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EXCLUSIVE: Surrey sends 2/3 of transit money to Vancouver

Two years ago, Mayor Watts leaked how much money Surrey contributes to TransLink: $144 million annually. That included $44 million in property taxes and $100 million in gas taxes – fares weren’t accounted for. Around that same time, Delta was openly musing about leaving TransLink and starting a separate transit agency for the South Fraser. However, Vancouverites argued that bus services in the SoF did not recover their costs, and therefore were being subsidized by more productive routes North of the Fraser. Separation, they argued, would be mobility suicide out here.

New data has been uncovered that shows just how wrong they were. While it is true that bus routes here aren’t as productive as some North of the Fraser, the stats reveal that the actual annual operating cost for all 29 bus routes and 8 shuttle routes in Surrey totals just $49 million.

That effectively means that Surrey sends nearly 2/3 of its transit taxes to support services elsewhere in the region. It also means that those naysayers who claimed a separate South Fraser transit agency couldn’t support existing services were flat out wrong. In fact, if we kept the money within our borders, we could make substantial service improvements to existing routes. Or, as another option, we would have $100 million in annual revenue available to build a comprehensive Light Rail network across the City.

Comments

  1. DB

    Interesting, but only part of the picture. What about SkyTrain? Plus, Surrey folk are then also using bus routes north of Fraser, upt SFU Bunaby, for instance. And don’t forget that some of the money sent to TransLink also goes to the major road network. All to say that the math is worth doing, if somewhat more complicated.

  2. Peter

    Where does the $49 come from? I don’t see it in the linked report – could you share a table with the breakdown of your math so we can see what you’ve included.
    For example, have you included all express routes from South Surrey & Scottsdale to Canada Line? What about routes that are partially in Surrey (ie 640 along River Road, and the many routes that connect Surrey & Langley)? What about SkyTrain service – I assume that’s not included.
    And dont’ forget the money TransLink gives back to Surrey for MRN roadway upgrades (ie the painfully slow Fraser Hwy widening).

    Not saying your numbers aren’t right, but it’s hard to know with all the variables at play.

    • Paul Hillsdon

      $49 million is the total of the “Annual Service Cost” for all 300 bus routes and the Community Shuttles that operate in Surrey.

      Skytrain service is not included. However, the Expo Line operates on a cost-recovery basis, meaning there is no subsidy for its operation.

      The Major Road Network projects that included a TransLink contribution totaled $45 million over 10 years, making it $4.5 million per year. That brings the tab up to $54 million of $144 million.

      • SS

        You forgot the Golden Ears Bridge, which is costing TransLink ~40 millions last year alone, even with the toll revenue included.

      • Ben

        Yes, the skytrain system overall recovers its costs from fares, but that’s including the enormously heavy ridership between Metrotown and downtown. If the system overall is just breaking even, then the service on Surrey’s four stops is certainly being subsidized by the heavier ridership in Vancouver.

        • Ben

          …which isn’t to say I don’t think Surrey deserves better transit service. It’s pretty much criminal that two or three light rail lines aren’t being built there right now. I think the provincial government is mostly to blame for that one. Translink’s supposed to be responsible for their own finances, but when they try to levy a tax that they have the power to levy, the province kiboshes it.

          • SS

            TransLink shouldn’t even need to be responsible for most of the the finance they’re doing right now – look at how Toronto got 8.4 billions of rapid transit funding from the province; Calgary built most of their C-Train from provincial transit fund, including the 1.4 billions West LRT. But TransLink have to finance $1 billion for the Golden Ears, $350 millions for the Canada Line plus $750 millions of repayment from the operational fund, $400 millions for the Evergreen, and even $100 millions for the Coast Meridian Overpass… Without all those and focusing on transit operation only, they can actually have $350 millions of surplus year after year – more than enough to double the transit service across the entire region!

  3. Erik V

    It is worth noting even missing skytrain and road work we shouldnt be spending that much on them. Especially with how little of the skytrain line is actually here.

    lets also not forget we haven’t even added fares spent here in surrey. Which I’m willing to bet will really push it way up since its a fair amount of people needing 1 zone or 3 zone. Mean while in Vancouver I’m willing to bet majority of people getting tickets there only get 1 zone with a couple 2 zones and very very few 3 zones.
    So take the fact every 3 zones worth two 1 zones it really helps surrey even with less riders then in Vancouver.

