Yang Gu's Blog

Metro Vancouver mayors voted in support of a Translink expansion plan this Friday, which approves:

• upgrade of Translink services — cost: $ 70 million per year for ten years
• Evergreen Line — $1.4 billion cost gap not covered by federal and provincial funds

http://www.evergreenline.gov.bc.ca/route_and_stations.htm

A few thoughts:

I wonder if time value of money is factored in when these numbers were calculated. Is the $70 million annual referring to $70 million in that amount in that year, or an amount equivalent to $70 million today in that future year? How much will the interest on the $1.4 billion for the Evergreen Line end up costing the province?

These projects tend to go over-budget and overtime. Looking back now, I wonder if time value of money is part of the cause. Media reports rarely clarify these numbers.

Even a few percent of differences will leave a staggering sum over the ten years of this project, considering the principal amount. This vote on Friday already approved for increasing property taxes and gas taxes to fund these projects.  However, taxpayers will probably be footing a bill much larger than the one they are seeing now.

Reference Article: http://www.vancouversun.com/business/Metro+Vancouver+mayors+vote+raise+property+taxes/5520074/story.html