Budget 2004 -- Government of British Columbia.
         
Contents.
• Printer-friendly versionAdobe Acrobat Reader link page. (PDF)  
• Premier's Letter to the Minister  
• Message from the Minister  
• Accountability Statement  
• Ministry Overview  
• Resource Summary  
• Core Business Areas  
• Goals, Objectives, Strategies and Results  
• Appendix 1. Strategic Context  
• Appendix 2. Summary of Related Planning Processes  
• Appendix 3. Minister's Legislative Mandate  

Other Links.
• Ministry of Transportation Home  
• Budget 2004 Home  
 

Resource Summary

Core Businesses 2003/04 Restated Estimates1 2004/05 Estimates 2005/06 Plan 2006/07 Plan
Operating Expenses ($000)
Transportation Improvements 13,536 13,386 13,322 13,322
Public Transportation2 368,871 363,474 363,914 362,631
Highway Operations 454,240 417,570 417,725 419,637
Motor Carrier Regulation 1,851 1,786 1,786 1,657
Executive and Support Services 16,549 14,844 14,803 14,803
Total 855,047 811,060 811,550 812,050
Full-time Equivalents (FTEs)
Transportation Improvements 290 280 280 280
Highway Operations 962 630 630 630
Motor Carrier Regulation 19 19 19 18
Executive and Support Services 114 70 70 71
Total 1,385 999 999 999
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
Transportation Improvements 974 473 448 448
Highway Operations3 5,150 11,285 5,635 5,685
Executive and Support Services 326 1,522 1,567 1,567
Total 6,450 13,280 7,650 7,700
Other Financing Transactions ($000)
Public Transportation2 46,390 25,200 39,978 3,666
Revenue ($000)
Total Receipts4 76,665 77,838 78,998 58,043
1   These amounts have been restated, for comparative purposes only, to be consistent with the presentation of the 2004/05 Estimates. Schedule A, Consolidated Revenue Fund Expense, FTE and Capital Expenditure Reconciliations — 2003/04, of the Estimates presents a detailed reconciliation.
2   Public Transportation: Operating Expenses include government transfers to British Columbia Transit and British Columbia Ferry Services Inc., as well as amortization and debt servicing costs for prepaid capital advances to British Columbia Transit and Rapid Transit Project 2000. Financing Transactions include prepaid capital advances to British Columbia Transit for buses and to Rapid Transit Project 2000 for construction of the Millennium SkyTrain Line, scheduled for completion in 2005/06.
3   The 2004/05 estimates include capital costs related to expansion of ferry capacity on Francois Lake.
4   The increase in revenue is due to new interest revenues from the province's investment in British Columbia Ferry Services Inc. The majority of the ministry's reported revenue comes from Coquihalla Tolls ($46.6 million in 2004/05; $47.8 million in 2005/06; and $49 million in 2006/07).

BC Transportation Financing Authority — Consolidated Income Statement

  2003/04 Budget1 2004/05 Budget 2005/06 Plan 2006/07 Plan
Revenue ($000)
Dedicated taxes2 418,300 425,280 438,123 451,364
Amortization of deferred contributions3 174,808 171,145 165,270 155,282
Other revenue4 4,120 4,844 4,844 4,844
Total 597,228 601,269 608,237 611,490
Expenditures ($000)
Amortization 287,528 301,827 313,215 319,917
Interest5 160,479 150,357 179,377 199,154
Heartlands roads program6 35,000 35,000 35,000 35,000
Grant programs7 18,400 24,200 20,000 18,000
Operations and administration 3,820 8,156 3,866 3,866
Contracted services — — 15,056 15,056
Total 505,227 519,540 566,514 590,993
Net Income (Loss) ($000)
Net Earnings (Loss) 92,001 81,729 41,723 20,497
Capital (Consolidated Capital Plan) ($000)
Capital Expenditures (Net)8 357,800 457,968 524,660 362,296
1   These amounts have been restated to be consistent with the classification of expenditures adopted for the 2004/05 and subsequent years' budgets.
2   Dedicated taxes include 6.75 cents per litre motor fuel tax and a provincial sales tax on short-term car rentals of $1.50 per day.
3   Contributions towards capital assets are deferred and amortized to income at the same rate as the related highway infrastructure is amortized to expense.
4   Other revenue includes property and economic development revenues, net of related expenses.
5   Interest on borrowing used to finance construction work in progress is capitalized. Upon completion, related interest costs are expensed.
6   Improvements to Heartlands roads are included in capital expenditures; repairs to Heartlands roads are expensed. Total Heartlands roads program is $75 million per year.
7   Grant programs include grants paid under the infrastructure works program, the newly incorporated territories program, the transportation partnership program for ports and airports, the provincial contribution to the Richmond-Airport-Vancouver rapid transit project, and other projects.
8   Capital spending is shown net of federal funding for various projects in the capital plan.

