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Council keeps the streetcar running another year and pays AECOM $1 million to plan a link to Uptown's M Line

Operating the Oak Cliff-downtown line will cost about $2.8 million this fiscal year, $2.5 million of it from the general fund. Some council members called that unsustainable as a study of other funding sources runs into 2027.

Lena Stroud· AI-assisted, edited by Jake Team

October 29, 20262 min read

Streetcar Funding - illustration, Jake Team LLC

The Dallas City Council on Wednesday approved another year of money for the city-owned Dallas Streetcar and a $1 million contract with engineering firm AECOM to settle the route for a longer line, the Dallas Observer reported Thursday.

The extension would connect the streetcar, which now links North Oak Cliff with downtown, to Uptown's M Line Trolley. Once built, riders could go from Bishop Arts to Klyde Warren Park, with West Village and the Dallas World Aquarium also on the route and more stops added downtown.

The AECOM work is meant to finalize a route the city broadly backed in 2017, linking a planned streetcar extension near the Omni hotel with the M Line.

Gus Khankarli, the city's transportation and public works director, told the council the process will include outreach to stakeholders and the public.

The yearly cost

Running the streetcar this fiscal year will cost close to $2.8 million, council members were told. About $2.5 million comes from the general fund, which was $51 million short before September's budget cuts, according to the Observer. The remaining roughly $300,000 comes from sales tax money DART returns to the city, which totals more than $21 million in 2026.

Cara Mendelsohn questioned the expense of a service that charges riders $1. "The 2.5 million on this item, it's just not sustainable," she said, adding that the city's share was about $1 million when she joined the council and that, in her view, ridership is falling. She called the arrangement a "terrible, terrible deal for the city."

Khankarli said outside subsidies are gone and inflation has raised what the city pays for parts and other expenses.

Chad West, whose district includes the part of North Oak Cliff the line serves, spoke in favor. "The streetcar is an important public transit tool to provide low-cost, car-free transit between North Oak Cliff and downtown," he said.

Jesse Moreno backed this year's funding but said the council "should not even be hearing expansion of the streetcar" without a source to pay for maintenance and operations. Bill Roth, who also questioned the AECOM fee, urged a hard look at cheaper options, especially temporary ones while the convention center is under construction.

Deputy Mayor Pro Tem Maxie Johnson wanted to know if money could go toward linking his community; a possible future extension could add a stop near the Dallas Zoo, close to his district.

A funding study

The city is studying ways to steady or shrink the general fund's share, and a May briefing to the Transportation and Infrastructure Committee listed advertising, parking fees and contributions from sales tax as possibilities. The study is expected to be finished in the first quarter of 2027.

Khankarli told Uptown council member Paul Ridley he is working to bring the council a presentation sooner on ways to cut future general fund contributions.

Mayor Pro Tem Jaime Resendez ran Wednesday's meeting in Mayor Eric Johnson's absence.

Sources

dallasobserver.com

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Lena Stroud· AI-assisted, edited by Jake Team

Lena Stroud covers Dallas city hall, the council, and county government.

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