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Originally Posted by omro
What percentage of property taxes go towards Public Transit?
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As Steeltown notes, 53% of the HSR's revenue comes from the fare box and 47% comes from funding. The city also receives gas tax monies from the federal and provincial governments, but if I'm not mistaken those go into general revenues rather than being earmarked for transit.
HSR funding is somewhere on the order of $30 million. Compare other operating budget items: Police Services ($110 million), Roads and Traffic ($60 million), Fire Services ($60 million), Waste Management ($32 million), Libraries ($25 million), and Parks ($25 million).
Unlike most of these budget items, the HSR budget is paid from a transit levy whose rate varies depending on where you live (this is called "area rating"). The old city of Hamilton pays an 0.087 percent Transit levy, whereas Glanbrook pays only 0.031 percent, Stoney Creek pays only 0.026 percent, Dundas pays only 0.021 percent and Ancaster pays only 0.018 percent - or about one fifth of the highest rate.
Quote:
Originally Posted by omro
Will the construction of the LRT majorly increase property taxes?
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No. The capital costs will mostly be paid by the province, with the city's contribution coming from its capital budget (money that is borrowed every year for capital projects and then serviced later from operating revenues). The overall operating costs for transit will go up somewhat with the addition of an LRT, but only because ridership will be much higher. The per passenger costs will be much lower.
At the same time, LRT is proven to attract billions of dollars in new private investment along the transit corridor (approximately 400 m to either side of the line), which will generate tens of millions of dollars in new annual property tax assessments. That will more than offset the higher transit operating costs.