    I for 1 don’t doubt that north of fraser doesnt pay its fair share. Both Vancouver and Burnaby have 2 skytrains lins and crap loads of buses (Vancouver could be called 3 but I wont count it.)

    • Erik V

      For the record i will say I am separation from translink for SoF.

      If you take Delta, Surrey(white rock too), the Langleys, and Abbotsford I think we could hold are own. we have the population and employment.

      Also I want to note when Watts was asked about leaving metro Vancouver I recall her saying “not the time”. She never did say no though so some thought is on it maybe.
      Which make me wonder if maybe this is also why shes also been pushing so for light rail over skytrain expansion so if/when we leave metro Vancouver we arent attached to them with the skytrain.

  4. JM

    Leave translink now. Create South of Fraser regional plans and encourage people to live closer to work and work closer to home. The fewer bridges travelled everyday the better.

  5. Jesse Hausner

    I agree the numbers are probably not quite as drastic but Paul did mention fares weren’t included and someone very correctly pointed out for Skytrain every person in Surrey pays at least a 2 zone no matter where they go, so we more than make up for the fare usage.

    I’d argue though that people in Burnaby also probably pay 2 zones a large chunk of the time when traveling SkyTrain. It really is only Vancouverites that get away with paying 1 zones most places they travel. :-P

    I’m all for breaking out into SoF and leaving translink. It is more complicated than just saying “That’s it we’re out” but in the long wrong it would be better for tax payers here. There comes a time where there needs to be less talk and more do.

  6. geoff's two cents

    Since Translink is responsible for both roads and transit, however, wouldn’t Vancouver be subsidizing Surrey’s roads at least as much as Surrey subsidizes Vancouver’s transit?

    I’m in favor of much better transit for the SoF as well, but can’t help but see the mayor’s anti-Translink rhetoric as politicking pure and simple. Meanwhile, if I’m right, the city of Surrey continues to rubber-stamp a Vancouver/Translink-subsidized, car-dependent, sprawling mess of SOV-focused infrastructure – the new power centre adjacent to Cloverdale town centre, f0r example, or the Tynehead proposal adjacent to highway 1.

    Tranlink builds Surrey’s road network, don’t they? Correct me if I’m wrong.

    • Paul Hillsdon

      The City builds most of the roads itself. TransLink provides a portion of funding for the Major Road Network. It amounts to $4.5 million per year.

    • Erik V

      Vancouver has roads to that get maintained by Translink. Its not just Surrey that has translink maintaining roads. Its every city.

  7. tomd

    Lot to be said, now, for more compact communities. No retrospective scolding, but lack of proper planning and belief that Surrey would always be dominated by the automobile…….
    They have a point, though. A short while ago, I had the chance to take a TransLink bus from 200th street in Langley to Surrey Central Sky Train station. The whole trip lasted about one-half hour and was eye-opening for me. The bus was one of the older diesel models. It was jammed-full most of the way and had to pass several stops with passengers waiting (terrible to see that sad look in their eyes as they were wet and had possibly another 20 min. wait). I’d estimate that it passed 30-40 people.
    An hour later I was in Vancouver (driving). At the corner of Hastings and Nanaimo I saw the Burrard Station/SFU 135 passing by. It was an articulated model and I saw 3 people on it.

    • Adrian Q

      I’ve noticed this too!! There is a disproportionate amount of older diesel buses in Surrey than other cities. Just look at Surrey Central station and see how many there are compared to the newer ones. I wonder who made that decision because it’s obviously discriminatory.. and if Surrey really does have this big of a surplus why hasn’t anybody done something about it??

      • Paul Hillsdon

        The data on the distribution of funding hasn’t been public until now. We knew 2 years ago what Surrey was putting in, but didn’t know what Surrey was getting. Most thought it would be a deficit of funding/services, not the huge surplus it appears to be.

        • Erik V

          So are your numbers for what surrey puts in 2 years old?

