TTC board members have approved a fare hike that will force customers to pay more for tokens and Metropasses as the transit agency faces a $28-million budget shortfall.

Commissioners met Wednesday to confirm a previous “approval-in-principle” of a proposed five-cent increase that will take effect Jan. 1.

The cost of a single token will increase by five cents to $2.65, while riders will pay an additional $2.50 a month for a regular Metropass, or $30 a year.

Post-secondary Metropasses, weekly passes, day passes and PRESTO fares will also increase in price.

Cash fares, currently set at $3 for adults, $2 for seniors and 75 cents for children, will not change.

It is estimated the fare hike will generate an additional $18 million a year for the TTC, leaving it with a remaining budget gap of $10 million.

In a staff report, the TTC explained its reason for the move, saying “a modest fare increase in line with the rate of inflation is required to balance the budget.”

Here is a breakdown of how the increase will affect individual fares:

Adult Current fare New fare
Cash $3 $3
Token $2.60 $2.65
PRESTO $2.60 $2.65
Weekly pass $37.50 $38.50
Regular Metropass $126 $128.50
VIP Tier 1 (50-249) $113.50 $115.50
VIP Tier 2 (250-499) $112.50 $114.25
VIP Tier 3 (500-plus) $111.50 $113
MDP $115.50 $117.75
Post-secondary Metropass $104 $106
Cash $2 $2
Ticket $1.75 $1.80
Weekly pass $29.75 $30.50
Regular Metropass $104 $106
MDP $93.50 $95.75
Cash 75 cents 75 cents
Ticket 60 cents 60 cents
Day pass $10.50 $10.75
GTA weekly pass $54 $55
Downtown express sticker $37 $37.75

Cellphone access on platforms

In addition to setting new fares, TTC board members will decide whether to award a $25-million, 20-year contract to Broadcast Australia Pty. Ltd. to provide cellphone access at 61 underground subway stations.

The company will pay the TTC an additional $8,000 plus taxes for design review cost.

The TTC is hoping to have all platforms cellphone-ready within two years, meaning riders will be able to use their phones when they’re waiting for a train.

Deals still have to be worked out with wireless carriers.

@ChrisKitching is on Twitter. Don't forget, for instant breaking news, follow @CP24 on Twitter.