A new plan to cover a big reduction in the level of transport agency funding for the Hamilton-Auckland Te Huia rail service trial – without cutting services – has been developed by regional council staff.
It involves drawing on a special Te Huia targeted rate reserve, which is estimated to hit $2.2 million by the end of the financial year.
The agency has announced a progressive reduction of the share the agency funds for Te Huia, from 75% of net costs to 60%, meaning a theoretical reduction of almost $2 million over the next two years.
A staff report to next week’s meeting of the regional council – which is responsible for Te Huia – suggests this reduction for that period could be covered by a 20% increase in fares due from July and use of the targeted rate reserve.
