The Government of Canada has renewed an existing program to provide British Columbia’s municipal and regional governments with a predictable, long-term source of ongoing funding to support the building cost of infrastructure projects.
It was announced this week that British Columbia’s local governments will receive $3.5 billion from the Canada Community-Building Fund (CCBF) over the next 10 years between 2024 and 2034, including over $1.6 billion within the next five years, with more than $300 million in 2024/2025.
Out of the $3.5 billion, about 50% or $1.7 billion will go toward TransLink to improve Metro Vancouver’s public transit infrastructure, with $825 million going to the public transit authority over the next five years.
Moreover, the total $3.5 billion CCBF allocation to BC is split into three different streams, including the Metro Vancouver Regional Fund for regional transportation investments (TransLink), the Strategic Priorities Fund for application-based regionally beneficial projects, and the Community Works Fund distributed to local governments based on population and growth rate.
Previously known as the federal Gas Tax Fund up until 2021, the CCBF’s previous 10-year agreement ran between 2014 and 2024, which provided BC local governments and TransLink with a total of about $2.8 billion in infrastructure funding. A previous agreement between 2006 and 2014 also provided $1.8 billion. This federal funding program was first launched in 2005.
“The renewal of this agreement means that the critical infrastructure that supports housing will continue to be built, maintained, and expanded,” reads a joint statement this week by federal housing minister Sean Fraser, BC minister of municipal affairs Anne Kang, and Union of BC Municipalities (UBCM) president Trish Mandewo.
“Upgrading municipal infrastructure that people rely on is an important part of addressing the housing crisis. Community growth needs affordable homes as well as infrastructure, such as public transit, recreation centres, and modern water and wastewater systems.”
In a separate standalone statement this week, the UBCM states local governments will be able to use funding through the three streams for a range of eligible infrastructure projects and will be required to report on how these projects meet the CCBF’s national objectives of productivity and economic growth, a clean environment, and building strong communities.
As well, changes to the renewed program now enable local governments to use the fund to help cover the costs of projects such as “community resilience projects,” new fire trucks, and planning initiatives that support housing.
The UBCM states that the renewed CCBF agreement for BC for another 10 years follows a year-long negotiation involving the federal and provincial governments and the UBCM. The first payments under the renewed agreement are expected to be made later in Summer 2024.
Historically, with the approval of Metro Vancouver Regional District’s board of directors, TransLink’s portion of the fund has typically been directed toward bus-related infrastructure, such as the purchase of new buses to replace aging vehicles and for service expansion.
The CCBF is in addition to the forthcoming launch of the long-promised new annual federal Permanent Transit Fund (PTF) specifically toward building and improving public transit infrastructure. TransLink previously estimated it could receive roughly $3.75 billion over 10 years — or $375 million annually — for its share of the nationwide PTF.
Earlier in 2024, TransLink, the Toronto Transit Commission (TTC), and the Société de transport de Montréal (STM) jointly called on the federal government to expedite the PTF to start in 2024 instead of the original start date of 2026 and permanently double the CCBF as a proven predictable funding stream for municipal infrastructure needs toward public transit.
However, the 2024 federal budget reaffirmed the PTF’s start date in 2026/2027 while indicating that transit-oriented development for added housing density around public transit will be a requirement for receiving a share of the PTF.
By 2027, TransLink is looking to buy more buses for $375 million to both expand peak period bus services and launch BRT, expand bus depot capacity for $1.4 billion, improve active transportation and carry out road safety projects for $70 million, and start Golden Ears Way’s BRT and goods-movement infrastructure improvements for $120 million.
TransLink’s proposal to initiate its first three Bus Rapid Transit (BRT) routes over the coming years is expected to cost between $250 million and $300 million per route. Additional funding is also being sought to accelerate the transition toward a battery-electric bus fleet, which includes the major costs of building new bus depot facilities and charging equipment.
More broadly, TransLink’s $21 billion public transit expansion and improvement strategy over 10 years through 2035 is currently unfunded. The public transit authority is also facing a fiscal cliff for its operating costs beyond 2025, when existing provincial operating subsidies dry up. An operating funding gap of $4.7 billion is forecast between 2026 and 2033.
Last week, TransLink announced a strategy to cut its operating costs by $90 million annually, but in a manner that comes short of reducing services.