RECEIVED CLERK'S DEPT.

mat 2 7 2013

Office of the Chair REG.NO.; FILE NO.:

100-2012 May 23, 2013 CITY COUNCIL Bruce McCuaig, PATE- Ju*«. 5,2013 President and CEO 20 Bay Street, Suite 600 , M5J 2W3

Dear Mr. McCuaig, Subject: Metrolinx Investment Strategy Update Iam writing to advise that Peel Regional Council approved the following resolution at its meeting held on May 23, 2013: "That the proposed direction as set out in the report of the Chief Financial Officer and Commissioner of Corporate Services, dated May 8, 2013, titled "Metrolinx Investment Strategy Update" be approved; And further that the Region of Peel supports regional transportation expansion in the Greater Toronto and Hamilton Area (GTHA) given transportation importance to economic growth and the quality of life in Peel; And further that the Government of Ontario in partnership with the Federal Government fund Metrolinx's GTHA Transportation Plan, through dedicated transportation funding; And further that the Region of Peel does not support the use of municipal finance tools such as property tax, development charges and land value capture to fund Metrolinx's GTHA Transportation Plan; And further that the revenues from the determined revenue tools be equitably collected across various groups (e.g. businesses and residents) and across the Province of Ontario; And further, that following the release of Metrolinx's Investment Strategy the Government of Ontario consult extensively with municipalities in the GTHA on how to fund Metrolinx's Transportation Plan; And further, that a copy of the subject report be fowarded to Metrolinx, the Ontario Ministries of Finance, Transportation and Infrastructure and Municipal Affairs and Housing, the Federal Ministries of Finance and Transportation Infrastructure and Communities, Peel area MPPs and MPs and the Cities of Brampton and Mississauga and the Town of Caledon."

The Regional Municipality Of Peel 10 Peel Centre Dr., Brampton, ON L6T 4B9 905-791-7800 Fax 905-791-2567

Website: peelregion.ca L.l-2

Acopy ofthe report is attached for your information.

Yours truly, (&^JLP^JL. Emil Kolb Regional Chair

EK:js End: Copy of Report: "Metrolinx Investment Strategy Update" L\~l

Also sent to: The Honourable , Minister of Transportation, Infrastructure and Communities The Honourable Jim Flaherty, Minister of Finance The Honourable Glen Murray, Minister of Transportation and Infrastructure The Honourable Linda Jeffrey, MPP, Brampton-Springdale, Minister of Municipal Affairs and Housing Charles Sousa, MPP, Mississauga South, Minister of Finance The Honourable Bal Gosal, MP, Bramalea-Gore-Malton Eve Adams, MP, Mississauga-Brampton South Stella Ambler, MP, Mississauga South Brad Butt, MP. Mississauga-Streetsville Bob Dechert, MP, Mississauga-Erindale Parm Gill, MP, Brampton-Springdale Wladyslaw Lizon, MP, Mississauga East-Cooksville , MP, Brampton West David Tilson, MP, Dufferin-Caledon Dipika Damerla, MPP, Mississauga East-Cooksville Bob Delaney, MPP, Mississauga-Streetsville Vic Dhillon, MPP, Brampton West Sylvia Jones, MPP, Dufferin-Caledon Amrit Mangat, MPP, Mississauga-Brampton South Jagmeet Singh, MPP, Bramalea-Gore-Malton Harinder Takhar, MPP, Mississauga-Erindale Crystal Greer, City Clerk, City of Mississauga; Peter Fay. City Clerk, City of Brampton; Carey deGorter, Clerk, Town of Caledon; U-4

Reaoncf Ped report ^ WMfa^tafMllll?„ fc,f^ Meeting Date:Regional May 23, Council 2013

DATE: May 8, 2013

REPORT TITLE: METROLINX INVESTMENT STRATEGY UPDATE

FROM: Norma Trim, Chief Financial Officer and Commissioner of Corporate Services

RECOMMENDATION That the proposed direction as set out in the report of the Chief Financial Officer and Commissioner of Corporate Services, dated April 24, 2013, titled "Metrolinx Investment Strategy Update" be approved; And further, that the Region of Peel supports regional transportation expansion in the Greater Toronto and Hamilton Area (GTHA) given transportation importance to economic growth and the quality of life in Peel; And further, that the Government of Ontario in partnership with the Federal Government fund Metrolinx's GTHA Transportation Plan, the Big Move through dedicated transportation funding; And further, that the Region of Peel does not support the use of municipal finance tools such as property tax, development charges and land value capture to fund Metrolinx's GTHA Transportation Plan; And further, that the revenues from the determined revenue tools be equitably collected across various groups (e.g. businesses and residents) and across the Province of Ontario; And further, that following the release of Metrolinx's Investment Strategy, the Government of Ontario consult extensively with municipalities in the GTHA on how to fund Metrolinx's Transportation Plan; And further, that the subject report be forwarded to Metrolinx, the Ontario Ministries of Finance, Transportation and Infrastructure and Municipal Affairs and Housing, the Federal Ministries of Finance and Transportation, Infrastructure and Communities, provincial and federal MPPs and MPs in Peel region and the Cities of Brampton and Mississauga and the Town of Caledon.

