No proposal is on the table yet, but South Shore commuters could face a slight fare increase next year to enable the railroad to establish a pot of money for capital projects.
Mike Noland, general manager of the Northern Indiana Commuter Transportation District that operates the South Shore, said Friday he may request a 2 percent or 2 1/2 percent increase in 2016 so the revenue could serve as a match for upcoming improvement projects.
Noland's remarks came during a meeting of the NICTD board of directors.
He said the fare increase would mean about an additional $500,000 in revenue annually. The money would augment the railroad's capital match ability, which Noland said is constrained by the recent $90 million bond issue for the installation of a positive train control system.
No firm proposal for a fare increase is under consideration at this time.
"I wanted to at least float the idea," Noland said.
"We'll have to look at it," NICTD chairman John Evans said after the meeting. "I'm sure we'll have to keep pace with Metra."
The Metra board voted Nov. 14 for an average 10.8 percent fare increase.
Noland said riders from the Hegewisch South Shore station, where Metra sets the fare price, are facing a one-way increase of 25 cents on Feb. 1 when the Metra hike takes effect. In the past, NICTD has tried to keep a 50-cent differential between its Hammond station and Hegewisch to keep Illinois commuters from driving to Hammond, creating a parking problem.
In 1989, Noland said Metra dedicated a 5 percent fare increase to its capital projects to enable the commuter line to make improvements. "It doesn't look like we'll need an operating increase," he said.
Noland said he will present a business plan in January and could make a fare increase recommendation by March.
"Our ability to put together a coalition of funds is limited. We wanted to study concept to think about our ability to self-generate capital funding," Noland said.
He said state lawmakers seemed to like funding matches that include local, federal and state funding.
South Shore fare increases between 9 percent and 15 percent took effect in July, depending on the station. That revenue was earmarked for operational costs.