The city of San Marcos has contracted with the Capital Area Rural Transportation System, or CARTS, to provide public transit services since 2013. The city will pay more than $100,000 in fiscal year 2026-27 for the service due to rising operating costs.
The gist: The City Council approved a new interlocal agreement with CARTS to continue offering the transit service for residents and visitors in the upcoming fiscal year during a Sept. 1 meeting.
With the new fiscal year agreement, the per-hour cost for services will increase from $90 per service hour to $94.05 per service hour, or 4.5%.
Increases in maintenance costs of the aging bus fleet, recent unpredictability of changes in fuel prices and rises in personnel costs have contributed to the rate increase, according to agenda documents.
The breakdown: The total cost of the FY 2026-27 agreement is $2,486,747, with the city paying $792,101 from its general fund. The FY 2025-26 cost was $2,382,246, with the city paying $621,414 from its general fund, $170,687 less than the new agreement.