Public Transit Financing in the Montréal Metropolitan Area. Public Transit Financing in the Montréal Metropolitan Area

Transcription

1 Public Transit Financing in the Montréal Metropolitan Area By Mich i chel Beaulé Senior Polic licy Analyst l t Québec Deparrttment of Trranspor porta tation tion June 15, 2007 Public Transit Financing in the Montréal Metropolitan Area Presentation outline 1. Public transit organization 2. Public transit financing sources 3. Transit funds yield, performance Conclusion 2 1

2 Montréal within Canada Population Area (000 km 2 ) Canada largest metropolitan areas Province of Québec % % % Montréal Metropolitan area City of Montréal Public Transit Governance Public Transit Authorities Territory Authority Nature Montreal Longueuil Laval Suburban rings STM Société de transport de Montréal RTL Réseau de transport de Longueuil STL Société de transport de Laval CIT Conseils intermunicipaux de transport Corporation Corporation Corporation Municipal entity AMT Agence métropolitaine Metropolitan area de transport Government agency 4 2

3 1. Public Transit Governance Montréal s Metropolitan Context 14 transit authorities Laval Montréal Longueuil 5 1. Public Transit Governance Public Transit Authorities STM, STL, RTL STM CIT AMT Mode Bus Subway Bus Bus Trains All modes Responsibilities Plan and operate services, own equipment Plans and operates, owns equipment Plan services, contract out operations, evaluate results Provides common infrastructure terminals, reserved lanes, incentive parking lots Plans services, owns equipment (not rightsof-way), contracts out operations Coordinates integrated fares, transfer points Financial support to subway + bus services 6 3

4 1. Public Transit Governance Transit Authorities Basic Characteristics Authority Population Ridership Equipment STM RTL buses STL buses CIT buses 1575 buses / 4 subway lines, 68 stations, 759 cars AMT train lines, 50 stations, 193 pass-cars, 20 locos. 58 parking lots, spaces 26 reserved lanes, 83 km 7 2. Financing sources Directly-generated erated revenues / Passenger-revenues Maximizing passenger-revenues without jeopardizing ridership Yearly fare increases in line with CPI Type of fares Monthly pass = 60% of passenger-revenues & 70% of trips Reduced fares s (± 40% % rebate) for r seniors and students s under 18 Flat fares STM, RTL, STL Zone fares Commuter trains, suburban buses Integrated monthly pass gives access cess to all transit systems. s. Revenues s distributed according to number of passengers s and d passenger-kilometres 8 4

5 2. Financing sources Québec Transit Base Program Capital expenses Corporations and AMT 50% Bus purchase expenditure 75% Bus terminals s and garages, reserved lanes, incentive parking lots,, fixed d guideway rehabilitation and replacementent 100% Expansion projects of subway, trains, LRT Operating expenses CIT Subsidy originally based on passenger-revenues to provide incentive Subsidy not exceeding 75% % of deficit Subsidies have been frozen at 1996 levelsls 9 2. Financing sources Québec Transit Improvement Program Goal 8% ridership increase (16% service improvement) t) Period: Amount: 100 M $CAD / year Subsidy allocation 50% of additional operating expenditures s to improve services 50% must be financed locally with increased passenger- er revenues and municipal contributionstions Additional programs 15 M $CAD / year Alternative transportation walking, cycling, cling, employerployer sponsored Energy efficiency cy in transportation tion hybrid vehicles 10 5

6 2. Financing sources Government of Canada Infrastructure e Programs Infrastructure e Canada Program Created in 2000 totalizing g 2 B $ $CAD Rehabilitation of STM subway system, communications, power distribution, tion, etc M $ $CAD Canada Strategic Infrastructure Fund Created in totalizing g 4 B $CAN Large-scale projects Québec s share has s been en devoted to highways Financing sources Government of Canada Infrastructure e Programs Gas Tax Fund Created in Proceeds s transferred d to local governments 1.5 to 5 / litre of gasoline sales (max. 2 B $ $CAD / year) Funds allocated between n provinces according to their population 25% of funds s are committed to public transit Transit Capital Expenses Trust 900 M $CAD trust t established in to be spent later Funds allocated between n provinces according to their population 12 6

7 2. Financing sources Canada-Québec Transit Financing Program Period: Capital expenses s projects Allocation based on ridershiprship // Metropolitan olitan area = 86% Canada Québec Local 411 M $CAD 69% (Gas Tax Fund) 93 M $CAD 15,5% ( Gas-guzzler tax ) 93 M $CAD 15,5% Period: (negotiations underway) Allocation based on ridershiprship Canada (Gas Tax Fund), Québec,, and local contributions to be determined Financing sources Motorists Motorists are indirect beneficiaries of public transit Introduced d in partial compensation for r terminating subsidies for r operating expenses enses to corporations in and 1996 Car licensing fee 30 $CAD / year in 6 largest urban n areas Gasoline tax 1.5 / litre in Montréal metropolitan area 14 7

8 2. Financing sources Municipalities Municipalities s set service levels, fares, and bear the ultimate financial responsibility for transit Property tax is municipalities main revenue source Montreal area municipal l contributions through property tax are among the highest in North America Municipal l fiscal burden varies according to service level and transit revenue-generating potentialtial Financing sources Municipalities 250 Municipal Share of Transit Financing Fiscal Burden in $ per capita, 1991 to $ per capita STM RTL STL Northern Ring Southern Ring

