Toronto transit users could be facing a fare hike as the Toronto Transit Commission battles a $28-million gap in its 2013 operating budget.

The TTC's board passed a proposal in principle to raise adult fares by five cents - an increase that still must be approved by Toronto city council.

The increase would not affect cash fares, but the cost of tokens will go up and monthly Metropass prices would increase by about $30 a year.

Another proposal that was approved will outsource about 160 jobs at two TTC bus garages to Hallcon Corporation and Topnotch Building Maintenance Ltd.

The TTC says the five-cent fare hike will raise about $18 million while the cleaning job cuts will save the transit system about $1 million next year.

Plans to contract out cleaning jobs at all eight TTC garages in the next few years are expected to save about $4 million.