Capital Metro, the city’s transportation agency, has proposed a $704.8 million budget for fiscal year 2024-25, which is close to 20% lower than last year's budget. The agency still has plans to add new customer service lines, enhancements to building and operation infrastructure, and construct a new headquarters.The current situation

The entity receives a large portion of its funding from sales tax revenue, which can fluctuate from month to month and year to year. And though recent sales tax revenue trends have drawn a cause for concern from local leaders—several months of last year’s budget did not meet the entities budgeted 4.5% year-over-year growth rate—CapMetro officials remain committed to future growth.

“The budget is structurally sound and balanced, and funded through various revenue sources,” CapMetro Deputy CFO Kevin Conlan told board members during a presentation Sept. 11. “... I'm very optimistic for next year, but remain very guarded as well, with the downturn in sales tax, the current financial climate and necessary funding for large projects like a zero emission fleet, facility needs and other projects.”

This year’s budget includes $402.8 million in project sales tax revenue, while projections for the remainder of sales tax revenue to be collected for last fiscal year, which ends in September, indicate CapMetro will close with 1.4% less than originally projected.

Breaking it down

CapMetro plans to allocated $229.8 million in this year’s budget toward capital improvements, which includes a variety of projects including:

• $15 million toward CapMetro Pickup, a neighborhood on-demand transit service
• $2.4 million for the city’s Bikeshare operations and expansion
• $149.1 million, over five years, for the North Demand Response Facility and new headquarters
• $21.5 million, over five years, toward bus stop enhancements and infrastructure
• $21.2 million toward Project Connect, including a new CapMetro Rapid Expo Center and Pleasant Valley Lines, and South Base Demand Response Facility

The budget indicates $228.8 million will be spent on transportation operating costs, a $19.7 million increase due to the opening of new service lines that require increased staff, hours, vehicles and gas.

Other planned project for the next fiscal year include:

• Beginning the incorporation of fully electric buses and explore hydrogen powered bus options
• Constructing 50 new bus stops and 25 bus shelters
• Finalizing the construction of the 4th & Sabine Rail/Bike/Pedestrian Crossing Project
• Adding 150 e-bikes and 12 stations to the city’s Bikeshare program
• Developing Transit 2035 planning document
• Launching new Decker Lane pickup zone and two new CapMetro Rapid service lines
• Implementing wayfinding technology throughout the transit network to increase accessibility for those with disabilities
• Offering a childcare stipend to CapMetro and service provider staff to use toward child care
• Expanding Transit Police Department

Looking ahead

The board will formally adopt the budget at its next meeting Sept. 23; FY 2024-25 begins Oct. 1. Residents have the the opportunity to voice their thoughts by signing up for public comment. Those interested can find more information here.