Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
APRIL 19, 2023
Subject
SUBJECT: FISCAL YEAR 2024 BUDGET DEVELOPMENT STATUS UPDATE
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Fiscal Year (FY24) Budget Development Status Update.
Issue
ISSUE
This is the fourth in a series of monthly updates to the Board on the FY24 Budget development process, culminating in a planned May 2023 Board Adoption.
This report focuses on key areas of the Metro Transit Program (Discussing both Operations and Maintenance as well as Capital Improvement projects). Other programs discussed include Congestion Management, General Planning and Programs, as well as Oversight and Administration.
This report also discusses the mitigation options for managing near-term financial challenges for Metro Transit and shares the latest update regarding Metro's comprehensive budget outreach efforts.
Background
BACKGROUND
California Public Utilities Code Section 130105 requires Metro to adopt an annual budget to manage the revenues and expenses of the Agency's projects and programs. The budget is the legal authority to obligate and spend funds and to implement Board policy. It includes all operating, capital, planning and programming, subsidy funds, debt service requirements, and general fund activities for the fiscal year. The legal level of control is at the fund level. Total annual expenditures cannot exceed the final appropriation by the Board at the fund level except for capital expenditures, which are authorized on a life of project basis.
Discussion
DISCUSSION
Metro Transit: Near-Term Financial Challenges
Metro strives to redefine daily travel habits and create legacy investments that improve the ease, accessibility, and travel experience across the most important journeys for Metro's current and future customers. As indicated in last month's report, the overall operating deficit, also referred to as the 'fiscal cliff,' and the cha...
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