Translink 2014 Annual Report

DrivingPerformance

TransLinkAnnual Report 2014

Our Vision: A better place to live built on transportation excellence.

Our Values: Safety, Customer Service, People, Inclusiveness, Integrity, Excellence, Sustainability, Accountability.

Our Mission: Together, we connect the region and enhance its livability by providing a sustainable transportation network, embraced by our communities and our people.

TRANSLINK 2014 ANNUAL REPORT I ABOUT THIS REPORT

This report covers the 2014 performance of TransLink and its operating companies in the Metro Vancouver region of British Columbia, Canada. Where data is available, the activities of key service contractors are included to illustrate progress over the past five years.

Key indicators reflect a shared view for developing long-term, sustainable operations and demonstrate the financial and sustainable performance for TransLink in 2014 reflecting our fiscal, environmental and social responsibilities. Previous annual and sustainability reports are at translink.ca.

About this report

Assurance

This report includes KPMGs Independent Auditors Report on the financial statements and Independent Assurance Statement on selected sustainability performance indicators.

TRANSLINK 2014 ANNUAL REPORT II ABOUT THIS REPORT

Report standards The audited consolidated financial statements included in this report are prepared in accordance with Public Sector Accounting Board (PSAB) financial standards. The sustainability reporting reflects TransLinks commitment to the International Association of Public Transportations (UITP) Sustainability Charter and the Global Reporting Initiative (GRI) international standards.

This report complies with GRI Sustainability Reporting Framework G3 Guidelines, which were designed for voluntary use by organizations reporting on their economic, environmental and social performance, and is in accordance with GRI Application Level C+. We seek to improve our GRI alignment, working towards GRI G4 Guidelines in future years.

TransLink is a member of the Canadian Urban Transit Association (CUTA) and the American Public Transportation Association (APTA). TransLink maintains its Gold level status under APTAs Sustainability Commitment program.

Caution regarding forward-looking statementsFrom time to time, TransLink makes written and/or oral forward looking statements, which may appear in this document as well as in other communications. Representatives of TransLink may also make forward-looking statements orally to analysts, investors, the media and others.

Forward-looking statements, by their nature, require TransLink to make assumptions and are subject to inherent risk and uncertainties. In light of the uncertainty related to the financial, economic and regulatory environments, such risks and uncertainties, many of which are beyond TransLinks control, and the effects of which can be difficult to predict, may cause actual results to differ materially from the expectations expressed in the forward-looking statements.

We would like to hear what you think about this report. Send comments and questions to [email protected], tweet us at @TransLink or connect with us on facebook.com/translink.

TRANSLINK 2014 ANNUAL REPORT III TABLE OF CONTENTS

p1 | Section A: Year in reviewWho we are and what we do 2 | A message from our Board Chair 4 A message from our CEO 5 | Our performance: highlights and key milestones 6 Lessons learned 7 | Peer recognition 8 | Looking ahead 9

p10 | Section B: About TransLinkCorporate structure 11 | Governance 13 | Transparency 15 Risk management 16

p17 | Section C: Driving performanceDelivering on five strategic priorities 18 | Sustainability dashboard 19 Managing our finances 20 | Serving our customers 22 | Engaging with stakeholders 30 | Developing our people 36 | Building internal effectiveness 38

p42 | Section D: Realizing financial successFinancial discussion and analysis 42

p59 | Section E: AppendicesIndependent Auditors' Report 61 | Audited Consolidated Financial Statements 62 Independent Limited Assurance Report 88 | Sustainability performance indicator tables 90 | GRI content index 93 | Glossary of terms 95

Table of contents2014 Annual Report

TRANSLINK 2014 ANNUAL REPORT 1 SECTION A: YEAR IN REVIEW

Year in review

section a


Who we are and what we do each day

TransLink1 is Metro Vancouvers transportation authority and is governed by the South Coast British Columbia Transportation Authority Act.

Our regional transit system spans 21 municipalities as well as Electoral Area A and the Tsawwassen First Nation. TransLinks current transit service area is 1,800 square kilometres.

With the largest transit-service area in Canada, TransLink is responsible for:

Managing and operating an integrated regional transportation system that moves goods and people by bus, rail, SeaBus, custom transit services, roads and cycling paths.

The Major Road Network (MRN) and investing in road and cycling projects across the region in partnership with municipalities.

Supporting the regions growth strategy, provincial and regional environmental objectives, and regional economic development.

Funding a dedicated Transit Police force.

Managing transportation demand-management strategies and programs.

Managing AirCare, a motor vehicle emissions testing program which ended December 31, 2014.

More than 215 routes with a fleet of more than 1,500 vehicles

Three passenger-only ferries linking downtown Vancouver and North Vancouver

12 kilometres along the multi-use BC Parkway path, bike lockers and cycling projects

Pattullo, Knight Street, Golden Ears, Westham Island bridges, and Canada Line bike and pedestrian bridge

Dedicated Transit Police service

Serves eight stations along 65 kilometres between downtown Vancouver and Mission

68 kilometres of rapid transit including the Expo, Millennium and Canada lines

Operation and maintenance of the 2,300 lane kilometres of the Major Road Network

Transit choices for people with disabilities; 310 vehicles in the fleet

Vehicle emission testing and inspection program (ended on December 31, 2014)

1 South Coast British Columbia Transportation Authority


A message from our Board Chair

The TransLink Board of Directors holds TransLink to task on safety, reliability, customer service, efficiency, financial strength and stakeholder engagement. We ensure that TransLink is well-managed and a good steward of taxpayer dollars as it delivers on its mandate to safely and efficiently move people and goods across this vast region.

TransLink is a unique transportation authority with an integrated regional network of bus, rail, SeaBus, cycling, roads, bridges and HandyDART. We are an integral part of the community and appreciate our customers continued support and feedback. Front line employees are the face of TransLink and their dedication and resilience will help us deliver value to the communities we serve.

In 2014, more than $100 million in efficiencies were achieved; transit revenues covered more than 53 per cent of transit service operating costs; and the overall customer service satisfaction level remained stable, despite two major SkyTrain disruptions.

The Boards key priorities for 2014 included:

Compass: Ensured we stayed on track to roll-out Compass in a phased manner to get it right for customers.

Public confidence: The Board responded to the two major service disruptions by directing management to improve its emergency preparedness plans and implement a plan to make the system more resilient and robust over the long-term.

Safety: The Board decided to move ahead with rehabilitation work on the Pattullo Bridge. Doing this work now keeps safety a priority while ensuring people and goods can keep moving until a long-term solution is in place.

Mayors Vision for Regional Transportation Investment: TransLink supported the development of this landmark plan. This formed the basis of the Transportation and Transit Plebiscite.

Governance: Legislative changes strengthened the relationship with the Mayors Council and the Board welcomed the closer participation of the mayors as board members.

Leadership: The Board recognized that in this time of unprecedented change, a new direction and approach was necessary. The search for a CEO will ensure the most effective leadership is in place.

Throughout 2014 the Board remained focused on these important initiatives, and they deserve a great deal of credit for their vision and commitment to the transportation needs of the region. We will continue to work with our municipal partners, and the provincial and federal governments, to hold TransLink accountable and, importantly, deliver the best transportation service for customers.

Marcella Szel


A message from our CEO

Doug Allen

As a regular transit customer and the leader of TransLink, its my job to challenge the organization to not only meet our goals, but to exceed them.

I have been impressed with TransLinks efficiency and commitment to customer service while running a safe and reliable transit network, and I know we can do more.

SkyTrain has the lowest operating and maintenance cost-per-passenger on the continent. We provide more bus service today with fewer staff than five years ago and the organization has cut costs and created approximately $240 million in savings over the past three years.

These are impressive accomplishments.

I am leading this organization for just a few months, but I know we are accountable to the people who use our services every day. My goal is to ensure we continue to deliver world-class transit and transportation services to the people of this region, while taking into account the social, economic and environmental impacts of our service delivery.

In 2015, our key priorities are to:

Continue to provide safe, reliable and efficient transit services.

Grow ridership by improving the customer experience.

Improve the reliability of SkyTrain.

Advance the phased implementation of the Compass Card to meet customer needs.

Improve overall service integration recognizing that TransLink is already one of the most integrated transit companies in North America.

Rebuild public trust in TransLink.

The 6,700 employees who run this system keep Metro Vancouver moving. I am proud to call them colleagues and I thank them for their hard work and dedication to this region. I believe they are up to the challenge of ensuring we continue to provide safe, reliable, and high quality transportation services from roads and bridges to bike paths, buses, rail and sea.


