TJPA board approves roughly $29.2 million preliminary operating projection; operator contributions fall 25%

The Transbay Joint Powers Authority board on Jan. 22 approved a preliminary operating projection for fiscal year 2026–27 totaling approximately $29.2 million, with staff citing stronger projected operating resources and revenue growth that reduce the contribution required from transit operators.

"Our preliminary operating budget totals approximately $29,200,000," CFO Sheema Mirzai told the board. Mirzai said projected operating resources have increased since September, allowing staff to reduce the required transit operator contribution by about $1.1 million "to a total of $3,400,000 which is 25% lower than the contribution from last fiscal year."

Key revenue and expense items noted by Mirzai include $13.5 million in reimbursements from bridge toll funds, $1.7 million in community benefit district assessments that cover much of Salesforce Transit Park operations, and $8.3 million in operating revenue from the transit center (a 15% increase from the prior year). Total operating expenditures were projected at just under $27 million, with $2.2 million for park operation. Mirzai said the preliminary budget assumes a fiscal reserve maintained at the policy level of 25% with a $334,000 transfer from fund balance.

Board members thanked staff for identifying savings and revenue opportunities. Director Andrzejak noted that reductions in operator contributions for a second consecutive year are significant for AC Transit and thanked the finance team.

Board action: On a motion and second, the board approved Item 10 by roll call. Aye votes were recorded from Director Andrzejak, Director Kirschbaum, Director Lavery, Director Mariano, Vice Chair Mandelmann and Chair Jeff Gee; Item 10 was approved. The board also approved the consent calendar earlier in the meeting by unanimous roll call.

Clarifications recorded on the record: When a director asked whether TJPA has any maintenance or security obligations for the Grama Park curb, staff clarified that the operating budget covers Salesforce Transit Park but does not include operations or expenses for the on‑ramp park area, so TJPA is not planning to take on maintenance or security responsibilities for that curb.

Next steps: Staff will continue to refine revenue projections through May, update Regional Measure 2 and 3 estimates from MTC, adjust rental and advertising assumptions as procurements conclude, and return draft budgets for review and public hearing before final adoption in June 2026.