Bus fare hikes debate on Monday
November 26, 2005

City councillors are being asked to consider fare increases for HSR and DARTS of up to 40 cents a ride. Transit staff are recommending a 15 cent increase, but offering four different options to councillors, including no increases at all.

In a comprehensive report to Monday morning's committee of the whole meeting, staff lay out the financial pressures on the transit budget and discuss the positive and negative effects of fare hikes on the social, financial and environmental goals of the city.

The recommended increases are "a $0.15 per trip increase in cash fares; a $0.15 per trip increase in ticket fares; an $8.50 per month increase in monthly passes or equivalent programs (average $0.15 per trip); and a $40 increase ($0.10 average per trip) in the Senior Annual Bus Pass program."

Another option suggests lower increases for tickets (10 cents) and monthly passes ($6.00); while an option designed to recover all expected increases in fuel costs would see cash fares jump 40 cents, tickets 30 cents and passes $16.50 a month.

Staff estimate that fuel expenses will jump $2 million in 2006, up 43% over the $4.7 million spent this year. The city is also faced with covering $1.5 million in previous inflationary costs that were paid for this year with gas tax revenues from the province. Those provincial monies were supposed to have been used exclusively for improvements to the transit system, but the city got a one-time permission from Queen's Park to use them in 2005 to cover operating costs.

While the report recommends fare increases, it points out that these will inevitably mean fewer riders on the buses. The recommended hikes will " result in an estimated permanent loss of 780,000 passenger trips annually" according to the report. Increased ridership added $400,000 in revenues in 2004 and a further $200,000 this year, as the number of people using transit continues to climb. Hamilton's share of the provincial gas tax monies is calculated mainly on ridership, so reductions could lessen the dollars flowing to the city from Queen's Park.

The report notes that higher fares will hurt the 25% of Hamiltonians living in poverty. "Individuals and families living in poverty in Hamilton are often in the position of deciding between paying the rent or buying food," it warns. "After paying for food, housing, clothing and other expenses including heat, hydro, medications, etc., little or no money is available to pay for transportation."

As well, transportation has been previously identified as a major barrier to low-income people getting and holding jobs. "Increasing transit fares will make it even more difficult for low income individuals in Hamilton to access employment and educational opportunities, as well as health/medical services and other community services or supports," concludes the report.

It also warns of the environmental costs of raising fares, reminding councillors that transit generates only 0.3% of Canada 's greenhouse gas emissions in contrast to the 8% that comes from car use in cities. "People who travel by public transit create 65 percent fewer GHG emissions than if they travel by car. Even if someone opts for transit just two days out of five, their GHG emissions will be cut by 25 percent."

The provision of multiple options and the frank discussion about their negative implications is very unusual in city staff reports which usually limit their discussion of alternatives to a declaration that none make any sense. In this regard, the transit report may set a new standard and appears to actually implement the triple bottom line evaluation tool gradually being incorporated into staff reports.

The transit report also offers the alternative that councillors put off a decision until they get into their general budget decisions in January and February.

Monday morning's committee meeting starts at 9:30 am and will also be asked to make decisions about raising some user fees for golf, hockey, recreation centres and other city services. The transit report can be viewed at http://www.myhamilton.ca/NR/rdonlyres/DC9E881A-EB61
-4879-A3A3-0368F5C80F95/0/Nov28PW05125.pdf.