AGENDA #2b
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Mary Lou Kuschatka, Transportation Director
SUBJECT: Fare Adjustment for Tarheel Express Service
DATE: June 12, 2002
A Council Member asked that we review fees charged for Tarheel Express service.
Chapel Hill Transit operates special Tarheel Express bus service for some University sporting events. This service consists of a shuttle from Franklin Street and express bus service from four park and ride lots to the University campus.
Tarheel Express fares currently are $4 round trip, $2 one-way from the park and ride lots and $3 round trip, $2 one-way for the Franklin Street shuttle. We project that Tarheel Express service will produce about $170,000 this year and about $180,000 in 2002-03, compared to $216,000 in 2000-01 (when the basketball team was winning more games). Revenue from Tarheel Express service benefits the transit partners (Chapel Hill, Carrboro and the University) by either reducing the amount that the partners have to pay to support the system or by increasing the amount that is contributed to the Transportation Fund Balance. A 25 per cent fare increase would generate increased revenue of about $45,000 if there were no decline in demand. In case there is a decline in the ridership on the Tarheel Express, we would anticipate an increase in revenues of about $40,500.
This increase would result in fares of $5 round trip, $3 one-way from the park and ride lots, and fares of $4 round trip and $2 one-way for the Franklin Street shuttle. Although there may be some reduction in ridership due to the increase, we feel it will be negligible due to the advantages provided by this type of operation.
Based on the above, it is recommended that Tarheel Express fares be set as follows:
Franklin Street Shuttle $4 round trip, $2 one-way
Park and Ride Lot Shuttles $5 round trip, $3 one-way
This change would be effective with the implementation of the fall schedule, August 18, 2002.