Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JANUARY 18, 2023
Subject
SUBJECT: FISCAL YEAR 2024 BUDGET DEVELOPMENT PROCESS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE The Fiscal Year 2024 (FY24) Budget Development Process.
Issue
ISSUE
This is the first of a series of monthly updates to the Board to kick-off the FY24 Budget development process, culminating in a planned May 2023 Board Adoption. This report lays the framework for the annual budget development, with the primary objective for the annual budget to achieve Metro's transit and transportation goals, with an equity lens, in a fiscally sound and financially responsible manner.
This report sets up the economic context for the upcoming fiscal year, starting with an updated Near-Term Outlook outlining the revised assumptions for the revenues and expenses over the next 3 years. An outline of the planned Equitable Zero-Based Budget (EZBB) process and schedule follows to address the delivery of Metro objectives in the next fiscal year. During the budget development process, a comprehensive and transparent public outreach engagement has begun to maximize public input and ensure Metro's stakeholders have an active role in the process.
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 authorization 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 is authorized on a life of project basis. Beginning January 2023, staff will begin to provide a series of statu...
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