Item B: LTD Funding and Service Issues

Home Browse Search

ATTACHMENT A October 13, 2008 MEMORANDUM TO: Eugene City Council FROM: Andy Vobora Director of Service Planning, Accessibility, and Marketing Lane Transit District P. O. Box 7070 RE: Discussion of LTD 2009 Service Reduction Proposal Eugene, Oregon 97401 (541) 682-6100 FAX (541) 682-6111 LTD ridership is growing very rapidly. While the District has traditionally enjoyed favorable ridership and ridership productivity, the last three years have brought ridership gains of more than 35 percent. In 2007-08 alone total boardings grew by 17 percent--setting a record of 11.4 million boardings. This ridership growth has continued into the new fiscal year as boardings in September 2008 increased more than 18 percent. The challenging part of this rapid ridership growth is the fact that the growth is system-wide. EmX ridership continues to set a strong pace, but routes throughout the system are growing at rates that are unprecedented, and a little unsettling, due to the District’s lack of ability to meet increasing demand. A budget gap is widening as the costs of fuel and paratransit services have grown rapidly during the past five years. Add to these costs the more significant impact of a weakening local economy, and the result is that the District’s general fund is overextended. The use of operating budget reserves has allowed LTD to maintain current service levels for Fiscal Year 2008-09. The LTD Board adopted sweeping fare increases to boost revenues, and District staff developed budgets that reduced staffing and cut materials and services budgets. Capital projects were dropped or pushed to future years. These strategies helped mitigate the severity of the budget gap, but cannot close it, and this means bus service reductions will become necessary in 2009. Additional revenues are being pursued at state and federal levels, but these funds won’t address the short-term needs of the District. The Board examined a local property tax measure that would have generated funds to maintain current service and also expand service slightly to meet growing demand. A decision not to pursue a ballot measure at this time was in response to comments from local business owners and citizens who felt there wasn’t sufficient time to educate the voters and who also felt that it is difficult to pass tax measures. With no new sources of revenue, LTD is faced with cutting bus service in 2009. More than $3 million in operating reserves will be used this fiscal year and will allow for a planned reduction in services. LTD Staff have