Revenue Options Study: Cordon Congestion Charges (185 page pdf, KPMG for City of Toronto, Jun. 2016)
Also discussed here: Report lays out hundreds of millions in potential new tax dollars for Toronto (Jeff Gray, Toronto Globe and Mail, Jun. 21, 2016)
Today we review a report by KPMG for the City of Toronto in which the option of a morning rush hour congestion charge is considered in the Toronto downtown south of the 401 between Bathurst and Bayview. Another road pricing option:applying a toll on the Don Valley Expressway is not included in this study and is being considered separately. A daily charge of $5 to $20 at each cordon would yield up to $377M/year in net revenue with 33% overhead. This in turn would cost the average household in Toronto $120 /year with 35% of the revenue coming from visitors.
The overall conclusion: “In general, a cordon charge would have a positive impact by reducing traffic, decreasing greenhouse gas emissions and increasing transit ridership.” and “The net revenue from cordon charges should have a high degree of stability in the long-term.” Implementation costs for congestion charges are high enough to consider as well the option of increasing parking rates in the downtown which would bring in similar revenues (and this seems to be favoured by the Mayor).
|English: Toronto Downtown Core, at nite from CN Tower. (Photo credit: Wikipedia)|
To see Key Quotes and Links to key reports about this post, click HERE