A closer look at TransLink’s funding problems

Good morning,

I’m coming at you from the state of New York as I spend some time out east. We’re in New Jersey, and all I can think about is the opening credits of Sopranos, driving down the highway. And let me tell you, there’s a whole lot of highway here.

Some bad news — we didn’t quite hit our fundraising target this quarter in Vancouver. But the good news is the amount people contributed was more than our goal, so a big thank you to all the new Insider members who joined! We can keep bringing you the stories and new deep-dives we’ve planned.

Today we’ve got a deep dive into TransLink funding problems. Spoiler alert — it’s bad. How bad? You’ll have to read on to find out.

Let’s go!

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WEATHER

Wednesday: 22 🌡️ 23 | 🌤️

Thursday: 25 🌡️ 15 | ☀️

Friday: 27 🌡️ 17 | ☀️

TRANSIT

A closer look at TransLink’s funding problems

What happened: TransLink announced last week that the organization is looking to save $90 million per year in cost-cutting measures to help address a $600 million funding gap in 2026, according to CBC.

In their official announcement, the organization cited two major reasons for the recent revenue problems:

• Costs have risen faster than fare prices, including things like construction, labour and fuel, while fare increases have been intentionally kept below inflation; and,

• Fuel tax revenue, which is 18% of TransLink’s revenue, was down $34 million in 2023, primarily from electric vehicle adoption. CEO Kevin Quinn has noted in the past that they believe gas tax revenue peaked in 2022.

Background: Roughly 85% of TransLink’s costs are related to transit services, so the ability to cut costs without cutting front-line services is limited. The $600 million gap cited earlier is due to provincial funding relief running out, from the $479 million provided by the province in 2023, which prevented cuts form happening, according to Urbanized. 

• TransLink, like other agencies, is dealing with budgetary issues stemming from the massive drop in revenue from COVID.

The (sort of) good news: There is no plan, as of right now, to cut services to deal with the deficit. I include “sort of” and “right now” because the real problem is in 2026, when the province’s funding runs out. In fact, service cuts could be even sooner in 2025, with CEO Kevin Quinn indicating TransLink will have to look at service reductions if nothing financially changes, according to Global. 

• Cutting routes and service can lead to what’s called a death spiral, where reduced frequency means fewer people use the system, leading to lost revenue, resulting in more cuts because of declining revenue, which leads to… well, you get the picture!

What’s being cut: Right now, TransLink is focusing on smaller cost-saving measures that target executives, like not hiring unfilled corporate roles as well as cutting executive training courses. 

What’s being upped: Fare evasion! TransLink is expanding its program to catch fare evaders, in an effort to recoup additional revenue. Urbanized noted that fare infractions have increased by 19% from 2022 to 2023, though there is no projection from TransLink about how much extra money fare evasion will net. The plan would be to have more “high visibility are enforcement,” though the exact details will be shared at a later date. 

Zoom out: Vancouver isn’t the only system facing cost challenges. Over in Ottawa, our Lookout colleague Robert has written about the funding problems facing the system, though it’s quite different than Vancouver, for now.

•  In the capital, ridership is still well below pre-pandemic levels. OC Transpo, the city’s transit agency, is expecting a deficit of nearly $40 million this year. Fares have gone up, and bus service has been “optimized” to run fewer buses but with a focus on improving major routes. Reliability of bus service and ongoing issues with the city’s LRT have contributed to riders staying away from transit.

Looking ahead: This is an example of kicking a ball — funding problems — further down the road. The funding deficit is a real problem that likely will impact day-to-day service unless new funding is found. It’s not just a one-off issue, but as systemic problem, especially as the gas tax continues to decline.

• Would a new Conservative federal government be willing to provide TransLink with more funding? How about a BC Conservative government? Will Eby be as inclined after the election? Relying on other levels of government is a real challenge for TransLink, with no clear way to fix the systemic funding challenges. 

Dig deeper: Bloomberg breaks down a detailed overview of fare evasion strategies employed by transit systems in the US, including Boston and New York, a city where the transit agency says fare evasion costs the city $500 million annually.

