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 1

 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 2

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 4

Funding Options for Transportation: 1. Increase Impact Fees 2. Earmark Existing Property Taxes (Tax Increment) 3. No New Fees or Taxes 4. Special Assessment-MSBU and PVAS 5. Increase Property Tax 6. Increase Vehicle Registration Fees 7. Build Toll Roads 8. Increase Gas Tax 5

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 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)

7 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

 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) 8

 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. 9

10  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

Revenue General Fund Millage Votes Needed Annual Cost per Homeowner 1 Current Millage$142.0m $ Replace Capital Subsidy $5.0m $13.61 Subtotal$147.0m $ Replace General Fund Subsidy $3.5m $9.53 Subtotal$150.5m $ Difference from Current Millage $8.5m $ Based on a home with an appraised value of $100,000 and a taxable value of $50,000 ($50,000 homestead exemption)

12  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

Revenue R & B MSTU Millage Votes Needed Annual Cost per Homeowner 1 Replace Capital Subsidy$5.0m $14.88 Replace General Fund Subsidy $3.5m $10.42 Total$8.5m $ Based on a home with an appraised value of $100,000 and a taxable value of $50,000 ($50,000 homestead exemption)

14  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

Revenue Assessment Per ERU Votes Needed Replace Capital Subsidy$5.0m$ Replace General Fund Subsidy$3.5m$ Total$8.5m$

RevenuePennies Votes Needed Annual Cost per Driver 1 Replace Capital Subsidy$5.0m3¢3¢ 4$22.50 Replace General Fund Subsidy $3.5m2¢2¢ 4$15.00 Total$8.5m5¢5¢ 4$  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.

 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 17

 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 18

RevenueFee Votes Needed Cost per Homeowner 1 Replace Capital Subsidy$5.0m$0.163$ Replace General Fund Subsidy $3.5m$0.123$ Total$8.5m$0.283$ Based on a home with a sale value of $100,000

 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 20

 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 21

 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 22

 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 23

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 Total0.79%$8.5m$25.5m 24  1% Surtax = $43.3 million

 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 25

 $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% 26

 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 27

Rural Market Area Total Number of Miles Maintained:  Paved Miles =  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 28

 Many factors will affect exact amount of mobility fees in 2014 update, such as construction costs, right-of- way 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 29

 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 30

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] 31

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 32

Tier 2: 1.Suburban Area Office* and Industrial 2.Suburban Area Hotel/Lodging 3.Rural Area Office* and Industrial 4.Rural Area Hotel/Lodging 5.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] 33

Tier 3: 1.Retail/Institutional/Recreational in Suburban Area (Non-TND/MUTRM) 2.Retail/Institutional/Recreational in Rural Area (Non- TND/MUTRM) 3.Residential in Suburban Area (Non-TND/MUTRM) 4.Residential in Rural Area (Non-TND/MUTRM) 34

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] 35

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] 36

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] 37