The cost of a transit pass will go up slightly in Montreal in 2007, though fares will remain the most competitive in North America, said the city's public transit corporation (STM) Tuesday.

The fare increase will enable the STM to keep up with rising operation costs, estimated at $880.3 million for 2007.

The 2007 fare increase breaks down as follows:

• Regular transit pass: from $63 to $65/month
• Reduced fare pass (students and seniors): $33.75 to $35/month
• Weekly pass: $18.50 to $19.00
• Transit tickets (6): $11.50 to $11.75
• Transit tickets, reduced fare (6): $6.00 to $6.25

But it won't help the corporation fill its 2006 budget deficit, which is roughly $9.6 million.  That deficit will carry over to the 2008 budget, as the STM waits to hear from the provincial and federal governments on transit funding, said Claude Trudel, STM's administrative council president.

Revenue generated by transit passes makes up about about 47 per cent of the STM's budget, so fare hikes are likely in the future, Trudel said.

New commuter train for the Laurentians

And starting in the new year, residents in and around Saint-Jérôme, a town north of Montreal in the Laurentians, will be able to travel into the city via a commuter train, said the Metropolitan Transport Agency (AMT).

Four trains will travel into Montreal in the morning, and four will return to Saint-Jérôme in the evening, the AMT said.

The commuter service will start on Jan. 8, 2007.