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City reviews modest fare increase for fixed‑route and paratransit service; transit operator already budgeted the change
Summary
City staff presented a plan to approve a modest fare increase for fixed‑route and paratransit services operated by Cities Area Transit. The operator has already included the increase in its budget; city staff said the change aims to offset rising operating costs and is smaller and less frequent than a long gap since the last increase.
City staff and Cities Area Transit representatives asked the council to approve a modest fare increase for fixed‑route and paratransit services; the transit operator has already budgeted the change.
Nancy Ellis (Cities Area Transit) told the council the city’s transit partner included a fare increase in its 2025 budget and that the change will modestly help operating finances as costs rise. She said ridership has been increasing in recent years after declines during the COVID‑19 pandemic and that increases have not been made in 12 years; the proposed change is intended to be phased so customers do not face a sharp one‑time jump.
Ellis said the rise would remain lower than comparable taxi alternatives and that the transit provider is evaluating micro‑transit (door‑to‑door) options that could better serve certain riders. Council members asked whether state or federal funding cuts could force service reductions; Ellis said Minnesota funding and vehicle‑sale proceeds remain key revenue sources, and that transit is monitoring budgets for 2026–2028. She noted that adding institutional partners (for example, UND) can spread operating costs and reduce the city’s share of fixed expenses.
No formal roll call or ordinance vote on the fare increase was recorded in the transcript; staff described the council action as largely procedural because the operator had already placed the change in the contractor’s budget.
