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January 10, 2012

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FareSaver Price Increase

Commission Approves TransLink’s Application for FareSaver Ticket Price Increase on 1 April 2010

Under the South Coast BC Transportation Authority Act, if TransLink wishes to increase the price of “short term” fares (e.g. cash fares and FareSaver ticket books) faster than 2% per year, it must first obtain the Commission’s approval.

On 30 October 2009 TransLink applied to the Commission for approval to increase the price of books of ten FareSaver tickets faster than 2% per year on 1 April 2010.

For detail here is the Commission’s Order 10-01 (a 2.5 MB pdf file), approving the FareSaver ticket price increase, including the Commissioner’s reasons for the decision, questions and answers about TransLink’s application, and a summary of comments received from the public prior to the decision.

Following the Commission’s approval, the current and future prices are as follows:

Price of a FareSaver Book of 10 Tickets

 

Current Price
until 31 March 2010

Price
 Starting 1 April 2010

1 Zone Adult

$19.00

$21.00

2 Zone Adult

$28.50

$31.50

3 Zone Adult

$38.00

$42.00

 Concession

$16.00

$17.00

In approving the increase, the Commissioner stated that he accepts that, together with increases in parking tax and fuel sales tax, the proposed increases in fares should generate additional revenues, over TransLink’s Base Plan, in the order of $130 million in 2010, sufficient to halt the significant drawdown on TransLink’s cash reserves which has occurred over recent years.

Cash fares (or single ticket prices) will be unchanged on 1 April 2010 as TransLink has not applied to increase them on that date.

Increases in Future Years Rejected

TransLink simultaneously applied to increase fares, including cash fares, faster than 2% per year, in the years 2013, 2016 and 2019. The Commissioner rejected the application for these increases, stating that he:

  • was reluctant to allow short-term fares to rise so quickly, without TransLink needing to return for approval for ten years since, once given, approval cannot be retracted;
  • noted that since 2004 TransLink’s average cost per vehicle-kilometer has increased 15% over and above the general rate of inflation, an increase that can only partly be explained by increases in fuel, security costs and maintenance costs as a result of more technology on buses;
  • considered that TransLink should demonstrate diligence in cost containment as a condition of further approvals;
  • expected changes before 2019 in government policy, technology, and other innovations to drive transit ridership, improve the utilization of TransLink’s services and enhance its revenue picture; and
  • wished to be positioned to pass part of future productivity gains to fare-payers through lower-than-otherwise-required fare increases;

Other Fares Will Also Increase in 2010

Note that the approved increases in FareSaver ticket prices for 2010 have the effect of creating room for TransLink to increase monthly pass prices as well, while still keeping the passes an attractive option, relative to 10-ticket FareSaver books, for frequent transit customers. Monthly passes are not a “short term fare” under the law and as such are not directly regulated by the Commission. Customers should be aware, however, that TransLink proposes to make the following increases in Monthly FareCard prices:

Price of a Monthly FareCard

 

Current Price
until 31 March 2010

Proposed Price
 Starting 1 April 2010

1 Zone Adult

$73.00

$81.00

2 Zone Adult

$99.00

$110.00

3 Zone Adult

$136.00

$151.00

Concession

$42.00

$46.50

FastTrax Student - all zones

$73.00

$81.00

TransLink proposes to increase certain other fares on 1 April 2010. These include annual employer passes on conventional transit and, on West Coast Express commuter rail, weekly, 28 day and employer passes. 

Before making any decision on the FareSaver price increase the Commission considered all written comments from the public. The period for receiving public comments ended 4 December, 2009. A comprehensive summary of the public comments received was published on 7 January 2010 and is attached to the formal Order 10-01.

The Process Leading to the Commission’s Decision

On 23 October 2009 the Mayors’ Council approved supplementary fares (within a TransLink 10-year plan called Funding Stabilization). One of these is the increase on the price of books of 10 Faresaver tickets. TransLink cannot charge passengers this higher price without the further approval of the Commission. TransLink applied for this on 30 October 2009.

Under the SCBCTA Act, after 30 days for public comment, the Commission may decide to hold a public hearing.  In its final decision on whether to approve the fare, the Commission must weigh four considerations:

  • maintain financial stability of TransLink;
  • allow TransLink to provide planned services;
  • encourage TransLink to minimize expenses; and
  • keep fares as low as possible.

Here is a summary time-line diagram of the process (a one-page PDF file).  For further detail, here is an external link to the relevant section 223 of the SCBCTA Act.

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