Frances Bula header image 2

Frustrated mayors make plans to roll back planned property-tax increase of next two years, which will remove $30 million a year from the system

February 28th, 2013 · 37 Comments

And it’s pretty clear they’re totally fed up with the provincial government, which, they point out, took all the power away from the mayors five years ago and now is telling them that they — with no budget and no mandate to do so — should develop a regional vision for transportation and sell it to the public before the province will consider any new funding mechanisms.

But don’t believe me. Read for yourself.

13 02 28 Letter to Minister Polak-1

Categories: Uncategorized

  • rico

    It is depressing but hopefully it will spur some action….although with the current minister I doubt it…and that is too bad because it will take time after the new government comes in before they will be able to address the issue so it will probably be fall before any action happens.

  • Richard

    None of the leaders have made really strong commitments to transit yet. They don’t seem to really understand how important it is for the people of the region and the economy. Hopefully the UBC Line study released today will get them moving.

    Would be great to have leadership here like there is in Ontario now. The party leaders there are competing over who is strongest on transit and opening talking about new revenue sources.

  • Paul c

    At this point in time there is no point for the mayors to even create a plan. The current government will most likely be kicked out in May and they really have no say in the matter. In fact the liberals are acting like they know they won’t win the next election and are just sitting around and doing nothing.

  • boohoo

    Again, this is all utterly meaningless until after the election when something *might* change.

  • spartikus

    Factio Liberalis Britannica Columbiae delenda est

  • Raingurl

    I agree with Paul C #3!

    The Libs are (and always have been) an embarrassment to BEAUTIFUL British Columbia. If they did get voted in we would have to change the name of this province to *Offshore Investors Come and Take What You Want*

  • Rico

    Far be it from me to defend the liberals but with the exception of the recent past (Christy Clarke) they have had a very similar record on transportation to the NDP (both have had transit expansion but both focused more on highways). That said Christy’s liberal are clearly not handling transportation well. And yes it is clear they know they are on the way out and just dragging on issues when a more visionary government may look to create solutions or plans even though they know they will not be in government for the next term.

  • Raingurl

    Or we could change the acronym to IBO….Welcome to BEAUTIFUL I’m Bending Over! Tip yer lib. on the way out the door……….

  • Sean Nelson

    Kudos to the mayors for not caving. It’s nice to see political leadership showing some backbone. It’s terribly unfortunate that this will affect transit service, but I sincerely hope it turns out to be short-term pain for longer-term gain in the form of an improved funding model which will better meet our transportation needs.

  • boohoo

    And confirmed today by Polak. ‘We won’t do anything until the election, continuing our tradition of doing nothing on this issue.’

    Or something like that.

  • Bill Lee

    Is Spartikus channeling Cato the elder (234-149 B.CE), up there?
    spartikus // Mar 1, 2013 at 9:14 am #5

    And why the Liberal MLAs, when they are similar to the soft Liberals in a Hurry of the NDP.

    I could see all the Campbells yes. Gordon, Michael and Catherine

    And it’s all about which “level” of government takes charge of the transit, but only used by less than 20% of the population.
    Statcan.gc.ca “Employed labour force by mode of transportation to work, by census metropolitan area (2006 Census)” from the last “good” census.

    Someone with clear sight would take over and tax everyone in some way to maintain low fares, good service, and whips on everyone to try it for a while.
    Gasoline price increases may put some onto transit as every 10 minutes is a litre in smaller cars and 2 liters or 20 minutes is bus fare (currently)

    [ Look up “Carthago delenda est” in Wiki or other quote books ]

  • brilliant

    @Sean Nelson 9-hardly political leadership from the mayors as they try to weasel out of looking responsible for a property tax hike. Nevermind they’ll fill their coffers developing land aroind transit.

  • Roger Kemble

    Did I read in The Sun yesterday, the latest TX gambit is the city and UBC agreeing to tunneling Skytrain along Broadway @ C$2.5B?

    I thought UBC was calling for street cars!

    And the province dealing with a C$50B out rigger. Don’t forget all these big numbers come with debt charges in perpetuity.

    Is there some kind of vicarious prestige in carrying unpayable debt?

    Some day someone wont be able to pay the piper unless UBC starts offering classes on line at least so far as the Broadway corridor is concerned!

  • Richard

    @brilly brill brill

    The province committed when TransLink was formed to enable the use of other funding sources like the vehicle levy. Unfortunately neither Liberal or NDP governments have followed through on that promise. Property taxes have been raisef several times to fund transit and there are small automatic increases each year.

    It is past time the provincial government show some leadership and give the region the authority it needs to expand transit.

  • Richard

    @RK

    With these types of projects, the increases in tax revenues generated by just the construction related economic activity, come close to the amounts that the provincial and federal governments contribute.

