Purpose of Fares FARES FED/STATE GRANTS ACCESS-A-RIDE SALES TAX FACILITIES RAIL SERVICE BUS SERVICE
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1 Purpose of Fares Fare revenue helps offset the cost of operating and maintaining transit services and facilities Fare changes are intended to increase revenue to actual or forecasted increases in operation and maintenance costs (inflation) Operating costs are forecasted in the RTD budget REVENUE SERVICE FARES FED/STATE GRANTS SALES TAX ACCESS-A-RIDE FACILITIES RAIL SERVICE BUS SERVICE
2 RTD Board Fare Policy Overview Fare revenue targets are set by RTD Board of Directors The Board s fiscal policy statement directs staff to plan a fare adjustment every three years to adjust Current budget for incorporates planned fare increase assumption in both 2019 and 2022 Fare revenue targets for 2019, 2020, & 2021: for inflation Policy directs that staff review potential fare adjustments and establish a fare structure, to ensure: - It s understandable - It s implementable - It s equitable - It achieves revenue levels established in RTD budget Year 2021 $175.3M Year 2019 $165.2M Year 2020 $172.8M
3 What do fare increases do for you? RTD can keep up with scheduled maintenance of park-n-rides, bus stops, train stations, and other facilities RTD can afford new projects (e.g., new shelters, more seating at stations and park-n-rides, new vehicles, innovate mobility projects)
4 Current Fare Structure Local Bus & Rail Regional Bus & Rail Airport Bus & Rail Fare Type Cash (includes free one-way transfers) Adult Discount* Adult Discount* Adult Discount* $2.60 $1.30 $4.50 $2.25 $9.00 $4.50 MyRide One-way Trip $2.35 $1.15 $4.25 $2.10 $8.75 $4.35 Day Pass $5.20 $2.60 $9.00 $4.50 Included in Regional Fare Day Pass Book $26 $13 $45 $22.50 Included in Regional Fare 10-Ride Ticket Book $23.50 $11.75 $40.50 $20.25 Upgrade Required** Monthly Pass $99 $49 $171 $85 Included in Regional Fare ValuPass (Annual) $1,089 $539 $1,881 $935 Included in Regional Fare * Applies the federally required 50% discount to seniors 65+, individuals with disabilities, Medicare recipients and the non-required 50% discount to students in elementary, middle and high school, ages ** Individual 10-ride tickets can be upgraded to the $9 airport fare. Local ticket upgrade is $6.40 (discount $3.20). Regional ticket upgrade is $4.50 (discount $2.25).
5 Access-A-Ride Fares
6 Fare change elements All three alternatives include the following fare change elements: 3-hour Pass EcoPass, Neighborhood EcoPass, & CollegePass FlexPass Replaces current one-way trip with 3-hour transfer Price based upon the previous year s utilization Retain without discount MyRide 10-ride ticket book ValuPass Retain without $0.25 discount Retain without 10% discount Discontinue and promote monthly pass
7 Option 1 No increase in Base Fare Fare type Local bus & rail Regional bus & rail Airport bus & rail Adult Discount* Adult Discount* Adult Discount* Cash/MyRide 3-Hour Pass $2.60 $1.30 $4.50 $2.25 $9.00 $4.50 Day Pass $5.20 $2.60 $9.00 $4.50 Included in Regional fare Day Pass Book $26 $13 $45 $22.50 Included in Regional fare 10-Ride Ticket Book $26 $13 $45 $22.50 Upgrade required** Monthly Pass $99 $49 $171 $85 Included in Regional fare * Applies the federally required 50% discount to seniors 65+, individuals with disabilities, Medicare recipients and the non-required 50% discount to students in elementary, middle and high school, ages ** Individual 10-ride tickets can be upgraded to the $9 airport fare. Local ticket upgrade is $6.40 (discount $3.20). Regional ticket upgrade is $4.50 (discount $2.25).
