Document

Report
Funding Options and Cost Saving Strategies
for Restoration of Funding for
Transportation Capital Projects
BCC Public Workshop
November 12, 2013
Updated for March 20, 2014 Mobility Fee Update
Advisory Committee Meeting
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2012 Citizen Survey Results and Proposed 2014 Citizen Survey
Capital Plan Impact Recap
Revenue Options
 Road and Bridge (Ad Valorem) Millage
 Road and Bridge Municipal Service Taxing Unit (MSTU) Millage
 Road and Bridge Municipal Service Benefit Unit (MSBU)/Non-Ad
Valorem Assessment
 Second Local Option Gas Tax
 Real Estate Transfer Tax
 Tolling Options
 Regional Transportation System Surtax (Sales Tax)
Cost Saving Strategies
 Reallocate Tax Increment Revenue
 Eliminate Paving Assessment Discount
 Reduce Maintenance Level of Service in Certain Geographic Areas
 Prioritize Land Uses for Mobility Fee Buy-down
Staff’s Recommended Options and Strategies
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Priorities for
Transportation Investment
(Highest to Lowest):
1. Local Roads
2. Highways
3. Pedestrian Facilities
(Sidewalks and Trails)
4. Transit (Buses)
3
Priorities for Improving
Transportation Infrastructure:
1.
Repave/Resurface the
Roads we have
2.
Improve Traffic Signal
Timing and Intersections
to provide better traffic
flow
3.
Build/Improve
Sidewalks, Trails and
Bicycle Facilities
4.
Build New or Wider
Roads
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1.
2.
3.
4.
5.
6.
7.
8.
Funding Options for
Transportation:
Increase Impact Fees
Earmark Existing Property
Taxes (Tax Increment)
No New Fees or Taxes
Special Assessment-MSBU
and PVAS
Increase Property Tax
Increase Vehicle
Registration Fees
Build Toll Roads
Increase Gas Tax
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As a result of the reallocation of Gas Tax Revenue from the Capital Plan
to increase Levels of Service for operation and maintenance needs,
$5 million will be lost per year in funding for Transportation Capital Projects.
14 Projects Affected in 15-Year Transportation CIP
 1 project delayed in 5-Year CIP
 3 projects moved from 5-Year CIP to 15-Year CIP
 5 projects delayed in 15-Year CIP
 5 projects removed from 15-Year CIP
(Total of $151 million; $55 million was funded by gas taxes)
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Projects Delayed in 5-Year CIP
 Bell Lake Road from US 41 to Alpine
Road (CST from 2015 to 2017)
Projects Moved from 5-Year CIP
to 15-Year CIP
CR 54 from SR 54/56 to Progress
Parkway (ROW spans 5 years vs. 1 year
DeCubellis Road Phase II from west of
Starkey Blvd to south of Town Center
Road (CST from 2016 to 2020)
Starkey Blvd from River Crossing Blvd
to DeCubellis Road (CST from 2018 to
2020)
Projects Delayed in 15-Year CIP
DeCubellis Road Phase III from Little
Road to Starkey Blvd (CST from 2019 to
2021)
Moon Lake Road from DeCubellis Road
to SR 52 (CST from 2021 to 2026)
Trinity Blvd from Little Road to SR 54
(CST from 2022 to 2024)
Projects Delayed in 15-Year CIP (cont.)
 Zephyrhills Bypass Extension Phase III
from west of River Glen Blvd to
Handcart Road (CST from 2023 to
2027)
 Zephyrhills Bypass Extension Phase IV
from east of Handcart Road to west
of Dean Dairy Road (CST from 2025
to 2028)
Projects Moved out of 15-Year CIP
Chancey Parkway Phase 2 from Fox
Ridge to Morris Bridge Road
Collier Parkway Phase 3 from Parkway
Blvd to Ehren Cutoff
County Line Road North (CR 578) from
East Road to Springtime Street
Ridge Road Extension Phase 2 from
Suncoast Parkway to US 41
Twenty Mile Level Road from SR 54 to
Collier Parkway
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 Road
and Bridge (Ad Valorem) Millage
 Road and Bridge Municipal Service Taxing Unit
(MSTU) Millage
 Road and Bridge Municipal Service Benefit Unit
(MSBU)/Non-Ad Valorem Assessment
 Second Local Option Gas Tax
 Real Estate Transfer Tax
 Tolling Options
 Regional Transportation System Surtax (Sales Tax)
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All of these options include an option to eliminate the
$3.5 million subsidy from the Half-Cent Sales Tax
revenue in the General Fund to the Road and Bridge
Fund.
 This is consistent with the recommendation by ULI to
free up revenue for Parks, Libraries, and Cultural
Resource funding.
 These options are being presented in the order of
easiest to more difficult to implement.

