R2002-31 ADOPTING COMPREHENSIVE CHANGES IN THE OPERATIONS OF THE TRANSIT SYSTEM

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FARE INCREASE BUS FARES The proposed route and service enhancements will cost approximately $303,000 as outlined on the attached listing of affected accounts. Driving the costs are a 36.9% increase in miles and a 29.5% increase in revenue miles. It is proposed that a portion of the increased costs be off set by a fare increase. There has not been a fare increase since 1993 when the fare was raised from $ .50 to the present fare of$ .60. It is proposed to increase the fare by 25%to $ .75. The proposed fare would be in line with or below surrounding communities with the exception of Bloomington (see attached comparison); three (3) transit systems charge $1.00 per ride. When fares are increased, it is expected that some riders will find other means of transportation. Using a standard formula for determining ridership dilution, raising the fare to $ .75 should result in a loss of 9% in ridership while increasing farebox revenues by 15% ($42,111). This is illustrated in the attached chart. The attached chart also shows the effect of raising the fare to � $1.00. Discounted fares such as monthly passes, punch cards, student fares, senior citizen and disabled passengers would also increase. In the past, monthly passes and punch cards have been deeply discounted. A change in pricing philosophy says monthly passes and punch cards are a convenience to the bus rider; not a reason for deep discounts. Therefore, a 10% discount is appropriate for paying for a ride in advance. Senior citizen and disabled fares are dictated by law as being no inore than half of the adult fare. Other discounted fares are calculated to provide an approximate 10% discount. A comparison of present fares and proposed fares is attached. PARATRANSIT FARES The American Disability Act (ADA) allows paratransit services to charge up to twice the regular bus adult fare for this specialized service. The attached comparison shows that most of the surrounding communities charge twice their regular bus fare for paratransit services. DPTS has been charging $ .75 for both the handicapped van program (Operation Uplift) and the taxi program since 1979. The annual cost of the van program is approximately $100,000 with the users contributing approximately $7,400 or 7.4% toward the cost. The taxi program costs approximately $190,800 annually; the riders contribute approximately $32,800 or 17.2%. In order to help offset the subsidies for these programs and the proposed enhanced service handicapped riders will receive, it is proposed to increase the fare to $1.50.