Despite ongoing operating deficits, the Bike Share program will be getting $7.5 million to purchase new equipment following a recommendation from city staff.

A provincial program to promote cycling will provide the majority of the funds — $6 million — with the city contributing $1.5 million (20 per cent of the cost) as part of an agreement to secure the investment from the province.

On Thursday morning, the Toronto Parking Authority board — which is currently made up of senior city staff after the previous board was dissolved following a land deal scandal — approved the purchase without discussion. The purchase does not need to be approved by council.

The money will pay for 1,250 new bicycles and 105 new stations as well as other equipment required. It will be purchased from the city’s existing supplier, PBSC Urban Solutions Inc.

The purchase will bring the total bikes in the program to 5,000 with 468 stations, however, that’s still below the target from an earlier 2016 study, which staff noted concluded that 6,000 bikes and 600 stations “would be an optimum target to handle the demand within the City of Toronto.”

While operating losses were again seen in 2018, the parking authority says since they have taken over the bike-sharing system ridership has continued to grow.

A note from staff on this year’s budget says in 2018, ridership reached 2 million, increasing 32 per cent over 2017. Ridership is projected to grow to 4 million by 2020 with planned expansions.

Still, the program was expected to cost the city $2.3 million to operate in 2018 after revenues are counted, which will mean a subsidy per ride of $1.14. That is well off of their 2018 budget, which suggested the net cost would be just $410,000. The discrepancy was largely because the parking authority budgeted for a long-term sponsor, which they were not able to secure by the end of the year.

Staff again project the program will come closer to breaking even this year, costing them $25,000 more than revenues they’ve forecast, or a 1 cent subsidy per ride. But that budget is again based on a theoretical sponsor.

“While the system has experienced operating deficits since 2014 (the parking authority) is projecting that the Bike Share program will no longer require any operating subsidies by 2021,” the budget note says.

The staff report says new stations will be added in the city’s “central area” as well as expanding to the areas of Bloor West Village, Forest Hill Village, High Park, Humber Bay Park East and Lakeshore Blvd. E., Mimico, Kingston Rd. east of Victoria Park Ave., St Clair Ave., Swansea, the Junction and Yonge and Eglinton.

A report from parking authority staff says the city’s $1.5 million contribution will be paid using reserve funds from development-related charges collected in downtown wards. Money used from those reserves will see stations placed in those local areas — within the Davenport, Spadina-Fort York, University-Rosedale, Toronto-St. Paul’s and Toronto Centre wards — as per provincial rules.

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Those stations will be located in the vicinity of new development at: 1093 Queen St. W., 1030 King St. W., 10, 11 and 25 Ordnance St. and 45 Strachan Ave., 30 Ordnance St., 245-255 College St. and 39 and 40 Glasgow St., 1486 Bathurst St., 230 Vaughan Rd., 1657-1659 Bathurst St., 109 Vaughan Rd., 951-971 Bay St. and 36 Wellesley St. West, 64-70 Shuter St., 454-464 Yonge St., and 480-494 Yonge St and 3 Grosvenor St.

The parking authority hopes to have the new equipment in place by the summer.