Metrolinx is an agency of the Government of Ontario

Presentation to:

Greater Vancouver’s Livability Forum TransLink’s 2010 10-Year Transportation

and Financial PlanJune 1, 2009

2

Presentation OutlineWe can’t afford the status quoOur solution: The Big MoveA bold 25-year, $50 billion planPlus unfunded legacy costsThe $1.0B rev-gen clubRevenue and financial tools: Feasibility/risk matrixWhat people told us: Results FirstWe have a starting foundationThe initial “Big 5” projects and beyondOur progress so far… In record time

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Why we can’t afford the status quoAuto-dependent growth is choking our economy, environment and QOL

The Greater Toronto and Hamilton Area (GTHA) in Southern Ontario:

Canada’s largest urban region –- one of the fastest-growing in North America

From 6.0 million people today to over 8.6 million in 2031

1.5 million more cars in 2031

Cost of congestion to the regional economy: $6.0 billion per year today, rising to $15.0 billion in 2031 if left unchecked

Average time each person spends each weekday commuting will increase from 82 minutes today to 109 minutes in 2031

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Our solution…An integrated transportation plan to enhance sustainability, prosperity and QOL

A high quality of life -- comfort, reliability, choice, attractive, safeA thriving, healthy and protected environment -- smaller carbon footprint, ecosystem approach, conserving landA strong, prosperous and competitive economy -- functional, integrated, efficient, fiscally sustainable, secure

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The “Big Move” transformationFrom today’s part-time, radial regional transit system

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To a bold $50 billion plan in 25 yearsA fast, frequent regional transit grid

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To a bold $50 billion plan in 25 yearsA fast, frequent regional transit gridPopulation

living within 2 km of rapid transit (%)

Total rapid transit system length (km)

Average commute time per person per day (minutes)

Annual GHG emissions from passenger transportation per person (tonnes)

Status Quo Today

42 500 82 2.4

Status Quo in 25 Years

47 525 109 2.2

81 1,725 77 1.7

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Transformational change targetsTo achieve the Big Move objectives

Auto Transit

Walk/ Cycle

Today 75% 16% 9%

50%

30%

20%

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$50B is “only” capital expansionThe new transit assets will create over $3.0B per year in un-funded legacy costs

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GTHA’s $1.0B+ revenue-generation clubNo single silver-bullet solution, given the size of the investment challengeRoad Pricing 10+ cents per km charge on

provincial and municipal expressway networkHwy 407 ETR benchmark: 19 to 20 cents per km

Parking Pricing $1 per weekday per free and paid commercial parking space

Gas Tax 20+ cents per litre dedicated surcharge

Transit Fares 50%+ operating cost recovery from farebox

Transit Operating Grant

50%+ operating subsidy from government

Transit Capital Grant 50%+ capital subsidy from government

Sales Tax 1%+ GTHA regional sales tax

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What it could mean to the typical driverUnderstanding the everyday pocketbook impactSample origin/destination points

One-way tripAt 5 cents

per kmAt 10 cents

per kmAt 15 cents

per kmAt 20 cents

per km

Downtown Toronto to: Markham Oakville Pickering Oshawa Hamilton

$1.50$1.80$1.95$3.00$3.35

$3.00$3.60$3.90$6.00$6.70

$4.50$5.40$5.85$9.00

$10.05

$6.00$7.20$7.80

$12.00$13.40

Mississauga City Centre to: Oakville Hamilton

$1.00$2.50

$2.00$5.00

$3.00$7.50

$4.00$10.00

Downtown Oshawa to: Pickering Vaughan Mississauga

$1.05$3.40$4.05

$2.10$6.80$8.10

$3.15$10.10$12.15

$4.20$13.40$16.20

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Tools feasibility/risk matrixAttitudinal, legislative, policy and technical challenges to implementation

Criteria Technical

Feasibility

Magnitude

Sustainability

Fairness Transportation Impact

Administrative Cost

Taxpayers Protectio

n Act

Description Practice and

technology in-use

today

Size of potential revenue

Revenue growth over

time

Linkage between payment

and benefit

Achieves desired modal

shift

Life-cycle expense for

revenue collection

Applicability of TPA

Road Pricing E.g. 407 >$1B Rate control Road v. transit

Modal shift <2% No

Transit Fares Multiple >$1B Rate control Ridership Disincentive <2% No

Government Grant (Tax)

