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Updated:3/26/2012

City considers advertising as new BTA revenue stream

Revenues, combined with proposed service cuts, to balance budget

The BTA may soon be adorned with the advertisements of local businesses.
The BTA may soon be adorned with the advertisements of local businesses.

By MELISSA MARTIN

Brunswick Post editor

While city officials continue to deliberate the extent of service cuts to both the city's Brunswick Transit Alternative and Greater Cleveland Regional Transit Authority services, the city's administration says it is now exploring the possibility of using advertising as a way to bolster the revenues needed to operate the service.

Service Director Patrick McNamara said that since the city announced its plans to scale back the city's bus system and the number of runs RTA Route 451 makes to the city in 2012, the city has also been investigating the possibility of offering local companies the opportunity to advertise on city buses as a way to generate additional revenue needed to offset the bus service's operational costs.

McNamara said that at council's request, the administration is now looking to develop an advertising policy for the buses, along with a list of family-friendly businesses that would be allowed to advertise on the buses.

"Right now, we don't know how much money this plan has the potential to generate, but at least we can put it out there for bid to try and find out," McNamara said.

While the city considered increasing ridership rates, Finance Director Todd Fischer said the administration learned early on in its five-month study of operations that adjusting fares wasn't an option, given the fact that it would reduce the city's federal allocation which is used to provide the service.

If the city increases the fares, Fischer said, the amount of its reimbursement from the federal level will be less.

"But advertising revenues don't work the same way. They would not reduce the amount of money the city receives for offering the service," he said.

Fischer said the service cuts and new advertising plans are part of the administration's ongoing efforts to reduce its operating expenses while developing the cash reserves needed to purchase new buses in years to come.

The administration presented council with a list of nine scenarios, each outlining varied levels of service cuts, last month. Two of those options have been recommended for consideration.

Currently, the BTA operates two loop bus routes six days a week, running 26 hours during the week and 14 hours on Saturdays. According to the first option council is considering, the BTA service would be cut by approximately 24 percent. McNamara said the city would continue to maintain two fixed bus routes for 20 hours per weekday, and for eight hours on Saturday.

"This would save the city approximately $30,000 in income tax dollars per year and would allow the city to maintain service levels with minimum impact to the residents," he said, noting that the city would be able to budget to purchase one new bus every two years under this plan without having to tap income tax dollars.

The second option, McNamara said, would save the city approximately $77,000 in income tax dollars per year but would involve a deeper level of cuts to service.

Instead of operating both a north and south route, under this plan, the city would only run one bus that circulates through the city on a two-hour loop. The bus service would be available 10 hours per weekday and one fixed eight-hour route on Saturday.

"We would still be providing the service, but the convenience to our residents will change seriously under this plan," McNamara explained, noting that departure times would have to be altered.

As far as Route 451 is concerned, under both options the city is looking to eliminate one morning and one evening route, McNamara said.

Currently, the RTA bus service currently makes six runs between Laurel Square and the Strongsville Park and Ride, where riders can transfer to other buses that transport them to downtown Cleveland. Three routes operate from Laurel Square in the morning hours, and three routes run in the evening. McNamara said.

The city is looking to recommend that the runs with the least amount of riders are the ones that are cut, McNamara said.

City council is expected to finalize the service cuts and discuss the proposed advertising plan later this month.

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