Hill Country Transit reports rising ridership, proposes Phase 2 expansion without additional city subsidy

Raymond Suarez, general manager of the Hill Country Transit District, told the Killeen City Council on Oct. 21 that the district’s ridership and customer-satisfaction scores have increased since the revised service launched in September 2024, and recommended a Phase 2 expansion that he said would not require additional city funds for fiscal year 2026.

Suarez said the regional system carried about 140,000 passengers before the relaunch; in the first nine months after the September 2024 start the district logged about 156,000 rides and reported a customer-satisfaction index near 94.4 percent. He said average in-vehicle time is roughly 15.5 minutes and average trip distance about 4.7 miles, and that about 70 percent of riders now use the automated trip‑booking app.

The Phase 2 area Suarez described would add roughly 2.1 square miles on Killeen’s south side (roughly from South Clear Creek Road toward Rockwall Drive and West Ann Schluter Loop). Suarez said the district modeled the change and expects only a small effect on system wait times — an increase from, for example, an 18‑minute to a 20–24‑minute average wait during routine operations — and that the FY26 draft budget assumes the added coverage without an increase to the city’s local contribution.

“Just because you’re small doesn’t mean you can’t be mighty,” Suarez said, characterizing national recognition the district has received. He noted the transit district and Fort Hood received awards for their partnership and that Fort Hood invited a district delegation to an award ceremony in Washington, D.C.

Council members praised the ridership gains and asked questions about the cost of covering the entire city. Suarez told council members that covering most of Killeen with a 30‑minute frequency could require a long‑term investment near $2 million annually, compared with the city’s current local share of about $650,000. He said the district has not asked Killeen for additional funds for three consecutive years and that the Phase 2 expansion is included in the draft FY26 budget the transit board will consider Nov. 5.

Council members also pressed staff about fares and service hours. Suarez confirmed the current local fare is $2, commuter transfers are $4 and that certain riders meet a half‑fare criterion (elderly, disabled, veterans, students). He said higher ridership and farebox revenue improve the district’s ability to match federal grants and to pay operating costs, but cautioned against relying on one‑time capital grants for ongoing operations.

On revenue diversification and partnerships, Suarez described hiring a marketing and communications specialist and said the district is exploring advertising, a transit‑management association with private partners (hospitals, universities, employers) and micro‑partnerships with TNCs (Uber/Lyft) to supplement off‑hours service. He said the district will continue seeking federal and state competitive grants and that potential software and operational efficiencies could improve productivity by an estimated 10–15 percent.

Council members asked staff to consider extended evening and weekend hours for shift workers and to continue discussing Transit Management Association and advertising opportunities. Suarez recommended a follow‑up workshop or series of meetings to review phase performance and possible phase‑3 deployment.

Why this matters: Killeen’s transit relationship with Fort Hood and the projected ridership growth affect traffic congestion, commuting options for military families and local workforce access. The district’s plan frames short‑term service expansion while flagging a larger, multi‑year funding gap if the council seeks city‑wide 30‑minute frequencies.