Funding the Transportation Infrastructure Improvement Plan (IIP): A Discussion of Cash Flows Town Council Meeting February 15, 2017

Better Roads Ahead - The Process Thus Far General Plan How will the Town Manage Growth?

Better Roads Ahead - The Process Thus Far General Plan How will the Town Manage Growth? Transportation Master Plan What is the Town’s Level of Service?

Better Roads Ahead - The Process Thus Far General Plan How will the Town Manage Growth? Transportation Master Plan What is the Town’s Level of Service? Infrastructure Improvement Plan (IIP) What Projects Must be Built to Achieve the Level of Service?

$196M Plan (IIP)

IIP Summary Length of Time: 10-Years Ending 2026 Number of New Lane Miles: 91 Number of Projects: 41 Maintains Current Level of Service Each Project has a Growth and Non-Growth Component Sequencing and Timing is Critical

IIP Summary (concluded) Total Cost: $196 M Includes $16 M of Inflation Today’s Dollars $145 M (February 2016 Version) $180 M (Master Plan Version – December 2016)

Better Roads Ahead - The Process Thus Far General Plan How will the Town Manage Growth? Transportation Master Plan What is the Town’s Level of Service? Infrastructure Improvement Plan (IIP) What Projects Must be Built to Achieve the Level of Service? Financing Plan How will the Town Pay for the IIP?

Funding Plan Objective Maintain the Existing Level of Service by Building the Necessary Projects The Master Plan Establishes the Level of Service which Determines the Project List and Project Costs

How Will the Town Pay for the IIP? Street Operating and Replacement Costs Feb 1 Cash Flow Projections Feb 15 Funding Options Comparison to Other Cities Feb 25 Calculating the Updated Impact Fee March 1

Total IIP: $196 M. Growth ($116M) vs. Non Growth ($80M) Already Underway

Total IIP: $196 M.

Growth Cash Flow Revenues $83M from: Project Expenses: $83M Dedicated Construction Sales Tax: $26M Impact Fees: $57M Project Expenses: $83M At the end of the 10th Year, Revenues Equal Expenses Consistent with Impact Fee Objectives “Growth Pays for Growth”

Growth Cash Flow (continued) Revenues vs. Project Expenses Why the Difference? Number of Lane Miles Built Varies Annually, Revenue Amounts Stable After 10 Years, Revenues Equal Expenses

Growth Cash Flow (concluded) Short-Term Financing Anticipated Estimated Amount: $20M “Line of Credit” – Borrow Only When We Need It Debt Payments Tied to Revenue Receipts Paid Off by 10th Year

Non Growth Cash Flow Funding Source: $58 M from Operating Budget Annual Placeholder Equals $6.5M Increased from $5.5M because of Refundings Expenses Project Expenses: $80M Operating Costs (Repair and Preservation): $1.2M Annually

Non Growth Cash Flow (continued) Operating Budget Placeholder vs Non Growth Cash Flow (continued) Operating Budget Placeholder vs. Project Expenses Why the Difference? Number of Lane Miles Built Varies Annually, Revenue Amount Constant After 10 Years, Shortfall Exists

Non Growth Cash Flow (continued) Longer Term Financing Anticipated Estimated Total Amount: $60M Multiple Issues Expected 1St Issue: $25M Specific Terms TBD Rate Length

Annual Operating Costs Resulting From ~230 New Lane Miles (Town and Private) In the 10th Year, Annual Operating Costs will have Increased by $2.1 M

Thoughts on Debt Current Outstanding Transportation Debt Two Issues Refinanced in 2016 (2007 Org.) Traffic Signals / Projects: $9M Original Issue Improvement District for Ellsworth Loop Road: $54M Original Issue

Thoughts on Debt (concluded) Increases Project Costs Mitigates Project Inflation Equitable: Matches Users and Payers Unique Opportunity for Town Operating Budget Capacity Exists (when Debt is Paid Off) to Pay for Street Replacement

Summary Thoughts Priority Issue $41M (20%) Already Underway FY 2017-18 Town Manager’s Recommended Budget Will Reflect Projects and Estimated $45 M Debt Issue The Master Plan Establishes the Level of Service which Determines the Project List and Project Costs

How Will the Town Pay for the IIP? Street Operating and Replacement Costs Feb 1 Cash Flow Projections Feb 15 Funding Options Comparison to Other Cities Feb 25 Calculating the Updated Impact Fee March 1