CARTS asks Kenai for $10,000 local match after ridership jump; agency says $312,000 shortfall threatens federal funds
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Summary
Central Area Rural Transit System reported a 21% ridership increase in 2024 and requested a $10,000 contribution from Kenai to meet local match requirements for new dispatch software and mobile app, citing a $125,000 shortfall in local match and a total $312,000 operating gap.
Central Area Rural Transit System (CARTS) briefed Kenai City Council on April 16 about ridership growth, operational improvements and a request for a $10,000 city contribution to cover required local match for dispatching software and a new mobile app.
Executive Director Jessica Schultz said ridership grew 21% in 2024, delivering nearly 36,000 rides, and noted that 66% of trips are employment-related. "The city of Kenai represents 39% of all of our drop offs making it the most traveled to destination within our service area," Schultz said.
Schultz said the agency's operating budget is approximately $1.2 million with nearly 75% coming from federal sources and about $310,000 needed in local match. CARTS reported a current shortfall of about $125,000 in local match that prevents the agency from accessing roughly $190,000 of federal funds; the combined shortfall CARTS described was approximately $312,000.
Schultz described operational gains in 2024 including on-time performance above 90 percent, expanded staff, upgraded communications and new dispatch software and a rider mobile app. She credited a prior $5,000 Kenai contribution as the required match for the new dispatching software and said an additional $10,000 would allow CARTS to direct other local dollars toward critical operating costs such as driver wages, fuel and contract services.
Board president Tim Dillon and board members told council CARTS had stabilized governance and finance staff in the past year and is pursuing additional local partnerships and revenue sources; Schultz said three new accessible vehicles are expected by September and that CARTS contracts for overflow service with Alaska Cab.
Council members asked about historic city contributions and zone-based fare structure; CARTS said the city had not consistently contributed in recent years and that the customer fare covers roughly 15% of the true cost of rides. CARTS said it is forming an ad-hoc committee to review zonal fares and to explore additional funding sources.
Ending: Council did not take immediate action during the presentation; CARTS requested the $10,000 contribution and said it would follow up with city staff on funding options.
