How Will Project Connect be Funded? | Project Connect by Capital Metro

Summary

Greg Canelli, Deputy Chief Financial Officer of Austin, introduces Project Connect, a comprehensive transportation initiative requiring voter approval on November 3rd. The project, estimated at $7.1 billion, involves collaboration between the city, Capital Metro, and federal grants, with a focus on high-capacity transit systems and anti-displacement strategies. The city's contribution hinges on a property tax increase, and an independent Austin Transit Partnership will oversee implementation, ensuring transparency and quarterly updates to the public and governing bodies.

Takeaways

• 📅 The presentation is about Project Connect, a transportation initiative in Austin, with a focus on the November 3rd Proposition A for funding.
• 🤝 The project is a partnership between the City of Austin and Capital Metro, with a collaborative funding strategy involving both entities.
• 🚌 Project Connect includes a high-capacity transit system, such as bus rapid transit, commuter rail investments, and a new commuter rail line.
• 🏢 The City of Austin's funding would come from property taxes, specifically 8.75 cents of the city's tax rate dedicated to Project Connect.
• 💰 Capital Metro will also contribute funds, and the Federal Transit Administration (FTA) is expected to fund up to 45% of the project costs.
• 🏛️ If approved, the funds would be dedicated to the creation of an Austin Transit Partnership, an independent entity overseeing Project Connect's implementation.
• 📊 The estimated capital cost of Project Connect is $7.1 billion, with financing coming from various sources including the city tax, Capital Metro revenue, and federal grants.
• 🏠 For the average homeowner, the additional tax represents a slightly above 4% increase in their overall tax bill.
• 🔍 The City of Austin has created a website with a calculator for homeowners to estimate the impact of the tax increase on their property.
• 📝 The Austin Transit Partnership would be responsible for providing quarterly reports to the public, City Council, and the Capital Metro Board.
• 🛠️ The project includes various components like light rail, commuter rail, metro rapid lines, and a $300 million investment for transit-supportive measures to address displacement.

Q & A

Who is Greg Canelli and what is his role in the city of Austin?

Greg Canelli is the Deputy Chief Financial Officer for the city of Austin. He is involved in the Project Connect initiative, which is a major transportation project for the city.

What is Project Connect and what is its significance?

Project Connect is a comprehensive transportation plan for the city of Austin that includes high-capacity transit options such as bus rapid transit, commuter rail investments, and new commuter rail lines. It also includes $300 million for anti-displacement strategies.

What is the role of the partnership between the city of Austin and Capital Metro in Project Connect?

The partnership between the city of Austin and Capital Metro is crucial for the development and implementation of Project Connect. They have been working together for over two years to create a plan and investment strategy for the project.

How is the funding for Project Connect proposed to be allocated?

The funding for Project Connect is proposed to come from the city of Austin through property taxes, Capital Metro's ongoing funds, and federal grants, with an expectation that up to 45% of the project costs would be funded by the Federal Transit Administration (FTA).

What is the significance of Proposition A on November 3rd?

Proposition A is a ballot item that, if approved by voters, would dedicate 8.75 cents of the city's tax rate towards funding Project Connect, including both capital costs and operations.

How would the average homeowner be affected by the proposed tax increase for Project Connect?

The additional 8.75 cents tax rate would represent a slightly above 4% increase in the overall tax bill for a typical homeowner. The city has created a website with a calculator to help homeowners understand the impact based on their home's value.

What is the Austin Transit Partnership and what will be its responsibilities?

The Austin Transit Partnership is a new independent entity that would be responsible for managing the day-to-day implementation of Project Connect, overseeing design, construction, and financing, and providing quarterly reports to the public and governing bodies.

How will the city of Austin and Capital Metro maintain their involvement with Project Connect after the creation of the Austin Transit Partnership?

The city of Austin and Capital Metro will continue to have responsibilities in ensuring that the system plan and policy are implemented by the Austin Transit Partnership. They will also be involved in selecting the initial board members and dedicating the annual funding.

What are the various components of Project Connect?

Project Connect includes light rail lines (the Orange and Blue lines), investments in the existing commuter rail line (the Red line), a new commuter rail line (the Green line), additional Metro Rapid lines, park and rides, and other bus and access improvements, along with $300 million for transit supportive investments.

What is the expected timeline for the implementation of Project Connect?

The federal programming process suggests a 13-year implementation timeline for all elements of Project Connect, with some components being implemented earlier than others.

