City staff told council on Nov. 3 they are preparing for a possible series of Dallas Area Rapid Transit (DART) member city withdrawal decisions that could bring May 2026 referendum votes in several neighboring communities.

Background and process: A City Manager working group convened by the North Texas Commission and NCTCOG has explored governance and funding changes. Staff described a possible governance model floated in those discussions with a 20‑seat board and a votes allocation intended to prevent any single city from holding a majority.

Withdrawal mechanics and financial exposure: Staff outlined the statutory withdrawal steps: (1) a city council order or a petition of registered voters begins the process; (2) the city sets an election date and notifies DART and the comptroller; (3) if a majority votes to end DART in that city, local service ceases the day after canvass, but the city's sales‑tax revenue continues to be collected and paid to DART until the city's "total financial obligation" (TFO) is certified and paid. That payment requirement — which DART calculates and must certify — combines a city’s share of system‑wide debt and obligations, city‑specific DART contracts, and any cost of facilities the city must assume, offset by assets held for the city.

Preliminary calculations and uncertainty: Staff reported DART has communicated a system‑level obligation figure in the neighborhood of $9–10 billion; using DART’s method Garland's share would be a multi‑year liability. Based on Garland’s FY2024 sales‑tax receipts, staff estimated Garland could need 15–19 years of the city’s DART sales‑tax receipts to retire the obligation as DART computed it. Staff cautioned those numbers are DART calculations and could be disputed or litigated.

Council direction and next steps: Councilmembers asked staff to prepare more detailed replacement scenarios — ranging from a modest on‑demand mobility service to a larger set of transit options — including cost estimates and transition plans. Several councilmembers requested staff explore whether a consultant or focused staff work group should model replacement mobility options and communications to residents ahead of any potential election. The City Manager’s office said the mayor and city managers of the region will reconvene on Nov. 13, and DART’s board chair has asked member cities to refrain from calling withdrawals for 30 days while talks continue.

Why it matters: A coordinated withdrawal by multiple member cities would reshape regional transit funding, potentially reduce the size of DART and reallocate sales‑tax revenue streams. Council members said Garland must be prepared both to press for reforms inside DART and to model alternatives if member cities proceed toward withdrawal votes.