We met with Wade Coombs, Director of Transit for Strathcona County and Chair of CUTA’s Small Systems Committee, to discuss the unique challenges faced by small and medium-sized transit systems. Our discussion touches on funding hurdles, the impact of the Canadian Public Transit Fund (CPTF), emerging trends in transit, and the importance of stakeholder collaboration. With a strong commitment to enhancing public transportation, Wade sheds light on the need for comprehensive urban transportation policies and the future of transit in Canada

Q: Can you tell us about your role as Chair of the Small Systems Committee?

The committee was formed just over a year ago to provide solutions for the unique needs of small and medium systems, legislative or otherwise. It offers opportunities for knowledge-sharing, networking, and the distribution of resources created by CUTA or individual members. We want to provide a voice for small and medium-sized systems and have a positive and meaningful impact.

The robust in-person attendance for our committee meeting at CUTA’s 2024 Spring Summit in Halifax demonstrated to me that there is strong demand from our members for this committee, which I found highly encouraging for our work moving forward.

Q: What do you think are the biggest funding challenges facing small and medium-sized transit systems that differ from large transit systems?

The truth is that transit services are expensive, whether they’re being delivered in a major urban centre, suburb, or rural area. For smaller systems it is arguably more difficult to recover costs from farebox revenues, which can often lead to more strained operations.

I believe that the public transit industry is at a pivotal moment right now, especially due to demands for zero-emission transitions while the bus manufacturer market is continuing to shrink. This can create immense pressure on systems’ finances and technical resources, and the question needs to be asked: How can we fund this transition?

Staffing needs are also raised by this transition, with new skills and training required to maintain and operate these new technologies. In a tight labour market, this growing demand for skilled and specialized workers puts even more pressure on systems transitioning their fleets, both large and small. I will note though that the value of the large systems in helping raise awareness of these issues that are often shared concerns for their smaller counterparts is immensely important. They, alongside groups like CUTA, have the resources and ability to draw attention to the problems facing the industry and help initiate conversations with key stakeholders like governments who can legislate industry-wide solutions.

Q: How do you envision the Canadian Public Transit Fund (CPTF) fund impacting small and medium-sized systems specifically?

This program can be a lifeline for all transit systems, regardless of size. The reliable and predictable nature of this funding will help systems with long-term planning, which will be essential to many smaller communities that are experiencing rapid growth and in turn greater demand for transit services.

While a system like Edmonton Transit Service that typically needs to replace 20-100 buses in its fleet annually could use part of its CPTF funding for these costs, smaller systems with less than 100 buses in their entire fleet can do the same, just at a smaller scale. These systems can also use this funding to implement or enhance different services that many of their larger counterparts have had for some time, like accessibility enhancements that will provide higher-quality transit services for underserved groups.
Governments are recognizing the realities and challenges related to the pace of zero-emission transitions. Another helpful use of this funding could be in advancing ZEB transition efforts to meet some of the government-mandated timelines over the course of a 5 to 10-year period. The costs associated with these expenditures are typically quite high and can be comparatively or prohibitively expensive for smaller systems with lower farebox revenue recovery rates and municipal funding resources. This dedicated funding can be critical for these important and mandated pursuits.

Other important components of the CPTF program include the fact that there is no requirement that we know of for provincial support to access funding for the baseline and direct application streams. This differs from its ICIP predecessor and presents a comparably more even-level playing field for systems of all sizes across the country in accessing and securing these federal dollars.

Q: The CPTF program is set to come online in 2026. Until then, infrastructure funding gaps for public transit systems continue to be a significant issue. What strategies can be employed to bridge these gaps?

Significant costs remain associated with fleet transitions, and more support from provincial governments is needed to facilitate these transitions beyond merely offsetting the expenses. Many provinces, especially smaller ones need to recognize their role in resolving the twin challenges of energy transitions and budgetary shortfalls caused by associated expenditures.
Short-term solutions to funding gaps do exist, and some municipalities are being forced to use their municipal reserves to fund these shortfalls. Fare increases are also an option, but it is not a solution that can or should be routinely utilized, especially in this post-COVID climate where a lot of people and communities are dealing with affordability issues.

The big challenge for most systems dealing with funding gaps (which is a sizeable number of agencies) is the need to manage their costs while ensuring that their actions do not impact the most vulnerable populations. There are plenty of case studies that demonstrate how permanent subsidized transit programs, whether they are fully or partially subsidized, create these extremely positive social and economic outcomes.

Q: What emerging trends do you see for small and medium-sized systems?

The hybrid or work-from-home environment has spurred migration to smaller communities where housing and general cost of living are more affordable than in big cities.

This rapid growth has caused many of these small and medium-sized communities to experience significant changes. Across PEI, the whole province is changing rapidly and even the cost of housing there has risen dramatically over the past couple of years, just like it has in many other small provinces and municipalities. This is creating increased demand for affordable public transit in these smaller but rapidly growing communities.

Q: How do you envision the role of small and medium-sized transit systems in the broader context of advocacy for national transit policy and infrastructure development?

Due to the rapid growth of communities and the increasing cost of living, especially in areas that were once relatively affordable, the role of transit in enhancing affordability is key. Our smaller transit systems can provide key insights. Moving forward, our advocacy efforts will emphasize how transit can contribute to cost savings for users and influence housing supply and costs. Identifying and framing these messages effectively will be essential.

Q: Could you please speak to what role partnerships with local governments, businesses, and community organizations can play in the success of small and medium-sized transit systems?

I view the relationship between those groups as interconnected. Local governments that provide public services already present an opportunity for businesses to collaborate to meet shared needs.

Think of a large manufacturer or warehouse in an industrial complex that employs a lot of workers that require their physical presence. It is in these companies’ interests to ensure their employees can get to and from their workplace and can partner with a local government to provide those transportation services. Many companies already do this in some way or another, whether it be through agreements with transit agencies and their municipal governments to offer transit passes or providing dedicated specialized service to those areas like industrial parks at certain hours.

Community groups also play an important role because they understand the local issues at a grassroots level and are often tuned into the needs and pressures facing a community and its residents. So, seeking their input is paramount for local governments and transit agencies working to provide and address those needs when they can, like affordability challenges or public safety concerns.
I’ve always believed that it is a team effort. In my opinion, broad and extensive collaboration will routinely produce the best outcomes.