TTC will ask board to approve 10-cent token hike: report

The Toronto Transit Commission has identified different ways it can reduce its budget shortfall, including a 10-cent hike on tokens, effective Jan. 1, 2017.

Adult cash fare to remain at $3.25, according to TTC staff report recommendations

The TTC is proposing a 10-cent fare increase to help balance its books. (J.P. Moczulski/Canadian Press)

The Toronto Transit Commission has identified different ways it can reduce its budget shortfall, including a 10-cent hike on tokens that is expected to generate $27 million in revenue.

The increase, which would go into effect on Jan. 1, 2017, would affect the single adult ride fare, which would be increased from $2.90 per token to $3. All other fare media, including Presto, would also be increased proportionately, with the exception of cash, which was raised from $3 to $3.25 in 2016. 

The proposed hikes are contained in a staff report, which will be presented on Monday to the TTC board as it considers a number of options to reduce the transit agency's shortfall.

Children under the age of 12 will continue to ride the TTC for free but, should the board approve, fares are set to increase for students and seniors.

The report blames the budget shortfall on low ridership, maintenance and energy costs, labour costs, and the implementation of Presto.The TTC is currently facing a shortfall of $172.6 million, as well as a request from the mayor's office to deal with a 2.6 per cent reduction in the subsidy it receives from the city, an amount totaling $15.8 million.

If the board approves all of the report's recommendations, the agency's projected shortfall would be reduced to about $61 million.

The staff report suggests asking city council to approve a one-time draw of $14 million from the TTC Stabilization Reserve. 

The TTC is also proposing delaying the rollout of the Presto fare system and capitalizing on reduced prices for diesel fuel as ways of saving money.