9 2. Financing sources All sources medium term evolution 000 $CAD Public Transit Financing in the Montréal Metropolitan Area, Govt. of Canada Municipalities Québec Government Motorists Directly -generated Financing sources Public Transit Financing Contributions in the Montréal Metropolitan Area 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 33% Municipalities 7% Motorists 16% Quebec Government 41% Directly Generated Revenues Total 2% Govt of Canada 18 9

10 2. Financing sources Capital Expenses Challenge, Transit t Capital Expenses Needs in the Montréal Area As seen by (M $CAD) Operators (2006) City of Montréal (2007) Total Québec Dept. of Transport (2005) Gap Transit Funds Yield Services supplied and consumed Revenue Kilometers and Ridership in the Montréal Metropolitan Area, Kilometres (in Millions) All Modes 475 Ridership (in Millions) Ridership Bus Services

11 3. Transit Funds Yield Performance Indicators Total Kilometers / Bus Operated in Maximum Service STL RTL STM Transit Funds Yield Performance Indicators Operating Expenses ($ 1993) / Bus Revenue Hour 125 $ 120 $ 115 $ 110 $ 105 $ 100 $ 95 $ 90 $ 85 $ 80 $ STM RTL STL 22 11

12 3. Transit Funds Yield Performance Indicators Passengers (trips) / Bus Revenue Hour STM RTL STL Transit Funds Yield Performance Indicators 65% Operating Revenues (directly generated)/ Operating Expenses 60% 55% 50% 45% 40% 35% STM - Total STM - Buses RTL STL 30% 25%

13 Conclusion 1. Growing resources devoted by senior governments to rehab aging infrastructure and provide e new equipment, ent, still remain below operators needs 2. Revenues collecteded from road users s are more often intended as dedicated sources to: - finance roads s and transit (making g the transfer r more tenable) - include indirect beneficiaries of transit in its financingncing - implement transportation demand management, eventually 25 Conclusion 3. Government of Canada finances local infrastructure 4. Provincial and local governments use e companion strategies to make transit t play a greater role - transit improvements - curtailing new road supply - smart t growth 26 13

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15 29 4. Urban Transit Financing ng in Toronto Government Funding in Ontario Province of Ontario o Funding Province s share of motor r fuel tax earnings: 2 /liter Allocated according to ridership (70%)) and population (30% 0%) ) for local operations Transit t Vehicle Program, allocated according to ridership Share of major r capitalal expenses (1/3 of costs) Commuter trains : operating deficit t and state - of-good maintenance (100%), expansion projects (1/3 of costs) Government nt of Canada Funding Gas Tax Fund d and Public Transit t Capital Trust ± M $ $CAD for r Canada Strategictegic Infrastructure Fund Subway upgrading, commuter r trains improvement and expansion, bus rapid-transit infrastructure in Toronto s suburban n areas s (2005- ( ) : M $ $CAD 30 15

16 4. Urban Transit Financing ng in Toronto Ontario Government Strategies Regional planning New legislation n implemented for the Greater Toronto Area to : manage urban growth and d urban form more efficiently, ently, guide decisions in transportation and infrastructure e planning, outline landand use planning, housing, natural l heritage and resource preservation Goal: Supportport economic development while safeguarding the environment and enhancing ncing quality -of-life- Greater Toronto onto Transportation Authority Mandate: : Coordinate ordinate fares and service delivery offered by 9 transit authorities, implement t fare integration and overall transit planning, oversee transit-vehicle purchases, manage commuter trains and regional buses, define the investment strategy and assets planning Board: municipalities s and the Province Urban Transit Financing ng in Vancouver Greater Vancouver Regional District Second-tier local government created in 1967 Mandate: deliver r essential utility services, plan and manage expansion and development Council of 35 members ers (local mayors and councillors) Metropolitan area : 21 cities / km 2 Total population: / City of Vancouver: : Mandate : Regional planning, transportation planning, water treatment and distribution, drainage and sewer treatment, tment, garbage disposal sites s and strategies, low - income housing, economic development, regional parks 32 16

17 5. Urban Transit Financing ng in Vancouver Greater Vancouver Transportation Authority (GVTA) Created ed in Board of 15 members mbers : 12 appointed by GVRD Council l from among its members + 3 by Govt.. of British Columbia (currently none appointed) GVRD approves GVTA strategic plan and tax increases GVTA mandate e : Public transit, arterial rial roads, motor vehicle inspection to enforce e air quality standards GVTA responsible for policy - making and d financing Operations are managed d b by subsidiaries providing transportation services, vehicle inspection, supervisinging major capital expense projects Urban Transit Financing ng in Vancouver Government Funding in British Columbia British Columbia Funding Vancouver r metropolitan area Provincial motor fuel tax earnings transferred to GVTA Contributiontion to major capital expense projects Other urban areas: 46% of expenses Government nt of Canada Funding Gas Tax Fund d and Public Transit t Capital Trust Totalizing g ± 380 M $ $CAD for r Canada Strategictegic Infrastructure Fund 450 M $ $CAD towards new LRT T line (Skytrain) connecting Business district to the e airport t ( ) 34 17

18 4. Urban Transit Financing ng in Vancouver GVTA 2006 Budget Revenues M$ % Expenses M$ % Parking sales tax 11,5 1,4 Management 35,2 4,2 Parking site tax 20,0 2,4 Arterial roads 35,6 4,2 Hydro levy 16,8 2,0 Reserve fund 66,5 7,9 Property tax Fuel tax (13,5 /l) 235,3 257,5 27,8 30,5 Debt costs 139,2 16,5 Transit fares 302,8 35,9 Public transit 569,3 67,3 Total 844,0 100 Total 845,