The City of Kenora is looking at a micro-transit option instead of its conventional transit system.

The city has been successful in securing a grant to investigate transit options, including ride-sharing, and on-demand systems.

In the meantime, city clerk Heather Pihulak says the city has to subsidize the conventional transit system heavily because ridership continues to decrease.

“The hit to the budget is about $350,000,” Pihulak told the Committee of the Whole meeting of city council on Monday.

“So you can take the revenues and the rest of it goes to the contract.  There are some internal charges there.  Our mechanics do support them to some extent.  They don’t maintain the vehicles.  Thats part of the contract.”

Pihulak adds that First Students five year contact is coming up for renewal.

“In the meantime, while that study and review is being conducted, we need to decide whether we want to continue with the conventional transit operation and if so, the contractor has asked for a one year extension to continue operation.

First Student is asking for a 6.5 percent increase in their contract.