CC MEETING: March 3, 2026
DATE: February 20, 2026
TO: City Council
FROM: Meredith A. Ladd, City Attorney
Title
Consider Authorizing The City Manager To Enter Into An Interlocal Agreement For General Mobility Funds With Dallas Area Rapid Transit.
Body
BACKGROUND:
The Dallas Area Rapid Transit (“DART”) Board directed the DART President & Chief Executive Officer to establish a six-year General Mobility Program (GMP) for allocation pursuant to Exhibit “A” to be distributed to eligible DART Service Area cities for Public Transportation System or Complementary Transportation Service purposes, as those terms are defined herein, consistent with the Act, hereinafter referred to as “GMP Funds.”
The North Central Texas Council of Governments (NCTCOG) Regional Transportation Council (RTC) has authorized seventy-five million dollars ($75,000,000.00) in funding to supplement the DART allocation amounts for FY 2027 through FY 2031 as shown in Exhibit “A,” of which 0.5% will be allocated in FY 2027, and will increase by 0.5% each year to achieve an allocation equivalent to 10% of DART sales tax in FY 2031.
DART Service Area cities are eligible to receive a portion of the GMP Funds during the six (6) year term of the proposed Interlocal Agreement, subject to the conditions contained in the Agreement.
The Agreement is permitted pursuant to Section 452.055(c) of the Texas Transportation Code (“Act”) and Chapter 791 of the Texas Government Code.
The City of Carrollton is a DART Service Area city that is eligible to receive GMP Funds if it uses such funds to complete projects that will benefit DART’s Public Transportation System, provide Complementary Transportation Services or is otherwise permissible under the Act and complies with the terms and conditions of the Agreement.
The RTC and service area city managers have been meeting for months to work out governance and funding issues related to service area city concerns. Several cities have previously called elections to determine if the applicable city should remain in DART. The Agreement, finalized on February 19 at a meeting with the service area city managers and attorneys, DART, and RTC, was approved by DART representatives and a majority of the cities present at the meeting, subject to each city’s city council approval. Several cities will be required to rescind their election to withdraw from DART as a condition of entering into the Agreement. No city is eligible for the GMP Funds if they hold an election in May to withdraw from DART.
FINANCIAL IMPLICATIONS:
In Fiscal Year (FY) 2026, DART shall distribute undisputed GMP Funds to the City of Carrollton, in accordance with Exhibit “A,” by October 1, 2026. In FY 2027 and in each subsequent fiscal year during the term of this Agreement, DART shall distribute undisputed GMP Funds to the City of Carrollton, in accordance with Exhibit “A,” on October 1 annually.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommend City Council authorize the City Manager to execute an agreement with Dallas Area Rapid Transit for General Mobility Program Funds.