As part of a new fare policy adopted earlier this year, AC Transit, the Oakland-based regional bus agency, will raise the price of fares and passes on Aug. 1.

Basic adult fares will increase to $2.10, instead of the current $2 beginning next Monday. Youth, senior and disabled passenger fares will increase to $1.05, from $1 on the same day.

Transbay adult fares will increase to $4.20 and monthly passes will increase to $151.20.

Monthly passes will remain $80 for basic adults, $20 for senior and disabled persons and $15 for youth that use the Clipper card.

Remember back in 2008, when fares were $1.75 and drivers were unable to offer change? Start saving dimes and nickels now, because the same rules will continue to apply after the latest increase. Stuck with a wallet-full of dollar bills when you have to pay $2.10? AC Transit will keep the amount you overpay.

AC Transit also approved a new seven-day pass. The pass will be priced to equal 10 cash fares and is good for unlimited travel for seven consecutive days. The new pass will cost $21 for basic adults and $10.50 for youth, seniors and persons with disabilities.

One way to avoid overpayments and/or to not worry about what change you have is to sign up for the Clipper Card, which also are accepted on Muni, BART, Caltrain, SamTrans, VTA and Golden Gate Transit. Explore this map to find a vendor near you.

AC Transit reps say they want these fare increases to be more than just another budget quick fix. As the report from AC Transit states, "former fare increases were ad hoc and did not adhere to any predictable policy." This increase is part of a 10-year fare policy. AC Transit hopes that having more predictable fare increases will ease the impact on riders.

Tracking increases

The new policy will increase adult cash fares by 25 cents every five years in a predictable pattern.

• $2.00 in 2010
• $2.10 in 2011: 10-cent increase
• $2.10 in 2012: no change
• $2.25 in 2013: 15-cent increase
• $2.25 in 2014: no change
• $2.25 in 2015: no change
• $2.35 in 2016: 10-cent increase
• $2.35 in 2017: no change
• $2.50 in 2018: 15-cent increase
• $2.50 in 2019: no change
• $2.50 in 2020: no change

Compare that to the fare changes over the last decade: after a 15-cent increase in 2002, AC Transit raised the base fare by 25-cents in both 2005 and 2008. The proposed increases for the next decade are certainly more incremental, but AC Transit cautions that other increases could still happen.

"Fares increases could be higher if the inflation rate increased," AC Transit managers noted in a statement.

The fare policy also sets a plan for youth, senior, disabled passenger fares and monthly passes.

• Monthly passes should be 36 times the relevant cash base fare
• Transbay fares should be 2 times the local fare (cash and pass)
• Discount fares (senior, disabled and youth) should be half of the adult (cash and pass)

In other words, in 2018, when an able-bodied adult pays $2.50 to board AC Transit, a monthly pass will cost $90, a Transbay trip will cost $5 and a youth fare will cost $1.25.

In addition to making fare increases more predictable for customers, the fare policy will make budgeting more predictable for AC Transit.

AC Transit still faces more than $200 million in anticipated budget shortfalls over the next decade, despite a new $24.5 million allocation last month from the Bay Area's Metropolitan Transportation Commission. The first fare increase in August is expected to boost AC Transit’s annual revenue by $2.4 million, which roughly equates to 29,000 more hours of bus service.