Item - 2014.EX39.2

As required under the Metrolinx Act, Metrolinx delivered an investment strategy to fund the regional transportation plan (The Big Move). Consultation with municipalities, stakeholders and the public were held, with specific focus on new revenue tools to fund the $34 billion Next Wave of projects. As directed by Executive Committee, City staff also conducted public consultations in early 2013 and developed a recommended City position on new revenue tools for Council's consideration and input to Metrolinx.

On May 7, 2013 City Council adopted EX31.3 Metrolinx Transportation Growth Funding-Dedicated Revenues, with amendments. City Council endorsed the need for dedicated revenues to be implemented by the Province to fund the Metrolinx Big Move plan. However, Council did not endorse any specific new revenue tool, and identified twelve revenue tools they would not support. Council's support was conditional on several principles, notably that 25 percent of new funds raised be allocated to local transportation priorities determined at the discretion of municipalities. Council also requested the City Manager to report back on principles for allocating new funds for local transportation expansion, changes to the Metrolinx governance structure, and opportunities for utilizing new provincial revenues to fund 50 percent of existing transit operations.

On May 27, 2013 the Metrolinx Board approved an investment strategy, "Investing in our Region, Investing in our Future" ("IS Report"). The IS Report proposes 24 recommendations for investing in transit and transportation infrastructure in the Greater Toronto and Hamilton Area (GTHA). In September 2013, the Premier of Ontario appointed the Transit Investment Strategy Advisory Panel ("The Panel") to review the recommendations put forward by Metrolinx and provide advice to the Province. Chaired by Anne Golden, the Panel delivered three discussion papers and a final report in December 2013 entitled, "Making the Move: Choices and Consequences".

The purpose of this report is to provide an overview of the recommendations put forward in the IS Report and the Panel Report, prior to the Province announcing their position in spring 2014. Specifically, the report provides a response to Council's request for further advice on the matters outlined above. The report recommends Council request the Province to undertake a more fulsome review of the Metrolinx Board governance structure than has been conducted to date. Consideration should be given to the inclusion of political municipal and citizen representatives, in addition to the equitable distribution of membership on the Board based on population. The report also recommends Council request the Province to reconsider the Metrolinx recommendation that the 25 percent of funds dedicated to local transportation capital projects be apportioned according to specific categories defined by Metrolinx. Flexibility for municipalities to determine local priorities is preferred. Finally, the report recommends Council request the Province to contribute 50 percent of net municipal transit operating expenditures on all existing operations and future transit lines.