MTD chief says tax levy will rise 2.5 percent or less

CHAMPAIGN — Champaign-Urbana Mass Transit District officials expect to ask for no more than a 2.5 percent increase in property tax revenue next year, MTD Managing Director Bill Volk told the transit district board Wednesday.

The MTD board will vote on the property tax levy at its Dec. 7 meeting, board members decided. In the current year the MTD had a $6.4 million property tax levy.

"Last year our levy was up 1.5 percent and I would expect it to be in that vicinity," Volk said, "certainly no more than 2.5 percent."

As long as the tax levy increase is less than 5 percent, he said, the MTD does not have to hold a special public hearing or publish a so-called "black box" public notice in the newspaper.

Ridership in August was 787,817, a record for the month and about 10 percent greater than a year earlier, Volk said.

Operating revenue for the month was $419,083, about 6.6 percent greater than August 2010. Operating expenses were $2.4 million, or about 11.5 percent greater than August 2010. The difference between operating expenses and revenues is covered mostly by state aid and property tax revenu, Volk said.

Expenses were high, he said, because diesel fuel costs are up 40 percent, there were three August payroll dates and 10 additional employees are on the MTD's health insurance roster.

September ridership also has been strong, he said, with 11 days of 50,000-plus riders, including the last four weekdays. Last year the MTD had only one 50,000-plus day in September.

"We're a little bit concerned about overcrowding and responding to cold weather," said Volk. "It has to be a concern because we are running 3,000 or 4,000 passengers a day above what we did last year. And this is in September, which was a mild month. And so the potential is out there for more.

"We have some room to handle this new capacity. But day-in and day-out of carrying that many, it puts a strain on everybody, trying to be safe and maintain schedules."

Also Wednesday, board member learned that 13 new 40-foot hybrid buses have been ordered and that some will be received by the end of December. Karl Gnadt, the MTD's director of marketing development, said the buses will replace existing 40-foot buses that are about 15 years old. Some of the older buses may be retained, Volk said, adding to the current 99-bus fleet.

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