Thursday, October 7, 2010

Translink, Oct 7,2010 Consultation on Funding

Well, if you've been living in a cave, or somewhere outside of the lower mainland, you may not be aware that Translink is having some financial challenges, and in particular, struggling to come up with the $ 400 million for their commitment to the Evergreen Line. Today, Translink hosted a meeting at Metrotown to discuss their funding outlook. The event was VERY well attended by municipal politicians from throughout the region, including Mayor Trasolini and myself from Port Moody, and media.

While the meeting was significant on the issue of funding, there was a VERY IMPORTANT side issue arising at this meeting, for residents of the north east sector.

First, on the funding issue:

Translink CEO Ian Jarvis walked through the proposed funding model for generating the revenues required for the Evergreen Line, and other regional projects. The model is split into two parts, or priorities: Part one being the Evergreen Line (400 million) and the North Fraser Perimeter Road (53 million). These projects are identified as the highest priority because of both importance to the region and leveraging senior government funding. Part two identifies 13 other priority projects for Translink - Main St Station Upgrades, King George Blvd B Line, Metrotown station upgrades, Bus Service Hour Extensions, Bike Capital Funding, Surrey Central Station Upgrades, Highway 1 Rapid Bus Project, MRN Minor Capital Funding, New West Station Upgrades, Bus Service Hour expansion (growth), Bus Service Hours and Infrastructure on U Pass routes, White Rock to Langley Bus Service and Lonsdale Quay Upgrades.

WAIT, you say... 15 projects and the Murray Clarke Connector is not even included on the list ? How can it be that a project that was a priority of the province in 1983 , remains un completed in 2010 and isn't even mentioned as being a priority in the region ??

WELL - interestingly enough, we didn't have to wait long for the answer. Mr Jarvis explained that the Murray Clarke Connector didn't meet the priority threshold, as it had no 'historical' significance and did not have any associated senior partner funding. While he is correct on the lack of senior govt partner funding, I wondered how this project could not have historical significance as a priority ?

WELL - interestingly again, we didn't need to wait long for that answer either. Mr Jarvis noted that the Murray Clarke connector was only needed when the Evergreen Line was an at grade light rail system running along St John's street - and now that it had been changed to skytrain, there was no longer any urgency for the Murray Clarke connector project.

OK, yup , hang on... is that my head exploding ? Did I really just hear someone say the Murray Clarke, a regional priority since 1983 (which of course is two years prior to ANY skytrain line ever being built in the region), was only a necessity if the Evergreen Line was light rail through Port Moody. Oh jeez.. here we go again.... you can refer to my blog post about our meeting with the Minister of Transportation at the UBCM if you don't already understand the frustration around this project !

So, with mind numbing down a little, the presentation into FUNDING for the priorities now proceeds. Translink has determined that the funding required for the Evergreen Line and NFPR projects requires $ 39 million per year, and if the additional 13 projects are also to be funded, they would require an additional $ 29 million per year - total of $ 68 million per year for all of the projects. Somehow, it doesn't sound like so much money when compared to other dollar figures we hear tossed around these days with multi-billion dollar mega projects like the Gateway project, Port Mann or Golden Ears Bridges.

Translink says they have options for funding that consist of.... well... property tax ! Under the legislation of the South Coast BC Transporation Act, they are currently maximized on Fuel Tax, Parking Tax, Hydro Levy and Replacement tax. The other options are Vehicle Levy, Benefiting tax area, Transit fares and property tax.

Apparently, there is no mechanism for collecting a vehicle levy and translink has not had time to figure out how to implement this. (I would think they could have by now, was first proposed , what, 10 years ago ??) Benefiting tax area is a VERY complicated issue whereby you would increase property taxes on development that is directly benefiting from transit projects (ie: area around skytrain stations). I would have to agree this one could not be implemented in such a short time frame and it will really require some long term investigation, but it IS a good tool. Transit fares, translink feels they have pushed the riders ability to pay to the limit with significant fare increases over the past few years. Not sure I agree, but I believe they are also dedicating their resources to the fare turnstiles and smart card system and they need to protect this interest for fare increases they know will be coming in the near future.

SO, we are left with property tax as the option. $ 31 / year for the 'average' household for Plan one, and $ 54 / household / year for plans one and two.

I have to say, I'm thinking that seems like pretty good value for money, to get the evergreen line for $ 31 / year in fact seems like a real bargain. Some quick, and very simple math in my head (OK , i used a scratch pad) tells me that the $ 50 million for the MCC , on the same formula, would be $ 3.85 per household. Now WHO would disagree that the MCC is worth $ 3.85 per year ? Boy, if they would just throw that into the plan 1, call it $ 35 / year, they'd have my support in a heartbeat !!

Alas, my train of thought is interrupted by the opening of the microphones to the audience, specifically , the mayors at the front of the queue. Overwhelming clarity of the message: Property Taxes are not the way to fund transit infrastructure !! There is a clear message about property tax being (the one and only) municipal domain, and meddling in property taxes for projects that would ordinarily be funded by provincial or federal governments or other programs, is yet another form of downloading and an erosion of municipal autonomy.

OK, i get that, I guess.. unfortunately, whether you take my money off my property tax bill, my vehicle insurance, toll booths, my cell phone, or whatever other zany idea you come up with, its still money coming from me, the taxpayer. Nothing will ever change that - government programs and projects are funded by the taxpayer, and there's only ONE taxpayer (OK, i mean, there's several million of us, but you get the point !!)

I do understand the frustration of the mayors and i certainly feel there is a united front on this issue -not sure i fully agree, but, certainly this issue will be playing out over the coming weeks and more information will be forthcoming.

The translink report can be viewed online via my website @ http://www.mikeclay.ca/default2.asp?active_page_id=1599

No comments: