The Provincial government signed a memorandum of understanding with the cities back in September in which everyone agreed that, among other things, there would be (from Section F.3.c):
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Potential new and innovative revenue sources that will shape transportation choices in favour of transit, cycling and walking, as well as greenhouse gas emission reductions.
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...and then Translink turned right around and asked for more property taxes. Property taxes in no way encourage transit use. The current funding deadline is the last bit of leverage the mayors have, there's no way they should squander it by voting "yes".
I'd be pretty surprised if the Federal funding couldn't be resurrected again once the Provincial government steps up to the plate with it's promise of new funding options.