FY2025 Operating
Budget Review &
Fare Strategies
Transportation-Transit
March 19, 2024
• System Characteristics
• Key Accomplishments
• FY2025 Base Budgets
• FY2025 Wake Transit
• FY2025 Fare Policy Considerations
Agenda
System Characteristics
• Operated by RATP Dev since April 23, 2023
• 34 GoRaleigh and 4 Contracted routes
• 116 buses
• 201 Operators, 43 Maintenance Technicians
• Current ridership averages 85%-90% of pre-
pandemic totals
• 4,539,125 total passenger trips performed in FY23
Current GoRaleigh System
• Operated by RATP Dev since June 30, 2023
• 20 GoRaleigh Access vehicles
• <10% of trips
• 42 Taxi operators (177 vehicles total)
• 90+% of Trips
• Provides 1,200 daily trips
• 819,395 total passenger trips performed in FY23
Current GoRaleigh Access System
Key Accomplishments
• Milestone of 76 CNG buses and 5 electric buses
in GoRaleigh fleet, 70% of fleet zero or near zero
emissions
• Improved 28 full shelter buildouts and added
seating at an additional 15 bus stops (includes 6
enhanced bus stops)
• Awarded design services contract for 250 bus stops
• Began construction contract with 49 additional
shelters
Transit Key Accomplishments
• Southern Corridor (BRT) recommended for federal funding in amount of
$85.91 million from the FTA in March 2023
• GoRaleigh hosted a groundbreaking event on New Bern Avenue to kick
off construction of the first BRT corridor in North Carolina
• Bid advertised on March 5, 2024
• Completed a 230 space Park & Ride lot at Bus Way with 12 EV chargers
and capacity for an additional 12 chargers
Transit Key Accomplishments
Base Budgets
• Transit – Day-to-day management of the bus system. Expenses include personnel
and administrative costs, bus operations, and preventive maintenance.
• Paratransit – Day-to-day management of paratransit services. Expenses include
personnel, general administration, and contracted services.
• Planning – Short range and project planning functions.
• TDM (Transportation Demand Management) – Plans and promotes alternative
transportation options.
• Wake County Transit Plan – Regional initiative to expand and better connect the
public transit network throughout Wake County.
Transit develops five primary program budgets annually:
Transit Program Budgets
Farebox revenue collected in FY19 was approximately $3M.
FY 24 Budgeted Revenues
FY24 Budgeted Expenses
Federal Funds
$13.5M
Personnel
$2.1M
General Fund (COR)
$17.4M
Contractual Services
$2.3M
WTP, State Funds
$23.8M
Service Contract
$50.8M
Advertising, Other
$2.2M
Other Expenses
$1.7M
Total
$56.9M
Total
$56.9M
Current GoRaleigh Fixed-Route Finances
Farebox revenue collected in FY19 was approximately $900,000.
FY 24 Budgeted Revenues
FY24 Budgeted Expenses
Federal Funds
$6.8M
Personnel
$0.7M
General Fund (COR)
$4.3M
Contractual Services
$0.8M
WTP Funds
$2.2M
Service Contract
$11.8M
Total
$13.3M
Total
$13.3M
Current GoRaleigh Access Finances
• City of Raleigh allocated $51M in FTA relief funding – 97%
programmed for operating support (driver salaries, preventive
maintenance, paratransit service trips)
• Transit has utilized relief funding to support operations each
fiscal year beginning in FY21. Anticipate spending all relief
funding in FY24.
