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

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

3. 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?

4. 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?

5. $196M Plan (IIP)

6. 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

7. 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)

8. 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?

9. 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

10. 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

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

12. Total IIP: $196 M.

13. 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”

14. 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

15. 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

16. 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

17. 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

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

19. 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

20. 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

21. 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

22. Summary Thoughts Priority Issue
$41M (20%) Already Underway
FY 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

23. 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