Laserfiche WebLink
<br />38 <br /> <br />TUESDAY <br /> <br />MAY 31, 1977 <br /> <br />Cost Projections: <br /> <br />The cost of free bussing to the tax payers depends on the following <br />four factors: <br /> <br />(1) Revenue lost due to no paying riders. <br />(2) Incremental operating costs incurred due to additional <br />runs necessary as a result of increased ridership. <br />(3) Capital costs required if the city decides to operate <br />with more than 24 busses. <br />(4) Reimbursement from the state. <br /> <br />(l) Revenue Lost Due to No Paying Riders: <br /> <br />Mr. Yeaman estimates that in fiscal '77 revenue received from <br />paying riders will total $35,245. <br /> <br />(2) Incremental Operating Costs Incurred Due to Additional <br />Runs Necessary as a Result of Increased Ridership: <br /> <br />Mr. Hopkins makes the following incremental costs estimates <br />comparing current costs to costs if the ridership increases to <br />3079 students: <br /> <br />Equipment, Operations, Maintenance <br />Insurance <br />Gas, Grease, Oil <br />Tires and Tubes <br />Drivers <br />Social Security <br /> <br />Current Costs <br />9,500 <br />8,600 <br />l4,675 <br />2,300 <br />66,645 <br />6,460 <br />108,180 <br /> <br />New Costs <br />l4,250 <br />9 , 8 00 <br />22,000 <br />3,500 <br />75,600 <br />7,000 <br />132,150 <br /> <br />Increase <br />4,750 <br />1,200 <br />7,325 <br />1,200 <br />8,955 <br />540 <br />23,970 <br /> <br />If ridership increases to 3079 pupils, it is anticipated that operating <br />costs will increase by $23,970. <br /> <br />Summary: <br /> <br />Minimum forecast <br />Maximum forecast <br /> <br />zero increase <br />$23,970 increase <br /> <br />(3) Capital Cost Required If the City Decides to Operate With More <br />Than 24 Busses: <br /> <br />I have included no capital costs in my estimates as the city has <br />budgeted busses to get to the 24 that may be needed under the maximum <br />forecast. Of course, periodic replacement will be necessary. <br />