Transit system seeks new revenues

At its Wednesday meeting, the City Council will consider a new fare structure for the Oshkosh Transit System.

The full proposal is here (PDF).

Here are the key sections:

The Oshkosh Transit System Management Plan recommends a series of revenue increases for the next five years. The recommended changes for 2005 are shown below.

REVENUE GENERATORS
Dial-A-Ride (Non-ADA) $3.25 to $4.00
Access to
Jobs $2.00 to $2.50
EAA (Round-Trip) $2.00 to $3.00

The higher fares combined with a 10% increase in advertising rates and a 3% growth in ridership should generate $68,500 in new revenues.

A brief analysis of each fare category is shown below.

Dial-A-Ride (Non-ADA) Fare Increase

This fare increase will impact a minority of users while retaining the $1.00 fare for most passengers. The proposed fare increase will increase the cost for 30% of the users. The remaining 70% of users will not see any increased cost for service. The fare increase will apply to seniors that are able to use the regular routes, but choose to use taxi service for their transportation needs. The fare increase will most likely decrease usage, but some users may be able to qualify for an ADA card that allows them to ride for $1.00 during normal bus hours. A 15% decrease in ridership is projected, but revenue should increase by 19%. This fare change should generate $14,000 in new revenues.

Access to Jobs Fare Increase

This program provides transportation to jobs for low income persons after normal operating hours. The service is provided by the City Cab Company at a cost of $7.00 per trip. The passenger pays $2.00 and federal/state funding provides $4.20 per trip. The $.50 fare increase will bring this program to near self-sufficiency. I don’t believe the fare increase will have a negative impact on ridership. An increase of $4,000 in revenues is projected for this program.

EAA (Round-Trip) Fare Increase

The current fare for EAA is $2.00 for a round trip ride. The EAA fare has not been increased since 1986, and unfortunately the need for additional revenue in 2005 requires a fare increase. A $3.00 round trip fare is proposed for 2005. This fare increase should generate approximately $19,000 in new revenues. The current parking rates at EAA are $5.00 per day, so the bus fares remain an attractive alternative to using an automobile.

SUMMARY

In order to maintain a reasonable local share, the Oshkosh Transit System will need to generatenew revenues over the next several years. The OTS Management Plan outlines potential revenue sources and the fare increases in this report are contained in the management plan. The system has been able to hold the local share at the same level since 2001. The 2005 budget will be a challenge, and hopefully the Common Council will understand the need to increase the local share after years of no growth.