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The TTC needs $33.5 billion to keep the system functional -- roughly two-thirds of which are unfunded, report says

TheStar.com
Jan 21, 2019
Ben Spurr

A new TTC report is sounding the alarm about what the agency says is billions of dollars worth of unfunded work required to keep Toronto’s transit system functional over the next 15 years, a finding that could raise the stakes for the provincial government’s contentious plan to take ownership of the subway system.

The TTC capital plan was released Friday along with the agency’s proposed 2019 operating budget, which recommended a 10-cent fare increase. Both documents were reported by the Star Thursday before they were made public.

TTC capital plan released Friday says about $24 billion of capital work needed over the next decade and a half in order keep the system in a state of good repair and meet expected ridership growth is currently unfunded.

The capital plan says the agency will require $33.5 billion of capital investment over the next decade and a half in order keep the system in a state of good repair and meet expected ridership growth. A staggering $23.7 billion of those costs, which don’t include the expense of building new transit lines, is currently unfunded, according to the TTC.

Projects it says are required include increasing capacity on subway lines, replacing the bus fleet, building a new bus garage, buying up to 100 new streetcars, and replacing streetcar track and power systems.

“Without the investments outlined in this plan, service reliability and crowding will worsen,” warns the report, which is signed by TTC CEO Rick Leary.

“This is the fate now faced by some other major transit systems in North America that allowed their assets to badly deteriorate. Our customers, our city, our province and our nation can’t afford to let that happen.”

TTC board member Councillor Shelley Carroll said the new capital plan marks the first time in memory the city has had a clear accounting of the transit system’s infrastructure needs. She said it should be a wake-up call for government to “start having a real conversation about the system” and find ways to fund the existing network instead of focusing on building new lines.


Of the $33.5 billion in costs the report identifies, about $22 billion worth is related to subways and stations. That includes $8 billion for Line 1 and Line 2 capacity improvements, $650 million for a new automatic train control signalling system, $1 billion to expand Bloor-Yonge station, and $1.26 billion for platform edge doors.
A little more than $16 billion of the subway investments are unfunded.


The subway costs in the report are far greater than the $160 million a year the Ontario Progressive Conservatives have pledged to spend on the network if they execute their plan to upload ownership of the lines and stations to the province.


Carroll said she’s concerned that if Queen’s Park follows through on that plan, the province will deem much of the capital work unnecessary.
“Oh it’s necessary all right, and we need to be honest about it and make sure that this system can keep running,” she said.


When asked Friday if the province would commit to funding the capital backlog if it takes over the subway, Ontario Transportation Minister Jeff Yurek replied with a statement that said only: “The government is working with its special adviser Michael Lindsay on the details of the upload, including the financing.”


On the operating side, the TTC budget requests the city increase the subsidy it provides the transit agency and its Wheel Trans service this year to $763 million, a 3-per-cent increase over 2018 that would buck a city directive for all departments to freeze their net budgets.


Among the major drivers behind the increase is $14.4 million in additional costs for the new two-hour transfer policy, and $8.5 million for capacity improvements. There’s also $18.5 million associated with the Presto fare card system.


The agency is predicting 526.3 million riders this year. That’s up from 521.4 million in 2018, but a decrease from the 533.2 million in 2017.


The budget proposes raising $25.8 million in additional revenue by instituting a 10-cent fare increase that would apply across the board to adult, senior, and student rides. An adult fare using a token or Presto fare card would rise to $3.10, while an adult monthly pass would cost $151.15, up from $146.25. The fare hike would go into effect April 1.


Shelagh Pizey-Allen, director of advocacy group TTCriders, condemned the proposed increase, noting Toronto users already pay for a disproportionately large portion of the city’s transit budget compared to those in other comparable cities.


“The TTC is still deeply unaffordable for many people in our city. We already pay more than our fair share,” she said.


In a statement Friday, TTC Chair Jaye Robinson, who told the Star earlier this month she wouldn’t support a fare hike, stressed the need to “balance the cost of capital and service improvements with affordability,” but didn’t say if she would back the increase now that it’s been recommended by transit staff.


“What I can say is that I will be listening very closely at next week’s meeting to transit users, to TTC staff and to board members,” she said.


Don Peat, a spokesperson for Mayor John Tory, said the mayor wouldn’t pre-empt the TTC board’s decision on the fare increase. But he asserted Tory’s administration has “made additional and record-setting investments” in the transit agency, including in popular initiatives such as the two-hour transfer.
The TTC board will consider its 2019 budget at a meeting Thursday.


By the numbers