Friday, January 22, 2010

building past the budget lines

*CATCH News – **January 21, 2010*
*Infrastructure deficit: What was said*

This week the Public Works committee formally received a report http://www.hamilton.ca/CityDepartments/PublicWorks/CapitalPlanning/Asset+Management/SOTI/2009+SOTI+Report.htm> on the state of the city’s infrastructure warning that the spending shortfall for roads, pipes, facilities and other structures exceeds $150 million a year. That led to the following exchange between downtown councillor Bob Bratina and the general manager of public works, Gerry Davis, transcribed by CATCH.

Bratina: Gerry, how much does it cost to maintain a lane kilometre ?

Davis: Summer and winter included, it’s approximately $10,000 per lane kilometre.

Bratina: How many lane kilometres have we added in the last ten years, roughly?

Davis: We’ve added, I would say, probably upwards 500-700 lane kilometres.

Bratina: A year, on average?
Davis: On average about 50 or 70 a year, Rick? So 60.

Bratina: So if we can’t afford to maintain these lane kilometres of road, why do we add them? It begs the other question. It’s a bit rhetorical but we’re providing – do the development charges that we apply to development recover the costs?

Davis: Through the growth component, when a developer – they’ll pay for the hard services, the capital cost, primarily. There may be a local component – roads, water, sewers. And then that road is handed over to the municipality to maintain. And other services are then required by the municipality – and that’s public works, policing, fire. But what happens in areas – we have assessment growth generated by the property taxes. That doesn’t come specifically to the police or fire or public works for waste collection, road maintenance, but there is a growth in revenues. I’m not saying it covers everything but that is, the capital cost is, primarily paid by the developer.

Bratina: Okay, so the evidence is that this so-called growth isn’t working because we’re $145 million a year short. So who should pay for that? And what I’m suggesting is that we’re building cheap houses for people who work in other communities. We hear this constantly shoved down our throat about how many people leave the city every day to go to work somewhere else. Well that’s because somebody who’s got a job in Peel can’t afford, at his wages a house there, so they get a nice taxpayer-subsidized house in Hamilton.
A good example is Maple Leaf , because the average, the 900 or so on the production line, mostly live in Hamilton, because they can’t afford on the wages they get to live there.
So we have to consider as a council, and get the accurate information. It’s fine to say well we’re going to get all these new taxes from all these new houses. There’s your proof that we’re not getting the money back. And if you look at a growing community – like let’s say Alberta – Edmonton and the oil boom – they’re desperately short of houses. And there’s new jobs, there’s new people moving in. They’ve got to build houses. We don’t. We don’t have all these new jobs being created. All we’re doing is subsidizing residences for people who work elsewhere.


CATCH (Citizens at City Hall) updates use transcripts and/or public documents to highlight information about Hamilton civic affairs that is not generally available in the mass media. Detailed reports of City Hall meetings can be reviewed at www.hamiltoncatch.org . You can receive all CATCH free updates by sending an email to info@HamiltonCATCH.org

Wednesday, January 20, 2010

electric cars shock to gas tax


Susan Tusa, Detroit Free Press
Tax cash cow turning a corner?
Electric cars will zap fuel revenue stream


The Canadian Press

MONTREAL (Jan 20, 2010)

The eventual popularity of electric cars will force governments to consider alternative revenues as they prepare to wean themselves off fuel taxes, industry observers say.

Canada's three levels of government share about $15 billion in taxes from fuel annually. But some of that revenue could be at risk if consumers turn en masse to plug-in electric or hybrid vehicles.

"What is being talked about is taxes on electricity, taxes on other modes of transportation like highway tolls," said Al Cormier of Electric Mobility Canada.

But the founder of the organization that promotes electric cars says taxation shouldn't be a major issue for at least five years. It will depend on fuel prices and electric car purchases.

The industry has forecast that there will be 500,000 plug-in electric cars in Canada by 2018. That's a small fraction of the 20 million vehicles on the country's roads today.

HEC business school professor Pierre-Olivier Pineau said governments have to rethink their tax intake as society looks to rid itself of its oil consumption habit. He said the most likely option is to implement carbon taxes or increase ones already in place in B.C. and Quebec.