Our performance: highlights and key milestones

567,089 litres of fuel saved from CMBCs bus anti-idling program

Boarded 200 millionth passenger on the Canada Line

56% of participants in TransLinks first-ever enterprise wide Employee Engagement Survey say that they feel engaged

$130 million raised in the bond market to finance capital projects

6.81 million service hours up from

6.79 million in 2013

52,000 service hours reallocated from bus routes with low customer demand

to those with high demand

Transit revenues cover 53.4% of transit

service operating costs

2.3% decrease in our facilities energy

consumption from 2013

234.6 million revenue passengers in 2014

stable since 2013

99.5% delivery of scheduled SkyTrain

service in 2014

Service complaints decreased by about 4%,

resulting in 85.7 complaints per 1 million boarded passengers

7.6: rating for customer satisfaction

holding steady from 2013


Lessons learned

SkyTrain disruptions Improving how we prevent, prepare for and respond to outages.

The two major service disruptions on SkyTrain last summer were unprecedented. We took action immediately by commissioning an independent review of the SkyTrain system, with a view to improving its resilience and reliability, and to improving the way we manage service disruptions.

All 20 recommendations were adopted and are being implemented. Important lessons were learned and on-time performance averaged 95.2 per cent for the remainder of the year after the event.

Getting Compass right The full implementation of Compass will herald a complete transformation of our fare collection system and the way we do business with customers.

In 2014, we continued with the phased roll out of Compass, getting 10 post-secondary schools ready for the launch of Compass Cards to approximately 130,000 U-Pass BC customers. The first students began using their cards in early 2015, and roll out will continue over the spring and summer. We are committed to a smooth transition and positive experience for our customers, and we are heeding best practices and the advice of our peers around the world by launching in phases. Plans are progressing for a roll out to the remainder of our customers as we work with our contractor on full-system implementation.


Peer recognition

1. CMBC received a 2014 Corporate Leadership Award from the Canadian Urban Transit Association (CUTA) for facility upgrades that significantly reduced the consumption of electricity and natural gas, as well as the associated emissions of greenhouse gases.

2. CMBC also received a TechGREEN Award for reduced electricity and natural gas consumption that lowered annual greenhouse gas emissions by 531 tonnes, or seven per cent of facility emissions.

3. For the third time in four years, TransLink was honoured in Canadas Outstanding Employer Awards from The Learning Partnership. In 2014, as in 2012, we received an Honourable Mention for our Take Our Kids to Work Day.

4. TransLinks Infrastructure and Network Management team won the Institute of Transportation Engineers Bill Curtis Project of the Year award for their safety and accessibility improvements for the BC Parkway.

How others judge our performance...

Management places a strong emphasis on financial planning which fosters sustainability

Dominion Bond Rating Service (DBRS), 2014

Moody's Investors Service, Global Credit Research, November 2014

Moody's Investors Service, Global Credit Research, November 2014

solid governance and management

track record of finding cost efficiencies

Were very proud of receiving a TechGREEN award; the upgrades not only enabled us to save energy and reduce our operating costs, but also support our culture of sustainability. Derek Stewart, Director, Safety, Environment and Emergency Management.


Looking ahead

Our region will soon learn the outcome of the transit and transportation plebiscite, which is a pivotal moment for the future of transportation in this region.

The outcome of the vote will inform the development of our first 10-year investment plan, as required by the new legislation that came into effect in 2014. It will either guide implementation of the expansion in the Mayors Transportation and Transit Plan, which assumes an additional funding source approved by the people of this region, or require us to maintain our existing system, with no expansion, providing services with the funding and resources in place today.

Either one will be challenging, but TransLink is up to the task. The expertise and dedication of our staff on the front lines and behind the scenes will ensure that we continue to provide the best possible service to our customers and the region.

Some of the key actions for the year ahead:

Restore public confidence in TransLink by providing excellent service to customers and through better engagement of our multiple stakeholders, including employees, customers, mayors, councillors and municipalities.

Continue to focus on our customers and measure our performance by setting realistic, measureable, and regularly-reviewed performance targets.

Prepare our system for the launch of the Evergreen extension.

Continue much-needed improvements at aging Expo Line SkyTrain stations.

Continue to roll out Compass with a commitment to making the transition to this new system run smoothly for customers.

Implement the recommendations of the independent SkyTrain review.

Move ahead with necessary work on the Pattullo Bridge to mitigate seismic risk and address the condition of the deck.

Search for a new CEO to lead the organization through the critical time after the plebiscite.

TRANSLINK 2014 ANNUAL REPORT 10 SECTION B: ABOUT TRANSLINK

About TransLink

section b


Corporate structure

Transportation Property& Casualty Co. Inc.(Captive Insurance)

tl subsidiary company

South Coast British Columbia Transportation Authority

(TransLink)

ROADS, BRIDGES,AND AIRCARE

Golden CrossingGeneral Partnership

(Golden Ears Bridge)

tl contractor

Pacific Vehicle TestingTechnologies Ltd. (PVTT)

(AirCare)


BUSoperations managed by coast mountain bus company Ltd.

(cmbc)

RAILoperations managed by bc rapid

transit company ltd.(bcrtc)

TRANSIT POLICEtranslink security

management ltd. (tsml)

Coast Mountain Bus Company Ltd.

(Bus, SeaBus,

Community Shuttle)


Bowen Island Community Transit Ltd.

First Canada ULC(Community Shuttle)

tl contractors

MVT Canadian Bus Inc.(HandyDART)

tl contractor

Municipality of West Vancouver

(Blue Bus)

tl contractor

British Columbia RapidTransit Company Ltd.

(SkyTrain)


West CoastExpress Limited

BCRTC subsidiary company

InTransit BC LimitedPartnership(Canada Line)

tl contractor

South Coast British Columbia

Transportation Authority Police Service


TransLink Board of Directors

Mayors' Council onRegional Transportation


Governance

TransLinks governance structure includes a Board of Directors and a Mayors Council on Regional Transportation. In June 2014, the Government of British Columbia amended TransLinks governance. The Mayors Council assumed new powers and responsibilities, including assuming most of the responsibilities of the Regional Transportation Commissioner. As a result of these amendments, the office of the Regional Transportation Commissioner no longer exists.

Mayors' Council on Regional TransportationMayors Council comprises 21 mayors from municipalities within Metro Vancouver, the Chief of the Tsawwassen First Nation, and the Electoral Area A representative.

The Mayors Council has responsibility for approving TransLinks long-term strategies, 10-year Investment Plan, Board member remuneration, executive compensation, certain short-term fares and TransLinks customer complaint and survey processes. The Mayors Council also appoints the independent directors to the TransLink Board.

Board of DirectorsTransLinks Board comprises nine independent directors; the Chair and vice-chair of the Mayors Council; and up to two individuals appointed by the Minister of Transportation and Infrastructure (currently the provincial seats are vacant). Together, they oversee TransLinks operations. The Mayors Council selects the independent directors from a shortlist of candidates identified by an independent five-member Screening Panel, which includes one appointee from each of the Vancouver Board of Trade, Chartered Professional Accountants of BC, Greater Vancouver Gateway Council, Ministry of Transportation and Infrastructure and the Mayors Council. Further amendments to TransLinks governance effective January 1, 2014 reduced the number of independent directors from nine to seven.

The TransLink Board of Directors has responsibility for stewardship of the affairs of TransLink by overseeing conduct of the business and supervising management. The Board appoints the Chief Executive Officer (CEO) and delegates responsibility to the CEO for the day-to-day leadership and management of the organization.

As of January 1, 2014, TransLinks Board of Directors had four committees: audit, human resources and compensation, governance and major capital projects.


Marcella SzelBOARD CHAIR

W. John Dawson

Mayor Gregor Robertson

Barry ForbesVICE CHAIR

Brenda Eaton

Robin Chakrabarti

Don Rose

Lorraine Cunningham

Mayor Linda Hepner


Transparency

As a public agency, we are committed to transparency, and we openly report on our operations, performance and finances on a consistent and regular basis. The public and stakeholders play an integral role in shaping our projects and plans. All the reports listed below are available on the TransLink website at translink.ca.

Annual business plan: Sets out the annual operating and capital budgets each year, including operating indicators.

10-year Investment Plan: Responds to TransLinks legislated requirement to identify the investments needed to maintain, improve and enhance the transportation system over the next decade. This investment plan needs to be approved by the Mayors' Council. Once approved, this plan becomes the strategic transportation plan.

Quarterly and year-end financial and performance reports: Highlights fiscal and sustainability performance.

Statutory Annual Report: Includes a summary of operations for the year in relation to TransLinks strategic transportation plan and includes other reporting obligations such as audited consolidated financial statements, complaints and customer satisfaction summaries.

Audited financial statements: Financial statements prepared in accordance with Canadian public sector accounting standards.

Financial Information Act Report: Identifies employee and director remuneration and expenses, payments to suppliers, and grants made to external bodies.

Executive Compensation Report: Posted on the website.

Regularly scheduled board meeting agendas are available on TransLinks website five days in advance of a meeting. Each meeting opens with public delegations, and the CEO Report and a summary of decisions made by the Board are posted to the TransLink website within seven days of the conclusion of board meetings.


