At its meeting today, Wednesday, November 20, the Toronto Transit Commission approved the TTC’s 2014 operating and Wheel-Trans budgets, its 2014-2023 ten-year capital budget — and a five-cent fare increase to the cost of a token. Fares will increase starting New Year’s Day, Wednesday, January 1, 2014. The Commission also increased the cost of the adult Metropass by one trip. It did not change the cost for cash fares.

In January, Toronto City Council will consider the TTC’s request for an operating subsidy (or funding) of $438 million and a Wheel-Trans subsidy of $106 million. It will also ask for funds to support the TTC’s 10-year capital budget need. Even without subsidies from the City,the TTC’s operating budget remains $6 million short of being balanced and its 10-year capital budget of $9 billion has a shortfall of $2.7 billion, the bulk of which include projects to begin in the last five years of the 10-year plan. According to a TTC news release, staff are confident that the TTC can make up the $6 million operating budget shortfall through efficiencies in 2014.

To address the capital budget challenge and operating budget needs in years to come, the board approved a recommendation to create special task force consisting of the Chair of the Toronto Transit Commission, the TTC’s chief executive officer and its chief financial and administrative officer, the city manager and the City’s chief financial officer to seek and secure long-term, sustainable and predictable funding from the provincial and federal governments. The news release explains that provincial legislation mandates many of the TTC’s capital expenditures, but without the necessary funding to meet those requirements.

The Toronto Transit Commission is the TTC’s board of directors. It oversees matters of policy and planning, building, maintaining and operating the TTC system and expanding its services and facilities.

Its members include City of Toronto Councillors and members of the public.

Budget Highlights

Operating

• $1.6 billion in expenses in 2014
• The TTC expects 540 million rides in 2014 and service to match — an increase of 2.3 percent over 2013.
• Fare revenue = $1.1 billion.
• City subsidy = $428 million (up from $411 million in 2013).
• A five-cent increase to the price of a single token (from $2.65 to $2.70) and a proportionate increase to all other fares.
• Metropass trip rate increase from 48.5 to 49.5 trips per month - nets an additional $8 million revenue.
• Over the last 20 years, TTC’s workforce has grown by 18 percent, while service has grown by 27 percent and ridership by 32 percent.
• The TTC says it has continued to find efficiencies inside the organization, while meeting ridership demand and improving passenger amenities, such as better public washrooms, station and vehicle cleanliness and a new station management model.
• The TTC’s subsidy per rider — meaning how much the city pays for each trip you take on the TTC — remains the lowest for public transit in North American cities at just 78 cents.

Subsidy per rider in other municipalities:

• Montreal: $1.16
• Vancouver: $1.62
• Chicago: $1.68
• New York City: $1.03
• Mississauga: $2.21
• York Region: $4.49

Wheel-Trans

• the TTC expects Wheel-Trans passenger trips to increase by about 200,000
• total expenses for 2014 = $112 million
• fare revenue = $5.7 million
• total subsidy = $106 million (up from $96 million in 2013)
• under provincial legislation, Wheel-Trans service became a 24/7 operation in 2013
• 1.9 million of 3.1 million Wheel-Trans trips taken in 2014 will be by contracted taxi

Capital

• $9 billion - 2014-2023 ($1.1 billion in 2014)
• 95 percent of capital spending is focused on state-of-good-repair, safety and legislative requirements, such as:

• Rehabilitating buildings, structures, tunnels, bridges and yards
• Replacing tracks
• Maintaining signals, electrical and communications systems
• Replacing subway cars and streetcars as their useful operating life expires

• a shortfall of $2.7 billion over 10 years, 70 percent in the last five years of the 10-year cycle. Some projects, therefore, remain unfunded, including:

• Accessibility (Easier Access III)
• 372 T1 subway car replacements
• 58 new Wheel-Trans buses
• 135 buses to enhance service (lower crowding standard)
• 60 new streetcars
• Single-person train operation
• McNicoll bus garage
• Station finishes renewal program

Fare increases

Adult

• Cash fare remains at $3
• Prince of single tokens increases from $2.65 to $2.70
• Price for adult fares using PRESTO cards increases from $2.65 to $2.70
• Price for each weekly pass increases from $38.50 to $39.25
• Price for each regular Metropass increases from $128.50 to $133.75
• Price for each VIP (Volume Incentive Plan) Tier 1 Metropass (for employees of organizations with 50 to 249 subscribers) increases from $115.50 to $120.25
• Price for VIP each Tier 2 Metropass (for employees of organizations with 250 to 499 subscribers) increases from $114.25 to $119
• Price for VIP each Tier 3 Metropass (for employees of organizations with more than 500 subscribers) increases from $113 to $117.75
• Price for each MDP (Metropass Discount Plan) Metropass increases from $117.75 to $122.50
• Price for each post-secondary Metropass increases from $106 to $108

Senior / Student

• Cash fare remains at $2
• Price of single tickets increases from 1.80 to $1.85
• Price of each weekly pass increases from $30.50 to $31.25
• Price of each regular Metropass increases from $106 to $108
• Price of each MDP Metropass increases from $95.75 to $98

Child

• Cash fare remains at $0.75
• Price of single tickets remains at $0.60

Other

• the cost of each day pass increases from $10.75 to $11
• the cost of each Greater Toronto Area (GTA) weekly pass increases from $55 to $56. (Valid for base fares on TTC, Brampton Transit, MiWay and York Region Transit vehicles.)
• the cost of each downtown express sticker increases from $37.75 to $38.50

— Richard