• Combination of rising costs and depletion of relief funding
expected to result in FY25 General Fund budget deficit of $8.2M
Relief Funding
FY23 Actuals
FY24 Adopted
FY25 Budgeted
FUND 410
– TRANSIT OPERATIONS SUMMARY
Direct Revenues by Type
Total Transfer/Reimbursement from Other Funds
17,251,945
17,620,434
17,972,850
Total Miscellaneous Fees & Charges
100,678
10,000
10,000
Total Public Transit Revenues
11,959,875
24,562,100
28,952,526
Total Other Miscellaneous Revenues
296,880
205,000
205,000
513170
– State Grants
3,041,187
3,000,000
3,000,000
513170
– Federal Grants
9,178,278
5,412,634
-
TOTAL
$41,828,843
$50,810,168
$50,140,376
Direct Expenditures by Type
Personnel
1,411,376
1,576,140
1,676,199
Employee Benefits
609,900
709,425
782,932
Operating Expenditures
37,356,772
47,545,234
54,835,615
Special Programs and Projects
175,699
57,758
61,203
Capital Projects Expense
-
43,346
-
-
Interfund Expenditure
910,738
921,611
995,428
TOTAL
$40,421,139
$50,810,168
$58,351,377
FY2025 Base Budget Highlights
• GoRaleigh Access is experiencing double digit increases year over year for ridership
and cost. Totals shown are average monthly cost.
$631,776
$693,485
$626,617
$658,221
$829,586
$1,000,000
$667,226
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY18 FY19 FY20 FY21 FY22 FY23 FY24 to Date
Paratransit Taxi Costs (Average Monthly)
• New GoRaleigh fixed route contract
structure
• New Collective Bargaining
Agreement (CBA)
• New GoRaleigh Access paratransit
software
• Passenger and Driver Security
• Return to fares
FY2025 Base Budget Influencers
• Funding would enable GoRaleigh bus service to continue operating at current
levels. Amount requested assumes fares are reinstated on July 1, 2024.
• Factors contributing to need:
• Transit’s General Fund contribution was reduced by $3.2M (14%) in FY21.
This reduction has carried forward to date; gap has grown to $4.1M in FY25.
• GoRaleigh experienced significant service cost increases during post-COVID
inflationary period.
Supplemental
Amount
GoRaleigh Fixed Route Bus Service (General Fund)
$8,211,000
FY2025 Supplemental Requests
Supplemental GoRaleigh Bus Service
• Different contract structure with new fixed route vendor.
• Anticipate approximately 15% increase in service costs from FY24
to FY25.
• Federal relief funding was used in FY21 - FY24 to help pay fixed
route operating costs. Will be fully expended in FY24.
• Will enable the City to maintain its baseline obligation for
service hours and dollars as a Wake Transit Plan partner
• Supplemental includes Fare Projections in FY2025
Wake Transit Investments
• Wake Transit Plan Investment in new or improved GoRaleigh routes
• $13,400,000 annually
• This equals 35% of the GoRaleigh Fixed Route budget
• 17 routes have received new service or increased frequencies
• Provided 81 new expansion/replacement buses (CNG and Electric)
• $48 million investment in Low/No Emission buses to date
• $52 million programmed investment in future expansion and
replacement vehicles through FY30
• Projected to have 250 Operators and 55 Maintenance Technicians by FY30
Wake Transit Plan Investments
Supplemental
Amount
Wake Transit Plan
– Route 11 Avent Ferry*
$759,690
Wake Transit Plan
– Route 12 Method*
$61,008
Wake Transit Plan
– Route 3 Glascock*
$281,463
Wake Transit
Plan – Route 7L Carolina Pines*
$25,330
Wake Transit
Plan – Rolesville Microtransit*
$296,000
Total
$1,423,491
*Expansion service 100% funded through Wake Transit Plan
FY2025 Wake Transit - Operating
Project
Amount
Fixed Route & Paratransit Vehicles
$13,843,001
Midtown Transit Center
$569,000
Enhanced Transfer Points & Bus Shelters
$3,241,000
GoRaleigh / GoWake Access Paratransit Maintenance &
Operations Facility
$21,320,000
Southern Corridor BRT
$45,000,000
Western Corridor BRT
$15,000,000
Northern Corridor BRT
$5,000,000
Total
$103,973,001
FY2025 Wake Transit - Capital
City of
Raleigh
63%
Wake
Transit
35%
Other 2%
City of
Raleigh
39%
Wake
Transit
60%
Other 1%
Fixed Route Only
Other = Contracted
Services (GoTriangle,
Wake Tech, & Wake
Forest)
FY2023 Operating = $38.5 M
FY2030 Operating = $63.0 M
City of Raleigh vs. Wake Transit Budget
Comments/Questions on Budget
• Background
• Pre-COVID Fare Structure
• Low-income Fare Program
• Issues and Considerations
• Peer Review
• Communications
• Options
Fare Strategy - Outline
Background
GoRaleigh 2023 On Board Survey
GoRaleigh 2023 On Board Survey
GoRaleigh 2023 On Board Survey
GoRaleigh 2023 On Board Survey
October Origin/Destination Survey
Source: Fall 2023 Origin/Destination Survey
Yes
57.5%
No
42.5%
Yes
90.1%
No
9.9%
Q. Did you ride the bus prior to
when riding the bus was free?
