1. Metrolinx is an agency of the Government of Ontario Presentation to: Greater Vancouver’s Livability Forum TransLink’s 2010 10-Year Transportation and Financial Plan June 1, 2009

2. 2 Presentation Outline We can’t afford the status quo Our solution: The Big Move A bold 25-year, $50 billion plan Plus unfunded legacy costs The $1.0B rev-gen club Revenue and financial tools: Feasibility/risk matrix What people told us: Results First We have a starting foundation The initial “Big 5” projects and beyond Our progress so far… In record time

3. 3 Why we can’t afford the status quo Auto-dependent growth is choking our economy, environment and QOL  The Greater Toronto and Hamilton Area (GTHA) in Southern Ontario: Canada’s largest urban region –- one of the fastest-growing in North America From 6.0 million people today to over 8.6 million in 2031 1.5 million more cars in 2031 Cost of congestion to the regional economy: $6.0 billion per year today, rising to $15.0 billion in 2031 if left unchecked Average time each person spends each weekday commuting will increase from 82 minutes today to 109 minutes in 2031

4. 4 Our solution… An integrated transportation plan to enhance sustainability, prosperity and QOL A high quality of life -- comfort, reliability, choice, attractive, safe A thriving, healthy and protected environment -- smaller carbon footprint, ecosystem approach, conserving land A strong, prosperous and competitive economy -- functional, integrated, efficient, fiscally sustainable, secure

5. 5 The “Big Move” transformation From today’s part-time, radial regional transit system

6. 6 To a bold $50 billion plan in 25 years A fast, frequent regional transit grid

7. 7 Population living within 2 km of rapid transit (%) Total rapid transit system length (km) Average commute time per person per day (minutes) Annual GHG emissions from passenger transportation per person (tonnes) Status Quo Today 42500822.4 Status Quo in 25 Years 475251092.2 811,725771.7

8. 8 Transformational change targets To achieve the Big Move objectives AutoTransitWalk/ Cycle Today75%16%9% 50%30%20%

9. 9 $50B is “only” capital expansion The new transit assets will create over $3.0B per year in un-funded legacy costs

10. 10 GTHA’s $1.0B+ revenue-generation club No single silver-bullet solution, given the size of the investment challenge Road Pricing10+ cents per km charge on provincial and municipal expressway network Hwy 407 ETR benchmark: 19 to 20 cents per km Parking Pricing$1 per weekday per free and paid commercial parking space Gas Tax20+ cents per litre dedicated surcharge Transit Fares50%+ operating cost recovery from farebox Transit Operating Grant50%+ operating subsidy from government Transit Capital Grant50%+ capital subsidy from government Sales Tax1%+ GTHA regional sales tax

11. 11 What it could mean to the typical driver Understanding the everyday pocketbook impact Sample origin/destination points One-way trip At 5 cents per km At 10 cents per km At 15 cents per km At 20 cents per km Downtown Toronto to:  Markham  Oakville  Pickering  Oshawa  Hamilton $1.50 $1.80 $1.95 $3.00 $3.35 $3.00 $3.60 $3.90 $6.00 $6.70 $4.50 $5.40 $5.85 $9.00 $10.05 $6.00 $7.20 $7.80 $12.00 $13.40 Mississauga City Centre to:  Oakville  Hamilton $1.00 $2.50 $2.00 $5.00 $3.00 $7.50 $4.00 $10.00 Downtown Oshawa to:  Pickering  Vaughan  Mississauga $1.05 $3.40 $4.05 $2.10 $6.80 $8.10 $3.15 $10.10 $12.15 $4.20 $13.40 $16.20

