STA approves $63 million 2005 budget
The Spokane Transit Authority Board unanimously passed Thursday its $63 million 2005 budget.
The budget provides funding to expand fixed route bus service by 10 percent starting in September and to purchase 50 new buses and six vans.
“We’ve lagged somewhat behind in vehicle replacement,” said Finance Director Jim Plaster, who added that some of STA’s buses are 19 years old.
Many of the new buses will be smaller to more efficiently serve routes with lower ridership.
The budget is a more than a 40 percent increase over STA’s 2004 budget, but a large portion of the difference can be attributed to the vehicle purchases as well as $3 million set aside to help local governments with street projects along transit routes.
“One of the criticisms I know the city of Spokane heard when we were trying to fix our streets, is ‘Why doesn’t Spokane Transit participate? They’re using and tearing up or streets with their big heavy buses,’ ” said Al French, an STA board member and Spokane city councilman.
When capital costs are set aside, STA’s operating expenses are budgeted to increase by 11 percent next year.
After years of draining its reserve account to make up for funding it lost when state residents voted to reduce the cost of car license tabs, STA is building its reserve back up by $5.3 million, for an expected total of $11.7 million at the end of 2005.
In 2007, the board will decide whether to use some of that reserve to fund additional service, other projects or cut STA’s sales tax levy by 0.1 percent ($1 on a $1,000 purchase).
Voters earlier this year approved a 0.3 percent sales tax increase to preserve transit service. It was more than was needed, but 0.2 percent would not have been enough.
The state only allows transit agencies to seek tax increases in 0.1 percent increments.
A healthy reserve is necessary to protect STA in the event of a drop in sales tax revenue, said board member and Spokane Valley Councilman Dick Denenny.
Other board members also pointed to the almost $6 million STA will receive next year in federal maintenance funding as reason to be careful. Those revenues aren’t guaranteed to continue in 2006.
“We will not see our reserves grow to a large amount,” said Plaster.