There was a real chance the buses would stop running, said Charlottetown Mayor Clifford Lee. (CBC) City council voted Monday to temporarily increase the subsidy to the transit system by $15,000 a month, adding $105,000 for this year.
Mayor Clifford Lee said the service, which was launched in 2005, might have been closed down without the extra money.
Trius Transit, the private operator of the service, said in June it lost $126,000 last year, and that can't continue. The service has never been profitable for the company. In 2006 it was costing taxpayers about $600,000 a year, and with Monday's vote the subsidy for 2010 will be $800,000.
Transit committee chair Stu MacFadyen said despite the huge increase, there's never been a thought of canceling the service.
"A transit system is so important. I can't stress that enough," said MacFadyen.
"There are a lot of people that are using the transit system that wouldn't be able to get to work, wouldn't be able to get to college."
The increase is retroactive to June 1, and continues through to the end of the year. At that time a sustainability study will be complete and the entire funding structure will be reconsidered.
| Transit costs to Charlottetown Taxpayers | |||||
| Operations | Shelter maintenance | Extra | Total | Increase | |
| 2010 | $ 640,700.00 | $ 55,000.00 | $ 105,000.00 | $800,700.00 | 18.82% |
| 2009 | $ 640,625.00 | $ 33,261.00 | $673,886.00 | 4.30 | |
| 2008 | $ 624,988.00 | $ 21,095.00 | $646,083.00 | 1.63 | |
| 2007 | $ 619,747.00 | $ 16,000.00 | $635,747.00 | 8.86 | |
| 2006 | $ 583,995.00 | $583,995.00 | |||
| 2005 | $ 350,000.00 | $350,000.00 | |||
| Total increase in cost from first full year of operation to present: 37.11% | |||||
