SUBJECT:
title
Approval of a resolution adopting the Fiscal Year 2025 Operating and Capital Budget and Five-Year Capital Improvement Plan, and recommending no changes to the CapMetro Strategic Plan.
end
FISCAL IMPACT:
Adoption of the proposed Fiscal Year (FY) 2025 budget will provide an appropriation of $704,769,612 in FY2025 for operating and capital expenses that are supported by projected revenue and other funding sources.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☐ 2. Community
☐ 3. Workforce ☒ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☐1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☐ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☒ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: The proposed FY2025 budget includes funding to maintain CapMetro’s current services while also adding new innovative mobility initiatives, customer service enhancements and building infrastructure needed to support the region’s current and future growth. The five-year capital improvement plan identifies projects that support the achievement of CapMetro’s strategic goals, ensures regulatory compliance and maintains assets in a state of good repair.
BUSINESS CASE: CapMetro has prepared a structurally balanced budget that provides the funding needed to continue delivering high-quality and efficient transportation services.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval at the Finance, Audit and Administration Committee meeting on September 11, 2024.
EXECUTIVE SUMMARY: The proposed FY2025 budget is structurally sound and balanced. Ongoing revenue is sufficient to fund operations and will also help provide funding for needed capital investments, including the replacement of transit assets nearing the end or at the end of life cycles.
The FY2025 budget is drafted with the intent to remain efficient and fiscally responsible. This budget enables CapMetro to continue improving our operations and service levels while also delivering crucial projects and commitments to Project Connect and our five-year capital improvement plan.
CapMetro proposes to spend $448.5 million for operating expenses, $5.2 million for commitments under interlocal agreements with local government entities for mobility programs and $21.2 million to contribute to the Project Connect System Plan in FY2025.
CapMetro prepared a five-year capital improvement plan (CIP) for capital projects that support its strategic goals. The CIP is updated annually and addresses replacement or state of good repair, regulatory compliance and expansionary requirements for public transportation service in Central Texas. CapMetro plans to invest $229.8 million in capital projects during FY2025.
Significant projects and acquisitions in the proposed FY2025 Budget, including state of good repair, regulatory compliance and new investments, are highlighted as follows:
• Gearing up for new services in FY2025, with plans to launch the new Decker Pickup zone and two new CapMetro Rapid services in the eastern portion of our serve area: Route 800-Pleasant Valley and Route 837-Expo Center. These services are scheduled to launch in FY2025 and will greatly enhance our offerings in several historically underserved areas of our region.
• We are beginning the multi-year implementation of the Bikeshare Strategic Expansion Plan. Through our partnership with the City of Austin, CapMetro will continue to focus on growing the system by adding nearly 150 e-bikes and approximately 12 stations. This expansion will address existing service gaps and increase the number of stations equipped with in-dock charging capabilities.
• Placement of 81 new electric buses into service and transition bus maintenance operations to a fully electronic inspection system, making it a paperless operation. These enhancements further our promise of sustainability as an agency Core Value.
• In collaboration with the City of Austin, CapMetro’s Bus Transit Infrastructure Program plans to complete the construction of 50 bus stops and 25 bus stop shelters, install solar lighting at 50 bus stops and implement ADA improvements.
• In addition to the highlights above, we will be working on developing Transit Plan 2035, embarking on a comprehensive evaluation of hydrogen fuel cell electric buses, progressing on establishing a Transit Police department, and much more.
The proposed budget reflects the prudent use of projected revenue to provide funding for capital investments needed to maintain CapMetro’s transit assets in a state of good repair or to support enhanced services. The proposed, structurally balanced FY2025 budget totals $704.8 million and is comprised of the following funding and expense categories:
The proposed budget reflects fund balance projections of $289.7 million by the end of FY2025 as outlined in the table that follows. Of this amount, CapMetro is estimating to set aside $71.7 million in reserves for two months of operating expenses, which meets the level set forth by the Texas Legislature, $35.9 million for the budget stabilization reserve, $7.1 million for the Sustainability Capital Fund, $2.9 million for city of Austin mobility programs, $2.3 million for the Small Cities Transit Supportive Infrastructure Fund, $1.7 million for a self-insurance reserve and $138.2 million for future funding of the 5-year capital improvement plan as we look forward to future needs in the region.
Senate Bill 650 requires CapMetro to prepare a five-year capital improvement plan, which is included in Appendix A of the budget document. This section provides additional information about each project category, including project descriptions, funding sources, project benefits and strategic objectives. The plan is updated annually and addresses replacement and expansion requirements for the delivery of public transportation services. The proposed FY2025 capital budget and capital improvement plan are outlined in the table that follows, summarized by project type and followed by projected funding sources.
