Title:
Title
Transportation Funding and Priorities
End
FileID
File ID: 2019-01662
Location
Location: Citywide
Recommendation:
Recommendation
Adopt a Resolution approving Guiding Principles for Transportation Funding related to priorities for various transportation funding programs.
Contact: Ryan Moore, Interim Public Works Director, (916) 808-6629; Lucinda Willcox, Program Manager, (916) 808-5052, Public Works Department
Body
Presenter: Ryan Moore, Interim Public Works Director, (916) 808-6629; Lucinda Willcox, Program Manager, (916) 808-5052, Public Works Department
Attachments:
1-Description/Analysis
2-Resolution
3-Attachment A
Description/Analysis
Issue Detail: Historically, transportation infrastructure maintenance, repair, and construction of new facilities have been funded almost exclusively with dedicated transportation funding sources, primarily state and federal transportation funds, gas taxes, countywide transportation sales tax (Measure A), and dedications and fees/taxes on new development.
Almost all these transportation funding sources are not keeping up with inflation and in some cases are declining, while the funding needs to maintain, upgrade, and modernize the transportation network continues to grow. Although the state transportation effort (Senate Bill 1 or SB1) did provide additional funding, SB1 falls far short of providing funding to meet all the City’s ongoing responsibilities.
In the upcoming year, several activities that affect transportation funding will be taking place. The Sacramento Transportation Authority (STA) is exploring a potential supplemental countywide transportation sales tax measure for the November 2020 election and will be considering adoption of a potential expenditure plan in its next two to three meetings.
Various state and federal grant programs will be issuing a call for projects, including the Sacramento Area Council of Governments (SACOG)’s allocation of regional federal and state funding, the State Local Partnership Program, the State Congested Corridors Program, the State Transit and Intercity Rail Capital Program (TIRCP), the State and Regional Active Transportation Program (ATP), the Department of Housing and Community Development’s Infill Infrastructure Grant Program, and the State Affordable Housing and Sustainable Communities (AHSC) programs. With limitations in available local transportation funding to leverage these programs, it will be necessary to prioritize and to identify additional local funding to continue investments in the City’s transportation network.
On October 29, 2019, the City Council held a workshop to discuss transportation funding issues. Based on various discussions at that workshop, this report brings back recommendations for prioritizing and establishing various funding programs.
Policy Considerations: Transportation policy is governed by numerous City adopted plans and policies, as well as other regional plans and plans by other agencies. The General Plan and its Mobility Element establish the circulation network and policies governing facilities in the City. The City is in the process of updating the General Plan and the Mobility Element.
The City also has many adopted Area Plans, Specific Plans and development plans that govern transportation improvements; many of which contain Finance Plans. There are also documents that guide specific policy areas, including the Vision Zero Action Plan, Bicycle Master Plan, Pedestrian Master Plan, Sacramento River Parkway and American River Parkway Plans, Electric Vehicle Strategy, and various additional guidelines and standards. In addition, the City has several corridor plans and studies with recommendations for specific improvements.
Many regional plans and programs affect mobility in the City, including the Metropolitan Transportation Plan/Sustainable Communities Strategy (RTP/SCS) adopted by SACOG; SACOG Intelligent Transportation System (ITS) Master Plan currently being developed; Sacramento Regional Transit District (RT) transit plans; the State Rail Plan; Caltrans’ System Plans; and Sacramento Metropolitan Air Quality Management District (SMAQMD) Air Quality Attainment Plans.
Economic Impacts: None.
Environmental Considerations: This is an informational report and not a project for the purposes of CEQA.
Sustainability: The transportation sector is one of the largest generator of air pollutants and greenhouse gas emissions, so there are several state laws and regional and City initiatives to reduce vehicle miles travelled and enhance shared and cleaner mobility options, including increased opportunities for transit, cycling, walking, electric vehicles and other zero emission options, and taking advantage of additional technology improvements. In addition, mobility is a core component of the Climate Action Plan, a component of the City’s General Plan, the Mayor’s Commission on Climate Change, and the MTP/SCS requirements to comply with SB375 and SB743, which govern reductions in greenhouse gas (GHG) emissions and analysis of vehicle miles traveled (VMT).