          • Paul Hillsdon

            Yes. That data is not public. We only know the $144 number because the Mayor leaked it. As tax revenues increase with time, I suspect the funding contribution is now higher

        • Adrian Q

          I confess that my initial assumption would have been a deficit so thanks for clearing that up.

    • Craig J

      Interesting discussion, my thoughts:

      -point on the older diesel vehicles in use SoF.
      This may be a specific choice for topography. SoF is flatter than the Burrard Peninsula and the North Shore so they may be using older vehicles for the practicatlity of extending their useful life. If this is true then you would probably see similar choices in Richmond (anyone have anecdotal evidence for this I’ve never ridden a bus in Richmond before)

      -To further on my previous thoughts, if there is a signifigant difference in maintanence costs between the North Shore and SoF that would mean there would be a topography subsidy. I’m not sure how to approach the politics of this though.

      -re: Point on 135
      The 135 is a tricky creature its hard to make judgements abouts its ridership from viewing it at one stop. I take a lot and I’ve noticed that it pulses heavily some times. Ya it sometimes can get quite empty at some mid route stop but then it will suddenly fill up at the very next stop. I’ve taken the route at all sorts of hours and can say with a high degree of certainty that it does not have a ridership problem. With the way Burnaby Heights (to a lesser extent, East Village aka Hastings-Sunrise) seems to really going full gear into density the Hastings Corridor may start exibiting some of the problems of the commercial corridor in a few years.

  8. SS

    If you add all the cost up for all routes in the region, you’ll notice that the total cost is about 400 millions, far less than the actual expenditure of 600 millions for buses. Which means there are other costs that are not included in the total. If you use the average cost per passenger figure with the average fare per boarding of $1.216, you’ll find that Vancouver are almost revenue-neutral while other regions only require little subsidy, which also doesn’t seems to be right. Just for fun, if you scale the entire cost by 1.5 to match the “actual” cost of service, and then minus the revenue from boarding, you get 87 millions of subsidy for Vancouver and 46 millions for Surrey (49 millions if you count half of the 502). This gives ratio of 1.77. If you divide the populations, you get a ratio of 1.51. It actually gives very little difference in the subsidy received for transit alone.

    As for where does rest of the $144 million go? We probably have to look into other regions for it.

    • SS

      Also note that the $600 millions for bus is less than half of the TransLink 2011 expenditure of $1.21 billions. So Surrey may have been putting in more (not to Vancouver but most likely to places such as South Delta, Langley, Maple Ridge, North Shore, etc), but the actually difference may be much less than you think.

  9. Hey Paul! Jhenifer from TransLink here. I just wanted to add some context to the PDF you’ve linked to. It was actually uploaded as part of our ongoing transit service optimization work. You can find that whole project here: http://www.translink.ca/networkmanagement

    The PDF (and others like it) are meant to highlight the performance of each route and all of their particular attributes like ridership and cost, so interested parties can consider and compare them alongside our own work. There’s also an overview primer explaining how we try to build a good transit network with limited resources, and the tradeoffs and considerations that are part of that work. Land use and integration of transit are key elements.

    Hopefully that gives a bit more insight for you and others as to where the info comes from!

  10. This is a worthwhile discussion, but we can see from the above thread that the operating cost of buses is not the only TransLink cost that might be attributable to Surrey. Other costs include corporate overhead at TransLink, Coast Mountain Bus, and Skytrain; financing costs for Skytrain; financing costs related to the Golden Ears Bridge; and costs related to TransLink’s major road network. In addition, one should consider the average ridership levels in the different communities; looking at services like the 99 B-Line, which is packed through most of the day, I would bet that Vancouver bus services are more self-sustaining than those in Surrey (and Surrey’s probably do better than those in Maple Ridge, where I live.)

    It might be useful for the City of Surrey or a citizens’ group to commission an independent analysis to pull these cost and benefit components together. And if the objective is separation, it’s true that a new Regional District and transportation authority centred on Surrey might muster a very respectable population (a million or more, if you included the North Fraser) and tax base. Surrey might launch its ambitious rapid transit plan within a new Regional District; but you would then have to guard against complaints that south Delta and Langley and White Rock were not getting their share.

  11. I think that it is unwise to put so much emphasis on that single comment of Dianne. Chances are, $144 million, 0r $308 per person per year, is a mistaken number.

