HomeMy WebLinkAboutR2009-004codad\departments\1ega1\our documents\resolutions\09\rail north texas.doc
RESOLUTION NO.SOD
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING A LEGISLATIVE POSITION ON RAIL NORTH TEXAS AS A PRIMARY
LEGISLATIVE ITEM IN THE 81 ST TEXAS LEGISLATURE SUPPORTING TAXES OR
FEES TO GENERATE REVENUE TO FUND REGIONAL RAIL AND SUPPLEMENTAL
ROADWAY IMPROVEMENTS IN NORTH CENTRAL TEXAS; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the North Central Texas Council of Governments is designated as the
Metropolitan Planning Organization for the Dallas-Fort Worth Metropolitan Area by the
Governor of Texas in accordance with federal law; and
WHEREAS, the Regional Transportation Council, comprised primarily of local elected
officials, is the regional transportation policy body associated with the North Central Texas
Council of Governments, and has been and continues to be the regional forum for cooperative
decisions; and
WHEREAS, the Regional Transportation Council has advocated for additional
transportation funding and flexibility for over 10 years, with a special focus on identifying
additional funding to construct and operate a seamless regional rail system for the past five
years; and
WHEREAS, the Rail North Texas effort has been a bottom-up process to include local
elected officials, business leaders, the public, and State legislators and has resulted in a specific
legislative proposal; and
WHEREAS, the City of Denton supports the North Central Texas Council of
Government's Rail North Texas effort; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings and recitations contained in the preamble of this Resolution
are incorporated herein by reference.
SECTION 2. The City of Denton supports seeking legislative authority to create a
Transportation Funding Area (TFA) for the purpose of levying taxes or fees in order to generate
revenue to fund rail and supplemental roadway improvements.
SECTION 3. The City of Denton continues to support the principles contained in the
three transportation authorities' "'Joint Recommendation for Regional Rail in North Central
Texas." This rail initiative will be constructed by existing transportation providers.
SECTION 4. The City of Denton does not support the creation of any new transportation
authorities or transportation providers within the Dallas-Fort Worth region.
codad\departmentsUegahour documents\resolutions\Mail north texas.doc
SECTION 5. The City of Denton supports implementation of Rail North Texas in the
Dallas-Fort Worth region consistent with:
a. The "Policy Summary" in Attachment 1,
b. The "Questions and Answers About Rail North Texas" in Attachment 2,
c. What the Rail North Texas initiative is not as contained in Attachment 3,
d. The "Project Selection, Funding, and Implementation Process" in Attachment 4, and
e. The specific proposal outlined in Attachment 5.
SECTION 6. The City of Denton Supports the Regional Transportation Council wish to
implement a TFA for the sole purpose of implementing rail and supplemental roadway
improvements.
SECTION 7. This resolution will be transmitted to the Texas legislative delegation and
to the Regional Transportation Council.
SECTION 8. This Resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the d day of 2009.
MA A. BU S, AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:1 J 1 )InJj
0
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY ZZ,
Page 2 of 2
Attachment 1
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Attachment 2
Questions and Answers About Rail North Texas
If the initiative is called Rail North Texas, why is there not a greater focus on rail in
the bill outline?
The bill outline was developed to be used statewide and other regions may want to focus
on roadway improvements. The RTC may wish to amend the bill outline to bracket a
section specific to the Dallas-Fort Worth region which states that the primary focus will
be to design, build, finance, operate, and maintain passenger rail. This has long been
the focus of Rail North Texas and will continue to be the focus.
Who is accountable under this model?