V-01-002 2013/03 2­ May8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

REPORT HIGHLIGHTS • Metrolinx is mandated to develop and release an investment strategy to fund its Greater Toronto Region transportation plan, the Big Move, by June 1, 2013. » In April, Metrolinx released a short list of revenue tools to fund its plan, including municipal finance tools such as property tax, development charges and land value capture. • Municipal finance tools such as property taxes, development charges and land value capture should not be used to fund the Big Move. These tools are required to fund municipal operations, capital maintenance and growth related infrastructure and local transportation priorities not covered by the Metrolinx Plan. • Government of Ontario in partnership with the Federal Government fund Metrolinx's GTHA Transportation Plan, the Big Move through dedicated transportation funding.

DISCUSSION

1. Background

Focus GTA Survey results routinely show that transportation gridlock is the most important issue for Peel residents. A recent Toronto Dominion Economics report identified gridlock in the Greater Toronto and Hamilton Area (GTHA) as one of the key challenges that needs to be addressed to sustain the economy during a period of slower economic growth. Gridlock costs the GTHA roughly $6 billion in lost productivity annually and could rise to $15 billion by 2031 if nothing is done. It is also detrimental to the environment and to the quality of life.

The Region has identified transportation as one of its top priorities during this term of Council. Specific transportation priorities include:

• Increasing active transportation (TOCP#9); « Completing the arterial road review (TOCP#13); » Updating the Long Term Transportation Plan (TOCP#14); • Improving the efficiency of goods movement in Peel (TOCP#15); and • Increasing capacity through accessible transportation services (TOCP#16). In 2006, the provincial government created Metrolinx, an agency legislatively mandated to develop and implement a regional transportation plan (RTP) to improve the coordination and integration of all modes of transportation in the GTHA and to ease congestion. Metrolinx launched its RTP known as the Big Move in 2008.

a) Investment Strategy Metrolinx is also legislated to develop an Investment Strategy that outlines how the Big Move will be financed and implemented. Metrolinx must provide the Investment Strategy to the Minister of Transportation and Infrastructure and the Mayors and Regional Chairs of GTHA municipalities by June 1, 2013. The Big Move is a 25 year, $50 billion plan that is being implemented in two waves. The first wave of the Big Move ($16 billion) has been funded mostly through provincial government allocations and some federal infrastructure dollars. Several first wave projects are currently underway. The second wave, which requires $34 billion or $2 billion a year over a 17 year period (2016 - 2033), is currently unfunded. Metrolinx has been developing an investment strategy to propose how to fund its second wave. 3­ May8,2013 METROLINX INVESTMENT STRATEGY UPDATE

On February 14, 2013, Regional staff presented a report to Council titled "Status Update on Metrolinx Initiatives in Peel", which provided information on Metrolinx projects in Peel, attached as Appendix I.

On April 2, 2013, Metrolinx released a short list of investment tools to fund the Big Move and encouraged municipalities, stakeholders and the public to provide feedback by May 1, 2013. The list has also formed the basis of public discussions Metrolinx has been holding with key community and business groups through April and May before its release of the final Investment Strategy. The Ontario Chamber of Commerce (OCC) has partnered with local chambers of commerce in the GTHA hosting business roundtable discussions on the investment tools. Mississauga and Brampton Boards of Trade hosted discussions on April 4, 2013 and April 17, 2013 respectively. The OCC is collecting the feedback from the various sessions in the GTHA to develop a position oh the investment strategy. The Mississauga Board plans to formulate its own position, based on its consultation.

The Metrolinx Board of Directors will meet on May 27, 2013 to approve the recommendations in the final Investment Strategy. Metrolinx will then provide the Investment Strategy to the Province by June 1, 2013 for its consideration. In due course, the Province will need to consider, respond to and consult on the recommendations. At present, timelines related to this process remain unclear.

b) Investment Tools Short List

Metrolinx commissioned AECOM KPMG to carry out comprehensive research of best practices in transportation funding tools and an in-depth study of where these tools have been or are being implemented. AECOM KPMG produced a final report in March 2013, titled "Big Move Implementation Economics: Revenue Tool Profiles", containing an assessment profile of 25 revenue tools, covering a range of taxes, fees, tolls and charges that could be implemented at the provincial and municipal levels and levied on individuals and businesses. These 25 tools were narrowed down to a short list of 11 on the basis of the following evaluation criteria:

• Revenue potential • Implementation costs • Impact on travel behaviour and transportation network performance • Technical implementation considerations • Governance considerations • Equity and Distributional impacts • Impact on overall economic efficiency

The short-list of the 11 revenue tools can be viewed in Appendix II (as attached). A summary of the 25 revenue tool scores is found in Appendix III (as attached).

In addition to the evaluation criteria, Metrolinx considered four key funding principles in developing the short list:

• Dedication of revenue to transit and transportation priorities, • Fair distribution of benefits and costs across different groups and between individuals and businesses, o Equity in revenue collection across the GTHA and distribution of investments, and -4­ May8,2013 METROLINX INVESTMENT STRATEGY UPDATE

• Accountability and transparency in the collection and administration of revenue, the allocation of funds and the reporting of results.