    Anyhow, interesting that the #312 is the 8th most productive bus in the Metro, ranking before the #8. 80% of the buses in surrey have a <$2.50 per boarded passenger cost. The average Cost/passenger in the region is $1.56

    It's interesting that the numbers don't fall into place as they should; Almost all of Vancouver's buses at least break even in terms of Cost Recovery, yet SOF residents are subsidizing COVancouverites?

    The truth is that the city of Surrey is not a city designed for Transit; the % of transit users to hours of transit will not linearly rise.

    Yet, with the above facts known, it is amazing to find that Surrey pays for 3X the transportation money it gets according to Dianne.

    More reliable, more and better information is needed.

    • Ken

      Cities shouldn’t have to be designed for transit, it should be transit which helps design (or redesign in this case) cities. An easy example of this is Vancouver which was built around the street car and benefits from that design today.

      The reason Surrey isn’t designed for transit is because there has not been and still isn’t transit to design for.

    • Currently, Surrey is experiencing the growth that Vancouver got in the 1940-1960s. Decisions that will be made now will affect Surrey for the rest of its time. The road network (mainly residential streets) are drawn in cul-de-sac car centric ways, designed for you to drive on major atrial routes.

      It’s true that some areas of surrey like newton, and whalley may still have the chance for TOD remedial, but for already laid out places like Guilford, the neighbourhood may never be able to centre around transit.

      Also note that transit=walking, and with the surrey sized blocks at guilford/fleetwood, a transit oriented community will not happen with out a major tearing of the road network.

      In no way am I saying that Surrey doesn’t deserve transit, I’m just saying that judging by the clear reliable facts, it is unwise to say that surrey deserves 3X as much transit as it pays for.

      In the meantime, what happened to the 399… Already 5 years behind schedule and thousands over-budget, wouldn’t it make sense to push the implementation until after 2020… -cough- liberals -cough- mayors -sigh-.

      • Jesse L Hausner

        If we don’t “deserve” 3 x the transit we’re paying for, then maybe we at least deserve a new bridge somewhere that isn’t tolled to death? Maybe something like the Patullo bridge?

        Oh wait…

  12. David Godin

    Thanks for starting this conversation, Paul.

    While on summer break from planning school in Toronto I am living in Surrey, and after a lifetime of taking transit in Vancouver and Burnaby it is a real eye-opener to be a transit user South of the Fraser. My two biggest points of contention are frequency and hours of operation.

    First: frequency. Along my section of 152, at approximately 64th, buses are on a 30-minute headway schedule. This is too infrequent to be able to undertake a trip without prior planning. I’ve used Translink’s trip planner more in the last month than I have in years of living in Vancouver. I am used to 5-15 minute frequencies, which allow one to simply walk out their door, reach a stop and have a 2.5-7.5 minute wait, on average. Now if I miss a bus I am late for work.

    Second: hours of operation. To be able to travel south on 152 I must leave downtown Vancouver no later than 9pm (and much closer to 8:30pm). The complete lack of options for southbound travel after 10pm is so far beyond my expectations for transit service that I simply did not believe it was possible. After a great deal of time trying every permutation of origin and destination in trip planner and consulting maps and printed schedules I reluctantly concluded that it is true.

    Now, I do have some inconvenient observations to add. Even at rush hour the bus routes I use never comes close to matching the claustrophobia and unpleasant crush-loads of bus transit in the City of Vancouver. While my trip is long, due to the extreme 40 km distance I have to travel, the onboard experience of taking bus transit south of the Fraser is much more pleasant than it is in Vancouver. I have had a seat on each trip to date, and with the exception of the portion of the return evening trip that crawls along Fraser Highway along the part that is still only a one-lane-per-direction throwback to Surrey’s rural past, the trip is quick and traffic is light. Long stop spacing and the scarcity of intersections in Surrey results in a travelling experience that is mostly made up of actual driving instead of the jerky stop-start/pull in-pull out passenger experience on Vancouver’s trolley buses. Moreover, in my experience the buses are excellent at staying on schedule and the drivers seem more relaxed. None of these excuse the trade-offs of poor frequency and an early curtailment of service at night, but once one is on the bus we have a nicer experience by comparison to those in the City of Vancouver.

