Title
Consider/Discuss Transit Program Direction
Summary
COUNCIL GOAL: Goal 5: Enhance the Quality of Life in McKinney
MEETING DATE: July 7, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Jasmine Tucker, Transit Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
• Receive and File presentation.
ITEM SUMMARY:
• Without changing current levels of service, CARES funding will be exhausted in 4 years, leaving a funding gap of approximately $500,000.
• Per the May 5, 2026, Board Direction to explore additional funding sources and to maintain the current level of service there are three potential scenarios to consider:
o Scenario 1: Discontinue the program once the CARES funding has been exhausted in 4 years.
o Scenario 2: Stretch out the CARES funding to 8 years by reducing reliance on the CARES funding and exploring additional revenue options or reducing service.
o Scenario 3: Continue the program once the CARES funding has been exhausted by making up the funding gap through membership allocations.
BACKGROUND INFORMATION:
• 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).
• 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; which accounts for approximately $900,000 of the annual operating budget. At the current rate of expenditure, the CARES funding will be fully expended by 2030.
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
BOARD OR COMMISSION RECOMMENDATION:
• On May 5, 2026, the MUTD Board received a presentation on the remaining CARES act funding and conducted a discussion on potential service changes with the Board directing staff to explore other funding opportunities instead of reducing the current level of service.