12. 12 Tools feasibility/risk matrix Attitudinal, legislative, policy and technical challenges to implementation CriteriaTechnical Feasibility MagnitudeSustainabilityFairnessTransportation Impact Administrative Cost Taxpayers Protection Act Description Practice and technology in-use today Size of potential revenue Revenue growth over time Linkage between payment and benefit Achieves desired modal shift Life-cycle expense for revenue collection Applicability of TPA Road Pricing E.g. 407>$1BRate controlRoad v. transitModal shift<2%No Transit Fares Multiple>$1BRate controlRidershipDisincentive<2%No Government Grant (Tax) Multiple>$1BRate controlPublic interest <2%No Regional Sales Tax Multiple>$1BRate controlEconomicPublic interest<2%Yes Land Value Capture Multiple<$500MCorridor limitsEconomicAttribution<2%No Debt Financing Multiple>$1BLevel controlGenerational >5% interestNo Parking Pricing Few>$1BRate controlRoad v. transitModal shift<2%Yes Gas/Carbon Tax E.g. Prov’s>$1BRate controlRoad v. transitModal shift<2%Yes Employer/Payroll Tax Few>$500MRate controlEconomicDisincentive<2%Yes Vehicle Registration Tax E.g. Toronto<$500MRate controlNon-exclusiveModal shift<2%Yes Utility Levies Few<$500MRate controlNone <2%Yes Auto Insurance Tax Few>$500MRate controlNon-exclusiveModal shift<2%Yes

13. 13 What people told us “Results First” Transportation congestion -- the leading GTHA issue A bold comprehensive plan needed –- not incremental improvements Single-point of regional collaboration and accountability Demonstrated support and coordination by all levels of government Follow the international and national leaders Results First: Move forward with new projects first -- funded by existing commitments Build implementation credibility and track record first -– before seeking new revenue and financial tools

14. 14 We now have starting foundation (1/2) The new, action-focused Metrolinx Act, effective May 2009 Merging Metrolinx and GO Transit The combined, integrated strength of: Metrolinx as a visionary planning and policy agency GO, the well-established regional transit provider No elected officials on the Metrolinx Board Business-like, “no-boundaries” regional approach to GTHA transit capital program Faster implementation decision-making Insulated from politically-driven project change orders and cost escalation Metrolinx to fund, own, and operate the designated “regional” transit system A new business model and transformational policy change to deliver major new transit projects Metrolinx-owned transit assets achieve accounting benefit and affordability for Province Metrolinx empowered to enter into commercial agreements Metrolinx will establish construction and O&M performance agreements with: Municipalities and municipal transit providers, the private sector and other implementation partners

15. 15 We now have a starting foundation (2/2) The new, action-focused Metrolinx Act, effective May 2009 Framework to create Metrolinx subsidiary corporations Future basis to establish focused, single-point-of- accountability project delivery and governance Metrolinx rolling five- year capital plan Basis to build a continuous project “pipeline” of regional transit expansion and improvement projects Integrated with the Provincial annual, five-year and 10-year infrastructure plans Strategy to close the long-term investment gap Metrolinx mandated to report the Province by 2013 with recommendations on: Dedicated long-term financing and revenue tools To sustain transit-building beyond the initial “Big 5” To address ongoing legacy costs including O&M 2013 report-back timed to achieve the Metrolinx “Results First” strategy

16. 16 A green light for the Metrolinx “Big 5” $9.6B in project funding announced by the Premier in April-May 2009 Construction Start In- Service Committed Funding ($B) Route Length (km) York Viva BRTFall 200920131.437 Sheppard LRTFall 200920131.0*15 Finch LRT201020131.224 Scarborough RT201020151.410 Eglinton RT201020164.630 TOTAL9.6116 * 33% cost-shared by the federal government

17. 17 Beyond the initial “Big 5” Building a continuous project pipeline Potential Next-Wave Priorities (Alphabetical Order) Estimated Cost ($M) km Durham Highway 2 RT1,00041 GO Transit Rail Improvements Barrie Bowmanville Milton Richmond Hill Stouffville 500 200 - 250 300 480 560 96 20 50 46 51 Halton-Peel-Toronto Dundas RT265 – 73540 Hamilton King-Main RT450 – 70014 Lakeshore Express Rail Electrification1,900 – 2,400115 Peel Hurontario RT800 – 1,20020 Yonge North Subway Extension2,400 – 2,9507 TOTAL8,855 – 11,075 (Unfunded) 500