Multiple >$1B Rate control Public interest

Public interest <2% No

Regional Sales Tax Multiple >$1B Rate control Economic Public interest <2% Yes

Land Value Capture Multiple <$500M Corridor limits Economic Attribution <2% No

Debt Financing Multiple >$1B Level control Generational Generational >5% interest No

Parking Pricing Few >$1B Rate control Road v. transit

Modal shift <2% Yes

Gas/Carbon Tax E.g. Prov’s >$1B Rate control Road v. transit

Modal shift <2% Yes

Employer/Payroll Tax

Few >$500M Rate control Economic Disincentive <2% Yes

Vehicle Registration Tax

E.g. Toronto

<$500M Rate control Non-exclusive

Modal shift <2% Yes

Utility Levies Few <$500M Rate control None None <2% Yes

Auto Insurance Tax Few >$500M Rate control Non-exclusive

Modal shift <2% Yes

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What people told us“Results First”

Transportation congestion -- the leading GTHA issueA bold comprehensive plan needed –- not incremental improvementsSingle-point of regional collaboration and accountabilityDemonstrated support and coordination by all levels of government Follow the international and national leadersResults First:• Move forward with new projects first -- funded by existing

commitments• Build implementation credibility and track record first -–

before seeking new revenue and financial tools

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We now have starting foundation (1/2)The new, action-focused Metrolinx Act, effective May 2009

Merging Metrolinx and GO Transit

The combined, integrated strength of:• Metrolinx as a visionary planning and policy agency• GO, the well-established regional transit provider

No elected officials on the Metrolinx Board

Business-like, “no-boundaries” regional approach to GTHA transit capital programFaster implementation decision-makingInsulated from politically-driven project change orders and cost escalation

Metrolinx to fund, own, and operate the designated “regional” transit system

A new business model and transformational policy change to deliver major new transit projectsMetrolinx-owned transit assets achieve accounting benefit and affordability for Province

Metrolinx empowered to enter into commercial agreements

Metrolinx will establish construction and O&M performance agreements with: Municipalities and municipal transit providers, the private sector and other implementation partners

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We now have a starting foundation (2/2)The new, action-focused Metrolinx Act, effective May 2009

Framework to create Metrolinx subsidiary corporations

Future basis to establish focused, single-point-of-accountability project delivery and governance

Metrolinx rolling five-year capital plan

Basis to build a continuous project “pipeline” of regional transit expansion and improvement projectsIntegrated with the Provincial annual, five-year and 10-year infrastructure plans

Strategy to close the long-term investment gap

Metrolinx mandated to report the Province by 2013 with recommendations on:• Dedicated long-term financing and revenue tools• To sustain transit-building beyond the initial “Big 5”• To address ongoing legacy costs including O&M

2013 report-back timed to achieve the Metrolinx “Results First” strategy

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A green light for the Metrolinx “Big 5”$9.6B in project funding announced by the Premier in April-May 2009 Construction

StartIn-

ServiceCommitted

Funding ($B)

Route Length

(km)

York Viva BRT Fall 2009 2013 1.4 37

Sheppard LRT Fall 2009 2013 1.0* 15

Finch LRT 2010 2013 1.2 24

Scarborough RT 2010 2015 1.4 10

Eglinton RT 2010 2016 4.6 30

TOTAL 9.6 116

* 33% cost-shared by the federal government

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Beyond the initial “Big 5”Building a continuous project pipeline

Potential Next-Wave Priorities (Alphabetical

Order)

Estimated Cost ($M)

km

Durham Highway 2 RT 1,000 41

GO Transit Rail ImprovementsBarrieBowmanvilleMiltonRichmond HillStouffville

500200 - 250

300480560

9620504651

Halton-Peel-Toronto Dundas RT 265 – 735 40

Hamilton King-Main RT 450 – 700 14

Lakeshore Express Rail Electrification

1,900 – 2,400 115

Peel Hurontario RT 800 – 1,200 20

Yonge North Subway Extension 2,400 – 2,950 7

TOTAL 8,855 – 11,075

(Unfunded)

500

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Our progress so far: Inception to implementation in record time… Now a fast-track to a robust “Results First” 7-year build program

