UTA riders may face a 25¢ fuel surcharge

To combat rising fuel prices, the Utah Transit Authority may implement by December a temporary 25-cent surcharge on all one-way transit rides.

The surcharge would be in addition to a permanent fare increase scheduled for January. It would not apply to paratransit riders or passes provided to homeless service agencies. Monthly pass holders and TRAX riders would be affected.

On Wednesday, members of the planning and development committee of the UTA Board of Trustees directed the UTA staff to move forward on planning for the surcharge, which is included in a preliminary 2006 budget. Next week, all members of the UTA board are scheduled to approve or reject the draft budget, which also includes $1.8 million in net reductions to bus service.

Approval on a final budget — the surcharge and service cuts — is not expected until December.

UTA general manager John Inglish cited rising costs for labor, materials and diesel fuel as reasons for the surcharge and cuts to bus service. Fuel costs have provided the biggest hit to UTA's budget in recent years.

"That is our nemesis," Inglish said. "We would be in good shape if not for fuel price increases. Every year we have had to tighten our belt."

This year, UTA anticipates spending $9.5 million on diesel fuel; the agency budgeted $6 million. In 2006, the tentative budget calls for a $12.5 million fuel budget.

With the surcharge, Inglish says UTA will have funds to meet necessary expenses, currently budgeted at $140 million for 2006. If gas prices go down, the surcharge would be eliminated, said Inglish.

Current plans call for a six-month review of the surcharge.

"I feel good about this," Inglish said. "I think it's a smart idea. I'd rather see a temporary hit than a long-term hit."

While reviewing the 2006 budget, UTA board members were asked to consider two options to recoup losses from rising fuel prices: a 10-cent fare increase or the temporary surcharge. With some qualifications, all members in attendance said they would support the surcharge over a fare increase.

But the surcharge may be a costly gamble.

At present, overall UTA ridership has increased because of high fuel prices. From August to September this year, TRAX ridership increased by 35 percent. During the same period last year, the increase was only 20 percent.

By raising rates and proposing cuts to bus service, ridership could decrease. UTA has set a goal to increase annual ridership in 2006 by 815,000 people.