This is the strength of this approach. Three groups, working as partners, are all
accountable. First, under this model, the Metropolitan Planning Organization policy body
the Regional Transportation Council in the Dallas-Fort Worth region - is responsible
for making sure that projects stay on schedule. In DFW, the North Central Texas
Council of Governments' Executive Board will hold the revenues, enter into interlocal
agreements with implementing agencies, and disburse funds to local governments and
transportation providers. As recommended by the three transportation authorities, the
RTC will form a Transportation Implementers Subcommittee consisting of the three
transportation authorities, TxDOT, and NTTA. This subcommittee will meet regularly to
discuss project implementation, coordination, and funding issues. Second, subarea
roundtables through public involvement will select the projects. Third, transportation
authorities will extend already proven services to construct the projects.
What if I have a problem with the taxes and fees and don't have a representative
on the RTC or Executive Board? Is there a way to address those bodies?
No projects can be built, or taxes and/or fees imposed, that voters have not approved.
Intemet-based reports will keep citizens up to date. The Transportation Funding Area
TFA) will convene a meeting separate from the normal MPO policy board meeting to
hear from citizens or local government on any concerns. The Regional Transportation
Council has been planning and expediting projects for over 30 years.
1
How will projects be selected by the TFA?
The TFA (the Regional Transportation Council in the Dallas-Fort Worth region)will issue a call for projects to transportation authorities, cities, counties, TxDOT,
and NTTA.
Existing transportation authorities will be primarily responsible to submit rail
projects.
All entities will submit project applications back to the TFA.
TFA staff will evaluate projects based on whether they met basic criteria.
Subarea roundtables will be convened in each county and will be made up of
elected officials and technical staff for the county, each city, and transportation
providers within that county. TFA staff will also participate.
The subarea roundtables will determine the priority ranking of projects within
each county and make a recommendation to the TFA.
Passenger rail will be given priority. Warranted rail lines have already been
established by subarea roundtable members. Rail lines which cross multiple
counties will need special priority attention if supported in neighboring counties.
The TFA will vote on the subarea roundtable recommendations.
This process is identical to recent projects selection efforts of the Regional
Transportation Council.
How will taxes and fees be selected by the TFA?
When subarea roundtables are determining the projects they wish to fund, they
will consider the revenue needed plus contingency construction funding for each
project.
Based on the revenue needed, the subarea roundtables will select an
appropriate mix of taxes and fees at agreed-upon rates for that county and make
a recommendation to the TFA.
The TFA may propose a TFA-wide tax or fee for discussion during the subarea
roundtable process.
Subarea roundtables will approve the taxes and fees.
The TFA will vote on the subarea roundtable recommendation.
How will the election be held?
The TFA will prepare a ballot for each county within the TFA and submit it to the
elections administration of each county to be placed on the ballot. Voters will be asked
to approve both the proposed projects and proposed taxes and/or fees. In each countywherethemajorityofvotersapprovethetaxesand/or fees for the TFA, the taxes and/or
fees will be imposed and projects constructed. Projects are fixed with the citizen
elections and no changes can be made without voter approval.
2
Can a county opt out of Rail North Texas?
Yes, if the subarea roundtable determines not to select projects to participate in the Rail
North Texas election within that county. If a regional revenue source was proposed bytheTFA, the subarea roundtable may wish to consider using that revenue source as a
local match for projects through the Regional Toll Revenue Funding Initiative or
subsequent funding initiatives.
What if a county votes no?
Through the Rail North Texas initiative, local elected officials looked at city-by-city,
county-by-county, or regional votes. The county geography was selected as the most
appropriate, but it could result in one or more counties voting not to join the TFA.
Where this impacts construction of a passenger rail line in more than one county, the
TFA may have to postpone or delete the whole corridor due to lack of funding.
Will money raised in one county be used to subsidize projects in another county?
No. The TFA will keep all funds raised in each county in separate accounts. Monthly
reports will be distributed to the NCTCOG Executive Board, the TFA, and the MPO
policy board. An internet-based reporting system will be accessible to all cities,
counties, and citizens of the region.
Will the taxes and fees ever go away?
