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Council hears microtransit update as Measure E revenues create funding choice for the program

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Summary

Town staff briefed council on microtransit operations, ridership trends and funding options ahead of budget discussions; staff said Measure E half‑cent sales tax revenue provides a new ongoing funding source but council must weigh tradeoffs with housing and emergency preparedness priorities.

Council received an update on the town’s microtransit pilot and budget implications ahead of upcoming April budget hearings. Transportation staff presented ridership, shared-ride percentages and year-to-date costs, and described a “sweet spot” where higher shared-ride percentages reduce cost per passenger but may increase wait times.

Staff reported that average daily ridership has dipped in winter months — a trend echoed across regional partners — but that year-end ridership was expected to approximate the previous year’s totals. The microtransit service operates through a private contractor under a local procurement; staff noted two vehicle fleets and nine peak‑time vehicles, and that a small set of recent electric vehicles (EVs) were in hand for limited piloting. Staff said EV rollout for the full microtransit contract is uncertain because of insurance and procurement complexities.

A central point of the presentation was financing. Staff explained that Measure E, a half‑cent sales-tax increment passed by Truckee voters on April 1, created a new ongoing general‑purpose revenue source. While legally available for general government use, communications around Measure E created public expectations that some revenue would support microtransit. Town staff noted the tradeoff: each dollar dedicated to microtransit reduces the pool available for other priorities such as housing and wildfire/emergency preparedness.

Councilmembers asked for time-of-day ridership data, clarification about hospital and other partner contributions (staff said hospital interest was being discussed but VTT had not committed new funding), and options for service modifications (zone adjustments, downtown cores, potential demand-based pricing or fares). Staff said a budget decision will be required at the April 22 meeting and that the microtransit update was provided so council could weigh the scope of funding relative to competing Measure E priorities.

No council action was taken; staff will return during the April budget conversations with time-of-day ridership and funding scenarios for council consideration.