It will be more economical for Okotoks town council to push for a regional transit commission rather than drive it alone.
Okotoks council tabled a decision on the second phase of its regional transit study on Nov. 26 prefering to wait for a decision on a potential regional transit commission.
The Calgary Regional Partnership (CRP) is planning to debate the merits of a regional commission with its member municipalities sometime in 2013.
A regional commission makes economic sense as it will be more financially feasible for municipalities to absorb the cost of what is an extremely expensive venture between more than a dozen partners (Calgary would not be included).
Okotoks’ transit project, which includes a commuter bus service to Calgary as well as intercity busing, is estimated to cost $20.4 million over seven years for buses, stops and storage facilities.
Council is relying on provincial Green Trip funding ($13.6 million) to cover a substantial amount of the cost. There is no guarantee the funding will be available.
This could mean a delay in having an Okotoks bus service, but the wait will be worthwhile.
In addition, public transit is costly as user fees only cover a fraction of the actual cost of providing the service.
If Okotoks was to go it alone the long-term impact on the Town’s taxes could be substantial. It simply would not be self-sustainable and would need significant subsidies to keep the buses running.
As a result, it simply makes financial sense for Okotoks and member municipalities of the CRP to take advantage of the economies of scale and other benefits which would be part of a regional transit system.
