New TransLink unveiled
A revamped TransLink that is to ultimately extend east to Chilliwack and north to Whistler and Pemberton will be allowed to raise the region’s gas tax by up to three cents per litre.
Transportation minister Kevin Falcon unveiled a new structure Thursday – the product of a nearly year-long governance review – that eliminates the existing TransLink board and replaces it with a “board of professionals” given much control and a “council of mayors” responsible for more strategic decisions.
Also to be killed is the despised parking lot tax TransLink set up a year ago that raises $20 million.
But the plan does provide for more revenue to address the review panel’s finding that the transportation authority will soon face a $200-million annual deficit.
Falcon said the reformed TransLink will be allowed to raise fuel taxes by up to three cents a litre – worth an estimated $20 to $25 million per penny – but only if it also raises the same amount from increased property taxes and a further matching amount from other sources of revenue.
He said the formula will ensure a balanced intake of money, protecting homeowners from a real threat that TransLink property taxes would soon soar another 40 to 50 per cent because of looming deficits.
He said it will mean “very moderated and reasonable” property tax increases in the future, ending the rapid rise of recent years.
Surey Coun. Marvin Hunt, a TransLink director, is giving the announcement a mixed review.
“I think it’s really positive making the area larger,” Hunt said.
“I have a bit of difficulty with the process of accountability in this ... I don’t see how this professional board is going to be more accountable to the citizens.”
He also said the funding formula could continue to represent a challenge.
“What the province is doing is saying ‘we’ll allow you to raise gas tax by three cents if you balance it with these other things (including) property taxes, fare increases’... there’s no new money coming from anywhere else, it’s just us being able to tax our people more,” Hunt said.
The other funding sources would include fare increases, but also could take in profits from high-density development of land near new transit stations.
Denser development is something TransLink will be expected to advance.
Getting into the business of nearby property development has been a cash cow for some other transit agencies in cities such as Portland and Hong Kong.
Falcon said the parking stall tax – which prompted a near tax-revolt by businesses – had to go.
“It’s highly inefficient, very expensive to collect and has created havoc in the small business community,” he said.
More revenue – and more costs and responsibilities – would come if TransLink expands to include other cities like Abbotsford, Chilliwack, Mission and ultimately Squamish and Whistler. The fuel tax in the GVRD, now at 12 cents a litre, would then extend to those areas, along with property tax and fares.
Falcon said the council made up of all mayors in the GVRD will be more accountable than the current board of directors, which can change every year.
They’ll be charged with approving a 10-year strategic plan for the region, and have ultimate authority on taxation, other revenue sources and borrowing.
The professional board will take over most other decision making. They will present “two or three” options for strategic plans for the mayors to decide between.
© Copyright 2007 Surrey North Delta Leader