Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
MAY 20, 2020
Subject
SUBJECT: CONTINUING RESOLUTION FOR FISCAL YEAR 2021 BUDGET
Action
ACTION: ADOPT A CONTINUING RESOLUTION FOR FISCAL YEAR 2021 BUDGET
Heading
RECOMMENDATION
Title
A. ADOPT a continuing resolution to extend FY20 budget authorization for one quarter into FY21 until September 2020 when Fiscal Year 2021 (FY21) budget is considered for Board adoption
B. AUTHORIZE the CEO to execute the adopted continuing resolution through first quarter of FY21 until October 1, 2020
C. AUTHORIZE the extension of all annual Operating and Fare subsidy Memorandums of Understanding (MOUs) subject to available funds until such time as the FY21 budget is adopted
Issue
ISSUE
California Public Utilities Code (PUC) Section 130105 requires Metro Board to adopt an annual budget. The budget is the legal authorization to obligate and spend funds to implement Board policies and to carry out regional transit and transportation programs. The current FY20 budget authorization is for the period of July 1, 2019 to June 30, 2020. The development of the FY21 budget has been in progress and on schedule until March 2020 when Coronavirus Disease-2019 (COVID-19) pandemic altered the trajectory of the economy. As the nation and the county shifts resources and priorities to address this emergency, the development of the annual budget was negatively impacted; resources and revenues needed to continue Agency programs in FY21 are not fully defined
As the situation continues to evolve and COVID-19 end date is uncertain, the financial indicators on which Metro budget is built become more volatile. The budget development requires a fiscally responsible approach to allow more time re-evaluating the revenue projections and adjusting expenditures proposed in order to ensure a balanced budget with a transparent due process.
A continuing resolution to extend the adopted FY20 Budget beyond June 30, 2020 for one quarter is a tempo...
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