Rapid Transit Project 2000 — Income Statement

  2003/04 Budget1 2004/05 Budget 2005/06 Plan 2006/07 Plan
Revenue ($000)
Recognition of deferred capital and pre-operating contributions 29,896 28,384 28,205 28,304
Expenditures ($000)
Amortization of deferred capital contribution 29,896 28,384 28,205 28,304
Net Income (Loss) ($000)
Net Earnings — — — —
1   These amounts have been restated to be consistent with the classification of budgets adopted for the 2004/05 fiscal year and subsequent years' plans.

Transportation Investment Plan

In February 2003, the government announced the first phase of a multi-year Transportation Investment Plan. The Plan is set out in detail in "Opening up BC: A transportation plan for British Columbia", available online at: http://www.gov.bc.ca/bcgov/content/images/transportation_
plan_web.pdf.

The Plan is financed primarily from a 3.5 cents per litre motor fuel tax that was implemented on March 1, 2003. These taxes are dedicated through legislation to the BC Transportation Financing Authority. Additional funding of $200 million is expected from the proceeds of the BC Rail Partnership.

The province will provide over $1.9 billion from 2003/04 to 2006/07 for investment in transportation infrastructure. The funds will be used to leverage cost-sharing and partnership arrangements with federal, regional and municipal governments and private sector partners to initiate projects totalling $6.5 billion.

Key elements of the Plan are set out in the following section.

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Highway Rehabilitation

Objectives: To keep the provincial highway network safe and reliable, and to prevent deterioration from 2003/04 levels, when 76 per cent of highways and 80 per cent of bridges were in good condition. This is to be achieved through the resurfacing of approximately 7,500 kilometres of highway through 2006/07, and continued investment in seismic retrofitting and in safety improvements such as guardrail installation.

Costs: Projected investment from 2004/05 through 2006/07 is $438 million.

Benefits:

  • Improved highway safety.
  • Protection and enhancement of economic activity that relies on provincial highways.
  • Reduced incidence of highway failure and the resulting requirement for closures and reconstruction.

Risks: Flooding, slides and other natural events could affect the scheduling and completion of projects.

Photograph -- Rehabilitating the highways: Fresh asphalt re-paving.
Rehabilitating the highways: Fresh asphalt re-paving

Highway Corridors

Objective: To improve performance of highway corridors through smaller projects such as passing lanes, 4-laning, left turn slots, and realignments.

Costs: Projected investment from 2004/05 through 2006/07 is $278 million. Approximately $35 million of this will be provided by the federal government under the Strategic Highway Program and a further $34 million is anticipated from cost-sharing with developers and local governments.

Benefits:

  • Safer and more reliable highways.
  • Partnerships with industry and local government.

Risks: Flooding, slides and other natural events could affect the scheduling and completion of projects.

Transportation Partnership Program

Objective: To provide capital contributions to those public port and airport infrastructure investments that will result in significant, incremental economic benefit. The ministry has to date expressed support for projects that will see expansions to airports at Cranbrook and Prince George, and the development of a container handling facility at the Port of Prince Rupert.

Costs: Projected expenditures from 2004/05 through 2006/07 are $37 million.

