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TransLink board chair urges mayors to approve 30 per cent property tax increase, gets “chilly” reception

November 10th, 2010 · 82 Comments

Metro Vancouver mayors met yesterday to look at the letter and plan from the TransLink board, headed by the long-suffering Dale Parker, for how to go forward in 2011.

Parker said there’s no way to get new sources of revenue by 2011 but TransLink needs to sign an agreement by the end of the year so that construction on the Evergreen Line can go ahead. So he’s recommending that they approve a property-tax increase for 2012, in the hopes that the province will give something new (carbon-tax revenue or whatever) or that they can figure out how to put a vehicle levy in place by then.

Vancouver Councillor Geoff Meggs, who keeps a close eye on TransLink along with his many other activities, said that idea did not get a warm reception at yesterday’s mayors’ meeting, which ended too late for any of us media types to get reaction from them by deadline.

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  • Sean

    @Michael Geller #50
    “I recall a discussion on the Bill Good Show a little while back on tolls and congestion pricing, to which Bill Good responded “why not simply further increase the gas tax?” ”

    Exactly. I really haven’t heard any convincing arguments as to why this isn’t the right solution.

  • mezzanine

    WRT a higher gas tax, IIRC a major issue is the south of fraser mayors see it as more punitive to their citizens as they tend to drive more than ppl on the burrard penninsula.

    Of course, poor land use on their part got them in that mess in the first place. I’m looking at you dianne watts. you talk streetcars on one side and you plan car-oriented greenfield sprawl on the other side.

    “What frustrates and frightens me about this planning proposal is how inherently suburban sprawlish it truly is. Port Kells is so disconnected from the rest of the City right now, and consists of a tiny, rural population, much the same way most of Grandview is. What the City wants to do is massively increase the population in one of the most disconnected areas of Surrey, which will only increase traffic congestion on Highway 1 and the Golden Ears Bridge as there is no easy way to connect this area to transit anytime soon! For all the touting Council is doing about the Town Centres, this type of planning is in complete contradiction with urban, transit connected development. This is Sprawl 101 point blank. It’s sickening.”

    http://www.civicsurrey.com/2010/05/28/significant-density-coming-to-tynehead/

  • mezzanine

    Sorry, the above post is referring to the tynehead neighbourhood plan.

  • Sean

    #Mezzanine #52

    “WRT a higher gas tax, IIRC a major issue is the south of fraser mayors see it as more punitive to their citizens as they tend to drive more than ppl on the burrard penninsula.”

    Yes, well – that’s exactly the point, isn’t it?

    If South of Fraser mayors want to see more transit, they need to get more people out of their cars in order to justify the investment. What better way to pay for transit improvements in the outlying areas than with a tax that tends to mostly encourage transit use by people in the outlying areas?

  • mezzanine

    @Sean, I would agree with that but I have little faith in the mayor’s council being able to come out and champion another novel and complex method, like tolls or road pricing.

    Even Malcolm Brodie, the mayor of richmond, the recipient of the new canada line after much political wrangling can’t do quid pro quo and push for support for the funding request.
    ——-
    Also of note, doing some digging, translink gas tax increases are limited within a certain period of time by legislation, and we’ve maxed out on that.

    “Fuel taxes are at the limit of what’s allowed under TransLink legislation after a three-cent increase last January.”

    http://www.bclocalnews.com/tri_city_maple_ridge/tricitynews/news/104817984.html?mobile=true

    from jeff nagel’s article, a vehicle levy might be doable in the near-term (ie, within the next year), but the province will have to be careful introducing it this time.

  • Jason king

    “WRT a higher gas tax, IIRC a major issue is the south of fraser mayors see it as more punitive to their citizens as they tend to drive more than ppl on the burrard penninsula.”

    I agree with Sean, that’s exactly the point…if we are continuing to build and pay for transit connecting outlying areas to the city, then the best way to encourage usage is by increasing gas prices….it pays for that transit and gets butts in transit seats.

    I also find it funny that there is a “gas tax limit” yet no property tax limit. I’m assuming part of this is because the provincial government wants to put the responsibility on the municipal governments for funding, but I still think it’s ridiculous.

    Unfortunately given the NDP’s complete opposition to the carbon tax, and the Liberals not wishing to create any new lightening rod issues, I doubt we are going to see any action on this issue for some time to come.

