The TTC has passed their 2013 budget which includes a five-cent fare hike.

The fare increase would apply to single adult tokens and other fares, including adult metro passes, which would cost an extra $2.50 to $128.20.

“I am pleased staff was able to keep the fare increase to a minimum by finding efficiencies inside the TTC, while increasing service to meet demand for our customers,” TTC Chair Karen Stintz said in a release.

The hike will not apply to cash payments.

Stintz said the increase reflects the cost of inflation and this will not be the last hike passengers will see.

“We are planning to have inflationary based fare increases moving forward,” she told CityNews.

The announcement came with mixed reviews from transit riders.

“As long as it really improves that quality of service, I’m all for it,” transit user Dmitry Tsitrinel told CityNews.

Other passengers said the quality of service they receive from the TTC is not reflected in the cost of the fare.

“No, of course not. Have you ever been on the TTC?” said one commuter.

The increase is expected to bring in $18-million a year. With that money the TTC says it will work to improve service at subway stations.

“I don’t like having to ask for a fare increase but certainly passengers will see tangible benefits from it,” said TTC CEO Andy Byford.

The proposed five-cent hike was approved in September as a way to reduce some red ink on the TTC’s books.

The hike will start Jan. 1, 2013.

The commission is currently trying to fill a $30-million gap in its budget.

In September, Byford said a hike was a better option than cutting services to save the money.

“Ultimately this is about getting the best value of money for the taxpayer and rider. I do not want to cut routes,” he said.

Mayor Rob Ford has spoken out against another fare hike in January.

The TTC last hiked fares on Jan. 1 when a 10-cent increase was implemented on tokens and passes.

Also on the agenda at Wednesday’s TTC meeting is a proposal to upgrade collector booths at a cost of $1.5 million.

The commission will also discuss awarding a 20-year $25-million contract to Broadcast Australia Ltd. to install and manage a wireless network in subway tunnels and on station platforms.