05/31/2019 South Ferry Report (PDF)
SUFFOLK COUNTY LEGISLATURE Robert Lipp BUDGET REVIEW OFFICE Director May 31, 2019 Honorable DuWayne Gregory, Presiding Officer, and Members of the Suffolk County Legislature William H. Rogers Legislature Building 725 Veterans Memorial Highway Smithtown, New York 11787 Dear Legislators: The attached report presents the Budget Review Office analysis of the financial and statistical data presented by South Ferry Company, Inc. in support of its petition for a rate increase in 2019. Procedural Motion No. 17-2019 authorizes the public hearings for the rate approval, and if adopted, Introductory Resolution No. 1534-2019 authorizes the requested rate increases. The Budget Review Office conducted a thorough review of the certified and audited financial statements prepared by an accountant with satisfactory peer review status. South Ferry Company, Inc. last received a rate increase in 2012. The petitioner requests an increase in most fare categories; the average increase is 9.81%. Some round trip fares have been reduced as part of the restructuring of truck rates. The largest requested increase, of 100%, is for the non-resident passenger fare, which increases from $1.00 to $2.00. The largest dollar increase is for the one-way fare for a tank truck carrying more than 2,500 gallons. The casual traveler and commercial truck traffic continue to subsidize resident travel as they have historically, and as is typical for any ferry and bridge travelers; the petition raises resident rates, but raises casual traveler fares more. The Budget Review Office recommends that the applicant’s request for a rate increase be approved. Given the company’s financial statements and projections, the rate increase is reasonable, especially given rising costs for fuel and personnel, and the continuous need for capital improvements to the vessels and landings.
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