  • Bill McCreery

    The Province builds & pays for highways & other roads all over the Province for the primarily rural population + infastructure transportation + +. Why should they not be obligated to build ‘urban highways’ which include an adequate transit system in the urban areas of the Province? Please tell me what is the difference. The 1st serves the movement needs of rural British Columbians, the 2nd the movement needs of urban British Columbians.

  • Lewis N. Villegas

    … “why not simply further increase the gas tax?”

    Geller 50

    et al, 51-56

    “Why should they not be obligated to build ‘urban highways’ which include an adequate transit system in the urban areas of the Province? Please tell me what is the difference.”

    McCreery 57

    Now if we could have a cuppa in our hands while we were doing this, then my enjoyment would be complete.

    True political courage, it was stated on Friday night on the PBS Newshour political analysis segment, comes from pissing off the extreme right AND left wings.

    Well, the answer here comes from the Right (sorry Left). Too many taxes can cast a pall over economic functioning.

    Bill’s comment gives us a way out. Rather than increasing taxes, we need to be more productive around growth. All that whining that we do here about planning transportation and community development at the same time saves money, and generates new tax revenue. That’s the kind of new taxes that keep economies roaring for centuries.

    When I deplore spending transportation gold to build guilded transit in Coquitlam and Port Moody, I have my eye on the same build out I see in Surrey. Furthermore, the lipstick-on-the-pig efforts to add density with towers at the Skytrain stops is just more suburban sprawl in a different package.

    The other way not to raise taxes is to get the urbanism right. Here, too, I see progress.

  • MB

    @ boohoo #45: “I can’t hear you over the construction noise from that 2 billion dollar new highway running across the region.”

    @ Lewis #58: “When I deplore spending transportation gold to build guilded transit in Coquitlam and Port Moody, I have my eye on the same build out I see in Surrey. Furthermore, the lipstick-on-the-pig efforts to add density with towers at the Skytrain stops is just more suburban sprawl in a different package.”
    = = =

    It’s not $2 billion, boohoo, it’s $6 billion (North + South perimeter roads, Trans Canada + Port Mann). Make that about $9 billion once the amorization on financing costs are in.

    $9 billion for freeways. In the 2

  • MB

    …21st Century.

  • MB

    @ Bill #57: “The Province builds & pays for highways & other roads all over the Province for the primarily rural population + infastructure transportation + +. Why should they not be obligated to build ‘urban highways’ which include an adequate transit system in the urban areas of the Province? Please tell me what is the difference. The 1st serves the movement needs of rural British Columbians, the 2nd the movement needs of urban British Columbians.”
    = = =

    See above comments on the cost of propping up
    private transport via the Gateway project.

    It’s about an attempt to sustain the 70+% volume of traffic over the Port Mann that consists of single-occupant private vehicles, to promote sprawling real estate development in the ridings near the former minister of transportation (who also has a background in suburban real estate), and to win votes in suburbia where car-dependency is near total and remains utterly subconscious.

    Gateway is not about assisting commercial traffic, as stated. That could have easily been accomplished through inexepensive road reallocation measures on the existing infrastructure, and priortizing transit and HOVs over SOVs, therein alleviating much congestion for commercial traffic.

    I’ll predict that the Port Mann tolls will hit drivers at the same time they’ll be paying $2+ / litre, and the toll revenue will be far lower than estimated by the planners who made several glaring ommissions in their “analysis” of Gateway, one of them being higher prices of fossil fuels.

    The trouble is, the Gateway debt will likely hinder the development of adequate alternative transit infrastructure into the foreseeable future.

    The question needs to be asked whether our urban society should continue proceeding as though this was 1955 Los Angeles?

    http://www.istp.murdoch.edu.au/ISTP/casestudies/Case_Studies_Asia/myths/myths.html

    Moreover, can we even afford it?

    In 1993 the Greater Vancouver Regional District (GVRD) and the province of British Columbia released a report entitled “Transport 2021”. One of the working papers for this report was titled “The Cost of Transporting People in the British Columbia Lower Mainland”.