Benefits:

  • Expansion to airports and ports will result in an increase in goods shipment and passenger volumes.
  • Airports will have increased capacity to accommodate more non-stop air services to international markets, and port facilities will be able to take advantage of world growth opportunities in the container traffic and cruise ship passenger sectors, thus enhancing economic and tourism development opportunities.
  • Creation of new opportunities and revitalization of economic growth in every region of the province will help make B.C. a gateway for growing trade and tourism.

Risks:

  • Possible project development/implementation delays could influence the timing of expenditures.
  • While funding decisions are based on business case analyses, unanticipated market forces could delay the realization of economic benefits.

Heartlands Roads

Objectives: The ministry is dramatically increasing its investment in northern and rural roads. British Columbia's heartlands communities and resource industries rely on these critical lifelines to reach essential services, natural resources and world markets. Making these roads safer and more reliable will help revitalize the provincial economy and strengthen ties between B.C. communities. The northern and rural road network is deteriorating faster each year, making its renewal a top priority.

Costs: Projected investment from 2004/05 through 2006/07 is $225 million.

Benefits:

  • Revitalized economies in rural and northern communities, due to improved access to resource and recreation areas, markets and trade gateways.
  • Better access to critical regional services.
  • Safer and more reliable roads.
  • Savings in maintenance and rehabilitation costs, due to longer-lasting roads.
  • Partnerships with industry and local government.

Risks: Flooding, slides and other natural events could affect the scheduling and completion of projects.

Oil and Gas Exploration Roads

Objective: Improve the side road network, especially in the Peace River area, to strengthen the road base and reduce restrictions on road use in order to increase oil and gas exploration activity.

Costs: Projected investment is $13 million in 2004/05, the final year of this 6-year program.

Benefits:

  • Revitalized economies in rural and northern communities, due to improved access to potential oil and gas areas.
  • Attraction of significant new oil and gas investment.
  • Significant new job creation.
  • Safer and more reliable roads.

Risks: Flooding, slides and other natural events could affect the scheduling and completion of projects.

Border Crossing Program

Objective: More than $24 billion in goods travel through B.C.'s borders each year, and the health of the provincial economy depends on these gateways. Delays cost cross-border carriers over $60 million a year, according to a 1998 survey of B.C. trucking companies, and the more stringent security measures in recent years have added to these delays.

The provincial government's border crossing program will enhance the free flow of goods through B.C.'s busiest border crossings. Projects at the border or on highway approaches will use infrastructure improvements and investments in transportation technology to keep international trade moving and B.C.'s economy strong.

Costs: The estimated total program cost is $242 million, which encompasses project expenditures beyond the three-year scope of this service plan. Of this, British Columbia is to provide $135.5 million, while the federal government is to contribute $102 million under the Strategic Highway Infrastructure Program and the Border Infrastructure Fund. Other partners are to contribute $4.5 million.

Benefits:

  • Improvements at border crossings throughout the province will see reduced congestion and more efficient and economical cross-border transport — a key component of facilitating increased international trade.
  • Less congestion at the border will result in reduced operating costs for trucking companies.
  • Cost-shared funding through a component of the federal Strategic Highway Infrastructure Program (SHIP) will result in improved access, increased use of intelligent transport systems, advanced traveller information and greater availability of dedicated lanes to serve frequent and pre-approved users.

Risks:

  • Cost estimates are based on preliminary information.
  • Some partner funding has yet to be finalized.
  • Aggressive implementation is required to meet the federal program horizons.

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Weigh Scales Upgrade Program

Objectives: Protect road integrity with greater efficiency and reduce congestion, delays and safety related problems at weigh scales. This will be accomplished by relocating and redesigning weigh scales, implementing joint facility operations at borders, and/or using new technologies with intelligent transportation systems to process truck traffic more efficiently.

Costs: Projected expenditures from 2004/05 through 2006/07 are $15 million.

Benefits:

  • Less congestion and better accessibility to improve safety, speed up processing, and enable the faster transportation of goods.
  • Cost savings for the trucking industry resulting from fewer stops and less waiting time.
  • Cost savings from funding through partnerships with adjoining jurisdictions at joint use facilities, and synergies created through cooperation.