Risk management

TransLink manages risk though an Enterprise Risk Management (ERM) programa systematic approach used to identify, assess and respond to risks that affect the achievement of our strategic, operational and financial objectives to:

Increase the probability of achieving strategic objectives and priorities.

Recognize the importance of risk management to governance responsibilities, strategic business planning and resource allocation process.

Outline the responsibilities and accountability for managing risks.

Support reasoned risk taking and the continuous application of consistent risk management practices in decision-making.

The Board oversees risk management, while the CEO and executive management manage enterprise risk that the Enterprise is willing to accept within TransLinks operating and business activities across all operating entities. TransLink executive, management and staff ensure risks are identified, understood and appropriately managed in accordance with the established risk management policy.

ERM is conducted under the leadership of the CFO and Executive Vice President, Finance and Corporate Services with the support of the risk management group.

Information on financial, operational, environmental, labour relations and project risk factors are described further in the Financial Discussion and Analysis.

TRANSLINK 2014 ANNUAL REPORT 17 SECTION C: DRIVING PERFORMANCE

Driving performance

section c


Delivering on five strategic priorities

Our unique mandate, which integrates transit, roads and bridges, cycling and walking, is admired by jurisdictions around the world. TransLink has one of the largest transportation service areas in North America, and each day meets the challenge of providing service to areas with vastly differing population densities.

Five strategic goals drive decision-making that directs our performance to benefit the communities we serve.

TransLink is developing a sustainable transportation system that meets the needs of people, organizations and businesses while enhancing the ecological, economic and social well-being of Metro Vancouver and beyond. Our Sustainability Policy supports the corporate vision of creating a better place to live built on transportation excellence and is embedded in our long-term transportation strategy. The policy outlines TransLinks role as an organization, employer, transportation provider and member of the community.

Managing our

finances

Serving our

customers

Engaging with

stakeholders

Developing our

people

Building internal

effectiveness


Sustainability dashboard

5-Year SummaryYEAR ENDING DECEMBER 31

2010 2011 2012 2013 2014

FINANCE1

Operating Cost per Capacity Kilometre ($)

Total Conventional Bus (CMBC, Community Shuttle, Contracted Services)

$0.117 $0.113 $0.119 $0.117 $0.121

Expo/Millennium Line $0.021 $0.022 $0.022 $0.024 $0.026

Canada Line2 $0.086 $0.093 $0.094 $0.091 $0.095

West Coast Express $0.087 $0.085 $0.085 $0.087 $0.097

SeaBus $0.162 $0.174 $0.176 $0.174 $0.172

Cost Recovery Ratio (%)3 51.2 51.8 51.7 55.6 53.4

CUSTOMERS

Overall Customer Performance Rating (out of 10) 7.6 7.6 7.7 7.6 7.6 Total Revenue Passengers (millions) 218.8 233.3 238.8 233.9 234.6

Total Service Hours (millions) 7.0 6.9 6.9 6.8 6.8

Total Scheduled Service Capacity Kilometres (millions)

10,627.2 10,636.2 10,703.1 10,531.4 10,495.3

STAKEHOLDERS

Major Road Network Funding (millions)4 $31.8 $32.7 $33.2 $37.3 $39.5

EMPLOYEES

Enterprise Lost Time Injury Frequency Rate (LTIFR) 7.4 7.1 7.4 8.2 8.0 Total Number of Employees 6,829 6,853 6,720 6,738 6,766

INTERNAL EFFECTIVENESS5

Revenue Fleet Greenhouse Gas Emissions (tCO2e) 142,444 138,372 135,601 133,848 132,980 Facility Greenhouse Gas Emissions (tCO2e) 6,782 8,768 8,090 7,704 7,261 CAC Emissions (Mg/yr) 910 683 822 821 Revenue Fleet Energy Use (GJ) 2,590,682 2,531,802 2,619,015 2,592,287 2,565,007 Facility Energy Use (GJ) 345,535 377,153 360,303 347,862 339,906

1 Refer to the Financial 5-Year Summary table for additional financial indicators.2 Canada Line operating costs include payments to InTransit British Columbia.3 The Cost Recovery Ratio is for scheduled transit services and excludes depreciation and interest expense. Certain prior years ratios have been updated

for consistent presentation. This ratio includes all transit related revenue including advertising while the transit fare recovery ratio presented last year only reflected fare revenue.

4 Includes funding commitments for operations and maintenance; and rehabilitation.5 Certain performance indications have been restated due to a change in data collection methodology. Details provided in Sustainability Performance Indicator Tables.

2014 data was independently assured by KPMG. Refer to KPMGs independent assurance statement on selected sustainability performance indicators.


Managing our finances

Enhance the financial viability of the organization.

TransLink has aggressively reduced costs and achieved efficiencies totalling more than $100 million in 2014.

$48 million of cost-saving efficiencies

$22 million of revenue-generating efficiencies

$38 million one-time items

TransLinks expenditures were $79.7 million lower than budget due to a number of factors that include timing of projects, work activity, cost reductions and overall efficiencies.

In 2014, TransLink reduced costs, eliminated waste and found more than $100 million in efficiencies. Approximately $240 million has been saved since 2012.

Our credit is AA-ratedTransLinks strong financial position has been endorsed by Moodys Investors Service and Dominion Bond Rating Service.TransLinks Aa2 and AA stable credit ratings were reaffirmed in 2014. Both agencies highlight our diverse revenue streams, sound governance structure and track record of prudent fiscal management as reasons for the high credit rating.

Our bonds are in demandThe demand for our bonds reflects the strength of TransLinks financial position and investor confidence in the organization. In 2014 we successfully launched a bond issue of $130 million for a term of 10.5 years at an all-in effective rate of 3.14 per cent. TransLink has now launched six successful bonds and raised more than $1 billion from investors in the capital market since 2010.

56

55

54

53

52

51

5020142013201220112010

Cost recovery ratio total 5-year trend

Cost Recovery Ratio(Transit System)

Cost re

covery ra

tio %


TRANSIT / 34% / $495,609

FUEL TAX / 24% / $340,104

PROPERTY AND REPLACEMENT TAX / 22% / $324,510

GOV'T TRANSFERS, INTEREST, AMORTIZATION / 10% / $148,303

PARKING RIGHTS TAX / 4% / $59,971

OTHER (INCLUDES AIRCARE) / 3% / $43,632

GOLDEN EARS BRIDGE TOLLS / 3% / $41,623

TRANSIT OPERATIONS / 62% / $888,793

INTEREST EXPENSE / 12% / $171,094

AMORTIZATION OF CAPITAL ASSETS / 11% / $161,472

ROADS & BRIDGES / 6% / $83,627

CORPORATE / 5% / $71,752

TRANSIT POLICE / 3% / $34,334

AIRCARE / 1% / $15,806

2014 Revenue

($ thousands)$1,453.8

2014 Expenditures($ thousands)$1,426.9


Serving our customers

Enhance the customer experience by providing valued service and infrastructure to road and transit users through innovation and excellent customer service.

Knowing who your customers are, where they want to goand when and howis key to delivering a trip experience they will value. Listening to our customers, planning and delivering services, and improving our performanceits a job that never ends.

Engaging our customersCustomers reach out to us in many different ways for many different reasons. They want to plan a trip or find out when the next bus is coming. They want to comment on service or make a suggestion for improving service. We listen and we appreciate it when customers take the time to comment, whether calling, texting or tweeting.

Overall satisfaction rating Customers gave us 7.6 out of 10. This rating has remained stable since 2010. We met or exceeded targets for bus, SeaBus and West Coast Express in 2014.

Translink.ca page views: 58,616,794

SMS Next Bus Requests: 32,969,804

Visits to translink.ca: 30,867,220

Twitter mentions: 313, 170

Buzzer blog page views: 194,659

Transit alert subscribers: 77, 066

Facebook fans: 11,325

Average daily Twitter mentions: 858

Number of inbound lines to Customer Information: 69

Number of calls received by Customer Information and Customer Relations: 3,406,214

*SkyTrain results include Expo, Millenium and Canada lines

SkyTrain*

2013

8.32014

8.2

Bus

2013

7.72014

7.8

SeaBus

2013

8.52014

8.6 HandyDART

2013

8.32014

8.1

West Coast Express

2013

8.52014

8.5


You cant help but notice TransLinks buses and trains, but were also part of the communities we serve in less visible ways. Last year we sponsored events, buskers, poetry, and book drives, fundraised $277,590 for the United Way of the Lower Mainland, and delivered two busloads full of new toys to the Lower Mainland Christmas Bureau.


Improving our serviceHelping people get where they need to travel by Bus HandyDART SkyTrain West Coast Express

TransLink helps people to get where they need to gowhether they take transit, drive, walk or bike.

In 2014, TransLink decreased non-revenue service hours through service scheduling efficiencies and better matching vehicle sizes to ridership. Total service hours across the region remain stable, and we reallocated more than 52,000 service hours by shifting resources from routes with low customer demand to those with high demand. We have reallocated 392,000 service hours since 2010.