Part of the government's tax solution might also involve charging higher rates to recharge a car than for residential uses.

Existing networks only charge one price for each household.

But "smart grids" that could be available in a decade would permit variances.

"It's becoming a buzzword and people think it will change a lot of things," he said.

Growing interest in electric cars has Canada's provincial and municipal electric utilities conducting pilot projects to get ready.

Hydro-Quebec recently announced a partnership with Mitsubishi to test the performance of 50 plug-in i-MiEV electric cars in the town of Boucherville over the next three years.

The $4.5-million project provides the public utility with another window on the electric car market. It is also testing a Ford Escape hybrid and a hybrid pickup truck, while batteries developed by its TM4 subsidiary are being tested overseas in vehicles being developed by Indian carmaker Tata.

Spokesperson Stacey Masson said the Mitsubishi project is part of the energy giant's overall strategy and will help it evaluate the impact of electric vehicles on its vast network.

B.C. Hydro launched its own trial of the cars in November and is also awaiting delivery of the Nissan Leaf in 2011.

Toronto and Calgary are also looking to test electric cars.

The vehicles are seen as part of the solution to global warming as they emit no greenhouse gases.




http://www.thespec.com/

Saturday, January 9, 2010

Hamilton-Toronto corridor

http://www.thespec.com/News/Local/article/701840

Rush-hour blues reach Hamilton
QEW, 403 are both slowing drivers down


The Hamilton Spectator

(Jan 9, 2010)

As congestion continues to trudge outward from Toronto, Hamilton is now the western front.

Morning rush hour drivers cruising into Hamilton, either on the QEW from Niagara or the 403 from Brantford, find their speeds dropping 15 to 20 kilometres an hour upon hitting the city limits.

When commuters hit Burlington, it gets much worse, with speed dropping another 30 km/h.

Traffic on the Toronto-bound QEW slows to 57 km/h on the QEW, from Fairview Street in Burlington to Royal Windsor Drive in Oakville, and then to 52 km/h from Erin Mills Parkway to Hwy. 427 in Mississauga.

The drive home is worse.

Speeds drop to 43 km/h from Royal Windsor to Fairview, before picking up again past Hwy. 20.

Drivers on the 403 heading east from Brant County are moving at an average of 105 km/h in the morning until they hit Wilson Street in Ancaster. As a crush of cars from the Lincoln Alexander Parkway inch onto the highway, mean speed drops to 86 km/h from Wilson Street to the QEW/407 split, hitting as low as 40 km/h at the Linc.

The story during the evening commute is almost exactly the same, only in reverse.

The Travel Time Study by the Ontario Ministry of Transportation, a mammoth 1,700-page document that helps guide planning for the province's major highways in the Golden Horseshoe, found that generally, congestion is getting worse, travel times are growing and drivers can count on long commutes more of the time.

That's no surprise to local commuters who say they are leaving earlier to get to work.

"It's slowly gotten longer," said Marshall Craft, who has been driving to Toronto from Hamilton and now Grimsby for 10 years.

It leaves commuters like Craft looking for that sweet spot -- a quasi-scientific formula of latest departure time without running the risk of arriving late.

He heads out the door at 6:30 a.m. Tuesday to Thursday but at 7 a.m. on Mondays and Fridays when he says traffic is lighter.

That generally gets him to work at 8:15 a.m., 45 minutes early. But if he leaves any later, he doesn't have a hope of sitting at his desk at 9 a.m.

In MTO jargon, Craft is building in buffer time -- the extra minutes needed to consistently arrive on time. The ministry's study found that commuter trips in 2008 could be expected to take 13 to 24 per cent longer than the same trip in 2002.

Craft, a graphic designer for a Toronto newspaper, says the biggest change he's noticed is heavier traffic heading west through Oakville and Burlington in the morning.

MTO data bears that out. Gone are the days of watching jammed lanes pouring into Toronto in the morning and out at night from free-flowing lanes in the opposite direction.

Bustling development and job growth all across the Golden Horseshoe means rush hour now cuts both ways.

