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CapMetro board approves FY2026 budget, investment policy, Project Connect reimbursements and January 2026 service changes
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Summary
At its Sept. 22 meeting the Capital Metro board approved the agency's FY2026 operating and capital budget, updated its investment policy, authorized interlocal agreements tied to Project Connect reimbursements, and adopted a set of January 2026 service changes; all actions passed unanimously.
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 capital costs for the Expo Center and Pleasant Valley MetroRapid lines; that amendment extends the agreement’s term through September 2026 to allow continued invoicing and reimbursement. Brad Bowman, CapMetro chief counsel, said the amendment was intended to allow continued work and construction invoicing to ATP; the item had been approved previously by the agency’s Finance, Audit and Administration committee and by the ATP board. The motion passed unanimously.
The board also approved a new interlocal agreement enabling ATP to reimburse CapMetro for specified CapMetro Project Connect components through fiscal year 2031 “in a total amount not to exceed $148,600,000,” as read into the record when the item was called. During the same presentation a staff speaker later described total reimbursements for the listed projects with a different figure; the record therefore contains both the $148,600,000 figure as read into the record and a later staff reference to a larger total. Board members asked procedural questions about how additional CapMetro components would be added in the future; staff said either an amendment or a subsequent interlocal agreement could be used depending on scope and timing. The motion passed unanimously.
Finally, the board approved resolution language authorizing implementation of the agency’s January 2026 service changes. Jordan McGee of CapMetro planning summarized changes that include a Night Owl realignment (Route 485) to serve East Seventh/Plaza Saltillo late-night activity, a temporary realignment of Tech Ridge Express (Route 935) to use Mopac express lanes during I‑35 construction, and cost-neutral pickup‑zone boundary expansions in Lago Vista and Manor to add service within existing service area boundaries. Under CapMetro policy, which staff said aligns with applicable FTA guidance, the package was classified as not a “major service change” and therefore did not require a Title VI analysis under the agency’s process. Board member Ross moved the item; Board member Bengals seconded. The motion passed unanimously.
Votes at a glance - Action 1 (FY2026 budget): mover Stratton; second Harris; outcome: approved (unanimous). Key detail: total FY2026 operating and capital budget $625,208,612 (presented by Kevin Conlon). - Action 2 (Investment policy): mover Bangle; second Ellis; outcome: approved (unanimous). Key detail: commercial paper limit increased 30% → 35% per PFM recommendation. - Action 3 (Amend ILA with ATP — Expo Center/Pleasant Valley): mover Harris; second Stratton; outcome: approved (unanimous). Key detail: extends 2022 ILA term to Sept. 2026 to continue capital invoicing and reimbursement for Expo Center and Pleasant Valley MetroRapid projects. - Action 4 (New ILA with ATP — CapMetro components reimbursed through FY2031): mover Stratton; second Ellis; outcome: approved (unanimous). Key detail: read into the record as “not to exceed $148,600,000”; staff presentation later referenced a different larger total in describing the agreement’s funding scope. - Action 5 (January 2026 service changes): mover Ross; second Bengals; outcome: approved (unanimous). Key details: Night Owl Route 485 realigned to East Seventh/Plaza Saltillo late‑night district; Route 935 temporarily routed to Mopac express lanes during I‑35 construction; pickup boundary expansions in Lago Vista and Manor; changes to be implemented Jan. 11, 2026 (and Night Owl Jan. 12); some pickup adjustments may begin earlier as operationally feasible.
Board procedure and record notes Board members removed no items from the consent agenda; the consent agenda (10 items) was approved by voice vote and recorded as unanimous. Several items were previously reviewed and recommended by the Finance, Audit and Administration committee and by the Austin Transit Partnership board where noted.
The board did not take any roll‑call vote tallies with individual yes/no/abstain recorded in the public transcript; the chair indicated unanimous approval for each motion as called.
