DALLAS - Austin's plan to introduce commuter rail service to its northern suburbs is running nearly two years behind schedule, as the $105 million Capital MetroRail remains sidelined by technical snags.
The 32-mile line from the Williamson County suburb of Leander to downtown Austin was originally scheduled to begin operations in 2008. Now, the Capital Metro transit authority has pushed the start to the first quarter of 2010.
Faulty crossing gates and control devices are blamed for the postponement, adding nearly $1 million to the project's cost as Cap Metro's sales tax revenue continues falling.
The Cap Metro board on Monday approved a $165 million budget for the fiscal year beginning Thursday that avoids service reductions despite a 5% drop in sales tax revenue. The board used $2.6 million in federal stimulus funding to cover operating expenses that otherwise would not have been funded.
The board also directed its staff to begin planning increased fares.
"Our goal throughout this process has been to maintain as much service on the street as possible even with the ongoing decline in revenue," Fred Gilliam, president of the transit agency, said in a prepared statement. "Capital Metro staff and board members have done an outstanding job with this budget under some very difficult and challenging circumstances."
Cap Metro also plans a $21.65 million capital program for the new fiscal year, with grant revenues of $42.4 million. While the agency has taken out loans to finance its commuter rail line, it has not issued bonds.
Austin and other cities in the service area have provided $3.7 million for various projects.
Capital Metro plans to increase its cash reserves to a projected $10.59 million during the fiscal year.
"The FY 2010 capital program, while modest, still makes headway on several major projects and supports the agency's commitment to an immaculate fleet and improved and accessible facilities," an agency statement said.
The board allocated $6.6 million or 4% of the 2010 budget for the MetroRail line. The agency is also making annual loan payments of $4.4 million for six rail cars.
Sales tax revenue for the new fiscal year is projected at $134.1 million, down 17% from the $161.7 million projected in September 2008 for the 2009 fiscal year. The actual figure is expected to come in at $140.4 million.
Investment revenue of $3.4 million two years ago, will fall to $280,000 next year, officials estimate. After using its reserves on rail and other capital expenses, Cap Metro has less than $10 million to invest.
