Vancouver Sun

Road tolls recommende­d for Metro

Extensive levies aimed at raising millions for Translink

- BY DON CAYO

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.

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