Yes, for revenues raised for construction. There will be perpetual revenue needed to
fund maintenance and operations of the passenger rail system, but this is a small part of
the overall funding needed. Any taxes and/or fees for capital (building) expenses will
expire when bonds are retired. If additional projects are identified by a subarea that will
require additional revenue, a new vote called for by the TFA within that subarea to build
other projects could extend taxes and fees if a majority of voters approve.
Who will issue bonds?
The entity carrying out construction will issue bonds for each project. That will be either
a transportation authority, city, county, TxDOT, or NTTA. Authority to issue debt is
included in the bill outline because other areas of the state may wish for the TFA to
undertake this task, but Dallas-Fort Worth will be exempt from that authority.
Who will build the projects?
In the Dallas-Fort Worth region, the TFA will not build projects. Projects will be built by
Dallas Area Rapid Transit, Denton County Transportation Authority, The T, Texas
Department of Transportation, North Texas Tollway Authority, cities, or counties.
3
If the TFA isn't building projects, why should we create a TFA?
Many of the passenger rail projects that are needed in the Dallas-Fort Worth region
cross county boundaries. There is a need to coordinate the planning, financing, and
implementation across the entire region, so a regional entity is best equipped to do that.
In addition, in the DFW region, there is an established process to hold and disburse
funds within the RTC/NCTCOG process so each county won't have to develop a new
accounting and agreement system to implement multiple projects with different entities.
How long will it take to see rail being constructed?
That depends on several factors such as current freight rail use of the rail lines,
environmental reviews, transportation authority staff availability, number of projected
riders, and many other items. Generally, the rail lines in the plan could be open to riders
starting in 2011 through 2030. The timeline will be known to voters and included in the
subarea elections.
Aren't the taxes and fees regressive, meaning harder to be paid by lower income
citizens?
In some cases, yes, but each subarea will be able to select the best taxes or fees for its
residents. The rail lines proposed will benefit lower income populations by providing a
transportation option at a much more affordable rate than owning a vehicle. The region
will push for the vehicle registration fee to be implemented based on the value of the
vehicle.
Transit carries such a small percent of overall commuters, why even bother?
While that may be true if you look at the whole region, our current transit system does
not serve the entire region. Looking at highway corridors where there is parallel transit
service, about one lane of traffic in each direction is removed by transit service. This
benefits the people using transit and the people using the roadway that see reduced
congestion. Looking at the rail map, new rail lines are proposed next to extremely
congested corridors such as 1-35W in Fort Worth, US 75 in Collin County, US 287 in
Tarrant and Johnson counties, and SH 121 in Tarrant County. Rail in the U.S. 75
corridor carries the equivalent of two freeway lanes in each direction.
Will TxDOT just take away traditional funding if our region starts funding
transportation from local sources?
We will make sure that doesn't happen and there is precedent for protecting state and
federal funds. When our region began building toll roads, we obtained assurances from
the Texas Transportation Commission, the TxDOT policy body, for state and federal
funds to never be reduced to Dallas-Fort Worth. Similarly, the Legislature has required
continued federal and state funds even after private-sector concession payments on toll
roads. The bill outline contains a similar provision for Rail North Texas that advocates
will seek during the upcoming legislative session.
4
Why not just try to get more federal and state funds?
That is part of the comprehensive legislative package to improve transportation, and we
are actively seeking an increase in those funds as well. However, local funds are far
more flexible and have less bureaucratic red tape so projects can be built for less money
and much more quickly. So, by raising local funds to stay in our region, we are saving
taxpayer dollars in the long run. Local funds are not impacted by donor/donee losses
and revenue diversions.
Transit won't work in the Dallas-Fort Worth region because it's too spread out,
why are we trying to do this?
The success of light rail through Dallas Area Rapid Transit as well as the success of the
Trinity Railway Express proves that rail transit will work here. DART, DCTA, and The T
have seen skyrocketing increases in passengers this year as gasoline prices soared.