Serving our customers (cont.)

TransLink moved (served) 234.6 million customers in 2014.

Each bus load we carry potentially eliminates 40 cars from Metro Vancouver roads, significantly reducing congestion and air emissions during peak periods.

New services, more customersFour times a year, TransLink adjusts transit services to better match seasonal ridership and deliver value for more customers. In 2014, customers saw the following improvements:

New bus services and expansion into two new areas on the 116 and 503.

Improvements to reduce crowding on 14 routes: 41, 49, 99, 135, 143, 178, 230, 319, 410, 555, C15, C23, C28 and C92.

Services on 36 routes were adjusted to better reflect ridership: 17, 28, 41, 49, 96, 97, 99, 129, 130, 135, 143, 178, 209, 214, 230, 231, 236, 311, 319, 340, 352, 403, 410, 555, C9, C15, C23, C28, C43, C44, C50, C51, C52, C53, C70 and C92.

Conventional buses replaced community shuttles on two growing routes to serve more customers: 188 and C98.

For more details about how we plan these decisions and details about bus performance by route, visit Managing the Network.


In 2014 we served more customers than in 2013.


kilometres of

Rapid Transit

68Mainland provides more than 2.6 million trips per year. Every weekday more than 11,000 customers get on or off at one of eight stations between downtown Vancouver and Mission.

Evergreen extension TransLink looks forward to launching operations on the Evergreen extension. Until then, the Ministry of Transportation is responsible for its construction. In March 2014, Alice, the tunnel-boring machine, began boring the two-kilometre tunnel that runs east of Barnet Highway in Port Moody to Coquitlam. When the Evergreen extension is operational, TransLink will operate the longest fully automated rapid transit system in the world.

5Number of years Canada Line has been running. Moving 122,000 people each day.

In 2014, more than 19,000 individual HandyDART customers were served by 1,094,500 trips on HandyDART vehicles and 74,361 trips on taxis.

Improving the SkyTrain system for the futureStation Upgrades: TransLink is upgrading seven key SkyTrain stations and exchanges along the Expo Line to ensure the rapid transit system will meet the needs of passengers and the region for years to come. These upgrades will enhance accessibility through new or improved escalators and elevators, improve safety and security measures, and provide greater platform capacity.

In 2014, upgrades were complete at Scott Road Station, and significant construction progress took place at Main Street-Science World Station. The Train2Main shuttle train allowed the station to remain open throughout the year during construction. Train2Main moved passengers to and from the station for about six months until fall 2014.

Work that began in 2013 to replace 34 kilometres of power rail on the Expo Line continued throughout 2014, progressing to the area between Waterfront and Stadium-Chinatown stations. This work will continue in 2015, resulting in a more robust system with fewer service disruptions and greater system capacity.

West Coast Express The commuter rail service for the Lower

Happy Birthday, Canada Line!



Keeping customers moving as they

Cycle

Cross bridges

Board the SeaBus

Move goods

Making the BC Parkway safer and more accessible Safety and accessibility improvements to the BC Parkway got underway in 2014. The 26-kilometre multi-use path connects False Creek in Vancouver to Gateway Station in Surrey. Funding comes from TransLink and the cities of Surrey and Vancouver. TransLink manages the operations and maintenance of 12 kilometres of the path, from approximately Nanaimo SkyTrain Station in Vancouver to the 3rd Avenue overpass west of New Westminster SkyTrain Station.


New options for cyclists connecting to the transit system The new Bike Parkade area at Main Street-Science World Station opened in May 2014. The indoor area in the newly upgraded east stationhouse has 86 bike racks, more than four times the number of bike lockers that used to sit outside the station. The facility is the first of its kind on TransLinks transit network; over the next few years, Bike Parkade areas will replace bike lockers at some of TransLinks busiest stations and bus loops.

Room for two, 6,000 times a day Bus passengers on routes across the system use the bike rack, which holds two bikes, nearly 6,000 times on a typical weekday. The 099 route - Commercial-Broadway / UBC (B-Line) records the most number of activations, with approximately 380 per day.

Golden Ears Bridge recorded more than 11 million crossingsGolden Ears Bridge celebrated its fifth anniversary in 2014 with more than 11 million trips across it. Traffic volumes were up by six per cent in 2014.



A new SeaBus, the Burrard Otter II, joined the fleet in December 2014The Otter II replaces the original Otter and will share duties with the Burrard Pacific Breeze. The Otter IIs updated design makes it more efficient and easier on the environment. It uses less fuel and produces 20 per cent less carbon dioxide than older vessels. The Otter II also surpasses marine standards and reduces carbon monoxide emissions by 90 per cent, hydrocarbons by 70 per cent and visible smoke by 25 per cent.

SeaBus has provided safe, reliable and efficient service between downtown Vancouver and the North Shore since 1977. More than six million passengers cross the Burrard Inlet on SeaBus every year, or about 16,600 people a day.

Roberts Bank Rail CorridorThe Roberts Bank Rail Corridor (RBRC) Program is a comprehensive package of road and rail improvement projects funded by an unprecedented collaboration of 12 partners representing local, regional, provincial, and federal governments as well as private industry. The RBRC Program included the delivery of nine road-rail projects in Delta, Surrey, the City of Langley and the Township of Langley. It comprised eight overpass projects and one railway siding project in a 70 kilometre stretch connecting Canadas largest container facility at Roberts Bank with the North American rail network. TransLink was the organizing partner and committed $50 million toward the program.

SeaBusDid you know?

SeaBus is a passenger only ferry that connects downtown Vancouver with the North Shore, making

43,290 crossings per year

6,044,955 More than six million commuters,

students, tourists, families and friends boarded SeaBus in 2013

Average daily ridership:

16,600


Engaging with stakeholders

Secure stakeholder support to plan, fund, build and operate a sustainable transportation network.

Our stakeholders include the provincial and federal governments, municipalities, businesses, environmental and transportation organizations, Metro Vancouver citizens and our customers on transit and on the roads. In short, everyone makes a contribution to how well we perform in delivering excellence in transportation. We listen and then we act.

More than 5,830 bus stops in Metro Vancouver are now wheelchair and scooter accessible. Thats seven in 10, up from five in 10 in 2007.

The 57 vehicles in the West Vancouver Blue Bus fleet now have speakers and public information displays that provide next stop announcements for passengers with visual or hearing challenges. Theyre already on the rest of the TransLink fleet.

1.25 million people in Metro Vancouver live in nine TravelSmart Communities across the region. TravelSmart supports more sustainable travel choices.

New wayfinding aids make it easier for customers to plan a trip and find their way whether riding transit, cycling or walking.

Transit Police rolled out a new SMS text reporting system for non-emergency calls. Transit riders can text 87.77.77 to report things that they seesafely and discreetly.

Transit Police released OnDuty, a new app that transit riders can use on their mobile devices to discreetly report non-emergency issues and track crime hot spots along the transit system.

Sectors: Social / Public Service / Environmental / Business / Labour / Transport / Education

Lower Mainland regional districts,municipalities, and First Nations governments

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Working with municipal partnersTransLink helps to increase travel options and reduce the distance people travel by vehicleTransLink is contributing to the reduction of congestion on the roads by increasing the share of all trips made by walking, cycling and transit. In accordance with the Regional Transportation Strategy, we are aiming to reduce the distance travelled by vehicles in the region by one-third by 2045. Data from the 2011 Trip Diary demonstrates an encouraging trend in mode share, with the region already making about 27 per cent of all trips by walking, cycling and transit. The remaining 73 per cent of all trips were made by car. This data is available

every four years. Increasing mode share helps to reduce Vehicle Kilometres Travelled (VKT) while improving public health. Those activities also serve to reduce crime, congestion, air pollution, and Greenhouse Gas (GHG) emissions.

Percentage of all trips by walking, cycling and transitWe have a long way to go to achieving our targets. It will take new funding for investment, strong transportation-demand management policy, and strong partnerships with local and senior governments to achieve our targets.

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Engaging with stakeholders (cont.)

Major Road Network and bike projectsTransLink provides funding for the operation, maintenance and rehabilitation of the MRN, but ownership and operational responsibility for the MRN remains with the respective municipalities. TransLink also shares the cost of road and bike improvement projects with municipal partners and other stakeholders. In 2014, TransLink committed more than $45 million in contribution funding to municipalities for this years road projects across Metro Vancouver, including 22 capital improvement road and bicycle projects in 12 Metro Vancouver municipalities.

Engaging stakeholders and customersTransLink regularly reaches out and involves customers, citizens and other stakeholders in its deliberations to ensure the success of the projects, programs and services that we undertake locally and across the region. TransLink participated in 11 community events in 2014.

Major Road Network

lane kilometres


70.3 per cent of bus stops in Metro Vancouver are now wheelchair and scooter accessible.