Metrolinx has proposed that 25 per cent of the $2 billion raised each year through the various revenue tools be allocated to municipal transportation priorities. This proposal has the potential to help municipalities meet their growing transportation needs.

2. Municipal Finance Tools Options The Region of Peel understands that new revenue tools are needed to fund the Big Move's second wave of projects. However, the Region is concerned with Metrolinx proposing the use of traditional municipal finance tools such as property taxes and development charges (DCs) and potential municipal tools such as land value capture to fund the Big Move. Using these municipal finance tools to fund the second wave of the Metrolinx plan diminishes municipalities' already limited capacity to raise revenue. Unlike the Province, municipalities (except for the City of Toronto) have very few revenue sources available to them (property taxes, DCs. and userfees) tofund its current municipal responsibilities. Also, the use of municipal finance tools means diverting precious and limited revenues from municipalities to the Province. Municipal taxes are needed to fund core municipal operations, capital repair, growth-related infrastructure, and municipal transportation infrastructure not funded by the Metrolinx plan. There are also a number of specific concerns with Metrolinx's proposal to use property tax, DCs and land value capture to fund transportation expansion in the GTHA. These are discussed below.

a) Property Tax As a funding tool, property tax has strong revenue generation potential and is easy to implement, but there are considerable drawbacks. As indicated in the AECOM KPMG Revenue Tools Profile report, there is no strong link between a property tax levy dedicated to transportation and modifying travel behaviour. Adding a charge to the property tax bill is unlikely to lead to less auto use, fewer collisions and less air pollution. The AECOM report also highlights concerns related to the transparency of a property tax levy. In addition a property tax levy could have a negative and disproportionate impact on low income and middle income households who pay a greater share of their income toward property tax than high income earners. The use of property tax to fund the Big Move will place an additional tax burden on Peel residents and businesses. In this current environment of slow economic growth, property taxpayers are increasingly resistant to further property tax increases, so the Region has tried to keep property tax increases to the rate of inflation. Afive per cent increase on the property tax bill would increase the burden on property tax payers. Moreover, public opinion in the GTHA is currently against Metrolinx's proposed revenue tools with strong disapproval for the use of property taxes. AForum Research poll for CivicAction published on April 5, 2013 reported that only 16 per cent of respondents approved of a five per cent increase in property taxes to pay for the Big Move. UV-8

-5­ May8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

b) Development Charges

The Region has concerns about using Development Charges (DCs), as currently set out in law, to fund the Big Move. Metrolinx's proposed 15 per cent increase to DCs on top of the Region's recent increases could hamper economic development and municipal revenues. During public meetings on the renewal of the DC bylaw, developers raised concerns about the Region's increases to the DC levies, suggesting it could lead to a slow down in non-residential development and a loss of revenue to the Region and area municipalities. Participants at the Mississauga Board of Trade consultation on the Metrolinx tools did not support DCs as a revenue option.

A DC charge for Metrolinx will also add to the cost of a new home, making housing less affordable, which is an ongoing concern in Peel.

c) Land Value Capture

Land value capture (LVC) is a relatively new revenue tool in North America, but is used in Europe, Asia and South America. LVC is designed to collect a portion of a single increase in property values resulting from new transit infrastructure. It is thought that residences and businesses near transit benefit from greater accessibility and therefore have higher property values.

LVC also has a number of drawbacks. As with property taxes and DCs, the use of LVC to fund Metrolinx would diminish municipalities' future revenue streams. LVCs revenues would not be generated in the short or medium term as revenues would be collected just before or when the transportation infrastructure is put in place. The AECOM study also indicates that revenues are highly variable as they vary by the development, and has limited revenue generation potential - only $20 million annually. LVC revenue is also unsustainable since there is a limited amount of land for development near transit corridors. This revenue tool would also be costly to administer as the LVC amount would be particular to each property and would have little impact on travel behaviour.

3. Region of Peel Position on Metrolinx Investment Strategy

The Region supports transportation expansion in the GTHA to tackle traffic gridlock, which is detrimental to commerce, the environment and our social wellbeing. Metrolinx's Big Move plan represents an opportunity for all levels of governments to effectively deal with this issue. To make the plan a reality, dedicated transportation funding is needed.

The Provincial and Federal Government need to partner together to dedicate funding for the Big Move as they have more tools and significantly greater revenue generating capacity than municipalities. According to the Federation of Canadian Municipalities, municipalities only collect 8 cents of every tax dollar collected in Canada. The Federal Government should commit a growing share of its recently announced long term infrastructure plan to fund the Big Move. The province, given its current financial pressures, faces significant challenges in funding the Metrolinx plan out of existing revenues. Therefore, new revenue tools or increases to existing taxes dedicated to transportation in the GTHA are likely necessary. Such tools

V-01-002 2013/03 •6­ May8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

would provide a predictable and reliable source of funding for key transportation infrastructure in Peel and the GTHA.

