ATLANTA (AP) The Metropolitan Atlanta Rapid Transit Authority has decided to raise bus and rail fares to $2, a 25-cent increase that will take effect on Oct. 1.

The MARTA board met on Monday and decided to increase the fares, but says it will keep continue to operate rail service until 1 a.m. MARTA staff has proposed ending service at midnight to save money.

CEO Beverly Scott says MARTA will make an accounting change with money set aside for retirees' medical benefits. She says that by putting the money in a restricted account, MARTA can set aside less money without affecting the funds that eventually go to retirees.

Trains and buses will run less frequently, and in locations where MARTA charges for parking, the fees will go up by $1.

(Copyright 2009 by The Associated Press. All Rights Reserved.)