Monday, January 17, 2011

OC Transpo fare hike likely this year

As reported on 580 CFRA, Transit Commission chair Diane Deans suggested another OC Transpo fare hike is likely in this year's budget.

The head of the new Transit Commission is warning the City of Ottawa will likely have to increase transit fares for a fourth straight year.

OC Transpo fares increased 7.5 per cent last March, the third straight year transit fares increased.

Council hiked fares in the 2010 budget in a bid to reach a
50-50 split in covering the cost of OC Transpo operations between fares and property taxes.
I'm not terribly surprised there's going to be another fare hike; no one's ever denied there would be one, and with the aforementioned 50-50 split in funding OC Transpo, fares will go up to keep pace with ever-increasing operating costs. Should fares hold steady one year, it would mean either a reduction in service, or an increase in funding from property taxes.

Deans said she's hoping to minimize the hike, though, which is (aside from being an obvious statement) a good thing to hear. She's hoping to keep the rise to around the inflation rate.

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