The Toronto Transit Commission is meeting today to consider an operating and maintenance agreement for the Eglinton Crosstown LRT that will come in at more than double the budget. Just last December the board of the TTC budgeted for $29.6 Million per year but numbers presented to the board today says the real number will be $62Million. This after the TTC recoups the incremental fares of $8.6 Million. Its a situation not unlike Hamilton where the city has estimated the Operating an maintenance costs at $5-6 Million, while Metrolinx has suggested it will be more like $20 Million.
The Toronto $30 Million cost overrun tales into account fare revenue and cost savings by displacing buses on the route both of which have been cited as contributing to Hamilton’s $6 Million figure
The 2022 Operating Budget approved by the TTC Board on December 20, 2021 and City Council on The TTC staff report reads, “the 2023 Outlook… anticipated a net annualized funding requirement of $62.6 million, comprised of $79.2 million in gross expenditures and partially offset by$8.0 million in incremental revenues and $8.6 million in anticipated bus service savings.”
The city of Toronto will be responsible for the shortfall.