HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/19/1999 - RESOLUTION 99-126 ENDORSING REFERENDUM A, TRANSPOR AGENDA ITEM SUMMARY ITEM NUMBER: 25
DATE: October 19, 1999
FORT COLLINS CITY COUNCIL STAFF: John Fischbach
SUBJECT :
Resolution 99-126 Endorsing Referendum A,Transportation Revenue Anticipation Notes(TRANs).
RECOMMENDATION:
Staff recommends adoption of the Resolution.
EXECUTIVE SUMMARY:
The Colorado General Assembly has placed Referendum A on the November, 1999 ballot. If
approved, this referendum will authorize the state to borrow up to $1.7 billion, with a maximum
payback of$2.3 billion,to be used for accelerating high priority state transportation projects. The
proposal requires that the principal and interest on the borrowed money be paid from federal and
state transportation moneys, and limits these payments to no more than 50% of the prior year's
payment of federal transportation funds to Colorado.
f
If Council adopts this Resolution as dr zed, it will show support for the referendum with certain
recommendations. These recommen�pions highlight important transportation issues that are not
addressed by the TRANS referendum.
BACKGROUND:
In August of 1996,the Colorado Transportation Commission developed the Strategic Transportation
Project Investment Program, commonly known as the 7th Pot This list of 28 strategic projects, of
which 4 have been completed,receives priority funding over other projects and programs statewide.
When the 7th Pot projects were originally identified, it was estimated they would take 48 years to
complete. Since then.the state legislature has earmarked additional funding that has shortened the
completion date for the 28 projects to 25 years.
The Governor's proposal is to use the proceeds of Transportation Revenue Anticipation Notes to
complete the projects even sooner. Of the 24 projects yet to be completed, 17 would be accelerated,
6 would have no change, and 1 would be delayed. The single project to be delayed is the 1-25
corridor from Denver to Fort Collins,which would be extended by three years,from 2019 to 2022.
lip However,funding for the southern part of this corridor,from State Highway 7 to State Highway 66,
would be accelerated.
DATE: October 19, 1999 2 ITEM NUMBER: 25
There are several advantages and disadvantages to the TRANs referendum.
Advantages:
■ Accelerates most state transportation projects that are critically needed.
■ Gets priority projects built sooner without raising taxes.
■ Provides additional funds to state transportation projects throughout the state due
to the Transportation Commission's decision to re-allocate $25 million a year
from 7th Pot projects to regional priorities if Referendum A is adopted.
■ Reduces the projected completion of most 7th Pot projects from 25 years to 10-
15 years.
■ Avoids the cost of construction inflation which has recently been about 9%a year
by borrowing at a projected 4% - 5.5% interest rate.
Disadvantages:
■ TRANs does not include a local shareback provision.
■ In the long run, there is no new or additional money for transportation.
■ The accelerated funding may actually create an increased demand that cannot be
met by the construction industry,thus exacerbating the rapid rise in construction
inflation.
■ TRANs has a "highways only" focus - there is no funding for multimodal
projects.
• The projects are not specified in the ballot - we only have the Governor's and
CDOT's commitment on how the funds will be programmed.
■ The main emphasis of the Governor is in the Denver southeast corridor, which
appears to perpetuate sprawl in that region and provides a reward or"bailout"for
poor planning.
■ The state does not have an overall umbrella of statewide transportation strategies
under which TRANs has been planned,thus it is not integrated with other options
and issues.
■ There is no consideration of land use impacts or any provision for growth and
development to "pay their own way."
■ If the referendum passes,the public may perceive that all transportation funding
issues have been resolved,making it difficult to get new funding in the future for
the myriad needs that will remain.
The TRANS referendum appears to be a solid financing package with definite benefits within the 7th
Pot arena. If the Governor,the Transportation Commission,and CDOT will continue to address the
many transportation issues that fall outside the purview of TRANS,the referendum will be useful
by fulfilling an explicit niche in the larger picture of transportation funding needs.
RESOLUTION 99-126
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ENDORSING REFERENDUM A
TRANSPORTATION REVENUE ANTICIPATION NOTES
WHEREAS,Governor Owens has proposed and the Colorado General Assembly has adopted
appropriate legislation to place the Transportation Revenue Anticipation Notes (TRANS) on the
November, 1999 statewide ballot; and
WHEREAS, the Colorado Transportation Commission has identified 28 strategic projects
in the Strategic Transportation Project Investment Program (7th Pot) which will receive priority
funding upon successful passage of this referendum; and
WHEREAS, in consideration of this proposal, the Governor and the Colorado General
Assembly have concluded that the inflation cost savings would more than offset the cost of such
financing by accelerating the completion of some of these projects; and
WHEREAS, TRANS is only one of several funding mechanisms for meeting Colorado's
transportation needs, all of which must be distributed throughout the state in a fair and equitable
manner; and
WHEREAS,projected growth throughout Colorado is expected to create increasing demand
for all forms of transportation, including inter-modal transportation linkages, and that growth and
development should reasonably be expected to contribute to the funding needed to address the
impacts caused by growth; and
WHEREAS,adequate transportation facilities must be planned and integrated with land use
and air quality considerations; and
WHEREAS, the needs for transportation resources at the state, regional and local levels
greatly exceed the amount of resources projected to be available from TRANS and other sources;and
WHEREAS, any new revenue sources the state develops should include a proportional
sharing with cities and counties for increased funding of multi-modal, off-system,regional priority
transportation programs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT COLLINS as follows:
1. That the City Council endorses the use of Transportation Revenue
Anticipation notes(TRANS)as a way to accelerate transportation funding in
order to avoid rapidly increasing costs.
2. That the City Council respectfully asks the Governor,the Colorado General
Assembly,and the Colorado Transportation Commission to work with local
governments, the fifteen Transportation Planning Regions, and the private
sector to identify and develop long range funding strategies to address
Colorado's state, regional and local transportation needs in all modes, as
current transportation funding in Colorado is not adequate to meet these
transportation needs.
3. That the City Council urges the Governor and the Transportation
Commission to re-examine the current allocation of federal and state
resources:
A. to continue to work toward an allocation formula that is based on
capacity performance measures, including congestion and level of
service; and
B. to work with local governments toward local and land use regulations
that are effective in requiring that transportation infrastructure,
including interstate and state highways, is adequate to serve the
increased demand brought on by the proposed development.
C. to work with local governments on land use regulations that are
adequate and effective in providing the means for new growth to
participate in funding the increased capacity in transportation
infrastructure that is necessary to keep pace with such new growth
and development..
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th
day of October, A.D. 1999.
Mayor
ATTEST:
City Clerk