Risks: Cost estimates are based on preliminary information.

Okanagan Corridor Improvements

Objective: To improve safety and capacity in the Okanagan corridor, beginning with the four-laning of Highway 97 north of Swan Lake and upgrades to key portions of Highway 1.

Costs: Projected expenditures from 2004/05 through 2006/07 are $67 million, excluding the construction of a new Okanagan Lake Bridge.

Benefits:

  • Support for trade and tourism in a significant north-south corridor.
  • Reduced congestion in urban areas.

Risks: No material risks have been identified.

Gateway Program

Objectives: The ministry has begun development of a Gateway Program, a potential set of improvements to the regional road network that would significantly improve the movement of people, goods and services along and across the Fraser River. The Program would increase access to trade and industrial facilities, reduce travel times, improve neighbourhood livability and take a significant step toward completing the region's road network.

Potential Gateway projects include:

The South Fraser Perimeter Road Project — a new east-west route along the south side of the Fraser River from Port Kells in Surrey/Langley to Deltaport Way in South Delta, providing significantly improved access to industrial areas, travel time savings for residents, and a free-flow route for tourists accessing the ferries to Vancouver Island.

The North Fraser Perimeter Road Project — localized operational, safety and capacity improvements to existing roads from the north end of the Queensborough Bridge in New Westminster to the north end of the proposed New Fraser River Crossing in Pitt Meadows/Maple Ridge. The project would include improved reliability over the Pitt River via a new fixed link.

The Port Mann Bridge/Highway 1 Project — twinning the Port Mann Bridge as well as improving access and traffic flow along the region's primary trade corridor from approximately First Avenue in Vancouver to 200 Street in Langley. The Port Mann Bridge currently is the single-most congested area in the Province, with traffic queues for up to 16 hours a day.

Costs, Benefits and Risks: The Ministry of Transportation is currently working with the Greater Vancouver Transportation Authority (GVTA) and municipalities to assess the existing highway network, review traffic forecasts and develop the scope of each potential project. Preliminary estimates suggest that the infrastructure investment would be in the range of $3 billion. Detailed consultation with local governments, communities and road users will begin in 2004.

Major Capital Projects

Nisga'a Highway

Objective: The Nisga'a Highway Project is beginning year six of a seven-year investment program that involves upgrading the Nisga'a Highway from a gravel resource road to an all-weather, two-lane highway that meets a 70 kilometres per hour standard. The upgrade is now 70 per cent paved and complete, and the remaining segments are easy to construct in comparison to the completed work. The upgrade will better serve Nass Valley residents and resource industries in the area.

Costs: The estimated total cost for the seven-year program is $52 million.

Benefits:

  • Safer roads.
  • Travel time savings.
  • Better access to British Columbia communities.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks: This project has presented engineering and construction challenges due to the rugged terrain. However, few risks remain as the construction left on the Nisga'a Highway upgrade is straightforward gravel and paving work.

Kicking Horse Canyon

Objective: Upgrade the 26-kilometre section of the Trans-Canada Highway to a modern four-lane standard from the junction of Highway 95 at Golden to the western boundary of Yoho National Park. This mostly two-lane corridor, originally constructed throughout the 1950s, is an important route for tourism, resource development and inter-provincial trade.

Costs: The estimated cost is $191 million for the first two phases.

  • 5-Mile (Yoho) Bridge (current budget $61 million): The cost of this work is being shared with the Government of Canada under the Strategic Highway Infrastructure Program (SHIP). The federal portion is $23 million and the provincial portion is $38 million. Construction is on schedule and expected to be complete by fall 2006.
  • 10-Mile (Park) Bridge (preliminary estimate $130 million): The cost of this work is being shared with the Government of Canada under the Strategic Infrastructure Fund (SIF). The federal portion is $62.5 million and the provincial portion is $67.5 million. Engineering is in progress. The provincial government is investigating financing and alternate project delivery options. A request for proposals is targeted to be issued in May 2004.

