Toronto's transit budget committee is debating several fare options to help combat a $95-million gap in the 2016 budget.

The Toronto Transit Commission (TTC) debated the possibility of a fare increase at its monthly budget committee meeting on Tuesday afternoon.

In a report published to the TTC's website on Monday, the TTC's head of finance and treasurer outlined eight possible options for fares in 2016, which were the focus of Tuesday’s debate.

Michael Roche wrote there is a "requirement for additional revenue" to cover service improvements and general cost increases. The report said the TTC would need an additional subsidy from the City of Toronto if fares aren't increased in some way.

The options in Roche's report are:

  1. No fare increase
  2. $0.05 increase on tokens and tickets, $0.25 increase on cash fares
  3. $0.10 increase on tokens and tickets, $0.25 increase on cash fares
  4. Sell adult and student/senior fares for the same price, with a $0.05 increase on all types of fares
  5. Sell adult and student/senior fares for the same price, with a $0.10 increase on all types of fares
  6. $0.05 increase on all types of fares excluding Metropasses, $0.25 increase on cash fares
  7. $0.05 increase on Metropasses only
  8. $0.25 increase on cash fares only

Currently, students and seniors pay $2 for cash fares, while adults pay $3.

In all cases, the Metropass increase would be calculated "pro-rata," meaning the total cost of the increase would be based on the average number of trips taken by pass users in a month. The total possible increase to the cost of a monthly pass has not been provided.

The report said TTC Customer Satisfaction Survey data indicated that customers with lower income levels are more likely to use tokens or Metropasses instead of cash, so those of lower income would not be as greatly impacted by a hike in cash fares.

TTC breakdown of fare type

He wrote a $0.05 hike on tickets, tokens and passes, and a $0.25 hike on cash fares (Option 2) would generate $24 million in revenue.

A $0.10 hike on tickets, tokens and passes (Option 3) would increase the revenue generated to $36 million.

In Options 4 and 5, Roche suggested increasing the student and senior fares to the same rate as adult fares, then increasing adult fares by $0.05 or $0.10.

Roche said other transit agencies in the Greater Toronto and Hamilton Area have merged adult fares with at least one other "customer group," and that it would be consistent with the PRESTO system used on GO Transit.

GTHA transit fares

The final three options are not recommended, according to Roche, because they provide a "negative customer perception," Roche wrote, noting it would appear that increases were only being applied to certain users, rather than all.

For example, in Option 7, only those who use Metropasses would be forced to pay more, while those using tickets, tokens or cash would be spared the hike.

Roche said it would be best to increase all fares at once.

The report said the TTC would generate between $24 million and $41 million under the single cash fare system, when combined with a hike of between $0.05 and $0.10.

Roche noted that cash fares have been unchanged since 2010, when they were increased from $2.75 to $3. The cost of senior and student fares were increased from $1.85 to $2.

However, token prices went up by $0.10 in March, from $2.70 to $2.80. The cost of an adult monthly Metropass also went up, from $133.75 to $141.50. Week passes increased by $0.50 to $40.75, and day passes also increased by $0.50 to $11.50.

At the same time, fares were dropped altogether for children under 12.