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RiverCities Transit Fares
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SUMMARY STATEMENT:
RiverCities Transit (RCT) has been implementing various improvements recommended in the Cowlitz Transit Authority’s Transit Enhancement Plan of 2010. As these new services have been implemented, agency expenses have increased. The Transit Enhancement Plan predicted that a higher level of sales tax revenue would cover these costs. This revenue stream has not been as robust as predicted. Additionally, higher local funding participation will improve RCT’s opportunities to obtain grants to assist with service and facility improvement costs.
RCT has one of the lowest fares of any agency in Washington that services either an urban or small urban area. Despite ridership increases gained from service expansion, farebox recovery of our fixed route service has declined from 7.6% in 2008 to 4.0% in 2014 due to the on-going costs of the expanded service.
Paratransit has seen an increase in the sales of passes which are deeply discounted. The 2013 cost per trip of Paratransit was $21.99 with a monthly pass of $5 providing unlimited trips. This has resulted in a farebox recovery of 1.2%.
RCT has not increased fares since 2007 when it imposed a ten cent increase for a one-way cash fare. Staff will be asking for a recommendation on a fare increase from the CTA Board of Directors in order to begin the public participation process.
FINANCIAL SUMMARY:
After a brief reduction in revenue due to a fare increase, staff anticipates that increasing fares will bring additional revenue to the transit system. The administrative costs associated with implementing fare increases are minimal and can be absorbed by approved budget.
RECOMMENDED ACTION:
Select a proposed fare schedule and direct staff to begin the public review process.