Global BC | Translink releases new three-year transportation plan, stalls expansion projects
Quote:
VANCOUVER – Curbing some expansion plans and aggressive cost cutting are in the future for Translink after a considerable revenue shortfall not foreseen by previous plans.
Translink says it is still committed to the Evergreen Line project scheduled for completion in 2016.
It also promises to provide 109,000 new hours of transit service.
Translink officials say there will still be room for rapid bus service on Highway 1 over the Port Mann Bridge from Langley to New Westminster, and B-line service between Newton and Guildford.
Translink is also not buckling on the upgrades envisioned for seven stations on the aging Expo Line.
But Executive Vice President of Translink Robert Paddon warns they are facing a number of fiscal challenges that are forcing them to rethink plans going forward, and reduce some of the services.
For one, Translink’s 2011 plan included additional 306,000 hours of bus service that the transit authority says it simply can’t afford.
Other victims of lower revenues include expanded SeaBus service on Sundays and holidays, Lonsdale Quay upgrade, funding for cycling programs, full Highway 1 Rapid Bus project and King George Blvd B-Line to White Rock.
“From here on in, Translink is going to be working within its means,” said Paddon. “This is going to have an impact on our customers. I don’t want to underplay that significance. A lot of people rely on our service…this will impact them, but at this point in time, we can still provide coverage, the bus will be there. We are not cutting bus services…we hope we don’t have to go there.”
He says the cuts will also affect Translink’s employees, including recovery time for bus drivers and getting rid of spare buses, which may mean delays during break-downs.
Paddon says there are a number of factors that are affecting their bottom line of $472 million in total revenue deficit.
The toll revenue from the Golden Ears Bridge is projected to be off by $38 million.
The total fare revenue is expected to be down by $108 million. Part of it comes from the decision of Translink commissioner to reject a proposed 12.5 per cent fare increase for 2013. Another portion comes from the expanded service not being put in place.
But the biggest hit comes from the loss of fuel tax revenue, which Translink predicts will be in the realm of 144 million dollars.
It says Metro Vancouver’s total fuel consumption fell considerably in recent years due to increasing gas prices and a growing number of people driving across the boarder to fill up.
On top of that, the transit authority is still missing an alternative for the $30 million revenue it was expected to get from the property tax hike, which got vetoed down by Metro Vancouver mayors earlier this year.
Translink Board Chair Nancy Olewiler says they are still in negotiations with the mayors despite their decision, at the time of which she says neither the mayors nor Translink were aware of the real extent of the fuel revenue shortfall.
“There’s new information that has come forward since then, and the mayors have that information now. We will wait and see what they wish to do. The world has evolved…, so we will see what unfolds” says Olewiler.
TransLink will be consulting with stakeholders and the public to discuss the draft plan before it is finalized by November 1 and submitted to the Transportation Commissioner for review.
Read it on Global News: Global BC | Translink releases new three-year transportation plan, stalls expansion projects
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So, they are 1/2 billion in the hole. Shocker!
But they itemize the items:
Paddon says there are a number of factors that are affecting their bottom line of $472 million in total revenue deficit.
1. The toll revenue from the Golden Ears Bridge is projected to be off by $38 million.
2. The total fare revenue is expected to be down by $108 million. Part of it comes from the decision of Translink commissioner to reject a proposed 12.5 per cent fare increase for 2013. Another portion comes from the expanded service not being put in place.
3. But the biggest hit comes from the loss of fuel tax revenue, which Translink predicts will be in the realm of 144 million dollars.
4. $30 million revenue it was expected to get from the property tax hike
I personally don't think the bridges were done right. I know, I know, there is going to be a lot of people from ridge/meadows and Langley saying "but the bridge is soo convenient" yes, that's true, and its true that usage will increase once Port Mann is tolled, but I don't think the demand is there *yet* for that bridge. If you had done the Port Mann first, thus alleviating some of the bottleneck for the shorter term, THEN you could have put in the Goldenears to go forward...but thats just me.
I guess I'm saying that I believe it totally makes sense that they aren't making the expected revenue from the Goldenears. It was predicted by others.
2. Fare revenue is down, and in part blamed on the lack of a 12.5% increase. NO man...its already expensive! It used to be that a car was WAY more than a bus pass...now, not so much. Sure, driving is still expensive, and gas is more, but for those that can, you get your own car, that will take you to exactly where you want to go, without the problems associated with mass transit(ie. douchebags/bums) So a lot of people are going to choose cars over busses.
3. Fuel...you brought on yourself. Why is gas SO much more cheaper in the states? Less tax. The oil itself is a global commodity. YOU go too far, and that drive to the states becomes more worthwhile. So what do you do? Add another 2 cents in tax to compensate, making it more expensive, thus increasing the amount of people that buy elsewhere. It's a vicious circle and it doesn't work. Stop.
4. Another tax hike as the answer to the problems. Wrong. Finally, the mayors got it right on this one.
The problem with Translink is, Translink doesn't know what the problem is. That's obvious. in true fashion, a bloated, organization with too much under their control thinks money is the solution, and lack of money is the problem. Pour more in to fill the hole..stop when its full.
Operating under that philosophy is what is going to have them never meet a budget. They are used to always operating in deficit, which is obvious as transit is never even going to be a break-even operation. So it gets topped up with tax dollars. Fine.
But they've been in a building spree mode, and you can't even let one project generate a little revenue before you are off building something else. You can always find a new project that is going to always make sense and help all these people and be great for a community-but leadership is having a good plan, a responsible plan and for sticking to it. Saying no, holding off a little bit when you need to.
And I can't always blame Translink, because they are a political tool like any other. They get handed a politicians plan for "we want a bridge...here" and have to go with it at that point.
I'd like to see them have a reasonable budget, do what they can to cut costs where possible and move forward on high impact projects for the region, not community specific.
Yes. I'm hating on the Evergreen line. Again.