OC Transpo fare revenue was $3.9M below budget in first quarter of the year

An OC Transpo bus at the Eagleson Park and Ride. (Dave Charbonneau/CTV News Ottawa)

OC Transpo's fare revenue for the first three months of 2023 was nearly $4 million lower than expected, according to a new report.

The report prepared for next week's transit commission shows that customer fare revenue was $3.928 million below budget, which staff blame on lower than budgeted ridership levels and to "customers' fare choices and the demographic makeup of the customers using transit services, both attributed to the continuing effects of the COVID-19 pandemic."

There was also a multi-day disruption on the LRT in January following a freezing rain event.

OC Transpo ridership for 2023 was budgeted to be at 70 per cent of pre-pandemic levels.

Transit commission heard at its April meeting that there were 5.5 million conventional trips in January, below the 5.8 million budgeted. February saw 5.3 million trips, compared to the 5.5 million in the 2023 budget. There were more than 8 million trips each month in 2019.

March ridership numbers are expected at the May 11 meeting.

OC Transpo is still projecting a $39 million budget deficit that staff continue to hope will be covered by senior levels of government. Both the Ontario and federal budgets for 2023 did not include any additional money for transit, but staff say the city continues to advocate with the province for additional funding to cover revenue loss.

Despite ridership being down, OC Transpo is reporting a net operating surplus of $2.718 million in the first quarter, largely due to job vacancies, lower O-Train Line 1 service maintenance costs and lower fuel costs.

Staff say the second quarter status report will provide a better indication as to the transit service's overall year-end position.