Note: It is anticipated in the future there will be a third phase for upgrades from Golden to 5-Mile and 10-Mile to Yoho National Park when federal cost-sharing is secured. Improvements will likely be made over the longer term, rather than within the three-year scope of this service plan.

Photograph -- Kicking Horse Canyon: The planned 10-Mile (Park) Bridge replacement near Golden.
Kicking Horse Canyon: The planned 10-Mile
(Park) Bridge replacement near Golden

Benefits:

  • Safer roads and increased capacity on a critical provincial and national gateway.
  • Fewer road closures due to slides and accidents.
  • Replacement of two major structures that are nearing the end of their service lives.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks:

  • Challenging climatic conditions.
  • Possible construction problems due to difficult terrain or unstable areas.

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Okanagan Lake Bridge

Objectives: To construct a new five-lane bridge to replace the 45 year old bridge now at the end of its economic and useful life, and to reduce congestion in peak hours and through the summer. The project includes construction of a pair of one-way streets in downtown Kelowna to improve traffic flow, a truck climbing lane on the west side of Okanagan Lake, and two interchanges on the west side of the bridge.

Costs: The bridge project is expected to cost approximately $100 million. In addition, improvements valued at approximately $20 million will be constructed on the west side of the bridge. The province is delivering the bridge project through a public-private partnership.

Benefits:

  • Safer bridge and connecting roads.
  • Travel time savings due to relieved congestion.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks: Engineering challenges. However, the risks associated with the construction of floating bridges have been substantially reduced in recent years with the introduction of new flotation technologies.

Sea-to-Sky Highway

Objectives: Implement critical safety and reliability upgrades to Highway 99 (the Sea-to-Sky Highway) and construct lane expansions along some sections of the highway between Horseshoe Bay and Whistler. The schedule requires these upgrades to be completed by the end of 2009. The work will be delivered by public-private partnerships. These upgrades are in addition to other improvements currently under construction between Culliton Creek and Cheakamus Canyon.

Costs: The estimated construction cost is $600 million. Further information, including a Capital Project Plan on the Sea-to-Sky Highway Improvement Project, is available at http://www.seatoskyimprovements.ca/.

Photograph -- The Sea-to-Sky Highway.
The Sea-to-Sky Highway

Benefits:

  • A safer road.
  • Travel time savings.
  • Reduced operating costs.
  • Fewer road closures due to slides and accidents.
  • Ability to meet the needs of the 2010 Olympic and Paralympic Winter Games.

Risks:

  • Challenging climatic conditions.
  • Challenging construction due to difficult terrain or unstable areas, and the need to maintain traffic flows.

Rapid Transit Project 2000

Objective: The Millennium Line project, which is mostly complete and is running smoothly, included construction of the 21.6 kilometre Millennium Line extension to the SkyTrain rail transit system in the Lower Mainland, plus feasibility studies of two planned further extensions of SkyTrain.

The SkyTrain.
The SkyTrain

Costs: The total cost of the Millennium Line is forecast to be $1.12 billion, which is lower than its approved budget of $1.17 billion.

An operating lease with TransLink is in the final negotiation stage.

Benefits:

  • Rapid transit service for current and future commuters.
  • Reduced congestion.
  • Reduced automobile exhaust emissions.
  • Slower growth in the demand for new highway infrastructure.
  • Less urban sprawl, due to compact development around transit stations.

Risks: Risks are related to one remaining section, from Commercial Station to Vancouver Community College, which faces standard construction and financial risks and is expected to be completed in early 2006.

Fees and Licences

Coquihalla Highway Tolls

Tolls are levied for vehicles using the Coquihalla Highway. Estimated annual revenue is approximately $47 million.

Motor Carrier Regulation

The ministry is currently working towards the implementation of revisions to fees and licences administered by the Motor Carrier Commission and Branch. Current estimated annual revenue is approximately $700,000.

Development Approvals

Development Approvals fees are charged for rural subdivision approvals. Estimated annual revenue is approximately $200,000. Progress to establish full cost recovery options for this program has been slower than anticipated and results will be delayed by one year.

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