By Phil Anderson, The Topeka Capital-Journal, June 29, 2008
Increased maintenance, fuel and labor costs to run the city's bus service have driven Topeka Transit's fiscal year 2009 budget to $9.188 million, nearly $1.5 million higher than the 2008 budget of $7.7 million.
Topeka Transit board members approved the increase at a meeting this past Monday. The 2009 fiscal year budget starts Tuesday.
Though the 2009 budget is substantially higher than the 2008 budget, Topeka Transit officials say they are concerned projected income of $9.259 million only covers expenses by $71,000.
"We have never, ever been so close," said Janlyn Nesbett-Tucker, chief executive officer and general manager for the Topeka Metropolitan Transit Authority. "This is very uncomfortable."
Nesbett-Tucker said the $71,000 projected budget surplus is cutting it especially close considering the age of the Topeka Transit's bus fleet and maintenance costs involved in keeping the vehicles on the streets.
Of the fleet's 51 buses, 41 will reach retirement age in less than two years. Several are running on rebuilt engines.
The cost of a new bus is about $350,000.
"Our aging fleet needs are critical," Nesbett-Tucker said. "We need to replace 26 fixed route buses and 15 paratransit vans. In addition, we really need 16 expansion buses, but federal replacement dollars aren't there."
Diesel fuel prices recently were locked in at $3.85 a gallon for 40,000 gallons, then at $4.35 a gallon over the next 10 months.
A union contract covering Topeka Transit's drivers and mechanics expired May 31. The union earlier this month rejected Topeka Transit's offer of a 2.5 percent pay raise, plus an additional .5 percent in cash. Talks now are headed for arbitration, Nesbett-Tucker said.
Topeka Transit's income is generated by a 3-mill levy on Topeka homeowners; federal and state funding; rider fares; and other sources including advertising.
The 2009 budget calls for 42 percent of its funding, or $3.8 million to come from federal funds; 37 percent, or $3.4 million, to come from the mill levy; 14 percent, or $1.3 million from fare-box revenue; 5 percent, or $460,462, from the state; and 2 percent, or $197,700, from "other" sources.
Compared to the 2008 budget, the 2009 budget reflects a higher percentage of dollars from the federal government and a smaller percentage from the mill levy.
Federal funding accounted for 27 percent of the 2008 budget, while the mill levy brought in about 47 percent.
In the 2009 budget, federal funding is projected to account for 42 percent of the budget while the mill levy will contribute 37 percent.
In spite of the $1.5 million increase, Nesbett-Tucker said the 2009 budget is "pretty bare-bones."
"We've had to cut almost all marketing and employee events," she said. "We've placed a number of positions that need to be filled on hold. We're basically in a holding pattern, trying to contain costs."
Meanwhile, ridership on Topeka Transit buses continues to increase.
By the close of business on Monday, when fiscal year 2008 ends, about 2 million trips are expected to have been taken on Topeka Transit buses, up 58 percent — or more than 500,000 trips — in the past four years.
Ridership was up 10 percent in 2008 over 2007, according to Topeka Transit.
Despite a fare increase to $1.25 a ride over $1 a ride on May 1, Topeka Transit officials said ridership didn't drop off and continued to grow.
"When you consider the rate of growth that we have had and will continue to experience," Nesbett-Tucker said, "our service demand will be tougher and tougher to meet. The service we have now is just not enough."
Because of budget constraints, Topeka Transit has been unable to expand services and routes to meet a growing need.
"Never before have we seen such a surge in our ridership," said Topeka Transit board chairwoman Neta Jeffus. "We will top off at 2 million riders at the end of June.
"To me, that speaks volumes about the value people place on our service. Our users deserve a bus system that operates seven days a week and later into the evening. But you have to have money to operate later."
Phil Anderson can be reached at (785) 295-1195 or phil.anderson@cjonline.com.