1. S.H. 121 – Dallas, Texas Case Study Presentation National Summit on Future Transportation Funding and Finance Strategies April 11, 2007 Michael Morris, P.E. Director of Transportation North Central Texas Council of Governments Transportation Department www.nctcog.org/trans/mtp/www.nctcog.org/trans/mtp/2030

2. MOBILITY 2030 Prioritization of Improvements

3. MOBILITY 2030 DEVELOPMENT Congestion is bad and getting worse, and traditional funds cannot keep up The Dallas-Fort Worth Region has a need by 2030 for $129.5 billion to eliminate the most severe congestion and rebuild aging infrastructure Construction costs have risen 10% per year recently Texas HB 3588 and HB 2702 have provided new development and financial tools Regional Transit Initiative proposes 0.5% sales tax increase Partnerships are part of the key to solving the problem

4. MOBILITY 2030 HIGHLIGHTS Financially-Constrained Recommendations Includes $9.6 billion of rail recommendations, including $3 billion of Regional Transit Initiative (RTI) rail lines Includes $29.8 billion of roadway recommendations, including $16.8 billion of Innovative Funding Strategies Includes additional unfunded roadway needs for illustrative purposes Includes policy-level discussion of alternative future and demographic considerations Includes Environmental Mitigation Strategies Includes Safety and Security policies and programs Includes incorporation of Trans-Texas Corridor (TTC-35) into recommendations

5. INTEGRATED COMPREHENSIVE APPROACH: TOLL SYSTEM FOR NORTH TEXAS TOLL SYSTEM FOR NORTH TEXAS Mobility Plan Toll Roads and Managed Lanes Needed Short-Term Improvements Preliminary Toll Feasibility Preliminary Agency Selection CDA Option Construct Project(s) using Bonding Authority NTTA Option 1. Construct Toll System with Toll Leveraging 2. $0 Excess Revenue Irregular Mobility Dividends Operations of Corridor Regional Needs Managed Lane Projects Trans Texas Corridor 3.4. Other Projects Category 2 TxDOT Funds Excess Revenue Fund Priority 3 Priority 2 Priority 1 Source: North Central Texas Council of Governments

8. Benefit/Cost Ratio of Plan: 1.51

9. Mobility 2025, Amended April 2005 Year 2025 from Mobility 2030 Plan Innovative Funding Strategies: HOV/ Managed Lanes NTTA Toll Roads Comprehensive Development Agreements Public-Private Partnerships Regional Transit Initiative Trans-Texas Corridor Regional Outer Loop Annual Cost of Congestion = $6.6 billion Annual Cost of Congestion = $6.1 billion

10. IDENTIFIED FUNDING NEEDS DALLAS-FORT WORTH REGION (Updated based on Mobility 2030 Funding Levels) Metropolitan Transportation System Components Funded Needs (Billions/2006 $) Unfunded Needs (Billions/2006 $) Operation & Maintenance$18.7 Congestion Mitigation Strategies$2.1 Bicycle & Pedestrian Facilities and Transportation Enhancements $1.1 Rail and Bus Transit System$11.0 1 HOV and Managed Facilities$3.3 Freeway and Toll Road System$26.4 $12.7 2 Regional Arterial and Local Thoroughfare System $5.7$6.0 Additional Cost to Purchase Right-of-Way$1.1 Rehabilitation Costs$ 2.6 $32.1 Goods Movement/Rail Freight Costs (Trans Tx Corridor) $6.7 TOTAL$70.9 (55 %) $58.6 (45 %) $129.5 Billion 1 $3.4 billion obtained through Regional Transit Initiative 2 Includes Freeway-to-Freeway Interchanges Revised: February 28, 2007

11. S.H. 121 CDA Collin & Denton Counties Upfront Concession Fee$2.10 Excess Revenue Over Time (Net Present Value)0.70 Construction of S.H. 1210.56 Operations, Preventive Maintenance, and Capacity Enhancement Costs (Net Present Value)1.70 Revenue Sharing (Banded Amounts)* --- Total (Net Present Value)$5.06+ Note: Figures are approximate and are subject to CDA contract execution and financial closing. * Significant funding may be available if future toll road volumes are higher than anticipated. Funding in $ Billions

13. IMPLICATIONS FOR THE PLANNING PROCESS Importance of Financial Constraint Importance of Needs Based Plan MPO – Metropolitan Programming Organization Increased Decentralization – Impact on State and National Transportation System Project Programming without Federal Requirements

14. IMPLICATIONS FOR PUBLIC POLICY Tollroad Impact on Suburbanization – Leveling Role of Peak Period Pricing on Mobility Goals Role of Dynamic Pricing with Guarantees on Reliability of Service Equity of Costs – Value of Time, Regressiveness, or “Opportunity Costs” Equity of Benefits - “Near Neighbor, Near Time Frame” - Toll Users

15. IMPLICATIONS FOR INSTITUTIONAL ARRANGEMENTS Maturity of State DOT – MPO Relationship Greater Role of Private Sector Greater MPO Role in Policy Setting – Business Terms Impact on Planning Funds, Research, and Federal Process Impact on U.S. DOT Partnerships are Key to Success