Long-term development planning of the Charlotte Area Transit System (CATS) as a regional system is based on the July 1998 "2025 Integrated Transit/Land-Use Plan for Charlotte-Mecklenburg", created by the City and County, with significant participation by the six suburban Towns of Davidson, Huntersville, Cornelius, Pineville, Matthews, and Mint Hill. In November 1998, the citizens of Mecklenburg County approved the levy of a one-half cent sales tax to be used to finance public transportation systems. A Transit Governance Interlocal Agreement was negotiated and then signed in February 1999 between the County, the City and the six Towns. The Interlocal Agreement defines the relationships and mechanisms which guide the planning, financing and implementation of the 2025 Transit/Land-Use Plan and updates to that plan.
The 2025 Plan and the Interlocal Agreement called for the involved local governments to share responsibility and accountability for regional transit services under five guiding principles:
- Coordinated transit operations on a countywide basis;
- Elected bodies to retain the responsibility of approving long-range transit planning and implementation;
- Public involvement;
- Representation of Town interests; and
- Flexibility and expandability to allow for integration of areas outside the County.