The Region of Peel however does not support the use of property tax, DCs and land value capture to fund the Big Move. The use of municipal finance tools would diminish GTHA municipalities' revenue generating capacity and divert the vital resources they need to finance their operational and capital needs.

Metrolinx's Investment Strategy must ensure that the recommended mix of financing tools collects revenues in an equitable way across the GTHA region and the Province of Ontario. There are legitimate concerns that the mix of revenues sources as currently proposed could result in residents and businesses in the 905 disproportionately funding Metrolinx projects. Metrolinx should also consider recommending revenues that are not administratively burdensome to collect. Public confidence will be diminished if a sizeable portion of the revenues collected for Metrolinx goes towards administrative overhead. Although Metrolinx releases its Investment Strategy on June 1, 2013, it is by no means the end of the debate. Given the impacts that the Big Move Plan and the Investment Strategy will have on municipalities in the GTHA, it is important that the dialogue with the province continue. The province needs to continue, with Metrolinx, to consult with GTHA municipalities following the release of the report to determine the most appropriate way of funding the $34 billion second wave of the Big Move.

CONCLUSION Addressing transportation gridlock is a key priority of Regional Council and vital to economic growth and the quality of life in Peel. The Region supports transportation expansion and coordination in the Greater Toronto and Hamilton Area as set out in the Metrolinx's transportation plan, the Big Move, first released in 2008. Metrolinx is also tasked with preparing an investment strategy indicating how the plan is to be funded. It must be delivered to the Province by June 2013. Ahead of the release of the final strategy, Metrolinx issued a short list of potential revenue tools. The Region of Peel is aware that the Province will have difficulty funding the Big Move through existing revenues and that new revenue tools or increases to existing revenues are likely required. The Region however does not support municipal finance tools such as property tax, development charges and land value capture to fund the plan. These should only be used to finance municipal operations and capital. Also, Metrolinx must recommend a mix of tools that will collect revenue in an equitable fashion between residents and businesses and across the GTHA and Province of Ontario and not be administratively burdensome. There are concerns that GTHA residents and businesses in the 905 area will fund a disproportionate share of Metrolinx's plan through new revenue sources and increases to existing ones. The new or existing revenue sources that would be used to fund Metrolinx's plan must be implemented atthe provincial level. Moreover, the Federal Government must also play a part in funding the Big Move. The Region encourages the province to consult with municipalities and other partners and stakeholders following the release of the Investment Strategy before it adopts a funding strategy.

V01 -002 2013/03 7­ May8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

Norma Trim Chief Financial Officer and Commissioner of Corporate Services

Approved for Submission:

D. Szwarc, Chief Administrative Officer

Forfurther information regarding thisreport, please contact Stephen Vanofwegen at extension 4759 or via email at [email protected]

Authored By: Giancarlo Cristiano, Executive Office c. Legislative Services

V01002 2013/03 May 8,2013- -1- L.I-H METROLINX INVESTMENT STRATEGY UPDATE APPENDIX I :eqson cr reel M #. n+ c report ' J thtUBftafMlaLa:..,. ju .,*,. WleetinBMeeting Date: FebruaryFi 14, 2013 Regional Council

For Information

DATE: January 4, 2013

REPORT TITLE: STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

FROM: Dan Labrecque, Commissionerof PublicWorks

OBJECTIVE To provide Regional Council with a status update on Metrolinx's ongoing initiatives in Peel.

REPORT HIGHLIGHTS o Metrolinx, through The Big Move (TBM), has numerous initiatives underway which should positively supplement Peel's transportation system, o Projects currently underway that impact Peel include: the GO Electrification Study, the draft GO Rail Station Profiles, the Express Rail Strategy, Mobility Hub studies and the Urban Freight Forum. • On November 29, 2012, Metrolinx unveiled the second wave of projects for TBM which will improve regional connectivity and increase capacity on existing lines with an investment of $34 billion, o Projects in the second wave include: the Brampton Queen Street Rapid Transit, GO Rail Service Expansion, the Lakeshore Express Rail Service, the Hurontario-Main Light Rail Transit (LRT), and electrification of the and the Union-Pearson Express (formerly the Air-Rail Link)

DISCUSSION

Background Metrolinx was established in 2006 under the Greater Toronto Transportation Authority Act with a mandate to develop and implement an integrated multimodal transportation.plan for the GreaterToronto and Hamilton Area (GTHA). In November 2008 The Big Move (TBM) was approved by the Metrolinx Board. The Big Move presents 13 goals and 10 strategies to make the GTHA a place with a seamless transportation system to enhance the region'c quality of life. Metrolinx has begun to implement a number of initiatives through the first wave of TBM. Those initiatives have the potential to positively impact Peel Region s transportation system, making it more integrated, user-centred, equitable and efficient. These initiatives include:

o GO Electrification • Lakeshore Express Rail Strategy » Mobility Hubs

V-O1-002 12/05 May 3,2013 -2- ' *~ METROLINX INVESTMENT STRATEGY UPDATE APPENDIX I January 4,2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

o Urban Freight Forum • GO Rail Parking Strategy

The Region of Peel has recognized that effective and efficient transportation solutions are important aspects in supporting economic development, environmental sustainability and a high quality of life. Peel residents have expressed a similar understanding. According to the 2011 Citizen Satisfaction Survey, which surveyed over 6,000 Peel residents, congestion, road maintenance and accessible transportation were identified by the public as priorities for improvement. Regional Council, through its ongoing advocacy efforts, is working to address those concerns. It has identified gridlock and the movement of goods as a top priority for this term of Council. Further, through its endorsed advocacy positions, Council recognizes the vital role that public transit has in reducing gridlock and traffic congestion on roads throughout the Region of Peel (Resolution 2012-1335).

