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Ladies and gentlemen, thank you for standing by. Welcome to the U.S. Department of Transportation's introduction to transportation utility fees, maintaining local roads, trails and other transporting a primer conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. If you should require assistance during the call, please press star and then zero. I would now like to turn the conference over to your host, Thay Bishop. Please go ahead.
Good Morning and Good afternoon, everybody. My name is Thay Bishop. From the Federal Highway Administration, Center for Innovative Financial Support. I am also co-lead to the Everyday Counts Fifth Round Value Capture Innovation with Stefan Natzke, the team manager from headquarters office of Planning, Environment and Realty. On behalf of the EDC 5 Value Capture Implementation Team, we welcome you to our 2021 Value Capture Training Series. Many of you have been with us since 2019. And I want to give you a lead recap.
In 2019, the webinar series were ten or 11 events. We have provided you a general understanding about value capture and how it can be used to supplement funding for transportation infrastructure needs. We demonstrated -- Value Capture can be a powerful funding sources provides gap funding for transportation improvements. It should be a part of your transporting infrastructure funding solutions but only supplement and not intended to replace additional funding sources.
Value Capture funding sources can be flexible, equitable, can be supplement funding the 21st century mobility infrastructure such as highway transit, pedestrian, bicycle, micromobility, safety, complete street, smart road technology, and leveraging internet of thing. We provided you the examples of relevant Value Capture projects by partnered with 32 experts from the states, counties, cities, and private sector to share their Value Capture projects.
In 2020 Virtual Peer Exchanges Series, we have proven Value Capture strategies have successfully implemented and have advanced many transportation projects including economic development and redevelopment, livable communities, create jobs, and economic activities and can be used in urban, suburban, and rural setting. We partnered with additional 25 experts from states, counties, and cities to discuss their experiences in implement Value Capture projects included opportunities, and challenges and their solutions to those challenges.
The 2021 Training Series resulted from your feedback and you have shape our program. To this end, we are developing a series of technical materials that deep dive into Value Capture mechanism as we refer to as the primer. The primer provides you detailed information of what, how, when, and where value capture practices. The first primer is Transportation Utility Fees. Our subject matter expert consultant and the two city experts who have successfully implemented this will provide the training today. We are thankful for their time and look forward to learning from their experiences, and we hope you do, too. Please don't hesitate to ask them questions. This is your opportunity to interact and engage with all experts.
Again, we welcome you to 2021 value capture webinar training series. With that, I will turn it over to Charity. Charity -- takes it away.
Thank you, Thay. I am Charity Coleman with the U.S. department of transporting a much I will facilitate today's webinar and help address technical issues. We have a great set of presenters today, and they will share your experiences and expertise. Transportation utility fees. In the top left corner of the screen, you will find the audio and you can use is that to submit questions in -- during the webinar. You can ask questions by pressing star 1 on your phone and you will receive instruction later. If you have technical difficulty, use the chatpod or window to send a private message to me and you can start a private conversation to address your issue. You can do that by clicking in the chatpod on the bottom left of the screen. Our webinar will run until 3:00 p.m. today. We will field questions for the presenters to -- throughout the webinar, and we should have time at the end of the webinar for additional questions. This presentation will be available for download at the end of the webinar. And the recording of today's event is also -- at FHWA Value Capture website. I would like to turn it over to the moderator today. Our moderator is Mr. Sasha Page. Sasha is a principle at IMF rebel group. He has over -- IMG rebel group. He has over two experiences -- years of experience, project development and public-private partnership with transportation and other infrastructure. He is focused on how value caption tools can fund now and existing infrastructure with the federal highway and in a variety -- I would like to turn that over to Sasha Page. Sasha?
Thank you very much, Charity. I am pleased to moderate this session -- Tina spent her 25-year career in various roles in the department and the most extensive effort is building a transportation division, where she developed and implemented the current asset management program. And on the development and implementation transportation utility fee. Today, she continues to provide direct management over the division while providing executive leadership to a department for manning divisions. Also, joined by David Klockeman who is a senior civil engineer from the City of Loveland, Colorado he has extensive experience in transportation planning from his 38 years in the field all in Colorado, although he is a graduate of the University of Minnesota. As a former management engineer and city engineer, the experience includes creating and implementing plans and policies and product delivery to all phases of the instruction. He currently is over the cities transporting a planning, primary and regional transportation corridors. Pavement management and rehabilitation program. He informs us that Loveland is blaming for many inches of snow in the next hours and days see the street maintenance in his city is going to be heavily used this summer. And next slide, please. So, as you can see, we have prepared a session for you that is going to go with the details of transportation utility fees. This is a focus on trainings and as Thay said, this is great for beginners and for those of you who have experience in the field. We hope to have a bit of a keep dive into some of the issues waiting for the application of TUFs and administrating a TUF, a transportation utility fee and we will break up the session with a couple of quizes to make sure you understand the material and including an hour and 20 minutes. We welcome your comments and plough feel free to use the chatroom to ask questions of us. Feel free, of course, to discuss amongst yourselves as well and if you press pound 1, I believe, you can ask the question of us and we'll try to address the questions either in time or after the end of the session next slide, please.
So, you know, what are TUF? I will use the word TUF -- tuf over and over again. They're periodic fees paid by a property owner or building occupant to municipality based on a use of a transportations system, increw including local streets, arterial sidewalks, bicycle lanes and public paths and TUF can be called maintenance fees, utility fees, as you can see on this slide here. Most importantly, they treat streets like utility. And essentially requiring most users to pay them. Pay for them because they use streets and we know the usage creates a maintenance need. Next slide, please.
Why use TUF? The main reason is that funding for maintenance decreased the last 30 years. Traditional funding sources like gas taxes are -- to meet local demand for road maintenance needs. I think part of it goes back to the State of Oregon and their states as well where the gas tax and state gas tax is not increasing with inflation and that is a key funding source for many localities. They can be as little as a couple million a year, but the gas that the tough tough --TUFs program, most of the TUFs are used for streets and the infrastructure sometimes have been used for transit, primarily for streets. Next slide, please it of tuffs have bene -- TUFs have benefits. They can foster efficiency, equity, and stakeholder benefits. In terms of economic efficient, they can better link the collection of monies for maintenance with those who actually get -- to create the maintenance fees. So, by the fees, transportation system, TUFs may avoid the property market distortions that can occur if property taxes are used to fund. In addition, administration of TUFs is efficient. The majority of TUFs are collected with other utility fees, including water and minimizing administration fees. TUFs may lead to a more equitable allocation of maintenance costs. A more fairly allocate the burden to those who benefit from the streets and business some TUFs are lowered for those homeowners with cars or a home vacant. Further, many TUFs program address the financial burdens that provide discount to homeowners unemployed and have income below a local median next for our elderly. Furthermore, TUFs is shown to provide greater transparency and how public monies are spent on public infrastructure and many cities and towns have TUFs, the treatment of programs are using a handful of funding sources where they can be a major component. And they help build trust to local stakeholders affected by the fee. Next slide.
We'll talk about establishing a TUFs program. Next slide, please.
What we found is five steps or issues that need to be addressed when establishing a TUFs program. You want to determine the objectives. Why are we doing this? What is the goal to -- from Municipality to filled the gap? Second of all, to determine the costs and the gap and what is reasonable with the TUFs. Third, they set the rates and make sure that is -- the manner. Fourth, it's critical to inform the public that the community is going to be implementing a TUFs ordinance and five, adapt the ordinance and notify the public of what is adapted and the procedures that will occur to collect the TUFs. Next slide, please.
And many municipalities have ongoing programs and several sources. It's usually consisting of maintenance or master plans that set out to the maintenance program over a short and median term, usually one to five years. Staff sometimes with outside specialists between the plans, which include the projects based on the paint naps policy. In term, it's used on the city's index commission goals. A common measure of the physical condition of street pavement. As you can see, this is an example from the City of Killeen, Texas, used to show the benefit of maintenance and the presentation they developed in establishing TUFs. This was, as you can see, normally shows -- sorry, informally. The city maintenance programs, identifies those street pavements which repair can prolong it. For instance, by incoming by as much as 50%. Which compares to other road segments in such poor condition that require reconstruction and therefore, do not benefit from the maintenance repair. You can see the chart here. Really focused on the upper -- in street maintenance monies. The other thing, the program may be established to repair streets along one road and spending limited street name and money and ignore one road. Maintenance is not cost-effective and leave it to rebuild and resurface another road that looks like it's in good shape and an overload that can result in a higher return on investment as I mentioned. The final consideration in determining the objective is the coordination with other utilities, which are often buried in roads and require access to streets to repair and install new water, electric and other infrastructure. It would reduce the frequency of street repair from cities to coordinate the maintenance plans with other municipal utilities which may reprioritize in return, some maintenance space and utilities. And this is an ongoing process. They will talk about some of the tradeoffs that occur. And next slide, please. I am going to turn this over to Dave from Loveland, who will talk about how Loveland determined the process in this.
