Majority of London’s budget surplus to be used on transit pilot projects

Two transit pilot projects and another initiative aimed at getting more young people on city buses will get big financial boosts thanks to a healthy surplus in London’s budget.

The city’s corporate services committee has recommended London use the majority of a $6.9-million surplus from the 2017 operating budget to fund the three subsidized transit projects.

City politicians approved spending $5 million on funding for the $52 bus pass for low-income adults, free bus rides for kids 12 and under and for the discounted bus pass for teens that will start in September.

The bus pass for low-income adults and the discounted pass for teens are both pilot projects.

London’s city treasurer, Anna Lisa Barbon, says the amount needed is based on current projections.

“Based on our calculations we’re estimating approximately $5 million for the cost of all of those programs.”

“These calculations are based on the uptake that we are estimating at this point in time over the full two-year term of the pilot, which I believe is 18 months.”

The rest of the money from the surplus will be split between paying down the city’s debt, reducing the infrastructure gap and contributing to the community investment reserve.

The issue will go to full council next week.