CapMetro CFO outlines FY2027 budget timeline and revenue assumptions; sales tax growth offsets recent trough

Kevin Conlon, CapMetro chief financial officer, presented an initial, high-level review of the agency’s proposed FY2027 budget at the June 22 board meeting.

Conlon said the fiscal year begins in October 2026 and spans through September 2027. He outlined the budget development calendar: a detailed proposal will be delivered to the board on July 27, the budget document will be published online by Aug. 21, and the public hearing on the proposed budget and Capital Improvement Plan will be held Sept. 16; adoption is planned at the September board meeting.

On revenue assumptions, Conlon said sales tax — the agency’s largest revenue source — was up roughly 7.7% through March year over year and about 7% through April, though April showed some slowdown likely tied to higher energy costs. He said the agency expects approximately $50,000,000 in Section 5307 federal funds. Conlon also noted continued alignment of operating expenses with planned service changes, higher fuel costs (with a decision not to enter new fuel hedging positions yet), and plans for hybrid bus purchases starting FY2027 and other capital projects, including the Demand Response North Base and North Burnett Uptown Rail Station.

Board members asked no questions during the public presentation. Conlon said staff will continue committee and public engagement before the September adoption timeline.