A Multifaceted Transportation Funding Approach for Rural Chelan County, Washington

2009 ITEQuad Conference

Vancouver, British Columbia

Where is Chelan County?

Slide 2

Chelan County’s Cities

• Wenatchee• Leavenworth• Cashmere• Chelan• Entiat

Slide 3

Chelan County Facts

• 2008 Population ~ 72,000• 31,000 in unincorporated

areas• 31,000 in City of

Wenatchee• 10,000 in 4 other cities in

the County• 1.8% average annual

growth rate from 1990• Over 54,000 Licensed

Drivers• Over 82,000 Licensed

Vehicles

Slide 4

Chelan County’s Economy

• Government• Health Care / Social

Services• Agriculture• Retail / Wholesale

Trade• Tourism /

Recreation

Slide 5

Transportation Improvement Program Costs: 2008-2027

$187 million

$201 million

$114 million

Total $502 million

(All costs in 2008 dollars)

Slide 6

Historical and Projected Maintenance & Operations Costs

$-

$5

$10

$15

$20

$25

1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026

Mil

lio

ns

Nominal

Real (2008$)

SOURCE: Chelan County Transportation Funding Report, Berk & Associates, March 19, 2009

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Existing Funding Sources: 2008-2027

Property Tax55%

REET3%Other Local Funding

1%

State Fuel Tax24%

State Funds6%

Federal Funds11%

SOURCE: Chelan County Transportation Funding Report, Berk & Associates, March 19, 2009

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Existing Revenues Will Buy Less:Property Tax for Transportation per Capita

• Bullet List 1• Bullet List 2

• Bullet List 3• Bullet List 4

$-

$50.00

$100.00

$150.00

$200.00

$250.00

1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027

Nominal

Real (2008$)

SOURCE: Chelan County Transportation Funding Report, Berk & Associates, March 19, 2009

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Program Costs Greatly Exceed Revenues from Existing Sources

Comparison of Transportation Revenues and Costs from 2008 to 2027

($331 million)$502 million$171 millionTotal Transportation Program

($275 million)$315 million$40 millionCapital Improvements2

($56 million)$187 million$131 millionMaintenance & Operations

Difference1

Total Estimated

Costs1

(2008-2027)

Total Estimated Revenues1

(2008-2027)

1.All costs and revenues in 2008 dollars. (xxx) means negative value.

2.Includes reconstruction and non-motorized enhancements and growth-related new construction and upgrade projects.

Slide 10

Chelan County’s Transportation Priorities

The public and stakeholders identified these priorities:

• Maintaining and upgrading existing roadways• Safety• Pedestrian and bicycle transportation

Slide 11

Transportation Funding Program –Guiding Principles

• New development should fund its share of expanding and upgrading the transportation system

• Use the County’s broad funding sources, such as the Road Levy (property tax), to fund maintenance, operations & the highest priority capital improvements

• Reserve potential regional funding programs to partner with other agencies for improving transportation facilities of countywide or regional significance

Slide 12

Transportation Improvements from New Development

Slide 13

Transportation Impact Fees (TIF)

• Define eligible, growth-related improvements• Potential revenues: $30 - $88 million

• Depending on which level of improvements are included• In 2008 dollars

• Resulting TIF rates• Approx. $400 - $800 per net new daily trip generated –

all potentially eligible TIF projects• Approx. $100 - $300 per net new daily trip generated –

including only the highest priority TIF projects

Slide 14

Sustaining the County’s Road Levy

• Value of Property Tax funded Road Levy has declined at over 3% per year since passage ofI-747 in 2001

• Short-term strategy:• County Commissioners adopted use of previously

unused “banked capacity” for 2009 ~ $1.1 million / year

Slide 15

Sustaining the County’s Road Levy

• Long-term strategy:• Continue use of “banked capacity”• Ask voter approval for additional levy lifts

~ $20 million in revenue (2008-2027) with average annual increase of 2%

• Average annual increase of 4.5% needed to offset projected $56 million shortfall in maintenance & operations

Slide 16

Other Funding

• Grants• State and federal transportation• Economic development grants• Flood control

• Loans &/or bonding• Not new revenues• Accelerate funding for highest priority projects

• Local Improvement Districts / Road Improvement Districts• Focused on specific areas • Useful for local street improvements• Potential vote

Slide 17

Chelan County Funding Toward Regional Transportation Improvements

• Regional highway projects• Regional trails

Slide 18

Transportation Benefit District (TBD)

• Regionally significant projects• Construction, operation, maintenance• Chelan County individually or in partnership with

other agencies• Range of financing mechanisms

Slide 19

Transportation Benefit District (TBD)Potential Revenues

• TBD for unincorporated County • Sales and use tax ~ $9 million• $20 per vehicle license fee ~ $8 million• $100 per vehicle license fee ~ $40 million

• TBD for all of Chelan County, including cities• Sales and use tax ~$37 million• $20 per vehicle license fee ~ $18 million• $100 per vehicle license fee ~ $90 million

(All revenues in 2008 dollars for 2008-2027 plan)Slide 20

Financing Summary

• Estimated project & program costs* $251 - $502 million

• Estimated revenues** $210 - $364 million

• Difference ($41 - $138 million)

* Does not include potential Chelan County contribution toward regional transportation improvements

** Does not include funding through developer concurrency, road standards, or environmental mitigation

(All costs and revenues in 2008 dollars for 2008-2027 plan)

Slide 21

Acknowledgements

• Chelan County• Board of County Commissioners• Agency Steering Team• Stakeholder Advisory Group

• Berk & Associates • For further information:

Larry Toedtli, PETranspo Grouplarry.toedtli@transpogroup.com425-821-3665

Slide 22