As predicted! TransLink is in the red.
As predicted, TransLink has some finacial problems and they are not going to be getting better any time soon.
As gas taxes rise, cheaper gas in the USA becomes more attractice to a larger ever larger radius ofAi??audience; as bus fares rise, fewer full revenue passengers will use the transit system; as more cheap fares are offered, such as the U-Pass, buses and metros will be crowded but the transit system will bleed finacially.
Building more and more light-metro on routes that do not have the ridership to sustain them, then pretending that there is sufficient ridership only adds to TransLink’s fiscal mismanagement.
The current situationAi??has been long predicted, yet TransLink’s bureaucrats, abetted by provincial politicians,Ai??keep planning for the same, ever hopeful that the taxpayer will willingly ante more and more money to keep the transit system on the rails.
TransLink, the latter day “Ship of Fools” is sailing into a sea of red ink and only the fat-cat bureaucrats will survive the voyage, fiscally unscathed.
Albert Einstein
TransLink revenue took a hit despite higher ridership, cross-border gas trips
Metro Vancouver’s transit system spent $34 million more than revenue
By Andrea Woo, Vancouver SunApril 5, 2012
METRO VANCOUVER ai??i?? Ridership grew on Metro Vancouverai??i??s public transit system last year, but wavering revenues from TransLinkai??i??s gas tax and lower-than-expected use of the Golden Ears Bridge contributed to the transportation authorityai??i??s deficit, according to its annual report.
In all, TransLink took in $1.2 billion in revenue in 2011 ai??i?? but spent $34 million more than that, requiring it to dip into dwindling reserve funds.
Revenue generated from the gas tax in 2011 ai??i?? a total of $312 million ai??i?? was $12.5 million less than anticipated and $11.4 million less than the amount brought in in 2010.
TransLink attributes the shortfall to a 5.9-per-cent decrease in fuel sales volume last year, brought on by high gas prices. Drivers also likely fuelled up in neighbouring regions, such as the Fraser Valley Regional District and Whatcom County, according to the report.
ai???If the trend continues, the impact of this reduction could be in the magnitude of a $450- to $550-million revenue loss in a 10-year period,ai??? the report stated.
Spokesman Derek Zabel acknowledged the problem is cyclical: ai???At the same time, increase in fuel prices result in increased operational costs. More people turn to transit, putting more pressure on the system. We still have to fuel the buses.ai???
The gas tax, which is applied to gasoline and diesel fuel sales in Metro Vancouver, rose two cents to 17 cents per litre on April 1.
Meanwhile, ridership grew 8.6 per cent in 2011, with a total of about 233 million paid tripsAi??Ai?? during the year. That figure is 18.5 million more than the target goal for the year, according to the report.
Prepaid fares, including FareSavers, monthly passes and day passes, generated $31.3 million above budget and were $10.7 million higher than 2010.
ai???The majority of the positive variance is attributed to higher ridership and higher than expected Fare card sales, which is partly attributed to the delay of post-secondary schools transitioning to U-Pass BC,ai??? the report stated.
Meanwhile, the Golden Ears Bridge continued to generate less revenue than anticipated.
The bridge brought in about $34 million, falling $4 million short of TransLinkai??i??s target. There were 9.8 million crossings over the bridge, while the target was 10.5 million.
ai???Although [the bridge] experienced growth in traffic volumes over 2010, it was not to the level assumed in the budget,ai??? the report stated. ai???Another contributing factor to the lower revenues were the toll discounts provided in April and May for off-peak and weekend travel.ai???
The TransLink Golden Ears Bridge Task Force is working on a number of initiatives to increase revenue and ai???enhance customer convenience,ai??? according to the report. They include a public awareness and education program, market research and real-time web monitoring of traffic conditions on the bridge.
While the transportation authority continues to run a deficit, Zabel said it reduced operating costs by $56 million, shrinking the projected shortfall by $25 million.
ai???As demand grows, expenditures are outpacing that revenue,ai??? he said.
ai???At the current rate, our reserve is scheduled to run out in 2016, so each year that we beat budget, it reduces that cost, meaning the less we have to draw on those reserves.ai???
awoo@vancouversun.com
twitter.com/AndreaWoo
Ai?? Copyright (c) The Vancouver Sun
Oh sail on oh ship of fools, I rather take the car instead.