Nov. 15--Metra's board Friday unanimously approved a fare hike averaging nearly 11 percent starting in February, but not without a note of dissent over the size of the increase.
That challenge was withdrawn, however, when Chairman Martin Oberman directed Metra's administrators to try to wring further cost-savings out of the commuter agency's operations.
Oberman said the board's decision was a "major step" toward addressing longstanding and future operations, equipment and infrastructure needs.
"I want (riders) to understand that this board has confronted reality and is not trying to pretend that you can run a railroad without paying for it," Oberman said.
Although board members seemed to have ruled out reducing train service to save money, staff also will prepare a report spelling out the cost of making cuts on any of Metra's 11 lines. Both reports are due in January.
After more than an hourlong discussion, the fare hike was approved as a key element in balancing the agency's 2015 budget.
The increase is expected to generate $27.3 million in additional revenue in 2015, most of which will defray a funding gap resulting largely from higher wages and costs, according to Metra's budget.
An effort to halve the fare hike, to 5.4 percent, was made by director John Zediker from Naperville.
Zediker proposed that Metra's staff find ways to cut some $13.6 million in the budget instead.
"What I've heard made abundantly clear (from the public) is people recognize we need to raise fares. But the question is, have we exhausted every single (cost-cutting) remedy?" Zediker asked.
But Zediker withdrew the proposal after getting no support from other board members. Noting that public transportation does not pay for itself, several board members said Metra needs to argue for more subsidies from Springfield and Washington.
Metra is saddled with "an economic model that is not sustainable over the long term. That's reality," said Lake County Director Norman Carlson.
Customers on Friday at Union Station seemed to take news of the fare with weary resignation.
Pankti Gandhi, 22, a student who commutes from Schaumburg, said more frequent service would ease the pain of the fare hike, adding she always comes downtown hours early in case the trains are late.
"I think we pay more than enough," she said. "It's very expensive."
Gary Dolusic, 61, said he's been taking Metra to the Loop from Plano for more than 25 years. The monthly passes are reasonably priced, he said, is $213.75 for the ride from Aurora.
"Nobody likes to pay more money, but you get a good ride for the money," he said. Under the hike, his pass would go up $21.50.
While the fare increase averages 10.8 percent, it is not one-size-fits-all and includes all fare types depending on distance. The majority of Metra commuters, who buy monthly passes, will see increases of 10.9 percent to 18.6 percent, or about $15 to $30 more a month.
Ten-ride ticket buyers will have the smallest increase -- a few even a slight decrease -- because Metra is restoring the discount on 10-ride tickets that it eliminated in 2013. That means a 10-ride ticket will again be priced at the cost of nine one-way fares.
Friday's budget approval also means Metra will proceed in 2015 with a $100 million bond sale, the first such borrowing in the agency's history
That money will help finance a 10-year, $2.4 billion modernization program aimed at buying new locomotives and coaches, rehabilitating existing rolling stock, and maintaining bridges, tracks and other equipment in good condition.
The nation's second-largest commuter rail agency has rail cars that average 30 years of service and are older than those at comparable railroads in New York, Boston and Philadelphia, Metra said.
Although Metra has raised fares more often than its peer agencies in recent years, officials said the average fare has consistently been lower than those charged by other major lines.
In addition, Metra's fares have always lagged behind inflation, officials said.
Tribune reporter Sally Ho contributed.
rwronski@tribune.com
Twitter @richwronski