Even as gas prices start coming down, the transportation authorities are keeping most of
those new passengers. Other areas of the country with density similar to or even less
than Dallas-Fort Worth also have successful transit systems (San Francisco,
Minneapolis, St. Louis, etc.)
Shouldn't we be able to elect or vote out of office people raising our taxes?
Most of the members of the Regional Transportation Council are elected officials and
each city is represented by a member of the RTC. Alternatively, the boards of directors
of the current transportation authorities - with authority to impose a sales tax - are not
elected positions, in fact the members are not elected officials at all. Every person
registered to vote will have the opportunity to vote for or against the taxes for the TFA.
These taxes will be for specific projects that can not be changed after the election.
Elected officials (through the subarea roundtables) and citizens (through the election)
will control the taxes and fees for selected projects.
Is this adding another level of government?
No. It will be adding a new tax or fee, but there will not be a new entity created with a
new board and new staff. The existing Regional Transportation Council and NCTCOG
Executive Board will oversee the TFA finances. These are unpaid positions. NCTCOG
staff will administer all of the funds and contracts. While some additional staff may be
needed, the administrative expenses will be minimal. Whether administered through a
TFA housed at the NCTCOG or through the existing transportation authorities, additional
taxes and/or fees are needed to implement the regional rail system.
5
How will voters know what they're getting for the money?
Before going to voters in an election, subarea roundtables will select projects with
specific timelines and related taxes and/or fees. Representatives of the counties, cities,
TFA, and other advocates will present the plans to the public in public meetings,brochures, websites, and other means before the election is held. This will be similar to
bond issuance votes that occur periodically in cities and counties throughout the region.
With voter approval, the projects are fixed in each subarea.
Would tax dollars be better spent on highways since transit doesn't pay for itself?
Almost no transit system in the world pays for itself out of passenger fares. Some
amount of government assistance through taxes or fees is required. The Dallas-Fort
Worth region has an extensive plan to build both rail and highway improvements. In
order to serve an expected population of 9 million by 2030, we will need all modes of
transportation to move people and goods within and through our region. Passenger rail
systems are very reliable and run on schedule. Roadways often are unreliable due to
incidents, accidents, weather, and construction.
Will the TFA start telling the transportation authorities what to do?
The transportation planning process is extremely collaborative. Projects will be built that
have been in the metropolitan transportation plan for decades. The transportation
authorities will be assisting in the refinement of the rail plans for each subarea.
Transportation authority board members sit on the RTC and are vital to the planning
process and are the implementers of transit projects. The TFA will not be involved with
decisions the transportation authorities make on projects funded through current sales
tax revenue. This is merely a way to generate and disburse additional money for
projects that can't be built with exiting revenues.
Sales tax has been the way transit is funded up to this point, why is sales tax no
longer a funding option?
During the last two legislative sessions the region has tried to get additional sales tax
authority for transit, but it has been rejected. We have worked closely with the business
community - the strongest opponents to raising the sales tax - to find new revenue
options. Business is supportive of transit as a way to move employees and customers
reliably. The Legislature has also asked repeatedly for the region to look at other
options. The RTC is trying to balance the needs of all interested parties. The State mayneedsalestaxtofundadditionalneedsforTexasinthefuture.
6
Why are we not using the tri-party agreement from 2006?
Over 100 local governments and chambers of commerce signed onto the tri-party
agreement, which called for the three existing transit authorities to work together to
implement regional rail and called for an additional sales tax of up to 1 percent to be
imposed outside of the DART and DCTA service areas. The support for that effort was
overwhelming, but the Rail North Texas process is fundamentally different. Local
governments and organizations should have an opportunity to evaluate the Rail North
Texas proposal and choose to support it or not based on the new taxes and fees
proposed and the idea to create an infrastructure fund for DART cities. Even thoughsalestaxwillnotbeused, the same three transportation authorities will be asked to
design and construct the additional rail lines.
Will DART cities be double taxed?
