Transit Windsor's board of directors is considering a 10 per cent fare increase in 2013.

Rising costs are causing a problem for the city-owned bus company.

Transit administration said the system is strained to the breaking point.

More revenue is needed just to maintain current service levels.

Coun. Bill Marra chairs the transit board of directors:

"We've heard, for example ... fuel costs have gone [up] 23 per cent the last five years," Marra said. "The last real increase in fares was in 2008. There was some adjustments made in 2011, but that was part of the broader fare strategy where we actually saw some very good initiatives go forward."

If approved, a 10-per-cent increase would raise the cash fare by a quarter to $2.75.

Tunnel bus fares would go from $4 to $4.40, one way.

Increasing the price of cash fares, tickets and passes would generate more than $600,000 for the bus company.

Adding to the problem is city council's directive that the transit department reduce its budget by 10 per cent.

General manager Penny Williams said the only alternative to raising fares is to cut service, at a time transit is enjoying an increase of three per cent in ridership.

"We would probably have to take a look at about $1.5 to $2 million in service reductions, which would be more difficult and more hardship on the customers," Williams said.

The board of directors will look over the proposal again in late November.

City council has the final say on any fare hike. It would be discussed during budget meetings early in the new year.