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“This agreement guarantees a minimum funding return and creates a stronger framework moving forward,” Plano, Texas, Mayor John Muns said. “While it is not everything we initially proposed, it represents real progress for our community and the region.”<\/p>\n
City of Plano, Texas<\/p>\n
The tide may be turning for Dallas Area Rapid Transit as one of its six member cities threatening to leave the agency pulled a May election on the matter.<\/p>\n
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The Plano City Council on Monday canceled a May 2 election on withdrawing from DART and approved an interlocal agreement with the agency<\/a> that will return 10% of the city’s 1% sales tax contribution over six years to pay for transportation-related projects, according to a statement from the city.<\/p>\n Plano Mayor John Muns said the city achieved the “meaningful change” it sought.\u00a0<\/p>\n “This agreement guarantees a minimum funding return and creates a stronger framework moving forward,” he said in the statement. “While it is not everything we initially proposed, it represents real progress for our community and the region.”<\/p>\n Three other DART members<\/a> have city council agenda items this week to potentially rescind their May withdrawal elections with Farmers Branch and Addison meeting later on Tuesday and Irving on Thursday.<\/p>\n DART uses 1% sales tax contributions from its 13 member cities to provide bus, rail and other transit services in a more than 700-square-mile area. Plano and Irving are its biggest tax contributors after Dallas.\u00a0<\/p>\n The main reason the six cities cited to ditch DART was inequity between their sales tax contributions and transit services they receive. Historically, the cities accounted for 32% of DART’s sales tax revenue, which is expected to total $937.5 million in fiscal 2026. Any city that drops out of DART would still be on the hook for paying off its share of outstanding debt.<\/p>\n Rating analysts have said the cities’ exodus would subject DART to budget and credit pressures<\/a>.\u00a0<\/p>\n The transit agency has been scrambling to address member concerns<\/a>, including securing $75 million over five years from north central Texas’ Regional Transportation Council earlier this month and announcing a moratorium<\/a> on new long-term debt issuance in January.<\/p>\n DART has said it plans to issue about $2.5 billion of bonds over the next six years primarily for light-rail vehicle and bus replacement, system modernization and remaining project costs from the Silver Line commuter rail service that launched in October.<\/p>\n