1. 1 TDM Revenue Tools and Investments John Howe, Vice-President Investment Strategy and Project Evaluation November 5 th, 2012 ACT Canada 2012 Sustainable Mobility Summit Hamilton, ON

2. 2 2 Today… …In 25 years

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4. 4 81% of respondents said that if the price of a home was not an issue, they would prefer to live in a smaller home in a ‘location-efficient’ neighbourhood where they can walk or take rapid transit and achieve shorter commute times over a larger house or yard. RBC/Pembina poll, 2012 There is a strong link between walkable areas in Hamilton and creative businesses. Hamilton Chamber of Commerce/ Centre for Community Study, 2012

5. 5 Average Home Price (June 2012) HamiltonTorontoThe ‘905’GTA Average $335,476$554,007$481,512$508,622

6. 6 New York Metropolitan Region Median Sale Price (July-September 2012) PhiladelphiaNew York City $152,000$1,140,000

7. 7 Philadelphia- New York CityHamilton-Toronto Distance153 km67 km Weekday train departures Amtrak: 47 NJ Transit: 27 GO Transit: 4 Fastest travel timeAmtrak: 1 hour, 12 minutes NJ Transit: 2 hours, 5 minutes GO Transit: 1 hours, 11 minutes

8. 8 Connecting and “shrinking” the region  Currently distance and congestion are constraining municipalities rom integrating with major regional job markets  Improved transportation is crucial to knitting together the larger economic region, including Hamilton as the GTHA southern and western gateway  Better access to highly livable and more affordable areas will ensure the region’s future attractiveness to residents and businesses Philadelphia: New York’s 6 th Borough? “Migration from New York City to Philadelphia more than doubled…from 1993 to 2008, thereby supporting the notion that Philadelphia has become a haven for some New Yorkers priced out of the city.” Pew Charitable Trusts, Philadelphia Research Initiative, 2010

9. 9 9 The Big Move is underway $ 16 billion of committed funding and projects under construction The most ambitious transit expansion program in Canada’s history Results in 2015 and beyond

10. 10 Finding new, innovative ways to raise dedicated and sustainable revenues “On or before June 1, 2013, the Corporation shall provide the Minister and the heads of the councils of the municipalities in the regional transportation area with a copy of the Corporation’s investment strategy, including proposals for revenue generating tools that may be used by the province or the municipalities to support the implementation of the transportation plan for the regional transportation area.” Metrolinx Act, 2009

11. 11 Major TDM tools used in other jurisdictions  Auto Insurance Tax  Car Rental Fee  Carbon Tax  Cordon Charge  Corporate Income Tax  Development Charges  Driver’s License Tax  Employer Payroll Tax  Fare Increases  Fare Restructuring  Fuel Tax  Highway Tolls  HOT Lanes  Hotel & Accommodation Levy  Land Transfer Tax  Land Value Capture  New Vehicle Sales Tax  Parking Levy  Parking Sales Tax  Personal Income Tax  Property Tax  Sales Tax  Tax Increment Financing  Utility Levy  Vehicle Registration Fee  Vehicle Kilometres Traveled (VKT) Charge

12. 12 Vancouver Portland, OR London Melbourne Singapore

13. 13 London What? Cordon Charge How? Transport for London charges £9-12 for vehicle entry into a central congestion zone, with revenues comprising 8% of Transport for London’s budget. Key facts:  Implemented in 2003, the charge has high overhead costs with approximately half of gross revenues going to operations  Prior to implementation, bus services were significantly increased into the congestion zone, ultimately contributing to a 15% growth in bus ridership  Traffic speeds within the congestion zone improved in the years following the congestion zone’s implementation, with time saves improving 20 to 30%. Vehicles entering the congestion zone had decreased by 16% in 2007 compared to 2002 levels.

14. 14 Singapore What? Electronic Road Pricing How? Singapore implemented electronic road pricing in 1998 consisting of an In-vehicle Unit (IU) affixed to every vehicle’s windshield and overhead gantries. Key Facts  Charge rates vary by location and time of day.  All IUs have an LCD screen that show the charge applied by the gantry. Cash is stored on the IU and deducted by the gantry system via short-range communication systems. All revenues are collected by the Land Transport Authority  Traffic volumes declined 15% and transit ridership increased by 20% following the implementation of electronic road pricing  Singapore has begun pilots of GPS-based IUs

15. 15 Vancouver What? Fuel Tax How? TransLink levies a $0.15/L tax on fuel sales in the Vancouver Metro Area, accounting for 24% of TransLink’s revenues Key Facts:  Long-term sustainability of fuel tax revenue is in question  TransLink requested but was refused a $0.02/L increase to offset declining fuel tax revenues caused by:  Declining vehicle kilometres travelled and growing transit mode share  Market switch to more fuel efficient cars  Changing attitudes towards car ownership  Cheaper fuel across the U.S. border and  Implementation of a BC Carbon Tax

16. 16 Melbourne What? Parking/Congestion Levy How? Melbourne charges an annual tax on “long stay” commercial and private parking spaces in the central business Key Fats:  Within the central area, the charge is CAN$ 910/year per space and revenues were CAN$ 45 million in 2010/11  Between 2005 (the year before the levy was introduced) and 2009, the Melbourne CBD saw a 6% reduction in average weekday traffic volumes despite a 25% decrease in employment between 2004 and 2008  During the year the levy was introduced, 29% of traveler into and out of the CBD who switched to non-car transport cited parking costs as a factor for their decision

17. 17 Portland, OR What? Road User Fee Pilot Program How? In 2006-07 a pilot project was launched by Oregon DOT test the feasibility of a dynamic road user fee charge replacing the gas tax as a transportation funding mechanism Key Facts:  A fee based on the vehicle miles travelled was collected at gas stations using short-range communications technology and an on-board vehicle unit  One volunteer group was charged 1.2 cents/mile travelled instead of Oregon’s $0.24/g gas tax. Another group was charged 10 cents/mile travelled in the Portland Metro area during rush hour, and no gas tax.  The second group recorded a 22% decline in driving during peak periods.  91% of participants signaled they would agree to continue to pay the mileage fee in lieu of a gas tax.

18. 18 Local leadership in TDM  Smart Parking  Dynamic curb pricing (San Francisco) : Where on-street parking prices change based on demand  Mobile parking renewal apps (Vancouver): Allowing for easier parking payment extensions  Resetting parking timer technologies (Santa Monica) - On-street meters that automatically reset payment clock when vehicle leaves  Local meter expansion/Parking permits (London, San Diego): Incentivizing parking meter expansion by returning portion of revenue to district / BIA  Parking congestion charge (Chicago proposal) : A surcharge on all paid parking spaces within a cordoned area.  ‘Cash-in-lieu-of-parking’ (Hamilton): Allowing developers to pay the municipality a set rate in exchange for providing parking Municipalities can take a key role in managing transportation demand and raising new revenues

19. 19 Local inspiration: New York City Before After

20. 20 IS RE-IMAGINED Confidential Internal Draft 20 IS 2.0 Let’s continue the dialogue john.howe@metrolinx.com www.metrolinx.com Thank you