Investing in transit initiatives, including those projects prioritized by Metrolinx, is an important aspect for increasing the connectivity of transit across the GTHA. The Region will continue to support the area municipalities in their efforts to secure the timely and necessary transit funding from the provincial government.

This report provides a status update on the above listed initiatives and explores their role in Peel Region. It also looks at The Big Move Progress Report and Update, the Metrolinx Investment Strategy and introduces the future projects to begin in the second wave of The Big Move.

1. The Big Move Progress Report and Update

Since the adoption of TBM in 2008, many changes have occurred; GO Transit, and PRESTO have become operating divisions of Metrolinx, new studies have been undertaken and completed and funding and construction has begun on several projects. To track those changes, work began in 2012 on updating TBM and writing The Big Move Progress Report.

The Big Move Progress Report

The Progress Report, which is currently in its draft stage, examines advancements made towards implementing TBM and achieving its goal of developing an integrated, multi-modal transportation network for the GTHA. The report will also review where future work should be focused, using a set of Key Performance Indicators (KPIs).

Findings highlighted in the draft report include: o Since 2003 there has been a slight increase in transit usage in the GTHA, a positive change from typically automobile-centred movements, o The proportionof workplaces located within 2km of rapid transit increased by 11%. o Between 2002 and 2010 the average speed on highways connecting major urban centre's declined. On Highway 404 and 400, the decline was 9% and 26% respectively, o Since implementing The Big Move, the proportion of people accessing Toronto Pearson International Airport by personal automobile declined, while those arriving by taxi remained stable. Those arriving by public transit increased.

Comments from the municipal working group, made up of planning and transportation staff representatives from upper and lower-tier municipalities (including Peel) will be integrated into the draft report which is expected to be released early next year. May8,2013 -3- *-* ' 5 METROLINX INVESTMENT STRATEGY UPDATE APPENDIX I January 4, 2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

The Big Move Update The Big Move Update will refine certain elements of the original plan and incorporate developments and new knowledge since TBM's inception in 2008. This will allow TBM to remain relevant and up-to-date while the original vision, objectives, projects and policies remain intact Some of the proposed updates that impact Peel Region include: » Electrifying the Union Pearson Link based on the findings of the GO Electrification Study • Moving the GO Bolton line from the 15 to 25-year plan, based on the findings of the Bolton Feasibility Study « Updating the 15 and 25-year regional rail map to align TBM with GO2020, which will include: o Moving the section of the , between Meadowvale and Milton, to the 25-year plan o Moving the section of the Kitchener line, between Mount Pleasant and Georgetown, to the 25-year plan o Releasing a new investment strategy a Revising the goods movement section of TBM to include more detail, as outlined by the GTHA Urban Freight Study Proposed updates were presented in December 2012 and have not yet been finalized. They are subject to change pending public and stakeholder consultations in early January 2013.

2. Projects Underway in Peel

GO Electrification In January 2011 Metrolinx released findings on its study on the feasibility of electrifying the entire GO rail system. The study looked at social, economic, environmental, health and technological impacts for current and future diesel and electric technologies. The benefits of electrification include pollution reduction and quality of life improvements, however, journey time and operating savings are the most compelling reasons to electrify. On January 26, 2011, the Metrolinx Board approved staff recommendations to implement electrification in phases, beginning with the electrification of both the Lakeshore and Kitchener (formerly Georgetown) rail corridors, both which service Peel. The Union-Pearson (UP) express (formerly the Air-Rail Link) which shares a portion of the Kitchener line, was selected as the first phase. The project is on schedule and is expected to be complete by mid-2014.

Express Rail Study The Express Rail Study will develop options for the long term expansion of GO Rail. It will explore new markets for service and methods to provide faster and more frequent service to its users The Big Move has defined express rail as "high-speed trains, typically electric, serving primarily longer-distance regional trips with two-way, all-day service". Currently four GO rail lines have been designated for express rail. Three of the four lines (Lakeshore, Kitchener and Milton lines) pass through the Region of Peel. The Lakeshore line's existing two-way all day service and four track central section allows many different scenarios to be considered, and therefore has been named as the priority route. The Kitchener line to Brampton was also identified in The Big Move for implementation in the first 15 years while the Milton line to Cooksville and the to Langstaff were May 8, 2013" -4­ WIETROLINX INVESTMENT STRATEGY UPDATE APPENDIX I January 4, 2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

identified for implementation within 25 years, refer to Appendix I. There is currently no committed funding for express rail service on any of the four corridors.

