On Todd Stone’s letter to the Mayors (part 1)

Less than 24 hours after I wrote this piece on the ongoing fiasco that is the Transportation Referendum*, the Minister of Transportation threw a great big wrench into the already significantly muddled works. Unfortunately, instead of providing helpful guidance during a time of confusion, he brought down a little monetary blackmail, told the Mayors to do his work and make a choice, then took away most of the choices the Mayors may have had.

This was not a good day for the Mayors, the Minister, or the region.

It was a 4-page letter, so I cannot address it all here, and much of it was a repeat of talking points with which the Mayors should already be very depressingly familiar (“ensure traffic congestion is reduced to improve everyone’s commute”… ugh). That said, there was enough new stuff offered that is worth discussing in detail.

The letter starts with the idea of delaying the referendum:

“Some members of the Mayor’s Council have stated…that not enough time remains before November to adequately deliver a referendum…”

This is an interesting piece of rhetoric. That “some of the members” have suggested this is to downplay the entire Mayors Council spoke nearly unanimously on this topic, and their opinion was supported by TransLink management, the business community, organized labour, the media from left and right, and every transportation and regional planning expert asked. The only people who thought this was a good idea were the Premier, Jordan Bateman, and Lois Jackson: A dangerous combination on the best of days.

It also seems to absolve the Minister of any responsibility for having done absolutely nothing to make the Referendum a possibility in November 2014. This referendum was announced by his Boss in a fit of pre-election scrambling, and the election that made the vapid promise “policy” occurred a full human gestation ago. What has the Ministry done in this time to set the parameters for the referendum? Where is the question? Where are the policy ideas? Where is the public discourse on the topic of transportation options? After squandering those 9 months doing nothing, the Minister is now tasking the Mayors’ Council with drawing up a Referendum that they don’t want within 4 months, off the sides of their desks while they already have full-time jobs running their damn cities.

To reinforce that this terrible idea scribbled on a bar napkin by his Boss a year ago is now their problem, he follows up with a little fiscal blackmail:

“If a vision is not ready by June 30, 2014, the next date the provincial government is willing to consider a referendum is in conjunction with the subsequent local government election. This later date would require the Mayor’s Council to use existing funding sources if it wishes to expand transit in the interim period. If the referendum is held… prior to June 30, 2015, the provincial government will compensate local governments for any related administration costs.”

Translated: If they don’t do within the next 4 months what he hasn’t accomplished in the last 9 months, they won’t see a lick of new money until 2017 or 2018, and they will have to not only run the referendum they don’t want, they will have to pay for running it!

“I believe the Mayors’ Council… is best placed to develop and articulate a clear regional transportation vision, ensuring it balances the region’s priorities. Is affordable and supports the movement of people and goods”

Really? Slowly, now: Then. Why. Have. A. Referendum?

So the Minister decides to pass all of the difficult policy development, forecasting, cost estimating, and priority setting to the Mayors. Once he has them lined up, the Minister decides to throw a curveball, followed by the knuckler:

“First, if new funding sources are identified and proposed, they must be generated within the region, and not subsidized by taxpayers in the rest of the province…”

So the rest of the province will not pay anything to support the movement of people or good in the Lower Mainland. Because we all know people in the rest of the province don’t use roads or transit in Vancouver, and no goods moving through this region support businesses or people in the rest of the province? Bullocks.

As an aside, see this graph that shows how BC Transit is funded. This is the agency that provides public transportation everywhere outside of the TransLink catchment, including transit servicing Todd Stone’s new office in Victoria and his home in Kamloops (not that he would ever use these, of course).

So the Lower Mainland is able to pay into general revenue that funds half of the BC Transit System, but none of the rest of the Province is expected to pay one red penny to support TransLink. Can we at least vote on that?

“[second], the provincial government will not permit new funding to be collected from the provincial transportation system situated in the region”

So that, in one short sentence, does it for any creative new ideas that have proven to work elsewhere and serve Transportation Demand Management purposes as well as revenue generation. No tolling of all the major crossings, for a dollar or ten, and absolutely no regional road pricing.

Note both of these decisions were made without the benefit of a Referendum and without consulting those local leaders he so trusted to create a clear vision.