TravelSmart partners with City of New WestminsterTransLinks TravelSmart program launched its newest partnership with the City of New Westminster. The program engages residents and provides resources on travel choices in the community including cycling skills for children, carshare expansion, seniors on transit and encouragement for all city residents to take one less car trip a week. The TravelSmart program began in 2009 and works with municipalities across Metro Vancouver to provide education and resources to help residents consider healthier, affordable and environmentally-friendly travel choices.

Join the conversation on transportationTransLink collaborated with the SFU City Program to launch the lecture series Rethinking Transportation: New Voices, New Ideas. Check the webcast at Rethinking Transportation.


Engaging with stakeholders (cont.)

Learning about transit oriented developmentTransLink regularly works with public and private sector partners to foster transit-oriented development to Metro Vancouvers benefit. There are now 39 development projects in construction or planning stages compared to only a few between 1986 and 2011.

We are developing a transit system in Riyadh and we hope to learn from the success of Metro Vancouver in creating highly innovative transit-oriented communities and developments.

Ibrahim Aleid, Director of Metropolitan Planning and Urban Design, Riyadh Development Authority

Exporting our expertiseTransLinks ability to deliver transit-oriented development investment attracts interest from around the world. A delegation from Riyadh, the capital city of Saudi Arabia, met with TransLinks real estate group, planning and infrastructure management teams, and the Transit Police.


Shaping transit in the Northeast Sector Consultations with people who live in or travel through Anmore, Belcarra, Coquitlam, Port Coquitlam and Port Moody helped to shape the Northeast Sector Area Transit Plan. Key themes that emerged included: improving access to destinations, meeting changing travel demands, expanding network coverage and offering direct, easy-to-understand transit routes.

Sponsorships and partnerships 2014 highlights TransLink partners with major event

organizers to guide, assist and promote sustainable travel options, including the Special Olympics, Grey Cup Festival, Vancouver Marathon, Celebration of Light, Canada Days and Car Free Days.

TransLink collaborates with a number of public and private organizations on mutually beneficial joint initiatives and campaigns, including Regional Pedestrian Safety Awareness with ICBC, Bike To Work and School Week with HUB and Safe Routes to School with Haste.

TransLink sponsors and donates to organizations/initiatives that generate community support for public transportation and contribute to the social and environmental well-being of the region, including Adopt-a-School, KidSafe and Pink Shirt Day.

Grey Cup Festival*MultiPass: 28 Nov 14 30 Nov 14

GC1234

Consulting on service optimization TransLink held a series of open houses in Richmond, Burnaby, North Vancouver and Delta in February to consult with customers on six proposed service optimization changes. The input from the open houses, public feedback and further technical analysis helped shape recommendations that were integrated into the regular services changes that happen four times each year.

Reviewing bus service for downtown VancouverTransLink and the City of Vancouver partnered to review local bus services within downtown Vancouver and develop a shared vision for the future. Technical work to identify the best possible solutions to the issues raised during consultation is ongoing. The process will result in recommendations for a network vision and associated actions.

Transit Police


Developing our people

Build an aligned, engaged, accountable and customer-focused team.

Our ability to deliver transportation excellence ultimately depends on the skill and commitment of our people, from front line staff to executives. We invest in training, leadership development and health and wellness programs to support our peoples performance in delivering value to our customers. Our 2014 Annual People Report is available for more details.

1,191 employees attended a wide variety of in-house training courses. That was an 11.5 per cent increase in employees participating in programs and courses enterprise-wide from 2013-2014.

Developing employees and leaders Fifty-six per cent of participants in TransLinks first-ever enterprise-wide Employee Engagement Survey say they feel engaged with their organization. Participants highlighted pride in their organization, teamwork and a respectful workplace as key attributes. Opportunities for improvement focused on empowerment, recognition and feedback, and leader effectiveness.

We know were on the right track. A mentoring program fostered 112 formal mentor and mentee partnerships, which exceeded the anticipated participation rate.


A stable workforce and employer of choice The availability of skills and leadership training as well as opportunities to develop careers in TransLink contributes to the stability of our workforce. While employee turnover continues to fluctuate year-over-year, it remains below three per cent. The combination of opportunity and stability contributes to our being an employer of choice. Online applications increased by 53.4 per cent between 2013 and 2014, even though the number of job competitions was fairly stable.

We are committed to providing all employees with safe working environments.

Safety in the workplaceOne hundred per cent of employees are represented in joint health and safety committees, as required by the Workers Compensation Act of British Columbia. There has been an increase in the number of reportable lost-time injuries since 2011; however, we saw an improvement from 8.2 in 2013 to 8.0 in 2014. BCRTC, Transit Police and West Vancouver Transit showed a reduction in the rate of lost-time injuries over the reporting period while CMBC and HandyDART showed a slight increase. TransLink views negative trends in employee safety performance as a risk and continues its focus on employee safety. Individual operating companies have action plans in place to reduce the number and severity of employee injuries. These action

plans will form part of group and individual objectives in 2015.

Protecting our drivers and passengers To keep our people safe and free from harassment or threat of violence, CMBC and Transit Police jointly launched a campaign to raise awareness of the issue and encourage transit riders to report unacceptable behaviour. CMBC is also working with WorkSafeBC, BC Transit, and Unifor locals 111 and 333 to explore the use of safety barriers on buses to deter or mitigate operator assaults. Its one of a number of tools that can help prevent or minimize acts of violence directed at transit operators. A safety barrier prototype will be put into revenue service in 2015 to gather feedback from operators on the design of the barrier.


Building internal effectiveness

Develop processes and infrastructure to support an integrated approach to the efficient and effective delivery of transportation services.

More effective and efficient in operationsAt TransLink, we constantly strive to be more effective and efficient in our operations. We are continually implementing measures to lessen our carbon footprint, including purchasing more efficient transit vehicles, decreasing our reliance on non-renewable fuels, and implementing energy efficiency projects in our facilities.

A summary of GHG, criteria air contaminants (CAC) and energy consumption by mode of transport is contained in the Sustainability Performance Indicator Tables in the appendix of this report.

Measuring our GHG emissionsAtmospheric emissions are the main source of TransLinks environmental impact. Approximately 95 per cent of TransLinks GHG emissions are generated from the transit fleet and TransLink continues to make improvements by replacing our older fleet.

New fleet

TransLinks GHG emissions intensity for the entire fleet has held steady at 49 g CO2e per passenger-kilometre. Our GHG emissions intensity compares favourably to peer regions because of the electric-powered SkyTrain system and trolley buses, as well as the hybrid buses.

45

48

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HandyDART vehicles ordered to replace older vehicles. 3-5% lower GHG emissions.

Community Shuttles ordered to replace older vehicles. 10% lower GHG emissions.

Compressed Natural Gas powered buses ordered to replace diesel buses. 5% lower GHG emissions and 95% lower CAC emissions.

95%

10%

35%

Operation of the new SeaBus with a more ecient cooling system.10% lower GHG emissions.

10%


GHG Emissions Intensity(gCO2e per Passenger Kilometre)

Total Direct GHG Emissions (tCO2e)

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Note: Certain performance indications have been restated due to a change in data collection methodology. Details provided in Sustainability Performance Indicator Tables.


Building internal effectiveness (cont.)

Reducing our impact on regional air qualityTransLink regularly tracks its generation of Criteria Air Contaminants (CACs), a group of air pollutants that cause smog, acid rain and health hazards. Typically these are the products of the combustions of fossil fuels or industrial processes. Although TransLinks CACs held steady from 822 t in 2013 to 821 t in 2014, it is expected that we will see a reduction of CAC emissions with the ongoing replacement of our older fleet.

Anti-idling policy reduces harmful emissionsIn 2014, CMBC buses idled for 141,772 fewer hours compared to the 2009 baseline. Our buses also consumed 567,089 fewer litres of diesel fuel, resulting in an estimated savings of $720,202 in 2014 alone. Since 2010, we have saved more than $3.2 million in fuel costs with our anti-idling program.

Improving buildings energy efficiencyIn addition to lighting upgrades in our facilities and transit centre yards, TransLink has implemented a number of energy efficiency projects to improve our understanding, control and management of our building equipment. We are systematically installing building automation systems in our facilities. In 2014, building automation systems were installed at Burnaby Transit Centre and Port Coquitlam Transit Centre. This technology helps optimize the use of the different systems to reduce our energy consumption as much as possible while ensuring employees comfort.

Energy Consumption Facilities (GJ)

2011 2012 2013 20142010

345,535 GJ 357,302 GJ -5.3%

347,739 GJ -2.6%

339,906GJ -2.3%

377,153 GJ +9.2%

TransLinks building energy consumption has improved year-over-year since 2011 and more than 60 per cent of our facility energy use is from renewable resources, primarily electricity.

