Increase in expenses push up SSA rates for 2007
BY MARY LANCASTER
Citing increases in fuel costs, liability insurance, employee health care and payroll spikes and property depreciation expenses projected to produce a $4.4 million jump in the Steamship Authority's operating budget for 2007, rates will be going up to help cover expenditures for service and debt repayments.

The SSA expects its total operating expenses for 2007 will reach $72.8 million compared to $65.5 million in 2005. Projected operating revenues are based on actual statistics for all traffic for the yearlong period ending Aug. 31, 2006. Net income from operations in 2007 is estimated to take a 19 percent hit from what was anticipated in 2006.

The rate changes were approved at last Thursday's SSA meeting on the Vineyard. "Basically, expenses are up 10 percent and we're going up [on rates] four percent, so we are holding it as best we can," said Nantucket's board representative Flint Ranney.

Specifically, liability insurance is expected to rise by $525,000; health care will increase by $750,000 and payroll by $850,000; vessel fuel costs are estimated to jump $850,000; and depreciation because of two new boats under construction, widening of the freight vessel Sankaty and a new Fairhaven maintenance building will increase by $2.4 million.

An additional $1 million in revenue is needed from the Nantucket route compared to $3 million required from the Vineyard route. For Nantucketers, that means that starting Jan. 1, 2007 the full rate passenger fare on traditional ferries will go up one dollar, though no increase will occur for the highspeed boat.

Further, standard auto fares will go up $5; there will be a $10 increase in "on-season" excursion rates, which will rise $5 off-season; there will be a five percent hike in rates for commercial vehicles 20 feet or more in length; vehicles less than 20 feet long will see an increase comparable to the auto rate change; barge unloading rates will go up one dollar per ton year-round; and an annual Hyannis terminal lot parking permit will go up $50 with a $25 price jump for off-site annual parking permits.

In attempting to subsidize expenses other than through rate increases, the SSA will begin allowing poster size advertisements on boats and in terminals, anticipating that may draw in $80,000 a year. Though most advertisers are expected to be national companies, Lamson said local businesses will have the same options.

He does not believe this will reopen the J. Crew controversy that occurred about three years ago when island merchants and then Nantucket representative Grace Grossman opposed planned distribution of J. Crew catalogs at terminals just before Stroll weekend.

The board was also given a preliminary draft of the SSA proposed 2007 capital budget of $2.5 million with a vote expected at the November meeting. There are 11 projects listed including automated parking lot equipment upgrades, computer hardware upgrades, computer server replacements, shuttle bus replacements and security improvements.

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