    Then there are all the other economic benefits generated by transit like those in the study released the other day.

    The debt “problem” is generally way overstated by those with some agenda.

  • Roger Kemble

    Richard @ #15

    I have no agenda.

    Nevertheless I am curious to know why debt keeps spirally upwards while services continue to deteriorate . . .

  • mezzanine

    QFT from Voony:

    “The mayors can certainly vote a motion asking Translink to study some scheme, they didn’t.
    They like to speak of road pricing, but so far it is very difficult to understand what they means by that:
    -Why they don’t ask Translink to study a couple of model and to see how it can work in the region

    Why keep all the things vague…Why not come with a clear sustainable scheme people can discuss and submit it to the Province? … expect more power, including more power to tax, At this time who understand what the mayors are asking exactly?

    ———–

    On the governance
    I notice that Obama could say exactly the same as the Council of Mayors (He can only sign or not the bills coming from the congress, not initiate them)…but a better comparison could be the European Union, where Appointed commissioners draft the European laws…European parliament member can’t introduce a bill, just vote on what the commission propose…and if it has been designed like that by the founding father of Europe (Rome Treaty 1957), it is for good reason (avoid bill drafted on patriotist interest)…basically the same reasons are prevailing in Metro Vancouver (Parochialism)…Of course in practice, in US like in the EU, you can send some message on what you want to see on the table…and The council of Mayors can do exactly that with the Translink board…but so far thy didn’t have expressed the leadership required for that.”

    http://stephenrees.wordpress.com/2013/03/01/the-mayors-vs-the-minister/#comments

    Be careful of what you wish for, mayors…

  • Richard

    @RK

    Apologies. Never meant to imply you had an agenda regarding debt. Just realize that many of those who are involved in the issue do.

    Also, there is a huge difference between debt incurred to pay operating expenses and debt used to finance capital projects like rapid transit.

    In the case of transit, people will gain the benefit of the system for decades to come so it is very reasonable to have them also pay for the cost of building it. This is essentially what borrowing money to build it does.

    Borrowing money to pay for operating cost of government makes much less sense.

  • Roger Kemble

    Borrowing money to pay for operating cost of government makes much less sense.

    Yes, Richard @ #18, I see your point. Mayor Philip Owen also saw Vancouver’s future in high tech. Mayor Owen chose the False Creek flats as a Silicone Valley clone way back in the mid-90’s.

    Needless to say his concept fell flat on the flats. Kal Tyre etc., ain’t no Silicone Valley!

    Mayor Robertson cherishes the anachronism, putting his hope in UBC: the same everybody’s doing it myth thirty years too late: indeed, everybody’s already done it!

    Be sure tunneling will eventually degenerate into cut and fill then it will be back to the Cambie fiasco and along Broadway it will be fiasco+.

    That is not a good reason to take on more debt, on top of an already extenuated debt, provincial, civic and personal.

    We need forward thinquers and this mayor just doesn’t cut it: not to saddle ourselves with shop-worn proposals @ C$2.5B+ and rising!

  • brilliant

    @Richard 14-the time honoured strategy of soaking motorists to pay for transit has run its course. Its already driven thousands across the border every day.

  • Mira

    Frances,
    I liked the title. Especially the “frustrated mayors…” part.
    What I see is a bunch of Alpha dogs tied up at the same slade and not happy. Only if you keep Vancouver’s into consideration… they all wanted their own sleds, they don’t like to be tied up, and have a “human” for lead. 🙂
    They need to hear it more often… “Mush!” or ” Hike!” or whatever makes the mayors to move forward! No barking o0r biting allowed., or you’re off the sled.

  • A Dave

    “The debt “problem” is generally way overstated by those with some agenda.”

    vs.

    “…hope in UBC: the same everybody’s doing it myth thirty years too late: indeed, everybody’s already done it!”

    If anyone might be accused of overstating their case in service of an agenda, I would think it would be the rather pie-in-the-sky numbers contained in the UBC “study”.

    But if UBC is really serious about becoming a high-tech hub, maybe it should start leasing land cheaply to high-tech research companies like Stanford did decades ago, and working out similar student-research agreements with those same companies –> create attractive opportunities for the best and brightest?

    The real issue isn’t “getting there”, it is “overhead”. Making it more attractive/affordable for companies would spur sector growth much faster, and more effectively, than sinking billions into rapid transit that won’t get built for more than a decade and hoping that will somehow catalyze the industry growth they are for(tune)telling.

    Of course, leasing land to facilitate high-tech industrial growth and attract students would mean that UBC would have to curtail their plans to cash-in on mega-project condo developments, you know, the type that tend to pop-up around rapid transit stations these days…

  • Roger Kemble

    Frustrated mayors . . .” FRUSTRATED MAYORS?

