Capital Metro to use reserves to balance FY2015 budget

The city of Austin's public transit agency, Capital Metro, plans to use almost $43.2 million from its reserves to maintain a balanced budget of $322.1 million for fiscal year 2015.

The FY2015 budget represents a 13.5 percent increase from the FY2014 budget of $283.8 million. The agency's operating expenses and revenues from the 1 percent sales tax it receive are both expected to increase by $15.4 million, according to Capital Metro finance documents. FY2015 will also the first full year the agency will have operated its newest bus service, MetroRapid.

Capital expenses will increase by $22.5 million, or a 37.9 percent increase as part of the agency's multi-year program to replace aging buses.

Despite using its reserves, or fund balance, the agency will still be in compliance with recommendations from the Sunset Advisory Commission, said Frank Ordaz, Capital Metro's director of financial planning. The commission, made up of state legislators, assesses government agencies to identify redundancies and inefficiencies.

Senate Bill 650 required Capital Metro to maintain at least two months of operating expenses, about $28 million, in its fund balance by September 2016, according to sunset review documents.

"Once we adopt the 2015 budget, we expect to have $59 million in the fund balance, which is over and above the [requirement]," Ordaz said.

Upcoming events

• Sept. 15 at noon: Webinar on proposed budget. Register at https://bit.ly/1sYKBi9
• Sept. 15 from 5–7 p.m.: Public hearing at Capital Metro's headquarters, 2910 E. Fifth St.
• Sept. 17 from 11:30 a.m.–1:30 p.m.: Open house at the Capital Metro Transit Store, 209 W. Ninth St.
• Sept. 17 from 5–7 p.m.: Open house at the Capital Metro Transit Store, 209 W. Ninth St.

For more information, visit www.capmetro.org.