WeGo seeks $77.7 million in new operating investments and a 30% operating reserve in FY25-26 submission to Metro

WeGo staff submitted their fiscal year 2025-26 operating request to Metro as required by the Metro budget calendar. The submission contains a baseline operating request and a substantial investment package tied to the Choose How You Move program.

Baseline and investment totals: The baseline operating request submitted to Metro was $88,800,000 to continue current services with inflationary adjustments. The investment request totals $77,700,000 and is composed of one-time and recurring proposals related to Choose How You Move. The largest single line in the investment package is a proposed one-time transfer to an operating reserve: $47,200,000 to establish a minimum operating reserve equal to 30% of operating expenses (three months). Staff said this reserve would provide short-term liquidity, reduce reliance on the agency line of credit and increase competitiveness for federal grants tied to capital projects.

Why it matters: Staff emphasized that the city—s Choose How You Move referendum created a new dedicated revenue stream that Metro will collect and distribute and that a funded operating reserve would help an expanding service manage cash flow and start-up costs for new service corridors. The board will see additional budget conversations as Metro council and finance offices consider supplemental requests and the timing of funds.

Breakdown of the investment request: Staff presented four buckets: - Direct service expansion ($7,800,000): additional fixed-route frequency and span increases, expanded weekend and evening service, added WeGo Link pilot zones and a low-income fare subsidy program. - Safety and security ($6,300,000): contracted security coverage increases, development of a security plan, facility upgrades, an ambassador program and additional MNPD coverage where needed. - Service quality and reliability ($4,500,000): recruitment, retention and training initiatives for operations staff and drivers, including funding to hire and retain additional operators tied to service expansion. - Capital program delivery ($1,400,000): agency capacity to design and deliver the capital elements of Choose How You Move.

Other notable items: Staff proposed using federal formula funds differently than in recent pandemic-era years by directing formula dollars back to capital to reduce reliance on supplemental federal allocations for state-of-good-repair projects. Staff also noted that Metro is collecting the Choose How You Move revenues and the timing of any Metro supplemental appropriation will determine how quickly WeGo can obligate funds. If Metro approves a supplemental appropriation in March, some FY25 work could start in April; otherwise staff said implementation likely waits until later in the fiscal year.

Board direction and next steps: Staff will return with additional budget details and prioritized implementation plans as Metro—s finance office evaluates the submissions. Amanda said the agency will seek board approval of the final operating budget in June and requested feedback on the draft reserve fund policy that would create the 30% target and authorized uses and replenishment rules.

Ending: The board asked staff to monitor supplemental actions at Metro and to align the final budget and implementation sequencing with Metro—s decisions; staff said it will provide additional briefings on timing, equity assessments and grant-readiness as the process progresses.