    Private, motorised vehicles (including motorcycles) were subsidised by about $2.7 billion in the Lower Mainland in 1991. As the full costs of auto transport are about $11.7 billion, the subsidy for cars is about 23%. …

    Total subsidy $ millions
    Road construction 416
    Road maintenance 144
    Road land value 601
    Protection services 45
    Air, noise, and water pollution 515
    Urban sprawl 282
    Parking (commercial and government) 157
    Commercial delays 97
    Unaccounted accident costs 397
    Total 2654

    …if the costs of private motorised vehicles were fully internalised by the user, the saving in municipal taxes would be $331 per Lower Mainland resident per year. Similarly, the saving in provincial taxes would be $110 per resident per year and the saving in the general costs to society would be $867 per resident per year. In fact, all of these payers would likely save even more, because if users paid the full costs of their personal vehicle use and were aware of these costs, their use would most certainly decline.

    Public, motorised transport (all modes of transport provided by BC Transit) was subsidised by $360 million in 1991. This represents a subsidy of 37% given that total transit costs were $976 million.

    In February of 1993 the Ministry of Transportation and Highways published a document titled “Reviews of Transport 2021 Costs of Transporting People in the Lower Mainland”, which estimates a much higher overall cost for “light vehicle” transport.

    The Ministry report agrees with the Transport 2021 report that the total “road user + agency” cost is $10.7 billion. However, the “more realistic environmental costs” in the Ministry report differ:

    In billions of 1991 dollars:

    Cost Category Transport 2021 Ministry
    Local Air Pollution 0.4 0.8
    Global Warming 2.9
    Noise 0.06 0.7
    Barrier Effects ignored 0.5
    Light Vehicle Total Cost 11.2 15.6
    User Pay 9.0 9.0
    User/Total Cost 0.80 0.58

    In short: the Ministry of Transportation and Highways of the province of British Columbia said that automobile transportation in the Lower Mainland is actually subsidised by $6.6 billion per year (1991 dollars); >>> 42% of all automobile costs are subsidised.

    This is the 8 billion kg gorrilla in the room, and we’re dickering about SkyTrain vs light rail vs BRT vs bikes vs Reeboks? (We need it all. )About a healthy economy and a fair tax system when several neighbours have two or three cars, one per person, on the public street? About healthy urbanism before anyone builds up enough courage to give the gorilla a solid kick in the crotch?

    C’mon.

  • spartikus

    the planners who made several glaring ommissions in their “analysis” of Gateway, one of them being higher prices of fossil fuels.

    It cannot be emphasized enough just how antiquated the Gateway Project is (and it’s also important to remember there are 2 “Gateway Projects” – the one we usually discuss that affects the Lower Mainland, and the overarching project designed to facilitate trade with Asia…and which will cost $21 billion).

    One of the points I tried to make on the thread about Gordon Campbell’s legacy was one of the underlying and grossly mistaken assumptions of the Gateway Project was that the U.S. consumer would be able to rack up their credit card debts buying cheap imports in perpetuity. We know now that’s not the case. The second mistaken assumption was, as MB ably notes, that fuel costs would remain within the realm of affordability.

    To this last point, I would like to contribute 2 items. The first is 2010 World Energy Outlook from the hippies of the International Energy Agency (executive summary here). Having never mentioned it their previous annual World Energy Outlooks, guess what makes an appearance in this year’s edition? If you say “Peak Oil” you are correct! And guess what? Peak oil has, according to the Birkenstock wearing members of the IEA, already happened …in 2006. Simply to maintain current production not only requires development of unconventional fields like the Tar Sands, natural gas, undeveloped currently known fields, but it also requires in disconcertly large part the discovery and development of fields not yet known. Yeah, good luck with that going smoothly.

    The second item is a study for the free-market types who believe the investment market:

    “At the current pace of research and development, global oil will run out 90 years before replacement technologies are ready, says a new University of California, Davis, study based on stock market expectations. The forecast was published online Monday (Nov. 8) in the journal Environmental Science & Technology. It is based on the theory that long-term investors are good predictors of whether and when new energy technologies will become commonplace.”

    Link available upon request. Personally I do not believe the investment market is a reliable predictor of future trends – investors seem to have just as much in common with lemmings as they do with sober analysists – but that’s just me.

