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The Town of Orangeville’s two-year Fare Free Transit pilot program will be coming to an end in the next few months, with staff bringing a project update to Council on September 23.

Fare Free Transit was introduced in January of 2023, after Council voted to move forward with the pilot in July 2022. By moving forward with a pilot, the Town could provide a proper assessment of utilizing this kind of transit structure and identify whether it would be successful.

With the end of the pilot in sight, Council will need to make a decision on the future of the program.

“Our report provides Council with the opportunity to review the report and make an informed decision based on the numbers,” explained Tony Dulisse, Manager, Transportation and Development, Infrastructure Services. “We looked at everything from operating costs to ridership numbers, the amount of gas taxes we received, and feedback from agencies using transit.”

Ridership has more than doubled with the implementation of Fare Free Transit

Ridership comparisons look at data collected from numbers in previous years to determine the growth impact. The decision was made to include data from 2019 due to the impacts of the pandemic in 2020, 2021, and 2022.

A steady increase has been observed since the implementation of Fare Free Transit:

  • 2019 – 102,898
  • 2020 – 103,091
  • 2021 – 91,203
  • 2022 – 101,261
  • 2023 (First full year of Fare Free) – 225,705
  • 2024 (First half) – 120,879

It is projected that the second half of 2024 will see an additional 141,901 riders based on data to date, bringing the total ridership in 2024 to an estimated 262,780 people.

Operating Costs vs Fare Collecting Costs

While the fares collected can assist with offsetting operating costs, the report also notes that in 2019, of the $143,000 collected in fares, the cost to administer those fares, initiate touch free pay systems, and other fees was estimated around $60 to $80,000.

Gas Tax Offsets

The provincial gas tax is expected to increase as ridership continues to increase. This would replace a significant portion of the revenue normally collected through fares. Staff noted the gas tax has a ‘lag’ period of two years before the municipality receives it, meaning realization of the increase should occur in 2025.

Other key data from the report includes the alignment of the program with the Town’s Climate Action Plan, removal of economic barriers, and opportunities for partnerships with other agencies and communities.

Based on the data collected, Town staff are recommending an extension of the program, with an update to be presented to Council in Spring of 2027. This will allow the Town to see the actual financial impact of the gas rebate as well as a larger amount of data on ridership.

Council will vote on a direction for staff at the September 23 meeting.

The report will be available on the Town’s website with the meeting agenda. This can be found by visiting orangeville.ca/Meetings.