How will the funds be used for Project Connect, both from a cash perspective and in terms of issuing debt?

The funds will be used for both paying for the project from a cash flow perspective and for issuing debt. The financial model is already compliant with the Federal Transit Agency, ensuring readiness for federal processes post-vote.

Outlines

00:00

🚇 Introduction to Project Connect and Funding Strategy

Greg Canelli, the Deputy Chief Financial Officer for the city of Austin, introduces Project Connect and thanks the audience for their engagement. He discusses the upcoming Proposition A vote on November 3rd, which includes funding for Project Connect. The project aims to develop a high-capacity transit system through a partnership between the city and Capital Metro, with a focus on leveraging federal grants and local funding sources. The city's funding would come from property taxes, specifically 8.75 cents of the city's tax rate dedicated to the project. The expected federal funding is up to 45% of the project costs. If approved, the funds would be managed by a new independent entity, the Austin Transit Partnership, responsible for implementation and operation of the transit system.

05:00

🤝 Partnership Formalization and Austin Transit Partnership Responsibilities

The second paragraph delves into the partnership between the city of Austin and Capital Metro, which has been developing over two years. If the project is approved, this partnership will be formalized through the creation of the Austin Transit Partnership (ATP). The ATP will be an independent entity overseeing the daily management, design, construction, and financing of Project Connect. The funding, coming from the city tax rate, Capital Metro's ongoing funds, and federal grants, will be directed to the ATP. Key responsibilities include providing quarterly public reports and aligning the project with other city and Capital Metro operations. The ATP will also ensure the implementation of the system plan and policy. The paragraph also outlines the various components of Project Connect, such as light rail lines, commuter rail investments, and transit supportive investments aimed at anti-displacement measures. The expected timeline for the implementation of these elements is 13 years, with some starting earlier than others.

Keywords

💡Project Connect

Project Connect is a comprehensive transportation initiative in Austin aimed at improving mobility and connectivity within the city. It is the central theme of the video, encompassing various transportation elements such as high-capacity transit systems and investments in existing and new commuter rail lines. The script discusses the funding and financing plan for this project, which is to be voted on by the public, highlighting its significance in the city's development and the community's engagement.

💡Deputy Chief Financial Officer

The Deputy Chief Financial Officer, in this context, is the speaker of the video script, Greg Canelli, who represents the City of Austin. This role typically involves overseeing the financial operations and strategy of an organization, and in the script, Canelli is responsible for explaining the financial aspects of Project Connect, emphasizing the importance of the position in the project's governance and funding.

💡Funding and Financing Plan

The funding and financing plan is a detailed strategy outlining how Project Connect will be financially supported. It includes various sources of funding such as property taxes, ongoing revenue from Capital Metro, and federal grants. The script explains the different components of this plan, which is crucial for the implementation and operation of the project, and is a key point of discussion for the voters and stakeholders involved.

💡Proposition A

Proposition A refers to a specific ballot item that Austin voters will consider on November 3rd. It includes the proposal to dedicate a portion of the city's tax rate towards funding Project Connect. The script emphasizes the importance of this proposition as it directly affects the project's financial feasibility and the city's commitment to improving its transportation infrastructure.

💡Capital Metro

Capital Metro is the public transportation authority in Austin and plays a significant role in Project Connect as a partner with the City of Austin. The script mentions the collaboration between Capital Metro and the city in developing the project and its funding strategy. Capital Metro's involvement is critical for the operational and financial aspects of the project, including the allocation of its ongoing funds towards Project Connect.

💡Federal Transit Administration (FTA)

The Federal Transit Administration is a federal agency that provides financial and technical support for public transportation systems. In the script, it is mentioned that up to 45% of Project Connect's costs could be funded by the FTA, illustrating the significance of federal grants in large-scale infrastructure projects. The expectation of federal funding is a key factor in the financial model for Project Connect.

💡Austin Transit Partnership

The Austin Transit Partnership is a new independent entity proposed in the script to oversee the implementation of Project Connect. It would be responsible for managing the project's day-to-day operations, design, construction, and financing. The creation of this partnership is part of the governance structure for Project Connect, ensuring transparency, accountability, and effective management of the project.

💡Tax Rate

The tax rate mentioned in the script refers to the specific portion of the city's property tax rate that would be dedicated to funding Project Connect. The script explains that 8.75 cents of the city's tax rate is being proposed for this purpose, which would directly impact homeowners and taxpayers in Austin. Understanding the tax rate's implication is essential for voters to make an informed decision on Proposition A.

