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ESTA board helps keep buses rolling |
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Thursday, 21 August 2008 |
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By Mike Bodine
Register Staff 8-19-2008
Eastern Sierra Transit Authority’s attempt to request funding from its member agencies may have gotten sidetracked, but the Board of Directors has approved expected rate increases.
In disagreement about what exactly ESTA is requesting, members of the board were unable to resolve discussions at their meeting Friday over how they wanted the line-of-credit request letter phrased.
Across-the-board fare increase talks were not as bumpy.
With a state budget in limbo and soaring gas prices, fare increases are a way to help ESTA cover its early fiscal year expenses.
This is the beginning of the fiscal year for most governmental agencies, said ESTA Treasurer and Auditor-Controller Brad Koehn. One of ESTA’s primary challenges, he explained, is that insurance and workers compensation payments for the entire year are made at the beginning of the fiscal year, a very large payout for an agency that just recently celebrated its first anniversary.
The rate increase is expected to generate $66,000 in additional revenue that is hoped to offset the dramatic increase in fuel prices. An ESTA report states the average fuel price it paid at the beginning of 2008 was $3.15 per gallon with the current budget setting the average price to be $4.55.
The increases are as follows: Red/Blue fixed routes in Bishop will rise from $1 to $1.25 for adults and $.75 to $1 for the discounted rate, the 30-day pass goes up $10; Bishop and Lone Pine Dial-A-Ride will go up $.50 across-the-board and all-day passes for Dial-A-Ride will be discontinued, but there will be a new all-day pass for the fixed route buses for $3.50 and $3 for discounted riders; town-to-town route fares will go up from $.50 to $3.50 per fare. The highest fare increases will occur in Mono County and Nevada stops. For example, the fare for Bishop to Mammoth will rise $1, and the fare from Bridgeport to Carson City will increase by $2, the fare from Holbrook Junction to Carson City goes up $3.50.
This fare increase follows a public comment period in July and August. Helm said the public hearings were “lightly attended.” Some public concerns were that the fare increases were discriminatory for not being an equal increase for all fares and the increase would be a hardship for those on fixed incomes. The board still approved the fare increases.
Executive Director John Helm explained at Friday’s meeting that payroll had been met this last pay period and will be met next week thanks to a regular payout from the Inyo County Local Transportation Fund and the monthly payment from the Town of Mammoth Lakes.
Long-term financial woes for the local public transportation provider still linger. The state budget is still awaiting confirmation, while the reduction from the State Transportation Assistance program is estimated to be approximately 60 percent.
That’s one of the reasons ESTA is working on a request for money from its member agencies, Inyo and Mono Counties, the Town of Mammoth Lakes and the City of Bishop.
ESTA has asked its member agencies for a “line-of-credit” to meet immediate cash flow needs. As reported Aug. 14, in The Inyo Register, the ESTA board requested a line-of-credit of $325,000 from its member agencies. At its Aug. 11 meeting, the Bishop City Council said it would be willing to formally consider the request provided that formal written requests be made to all of ESTA’s member agencies. At the meeting on Friday, the ESTA board approved the chairperson to sign the formal letters requesting the line-of-credit from member agencies.
“This is a loan letter, not a line-of-credit letter,” said ESTA board member and Inyo County Supervisor First District Linda Arcularius and the sole member not to agree to approve the letter. She explained her position that the letter is calling for an actual transfer of funds, not a line-of-credit. She also wondered how exactly, and with what assurance, the loan will be paid back.
Koehn explained that ESTA is preparing to pay back the member agencies before the end of the next fiscal year, even if they’re paid back with those same borrowed funds. And, if needed after further budget adjustments, ESTA will ask for more money for the next year.
“I won’t support this without calling it a loan,” Arcularius restated.
ESTA Board Chairperson and Mono County Third District Supervisor Vicki Magee-Bauer said that the definition of the fund proposal was not as important as getting the request out to member agencies during this time-sensitive period for ESTA.
ESTA board member and Fifth District Mono County Supervisor Byng Hunt said calling the request a line-of-credit would be a “selling point” for himself and the Mono County supervisors, but it needs to be a true line of credit.
Exactly how the funds from the line-of-credit will be dispersed and managed are still being worked out for the approval of the directors.
Other matters of contention between the ESTA board and ESTA operators and managers dealt with budgeting policies and logistics. Helm explained that the board is scheduled to review a range of policies at its September meeting including what ESTA should do with “unanticipated revenue” such as the line-of-credit funds.
ESTA will also be seeking direction from the board on how exactly items will be amended in budget drafts, how to amend items within a year, how funds will be amended when used from the as-needed line-of-credit.
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Last Updated ( Tuesday, 07 October 2008 )
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