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Home My WebLink About31560 / 81-01�� October l, 1981 PURPOSE: INITIATED BY: � 1 RESOlUTION ESTABLISH BUS FARE - OSHKOSH TRANSIT SYSTEM TRANSIT ADVISORY COMMITTEE BE !T RESOLVED by the Common Council of the City of Oshkosh that the proper city officials are hereby authorized and directed, effective January l, 1982, to establish the bus fares as follows: FAnE CLFSS Adult (il yrs. and over $ .35 Children (5 thru 10 yrs.) $ •15 Elderly & Handicapped (off-peak) $ •15 Children (5 yrs. & under) FREE Transfers FREE Tokens 20 for $ 5•00 Neenah-Menasha Run: Oshkosh to Winnebago Oshkosh to Neenah Oshkosh to Menasha Winnebago to Neenah Winnebago to Menasha Neenah to Menasha —1— $ •50 $ 1.00 $ 1.05 $ 1.00 $ 1.00 S .75 � n..,_, - __. . .. {� / "• / �<L��!`� i � _ __.__. _. _ L. ..._.. _..._.�__ ........ ... . ............_.__...._�. t PROPOSED FARE INCREASE INTRODUCTION During the last year significant changes have occurred in both the economic and political environment surrounding the provision of public transportation. Increased operating expenses brought about by rising fuel prices and higher wage rates have caused rapidly increasing transit deficits, eventhough ridership has shown significant gains. On the political side, transit is being forced to compete for increasingly scarce public funding to support mass transportation services. These factors have created the need for a rational and businesslike approach to setting the fare and service levels of public transportation. The prospect of fare increases in 1982 and possible service cuts in the future are extremely painful for me personally. They run directly opposite to my goal over the last three years of increasing the Oshkosh Transit System's ridership as a way to conserve energy, strengthening the downtown and protecting the environment, as well as providing low cost transportation for those persons unable to use an automobile. I strongly feel that public transportation is an essential public service much like fire and police protection, good parks and a strong public works program. There is limited value in asking the user to pay a rapidly increasing share of the costs, to do so will be a tragic step backwards. However, I recognize that transit users must pay a fair share of the expenses. ihe management plan for the Oshkosh Transit System has established a policy that revenues must equal at least 30°0 of expenses. Without an increase in the fares for 1982 this goal will not be reached. Therefore, the Transit Board is recommending that the following fare structure be implemented on January 1, 1982. S � FARE STRUCTURE Existing Recommended Fare 1982 Fare Structure Structure Adult (11 yrs. and over) $ .25 $ .35 Children (5 thru 10 yrs.) $ .10 $ .15 Elderly & Handicapped (Off-peak) $ .10 $ .15 Chi.ldren (5 yrs. and under) FREE FREE Transfers FREE FREE Tokens 20 for $5.00 20 for $5.00 Neenah-f-0enasha Run: Oshkosh to Winnebago Neenah Menasha Winnebago to Neenah Menasha Neenah to Menasha $ .50 $1.00 $1.05 $ .50 $ .55 $ .40 FINANCIAL IMPACT OF FARE INCREASE FOR 1982 Basic Assumptions 1981 Budget 1981 Ridership $ .50 $1.00 $1.05 $1.00 $1 .00 $ .75 $1,091,000 1,075,000 1982 Budget $1,229�500 1982 Ridership (Projected No Fare Increase) 1,182,500 A 10¢ increase in the fare wiil, (based on the Curtin-Simpson Formula), result in a loss of 47,300 passenger trips in 1982. 1982 Revised Ridership Projection Adult (city routes) 935,400 Children (5 thru 10 yrs.) 116,100 Elderly & Handicapped 92,000 Neenah-Menasha 17,500 1,161,000 1,161,OD0 � i 935,400 adults passengers x 44°d °d of passengers not using tokens 411,576 x .35 recommended fare $144,052 revenue 935,400 x 56°0 °o of passengers using tokens 523,824 x .25 token fare $130,956 revenue Revenue from adult fares ..................................$275,008 116,100 children passengers x .15 recommended fare $ 17,415 revenue Revenue from children fares ...............................$ 17,415 92,000 elderly & handicapped passengers x .15 recommended fare $ 13,800 revenue Revenue from elderly and handicapped fares ................$ 13,800 Neenah-Menasha Route: Oshkosh to Winnebago Neenah Menasha Winnebago to Neenah Menasha Neenah to Menasha Passengers 2,460 x 250 x 11,985 x Fare Revenue .50 = $ 1,230 1.00 = 250 1.05 = 12,584 -- x 1.00 - -- -- x 1.00 - -- 2,805 x .75 = 2,104 $16,168 Revenue from Neenah-Menasha Route .........................$ 16,168 Projected Charter & Miscellaneous Revenue .................$ 56,109 TOTAL REVENUES ............................................$378,500 � FINANCIAL STATEMENT FOR 1981 AND 1982 Operating Revenues Operating Expenses DeFicit To Be Funded Federal Share State Share Local Share SUMMARY 1981 $ 300,610 1,091,000 790,390 $ 395,195 254,975 140,220 1982 $ 378,500 1,229,500 851,�00 $ 425,500 368,850 56,650 The proposed fare increase will generate an additional $77,890 in revenues. This will increase the revenue to expense ratio from the existing 28°d to 31°6 in 1982. In the 1981 Management Plan a level of 30°d was established as the acceptable recovery rate. For the user of the system, the 1982 yearly cost of using a bus twice daily will be only $175.00 when paying the cash fare. If a passenger elects to use tokens, the cost is reduced to $125.0� a year. In light of the current costs associated with using an automobile the cost is very reasonable. I can't stress enough the position that the bus system not attempt to raise fares while cutting service. The combined effect of charging more for less service will start s downward trend that is difficult tn reverse. This is exactly what happended when the systems were privately owned and only massive federal aid was able to save this country's mass transit systems. It doesn't appear that federal aid will be available at the levels it has been in the past. We must proceed in a businesslike manner and not randomly cut service while raising fares. The 30°e revenue to expe�se ratio should be the benchmark for establishing both fares and service levels. The concept that mass transit is an essential community service and should be provided at a low cost is an important consideration. Low fares do encourage usage and allow low income people to travel more freely. But, low fares are not intended 5olely to provide more mobility to those unable to use an automobile. There is traffic relief from i�creased transit usage and an offset in the dollar cost of automobile mileage and parking costs to transit users. This translates into additional dollars available for pur- chasing items other than gasoline, and while the transit system serves most shopping areas the system is oriented to the downtown. The benefits of mass transit can't always be measured strictly in terms of cost per passengers, as there are social and economic benefits that must be considered. � � � � w � ti � � , �' � v � +� `� i n p, ¢ 0 ��7 +� ro .. � •� ¢ ro m y..� o •�+ O E E F� "� N � O O U � � �p � O £ � � � � � � � � � � ^ U �� .� U