    C$2.8B looks like 2,800,000,000 in the North American numerical lexicon and that is bandied around with the excuse hi-tech UBC and a few offices and condos along Broadway will pay for it!



    Nobody, in their “irrational exuberance” mentions annual carrying charges over and above initial payout. To wit: 2.5% annual, and that’s lowballing it.

    So after paying off all the contractors etc., etc., we then have the daunting challenge of paying annually C$70,000,000.00 in perpetuity just to keep the bank happy: to say nothing of operating, maintenance, staff and depreciation.


    Then there is the delicate matter of paying off the principal that is, well, such a horrifying number it’s brushed under the rug.

    And remember none of these bankers’ profits stay in the community or even Canada. They’re loaded off to London for our Carney to play with!

    No one looks at it from that direction do they? Too busy enjoying the gossip!

    No way will any half-baked UBC courses or research make up for that! No way will any half-baked wall of gray and glass condos and offices make up for that.



    How about irresponsible mayors? Vancouver’s Mayor and UBC are reckless to even consider such chatter. And Frances should know better than to write, in her G&M article, such uncritical drivel!

    Vancouver has, for as long as I remember (60 years +), reveled in a world-class-mountains/sea-paradise myth it has never really face reality.

    So, off you go all you transportation enthusiasts: break a leg!

  • Lee Leeman

    A recent ‘Carbon Talks’ event wherein Richard Walton, head of the ‘Frustrated Mayors’ Council, presented the current mayors’ outlook on how to pay for the large plans of the transportation zealots, at which he produced this handout reproduced here:

    =========
    Guiding Principles for Funding of Regional Transportation

    1. System expansion should not occur at the expense of maintaining existing or future system performance and the ongoing state of good repair of infrastructure.

    2. Transportation projects will undergo a a rigorous alternatives review including full life cycle cost analysis prior to approval.

    3. Capital projects expanding or improving the network will be evaluated on the impact to the ovealll network’s ability to move goods and people and support land use objectives.

    4. Revenue sources should provide pricing signals to link desired user behaviour to overall transportation objectives.

    5. Funding should be generated from the goods movement sector to offfset costs attributed to the transportation of goods throughout Metro Vancouver, recognizing its role as a gateway to the Province and the Nation.

    6. Collectively, funding sources should be reliable and predictable, but adjustable against each other as revenue levels change over time.

    7.Funding options should be economically efficient in their administration and collection.

    8. Transit fare rates should be sensitive to public affordability.

    9. Historically, property taxes have been a foundational funding source that reflect the broad benefits of the transportation system but should not increase.

    10. As newer more effective revenue sources are introlduced, reductions should be considreed for funding sources that make the funding mix inconsistent with the principles stated herein.

    11. As the Metro Vancouver Region is a key conduit within the provincial and national goods movement strategy, senior levels of government should provide condinuing funding to support the transportation needs of the reion and the country.

    12. Collaboration should esxist betwen Translink, the Province and Metro Vancouver to ensure alignment with the Regional Growth Strategy and the stated outcomes of regional transportation funding and investment.

    13. Funding sources chosen should support sound environmental policy, including legislated reduction of green house gases, and manage demand efficiently.

    Approved by Mayors’ Council on May 3.2011

    ==========

    Can you say “social engineering”?
    Can you say “road pricing”?
    Can you say “Make the car drivers PAY!!”?

    After the meeting, Walton was asked which form of road pricing the mayors’ foresaw but he dodged the question artfully, saying ‘the mayors’ council doesn’t deal with that question, it is left to Translink and the province’. ( Sorry, not a direct quote, but a paraphrase, my memory isn’t that good.).

  • Everyman

    I don’t mean to slight Surrey, but they did just get a brand new bridge. There is no way for access to UBC to expand, no room for roads and the 99B line is maxed out. It should be the priority.

  • Roger Kemble

    True Everyman @ #25 but the city and UBC should come into the 21st century by offering classes on line.

    On-line attendance was touted, when I was at UBC (some classes up to 80+) in the eighties, but has since slipped off the radar!

    When the mayor uses, “Vancouver is way behind other cities“, as his reasoning he just shows juvenile thinqing, not 21st century city planning!

    And you Everyman are no different!

    World class, the view, paradise, the mountains, the sea we’ve heard it all before as we deny Asian speculators leaving condos empty.

    That level of world class thinquing, Everyman, just doesn’t cut it any more!

  • Roger Kemble

    PS Or Vancouver world-class dead-beat!

