RTD board to weigh 2027 fare revenue target, service changes and debt refinancing

RTD directors are scheduled to consider a framework for the agency’s 2027 budget on July 28, including an $8 million to $12 million annual fare-revenue target, possible service changes and FasTracks debt refinancing. No board-level action had been adopted as of July 25.

The July 28 board packet says the fare-revenue target could take effect with the May or June 2027 service changes, if possible. It also directs staff to conduct a fare study and equity analysis and return with three fare options during the September board meeting cycle. It does not select a fare schedule or percentage.

The draft board agenda and staff packet proposes refunding or defeasing some 2027 maturities of RTD’s 2013A, 2016A and 2017A bonds, along with some 2017B bonds through a forward-delivery structure. RTD estimates the transaction could save about $38 million in 2027 debt service and reduce outstanding debt by roughly $30 million under current market conditions. Those are projections, not guaranteed results; the materials do not specify the interest-rate, timing or market assumptions behind them.

Fare options are still to come

The July 14 Finance and Planning Committee packet modeled fare increases of 10% to 25%. Compared with no action, it estimated a 10% increase could generate about $4.8 million in the first 12 months while reducing boardings by about 1.3 million. A 25% increase was estimated to generate about $12.2 million and reduce boardings by about 3 million. The analysis excluded service-hour reductions and potential Title VI impacts.

The $8 million-$12 million target is not a fare decision. Staff’s study and equity analysis are planned steps before the board considers options in September.

Service changes remain unsettled

The July 28 budget item carries a zero annual savings target for service modifications, replacing earlier savings figures considered during the committee process. That does not rule out changes; routes, frequencies and implementation details remain unsettled.

The July 15 Operations, Safety and Security Committee packet describes possible route changes, including splitting the current Route 20/23 pattern. Under that concept, Route 23 would cover the western portion to Denver Union Station and Route 20 the eastern portion. The packet says the Route 20 change could affect access to about 9,264 jobs and disproportionately burden low-income populations, although Route 23 would continue serving the removed segment. Other scenarios include Route 32 and Route 52 reroutings and reduced D Line service.

Any changes would take effect no later than the May or June 2027 service changes, but the packet does not establish which routes or frequencies would change.

Separate event-service proposal

The draft agenda also proposes $1 million for additional high-volume event service before March 2027, amending a previously approved Broncos pilot that provided extra bus, light-rail and commuter-rail service. That proposal is separate from the broader service-change exercise.

The July 28 meeting is a decision point on the 2027 budget framework, not a final fare or service-cut plan. Final details would require subsequent board action and implementation records.