Commission/Committee Action: None.
Rationale for Recommendation: This report responds to request from the City Council to establish some guiding principles for a potential supplemental transportation sales tax measure.
Financial Considerations: This report is intended to share the financial needs related to City transportation goals and facilities.
Local Business Enterprise (LBE): Not applicable.
Background: The City’s transportation network, with over $10 billion in assets, has been developed over the last 180 years and requires ongoing maintenance, funding for operations, and needed modernization, expansion, and safety improvements.
The City continues to have over $2.4 billion in identified unmet transportation funding needs over the next 20 years related to the existing system. Additional and reliable funding is needed to better address mobility needs of existing populations, support new growth, and provide for additional mobility options.
The City’s needs range from projects and programs in the areas of safety, maintenance, active transportation, new technology, and new system connections and river crossings, as well as improvements necessary to support additional transit and rail services. The City’s deferred maintenance continues to grow as adequate funding is not available. Our existing transportation infrastructure is the foundation for most mobility modes -- buses, trucks, cars, bikes, scooters, automated vehicles, emergency vehicles -- so continued decline will negatively affect future mobility and safety in the city.
Regional Transportation Funding
For new capital projects, the City relies almost exclusively on state and federal grants. As a result, determination of which projects get funded is determined by outside funding agencies rather than the City. In addition, there is no certainty in which projects and/or how much will be funded for planning purposes, so long term planning and funding for critical projects is not possible.
The Sacramento Area Council of Governments (SACOG) allocates federal and state funding that is provided to the region based primarily on population. Since 2002, SACOG has allocated funding by formula to Placer and El Dorado Counties, and then required competitive grant funding programs to the remaining four-county region (Sacramento, Yolo, Yuba, and Sutter Counties). SACOG typically manages a grant program every two to three years. SACOG is developing guidelines for 2020 funding round with an anticipated $209 million for the four-county region.
Requirements for grant applications have become increasingly more expensive and currently require about $30,000 in staff and printing costs per application. Assuming ten applications, this costs $300,000 in transportation funding that could otherwise be used directly for transportation projects and programs. Often, City priority projects are not funded or are only partially funded, resulting in delays and greater costs. With a typical maximum project size of $3 to $5 million, it is nearly impossible to identify funding strategies for larger projects that would meaningfully affect the transportation network (e.g., complete street projects, vision zero corridors, and bridges).
The City currently does not have anticipated adequate local transportation funding to match additional state and federal grants. In order to pursue continued grant funding, alternative sources of funding will need to be identified.
Regional plans call for the City to accommodate 30 percent of the six-county region’s new housing over the next 20 years, although it represents about 22 percent of the existing population. Most of this is presumed to be higher density infill housing, much of it for affordable incomes. To achieve this level of growth would require extensive investment in transportation infrastructure improvements as well as other infrastructure. Historically, the City has directly received about 12 percent of regional transportation funding. With current levels of regional funding and the current funding process, it will not be possible for the City to make substantial progress in achieving MTP/SCS goals. Greater certainty, reliability, and flexibility are necessary for the City to effectively plan and expend regional transportation funds.
Measure A Expenditure Plan
The Sacramento Transportation Authority (STA) is considering a supplemental ½ cent transportation sales tax measure for the November 2020 ballot. Current proposed schedule calls for the release of a draft plan for public comment at the STA Board’s December 12th meeting, with adoption of an Expenditure Plan in February or March of 2020.
Based on direction from the City Council’s October 29th workshop, staff is recommending considerations related to safety, sustainability, equity, and fix-it-first considerations for direction to the STA Board. This is contained in Attachment A of the Resolution.