Title
Transit Program Funding Update
Summary
COUNCIL GOAL: Goal 5: Enhance the Quality of Life in McKinney
MEETING DATE: January 20, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Jasmine Tucker, Transit Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
• Consider and discuss potential changes to the program.
ITEM SUMMARY:
• Funding update and discussion regarding the transit program funding and potential service changes.
• The Collin County Transit Program (CCT) provides subsidized transit to eligible riders (low income, senior, disabled) for the McKinney Urban Transit District (MUTD) member cities (McKinney, Melissa, Princeton, Prosper, Celina, and Lowry Crossing).
• Revenues for CCT include state and federal grant funding, member cities contributions, and farebox revenues.
• Expenditures include the DART Interlocal Agreement (ILA) and administrative costs.
• Due to the subsidies, farebox revenues are insufficient to cover the cost of operating. Over the last five years, the MUTD has been relying on CARES funding to make up the difference. At the current rate of expenditure, the CARES funding will be fully expended by 2030.
• Changes to CCT are necessary to continue providing transit services to these populations. Possible modifications include the following:
o Increase Revenues:
§ Seek additional grant opportunities
§ Seek partnerships with employers, schools, medical facilities, etc.
§ Increase fares/dynamic pricing
§ Increase member cities contributions
§ Institute an administrative fee for member cities
§ Evenly distribute fixed costs among member cities
o Reduce Expenditures:
§ Institute program caps
• Trip distance
• Number of riders
• Number of trips
§ Reduce service hours
§ Limit trip purpose
BACKGROUND INFORMATION:
• On November 15, 2021, the City Council, on behalf of the MUTD, entered into an ILA with DART to provide microtransit services in the McKinney Urbanized Area (known as Collin County Transit).
• In 2024, the MUTD initiated member cities contributions and in 2025 the contributions were adjusted to reflect each city’s total trip distance.
• On March 4, 2025, the City Council adopted a Resolution approving the first amendment to exercise the first option year for the ILA.
• On October 6, 2025, the City Council adopted a Resolution approving the second and final option year of the ILA.
FINANCIAL SUMMARY:
• In 2020, the City received $8.8 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support public transportation; including planning, capital, and operating expenses. There is no local match requirement for CARES funding.
o Approximately $5.2 million remaining at the beginning of September 2025; with a projected $908,600 to be drawn down for Fiscal Year 2026.
• In addition, the City receives funding from the Federal Transit Authority and Texas Department of Transportation.
o Federal funds include a 50/50 local match requirement
o State funds and member cities contributions are used as operating local match
• The programs fares are calculated based on distance traveled:
o Trips up to 7 miles are $5 per person per trip
o Trips greater than 7 miles will cost an additional $0.75 per mile
o Trips are capped at $17 per person per trip for trips greater than 23 miles