Any new taxes and/or fees will be imposed for an entire county, so if Dallas County or
Collin County vote to approve new taxes or fees, DART cities will pay these new taxes
and/or fees as well as the current 1 percent DART sales tax. This will be for new service
as agreed to by the cities within DART. It could be to speed up the construction of rail
lines by decades or it could be to improve bridges or streets. All new revenues in the
DART service area will remain for that service area to construct additional transportation.
This special account is the result of not being able to add sales tax to non-DART cities.
Could the TFA reallocate money away from transit projects when there is a
shortfall of highway dollars?
No. By taking a set of specific projects with specific funding sources to the voters, the
TFA will be making a commitment to fund those projects. An internet-based tracking
system will be created so anyone can see how much money is dedicated to each project
and how it is being spent.
Will creating a TFA slow down the process of building the rail lines?
No. The fact is that none of the rail lines on the map can be built until our region
identifies funding. There are very few cities along the rail lines that can join a
transportation authority because the sales tax cap has been met in nearly every city in
the region. So, by using the TFA to raise revenue, the region can move to construction.
Additionally, the TFA will pass along funds as the transportation authorities begin work.
7
Why are roadway improvements part of something called Rail North Texas?
The primary focus of Rail North Texas is funding a passenger rail system. Because a
previous effort to allow higher sales taxes on a city-by-city basis failed, the RegionalTransportationCouncilbeganlookingatothertaxesandfees, all of which need to be
implemented on at least a county-by-county basis to be successful and not undulyinfluencebuyingorlivingdecisions. This means that taxes or fees could be imposed
over DART residents. Not wanting to double tax anyone for the same service, local
elected officials determined that funds generated in the DART service area could be
used to build supplemental roadway projects. In addition, because a fee may be used in
12 counties, revenues for areas that do not yet have warranted rail projects could go to
roadway projects.
Why not just let the revenues go straight to the transportation authorities?
There must be supreme confidence that the money generated will be used for the
purposes stated at the time of the vote. The RTC and its staff have already developedthistypeofaccountingsystemfortheStateHighway121tollroadpayment. In addition,
because rail projects will cross county, and sometimes transportation authority,boundaries, it makes sense for a regional entity to administer the funds. Finally,
because roadway projects will most likely be involved, a regional planning agency will
already have established processes for transferring funds to either TOOT, cities,
counties, or NTTA to implement projects.
8
Attachment 3
The Rail North Texas Initiative is:
Not creating a new level of government or a fourth transit authority.
Not collecting money in one county and spending it in another county.
Not creating a "one size fits all" transportation solution.
Not creating an additional organization to plan, finance, or construct
projects.
Not deciding for citizens on what they wish to do.
Not double taxing the DART service area since revenue collected
within one area will go to regional rail, accelerating current rail
projects or to build other transportation projects.
Not having construction fees or taxes stay on forever. Fees and
taxes would only last the duration of the bond repayment period.
Citizens would have to elect to build other projects.
Not putting our future on the roadway system only.
Not waiting on TxDOT or others to fund our needs.
Not delaying projects which would result in higher and higher costs.
Not following the current State and federal approach of raising
revenues with no assurances that specific projects would advance.
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Attachment 5
District-wide Local Voter Option
DRAFT Outline - December 11, 2008 Version
The bill shall authorize the eight Transportation Management Areas within Texas to form
a Transportation Funding Area (TFA). The purpose of the TFA is to levy fees and taxes
to generate revenue necessary to fund identified metropolitan area mobility needs.
The metropolitan planning organization (MPO) policy making body may establish a TFA
by a two thirds vote of its members following a public hearing.
The boundary of the metropolitan planning area shall be the boundary of the TFA. If the
metropolitan planning area boundary changes, the boundary of the TFA changes
identically and simultaneously. If the metropolitan planning area boundary splits a
county and the commissioners court of that county resolves that the entire county be
included in the TFA, then the TFA boundary shall expand to include the entire county.