TRANSLINK 2014 ANNUAL REPORT 42 SECTION D: REALIZING FINANCIAL SUCCESS

Realizing financial success

section d

Financial statement discussion and analysis

TRANSLINK 2014 ANNUAL REPORT 43 SECTIO N D: REALIZING FINANCIAL SUCCESS


5 YEAR SUMMARY(all numbers in millions except per unit calculations)

Year ending December 31

2010 2011 2012 2013 2014

FINANCIAL PERFORMANCE 1

Revenue 1,303.3 1,316.0 1,421.5 1,443.6 1,453.8

Expenditures 1,361.9 1,368.5 1,430.8 1,406.8 1,426.9

Surplus (deficit) for the year (58.6) (52.5) (9.3) 36.8 26.9

FINANCIAL INDICATORSCumulative Funded Surplus 2 322.0 287.7 294.8 342.7 365.2

Capital Assets 4,497 4,426 4,386 4,451 4,512

Net Debt 3 1,773 1,859 1,914 1,913 1,933

Deferred concessionaire credits and GEB contractor liability 4 1,685 1,686 1,675 1,664 1,647

Total Net Debt 3,459 3,544 3,589 3,577 3,580

Gross Interest Cost as a % of Operating Revenue 5 13.6% 14.5% 14.3% 13.3% 13.1%

OPERATING INDICATORSPopulation of Service Region 2.4 2.4 2.4 2.4 2.5

Scheduled Transit ServiceOverall Performance Rating (out of 10) 7.6 7.6 7.7 7.6 7.6

Service hours 6.4 6.3 6.3 6.2 6.3

Cost recovery ratio 6 51.2% 51.8% 51.7% 55.6% 53.4%

Operating cost per service hour 7 $ 121.42 $ 126.79 $ 131.20 $ 133.16 $ 137.38

Complaints per 1 million boarded passengers 85.9 87.5 82.1 98.0 89.3

Operating cost per capacity kilometre7 $ 0.073 $ 0.075 $ 0.078 $ 0.079 $ 0.082

Access Transit ServiceNumber of trips 1.1 1.2 1.2 1.2 1.2

Operating cost per trip $ 38.33 $ 37.62 $ 38.56 $ 39.91 $ 40.30

Number of trips denied 0.013 0.018 0.038 0.042 0.017

Complaints per 1 million boarded passengers 883.5 913.4 1,037.8 1,045.2 1,079.7

Golden Ears Bridge Crossings 8.7 9.8 10.8 11.0 11.7

Average toll per crossing $ 3.40 $ 3.45 $ 3.60 $ 3.58 $ 3.56

1 The 2010-2014 results represent the audited consolidated financial statements prepared using the PSAB standards.2 The cumulative funded surplus as calculated under the SCBCTA Act is the amount of resources available to fund future operations. 3 Includes bonds, debentures, capital leases, short term debt net of sinking funds and debt reserve deposits. 4 Deferred Concessionaire credit for Canada Line & Golden Ears Bridge contractor liability. 5 The gross interest cost as a % of operating revenue has been restated so that operating revenue includes miscellaneous revenue and the operational portion of the

Government Transfers revenue. See note 6a of the audited consolidated financial statements for a breakdown of government transfers revenue split between capital versus operating items.

6 T he Cost Recovery Ratio is for scheduled transit services and excludes depreciation and interest expense. Certain prior years ratios have been updated for consistent presentation. This ratio includes all transit related revenue including advertising while the transit fare recovery ratio presented last year only reflected fare revenue.

7 Includes Bus, SeaBus, Expo & Millennium line, Canada Line, West Coast Express and Police operating costs.



ACCOUNTING POLICIESSignificant accounting policies are fully disclosed in note 2 of the Consolidated Financial Statements.

The following is a summary of the basis of presentation and the future accounting pronouncements:

Basis of presentationThe consolidated financial statements of the Authority have been prepared in accordance with Canadian Generally Accepted Accounting Principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants.

One of TransLinks wholly owned subsidiaries, Transportation Property and Casualty Company Inc. (TPCC) is a captive insurance company which is required to follow International Financial Reporting Standards (IFRS). For consolidation purposes, TPCC is reported under the accounting standards of the parent entity.

Future accounting pronouncements The new Section PS 3260, Liability for Contaminated Sites, establishes recognition, measurement and disclosure standards for liabilities relating to contaminated sites. The Section is effective for fiscal periods beginning on or after April 1, 2014. The Authority is working on assessing the impact of this standard.


Consolidated statement of operations analysis

CONSOLIDATED REVENUE COMPARISON TO 2013Variance

($ thousands) 2013 Actual 2014 Actual Change % Change

Taxation $ 741,307 $ 744,157 $ 2,850 0.4%

Transit 495,575 495,609 34 0.0%

Golden Ears Bridge 39,421 41,623 2,202 5.6%

Emissions Testing 19,619 12,047 (7,572) (38.6%)

Transfers from Other Governments 84,558 90,291 5,733 6.8%

Amortization of Deferred Concessionaire Credit 23,273 23,273 0.0%

Interest Income 34,208 34,739 531 1.6%

Miscellaneous Revenue 5,771 5,576 (195) (3.4%)

Gain (Loss) on Disposal of Assets (167) 6,437 6,604 (3,954.5%)

Total Revenue $ 1,443,565 $ 1,453,752 $ 10,187 0.7%

RevenuesProvincial legislation provides TransLink with access to revenue sources that are used to fund the provision and support of transportation services. Total revenues for 2014 were $1.45 billion compared to $1.44 billion in 2013. The largest dollar increases were a combination of a gain on a property transaction, increase in taxation and toll revenue, increased transfers from government, partly offset by reduced revenues from emissions testing.

TaxationUnder the South Coast British Columbia Transportation Act, TransLink is permitted to raise revenues by means of taxes, including fuel tax, property and replacement tax, hydro levy, and parking rights tax.

Fuel tax revenue decreased $9 million (2.6 per cent) to $340.1 million in 2014 from $349.1 million in 2013. Total net gasoline volumes in TransLinks region reported by the Consumer Taxation Branch (CTB), increased by 5.2 per cent and total net diesel volumes declined by 18.8 per cent. Gasoline represents over 80 per cent of the total fuel tax collected, while diesel is a much smaller portion. Gasoline volumes increased significantly in November and December 2014, with the fall in crude oil prices combined with the strengthening of the U.S. dollar in relation to the Canadian dollar.

Property taxes and replacement tax increased $8.2 million (2.6 per cent) from 2013, which is consistent with the legislated maximum of three per cent annually less adjustments from supplemental rolls being greater than the previous year and payments in lieu less than expected. Property tax revenue was $306.6 million in 2014, up from $298.4 million in 2013. Replacement tax of $17.9 million was collected in 2014, which is consistent with the annual rate set in 2013 to collect from all allowable property classes.

Parking rights taxes increased $3.4 million (6 per cent) higher than 2013. Revenues continue to show positive growth in the amounts remitted by parking management companies within the Region.



TransitTransit revenue consisting of transit fares and other transit-related revenues such as advertising, fare infractions, Park and Ride, and property rental remained constant at $495.6 million in 2014 and 2013.

Transit Fares were down $1.2 million (0.3 per cent) over 2013, due to the use of discounted products slightly offset by an increase in UPass BC rate mid-year.

Other transit revenue increased $1.2 million (8.5 per cent) to $15.6 million. The increase is attributable to advertising revenue and revenue from TransLinks new initiatives to generate commercial revenue in the areas of wireless and income producing properties.

Golden Ears Bridge TollsGolden Ears Bridge (GEB) tolls increased $2.2 million (5.6 per cent) over 2013 to $41.6 million in 2014 from $39.4 million in 2013. Crossings grew by 6.2 per cent over 2013 and a legislated inflationary toll rate adjustment was implemented, effective July 15. In September, TransLink also completed its work with the Transportation Investment Corporation (TI Corp) to provide customers with the convenience of a combined bill for tolls incurred on both GEB and the Port Mann Bridge.

Emission testingRevenue from the AirCare program was $7.6 million (38.5 per cent) below 2013, due to a fee reduction that started in 2014 in anticipation of the program ending at December 31, 2014.

Government transfersContributions from senior government continue to be a key source of income for TransLink to support and grow the transportation network and achieve long-term regional transportation goals. The timing of the projects and applicable revenue recognition period affects the variance year-over-year and to budget.

Interest incomeTotal interest income was 1.6 per cent higher than the prior year due to higher sinking fund investment balances.

Interest income has been rising over the last five years because sinking fund balances, used to retire future maturing debt, have increased over time.

Gain (Loss) on disposal of assetsDisposal of assets generated a gain of $6.4 million in 2014, compared to a loss of $0.2 million in 2013, reflecting sales from surplus properties.

Miscellaneous revenuesMiscellaneous revenues consist mainly of recoveries from warranty repairs and costs recovered from other parties.


