Budget - Transit

Transit operates the conventional and specialized public transit system. The system is designed to provide service within 450 metres of 90% of the residents of the City with specialized transit services providing transit access to residents with mobility requirements.

Ridership in 2025 has decreased over 2024 (January - September). This is primarily due to the reduction in student visas issued to foreign students attending post-secondary schools in particulate with Fleming College. Despite the reduction in post secondary ridership, it’s encouraging to see that Adult ridership is up 19% (January - September) over 2024.

The alternative fuel sources study for transit vehicles will be completed in Q3 2025. However, due to limitations of the current garage facility, vehicle procurement and new fuel dispensing infrastructure will likely be deferred until construction of the new garage facility. The accessible bus stops and bus shelter projects along with the conventional bus refurbishment project will continue into 2026, with the assistance from ICIP funding. Four replacement conventional buses arrived in January 2025.

The net requirement for 2026 has decreased due to an increase in fare revenue as well as a right sizing of the expense budget.

The 2026 budget includes an increase of $0.25 increase in bus fare per ride.

Provincial Gas Tax

In October 2004, the Province of Ontario announced the Gas Tax Rebate Program, which provides $0.02/litre of gas tax to assist in funding improvements to service delivery that supports transit ridership growth. The program generates funds for public transportation, which is subject to change annually based on annual sales of gasoline.

The total allocation is based on 70% transit ridership and 30% municipal population. Public transportation ridership will include the totals of both conventional and specialized public transportation services. The funds are placed in a Provincial Gas Tax Reserve Fund when received and then transferred from the reserve fund to finance authorized expenditures.

The authorized expenditures include:

• Public transportation capital expenditures that promote increased transit ridership and are above a municipality's baseline spending.
• Public transportation operating expenditures that are above a municipality’s baseline spending.
• Capital expenditures that provide improvements to transit security and passenger safety and are above a municipality’s baseline spending.
• Major bus refurbishment on any fully accessible, or to be made fully accessible, public transportation vehicle.

Provincial gas tax funds cannot be used to offset expenditures in other municipal departments.

For 2026, $1.6 million will be drawn from the Provincial Gas Tax Reserve Fund to offset expected costs in Conventional and Specialized Transit operations. Dedicated gas tax funds are not to exceed 75% of the municipalities own spending on public transportation.