Mobility Hubs

Mobility Hubs are identified by TBM as places that integrate transportation and land use planning, thereby providing travelers with seamless access to the Regional transit system and supporting higher density development. There are two types of hubs identified in TBM: Anchor Hubs and Gateway Hubs.

An Anchor Hub is defined as a major transit area that is associated with an urban growth centre, as defined in the Growth Plan. A Gateway Hub is defined as a transit station area that is located at the junction of at least two current or planned regional rapid transit lines. Gateway hubs are expected to have 4,500 boardings and alignments in morning peak periods by 2031 and can potentially serve 10,000 people and jobs within 800 meters (2,625 feet). Peel Region hosts both Gateway and Anchor Hubs, as listed below:

Anchor Hubs • Pearson Airport, e Mississauga City Centre, and o Downtown Brampton.

Gateway Hubs » Renforth Gateway, o Bramalea GO Station, • Hurontario-Steeles, and o Cooksville GO Station. In September 2011, Metrolinx released Mobility Hub Guidelines to support the planning and development of hubs. Currently, Metrolinx is engaged in mobility hub planning in 14 of the 51 hubs identified in The Big Move - either through leading studies or by working with municipalities and other agencies on their planning exercises.

An online resource was made available, allowing users to easily search the Guidelines. Profiles summarizing useful demographic and transportation data for each hub were released In September 2012. Both resources can be accessed at: http://www.metrolinx.com/mobilitvhubs/en/default.aspx.

GTHA Urban Freight Forum

Metrolinx established the GTHA Urban Freight Forum (UFF) following the release of the GTHA Urban Freight Study in February 2011. The UFF complements Peel's Goods Movement Strategic Action Plan as both seek to explore urban freight transportation and ways to promote competitiveness through the thoughtful coordination of moving goods and people. The Forum meets twice a year and .consists of upper tier municipalities within the GTHA and various government, industry and academic groups with interests in goods movement (i.e. the Ministry of Transportation, Transport Canada, and private sector members). The UFF also includes an Inter-Governmental Sub-Committee (IGSC) which is formed from staff level public sector members of the GTHA Urban Freight Forum along with lower tier municipalities. This committee met for the first time on June 27, 2012, and then again on December 5, 2012, with Peel Region representatives in attendance. As part of the IGSC, ul-15 May 8, 2013 -5­ METROLINX INVESTMENT STRATEGY UPDATE APPENDIX I January 4. 2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

staff will address opportunities for data sharing across jurisdictional boundaries, as a potential cost-savings tool and to realize better coordination of projects.

GO Rail Parking Strategy

Metrolinx staff is currently developing a GO Rail Station Parking Strategy to identify long term parking needs at stations and ways to effectively address them. As part of this work, Metrolinx recently shared draft GO Rail Station Profiles for stations located in Peel with Regional staff. The profiles are intended to provide the reader with current station data and facility information. The profiles included aerial maps, site conditions and constraints for future development. They also included opportunities for improvement, for example parking, vehicular and traffic accessibility, transit integration, active transportation and community and land use enhancements. The profiles were developed from existing internal information as well as from feedback received at the GO Rail Parking Strategy Municipal Workshops held on November 1, 2011 and May 2, 2012.

The stations in Peel are: » Port Credit » Erindale • Malton • Clarkson • Streetsville • Bramalea o Dixie' • Meadowvale »Brampton » Cooksville ° Lisgar • Mount Pleasant

The final draft GO Rail Parking Strategy is scheduled for the Metrolinx Board in early 2013.

Transit Projects in Peel

Below is a list of specific projects that Metrolinx is working on with Peel and/or its area municipalities.

• Mississauga Bus Rapid Transit (BRT) o Hurontario-Main LRT o The Union Pearson (UP) Express (formerly the Air Rail Link) • GO Transit Rail Improvements

Metrolinx staff provides valuable input on the following Regional projects:

o The Strategic Goods Movement Network Study • Peel Data Sharing Group o Model Update and Development o Peel Transportation Funding and Investment Strategy (upcoming)

3. Second Wave Projects Metrolinx unveiled the second wave of projects to be implemented underTBM on November 29, 2012. The second wave will introduce projects that increase capacity on existing lines and improve regional connectivity, with an estimated investment of $34 billion. These projects were identified in TBM and have been refined and confirmed as the next priority for Metrolinx. Some preliminary work has already begun in the first wave. The following is an update on the upcoming projects in Peel for the second wave. U-lfc May 8, 2013 METROLINX INVESTMENT STRATEGY UPDATE APPENDIX I January 4, 2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

Brampton Queen Street Rapid Transit- This project will expand on existing Zum bus service and introduce over 10km of dedicated-lane rapid transit service on Queen Street to Downtown Brampton and possibly extend to York University and Vaiighan Metropolitan Centre. This project is projected to accommodate an annual ridership of 17 million by 2031.

GO Rail Service Expansion- This project will introduce new two-way, all-day service on Milton, Kitchener, Barrie, Richmond Hill and Stouffville rail lines and improve rush-hour service on all GO rail lines. Additional tacks and infrastructural improvements are necessary to accommodate this. Planning has already begun.

