Despite objections, transit fares to rise

Kelowna City Councillors were not unanimous in the need to increase transit fares by a quarter across the board.

Photo: Wayne Moore - Castanet File Photo

Councillors voted 7-2 in favour of the increase Monday with Councillors Michele Rule and Charlie Hodge casting dissenting votes.

The increase means fares will rise 25 cents beginning January 1, 2012. Adult and college student fares will increase from $2 to $2.25 while fares for students up to grade 12 and seniors will rise from $1.75 to $2.

"This is actually a 50 cent increase because I think 90 per cent of people who go one way on the bus likely use the bus to go back home again," says Hodge.

"The average person who rides the bus, a lot of them are seriously watching their pennies, that's why they ride the bus. We're just getting ridership to where we want it to be and I'm concerned this is not the right time to be making this increase."

Fares on Kelowna Transit have not increased since 2007 and part of the justification for this increase is to increase cost recovery in the wake of numerous system improvements made over the last few years.

Financial Services Director Keith Grayston told council costs recovery levels have decreased from 35 per cent in 2007 to 26 per cent this year.

"Philosophically, I don't have a problem with taxpayers subsidizing the bus drivers because taxpayers subsidize all the car drivers because we provide roads and we don't charge a road-user fee," added Rule in opposing the increase.

"I don't think we need to increase fees right now. We've just started to see an increase in ridership based on increased service. We should let that go and we should let people continue to use the bus and see how they like it."

Since 2005, Grayston says expenditures to the system have nearly doubled from more than $9M in 2005 to $17.7M in 2010.

Service hours have jumped 55 per cent from 113,000 hours in 2005 to 176,000 in 2010.

Councillor Robert Hobson says the rational for the increase was sound given the improvements to the system.

Councillor Andre Blanleil agreed.

"Twenty-five cents is not a huge increase. We subsidize this enormously," says Blanleil.

"The taxpayer can only subsidize so much, and I know we want to get people out of their cars, but the reality is it's a huge cost. i think this is reasonable."

While she voted in favour of the increase, Mayor Sharon Shepherd was concerned with the reaction of university students at UBCO.

While the increase in the U-Pass used by UBCO students is still under negotiation, the pass would tentatively jump from $50 to $60.

Students are expected to vote on the increase early in the new year and Shepherd says if they don't buy in, it could have disastrous consequences.

"My concern is unless we have the support of the student union and agree to meet their concerns, if they turn down the U-Pass, our system will fall apart," says Shepherd.

"I'm worried about the timing. We're going to have to work hard to get them to buy in. If all they see is an increase and no other commitment, I'm worried."