Tuesday’s meeting in Ngaruawahia of Waikato District Council’s Roading & Transport Committee will consider options for increasing Raglan bus fares. This increase is being recommended even though research by WDC indicates that Raglan bus users appear to be subsidising Hamilton and other Waikato bus users who pay an average of 32% of the total operating costs. Raglan bus users currently pay fares equal to 40% of costs and the WDC now propose to increase it to 41.8% while Hamilton bus fares will not increase.
The reason for the increase given by the Councils is the additional cost of extending the Te Uku bus service through to Raglan each day. This is currently being provided by Go Bus on a complimentary basis as their driver lives in Raglan.
It seems that the two Councils are now being asked to pay $30,214 so Go Bus can park their bus in Raglan overnight rather than park it at Te Uku and wish to pass this cost onto bus users.
The Waikato Regional Council and the Waikato District Council have come up with four alternative fare increases:
- Raise the average child fare to the same as the adult fare, which would generate an estimated $23,473 in revenue over a one year period. Shortfall in revenue is estimated at $6,741. This option is not recommended due to the increased burden when a number of children from the same family travel by bus. The fare box recovery rate would then rise to 42.5 per cent.
- Raise the average child fare to a new level below the adult fare, which would an estimated $17,728 in revenue over a one year period. Shortfall in revenue estimated at $12,486. This option is not recommended due to the increased potential burden on local ratepayers. The fare box recovery rate would then 41.1 percent.
- Raise the average adult fare, which would generate an estimated $13, 092 over a one year period. Shortfall in revenue is estimated at $17,122. not recommended due to the likely resultant downward trend in in-turn would force more cars on the roads and place an increased on local ratepayers. The fare box recovery rate would then remain at 40 percent.
- Raise all fares, which would generate an estimated $20,479 in revenue over a one year period. Shortfall in revenue is estimated at $9,735. This option is recommended due to having the least negative impact for patrons while limiting the potential to increase the burden on local ratepayers. The fare box recovery rate would then to 41.8 per cent.
Option 4 is the one recommended by Council staff to the committee. The report being considered by the committee does not state the percentage increase proposed or what the new fares would be for this option. Council staff want to increase the fares in time for fourth school term. Prior to this they propose undertaking limited consultation with bus users and the Raglan Community Board.