St. Albert transit riders could face a 10 per cent fare increase next year under a plan pitched by city administration.
The increase would boost a regular fare to $2.75 and a commuter fare to $5.50. The cost of 15 tickets would increase to $33 for regular and $57.75 for commuter. Monthly passes would rise to $65 for local, $105 for commuter, $92 for students, $55 for seniors and $42 for recipients of Assured Income for the Severely Handicapped (AISH). (See related story, page 4)
The increase is necessary to combat rising costs and to bring St. Albert in line with its cost recovery target, said city manager Bill Holtby.
City council heard the pitch Monday during a meeting of the standing committee on finance. The committee received the report which means administration will build the increase into the 2012 budget. This will be subject to extensive debate and approval by council in the fall.
St. Albert’s transit service is subsidized by the city. The city’s policy is to recover between 40 per cent and 60 per cent of its operating costs through fares. The recovery rate was 37 per cent in 2009 and 39 per cent in 2010.
The city is also dealing with a significant rise in fuel costs and a new operator contract, requiring a significant fare increase for 2012, Holtby said.
Achieving a healthy cost recovery is the challenge of any municipal transit service, said Coun. Wes Brodhead, who is an administrator with Edmonton Transit.
“It’s an expensive service and some of it has to be borne by the user,” he said.
A 10 per cent increase in fares can lead to an average ridership reduction of 2.3 per cent for peak periods and 4.2 per cent at off-peak times, said a city background report. In 2010 ridership in St. Albert fell by 2.2 per cent from the previous year, the report states.
Councillors raised questions about using cheaper buses or charging patrons to park at the park-and-ride facility but found no palatable answers as a result of their questions.
Coun. Malcolm Parker wondered about increasing the fares because he doubted the effectiveness of the entire transit system.
“I see a number of empty buses running around town,” he said. “To me there’s something dysfunctional about the system.”
He agreed to receive the report because St. Albert Transit has a service review under way.
