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 March 2023 of FY 2022-23.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
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 as expected for the third quarter of the fiscal year. Revenues are $9.5 million (2.3%) above budget and Expenses are $43.0 million (10.5%) below budget, resulting in a surplus of $52.4 million. The District's surplus position is mostly explained by budgeting operator requirements for 88% service levels while continuing to experience difficulties filling vacancies and hiring operators for service restoration. Although the District continues to support efforts and initiatives to attract operators, the recruiting difficulties have resulted in excess operator labor budget.
Sales and property tax revenues remain resilient this year and American Rescue Plan (ARP) Act revenue drawdowns are tracking close to budget. Any Surplus budget remaining at year-end will be used to pay for District capital requirements and to increase the District cash balance in preparation for a potential economic downturn.
Operating Revenues
Total revenues and subsidies are $9.5 million (2.3%) above budget for the July-March period. Operating Revenues, including Farebox, are on-budget and $7.2 million (28.0%) higher than the prior fiscal year-to-date actuals. Subsidies are $9.9 million (2.9%) over budget....
Click here for full text