April 23, 2015

Posts

Transportation and LRT Access

In public policy, just like in business, it’s important at times to think differently, unconventionally, or from a new perspective in order to come up with novel or creative solutions to stubborn problems. This is truer when it comes to transit policy where the benefits can span across entire local, regional, and national economies. These benefits are widespread and include employment opportunities, less strain on city infrastructure in and around the downtown core, improved transit accessibility and convenience, reduced congestion and travel times, more efficient movement of goods, reduced carbon emissions, and increased property values.  As you can see it is easy to argue the benefits of improved transit.
However, continuously increasing property taxes to fund the City’s share of transit projects, particularly for major capital investments is becoming less and less practical.  This is not unique in that many other jurisdictions in Canada are searching for new public transportation options. The following outlines alternative funding options that can be used in combination with each other and at different stages of SETWAY.  A number of these optionswill require support from all three levels of government.

CRL – Community Revitalization Levy

The City borrows money to pay for the construction of SETWAY or a segment of it.  Once built, the project attracts and increases local activity, investment and development.  Property values rise creating additional tax revenue for the City and Provincial government.  The City uses the growth in taxes to pay back the borrowed funds.  Only the tax growth within a specified boundary is dedicated, leaving taxes from other areas of the City unaffected.  The CRL is limited to a fixed term of 20 years in length.  Once complete, the taxes dedicated to the CRL return to civic and provincial general revenues.  This leaves the City and Province in a better position.

BOOT (Build Own Operate Transfer)

BOOT is a financial arrangement wherein a private company designs and builds a transit project or facility at little or no cost to the City, and owns and operates the facility as a business for a specified amount of time with the prime goal of recovering the costs of investment and maintenance. Once the contract has reached maturity, the private company transfers the asset to the City. Some advantages of BOOT projects include the transfer of technology and know-how, completing projects within a tight budget and short time frame, and it releases the burden on the public budget for building infrastructure.  The Federal Government has expressed interest in using this as a funding method for SETWAY.

GreenTRIP Funding

GreenTrip provides capital funding to a wide range of sustainable public transit projects in Alberta in an attempt to help increase ridership and reduce traffic congestion.  RouteAhead and Investing in Mobility have recommended that the City dedicate $115 million in GreenTrip funding to SETWAY.

Recreational Facilities

I  was instrumental in getting City Council to approve a new financing strategy that ensures the development of four new recreation centres in Calgary.  Three of these centres will be built in the southeast; this includes two in Ward 12.  It’s the beginning of a service that southeast residents have been asking for–and has been sadly neglected.  The facilities area desinged to meet the needs of residents and it is very exciting to being these service to life.