Budget deliberations have begun at the City of Guelph with preliminary discussion at the Emergency Services, Community Services and Operations Committee. At that meeting, much focus was put on offering 20 minute bus service in Guelph and it’s related costs.
Since changing to 40 minute bus service at peak times, Councillors have received a large number of correspondences from residents concerned about this perceived reduction in service and advocating an improved service. This blog alone has received over 25 letters and emails. It is clear that residents of Guelph wish to see an improved service.
This improved service will come with a considerable cost.
Staff have suggested that the operating cost for the first full year of implementation would be in the neighbourhood of $2.5 million. This would be in addition to the $5.8 million capital cost to purchase new buses.
Councillors will be presented several options to assist in their decision making.
These options will include:
A significant increase in the transit fare. Currently, the $2 rate is considerably lower than any other City in Ontario with similar populations. An increase of 10-50 cents per fare could be an option. Each 25 cent increase equates to about $250,000 in revenue.
A 1 – 1.5 % increase to the property tax base. Each percentage point represent about $1.4 million in revenue.
Staggered implementation starting with peak hours followed later by full 20 minute service.
Purchasing used buses instead of new. It takes about ten months to recieve delivery of new buses from suppliers. Used buses are much cheaper, but come with increased maintenance costs and shorter life cycles.
As it is unlikely that the new 20 minute service will start before September 2008. The full operating cost of $2.5 million for one year will be considerably less if it is only operationg for four months of that year.
Different option models will be presented to Council sometime early in the new year. Ian