Finance director warns of major parts shortfall; staff plans a budget amendment

During the March 6 meeting Christine, who led the financial presentation, told trustees Embark’s transportation operating fund had revenues exceeding expenses by $573,000 through Jan. 31, 2026, but that the repair-and-maintenance parts line is under pressure.

Finance staff said year-to-date supplies were over budget by roughly $315,000 and that engine replacements and higher parts prices had driven spending. "At the current spending rate, we project an additional 1.5 million in repair and maintenance parts costs through the end of the year, which would put us approximately $1.2 million over budget in that line alone," Christine said.

Christine noted an expected CNG tax credit of about $355,000 and a $650,000 parking payment from a professional basketball club that should improve near-term parking variances, but she warned the parts overrun will likely require a formal budget amendment later in the fiscal year. Staff said they are reviewing expense categories to find offsets and will return with recommendations.

Why it matters: A sizable parts shortfall could affect maintenance schedules, vehicle availability and service reliability if not addressed through reallocation or additional revenue.

Next step: Staff will continue line-item reviews and bring a proposed budget amendment to the board if needed.