💡Anti-Displacement Strategies

Anti-displacement strategies are measures taken to prevent residents from being forced to leave their homes due to gentrification or rising property values as a result of development projects. The script highlights a $300 million investment in such strategies as part of Project Connect, showing the project's consideration for the social impact of urban development and the importance of maintaining community stability.

💡State of Good Repair

The term 'state of good repair' refers to the condition of infrastructure being well-maintained and operational. In the context of the script, it indicates that part of the funding for Project Connect would be used not only for construction and implementation but also for ensuring the ongoing maintenance of the transportation system once it is built, which is crucial for its long-term sustainability and effectiveness.

💡Implementation

Implementation in the script refers to the process of putting Project Connect into effect, including design, construction, and operation. It is a central concept as the script discusses the Austin Transit Partnership's role in overseeing this process. Effective implementation is vital for realizing the project's goals and ensuring that it meets the community's transportation needs.

Highlights

Greg Canelli, Deputy Chief Financial Officer of the City of Austin, thanks participants for engaging in Project Connect.

Project Connect's funding and financing plan is discussed in detail ahead of the November 3rd election.

A partnership between the City of Austin and Capital Metro has been established for over two years to develop Project Connect.

The city council and the Capital Metro board are working on an investment strategy for Project Connect to be presented to voters.

Project Connect includes a high-capacity system, commuter rail investments, and anti-displacement strategies funded by local and federal sources.

The City of Austin's funding source for Project Connect would be property taxes, specifically 8.75 cents of the city's tax rate.

Capital Metro and the Federal Transit Administration (FTA) are expected to contribute to the funding, with up to 45% of project costs covered by the FTA.

If approved, funds from Austin would be dedicated to Project Connect and a new independent Austin Transit Partnership overseeing implementation.

The Austin Transit Partnership will manage daily operations, design, construction, and financing of Project Connect.

Quarterly reports will be provided by the Austin Transit Partnership to the public, city council, and Capital Metro board.

The city of Austin and Capital Metro will maintain responsibilities for ensuring the system plan and policy are implemented by the ATP.

Project Connect's estimated capital cost is $7.1 billion, financed by ongoing revenue, federal grants, and city tax.

The impact of the 8.75-cent tax rate on homeowners is detailed, with an average increase of slightly over 4% in the overall tax bill.

A website for Proposition A and Project Connect provides a calculator for homeowners to estimate the impact on their tax bill.

The formalization of the Austin Transit Partnership through the creation of an independent entity responsible for Project Connect.

Elements of Project Connect include light rail, commuter rail, metro rapid lines, park and rides, and transit supportive investments.

A $300 million investment is highlighted for transit supportive measures to address anti-displacement in affected areas.

The federal programming process is expected to lead to a 13-year implementation timeline for all elements of Project Connect.

The presentation concludes with thanks to participants for learning more about the project funding, financing, governance, and implementation of Project Connect.