For instance, a stretch of the Niagara-bound QEW in the morning takes 15-20 minutes to travel. The same stretch heading to Toronto takes 16 to 25.

Goran Nikolic, head of traffic planning for the MTO's central division, says given the huge tracts of housing built around Burlington and Hamilton, local commute times are staying relatively stable.

"We're talking minutes here or there ... There are problems on the QEW during peak hours but that's not new for anybody," he said.

"There has been phenomenal development and it's phenomenal we're still moving."

The MTO study included 4,270 kilometres along 13 major 400-series highways and 92 arterial roads in the GTA.

Nikolic says about 61 per cent of the studied highways didn't see a significant change in travel times and average speeds between 2006 and 2008.

But those that did, including segments of the QEW, Hwy. 404 south, the 410, and 401 eastbound, got markedly worse.

The biggest drop in speed came in the 401 collector lanes between Mississauga Road and Dixie Road, which fell from an average of 95 km/h in 2006 to 50 km/h in 2008 during the morning rush.

The eastbound QEW between Erin Mills Parkway and Hwy. 427 gained speed, from 48 to 52 km/h between 2006 and 2008, but the stretch is still considered the fifth slowest 400-series segment.

Overall, the survey, which used a fleet of GPS-equipped "probe" vehicles covering 141,000 kilometres, found congestion is a problem in the core GTA but is growing in outlying areas as well.

Marilyn Walden of Hamilton has racked up a sizable 407 bill thanks to her long commute to Oakville and Brampton.

The drive to two campuses of Sheridan College where she works as an IT technician is taking longer all the time.

"It's chaos anytime ... if I try to leave here after 3 p.m., I'm stopped on the QEW."

The hike to Brampton where she works two or three days a week takes 3 1/2 to 4 hours daily. And that's with $160 a month in highway tolls. According to Mapquest, it should take her more like 90 minutes two ways using the 407.

"I dread those days... the drive is just brutal."

On the plus side, improvements on the QEW, 401 and other highways boosted average speeds between 2006 and 2008. As well, high-occupancy vehicle lanes cut travel times by as much as 43 per cent in morning rush hours on the eastbound 403.

But Nikolic acknowledges that when capacity in those lanes is reached, the benefit will be cut.

mmacleod@thespec.com

905-526-3408

Commuters

* Total number of workers (over 15) in Hamilton, Burlington, Grimsby census metropolitan area: 324,650

* Number working in own municipality: 180,815

* Number working in CMA: 13,970

* Percentage travelling outside CMA: 30 per cent

* Percentage of Ontarians leaving CMA to work: 20 per cent

* Number in local CMA travelling to work by private vehicle: 274,705

* Number taking public transit: 28,340

* Number walking or biking: 19,010

Source: Statistics Canada, 2006 Census

Where Hamiltonians are going to work:

Hamilton: 145,480

Burlington: 24,270

Oakville: 7,090

Toronto: 6,925

Mississauga: 6,810

Brantford: 1,925

Milton: 1,860

Cambridge: 1,850

Guelph: 1,105

Haldimand: 1,070

Brampton: 1,055

Wednesday, December 30, 2009

electric warrior?

Hybrids in more collisions with bikes in cities

Pedestrians and bicyclists have ended up in more crashes with quiet hybrid cars than with typical vehicles with noisy internal combustion engines (ICE). The new National Highway Traffic Safety Administration report, titled "Incidence of Pedestrian and Bicyclist Crashes by Hybrid Electric Passenger Vehicles", studied crashes between pedestrians/cyclists and vehicles finding that the lack of noise for new hybrids was linked to an increase in crashes. These crashes were more prevalent at intersections, interchanges, parking lots and other places where cars traveled at slow speed, the places where the hybrids were most likely to be quietest. It found that hybrids were twice as likely to be in a crash with a pedestrian in these areas.

According to ConsumerReports.org:

NHTSA looked at state-level crash files to compare crash rates on these two types of vehicle engines. Out of 8,387 hybrids 77 (or .9 percent) were involved in crashes with pedestrains. Out of 559,703 conventional vehicles studied, 3,578 (or .6 percent) were involved in crashes with pedestrians. In crashes involving bicyclists, 48 (or almost .6 percent) were involved in crashes with a hybrid vehicle whereas conventional vehicles were implicated in 1,862 (or .3 percent) of crashes.

