The bulk of a $6.9-million surplus from last year's operating budget is likely to go to subsidized transit initiatives aimed at getting more kids, teens, and low-income Londoners on the bus.
The corporate services committee backed a report from city staff on Tuesday to have $5-million of the surplus money used to fund free bus rides for kids 12 and under, $52 bus passes for low-income adults, and discounted passes for teens.
While the free passes for kids is a permanent initiative, the other two are two-year pilot projects that funding had yet to be allocated for.
"What we have here is a surplus that is sizable enough to basically set that money aside and ensure that we don't run into problems backing those programs over the next couple of years," said Councillor Josh Morgan. "In other words, we have the money now and I feel it is very responsible to set it aside and assure that those programs are funded through the course of the pilots that are being run."
The city began issuing subsidized passes to low-income adults in January. The pilot project offering discounted teen passes is set to begin in September.
By the end of the pilot projects, Morgan believes council will have enough information to determine whether the city should find long-term funding to permanently adopt the transit initiatives.
"At that time we will have all sorts of data about how many people are using this, how do they feel about it, is it having an impact on ridership, all of the metrics that will allow us to make a good decision on whether it's a sound investment to continue on in the future," said Morgan.
In the face of those who argue surplus dollars should be returned to taxpayers, Morgan noted the one-time money does more good when poured back into city programs.
"It is not responsible to hand back a cheque that might be just pennies on the dollar to taxpayers," said Morgan. "The way that we can do that is by investing in these programs, make sure that they are funded so that we are not seeking future operating dollars or reducing our capital infrastructure gap. Those will create long-term savings for Londoners because they are responsible investments that defray future costs."
The remaining $1.9-million surplus money will be divided between the Community Investment Reserve Fund, the Capital Infrastructure Gap Reserve Fund, and reducing the city's authorized debt.
Council will decide whether to approve the surplus recommendations at next week's meeting.
