Loading...
HomeMy WebLinkAbout10B Governor's Transit Funding Proposal Support O � PRIp ti � v � 4646 Dakota Street SE Prior Lake_ MN 55372 `�INxESO� CITY COUNCIL AGENDA REPORT MEETING DATE: Aprii 22, 2013 AGENDA #: 10B PREPARED BY: Frank Boyles, City Manager PRESENTED BY: Frank Boyles AGENDA ITEM: CONSIDER APPROVAL OF A LETTER TO THE CITY'S LEGISLATIVE DEL- EGATION SUPPORTING THE GOVERNOR'S TRANSIT FUNDING PRO- POSAL DISCUSSION: Introduction The purpose of this agenda item is to determine if the City Council supports sending a letter of support regarding the Governor's transit funding proposal. Histo The source of transit funding in the State of Minnesota has evolved over the years. Initially a transit taxing district was identified which more or less corre- sponded with the metropolitan area, and a tax levy was made against the prop- erties therein and the property tax distributed to the various transit providers by the Metropolitan Council. More recently the transit taxing district was replaced by the Motor Vehicle Sales Tax (MVST) as the primary source of transit funding. As transit investments have grown in the metropolitan area (added buses, bus routes, light rail lines and stations), it has become apparent that MVST funds I will not sustain such growth. , Current Circumstances As part of his budget, Governor Dayton has proposed that an additional '/4 cent sales tax be levied in the metropolitan area to fund transit operations and capi- tal improvements. Various cities, including Shakopee and Savage, have written letters to the Governor and/or legislative delegation supporting the Governor's funding proposal. This funding proposal would restore transit funding for the biennium to $129 million. The Governor's proposal included a$46 million cut to the transit base which was to be offset by the sales tax increase. The House of Representatives and Senate have their own funding bills with dif- fering provisions. Neither would entail the increase in sales tax. The House bill relies upon an increase in wheelage tax metro-wide; while the Senate bill would actually exceed current transit funding targets by $17 million, but rely upon an unidentified revenue source or corresponding budget cuts. It is unclear at this time the direction transportation and transit funding will take. Conclusion The Council should determine if the attached letter promotes transit investment while recognizing that the final funding package, therefore, is unknown at this time. ISSUES: The question of who would control the additional %< sales tax is not yet deter- mined. The Metropolitan Council would seek to control the funding. Some dis- cussion has also focused on the'/4 cent sales tax which counties may impose upon themselves in support of local transit expenditures. To date, Washington and Scott counties have not authorized this levy. One possible scenario is that the Counties Transit Improvement Board (CTIB) funding source becomes man- datory and not optional on all counties through the CTIB. The Council may wish to determine first if there is a need for additional transit funding. In doing so, they may wish to consider that projections we have for BlueXpress suggest a funding shortfall by 2015-2016. The system presumable would have to operate at existing levels rather than accommodate the growth we anticipate unless some other no-cost or reduced cost solution is found. The Council may also wish to consider the extent to which an effective transit system supports community and economic development. Some suggestions project that transit investments lower the cost of roadways by reducing the number of lanes which are necessary to serve ultimate demands. Attached is an article from the Metropolitan Council website summarizing the perceived benefits of the Governor's proposal. FINANCIAL Given that the final legislative outcome is unknown, the financial impact is diffi- IMPACT: cult to calculate at this time. ALTERNATIVES: 1. Approve the attached letter or an amended version thereof supporting transit investments. 2. Take no action. I, RECOMMENDED As determined by the Council. MOTION: i O � PRtp ti � v � 4646 Dakota Street SE Prior Lake, MN 55372 �Mxsso'� April 22, 2013 TO LEGISLATIVE DELEGATION MEMBERS RE: Metro Area Transit Sales Tax Dear: In a matter of weeks, the legislature will put the finishing touches on a transportation funding bill. There are many transportation followers - each advocating a different approach to funding, budgeting and services. While we have no official word about what will be included in the omnibus transportation finance bills, one of the options discussed most often is an increase in the metro area sales tax dedicated to transit. The City of Prior Lake, along with our transit partners in Scott County, supports funding for transportation and transit. As you know, through the last decade, Scott County has been one of the fastest growing areas in the country. Ridership on BlueXpress, the commuter bus service operated by the cities of Prior Lake and Shakopee, increased by 254% between 2007 and 2012. At the same time, we have been held to the same transportation funding levels for several i years. The demands and expectations for transit service are growing as our population and ' employment growth continue. I The Prior Lake City Council supports an increase in transit funding along with the continuation of the transit taxing district (TTD). You will recall that the Legislative Auditor's report issued in January 2011 proposed expanding the transit taxing district (TTD) to cover the entire 7-county metropolitan area. The TTD, which uses property taxes to support capital funding, is stable and provides assurance that our buses are maintained and replaced within their projected life cycle. Given the uncertainty found with operating dollars, which are volatile during economic downturns, we do not want to see capital funds compete for this same sales tax revenue. Suburban Transit Providers are proud of our 30-year history of providing stellar transit service. We believe an increase in funding is justified and further suggest that each provider (i.e., Prior Lake, Shakopee, Maple Grove, Southwest Transit, Plymouth MetroLink, and Minnesota Valley Transit.) of services become a direct recipient of this funding. Thank you for your continued efforts on behalf of transit service in the metro area. Sincerely, Kenneth L. Hedberg, Mayor City of Prior Lake Phone 952.447.9800 / Faat 952.447.4245 / www.cityofpriorlake.com Metropolitan Council - Mayors