CAT officials talk fare increase to balance budget | savannahnow.com

Chatham Area Transit officials discussed a fare increase at a Tuesday board retreat to help close a $2.2 million budget deficit.

The CAT Board of Directors, however, didn’t seem to support such a move, which could lead to fewer riders. A fare increase from $1.50 to $2 is but one of several proposals for how the financially struggling transit agency plans to cope with a county tax increase that was less than what it had requested.

Several options were put on the table at the two-hour planning session that was billed as a retreat, which included lunch at the Savannah International Trade and Convention Center.

In addition to a fare hike, board members discussed extending by one year the period to pay off its $7.7 million line of credit, freezing six internal positions, modifying services and deploying smaller buses in low ridership areas as solutions, which are projected to total $1.5 million in reductions.

About $2 million of the budget deficit is due to the millage rate, said CAT Executive Director Chad Reese.

In June, Chatham County commissioners voted to increase CAT’s millage rate by .141 mills to 1.001, instead of 1.241, which was requested by the CAT board. As a result, CAT’s 2014 budget of $19.7 million is $2.2 million less than it had requested.

via CAT officials talk fare increase to balance budget | savannahnow.com.