Durango City Council is likely going to rely on savings this year to keep trolley and city bus service intact.

The Transit Department is facing a projected $220,000 shortfall in 2016, but councilors want to see new revenue sources instead of higher fares or fewer services.

Amber Blake, director of Transportation and Sustainability, proposed cutting weekend service year-round, ending the Saturday loop bus service or eliminating the route to Three Springs and Mercy Regional Medical Center.

But councilors did not find any of these options palatable Friday.

Instead, councilors decided to pay for the shortfall from savings and encouraged Blake to pursue other avenues of funding that will keep the transit system whole in the future.

Some options include negotiating large contracts with businesses, which would subsidize the transit system instead of building parking spaces or buying passes for all of their employees. A contract with Mercy Regional Medical Center is pending and could reduce the shortfall.

City Manager Ron LeBlanc suggested the council revisit the issue in the first quarter of 2016 to look at long-term funding options for the department.

Mayor Dean Brookie said keeping the transit system intact will encourage more dense development.

“Without a vital transportation system, we have no opportunity to provide additional infill,” he said.

Brookie hopes developing the transit service will help attract a more diverse ridership. Currently, many people using the system do not have a car or a driver’s license.

“It’s a pretty efficient loop system,” he said.

Last year, the city started charging $1 to ride the trolley, and, so far, the Transit Department has seen a 36 percent drop in ridership.

The fare may have eliminated duplicate riders who were using the trolley for shelter rather than transportation, according to previous interviews with city staff members.

Through trolley fares, the city has generated $60,943 through the end of September.

mshinn@durangoherald.com