Closing the Funding and Accountability Gaps Update and next steps

Transcription

1 October 2015 Mayors Council Meeting Element Vancouver Metrotown Agenda Item #3 Closing the Funding and Accountability Gaps Update and next steps October 1, 2015 Presentation by Michael Buda Interim Executive Director, Mayors Council

2 Background Scope of work and timeline Both Mayors Council and Metro Vancouver Board provided direction to staff to look at TransLink s funding and governance. This research will inform discussions with the province and TransLink Board to address the funding and accountability gaps that have been identified. A lot of work has been done on both issues over the years, so no new research or consultation is required we need to make a decision on our preferred solutions and then push for it. The end of the year identified as our deadline to see progress. 2

3 Closing the Funding Gap Overview Our challenge: until residents have greater trust in the governance of TransLink, building support for allocating new revenues to the Mayors Plan will be difficult However: meaningful governance reform without securing new funding will leave the Mayors Council in a potentially more challenging position an agency without new resources. Need to advance both concurrently, with a focus on funding. 3

4 Closing the Funding Gap How do we finance our transportation system? Key questions under study: Total local tax load: how do residents support transit through all taxes and fees paid (not just property tax)? Trends over time: how have our funding sources and levels changed over time? Comparisons to other regions: how do we stack up to other regions in BC and across Canada when it comes to transit funding. The cost of alternatives: how do the costs of transit compare to road building to deliver the capacity we need? Provincial taxation regime: how has the tax room provided through the hospital tax affected provincial health investments here; how is provincial education tax allocated? 4

5 Millions Provincial Contributions to TransLink $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Tax room from Prov. fuel tax reduction (6 cents/l) Tax room from elimination of hospital tax Canada Line operating subsidy U-Pass Provincial funding BC Transit amortization for Vancouver assets

6 Millions Prov. vs. Local Investments in TransLink $1,200 Total regional taxes for transportation $1,000 Provincial funding through "tax room" $800 $600 $400 $200 $

7 Prov. Transit Subsidies: MV vs. GTA Ontario Grants to GTHA BC Grants to Metro Vancouver $300 Operating grants per capita $300 Operating grants per capita $250 Capital grants per capita $250 Capital grants per capita $200 $200 $150 $150 $100 $100 $50 $50 $0 $ For Greater Montréal, Government of Québec subsidizes 100% of rail transit projects (Transports Québec) Government of BC has promised 33% for rapid transit projects Historical BC Provincial capital contribution: Expo Line (100%), Millennium Line (100%), Canada Line (20%), Evergreen Line (42%)

8 Prov. Transit Subsidies: BC 80% BC Transit custom 70% 60% 50% 40% Victoria Transit custom BC Transit conventional 30% 20% Victoria Transit conventional 10% 0% Metro Vancouver conventional and custom

9 Annual Contribution per Capita Transit & Hospital Tax loads Metro Van & CRD businesses/residents pay same $300 $250 $200 Hospital Tax $150 $140 $140 Hydro Levy $100 $50 Property Tax $0 British Columbia, excl Metro Vancouver City of Kamloops City of Kelowna Capital Regional District Metro Vancouver Metro Vancouver figures exclude regional taxes allocated to roads & bridges

10 Annual Contribution per Capita Total Local Transit Tax loads Metro Van taxpayers pay more than others regions $300 $250 $115 Parking Tax $200 Fuel Tax $150 Hospital Tax $100 Hydro Levy $50 Property Tax $0 British Columbia, excl Metro Vancouver City of Kamloops City of Kelowna Capital Regional District Metro Vancouver Metro Vancouver figures exclude regional taxes allocated to roads & bridges

11 Cumulative Federal gas tax spending as of 2013 (millions) Federal Gas Tax Fund contributions $500 $450 $400 $350 $300 Total federal gas tax $250 $200 $150 96% Gas tax spent on transit, walking or cycling projects $100 $50 $- Metro Vancouver 7% Rest of BC

12 Transit is expensive but roads more 80% 60% 58% 51% 40% 20% 7% 8% 20% 21% 14% 13% 11% 12% 0% Asia Western Europe Canada ANZ USA % of Trips Transit Walk Bike % of GDP Spent on Transport

13 Closing the Funding Gap What about mobility pricing? Regional support: The Mayors Council is in broad support of mobility pricing to reduce congestion on our roads and raise revenue (to improve the network or reduce other taxes). It works elsewhere: Other cities have shown it can work. Residents are ready for a debate: Positive feedback from a wide range of interests when it was announced as part of the 10-Year Mayors Plan and during referendum. The region is ready to look at this option. External drivers: funding gap; new tolled Fraser crossings planned; October 2014 call for an Independent Mobility Pricing Commission 13

14 Closing the Funding Gap Next steps on mobility pricing Lots of work to do: To know what it looks like on the road system and transit system in Metro Vancouver will take a lot of work; The region also requires people to have more transit options in place before mobility pricing can be implemented. Next steps: No final decisions have been made. We don t have all the answers so we are beginning work now. Recommendations on next step to come in November. Municipal, Metro Vancouver and Provincial engagement required. 14

15 Closing the Accountability Gap Key Questions 1. What is required to rebuild trust in TransLink, which is in turn required to build support for investing new taxes and fees in transportation system? 2. How to improve alignment between RGS & transportation planning? 3. How can we hold TransLink to account for delivering our 10- year plan and aligning with RGS? 4. Is there a direct role for Metro Vancouver in TransLink s governance? 5. How have 2014 governance amendments to TransLink s legislation been implemented? 15

16 RECOMMENDATIONS 1. Invite the province of BC to work with the Mayors Council over the next two months to produce joint recommendations on how to close the funding gap, to enable implementation of the transportation improvement projects proposed in the Mayors Plan; 2. Ask TransLink to report back at the November 5, 2015 meeting of the Mayors Council on options to advance the mobility pricing objectives of the Mayors Plan as quickly as possible, and to produce these options in cooperation with municipalities, Metro Vancouver and the province where possible; 3. Work jointly with Metro Vancouver s Task Force on Transportation Planning and Governance Review to make recommendations to improve TransLink s governance and the integration of land-use and transportation planning; 16