Title
Transit Service Funding Update
Summary
COUNCIL GOAL: Goal 5: Enhance the Quality of Life in McKinney
MEETING DATE: May 5, 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:
* Funding update and discussion regarding the transit program 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).
* 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.
* Changes to CCT are necessary to continue providing transit services to these populations. Possible modifications include the following:
o Increase Revenues:
* One time funding opportunities with Texas Veteran's Commission Grant and Texas Health Resources Grant
* Seek partnerships with dialysis centers, major employers, and economic development entities.
* 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:
* Limit trip purpose
* Cap on trip distance
* Cap on trip frequency
* Limit eligibility group
* Reduce service hours
* Restrict on-demand service
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, ...
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