Transit – who pays what?

February 10, 2011


If you think that the fares we charge cover the cost of delivering the service, you will be in good company and wrong.

The proposed budget to deliver transit service in 2011 is $22.2 M. It was $20.7 M in 2010.

The increase in the 2011 is due to increases in variety of elements including fuel, utilities and compensation as well as the opening of the new Transit Terminal, which accounts for about $200,000 of the increase.

In 2010, this is where the money came from:

Riders (and other sundry revenue)     43%  ($9.0M)
Municipal property taxpayers                43% ($8.9 M)
Provincial Gas Tax                                14% ($2.8 M)

In 2011, this is what is being proposed: 

Riders (and other sundry revenue)     46% ($10.1 M)
Municipal property taxpayers                41% ($9.2 M)
Provincial Gas Tax                                 13% ($2.9 M)

The increase in percentage from riders is primarily due to higher fees for the U-Pass program ($700,000) with a small proportion ($200,000) from the general fare increase being proposed.

The fares being proposed for 2011 appear in a posting a couple of days ago.

About Karen Farbridge

An unwavering change maker seeking a just, democratic and sustainable world.

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5 Comments on “Transit – who pays what?”

  1. Jim Grant Says:

    Karen – I don’t think there is any question here to costs and revenue. My question though is, we are currently running a hub system, whereas all ends up downtown. Have we looked at a perimeter system whereas only one bus would loop from each quadrant to downtown. The rest of the system would be looping in their own quadrants and would require a transfer, connection to a downtown bus. Would this save in operating costs, such as fuel through lack of idling, traffic congestion, pollution downtown, etc, etc. I realize that we are trying to bolster the downtown area and the current system keeps everyone ending up there. However, with condo’s being the new flavour for this area is it still necessary for a hub system?

  2. kfarbridge Says:

    This has been reviewed. The City did a comprehensive system review last year. The results can be found at:

  3. Jim Grant Says:

    Thanks Karen and very good.

  4. Craig Chamberlain Says:

    Mayor Farbridge;
    Thank you for the data. I’m guessing that “sundry revenue” is advertising revenue. Will advertising rates be increased as well? By what percent?

  5. ksulliva Says:

    Hi Craig,
    Here is what I found out from staff:

    Advertising makes up the bulk of sundry revenue (the rest, a small amount, comes from charter activity).

    Based on contracts currently in place and estimated ad sales, advertising revenue is forecast to stay essentially flat in 2011. With a new transit shelter contract to be negotiated in 2011, it is expected that advertising revenue from this source will increase during the latter half of the year and into 2012 and beyond.

    Kate Sullivan
    Mayor’s Office

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