City staff briefed the Transportation and Infrastructure Committee on April 21 about a study that is evaluating operation-and-maintenance (O&M) funding options for the Dallas Streetcar.

Gus Kincarli, Director of Transportation and Public Works, said the study has two aims: short-term measures to reduce the city’s O&M burden for the existing Union Station–Bishop Arts line, and longer-term evaluation of potential extensions, including a Fair Park connection and a southern extension toward the zoo and Southern Gateway as part of the Oak Cliff study. Kincarli said the work also reviews peer-city funding practices and third-party operation models.

The presentation listed potential revenue tools under consideration: naming rights, advertising, parking benefit districts, transportation utility fees, royalties from joint development, public improvement districts (PIDs), property-tax assessments, sales tax, federal FTA formula funds, hotel-motel taxes and other local fees. Kincarli said the city is working with the North Central Texas Council of Governments (NCTCOG) and DART to determine whether federal transit formula funds might be available for the streetcar given its fixed guideway mileage.

Kincarli provided current cost figures: the city’s net general-fund obligation is “approximately about $2,000,000 annually” after fare revenue and partner credits. He said DART has notified the city of a gross O&M figure of $3.3 million for 2026; after anticipated credits (about $734,000) and fare revenue the net hits the general fund at roughly $2 million. City staff said O&M costs have risen and projected a continuation of those pressures.

The study’s timeline calls for finalizing short‑term O&M revenue options by Q4 2025, planning a Fair Park route in Q1 2026, public outreach in summer 2025 and a final report in spring 2026. Committee members urged the study team to include stronger statements of the service’s purpose and benefits and to explore mechanisms that concentrate O&M responsibility on beneficiaries—examples discussed included parking benefit districts, PIDs or assessments for property owners near the alignment.

What’s next: Staff will complete peer-city analysis, pursue outreach this summer and return with proposals on funding sources and third-party O&M options as scheduled.