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Sandy transit expands service and orders electric buses; budget relies heavily on grants and contracts
Summary
The transit fund budget adds staff, includes anticipated federal and state grant revenues tied to existing contracts, and budgets for three electric buses arriving in June; committee members asked how transit would handle maintenance training and long‑term staffing and operations costs.
City transit staff presented a 2025–27 transit budget that increases operating staff, reflects major grant and contract revenues, and includes electric‑bus purchases arriving in June.
The proposed transit budget totals about $12.5 million for the biennium, up from $11.1 million. Staff said most of the funding growth reflects capital grants, state and county contracts and a planned $120,000 annual retainer for an economic consultant that the Urban Renewal Agency helps fund. Operations staffing rises from 2.8 to 4.8 FTE to support additional service and planned facility improvements.
Transit Director Andy (unnamed in the record) said grant revenues underpin large parts of the capital program and that the city has next‑year federal funding secured; the department cautioned that federal funding beyond the next year is not guaranteed and that service cuts would be required if grants were not renewed.
The department is adding three electric buses with deliveries expected in June. Staff said the procurement includes grant‑funded training to upskill maintenance partners and drivers; the city plans to retain diesel buses as backups. “We will have three electric buses… we will have a partner in Wilsonville that has a portable electric charger,” the director said, and the city will continue to rely on third‑party maintenance until an in‑house facility and mechanic hire are in place.
Committee members asked about fare policy and the role of the transit payroll tax, noting transit’s heavily subsidized routes such as the Mount Hood Express and the publicly supported Clackamas Town Center route. Members highlighted the tradeoffs between keeping fares low to maintain ridership and the need to build local revenue resilience in case grant funding declines.
Ending: Staff said the department will seek continued grant support and would return with more detail on staffing and facility timing; the budget relies on secured contracts for the next year and on a longer‑term sustainability review scheduled in the upcoming biennium.