VANCOUVER NUMBERS

💰️ $10,000: How much of a rebate BC homeowners and businesses can get for installing rooftop solar panels and battery storage system. [Urbanized] 

🏘️ 3.25%: In some good news for homeowners, this is how much interest rates could be by the end of 2025. [Bloomberg Economics]

🚌 $2.60: The cost of a one-zone adult fare on a Compass Card, up five cents on Monday. It’s part of a slate of price increases, including a $2.40 increase to a one-zone monthly pass, for a price of $107.30. [Urbanized]

🚰 $495 million: The cost to replace a water main that goes through Stanley Park. It carries 50% of the drinking water for Vancouver and a whopping one-third of the region. [Vancouver Sun]

Understand what’s going on outside Vancouver and Canada

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FROM THE ARCHIVE

Four big stories about the city you might’ve missed

We cover a lot here at the Lookout, but sometimes the stories get lost in teh week-to-week publishing.

The city’s new housing targets are a swipe at the province

Published on June 24

What: The City of Vancouver is updating its internal housing targets for 2024 to 2033, and while it believes it can exceed the five-year targets for nearly every category of housing prescribed by the province, two stand out as falling short of the goals: below-market rentals and three-or-more-bedroom units.

• The below-market rentals fall far shorter than the three-bedroom units, both in the number of units and as a percentage of the total units, according to a city staff report. Where the province calls for 7,894 units out of its total target of 28,900 to be below-market rentals by 2028, the city expects only to reach half of that, at 3,950 units.

It gets worse: Comparing the city’s target and the target set by the province isn’t quite apples and oranges. It’s more like comparing green peppers and red peppers — they’re the same fruit, but at different stages in their life. The city is using housing approvals, whereas the province is using housing completions.

Read the entire story

Original report: new Union Market operator mindful to avoid gentrifying, while balancing costs

Originally published on June 12

What happened: The Union Market in Strathcona has reopened under new management. After 31 years in Strathcona, the legendary Portuguese market and cafe, owned and operated by the Bernardino family, closed down in October 2023. Now, it’s back up and running under the same name, but with a new operator.

A fresh opportunity: For local cook, baker, and restaurateur Aman Loodu, the soft opening of the new Union Market in late May was a long time coming. The pandemic made it difficult for Loodu to work in a customer-facing role. Masks made it impossible to read lips, which was a major challenge for Loodu, who is hearing impaired. 

Read the story

Funding shortfalls are having a big impact on performing arts venues

What happened: In a loss for the Vancouver arts scene, SFU announced last month that their Woodward’s Cultural Programs (WCP) would cease to operate, “given current financial realities” for the university. This is just one of the recent indications that the arts and culture scene in Vancouver, and in Canada, is in dire financial straits. 

• That’s in part due to diminished attendance related to high costs of living and the lingering effects of the pandemic, according to The Globe and Mail. 

On the ground: Stefan Nazarevich, an established local musician, studied and worked at SFU Woodward’s School for the Contemporary Arts (SCA) from 2015 to 2023, including working closely with Cultural Programs staff in his role as a resource and technology assistant. 

Read the entire story

(Insider members only) Why is the city ending minimum parking requirements?

Originally published on June 25

What happened: By next week, minimum parking requirements for new developments will be a thing of the past as the city aligns its development policies with the provinces’ to reduce the requirements for new parking, according to Urbanized. The changes apply to all developments, not just residential units.

This does not change the requirement for accessibility and visitor stalls in residential developments. The changes would take place on June 30, aligning with the province’s requirements.

Read the story

THE AGENDA

😎 Get out the sunscreen because the next week is set to be a hot one. By Sunday we should see temperatures around 28 C, with lows around 18 C. 