The study (pdf) found that these incidences were more likely to occur in areas with low speed limits. The hybrids had a higher incidence—two times more likely to have a pedestrian crash—when they were slowing or stopping, backing up, or going in or out of a parking space. Most hybrids employ their electrical motors only at these situations, making these cars eerily quiet. However, there was no difference in rate of pedestrian crashes between these two vehicles when they were going straight.

In 2007, there were 70,000 pedestrians injured and 4,654 deaths due to crashes. A number of organizations, including the National Federation for the Blind, are pushing for legislation that would require all hybrid and electric vehicles to emit a sound. A number of car makers are looking into warning systems, as well.

In the meantime, hybrid drivers need to be aware of their stealthy approach and use extra vigilance and possibly look into installing a backup alert warning device or even a backup camera to be able to see pedestrians and bicyclists around their vehicle. Likewise, pedestrians need to be vigilant as electrified automobiles will become increasingly common.

Friday, December 18, 2009

National Post transit discussion

This article ran in the National Post on 7 December:

When the Toronto Transit Commission announced in November it would hike fares a 25¢ in the new year -- a roughly 10% increase -- it blamed the usual suspects: rising costs of fuel and wages.

The system, said TTC chairman Adam Giambrone, faced a $100-million shortfall in next year's operating budget.

When the bad news broke, the Torontoist.com, compared the inflation of the TTC's 21 fare hikes in the past 30 years against the price of gasoline and against the inflation rate.

Consistently, the analysis found, TTC fares had risen faster than inflation, and far faster than the price of gas. Between 1980 and 2010, the cash fare, adjusted for inflation, soared more than 80% and token prices are up 50%. The price of a litre of unleaded gas? Up about 30%, without inflation. As for wage increases, Statistics Canada reported last year that the median full-time, full-year salary of average Canadians has hardly increased at all since 1980.

Although it is charging more than ever, getting heftier federal, provincial and municipal subsidies than at any time in its history, although fuelling a car is pricier; and though its customer base has never been larger or keener to reduce its carbon footprint, the TTC, the largest system in the country, is struggling as much as ever to stem its losses. If this is the future of public transit, it does not look bright.

As other major systems across the continent strain in similar circumstances, the strategy of public transit system boosters has been to promote the service as an environmental necessity. In the name of Mother Nature, North American transit systems have received billions in subsidies in recent years - even though they were never developed for environmental purposes in the first place.

If the goal is to reduce carbon dioxide emissions, air pollution and gas consumption, and maximize the environmental impact of sustainability spending, we may be better off without publicly funding transit at all.

"Subsidized transit is not sustainable by definition," says Wendell Cox, a transport policy consultant in St. Louis, and former L.A. County Transportation commissioner. "The potential of public transit has been so overblown it's almost scandalous."

It's not that environmentally minded transit promoters are being dishonest when they argue that city buses are more efficient than private cars: It's that they're talking about a fictional world where far more people ride buses. Mass transit vehicles use up roughly the same energy whether they are full or empty, and for much of the time, they're more empty than full.

For the bulk of the day, and on quieter routes, the average city bus usually undoes whatever efficiencies are gained during the few hours a day, on the few routes, where transit is at its peak.

Last year, policy analyst Randal O'Toole ran the numbers for the CATO Institute, where he is a senior fellow, comparing mass transit vehicles to private vehicles, ranking each based on how much energy they consume and how much CO2 they emit. The average motorized city bus, he reports, burns 27% more energy per mile than a private car and emits 31% more pounds of CO2. The U.S. Bureau of Transportation Statistics confirms that the average city bus requires 20% more energy per passenger than the average car.

