How Will Project Connect be Funded? | Project Connect by Capital Metro
Summary
TLDRGreg 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
🚇 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.
🤝 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.
Mindmap
Keywords
💡Project Connect
💡Deputy Chief Financial Officer
💡Funding and Financing Plan
💡Proposition A
💡Capital Metro
💡Federal Transit Administration (FTA)
💡Austin Transit Partnership
💡Tax Rate
💡Anti-Displacement Strategies
💡State of Good Repair
💡Implementation
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
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