CONSOLIDATED REVENUE COMPARISON TO BUDGETVariance

($ thousands) 2014 Actual 2014 Budget Fav./(Unfav.) % Change

Taxation $ 744,157 $ 736,396 $ 7,761 1.1%

Transit 495,609 517,999 (22,390) (4.3%)

Golden Ears Bridge 41,623 39,648 1,975 5.0%

Emissions Testing 12,047 12,846 (799) (6.2%)

Transfers from Other Governments 90,291 88,147 2,144 2.4%

Amortization of Deferred Concessionaire Credit 23,273 23,337 (64) (0.3%)

Interest Income 34,739 34,231 508 1.5%

Miscellaneous Revenue 5,576 2,042 3,534 173.1%

Gain (Loss) on Disposal of Assets 6,437 6,437

Total Revenue $ 1,453,752 $ 1,454,646 $ (894) (0.1%)

RevenuesTransLink revenue for 2014 was very close to budget; the unfavourable variance is due to lower transit revenues offset by a gain on property transaction which was expected to occur in 2013, and higher taxation and toll revenue.

TaxationFuel tax revenue in 2014 was $2.3 million (0.7 per cent) favourable to Budget, as a result of recent experience in retail prices and the USD/CAD exchange rate may have contributed to the higher volumes. However, the volatility of this revenue source continues to make it difficult to predict as deliveries of fuel within TransLinks region occur unevenly throughout each month.

Property and replacement tax revenue was $1.6 million (0.5 per cent) above the budgeted revenue of $322.9 million as rates are set annually to achieve the planned property tax with adjustments for expected changes to property values.

Parking rights tax was $4 million favourable at $60 million, as a result of parking rate increases.

Transit Transit revenues were $22.4 million (4.3 per cent) unfavourable to the budgeted revenue of $518 million, this is mainly attributable to ridership being lower than budgeted. The 2014 budget was developed with preliminary 2013 ridership numbers and actual 2013 ridership numbers were lower than what had been assumed in the budget. Ongoing analysis into the decline in ridership suggests that the 2013 fare increase had a longer lasting effect on ridership than expected. However, ridership estimates indicate that ridership is beginning to recover.

Golden Ears Bridge TollsTotal toll revenue for 2014 was $2 million (5 per cent) above budget as both the actual vehicle crossings and average toll rates were higher than expected. The higher average toll rate per crossing when compared with the budget was due to fewer customers signing up for the most discounted toll rates offered than budgeted. Customers who sign up for combined billing through the use of TI Corps TReO decal will be charged the most discounted toll rates.

Emission testingRevenues were $0.8 million unfavourable to budget due to fewer inspections. The AirCare program ended on December 31, 2014.

Miscellaneous revenuesRevenues were $3.5 million higher than budget, largely due to the Adjacent and Integrated Developments Program which supports developers and municipalities in creating transit oriented communities adjacent to TransLinks infrastructure.



CONSOLIDATED EXPENSES COMPARISON TO 2013 (BY SEGMENT) ($ thousands)

2013 Actual 2014 Actual Operating Expenses

Operating Expenses

Amortization & Interest1 Total

Operating Expenses

Amortization & Interest1 Total Change % Change

AirCare $ 16,163 $ $ 16,163 $ 15,806 $ $ 15,806 $ (357) (2.2%)

Bus Divison 618,802 133,129 751,931 633,170 130,967 764,137 14,368 2.3%

Corporate Operations 61,868 13,029 74,897 67,110 13,461 80,571 5,242 8.5%

Rail Division 240,690 95,678 336,368 255,623 89,667 345,290 14,933 6.2%

Roads & Bridges 93,465 97,804 191,269 83,627 98,447 182,074 (9,838) (10.5%)

Transit Police 30,599 25 30,624 34,334 24 34,358 3,735 12.2%

Sub Total Continuing Operations

1,061,587 339,665 1,401,252 1,089,670 332,566 1,422,236 28,083 2.6%

Corporate One-time 5,548 5,548 4,642 4,642 (906) (16.3%)

Total Expenses $ 1,067,135 $ 339,665 $ 1,406,800 $ 1,094,312 $ 332,566 $ 1,426,878 $ 27,177 2.5%1 Interest and Amortization shown separately to facilitate analysis

Operating expenses for 2014 were up $27.2 million (2.5 per cent) from 2013 driven mainly by the Bus and Rail Division. Transit costs were driven by service delivery, contractual labour increases, maintenance and repair costs, and higher prices for diesel, hydro and Canada Line performance payments. Partly offsetting this was lower capital infrastructure contributions to the Major Road Network in the Roads and Bridges division.

Bus divisionOperating expenditures are $14.4 million (2.3 per cent) higher than 2013. Service levels are slightly higher in 2014 mainly due to the full year impact of the King George B-Line service launched in September 2013 along with other scheduling adjustments and service improvements. Labour and other contractual and economic increases were partially offset by ongoing savings from cost-efficiency initiatives implemented in late 2013. Fuel costs were higher due to increased diesel prices while insurance was lower. Maintenance materials were higher in 2014 due to increased major repairs on engines and trolley batteries, inflation, U.S. exchange rate and inventory adjustments.

CMBC has undertaken scheduling efficiency and service optimization initiatives to improve bus service productivity, including reducing non-revenue hours and converting some service to lower-cost fleet vehicles. CMBC has also implemented cost-efficiency initiatives to reduce or eliminate administrative costs and manage workforce levels. CMBC has also decreased the number of spare buses by not replacing retired fleet, which reduces maintenance-related costs. Energy efficiencies include undertaking a very successful vehicle idling reduction program to reduce fuel consumption, with annual savings of $720,000 and implementing a PowerSmart energy efficiency program with initiatives to reduce facility lighting and heating utility costs by over five per cent.

These initiatives have created operating savings of over $25 million in 2013 and 2014, contributing to the 48 million in cost savings efficiencies plus additional savings due to the timing of capital investments, debt servicing costs, and other operational requirements.

CorporateOngoing corporate expenses were $5.2 million (8.5 per cent) higher in 2014. The increase is due to contractual labour increases, five IT positions transferred from the rail division, higher computers and systems costs due to new software licenses ($1.3 million), additional network data link costs ($0.6 million), and contract services related to the Compass system.

Corporate one-time expenses were $0.9 million (16.3 per cent) lower in 2014. One-time expenses in 2014 included $3 million for Compass and $1.5 million related to the development of the Mayors Vision.


Rail divisionTotal 2014 operating costs, including the write-down of tangible capital assets, were $14.9 million (6.2 per cent) higher than 2013. This increase is a result of additional escalator and other state of good repair costs, higher staffing levels, increases to the ratified collective agreement, and overtime costs, particularly overtime associated with increased front-line staffing levels in the latter part of 2014 to ensure staff readiness to evacuate trains and close SkyTrain stations in the event of an emergency shutdown, additional costs related to new West Coast Express operating crews, and increased contractual rates for Canada Line, diesel and hydro costs.

Roads and bridgesSpending in 2014 was $9.8 million (10.5 per cent) lower than 2013, mainly due to lower capital infrastructure contributions being provided to municipalities in the year and lower spending on feasibility studies. Some capital infrastructure contributions have a four-year period in which they can be spent resulting in varying contributions year over year. In addition, a re-organization within the Engineering division has resulted in lower staffing levels allocated to the roads and bridges area in 2014.

Transit PoliceExpenses were up $3.7 million (12.2 per cent) from last year, mainly due to the signing of a collective agreement going back to 2011 and filling vacant positions. The new collective agreement will result in annual savings of $0.8 million in benefit costs from the elimination of some benefits. Offsetting this increase is lower overtime costs, maintenance and material costs due to deferral of the purchase of police equipment in 2014, professional and legal costs due to less legal costs for the indemnification of police officers and administration costs.

CONSOLIDATED EXPENSES COMPARISON TO BUDGET (BY SEGMENT)($ thousands)

2014 Actual 2014 Budget Operating Expenses

Operating Expenses

Amortization & Interest1 Total

Operating Expenses

Amortization & Interest1 Total Fav./(Unfav.) % Change

AirCare $ 15,806 $ $ 15,806 $ 16,859 $ $ 16,859 $ 1,053 6.2%

Bus Divison 633,170 130,967 764,137 641,132 144,308 785,440 7,962 1.2%

Corporate Operations 67,110 13,461 80,571 74,889 10,836 85,725 7,779 10.4%

Rail Division 255,623 89,667 345,290 256,298 92,591 348,889 675 0.3%

Roads & Bridges 83,627 98,447 182,074 110,285 100,684 210,969 26,658 24.2%

Transit Police 34,334 24 34,358 32,181 25 32,206 (2,153) (6.7%)

Sub Total Continuing Operations

1,089,670 332,566 1,422,236 1,131,644 348,444 1,480,088 41,974 3.7%

Corporate One-time 4,642 4,642 26,457 26,457 21,815 82.5%

Total Expenses $ 1,094,312 $ 332,566 $ 1,426,878 $ 1,158,101 $ 348,444 $ 1,506,545 $ 63,789 5.5%1 Interest and Amortization shown separately to facilitate analysis

Operating expenses for 2014 were $63.8 million (5.5 per cent) lower than budget. $20.7 million of this was due to the timing of capital infrastructure contributions for the Major Road Network, $17.5 million was due to timing of Compass implementation and $12.4 million was related to unused contingency funds.