Q. Will you continue to ride the
bus if it is no longer free?
Pre-Covid Fare Structure
• March 2020 - Covid-19 pandemic begins, all local transit
agencies suspend fares
• Bus Operator Safety
• Began rear door boarding/departure only
• Fare collection forces close contact with public
• Driver barriers installed for additional operator safety
Why were fares suspended?
Regular Fare
Reduced (½) Fare
Single Ride
$1.25
Single Ride
.60 cents
Day Pass
$2.50
Day Pass
$1.25
7 Day pass
$12.00
7 Day Pass
$6.00
31 Day Pass
$40.00
31 Day Pass
$20.00
Senior Citizens (65+)
FREE
Senior Citizens (65+)
FREE
Children 18 & under
FREE
Children 18 & under
FREE
ADA ACCESS Trip
(2 X's Base Fare)
$2.50
GoRaleigh Fares – Pre-Covid
• Senior Citizens 65+ ride free - Policy
• Children 12 and under ride free - Policy
• Teens 13-18 ride for free with the Youth GoPass program (Wake Transit Sponsored)
• GoPass programs (Employer / University Paid)
• GoRaleigh offers 25% discount to non-profits for bulk purchases. 100k passes sold
through this program in 2019. Typically distributed at no cost to clients.
12% of total annual ridership ride at a 50% discount through our existing Reduced
Fare policy (Persons with Disabilities & Medicare card holders)
32% of total annual ridership rode FREE thru existing programs
GoRaleigh Fares – Pre-Covid
• Youth GoPass Program – Wake Transit
• State Government – NCDA
• NC State University – NCSU Transportation
• Wake Technical Community College – Wake Tech
• Downtown & Beltline Employers – Various
GoPass Contracts
• Remain Fare Free
• Implement Pre-Covid Fare Structure with
• Mobile Ticketing / Fare Capping (Program Ready)
• Guaranteed Weekly / Monthly Max Payment
• Income Based Fare Free pass program
• Increase Base fare by $.25 to align with peers and cover
costs associated with increased fare collection fees
What are the options?
Low Income Fare Free Program
• Staff meeting with Wake Continuum of Care Providers.
• Oak City Cares
• Healing Transitions
• Urban Ministries
• A.J. Fletcher Foundation
• Haven House
• S Wilmington St Men's Shelter
• COC Members are willing to assist and or manage pass distribution
• Staff working with Wake Transit Plan TPAC and GoTriangle to fully
develop program (potentially including fare reimbursement)
• Access (ADA) Riders eligible for Low Income Fare Free Option (Proposed)
Low Income Fare Program
Existing Low Income / Agency Options
• Fare Capping - Incremental purchases equal longer term free fare options
• Mobile ticketing - Incremental options available via phone or contactless
smart card. (weekly - monthly fare capping options)
• Agency pass discounts for bulk purchases
• Existing free fare for Seniors / Student GoPass / Youth
• Medicare Half Fare – Federal Requirement
Issues and Considerations
• Pre-Covid, GoRaleigh eliminated or abated fares for 40% of its customers
• Current Costs to Collect Fares
• $350,000 Annually, Pre-Covid
• Contracted revenue via GoPass and other contractual revenue
arrangements are not possible with free fare
• New technologies provide unprecedented flexibility and convenience
but do come with increased fees beyond initial purchase
• For example, per swipe charges
• Tap and Go – Europay, Mastercard, Visa (EMV) under review for future
implementation
• Wake Transit Model will have significant long-term
impacts due to the loss of fare revenue. Capital projects will
be delayed in the model to cover shortfalls.
