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Fare Policy Amendment No.1 (GEN 11)
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DESCRIPTION: First set of amendments to the agency’s Fare Policy |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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This is a request to authorize the Chief Executive Officer to implement an amendment to the agency’s Fare Policy (GEN 11).
In 2022, the New Orleans Regional Transit Authority adopted its first formal fare policy to establish a framework for transparent decision making on fare elements. Since then, the need for several small changes has emerged to better match policy with better operational practices, to encourage a wider footprint of retail partners, and to offer benefits to riders.
Adopting these recommended amendments would update the Fare Policy to advance these goals.
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ISSUE/BACKGROUND:
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In September 2022, the Board of Commissioners adopted the agency’s Fare Policy (Resolution 22-071) to outline a comprehensive and holistic approach to governing RTA fare collection elements. The policy provides an over-arching set of objectives to align present and future decision-making while also defining the responsibilities of the RTA in pursuit of informed, coherent fare-related decisions.
However, changes to the fare elements listed below are necessary to ensure RTA staff can conduct fare sales, fare collection, and fare reporting more effectively. Further, new benefits can also be extended to riders in the interest of offering an accessible system of public transport.
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DISCUSSION:
The proposed amendments to the Fare Policy include the following:
• Updates practical definition of a ‘Single Fare’ to match existing practice, reduce required operator inputs
• Changes requirements for annual fare reporting to reduce staff time required by focusing on feasible elements; affirms context-dependent triggers for Fare Structure Review in place of time-based triggers
• Changes to streamline retail/bulk discounts and U-Pass discounts offered to institutional purchasers
• Correction of clerical error in definition of Priority Rider and eligibility criterion that included paratransit-eligible riders
• Language that would permit the implementation of a fare-capping/pay-as-you-go account-based fare payment program upon development of a formal fare structure recommendation and financial analysis
• Expands the existing practice of suspending fare collection on city-wide election days to include the suspension of fare collection on Saturdays of early voting periods for city-wide elections. Amended language clarifies which city-wide elections are to be observed with fare-free transit (i.e. those certified by the Louisiana Secretary of State that will elect a candidate for city-wide, state-wide, or federal office).
FINANCIAL IMPACT:
The agency should expect to forgo passenger revenue on newly created fare-free days. Based on the policy language in question the financial impact of this policy amendment will vary from year.
In the 12-month period from September 1, 2024 to August 30, 2025, the agency collected approximately $45,000 of gross passenger revenue per typical service day, including long-term pass products. Gross passenger revenue from at-vehicle or immediate-board fare products totals approximately $20,425 per typical service day.
The agency could forgo an estimated $30,000 per fare-free service day between suspended at-vehicle collection and deferred usage of pre-purchased fares.
In 2025, there are 4 Saturdays within early voting periods for qualifying elections that would be fare-free by policy with this amendment.
In 2026, there will be as few as 4 and as many as 8 Saturdays within early voting periods for qualifying elections that would be fare-free by policy with this amendment.
In 2027, there could be as few as 4 and as many as 8 Saturdays within early voting periods for qualifying elections that would be fare-free by policy with this amendment.
Based on the fare revenue collected per typical service day in the last 12 months, current fare prices, and Louisiana election calendars, NORTA could expect to forgo between $120,000 and $240,000 of fare revenue per year after expanding fare-free transit to the Saturdays of early voting for qualifying elections.
No other amendments could be reasonably expected to result in a financial impact of note.
NEXT STEPS:
Upon RTA Board Approval, staff will implement the fare policy as amended.
ATTACHMENTS:
1. Fare Policy Amendment Resolution
2. Fare Policy Document (Clean)
3. Fare Policy Document (Redline)
Prepared By: Jack Duffy
Title: Manager, Fare Policy and Systems
Reviewed By: Giselle Banks
Title: Chief Financial Officer
10/31/2025
Lona Edwards Hankins Date
Chief Executive Officer