Thank you, Sasha. Good morning, good morning here in Colorado. Good morning and good afternoon to the rest of you folks. The City of Loveland, as part of the effort in the late '90s, actually -- the committee to look at transportation finance not only for maintenance, but for new infrastructure and to give you a bit of information about Loveland, we located about 40 miles north of Denver and about 10 miles south of fort Collins. We have a current population of under suck the thousand and growing by 60% since the year 2000. So, from 50,000 to 80,000 in the last 20 years. And the committee came out with recommendations they came from a well-rounded group of people including three city council members, three members of the development community related to the impact fees, three citizens and two consultants. And the recommending as that came out of that were to -- the fund, increase the frequency of when we were able to touch every street from ten years to seven years and was set to increase our street funding by a little over $800,000 at that time, or 30%, and it imposed a street maintenance fee on each property that was included in the monthly utility bills. Our fees called the street maintenance fee, and it was based on a combination of traffic volume and truck volume on different levels of streets. Next slide, please. I will turn it over to Tina.
Thank you, Dave. Good morning and afternoon, everybody. So, for Hillsborough, we were in -- actually, sounded like a similar situation to Loveland. We were a city rapidly growing. We had a population of 42,000 people when I started in '96 and we're at 104,000. That became a conversation that we were flirting with early 2000 to actually fund bicycle and pedestrian infrastructure. We had implemented the pavement management program in the mid-'90s and given the rapid growth that was built in the' 90s, and we were seeing a long-term problem approaching with the volume of the third maintenance, relative to what we had at the time we started this conversation. And in 2007, we were sitting with $900 million of deferred payment and in 78, which was good. We were fearful of what was coming 25 years down the road as all that and the early '90s growth was coming into the failure points. So, we switched gears and we planned for the transporting a utility fee to fully fund our pavement management program -- our state and local gas takes and more in-table funds to pay for bicycle and pets infrastructure to build that up. And it was a selling point as we were developing it to build it, but it became, we'll talk about later, a bit of a program challenge, having the dual messaging. And I think with, that I am passing it back to Sasha.
Great. Thank you, Tina. And so, we talked about determining the objectives and now determining the cost and budget. So, the budget will vary, of course, by the availability of funding sources, including as I said, gas tax, sales taxes, property taxes and new TUFs. And many cities will start the TUFs programs and decline the funding from additional funding sources like gas taxes. We found in research is that TUFs has been able to fund a substantial portion of the municipality street vendor's program in the range of 40 to 50%. For instance, Loveland, Colorado, set TUFs to fund 40% of the program. And Hillsborough at -- Hillsboro, at 60% of the program. Corpus Christi, 60% of the program with TUF. The chart shows what TUFs does is they alleviate the pressure on other funding sources. And as we'll discuss, the gas taxes, which are useful funding tours from that -- and can be used for other purposes like building new streets and assets, which you might be able to use for financing. I think there is a question here and it will briefly respond -- I will ask them to respond as well and a question from Charles Roy, what are the benefits to using a TUFs of adding a sales tax fee for road maintenance versus adding a sales tax fee to the maintenance? TUFs exploited the property owner and not to the visitors and commuters or tourists. That is a fair point. And I guess my official comment on that is that TUFs doesn't necessarily replace other funding sources as the graph shows and the community has a sales tax. In addition, as much as a tourist uses the restaurants or subside -- stops at a gas station or going to a venue, those facilities pay TUFs to the facility as you will hear shortly. Therefore, some of the value is captured. Good. Let me go on to the next slide, please. Let's talk about establishing the program and determine the cost and budget. I will ask Dave here to talk about what Loveland's done and then about Hillsboro. Dave?
Thank you, Sasha. In Loveland, when the street maintenance fee was created, it was combined with other foes to address the question of, you know, who pays and how should they pay? A portion of the fee comes from our street maintenance fee and it's combined with the funds through the State of Colorado and the highway users tax fund, which is the gas tax, and supplemented by general funds which, is sales tax revenue. For that, we get a contribution from residents and visitors. And a little, another thing about Loveland is that U.S. 34, which connects to Estes Park in Rocky Mountain National Park, the largest tourist attraction in the State of Colorado, earning between 2 and 3 and 4 million visitors a year. Funding it from one of those sources -- and the committee decided it would be best to have multiple funding sources to complete the picture, and basically, have all of the people that use our street system contribute to maintaining it over time. Now back to Tina.
Thank you. As I mentioned, we originally modeled this to take care of all of our pavement management needs. And that was our proposal, what it would cost to take care of our programs and get us out of deferral. I was going to free up the airport for bicycle and pedestrian improvement. We hit public hearings. We got a surprise out of our couple and our commercial community, even though they were with the table all along, put this ninth hour. We don't support our, we don't think we benefit from bicycle pads, and we don't want our they were freeing up revenue to pay for bike ped. Our counsel cited that was a logical environment, I don't know how, but they supported that and felt the residential fee was not substantially burden som. So, they left the rates for the residential customers the same and reduced the rates for the nonresidential customers. Which wound up leaving us with bifurcated program where we have a pavement management portion of the transportation utility fee and that revenue, which didn't fight the methodology, to support the pavement management from residential customers are diverted into a best pedestrian bicycle program and it's the fixed amount for our residential customers.
Thank you. Go to the next -- .
yes.
So, I want to say, here, the municipalities conduct studies and whether they implement the program. Studies are initiated or carried out by initial staff. And respective legislative body or ad hoc activities group. I think we'll talk about that shortly. In most cases, the studies are the public and use the legislative considering of TUFs. You can often find these respective websites of the communities and on the website of the FHWA to capture website, which has some of the websites links. Teen a maybe you can talk about Hillsboro's process, involving the ad hoc committee on finances?
We hired a consultant to guide this process. And we assembled a committee of princes from vary -- representatives from various home associations, our chamber of commerce and was a member. We had several government institutions on there from Hillsboro school district, a separate entity. Pacific University, a major university in town and one of our local hospitals. We also -- and Intel is our major employer, so they were on board through this process. One of the things that we knew going into that based off of the things we had gleaned off of other agencies that participate in this is the most challenge for these fees comes out of the greaser's, and the -- grocer�s and the gas stations. And so, we attempted to include them in part of the process. We kept them informed the whole entire way. They never chose to participate in any of the meetings. Ultimately, they did not contest our foe as it was developed, but, you know, knowing who those people are who might have an objection to it, I think, keeping them informed is important in this process. We had a series of issued papers we discovered and went through in the process. We talked about the funding, what is a rate, what is a revenue requirement. How do we allocate it? Are we doing waivers or discounts? And talking about it with administrative foes and what that looks like. We had a series of nine meetings to go over this in a year timeframe. We do have all of our ad hoc committee reports and papers on the website, if anyone is interested and looking at those.
Right. Next slide, please.
As I said, informing the public is extremely important. And many TUFs implementation initiatives resources to develop the public. The nature of the proposed program and soliciting feedback. Since TUFs involve establishing the new fees, applicable laws acquire how those hold public hearings and no fee. In this it may include presenting as by an ad hoc committee as Tina mentioned, our staff and consultants. For instance, Killeen, Texas, prepared a 16-page presentation of the city's rationale for the proposed TUF's program available on the website and the reservation needs, pavements, historical street, maintenance funding and methodology for calculating plus. They developed a very expensive matrix described in the primer. Basically, they provide websites and other study reports. You will want to request back to Tina. Maybe you will describe your process of informing the public. This is a brochure that you can see that comes from your community in Hillsborough, and then you have a number of slides to show what the impact was.
We had a series of time. We're a population of 90,000 and had six people show up. And it was not real effective methodology, but we checked the box. They think the floor, as I recall, this, we had a public newsletter that we distributed to our community. The flyer that you're seeing in there was really an attempt to try to reach more people and put out the information in advance of the public hearing date. So, that the community could comment. And we reported, the reports were posted on the web. And in the end round of opinion hearing where we received more testimony. As I mentioned, the business community shifted a little bit at the time of the public hearing with regards to what they first were supporting in the theme. If I could go to the next slide.
