Value Capture Highlights 


Recent Highlights

The following are brief summaries recent Value Capture applications employed by local governments in 2018 and 2019.


August 2019

  • The Midland, Texas City Council voted in August to establish a roadway impact fee. Water and wastewater impact fees were also included in the ordinance. The ordinance was based on a recommendation from the Capital Improvements Advisory Committee and will help fund improvements in the City's capital improvement plan. The capital improvement plan indicated $575 million in needed improvements nearly 38% attributable to potential growth over the next 10 years. The fees are anticipated to generate $5 to $10 million annually.

July 2019

  • FHWA announced that it will award a $13.01 million INFRA Grant to the South Dakota Department of Transportation for the replacement of the US 14/US 83/SD 34 Missouri River Bridge connecting Pierre and Fort Pierre. The new bridge has an estimated cost of $46.2 million and will provide four 12-foot travel lanes, 3-foot shoulders and a 12-foot pedestrian and bicycle path. The cities of Pierre and Fort Pierre have agreed to split the cost of architectural lighting and belvedere lookouts extending above the water from the pedestrian walkway. The city of Fort Pierre is leveraging the proceeds from an existing tax increment financing district to obtain a $3.0 million loan from the South Dakota State Infrastructure Bank (SIB). It will use the SIB loan to fund its portion of the aesthetic bridge elements and make improvements to local streets near the bridge, create new parking, and enhance bike trails running parallel to the river. The project also features a Memorandum of Understanding between the state DOT and the two cities capturing the spirit of the Community Connections initiative promoted in the fourth cycle of FHWA's Every Day Counts program.

May 2019

  • Since 1990, San Bernardino County has relied on a half-cent sales tax to help fund transportation improvements in its Strategic Plan. Voters approved in 2004 extending the original Measure I sales tax into 2040. Within the Strategic Plan's Freeway Projects Program, a 2017 update included the selection of express lanes as the preferred method to upgrading and adding capacity to I-10 between the Los Angeles County line and Redlands. The first phase (Contract 1) of the I-10 Corridor Express Lanes (Contract 1) is now underway with completion of a financing package in May 2019 that includes a $225 million TIFIA loan, backed first by toll revenue from the express lanes and secured by Measure I funds as a backstop. A $135 million contribution from Measure I is also supporting the project directly.

March 2019

  • The Lyman County, South Dakota Commissioners approved a resolution on March 19 to adopt a tax increment plan and implement the county's first tax increment district. The purpose of the district is to raise revenue to fund road and bridge repairs that accommodate increased truck traffic at the newly constructed Dakota Mill and Grain grain-loading rail terminal and agronomy center in Presho. This facility is located along the upgraded east-west Mitchell to Rapid City branch freight rail line and permits greater market access for local grain farmers by allowing the railroad and shippers to load larger rail shuttle trains. The Lyman County Shuttle Train Access Road is predominantly financed by a state loan backed by the tax increment financing revenue.
  • On March 14, 2019 the City Council of Round Rock, Texas approved a Roadway Impact Fee ordinance that will take effect on January 1, 2020. The impact fee is intended to recover the incremental cost of new residential and commercial development on transportation infrastructure needs. The fee will be charged when plats (building permits) are issued for residential and commercial development. Per the Roadway Impact Fee Schedule, the city will charge $753 per service unit to issue residential plats and $502 per service unit for non-residential plats. These fees will increase to $1,130 and $628, respectively, on January 1, 2022, and then to $1,507 and $753 on January 1, 2024. A typical single-family home is considered to contain roughly four service units. The fee will provide funding to help support the implementation of $1.2 billion in roadway projects that will be needed to serve Round Rock's ultimate population of 250,000 people. These improvements are detailed in a Transportation Master Plan Update adopted in October 2017.

January 2019

  • On January 16, 2019, the Century Gardens Community Development District issued $1,733,000 in Special Assessment Bonds.  The "Series 2019" bonds were issued in four tranches maturing in 2024, 2029, 2039 and 2049. The bonds will be repaid from an annual special assessment fee levied on 86 townhome units built in a 9.84-acre Expansion Area within the Century Gardens Community Development District. The Special Assessment Bonds will be used to cover a portion of the cost for roadway improvements and a stormwater management system. The interior roadway system improvements in the Expansion Area have been constructed by the Developer and will be acquired by the District. The District will own the roadway system in the Expansion Area and the Homeowners Association will operate and maintain it. The $1,733,000 bond issue produced $1,425,749 in usable construction funds. The remaining $307,251 covers the cost of issuance, debt service reserve fund, and capitalized interest. All property owners within the District are subject to annual assessments covering debt service on the bonds and the operation and management of the District-owned improvements.


December 2018

  • In November 2016, voters approved an increase in the Central Puget Sound Regional Transit Authority (Sound Transit) portion of the sales tax from 0.9 percent to 1.4 percent. This sales tax applies to the Sound Transit District, which includes the most populated areas of King, Pierce, and Snohomish Counties in the Seattle region. Sound Transit build and operates regional transit services including light rail, commuter rail, express bus, and planned bud rapid transit. In December 2018, the Lynnwood Link Extension project secured a $658 million TIFIA loan backed by a pledge of sales tax revenue. The project will extend the existing Link light rail transit system 8.5 miles from Northgate Transit Center in Seattle north to Shoreline in King County and on to Mountlake Terrace and Lynnwood in Snohomish County.

November 2018

  • The City of Portland, Maine enacted an impact fee ordinance in November 19, 2018, effective December 19. The impact fees apply to new development's effects on transportation, wastewater, parks, and recreation infrastructure. The impact fees largely replaced the existing practice of assessing project mitigation on a case-by-case basis. This method is more equitable because the charges are assessed incrementally by development and not levied on a single project deemed to trigger the need for additional infrastructure. Impact fees have been available to municipalities in the state since 1989, and the City of Portland now follows at least eight other municipalities in enacting impact fees. The system is the result of a recommendation within Portland's Plan 2030, the city's comprehensive plan adopted in 2017, and a subsequent year-long consultant study.

May 2018

  • Tyrone Township, Michigan approved a special assessment to fund the Lake Shannon Road Improvement Project. A 10-year special real estate tax assessment on the owners of 291 parcels in the special assessment district will support the issuance of bonds to pay for the repaving of local roadways within the district. The special assessment will be used to make annual payments over 10 years beginning in December 2018.