To the Minister’s benefit, there is some potential good news in this letter around a return of some TransLink governance powers to the Mayors. It is too early to tell what the Minister really means by the changes he mentions obliquely – does this mean the Mayor’s rubber stamp will now just precede the non-elected Board’s approval instead of following it, or that they will actually have new  or restored power? Until some draft legislation is sketched up and the Mayors can get a grip on it, no-one can say except Todd Stone.

However, looking at the list of responsibilities the Minister is giving the Mayors (“approval of fare adjustments… oversight of customer satisfaction…sale of major assets…establishing remuneration of TransLink’s Executive”) it seems that the Mayors are being passed a satchel full of political hand grenades without knowing if any still have pins in them.

The question now is how do the Mayors react to this significant shuffling of the deck? I will talk about that in my next post….

*This entire mess is not helped by the uncertain language being used around this referendum on transportation funding for the region. The colloquial in the media has been to call it either a “Transit Referendum” or a “TransLink Referendum”. In fact, the Minister himself used the latter term in his Editorial last week, although all of his subsequent discussion was about “reducing congestion for commuters”. I have been chewing on this, and have decided “Transportation Referendum”” is the fairest term. It is being foisted upon TransLink and the region by the Minister of Transportation, and the decision we are making here is not merely the future of TransLink, it is the future of the region’s transportation infrastructure.

Time to move past the Referendum

I haven’t written too much about the proposed TransLink Referendum. Yeah, I mentioned last year what a terrible idea it was, but it has come to the point where that is the consensus opinion outside of the Premier’s Office, so it seemed unnecessary a point to belabor.

Then, last week, the Minister of Transportation circulated an “Editorial” (raising the question of just what he is the editor of) outlining the need for a referendum. It seems a strange thing to do right now, as he has been saying essentially the same thing since he got the job (even if he and his boss have consistently disagreed about the form of the referendum she promised back when he was still in the private sector), and it seems meaningless to spend time convincing us that we need something that he is already committed to delivering, whether we like it or not.

What might have been more useful at this point in the discussion would be for the Minister to affirm that a successful referendum that sets a stable funding mechanism in place to build and operate a sustainable transportation system for the entire region is of utmost importance, and his #1 job this term, and he won’t let us down. That would be inspirational about now.

Instead he demonstrates what a few people have suggested: the Minister from Kamloops simply does not understand the transportation needs of the Lower Mainland.

Allow me to quote The Minister in full, with a few marginal notes:

The issue of transportation in Metro Vancouver is very topical, and that’s a good thing. Making sure that traffic congestion is reduced to improve your daily commute is important to our economy and maintaining this region’s great quality of life.

You have got to be kidding me. The Minister thinks “making sure traffic congestion is reduced” is the #1 transportation issue in the Lower Mainland? This, after they just spent $5 Billion building and expanding freeways and the widest bridge in the world, and have already decided the next $2 Billion will not be up for referendum, but will be blown on yet another oversized bridge? He still thinks the priority is yet more roads and bridges?

This opening paragraph, more than any below, demonstrates that Todd Stone has no idea what the hell is happening on Broadway, in Central Surrey, on the packed Canada Line, the increasingly unreliable Expo Line, on all those neighborhoods that are seeing their bus service cut, or on the traffic-clogged streets of New Westminster.

But to improve transportation in Metro Vancouver, big decisions lie ahead. Decisions that the people who live, pay taxes, and commute in the region need to be a part of.

I’m not one to get all grammar marm on his Honourable, but this paragraph starts with a conjunction, ends with a preposition, and contains two incomplete sentences (pretty much the perfect NWimby paragraph, come to think of it). Regardless, I wish the Minister had asked the people of the region to be part of the decision to replace the tunnel, or the decision to allow tankers to ply our northern coastal waters, or the decision to cut BC Ferry services, or…

Today, transportation improvements are supported through taxes and fees like property tax, gas tax, transit fares, and tolls for new crossings. And while there are many taxes, there is only one taxpayer—and that’s you.

Ugh. Note that the Minister is talking about transportation improvements (but not the ones he has already promised, like the tunnel) and not about maintaining the transit service we currently have. While he bickers and dithers about how to pay for any imagined transportation improvements, bus routes are being cut, major pieces of infrastructure are failing, and our communities are becoming less livable because there isn’t even enough money to maintain the overcrowded transit system that we have.