from across the region endorse governor's transit sales tax... Page 1 of 2 About Us News & Events Data & Maps Publications Doing Business Council Meetings Contact Us �i COMMUNITIES PARKS TRANSPORTATION WASTEWATER & WATER HOUSING PLANNING MEo RO pOL�ITAN MAYORS FROM ACROSS THE REGION ENDORSE GOVERNOR'S TRANSIT UPCOMING EVENTS SALES TAX PROPOSAL Southwest LRT Station Plan Open Houses Set for April - Posted In: Transportation Date: 2/26/2013 May Hennepin County and its Share More 0 partners are hosting open houses in April and May to Momentum is building in support of Gov. Dayton's proposal for a new sales tax dedicated to transit in the seven-county engage the public in planning metro area. And that support is coming from cities across the region. work around proposed light rail transit (LRn stations for the "We are stepping up as a city who believes in transit," said Shakopee Mayor Brad Tabke at a Feb. 26 news conference, Southwest LRT line "...because there's no way that we will, as a city and as a region, continue to create the jobs we are currently without . having a comprehensive transit system that we can rely on to get people back and forth." Date: 4/i8/2013 As currently proposed, the dedicated sales tax would generate revenues that would allow: Time: 5:30 PM Location: • growing the bus system by 1% each year; 4 locations--see details • building and operating light rail in the Southwest, Bottineau and possibly the Gateway corridor (bus rapid transit is More Details also being studied there); and • providing for as many as 12 new arterial BRT and streetcar lines, and 5 highway BRT lines, throughout the region in Thrive MSP 2040 Roundtable the next 20 yea�s. Meetings begin in April Join the Council for Thrive Staying competitive in the global economy MSP2040roundtable The core concerns of officials who are getting on board with the governor's proposal: discussions on four key areas affecting our future. • attracting businesses, jobs and talented workers Date: 4/30/2013 • connecting workers with jobs Time: 6:30 PM • ensuring goods can move freely throughout the region Location: ' • keeping the region competitive in the global economy 5 locations and dates -- see details "The bad news is that regions around the country are More Details I investing far more in the kinds ! ,, of transportation infrastructure that grows jobs," said ENEWSLETTER Minneapolis Mayor R.T. Rybak. II Subscribe to our newsletter "The good news is that we have a governor who has put a � Enter Email Address bold plan on the table that will SIGN UP allow us to make dramatic and incredibly important investments in the transit infrastructure that grows jobs. C4NNECT We have a great plan on the table." Our region is falling behind cities like Denver and Salt Lake City that are attracting workers Brad Tabke, mayor of Shakopee in Scott County, speaks in favor of Gov. Mark and employers because of their Dayton's proposal for a transit-dedicated sales tax. The Shakopee City Council aggressive investments in recently approved a letter of support for the measure. Also pictured are (from left) transit, both Rybak and Saint Eagan Mayor Mike MCGuire and Minneapolis Mayor R.T. Rybak. Paul Mayor Chris Coleman noted. "People are choosing to come to communities, businesses are choosing to come to communities, because [those communities] have options that include first-class transit systems," Coleman said. Getting people to jobs, saving households money West St. Paul Mayor John Zanmiller talked about his work with unemployed people, and how they are often unable to get to where the new jobs are located. "[Jobs] are popping up in cornfields, iYs not just the industrial centers anymore," Zanmiller said. "IYs important that we have effective transportation that moves people in both directions to where the work is to keep our productivity up." Zanmiller said he recently spoke to an employee of a new store in West St. Paul who told him she took the job because it http://www.metrocouncil.org/News-Events/Transportation/Newsletters/Mayors-from-acros... 4/ 17/2013 Metropolitan Council - Mayors from across the region endorse governor's transit sales tax... Page 2 of 2 was on a bus line. "She said `I was spending too much money driving to work every day.'" But it isn't just the people who use transit who benefit from it. Fully one-third of all commuters during peak travel times use transit, said Metropolitan Council Chair Susan Haigh. Each full bus represents about 70 people who aren't in their cars on area roads, and that eases traffic congestion. Without increasing investments in transit, that congestion will only grow with the population in coming decades. "We need to have the kind of transit system available that allows us to move people...in the most effective and efficient way possible, so that goods can move more freely on our roadway system," Edina Mayor James Hovland agreed. Why accelerating the transit build-out matters A recent study by the Itasca Project, a group of Minnesota business leaders, concluded that building the regional transit system proposed in the Council's 2030 plan would result in $6.6 billion to $10.1 billion in direct benefits, on a$4.4 billion investment (between 2030 and 2045). Accelerating the system build-out to 2023 would resuR in increased direct benefits, between $10.7 billion and $16.5 billion on a$5.3 billion investment, the study showed. More community growth targeted near transit stations would increase the return on investment by an additional $2 to $4 billion. "The governor in his proposal has provided bold leadership," said Mayor Coleman. "Let us all be bold leaders on this issue. Let us make sure that we are competing against all the other regions in this country that are making huge steps forward on transportation. "And when we do so, the Twin Cities region will be second to none in terms of the quality of life, the ability to attract talent, and the ability to attract jobs. Ultimately, thaYs what this is all about," he concluded. Posted In: Transportation Tags: About Us News & Events Data & Maps Publications Doing Business Council Meetings Contact Us ENewsletter Sign Up Connect wth Us The mission of the Metropditan Council is to foster efficient and economic growth for a prosperous metropditan region. Enbr EmaN Addnss 3� Ro6ert Streei North St. Paul, MN 55101 651.602.1000 SIGN UP Terms & Conditions Sitemap Privacy Policy Employment � Metropolitan Council http://www.metrocouncil.org/News-Events/Transportation/Newsletters/Mayors-from 4/ 17/2013