Council will hold hearings on proposal to increase transit fares

Proposed increases would help address shortfall from rising fuel prices, decline in motor vehicle sales

Contact: Bonnie Kollodge
651-602-1357

ST. PAUL—June 23, 2008—The Metropolitan Council will hold public hearings next month on a proposed increase in transit fares that, if fully implemented, would go into effect in two phases, with a modest initial increase on Oct. 1 and a second increase in 2009.

The proposal calls for a 25-cent increase beginning Oct. 1 on all regular-route service, and a 50-cent increase on Metro Mobility service for people with disabilities. In addition, the morning rush-hour, and rush-hour fares, would be extended by one-half hour and start at 5:30 a.m. instead of 6 a.m.

If approved, new cash fares would be $1.75, $2.25 or $3 depending on the type of service and time of day. New Metro Mobility fares would be $4 during weekday rush hours and $3 at other times.

A second fare increase in 2009, at a date to be determined, could add up to an additional 50 cents to the cost of a bus, train or Metro Mobility ride, depending on the cost of fuel and other economic factors.

The proposal was recommended Monday by the Council’s Transportation Committee. If approved by the full Council on Wednesday, it will be the subject of a series of eight public hearings and meetings in July before final Council action. See the Transportation Committee business item with details about the proposed fares (pdf).

A fare increase is needed primarily to help offset rising fuel costs and lower-than-expected revenues from the Motor Vehicle Sales Tax (MVST), which helps pay for transit, and reduce a projected $15 million shortfall in the state fiscal year that begins July 1, as well as an expected funding gap in the next biennium.

The proposed increase would be implemented by all service providers, including Metro Transit, the region’s largest provider of transit service, Metro Mobility, suburban transit providers, and dial-a-ride and other contacted service.

“The rising cost of fuel affects transit in a couple of ways,” said Council Chair Peter Bell. “It increases the cost of doing business. And it increases ridership, which is good for transit, but also increases our operating costs. We need to be able to respond in the shorter term as well as have the flexibility to adjust fares again next year in the event our costs continue to escalate.”

Upcoming public hearings and meetings

Monday, July 7: 5:30 p.m. -- 6:30 p.m.
Northtown Mall, Community Room
398 Northtown Drive, Blaine

Tuesday, July 8: 6:30 --7:30 p.m.
Hopkins Center for the Arts
1111 Main Street, Hopkins

Wednesday, July 9: Noon -- 1:00 p.m.
Minneapolis City Hall – Conference Room 333
350 South Fifth Street, downtown Minneapolis

Wednesday, July 9: – 5:30 – 6:30 p.m.
Burnsville City Hall – Chambers
100 Civic Center Parkway, Burnsville

Thursday, July 10: 6:30 -- 7:30 p.m.
Maplewood Community Center
2100 White Bear Avenue, Maplewood

Monday, July 14: 5:30 – 6:30 p.m.
Eden Prairie City Hall - Heritage Room
8080 Mitchell Road, Eden Prairie

Tuesday, July 15: Noon -- 1:00 p.m.
Metropolitan Council – Chambers
390 Robert Street North, downtown St. Paul

Tuesday, July 15: 5:30 – 6:30 p.m.
Seward Square Apartments -- Meeting Room
2121 South 9th Street, Minneapolis

Members of the public can also comment by emailing the Regional Data Center at data.center@metc.state.mn.us . Comments can be mailed to the Data Center at 390 N. Robert Street, St. Paul 55101 or faxed to 651.602.1464. Recorded phone messages can be directed to 651.602.1500 (TTY 651.291.0904). The public comment period closes at 5 p.m. July 25.

Fast Facts

Transit is an environmentally-friendly, convenient, safe and affordable transportation option
Metro Transit, the region’s largest provider of transit service, expects to provide 80 million rides in 2008
MVST revenues for FY2009 are forecasted to be $124 million, $16 million less than the Nov. 2007 forecast (in FY08, metro-area transit receives 24 percent of MVST revenues, and when the five-year phase-in is complete in 2012, metro-area transit will receive 36 percent of MVST revenues)

The gross cost of fuel increased 65% from May 2007 to May 2008

The Legislature, in 2008, approved a one-time allocation of $30.8 million from county sales tax receipts to transit operations
The regional transit operating budget in FY2009 is $378.4 million (all transit service, including Metro Mobility, Metro Transit, Suburban Transit Providers, Council contracted routes and dial-a-ride service)
The last fare increase took effect July 1, 2005.

The Metropolitan Council is the regional planning organization for the seven-county Twin Cities area. The Council runs the regional bus and light rail system, collects and treats wastewater, coordinates regional water resources, plans regional parks and administers funds that provide housing opportunities for low- and moderate-income individuals and families. The Council board is appointed by and serves at the pleasure of the governor.

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