Kenora City council says it's committed to subsidizing transit service, but users of the system are also going to have to pay more.
Council is expected to approve a tender from First Canada for a five year contract to provide transit service.
Mayor Dave Canfield says they were the only company to submit a bid for the service.
The bid from First Canada is just over 1.4 million dollars over the five year deal.
But council says in order to pay for the increase cost, it plans to raise bus fares by 50 cents to $2.50 in 2018.