City of Madison
Legislative File ID   12124
Type:   Miscellaneous    Status:   In Committee
Enactment Date:      Enactment No.:  
Title:  
Metro: Plans for public hearing in November regarding proposed fare changes under consideration in the 2009 budget
Controlling Body:   TRANSIT AND PARKING COMMISSION
Introduced:   9/25/2008    Version:   1
Final Action:   10/2/2008    Contact:   abenishek-clark@cityofmadison.com
Name:  
Metro: Plans for public hearing in November regarding proposed fare changes under consideration in the 2009 budget
Extra Date 1:  
Requester:  
Sponsors:  
Legislative History
DateActing BodyAction TakenMotion
10/2/2008TRANSIT AND PARKING COMMISSIONKamp pointed out that the Mayor’s budget request for Metro included a 50¢ fare increase, to $2.00/ride. Kamp said that in order to stay on schedule, the Commission would need to hold a hearing in November. Following this, Metro would bring their recommendations back to the TPC in December, and the final proposal would go into effect in March 2009. He noted that the weighted average cost per gallon was now $3.40/gallon. Kamp then outlined the Mayor’s recommendations as contained in his October 2, 2008 letter to the Commission. In the letter, the Mayor discussed the sharp increase in fuel costs in recent years and the fact that fares had not increased since 2005. He also talked about his reasons for supporting a 50¢ increase rather than a 25¢, and how combined with the $409K from the general fund, the additional money could be used. These included: expanded service, a new staff position for marketing, additional security at transfer points, doubling funding (to $80K) for Transit for Jobs or similar programs for low-income riders, the creation of a reserve fund as cushion against increased fuel costs. Members discussed the different roles of the TPC and the Common Council. Webber said the TPC set fares for Metro, but the Council determined the budget for Metro (in November). Based on this, TPC would need to figure out how to help make up this budget. Durocher added that some members in the past had questioned taking up the issue of fares, which then relieved the Council of its duty to provide public subsidy. Bergamini observed two oddities at play: The Mayor had instructed agencies to come up with 5% cuts, and some had not done so; and the Mayor had presented the Capital Budgets to BOE, but only now, operating budgets were coming out. Webber said that some budgets were sent back to those agencies that didn’t do what was asked; and yet it was also true that some agencies tried to exercise austerity and while others didn’t. Everything was fluid and the timing was accidental. Bergamini noted that some agencies were not utilities though. In response to questions, Kamp said that the effective date for new fares could be moved to an April/May timeframe. He said the $682K figure cited in the Mayor’s letter was provided by Metro, and included only cash, tickets, passes to determine this figure, not the revenues derived from ride pass agreements. He said that Metro was assuming some elasticity would occur, and would check with Abrams-Cherwony about this while they were here doing the MPA. Solomon was concerned about the impact of the shaky economy, and wondered how many people would lose their jobs if they couldn’t afford the fare increases. He hoped the group could get some data on this. Kamp said he would look into having Abrams-Cherwony contact the MPO for information like this, as well as contacting WisDOT to see what information they might be able to provide. Bergamini wondered if the Commission should hold a hearing in November or at all. She wanted operating budgets to be completed before the TPC talked about fares, maybe in December. It seemed to her that when there was a public hearing on a possible rate increase, this usually meant an increase was coming. She honestly didn’t know if the TPC should do that. Durocher mentioned the hearings in spring and how some service that had been on the chopping block had been salvaged, and he thought things had been stabilized. Now only a half-year later, the Commission once again had to consider holding a hearing. He wondered however if the group might be limiting their options if they didn’t schedule one. He suggested that Metro provide three scenarios: one with no increase, one with a 25¢ increase, and one with a 50¢ increase. Then people could weigh in on service reductions vs. fare increases. Webber/Poulson moved to schedule the hearing at a date to be determined. Webber said that once the budget was done, the TPC would have some decisions to make to raise fares or cut service. She thought both things could be discussed at one hearing. [PLEASE NOTE: Poulson left the meeting at this point, at 7:14 PM, before the vote was taken on this item, and before discussion/action on the remaining Agenda Items E.3., F.2. and F.3. Poulson was present for the vote on Agenda Item F.1., which was taken out of order and considered earlier in the meeting.] Solomon wondered if the hearing would be about fares and the budget. After some discussion, Kamp suggested that the topic of the hearing could be Metro service and fare proposals. He said holding the hearing around November 20th offered the advantage of allowing staff to prepare its recommendations based on hearing input for the December 9th meeting. Webber then suggested that the hearing dates to consider should be November 17th, 19th, 20th and 24th, and members should be polled for availability. The motion carried unanimously.
Notes:

  powered by Daystar Computer Systems, Inc.