Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transit Funding topic
No spam. Unsubscribe anytime.
Hampton Roads Transit CEO explains large "true up" after ridership drop
Summary
William Harrell, president and CEO of Hampton Roads Transit, told Hampton City Council the agency saw both sharp ridership declines and higher operating costs that produced an unusually large annual "true up." He said HRT will outline mitigation steps at a board meeting in Norfolk and return to brief the council.
William Harrell, president and CEO of Hampton Roads Transit, told Hampton City Council that the agency's recent "true up" reflected a combination of lower-than-expected fare revenue and higher operating costs.
“We're 100% accountable for, the actions of the organization,” Harrell said as he explained a national ridership decline and local cost pressures. Harrell told council staff that HRT saw what he characterized as a roughly $2,400,000 reduction in revenue and about $2,700,000 in unfavorable expense impacts tied to maintenance and benefits, against a budget he described as about $98,900,000.
Harrell said a substantial portion of the shortfall stemmed from ridership trends seen across the country and the aging condition of the agency's fleet. He also said the federal portion of HRT's funding is roughly 17 percent, and that loss of federal dollars would place more pressure on fares and local contributions.
City Manager Mary Bunting, who introduced the presentation, told council Hampton's own transit contribution of about $4.6 million plus a roughly $600,000 true-up this year pushes local outlays above $5 million — an amount she equated to approximately 5 cents on the city's tax rate.
Harrell said HRT would present a detailed breakdown and mitigation strategies to its board and to city managers at a meeting in Norfolk the next day, and return to brief city council on the proposed cost-saving measures and trends for fiscal year 2017.
