Chapel Hill Transit provides public transportation service throughout the Chapel Hill, Carrboro, and UNC community. It is a municipal department within the Town of Chapel Hill and was established in 1974. Chapel Hill Transit operates fixed route and demand responsive service within approximately a 25 square mile service area. In January 2002, the system became fare-free. Chapel Hill Transit produces over 142,000 annual hours of service, has a budget of over $11 million. At the end of the 2004-2005 fiscal year, fixed route ridership was over 5.7 million.