Edmonton to fill $10M gap in revenue to keep low-income transit program
Edmonton city councillors are suggesting a stopgap to fund a low-income transit program without asking all other public transit riders to pay more for the LRT and the bus.
At a meeting Wednesday, council’s executive committee agreed that the city should find $10.2 million in its existing operating budget to fill a revenue gap in the Ride Transit Program.
Mayor Amarjeet Sohi suggested the move in a motion.
“We are going through an affordability crisis and I feel that raising fares at this time will hurt the people struggling the most,” Sohi said during the meeting.
City administration will report back to council in the fall to show where the $10.2 million could come from.
Administration had presented two different scenarios — both involving noticeable fare increases for all riders — to pay for the Ride Transit Program.
Scenario one would have increased the regular cash fare to $4.00 and in scenario two to $4.25.
The current cash fare is $3.50.
Adult monthly passes would have gone up to $110 in scenario one and to $120 in scenario two.
The current adult monthly pass is $100.
More people have been using the subsidized passes in the past few years, as the city expanded the eligibility criteria, and made passes available for refugee and new immigrant groups.
Coun. Ashley Salvador says transit is becoming more and more important.
“The average price of a new car in Canada just last year was $67,000,” she said. “The number of households that can afford one or multiple cars is going to steeply decline and people will be looking to transit or active modes.”
Sohi’s motion also suggests city council meet with the Alberta government to discuss keeping the Ride Transit Program going in the future.
Approved fare hike for 2025
The $10.2 million is part of the $13 million revenue gap that Edmonton Transit Service is facing this year.
Independent of the Ride Transit Program, ETS will be raising fares slightly next February to keep up with the rising price of fuel, parts and buying new buses.
It will cost $3.75 to ride the bus or LRT if paying with cash, up from the current $3.50.
Adult monthly passes are going up to $102 from $100 and seniors passes will be $36 up from
$35.
Riding with an Arc card will cost $3.00 a trip, up from the current $2.75.
Edmonton hasn’t raised fares for five years, Carrie Hotton-MacDonald, the manager of Edmonton Transit Service, said.
“The cost of delivering transit service has changed significantly in the last few years so the step we’re taking in February is absolutely necessary,” she told the committee.
“User fees are an important component of offsetting the cost. We can’t rely solely on the tax levy.”
Councillors asked how much fare evasion and technology issues with the Arc system have added to the drop in revenue.
David Jones, branch manager of community standards and neighbourhoods, said peace officers have conducted thousands of fare checks this year.
“Fewer than five per cent of the people haven’t paid for their fares, or haven’t tapped,” Jones said.
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