Huntsville Transit Expansion Remains on Track for October Launch

The transit expansion could result in a $368,000 increase to the tax levy

Huntsville Council received an update on the Huntsville Transit Expansion and Optimization project during the July 27, 2026, meeting.

Staff confirmed that the expanded transit service remains on track to launch Oct. 1, 2026.

The report outlines refinements made since Council approved Phase 1 of the project in 2025, including route testing, new service hours, transit branding, and the arrival of two new transit buses funded largely through a federal grant.

Council also authorized the Director of Operations to execute an updated Transit Service Agreement and make future transit stop and schedule adjustments within Council-approved service levels.

Staff reported that additional route testing found the original 60-minute route cycle was not achievable under real-world operating conditions because of additional stops requested through rider and operator feedback. The revised route cycle is now approximately 92 minutes, with stop locations adjusted to improve accessibility, safety, route efficiency, and long-term service reliability.

The expansion will also increase service hours beginning Oct. 1. Weekday regular transit will operate from 7 a.m. to 7 p.m., while Saturday regular transit will run from 7 a.m. to 5:30 p.m. Saturday on-demand transit will also expand significantly to operate from 7 a.m. to 5:30 p.m.

Staff recommended delaying implementation of an automated fare collection system, originally included in Phase 1, while they gather ridership data and consult with transit users following the expansion. They indicated that introducing cashless fare payment alongside several other service changes could create unnecessary challenges.

The automated fare collection system is estimated to cost approximately $48,000, plus annual software costs of about $11,000.

The report adds that the Town will also proceed with installing an automated announcement system on buses to improve accessibility compliance.

Operational costs for the expansion have been refined. The estimated 2026 net levy impact has decreased from approximately $148,500 to about $82,600, while the preliminary estimate for the 2027 net levy impact has been updated to approximately $368,000, subject to future grant allocations and ridership results.

Councillor, Cory Clarke, expressed concerns about the $368,000. He said, “This is a big number that will be a factor in 2027, and I hope that number will not continue to jump higher as this project continues to finalize and roll out.”

Director of Corporate and Community Strategy, Reva Frame, indicated that a transit grant is available that is based on ridership, “so, if our ridership goes up for our transit system, you would expect that our grant would go up,” however, they may not see an increase if it doesn’t.

She added, “Our financial analysis does include a relatively modest increase in the grant,” and expressed hope that “ridership increases proportionately.”