🚽 The only two public washrooms in the Downtown Eastside may close down because the city has not approved new funding. Together they cost $61,000 per year to maintain, with funding previously coming from BC Housing and grants from the Union of BC Municipalities. [CityNews]

🚶 The Gastown car-free street pilot project is underway, launching last Friday just before Canada Day. With setting on the road, picnic tables and other amenities, it promises to be a blast. [Urbanized]

🏒 It’s been a big free-agency period for the Canucks. They signed Jake DeBrusk, Danton Heinen, Keifer Sherwood, Derek Forbort, Tyler Myers, Dakota Joshua, Vincent Deshanais and Teddy Blueger. They made a qualifying offer to Arturs Silvos, retained Filip Hronek, and signed minimum deals with Cole McWard and Linus Karlsson. A busy week indeed! [TSN]

⛰️ Grouse Mountain’s gondola was closed on Canada Day, leaving some hikers forced to find their own way down. For those looking for a fun challenge, my friend and I ran down the service road that’s just over 13 km, which I highly recommend. It’s a popular area farther down for mountain biking. [CityNews]

👮‍♀️ A 66-year old man went missing near the Third Beach area on Friday. Initially, a search was underway all weekend, but it’s now sadly transitioned into a missing persons case after the search was suspended. [Global]

🏢 The city of Vancouver is seeking input on a draft plan for development around the Rupert and Renfrew SkyTrain stations, which will see an increase in housing to accommodate around 15,000 people. [CityNews]

PREVIEW

Perfect paella

There are foods that you only have a few times, but those few times sully the entire idea of the dish.

Paella was that for me. Before I started getting into food, I made the mistake of eating it at tourist trap destinations on my travels throughs Spain. The entire dish was ruined for me.

Luckily a new Spanish restaurant in Strathcona has perfected paella in a way that I was so excited to share with readers. Somehow rice, perfectly cooked, is the star attraction.

To read our food newsletter full of deep-dive reviews you can’t find anywhere else, and those places yet discovered by the public, subscribe instantly to our free restaurant review newsletter.

Art

Book lovers — I’d include myself in that — rejoice, the Vancouver Art Book Fair is back in-person. It takes place at Roundhouse Exhibition Hall with over 80 different exhibitors, along with panel discussions taking place on July 26 and 27. [Straight]

Music

Sunsets? Symphonies? Sunset Beach? If you said yes to all three, you’ll love the VSO’s Symphony at Sunset featuring classics and modern favourites, as well as movies played with music. [Straight]

There’s still tickets available for the Rolling Stones: Hackney Diamonds tour on July 5 at BC Place. The lowest priced tickets are currently $229.

Fresh off his first Netflix special, comedian Sheng Wang will be in Vancouver from Oct. 10-12, with tickets starting at $29.

Theatre

In a bit of sad news, Firehall Arts Centre did not secure $7 million from the city for accessibility upgrades, with one councillour calling the decision by council “embarrassing” for not approving it. [Stir]

Theatre Under the Stars at the Markin Bowl in Stanley Park is back this summer. Shows begin on July 5, featuring Cats and School of Rock on July 7 until Aug. 24.

Movies

JLG Forever (Jean Luc Goddard) is a series at Cinematheque celebrating the late great director, with Hélas pour moi, Pierrot le fou, Alphaville and Détective all showing this summer.

Rio has a few classics on this week, including Jaws, Fear and Loathing in Las Vegas and Scarface.

PHOTO(S) OF THE DAY

Someone on Reddit snapped these shots of the Gastown car-free pilot. Here’s hoping we see more of this in the city.

Here’s the normal street.

And here’s the car-free street pilot.

COMMUNITY HIGHLIGHTS

• A new VANCOUVER sign has arrived and it’s sure to get attention at this spot. [Global]

• Celebrities just can’t get enough of this Vietnamese restaurant. [Vancouver is Awesome]

• This pho from a lesser-known Vietnamese restaurant will make you rethink what pho should be. [Vancity Lookout]

• These scientists are trying to make kelp forests regrow off the coast of Vancouver Island. [CBC]

• Sad news — popular on-air personality Rick Cluff has died. He previously hosted Vancouver’s Early Edition. He was 74. [Globe and Mail]

• African food is growing in popularity in Vancouver, and these restaurants are some of the best to try. [Straight]

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GAME TIME

We’re going back to SkyTrains in today’s Vancouver guesser. Can you guess which SkyTrain this is?

Reply with your name and the correct answer to have your name mentioned in Friday’s newsletter.