8 Option 2 Regularly scheduled Fare Change Local bus & rail Regional bus & rail Airport bus & rail Fare type Adult Senior/ Disabled* Youth** Adult Senior/ Disabled* Youth** Adult Senior/ Disabled* Youth** Cash/MyRide 3-Hour Pass $2.90 $1.45 $0.85 $5.00 $2.50 $1.50 $10 $5 $3 Day Pass $5.80 $2.90 $1.70 $10 $5 $3 Included in Regional fare Day Pass Book $29 $14.50 $8.50 $50 $25 $15 Included in Regional fare 10-Ride Ticket Book $29 $14.50 $8.50 $50 $25 $15 Upgrade required*** Monthly Pass $110 $55 $32 $190 $95 $57 Included in Regional fare * Applies the federally required 50% discount to seniors 65+, individuals with disabilities, Medicare recipients. ** Applies 70% youth discount to persons ages 19 & under. *** Individual 10-ride tickets can be upgraded to the $10.00 airport fare. Local ticket upgrade is $7.10 (senior/disabled $3.55, youth $2.15). Regional ticket upgrade is $5.00 (senior/disabled $2.50, youth $1.50).
9 Option 3 PPWG recommendation Local bus & rail Regional bus & rail Airport bus & rail Fare type Adult Senior/ Disabled* Youth** Adult Senior/ Disabled* Youth** Adult Senior/ Disabled* Youth** Cash/MyRide 3-Hour Pass $3.00 $1.50 $0.90 $5.25 $2.60 $1.60 $10.50 $5.20 $3.20 Day Pass $6.00 $3.00 $1.80 $10.50 $5.20 $3.20 Included in Regional fare Day Pass Book $30 $15 $9 $52.50 $26 $16 Included in Regional fare 10-Ride Ticket Book $30 $15 $9 $52.50 $26 $16 Upgrade required*** Monthly Pass $114 $57 $34 $200 $99 $61 Included in Regional fare * Applies the federally required 50% discount to seniors 65+, individuals with disabilities, Medicare recipients. ** Applies 70% youth discount to persons ages 19 & under. *** Individual 10-ride tickets can be upgraded to the $10.50 airport fare. Local ticket upgrade is $7.50 (senior/disabled $3.70, youth $2.30). Regional ticket upgrade is $5.25 (senior/disabled $2.60, youth $1.60).
10 What is the Pass Program Working Group? The Pass Program Working Group (PPWG) is a 25-member group asked to evaluate and recommend changes to RTD s pass programs and existing fare policy PPWG Participating Organizations RTD Regional Air Quality Council North Area Transportation Northeast Transportation Alliance Connections After more than a year of public meetings and ridership modeling, the group created alternative three - the PPWG recommendation Denver Metro Chamber of Commerce City and County of Denver: Public Works Mile High Connects Denver Regional Mobility and Access Council City and County of Denver: Office of Children s Affairs Inter-Neighborhood Cooperation Transit Alliance FRESC Denver Regional Council of Governments Downtown Denver Partnership Colorado Department of Transportation Denver Public Schools Denver South Economic Development Partnership Boulder City Council Boulder Chamber of Commerce Boulder County
11 PPWG Objectives and Guiding Principles Objectives Current Pass Programs Revisit and refine goals for each individual pass program Refine pricing and administration of each pass program Recommend pass program policy revisions to the Board of Directors 1. CollegePass 2. EcoPass a. Business EcoPass b. Neighborhood EcoPass Guiding Principles c. Master Contract EcoPass Cost Effective Administration Equitable Access 3. FlexPass 4. Nonprofit Improve Customer Convenience Increase Ridership Meet Strategic Budget Plan Revenue Targets Promote Greater Brand Loyalty Provide RTD Revenue Certainty Simplify Passenger Operator Interaction
12 PPWG recommendation summary The PPWG recommended the following fare change elements: EcoPass, Neighborhood 3-hour Pass Low-income program Youth discount EcoPass, & CollegePass Replaces current one-way trip with 3-hour transfer Price based upon the previous year s utilization 40% discount for low-income riders Increase discount from 50% to 70 % ValuPass FlexPass MyRide 10-ride ticket book Retain without discount Retain without $0.25 discount Retain without 10% discount Discontinue and promote monthly pass
