Rock Region plans bigger budget

Bus service requests $1.1M more from partner cities, county

In this file photo passengers wait for their Rock Region Metro bus at the River Cities Travel Center in downtown Little Rock.
In this file photo passengers wait for their Rock Region Metro bus at the River Cities Travel Center in downtown Little Rock.

The agency providing bus service in Pulaski County will ask its major funding partners for a $1.1 million increase in contributions for its proposed 2020 budget compared with this year's budget.

Rock Region Metro will request a total of $14.7 million next year from the cities of Little Rock, North Little Rock, Sherwood and Maumelle and Pulaski County, about 8.1% more than the $13.6 million they are scheduled to contribute in 2019.

Overall, the agency's proposed 2020 budget is $19.9 million, which represents about a 3.65% increase over its 2019 budget, which totaled $19.2 million.

As part of the increase, Rock Region needs a boost in contributions from its funding partners -- $400,000 -- for non-operating costs, which provides the local matching money for the annual federal grants Rock Region receives.

The match typically comes from operating reserves, but those were drawn down to shore up the 2019 budget. That money needs to be replenished, said Sara Lenehan, a board member who heads the board's budget committee and is finance director for Little Rock.

Little Rock, as the largest of the agency's five funding partners, is being asked to contribute the most money, $10.1 million, or 7.45% more than the $9.4 million the agency requested for 2019.

A little more than $3 million is being sought from North Little Rock. That figure is about 7.1% more than the $2.8 million Rock Region sought from the city for 2019.

Pulaski County's contribution request goes from $1.27 million in 2019 to $1.35 million next year, an increase of about 6.3%.

Rock Region is requesting $88,907 from Sherwood and $43,771 from Maumelle, which represent 9% increases from their 2019 requests.

Lenehan acknowledged that the increase is "pretty big" at the board's monthly meeting Tuesday. "It was even bigger in our initial budget meetings. Not all of its related to ongoing operating costs. Some of it is used to replenish one-time funds used in the previous year."

Most of the proposed operating budget requests -- a total of $11.1 million -- will go to operate Rock Region's regular bus service. The streetcar service will consume another $1 million of the funding partner's contributions.

Almost $2.6 million will go toward operating Links, which is a free service Rock Region is required to offer to people who live along bus routes but have disabilities that prevent them from using regular buses.

To be in compliance with federal regulations governing that free service, the transit agency also will contract with a taxi service at an additional annual estimated cost of $156,000.

The proposed $19.9 million budget also includes 3% raises for unionized employees.

Meanwhile, agency officials project fare revenue to fall again in 2020. It projects to receive just under $1.5 million in all fare revenue next year, a 4.5% decline from the $1.57 million it projects to receive in 2019. They say low fuel prices typically drag down ridership. Streetcar service will continue to be free in 2020, they said.

There won't be any reduction in service in 2020, Lenehan said. However, a pilot project for a micro-transit service in the John Barrow Road area has proved successful and another likely will begin in the Riverdale area, she said.

Micro-transit involves stationing a small van-like vehicle in the area in lieu of regular bus service. Riders can call for a point-to-point pickup that can take them to a bus stop on another route.

The proposed budget comes during an in-depth study of Rock Region's operations, including the way it is funded.

The agency's board discussed the proposed budget Tuesday, but won't vote on it until its Nov. 19 meeting.

Metro on 10/23/2019

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