AGENDA DATE: 9/2/2026
TITLE:
Title
MicroCAT Program Update and Fee Discussion
BODY
SUBJECT/PROPOSAL/REQUEST: Presentation of MicroCAT program and recommended fee structure for FY27, for Board of Supervisors discussion and approval.
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Wall, Sumner, Herrick, Ruege, McDermott, Swartzendruber, Davidson
PRESENTER (S): Ryan Davidson
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The Albemarle County Transit Expansion Plan, completed in early 2022, was a planning exercise funded through a Department of Rail and Public Transit (DRPT) Grant and managed by the Thomas Jefferson Planning District (TJPDC) to evaluate opportunities to expand and improve transit throughout much of the Albemarle County Urban Development Areas. The result of that study was a recommendation to implement a micro-transit service to serve the Pantops and Places 29 - North Development Areas through a pilot program. Micro-transit is a relatively new transit mode being implemented across the country. The service is an on-demand, technology-enabled solution that offers real-time trip requests and dynamically routed vehicles. It is primarily designed to provide a “first-mile/last-mile” transit solution that can take riders to either close-by destinations or transport the rider to and from a transit stop along fixed-bus routes where the bus will then take the rider to a farther away destination.
In 2023 Charlottesville Area Transit (CAT) applied for and received a $1.94 million demonstration grant to implement micro-transit in the Pantops and Places 29 - North Development Areas. The County committed to a local match for this grant of $388,000. The service began operating in late October 2023 and in July of 2025 the service crossed the 100,000-rider mark.
As a condition of the demonstration grant, the micro-transit service was to remain fare free for the duration of the grant. The final year of the grant was FY 26, allowing the County the option to begin charging fees for this service beginning in FY 27. As part of the FY 2027 Budget Development process, staff included a recommendation to begin charging fares for the MicroCAT service. The Board of Supervisors approved the FY 27 budget, including the MicroCAT fees revenue, but as part of the discussions at the March 11, 2026 budget work session, staff were instructed to return to the Board of Supervisors for feedback and approval prior to fee implementation.
STRATEGIC PLAN: Infrastructure & Placemaking - Invest in infrastructure and amenities that create connection, opportunity, and well-being.
DISCUSSION: The presentation is focused on providing the Board:
1) An update on the service including the operational aspects of the service including ridership and performance data; and
2) A recommended fee structure for MicroCAT for Board discussion and approval.
The recommended fare structure, to begin mid-year FY 27, was designed to be a simple fare that will increase revenue with some potential to improve service efficiency.
The initial fare is proposed to begin in January 2027 and is recommended to be structured as follows:
- Single Passengers $2.00 per ride
- Additional Passengers $1.00 per additional passenger on same ride
- Passenger Concessions $1.00 per ride
The proposed passenger concessions would be for 1) Riders 65 years of age or older; 2) Riders with disabilities; and 3) Riders with income below 60% AMI.
When benchmarking against other on-demand micotransit services in the U.S. a $2.00 fare is middle of the pack and consistent with similar services. In addition, it is anticipated that this structure will promote greater efficiency in the system by incentivizing more group rides as opposed to one-off single trips.
The implementation of these fees is consistent with the County’s adopted financial management policies of: “To the extent possible, the County shall attempt to decrease its dependency on real estate taxes to finance the County’s operating budget” and “The County will, where possible, institute user fees and charges for specialized County programs and services based on benefits, and/or privileges granted by the County or based on the cost of a particular service. Rates will be established to recover operational as well as capital or debt service costs and considering the equitable access to services with a goal to review user fee charges at least every three years.”
The intent of these fees is not to be source of revenue to fully offset the costs, but rather a source to help cover some of the costs, while incentivizing users to utilize this service to supplement fixed route transit, instead of using it as a replacement for the fixed route service, as fixed route transit is still the most efficient and cost-effective type of public transportation. The fixed routes service provided by Charlottesville Area Transit is proposed to remain fare free for FY 27.
BUDGET IMPACT: The FY 27 Adopted budget already included the initiation of MicroCAT fees and the estimated revenue. If the Board does not approve the implementation of MicroCAT fees or reduces the amount charged, a reduction of up to $80,000 in the Other Charges for Services area can be expected for FY 27.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached resolution (Attachment A) to set the MicroCAT fee structure.
ATTACHMENTS:
A - Resolution to Set MicroCAT Fee Schedule