MPO keeps staffing and reserves allocations, defers how Bend's share will be used

The Bend Metropolitan Planning Organization policy board on March 21 voted to keep proposed allocations for MPO staffing, required planning reserves and the competitive project application program for fiscal years 2028–2030, and deferred a final decision about how the city of Bend's remaining share of State Highway Fund (SHF) dollars should be used.

MPO staff told the board the agency has accumulated earned interest from federal COVID-era funds and is building an operational reserve after the board in 2023 agreed to set aside $80,000 per year in FY25–FY27. Tyler Deaky, Bend MPO staff, said finance staff recommended the board "review the available interest at the beginning of each fiscal year and then ask the board at that time" before programming interest funds.

Why it matters: the MPO's discretionary SHF allocation will be smaller beginning in FY2028, and the board must pick how to split those dollars among street preservation, a competitive grant program, MPO staffing and reserves. That choice affects the City of Bend's pavement-preservation budget and whether more discretionary MPO money is directed to safety and low-stress bikeways instead of pavement treatments.

What the board heard

MPO staff presented three reserve categories: an operational reserve (the $80,000-per-year item started in FY25), an "awarded projects" reserve to help small, competitive projects cover unanticipated cost increases (staff suggested a 5% set-aside, roughly $20,000 per year), and a planning-projects reserve to fund major required plans (staff provided a conservative five-year planning estimate of about $565,000, or roughly $110,000–$115,000 per year).

Andrea (MPO staff) explained the SHF change: the funds were previously Surface Transportation Block Grant (STBG) federal dollars that often were exchanged for state dollars; that exchange is no longer needed, but the net available SHF amount the MPO receives is about $300,000 less per year than in the earlier federal-era cycle. Andrea said that change produced competing demands among streets, the competitive project program and MPO planning/staffing.

City transportation staff emphasized trade-offs. David Abbas, Transportation Mobility Department director for the City of Bend, told the board the city's street preservation program still needs about $5.5 million per year to meet long-term maintenance goals; the current draft budget identifies roughly $4.5 million per year. Abbas said the MPO's discretionary share (roughly $650,700 in the current year) helps that program and that redirecting those dollars would force the city to find replacement funds or accept a decline in pavement condition.

Board action

Commissioner Phil Chang moved to keep the MPO staffing, required planning reserves and competitive-project program allocations at the levels proposed by staff and defer a final decision on how to allocate the remaining SHF funding for the City of Bend to a future meeting. Councilor Mike Riley seconded the motion. The board approved the motion and the chair declared it passed unanimously.

Votes at a glance

- Motion to retain staffing, planning-reserve and competitive-project funding proportions and defer how Bend's share will be used: Mover ' Commissioner Phil Chang; Second ' Councilor Mike Riley; Outcome ' approved unanimously. (Transcript records the motion and unanimous voice vote; individual roll-call votes were not read.)

Details, context and next steps

- Earned interest: staff said interest resulting from federal COVID funds sitting in MPO accounts has built up and will be presented for allocation at the start of the next fiscal year (July/August timeframe).

- Reserves: the board is building an operational reserve and discussed adding an awarded-projects contingency and a consultant/major-planning reserve. Staff estimated the planning reserve need at about $110,000'$115,000 per year to cover consultant work for required plan updates, including the metropolitan transportation plan and an update to the travel model.

- Funding scenarios: staff presented three scenarios that prioritized (1) status quo proportions for streets/competitive projects while preserving staffing and planning reserves, (2) similar proportions but with a focus on neighborhood greenways/low-stress bikeways instead of broad street preservation, and (3) leaving more flexibility for board direction. The board's motion accepted the staffing and reserve baselines and postponed the question of how much of the local city allocation would go to pavement preservation versus safety programs.

- Implementation: staff said the decision affects the fall 2025 competitive-project solicitation (applications this fall would be funded in later fiscal years), so the board wanted to set funding parameters ahead of that schedule. The item will return to the board for a future vote on how to allocate the city-specific share.

Attribution

Quotes in this article are attributed to people who spoke during the March 21 MPO policy board meeting and are drawn from the meeting transcript.

Ending

The board will revisit the remaining allocation question at a subsequent meeting; staff will return with a revised funding table and additional examples of projects that could be targeted if the board elects to prioritize neighborhood street safety or low-stress bikeways over pavement preservation.