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A Letter from the Chairs Hello Councillors

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A Letter from the Chairs Hello Councillors A Letter From the Chairs Hello Councillors, Welcome to the 2nd Annual Model City Hall Conference! It is our pleasure to welcome ​ you to this year’s Economics Committee. We are looking forward to seeing the excellent debate and expert resolutions that we know you have to offer. We have both been doing Model United Nations for many years, having actively participated in several conferences while also participating in external political endeavours. We are looking forward to seeing the diverse styles of debate sure to take place in this committee. The City of Toronto is the largest in Canada. As a mecca of business, trade, tourism and academia, the city has much to offer to its residents. In lieu of recent economic crises hampering Canadian growth, Toronto continues to remain strong in its Growth. Economics has been a pressing issue for not just Torontonians, but Canada as a whole. To avert collapse in the past, and to fund multi­billion dollar infrastructure projects, the City has indebted itself in the past. Many billions in loans and credit have been taken from banks and governments to account for over­budget spending. The two major issues councillors will be discussing in this committee are the issue of budget rebalancing and funds allocation, and the funding of the TTC. Both are controversial and wide issues to tackle. At current levels, the budget is not sustainable. Liberal spending is planned both in the immediate fiscal year, and the long term. Nearly 13% of funding for future projects comes from debt spending, and Toronto has yet to pay back most of its accrued debt. Councillors will be asked to assist in generating more revenue for the city, and perhaps reallocating, or extinguishing current expenses. There are many options to choose from in this regard, and creativity is welcome. The Toronto Transit Commission is the primary means of public transit in the city, and handles millions of passengers on a yearly basis. In recent years, the Commission has struggled to keep up with increasing demand, and has overspent by millions on nearly every expansion project. With fare hikes occurring on a yearly basis and little to no benefit to the consumer seen in some years, it is difficult to justify further spikes in fare. Councillors will be asked to address the issue at its roots, and resolve the current crisis. If you have any questions regarding the conference or this committee specifically, feel free to reach out to either of us over email or Facebook. We look forward to a lively and interesting debate, and hope you can make a definite change in the economic issues of today. Regards, Liza Kanopatykaia [email protected] ​ ​ Drew Barot [email protected] ​ Chairs, Economics Committee Topic 1: Funding the TTC – Keeping Toronto Moving Toronto is the biggest metropolitan city in Canada. However, the TTC does not meet ​ ​ the expectations of such a large city, being wildly low­functioning and underfunded. Toronto's population is growing exponentially and congestion in Northern GTA, Scarborough, Mississauga, and York Region areas is an increasingly severe problem. Existing infrastructure does not serve all of the people who travel in and out of the GTA and surrounding areas and will not be able to support the future projected growth of the areas or their populations. The GTA's population is growing at a rate unmatched by any other North American city and is 1 projected to increase by more than 44% over the next 25 years .​ ​ In the 4th quarter of 2012, the average daily ridership was 2.76 million passengers: 1,425,300 by bus, 271,100 by streetcar, 46,400 by intermediate rail, and 1,011,700 by subway and ridership will only continue to increase 2 .​ To accommodate this growth, your goal is to act as policy makers and properly allocate funds to keep Toronto moving. The average GTA commuter spends 82 minutes getting to and from work, producing gridlock that costs the economy $6 billion per year and is expected to grow to $15 billion by 2031 as the number of cars on the road rises 3 and both quality and quantity of transit decreases .​ ​ Your goal is to develop a comprehensive solution to cap the rising cost and existence of gridlock by allocating funds towards improvement of the TTC system on all fronts. Furthermore, examine current projects on the table and their funding as outlined in the City of Toronto Budget. How can money be better allocated from other areas of the budget for TTC improvements? The role the provincial government plays in the funding of the TTC must also be taken into account. According to the TTC’s 2014 budget highlights, the subsidy the TTC receives remains the lowest in North America at just $0.78 per ride. Meanwhile, Montreal 4 receives $1.16, Vancouver; $1.62, and York Region; $4.49 .