Saint John Transit could record a deficit of up to $1.2 million if passenger limits remain in place for the rest of the year.
The limits, put in place to meet physical distancing requirements, mean only nine passengers plus the driver can be on any bus at once.
Marc Dionne, the general manager of Saint John Transit, said most of their runs are operating at maximum capacity.
“We are leaving behind about 70 to 100 passengers a day,” Dionne told the city’s finance committee Thursday, noting those passengers have to wait for the next available bus.
The reduced ridership has cut Saint John Transit’s cash fare revenues in half, according to Dionne, who said the commission is already facing a deficit of more than $378,000.
Dionne said they have laid off several employees and reduced their service hours to help close the shortfall. The city would be on the hook for any deficit faced by the transit commission.
City manager John Collin said they have reached out to the province asking to have the passenger restrictions loosened.
“I do believe in the not-too-distant future we will receive permission. It will require people to wear masks on our bus, but that’s a small inconvenience to increase the passenger load,” said Collin.
During Thursday’s meeting, the commission asked the city for a $200,000 increase to its annual operating subsidy in June to ensure it remains “cash-flow positive”.
But the committee instead endorsed a staff recommendation to advance the commission’s July operating subsidy of $491,323 early in June. Commission members will come back to the committee in early July with updated year-end projections.
Mayor Don Darling made several suggestions to the transit commission, which included raising fares.
“Secondly, what further cost reduction could happen, and thirdly, would it be better to cancel some routes altogether and focus on a more dense area,” said Darling.
Dionne said they have not yet discussed raising fares, but notes it could be part of a transit review currently being undertaken in Stantec. He said they hope to have a report back in August.
