The Chatham Area Transit Authority board on Tuesday approved increases to its fiscal year 2014 budget and millage rate in an expected move to help return the authority to a stable fiscal footing.
The 7-1 vote increases the operating budget from $18.3 million to $19.9 million and raises the .86 millage rate by .381 mills. That means owners of a $100,000 home would pay 85 cents more a month.
Board member Helen Stone was the dissenting vote.
CAT Executive Director Chad Reese said the tax increase is needed to offset accumulated debt, as well as increases in operating, insurance and fuel costs.
The Chatham County Commission must decide whether to approve the proposals on June 28.
Stone, who also is a commissioner, argued the millage rate increase adds to the burden of taxpayers, especially seniors, who are also facing potential hikes in county and school taxes. Other members said failure to approve the measure would mean cuts to transit services for thousands of riders.
“This was the best (scenario) that continued service, promoted growth and helps us to reduce our loan,” said board member Mary Osborne, a Savannah alderwoman.
No one spoke at a public hearing prior to the vote.
The vote comes on the heels of tepid approval by the county commission of a $6 million line of credit increase for CAT. In return, Reese plans to repay the loan in three years and seek alternative revenue streams, such as federal grants.
In other business:
• The CAT board voted 8-0 to purchase an emergency phone system for about $22,807 (with 80 percent federal funding).
• Voted 8-0 to buy a digital paging system for visually impaired riders for about $123,330 (with 80 percent federal funding).
• Voted 8-0 to buy a closed-circuit television system for about $360,027 (with 80 percent federal funding).
• The new $2.4 million Intelligent Transportation System, paid with 80 percent federal funding, was unveiled. It monitors service in real time and tracks vehicle scheduling.