Title
Consider/Discuss/Act on an Amendment to the McKinney Urban Transit District (MUTD) Cost-Sharing Policy
Summary
COUNCIL GOAL: Goal 5: Enhance the Quality of Life in McKinney
MEETING DATE: October 6, 2025
DEPARTMENT: Housing and Community Development
CONTACT: Jasmine Stillwell, Transit Services Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
• Adopt an Amendment to the MUTD Cost-Sharing Policy.
ITEM SUMMARY:
• This item is to consider an amendment to the MUTD Cost-Sharing Policy for participating jurisdictions.
• In February 2025, the Collin County Transit Program moved to a dynamic fare for riders based on trip distance, which more accurately reflects the cost of providing service to riders.
• Similarly, Staff now recommends amending the MUTD Cost-Sharing Policy to align with this distance-based formula in determining member city cost allocations for the upcoming fiscal year.
• Based on the new distance-based formula, the updated cost allocation for member cities would be as follows:
|
City |
Total Trip Distance (in miles) |
Percentage of Total Distance Traveled |
FY25-26 Allocation* |
|
Celina |
37,882 |
7.1% |
$25,479 |
|
Lowry Crossing |
2,505 |
0.5% |
$1,685 |
|
McKinney |
383,830 |
72.1% |
$258,155 |
|
Melissa |
31,329 |
5.9% |
$21,071 |
|
Princeton |
54,594 |
10.3% |
$36,719 |
|
Prosper |
22,020 |
4.1% |
$14,810 |
|
Total |
532,161 |
100% |
$358,919 |
|
Source: FY 2024 Spare Activity Report NOTE: minimum contribution of $1,000 for participating members |
*allocation = total cost of service x percentage of total distance
• Under the existing, population-based formula, each member city contributed the following for FY24-25:
|
City |
Population |
Percentage |
FY 24-25 Allocation* |
|
Celina |
16,739 |
6% |
$ 18,956 |
|
Lowry Crossing |
1,689 |
1% |
$ 1,913 |
|
McKinney |
195,308 |
71% |
$ 221,172 |
|
Melissa |
13,901 |
5% |
$ 15,742 |
|
Princeton |
17,027 |
6% |
$ 19,282 |
|
Prosper |
30,174 |
11% |
$ 34,170 |
|
Total |
274,838 |
100% |
$ 311,234 |
|
Source: 2020 Decennial Census |
*allocation = cost of service x % of total population served x 15%
BACKGROUND INFORMATION:
• On April 5, 2017, the MUTD adopted a cost-sharing policy for the provision of transit services to participating members of the MUTD.
• To ensure the cost of providing services across the MUTD is shared amongst participating jurisdictions in a fair and consistent manner, membership allocations will be calculated based on utilization of services. As ridership and costs continue to increase, the cost-sharing policy should be reviewed to ensure it continues to use the most equitable methodology.
FINANCIAL SUMMARY:
• The adopted Fiscal Year 2025-2026 budget for the City of McKinney includes $288,297 from the General Fund and anticipates the receipt of $99,764 from the other member cities.