VA: Roanoke transit budget includes 300,000 gallons of diesel

It takes about 300,000 gallons of diesel to fuel Roanoke’s regional bus system for one year.

At an expected cost of about $2.70 per gallon, that’s an $810,000 chunk of the overall $14.2 million budget approved by the Greater Roanoke Transit Co. board during its meeting Monday afternoon. The budget takes effect with the government’s new fiscal year July 1.

Valley Metro is expecting to pay about 50 cents more per diesel gallon than last year, but far less than the $4.60 per gallon budgeted for the 2023 fiscal year, amid a surge in gas prices, said Valley Metro General Manager Kevin Price.

“Now, with the electrics in service, that number probably will decrease some,” Price said. “We’ll see. I’ll be interested to see how the electrics affect our usage as far as fuel.”

Roanoke rolled out its first electric buses earlier this spring. The initial fleet of three electrics will be expanded in the future, officials said previously.

MetroFLX, the city’s after-hours, on-demand ride service, continues to grow in usage, Price said. Month-to-month ridership increased by about 400 rides to more than 1,800 trips in May.

“It is very popular,” Price said. “We’ve done some marketing for MetroFLX, very minimal, but it jumped that much just on that little bit.”

The MetroFLX program — which began in 2024 for a two-year test-run — is expanding, thanks to a state grant worth $2.6 million, Price said. That grant covers 80% of a three-year program, with the city using some coronavirus relief funding to cover the $650,000 local match.

“We’re able to kind of stretch those out,” Price said. “We’ll get a double bang for our buck so that MetroFLX continues.”

Other expenses for the transit system include $5.2 million for labor, driven up by overtime and premium pay, because Valley Metro is short about 10 to 15 operators, Price said. Drivers are bargaining for a new, three-year union contract this year.

“That may have a budgetary impact,” Price said. “We’ll see how we land, as far as that’s concerned.”

Revenue from passenger fares is expected to be $1.6 million, and ads on buses will net about $200,000 for the transit company. State funding is $3.1 million, plus $5.9 million from federal funds.

The city of Roanoke funds about $2.3 million to the regional public transit system, in addition to $283,000 from Salem, $88,000 from Vinton, and about $550,000 from other sources including Virginia Tech, Carilion Clinic, Downtown Roanoke Inc., and localities in the New River Valley.

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