So, as I mentioned, we were not sitting with really horrible pavement conditions in the city. And makes it more challenging when you try to sell a fee for pavement maintenance when the average consumer doesn't see it as pore roadway. One of the things we landed into is something we had success at the County for a local bond measure to support come should some construction infrastructure for capacity. And we had a lot of success with identifying projects we would deliver over the timeframe if the bond was passed. We provided a map to the community of the projects we were committing to happen over the next five years. This is actually a three-year plan that we presented as a five-year plan. We wanted to make sure we had buffer and we were not under promising and overdelivering in the end run. And I -- go to the next slide. One of the other things we did, we talked about what consumers, what their pavement conditions of the roadways look like today. We presented the map of all of our roads. It's a little more challenging, the slide format and we -- the temperature gradient with all of the reds and pinks being poor roads and the blues being relatively good condition roadways. And we tried to show them a snapshot. This is what our network looks like today. We presented this with slides of roads in the various conditions so they could understand what those meant as well, if they couldn't lock or weren't familiar with some of the roads. And then if I can go to the next slide. We showed them what the network was going to look like and how many roads were going to be failed the next -- the time 20 years and if we didn't find any moneys to fund the programs. Next slide, please. The final piece of information we provided them is with what would happen with the utility fee. All of our roads were in good condition. That, you know, to make the point a case of what it is exactly we were trying to achieve.
Right. The last step in adopting ordinance and enough on notifying the public. The ordnances set forth -- ordinances set forth the type of program and include the following. Program purpose, TUF uses, program management, how TUFs are collected, enforcement, waiver of fees and other administrative matters. Again, those are mostly available online. You can search. Some are available on the FHWA website. TUFs cover the topics, they vary considerably and reflect the demo graphic, and economic locational characteristics of each community. And the localities may adjust the TUFs after adoption. In Colorado, it will revise the tough thank you and a month after the establishment to create a new recount category and to make the TUFs give leapt to other utility fees in terms of the regulations, which he'll talk about. Just like before, we didn't have TUFs. After you have done that, you spend a lot of time on explaining the programs to the public, including with the expiration on the utility bill, mail-in information with the materials, settling a business leader's group or an association of various owners like hotels or small businesses. Making presenting as to neighborhood African-Americans, and using social media. Most importantly, making staff time available for in-person inquiries. They explain what the purpose of the TUFs are and addressing all necessary questions. Good, I think we'll go to the next slide that will take us to our first quiz. If you can set up the first quiz, Charity. We would like you to fill out the quiz. Hopefully, we'll have that in a second.
The first question is, why do municipalities use TUFs? The second question is which of the following is not one of the five general steps to take in establishing a TUFs program. So, no matter what you provide, we'll give you a couple of seconds here. I want to point out if you have any questions, if your sound is not working, you might use the dial-n the upper left and use your phone instead as my colleagues have into the chat box. Okay, good. So -- why do they use TUFs? The answers are to overfund gaps and fund local road and infrastructure and to better connect payment for paint naps on local roads with infrastructure with usage of infra structure. They don't cross out the utility costs. They only dedicate it to maintenance and they do not deport the general budget Municipality. That is a critical issue and it's a legal issue as we will get into later. The other question, which of the following is not one of the five general steps you take in establishing a TUFs and it's seen forming the Federal Government. This is a local mandate, often set by state law. The Federal Government is not involved in settling or regulating TUFs. And let's move on then. Thank you for your chat questions. I see there is activity there. I will get to -- you will get to some of the questions as we go through, and we'll try to respond to them at the end of the presentation as well. Going on to application of TUFs, the next slide, please. How are they applied? So, TUFs are primarily used for maintenance of local transportation facilities, including streets, bridges, arterials, sidewalks and bike lanes and other public paths. I think there is a question further up about whether they can be used for bike paths and Hopefully, you had a few -- fumed a response and they can be used for bicycle paths in some communities. Okay, as Tina described. So, they're primarily used for maintenance and preservation. You think things like crack ceiling, removing overlay, repairing, patching or placing. In addition, they can also be used for the soft costs related to these activities like engineering, planning, management, administration, and development guidelines. And also in additions. They can also be used in some cases, for other street infrastructure like street lights, signage, lines, cleaning the storm drains among others. Depends on what the specific community designates. And as I mentioned, they can be used for sidewalks and bike paths. As well as landscaping alongside street improvements. Finally, some municipalities also use TUFs for correcting street deficiencies. This may include assault with include assault with a deadly weapon curb catch and other changes that conform to ABA requirements. Next slide, please.
I will ask Tina first, and then Dave to discuss what the applications are in their communities and what the code was in practice. Tina?
Yes, for us, we actually, as our attorney was writing the code, he codified our transporting a utility fee and a myd it similarly to the gas tax. Anything that we can spend state or local gas tax on for road maintenance, we can use our transportation utility fee. The whole methodology is based off of street maintenance and preservation, primarily with a side bar for Sidewalks and pathways. That is how we continue to use it here in the City of Hillsboro.
Loveland, it can only be used for maintaining streets and that is what is in the ordinance originally adopted and that is part of our municipal code. And the other infrastructure said it depends, primarily to do with a street maintenance project. Why are Municipal codes, the responsibility of the property owner. So, we use funding from the street maintenance fee if there is a settlement that is causing a problem for the street. That gets fixed as part of our program. Originally, we split the cost with the property owners and have 1 1/2 people that were basically administering that and that was changed in the early 2000 east to say, we could say we have repairs if they're affecting the streets and part of the funds set aside in that street name program. It's really basically for things we do out in the streets. Researching programs like that. Maintenance-related.
Okay, thanks. Let's move to the next slide.
Talking about calculating TUFs. Next slide, please. There are four steps in calculating TUFs as we see it. One is to identify the properties on almost the TUFs going to be imposed and using a methodology like the institute of transportation engineers manual to identify the number of trips for type of property. Previous to develop a calculation approach and to actually page the TUFs. The process is not rock the science but road science. Excuse the pun. Takes accuracy and mostly the condition of multiplication. And that does make you focus on some of the details go to the next slide here. First of all, to identify the properties. Tough it ofs ordinance specify which property must be the TUFs. Many municipalities hold that any property creating transportation demand the roads for TUFs. Just as most properties using water, trash and other services from municipality are required to use the services. Use an often used at public and nonprofit facilities like schools and religious institutions. They're required to pay the TUFs in many instances and not all of them. For instance, the most common way the categories of TUFs properties is by residential and nonresidential categories. For instance, Hillsboro has two categories and nonresidential categories based on the thousand square feet of space. Other municipalities have fewer nonresidential categories. We'll talk about that, what Loveland does as well. Next slide, please.
I mentioned the Institute of Transporting a Engineers. The manual as well, ITE known by traffic planners. This is a manual that has been developed over a number of years, and this is used to calculate the charges that are on the road system by the specific property owner. We often use costs that can be measured by average week day traffic divided by the number of trips that the property generates. We'll have both Tina and Dave talk about their specific methodologies. They mentioned ITE manual is used by the vast majority of cities who developed TUFs programs. It's a well-known source. However, it has some short comings and reports armies. When you say an average single family, house generates ten trips per day, that is based on national armies. It's been well-documented. In your municipality, it may differ by the type of Suburban house or one that is in the urban area. Also, has a focus primarily of motor vehicles. That is how the manual got initially started. It has a Suburban orientation. So, it does not take into account urban issues and projects and other users like the pad or transit. It's slow to capture new property types as David Klockeman will discuss, but it has a process to incorporate those. In, slide, please. The calculation approach that usually -- is that the municipalities figure out how mean Municipal trips occur during a period of time. Like all the - [ Inaudible] Sprite property. From the ITE manual and that can also come [ Inaudible ] Then, to calculate the TUFs, you simply divide the street maintenance budget covered by the TUF. 50 or 60% of the total street maintenance budget, divided by the number of Municipal trips and that gives you a TUF per trip. And there is -- talking about the TUFs that leave one participant, $3 per trip. Use TUFs very significantly from a couple of dollars to $10 or $15 per trip, as you will see shortly. There are other ways to measure and develop the TUFs fees as well. You can do it by the available parking spaces that have property and is allowed to have. You can do it by the one foe per residential equivalent or one flat fee on the utility bills. The vast majority of them use trips that seem to be, the fairest approach and the most straight forward. Next slide, please and it's a question in the chat room, you know, what is the equity issues between, you know, who pays? Does it matter who pays? Most TUFs are oriented that they send the municipalities send a TUFs bill as part of the utility bill to the property owner. From most cases, that is off the -- in most cases, that is often the same person or company occupying the property, a single-family owner is the recipient. It gets more complicated when there is a multifamily building. Again, the TUFs bill is usually support owner and a specific tenant. In general, the Municipalities hold the -- sorry, they hold the owner to be liable to pay the TUFs bill in the end. And they will mention the situation where, you know, the shopping mall and bills are sent to individual tenants, from the 10 at the who are vacant and it gets very, very complicated. Good. Let me move the next slide. Tina if you will take us through how Hillsboro calculates its stuff.
