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OC Transpo faces $12.3M debt after strike, says GM

More savings for transit riders may be coming in March, but the transit strike could leave OC Transpo $12.3 million in debt, its general manager said yesterday.

More savings for transit riders may be coming in March, but the transit strike could leave OC Transpo $12.3 million in debt, its general manager said yesterday.

By not running buses in January, OC Transpo saved around $5.7 million.

However, that savings is expected to disappear quickly while OC Transpo operates the system at a cost of $900,000 per day with almost no revenue coming in during February.

On top of that, the city’s transit committee voted yesterday to extend free transit to all riders by two weeks, which would result in a projected revenue loss of $1.1 million. The motion has to be approved by city council tomorrow.

OC Transpo general manager Alain Mercier said before the strike, transit services was budgeting to generate $36.9 million between February and April.

However, the refund policy that offers regular December pass holders free transit until March 31 and EcoPass holders until the end of April is expected to leave the transit service with a $15.5-million shortfall.

OC Transpo still has $7.6 million in revenue from December passes that can be used to make up that shortfall. However, they have already refunded $1.6 million for those passes.

Earlier this month, city council also agreed to extend the property tax bill due date by four weeks at the cost of $1.3 million.

The city is also spending $1.2 million in mitigation measures to help residents deal with the strike.

 
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