METRO BOARD APPROVES FY 2009 BUSINESS PLAN AND NEW FARE POLICY
October 16, 2008
METRO’s Board of Directors approved the agency’s FY 2009 budget today including a 25 percent increase in its base fare – the first increase for the agency in 14 years.
METRO’s overall FY2009 Budget consists of the following:
- Operating Budget $330,000,00
- General Mobility Budget $163,758,000
- Capital Budget $520,556,000
The decision to raise fares was necessitated by rising diesel fuel prices and other operating expenses. For example, diesel fuel expenses will nearly double from $28 million in FY 2008 to $51 million in FY 2009 – an increase of $23 million.
METRO’s bus fare and METRORail fare will increase from $1 to $1.25. Park & Ride fares will go up 25 to 33 percent, depending on the zone:
- Park & Ride Zone 1 increases from $1.50 to $2.00
- Park & Ride Zone 2 increase from $2.50 to $3.25
- Park & Ride Zone 3 increase from $3.00 to $3.75
- Park & Ride Zone 4 increase from $3.50 to $4.50
“We have kept our annual operating costs essentially flat over the last five years” said METRO President & CEO Frank J. Wilson. “There is no other successful business I know that is expanding service and facing extreme cost increases yet spends no more money doing so.”
The agency projects the fare increase will generate $14 million in additional revenue for FY 2009. This will help offset next year’s fuel budget increase of $23 million.
Wilson said the additional revenue also will help METRO add new service to the region, including more Park & Ride and Signature Service. METRO also plans to add 100 new diesel-hybrid buses to its fleet.
Even with the increase, METRO maintains one of the lowest fares in the nation. For example, base fares for Dallas and Ft. Worth are $1.50, Los Angeles charges $1.25, Baltimore costs $1.60, and base fares in Atlanta, St. Louis and Denver are $1.75.
Fares will also rise four to five percent in FY 2010 and FY 2011 to keep up with general inflation. The base fare in 2011 will rise to $1.35.
