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Voters in Manor, Lago Vista to decide whether to keep or cut ties with CapMetro

Manor's mayor said cutting ties with the transit agency would free up money for vital City services.

MANOR, Texas — Capitol Metro (CapMetro) services are on the ballot in two of Austin's suburbs where leaders are hoping to reclaim sales taxes: Manor and Lago Vista

Manor may have just one bus stop and one ZIP code, but the city's active streets are a sign of growth. Inside City Hall are reminders of just how far the city has come. 

"Since about 2012, we've had about 271% growth," Manor Mayor Dr. Christopher Harvey said.

But Harvey said City resources have yet to keep up. 

"Well, here in Manor, we don't have a library," Harvey said. "We don't have a rec center, [we] don't have a Parks and Recreation Department and we don't have summer programs."

Resources, he said, are needed to help with the city's main issue: juvenile crime. 

"The primary way cities do these things is through sales tax," Harvey said. 

On Manor voters' November ballot is Proposition A, the option to cut the City's decades-long contract with CapMetro, which requires the City to pay a 1% sales tax for services.

For Manor's over 18,000 residents, CapMetro provides one bus route and on-demand pickup services. According to CapMetro, in 2021, the transit agency received $2,096,604.94 in sales tax revenue from Manor.

"It's a very small amount of people that we're paying a lot of sales tax dollars for," Harvey said. 

He said less than 1% of Manor residents uses public transportation.

CapMetro data shows that in September, Manor residents ordered more than 4,700 pickup rides. In August, data shows 995 people took the bus route that runs to and from Manor.

"We can bring that in-house and probably do it under $180,000, for sure," Harvey said. 

But getting out of the contract with CapMetro will be a costly undertaking. According to state law, Manor has to pay a "net financial obligation" of $9.8 million, which usually comes from sales taxes.

Harvey said the City has been saving up to pay that off.

"We have a good amount of fund balance that could help with this, get this out of our way as early as December," Harvey said. 

He said it would at be no cost to residents. 

Another option, he said, is to handle it in court. 

If Manor residents vote no to CapMetro, the city council plans to vote on a new transit contract on Nov. 16.

Manor would also be included in local transit expansion plans as part of CapMetro's Project Connect, as the Green Line light rail would eventually run from Downtown Austin to Manor. But if Manor voters cut ties with CapMetro, a spokesperson told KVUE the transit agency would re-evaluate Green Line stops.

Meanwhile, Lago Vista also has CapMetro services on the November ballot for the same reason as Manor – to use that 1% sales tax for other resources.

Lago Vista's ballot measure is also called Proposition A. However, Lago Vista's financial obligation is a little less than Manor's, at $6.5 million.

Earlier this year, Leander voters faced a similar decision as the one Manor and Lago Vista voters face, but they chose to keep CapMetro services.

CapMetro shared the following statement with KVUE regarding the Manor and Lago Vista propositions:

"CapMetro is aware of the decisions by the Lago Vista and Manor City Councils to place a measure on the November ballot regarding a continuation as small member cities in our service area. CapMetro remains committed to our small member cities, including Lago Vista and Manor, and we are continually working to make all our partnerships better as we recognize how significant our services are throughout our region to connect all communities. This past fiscal year (FY2022), we set aside more than $10 million dollars of our Capital Fund to invest in our small member cities, including $1.5 million for Manor and $700,000 for Lago Vista. Ahead of November’s election in Manor and Lago Vista, CapMetro staff will conduct outreach to help inform city leaders and the communities at-large about our partnerships in both cities, as well as collect feedback to improve our partnerships in the future should the outcome of the elections reflect that desire."

Daranesha Herron on social media: Facebook | Twitter | Instagram

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