13 PPWG EcoPass, Neighborhood EcoPass, & CollegePass Pricing The PPWG proposed the EcoPass, Neighborhood EcoPass, and CollegePass be priced based upon utilization EcoPass Neighborhood EcoPass CollegePass A group of employers and employees share the collective cost of trips taken A group of residents share the collective cost of trips taken A group of students share the collective cost of trips taken
14 PPWG Youth Discount Recommendation 70% discount Eligible riders = 6-19 years old Children 5 years and under ride free with fare paying adult (The original PPWG recommendation included a proposed 12 and under free. Due to enforcement concerns, RTD staff is recommends the current policy.) Local Regional Airport Fare Type Bus & Rail Bus & Rail Bus & Rail Youth Youth Youth Cash/MyRide 3-Hour Pass $0.90 ($3.00)* $1.60 ($5.25)* $3.20($10.50)* Day Pass $1.80 ($6.00)* $3.20 ($10.50)* Included in Regional Fare Day Pass Book $9 ($30.00)* $16 ($52.50)* Included in Regional Fare 10-Ride Ticket Book $9 ($30.00)* $16 ($52.50)* Upgrade Required** Monthly Pass $34 ($114.00)* $61 ($200.00)* Included in Regional Fare * Full fare in red. ** Individual 10-ride tickets can be upgraded to the youth $3.20 airport fare. Youth local ticket upgrade is $2.30. Youth regional ticket upgrade is $1.60.
15 PPWG Low-income Program Recommendation 40% discount on MyRide 3-hour pass and DayPass mobile ticket Eligible riders = persons from households at or below 185% of the federal poverty level (FPL) Persons in Household Income Threshold 100% FPL 185% FPL 1 $12,140 $22,459 2 $16,460 $30,451 Local Regional Airport 3 $20,780 $38,443 Fare Type Bus & Rail Bus & Rail Bus & Rail 4 $25,100 $46,435 Low-Income Low-Income Low-Income Adult Adult Adult 5 $29,420 $54,427 MyRide 3-Hour Pass Day Pass (Mobile Ticket) $1.80 ($3.00)* $3.15 ($5.25)* $6.30 ($10.50)* $3.60 ($6.00) * $6.30 ($10.50)* Included in Regional Fare 6 $33,740 $62,419 7 $38,060 $70,411 8 $42,380 $78,403 * Full fare in red.
16 Low-income & Nonprofit Programs Comparison Nonprofit Program (current) Low-Income Program Eligibility Threshold 185% FPL 185% FPL Discount Percentage 50% 40% Program Purchase Limits Limited to $6.8 Million in fares Unlimited Eligible Fare Media Distribution of Fare Media 10-Ride Ticket books, Monthly Passes, Day Passes Distributed by Participating Nonprofit Organizations MyRide and Mobile Day Passes Distributed by RTD
17 Modeling chart of Fare Options Revenue (millions) Ridership (millions) Fare Options Low-income program Youth fare No fare increase Current fares: Local $2.60 Regional $4.50 Airport $ Regularly scheduled fare review Proposed fares: Local $2.90 Regional $5.00 Airport $ PPWG recommendation Nonprofit program $6.8M cap Nonprofit program $6.8M cap 50% discount $152.8 $159.7 $ % discount $162.8 $171.2 $ Proposed fares: Local $3.00 Regional $5.25 Airport $ % discount 70% discount $164.7 $171.2 $ Strategic budget plan revenue target $165.2 $172.8 $175.3
18 Timeline and next steps We are here!!! March 7 June July August Deliver recommendations to Senior Leadership Team Public meetings Board update Board update Public input summary March 13 June September Board update Recommendation overview Board update Fare change proposal Board votes on fare change March April Staff analysis of recommendations April 24 Board study session Pass program and fare analysis update
19 2018 anticipated expenditures Reserves: $197.7M Bus Operations: $144.1M Rail Operations: $126.5M Debt: $64.7M Private Carrier Operations: $104.3M Interest: $174.6M Access-a-Ride Operations: $47.5M New Capital: $187.8M Other Operating Costs: $253.2M Total expenditures = $1.3 billion
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