    I have also observed little ‘churn’ on the buses I use and by this I mean people boarding and then disembarking at a destination en route, thereby freeing up space on the bus for new passengers and cycling the bus capacity multiple times in the course of a single transect of the city. This low rate of churn results in lower operating revenue for Translink than a route that loads and empties and reloads many times over the course of a bus’ route. Quite simply, there are so few trip generators along my 152 street bus route in Surrey that it appears nearly all of my fellow morning passengers are simply connecting to SkyTrain.

    If this is the case, then the fare which I pay does not simply stay in Surrey, but rather it buys me access to the system. I then use service and occupy vehicle space throughout my journey in multiple zones and multiple cities. My fare is paid in Surrey and appears on the 300-series bus statistics, and it then also gains me access to SkyTrain for the entire length of the Expo Line, and the Canada Line for part of its length, and local buses in Vancouver. All in, it is close to 2 hours of travel time at the peak of system demand.

    For $5 that’s a heck of a bargain! I am definitely consuming more than twice as much transit service in my 40 km of travel into town as someone paying $2.50 in Vancouver for a zone 1 trip that is likely only a couple of kilometres in length. Moreover, I am appearing as a ‘boarding’ on each leg of the trip, which has a commensurate boarding cost (annual operating cost divided by boardings). Until we have the sophistication of the Compass smart cards the Translink stats are going to continue to distort, or at least not illuminate, true travel patterns and fare allocations of transit users.

    Regarding overall transportation funding, I have to respectfully disagree with the rhetorical argument that the South of Fraser is being neglected so far as transportation dollars are concerned. Yes, South of Fraser public transit is unacceptably infrequent and its hours of operation are inadequate. However, public transit is only part of the transportation picture. Billions and billions are being spent by municipalities, Translink, the Province and the Federal Government on roads, highways, bridges, and railway overpasses South of the Fraser to meet demand and desire for additional road infrastructure. A great deal of this capital project money has come from Translink, the Province and Federal governments, just as it does for rapid transit projects. However, with the exception of tolls on the new bridges and the relatively small Translink and gas tax portions of the price of gasoline, there is no direct user-pay component to road and highway infrastructure, certainly not at an amount that is commensurate with the externalities like congestion, pollution, and public health issues, that go in lock step with wear and tear and financing costs of that type of infrastructure.

    Here are the major road, highway, bridge, and overpass projects I can think of that primarily benefit those living and working South of the Fraser.

    -$3.3 billion (estimated) for the new Port Mann Bridge and Highway One capacity increase. The $2.5 billion budget for the new Port Mann Bridge is comparable to the combined budgets of the Evergreen Line and the public sector component of the Canada Line. (http://www.pmh1project.com/info-centre/faq/Pages/Project-Cost-Timing.aspx)

    -$658 million for the South Fraser Perimeter Road, which includes $363 million from the Federal Government and $200 million in private sector funding from the P3 partner, which must be repaid. (http://www2.news.gov.bc.ca/news_releases_2009-2013/2010TRAN0051-000943.htm)

    -$1 billion for the Golden Ears Bridge. Due to lower than forecast usage and revenue the rate of interest accrual is greater than principal and interest payments to the concessionaire, resulting in a deferred liability for the project that now amounts to $1 billion, up from the $888 million project budget when the bridge opened in 2009. $46 million in payments were made in 2011 but this still represents a shortfall of $19 million. For sake of comparison, the Canada Line receives approximately $23 million in subsidy from Translink annually in the form of the difference between fare revenue and the cost of the concessionaire payments to In Transit BC. It is also worth highlighting that Translink is annually spending nearly as much paying off the Golden Ears Bridge ($46M) as Paul Hillsdon found it is spending on its bus routes in Surrey ($49M) Lastly, it’s concerning to see that the annual combined principal and interest payments on the Golden Ears Bridge climbs to $70 million by 2016, which would require nearly four times the tolling revenue that is currently received in order to make the bridge cost-neutral (source pages 73 to 75, respectively, http://www.translink.ca/~/media/documents/about_translink/corporate_overview/annual_reports/2011.ashx

