AC TRANSIT DISTRICT Board of Directors Executive Summary
GM Memo No. 09-052 Meeting Date: March 11, 2009
Committees: Planning Committee External Affairs Committee Rider Complaint Committee Board of Directors
Finance and Audit Committee Operations Committee Paratransit Committee Financing Corporation
SUBJECT: FY 2008-09 Second Quarter Financial Performance Report Adoption of Resolution No. 09-010 Amending the Second Year of the FY 2007-08 and FY 2008-09 Biennial General Fund Operating and Capital Budget for FY 2008-09 Second Quarter Revisions. RECOMMENDED ACTION: Information Only
Briefing Item
Recommended Motion
1. Receive FY 2008-09 Second Quarter Internal Financial Statements as of December 31, 2008 for the District Operating Program, Paratransit Operations and the AC Transit Financing Corporation. 2. Receive Summary Financial Statements-YTD December 31, 2008 3. Adopt Resolution 09-010 Fiscal Impact: N/A Background/Discussion: FY 2008-09 second quarter financial performance was very good, considering the worsening economic conditions during the last three months of FY 2008. Operating revenues increased 6.06% over the pervious operating period in FY 2007-08. In addition, total subsidies were up 20.03%, with the biggest contributor being funds received for preventative maintenance. Offsetting this revenue picture were increases in expenses over the previous year. In particular, wages and fringe benefits increased 6.11% and 10.2% respectfully. Rising fuel costs during this period resulted in a dramatic increase of 26.7% over the previous year for the District.
BOARD ACTION:
Approved as Recommended [ ] Approved with Modification(s) [ ]
Other
[ ]
The above order was passed on: . Linda A. Nemeroff, District Secretary By
GM Memo No. 09-052 Meeting Date: March 11, 2009 Page 2 of 3 During this period the District saw its operating deficit decline by more than 60% versus the same period in FY 2007-08. Staff is hereby presenting for adoption the revised recommended scenario 1D as second quarter projection as per attached Resolution 09-010 and accompanying financial schedule. Staff also refers the Board to GM Memo 09-065a dated March 11, 2009 which presents, for discussion purposes during the March 11th board meeting, an update on the said revised recommended Scenario 1D, the alternative Scenario 2 and Scenario 3 that were discussed in board session on February 25, 2009, as well as the new requested Scenario 1.5, prepared on the basis of comments and feedback provided by the Board. Prior Relevant Board Actions/Policies: GM Memo No. 08-268 Year-End Financial Performance Report as of June 30, 2008 December 17, 2008 GM Memo No. 08-042, March 12, 2008, FY 2007-08 and FY 2008-09 Second Quarter Financial Performance Report and Recommended Adoption of Resolution No. 08-033 Amending the First year of the FY 2007-08 and FY 2008-09 Biennial General Fund Operating and Capital Budget for FY 2007-08 Second Quarter Revisions. GM Memo No. 07-283a, December 12, 2007, FY 2007-08 and FY 2008-09 First Quarter Financial Performance Report for the First year of the FY 2007-08 and FY 2008-09 Biennial General Fund Operating and Capital Budget.
Attachments: 1. FY 2008-09 Second Quarter Internal Financial Statements as of December 31, 2008 for the District Operating Program, Paratransit Operations and the AC Transit Financing Corporation. 2. Summary Financial Statements-YTD December 31, 2008 3. The Economic Crisis and Crisis in Economics (full report to be available at meeting) 4. US Q4 2008 GDP Report Analysis (full report to be available at meeting) 5. US Household Finances, Flow of Funds, December 2008 (full report to be available at meeting) 6. Resolution 09-010
GM Memo No. 09-052 Meeting Date: March 11, 2009 Page 3 of 3 Approved by:
Rick Fernandez, General Manager
Prepared by:
Lewis G. Clinton, Jr., Chief Financial Officer Finance Department Staff Frank Hayward, Jr., Controller Hernan Vargas, Budget Manager Dan Lillin, Treasurer
Date Prepared:
February 12, 2009
GM 09-052 ATT. 6
ALAMEDA-CONTRA COSTA TRANSIT DISTRICT RESOLUTION NO. 09-010 A RESOLUTION AMENDING THE GENERAL FUND BIENNIAL OPERATING AND CAPITAL BUDGET FOR FISCAL YEARS 2007-08 AND 2008-09 AT SECOND QUARTER FY 2008-09
WHEREAS, the General Manager has developed a General Fund Biennial Operating and Capital Budget for FY 2007-08 and FY 2008-09 based on prevailing economic conditions; and WHEREAS, the Board of Directors approved the FY 2007-08 and FY 2008-09 Biennial Operating and Capital Budget per Resolution No. 07-045 on September 19, 2007; and WHEREAS, the General Manager has developed a revision to the FY 2007-08 and FY 2008-09 General Fund Biennial Operating and Capital Budget based on current economic conditions; and WHEREAS, the Board of Directors has received and reviewed the General Manager's Proposed Second Quarter Budget Revisions for FY 2007-08 and FY 2008-09 General Fund Biennial Operating and Capital Budget; and
NOW THEREFORE, THE BOARD OF DIRECTORS OF THE ALAMEDACONTRA COSTA TRANSIT DISTRICT DOES RESOLVE AS FOLLOWS: SECTION 1. Amend the Fiscal Year 2008-09 General Fund Biennial Operating and Capital Budget for Fiscal Year 2008-09 Second Quarter Revisions as identified on the FY 2008-09 Second Quarter Projection Summary: a. Total Operating revenues for the Fiscal Year 2008-09 is revised to $312.1 Million as identified on the FY 2008-09 Second Quarter Projection Summary. b. Total Operating expenses for the Fiscal Year 2008-09 is revised to $323.1 Million as identified on the FY 2008-09 Second Quarter Projection Summary. c. Total Capital expenses for the Fiscal Year 2008-09 is revised to $3.0 Million as identified on the FY 2008-09 Second Quarter Projection Summary. d. Transfer from Equity in the amount of $14.0 Million as identified on the FY 2008-09 Second Quarter Projection Summary.
RESOLUTION No. 09-010 Page 1 of 2
GM 09-052 ATT. 6
SECTION 2. This resolution shall become effective immediately upon its passage and adoption.
PASSED AND ADOPTED THIS 11th DAY OF MARCH 2009.
________________________________ H.E. Christian Peeples, President ATTEST: ______________________________________ Linda Nemeroff, District Secretary I, Linda A. Nemeroff, District Secretary for the Alameda-Contra Costa Transit District, do hereby certify that the foregoing Resolution was passed and adopted at a Regular meeting of the Board of Directors held on the 11th day of March, 2009 by the following roll call vote: Ayes: Noes: Abstain: Absent: ________________________________ Linda A. Nemeroff, District Secretary Approved as to Form:
______________________________________ Kenneth C. Scheidig, General Counsel
RESOLUTION No. 09-010 Page 2 of 2