To support expanded transit and road networks for the region, many local government leaders have advocated for additional sources of funding to be created, on top of those taxes and fees you already pay.

Ok, see what he is doing here? The Minister does not want to raise your taxes! He wants to make things better for you, but he doesn’t expect you to pay for it. He wants it to be free. It’s those evil spendthrift local governments though: they are the ones who want you to pay for it!

Please, Mr. Minister, if we agree that improving transportation infrastructure is “important to our economy and maintaining this region’s great quality of life” as you suggest in paragraph 1, how will we fund the necessary “expanded transit and road networks” without increasing what people already pay? 

Further, if we agree it is important, can you assure us there won’t be a “none of the above” option on the referendum? Can you chat with your boss about that?

The provincial government does not disagree with this idea. But our position is clear. If the people of Metro Vancouver are being asked to pay new taxes or fees, on top of those that local governments and TransLink already collect, then taxpayers must have a say.

See, he did it again? No, not the starting a sentence with a conjunction (which he did do), but see how he pointed out the evil ones – it is local governments and TransLink that collect taxes and fees. It is almost as if the Province doesn’t collect any taxes or fees at all. How, exactly did we pay for those $5 Billion in freeways?

This is why the provincial government is committed to a public, region-wide referendum. It’s a commitment we made in the last election and that citizens supported. We will deliver on that promise.

Yeah, your referendum promise also said November 2014, and it looks like you might bend on that. It is clear that no-one outside of your caucus room supports the idea. One promise people did support was the money for hospital expansions in Dawson Creek, Penticton, Burnaby, and New Westminster. Your government has already admitted those were just empty promises made for votes, and you pretty much got away with it…

But let’s not get ahead of ourselves. Asking people to vote on a new transportation vision comes after governments and citizens work together to clearly determine and articulate what that vision actually is.

Please do. Because the only thing worse than this referendum idea is the stunning lack of leadership and vision from the Minister and the Premier on making this thing actually work.

If you’re following the news, you’ll have heard about passionate and important transportation projects that individual local governments are behind. The job ahead is to bring this into a common vision.

I’m not even sure what a passionate transportation project is, except maybe this? but you are starting to creep me out here, Todd. p.s.: The mayors are united in a common vision, just not the way you want them to be.

And, I would argue, success depends on a vision that is affordable for taxpayers, fair for all communities, and secures the movement of people and goods for generations to come.

(Again with the conjunctions). The worst part about this all, is that we have that vision. The region had a long term plan for a Livable Region supported by Transport 2040. It is the plan that TransLink has to keep cutting back on because of lack of funding, in part because they are stuck giving $30 Million a year to the operators of the Golden Ears Bridge because of a bad deal signed by the Minister of Transportation for a bridge that TransLink didn’t want, because of the $170 Million (so far) white elephant that are the FalconGates, and because of other short-sighted moves by the Provincial Government that would not allow that plan to be realized.

I will continue to work with the mayors to facilitate and help enable a process to bring focus to the regional transportation vision, so that the people can decide what’s best.

See, the Mayors are not interested, you screwed them enough times. You managed to do what no other Minister of the Provincial Government has done, and you have got all of the Mayors to be unanimous on a Transportation idea – the idea of killing the referendum.

If you and the Mayors did, miraculously, come up with the ultimate vision, the grand plan that will solve all, then why the hell delay and go to referendum? What happens if that great plan fails at referendum? What is the back-up plan, here. Sir?

If we work together for the benefit of the whole region, mindful of taxpayers big and small from Whalley to Whytecliff, Maple Ridge to Arbutus Drive, we will all succeed.

Arbutus Drive!? Is Whistler in the referendum zone now?

Look, Minister Stone, with all due respect and my sincere hopes that you succeed at setting a new, bold, plan in place for transportation in the region, I feel for you. I know you are new to the role, and your boss has given you an untenable task. Being a Minister means you are responsible for this file, it is time to step up and make the case. This letter didn’t do it. Read the writing on the Wall: everyone from Barbara Yaffe to Gordon Price to Vaughn Palmer is saying it is a bad idea. The Board of Trade and the major trade unions are agreed (!) that it is a bad idea. Every Mayor (except the one who just wants to destroy TransLink and replace it with a tunnel) and the management of TransLink are against it. The referendum is now only a distraction from the real conversation: how are we going to move the region forward?

