The City Council has taken the first step toward scuttling the city's costly commuter ferry.

The Budget Committee this week voted to eliminate $5 million in funding for the ferry running between Downtown Honolulu and West O'ahu. Budget Committee Chairman Nestor Garcia said it is still unclear if the council will kill the service. The budget isn't expected to be finalized until next month.

The council is discussing eliminating TheBoat, raising property taxes and increasing fees for various city services to deal with a $50 million budget shortfall in the fiscal year that begins July 1.

TheBoat ferry commuter service has suffered from maintenance and ridership setbacks. TheBoat launched service between Aloha Tower and Kalaeloa Pier in September 2007 and was funded by a federal grant. That grant runs out in the upcoming fiscal year and the program will have to be entirely paid for by taxpayers.

In February, Mayor Mufi Hannemann ordered an assessment of TheBoat to help decide whether to continue the $5-million-a-year city-sponsored service. That report is due late this month.

"A lot of this really hangs on the end of the month report by the administration," Garcia said. "It's one foot in the grave, but nothing is really dead until the budget is passed."

Riders pay only $4 for a roundtrip ticket. But it costs O'ahu taxpayers an additional $120 per passenger to operate the service.