Good morning. I guess the first part of the process is determining that residential-nonresidential share for us. At the time of the adoption of our transporting a utility fee, we had a methodology where we assigned the classifications and estimated roadways and estimated the use by the various classes, residential, commercial, industrial and public. And public use. That was based off a Portland metro model done or have the data in the blue boxes. We have to guestimate what the uses eastern for the -- uses were for the local neighborhoods and the customer classes. And there was no calculation for how the public entities protected the roadways. Ultimately, though, running through this calculation, we came up with the burden of pavement management program being 52% on residential customers and 48% on nonresidential customers. If we can go to the next slide, please.
As time changes and counsel changes and revenue demands increase when you're sitting with 22,000 residential customers and residential accounts and only about 1300 nonresidential accounts. The conversation you had about generating more revenue and a slight uptick in customers accounts -- can lead to a lot of revenue. And politically, we were being asked to re-evaluate the system. There was a revenue target, a target, honestly, the political leaders had in their mind. Of course, we want a dependable program. So, we went back through about five years into the program and we re-estimated how to 20 distributed the management program. We solidified and I don't think any of these is think where. I think they're defendable in their ways and there are assumptions made. We went back in and went through our network. Our trails, collectors and neighborhood routes. We will share that burden Morn paying less than the single family residential rate of the ultimately, we didn't feel that that was equitable. We went walk in and made a modification within the first, I think, 18 to 24 months to establish a base charge. For at least the multifamily rate for customers. They pay the base charge and the category. The bin category for their quote am or whatever -- their square footage or whatever it is for bin category 7. And then go to the next slide. In Hillsboro, everybody pays. Doesn't matter if you're government or institutional everybody. If you're developed property, you pay a transportation utility fee and with that, I am going to turn it over to Dave to talk about Loveland.
Thank you, Tina. As Tina described, there are a lot of things that go into calculating the fees and Sasha mentioned the ITE categories and the City of Loveland submitted the ITE, the drive-through coffee shops were coming into play because all of a sudden, we had a number of request for. We went through the pro -- forms. We went through the process and I was looking at the ITE manuals yesterday for another project, really, the impact fees. My gosh, they're about a foot tall from edition ten. There is a lot of information in there. Basically, how does Loveland identify properties? Everyone pays and we were tie -- it was tied to our storm water utility and the maintenance charges we charged for them. So, for residential unit uses, it was by unit. Doesn't matter if it's multifamily or single family. And it�s -- for nonresidential uses. Next slide, please.
So, here's, so we basically used the ITE mania will and more and coming off of a hybrid formula, if we're going to collect a dollar, the fee is partially vehicles and partially trucks. And the ratio depends on the class or category. As an example, we had in our system already, for our stormwater maintenance fee, all of the lot sizes and the uses. We started to look at floor area ratio and the amount used for building. For instance, it was .25 or 25% for retail. That figured out to a certain amount per acre. And then we, in the bottom of the slide, it shows that we started when that and looked at the building's area per acre. Multiplied by the number of trips, and then came up with the annual amount of trips and then divided that on the next slide.
Your annual amount of trips and then divided that on the next slide. You will see how we brought that together to come up with trip ends. That is how together to come up with trip ends. That is how we charged the fee. One of the important things is that the important things is that the formulas are not included and next slide, next slide, please. I am sorry. Can you go back up one slide? Thank you.
This is go back up one slide? Thank you.
This is an example of the original calculations that shows the different categories and the daily trips, the that shows the different categories and the daily trips, the monarch units and how we got to at to at that time, the target was $820,000 annually and this shows it's calculated annually and this shows it's calculated on the four area ratio computations for nonresidential areas per 12ing unit and the residential -- for nonresidential areas per 12ing unit and the residential -- per dwelling unit and the residential areas. Next slide, please. So, in Loveland, as I said, everyone pays areas. Next slide, please. So in Loveland, as I said, everyone pays and we have seven categories ranging from residential through high-traffic retail, and we actually started out from residential through high-traffic retail, and we actually started out with only two retail categories, but we got asked the question immediately, the uses that don't we got asked the question immediately, the uses that don't generate a lot of traffic, they will be -- the retail will be -- the retail category was added that showed less than 250 trips per day. We have a range than 250 trips per day. We have a range from 250 to 1,000 and over 1,000. And this was actually put in place about two years before 1,000. And this was actually put in place about two years before I joined the City of Loveland. So, this is in 2000 I So this is in 2000 I joined the City of Loveland in 2002. And it's been in effect ever since. I don't get a lot of questions about that. Let's go ever since. I don't get a lot of questions about that. Let's go to the next slide, please, where I can show our rate, I can show our rate s. And residential started at $1.15 and went to $2.88. Our and went to $2.88. Our high-traffic retail, drive new coffee truck fell three, started out at 129.34 per fell three, started out at 129.34 per acre per month, and it's now $31,827. And I saw in -- $31,827. And I saw in -- $318.27. I saw in the chat, one of the questions was how does this chat, one of the questions was how does this differ from a -- differ rear a transportation development dif rear a transportation fee. In Loveland, the transporting a development fee are one-time foes a development fee are one-time foes and basically, you pay your proportion share of your impact of what share of your impact of what we anticipate to be our overall wealth and traffic between today and wealth and traffic between today and our planning year, and then you paid for your proportion of share that paid for your proportion of share that cost and basically buy into the system. The TUFs, in our case, the street maintenance fee is system. The TUFs, in our case, the street maintenance fee is an ongoing fee to offset the ongoing costs of maintenance after that ongoing costs of maintenance after that asset is a new infrastructure is constructed. So, I constructed. So, I hope that answered questions for Miss Collins. If others would like to Collins. If others would like to weigh-in on that as well. Next slide, please.
Okay, thank you, Dave. Now we're going to go to slide, please.
Okay, thank you, Dave. Now we're going to go to our second quiz. Before I do that, I want to remind people that in addition to that, I want to remind people that in addition to the chat, you can also press star 1 and you can star 1 and you can call in on your cell phone. After we can address some After we can address some of the questions. So, two questions here for the quiz. Generally, how do here for the quiz. Generally, how do municipalities build their residents for TUFs? The other question is, what the other question is, what are short comings of the ITE manual? Give manual? Give everyone a chance to respond. Let's dot first question here. Generally, how do dot first question here. Generally, how do municipalities feel that residents for TUFs? Generally, they add a line item to Generally, they add a line item to the existing utility bill. Our experiences are that they don't set, are that they don't set, add it to the property tax bill and it's not a fee or a separate bill and it's not a fee or a separate bill sent to the house. It's no special effect. TUFs are not a special assessment. We have a no special effect. TUFs are not a special assessment. We have a question on that that we'll address shortly. What are key short comings shortly. What are key short comings to the ITE manual? It has an orientation. It's an orientation. It�s slow to capture property tip -- types and has a type and has a motor vehicle focus. Doesn't have an urban orientation. That is something they're trying to urban orientation. That is something they're trying to address and not an issue now. I do want to answer some of the questions I do want to answer some of the questions that have been brought up. Or heard them. One question was about legal, the legal heard them. One question was about legal, the legal challenges and we'll see that answered shortly in the next section. There is a question shortly in the next section. There is a question about rails-to-trails can tell the use for rails-to-trails. I think Tina showed for rails-to-trails. I think Tina showed how Hillsboro used TUFs to pay for a bike ped. I think it for a bike ped. I think it depends on the specific rail-to-trail. If it's a facility municipality, I think it probably it's a facility municipality, I think it probably could be, but it depends on local ordinances. You know, the question from Danny about local ordinances. You know, the question from Danny about whether you can use TUFs on a reservation, again, TUFs are not a tax or property tax. They're a reservation, again, TUFs are not a tax or property tax. They're a fee for thus of roads. In as much as a dwelling needs a bill for in as much as a dwelling needs a bill for water, fees or other utility uses, potentially the TUFs could be potentially the TUFs could be added to that. I welcome others. I am not sure that I don't have that much experience with I am not sure that I don't have that much experience with that. I think it's an intriguing issue we would be issue we would be happy to discuss in the future. I think we -- that is all of the I think we -- that is all of the questions so far. There is one more question about districts. What is the more question about districts. What is the difference between a TUFs and district. Again, Dave talked about impact. The Again, Dave talked about impact. The TUFs are focused on maintenance. Assessment districts, a special assessment, are usually to districts, a special assessment, are usually to fund the construction of new infrastructure and possibly the maintenance of and possibly the maintenance of the infrastructure. It's related to new infrastructure, and I think, infrastructure, and I think, you know, most assessments are similar to a property tax going in to a to a property tax going in to a property, too. That is the difference. The assessments do the assessments do cover that as well. Let's see. I think we addressed most of these in I think we addressed most of these in the interest of type, we'll move -- and in the interest of time, we'll move on. If you -- and in the interest of time, we'll move on. If you have any questions, star one you can ask questions on your cell phone. Okay, we'll move can ask questions on your cell phone. Okay, we'll move on then. We'll talk about administering TUFs. The mechanics of administering TUFs. Next slide, please. There are a TUFs. The mechanics of administering TUFs. Next slide, please. There are a number of issues in administering TUFs. The startup costs, there is the startup costs, there is the separation of TUFs moneys to ensure that TUFs only go for the purpose they're inn ensure that TUFs only go for the purpose they�re tended. There is a number of issues regarding its gumption and waivers and the of issues regarding its gumption and waivers and the appeal. And then there is issues regarding the results, purporting results regarding the results, purporting results for the public. Next slide, please.
