Dallas City Staff Outlines Plans For $90 Million in Excess Sales Tax Revenue From DART

Dallas won’t be awarded $111 million in excess sales tax revenue anticipated from Dallas Area Rapid Transit, but the city could get $90 million and a plan was outlined Wednesday for how to spend it. 

A contentious debate has taken place over the last several months about the money DART promised to distribute to its 13 member cities. 

Some would say that DART reneged on the deal, telling Dallas Transportation and Infrastructure Committee members in February that it already spent some of the funds on “betterment” projects within the city limits. 

DART CEO Nadine Lee also accused city staff of not making good on an agreement to provide feedback on design for the Silver Line project and purposely delaying permits. 

A task force was appointed to negotiate a compromise, and Assistant City Manager Robert Perez issued a 13-page memo to council members last week outlining the agreement.

Based on the discussions, the City of Dallas will get $90 million instead of $111 million and is on the hook for about $5.2 million in betterment costs. Some of the funds will be released immediately, but $30 million will remain in escrow contingent upon performance measures. 

“Aside from the assignment of Silver Line betterment costs, DART, the [North Central Texas Council of Governments], and the [City of Dallas] discussed mitigation of the $43.5 million in delay costs associated with Silver Line permit review and approvals,” Perez said in the memo. “Through the mitigation discussions, DART and City staff recommend that the COD assumes $15.9 million of the delay costs. Reducing the assigned betterments and assumed delay costs from the $111.1 million, the COD would be allocated $90 million in DART excess sales tax revenues.” 

Recommended Uses of Excess Sales Tax Revenue

Perez recommended the $90 million allocated to the City be spent on the following:

• North Central Texas Council of Governments funding partnership ($10 million) — Funding to be used as a NCTCOG revolver fund to leverage $15.4 million in funding from the NCTCOG for the Five-Mile Creek Greenbelt Hike and Bike Trail Project. 
• Reconstruction of 22 traffic signals on major DART bus route corridors ($11.55 million) — Reconstruct 22 traffic signals at intersections along major DART bus route corridors in Equity Priority Areas; improvements will include technology upgrades such as bus queue jumps, fiber installation, etc.

• Sidewalk Master Plan ($10 million) — Finish the initial $30 million of priority projects identified in the Sidewalk Master Plan.
• ADA ramp installation ($50 million) — Provide funding to substantially address the estimated $54 million backlog of missing ADA ramps across the City. 
• Traffic Markings Program ($2 million) — Fund the FY 2024 Traffic Markings Program at an annual program budget of $3.2 million (current annual budget is $1.2 million). 
• Bike lane upgrades ($2.2 million) — Pilot new bike lane safety materials and begin retrofitting existing bike lanes with piloted materials ($2 million); also explore options for additional bike lane cleaning and maintenance ($200,000).
• Parking operations study and pilot projects ($750,000) — Fund a parking study to evaluate COD parking lot redevelopment options, to include identification of strategic locations for future parking garages, develop recommendations to optimize parking operations, and funding for smart parking pilot projects. 
• Student/homeless transit programs ($500,000) — Create a pilot program to support DART’s free transit services for youth (K-12) to get to school and/or work ($250,000); will also continue funding to support homeless transit services ($250,000).
• COD streetcar ($3,000) — Funding for ongoing maintenance and professional services for studies to optimize operations. 

Interlocal Agreement and Memorandum of Understanding

The City Council lost a quorum during Wednesday’s briefing and had to cut short the discussion on DART funds.

Before they wrapped, District 8 Councilmember Tennell Atkins said he was concerned that $30 million anticipated for sidewalks and repairs are being tied up in escrow. The other DART member cities do not have such a hindrance, he said. 

City Manager T.C. Broadnax said he doesn’t have any reservations or concerns about receiving those dollars moving forward.

“It came down to either trying to figure out how we got to a more reasonable number or ending up at a stalemate and not getting any money. I’m comfortable where we are and I’m recommending that we move forward and hold staff accountable as well as DART when it comes to where we are with the timing and the release of those dollars.”