Over recent months, CapMetro provided information regarding the budget process and the proposed FY2025 budget in a variety of formats for the public and sought feedback using online engagement tools, as well as methods like public open houses and virtual webinars. These outreach efforts included the following:
Presentations to the Board of Directors and its Committees
May 8, 2024, Finance, Audit and Administration Committee
June 12, 2024, Finance, Audit and Administration Committee
June 12, 2024, Operations, Planning and Safety Committee
July 22, 2024, Board of Directors
September 11, 2024, Finance, Audit and Administration Committee
September 23, 2024, Board of Directors
Board and Committee Meetings on Microsoft Teams virtual meetings and available to the public and at Rosa Parks Board Room, 2910 East 5th Street, Austin, TX 78702.
Served by routes 4, 300.
Presentations to Access Advisory Committee
June 5, 2024, 5:30 - 7:00 PM
August 7, 2024, 5:30 - 7:00 PM
Microsoft Teams virtual meetings and available to the public.
Presentations to Customer Satisfaction Advisory Committee
June 12, 2024, 6:00 - 7:30 PM
August 14, 2024, 6:00 - 7:30 PM
Microsoft Teams virtual meetings and available to the public.
Presentations to Public Safety Advisory Committee
June 28, 2024, 11:30 AM - 1:00 PM
August 30, 2024, 11:30 AM - 1:00 PM
Microsoft Teams virtual meetings and available to the public.
Presentation to Project Connect Community Advisory Committee
August 8, 2024, 5:00 - 7:00 PM
Microsoft Teams virtual meeting and available to the public and at Austin Transit Partnership, 203 Colorado Street, Austin, TX 78701.
Served by downtown routes.
Proposed FY2025 Budget Document Available and Posted Online
August 22, 2024
Public Open Houses
Information was made available to the public regarding the proposed FY2025 budget and five-year capital improvement plan.
August 26, 2024, 7:00 AM - 8:30 AM
Lakeline Station Park & Ride
Served by routes 214, 383, 985, CapMetro Rail.
August 27, 2024, 7:00 AM - 8:30 AM
Westgate Transit Center
Served by routes 30, 300, 311, 315, 318, 803.
August 28, 2024, 12:00 PM - 1:30 PM
Norwood Transit Center
Served by routes 10, 323, 325, 339.
August 29, 2024, 12:00 PM - 1:30 PM
Republic Square Park
Served by downtown routes.
Online Webinar
Information made available to the public regarding the proposed FY2025 budget and five-year capital improvement plan.
YouTube virtual webinar available to the public, Spanish-translated, recorded and posted on YouTube, Facebook and Twitter.
Public Hearing on Proposed FY2025 Budget
September 11, 2024, 12:00 PM
Rosa Parks Board Room, 2910 East 5th Street, Austin, TX 78702
Served by routes 4, 300.
Board of Directors Considers Adoption of Budget Proposal
September 23, 2024, 12:00 PM
Rosa Parks Board Room, 2910 East 5th Street, Austin, TX 78702
Served by routes 4, 300.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Finance
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1261
WHEREAS, pursuant to Section 451.102 of Chapter 451 of the Texas Transportation Code, the budget for Fiscal Year 2025 was made available to the public on August 22, 2024, and a budget public hearing was held on September 11, 2024; and
WHEREAS, pursuant to Section 451.132(c), the Board of Directors has reevaluated the five-year capital improvement plan; and
WHEREAS, pursuant to Section 451.135, the Board of Directors adopted the CapMetro Strategic Plan (Resolution AI-2023-769) on April 24, 2023, received an update on the existing strategic plan on May 31, 2024, and authorized a contract for a new agency long range vision on August 26, 2024 (Resolution AI-2024-1233).
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the Fiscal Year 2025 budget in the amount of $704,769,612 is adopted.
BE IT FURTHER RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the five-year capital improvement plan for capital projects is amended.
BE IT FURTHER RESOLVED that the Capital Metropolitan Transportation Authority Board of Directors hereby requires the President & CEO to report at least quarterly on the operating expenses and capital project expenses of each major department in a financial report.
BE IT FURTHER RESOLVED that the Capital Metropolitan Transportation Authority Board of Directors hereby affirms it has completed a review of the CapMetro Strategic Plan, and, at this time does not recommend changes pending further discussions as part of the Long Range Agency Vision development.
____________________ Date: ____________________
Secretary of the Board
Becki Ross