In my last referendum blog article, which – suffice to say – has been a major hit with discussion communities and the media, I discussed how the “No” side in the transit referendum has skewered perspectives on our CEO salary – a naturally negative aspect of TransLink, as it can be with any public transit agency (for example, Montreal residents are also loud whiners about their CEO’s salary).
To make matters worse, there’s a positive aspect we’ve been largely ignoring: there are great things TransLink does for us that we don’t tend to give much credit for, and often give no credit for at all. Perhaps it’s a result of negative willies in the “vote no” side wanting to make sure there’s no possible way to think positively of TransLink, but those reasons are still there. Regular readers will recall that I’ve been pointing them out occasionally with posts in my “No Credit for TransLink” series.
One of them is the bond credit TransLink issued last year that no other transit agency in Canada uses, which last year saved taxpayers in this region $130 million.
Wait, wait, you didn’t hear about this? Well, the thing is, you probably didn’t. When TransLink made mention of this in a media release, the only significant media outlet that covered this unique deal TransLink made was the Vancity Buzz, and even there it did not receive the same attention that other Buzz articles have (judging by the amount of “shares”):
Metro Vancouver’s transportation authority has announced that it has raised $130-million through its sixth bond issue.
TransLink is the only transportation authority in Canada to raise funds directly through safe and low-risk Canadian debt capital markets.
For whatever reason, no one else – not a single newspaper reporter or even a columnist, not a TV or a radio station, and pretty much no one in the transit issues discussion community as of yet – has bothered to take note of this very awesome thing that TransLink has been doing for all of us, so that they wouldn’t have to constantly whip out our gas tax funds to pay for projects that keep the regional transportation system in good working order.
As a bond issue, it’s not take-away money that’s been raised and it does eventually have to be repaid over the long run. However, without these low-risk bonds, we wouldn’t be able to proceed with these projects unless taxes are raised significantly in order to pay by traditional means. This is particularly relevant considering how much disagreement there’s been throughout the years regarding the raising of taxes to keep our transportation network in good, working order – it’s why we’re facing a referendum, after all.
Projects that see this money invested include the maintenance of regional roads, bus fleet renewals and the ongoing rehabilitation of major SkyTrain stations. These are great investments that save us money in the long run because they keep the transportation system reliable for its users.
Without this money, commuters in this region would still be dealing with issues such as old buses that are prone to breaking down, pot holes on our roads, and overcrowded SkyTrain stations that are not built for today’s passenger loads. If not needed immediately (and out of our own pockets), we would still have to make these investments and fix these issues eventually – and they would cost more to do so later and by traditional funding means.
It’s noteworthy that being able to do this requires the maintenance of a positive and stable credit rating, which TransLink must maintain year after year. That’s an achievement for which I do not recall TransLink has ever gotten any meaningful credit for at all.
“The demand for our bonds reflects TransLink’s solid financial position, and it shows strong investor confidence in the organization,” said TransLink CEO Ian Jarvis in a statement. “This access to capital helps keep Metro Vancouver’s transit and road network moving and contributes to the maintenance of transportation assets so they serve the region for years to come.”
The bonds do give us additional debt, but it should be noted that this is something TransLink has had no problem making them a part of the budget as it did manage to make a surplus last year, despite bond repayments.
And, to think that this was done under the leadership of Ian Jarvis. Perhaps if people knew about his efforts to secure unique funding that collectively made us $130 million richer last year, they would have been a little less sour about his six-figure salary. If we total up all the funding TransLink has collected this way, we’ve been $1 billion richer, in the form of well-maintained roads as well as new and renewed transit assets, since 2010.
As Canada’s only transportation agency to raise funds directly through Canadian debt capital markets, TransLink has raised more than $1 billion since 2010.
I’m willing to think that perhaps the anti-TransLink “vote no” crowd had something to with why word of this had been largely supressed among local media.