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Council approves routine FTA/TxDOT grant application as members press staff on $1.3M transit funding gap

Beaumont City Council · July 22, 2026
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Summary

Council approved a resolution authorizing staff to submit FTA and TxDOT operating assistance grant applications for Beaumont Zip transit. In the public hearing and Q&A, staff presented ridership and funding breakdowns while several council members raised concern about a $1.3 million transfer and long-term transit budget pressures.

Beaumont City Council voted to authorize staff to submit required Federal Transit Administration (FTA) and Texas Department of Transportation (TxDOT) grant applications that help fund Beaumont Zip transit operations, while a broader discussion highlighted persistent budget pressures in the transit fund.

Staff provided an overview of system routes, ridership and funding: FTA accounted for roughly half of transit funding, TxDOT about 12%, fares about 3% and the remainder from the city general fund. Staff reported a fixed-route trip count of 289,702 in 2025 and an illustrative cost per fixed-route trip of $17.20.

General manager Claudia San Miguel answered operational questions about route viability, service frequency and options for efficiency: “It’s a dollar 50 for regular passenger,” she said when asked about fares. Council members pressed for clarity on whether frequency reductions could materially close a budget gap. Councilman Crenshaw noted the program has spent about $3.2 million from the city this fiscal year compared with a lower budgeted transfer: “So in 2025 we got... and what I'm trying to get to is we've already spent 3.2,” he said.

Staff and finance explained part of the year-over-year variance is timing of grants and a one-time shift in grant payments; they also pointed to a 5% wage increase and other fixed costs as contributors to higher expenditures. The city manager and transit staff said the grant application being considered was the routine annual application and not a source of new one‑time funding, though staff agreed to provide a more detailed breakdown and to schedule transit-specific budget review at the August 4 budget workshop.

Council approved the resolution to submit FY2026 FTA (5307/5339) and state urban grants and to request TxDOT transportation development credits to reduce the local match, as recommended by administration.