Metro riders may pay smaller fare increases than expected, thanks to an improving economy and extra cost cutting, the transit agency said Sunday.
Metro officials said they will need $16 million less than projected to run the rail system during the year that starts July 1. The board of directors’ finance committee is scheduled to decide Thursday what that means for fares and for the amount local taxpayers will contribute to the system.
Opinions from riders, as well as advice from board members, will shape those fare options, budget director Bill Green said.
“The details are yet to be worked out. What folks can reasonably expect is that Metro riders may see less-than-expected fare increases,” spokesman Dan Stessel said.
Metro predicted in November that rail riders would have to pay about 5 percent more on average for the next year to help fill $66 million of a $116 million budget gap, though the fare increase could be more or less depending on the trip. General Manager Richard Sarles had proposed a $5.75 maximum one-way fare. Bus riders using SmarTrip cards would have to pay 10 cents more, up to $1.60, per trip. Parking at rail stations also would climb by 25 cents.
The agency’s budget also asked the local governments that help fund Metro to contribute $53 million on top of the $622 million they are paying this year.
But now, the transit agency says it cut $7 million in costs by paying for bus improvements with an unspent $2 million surplus, planning to spend $1 million less on MetroAccess, and $4 million in cheaper contracting methods.
Metro also predicted that 11 million more riders would take the train next year than expected, putting an additional $9 million in Metro coffers. A brighter jobs outlook for the region, faster population growth and higher gas prices mean that about same amount of people will ride the system in fiscal 2013 as will this year, Green said.
Even with the cost savings, fiscal 2013’s operating budget is about $100 million larger than last year’s, reaching $1.6 billion. The extra money will be used to pay increased pension costs, improve escalators, prepare for the opening of the Silver Line in 2013 and continue to make safety improvements recommended by the National Transportation Safety Board after 2009’s fatal Red Line crash, Metro said.
“We’re always looking for efficiencies. That’s been an ongoing process for several years. But we’re also in a rebuilding phase, so this is an era of ramping up and rebuilding, as opposed to the traditional things that you do when you’re trying to get leaner, [such as] reducing staff,” Stessel said.
