More people are choosing public transit this year, with a 10 per cent rise in bus ridership, but the added fares haven’t been enough to offset the overall cost of the function, which is expected to bear a year-end deficit of $50,000. And because there are no reserves for the service, costs may have to be recovered by future taxation.
Sunshine Coast Regional District (SCRD) directors reviewed the public transit budget at the Sept. 20 infrastructure committee, as part of ongoing efforts by staff to examine the financial impact of the transit expansion project, which was implemented in 2017. That expansion involved the addition of six buses and hourly service between Sechelt and Langdale with service every half hour during peak times. Staff said the cost overruns are a result of spending more than expected on wages and benefits and because of “unanticipated operational costs.”
Another way to offset the deficit is to reduce service, but staff discouraged the option because it would be difficult to implement and would prevent ridership increases. Reducing service also goes against the expansion approval.
At the meeting, directors also voted to authorize and execute the BC Transit Annual Operating Agreement (AOA), which governs costs and funding until March 31, 2019. BC Transit included approximately $280,000 in the AOA, which represents a significant increase over last year’s agreement. The money comes from reserves held by BC Transit used to pay for inflationary increases. This is the final year of that fund, however, so if the SCRD isn’t able to save on operating costs, staff said they will have to increase taxes by $150,000 to make up for the loss of that fund.
Howe Sound director Ian Winn acknowledged the funding loss as well as the $50,000 deficit was “alarming,” and that they underscore that “we are living beyond our means with transit,” and that a “stabilization period” is needed.
That period of stabilization may have arrived with the latest Transit Expansion Memorandum of Understanding, which was brought before the committee. Directors voted to refrain from making any decisions on service expansion until they have information about the costs and impacts of the current service.
They did, however, approve the expansion of service to Chatelech Secondary School in September 2019 because the costs of adjusting service are expected to be minimal. To do it, one of the late night bus services between Langdale and Sechelt will be reallocated. Sechelt director Doug Wright suggested staff discuss the expansion with School District No. 46 in case it affects school bus routes.
