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 ??