• November 2022, Raleigh Transit Authority (RTA) voted 6 to 2 in
favor of reinstating fares
• RTA contacted by bus operators in favor of reinstating fares due to
existing challenges on buses
• RTA informed of fiscal challenges in FY2025 and beyond
Issues and Considerations
• Improved trip generation - “Ridership”
• Reduction/elimination of fare collection
costs
• Potential decrease in delays, improvement
of on-time performance
• Potential decrease in disputes over fares
• Increased Accessibility / Equity
• Reduces barriers / simplifies access
POSITIVE NEGATIVE
• COR General Fund Impacts (2025 financial shortfall)
• Misalignment with regional partners’ fare policy
• Impacts on Wake Transit Plan Financial Model in future
years (deferral of WTP capital projects)
• Higher number of non-destination riders
• Increased negative rider/operator interactions
• Some users stop riding due to perceived safety
concerns
• Loss of operators due to working environment
What potential positive and negative outcomes
of fare free service?
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
TriMet -
Portland
King County
Metro Seattle
RTD Denver GoTriangle CATS
Charlotte
Valley Metro
Phoenix
COMET
Columbus SC
WAVE -
Wilmington
Greensboro GoRaleigh GoDurham
2023 Peer Bus Fares – One Way Trip
GoTriangle Increasing to $2.50 in July 2024
Current Peer Bus Fares
Pre
-Covid Fare
Proposed Fare
Single Ride
$1.25
Single Ride
$1.50
Day Pass
$2.50
Day Pass
$3.00
7 Day pass
$12.00
7 Day Pass
$14.50
31 Day Pass
$40.00
31 Day Pass
$48.00
Senior Citizens (65+)
FREE
Senior Citizens (65+)
FREE
Children 18 & under
FREE
Children 18 & under
FREE
ADA ACCESS Trip
$2.50
(2 X's Base Fare)
$3.00
Adjust Fares to Improve Cost Recovery
• Any fare increase above Pre-Covid levels will be difficult to
project
• Fare elasticity models are not valid under current
circumstances
• Very modest increase in fare revenue in year 1
• Contractual opportunities with base fare remain best
opportunity for revenue growth
• 20% increase in fare may result in approximately 180K in year 1
Base Fare Considerations
• Considerations for resumption of fare collection
• Staff training and equipment readiness takes time
• Development of targeted pass / fare strategies,
low income, employer, university, etc. are underway
• July 1, 2024 start date is feasible; however, notification
needed to align with GoTriangle on advertising and
outreach
• July 1 soft start with at least 60 days of education
and outreach
Timing
• Community engagement events
(meeting people where they are)
• Display bus digital monitors
• Ike Kiosk Downtown
• Newsletters
• Paid targeted media
• Press release
• Radio ads
• Signage at GoRaleigh Station
• Social media posts and reels
• Video creation
Communications
• Remain Fare Free
• Implement Pre-Covid Fare Structure with
• Mobile Ticketing / Fare Capping (Program Ready)
• Guaranteed Weekly / Monthly Max Payment
• Income Based Fare Free pass program
• Increase Base fare by $.25 to align with peers and cover
costs associated with increased fare collection fees
What are the options?
Discussion
Thank You
Transportation-Transit
March 19, 2024
