The TriMet board of directors on Wednesday adopted a $510.5 million budget for the 2016 fiscal year that promises to continue expanding and restoring services.

At the same time, the only fare increase pass by the board this year targets the agency's most financially vulnerable riders. Meanwhile, transit managers and other non-union employees will receive pay raises of up to 3 percent.

Here are five things to know about the budget for the fiscal year starting July 1:

1. A fare increase for honored citizens. "For the fourth year in a row, adult fares will not be increased," TriMet announced in its official statement on the final budget.

True. The $2.50 adult single-ride fare won't go up.

However, starting Sept. 1, TriMet will increase honored citizen fares by 25 percent to $1.25, with monthly passes climbing $2 to $28. Honored citizen tickets are purchased by riders older than 65, people on Medicare and people with mental or physical disabilities.

Agency officials Federal Transit Administration guidelines and TriMet board's "policy target" sets honored citizen fares at half the regular adult fare.

Where is the additional money going?

TriMet's statement on the fare hike is vague and a little confusing: "The revenue will help provide additional service to service riders who are seniors and/or who have a disability."

When The Oregonian/OregonLive asked for clarification, agency spokeswoman Mary Fetsch said in email, "Through our Service Enhancement Plans that we are continuing to develop, we are identifying additional service needs for residential facilities where seniors and/or people with disabilities live."

2. The return of frequent MAX service on weekends. MAX service hours will increase 15 percent. Much of the improvement will come from $8.5 million for the new Orange Line. About $1.1 million will fund the restoration of weekend MAX Frequent Service.

TriMet is also increasing its share of Portland Streetcar funding. When the city's streetcar loop is completed with the opening of the Tilikum Crossing this September, TriMet will contribute an additional $3 million for a total of $7.3 million. TriMet funds about 60 percent of streetcar operations.

"This budget will deliver a lot to our riders and the region as we continue our investment in expanding service and improving system reliability," said TriMet General Manager Neil McFarlane. "We'll be restoring MAX Frequent Service on weekends, adding buses to busy lines and opening the MAX Orange Line along with more bus connections in Portland and Clackamas County."

As part of its new budget, TriMet will spend some $5 million on putting more buses on the street and decreasing wait times. The goal is to fully restore the frequent service bus network that was decimated during the Great Recession. That will include adding more buses on Sundays, TriMet said.

3. Money to reduce MAX meltdowns.

After deferring millions of dollars in rail maintenance and rebuilding during the Great Recession, TriMet is also in the process of spending $9.5 million on replacing 21 deteriorating rail switches, many of which have malfunctioned and caused repeated service meltdowns in recent years, according to maintenance logs and other records obtained through a public records request by The Oregonian.

Nearly $6 million will be dedicated to track, signal and switch maintenance projects.

4. Raises for non-union employees. In 2013, an investigation by The Oregonian found that General Manager Neil McFarlane, with the behind-closed-doors blessing of the board of directors, quietly dipped into a rainy day fund in late 2012 to pay for $910,000 in raises for top managers and other non-union employees. He handed out the raises even as he supported cutting service for the fifth time in four years and raising fares.

After the revelation, McFarlane, who received a 3.4 percent raise and two weeks added to his vacation bank last fall, promised to be more up front with future plans to boost pay.

Promise kept. TriMet said the budget will include the third pay increase in six years for non-union employees. Workers in that category will see a wage increase of up to 3 percent based on performance and overall compensation.

Union employees will receive a 3 percent wage increase that was negotiated in the latest contract.

5. Funding for 77 new buses. By the summer of 2016, TriMet should have a total of 326 new buses (costing $413,000 each) on the road, allowing it to meet the industry standard of bus fleets averaging eight years of age.

It should also be mentioned that more than $50.7 million in the budget will help pay a mammoth bill for promised retirement benefits that's coming due.

The agency has about $950 million in unfunded liabilities for the health benefits of current and future retirees. TriMet also hopes to pay for about $274 million in pension liabilities over the next 13 years.

TriMet officials expect the budget to help pay down the pension debt but the not the health-care liabilities, which they expect to decrease under the new union contract.

-- Joseph Rose

503-221-8029