"Unfortunately, right now the state of the art is that you're generally better off with private automobiles when you're talking about energy utilization. About the only way that transit can be competitive for energy or for environmental quality is if the transit lines gets an incredible amount of use, far higher than is now normally the case," says Tom Rubin, a transit policy consultant in California, and former chief financial officer of the Los Angeles County Metropolitan Transportation Authority. But crowded systems are a turn-off for riders, he says, so more passengers means even more buses and rail cars. "It's almost impossible to make transit more attractive without spending a huge amount of money."

The bus may be the most inefficient part of any major city's transit network, but they're the most vital part. Wider use of subways and light rail relies utterly on a feeder system of buses, says Michael Roschlau, president of the Canadian Urban Transit Association. "You can't just run [Calgary's] C-Train by itself and expect everyone to drive to the stations," he says. "Same thing for the subway in Toronto or Skytrain in Vancouver."

Without buses to carry them from their neighbourhood to the train stations, even fewer citizens would ride the trains, making trains, in turn, less efficient per passenger. Already, when trains, subways and streetcars are combined, the average public transit system is still no more efficient that private cars, according to the CATO study. All transit together does emit less CO2 than passenger cars carrying the same number of people the same distance (about 13% less) but even that gap is disappearing -- fast.

The U.S. Department of Energy's Data Book shows that while transit's energy efficiency has worsened in recent decades -- transit buses today consume 4,315 BTUs per passenger mile, or about 50% more energy than in 1980 -- the trend in cars has been the opposite direction: Today's cars are already nearly 20% more efficient than they were 25 years ago, down from 4,348 BTUs per passenger mile in 1980 to 3,514 in 2007.

The environmental case for public transit is falling just as fast, now that hybrid cars are achieving mass market status, with 65 models set to hit North American roads next year, Chevrolet planning to launch its electric Volt by 2011 and manufacturers rolling out super-high efficiency vehicles. In the next few years especially, the average energy consumption of passenger vehicles, and their emission levels, will only improve, with projections by the International Council on Clean Transportation showing the average auto could beat all public transit modes for efficiency and CO2 within the next five years.

"At this point, a Toyota Prius is less greenhouse-intensive than New York City Transit," Mr. Cox says. "Whatever advantage that transit has at the moment is going away very quickly."

Once eco-conscious urbanites realize the bus is worse for the planet than cars, they'll have little reason to keep riding, making transit's comparative per-passenger environmental footprint look even worse. And while transit system operators talk of "greening" their fleet, the fact is they face substantial limits. Whatever green gains transit can make, automobiles can probably do better, Mr. Rubin says.

When the federal government, the B.C. government and BC Transit revealed plans to run 20 hydrogen-powered buses in Whistler, B.C., in February for the Olympics, even the hard-green David Suzuki Foundation balked at the preposterous $2-million-per-bus price tag -- four times the price of a standard diesel -- arguing that the money would have been better spent on traditional transit initiatives, which "are on life support as far as the financial needs go," Ian Bruce, the group's climate-change campaigner, said.

He's surely right about the pointlessness of what will amount to a four-year, $90-million showpiece of technology not even remotely realistic for actual, financially strapped public transit systems.

And more money for diesel-powered buses may be hardly more worthwhile: The fact is that despite best efforts of transit planners and funding governments, and surveys showing a public keen on environmentalism, most commuters simply will not, or cannot, ride.

Last year's census data confirmed that the vast majority of Canadians have little use for transit. Just 216,000 more people rode at least once than did in 2001, a half-a-percentage increase, but that's actually a decrease relative to the 5.4% population growth over the same period. At the same time, Statistics Canada shows that operating costs for Canadian transit system has ballooned, up 30% from $3.7-billion in 2003 to $4.8-billion in 2007. In the United States, public transit's market share for travel has fallen by a third since 1980, from 1.5% to 1% in 2005. If anything were to get people out of their cars to stand at a bus stop, it would be the severe pain of soaring gas prices. But even as fuel in the United States. approached the unseen price of $4 a gallon in 2008, public transit ridership rose a mere 3.3%.