The Lakeshore Express Rail Service- Phase 1 (including electrification)- This project will improve service along 121km of the Lakeshore East and West rail lines and will accommodate a projected annual ridership of 4 million by 2031. Service will be faster and more frequent. Trains will be upgraded from diesel to electric propulsion. Further study is required and ongoing.

Electrification of GO Kitchener Line and the Union Pearson Express- This project will improve service to from Downtown Brampton and the Union Pearson Express (formerly the Air Rail Link). The projected ridership is 14 million annually by 2031. The first phase of this project has begun with the Union Pearson Express currently being built and an Environmental Assessment for its electrification underway (and expected to be complete by 2014).

Hurontario-Main Light Rail Transit (LRT)- The Hurontario-Main LRT is currently in the planning phase and will eventually compliment Mississauga's and Brampton's vision for LRT. Once complete this line will add 23km of light rail to connect Mississauga and Brampton along Hurontario and Main Streets. The projected ridership by 2031 is expected to be 29 million annually.

4. Investment Strategy

The implementation of The Big Move is expected to require a $50 billion investment, with $16 billion dedicated to the first wave and $34 billion to the second wave. Metrolinx is currently preparing an investment strategy to determine the best tools available to generate stable revenue, allowing transportation improvements in the GTHA to keep up with growth. In addition, Metrolinx has identified the importance of public and stakeholder engagement in developing its investment strategy.

The strategy will support all modes of transportation, both people and goods movement, on a regional and local scale, and address the capital and operating needs of the transportation system. Provincial legislation requires that Metrolinx report back to the Province with an investment strategy no later than June 2013.

CONCLUSION May 8, 2013 -7­ METROUNX INVESTMENT STRATEGY UPDATE APPENDIX I

January "4,2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL Metrolinx has a number of initiatives which are expected to increase transit ridership in Peel. Regional Council, through its ongoing advocacy work, supports the area municipalities in their efforts to secure timely and necessary funding for transit projects from the provincial government. Staff will continue to be active participants in the ongoing work to ensure that these projects arewell coordinated with existing and planned transportation projects in the Region. Further, Peel staff is working with various Regional departments and our area municipalities toensure that these initiatives support future transportation goals andobjectives.

Dan Labrecque Commissioner of Public Works

Approved for Submission:

D. Szwarc, Chief Administrative Officer

For further information regarding this report, please contact Alexandra Goldstein at extension y^y 7874 orvia email [email protected]

Jfa Authored By: Alexandra Goldsteinm. c. Legislative Services i_v-»a May 8. 2013 -8 METROLINX INVESTMENT STRATEGY UPDATE APPENDIX I _1 _ January 4,2013 STATUS UPDATE ON METROLINX INITIATIVES IN PEEL

APPENDIX Express Rail Lines

The three express rail lines through Peel are drawn in red. The Lakeshore line stretches across the entire southern part of the Region. The Milton line runs through Mississauga as far as Cooksville, and the Kitchener line runs through Brampton.

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-1 ­ May 8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

APPENDIX II

METROLINX INVESTMENT TOOLS SHORTLIST

INVESTMENT TOOLS

Packing Space Levy (Including pay-for-parking (or rrri Sales Tax: A sales tax is a percentage rate- transit stations): A daily levy is charged to property IS" iii^T applied on all goods and services. Asales tax has mm § owners based on the amount of non-tesidenlial, DHQB the advantage of a broad tax base, which generally off-street parkingspaces owned. produces high revenue yields. Sales tax would require federal government approval. Potential Annual GTHA Revonues' - $1 per space per day = $ 1.1 billion/year Potential Annual GTHA Revenues' - lib = $1.1 billion/yoar Payroll Tax: A tax is paid by employers as a percentage of employees' gross pay in a given Development Charges: One-time leviesImposed -f­period or as a flat tax based on the number of on newdevelopments andeligible re-developments. DCs aredetermined byformula, and based on the employees they have. typeof dwelling or property. Potential Annual GTHA Revenues' - 0.59b Potential AnnualGTHA Revenues' - ISI'o increase on = $700 million/year existing = $100 million/year Property Tax: A percentage-based tax is applied /\ on the value of property owned by individuals and (Transit) Fare Increases: A lare surcharge dedicated tocapital projects is applied to all transit organizations. ?''" trips in the GTHA. Potential Annual GTHA Revenues' - 5% increase in Potential Annua! GTHA Revenues' -$0.15 per ride • revenues - 5670 million/year 550 million/year High Occupancy Tolls: Acharge onvehicles with 0\ one person whowish to use high occupancy vehicle Fuel Tax: An excise tax levied on the sale of (HOV) lanesotherwise restricted tovehicles carrying transportation fuels, calculated by volume purchased. a minimum two or three people. Vehicles that meet PotentialAnnualGTHA Revenues' - SO.OSIL = $330 thehigh occupancy minimum travel for free. million/year Potential Annual GTHA Revenues' - $0.30/km = S25 Land Value Capture: Land Value Capture million/year (LVC) aims to collect a share ol the increased value in property development that results from Vehicle Kilometres Travelled (VKT) Fee: Motorists would pay a charge for every kilometre that transportation investment they travel within a designated areaor in all areas. Potential Annual GTHA Revenues'- S0.03ftm = S J.6 billion/year •Rates shown arc used tor Illustrative purposes only and are Highway Tolls: Motorists pay a toll perkilometre no! Intended lo recommend a particular rate. travelled on designated highways. Potential Annual GTHA Revenues' - $0.IO/km $1.4 tilhonlyeat

