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1979 Annual Report of the Toronto Transit Com­ Through the Farebox and Other Revenues

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1979 Annual Report of the Toronto Transit Com­ Through the Farebox and Other Revenues TORONTO TRANSIT COMMISSION ANNUAL REPORT TO THE MUNICIPALITY OF METROPOLITAN TORONTO 1979 ' I TORONTO TRANSIT COMMISSION COMMISSIONERS JULIAN PORTER, Q.C., Chairman KARL L. MALLETIE, Vice Chairman PAUL GODFREY, Commissioner JEFFERY S. LYONS, Q.C., Commissioner ALAN TONKS, Commissioner JULIAN PORTER OFFICIALS R. MICHAEL WARREN, Chief General Manager R.M. WARREN JOHN T. HARVEY, General Manager- Operations PATRICK J. McCANN, General Manager­ Engineering and Construction KARL L. MALLETTE J.G. McGUFFIN JAMES G. McGUFFIN, General Secretary LLOYD 0 . MORLEY, Treasurer and Comptroller W. GRAHAM CHASE, General Counsel J.T. HARVEY PAUL GODFREY L.O. MORLEY P.J . McCANN JEFFERY S. LYONS W.G. CHASE ALANTONKS 2 June~ ; 1980 will continue to be heavily influenced by general infla­ Paul V. Godfrey, Chairman tion, and fare increases will probably continue to be and Members of the Council of the necessary in order to maintain a reasonable balance Municipality of Metropolitan Toronto between operating subsidies contributed by Metro Ladies and Gentlemen: Toronto and the Province, and revenue raised internally The 1979 Annual Report of the Toronto Transit Com­ through the farebox and other revenues. This issue has mission is presented for the approval of the Council of been addressed as part of the study undertaken by a . the Municipality of Metropolitan Toronto. joint Metro-TTC task force which culminated in the 1979 was an encouraging year for the Commission. report "Transit in the 1980's: A New Direction:' Although fares were increased 16.7% in March of 1979, Improvements in the system continued to be made in more riders rode the system in 1979 than in 1978, 1979. Construction continued on the eastern and west­ reversing a three year downward trend in passengers ern extensions of the Bloor-Danforth-. Subway to Ken­ carried. At the same time the Commission achieved a nedy Road and Kipling Avenue, respectively. The first revenue / cost ratio (calculated for subsidy purposes to contract was awarded on the new light rail line which will measure the amount contributed by the Commission to run from the subway terminal at Kennedy Avenue to the total operating expenses) of 72.3%. The remaining Scarborough Town Centre. This new line will be 27.7% of expenses was provided by approximately equal equipped with some of the 196 Canadian Light Rail subsidies from Metropolitan Toronto and the Province of Vehicles (CLRVs) now under construction, the first of Ontario. The Commission 's revenue / cost ratio is among which were introduced into service in 1979. Deliveries of the highest in North America. the Commission's latest order of 138 H5 subway cars The fare increase on March 12, 1979 changed the continued. In the area of major technological change, basic adult fare from 7 tickets or tokens for $3.00 ( 42.9ct:) the Communications and Information System (C.I.S.) to 6 tickets or tokens for $3.00 (50ct:) and generated developmental project continued during the year, with sufficient additional revenue to cover increased costs in the microcomputer equipment installed in a test fleet of 1979. The fare increase was made only after efforts. to 100 buses. The C.I.S. project will provide direct com­ avert it by obtaining additional subsidy funds from the munication between surface transit vehicles and the Municipality and the Province had failed. Despite the transit control centre and accumulate information on fare increase, ridership remained fairly constant in 1979, passenger and traffic movement. The RUCUS (compu­ actually showing a small increase over 1978 when al­ terized run cutting and scheduling) and Train Despatch lowance is made for the passengers lost during and after and Information System were other computer-assisted the September 1978 four day transit strike. The 346.2 projects which have been developed by Commission million passengers carried in 1979 were 8.6 million staff; these two projects were operational in 1979 and greater than in 1978, 7.6 million of which can be at­ benefits are now being seen . tributed to the effects of the strike. Among the factors lt was an eventful year for the Commission's con­ helping to offset the negative impact of the fare increase tracted "Wheei-Trans" service for the physically disa­ were increased usage of the Spadina Subway, the rap­ bled. Despite problems caused by two changes of idly increasing cost of automobile operation and an contractor during the year, service was expanded and expanded public transit advertising