Transit boosters insist that we must go further, and redesign our cities to support transit systems. "Our cities continue to approve the suburban sorts of development that are very difficult to serve using public transit," Stephen Hazell, executive director of the Sierra Club of Canada, told reporters upon release of last year's disappointing ridership data. But the thousands of delivery trucks, taxi drivers, emergency vehicles, service trucks, car-bound workers and buses mean even high-density cities will keep needing highways, ring roads, bridges and flyovers. Meanwhile the massive cost of overhauling cities is just more billions to address an automobile environmental problem that is already on the way to resolving itself -- money that might be better, and more effectively deployed toward other earth-friendly measures, such as reducing traffic congestion.

A congestion charge toll implemented in Stockholm in 2007, for instance, reduced CO2 emissions in that city by roughly 16% last year, cut traffic by 18%, and, because it exempts low-emissions vehicles, led to a tripling of purchases of so-called green cars. Best of all, it sustains itself.

More roads, and more efficient roads, still won't address public transit's original, non-environmental purpose: providing mobility for citizens who lack their own. But where public transit is absent, or impractical, solutions for the small minority totally lacking other means have readily sprung up. Ridesharing applications for smart phones -- users enter their location and desired destination and a cost-conscious carpooler responds -- are already in wide use, Mr. Rubin says. Self-sustaining, small-scale private jitney systems have successfully operated for years in Atlantic City and Puerto Rico (all North America's early public transit systems were privately operated until they were nationalized). And with billions freed up from public transit funds, it appears entirely feasible to simply offer subsidized Prius taxis, or even car subsidies, to the small portion of the public entirely reliant on public mobility. A study last year by HDR Decision Economics, commissioned by the Canadian Urban Transit Association, found that Canada's public systems will need $78-billion more in infrastructure spending and $3.6-billion in annual subsidies to reach optimum capacity. For that kind of money, Canadian governments could, if they wanted, hand out $16,000 car or taxi allowances to every single Canadian who rides transit even casually, and still have $50-billion left over at the end of the decade. That plan wouldn't please the public unions and other transit-reliant lobbies pressing for more green-related transit funding. But it would relieve Canadians from having to perpetually prop up a system that's increasingly unsustainable -- financially and environmentally.

National Post

klibin@nationalpost.

Kudos to letter writer Patrick Condon for writing this response:

Re: Save The Environment: Don't Take Transit, Kevin Libin, Dec. 7.

Kevin Libin gets it all wrong. He uses average transit ridership figures from cities in the United States that are falling from a market share of 1.5% of all trips to 1% of all trips. If you have ever been to Atlanta or Phoenix you can see why. In the Vancouver area, however, transit trips to work increased from 16%t oover 17% during the same period, seventeen times more trips per capita than in sprawling U.S. cities.

More misleading still is the claim from the Cato Institute that a Toyota Prius produces less greenhouse gas per passenger mile than a diesel bus. But for this to happen (according to analysis by the University of British Columbia Design Centre), the Prius would have to have five people in it and the diesel bus no more than 10. I don't remember ever seeing a bus with less than ten people in it, or a Prius with more than two, do you?

Professor Patrick M. Condon, University of British Columbia, James Taylor Chair in Landscape and Liveable Environments, Vancouver.

This letter went unpublished:

While Kevin Libin is entirely correct to challenge the generally uncontested conclusion that public transit is necessarily clean and efficient, he draws some unjustified conclusions based on some statistical sleight of hand. First, his comparisons present a distorted picture: on the one hand, he compares the per kilometre transportation cost between cars and public transit while on the other hand, he compares the energy consumption per passenger between cars and city buses. Far more costly light rail, included in the cost comparison, is excluded from the energy comparison, where the higher cost pays dividends, using less energy than the buses he identifies. Furthermore, the per kilometre cost referenced in the first figure is based on amortising all kilometres driven by the total cost incurred. This does not accurately represent the cost associated with driving in a grid-locked metropolis. In this regard, I commend Libin for his praise for Stockholm's congestion charge toll, though it is worth noting that Stockholm's official report indicates that the majority of diverted car occupants opted for public transit over the purchase of a low-emission vehicle.

