The Bend Metropolitan Planning Organization Policy Board voted Oct. 17 to allocate accrued interest of about $135,000: $133,000 into the MPO reserve account and $2,000 toward operating costs that federal funds cannot cover.

Tyler Deakey, Bend MPO manager, summarized the background: the MPO has held several revenue sources — including federal COVID funds and state highway funds — in its accounts while awaiting project awards; those balances accrued interest. Deakey said the interest income currently totals about $135,000 and is unallocated. He and finance staff recommended placing the bulk into reserves because federal funding uncertainty makes retaining a contingency reserve prudent, while setting aside a small amount for ineligible program costs (for example, meeting lunches) is appropriate.

Tory Carr, City of Bend finance department, explained that recognizing the interest in the budget does not immediately move funds out of accounts; the board can direct a future budget action to move reserve funds to program expenses if needed. Carr said recognition would allow future budget adjustments and that a modest portion — the $2,000 proposed — would cover program expenditures ineligible under federal funding rules.

Councilor Mike Riley moved the allocation; Commissioner Phil Chang seconded. The motion passed unanimously.

Board members described reserves as a tool to protect the MPO from federal funding uncertainty and to preserve flexibility for future needs.