campaign . more passengers were carried in 1979 than in any In financial terms, the fare increase provided $15.1 previous year. The net cost of the Wheel-Trans service is million (including Metro subsidies for senior citizens and borne approximately equally by Metro and the Province. blind and war amputees) of the total revenue increase of 1980 promises to be another good year. The Com­ $19.9 million or 13.6% . Revenue of $165.9 million in 1979 mission and Metro have adopted new policy guidelines represents 47.9ct: per passenger carried, up 4.6ct: per for the Commission in accordance with principles set passenger from 1978. Expenses did not rise as rapidly; out in the "New Directions" report. In summary, the $15.2 million, or 7.7%, to $211.6 million in 1979, mainly report recommends that a full commitment be made to due to wage settlements and inflation in price of materi­ give the TTC more priority and support through a variety ·als. Expenses per passenger were 61 .1ct: in 1979, an of policies, and that additional financial aid be provided increase of 2.9ct: over 1978. The resulting operating to implement these policies. The new unlimited-riding subsidy required was $45.7 million (or 13.2ct: per pas­ monthly "Metropass;' introduced in May, 1980, is the senger) down $4.7 million (or 1.7ct: per passenger) from result of one of the report's specific recommendations. 1978. The remainder of this Annual Report sets out, in more Although these results are encouraging, it must be detail, the financial and operating results and discusses recognized that future years' revenues and expenditures other major activities and new developments in 1979. 3 ' \ Increase OPERATING RESULTS 1979 1978 (Decrease) % REVENUE($ Millions) 165.9 146.0 19.9 13.6 OPERATING SUBSIDY ($ Millions) 45 .7 50.4 (4.7) (9.3) EXPENSES($ Millions) 211.6 196.4 15.2 7.7 PASSENGERS (Millions) 346.2 337.6 8.6 2.5 Revenue per Passenger 47.9~ 43.3~ 4.6~ 10.6 Operating Subsidy per Passenger 13.2~ 14 . 9~ (1. 7~) (11 .4) -- Expenses per Passenger 61 .1 ~ 58.2~ 2.9~ 5.0 MILES (Millions) 99.0 98.7 0.3 0.3 Revenue per Mile 167 . 5~ 147.9~ 19 . 6~ 13.3 Operating Subsidy per Mile 46.2~ 51.1 ~ (4.9~) (9.6) Expenses per Mile 213.7~ 199 . 0~ 14.7~ 7.4 CAPITAL EXPENDITURES RAPID TRANSIT($ Millions) 29.2 38.3 (9.1) (23.8) OTHER CAPITAL PROJECTS($ Millions) 19.8 25.9 (6.1) (23 .6) TOTAL ($ Millions) 49.0 64.2 (15.2) (23.7) 5 REVENUE Increase 1979 1978 (Decrease) % (Thousands of Dollars) 1. PassengerRevenue 151 ,624 133,968 17,656 13.2 2. Metro Fare Subsidies 6,364 5,265 1,099 20.9 157,988 139,233 18,755 13.5 I I I 3. Charters & Special Services 1,891 1,463 428 29.3 159,879 140,696 19,183 13.6 4. Rental Income 2,718 2,318 400 17.3 5. Advertising 2,227 1,937 290 15.0 6. Other Revenue 1,039 1,024 15 1.5 I ' ! ' Total Revenue 165,863 145,975 19,888 13.6 1. PASSENGER REVENUE-$151,624,000 5. ADVERTISING-$2,227,000 Passenger revenue increased by $17,656,000 or Revenue from advertising space sold on the Commis­ 13.2% as a result of two factors: the fare change, which sion 's fleet of subway cars, buses, streetcars and trolley contributed $14,366,000 and the increase in passengers coaches and in the subway stations totalled $2,227,000 of 8.6 million which contributed $3,290,000. The fare in 1979, up $400,000 from 1978. change on March 12, 1979 raised the basic adult fare of 6. OTHER REVENUE-$1,039,000 42.9<1:, which had been in effect since January 1, 1979 to This includes.all other miscellaneous revenue, includ­ I 50<1: , with proportionate increases in concession fares. I ing sales of student I. D. cards ($225,000) and a dividend The new fares and their usage are shown in the table from Gray Coach Lines, Ltd ., the Commission's wholly below. owned subsidiary company ($100,000). Fare increases are usually accompanied by passen­ ger losses; the fact that riding increased, even minimally, (by 1.0 million rides after the 1978 strike input is al lowed FARES I. for) reflects a favourable trend in riding. Revenue ! 2. METRO FARE SUBSIDIES-$6,364,000 Passengers Senior citizen fares have been set at 50% of the Current Fares Millions % regular adult fare since 1970. The other 50%, which amounted to $5,955,000 in 1979, is paid by Metro. TOKENS Metro also pays the full cost of fares for the blind and -Adult 6 for$ 3.00 138.7 40.1 war amputees, who ride free on the system, based on 20 for $10.00 estimated riding figures. This subsidy was $409,000 in TICKETS 1979. -Adult 6 for$ 3.00 70.1 20 .3 3. CHARTERS & SPECIAL SERVICES-$1,891,000 20 for $10.00 Charters generated $959,000 in revenue in 1979, up -Scholar 6for$ 1.50 31 .3 9.1 $268,000 or nearly 40% over 1978, mainly on account of -Senior Citizen 6 for$ 1.50 24.0 6.9 increased business.
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