PORT ANGELES — Sagging ridership and declining sales tax revenue are forcing Clallam Transit to consider a 2010 budget that spends $800,000 in reserves.
Transit officials will ask the public next spring for suggestions on how to bring down costs and raise revenue.
Nothing will happen immediately.
Likely options
But several options, including staff reductions, holiday closures and Clallam Transit’s first fare increase in 12 years, will be considered sometime next year.
“We’ve already trimmed the budget as far as we can,” said Terry Weed, Clallam Transit general manager.
According to the preliminary 2010 budget that the board discussed on Monday, sales tax collections fell $500,000 below expectations in 2009 at $5.6 million.
Projected expenses will outweigh revenue $7.52 million to $6.72 million this year and $7.45 million to $6.76 next year.
Part of the problem is a 7.6 percent decline in ridership in 2009.
Since Clallam Transit will run out of reserves in two years at the current rate, the commissioners have directed staff to come up with ideas for cost savings on a continuing basis.
The public transit system could save $14,000 for each holiday that it doesn’t operate. Dropping service on Martin Luther King Jr. Day, Presidents Day, Veterans Day and the day after Thanksgiving will be on the table next year.
Combining Dial-A-Ride with the Clallam Paratransit would save an additional $36,000, estimates show.
As staff members leave or retire, Clallam Transit may consider leaving those positions open until the revenue picture improves.
“The goal is to cut the draw in reserves at some point next year,” Weed said. “It’s a little open-ended.”
Clallam Transit needs to maintain its major project fund to replace buses and vans and to keep its facilities functioning.
If revenues don’t improve next year, transit officials likely will consider service reductions and a rare fare increase, after a series of public hearings.
“The board is reluctant to consider this,” Weed said.
“We have not changed our fares in 12 years. But there is some expectation, even among our riding public, that it’s something we might do.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
