City of Fort Worth Budget Work Session Transportation Funding Discussion August 25 th 2016

Transcription

1 City of Fort Worth Budget Work Session Transportation Funding Discussion August 25 th 2016

2 Purpose History of funding and previous studies for transportation Current Transportation Funding Structure Transportation Utility Concept Transportation Expenditure History Current Street Funding Transportation Gap Path Forward 2

3 Strategic Challenges and Opportunities Education & Workforce Development Leadership & Engagement Effective Resource Management City Service Delivery Financial Stability Significant Strategic Challenges & Opportunities Sustainable Growth Public Infrastructure Housing Transportation 3

4 Some History 2010 Blue Ribbon Task Force (BRTF) on Infrastructure Funding Held 9 meetings over the course of 12 weeks Studied transportation needs and potential funding options, including effects on citizens and economic development Received input from financial, legal and technical experts as well as other municipalities Unanimously agreed to 5 Year Local Transportation Funding Plan Bob Herchert Chair Vann Cunningham Jeff Davis Carlos Flores Susan Halsey Russell Laughlin John Maddux Andre McEwing Lee Nicol Nina Petty Vernell Sturns 4

5 General Conclusions 2010 BRTF City must substantially increase annual investment in transportation Investment in transportation is essential to economic development Combination of funding sources is required to mitigate the current serious underfunding of transportation Funding plan must be published annually and evaluated for effectiveness every five years with input from the community 5

6 Recommendation: Transportation Utility Create a Transportation Utility composed of the following 3 components: Transportation Impact Fee Property tax allocation for transportation Transportation Service Charge Other CIP Funding added One Time Gas Well Capital Funding 6

7 Transportation Impact Fees 2008 percentage of maximum assessable fee charged: 36% for residential uses ($2,000 smoothed) Average of 27% for nonresidential land uses (varies) 2013 study update maximum percentage of accessible fee: 24% for residential uses Average of 18% for nonresidential 7

8 MILLIONS $16 $14 Annual Transportation Impact Fee Revenue $13.99 TOTAL REVENUE $12 $10 $8 $6 $5.65 $5.06 $5.45 $7.56 $12.33 $4 $2 $2.71 $ FISCAL YEAR Actual Projection 8

9 Current Tax Rate Allocations Overall $ O&M $ Debt $ Operations $ Capital $

10 FY 2017 Recommended Property Tax Rate Allocations Overall $ O&M $ Debt $ Operations $ Capital $

11 Current Street Funding Structure 11

12 Street Debt Programs (Millions) $49.3 Million/year $1.11 Billion 40 years $27.75 Million/year 12

13 Street & Traffic Annual Spend Operating & PayGo General Fund $60 $50 FY 2017 $44.2M Total $23.1M PayGo $40 $30 $20 $10 $ FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Street O&M Street PayGo Traffic O&M Traffic PayGo

14 Street Network Lane Miles Lane Miles End of Calendar Year 14

15 8000 7,292 Street Network Condition (August 2016) 7,326 7,335 7,330 7,383 7,403 7,434 7, Lane Miles Excellent Good Fair 2189 Poor Sept Dec Dec Dec *Dec *Aug Sept Aug *Data based on last field survey of existing streets in May, 2013 (updates including: streets reconstruction (CIP), rehabilitation, and new Streets ) 15

16 Street Condition by Council District Council District Poor Condition (Lane Miles) Fair Condition (Lane Miles)

17 Street & Traffic Infrastructure Needs Defining the Gap 10 Year Program Street Rehabilitation $550M Fair Streets 1238 Lane miles $310M Poor Streets 239 Lane miles $240M Traffic Rehabilitation $355M Signals, Street Lights, Sidewalks, RR Crossings, Intersections, Schools, Pavement Markings New Capacity Improvements $850M Candidate projects 2018 Bond Total - $1.76 Billion 17

18 Street & Traffic Infrastructure The 10 Year GAP GAP $1.76B 18

19 Transportation Revenue Sources 10 Year Program Revenue Source Annual PayGo Capital Annual Amount $27.3M Debt Programs $69M Transportation Impact Fees $13M Potential Transportation Service Charge $59M

20 Closing the 10 Year Funding Gap (Billions) $1.76B GAP $1.68B Revenue Service Charge Debt Programs Impact Fees PayGo Capital

21 Transportation Service Charge 21

22 Transportation Service Charge Monthly fee based on trips generated by land use These table reflects example fees If pursued, these fees would need to be calculated to generate an estimated annual c.$55 $70M needed Would be collected monthly with the water bill Would be a dedicated funding source for annual roadway maintenance Land Use Single-Family Residential Estimated Fee / Month $8.22 Multi-Family Residential $7.21 Office / 1000 square feet Retail/Commercial / 1000 square feet Dining / 1000 square feet Industrial / 1000 square feet Institutional / 1000 square feet *Table above contains approximations that will need to be recalculated upon further evaluation. $8.09 $10.75 $10.96 $3.40 $

23 Transportation Service Charge To be collected via monthly water bill Task Force strongly recommended that feeschedule remain constant for five years 23

24 Transportation Service Charge Dedicated to street capacity deficiencies, optimal street maintenance, and traffic signal and intersection improvements Tied to a published annual CIP program of roadway improvements 24

25 Transportation Service Charge Similar programs in place in Austin, Corpus Christi, and Bryan, Texas Exemptions for applicants who do not own a vehicle, parking lots, vacant property, institutions of higher learning, and state facilities 22

26 5-YEAR RECOMMENDATIONS Based on a 20-year vision to: Match service provided in other cities in Texas and throughout the US, scaled to Fort Worth Expand service throughout most of the county Develop premium services in high demand areas 26

27 ORDER OF MAGNITUDE COSTS Annual Operating Costs (millions) Total Capital Costs (millions) Frequent Transit Network $172.2 $743.2 Bus Rapid Transit $25.6 $437.3 Rapid Bus $99.0 $222.3 Frequent Peak Local $47.6 $83.6 More Frequent Service for Longer Hours $21.0 $29.8 New Local Services $82.3 $161.7 Express Bus Service $9.3 $47.0 Streetcar/Core Area Shuttles $12.5 $686.1 Additional TRE and TEX Rail Service $ TEX Rail Southwest Extension $11.3 $276.0 Outlying Transit Hubs - $5.5 Park-and-Ride Lots - $22.5 Better Transit Facilities - $20.0 First-Mile/Last-Mile Connections $13.7 $146.0 Paratransit Service $89.3 $57.1 Total $460.7 $2,194.9 All costs in 2015 dollars. 27

28 Local Transportation/Transit Funding Existing Sources Debt (bonds/cos) O&M (Pay/Go) Transportation Impact Fees Uses Streets: new, reconstruction Streets: maintenance New arterials only Potential Source Uses Transportation Service Charge Streets: maintenance, other Federal and State Grants Arterials, Bridges, Transit

29 What is Next? Update of the Development Cost and Transportation Infrastructure Funding Study 2009 (Willdan Study) To be completed by December 2016 Complete the North Fort Worth Transportation Advisory Task Force Recommendations November 2016 Impact Fee Study Update Mid

30 Pathways Forward Complete needed studies Evaluate alternative funding methods Sales tax changes Reallocate existing ad valorem Identify other potential new revenue streams Discuss whether to move forward with a Transportation Service Charge study Review options for Transit Funding Policy Discussion at the February Council Retreat 30