​ ​ Your task is to examine solutions for Toronto’s transit lag in comparison to other fast­growing cities. Furthermore, examine Toronto’s partnership with the province, especially Metrolinx, and how it affects the TTC’s progress. Lastly, examine the allocation of funds within the TTC and devise solutions for better financial management. Should more be allocated for maintenance? Should the TTC invest more in building more routes, buses, trains, etc? Where will the money come from? It should be stressed that, as Toronto’s economic specialists, your job is not to create plans for the TTC, rather find ways to fund them using both internal and external means. It is up to you to get the TTC up and running and keep up with the ever­growing demands of its riders. TTC Fare Hikes In November 2015, the TTC board has voted to raise fares for people paying with cash or tokens. At the start of 2016, the fare jump added 25 cents to the cash fare and 10 cents to the price of adult tokens; changes which affect approximately 37% of all TTC riders. Even with the new fare increase, there is still a $41 million hole in the TTC budget which, if not filled, leaves the TTC with no option 5 than to cut services or increase fares yet again .​ It is no wonder then that the TTC is ​ considered to have the one of the most expensive fares in North America. For the 2011 operating year, the TTC had a projected operating budget of $1.45 billion. Revenue from fares covered approximately 70% of the budget, whereas the remaining 30% originated from the 6 city which has increased its subsidy from $411 million in 2013 to $428 million in 2015 .​ Your ​ goal, as a policy­maker, is to maintain the TTC's financial accessibility to all its riders by locating financial and political means in order to maintain the TTC's funding. TTC Subway System The Rocket is the very underfunded and under­appreciated crown jewel of the TTC. Presently, the system consists of four lines with Line One receiving the most attention in recent projects. The Yonge­University­Spadina line has recently undergone a major facelift, having Wi­Fi implemented on all stations of the Downtown "U" at no cost to the TTC. Furthermore, Union Station renovations have recently been completed. Mayor John Tory has announced the addition of more trains to Line One in order to cut down delays by 7 50% .​ The Mayor said that the addition ​ of a couple of new trains on the Yonge­University line last year helped reduce delays on the line by 25%. Delays were also reduced on Bloor­Danforth line by 9%, according to Tory. However, several highly­coveted expansion plans have been put on the back­burner. More specifically, in 2008, the draft Metrolinx Regional Transportation Plan, extension of the Yonge Subway line north from Finch Station to Richmond Hill Centre/Highway 7 in York Region 8 emerged .​ This plan provides the well­needed connection of the GTA and suburban Toronto ​ to the city. Similarly, Line One has been approved to be expanded to the city of Vaughan to create the Vaughan Metropolitan Centre 9 Station .​ Finally, the ​ Scarborough LRT revitalization and expansion has finally been hailed as a bottom­line plan. A one­stop subway extension from the Bloor­Danforth line along McCowan Rd. to Scarborough’s city centre and the addition of a 17­stop LRT that will 10 connect five underserved priority neighbourhoods all within a $3.56­billion price tag .​ ​ The aforementioned plans will connect the city of Toronto with the vital suburban ports of Richmond Hill, Thornhill, Markham, Vaughan, and Scarborough, providing easier flow of traffic, eased congestion, and better quality service. Your goal is to examine these and any other plans currently of the table and how they will affect the TTC and Toronto budgets. Your goal is to outline how much these plans would cost, their costs versus benefits, and where will the funding come from. Streetcars & Buses Toronto's above­ground services have come under extreme scrutiny from TTC's users. Recently, streetcars have come under massive fire due to the delay in production of brand­new streetcars and the added cost of these delays to the taxpayer, the city, and the province. In summer 2015, the 510 Spadina route was the first to sport the new look followed by the 509 Harbourfront. In 2016, the 511 Bathurst, 505 Dundas, and 501 Queen are also 11 expected to receive the upgraded vehicles. All routes are expected to be upgraded by 2019 .​ ​ However, delays with the production company Bombardier have caused heated a situation between the TTC and Bombardier.
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