Arizona City/County Management Association Infrastructure and Transportation

Overview

Growth & Arizona Transportation-To

What End? Diversifying the

economy Transportation

Revenue Future Direction

Arizona’s Future POTENTIAL STATEWIDE GROWTH

2000 6 million

2050 11.5-13.2

million

Megapolitan 2000

Megapolitan 2050 Scenario

Visual Volume-to-Capacity Ratio

Growth and the Sun Corridor

Phoenix-Mesa, AZ MSA Tucson, AZ MSA Las Vegas, NV-AZ MSA

Pop

ula

tio

n

Explosive Population Growth in Phoenix MSA 1955 – 2040 : More than double year 2000 by 2040!

1955 551,000

2000 3.25 Million

2010 4.2 Million

2040 7.1 Million

Population 2012 Phoenix MSA 4.3 million (66% of AZ) Phoenix + Tucson 5.3 million (81% of AZ ) 82% of AZ Tax receipts

Population 2040 Phoenix MSA 7.1 million (70% of AZ) Phoenix + Tucson 8.4 million (83% of AZ)

Long Range Planning Hassayampa & Hidden Valley Framework Studies Highway & Parkways

State Lands Will Guide Future Development Land Development Status : Central Arizona

Developable Land

Developable (Private)

Developable (ASLD)

Other Land

Developed

Open Space and Military

Indian Communities and BLM

Development Areas

Active Developments

Planned Developments

County Boundaries

Other Features

Highways

Other Highways

Planned Freeway

Freeway

State Land is

64% of remaining

developable land

40% developable 26% remaining developable

Transportation: To What End? Diversify the Economy!

Distressed Residential Properties: March 2010 Second Worst in the Country

Distressed Residential Properties: June 2013 Back to Normal

greaterphoenixrising.com

Arizona Tourism Economic Impact by County*

MEXICO’S IMPORTANCE TO AZ

Mexican visitors spent

$2.65 billion in AZ from July’07 to June’08.

Source: Office of Travel and Tourism Industries

– US Department of Commerce

Source: University of Arizona , Mexican

Visitors to Arizona: Visitor Characteristics

and Economic Impacts, 2007-08

Top Origin Markets for International Travelers to the U.S. (2010 vs. 2009 & 2008)

* Data for 2012

18

Tourism: Key industry

Mexicans to AZ (2007-08): • 24 million crossings • 3.8 million Tourists

$2.7 billion spent AZ

Composition of Arizona Exports

9.3 million people in the AZ-Sonora region • Younger labor force in Sonora. • Arizona will age faster. • Our future is interdependent.

Arizona Sonora

Arizona – Sonora: Population

In 2012: • Mexico was the fastest -

growing economy among NAFTA partners.

• $13 Billion Trade Between Arizona – Mexico.

• 75% of Arizona exports destined for Sonora.

Arizona’s largest exports to Mexico include: Computers and electronic components, minerals and ore, and electrical equipment.

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Crossings at Arizona/Mexico POEs

Trucks Rail Containers

Imports From Mexico in U.S. Dollars: 2004-2012

Arizona Losing Share in Trade with Mexico’s Fast-Growing Economy

Mexico 112 million population

Arizona–Sonora: One Connected Region

Slide content provided by COPRESON

SOME INTEGRATION MOVEMENTS

America’s Trade Corridor Connecting Canada, the United States, and Mexico

March 22, 2013 Binational Economic Forum We Are All Border Cities

March 22, 2013 Binational Economic Forum

Sun Corridor is now a logical hub for staging imports and distribution to West markets

• Sun Corridor population (anchor market)

• Near-Shoring trends in Mexico

• Strategic location to West Coast and Mexico

Freight Framework ‘Big Picture’ ─ Leverage Strategic Location

Focus Area evaluation helped identify freight typologies present in Sun Corridor:

Maricopa Phoenix Mesa Gateway

West Valley

Discovery Triangle

West Phoenix

Grand Avenue

Deer Valley

West Chandler

Surprise

Pinal

Pinal Airpark

La Palma

Eloy (Interstate 8 / Interstate 10)

Maricopa / Casa Grande

Magma Rail Road

Pima

Tucson International Airport

North Tucson

Marana

Freight Focus Area Identified by JPAC Study Partners

Freight Framework Next Steps

Develop a JPAC logistics working group that will focus on:

• Creating a special regional designation, such as a Sun

Corridor Freight Development Zone.

• Preparing conceptual business plans for freight focus areas.

• Analyzing and identifying key freight transportation

corridors in the Sun Corridor.

• Develop a Freight Plan that will ultimately create jobs and

Increase Arizona’s global competitiveness.

Transportation Revenues

Combined Gas Tax Rates Source: American Petroleum Institute, July 2013

37.4

Potential Transportation Revenue Sources

$1,041.20

$820.14

$604.91

$429.83

$337.04

$316.40

$228.68

$177.96

$115.98

$115.24

$96.78

$53.37

$42.58

$13.15

$0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00

Add state and local sales tax in addition to current fuel taxes

Add state sales tax in addition to current fuel taxes

1/2 cent state transportation sales tax

Add 5 cents and index state and federal fuel taxes to CPI

Replace fuel tax with state and local sales tax

Add 5 cents and index state fuel taxes to CPI

Index current state and federal fuel tax to CPI

Add 5 cents to fuel tax

Replace fuel tax with state sales tax

Index current state fuel tax to CPI

Property tax for transportation

$10 registration fee increase

10% surcharge on luxury tax collections (liquor & tobacco)

$10 driver's license fee increase

Annual Average Net New Revenue 2013 to 2022 (millions of dollars)

Local $221.06

Local $221.06

0.9% Percent Increase in HURF Revenues Compared to Projections for 2013 to 2022 3.0%

3.8%

6.8%

8.1%

8.2%

12.6%

16.2%

22.4%

23.8%

30.4%

42.8%

58.0%

73.6%

Source: Eric Anderson, Maricopa Association of Governments

The Future

“Only the metropolis has the fundamental assets that together can offer the combination of

specialization and diversity that stimulates self-sustaining economic development and job creation. In this setting, the clustering and networking dynamics among many different firms, entrepreneurs, and institutions interact in ways that span and accelerate growth of production and exports, as well as expansion and spreading of incomes and wealth.”

“By emphasizing the interwoven economic destinies that bridge across families and communities within metropolitan regions, people can begin to see themselves as members of a cohesive economic team that is actively competing against other economic teams all over the world.”

Dr. Marc A. Weiss, Chairman and Chief Executive Officer of the Prague Institute for Global Urban Development and Public Policy Scholar at the Woodrow Wilson International Center

Work as a team in Arizona.

Recognize and enhance our relationship with our #1 trading partner – Mexico.

Protect the Sonoran desert and promote tourism.

Create alliances with the Intermountain West.

Invest in Interstate 11.

Celebrate port of entry improvements, the Port of Tucson and the Red Rock facility.

Work on creative approaches to fund transportation and other concepts that will bring jobs and improve our quality of life.

G'Kar Narn Ambassador to Babylon 5 Interstellar Alliance

“We Are One”

The Future

For More Information Contact: Dennis Smith MAG Executive Director (602) 254-6300 www.azmag.gov