Why are we reviewing our fares?
The agency conducts a scheduled fare review every three years to identify potential fare changes. This fare review is being informed in part by recommendations from a yearlong Pass Program Study.
Members of the 25-member Pass Program Working Group were asked to evaluate and recommend changes to RTD’s pass programs and existing fare policy. Participants included members of RTD staff and external community leaders representing schools, businesses, municipalities, neighborhood groups and advocacy organizations.
The working group examined a wide range of methods generating fare revenue, and a consultant modeled all the options and their impact on total fare revenue and ridership that will be used to develop a fare change proposal to be considered by RTD’s Board of Directors.Fare Review presentation
What is RTD’s budget and expenses?
RTD’s budget includes operating and non-operating revenue, debt and reserves, capital expenditures, and fund balances, which support the base system, FasTracks construction projects and FasTracks operations.
Revenue is recorded when earned and expenses are recorded when incurred.
2018 Anticipated Expenditures:
- Bus Operations $144.1 million
- Rail Operations $126.5 million
- Private Carrier Operations $104.3 million
- Access-a-Ride Operations $47.5 million
- Other Operating Costs $253.2 million
- New Capital $187.8 million
- Interest $174.6 million
- Debt $64.7 million
- Reserves $197.7 million
Total = $1.3 billion
Click the following chart to view more details:
The Pass Program Working Group full recommendation:
- Introduce low-income fare program, which would change the existing RTD nonprofit program.
- Increase the discount for youth to 70 percent
- Continue EcoPass, Neighborhood EcoPass, and CollegePass and price based on previous year’s utilization
- Replace 3-hour one-way transfer with a 3-hour pass
- Retain 10-Ride ticket book without 10 percent discount
- Retain MyRide without $0.25 discount
- Retain day and monthly passes
- Retain FlexPass program without a discount
- Discontinue ValuPass (instead purchase 12 monthly passes)
- Non-profit and low-income programs to serve low income populations.
Modeling chart of three recommended fare options:
|Fare Options||Low-income program||Youth fare||Revenue
|1. No fare increase|
- $6.8M cap
|2. Regularly scheduled fare review|
- $6.8M cap
|3. PPWG recommendation|
|40% discount||70% discount||$164.7||$171.2||$176.0||92.3||96.6||97.5|
|Strategic Budget Plan revenue target||$165.2||$172.8||$175.3|
What is RTD?
How is RTD funded?
RTD’s main source of funding comes from sales and use taxes. The agency’s operating revenues come from sales taxes and passenger fares. Sales tax revenue account for 52 percent while passenger fares account for 12 percent, grants account for 34 percent and the remaining two percent comes from miscellaneous sources.
Sales and use tax revenues are affected by the local economy in which changes will affect the level of funding available to RTD during its fiscal year. RTD cannot adopt a budget with operating expenses exceeding anticipated operating revenue.