The TFA shall be governed by a board of directors. The board of directors of the TFA
shall be the MPO policy making body, unless the MPO policy making body elects not to
serve as the TFA board of directors, in which case it may establish an alternative board
of directors. At least two thirds of the membership of any alternative board of directors
shall consist of local elected officials of cities and counties within the TFA.
The bill shall authorize a TFA to:
Levy fees and taxes subject to voter approval
Issue debt
Fund operations, maintenance, capital and debt service expenses for passenger
rail, transit, roadways and freight rail
Contract with transportation authorities or transportation providers to provide
mobility services and implement projects
The TFA shall use revenue generated from fees and taxes in a particular county to fund
mobility needs in that county. The TFA may levy the following fees and taxes if
approved by voters at an election on a date authorized by statute:
A vehicle registration fee, not to exceed $150 per vehicle per year
A motor fuels excise tax, not to exceed $0.10 per gallon
A mileage fee, not to exceed $0.01 per vehicle mile driven
A property tax, not to exceed $0.05 per $100 appraised value
A driver's license fee, not to exceed $50
New resident impact (vehicle registration), not to exceed $250
1
For purposes of this bill, "subarea" will mean the geographical area of a county being
represented by city and county elected officials and the public located within that county
geographical area. The TFA shall use the established process and criteria of the MPO
in identifying mobility needs and selecting projects to fund, using the following protocol:
The MPO issues a call for projects
Cities, counties, and transportation authorities within the TFA submit projects
The MPO evaluates and ranks projects on a subarea basis. Subarea
roundtables of elected officials and technical staff provide input on project
rankings and the taxes and fees needed to meet the highest ranked project
needs
The MPO develops a ballot specific to each subarea within the MPO listing the
highest ranked projects and recommended fees and taxes to generate revenue
to fund the projects, correlating projects on the sample ballot to estimated
revenues generated by fees and taxes levied on a subarea basis so that the fee
and tax revenue generated in a particular county funds projects in that county
On a date authorized by the legislature, the TFA shall submit all ballots for voter
approval.
Ballot language adopted by the MPO policy board shall list:
the value of the bonds to be issued
each tax or fee to be levied,
the rate of each tax or fee to be levied,
the month and year in which the tax or fee levy shall begin,
the transportation operations, maintenance and capital projects to be funded,
the sources of revenue that will cease when capital projects are completed, and
the estimated time frame for the implementation of each project.
The vote results shall be tabulated on a county basis. Fees and taxes will be levied only
in a county in which a majority vote is cast in favor of the projects, fees and taxes listed
on the ballot.
The bill shall indemnify metropolitan areas: Metropolitan planning areas shall not be
penalized in terms of losing traditional transportation funding by virtue of their
establishing a TFA and their voters agreeing to pay additional transportation taxes or
fees. TxDOT shall not reduce any allocation of traditional transportation funding to any
of its districts by virtue of a district being in a metropolitan planning area that establishes
a TFA and levies additional transportation taxes or fees.
2
Implementation of this legislation within the Dallas-Fort Worth region will be as
follows':
The primary focus of the TFA created will be to finance the design, construction,
operations, and maintenance of passenger rail. Roadway improvements will be
considered on a supplemental basis and to create equity for municipalities that are
members of a transportation authority.
The TFA will convene as the Regional Transportation Council and will initiate special
meetings at least once a quarter to hear public comments on projects, taxes, or fees.
These meetings shall be properly advertised. A subcommittee of the MPO policy
making body will be created for the transportation authorities and transportation
providers to monitor implementation and funding issues and coordinate system
development.
The TFA will not issue debt. Any necessary debt will be issued by transportation
authorities and transportation providers.
This bill will be implemented in accordance with Regional Transportation Council
Resolution Updated R08-11 and Attachments 1-5.
This process is modeled after the Regional Toll Revenue Funding Initiative.
3
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