CapMetro board approves FY2026 budget, investment policy, Project Connect reimbursements and January 2026 service changes

The Capital Metropolitan Transportation Authority board on Sept. 22 approved the agency's fiscal year 2026 operating and capital budget, adopted a minor update to the agency investment policy, authorized interlocal agreements tied to Project Connect capital reimbursements, and approved the January 2026 service-change package.

The board approved a FY2026 operating and capital budget with total operating and capital spending of $625,208,612. Kevin Conlon, who presented the budget material, said the plan “is structurally sound and balanced” and projects meeting reserve requirements. Board member Stratton moved the budget resolution; Board member Harris seconded. The motion passed by voice vote with the chair calling the vote unanimous.

The board also approved an annual update to CapMetro’s investment policy. Staff said the only proposed change was raising the commercial paper limitation in the portfolio diversification section from 30% to 35% on the recommendation of PFM Asset Management, CapMetro’s investment advisor. Board member Bangle moved the resolution; Vice Chair Ellis seconded. The motion passed unanimously.

Two interlocal agreement actions tied to Project Connect were approved. The board authorized an amendment extending an existing interlocal agreement with the Austin Transit Partnership (ATP) that funds…