I dont really think the fares are for making money for the Tide, i think its to keep the bums off of it while nurturing the Transient-Oriented Development that is the true payoff-promise for the Tide.
According to the Wikipedia article below, the Tide's costs to build were $318 million. Annual maintenance is expected to cost $6.2 million. At a daily ridership of 2,900 riders per day, the numbers breakdown like this:
2900 X $1.50 = $4,350 dollars per day$318,000,000 / $4,350 dollars per day = 73,103 days to pay cost of building / 365 days = 200 years to payback cost to build In 20 years they expect it to be 7,200 riders. I know the costs will go up, but just for fun, im using todays fare.7,200 X $1.50 = $10,800 per day = 29,444 days to pay cost of building / 365 days = 80 years to payback cost to build If annual maintenance costs $6.2 million, and the ridership is at 2900, $4350 * 365 days = $1,587,750 in fare revenue per year, still way below the costs. At 7200 riders, $10,800 per day * 365 days = $3,942,000 in fare revenue per year. This still doesnt pay for what the maintenance costs are going to be for next year.
Since the annual costs of maintaining the tide is going to continue to be more costly than the revenue generated by it, ridership alone will never pay for the Tide. Even if the fares are raised over the years, the cost to maintain the Tide will increase as well. Therefore i maintain that we should keep down the fares low enough to keep it a convenience but high enough to keep off the riff-raff. Salt Lake City has a free fare within their core Central Business District and i would like our system to evolve to something like that at some point.
http://en.wikipedia.org/wiki/Tide_Light_Rail