Getting your
Trinity Audioplayer ready...Golden Gate Bridge tolls will go up 50 cents on Wednesday as part of a program to keep pace with rising maintenance and operations costs.
With the increase, toll revenue is projected to be $175.2 million next year, up about $5.5 million from the estimated actuals for the fiscal year ending on Tuesday, according to the Golden Gate Bridge, Highway and Transportation District budget that was adopted Friday.
The budget is balanced at $540.1 million. However, the $299.5 million operations budget projects a $47.1 million shortfall, primarily due to lower toll and fare revenue compared to levels before the COVID-19 pandemic. The lower revenue stems from less travel through the corridor, officials said.
More than $34 million in district reserves and $12.7 million in pandemic relief funds are being tapped to balance expenditures.
“We’re still about 25% down from pre-COVID,” said Jennifer Mennucci, the district’s auditor-controller. “The tolls are our bread and butter for the district. It funds all three of our divisions, bus, bridge and ferry. It is our largest source of revenue for ongoing operations.”
Unlike most other transit agencies, the district receives no dedicated state or local tax funding. Because of inflation, the costs to operate services increase annually, including costs for staff, paint and steel for the bridge and fuel and repairs for buses and ferries.
“This whole program is designed to keep up with those rising costs,” said Paolo Cosulich-Schwartz, district spokesperson. “I think most people in today’s environment understand that things are a little more expensive year over year, and we see those same increases across bridge, bus and ferry.”
In the budget summary, district manager Denis Mulligan wrote that the finances are tied to the success of downtown San Francisco.
“Today, over 30 percent of all office space in downtown San Francisco remains unleased,” he wrote. “In response, the District continues to aggressively reduce expenses, including offering less commute transit service. For example, we are currently operating about 20 percent of our pre-pandemic express commute bus service.”
The district has also reduced staffing through attrition as a means of cutting fixed costs, Mulligan said. The result is about 40% fewer bus operators than there were prior to the pandemic.
If commute trends don’t rebound, the district could be forced to take another hard look at its bus and ferry service levels, Mulligan said. The start of July will mark the third year in the five-year toll increase program that was designed in part to help shrink a projected $220 million deficit as the district fought back from pandemic losses.
Toll amounts for drivers vary depending on the number of vehicle occupants and payment type. The rates will include $8.25 for carpools, $10.25 for drivers with FasTrak toll tags and $11.25 for invoice payments.
Fares for Golden Gate Ferry and Golden Gate Transit are also set to climb 25 cents. Discount fare programs will remain in effect for Clipper users, and for seniors, youths, people with disabilities and low-income riders who participate in the Clipper START program.
Transit fares overall are projected to increase $335,000 next year, bringing transit revenue to $24.2 million. However, bus fare revenue is estimated to decrease $67,000 due primarily to lower average fare. On the flip side, ferry revenue is projected to increase $402,000 because of an increase in average fare.
The district budget includes a $240.6 million capital improvements program supported by $72.8 million in district funds and $167.8 million in federal, state and local grants. The program funds 69 projects, including 54 continuing projects.
One of the big-ticket projects is a $1 billion seismic retrofit of the bridge’s north and south towers and south side spans that will be ongoing for about six years. The project is funded with about $600 million in federal funds and about $400 million toll revenue stored in district reserves.
Tolls to cross the other seven Bay Area bridges, including the Richmond-San Rafael Bridge, increased 50 cents on Jan 1. The increase — the first installment of a five-year rate hike plan — is also designed to keep up with rising maintenance costs, in addition to a nearly $2 billion capital improvement program.