In terms of administering in terms of administering TUFs, they may need to take on additional costs to administer TUFs. The TUFs on additional costs to administer TUFs. The TUFs may include repairing or updating studies on street maintenance needs, on street maintenance needs, including backlog and traffic analysis, using other a city staff other a city staff for consultants and include surveying and classifying effective properties. Hillsboro, I believe, teen your classifying effective properties. Hillsboro, I believe, Tina your city spent additional time surveying nonresidential properties that the properties that the data was lacking for, which setting the TUFs is. Doing the mechanics of that takes time and the TUFs is. Doing the mechanics of that takes time and as I mentioned earlier, it's necessary to have staff time available to have staff time available to present to senior officials, policymakers and business groups and the and business groups and the general public. It also prepared collateral materials like materials like flyers and prepared websites. Then being available again to answer questions of being available again to answer questions of the public or stakeholders. I think our finding is that most of the staff we talked to our finding is that most of the staff we talked to find that the costs of implementing TUFs are reasonable. They're TUFs are reasonable. They�re manageable, and they do require oftentimes. I think as you mentioned, Tina I believe you mention I think as you mentioned, Tina I believe you mention -- Tina, you mentioned there were unforeseen costs in the Hillsboro utility fee. Can you be unforeseen costs in the Hillsboro utility fee. Can you mention that?
Certainly. One of the things that we ran into as the things that we ran into as we were developing is our utility bill couldn't accommodate another line of billing bill couldn't accommodate another line of billing for the transportation fee. When we originally started this. We were fortunate that we didn't bare any costs originally started this. We were fortunate that we didn't bare any costs that were in a utility bill redesign, which was great. It meant it drove their redesign, which was great. It meant it drove their timeline much more quickly than we anticipated. The other challenge is we didn't account for anticipated. The other challenge is we didn't account for having to assume some of the utility billing costs as we were doing the fee. We have utility billing costs as we were doing the fee. We have walked into it, the utility billing is being paid for. Our finance director is very quick with is being paid for. Our finance director is very quick with her analogy. We don't let the roommate move into the house, usually without redividing the roommate move into the house, usually without redividing the rent, and so, we wound up with a $90,000 annual charge to pay for our with a $90,000 annual charge to pay for our portion of the costs to administer and run the program. There was not discussed as we were developing the and run the program. There was not discussed as we were developing the few. That came after the fact as we were as we were implementing.
Thank you. Next slide, please.
So, often per state or local law, please. So, often per state or local law, TUFs receives generally a deposit into accounts that are separate from the accounts that are separate from the municipalities general fund. Again, this reflects the purpose of TUFs which, is to recover the purpose of TUFs which, is to recover the TUFs of using roads and transportation foes, to find like water transportation foes, to find like water and utility fees and reflects the trend parent nature that residents trend parent nature that residents should understand their monies are directly expended on road maintenance. So, it will reflect the TUFs, as I expended on road maintenance. So, it will reflect the TUFs, as I said, before, our fees and not a form of tax, which was articulated a form of tax, which was articulated by the Colorado supreme court ruling, which I will talk about shortly. And it can't which I will talk about shortly. And it can�t use -- for the general fund purposes. Most municipalities putting TUFs moneys in a separate account purposes. Most municipalities putting TUFs moneys in a separate account is not a big burden. They do that with other utility fees. Since TUFs are part of the municipal utility bill, TUFs enforcement terms are similar and identical can terms are similar and identical can to those of other Municipal utilities. In general, if a utility is not paid within a certain period. In general, if a utility is not paid within a certain period of time, the municipality can shut off the waters of that property. This option off the waters of that property. This option is generally very compelling to a vast major of property owners. Because vast major of property owners. Because of this, this staff report will show the or and issues with TUFs. Maybe show the or and issues with TUFs. Maybe if you mentioned what happened with your ordinance initially that you didn't have this with your ordinance initially that you didn't have this with the water bill, that is part of your discipline process. In the original -- of your discipline process. In the original -- adoption in 2000, it didn't include a consideration for water. Utility was delinquent and a year a consideration for water. Utility was delinquent and a year later, along with adding that extra retail cat Door, the language of added to say, that it's going retail cat Door, the language of added to say, that it's going to be treated on equal footing with the other utilities and the link criteria, I will try with the other utilities and the link criteria, I will try to say, that fast three times is equal. That is the equal standing. It's basically, is equal. That is the equal standing. It's basically, you may all of your utility bill or you bill or you are [ Inaudible]
Okay. Generally, in our experience, there are a few Generally in our experience, there are a few issues with payment of tuffs. Next slide, please. Exemptions. Some or few slide, please. Exemptions. Some or few uses are exempt from TUFs, in our experience. They include city or public parking lots. I believe our experience. They include city or public parking lots. I believe that was a question. The parking lots are something to talk lots are something to talk and answer generally is no. Farms, properties that did not receive water, properties that did not receive water, or vacant property, ones that also did not, are not receiving did not, are not receiving TUFs requirements. Park spaces and some public schools. And railroad right-of-way. These are generally public schools. And railroad right-of-way. These are generally uses that did not create a lot of activity, transportation activity. The idea of a vacant property is that no lot of activity, transportation activity. The idea of a vacant property is that no one is there and therefore, no one is using the street system. Go to the one is using the street system. Go to the next slide and talk about how this applies to Loveland and Hillsboro. Dave, this applies to Loveland and Hillsboro. Dave, you have no exemptions. Why is that?
So, as I said, this was adopted on the that?
So, as I said, this was adopted on the basis that everyone has an impact and everyone needs to pay. It's a citywide -- we don't have and everyone needs to pay. It's a citywide -- we don't have different areas of the city. It's a citywide fee, and that is how we a citywide fee, and that is how we do our utilities in general. It was determined that there were really, everybody is benefits from the was determined that there were really, everybody is benefits from the system, so there were no exemptions. I know there is a question of pavement options. The I know there is a question of pavement options. The City of Loveland has a couple of payment options. I guess two, one is you pay it and we of payment options. I guess two, one is you pay it and we have a thing called budget billing. Our bills in Our bills in the winter go up significantly because of the cold weather and you of the cold weather and you have budget billing. You can flatten out your utility bill to pay a similar bill out your utility bill to pay a similar bill every month so there is no seasonal effect. We have a program where folks can seasonal effect. We have a program where folks can contribute to people that qualify through the criteria and have, contribute -- the criteria and have, contribute -- criteria and contribute money into a find that have the lower-next find that have the lower-next folks, some of their utility bill cost offset. Other than that, we don't have any cost offset. Other than that, we don't have any exemption. We have budget billing and others available.
Tina?