18. 18 Our progress so far: Inception to implementation in record time… Now a fast-track to a robust “Results First” 7-year build program 200720082009 Metrolinx Quick Wins project development $744 M Quick Wins Investment Package 14 New Projects 2008 to 2012 Metrolinx Regional Transportation Plan and Project Benefits Case Analysis “QuickWins” project bundle developed in collaboration with GTHA municipalities New Metrolinx Act Metrolinx-GO merger $9.6B Five Major Transformational Projects Fall 2009 to 2016 1 st Board meeting 1 st CEO recruited Approved by Province

19. 19 John Howe, General Manager Investment Strategy and Projects 416-874-5912 or 416-453-6818 john.howe@metrolinx.com www.metrolinx.com

20. Metrolinx is an agency of the Government of Ontario Appendix Transit Financial and Performance Snapshot

21. 21 GTHA Transit Landscape Today Metrolinx, the regional transportation authority GO Transit, the major regional cross-boundary transit provider Plus nine municipal transit providers

22. 22 New revenue tools for Toronto Effective 2008 Personal Vehicle Tax ($60 per auto) = $46M per year Municipal Land Transfer Tax (LTT) (0.5% to 2.0%) = $160M per year (Over and above existing Provincial vehicle registration fee and LTT) Combined, the new vehicle tax and municipal LTT will account for only 2% of Toronto’s total annual revenues Toronto is dedicating the new revenues to municipal core services -- but not uniquely to roads and transit

23. 23 Ridership (2007, millions of passenger trips per year) Toronto-TTC accounts for more than 75% of GTHA transit ridership Toronto-TTC GO Transit Rest of GTHA

24. 24 Operating Cost (2007, $M) GTHA transit systems incur $1.8B in annual operating costs Toronto-TTC GO Transit Rest of GTHA

25. 25 Cost Recovery (2007, %) GO and TTC boast the highest transit operating cost-recovery rates in the world Toronto-TTC GO Transit Rest of GTHA 73% 86% 46% 49%

26. 26 Capital Investment (2007, $M) $1.3B in GTHA transit expansion and improvement projects in 2007 Toronto-TTC GO Transit Rest of GTHA

27. 27 Dedicated Federal and Ontario Gas Tax Estimated $M per year allocated to GTHA municipalities Federal 5 cents/L Toronto dedicates its federal gas tax allocation to transit ($163M per year) Other GTHA municipalities allocate federal gas tax funds to a range of municipal and community infrastructure needs Ontario 2 cents/L Municipalities are mandated to dedicate their provincial gas tax allocations to support transit needs

28. 28 A growing federal funding presence Canada has committed $2.9B committed to GTHA transit needs since 2004 Project$ MFederal Funding SourceDate Toronto-York Spadina Subway Extension622.0Building Canada FundMarch 2007 City of Toronto Gas Tax Allocation407.0Federal Gas Tax FundJune 2005 GO Transit Rail Improvement Program385.0Canada Strategic Infrastructure FundMay 2004 Toronto TTC Strategic Capital Investments350.0Canada Strategic Infrastructure FundMarch 2004 Toronto TTC Sheppard East LRT333.0Building Canada FundMay 2009 GO Transit Parking Improvements250.0Building Canada FundFebruary 2009 GTHA Public Transit Fund Share117.0Public Transit FundJune 2005 Brampton AcceleRide BRT95.0Canada Strategic Infrastructure FundMarch 2007 York Viva BRT Phase 2, Part 185.0Canada Strategic Infrastructure FundMarch 2007 Mississauga Transitway BRT83.0Canada Strategic Infrastructure FundMarch 2007 Toronto TTC Transit System Improvements76.0Infrastructure Canada ProgramApril 2002 York Viva BRT Phase 150.0Canada Strategic Infrastructure FundMay 2004 Hamilton Low Emission Bus Purchase6.0Federal Gas Tax FundFebruary 2007 Hamilton Hybrid Bus Purchase6.0Federal Gas Tax FundApril 2007 Durham Long-Term Transit Strategy2.5OtherMarch 2007 TOTAL2,867.5