Rochester, MN – At a special City Council meeting on August 24, officials presented a stark financial outlook for Rochester Public Transit. The transit reserve fund, which currently holds about $5.3 million, is projected to be exhausted by October 2030 if no corrective action is taken.
Projected Deficits and Ridership Decline
The council’s financial briefing showed that the reserve fund will be drawn down by roughly $800,000 this year. That shortfall is expected to swell to more than $1.9 million next year and approach $2.8 million by 2028. Those figures include operating costs and capital‑improvement expenses, but they do not yet account for the upcoming Link Bus Rapid Transit System.
City leaders traced the fiscal strain to a dramatic drop in ridership that began during the COVID‑19 pandemic. Before 2020, the system served over two million riders annually. Today, annual trips have fallen to about 650,000, with July’s total under 400,000—well short of the city’s goal of nearly 1.2 million rides per year.
New Contract with Via Transit
In response to the financial challenges, the council voted last month to award a five‑year, $78 million contract to Via Transit. The agreement, which takes effect in September, will replace First Transit, the operator that has managed Rochester’s buses since 2012. City officials said the transition is intended to provide a smoother operational framework and to help stabilize service levels.
While the contract promises a fresh start, council members expressed concern that the new operator will inherit a system already under pressure from reduced fare revenue and rising maintenance costs. The council will continue to monitor the reserve fund’s balance and explore additional revenue options, including potential adjustments to fare structures and seeking state or federal grant assistance.
Next Steps for City Leaders
Council members pledged to keep the public informed as the transition proceeds. They plan to hold a follow‑up hearing later this year to review the early performance of Via Transit and to discuss any further measures needed to protect the transit reserve fund.
Residents are encouraged to provide feedback on service quality and to consider using public transit whenever possible, as higher ridership remains a key factor in restoring the system’s financial health.
Original reporting: News Talk 1340 KROC-AM – News and Talk – Rochester News Radio — read the source article.