Time to stop editorializing, Mr. Minister, and time to start leading.

What is a Mil worth?

There were some recent letters in the Record, lamenting New Westminster’s out-of-scale property taxes. Some feel we have the highest property taxes in the region, one fellow last year even opined the second highest in Canada!

As I previously posted, there are many ways to measure taxes, and Mil Rates only tell part of the story. It gets even more complicated when you add utilities to the mix. Municipalities have different ways of paying for your water, sewer, and trash collection, and this impacts what your property tax bill looks like in June.

As part of my continued interest in calling a spade a shovel, I did a little on-line digging around, and here are the 2012 Mil Rates for the 15 Lower Mainland municipalities that publish this stuff on-line (or at least those who publish it in an easy enough way that I didn’t spend my weekend digging through Bylaw pages).

Richmond can claim the lowest Mil Rate at 1.15, with West Vancouver second at 1.81 and Vancouver a close third at 2.02. New Westminster is third highest at 3.54, with only Pitt Meadows (3.60) and Maple Ridge (3.71) higher.

However, many cities list their fire, police, storm sewerage, or other services and “levies” separately from their Mil Rate. These are not utilities (which are defined in the Local Government Act), but part of the regular City service. Also, there are senior government taxes applied to property taxes: School taxes (set by the Province), along with GVRD, TransLink, BC Assessment Office, Municipal Finance Authority. Add these all up, and you get a truer Mil Rate comparison:

You can click to make larger- tax free!

Now we see West Vancouver pull into its rightful place as the lowest Mil Rate Municipality, with Richmond and Vancouver neck-to-neck for second. New Westminster moves up to 12th, now that PoCo’s “levy” load is added on. The Gap to Places like Port Moody and Langley also tighten somewhat. Still, 12th of 15, with a Mill Rate 70% higher than the lowest in the region, is nothing to brag about, right?

Remember, that these Mil Rates are applied against the assessed value of your house. Since houses in New Westminster cost less than in Vancouver, and more than in Pitt Meadows, the amount of tax you pay doesn’t index all that well to Mil rates.You can use the BC Assessment Office data to figure out the “average” house price in each Municipality, but that does not really tell you what the “typical” house price. Medians and means are both overly influenced by outliers, and when looking at house prices from Maple Ridge to West Vancouver, there are a lot of outliers.

Luckily, the good people at the Greater Vancouver and Fraser Valley Real Estate Boards have a better database of high, low, median, and ( this is most important) typical house value. And they break it up by detached, townhouse/rowhouse, and apartment. You can look at their methodology and explanation of why “typical” is better than median or mean here.

Here is the list of the values of the typical house, townhouse and apartment for the 15 municipalities:

Not surprisingly, New Westminster is in the middle-lower part of the list as far as property values go; generally higher than places south and east, lower than places west. Blame the prevailing winds.

The fun part is combining this table with the Mil Rates Table. I know Mil Rates are based on Assessed Value, not the selling prices that are used in the Real Estate Board stats, but can we agree that the assessment process is equally unrepresentative across the region, and that for the purposes of comparison, the data pile is fair, if not the individual data? Again, the result is accurate, if not very precise.

So here are tables of “typical” Property Tax Bills for the 15 municipalities, based on domicile type, not including seniors discounts, Grants, or the three big utilities (water, sewer, and trash – those will be another post, there is already too much math going on here).

New Westminster is, as might be expected, somewhere in the middle of the pack for most housing types. Not the highest-tax municipality in the region, not the lowest. Somewhere between the 5th and 7th highest, out of 15 municipalities.

This doesn’t comment on the comment that everyone across the region is paying too much tax, but it kind of takes the wind out of the specific examples many cite when saying City X pays way more than City Y. So next time someone suggests their “taxes doubled” since moving from Vancouver to New West, congratulate them on their new home, since they would have had to upgrade from a way-below typical $600,000 house in Vancouver to a somewhat-above-typical $850,000 place in New West (or proportionally similar increase). Which seems like a nice upgrade to me.