Dallas City Council approved nearly $2.81 million Wednesday to operate and maintain the Dallas Streetcar for fiscal year 2027, following questions about rising expenses, ridership, and the city’s responsibility for funding the service.
The October 28 decision came alongside approval of another $1.1 million for engineering a potential downtown streetcar connection. The spending decisions come as Dallas officials examine long-term transit funding and DART faces separate questions about security staffing on trains and buses.
Streetcar Costs Draw Council Scrutiny
The Dallas Streetcar connects Union Station with the Bishop Arts District in Oak Cliff along approximately 2.45 miles of track. The city approved up to $2,807,875.34 for fiscal year 2027 operations and maintenance, according to agenda item 19.
The funding consists of $2,507,875.34 from the Dallas Streetcar System Fund and $300,000 from DART’s Six-Year General Mobility Program.
During the meeting, Council Member Cara Mendelsohn questioned the operating expense and cited fewer than 500 daily streetcar rides. She estimated a taxpayer subsidy of approximately $17 per ride. Those figures were presented by Mendelsohn and have not been independently verified against current ridership and expense records.
Council Member William Roth also questioned the increase in annual costs. Transportation and Public Works Director Dr. Ghassan “Gus” Khankarli attributed part of the increase to the expiration of developer contributions that previously offset operating expenses, along with inflation, spare parts, and aging equipment. The streetcar began operating in 2015.
City Examines Alternative Funding
Dallas owns the streetcar system, while DART operates it under interlocal agreements.
Council Member Chad West supported continued funding, citing the streetcar’s transportation function and the city’s existing obligations. Council Member Jesse Moreno urged officials to identify operating funding before pursuing future extensions.
The city awarded Gresham Smith a contract in November 2024 to evaluate alternative funding models. The study is expected to be completed in the first quarter of 2027, according to discussion at the October 28 meeting.
Khankarli said the city is seeking additional federal transportation funds to help offset eligible streetcar expenses, subject to restrictions and availability. He said his objective is to stabilize and eventually reduce the city’s annual contribution. Those potential funds should not be treated as a guaranteed dollar-for-dollar reduction in DART operating payments.
Council Also Approves $1.1 Million In Planning
Council separately approved an engineering and planning contract of up to $1,096,786.68 with AECOM Technical Services for a proposed connection between the Dallas Streetcar and the McKinney Avenue Transit Authority trolley system.
The contract includes $982,102 in federal funding and $114,684.68 from the city’s general fund, according to agenda item 20. The project would evaluate an alignment from the planned northern streetcar extension near the Omni Dallas Hotel toward the Uptown trolley network. The action funds planning and engineering, not construction.
The project follows years of debate over extending the streetcar. The Dallas Express previously reported disagreements among council members about streetcar costs and proposed extensions in October 2023.
DART Security Concerns And The Question Of Level IV Officer Coverage
One potential public-safety measure discussed in connection with DART security is placing a Level IV-trained personal protection officer on every train and bus, 24 hours a day, seven days a week. DART has not adopted such a deployment standard, and questions remain about the staffing and funding needed to implement it.
Safety concerns across the DART system have included shootings, fatal stabbings, assaults, threats against passengers, and questions about the availability of security personnel aboard trains and at stations.
In February, a shooting at Fair Park Station and fatal stabbings near Deep Ellum Station renewed scrutiny of transit safety, as previously reported by The Dallas Express.
Although DART’s reported Group A offenses declined 20.2% in early 2026, crimes against society rose 15.8% during the same reporting period, as previously reported by The Dallas Express. A subsequent February report showed declines across all three major crime categories, although violent incidents continued to raise concerns about passenger safety.
More recently, The Dallas Express reported that DART’s proposed $288.3 million fare-gate program does not establish a funded timetable for continuous Level IV officer coverage aboard every train and bus.
Under Texas Department of Public Safety rules, Level IV training is required for personal protection officers, who must also satisfy Level II and Level III training requirements. The designation is different from sworn peace officer status, according to state guidance.
The October 28 council action funded streetcar operations and engineering. It did not establish new onboard security staffing requirements.
Funding Questions Continue Into 2027
The two approvals total $3,904,662.02 in authorized operating and engineering spending, with different funding sources and purposes. They do not constitute a single unrestricted allocation to DART.
Dallas officials expect the forthcoming funding study to outline options for existing streetcar operations. Meanwhile, the approved engineering contract moves preliminary work forward on a potential downtown connection, leaving future construction and long-term operating decisions for later action.
Provided by Dallas Express
