Ledyard — After the town decided to withdraw from the Southeast Area Transit District last year and budgeted less than its share of the budget, SEAT feared there would be a domino effect, with other towns pulling out.

In the hopes of keeping the rest of the towns within its district, SEAT offered to accept Ledyard's partial payment and agreed to continue service.

Because municipal subsidies cover any leftover expenses in the SEAT operating budget after state and federal funding, one town leaving would increase the burden on others and potentially make some routes unsustainable.

"Any way we take that (local) percent and pare that money down, we have to look at service options," said SEAT Chairman and Montville Mayor Ronald McDaniel.

In December last year, the Town Council voted to withdraw from the SEAT regional transit service amid low ridership numbers and a potential hike in the town's subsidy.

At the time, councilors said their vote was to send a message about other towns, including Preston, Foxwoods and North Stonington, that do not provide subsidies to SEAT.

Gridlock over funding formulas and route improvement plans in January led one member of the board to suggest they might see "the dominoes start falling," with Ledyard leading other towns to exit.

However, in April SEAT passed a funding formula for 2017 that would calculate the town's share of expenses based on revenue hours by town, revenue miles by town, population density by town and ridership.

SEAT General Manager Mike Carroll said going forward, Ledyard's share may be lower than in previous years if funding is held constant.

Leaders of other towns on the SEAT board have raised concerns about remaining in the transit district.

In May, Griswold First Selectman Kevin Skulczyck said he was considering withdrawing due to concern about the town's ability to pay future rate hikes if state funding were cut.

He clarified in an interview that he "believe(s) the public transportation system is a necessary service that needs to be provided" and that the town had budgeted enough money for the coming fiscal year.

Ledyard budgeted a placeholder number during continuing discussions with SEAT this year, but as late as June 6, Ledyard officials believed the town would not continue to receive SEAT service after June 30.

General Manager Mike Carroll sent a letter on June 6 addressed to Ledyard Mayor Michael Finkelstein noting that "if the town does in fact withdraw, it should not expect a continuation of current public transit service by SEAT."

However, McDaniel said Thursday there are no plans to suspend service in Ledyard, though he did not close the door on suspending service for towns that don't pay.

At the Wednesday meeting of the town Finance Committee, councilors noted they had received no calls from residents who depend on SEAT service, making the subsidy difficult to justify.

"Maybe say if I knew there were three people in Ledyard that depended on it ... I want to be compassionate here," Councilor Tom Malone said.

In 2015, 723 people took the bus from Ledyard, reflecting about 1.2 percent of SEAT's total ridership.

Ledyard currently is assessed at $13,254. The Town Council has budgeted only $9,717 for the coming fiscal year — about 2 percent of the total money contributed by municipalities in the transit district.

Towns pay different amounts based on the amount of hours and distance traveled within their borders. Montville pays $16,879 under the formula and Griswold pays $10,792.

Norwich, the largest contributor, pays $163,655.

Mashantucket no longer pays a subsidy, but because so many residents in the region work at Foxwoods Resort Casino and use the transit service to get to and from work, SEAT did not discontinue service there.

Members of SEAT's board of directors and Carroll said retaining Ledyard in the district is a step in the right direction toward keeping the district together.

The board also voted to revise Ledyard's service route No. 2, which previously traveled southbound through Colonel Ledyard Highway and northbound up Route 12.

Consultant Nelson/Nygaard had noted very low ridership along Colonel Ledyard Highway, and that route will now travel both ways along Route 12.

Change will be slow, Carroll said, as he will need to discuss the change with Ledyard officials and the public.

He said the earliest he would bring the proposal back to the board would be in July or August.

The Town Council will discuss the town's involvement in SEAT at its Wednesday, June 22, meeting.

n.lynch@theday.com