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Same as increasing General Fund millage
 Counts toward County’s 10 mil cap
 Assessed in cities; no requirement to share with cities
 Homestead and Save Our Homes Exemptions /
Limitations apply

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Revenue
General
Fund
Millage
Votes
Needed
Current Millage
$142.0m
7.3441
3
$453.03
Replace Capital
Subsidy
$5.0m
0.2722
3
$13.61
$147.0m
7.6163
3
$466.64
$3.5m
0.1905
3
$9.53
$150.5m
7.8068
3
$476.17
$8.5m
0.4627
3
$23.14
Subtotal
Replace General Fund
Subsidy
Subtotal
Difference from
Current Millage
1.
Annual Cost
per
Homeowner 1
Based on a home with an appraised value of $100,000 and a taxable value of
$50,000 ($50,000 homestead exemption)
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New tax
 Similar to Fire Municipal Service Taxing Unit (MSTU)
 Not assessed in cities unless cities’ consent
 Does not count toward County’s 10 mil cap
 Homestead and Save Our Homes Exemptions /
Limitations apply

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Revenue
R&B
MSTU
Millage
Votes
Needed
Replace Capital Subsidy
$5.0m
0.2976
3
$14.88
Replace General Fund
Subsidy
$3.5m
0.2083
3
$10.42
Total
$8.5m
0.4627
3
$25.30
1.
Annual Cost
per
Homeowner 1
Based on a home with an appraised value of $100,000 and a taxable value of
$50,000 ($50,000 homestead exemption)
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Similar to Stormwater or Solid Waste Assessment
 Higher amounts for non-residential based on trip
generation
 Requires study to establish benefit and equitable
apportionment
 Not assessed in cities without their consent
 Does not count toward any millage cap or limitation
 Homestead and Save Our Homes Exemptions/Limitations
do not apply
 Can’t collect revenue until FY 2016; however, can count
on revenue source in mobility fee update

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Revenue
Assessment
Per ERU
Votes
Needed
Replace Capital Subsidy
$5.0m
$20.58
3
Replace General Fund Subsidy
$3.5m
$14.41
3
Total
$8.5m
$34.99
3
15
Revenue
Pennies
Votes
Needed
Annual Cost
per Driver 1
Replace Capital Subsidy
$5.0m
3¢
4
$22.50
Replace General Fund
Subsidy
$3.5m
2¢
4
$15.00
Total
$8.5m
5¢
4
$37.50
User Fee
 5 cents recommended by ULI Panel
 Assessed in cities and must be shared with cities

1.
◦
Based on driving 15,000 miles per year at 20 miles per gallon (Multiply by # of
Drivers to find household impact)
Assumes gas stations will pass all costs on to drivers despite evidence to the contrary.
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 Originated
from Pasco County Infrastructure
Committee
 Additional local option documentary stamp
tax for transportation and schools up to 45
cents per $100 of value
 Requires Legislative Action
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 Does
not tax anyone out of home; fee only
paid when home is sold (part of closing costs)
 Intent is to limit to capital expenditures to
help subsidize/reduce mobility fees and
school impact fees
 Would be assessed in cities, and could be
shared with cities
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Revenue
Fee
Votes
Needed
Cost per
Homeowner
Replace Capital Subsidy
$5.0m
$0.16
3
$164.79
Replace General Fund
Subsidy
$3.5m
$0.12
3
$115.36
Total
$8.5m
$0.28
3
$280.15
1.
1
Based on a home with a sale value of $100,000
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 County
has home rule tolling authority; can
contract with Turnpike Enterprise for collections
 Only a realistic option for certain new roadways,
such as Ridge Road Extension, S.R. 56 Extension,
Overpass Road, and Zephyrhills Bypass
 An average of $3.2 million annual surplus for
Ridge Road Extension can be used for other
projects
Based on a 30 year average
Will be several years before seeing a return on the
investment
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 May
require redesign of Ridge Road
 Other roadways would require
additional study, and possibly redesign
 Requires 3 votes
 Can free up mobility fee and gas tax
revenue for other roadways
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 For
County’s that are within a regional
transportation or transit authority
 Can levy up to 1 percent for
Transit capital and operations and maintenance
Roadway capital and operations and maintenance
No more than 25% used for non-transit uses
 May
share with the municipalities
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 Requires
majority vote of the electorate of the
County
 Staff currently plans to seek this revenue
source when Penny for Pasco expires in 2025,
and after referendums pass in Hillsborough
and/or Pinellas
Pinellas recommended 100% for transit
Hillsborough recommended 75% for transit and
25% for roadways
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Tax
Nontransit
Revenue
Generated
Transit
Revenue
Generated
Replace Capital
Subsidy
0.46%
$5.0m
$15.0m
Replace General Fund
Subsidy
0.32%
$3.5m
$10.5m
Total
0.79%
$8.5m
$25.5m
 1%
Surtax = $43.3 million
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Reallocate
Tax Increment Revenue
Eliminate Paving Assessment Discount
Reduce Maintenance Level of Service in
Certain Geographic Areas
Prioritize Land Uses for Mobility Fee Buy
Down
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$2.8m annually in planned Tax Increment revenue
could be reallocated from transit operations to the
Capital Plan
 Would adversely impact Transit Development Plan
just adopted by MPO and Board
 Would likely cause Urban Mobility Fees to increase,
because Urban Mobility Fee levels of service
assumed increased transit service
 Contrary to ULI recommendation to spend 5% of
transportation revenue on transit

