The Niagara Region Transit route to getting its 2024 budget request approved by Regional Council has been extended by a few stops.
This results from the Region’s budget review committee deferring a decision until the transit commission and its board can find ways to save more money, and trim what was proposed as a 7.8 per cent increase for Niagara ratepayers through a special levy used to fuel the Region-wide transit service’s second year of operation, which could include an increase in fares and decrease in services.
The recommendation brought to Regional Council on Thursday for approval aimed to see a proposed gross operating budget of more than $83 million, and a net base special levy of $59 million, to be apportioned between local municipalities.
The capital side of the transit commission’s budget is $23 million, with more than $20 million of this amount expected to be covered through upper levels of government and development charges.
The price of gas, labour-related costs, and maintenance needs are the biggest challenges the amalgamated transit provider is facing, Carla Stout said in her presentation to the Regional budget committee.
The lifespan of a transit bus, usually 40 or 60 feet, is 12 years. The average age of the transit commission's buses is eight years old, explained Stout, stressing the importance of refurbishment, but especially replacement.
There are about 170 buses within the Region-wide transit provider’s fleet, 33 of them at the ripe age of about 15, she said.
And a large chunk of the buses on the road across the Region were uploaded from lower-tier municipalities when the new transit system was formed. Referring to some of the buses ready to retire, Stout said she’s “not surprised given the timing – coming straight out of the pandemic.”
During COVID-19 most municipalities were frozen when it came to purchasing new fleet, she said, and the Regional service is “three years behind” when it comes to purchasing new vehicles.
“I have 33 buses where I don’t know if they’re going to run in six months,” said Stout, and in response to a question about a switch to electric buses added that although an electric fleet would be desirable, it would also mean significant extra costs related to charging infrastructure, and that some electric buses do not have as much range as a standard, diesel-fueled bus, meaning their batteries need frequent boosts.
The special levy requisition for Pelham, before the budget was put on hold last week, was set to be $952,105 in 2024.
It could take up to 16 months for a new bus to be delivered after one is ordered – which is why time is of the essence, Stout told the committee. “As buses start to fail and come off the road, so will service.”
To fulfill a goal of replacing 19 of the conventional 40-foot buses is estimated to cost $15 million.
A motion was brought forward by Pelham Regional Councillor Diana Huson to see the budget request brought back to the transit commission at its next meeting, which is Nov. 21. She is asking that the provider investigate fare increases, reduction in service, and “capital reserve transfers with context on operational impacts,” as well as revenue-generation opportunities through advertising.
Local net transit costs and incremental capital will be apportioned based on service hours, while inter-municipal service costs are apportioned to municipalities based on their share of region-wide assessment.
Pelham only uses Niagara Region Transit’s OnDemand system for residents to get where they need to go, a service shared with NOTL, Grimsby, Lincoln, Port Colborne, Wainfleet and West Lincoln.
The special levy requisition for Pelham, before the budget was put on hold last week, was set to be $952,105 in 2024.
Niagara’s largest municipalities are set to pay the most.
According to a chart in the report brought to council last week, St. Catharines is on the hook for $22 million, and Niagara Falls will be contributing about $16 million. Welland was slated to pay $6.6 million.