Transit approves fare increase for Jan. 1

Magally Zelaya, staff

The cost of a cash bus fare will increase from of $2 to $2.25 as of Jan. 1, 2008.

City councillors voted 11-5 in favour approving Winnipeg Transit’s recommendations to increase cash and ticket fares, in a vote held Wednesday, Nov. 21 at Winnipeg City Hall.

The 25-cent raise is an increase of 12.5 per cent. Sheets of 10 tickets will rise from $18.50 to $19.50. Weekday and super passes will rise to $17.50 and $19.50 from $16.65 and $18.50 respectively.

Handi-Transit fares will increase by the same amount.

Seniors’ and children and youth fares will increase by 10 cents to $1.75, according to the CBC. The age that children can ride free will increase from four to five years old.

“Definitely Winnipeg Transit is sensitive to the impact that higher fares have on the customer,” said Ken Allen, Winnipeg Transit spokesperson.

Allen said that the price of monthly passes — full, reduced, Handi-Transit, and post-secondary — will remain the same.

Winnipeg Transit receives 50 per cent of its operation funding from system-generated revenue in the forms of passenger fares and advertising. Contributions from city tax-support makes up 30 per cent and the province’s annual operating grants make up the remaining 20 per cent of the funding.

“The increase in cash and ticket fares is necessary to off set the increase in fuel and operating costs,” said Allen.

In its submission to city council, Winnipeg Transit highlighted four areas under recent financial pressure, starting with the price of diesel fuel.

Currently Winnipeg Transit pays 79 cents per litre of diesel — an increase of 52 per cent from the 2004 price of 52 cents per litre.

Another area of increasing financial pressures listed in the Winnipeg Transit proposal is the increase in the cost of living, which translated to an increased cost of $2 million directed to salaries and benefits in 2006.

As well, the Winnipeg Transit bus replacement fund is another area that is experiencing increased pressure. The transit department has not been able to transfer the necessary funds into the fund and has only met the target amount once in 2000.

Finally, a significant rise in the number of users of the Handi-Transit system — a result of an aging population — is another area that has presented additional costs. In 2006 the increased use of Handi-Transit cost Winnipeg Transit an additional $400,000.

Winnipeg Transit expects the fare increases to generate $2,222,000 in revenue in 2008. The allocation of the increased revenue has yet to be determined.

“It’s a little too early to say as it’s going to be discussed during deliberations on the 2008 operating budget,” said Allen. “That happens between now and March and a decision will be made by council in March 2008.”

Carmen Barnett, press secretary for mayor Sam Katz, said, “A significant portion of the revenue from increased fares will be directed to a Rapid Transit Reserve fund,” in an email to the Manitoban. The portion of the funds allocated will not be known until city council votes on Winnipeg Transit’s 2008 operating budget in March.

With the increase, Winnipeg joins Vancouver, Edmonton, Saskatoon, and Calgary as cities that charge $2.25 for a single ride. Winnipeg’s fares remain lower than other Canadian cities, such as Ottawa ($3) and Toronto ($2.75).

Winnipeg’s Transit fares last increased in 2006, when the price of a cash fare went from $1.85 to $2, and post-secondary monthly passes increased by $2. City council justified this increase by saying that fares would not increase for two to three years.