    We should be building mass transit on an enormous scale right now. Either that, or learn to ride a horse. Oh wait, we can’t afford those anymore either…

  • MB

    @ Sparticus: “We should be building mass transit on an enormous scale right now. Either that, or learn to ride a horse. Oh wait, we can’t afford those anymore either…”
    = = =

    Well, I remain somewhat more optimistic that we’ll fumble through on a family, neighbourhood and perhaps a municipal scale, even though our senior governments seem hell bent on mortgaging our future at larger scales.

    Here’s one of the best and most readable (if sobering) presentations I’ve come across yet on peak oil. Get through this piece and it’s clear it’s not just freeways we need to worry about.

    http://www.theoildrum.com/node/7095

  • Bill McCreery

    @ MB 61. You missed the point of what I said, which was the Province “be obligated to build ‘urban highways’ which include an adequate transit system in the urban areas of the Province?”.

    I was using the ‘urban highway’ in the broadest sense to include transit &, I thought I was clear that I meant lots of transit when I said “….adequate transit…”. So, we agree but, I am not informed enough to know whether or not the Gateway projects are justified. But, perhaps it will, when completed give us the time we need to shift our regional transportation modes to start to achieve the savings you mention.

    In any case your figures are interesting & useful.

  • boohoo

    Yes, well it doesn’t matter how many billions it is. It’s foolish to spend a penny on a solution fit for the 1950’s.

  • mezzanine

    As a vancouverite, I do support some measures of gateway (the GEB provides a new and direct link from the Pitt Meadows intermodal yard to Hwy 1, the re-introduction and acceptance of tolls in metro vancouver, rapid bus initiatives). Even the NFPR has benefis, such as replacing the one-way bailey bridge allowing for more intense use of existing induatrial areas and avoiding eating up more land to develop more industrial lots.

    I suppose it jibes with my view of vancouver being a hub of activity, including commercial activity. IMO the port is an asset to the metro area, not unlike a natural resource, to be developed smartly, with a view on the medium to long-term.

    I would think that the major factor here is not port activity or trucking, but the SOV. Hopefully we can discourage SOV use smartly so we can get people onside and not have a backlash.

    It is interesting to note that traffic on the GEB is below projections, arguably due to tolling. I think when the new PMB we will be surprised – I suspect bridge traffic will be down, but i fear more traffic from the cape horn to cassiar, unless TL can be able to introduce more wide-spread road pricing.

  • Dan Cooper

    @mezzanine #47:

    For what it’s worth, I did not feel that what you wrote in #13 was at all inappropriate. Since at least three people took what I wrote the same way, I obviously did not make my point well initially. Anyway, one of the hazards of challenging others in a negative way is that others may challenge back, similarly.

  • MB

    @ Bill # 64.

    I understood what you said, Bill. It’s just that Gateway was justified as a highway first an foremost over transit. Transit is an afterthought.

    Sure, they’ve “designed” two lanes of the new 10-lane (TEN lane!) Port Mann bridge to “rapid transit”, but there is no hint of what that will be, other than some initial buses. Does someone in government have a Coquitlam-Surrey light rail line deep in in their pocket?

    @ mezz #66 : “I would think that the major factor here is not port activity or trucking, but the SOV. Hopefully we can discourage SOV use smartly so we can get people onside and not have a backlash.”
    = = =

    I believe the evidence supports the notion that Gateway was all about the SOV and the suburban car + real estate lobby from Day One. I don’t see Gateway discouraging SOVs in any way.

    Trucking and port activity do not justify the Trans Canada modifications or a ten-lane Port Mann, even if cheap liquid fuels continue to underpin globalized markets. The latter is no longer an assumption you can take to the bank. Rail transport is as important to port activity as trucking, if not more so.

  • Bill McCreery

    @ MB 68. Yes Gateway was a car thing. It’s a done deal. I am saying what it can do is buy time to in fact change the starship’s course to that happy day in the sun when we will have transit as a 1st priority in fact. Being realistic, that’s going to take a bit of time. However, IMHO we should be using Gateway from here on to make those arguments.

  • Lewis N. Villegas

    Bill, the problem is that Gateway highway spending will set the shape development to come in our region for the next 10 or 20 years.

    That’s the gambit. 10 years—okay, we can take that hit. 20 years—and all bets may be off.

  • Lewis N. Villegas

    Oh, and I left out Mezz and the GEB (Golden Ears Bridge)… about the worst piece of highway engineering I’ve driven over as long as memory serves.