Transcripts

hello there my name is greg canelli i'm

with the city of austin the deputy chief

financial officer

i want to thank everyone for taking the

time to engage on project connect

and learn more about the project and the

funding and financing plan for project

connect

uh november 3rd proposition a from the

city of austin

includes uh funding to fund project

connect

and in order to spend some time today

walking you through in more detail

how that project financing works and how

the implementation of project connect

will work

in advance of the election so with that

we have a few slides to show you

i think the first thing to talk about is

the partnership between the city of

austin and capital metro the city

council and the capital metro board have

been working for over two years

to put together a plan and an investment

strategy

for project connect and what has been

key to that investment strategy and

funding strategy

has been to take the plan to the voters

and again that's what will be occurring

on november 3rd part of the

main part of the the effort is for

project connect to fund a high capacity

system

but to collaborate with each other in

terms of funding that

the way we look at that the overall

project connect system which includes

different elements

high capacity bus rapid transit

investments in our existing commuter

rail and new commuter rail

as well as 300 million dollars for

investments in anti-displacement

strategies

is to partner together on the funding

the city of austin's funding source

would come from property taxes

again that is what is in front of the

voters this november

from dedicating a portion 8.75 cents

of the city's tax rate that would be

dedicated to project connect

in addition capital metro will be

dedicating funds

this year and in ongoing years to fund

the system as well and most importantly

the federal grant from the federal

transit administration

we reasonably expect that up to 45

percent of the project costs would be

funded by

the fta and we believe the local funding

is a good way to leverage those

federal funding sources

if the funding is approved by the voters

the funding from the city of austin

would be dedicated

to towards project connect and would

also be dedicated towards

a new independent uh

partnership the austin transit

partnership that would oversee

implementation

of project connect all of these funds

would be used

to build the system and most importantly

to operate the system in the future

and also take care of the system once it

is built from a state of good repair

funding would be used for both paying

for the project from a cash perspective

as well as issuing debt what is key to

the integrated financial model that we

built

is that it is already a federal transit

agency compliant model

so once a vote occurs we'll be ready to

work with the federal government

on those processes so next up

i wanted to talk about the investment

and what it means for austin's taxpayers

again the

overall estimated capital cost of the

project

is 7.1 billion again the financing would

come from

ongoing capital metro revenue federal

grants

and then the city tax again to vote this

the proposition a in front of the voters

on november 3rd

is to dedicate 8.75 of the city's tax

rate

towards this project connect including

the capital cost in the unm

so what does that mean for the average

homeowner

we certainly recognize that austin

homeowners

have in addition to the city of austin

there's other taxing jurisdictions and

what we wanted to show you here was

different home values from 250

000 to 750 000

and what this 8.75 cents would mean

to each of those home values both on an

annual perspective

and a monthly perspective overall

from an overall tax bill that a that a

typical homeowner pays to all taxing

jurisdictions

this additional 8.75 cents represents

about over four slightly above four

percent increase

in the in the tax bill as was mentioned

the city of austin has created a website

for

proposition a project connect and on

that website

we have a calculator so that each

homeowner can go look up the value of

their taxable home

and see what the impact would be for

themselves

we think that's a key part of the

transparency to make sure that the

voters have

the information in front of them as they

approach the election

on the next slide i want to come back to

the partnership between

the city of austin and capital metro as

i've mentioned that has been a

partnership that has been working in the

last two years

to develop the project connect plan with

the community

and to put this plan in front of the

voters this november

if approved this partnership would be

formalized through the creation of the

austin

transit partnership let me walk you

through in more detail what this austin

transit partnership

would be responsible for in terms of

project connect

first and foremost austin transit

partnership will be a new independent

entity that will be responsible for

managing the day-to-day project connect

implementation and overseeing the design

construction and financing of project

connect

as i mentioned the funding would be

coming from the city of austin via the

tax

via the tax rate and also from capital

metro ongoing

funds and the federal funds that we

again we

estimate to be about 45 of the overall

capital project costs these funds would

go to this new create newly created

austin transit partnership

again the focus would be on governance

and planning and implementation of

project connect

and the financing of the entire system

key key responsibilities of the new

independent austin transit partnership

would be

providing quarterly reports to the

public

and then to austin city council and the

capital metro board

there will be the capital metro and

board and city council would come

together at least annually to make sure

that the project is

moving forward he'll be an independent

auditor that looks at what is occurring

and we also want to make sure that as

the project connect

elements are being built out there would

be close alignment with

other capital metro operations city

of austin and capital metro will also

maintain responsibilities

making sure that the system plan and

policy is being implemented

by the atp they will also

be officially forming the austin transit

partnership

and selecting the initial board and then

each year they will be

dedicating that funding if it was

approved by the voters

and again the independent nature of the

austin transit partnership

um is key to the funding uh cut the

funding partnership as well

so let me talk to you a little bit about

how the allocation of the funding would

work from a project perspective

and on the next slide i can show you

that as you've as you've heard

throughout this presentation there are

many elements and components to project

connect

it includes light rail the orange line

and the blue line

investments in our existing commuter

rail line the red line as well as a new

commuter rail line the green line

additional metro rapid lines investments

in those

park and rides as well as other metro

bus and metro access improvements and

also key that i really want to highlight

is a 300 million dollar investment in

transit supportive investments

to help with uh anti-displacement

measures throughout

the corridors and areas where project

connect will be investing

over the over time these funds these

dedicated funds that would be coming to

the austin transit partnership

would be invested in each of these

elements

and we expect that part of the federal

programming process is once federal

programming and

dollars are approved that we'd be

looking at a 13-year

implementation of all the elements

although some are earlier

and some takes place over the time so

again we think it's important to show

you how those funds

would be expended over time

so again i want to thank everybody for

taking time to

to look more at the project funding the

project financing

and the overall governance and

implementation of project connect

and thank you for joining us to learn

more about project connect