Road tolls recommended for Metro
Extensive levies aimed at raising millions for Translink
A comprehensive road pricing scheme — tolls that you’d have to pay to drive pretty well anywhere in Metro Vancouver — is the method favoured by provincial and regional bureaucrats to finance Translink’s ambitious spending plans well into the future.
But they have many other ideas on how to extract, over time, hundreds of millions of dollars from taxpayers. The proposals are outlined in a confidential report, Evaluation of Revenue Sources to Support Transportation Improvements in Metro Vancouver, that was distributed to hand- picked political and stakeholder groups earlier this month. The proposals cover the gamut — from fuel and carbon taxes to property taxes, development fees and fare hikes, as well as stiff new or additional levies on everything from parking to business payrolls, car rentals, hotel rooms and goods transported around the region.
The Joint Technical Committee, composed of senior executives from the Ministry of Transportation and Infrastructure, Translink, and the cities of Vancouver and Surrey, ranks more than 20 proposals according to technical suitability and — as the committee members interpret the broad direction they’ve received from the region’s mayors — political desirability.
Next, for any of these measures to be adopted, the regional Mayors’ Council that oversees Translink will have to decide which options it wants, and the provincial government will have to pass enabling legislation.
A copy of the document obtained by The Sun says the move to road pricing could be implemented in various ways, including by tolling major water crossings, tolling entry and exit points to defined areas of Metro Vancouver — possibly varying by time of day — or by tracking and charging for total kilometres driven. All these options were given high or fairly high ratings on all four criteria taken into account: the impact on people’s transportation choices, the impact on families and the economy, fairness and transparency, and the ability to generate and sustain revenues.
One table in the report estimates a toll of $ 1.60 per trip at major bridges and tunnels — which are not named — could raise $ 100 million a year. Another table suggests toll revenue could total between $ 100 million and $ 200 million a year.
However, the report notes one drawback — none of these road- pricing schemes could be implemented in time to meet Translink’s 2013 needs.
The Mayors’ Council has said in the past that Translink’s existing revenue sources, as authorized by provincial legislation, aren’t adequate to meet its needs. The province has approved a new fuel tax of two cents a litre to cover a portion of the revenue needed while long- term options are explored. A plan was also approved to authorize a limited- time property tax increase, averaging about $ 23 per homeowner, for 2013 and 2014 to fund TransLink’s short- term needs if longterm funding isn’t found before then.
However, earlier this month, several Metro Vancouver mayors called for an independent audit of the transit authority to ensure it is running efficiently before additional taxes and tolls are considered. Translink Commissioner Martin Crilly is already reviewing the agency’s financial picture ahead of deciding whether to allow a 12.5- per- cent transit fare hike that could go into effect next year.
Translink has been struggling to finance the growing region’s transportation needs. In December, the agency predicted an $ 83- million deficit for 2011, while transit ridership grew by five per cent. Additionally, Translink has several massive projects in the works including: the $ 1.4- billion Evergreen Line, to which it has committed $ 400 million; upgrades to the Expo Line, estimated to cost between $ 850 million and $ 1.1 billion over 30 years; and a $ 150- million upgrade to the Main Street, Commercial- Broadway and Metrotown Skytrain stations to take place over “the next few years,” according to its website.
The confidential report outlines several other options the politicians are likely to consider.
Other highly ranked options are:
• An increase in the Metro Vancouver fuel tax, now 17 cents a litre. This could bring in $ 30-$ 100 million a year, and is one of just six options that could be adopted in time to meet 2013 funding needs.
• A new regional carbon tax, or a portion of the provincial carbon tax being designated for Translink. These are the richest options, with revenue potential estimated at more than $ 200 million a year. A regional carbon tax, the document says, could be implemented by 2013, although it doesn’t see the same possibility for a designated portion of the provincial carbon tax, possibly because it was temporarily frozen by this week’s provincial budget and it’s now to be subject to a year- long review.
• An increase in parking sales tax from its current level of 21 per cent. The revenue estimate of $ 10-$ 30 million implies that it would go up between 4.5 and 13.5 percentage points to range between 25.5 and 34.5 per cent. This, too, could be done at the stroke of a pen, but it wouldn’t bring in enough to fully meet Translink’s immediate needs.
• A new vehicle registration fee — either a flat fee, or one based on emissions standards, or on the owner’s proximity to public transit. This could bring in $ 100-$ 200 million a year, and it could be implemented quickly.
• Transit fare increases over and above the rate of inflation. Increases of 10 to 33 per cent would bring in $ 30-$ 100 million in potential revenue, but they’re not flagged as something that could be implemented right away.
• Higher property tax with a portion allocated to public transportation. This could raise $ 100-$ 200 million and be implemented quickly.
• A benefiting area tax, which would mean an extra assessment on property that gained value because of its proximity to a major transportation development. This could raise $ 30-$ 100 million, though it’s not on the list of measures suitable to meet needs in 2013.
• Project tolls, described as “charges for use of a new facility that would otherwise have been free to use.” This could raise $ 100-$ 200 million, and is not on the list of ready- toimplement strategies.
A second list of six strategies is given a medium ranking based on their technical merit and political sensitivity, and thus might still be considered by the politicians. These options are: • A flat levy per property that, the document says, could raise $ 10-$ 30 million a year, an amount that implies an annual rate of $ 13-$ 39. It could come into effect in time to partly cover Translink’s 2013 plans.
• A regional sales tax that, at a rate of 0.6 per cent, could raise $ 30 million.
• A parking levy on all stalls, free or paid, that could raise $ 10-$ 30 million at a rate of $ 25 to $ 75 per stall.
• An employer payroll tax that could raise $ 30-$ 100 million at a rate of $ 30-$ 90 a year per employee.
• Development charges when land is subdivided or building permits are issued. This could raise $ 10-$ 30 million at rates of $ 1,500-$ 4,500 per family home, $ 650-$ 1,950 per apartment, and $ 1.25-$ 3.75 per square foot of commercial space.
• New charges to municipalities that see their property tax revenue increase as a result of new transportation facilities. This would bring in an undetermined amount.
Finally, there are four areas that were ranked as low in potential — a vehicle sales tax, a car rental fee, a fee for goods transported in the region, and a hotel tax.