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Valley
Transit to hold Public Hearing to address anticipated $200,000
budget shortfall.
April
14, 2005
Valley
Transit is proactively planning for an anticipated 2005 budget
shortfall in excess of $200,000. The two primary factors
contributing to this shortfall include significantly higher than
budgeted diesel prices and higher than budgeted healthcare and
benefit costs. This shortfall is significant and will require Valley
Transit to consider reducing service, increasing fares and forgoing
some planned 2005 expenditures. The adjustments made are likely to
impact both the fixed route bus system, and the Valley Transit II
paratransit service provided under the Americans with
Disabilities Act.
Valley
Transit would like to welcome public comment at a public hearing to
be held Monday, May 2, at 5:00 PM in Committee Rooms A&B, 6th
floor Appleton City Hall, 100 N. Appleton St., Appleton, WI 54911.
Problem
#1
Valley
Transit has seen a 40% increase in diesel costs in the last year.
Prices have increased from an average of $1.23 per gallon in 2004 to
$1.72 per gallon in March 2005. (Please note that Valley Transit
does not pay state or federal fuel tax and these amounts are not the
same as pump prices.) In early 2004 when the 2005 budget was
being developed, diesel prices were averaging 1.07 a gallon and the
budget was set at $1.12. Current 2005 prices are 54% above budgeted
levels and all indicators point to levels of $1.70 a gallon or
higher for the remainder of 2005. At 175,000 gallons consumed per
year, this equates to a $100,000 budget impact.
Problem
#2
Valley
Transit incurred $98,084 more in employee benefit costs than
budgeted in 2004. However, they were still able to stay within
their budget overall due to positive variances experienced in other
expenses. Two items contributed to the higher benefit costs in
2004: health care costs and Wisconsin Retirement contributions
required to fund the State plan (note: there were no increased
benefits to employees). Valley Transit is anticipating a
shortage in 2005 as well.
Possible
Solutions
To
address this shortfall Valley Transit is considering a variety of
service reduction scenarios, fare increase scenarios and
administrative expense cuts since we do not feel there will be
variances in other areas to make up for these costs in 2005. A
complete list of cost reduction
scenarios is attached.
We
have struggled with the recommendations that we will be presenting
to address this shortfall, explains General Manager Chuck Kamp.
It is especially unfortunate that we have to look at service cuts
at a time when ridership has been increasing an average of 7% a
month for more than 6 months, mostly due to higher gas prices. We
recognize that service cuts and fare increases will be a hardship
for those who rely on our service, which is why it is important that
we hear from as many people as possible as the Fox Cities Transit
Commission, and Appleton Common Council make their decision.
Individuals
with comments are welcome to attend the public hearing or can submit
comments in writing to Valley Transit Budget Shortfall, 801 Whitman
Ave., Appleton, WI 54914. Comments can also be made by phone at
920-832-1629 or e-mail at valley.transit@appleton.org.
The deadline to submit written or phone comments is 4:00 PM, Monday,
May 2, 2005.
-end-
Valley
Transit serves the many communities of the Fox Cities, providing
safe, reliable, and convenient public transportation. Specialized
transportation is also provided under the Americans with
Disabilities Act by Valley Transit II, for people who are unable to
use the fixed route buses.
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