Second, the graph that compares CO2 emissions per passenger mile is similarly misleading. On consulting the CATO policy analysis referenced, it is evident that the vehicle fuel efficiencies used are the ideal values from the American Environmental Protection Agency which represent driving new cars (this study used the 2008 model years) under ideal city conditions which do not represent typical, rush-hour city driving. However, the transit values used are the actual energy consumption values from the Federal Transit Administration. Furthermore, as rail runs on electricity, it is only as clean as its source. The translation of energy consumption to CO2 emissions for this study is based on the 2006 U.S. State energy profiles though CATO did not elaborate on how it selected a value of CO2 emissions per unit energy produced. While we are certainly stuck with decades old electricity plants, sources including nuclear, hydro, solar, and wind offer the potential to reduce these emissions numbers to zero. The vehicles in question may have been built in 2008, but the power plants certainly were not.

It is important that the viability of public transit options be examined, but, as a starting point, I believe that better-researched studies should be employed.

Yours sincerely,
N Ellens

roads sinking Hamilton into debt pothole

Hamilton councillors are taking a wait-and-see view of capital projects

Kevin Werner, News Staff
Published on Dec 11, 2009

Hamilton’s skyrocketing debt has prompted councillors to curtail its 2010 capital budget, despite the city’s deteriorating infrastructure problems that amount to over $60 million every year.

Councillors approved a 0.5 per cent increase, or $2.9 million, in capital spending for 2010, and reserved the right to bump it up to one per cent, or $5.8 million before the budget is approved early next year. The 2009 capital budget was set at $77.5 million. With a one per cent approval, the budget will jump to $83.3 million. The increase to the capital budget will remain until council decides to remove it.

The difference is that for a full one per cent, there will be an additional $4 million for road construction, instead of $40 million that would be allotted under a 0.5 per cent budget. For that extra $4 million, an additional $6 million will be added to this year debt, making it $34.2 million.

The city’s overall consolidated debt is expected to balloon from $590 million in 2010 to $810 million in 2011. The city’s debt is expected to reach a high of $1.26 billion in 2017 before dropping slightly in 2018 and 2019.

“We are caught between a rock and a hard place,” said Robert Rossini, the city’s corporate services general manager.

Despite its high debt and the potential for the city’s credit level to affect how it finances projects, Hamilton still desperately needs to spend on infrastructure projects, Rossini said. Hamilton’s infrastructure deficit for major projects is projected to be about $62 million each year for the next 10 years.

Just under half of Hamilton’s capital budget will be directed to road construction. Money will also be used for park acquisition and development, economic development proposals and waterfront development.

A few of the projects proposed for next year include $21 million for the West Mountain Recreation Centre, $15.4 million for city hall renovations, $13 million for the Stoney Creek recreation centre, $11.7 million for the Trinity Church Arterial Corridor to open up the North Glanbrook Industrial Park, $10.3 million to twin the Morgan Firestone Arena and improvements to Woodward and York roads, and Randle Reef rehabilitation.

Mayor Fred Eisenberger urged councillors to accept the extra 1 per cent funding for infrastructure. He said both the federal and provincial governments are looking at how the city pays its share of infrastructure projects.

“Some time we will have to get our heads around that the federal and provincial governments will not fund our infrastructure,” he said. “We need to keep pace. This signals to other governments we are doing our bit.”

He said there have been complaints made by provincial officials that Hamilton has used provincial and federal monies to cut its taxes rather than direct the money to needed capital projects.

Stoney Creek councillor Maria Pearson, who supported the one per cent, said her greatest fear is the potential for safety problems for residents who are injured due to the city’s crumbling sidewalks and roads.

Ward 1 Councillor Brian McHattie suggested councillors wait early next year when councillors have more information about the city’s financial situation.

Councillors are scheduled to approve the 2010 budget at the end of February.

“I’d like more time to understand our situation,” he said.

http://www.dundasstarnews.com/news/article/196907

Tuesday, December 8, 2009

Stockholm's congestion tax

http://www.stockholm.se/PageFiles/70349/Sammanfattning%20eng%20090918_.pdf

This report details the findings of Stockholm's decision to implement a congestion tax on vehicles entering the city from
beyond a cordon during certain hours, similar to that in London, England.


C02 emissions fell, transit ridership increased, and low-emission vehicle purchases increased
(as they are exempt from the tax).