Plano's DART Resolution, and how it could impact Garland

I waited all night by the railroad tracks, hoping that train would come soon.

An interesting vote happened tonight during a City Council meeting in the City of Plano regarding DART. 

The City Council unanimously passed a resolution supporting capping the sales and use tax revenues the City of Plano contributes to DART at the amount equivalent to 2024 collections until a reduction can occur. 

(The DART Silver Line train courtesy DART)

Andrew Fortune, Director of Government Relations for the City of Plano, said in the pre-meeting that Plano contributes approximately $115 million annually to the DART system and has paid $1.8 billion over the past 40 years since its inception. Fortune said the intent is not to reduce services in Plano, but to “cap the revenue, curb those expenditures on new things, and focus on increasing ridership for what you currently have.” Fortune said that Plano has invested $1.8 billion over the past 40 years since DART’s inception. 

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This is not a new issue for Plano. In 2010, Plano considered leaving the DART system after citizens questioned the value they were receiving from DART given the lost opportunity cost of the one-cent sales tax revenue used to support DART services. 

At the time, sales tax revenues in the 13 member cities were lagging and Plano had concerns about DART’s long-range expansion plans to bring new services to the city.

In 2010 DART spokesman Morgan Lyons said, “We want to keep all of the cities in. We think we are a stronger system with all of those connections. There are a lot of cities that are currently not part of DART that want access to the system.”

A news report at the time said:

Downtown Plano has thrived in the past several years since the arrival of DART rail. The area around the downtown rail station has seen new apartment and retail construction, and older businesses report an increase in customers.

https://www.nbcdfw.com/news/local/dart-to-plano-youll-still-owe-if-you-drop-sales-tax/1866030/

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Since 2010, the 13 member cities of  Addison, Carrollton, Cockrell Hill, Dallas, Farmers Branch, Garland, Glenn Heights, Highland Park, Irving, Richardson, Rowlett, Plano and University Park have not changed, but what has is the expansion of the light rail system. 

The Silver Line is well under construction with the eastern terminus to be in Plano at the Shiloh Road Station, with an additional station to be at the new 12th Street Station that will allow for connections to the Orange and Red Lines. The Silver Line is expected to be complete by 2025.

(Map of the future Silver Line)

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The recent spat appears to be as a result of a lack of financial transparency and accountability from DART. Plano alleges that in 2020, it requested more reporting from DART regarding its finances. In the 2021 and 2023 Texas State Legislative sessions, Plano supported legislation which would require more financial transparency from DART, but those initiatives both failed to pass. In 2024 Fortune stated that DART hired a consultant to work on a “Value of Transit Analysis” that would answer questions regarding levels of service in relation to investment, but Plano has not yet received a report. 

It is true that DART ridership system-wide is still lower than pre-pandemic levels. With shifting work schedules and more work-from-home and hybrid work schedules, DART ridership is down about 30% from 2019 levels. 

Plano’s issue also has to do with the 34% increase in sales tax collections since 2019 even though the ridership number is down 30%. Fortune states, “It does posit the question, why do we continue spending at these levels when we don’t have maximized ridership and usage of the existing services we already provide?”

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Several speakers at the meeting spoke passionately about their fear that transportation services would be reduced significantly in Plano due to the Council’s actions. Interestingly enough, all of the speakers were relatively young Plano residents who depend on DART for their daily transportation needs. Online, the discussion has revolved around safety and cleanliness concerns around DART buses and trains. 

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How would a reduction from the one-cent sales tax contribution occur? Fortune said that the DART Board has the ability to reduce member cities contributions in ¼ cent increments. Once the DART Board votes to reduce member cities payment obligations (a very tall task to ask a quasi-governmental agency voluntarily to reduce its own revenue), the member cities would allow tax payers how to reallocate the ¼ sales and use tax. A ¼ cent refund to Plano would be worth approximately $30 million annually. 

In my opinion, quite interesting timing for Plano to want to get out of DART just as two new rail stations servicing their city are nearing completion. Just last year in an interview with Plano Magazine, Plano Comprehensive Planning Manager Mike Bell was optimistic of the economic development opportunities around the stations saying, “We’re hoping that it will be an economic driver for us both at 12th Street and then with the Collin Creek Mall redevelopment.” 

https://planomagazine.com/how-new-dart-stations-could-affect-our-city/

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So how could this affect Garland? The question has to do with the future viability of DART. It is doubtful that the DART Board would vote voluntarily to reduce member city’s contributions, but could DART opt to reduce its expenditures and provide a refund to member cities as it did with federal funding received as a result of COVID-19? 

Legally, I don’t know if a member city could vote to pull out of DART entirely, but if a thing like that happened, it would leave a large hole in DARTs revenue, which would certainly negatively impact transportation service in Garland. Garland, after the City of Dallas, has the largest ridership of any member cities.

If Plano were to pull out completely, they would still be responsible for any bond debt remaining from the time they left, but from that time forward, a larger share of future bond debt would fall to Garland.

In our recent community survey, citizens ranked mobility quality at 40% in Garland, and it’s importance only after utilities, safety, and the economy at 80%. DART will remain a large part of Garland’s future for the foreseeable future, and I will continue to support smart partnerships with DART to expand transportation access and transit-oriented development within Garland.

However, I can also see a future where a majority of residents in a city do vote to terminate DART service due to the security and homeless issues and perceived minimal utility of a public transportation system to its residents. Plano’s wealthy residents almost certainly do not rely on DART for their transportation needs. 

It will certainly be an issue to watch down the (Silver) line. 

(A recent family trip on the Blue Line to Downtown Rowlett. At least three out of four family members were having fun.)

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Text of the Plano Resolution which passed:

A Resolution of the City of Plano, Texas, supporting capping the sales and use tax revenues for the Dallas Area Rapid Transit Authority; and providing an effective date. 

WHEREAS, the Dallas Area Rapid Transit Authority was created by the Texas Legislature in 1983; and  

WHEREAS, the Dallas Area Rapid Transit Authority provides service to Addison, Carrollton, Cockrell Hill, Dallas, Farmers Branch, Garland, Glenn Heights, Highland Park, Irving, Richardson, Rowlett, Plano, and University Park; and  

WHEREAS, all Dallas Area Rapid Transit Authority member cities contribute one cent of the sales and use tax to the authority, as approved by voters; and 

WHEREAS, the City Council has a fiduciary responsibility to the taxpayers; and 

WHEREAS, the City Council supports mobility and transit in the North Texas Region; and 

WHEREAS, the City Council is concerned that the services provided to taxpayers may not be commensurate with the current contribution provided to the Dallas Area Rapid Transit Authority. 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLANO, TEXAS, THAT: 

Section I.  The City Council now adopts a position of support to reduce the sales and use tax collections of the Dallas Area Rapid Transit Authority to not exceed three-quarters of a cent. The City Council supports capping sales and use tax revenues at the amount equivalent to 2024 collections until a reduction can occur. 

PASSED AND APPROVED on the 24th day of June, 2024. 

______________________________ 

John B. Muns, MAYOR 

ATTEST: 

________________________________ 

Lisa C. Henderson, CITY SECRETARY 

APPROVED AS TO FORM: 

________________________________ 

Paige Mims, CITY ATTORNEY 

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Here’s a cut called “Texas Bound Train” from a Texas Singer-songwriter Cory Morrow that I have seen several times in concert. I love the imagery from his songs and his love for his homestate of Texas. Certainly catch him in concert the next time he is in DFW.

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