New Fares For Bus Riders
News Articles
05/11/2011
Fares For Riders And Revenue For Agency Now Predictable
The AC Transit Board of Directors adopted a new 10-year Fare Policy that automatically raises fares at regular intervals. The first change will take effect on August 1st with a 10-cent increase in the basic adult fare and a five-cent fare increase for youth, seniors and the disabled.
In what the Directors called a “tough decision,” the board voted 5 to one– with one abstention– to implement the changes largely because they felt they had no choice. “We cannot expect to continue to have low fares without having some impact on service,’’ said Board President Elsa Ortiz, capturing the Board’s overall sentiment. “For that reason I am voting for it.”
The changes, effecting both AC Transit and Dumbarton Express riders, are intended to lead to more logical and equitable fares and pass prices, predictable fare increases over a 10-year period, and creation of a seven-day bus pass. Primarily, now the agency will be better able to plan its budget by better knowing when and how much revenue to expect from fares.
The new 10-year policy raises fares by .25 cents every five years at two-year and three-year intervals (see table below.) A re-evaluation of the agency’s finances is mandated prior to instituting any of the scheduled increases.
The first fare increase in Augusts is expected to boost the agency’s annual revenues by $2.4 million– which roughly equates to 29,000 more hours of bus service.
Currently, the agency is facing a $14.9 million shortfall in working capital for the fiscal year ending on June 30, 2012. The agency is continuing to seek other revenue sources.
The Board also approved a new 7-day pass—available if loaded onto a Clipper card. The pass will be priced at 10 times the relevant cash fare and is good for unlimited travel for seven consecutive days.
Additionally, a two –hour, unlimited transfer plan for riders who use Clipper cards is pending further study.
“We’re left with few other choices given the volatility of current funding sources,” said Interim General Manager Mary King. “We have to consider fare increases, and the new fare structure will result in at least one source of predictable revenue for AC Transit.”
The changes are as follows:
| Cash Fare | Current | Proposed Year 1FY 2011-12* | No ChangeYear 2 | Proposed Year 3FY 2013-14* | No ChangeYears 4 & 5 | Proposed Year 6FY 2016-17* | No Change Year 7 | Proposed Year 8FY 2018-19* |
| Local Adult | $2.00 | $2.10 | $2.25 | $2.35 | $2.50 | |||
| Local Youth | $1.00 | $1.05 | $1.10 | $1.15 | $1.25 | |||
| Local Senior/Disabled | $1.00 | $1.05 | $1.10 | $1.15 | $1.25 | |||
| Transbay Adult | $4.00 | $4.20 | $4.50 | $4.70 | $5.00 | |||
| Transbay Youth | $2.00 | $2.10 | $2.20 | $2.30 | $2.50 | |||
| Transbay Senior/Disabled | $2.00 | $2.10 | $2.20 | $2.30 | $2.50 |
| 31-Day & Monthly Pass | Current | Proposed Year 1FY 2011-12* | No ChangeYear 2 | Proposed Year 3FY 2013-14* | No ChangeYears 4 & 5 | Proposed Year 6FY 2016-17* | No Change Year 7 | Proposed Year 8FY 2018-19* |
| Local Adult | $80.00 | $80.00 | $81.00 | $84.60 | $90.00 | |||
| Local Youth | $15.00 | $20.00 | $26.50 | $34.50 | $45.00 | |||
| Local Senior/Disabled | $20.00 | $20.00 | $26.50 | $34.50 | $45.00 | |||
| Transbay Adult | $132.50 | $151.20 | $162.00 | $169.20 | $180.00 |
*FY (fiscal year) begins July 1 and ends June 30
More background and detail can be found on the AC Transit Web site at www.actransit.org. Click on “Find a GM Memo” and then click again on GM Memo 11-053b.
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