IndiGo Board Meeting Approves Fare Increase, August 21, 2025
IndiGo Board Meeting Approves Fare Increase
The IndiGo Board of Directors held a meeting on August 21, 2025, to consider and approve several action items, including the fiscal year 2026 budget, an updated fare policy, and the purchase of a replacement bus. The meeting also featured presentations on financial performance, the IndiGo Foundation's program analysis, and a fiscal sustainability study.
Consent Calendar
- Action Item A-1: The board unanimously approved the minutes from the meetings of July 17 and July 31, 2025.
Action Items
- Action Item A-2 (FY 2026 Budget): The board adopted the operating, capital, and debt service budgets for fiscal year 2026, totaling $432,246,559. This includes a special tax levy resolution. The budget breakdown is: $153.9 million (operating), $257.6 million (capital), and $20.8 million (debt service). Director of Budget Justin Rukus presented the item, noting that the budget was introduced on July 17, a public hearing was held on July 31, and it will proceed to the City-County Council on October 6, 2025, after a hearing on September 17, 2025. The vote was approved by roll call with Director Gardner and Director Wilson voting aye.
- Action Item A-3 (Fare Policy Update): The board passed an amended resolution to update fare policies, including an increase in the base fare from $1.75 to $2.75 effective January 1, 2026, and an increase in IndiGo Access (ADA paratransit) fares (from $3.50 to $5.50) delayed to July 1, 2026. The motion, made by Director Gardner and seconded, also authorized the CEO to make minor non-substantive changes to the final policy documents. The vote was unanimous by roll call.
- Action Item A-4 (Bus Purchase): The board approved the purchase of one 60-foot diesel articulated bus from New Flyer of America for $1,615,686.72, including a 15% contingency for tariffs. Chief Operating Officer Aaron Vogel explained that the bus replaces one lost in an incident in April 2024 and will be paid for by insurance proceeds. The purchase will be combined with the existing order for 18 Blue Line buses. The motion carried unanimously.
Discussion Items
- Fare Policy Presentation: Staff presented detailed reasons for the fare increase, citing inflation eroding fare revenue (purchasing power of the $1.75 fare is 67% of its 2009 value) and increased operating expenses from collective bargaining, local bus route improvements, and BRT service. The presentation also covered federal Title VI fair equity analysis, which found a "disproportionate burden" for low-income riders using the reduced-fare 31-day pass, mitigated through public outreach and continued acceptance of passes beyond the effective date. Public feedback included concerns about the increase being too high, especially for IndiGo Access riders; issues with MyKey validator reliability; and concerns over eliminating the 31-day pass. The board discussed the importance of equitable access and requested staff to develop a fare collection enforcement plan.
- Foundation Update: Emily Moe, Executive Director of the IndiGo Foundation, presented the results of a program analysis funded by an Eli Lilly grant. The analysis produced a theory of change, logic models for each program, and a data sharing framework to improve coordination between IndiGo and the Foundation. Recommendations included using a shared CRM and better utilizing customer surveys.
- Fiscal Sustainability Study: Brooke Thomas, Chief Development Officer, presented a study aimed at addressing potential budget deficits by exploring revenue growth (fares, advertising, partnerships) and cost reduction (operating practices, service realignment). Key obstacles include limited funding expansion options, aging capital assets, and staffing challenges. The study will include peer agency benchmarking and produce an action plan.
Key Outcomes
- Approved Minutes (July 17 and 31, 2025).
- Adopted FY 2026 Budget ($432,246,559 total).
- Approved Fare Policy Update (base fare to $2.75 on Jan 1, 2026; paratransit increase delayed to July 1, 2026).
- Approved Purchase of One Replacement Bus ($1,615,686.72).
- Staff directed to develop a fare collection enforcement plan (requested by Director Slash).
- The fiscal sustainability study will continue with a focus on creating an action plan.
Meeting Transcript
And received the National Safety Council patch pin and certificate. So congratulations to all of you. I'd like to highlight Mr. Victor Garrett from the top of that list. Mr. Garrett has been working with us for 24 years and has had 16 years of safe driving. So thank you for your service, Mr. Garrett. Our August operations employee of the month has quite a story for us. So we received the following from her nominator. She was nominated Ashley Jones as a coach operator on our fixed route. Ashley was nominated for a very specific event where she demonstrated outstanding quick thinking and commitment to safety. While driving her route one day, she noticed a three-year-old child wandering alone and unsupervised. Recognizing the urgency of the situation, she acted quickly and without hesitation. Ashley safely brought the child onto her bus, ensuring his or her safety, and immediately contacted her dispatch team as well as the Indianapolis Metropolitan Police Department to report the incident. Her proactive measures not only protected the child's well-being, but exemplified the high standards for safety and service that we pride ourselves upon. Ashley's actions highlight the critical role of vigilance, responsibility, and quick response in public service, reinforcing the importance of every individual's contribution to community safety. So congratulations to Ashley on this well-deserved honor, and thank you for your service to our community. I keep saying tonight. This afternoon. The first, a very happy retirement to facility maintenance technician Daryl Carter. After more than four decades of dedicated service, we recognize and celebrate the retirement of Daryl Carter, who officially concluded concludes his remarkable career with Indigo after 40 years, four months and three weeks of service. Daryl began his career in March 4th, 1985. He first served as a general laborer and then transferred to the role of facilities mechanic for the remainder of his career. His work ethic knowledge and commitment to excellence has earned him the respect of his colleagues across the organization. Over the years, he not only helped facility equipment helped keep facility equipment running smoothly, but also happily supported his teammates and the agency. Please join us in congratulating Daryl Carter on a long successful career and wishing him health, happiness, and fulfillment in his retirement. Thank you, Darrell, for your years of service to Indigo. And our other retiree. John began his career on February 20th, 1981, when the organization was still known as Metro, and we were operating at the site where the Indianapolis Zoo stands now. He first served as an HVAC mechanic before transferring to the role of defect mechanic, a position in which he truly made his mark. Known for his craftsmanship, John developed a reputation for doing the job right the first time. It was well understood among his peers that if John worked on a bus, it would not be back in the shop for the same issue. His work ethic and commitment to excellence earned him the admiration and respect of his colleagues across the organization. Over the years, he not only kept buses running smoothly, but also contributed to the culture of professionalism and pride within the maintenance team. Please join us in congratulating John Musgrove on an extraordinary career and wishing him health, happiness, and fulfillment in his retirement. So John, if you would come up front, we have an award for you, and we'd love to get a photo with our directors if you don't mind. All right, and I have one more goodbye tonight. Aaron Vogel, our chief operating officer, joined Indigo on September 30th, 2019. I did not calculate days, minutes, hours, but it's it's been about six years. Um and he joined us soon after we launched the red line. He came to us from the Valley Transit Authority, bringing a rich background in transit operations and benefiting Indigo in ways we probably can't even count. Um of the things in his tenure besides the red line coming in right after the launch of the red line, he helped make sure that was successfully operating. He launched the Purple Line service for us. He registered three apprenticeship programs, started the mentor apprenticeship program, got three of them registered with Department of Labor, something that generates college course credits for participants. He got two labor agreements ratified before expiration. He started up a training academy for our operators. Um and he delivered service reliability at over 99.8%. So he is heading back to California, uh, where he came to us from to be with family. We're gonna miss him a ton.
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