SolTrans closes year under budget but flags Clipper reconciliation shortfall

Finance staff reported that the fiscal year ended with expenses approximately 7% under budget and that operating revenues (fare revenue) were below projections.

Key points: expenses were under budget largely because contracted transit services improved and fuel costs were lower (credits from biogas for CNG fleets and delayed electric bus fuel charges). Fare revenue was lower than budgeted; staff said part of the shortfall stems from Clipper (regional fare system) reporting and reconciliation problems. Staff said a grant will cover the youth-fare program revenue shortfall for the current and next fiscal year; the agency's annual audit field work is complete and nearing wrap-up.

Clipper reconciliation: Board discussion identified unresolved Clipper reporting and compensation issues; the conversation cited a figure in the meeting of about $780,000 as an amount under reconciliation that may be owed to the agency. Staff said they are preparing detailed, source-level data to support a formal request to MTC/Clipper and prefer to send a letter with quantified documentation rather than a generic request.

Board direction: Directors asked staff to prioritize the Clipper reconciliation work and to bring a clear, documented request to the Metropolitan Transportation Commission (MTC) and Clipper program managers. Staff said an upgraded Clipper reporting tool (Clipper 2) is being rolled out and that the new reporting should improve future reconciliation.

Provenance: The operating revenue and Clipper discussion appears at 01:52:36 in the transcript and continued through the subsequent exchanges about the reconciliation strategy.