A Sept. 15 audit report reveals King County Metro transit could spend less and save more through better planning and data analysis.

The audit, which was performed by the King County Auditor’s Office, comes at a time when Metro is finding itself short on funding and looking for ways to achieve cost savings. The agency is projecting a $213 million budget gap over the next two years.

The audit proposes an adjustment to the agency’s contributions to its fleet replacement fund, changes to Metro’s fare structure, and a closer look at the free services provided in downtown Seattle, among other things. It identifies ways to save money and mostly avoid service cuts.

King County Metro transit serves more than 100 million customers annually. It operates roughly 1,300 vehicles. A variety of buses, electric trolleys and street cars are used in the agency’s operations.

Each year, Metro channels funding into its Revenue Fleet Replacement Fund. The amount generally exceeds what is needed for yearly replacements and expansions of the fleet, according to the audit. A one-time savings of $105 million could be captured, and the fleet still maintained, by removing that amount from the replacement fund, the audit found.

The audit proposes adjusting the fare structure. Up to $51 million a year in revenue could be made if Metro reworked its fare schedule. Decreasing discounts offered to seniors, youths and riders needing a transfer is proposed. This would increase revenue, according to the audit.

Currently, these discounted fares are significantly greater than those offered by peer agencies and those required by the Federal Transit Administration, according to the audit.

More clearly identifying the ratio between operational costs, and the amount of costs recovered through fares, would also benefit Metro, according to the audit.

Currently, Metro provides free services within downtown Seattle. The city provides some compensation for the program, but the audit found Metro was unable to support, fully explain or provide backup documentation for the formula it uses to claim reimbursement from the city of Seattle for this service.

The Metropolitan King County Council and King County Regional Transportation Committee have yet to publicly weigh in on the auditor’s suggestions.

To read the full audit report, visit www.kingcounty.gov/operations/auditor/Reports/Year/2009.aspx.

Jacinda Howard is a reporter for the Federal Way Mirror. She can be reached at jhoward@federalwaymirror.com