Approving a rate increase on passengers of the Dell Rapids Inter-Lakes Community Action Partnership (ICAP) transit system, the city council discussed ways to make up for a cut in funding for the program.

Due to a federal funding cut of about 30 percent for 2012, the city is looking for ways to make up between $15,000 and $20,000 to maintain the bus service as it is now.

The 2012 contract with ICAP has been previously approved by the council, so a rate increase was an option discussed at the council’s last meeting Jan. 3.

The proposed hike included a $2-per-ride fee for in-town trips and a $6-per-ride fee for trips to Sioux Falls. Senior citizens would still ride free, with a $1.75 donation appreciated.

Mayor Scott Fiegen said that rate adjustments alone won’t pay for the service and that the city will have to “just bite the bullet” and cut in other areas to balance it out.

“The gas prices have changed dramatically over the years,” he said. “We really haven’t raised the rates a lot to keep up with that.”

“It’s a fair rate,” councilor Mark Downs added. “It’s what other communities use.”

The councilor also said that families that can’t afford the higher cost of busing for preschool-age children, for one, may find a rate hike difficult, as more local preschool programs move to four- or five-day-a-week classes.

“I’d like it to be a service to the community,” Downs said, “but I don’t want it to be a detriment to kids’ learning experience either.”

City administrator Justin Weiland said that this wouldn’t be the final word on the issue, though major changes to the already approved ICAP contract would have to wait until 2013.

“This is not the be-all end-all,” he said. “This is just getting the ball moving on something we can implement right away.”

One concern brought up at the Dec. 19 meeting of the council was the $900 paid to ICAP for personnel management, background checks and grant writing, which councilors said should be reconsidered as something that could possibly be done in-house in future agreements.

“Right now we just need to decide what are rates are,” Fiegen said.

Councilor Carrie Testerman said that the city has more work to do yet to make changes toward reaching an optimum financial goal with the program.

“This is really just a band-aid,” she said.