TransLink faces $300M shortfall by 2012
The directors of Metro Vancouver's regional transit board are tight-lipped about how they plan to fill a huge funding shortfall in the years ahead.
Figures released on Tuesday at Translink's annual general meeting show that by 2012, the transportation authority's budget will be short $300 million per year.
Despite reaping millions of dollars in surplus revenue in 2007, the figures show TransLink will use up much of its $400-million reserve over the next four years.
TransLink revenue 2007:
- $327 million from transit fares.
- $267 million from fuel tax.
- $247 million from property tax.
- $37 million from parking taxes.
- $18 million from hydro levy.
- Total revenues: $896 million.
TransLink expenses 2007:
- $593 million for transit.
- $126 million for debt payments.
- $36 million for roads and bridge service.
- $18 million for transit police.
- $36 million for administration and other services.
- Total expenses: $808 million.
By 2012, the Metro Vancouver's regional transit authority will need $150 million annually just to fund existing services, and another $150 million for planned expansions.
Chair Dale Parker is quiet about where the board expects the money will come from.
"There are options that we are presently discussing, but we are not at the stage yet where we can take those out for consultation," said Parker.
The one money-maker Parker could point to is the newly formed real estate division of TransLink, which has the option of buying land around future transit lines.
The creation of major transit stop, such as a SkyTrain station, frequently sends surrounding land values through the roof, making land ownership a potential lucrative sideline for TransLink.
But chief financial officer Ian Jarvis said even that money would only cover a small part of the predicted shortfall.
"What we've included in our base plan is very conservative — it's $300 million over the 10 years," said Jarvis.
Another fare increase is also on the table, said Parker, who added TransLink is aware fare prices could go so high they would be prohibitive.