Taxi fares in Shawano could be increasing in 2025, but the city-owned company is still being examined to see if it is necessary.
City Finance Director Greg Smith told the Shawano Common Council on May 8 that there is a possibility the fares could increase 50 cents next year, although a $1 increase in the fares could not be ruled out. This would the first time fares have increased since the city started its taxi service in 2008.
Current fares are $4 for adults and $3 for seniors, students and disabled passengers within the city of Shawano for rides up to 8 miles. Shawano County contributes $1.25 to rides for seniors and disabled, according to Smith, so that reduces the amount they pay when they need to do grocery shopping, travel to medical appointments and go to other places in the city.
“The fares have been flat for 16 years,” Smith said.
The city has a contract with Running Inc. from Viroqua to manage the cab service, Smith said. Final numbers are being tallied, but Smith estimated the city will have either a minimal surplus from its first quarter or a deficit up to $10,000. The city estimated $443,000 in revenues for January through March in its report to the Wisconsin Department of Transportation, a jump from the $378,000 collected by the city for the same time period last year.
“It’s a pretty significant increase,” Smith said of the revenue. “State and federal funding should be about 54% of that, so we have to come up with the remaining amount, which is a little over $220,000. That’s the local match we need to cover.”
Smith noted he’s reaching out to the county to see if there is any leeway to increase the amount paid for senior and disabled fares, but that’s still a work in progress. He said that two-thirds of the ridership falls into those two categories.
“Roughly about 2,000 rides are in that age range or demographics,” Smith said. “They could be fixed-income people.”
Having the increase on fares would reduce the amount of money the city has to reimburse Running for its expenses. Smith believes that the increase of 50 cents to $1 would make a big difference, although he thinks the 50-cent hike might be more palatable, especially for the senior riders, as their payment to drivers would be $2.25.
“I’m just giving you a heads-up and letting you know that we’re working on this,” Smith said. “I feel that, in future years, with the cost of everything going up, federal and state funding has not matched this. We either do an increase in funding from the city coffers, the tax levy, or we raise fares or do a combination of both.”
The city cannot extend its existing hours because it would require rebidding the contract, by state law, Smith said. He noted there were a few complaints in the first month that Running took over the service, but it has been smooth sailing ever since.
Any fare increase would require a 30-day notice, according to Smith, as well as a public hearing.
lpulaski@newmedia-wi.com
