March 18, 2009

New AATA fares approved for 2009-10

Approved Fares

ANN ARBOR, MI – Following an extensive effort by the Ann Arbor Transportation Authority (AATA) to gather public input on its proposed fare changes, the new fare structure was approved tonight by the AATA board of directors.

In a unanimous vote, the board agreed to implement a two-phase fare increase from $1 for a full adult fare to $1.25 on May 3, 2009 and to $1.50 in May, 2010. Fares for Fare Deal card holders and K-12 students will go from 50 cents to 60 and 75 cents, respectively. Senior and A-Ride card holders will no longer be required to pay a fare on fixed-route service.

Addressing the need for the fare adjustments, AATA Board Chair David Nacht said, “Although AATA was able to adopt a balanced budget for FY 2009 with no increase in expenses from the previous year, our five-year projection shows significant losses in future years due to funding and expense trends.

REVENUE TRENDS
“These trends show that there will be a decrease in local property tax revenue from lower property values, the removal of the Pfizer property from the tax rolls and continued pressures on state operating assistance. The costs to operate service continue to rise, despite the implementation by AATA of many cost-reduction strategies.”

While AATA has seen fixed-route ridership increase by 40 percent over the past four years and demand for our paratransit service increase by 17 percent over the past three years, balancing revenues and expenses continues to be a challenge, Nacht said.

Fares paid by riders represent only a fraction of the costs to operate the service, with fares covering only 21 percent of the cost on fixed-route service and 12.8 percent of the demand-response service for Senior and A-Ride card holders.

“As ridership increases, fare revenues do increase, but do not cover the entire cost of providing the service,” Nacht explained. “In fact, as ridership increases, it becomes necessary to add new service to avoid leaving passengers behind when buses are full.”

PEER ANALYSIS
Before introducing its proposed fare changes, AATA conducted an analysis of nine peer transit systems in Michigan, Ohio, Wisconsin, Iowa and Tennessee to study their fare structures.

The study showed that AATA had the lowest basic, senior and disability fares among its peers and is the only agency that offers a reduced fare for income-eligible individuals. Only one other system – Toledo – had the same base fare as AATA. Since the analysis was conducted, all but Kalamazoo has raised its fares, Nacht said.

Fares at peer agencies range from $1 in Toledo, Ohio, where transfers were recently discontinued, to $2 in Madison, Wisconsin, which will become effective April 5. The fares for the peer systems average out to just over $1.45.

PUBLIC CONCERN
Commenting on the input from the public about the proposed fare changes, Nacht said, “We were touched by the comments by a number of individuals who expressed concern for their fellow riders who can least afford to ride the bus. We want to reassure them that AATA offers many reduced, discounted or free fares for seniors, ADA- and income-eligible individuals, K-12 students and children five or younger.”

For example, under the new fare structure, there will no longer be a fare for Senior and A-Ride card holders on fixed-route service. These card holders will ride for free, rather than having to pay the current 25-cent fare.

MISPERCEPTION
Gathering input from the public also revealed a common misperception that passengers with special passes are riding for free.

“When you see passengers boarding AATA buses and showing an Mcard, a go!pass, or a Washtenaw Community College Transit Pass, the rider is not paying a direct fare, but the trip is being funded by a third party,” Nacht explained.

NEW PASS
As an added convenience, a new one-day pass will be introduced for unlimited rides during the day of purchase. The cost will be $3.75 for the coming year and will go to $4.50 in May 2010.

OTHER ADJUSTMENTS
The cost for 30-day Flex Passes will also be adjusted from $37.50 to $48 this May and $58 in May, 2010. Reduced-fare Value Passes will be priced at half the Flex Pass cost, while Liberty Passes will be eliminated.

While the new fare structure eliminates the cost for Senior and A-Ride card holders on fixed-route service, the fare on demand-response service will be raised from $2 for an advance reservation to $2.50 this May and $3 in May, 2010. Same-day trips will go from $3 to $3.50 and $4, respectively.

In an effort to defray some of the higher costs of demand-response service for seniors and A-Ride users, adult and child companion fares will also be raised.

NO CHANGES
Transfers will continue to be issued free of charge and valid for 90 minutes and Night Ride, Holiday Ride and A2-Chelsea Express fares will remain at the current levels.

The latest information on AATA routes, schedules and detours is available at 734.996.0400 and on the AATA Routes and Schedules page.