Bixi bike-sharing program in financial trouble

Montreal's auditorgeneral says he seriously doubtsBixi's Montreal and Toronto bike-sharing services can continue to operate.

The news came in a letter addressed to the president of Public BikeSystem Company, known in French as theSocitdevlosenlibre-service, orSVLS.

In the letter, dated Sept. 11,Auditor General JacquesBergeron said theevidence he saw while compiling his annual report on Bixi's operationsled him to believe SVLSandBixiToronto were in serious trouble.

The Quebec-founded bike-sharing service haslost millions of dollarssince hittingMontreal streets in 2008.

In 2011,Montreal's city council approved a $108-million bailout package for the program to cover a budget shortfall. That included a $37-million loan to coverBixi'sdeficitand another $71million in loan guarantees to export and develop the system abroad.

RalMnard, theMontreal city hall executive committee memberin charge of the transportation dossier, told CBC's Daybreak Montrealhecannotguarantee the administration will put more money into Bixiif it requires assistance.

"If you say... 'can you make a commitment that City Hall will put...money to Bixi?' I think its not going to happen.But it doesnt mean that Bixi will not be in operation," said Mnard.

Cash problems may be from U.S. money due

Mnardsaidhe is concerned about Bixi'scash flow problems,but that the program isnot facing bankruptcy, and bikes will be back on the streets next season.

Mnard saidthese financial difficulties aredue to outstanding payments from U.S. cities that use thebike-sharing program.

"We'reexpecting to have money.When the money will be there, Bixi will be in a better situation," saidMnard.

"We are optimistic that the crisis we are talking about will be solved."

Bergeron's report on Bixi's financial year that ended Dec. 31 was expected to be submitted to Montreal city council on Monday, butMnard says he has not yet seen the document.

"The taxpayer has the right to know the financial situation," saidMnard.

"We need to have this information because we are talking about a public fund."

The service spread to a number of cities in Canada and around the world.

New York City just this year introduced its version ofBixi, calledCitiBike, to its city grid.