Fourth Quarter Cent Sales Tax Presented by Andrew K. Jackson, AICP - - PowerPoint PPT Presentation

Presented by Andrew K. Jackson, AICP CTP

December 6th, 2018

Fourth Quarter Cent Sales Tax

8 options to get to 4 quarters + a twentieth

Brief Description (bold adopted in Utah County) Title 59-12 of the Utah Code Annotated

1st Quarter 2213 (County, City or Town) .25 100% UTA transit 2nd Quarter 2216 (County) .30 87% Frontrunner, 5% BRT, 8% roads 3rd Quarter 2217 (County) .25 Weighted priority process approved by State Legislature, COG recommends list to County once a year 2nd Quarter 2214 (County, City or Town) .25 100% transit unless SLC 80% transit, 20% roads. State Legislature authorizes funding in UCA (1/4 of 1/4) 1st Quarter 2215 (City or Town) .30 100% transit 3rd Quarter 2218 (County, City or Town) .25 Roads, transit, airport, trails. MPO recommends projects 4th Quarter 2219 (County) 40% UTA transit, 40% cities, towns, county, 20% county, must be adopted by June 30, 2022

OR OR OR OR

4th Quarter 2219 (City or Town) 50% UTA transit, 50% cities, towns, if county doesn’t adopt by June 30, 2020 5th Twentieth 2220 (County) 100% to County for transit, must be adopted by June 30, 2022 and only after the other 4 are adopted

Local Option Sales Tax for Transportation $71.5M/Year

¼ Cent Adopted 1984-2011 Voter Approved $22.2M Annually 100% UTA Operates Bus System TRANSIT TAX 100%

1st

¼ Cent Adopted 2008 No Citizen Vote Commission Action $22.2M Annually 100% MPO/County Built multiple HWYs Can go to airports HWYS/TRANSIT/TRAILS/AIRPORT 100%

3rd

.30 Cent Adopted 2006 Voter Approved $26.6M Annually 87% Rail 5% BRT/Bus 8% Regional Roads Built/operates rail Built multiple HWYs 5% 8% RAIL / HWYS / BRT 87%

2nd

100%

4th

¼ Cent Sales tax = 1¢

• n a $3.99 Purchase

¼ Cent Sales tax = 25¢

• n a $100 Purchase

How much does a quarter cent cost?

Households = 172,791 Population = 606,425

$22,200,000 Total

$37 per person/year $128 per household/year

Utah County Transportation Sales Taxes

100%

Utah Transit Authority

REVENUE: $22.2M per year

1st ¼ CENT

Voters approved between 1984-2011 Funds Public Transit System

8%

2009 Utah County Borrowed & Bonded to Pay Back (Road Bond)

87%

UTA Commuter Rail

5%

BRT

2nd CENT

REVENUE: $26.6M per year

3 10

Voters approved 2006 Funds Rail, BRT/Bus, Roads, Highways

Payments to 2009 Road Bond Funds MAG TIP Road Projects

BRT Debt Service, O&M Payments

3rd ¼ CENT

REVENUE: $22.2M per year Commission Adopted 2008 Public Transit System, Highways, Airports

2028 2028

UVX BRT Bond

@ Utah County

EXPENSE

Bond $47M $67M

$3M per year O&M

1st ¼ CENT

100%

Utah Transit Authority Bus Service

REVENUE: $22.2M per year

2014 Utah County and UTA Interlocal Agreement

REVENUE: $22.2M per year

Payments to 2009 Road Bond Funds MAG TIP Projects

3rd ¼ CENT

100%

Payments to 2009 Road Bond Funds MAG TIP Road Projects

BRT Debt Service, O&M Payments

MAG TIP Road Projects

EXPENSE

2009 Road Bond

EXPENSE

Existing 3rd ¼ CENT

REVENUE: $22.2M per year

Proposed 4th ¼ CENT

40%

Transit

40%

Cities

20% County

REVENUE: $22.2M per year

$6M per year after 2019 $6M per year after 2019 $2.8M per year after 2019

After the UVX BRT Bond is paid off and 3rd ¼ Cent is paid back then 40% of the 4th ¼ Cent goes into a yearly service agreement between Utah County and UTA.