    There is more to lament. Let’s take the north side. In Port Coquitlam, the fly-over the CN Rail yards at Coast Meridian has occasioned the most regrettable piece of urbanism in our generation. Eight foot high fences have been erected against the front yards and picture windows of otherwise unsuspecting neighbours to—what—mitigate the impacts of high volumes of traffic??

    There is a gap emerging between engineering practice for traffic design and common sense decisions about the values of place that will threaten our society at the very core of its fabric.

    Another example is when the MoTH elects to erect fences in the middle of an arterial to prevent pedestrian crossings. It happens on the Lougheed Highway at Shaughnessy (just west of the CN fly-over); at Lougheed Highway and Austin Avenue/Cameron Street near Lougheed Mall Skytrain; and in places near your home.

    We are transitioning from a low-density sprawl urbanism to a congested, high-use sprawl ringing our national urban capitals.

    What is eluding us seems to be a “comprehensive approach”. There are too many jurisdictions fighting it out against one another, when in fact what we are looking at is more or less one and the same problem duplicated many times over.

    More and more I see the split between federal and provincial jurisdiction leaving the municipalities out. Canadian cities need to band together at the national level to solve like problems.

  • MB

    @ Lewis #71: “More and more I see the split between federal and provincial jurisdiction leaving the municipalities out. Canadian cities need to band together at the national level to solve like problems.”
    = = =

    Right on.

    Where are our federal MP urban advocates? Our National Transit Plan? Our Minstry of Urban Affairs? Our House of Commons committees on energy security (peak oil) in the urban context?

    Perhaps the largest 20 Canadian cities should threaten to secede in order to get the Prime Minster’s ttention. A nation cannot survive without its primary economic engines, and the new localized economy must begin in cities.

  • Lewis N. Villegas

    yep.

  • mezzanine

    @MB,

    arguably the answer is more importnant at a local level, with land-use planning.

    Ms. Bula’s last post about the office renaissance in downtown is a good example of that. Due to clear restrictions on what can and can’t be built in the CBD, we are getting the mxed development that we need. It’s not a quick and easy way to fill governemnt coffers, but it pays off if you are patinet.

    With or without gateway, you can think of some examples (glenyon park in bby being car-oriented commercial being a bad example, broadway tech park being skytrain-oriented being a good example).

    Which is why the tynehead plan is so egregarious. Gateway’s bad effects can be minimized with proper land-use planning, which tynehead is not. It’s critical to make sure we have transit planned as aggressively so cities can also make wise choices, but some municipalities are also complicit with bad choices.

  • mezzanine

    ps: a quote from Greg Yeomans, TransLink’s manager of transit-oriented development planning:

    “the best transportation plan is a land use plan.”

    (on the buzzer, for some reason, i can’t post a link)

  • MB

    @ mezz, if I was Prime Minister for 30 days ………………………..

  • boohoo

    http://www.bclocalnews.com/surrey_area/peacearchnews/news/108511889.html

    More changes to the faceless board…

  • John Sanford

    30% hike in property taxes is the Translink recommendation? That is completely insane.

    One of these days someone is going to have to take on the Transit union. They are holding the Lower Mainland to ransom; until it’s stopped we citizens will have no control over crazy transit costs.

  • mezzanine

    @ John Sanford, TL’s own documents state that this increase will be ~$9 per $100K assessed property value. This translates to an average increase of $62 to the average metro house. That’s $62 per year. [1]

    I’m unsure how that works out on a percentage basis – it might be 30%, FAIK. IMO it would be worth it for all the improvements that TL lists.

    —————

    Also overlooked is that the province increased its share of funding by $200 million from before. the prop tax increase represent’s the region’s share and can be expected to raise $80 million, which makes the mayor’s council’s reluctance more frustrating. [2]

  • mezzanine

    http://www.civicsurrey.com/2010/10/07/mayors-turn-down-property-tax-increase-for-translink/

  • mezzanine

    http://www.translink.ca/~/media/documents/plans%20and%20projects/10%20year%20plan/2011%20supplemental/2011%20supplement%20funding%20backgrounder.ashx

    Sorry, I have these in reverse order.

    ???I’m having trouble posting links….

  • John S.

    OK; thanks for pointing that out in #79.