Transit commission requests $455K from city for next year

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More than half of the Miramichi Public Transit Commission’s operating budget next year will be funded by the City of Miramichi if council approves the commission’s funding requests.

Jason Babineau, the commission’s general manager, presented the proposed $568,000 budget for 2024 to city council Oct. 17. He said the commission is seeking a $350,000 operating grant from the municipality, along with $85,000 to replace a bus in its fleet and $20,000 to implement its new strategic plan.

That brings the commission’s total request to city hall to $455,000.

“Much like other cities in New Brunswick that have public transit, in Miramichi it is an essential service that provides affordable, reliable, and necessary transportation for a growing population,” said Babineau.

“Miramichi is unique in its geography, however, and has hurdles requiring unique solutions. We hope to address these with help from our newly adopted strategic plan.”

Babineau said the commission expects to maintain its current levels of service next year, while building the required infrastructure to offer expanded service, increased operating hours, and serve the city’s increasing population. He said concerns about inflation, and rising fuel costs, continue to affect the commission’s daily operations, and the 2024 funding requests take that into account. The operating grant being sought is up from $320,000 in 2023.

Babineau said the commission’s request for capital funding is coupled with the funding provided by the federal government in 2021 to cover up to 40 per cent of the cost of replacing outdated buses.

“Our capital budget request to replace an aged transit vehicle is essential to keep our fleet current and sustainable for 2024,” he said in a letter to Mayor Adam Lordon and council.

“This ask is part of the five-year Miramichi Transit fleet replacement plan, which has already been discussed with city staff. This plan follows the city’s recommendations to establish funds for future transit capital needs.”

Babineau said revenue projections are in line with ridership and revenue growth recorded to date in 2023. He said ridership has been increasing each month and has surpassed pre-pandemic levels, and that’s being reflected in passenger fares, advertising, and charter bookings. Although the charter license has lapsed, the commission is in the process of renewing it, and Babineau said local charters around the city and outlying areas can still be provided within a limited radius.

In addition to the grant sought from the city, the commission’s proposed operating budget includes a projected $150,000 in revenue from passenger fares and passes, $40,000 from advertising and bus wraps, and $28,000 from charters. Expenditures include $3,500 for advertising and promotions, $35,000 for insurance, professional fees, accounting, and travel, and $12,000 for office supplies, phone, business fees, and bank charges.

Other projected expenses include $55,000 for bus repairs, shop and shelter maintenance, and snow removal, along with $240,000 for driver salaries, charter expenses, and taxes, $93,000 for office salaries and tax expenses, $2,300 for driver uniforms, $122,000 for bus fuel, $2,000 for consignments and ad sales commissions, $200 for pandemic supplies and contingency, and $3,000 for GPS tracking equipment.

On top of the amounts requested from the city, Babineau said the commission hopes to receive a combined $110,000 from the provincial and federal governments and the Federation of Canadian Municipalities.

Lordon said he believes supporting transit is a good investment and is pleased to see ridership rebounding from the decreases seen during the pandemic. He said the commission’s requests will be considered during council’s budget deliberations in the coming weeks.