Excuse me. For Hillsboro, we don't assess any For Hillsboro, we don't assess any of our transit, trimet being our transit provider. Any of our transit utilities, don't transit provider. Any of our transit utilities, don�t assess farming property or right-of-way. Parking lots, we don't have parking lots independent of actual businesses. I don't think lots, we don't have parking lots independent of actual businesses. I don't think even if we had a parking structure we would probably assess it either. It would be assumed structure we would probably assess it either. It would be assumed that it would be picked up with the businesses it would be generating. The with the businesses it would be generating. The only thing -- do you have an e 7tion that Sasha you have an e 7tion that Sasha eluded to vacant properties? It's tied to water meters being turned off for vacancy, and the reason why to water meters being turned off for vacancy, and the reason why that is with is we discussed that with regard the strip mall situation. Many of the that with regard the strip mall situation. Many of the strip malls are tied to multiple businesses, multiple suites, tied to a stand of one meter, businesses, multiple suites, tied to a stand of one meter, and it was very difficult. We could not device a program that was could not device a program that was not going to be massively expensive to administer for us to know when those billings to administer for us to know when those billings became okay -- buildings became occupied again or the suites became occupied again. If you can turn your occupied again or the suites became occupied again. If you can turn your water meter off for the use, we will stop filling your we will stop filling your transportation utility fee. Otherwise, your transportation utility fee applies. With regard utility fee applies. With regard individuals struggling to make payments, Hillsboro has a payment program for customers to keep them enough ahead has a payment program for customers to keep them enough ahead that they don't get shut off. We also, all of We also, all of our utilities contribute to a program which has been in the past administered by the salvation army which has been in the past administered by the salvation army for people in need. They will get some assistance with get some assistance with their payment from the utility bill. Key suspended during Covid all shutoffs and Key suspended during Covid all shutoffs and have quite the arrears right now. Because of the Covid situation. We have a Because of the Covid situation. We have a number of programs to help out in those circumstances.
Thank you. That is a in those circumstances.
Thank you. That is a good segway to the next slide. Allowing waivers and hardship discounts.
As mentioned, a number of communities allow various waivers mentioned, a number of communities allow various waivers and include next below a certain threshold. A certain percentage of threshold. A certain percentage of income. You can include recently unemployed. The elderly or for those who did not the elderly or for those who did not own a vehicle. I think one interesting example in Newburg, Oregon, interesting example in Newburg, Oregon, they only grant 50% discount to those who don't have a vehicle, since they argue those who don't have a vehicle, since they argue the owner still benefits from the transportation network. By -- transportation network. By -- mail or deliveries or having visitors visited this. This is the concept of its visitee this. This is the concept of it�s a utility and it provides benefits to you even if you don't drive on the road. So, let's to you even if you don't drive on the road. So, let�s go to the next slide here. I want to have both I want to have both Dave and Tina comment. I do know, mentioned there were a number of good commenting questions know, mentioned there were a number of good commenting questions in the chat room. I will try to cover try to cover some of these. Maybe you can address these. One is a question address these. One is a question about whether you can shut off utilities during certain times of the year where some utilities during certain times of the year where some communities don't allow that to happen if people don't pay for their utilities. And the if people don't pay for their utilities. And the others are, I guess the connection between road maintenance and utilities. I think the answer, between road maintenance and utilities. I think the answer, to answer her question, Miss Collins, is because road maintenance fees archives utilities. And there is because road maintenance fees archives utilities. And there is no difference than if you don't pay your fee. You will also get you don�t pay your fee. You will also get your -- not paying the utility bill. Therefore, you're in jeopardy bill. Therefore, you're in jeopardy of having your water shut off. Maybe you can comment Maybe you can comment on that. Tina first?
I was reading one of the comments on the side. was reading one of the comments on the side.
Yeah. Yeah.
I missed the question.
Why don't you discuss, I think question?
Why don't you discuss, I think you discussed this already about your waivers that you have on the waivers that you have on the slide. Here.
Sorry about that. So, for Hillsboro, we have a series of waive every and discounts that So, for Hillsboro, we have a series of waive every and discounts that are -- waivers and discounts that are established. Some still in use today and many of discounts that are established. Some still in use today and many of these work to, a dress issues of public testimony or comments we received along public testimony or comments we received along the way. So, there is always an argument I use transit. I live next to an argument I use transit. I live next to transit. We established a discount program 30% for residential users who 30% for residential users who purchased an annual Trimet pass. It has a substantial cost has a substantial cost for the individual. Again, same as, you know, Sasha reference. There is you know, Sasha reference. There is still the concept you benefit from the transit system. One, the transit is using the roadway the transit system. One, the transit is using the roadway system. You're getting U.P.S. and the garbage trucks that need to service garbage trucks that need to service your home. Various other utility providers. You don't get a complete waiver. We okay You don't get a complete waiver. We okay knowledge that if you're a regular transit outer, which you are presumably. You are not much transit outer, which you are presumably. You are not much of a burden for the system. We also offer that up We also offer that up to 30% for our nonresidential customers. May have to buy passes for their employees. They May have to buy passes for their employees. They have to be buying houses for 70% of their employees and get annual 70% of their employees and get annual passes to achieve that full 30% discount. We have 30% discount for residential discount. We have 30% discount for residential users who don't own a vehicle. And certify they don't own a vehicle. They, and certify they don't own a vehicle. They, again, same logic as the residential and transit pass. They, they're still a burden on the and transit pass. They, they're still a burden on the system. In some ways, they're attracting traffic. They don't get a complete traffic. They don't get a complete pass. Those two for the residential customers, 30% is the maximum you get. And customers, 30% is the maximum you get. And they�re not out of results. For nonresidential customers, we have here in the nonresidential customers, we have here in the Portland metro, area. Many of the users are required to file a report users are required to file a report every two years that shows they have production strategies in place for have production strategies in place for their business. Things like ride share programs, work 7, 80 work days, programs, work 7, 80 work days, that kind of thing. Work from home. But, they can demonstrate they reduced the trips for home. But, they can demonstrate they reduced the trips for their business by 15%. Then we will give them a 15% discount will give them a 15% discount on their transportation utility fee. The resident yawl, non-residential customers can combine resident yawl, non-residential customers can combine their annual, their TriMet pass discount issue as well as their trip reduction discount issue as well as their trip reduction discount together. It's a maximum of 30%. At the time of adoption, we at the time of adoption, we also were entering the recession in 2008. We were going through public hearings and a lot 2008. We were going through public hearings and a lot of people were losing their jobs. So, we had a waiver that So, we had a waiver that was established at that time forsy aches-month waiver, if you could demonstrate that one aches-month waiver, if you could demonstrate that one individual in your household was currently unemployed. It was at the unemployed. It was at the time, an $18 hit to the program for a six-month timeframe. So, we felt that if you program for a six-month timeframe. So, we felt that if you were desperate enough, if that $18 can make a difference, we would give can make a difference, we would give that fee. That since went away because we have our salvation army program, which they because we have our salvation army program, which they -- we likened the criteria on for them to qualify for that. We also criteria on for them to qualify for that. We also had at the time separate from what our other utility salvation army what our other utility salvation army programs, our transportation utility fee adopted its own low-income program. Which was based off the its own low-income program. Which was based off of the media and next here in the state. It was an honor state. It was an honor system. You said what the next was and they granted the fee and that waiver was and they granted the fee and that waiver if you could demonstrate the low-income. We loosened the regulations on that program, and We loosened the regulations on that program, and we wanted to make it, unify it, how the rest of the utilities it, how the rest of the utilities and feeling with low-income customers. The programs have gone away since.
Thank you. Maybe, I programs have gone away since.
Thank you. Maybe, I don�t know. If you can answer this, but Chanda has this, but Chanda has a question. Can you clarify the number of people in the household need to provide number of people in the household need to provide evidence of pass since the TUF is assessed as household level? The property owner, legal property owner is assessed as household level? The property owner, legal property owner is the one who has to demonstrate that they have a next level below the median demonstrate that they have a next level below the median or whatever is set by the municipality.
For us in Hillsboro, it's whoever municipality. For us in Hillsboro, it's whoever is paying the utility bill and that can be the tenants. The exception would that can be the tenants. The exception would be in the situation of multifamily residential and this is where, again, where we experienced challenges and residential and this is where, again, where we experienced challenges and we realized we could not apply this to multifamily residential. They're this to multifamily residential. They�re not paying the utility bill. The owner of the complex this is and we have owner of the complex this is and we have no way to know whether they're moving in or out. The residential documents and waiver moving in or out. The residential documents and waiver programs don't apply to multifamily rental unit situations.
Okay. Thank you. Let's move on unit situations.
Okay. Thank you. Let's move on to the next slide here. Come communities allow for appeals if the tough thank yous were communities allow for appeals if the tough thank you were not calculated correctly or they feel their property is not well-classified. I think you their property is not well-classified. I think you heard that both for Tina and Dave. One example we found Dave. One example we found is like a golf course assumed the traffic occurred during the week. However, this the traffic occurred during the week. However, this particular golf course and many really only had weekend traffic. So, the only had weekend traffic. So, the large number of parking spaces it had did not accurately reflect the had did not accurately reflect the impact on the street network. They appealed that and appealed that and the respective of what changed. This is another important element. This is another important element. This is reporting to the republic. Reporting what TUFs what TUFs monies accomplished on a periodic basis. And the program. The utility program. Others And the program. The utility program. Others support this on the website. And one municipality, which is -- one municipality, which is -- Killeen, Texas, produced a video that describes an infrastructure maintenance of funding. This is that describes an infrastructure maintenance of funding. This is available on the city street maintenance page. I thought we played this. If we can, to give you page. I thought we played this. If we can, to give you a taste and the kind of outreach that come is outreach that come is communities engaged in. Charity, can we show this? show this? Ok. I don't know if you hear the sound.