UVX BRT Bond and O & M

EXPENSE

$65M

Year Bond O & M Total 2014 $2.8M $0 $2.8M 2017 $3.3M $0 $3.3M 2018 $4.4M $1M $5.4M 2019 $5.9M $2.5M $8.4M Total $16.5M $3.5M $20M

If the 4th Quarter is enacted, UTA will receive about $8.8M per year. Utah County and UTA have an agreement on how the funding will be spent:

$8.8

Current and future Operation & Maintenance $2.5M/y Pay back past bond principal & interest $10M Total Pay back past O&M and design costs $6.3M Total Pay back interest on past O&M and design costs $4.2M Total Reserve account to pay off bond early. New UTA service level agreement with COG and Utah County Current and future Bond Payments $3.3M/y

UTA Service Level Agreement

• 1. UTA, in cooperation with County, will coordinate the planning of all new

public transportation improvements

• 2. UTA transit service level is anticipated to continue in its current mode,

routing, and levels of frequency and span until new funding for increases in service levels becomes available

• 3. Minor changes to current service levels may be made in consultation with

the County

• 4. The process which UTA will consider changes in service levels includes

consultation with local governments, Mountainland Association of Governments, and other stakeholders

• 5. Final routing and implementation of the UTA transit service within Utah

County shall be determined in accordance with all applicable laws, regulations and policies regarding transit service planning (including, without limitation, Title VI of the Civil Rights Act) and operational considerations shall be addressed in consultation with the County

How will it be spent?

TIP Projects could move forward

Project # Project Name Total Cost

Current Year Funded

4 Lindon Geneva Rd/200 S Intersection Improvements $613,913

2021

9 Orem 1600 N/400 E Roundabout $1,391,304

2022

10 Pleasant Grove 1800 N/100 E Intersection Improvements $330,435

2021

12 Spanish Fork 800 N/800 E Intersection Improvements $2,434,783

2021

14 Spanish Fork US-6/Center St Undercrossing $1,790,435

2021

29 Eagle Mountain Pony Express Pkwy Phase 3 $1,443,439

2022

37 Lindon Heritage Trail Phase 5 $1,257,153

2022

50 Provo Lakeview Pkwy Phase 4 $4,260,870

2022

57 Saratoga Springs Pony Express Pkwy Phase 2 $3,880,870

2021

63 Springville 1200 W - 1600 S to Canyon Creek Pkwy Phase 3 $2,067,826

2021

64 Springville 1200 W - 400 S to 550 N Phase 2 $2,320,000

2022

80 UC 8000 South $1,656,522

2022

How will it be spent?

TIP Projects could move forward

Project # Project Name Total Cost

Current Year Funded Potential Year Funded

4 Lindon Geneva Rd/200 S Intersection Improvements $613,913

2021 2019

9 Orem 1600 N/400 E Roundabout $1,391,304

2022 2020

10 Pleasant Grove 1800 N/100 E Intersection Improvements $330,435

2021 2019

12 Spanish Fork 800 N/800 E Intersection Improvements $2,434,783

2021 2019

14 Spanish Fork US-6/Center St Undercrossing $1,790,435

2021 2019

29 Eagle Mountain Pony Express Pkwy Phase 3 $1,443,439

2022 2020

37 Lindon Heritage Trail Phase 5 $1,257,153

2022 2020

50 Provo Lakeview Pkwy Phase 4 $4,260,870

2022 2020

57 Saratoga Springs Pony Express Pkwy Phase 2 $3,880,870

2021 2019

63 Springville 1200 W - 1600 S to Canyon Creek Pkwy Phase 3 $2,067,826

2021 2019

64 Springville 1200 W - 400 S to 550 N Phase 2 $2,320,000

2022 2020

80 UC 8000 South $1,656,522

2022 2020

How will it be spent?

Unfunded local projects from the Regional Transportation Plan could be funded