The SunLine Services Group (SSG) board recently approved a temporary surcharge of $0.50 per ride for Coachella Valley taxis. The surcharge was approved by the board due to a budgetary shortfall with in the agency’s taxi regulatory unit which is referred to as the SunLine Regulatory Administration (SRA).
The temporary surcharge went into effective on February 1 and will expire in 5 months on June 30, 2011. The taxi regulatory unit lost approximately $102,000 in regulatory fees due to an early termination of a taxi franchise agreement with Classic Yellow Cab. The company left Coachella Valley due financial losses.
The taxi surcharge of $0.50 will increase the current flag-drop fee from $3.25 to $3.75. The surcharge is projected to generate $107,000 in new revenue for SRA. The annual budget for SRA is approximately $463,000. Without the surcharge, the agency was expecting a budgetary shortfall of approximately $144,000. The remaining deficit will be funded by the agencies reserves.
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