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Funding Strategy DevelopmentI-710 Corridor Advisory Committee
August 17, 2017
Funding Strategy Services
It is important to highlight that development of a Funding Strategy is only intended to serve as an independent and alternative analysis to compare funding sources for delivery alternatives as part of the Interstate 710 South Corridor Project being conducted in partnership with Metro and prepared by CH2M. CH2M is not a registered Municipal Advisor as called for in Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and this funding analysis does not represent advice regarding the sale or purchase of specific municipal securities. Since some delivery options under consideration by Metro may involve the sale of municipal bonds, CH2M recommends that a Municipal Advisor is engaged to provide further useful input to Metro’s decisions in this matter.
DRAFT, CONFIDENTIAL AND DELIBERATE
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RIP, etc
Metro/Stakeholders
etc
Metro/Stakeholders/
Metro
Interchanges
Program Funding Support
Major project funding - Sources & Uses
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USES
State and Local Funds
-
$1 bn
$2 bn
$3 bn
$4 bn
$5 bn
$6 bn
$7 bn
$8 bn
$9 bn
$10 bn
$11 bn
$12 bn
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Alternative 5C Available State and Local Funds
Alt 5C Estimate
High
Most Likely
Low
-
$1 bn
$2 bn
$3 bn
$4 bn
$5 bn
$6 bn
$7 bn
$8 bn
$9 bn
$10 bn
$11 bn
$12 bn
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Alternative 7 Available State and Local Funds
Alt 7 Estimate
High
Most Likely
Low
DRAFT, CONFIDENTIAL AND DELIBERATE
Local Funding Sources
• Measure R• One-Half Cent Sales Tax for Transportation ends in FY 2039
• Funds allocated to Highway Capital Projects includes Carpool Lanes, Highways, Goods Movement, Grade Separations and Soundwalls
• Interstate 710 South/Early Action Projects allocated 11% FY 2017 to FY 2024
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Local Funding Sources
• Measure M • One-Half Cent Sales Tax for Transportation to FY 2039 increasing to One Cent
upon expiration of Measure R
• Funds allocated to Major Highway Capital Projects includes System Connectivity Projects - Ports, Highway Congestion Programs, Goods Movement as well as Bicycle, Pedestrian, Complete Streets
• Interstate 710 South Ph 1 & 2 allocated 9% FY 2025 to 2041
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Local Funding Sources
Proposition C• One-Half Cent Sales Tax for Transportation to FY 2039 increasing to One Cent
upon expiration of Measure R
• Funds allocated to capital and operating projects and programs that reduce traffic congestion, improve air quality, and efficiently operate and improve the condition of streets and freeways utilized by transit.
• Metro forecast for highway transportation on I-710 South FY 2024 – FY 2027
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State Funding Sources
State Transportation/Regional Improvement Program• biennial five-year plan adopted by the Commission for future allocations of
certain state transportation funds for state highway improvements
• Metro forecast for highway transportation on I-710 South FY 2023 to FY 2024
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State Funding Sources
State Bill No 1 (potential)• $0.12 increase in gas tax and 50% of a $0.20 increase in diesel tax plus a
portion of Vehicle License Fee
• Funds allocated to State highway bridge/culvert maintenance and rehabilitation, Bicycle, Pedestrian, Complete Streets
• allocation not specified, estimated as 9% of forecast revenue to FY 2027
DRAFT, CONFIDENTIAL AND DELIBERATE
State, Local and Federal Funds
-
$1 bn
$2 bn
$3 bn
$4 bn
$5 bn
$6 bn
$7 bn
$8 bn
$9 bn
$10 bn
$11 bn
$12 bn
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Alternative 5C State and Federal Funds
Alt 5C Estimate
High
Most Likely
Low
-
$1 bn
$2 bn
$3 bn
$4 bn
$5 bn
$6 bn
$7 bn
$8 bn
$9 bn
$10 bn
$11 bn
$12 bn
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Alternative 7 State and Federal Funds
Alt 7 Estimate
High
Most Likely
Low
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Federal Funding Sources
• Build America Bureau (the “Bureau”) • Administration of discretionary grant and credit programs under
the Fixing America's Surface Transportation Act (FAST Act)• Development of standardized contracts and tools to analyze
alternative delivery options• Focus on transparency of Value for Money analysis• Audit of use of funds
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Federal Funding Support (example)
• Transportation Infrastructure Finance and Innovation Act (TIFIA)• Submission of application supported by value for money/best value project
analysis • Selection based on evaluation against competing applications• Essential to establish Primary Revenue Pledge to support TIFIA match
• State or Local Appropriations• Motor Fuel Tax Revenues• Sales Tax Revenues• Project Revenues• User charges
13DRAFT, CONFIDENTIAL AND DELIBERATE