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
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
BREAKING Police cordon off Iran consulate in Paris where man threatens to blow himself up: French media
French police cordoned off the Iranian consulate in Paris on Friday, where a man was threatening to blow himself up, Europe 1 radio and BFM TV.
Some Canadian families will receive up to $620 per child today
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
BREAKING Iran fires at apparent Israeli attack drones near Isfahan air base and nuclear site
An apparent Israeli drone attack on Iran saw troops fire air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan, an assault coming in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Ottawa to force banks to call carbon rebate a carbon rebate in direct deposits
Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.
Ontario woman loses $15,000 to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.