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.