Currently spend 8.4% on transit
If funds are reallocated, that percentage would decrease to
1.6%
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 Total
Amount Billed in PVAS Program: $35,754,612
 Total
Amount of Discount Provided: $3,486,647
 Average
Annual Amount of Discount per Year:
$387,405
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Rural Market Area
Total Number of Miles Maintained: 256.01
 Paved Miles = 213.71
 Unpaved Miles = 42.3
Assumptions
1. $5m of Gas Tax Restores LOS to 2008 Levels
2. Rural Market Area comprises an estimated 14% of
Total County Miles Maintained
3. Preliminary Estimate Cost Savings of Not Restoring
LOS in Rural Market Area to 2008 Levels is $705,000
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
Many factors will affect exact amount of mobility fees
in 2014 update, such as construction costs, right-ofway acquisition costs, and growth rates

Impossible to predict exact rates of mobility fees until
update complete

Can prioritize now which land uses and areas should
have the highest and lowest priorities for buy-down if
limited funds are available
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
Staff created 3 Tiers of Land Uses
 Tier 1-Attempt to keep fees the same or lower than the
existing fees
 Tier 2-Attempt to keep fees the same as existing fees, to the
extent funds are available
 Tier 3-Allow fees to increase
New revenue sources discussed earlier would allow
more Tier 1 and Tier 2 land uses to be bought down
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Tier 1:
1. West and South Market Area (“Urban Area”) Office*,
Industrial, and Transit Oriented Development (TOD)
2. West Market Area Redevelopment (demolitions or
rehabilitation of existing West Market Area buildings, or
designated brownfield areas)
3. Traditional Neighborhood Development approved under
TND Ordinance (TND)
4. Hotel/Lodging in Urban Area
*Office less than 10,000 square feet in size would be treated
with same priority as retail, unless the user is a target industry
that qualifies for job creation incentives – [Note: BOCC rejected
this idea]
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Tier 1 (cont’d):
5. Those portions of a Mixed Use Trip Reduction Measure
(MUTRM) project that have been constructed in
conformance with the MUTRM urban form
requirements*
*MUTRM measures are (1) adequate jobs to housing ratios, (2)
locally serving retail, (3) complete bicycle/pedestrian network,
and (4) intersection density/grid
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Tier 2:
1.
2.
3.
4.
5.
Suburban Area Office* and Industrial
Suburban Area Hotel/Lodging
Rural Area Office* and Industrial
Rural Area Hotel/Lodging
Retail/Institutional/Recreational (unless it is West
Market redevelopment, which is in Tier 1) in Urban
Area (Non-TND/MUTRM)
6. Residential in Urban Area (Non-TND/MUTRM)
*Office less than 10,000 square feet in size would be treated
with the same priority as retail, unless the user is a target
industry that qualifies for job creation incentives [Note: BOCC
rejected this idea]
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Tier 3:
1. Retail/Institutional/Recreational in Suburban Area
(Non-TND/MUTRM)
2. Retail/Institutional/Recreational in Rural Area (NonTND/MUTRM)
3. Residential in Suburban Area (Non-TND/MUTRM)
4. Residential in Rural Area (Non-TND/MUTRM)
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Revenue Options (Priority Order):
1. Increase Road and Bridge (Ad-Valorem) Millage
[Note: BOCC tentatively allowed staff to explore further]
2. Second Local Option Gas Tax (ULI Support)
[Note: BOCC tentatively allowed staff to explore further]
3. MSBU/Non-Ad Valorem Assessment
4. Municipal Services Taxing Unit
5. Real Estate Transfer Tax (Contingent upon Legislative
Approval)
[Note: BOCC rejected putting on Legislative agenda]
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Revenue Options (Priority Order):
6. Regional Transportation System Surtax (Sales Tax)
7. Tolling Option for Specific Projects
[Note: BOCC allowed staff to explore for Ridge Road only]
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Cost Saving Strategies Recommended:
1. Prioritize Land Uses for Mobility Fee Buy-Down
[Note: BOCC conceptually agreed]
Cost Saving Strategies Not Recommended:
1. Reallocate Tax Increment Revenue
2. Elimination of Paving Assessment Discount
3. Reduce Maintenance Level of Service in Certain
Geographic Areas
[Note: BOCC agreed with staff not to explore these
further]
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