Item 4GCITY OF
SOUTHLAKE
MEMORANDUM
January 14, 2009
TO: Shana Yelverton, City Manager
FROM: Ben Thatcher, Assistant City Manager
SUBJECT: Approve Resolution No. 09 -001, Supporting Rail North Texas: a
primary rail legislative program with supplemental roadway
improvements.
Action
Requested: Approve Resolution No. 09 -001 supporting the Regional
Transportation Council's (RTC) legislative proposal to create
a transportation funding authority called Rail North Texas.
Background
Information: The RTC has asked municipalities in the DFW region to
pass a resolution showing support for Rail North Texas, the
highest legislative priority for RTC. Through this initiative
RTC is seeking the authority to create a transportation
funding area made up of existing entities that will select
projects with city and county coordination.
They are also seeking to call an election to levee fees or
taxes from a menu of authorized options. These fees and
taxes will be unique to each county allowing the local elected
officials to select the best revenue options for their
communities. Once revenue is generated, it will be placed in
an account dedicated to each county and distributed to
transportation partners such as Dallas Area Rapid Transit,
Denton County Transportation Authority, and the Fort Worth
Transportation Authority to construct and operate
transportation projects.
The revenue raised will be primarily focused on building 251
miles of additional rail for a seamless passenger rail system,
but other transportation improvements may be selected to
level the playing field for current transit authority member
cities.
Financial
Considerations: None
Financial Impact: None
Shana Yelverton, City Manager
City Council Meeting Date — January 14, 2009
Page 2 of 2
Citizen Input/
Board Review: None
Legal Review: None
Alternatives: Deny the request.
Supporting
Documents: Attachment 1 — Resolution No. 09 -001;
Attachment 2 — Questions and Answers about Rail North
Texas
Attachment 1
RESOLUTION NO. 09 -001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
TEXAS EXPRESSING SUPPORT FOR RAIL NORTH TEXAS: A PRIMARY
RAIL LEGISLATIVE PROGRAM WITH SUPPLEMENTAL ROADWAY
IMPROVEMENTS.
WHEREAS, the City of Southlake is a home rule city acting under its Charter adopted
by the electorate pursuant of Article XI, Section 5 of the Texas Constitution and Chapter
9 of the Local Government Code; and
WHEREAS, the City of Southlake supports regional efforts to address the mobility and
air quality needs of the citizens of North Texas; and
WHEREAS, implementing the passenger rail service component of the Metropolitan
Mobility Plan of the Regional Transportation Council is essential in addressing the
mobility and air quality needs of the citizens of North Texas; and
WHEREAS, local elected officials, business leaders and transportation professionals in
North Texas have studied revenue options to fund transportation and regional rail
expansion; and
WHEREAS, seeking legislative authority for local option transportation fees to fund
transportation including regional rail expansion appears to be the best solution to address
North Texas mobility and air quality challenges.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SOUTHLAKE, TEXAS:
That the 81 Texas Legislature is respectfully urged to authorize metro area counties to
levy subject to voter approval a vehicle registration fee, motor fuels excise tax, mileage
fee, driver's license fee and roadway impact fee to fund their mobility needs including
rail service.
Attachment I
PASSES AND APPROVED THIS THE 20 DAY OF JANUARY, 2009.
Andy Wambsganss
Mayor
ATTEST:
Lori Payne, TRMC
City Secretary
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 Borth 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 1 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.
Internet -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.
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 county
where the majority of voters approve the taxes and /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.
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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 by
the TFA, 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.
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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 RTCINCTCOG 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.
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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 may
need sales tax to fund additional needs for Texas in the future.
A
Why are we not using the tri -party agreement from 2006?
Over 100 local governments and chambers of commerce signed onto the th -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 though
sales tax will not be used, 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 andlor 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 Regional
Transportation Council began looking at other taxes and fees, all of which need to be
implemented on at least a county -by- county basis to be successful and not unduly
influence buying or living decisions. 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 developed
this type of accounting system for the State Highway 121 toll road payment. 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 TxDOT, cities,
counties, or NTTA to implement projects.
A