2007 2008 2009

Metrolinx Quick Wins

project development

$744 M Quick Wins

Investment Package 14 New Projects

2008 to 2012

Metrolinx Regional Transportation Plan

and Project Benefits Case Analysis

“QuickWins” project bundle

developed in

collaboration with GTHA municipaliti

es New Metrolinx

Act

Metrolinx-GO merger

$9.6B Five Major Transformational

Projects

Fall 2009 to 2016

1st

Board meetin

g1st CEO recruite

d

Approved by

Province

Approved by

Province

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John Howe, General Manager Investment Strategy and Projects

416-874-5912 or 416-453-6818

john.howe@metrolinx.comwww.metrolinx.com

Metrolinx is an agency of the Government of Ontario

Appendix

Transit Financial and Performance Snapshot

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GTHA Transit Landscape Today

Metrolinx, the regional transportation authority

GO Transit, the major regional cross-boundary transit provider

Plus nine municipal transit providers

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New revenue tools for TorontoEffective 2008

Personal Vehicle Tax ($60 per auto) = $46M per yearMunicipal Land Transfer Tax (LTT) (0.5% to 2.0%) = $160M per year(Over and above existing Provincial vehicle registration fee and LTT)Combined, the new vehicle tax and municipal LTT will account for only 2% of Toronto’s total annual revenuesToronto is dedicating the new revenues to municipal core services -- but not uniquely to roads and transit

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Ridership (2007, millions of passenger trips per year)Toronto-TTC accounts for more than 75% of GTHA transit ridership

1st Qtr

2nd Qtr

3rd Qtr

Slice 4

460

92

51

Toronto-TTC

GO Transit

Rest of GTHA

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Operating Cost (2007, $M)GTHA transit systems incur $1.8B in annual operating costs

1093287

383

Toronto-TTC

GO Transit

Rest of GTHA

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Cost Recovery (2007, %)GO and TTC boast the highest transit operating cost-recovery rates in the world

Toronto-TTC

GO Transit

Rest of GTHA

0102030405060708090

100

TTC-Toronto

GOTransit

Rest ofGTHA

GTHAAverage

73%

86%

46%

49%

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Capital Investment (2007, $M)

$1.3B in GTHA transit expansion and improvement projects in 2007

500

151

611

Toronto-TTC

GO Transit

Rest of GTHA

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Dedicated Federal and Ontario Gas TaxEstimated $M per year allocated to GTHA municipalities

364

221

Federal 5 cents/L

Toronto dedicates its federal gas tax allocation to transit ($163M per year)

Other GTHA municipalities allocate federal gas tax funds to a range of municipal and community infrastructure needs

Ontario 2 cents/L

Municipalities are mandated to dedicate their provincial gas tax allocations to support transit needs

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A growing federal funding presenceCanada has committed $2.9B committed to GTHA transit needs since 2004Project $ M Federal Funding Source Date

Toronto-York Spadina Subway Extension 622.0 Building Canada Fund March 2007

City of Toronto Gas Tax Allocation 407.0 Federal Gas Tax Fund June 2005

GO Transit Rail Improvement Program 385.0

Canada Strategic Infrastructure Fund May 2004

Toronto TTC Strategic Capital Investments 350.0

Canada Strategic Infrastructure Fund March 2004

Toronto TTC Sheppard East LRT 333.0 Building Canada Fund May 2009

GO Transit Parking Improvements 250.0 Building Canada FundFebruary

2009

GTHA Public Transit Fund Share 117.0 Public Transit Fund June 2005

Brampton AcceleRide BRT 95.0Canada Strategic Infrastructure Fund March 2007

York Viva BRT Phase 2, Part 1 85.0Canada Strategic Infrastructure Fund March 2007

Mississauga Transitway BRT 83.0Canada Strategic Infrastructure Fund March 2007

Toronto TTC Transit System Improvements 76.0 Infrastructure Canada Program April 2002

York Viva BRT Phase 1 50.0Canada Strategic Infrastructure Fund May 2004

Hamilton Low Emission Bus Purchase 6.0 Federal Gas Tax Fund

February 2007

Hamilton Hybrid Bus Purchase 6.0 Federal Gas Tax Fund April 2007

Durham Long-Term Transit Strategy 2.5 Other March 2007

TOTAL 2,867.5