TO: AC Transit Board of Directors
FROM: Kathleen Kelly, Interim General Manager/Chief Executive Officer
SUBJECT: Adopt Planned Fare Increase
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider the adoption of Resolution 25-011 to implement on July 1, 2025, all previously postponed Local and Transbay fare increases that are scheduled to be effective on July 1, 2025, and July 1, 2026; and receive an update on a re-evaluation of fare pricing.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Claudia Burgos, Interim Executive Director of External Affairs, Marketing and Communications
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STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Fares are the District's main revenue source that it has direct control over and that can directly influence ridership.
BUDGETARY/FISCAL IMPACT:
A fare increase is currently scheduled to take effect on July 1, 2025 for Transbay service (raising the base fare from $6.00 to $6.50) and Local service (base fare from $2.50 to $2.75), and together they are expected to generate $4.1 m annually ($0.3m in additional revenue from Transbay and $3.8 million from local service). Staff's recommendation, which would also advance the second Local service fare increase that is planned for July 1, 2026, would increase the Local fare to $3.00, and double the Local fare revenue associated with an increase of the local fare, bringing it to $7.6 million, and, together with the Transbay increase, would raise the total to $7.9 million annually. Pass prices are calculated using a multiplier of the base fare and will also increase accordingly. The additional revenue estimates above include all fares and passes.
The additional $7.9 million in revenue will only partially reduce the $45 million deficit that staff is projecting for FY 2025-26 (as presented to the Board at the February 26 meeting).
The single fare amounts stated above ...
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