Willow Road Willow Road InterchangeInterchange

Project FundingProject FundingAlternativesAlternatives

Department of Public Works Department of Public Works January 2009January 2009

History of ProjectHistory of Project

Included in Area Plan Circulation since Included in Area Plan Circulation since 1980’s; Funding established under Road 1980’s; Funding established under Road Improvement Fee since 1990. Improvement Fee since 1990.

Based on existing General PlanBased on existing General Plan Project costs are Approx $ 42 million.Project costs are Approx $ 42 million. State Transportation Improvement State Transportation Improvement

Program funding secured in the amount of Program funding secured in the amount of $ 10 million$ 10 million

Road Improvement Fee account is Road Improvement Fee account is providing about $ 20 million to fund providing about $ 20 million to fund projectproject

Project NeedProject Need

Relieve congestion at Tefft StreetRelieve congestion at Tefft Street Support traffic demand under the Support traffic demand under the

existing General Plan build out.existing General Plan build out. Reduce overall Vehicle Miles Reduce overall Vehicle Miles

Travelled on MesaTravelled on Mesa Provide adequate truck route Provide adequate truck route

between Route 1 and Route 101between Route 1 and Route 101

Project Costs versus FundingProject Costs versus Funding

Project ExpensesProject Expenses– $5 m$5 m Project Project

DevelopmentDevelopment– $3 m$3 m Right of WayRight of Way– $8 m$8 m Roadway Roadway – $24m $24m InterchangeInterchange– $ 2 m $ 2 m Tree MitigationTree Mitigation– $ 42 m TOTAL$ 42 m TOTAL

Project RevenueProject Revenue– $10 m $10 m RIF collectedRIF collected– $ 8 m $ 8 m WoodlandsWoodlands– $ 2 m $ 2 m Expected RIFExpected RIF– $10 m$10 m STIPSTIP– $ 30 m $ 30 m IdentifiedIdentified

– ShortfallShortfall– $42 m-$30m $42 m-$30m =$12 m=$12 m

Project RisksProject Risks

Costs continue to increase over timeCosts continue to increase over time STIP funding is limited to $ 10 million STIP funding is limited to $ 10 million

and and mustmust be allocated to this project be allocated to this project by June 30, 2010by June 30, 2010

We must advertise the Project by We must advertise the Project by June 30, 2010.June 30, 2010.

Not being able to advertise project Not being able to advertise project by above date risks loss of $ 10 by above date risks loss of $ 10 million to other projectsmillion to other projects

Willow Rd Project FundingWillow Rd Project Funding

Willow Road Project Costs - $42,000,000

STIP $10,000,000

24%

Road Improvement

Fees $20,000,000

47%

Local Funding $12,000,000

29%

Board of Supervisors Board of Supervisors

Public Works has presented potential Public Works has presented potential funding options to the Boardfunding options to the Board

Board of Supervisors direction to Board of Supervisors direction to seek local source of funding gapseek local source of funding gap

The Board also approved a $6 M loan The Board also approved a $6 M loan to help resolve the funding gap.to help resolve the funding gap.

This loan will need to be repaid.This loan will need to be repaid.

Potential Local Funding OptionsPotential Local Funding Options

Assessment District Assessment District Ad Valorem TaxAd Valorem Tax Parcel TaxParcel Tax

Assessment DistrictAssessment District

Define by special benefit of property Define by special benefit of property for Willow Road Projectfor Willow Road Project

Requires engineers report to Requires engineers report to establish benefit and assessment establish benefit and assessment formula. formula.

Requires 50% approval vote of Requires 50% approval vote of “Property Owners”“Property Owners”

Expected 30 year term on bond Expected 30 year term on bond paybackpayback

Example: Los Osos WWTPExample: Los Osos WWTP

Ad Valorem TaxAd Valorem Tax

Increase existing property tax rate Increase existing property tax rate by 0.05%by 0.05%

Requires 2/3 registered voter Requires 2/3 registered voter approval under Prop 218approval under Prop 218

Expected for 30 year term.Expected for 30 year term. Example: The method used to fund Example: The method used to fund

50% of the Lopez Dam seismic 50% of the Lopez Dam seismic retrofit.retrofit.

Parcel TaxParcel Tax

Creates rate for each parcel.Creates rate for each parcel. Requires 2/3 registered voter Requires 2/3 registered voter

approval under Prop 218approval under Prop 218 Expect to be for 30 year term for Expect to be for 30 year term for

bond payback.bond payback. Example: Drainage projects and Example: Drainage projects and

cooperative roads projects.cooperative roads projects.

Parcels Parcels EqualEqual

SFR / SFR /

Non-SFRNon-SFRBy Land By Land

UseUse

Developed OnlyDeveloped Only

SFRSFR $198/yr$198/yr $103/yr$103/yr $103/yr$103/yr

Non-SFRNon-SFR $198/yr$198/yr $894/yr$894/yr N/AN/A

Specific Specific

Land UseLand Use N/AN/A N/AN/AVaries Varies by APNby APN

Developed & Developed & UndevelopedUndeveloped

SFRSFR $160/yr$160/yr $88/yr$88/yr $88/yr$88/yr

Non-SFRNon-SFR $160/yr$160/yr $564/yr$564/yr N/AN/A

Specific Specific

Land UseLand Use N/AN/A N/AN/AVaries Varies by APNby APN

Community InputCommunity Input

Educate groups on optionsEducate groups on options Seek specific comments/input Seek specific comments/input

through the workshopthrough the workshop Test levels of support through surveyTest levels of support through survey Get policy recommendation from Get policy recommendation from

Advisory CouncilAdvisory Council

Return to Board of SupervisorsReturn to Board of Supervisors

Return in Summer of 2009 with Return in Summer of 2009 with report on community input resultsreport on community input results

Provide analysis of optionsProvide analysis of options Seek direction on moving ahead with Seek direction on moving ahead with

project fundingproject funding If option mandates vote, move If option mandates vote, move

forward to conduct mail in ballot in forward to conduct mail in ballot in Fall 2009Fall 2009

SummarySummary

Board expects some level of local Board expects some level of local financing to advance projectfinancing to advance project

County reserves/ General Fund are County reserves/ General Fund are only available for a partial loan.only available for a partial loan.

Some type of taxing mechanism Some type of taxing mechanism neededneeded

Questions ??Questions ??