East Ridge council weighs steep CARTA "Caravan" cost jump, directs staff to seek narrower, lower‑cost options

City Manager Brian Miller told the East Ridge City Council on April 20 that the Chattanooga Area Regional Transportation Authority (CARTA) has told the city the per‑ride cost for the Caravan paratransit service could rise sharply and that the city must decide how much to budget for next year.

Miller said the city currently averages about 3,200 Caravan trips a year and that CARTA’s internal cost estimate runs about $53.45 per trip; CARTA offered to charge the city $47 per one‑way trip if East Ridge agrees. “If you’re looking at $47 a trip on your 3,200 trips, you’re looking at about $150,000,” Miller said. He told the council the city’s current fiscal‑year appropriation for the service is small (previously paid from ARPA and grant funds) and that he had tentatively penciled $100,000 into next year’s budget while seeking more information and options.

Why it matters: the Caravan provides rides primarily for seniors and people with disabilities. A sudden price increase would require either a large budget increase, reductions to the service, or both. Councilors pressed staff for alternatives that would preserve critical medical trips while reducing discretionary or higher‑cost uses.

What the council discussed

- Funding history and drivers of the increase: Miller said some grant and ARPA funding that previously subsidized the service has ended, and Hamilton County did not appropriate matching funds this year, producing a roughly $100,000 shortfall the city must address. He said CARTA’s grant funds have been depleted and that operating costs have risen.

- Options suggested by CARTA and by staff: limit Caravan trips to medical purposes (medical, dental, dialysis and pharmacy), cap the number of rides per rider or per month, narrow hours of operation, increase the rider fare modestly, or provide a city‑owned vehicle. Miller said a city‑purchased van did not appear cost‑effective based on CARTA’s credit and the vehicle financing scenario presented.

- Administrative feasibility and equity concerns: CARTA staff warned some targeted limits (for example, selecting which trip purposes qualify) could be administratively difficult. Multiple councilors said limiting the service to essential medical trips could materially reduce cost but expressed concern about leaving riders without reasonable alternatives.

- Market alternatives and education: some councilors pointed to private market options — ride‑hail services, pharmacy and grocery delivery, volunteer programs, and veteran services — and urged the city to help residents access them through outreach and classes at the library or community center.

Council direction

Rather than vote on a single change, the council directed the city manager to keep $100,000 in the manager’s preliminary budget for the service and to keep negotiating with CARTA and county officials. Miller said he would work with CARTA’s finance director to return with a narrower, costed menu of options (for example: medical‑only service, reduced hours, per‑rider limits) the council could adopt before finalizing the fiscal‑year budget. No formal change to the program or appropriation was made at the April 20 meeting.

Clarifying details

- Average cost per trip cited by CARTA staff: $53.45 (CARTA provided $47 per trip as the price it would charge East Ridge on current discussions). - Annual trip volume cited by staff: about 3,200 trips (most recent 12‑month period). - Current fiscal‑year city appropriation: $10,000 (staff said prior years’ costs were covered in part with ARPA/grant funds; city manager has tentatively penciled $100,000 into the proposed 2025–26 budget as a placeholder). - Tentative near‑term council direction: leave $100,000 in manager’s proposed budget and return with specific, costed service‑reduction or targeting options.

Speakers (excerpts used in article)

- Brian Miller — City Manager (government: City of East Ridge). First reference: City Manager Brian Miller. - Charles Williams — Mayor (government: City of East Ridge). First reference: Mayor Charles Williams. - Vice Mayor Tyler — Vice Mayor (government: City of East Ridge). First reference: Vice Mayor Tyler. - Council member Cagle — Council member (government: City of East Ridge). First reference: Council member Cagle. - Council member Ezell — Council member (government: City of East Ridge). First reference: Council member Ezell. - Council member Witt — Council member (government: City of East Ridge). First reference: Council member Witt.

Direct quote(s)

- City Manager Brian Miller: “If you’re looking at $47 a trip on your 3,200 trips, you’re looking at about $150,000.” - City Manager Brian Miller: “I’ll leave a hundred thousand dollars in the budget right now as it is. And I’m sure that if we talk… and take out the entertainment, jobs, the employment, and just leave the medical and dental and dialysis, we should fit below that number.”

Topics

- Primary: transportation-paratransit - Other tags: CARTA, budget, senior-services, public-transit

Why this topic

The city’s discussion centered on immediate budget choices and local access to medical mobility for seniors and residents with disabilities. The financial gap and lack of county appropriation make this a time‑sensitive municipal budget decision.

Impact and next steps

The manager will return with a costed set of options and any information from Hamilton County or CARTA about alternate funding. The budget presentation is scheduled for the May 8 meeting; the council appears likely to revisit Caravan funding during the budget process.