OC Transpo has frozen discretionary spending and cut five management positions to deal with its projected $11.5-million deficit for 2015 as the city plans to transfer $7.7 million from the capital budget and dip into reserves to cover the shortfall.

The $11.5-million deficit represents about 4.6 per cent of OC Transpo's budget.

OC Transpo's general manager, John Manconi, told the city's transit commission Monday that ridership continues to remain flat, which is affecting revenue, along with a high number of insurance claims, costly maintenance and repair and other factors.

He said something has shifted, making OC Transpo's ridership modelling tool no longer able to predict numbers accurately. The model uses employment levels, weather and gas prices to predict ridership, among other factors.

OC Transpo staff suspect that the redistribution of public sector jobs outside of the downtown core is partly to blame for stagnant ridership, Manconi said.

It's too early to say whether fares will be increased in 2016. Budget talks for next year begin in October.

Manconi says he's taking financial situation very seriously. Everything from eliminating jobs to freezing pen purchases. <a href="https://twitter.com/hashtag/ottpoli?src=hash">#ottpoli</a> <a href="https://twitter.com/hashtag/cbcott?src=hash">#cbcott</a> —@alistairsteele