Possible hike in LTC bus fares to offset financial strain
Work will soon begin on the London Transit Commission’s 2024-2027 budget submission to city hall.
A new report to transit commissioners provides a high-level outlook on the financial challenges facing the bus system and suggests strategies to balance upcoming budgets including an increase to bus fares.
The budget submission to city hall will be divided into two parts — a base budget for maintaining the status quo and a growth budget for service enhancements.
Budget pressures impacting the base budget include:
- diesel fuel pricing 45 per cent higher than projected in current multi-year budget
- general insurance costs increased 48 per cent during current multi-year budget
- hourly cost of paratransit has increased 27 per cent
- bus/ancillary equipment pricing has increased 37 per cent
Meanwhile, revenue generated from ridership hasn’t fully recovered from the COVID-19 pandemic.
“The 2023 conventional transit service operating budget includes a shortfall of $6.5 million resulting from a combination of decreased passenger revenues, increased expenditures and the desire to maintain the City of London funding at the original multi-year budget submission for 2023,” explained the report.
Earlier this year, city council set the target for the average annual tax increase in the upcoming 2024-2027 municipal budget between 2.9 per cent and 3.9 per cent, plus an additional 0.5 per cent for growth investments.
That target leaves the London Transit Commission with little financial wiggle room.
“A cursory review of the aforementioned issues indicates that the base budget increases for the conventional transit service in the next multi-year budget submission are likely to exceed the City of London targets,” admitted LTC administration in the report.
“The balance of the budget that is not funded by transportation/operation revenues will be shared between fare increases and increases to City of London investment,” the report recommended.
It also notes that fare increases must be undertaken in a manner that do not result in ridership loss.
As he waits at a bus stop, Ian Soares told CTV News he’s worried about how a fare increase would impact Londoners on fixed incomes, “I make a decent amount of money for myself, but I know that a lot of people don’t.”
“I would prefer to pay more if it means that I have better service,” said Dina Koishima before boarding her bus.
London transit has planned thousands of hours of service improvements in the coming years, but budget limitations may force the plan to be scaled back.
Outstanding service improvements from the current five-year service plan, as well as those that have been identified subsequent to the plan’s approval, total 323,800 hours.
They include improving the frequency on routes connecting to Rapid Transit, expanding service to industrial parks, extending routes to new neighbourhoods and longer hours of operation.
However, LTC administration has now recommend cost estimates be provided for the addition of just 22,000 and 24,000 hours each year for the commissioners’ consideration, “these scenarios would provide the ability to address between 2 per cent and 30 per cent of the outstanding service improvements over the four year period and result in a service increase of approximately three per cent annually.”
“I wouldn’t mind paying extra for bus fare because I work downtown,” said Tyler Childerhose as he waits for his bus, “I know how much parking is downtown and the increasing gas prices.”
The London Transit Commission will provide high level budget direction to administration at a meeting May 30, and receive the draft budget submission in August.
CTVNews.ca Top Stories
Ottawa public school board, 3 Toronto-area school boards launch lawsuit against social media giants
The Ottawa-Carleton District School Board and three school boards in the Toronto-area have launched legal action against social media giants, accusing them of "disrupting students' fundamental right to education."
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
Rainfall warnings of up to 90 mm among weather alerts in effect for 7 provinces
Rainfall warnings of up to 90 millimetres, air quality advisories and other alerts have been issued for seven Canadian provinces, according to the latest forecasts.
King Charles calls for acts of friendship in first public remarks since Kate's cancer diagnosis
King Charles III gave public remarks for Maundy Thursday, addressing the importance of acts of friendship, following his and Catherine, Princess of Wales’ cancer diagnoses.
A Nigerian woman reviewed some tomato puree online. Now she faces jail
A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a “malicious allegation” that damaged its business.
Donald Trump assails judge and his daughter after gag order in N.Y. hush-money criminal case
Donald Trump lashed out Wednesday at the New York judge who put him under a gag order that bars him from commenting publicly about witnesses, prosecutors, court staff and jurors in his upcoming hush-money criminal trial.
A fight to protect the dignity of Michelangelo's David raises questions about freedom of expression
Michelangelo's David has been a towering figure in Italian culture since its completion in 1504. But in the current era of the quick buck, curators worry the marble statue's religious and political significance is being diminished.
Democrat who ran on abortion rights flips seat in deeply conservative Alabama
Marilyn Lands, who campaigned on abortion rights in deeply conservative Alabama, won a special election to the Alabama Legislature, in a victory that Democrats say illustrates voter backlash to extreme reproductive restrictions imposed by Republicans.