Lextran's new headquarters on West Loudon Avenue could come with a fare increase and changes in service.
The $26.3 million project is to be financed from a variety of sources, including federal grants and discretionary awards, tax credits, a loan and money from the sale of Lextran's current property at 101 and 109 West Loudon Avenue.
About $75,000 a year is expected to come from the Lextran operating budget, according to documents provided to the board at a work session last month.
There are several ideas for where that money could come from, spokeswoman Jill Barnett said.
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The documents indicate that Lextran could generate $750,000 for the budget from a fare increase.
Barnett said the budget assumes a 50-cent increase effective Jan. 1, which would raise the base fare to $1.50.
"However, any fare increase will be fully explored in a fare-equity analysis and presented through community involvement sessions," Barnett said in an email message.
The documents also indicate that Lextran might save $800,000 by implementing "service modifications."
That would mean changes to what Barnett described as "unproductive routes with low ridership."
"Assumptions to service adjustments are based on preliminary recommendations from our comprehensive operational analysis, of which the final report has not yet been delivered to Lextran," she said.
Lextran also might save $250,000 on "fringe benefits," which Barnett said "is primarily through changes to employee health insurance, some of which are driven by the Affordable Care Act and recent changes to health insurance nationwide."
The total from all funding sources listed by Lextran exceeds the project cost.
Lextran lists a $5 million line of credit as a source of funding, but Barnett said that had not been closed on and would be tapped only "if necessitated by large invoices hitting us at the same time."
The new headquarters is to be built on a 13-acre site that was once a General Electric glass plant. It will house Lextran's administration, operations and maintenance departments.
Officials have said the new headquarters will improve Lextran's operational efficiency by consolidating functions at one site.
The new buildings will have 54,000 square feet of space, including an administration building with room for community meetings; a maintenance center with seven repair bays rather than the two now available; a site to wash the fleet of 72 buses; and fueling stations, including a station for fueling compressed-natural-gas buses.
It also will include improvements for employees, including a workout center, a walking track and "quiet rooms" for spending time between shifts, according to the materials provided to the board.
The project is expected to be finished by April 2016, Barnett has said.