Public transit: Subsidy for Metrobus now tops $14M
The cost of providing public transit in the City of St. John's continues to rise, with the subsidy paid to operate Metrobus in 2015 budgeted at $14.2-million.
That's 30 per cent higher than just five years ago, and a whopping 57 per cent higher than it was in 2006, when taxpayers were shelling out $6.2 million for the service.
Despite the soaring subsidies, the cost to board a bus — $2.25 — hasn't changed since 2007, and annual ridership has remained relatively stagnant at about three million passengers.
What's more, the service aims to recover 50 per cent of its costs, but that figure has dropped to around 40 per cent in recent years, with members of St. John's city council preferring to increase subsidies as opposed to passing the costs along to riders.
The generation that's coming up now ... tend to have a different view of travelling than the generation ahead of them.- Judy Powell
Metrobus general manager Judy Powell admits that encouraging more people to use public transit is a challenge.
In large cities like Montreal, Toronto and Vancouver, public transit is an accepted part of daily life because of congestion and the high cost of parking.
That's not the case in St. John's, where vehicles flow smoothly throughout the streets and parking — outside of the downtown core — is mostly free.
"It is a challenge for us to get people to leave their car at home and take a bus, but there are a lot of people that do make that choice," Powell said, referring specifically to post-secondary students, people who work in the retail sector and seniors.
Capital investments don't come cheap
But why have costs increased so dramatically?
Take a look at one of the buses travelling the streets of St. John's and Mount Pearl and you'll get part of the answer.
The city-owned service has been investing heavily in new vehicles in recent years, and by 2017 will have replaced 30 of them at a cost of more than $400,000 each.
"That's a big piece of it," Powell explained.
A new $34-million depot was also completed off Kelsey Drive late in 2013, with the city contributing $8 million to the project.
The cost of wages and benefits for the 130 people who work at Metrobus have also increased, along with other operating costs, said Powell.
So will the upward trend continue in the coming years?
That depends on several factors, said Powell.
The cost of capital investments will tail off as the fleet is replenished, but employee wage and benefits costs will continue to rise.
Any further expansions in the service will also drive up costs.
On the other hand, the plummeting price of diesel fuel, which accounts for 12 to 14 per cent of expenditures, could take some pressure off the expense side of the ledger.
"If the prices stay low, we certainly will see savings in that area," Powell said.
Public transit is necessary, says Powell
The cost of Metrobus is now starting to rival that of snowclearing, but Powell and others see it as a necessary expense.
"It contributes to the social, economic and environmental well-being of any large centre," she said.
More and more, she added, a new generation of passengers are choosing public transit for environmental reasons.
"The generation that's coming up now ... tend to have a different view of travelling than the generation ahead of them," she said.
As for the future, Powell said there are plans to focus on improved transit services to Memorial University and other post-secondary institutions in the city.
Will the future also include expanded to services to neighbouring municipalities such as Paradise and Conception Bay South?
Powell said that's a political question, but said Metrobus is always willing to talk.
"If those other municipalities to pay for transit, we are certainly willing to come to the table and work with them to design a service that works for them," she said.
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