Bus divisionOperating expenditures were $8.0 million (1.2 per cent) favourable to budget. Labour costs were unfavourable due to higher than planned overtime, operator sick leave, higher employee future benefits and contract settlements, partially offset by savings from temporary staff vacancies and additional external wage recoveries. Operator overtime was higher due to coverage for attendees at Compass training and resources used in acting programs for supervisory and support positions. Fuel and insurance costs were favourable due to fewer service kilometres and lower diesel prices and vehicle insurance rates. The professional and legal favourable variance was primarily due to the delayed implementation of planned activities. Fare media costs were favourable due to the timing of Compass implementation. The 2014 budget incorporated the financial impacts of all the efficiency initiatives and workforce adjustments implemented in 2012 and 2013.

CorporateOngoing corporate expenses in 2014 were $7.8 million (10.4 per cent) lower than budget. Compass operations related costs were $9.8 million lower than budget due to the timing of the implementation schedule. Computer software and licenses, network data link and phone systems were over budget in 2014. Commissioner costs were eliminated in 2014 as this function was transferred to the Mayors Council.

Corporate one-time expenses were $21.8 million (82.5 per cent) lower than budget in 2014. Unused contingency accounted for $12.4 million of the favourable variance while Compass one-time costs were $8.0 million favourable due to the timing of project implementation.

Rail division2014 operating costs were $0.7 million (0.3 per cent) lower than budget. The favourable variance was primarily from favourable property insurance rates, the transfer of fare collection costs to TransLink, a retroactive credit on CP Rail land leases, lower than budgeted inflationary increases on Canada Line performance payments and the timing of the fare gate project. These variances were offset by increases related to the ratified collective agreement and the corresponding retroactive payments, additional overtime, including that related to additional staffing from August to December to ensure staff readiness to act should an emergency shutdown recur, additional state of good repair costs, particularly related to escalator repairs, costs to mobilize and train new crews to operate West Coast Express trains.

Roads and bridgesExpenses in 2014 were under budget by $26.7 million (24.2 per cent) mainly due to $20.7 million less in capital infrastructure contributions to the municipalities due to project timing delays. In addition, there was a $4 million operations and maintenance amount budgeted which was transferred to the capital budget at the request of the municipalities. There was also lower than budgeted spending on feasibility studies.

Transit Police2014 costs were $2.2 million (6.7 per cent) unfavourable for the year mainly due to the signing of a collective agreement going back to 2011. Excluding the impact of the collective agreement there would have been a favourable variance due to lower lease and radio communication equipment costs.


CONSOLIDATED EXPENSES COMPARISON TO 2013 (BY CATEGORY)($ thousands)

2013 Actual 2014 Actual Ongoing Expenses

Ongoing Expenses

One-Time Expenses1 Total

Ongoing Expenses

One-Time Expenses1 Total Change % Change

Administration $ 24,680 $ 3,553 $ 28,233 $ 27,857 $ 3,073 $ 30,930 $ 3,177 12.9%

Amortization of capital assets 166,783 166,783 161,472 161,472 (5,311) (3.2%)

Capital infrastructure contributions 52,432 52,432 43,953 43,953 (8,479) (16.2%)

Contracted services 203,557 203,557 212,119 212,119 8,562 4.2%

Fuel and power 68,815 68,815 70,216 70,216 1,401 2.0%

Insurance 17,461 17,461 18,727 18,727 1,266 7.3%

Interest 172,882 172,882 171,094 171,094 (1,788) (1.0%)

Maintenance, materials and utilities 102,147 351 102,498 113,167 72 113,239 11,020 10.8%

Professional and legal 13,753 1,350 15,103 12,049 1,272 13,321 (1,704) (12.4%)

Rentals, leases and property tax 45,830 45,830 40,130 71 40,201 (5,700) (12.4%)

Salaries, wages and benefits 530,970 294 531,264 551,452 154 551,606 20,482 3.9%

Write-down of tangible capital assets

1,942 1,942 (1,942) (100.0%)

Total Expenses $ 1,401,252 $ 5,548 $ 1,406,800 $ 1,422,236 $ 4,642 $ 1,426,878 $ 20,984 1.5%1 One-time expenses shown separately to facilitate analysis

Variances for ongoing expenses are provided below and include AirCare operations.

AdministrationAdministration expenses increased $3.2 million (12.9 per cent) over the prior year mainly due to increases in computers and systems costs.

Amortization of capital assetsAmortization expense decreased by $5.3 million (3.2 per cent) compared to the prior year mainly due to the accelerated amortization of ticket vending machines in 2013.

Capital infrastructure contributionsCapital infrastructure expenses were $8.5 million (16.2 per cent) lower in 2014 due to the timing of when municipalities schedule and complete the work along the Major Road Network. Some contributions have a four-year timeline for the work to be completed.

Contracted servicesContracted services were $8.6 million (4.2 per cent) higher in 2014. These include: contractual increases for Canada Line, additional expenses for the mobilization of a new train crew for West Coast Express and contracted bus service and Compass operations.

Maintenance, materials and utilitiesMaintenance, materials and utilities increased by $11 million (10.8 per cent) over 2013, mainly due to increased major repairs on buses, escalator repairs and other state of good repair activities at the Rail division.



Rentals, leases and property taxRentals, leases and property taxes are $5.7 million (12.4 per cent) lower in 2014 as the 2013 costs included a provision for the Gateway sublease.

Salaries, wages and benefitsSalaries, wages and benefits were $20.5 million (3.9 per cent) higher than 2013 due to contractual increases and additional positions within the Rail division to improve SkyTrain resiliency.

CHANGES IN FINANCIAL POSITION

Financial Assets As at December 31, 2014($ thousands) Actual 2013 Actual 2014 Change %

Accounts receivable $ 97,103 $ 102,644 $ 5,541 5.7%

Restricted cash and investments 420,681 361,509 (59,172) (14.1%)

Investments 83,787 147,717 63,930 76.3%

Assets held for sale 14,164 4,868 (9,296) (65.6%)

Debt reserve deposits 39,677 36,104 (3,573) (9.0%)

Accounts receivable increased $5.5 million primarily due to a combination of BC Bus Pass receivables and Golden Ears Bridge tolls.

Restricted cash and investments represent unspent government transfers, self-administered sinking funds and funds set aside to pay off the Municipal Financing Authority (MFA) debt. The decrease of $59.2 million is primarily due to $44.4 million of capital purchases funded by the federal gas tax program and $34.2 million used to pay off MFA debt offset by an increase of $19.4 million in self-administered sinking funds.

Investments increased by $63.9 million primarily due to cash being invested in short-term term deposits and money market instruments.

The net change in the asset held for sale of $9.3 million represents the disposal of a real estate property, offset by one additional real estate property held for sale.

During the year $4.7 million of debt reserve deposits were refunded upon a portion of the MFA debt being repaid offset by $1.1 million of interest earned on the deposits.

Liabilities As at December 31, 2014($ thousands) Actual 2013 Actual 2014 Change %

Accounts payable and accrued liabilities $ 235,987 $ 234,446 $ (1,541) (0.7%)

Debt 2,043,949 2,045,356 1,407 0.1%

Deferred government transfer 1,238,101 1,201,165 (36,936) (3.0%)

Golden Ears Bridge contractor liability 1,045,059 1,051,375 6,316 0.6%

Deferred concessionaire credits 618,942 595,669 (23,273) (3.8%)

Employee future benefits 89,082 99,875 10,793 12.1%

Deferred lease inducements 12,984 13,021 37 0.3%


The net decrease in deferred government transfers of $36.9 million is primarily due to revenue recognized of $70.3 million offset by the receipts of $28.9 million of Build Canada Funding and $4.4 million of interest earned.

The Golden Ears Bridge contractor liability increased, as interest expense exceeds the payments in early years. The liability is set up so that principal payments commence during 2015.

Deferred concessionaire credits represent the funding provided by the Canada Line Concessionaire. This balance is amortized to income on a straight-line basis over the operating term of the concessionaire agreement, which will expire in July 2040.

Employee future benefits, which represent post-retirement and post-employment benefits, has increased by $10.8 million primarily due to the estimated current service cost and related interest. The post-retirement portion of this liability will draw down upon retirement of the employees.

Non-financial assets As at December 31, 2014($ thousands) Actual 2013 Actual 2014 Change %

Tangible capital assets $ 4,451,189 $ 4,511,992 $ 60,803 1.4%

Supplies inventory 46,869 51,266 4,397 9.4%

Prepaid expenses 9,315

Documents

Translink 2014 Annual Report