Streets. They connect us to hear the sound.
Streets. They connect us to work, school, shopping, recreation, and to each other. Streets each other. Streets are more than.
The program and -- the rational for [ Inaudible] Inaudible] -- hundreds of miles in sidewalk and other components. Each has a significant role in the sidewalk and other components. Each has a significant role in the system and it's critical to motorists and pedestrian safety. When a road is constructed, it has a useful and pedestrian safety. When a road is constructed, it has a useful life of 20 years before major repair is needed. However, regular maintenance can extend that life span repair is needed. However, regular maintenance can extend that life span by years or decades. To give you an idea of how much wear and tear our you an idea of how much wear and tear our streets endure each year, we'll need to do some math. That 70 trips for to do some math. That 70 trips for week, 300 trips for month. 3,650 trips per year. Multiply that figure by about 50,000 trips per year. Multiply that figure by about 50,000 homes and we're at almost 200 million trips per year. Now add in the million trips per year. Now add in the daily trips of multifamily homes, businesses, emergency vehicles, trash trucks, mail trucks, delivery vehicles and more. It emergency vehicles, trash trucks, mail trucks, delivery vehicles and more. It equals a tremendous command on the streets. Regular maintenance is essential to keeping the street system and all of its streets. Regular maintenance is essential to keeping the street system and all of its -- in repair. Kill eye een streets are in eye een streets are in good shape, in general. A study ranked their recovery all condition at 80%. Road ranked their recovery all condition at 80%. Road repair is a moving target and declines when the maintenance is declines when the maintenance is declawed or avoided. They do annual evaluations. With more than 2,000 lane miles to maintain, evaluations. With more than 2,000 lane miles to maintain, the need is greater than resources. Work has to be prioritized. Maintenance Work has to be prioritized. Maintenance comes in many forms.
Hopefully, that was interesting. Good and so I Hopefully, that was interesting. Good and so I think that was one example of outreach that occurred. Let's move outreach that occurred. Let's move to the next slide. It reflects, actually, the question that someone asked about actually, the question that someone asked about inflation. Yes, construction costs and maintenance costs do increase by that and some have a cost do increase by that and some have a built-in escalation factor that reflects regional inflation or national inflation and the inflation regional inflation or national inflation and the inflation of the construction costs in the region. And I believe neither Hillsboro or Loveland region. And I believe neither Hillsboro or Loveland has the those. They set the next and of on the hearing next and of on the hearing or the specific need needs. Let us turn to regulatory us turn to regulatory and legal issues. Next slide, please. Ensuring appropriate authorities and that is important to Ensuring appropriate authorities and that is important to ensure what the municipality has implemented or for ordinance, it's allowable under state law. It or for ordinance, it's allowable under state law. It relates the question of whether the state is a home-rule state or simply this means home-rule state is a home-rule state or simply this means home-rule state that the state allows the stay economy or where it state and powers of the municipality stay economy or where it state and powers of the municipality to what is permitted under state law. Of course, you law. Of course, you would need to consult your appropriate legal counsel to determine how this works for legal counsel to determine how this works for your municipality if you're to implement this. Everything reflects the question that was this. Everything reflects the question that was also at the chatroom. And that is legal challenges. They have been to TUFs. There have is legal challenges. They have been to TUFs. There have been four supreme court state rulings and they have struck down TUFs and they have struck down TUFs in both states. And one has ruled in ruled in favor and that next slide. Okay. That is the -- next slide. And you that is the -- next slide. And you can so here the summary of the four cases in Idaho. They struck the four cases in Idaho. They struck down the TUFs because they considered it a tax in Idaho. In Florida, they struck it down because it a tax in Idaho. In Florida, they struck it down because they thought it was un constitutional that you would clean a toll road and in Washington state, that you would clean a toll road and in Washington state, it was struck down because TUFs was restructured like a property tax based on the was restructured like a property tax based on the value of a house and not impact of that user impact of that user with that property on that transportation network. So, $60,000 house was charged differently than network. So, $60,000 house was charged differently than a $2.4 million house, even if they only have four people or they only have four people or so living there. But in Colorado, it was deemed permissible with one exception. The key it was deemed permissible with one exception. The key point here, I think, this is really good policy, is that the TUFs really good policy, is that the TUFs monies need to be kept separate and scored for maintenance purposes and not for general and scored for maintenance purposes and not for general fund purposes. That really becomes a fee and not a tax. The legal fee and not a tax. The legal niceties here and in the case of Fort Collins, essentially, the court struck down of Fort Collins, essentially, the court struck down that specific ordinance because the moneys nod from the TUFs nod from the TUFs fund to the general fund. I think this is something that should be looked at and every state think this is something that should be looked at and every state differs. Let's go to the next slide. We're coming close to the end of our presentation. And slide. We're coming close to the end of our presentation. And that is TUFs and financing. TUFs are primarily used on a pay-go are primarily used on a pay-go basis. That is the moneys received if had that year or a couple of years are used if had that year or a couple of years are used to pay out and pay for those maintenance fees. They're those maintenance fees. They�re not used as a to repay financing in general. This is based financing in general. This is based on a number of issues. One is that TUFs increased the assets is that TUFs increased the assets of specific roads and the assets, lives can be two, lives can be two, three, five years, maybe longer. It's difficult to figure out exactly how difficult to figure out exactly how long the assets have increased. In addition, it's unlikely that an addition, it's unlikely that a TUFs maintenance program increases the asset life to 20 or 30 years. And, life to 20 or 30 years. And, therefore, using long-term financing which is, you know, common in the new program like a 20-year you know, common in the new program like a 20-year bond, is really not applicable because the asset life should be longer than the asset life should be longer than the duration of the bond. Or the average duration of the bond. Second the average duration of the bond. Second of all, there are transaction costs associated with bonds as you can see. The associated with bonds as you can see. The programs can be small programs. Until you have 25 plus bonds, doesn't make sense you have 25 plus bonds, doesn't make sense to issue bonds w obvious exceptions given the cost. So, the programs given the cost. So, the programs are smaller. It's difficult to use. There is a possibility of There is a possibility of using TUFs as a source of funding to secure short-term bond where maybe funding to secure short-term bond where maybe it�s catching up the needs for maintenance. In addition, some maintenance. In addition, some of the innovative financing programs like U.S. D.O.T.'s TIFIA program or a state infrastructure program U.S. D.O.T.'s TIFIA program or a state infrastructure program may be help envelope providing that short-term financing, which some of them have gotten into. I short-term financing, which some of them have gotten into. I think going back to the previous point here is that TUFs free point here is that TUFs free up other funding sources. Notably gas taxes. So, gas taxes in many senses, taxes. So, gas taxes in many senses, are used for other projects like long-term new investment projects. There is a question here earlier about, long-term new investment projects. There is a question here earlier about, you know, this is reduced general funds requirements. Yes, the community has a funds requirement. Yes, the community has a certain number of funding sources, property taxes, gas taxes, sales taxes. TUFs can seminude the -- taxes, gas taxes, sales taxes. TUFs can suminute the -- supplant the fund and, therefore, the funds can be used. The measures. I will say, I think it's funds can be used. The measures. I will say, I think it's fair then, that many, many spellings have unfunded maintenances and, therefore, TUFs will help address that. They're not have unfunded maintenances and, therefore, TUFs will help address that. They're not going to solve those problems entirely. I am going to stop there and we have, I am going to stop there and we have, I think, one more set of quizzes for you. And then while you are doing that, quizzes for you. And then while you are doing that, please think of any other questions you that have either by hitting pound 1 you that have either by hitting pound 1 or putting those questions in the chat box. Okay. The first question is verdicts in the four-chat box. Okay. The first question is verdicts in the four state supreme court cases concluded the following. The other question is which of the following are following. The other question is which of the following are true with regard TUFs and financing? Give you some time on. That okay. N. let's answer that. -- okay good. Let's N. let's answer that. -- okay good. Let�s answer that. The verdicts in the four state supreme court cases concluded to be classified four state supreme court cases concluded to be classified as a fee, TUFs monkeys should be staying with the TUFs program and not be transferred be staying with the TUFs program and not be transferred to a general fund. And TUFs should not depend on property should not depend on property value but on trip characteristics and considered that TUFs can -- considered that TUFs can -- the local roads or toll rounds. All of the above average applicable in All of the above average applicable in terms of the question, which are follow of the following are follow of the following are true with TUFs and financing? Most are funded on a pay-go basis and are true. Tuffs are funded on a pay-go basis and are true. Tuffs are not funded with a 35-year bond. Many TUFs programs Many TUFs programs are not junk bonds and short financing possible for and apply financing possible for and apply there. Okay. Good. I wanted to see if we addressed the all of your questions here. We see if we addressed the all of your questions here. We have a little more time here. The questions that I here. The questions that I see, and maybe I will ask teen and teen and Dave. There were some important questions from, I believe, from, I believe, it was Danny Schultz, regarding reservation the reservation property is owned by individuals and generally, most are wrong. It's and generally, most are wrong. It�s not a usable power or other utilities that is leveed on each property or strong unit. If utilities that is leveed on each property or strong unit. If there is a way to have TUFs to maintain the roads. Do you TUFs to maintain the roads. Do you have any thoughts on that?
