TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Financial Projection and Draft FY 2024-25 Operating and Capital Budgets
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the Draft FY 2024-25 Operating and Capital Budgets, which includes revised Budget Goals, a financial projection and 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 Financial Projection and Draft Budget to the Board allows for an early picture of what the District's financial is likely to be for the coming fiscal year.
BUDGETARY/FISCAL IMPACT:
The Draft FY 2024-25 Operating Budget is balanced and includes a projected operating revenue and subsidy budget of $598.2 million and an operating expense budget of $598.2 million. These figures are outlined in Attachment 3.
The Draft FY 2024-25 Capital Budget includes projected maximum investment of $250.6 million, composed of $223.5 million in grant funds, $27.1 million in District Capital funds. The Draft Capital Budget is shown in Attachment 4.
BACKGROUND/RATIONALE:
Overview
A new fiscal year budget represents a new beginning, and a renewed plan to deliver on the District mission and Strategic Plan. Relative to other transportation agencies, AC Transit has emerged from the pandemic in reasonably good shape due to a diverse revenue base, however unavoidable expense increases are looming, and the future is not without new challenges. As emphasized in the revised FY 2024-25 Budget Goals (Attachment 1), one of the District's main priorities is directing resources toward hiring and retaining operators to improve and increase service. The labor market is still tight and AC Transit...
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