District's surplus position is mostly explained by the American Rescue Plan (ARP) Act funding drawdowns at the beginning of the year, as well as lower year-to-date Pension and Service expenses which should pick up in the second half of the year. Sales Tax and Other Federal, State, & Local revenues remain resilient and are performing better than anticipated. 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 the end of American Rescue Plan (ARP) funds.
Operating Revenues
Total revenues are $28.7 million (10.1%) above the year-to-date budget for the fiscal year. Revenues from operations are above budget by $4.5 million mostly due to farebox and interest income increases. Subsidies are $11.1 million (4.5%) over budget and $25.0...
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