Title
Mecklenburg Transportation System (MTS) FY27 Fare Increase Notice of Intent and Opportunity for Comment
Action
ACTION:
Receive information on a proposal to increase one-way fares from $1.50 to $2.25 effective July 1, 2026.
Staff Contact: Letecia Loadholt, Interim Director, Child, Family and Adult Services Department
Presentation: No
BACKGROUND/JUSTIFICATION:
Mecklenburg Transportation System (MTS), part of the CFAS Services for Adults Division, is proposing to increase one-way passenger fares from $1.50 to $2.25 effective July 1, 2026.
The proposed strategy ensures long-term sustainability for Non-Emergency Medical Transportation (NEMT) transportation for essential services such as medical appointments, adult day care, grocery sites and employment and education needs. Additionally, this fare increase is consistent with current industry standards for paratransit services throughout North Carolina.
Prior to the COVID-19 pandemic, MTS charged $1.50 per one-way trip. During the pandemic, fares were suspended and COVID funding supported expanded trip types. As funding declined, MTS presented a plan to the Board in April 2024 and reduced trip types for long-term sustainability and service quality. At that time, it was noted that future fare increases would be proposed, as the Mecklenburg County rate was lower than other jurisdictions.
MTS reinstated the $1.50 fare in July 2024. The current proposal is for a $0.75 increase, effective July 1, raising the fare to $2.25 per one-way trip. This fare is less than Raleigh ($2.50), higher than Wake ($2.00), and well-below CATS ($4.00). The Federal Transportation Administration requires a 30-day public notice and comment period and an equity analysis, prior to final Board approval.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
Projected revenue increase from the fare adjustment is $60,666 in FY27, for total revenue projection of approximately $181,998.
• Vendors = $161,583.75 (increase of $53,861.25)
• MTS Direct = $20,414.25 (increase of $6,804.75)