GATEWAY expects losses
By Ethan Smith
Published in News on November 10, 2014 1:46 PM
GATEWAY expects to lose nearly $1 million this fiscal year, but officials with the agency say the loss was anticipated and simply comes with operating a public transportation system.
"It's either that or we leave some of these folks without any transportation," said GATEWAY chairman Gene Aycock at a meeting last week. "It's just like public schools don't make you any money because you're providing a public service."
GATEWAY's urban operation posted a net loss of more than $237,000 for the first financial quarter of the 2014-15 fiscal year.
The figures are not cause for alarm, GATEWAY interim director Fred Fontana said, but that did not assuage board member Joe Daughtery, who asked for copies of the system's QuickBooks files to see the budgeting for himself.
Due to the nature of the operation, board members said, losses are posted every year, at least until the city of Goldsboro steps in to subsidize the system.
Board member William Goodman said the system is operating in good shape.
"We realized from the very beginning when we started a public transport system that it wasn't a money making system," he said.
There was also a discrepancy between the total number of urban passengers for the first financial quarter and the amount of revenue brought it from the $1 fee riders must pay.
There were 62,378 passengers during the first quarter, but a revenue of only $42,025.
Fontana said this is because the total number of passengers includes those that only pay a one time fee, and are allowed to transfer between routes without having to pay twice.
GATEWAY's rural operation posted a marginal profit for the first financial quarter but one-time expenses are coming during the second quarter, which will reduce the profit, Fontana said.
During the meeting, the board went into closed session to discuss personnel issues, as Fontana is only scheduled to serve as interim director through Dec. 31 of this year.
No motion was made to take action on personnel matters when the board came out of closed session.