Calgary roads boss mulls gas tax hike, toll roads to deal with bleak funding forecast

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Looking west along Memorial Drive toward downtown in Calgary, Alberta, on September 23, 2012. Facing a massive funding crunch in transportation grants, the city’s bureaucrat in charge of roads says a hike in the federal gas tax or toll roads may be needed to curb the impact

photo by MIKE DREW/CALGARY SUN

by CARL JOHNSON SPECIAL TO THE SUN

Commuters may have to pay up for the privilege of driving on Calgary’s roads in the future, says the city’s transportation boss.

Mac Logan, the city’s general manager of Transportation, said a $200 million funding shortfall due to withering provincial cash over the next decade means the city will have to consider other options, including a higher gas tax take for the city or even toll roads.

“We need to implement some sort of user-pay system to increase our funding,” he said in an interview Sept. 15, at a public information session on transportation at Chinook Centre.

“For me and many other regular drivers, there needs to be a system in place for all of us to be paying a larger share of Calgary’s transportation needs — for those of us who are actually using the system.”

Grant funding from the province for transportation will face a staggering $200 million funding shortfall between 2013 to 2022, which Logan refers to as the “drop of doom.”

While Logan said he prefers expanding the federal fuel tax system, which has imposed a five-cent-per-litre at the pumps for municipal transportation projects since 1997, the possibility of a toll road system for Calgary is also on the table.

“If we do a toll road system, we’d have to be careful because we don’t want the money gained to only fund the toll system itself,” he said.

“We would have to organize it so it actually gives us a measurable gain for the entire transportation department.”

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“A toll road system would be impractical for Calgary’s roadways — there’s just not enough room for such a system and the tolling booths could be easily circumvented here,” the Ward 12 Alderman said.

“All in all, toll systems are very inefficient in design.

“And as far as increasing the fuel tax, there would need to be a lot more cooperation from the province to gain access to that system.”

Ald. Ray Jones agreed with Keating’s assessment on toll roads, noting it wouldn’t work because “people could simply drive through other neighbourhoods to get around it.”

The gas tax likewise may not be a feasible option, he added.

“The fuel tax system could be increased by the province but there is no real guarantee that we would get that money sent back to us,” he said.

While the city is predicting the funding glut to roll in next year, Alberta Transportation Minister Ric McIver said provincial contributions to municipal roadways in the future remain up in the air.

“The budget time line for Calgary in 2013 to 2022 is as yet undetermined,” the former Calgary alderman said recently.

“We calculate the various transportation grants for Alberta’s municipalities on a three-year rolling budget — so there may be more funding for Calgary, or there may not be.

“It’s all based on Alberta’s future revenue stream.”

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