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Petaluma officials propose service cuts including end of on-demand pilot to close transit budget gap
Summary
Facing declining state transit revenues and rising costs, staff proposed a package of service reductions — including eliminating the Lumigo on-demand pilot after grant-funded months, dropping Sunday service and truncating late-evening trips — to eliminate a multiyear operating shortfall while staff seeks grants and partner funding.
Petaluma staff told the City Council on April 6 that Petaluma Transit faces a growing operating shortfall driven by declining Transportation Development Act and State Transit Assistance revenue and rising contractor and driver costs. To address a multi‑year deficit, staff and the Transit Advisory Committee (TAC) presented a package of service changes and revenue actions for council guidance.
Public Works and transit staff outlined steps already taken (deferred nonessential maintenance, pursuing new grants, resuming limited advertising and shifting low-carbon funding) and described a recommended package of service modifications intended to restore multi‑year fiscal balance. Major proposals included discontinuing the city's Lumigo on‑demand pilot after the current grant-funded period (estimated operational savings about $488,000 per year), eliminating Sunday fixed-route service (about $110,000 per year), shortening selected evening service to 7 p.m. (about $112,000 per year) and trimming low‑productivity runs (for example, Route 10) while preserving critical coverage to hospitals and equity corridors.
Staff emphasized the grant‑dependent timing of some savings and cautioned that several grants in process would not fully materialize in FY27; the city's staff estimate without any changes showed an FY27 shortfall of about $108,000. Transit managers said that dropping Lumigo alone would largely buy one fiscal year but would not solve out‑year deficits without additional actions.
Public comment and TAC members pressed the council to protect core weekday routes, Sunday service essential for workers and people with limited alternatives, and paratransit availability. TAC and community speakers highlighted demographic data (heavy youth and lower‑income ridership) and argued that fare-free service has driven higher ridership. Council discussion balanced those equity concerns against fiscal risk: several members supported the staff package as a realistic multi‑year approach while directing staff to continue aggressive grant pursuits, refine assumptions (including county funding arrangements that could shift $260,000) and prioritize retention of core routes that serve hospitals and equity neighborhoods.
No formal council vote was taken at the workshop; staff requested direction to carry the recommendations into the FY27 budget process and to implement changes effective July 5, 2026 if adopted as part of the final budget.