I have no experience with it. I think it I have no experience with it. I think it would be challenging under that circumstance. Otherwise, it's really the Otherwise, it's really the whole concept of transporting a utility fee is fee is to treat the roadways as storm sanitary or water. If you're not doing, that I don't know sanitary or water. If you're not doing, that I don't know how you would apply it here.
That would be my perspective as well from Loveland
That would be my perspective as well from loved ones. There was a question about properties outside of the city limits and properties outside of the city limits and we don't have the ability to bill them unless they're paying our storm bill them unless they're paying our storm water fees. So, that is how that is done in Loveland that is done in Loveland. Okay. Yeah. That is our experience as well. Turn to another question, most railroad cross streets are gray and are most railroad cross streets are gray and are worse in deterioration. Why are they exempted? Tina, I think you can approach that. I they exempted? Tina, I think you can approach that. I do think that is necessarily the intent of most ordinances.
I think the big thing is its based intent of most ordinances.
I think the big thing is it's based off of trip generation and we don't have any is the don't have any is the of in Hillsboro. We have trains going through but not stops and there is no way going through but not stops and there is no way to tie that. They're impacting the road in that crossing. They're actually responsible for the road in that crossing. They're actually responsible for the maintenance of crossings here in Hillsboro. So, I guess there is So I guess there is another reason why we wouldn't assess it.
Okay. I think, yeah, that is it.
Okay. I think, yeah, that is right. If it's a street, that will be, but if it's will be, but if it�s simply property that is railroad, the function of this is no cars along that road. function of this is no cars along that road. There is a company road, if that is a public road than those that is a public road than those that would be subject to TUFs. Another question Another question from Chanda, I'm sorry, the question regarding have Hillsboro or Loveland used it of tuffs to serve as regarding have Hillsboro or Loveland used it of tuffs to serve as a match for grant funds if the jurisdictional community is interested in the jurisdictional community is interested in a greater street redesign or amenities? Dave, can you Dave, can you start that?
In Loveland, because our street maintenance funded and so restricted, we're not able our street maintenance funded and so restricted, we're not able to do. That we figure out a way to use other a way to use other funds in our capital program to -- train station capitol program -- train station capitol program to provide them with maps. That is a great way to leverage local is a great way to leverage local funding and 20-cents on the dollar a lot of times to get 20 cents local a lot of times to get 20 cents local funding to get 80 cents outside funding. So, we find a way to make funding. So, we find a way to make that happen. Outside of our street maintenance fee.
Okay.
Way haven't used it. There fee.
Okay.
Way haven't used it. There is nothing that would necessarily prohibit us, especially in the bike ped front from using it. We do us, especially in the bike ped front from using it. We do often marry it with some of our capital projects, though, and it's simply pays for our capital projects, though, and it's simply pays for the reconstruction of the existing roadways. We have a massive $21 We have a massive $21 million roadway construction project now and TUFs is contributing to the reconstruction of the center of the TUFs is contributing to the reconstruction of the center of the roadway done for maintenance purposes, anyway. We use ITE that way to defray some of We use ITE anything in our code that would prohibit us to use it similarly if we had a grant to do some capacity improvements. But the if we had a grant to do some capacity improvements. But the base roadway was in need of maintenance using it. And that way as a march, but we have maintenance using it. And that way as a march, but we have never done it.
Okay. Thank you. I think I have you. I think I have one or two more questions. Bianca asked, did I see that sidewalks and bike asked, did I see that sidewalks and bike lanes are excluded from using this funding sort in Colorado. If so, why? Maybe you can comment funding sort in Colorado. If so, why? Maybe you can comment on that, Dave at least for Loveland.
So, in Loveland, they're not -- we Loveland.
So, in Loveland, they're not -- we don�t use the TUFs funds or our street maintenance fee to construct our street maintenance fee to construct new bike lanes. If they are existing on-street bike lanes, we can certainly existing on-street bike lanes, we can certainly use the funding that we get for maintenance. Our sidewalks, again, in Loveland and many for maintenance. Our sidewalks, again, in Loveland and many municipalities in Colorado, are the responsibility of the property owner. The only time that we actually would do any of the property owner. The only time that we actually would do any of the repairs on them if they were attached to the curve and gutter and they were attached to the curve and gutter and the curve and gutter is not a payment fans a payment fans issue for the street. We don't use them for building brand-new sidewalks use them for building brand-new sidewalks because that is not considered maintenance. And the restrictions of what original And the restrictions of what original ordinance doesn't allow that.
Okay. Thank you.
Will respond to two more questions and then we're going to Thank you.
Will respond to two more questions and then we're going to turn it over to Charity so she can administer the survey. One question was she can administer the survey. One question was doing those only apply to roads or does transit also give -- something to or does transit also give -- something to -- can benefit from the TUFs. The answer is most are used the TUFs. The answer is most are used for roads and other related infrastructures. Corvallis, Oregon has Corvallis, Oregon has used their TUFs or similar TUFs to pay to pay for their bus service in downtown. I think, there is a question about impact I think, there is a question about impact fees. Someone asked that we repeat the impact fee. How the impact fees the impact fee. How the impact fees difference TUFs. They are a one-time fee, and almost all of the time one-time fee, and almost all of the time are used to pay for the initial impact of building new infrastructure initial impact of building new infrastructure or a subdivision or a building on the water, road and other network. They do on the water, road and other network. They do not pay for ongoing maintenance, which TUFs do. And some sense, they're part TUFs do. And some sense, they're part of the family of tools that can be used by a municipality can be used by a municipality to pay for the initial infrastructure and then taste the ongoing maintenance of the structure. I and then taste the ongoing maintenance of the structure. I will turn now to Charity. Thank you very much for attending and you very much for attending and we appreciate all of your input.
Thank you, Sasha. Thank
Thank you, Sasha. Thank you, everyone, for attending today's webinar. If you can take a moment If you can take a moment or two to complete the evaluation that will be on the screen. However, before we get that will be on the screen. However, before we get to the evaluation, just wanted to remind everyone of upcoming webinars. You will see those on your screen. You will remind everyone of upcoming webinars. You will see those on your screen. You will see we do have an upcoming webinar coming up on March 24th. The development games webinar coming up on March 24th. The development games and other contract-based value capture techniques. That will be from 1:00 to 3:00 on That will be from 1:00 to 3:00 on March 24th and you will see that there are others better spread out. You will that there are others better spread out. You will see some in April, some in May, June, July and you will have May, June, July and you will have a webinar hopefully there you October 6th. Just want to give you a few moments 6th. Just want to give you a few moments to respond to our valuation. We always like to get feedback and get an idea of always like to get feedback and get an idea of what you thought about today's webinar. If you could respond to If you could respond to the questions that are on the screen. When you respond, you can choose like, screen. When you respond, you can choose like, for example, the quarter question is today's topic and agenda were relevant to my success today's topic and agenda were relevant to my success on the job. You can choose disagree, somewhat disagree, neutral, somewhat agree and agree. You can click disagree, somewhat disagree, neutral, somewhat agree and agree. You can click on the buttons and hit submit. That would be very That would be very helpful for us. We're going to leave that evaluation on the screen. Did we leave that evaluation on the screen? Did we have any other closing remarks?
Sasha, again, I appreciate everyone's comments. As you have Sasha, again, I appreciate everyone's comments. As you have seen in the chat box. Pepper put a link to the put a link to the primer which this presentation is based. I believe they will I believe they will put a connection to the presentation itself. itself.
Okay and that will.
That.
Go ahead.
I was going to say That.
Go ahead.
I was going to say that concludes our conference for today. Thank you for using AT&T conference service Thank you for using AT&T conference service and for your participation. You may now disconnect. now disconnect.
[Event Concluded]
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