  • Ned

    Thanks, Roger Kemble #26 and #27 for articulating it as it is.
    “When the mayor uses, “Vancouver is way behind other cities“, as his reasoning he just shows juvenile thinking, not 21st century city planning!”
    A juvenile thinking mayor and a juvenile following.
    “Vancouver world-class dead-beat!”
    Amen to that!

  • Dan Cooper

    I seem to remember that this tax was introduced in the first place on the theory that it would not really need to go into effect because somehow against all odds and experience a better plan was going to be developed. I wrote at the time that I had nothing, as such, against such a tax, but a spade should be called a spade and it should be admitted that if this tax was passed, then presumably a tax there would be as any other plan being put in place was highly speculative and in fact unlikely, largely due to the stupidity and cupidity of the Provincials.

    So, it seems I was partly right and partly wrong: indeed the Provincial government has continued to jerk everyone around and not allow any reasonable conclusion to this; on the other hand, the tax will not be going into effect after all it seems, and so there will be no funding of any kind. Worst of both worlds.

    Hopefully after May something different will happen. Myself, I say “bring on the tax” if that is what it takes, and be upfront about it and why it must be done.

  • Ned

    Geez, Dan #29
    “Myself, I say “bring on the tax” ”
    You just made the Chinese, Cubans and the North Koreans … envious!
    Really!?

  • Roger Kemble

    Ned @ #28

    Taxes (road traffic taxes I suppose, but isn’t that supposedly on the wane?) to keep annual C$70M at bay is some leap!

    And what about Evergreen . . . and, god knows, all the other TX boondoggles in the pipes?

    I am convinced tax and spend shills get busy 0n-line whenever the conversation turns to big money projects.

    Am I paranoid?

  • Dan Cooper

    @Ned:

    Sure, I have no problem with paying taxes, since I like having things like firefighters, roads, buses and trains, food safety, etcetera and etcetera. How the taxes are divied out can be argued about, but taxes of some kind there must be under any system, unless you’re some kind of Randite who believes supermen should run society for their own benefit.

    TANSTAAFL, to quote Robert Heinlein, one of my favourite authors: There ain’t no such thing as a free lunch. Someone always has to pay, and indeed I am willing for that to be me among others. Why not?

  • Bill Lee

    Roger Kemble said (#26):
    “On-line attendance was touted, when I was at UBC (some classes up to 80+) in the eighties, but has since slipped off the radar!
    When the mayor uses, “Vancouver is way behind other cities“, as his reasoning he just shows juvenile thinqing, not 21st century city planning!”

    Ah, but they are concerned about MOOC (Massively Open Online Courses) [see Wiki ] because the flurry of recent openings (Coursera, Edx, Khan’s Academy, etc.) are frightening them as other schools (McGill, Harvard, Stanford) schools stars can and do teach better than UBC.

    I’ve taken a few MOOC in the past months, and some are hard, some are uneven, but it is a full lecture with aids, and open software course with several written assignments (Massively Peer-Reviewed) required for a ceritificate.
    Faculty at UBC are hearing about it everyday and wonder what and when the university is going to do something about ‘it.’

    I say, throw UBC out to Chilliwack where it belongs as starting out as a farm and forestry school.
    Build afresh, not jury-rig 1950s buildings for the 21st century, including enough lines, power, data, wifi and such for the new age of learning.
    Do it right the first time.
    Cheaper housing, a bucolic setting, and some isolation to do thinking, not get drunk at Faculty Club/Fraser Arms (both lamentedly closed)
    And the valley might get fast rail to its eastern end.

    I’ve read the 53 page drivel from the Broadway corridor transit report written by MMK under contract to KPMG Consultants.
    What a load of old codswallop and self-serving press cuttings.

    No one trusts UBC. They have always wanted full control, never an equal partnership.

    And this week UBC and McGill fell 6 places down from their lowly position into the netherworld in the Times Higher Education world survey.

  • Lewis N. Villegas

    Transit is a regional function that cuts across local jurisdictions and must be able to play tough against localized interests.

    We need regional-level elected government to make the regional choices.

  • Stunned

    Bill Lee, what you wrote is one of the most astonishingly naive things I have ever read:

    “I say, throw UBC out to Chilliwack where it belongs as starting out as a farm and forestry school.
    Build afresh, not jury-rig 1950s buildings for the 21st century, including enough lines, power, data, wifi and such for the new age of learning.
    Do it right the first time.”

  • Warren

    Killing transit taxes, Rob Ford would be proud!

  • Thomas Ian McLeod

    Most of the mayors are attractive, talented and hard-working people. However, in this case I see no evidence that they have tried to engage the public in designing a system of TransLink governance that would achieve the goals of efficiency, transparency and fairness. Each one of them is an experienced and successful campaigner. Why haven’t they campaigned?