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-2­ May8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

APPENDIX II

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High Occupancy HfnhwayTolis : ;|; Vehicle Kilometres':­• •*>.^..Transit,•*iW® :'•'.' '''tax..- V* V'".:'Tolls, - :', EC3t,

HOW DOES An additional A charge on Motorists pay a toll Motorists pay charge A fare surcharge IT WORK? excise tax levied vehicles with one per kilometre tor every kilometre dedicated to capital on the sale of person who wish to travelled on they travel within a projects is applied to all transportation use high occupancy designated designated area or In transit trips In the GTHA. fuels, calculated by vehicle (HOV) limes. highways. all areas. A driver's volume purchased. Vehicles that meet VKT Is recorded the high occupancy through odometer minimum travel for readings or GPS free. tracking.

WHO Motorists Motorists Motorists Motorists Transit Riders PAYS?

POTENTIAL S0.05/L Variable rnto SO.IO/km S0.03/km $0.15/ride ANNUAL REVENUES = $330 million = S25 million •=$1.4 billion " S1.6 billion •=S60 million (GTHA)­ BC, Alberta and HOTs are currently Several U.S. states, Austria and Germany WHERE IS Quebec, US and used In nine U.S. Ireland, the United on federal motorways. IT USED? Europe states. Kingdom and the Highway 407 In GTHA.

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APPENDIX III

u •:•:•: wm. plli|| I • v;:;-V '•: .0, , •.,:.., -:.-0 , ...O •Parking Space Levy ..| -. r., Payroll.....,?.$

;•-1 3 m •'(':­ & &•— A tax Is paid by HOW DOES A percentage-based tax Land Value Capture One-time levies Imposed A dally levy Is charged employers as a IT WORK? Is applied on the value (LVC)alms to collect a on new developments to 0 property owner percentage of of property owned by share of the Increased and eligible re* based on tho amount employees gross pay Individuals and value In property developments used to of non-resldontlnl off- organizations. dovelopmont that results pay for growth-related street parking spaces In a given from transportation Infrastructure. owned- Including pay- period or as a flat tax based on tho numbor Invostmont. DCs are determined by for-parklng at transit of ontployoes they Dovelopmunts around formula, and based on stations transit stations benefit tho type of dwelling or havo. from greater property. accessibility and often have higher land values. Businesses WHO PAYS7 Property Owners Proporty Owners Developers £ New Property Owners Property Owners

0.5V. POTENTIAL 5V# Increase on existing S20 million 15V. Increase on existing $1 /space (day ANNUAL ^5700 million REVENUES = SG70 million = S100 million <= S1.4 billion (GTHA)' Vancouver, Melbourne, Used across Ontario and Paris. NYC. WHERE IS IT Used In Metro Europe, South America. Sydney and Perth, New York rates range USED? Vancouver and Asia. In many other Australia. between 0.11V. and Montreal. The Yonge North Jurisdictions. 0.34V*. depending on Property taxes paid Subway corridor Is an employer's total throughout tlio GTHA currently understudy to payroll expense are used to fund local oxamlne LVC potential. transportation, but arc not dedicated. • Riiez from at u:frffc- tantslnn purposes coy .sid 17 -#­ theBIGmove a>e ret Mtntftd 1*rteo.Tvner.ff a p&Ocvtorrate. LU2Z -2­ May8, 2013 METROLINX INVESTMENT STRATEGY UPDATE

APPENDIX III

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HOW DOES IT WORK? A percentage rate applied on all goods and services.

who PAYS? Consumers

POTENTIAL ANNUAL 1% REVENUES -S1.4 billion (GTHA):

WHERE IS IT USED? Used extensively In the United States to fund transportation Infrastructure. In Ontario consumers pay HST at o rate of 13%; revenues generated from this lax go toward the provinco'o gonoral revenues and ore not dedlcatod to transportation.

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APPENDIX III

Summary of Revenue Tool Scores (AECOM KPMG)

Mitrolim Btj M«nc lmpl."nrmoiiun lioniiii'O ATCOM KPMG Kcvor.u; "IfS, Fn'likt Appendix ­ Summary ol Revenue Tool Scores

Technical Equityand Overall Impact onBehaviour and Governance Economic Revenue Potential Cost: Implementation Distributional Network Performance Considerations Efficiency Contldsrations Impacts

Tools highlighted in yellow appear on Metrolinx's Investment Tools shortlist. The revenue tool scores range from 1to 5, where 5 is the best score and 1is the worst. For more Information and details on theassessment ofthe 25 revenue tools, please refer to the AECOM KPMG Revenue Tools Profile report: http://www.biamove.ca/wp-content/uploads/2013/03,RPT-2013-03-12-Revenue-Tool-Profiles.pdf