MN: Rochester transit faces more changes amid declining ridership
Reduced ridership and increased expenses are driving proposed changes for Rochester Public Transit.
The Rochester City Council is slated to receive an update Monday on potential steps to address the sustainability of the citywide service as work continues on a dedicated downtown bus rapid transit service.
"With the upcoming launch of Link BRT, alongside the continued operation of fixed-route and paratransit services, it is imperative that the city evaluates current service levels and implements appropriate changes to ensure the long-term success and sustainability of the public transit system," Interim Transit and Parking Director Rachel Fautsch wrote in a report to the council ahead of Monday's 3:30 p.m. study session.
She noted that Rochester Public Transit "is currently operating under financial conditions that are not sustainable over the long term."
Pre-pandemic ridership numbers failed to return following the 2020 decline.
The city's 2022 Transit Development Plan reported a drop from an average of 6,300 daily rides in April 2019 to 400 in April 2020, when pandemic restrictions reduced ridership and many workers remained at home.
By August 2022, the ridership increased to 2,800 per day, with the year seeing 904,235 rides, but numbers dropped in the following years. Less than 670,000 rides were reported in 2025, according to information provided to the council ahead of Monday's update.
While ridership is declining, the city's anticipated share of operating expenses is expected to increase in 2026.
While projections point to a static $12 million operating budget, the city's share of expenses is projected to increase from 5% to 15%, which would increase the anticipated local cost from $600,000 to $1.8 million.
State and federal transit funds cover the bulk of operating expenses, with the local share provided through fare revenue, advertising and sponsorships. No local tax dollars are used, which means the added local costs are expected to put a strain on RPT reserves without cost reductions or increased revenue.
"In response, the transit team is pursuing strategies to reduce financial losses while increasing system efficiency and revenue," Fautsch states in the report ahead of Monday's discussion.
Rochester Public Transit implemented a variety of service changes in the fall, which sought to reduce operating expenses by $1 million through cutting some routes and reducing the frequency of trips on others.
The information provided to the council points to a decreased cost of service based on the number of boardings, as well as an increase in trip performance — from 97.7% to 99.8% — since the fall changes were implemented.
Potential spring changes could include adjustments to 13 low-performing routes, efforts to enhance high-performing routes and the potential for reducing holiday hours. Additionally, a reduction of $640,000 in capital expenses is proposed over this year and 2027.
Fautsch reported the plan is to take a holistic view of the service, as the city is working toward a 2027 contract change for citywide service and the launch of the Link BRT service through downtown during the same year.
The Link system, which is projected to see daily rides, is being created with a $175 million budget, with funding from $84.9 million in Federal Transportation Administration funds. The majority of the remaining cost is being covered through state and county Destination Medical Center transit funds.
Mayo Clinic has contracted to cover the local share of operating costs for the dedicated system that will operate without fares along a 2.8-mile route with connections near two clinic staff parking areas.
The City Council will not be asked to make any decisions on Monday, but future decisions are expected to include decisions related to a future contract change, as well as seeking a consultant to work on a five-year update to the city's Transit Development Plan.
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