polarisrider1
New member
January/February 2012
Where Your Money Is Spent
Many of you are wondering why the increase in the trail permit was needed. Well, quite frankly, it’s a matter of keeping our trails smooth, while costs to keep them smooth continue to increase.
Here are some numbers for you to think about when you purchase your $45 trail permit this year. The average cost of groomer tractor is between $150,000 and $125,000. Groomers needed for high snow areas run as much as $250,000, and that’s just for the tractors. Drags run from $17,000 to $30,000. These costs have continued to increase over the last few years, so we aren’t able to purchase all of the new equipment necessary. This means that maintenance costs on older equipment is also increasing. We are continuing to play catch up in terms of equipment purchases, and the cost of that equipment continues to increase.
Another simple fact is that the cost of steel for that equipment is at an all time high, while fuel prices continue to rise. Insurance costs have also increased, while we continue to try and do more with what we have.
Also, trail permit sales were down 7 percent last year, which means we had less money to deal with from the start. We sold 170,000 trail permits last year, and $33.53 of every permit went on the ground. I think that is a credit to the program and the people involved in it.
It’s important that we stress that the majority of this state’s 68 grant sponsors are volunteer club members who spend countless hours maintaining trails, chasing leases and completing paperwork. If we had to pay 100 percent of the labor costs involved, we would not have a snowmobile program. You would not have smooth trails.
The Cold Hard Truth
We now reimburse our grant sponsors $5.27 per mile. If you take that $45 trail permit fee and divide it by that $5.27 per mile, I think you will see it’s not such a bad deal. I mean you can load your sleds, travel to where you ride, and go 8.54 miles before your trail permit has been used up in terms of grant sponsor reimbursement. I don’t know many snowmobilers who only ride 8.54 miles a season. Do you?
Under the trail permit fee law passed in 2008, the cost of trail permits in Michigan will stay at $45 a year through 2015. In October 2016 “and every fifth year there after,” the cost of a trail permit will reflect the “cumulative percentage change in consumer price index.” This means that trail permits will increase every five years. The increase will be based on the “cumulative” cost of living over the previous five years.
Please keep in mind the funds from trail permit sales and a small portion of the return we see from our gas tax are the only two funding mechanisms we have for our snowmobile program.
During the 2010-11 season 372,906.7 miles were groomed. Fuel to groom those miles came in at $770,460.14. The total cost to sign, brush, maintain, groom, purchase equipment and fuel was $1,704,183.62.
Where Your Money Is Spent
Many of you are wondering why the increase in the trail permit was needed. Well, quite frankly, it’s a matter of keeping our trails smooth, while costs to keep them smooth continue to increase.
Here are some numbers for you to think about when you purchase your $45 trail permit this year. The average cost of groomer tractor is between $150,000 and $125,000. Groomers needed for high snow areas run as much as $250,000, and that’s just for the tractors. Drags run from $17,000 to $30,000. These costs have continued to increase over the last few years, so we aren’t able to purchase all of the new equipment necessary. This means that maintenance costs on older equipment is also increasing. We are continuing to play catch up in terms of equipment purchases, and the cost of that equipment continues to increase.
Another simple fact is that the cost of steel for that equipment is at an all time high, while fuel prices continue to rise. Insurance costs have also increased, while we continue to try and do more with what we have.
Also, trail permit sales were down 7 percent last year, which means we had less money to deal with from the start. We sold 170,000 trail permits last year, and $33.53 of every permit went on the ground. I think that is a credit to the program and the people involved in it.
It’s important that we stress that the majority of this state’s 68 grant sponsors are volunteer club members who spend countless hours maintaining trails, chasing leases and completing paperwork. If we had to pay 100 percent of the labor costs involved, we would not have a snowmobile program. You would not have smooth trails.
The Cold Hard Truth
We now reimburse our grant sponsors $5.27 per mile. If you take that $45 trail permit fee and divide it by that $5.27 per mile, I think you will see it’s not such a bad deal. I mean you can load your sleds, travel to where you ride, and go 8.54 miles before your trail permit has been used up in terms of grant sponsor reimbursement. I don’t know many snowmobilers who only ride 8.54 miles a season. Do you?
Under the trail permit fee law passed in 2008, the cost of trail permits in Michigan will stay at $45 a year through 2015. In October 2016 “and every fifth year there after,” the cost of a trail permit will reflect the “cumulative percentage change in consumer price index.” This means that trail permits will increase every five years. The increase will be based on the “cumulative” cost of living over the previous five years.
Please keep in mind the funds from trail permit sales and a small portion of the return we see from our gas tax are the only two funding mechanisms we have for our snowmobile program.
During the 2010-11 season 372,906.7 miles were groomed. Fuel to groom those miles came in at $770,460.14. The total cost to sign, brush, maintain, groom, purchase equipment and fuel was $1,704,183.62.
): "gist" it is!