    -$307 million for the Roberts Bank Rail Corridor (overpass) program. This is absolutely necessary infrastructure, but it still represents a large funding commitment from the many project funders (Feds, Province, four South of Fraser municipalities, Translink, Port Metro Vancouver, and four railways) Previous generations of City of Vancouver citizens built viaducts and bridges to traverse railways in our city and we have been benefitting ever since, just as citizens of Surrey, the City and Township of Langley, and Delta will benefit once this project is complete. (http://www.robertsbankrailcorridor.ca/home)

    -Translink spent $97.1 million in 2011 on Major Road Network roads and bridges and cost-sharing with municipalities for their own respective projects. Paul, you quoted $4.5 million for the Major Roads Network but clearly that only represents a small portion of Translink’s annual road and bridge expenditures. A further $96.8 million of value depreciation was written down on the Translink balance sheet in 2011 due to wear-and-tear/age of the road and bridge infrastructure it owns and helps maintain. (page 33 http://www.translink.ca/~/media/documents/about_translink/corporate_overview/annual_reports/2011.ashx)

    Back of the envelope, that adds up to $5.26 billion in project costs which arguably primarily benefit those South of the Fraser, and that does not include Translink’s annual road and bridge expenditures.

    So, should Translink deliver a significantly increased amount of transit service south of the Fraser? Absolutely! Buses should be more frequent and run for more hours of the day and night.

    Should rapid transit be planned and built? Absolutely! We need to know where rapid transit will go so that land use and policy decisions can be made now and in the immediate future, even if the project is a decade or more away.

    Is Translink failing to spend money south of the Fraser at a rate that is commensurate to what it collects in taxes, gas taxes, fares, and tolls? I am unsure. Add up its local bus service delivery, the amount of service –including SkyTrain and local buses- that South of Fraser residents utilize on transit north of the Fraser, investments in the Golden Ears Bridge, SkyTrain capacity upgrades and network expansion, a commitment to replace the Pattullo Bridge, contributions to the Major Road Network and municipally beneficial projects like the Roberts Bank Corridor overpasses, and I imagine that Mayor Watts’ $144 million a year contribution from Surrey and the undisclosed amounts from the other South of Fraser municipalities may prove to be closer than she and others think. Does it skew into the South subsidizing the north or vice versa? I don’t know. But I don’t think that you have proven that 2/3rds of Surrey’s transit money goes to service in the City of Vancouver.

    • Jesse L Hausner

      It’s spending less in Surrey simply because everything it builds in Surrey comes with a catch. The busses we get when new are hand-me-downs from Burnaby/Vancouver. New bridges come with a toll. New park and rides come with increased costs. Hell the current park and rides are going to have a cost increase to people. I wonder how that will affect people taking transit instead of driving?

      Everything comes with a hitch. That’s the issue. You need a new transit line in Vancouver to the airport. DONE. Hell they even kicked businesses off of Cambie to do it stat! Need new busses in Burnaby? DONE! Need new trolley busses in Vancouver? DONE! Need a new bridge in Surrey? 8 years of studies… hopefully they will forget by then.

      • SS

        Now you’re just cherry picking items… The trolley buses were 26 years old when they got replaced. When was the last time you saw bus in Surrey that’s more than 20 years old? The highway coaches serving South Surrey/White Rock/Delta were all brand new too – they even come with air conditioning – the only bus in the entire fleet that have them! Vancouver/Burnaby haven’t got their Broadway line, as well as the 91 and 95 B-Lines, even though they were ‘promised’ back in 1998-2002. As for the park and ride.. it surprised me when I found out they’re actually free. Most park-and-ride elsewhere in the region cost $2-$4 a day. And you’re also ignoring the fact that TransLink increased bus service in Surrey by 30% between Sept 2007 and June 2012. At the same time, service in Vancouver increased by a mere 0.2% even though the ridership is now much higher in both regions…

  13. Tessa

    Paul, there’s one area I feel this article is misleading in: I don’t think that money goes to the City of Vancouver, but rather other parts of the region. How do you know the money from Surrey doesn’t go towards Langley and Delta as much as Vancouver? Or Richmond, Coquitlam and West Vancouver for that matter.

    • Paul Hillsdon

      The underlying message is that the money leaves Surrey to other areas of “Metro” Vancouver.