A TTC streetcar passes in front of the Toronto skyline. Transit fares in Toronto will be frozen for at least one year, Mayor David Miller says. (Frank Gunn/Canadian Press)

In a step to address Toronto's deteriorating economic situation, Mayor David Miller has announced a freeze on public transit fares.

Miller told reporters at City Hall on Wednesday that current economic conditions are "nothing short of unpredictable" and no fare increase will be imposed next year by the Toronto Transit Commission.

"The scope of what we're witnessing is unprecedented and worldwide," Miller said as he headed into a meeting to discuss the city's 2009 capital budget,

Right now commuters pay a $2.75 cash fare, or $22.50 for 10 tokens, with discounts for seniors, children and students.

A monthly adult Metropass sells for $109.

Miller's announcement means those fares will stay put for at least the next 12 months.

Miller acknowledged that many people are out of work or likely to lose their jobs, and it would be a bad time to increase the cost of public transportation for people looking for work.

"The TTC's budget is under considerable pressure. I spoke to the general manager last night and asked him to do everything in his power where I could be able to recommend a fare freeze. Which means the TTC's going to have to look at its budget very carefully," Miller said.

The last increase in TTC fares was in November 2007, when the price of a Metropass increased from $99.75 to $109.

Late Wednesday council did approve the $1.6-billion capital budget for 2009, with nearly half the money targeted at repairing and maintaining the TTC.

New bike lanes, self-serve library kiosks, a city services call centre, even renovations to Toronto City Hall's wedding chapel are also getting some attention. But it is the city's transit system that is at the top of the agenda.

A total of $782 million will be spent on keeping existing bus, subway and streetcar lines working.