Updated Dec. 31 at 4:20 p.m. to include the city of Kyle's responses.

The only public bus service offered in the city of Kyle will cease operation Dec. 31.

The Capital Area Rural Transportation System, or CARTS, offers demand-response bus service to bus users on the outlying areas of the Austin urban core. Demand-response service involves public transportation users who request a trip to a destination in the morning and are picked up in the afternoon.

But the city began paying $54,000 a year for the service after the 2010 U.S. Census designated it an urbanized area, thereby making it ineligible for grant funds through the federal nonurbanized formula assistance program for public transportation. The $54,000 Kyle pays is matched by the Federal Transit Administration.

Last year staff reported to Kyle City Council that fewer than 20 people use the CARTS service in a given month. The city of Kyle stated in an email Dec. 31 that it had about five regular users of the service.

"We understand people need transportation help. But at what point does it become the city’s responsibility to provide that service, particularly when the demand is low and the cost is relatively high?” Kyle Chief of Staff Jerry Hendrix said. “City staff will revisit the issue and follow any Kyle City Council direction on the issue.”

In August, Kyle City Council decided to fund CARTS only through December so as to provide time for city staff to look into alternative services for those who depend on public transportation. The fiscal year 2015-16 budget included three months of funding for the program totaling $11,879 in municipal funds. City Spokesperson Kim Hillsenbeck said CARTS' annual budget was $120,000 to operate in the city.

As an alternative to demand-response bus service Kyle recently entered a franchise agreement with Buda Taxi to operate in the city and is considering a similar request from Yellow Cab, Hendrix said.

Capital Metro is wrapping up a six-month process with the city of Buda to develop a mass transportation plan for the city. Buda City Council could take action in early 2016 to adopt the plan.

When asked if the city had plans to have Capital Metro perform a transit development plan for the city of Kyle, Hendrix said there is not enough demand.

Meaux has said opportunities exist for splitting the cost of offering bus services if both Kyle and Buda decided to contract with Capital Metro.