2021 Chief Executives Winter Workshop - LWM, WI
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2021 Chief Executives Winter Workshop Alternative Revenue Sources Panel Discussion Transportation User Fee Overview Thursday, February 25, 2021
Transcript of 2021 Chief Executives Winter Workshop - LWM, WI
2021 Chief Executives
Winter Workshop
Alternative Revenue Sources Panel Discussion
Transportation User Fee Overview
Thursday, February 25, 2021
What is a Transportation User Fee (TUF)?
• User charge based on each
property’s use of transportation infrastructure that…
• recognizes its benefit of
access, and,
• the impact of each trip on
road condition and longevity
• User charge is applied in the
same manner to all properties,
regardless of property use,
ownership or tax status
Properties that generate more
trips pay more than those that
generate fewer trips.
How are charges determined?
• A target budget is set to cover transportation
utility costs
• Budget may include “base” portion of common costs
• Trips are assigned to each property relative to
its land use and size
• A User Charge is calculated for
each property based on its share of total trips
The amount each property pays is
based on both how it’s used and
the size, or scale of its use
How are trips assigned to properties?
• Dominant land use is
determined for each property
or billing account
• Institute of Transportation
Engineers (ITE) trip generation
statistics provide a relevant
rate of trips per unit for each
land use
• Units are determined for each property (e.g. total dwelling units in
an apartment complex, structure size,
school enrollment, etc.)
• The ITE rate of trips per unit times
the total property units, adjusted
for factors such as seasonal use,
determines Assigned Trips
A “trip” occurs every time a vehicle
enters or leaves a property
How are User Charges determined?
Available information:
• Budget and common
costs
• Number of billing
accounts
• Number of trips for all
properties
User Charge is Base Fee plus Usage Fee:
• Base Fee: Common costs divided by
total accounts, applied to all properties
• Usage fee: Per-trip Rate times number
of trips assigned to a property
• Per-trip Rate: Budget (minus the common
costs) divided by total number of trips
Only properties that do not
generate trips are exempted(Undeveloped parcels, parking lots, etc.
Village of Pewaukee, WI Trip and Cost Breakdown by ITE Categories (TUF Charges) Cost Allocated on Assessed Value (Taxes)
Base Rate
Port and Terminal (000's) 2 592 31$ 759$ 790$ 0.4% 1,188,700$ 0.1% 267$
Industrial (100's) 48 5,512 755$ 7,063$ 7,819$ 3.6% 14,575,300$ 1.5% 3,274$
Residential (200's) 2,696 32,767 42,423$ 41,993$ 84,416$ 38.4% 747,219,200$ 76.3% 167,829$
Lodging (300's) - - -$ -$ -$ 0.0% -$ 0.0% -$
Recreational (400's) 7 456 110$ 584$ 694$ 0.3% -$ 0.0% -$
Institutional (500's) 19 10,521 299$ 13,483$ 13,782$ 6.3% 1,813,900$ 0.2% 407$
Medical (600's) 2 692 31$ 887$ 918$ 0.4% 5,003,400$ 0.5% 1,124$
Office (700's) 76 12,409 1,196$ 15,903$ 17,099$ 7.8% 44,960,000$ 4.6% 10,098$
Retail (800's) 47 42,904 740$ 54,984$ 55,724$ 25.3% 110,458,200$ 11.3% 24,809$
Services (900's) 42 28,671 661$ 36,744$ 37,405$ 17.0% 46,104,900$ 4.7% 10,355$
Admin (VAC, COMP, UTIL) 96 - 1,353$ -$ 1,353$ 0.6% 8,174,700$ 0.8% 1,836$
Totals: 3,035 134,524 47,600$ 172,400$ 220,000$ 979,498,300$ 100.00% 220,000$
Annual Charges
Total Assessed Value
Property Tax
Allocation
Equivalent
Tax Cost
Category
Allocation ITE Categories
No. of
Properties No. of Trips
How do TUF charges compare to property taxes?
Port and Terminal, 0.4%
Industrial, 3.6%
Residential, 38.4%
Lodging, 0.0% Recreational,
0.3%
Institutional, 6.3%
Medical, 0.4%
Office, 7.8%
Retail, 25.3%
Services, 17.0%
VAC, COMP, UTIL, 0.6%
COST ALLOCATION PER TRANSPORTATION USE FEES (TRIP-BASED)
Port and Terminal, 0.1%
Industrial, 1.5%
Residential, 76.3%
Lodging, 0.0%Recreational, 0.0%
Institutional, 0.2%
Medical, 0.5%
Office, 4.6%
Retail, 11.3%
Services, 4.7%VAC, COMP, UTIL, 0.8%
COST ALLOCATION BY ASSESSED VALUE(PROPERTY TAXES)
Cost Allocation Comparison: TUF vs. Property Tax
Residential home TUF charge is half the
equivalent property tax charge for the same
size transportation budget (this example)
0.4%
3.6%
38.4%
0.0%
0.3%
6.3%
0.4%
7.8%
25.3%
17.0%
0.6%
0.1%
1.5%
76.3%
0.0%
0.0%
0.2%
0.5%
4.6%
11.3%
4.7%
0.8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
PORT AND TERMINAL
INDUSTRIAL
RESIDENTIAL
LODGING
RECREATIONAL
INSTITUTIONAL
MEDICAL
OFFICE
RETAIL
SERVICES
VAC, COMP, UTIL
Share of Transportation Costs by Land Use CategoryProperty Tax Allocation vs. Trip-Based TUF Allocation
Assessed Value Allocation -
Property Taxes
TUF Allocation - Trip Based
Residential cost drops by half. But - costs increase
for other land use types that generate more trips
and for tax exempt properties.
