Value Capture Highlights 


Recent Highlights

The following are brief summaries recent Value Capture applications employed by local governments.


February 2020

  • The city of Pflugerville is considering implementing roadway impact fees to help offset costs of future development. The City Council on Tuesday February 25, 2020 approved a contract for an engineering firm to conduct a study on the fees, which are assessed to developers for roads and other infrastructure related to infrastructure improvements in the area that is expected to grow over the next 10 years.

    Roadway impact fees are imposed by governments onto developers of new developments to help pay for city infrastructure, dependent on the size of the development and its overall impact on city roadways. Money collected through roadway impact fees can be applied to traffic infrastructure, such as traffic signals, bridges, sidewalks, roadways, thoroughfares, land-acquisition costs, surveying and engineering fees.

January 2020

  • In January 2020, the Round Rock City Council unanimously approved a roadway impact fee to address traffic demands and the need for increased capacity on major roadways around the city as it continues to grow. The city's most recent master transportation plan identified the need for $1.2 billion in new road capacity to accommodate growth during the next 20 years. Impact fees will be phased into new residential and commercial projects when developers apply for building permits
  • The McLeod County, Minnesota Board of Commissioners approved by resolution the establishment of a .50% Transportation Sales Tax effective January 1, 2020 and will continue until December 31, 2049 or until revenues raised are sufficient to finance the identified transportation improvements, whichever occurs first. The Minnesota Department of Revenue will administer this tax. Revenues will fund transportation projects identified in Resolution No. 19-CB-43. This 0.5 percent sales tax applies to retail sales made into McLeod County. It anticipates $1.9 million annually will help the county closie a $3 million annual funding gap from the state aid system to help maintain highways.


December 2019

  • On December 9, 2019, the city council of the City of New Braunfels, Texas approved a Tax Increment Reinvestment Zone (TIRZ) to fund a portion of the infrastructure and maintenance costs associated with redeveloping the area around the historic River Mill property. The proposed new zone would be named TIRZ #2 – River Mill Tax Increment Reinvestment Zone (TIRZ #2). The TIRZ #2 will cover approximately 71.6 acres (including roads and right of way) for a duration of 25 years. The proposed TIRZ #2 is located within the following taxing jurisdictions: City of New Braunfels, Comal County, and Comal ISD. A TIRZ is a form of Value Capture Tax Increment Finance that allows a city to capture projected increases in sales and property tax revenue created by a development within a defined area and then reinvest those funds into public improvements and projects within the zone.

October 2019

  • Reynoldsburg City Council, Ohio on Oct. 14, 2019 unanimously approved a contract for construction of a four-way traffic signal on East Main Street near the entrance to the new Kroger store, 6600 E. Main St. The $223,585 contract is prepared, the intersection construction will begin next month, and the traffic light is expected to be operational early next year. Construction will be paid for by using funds loaned to the city by the Franklin County Infrastructure Bank, a revolving-loan fund providing below-market-rate (the carries interest rate of 1.9%) loans to municipalities for economic-development projects within the county. Reynoldsburg plans to repay the loan using Value Capture Tax Increment Financing Fund.

September 2019

  • The City of Hot Springs, Arkansas Board of Directors unanimously approved a largest solar municipal project on Tuesday, September 17, 2019 to provide solar electricity for all city operations. Under a 28-year energy services agreement, the City will purchase power from solar powerplants owned and operated by Scenic Hill Solar, as well as collect the leases on the land where the powerplants are built. The plants are expected to save Hot Springs more than $30 million in electricity costs over 30 years, plus add nearly $20 million of economic development.

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.
  • The Fort Worth City Council adopted a resolution authorizing the Fort Worth Public Improvement District (PID) 16 (Walsh Ranch/Quail Valley) on August 20, 2019. The PID was created to finance roadway and landscaping improvements to include erosion control, storm drainage, water, wastewater, and paving. Assessments were used to finance the resolution; which property owners can pay in full or in installments.

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

  • Utah passed Senate Bill 136, authorizing funding for transit and local needs, and enhancing transportation coordination, land use, and economic development. The bill created a new state transportation investment fund for transit capital projects and included a 40% match requirement to be supported by local option sales taxes for transportation. Alternative fuel vehicle registration fees increased over a three-year period and state and local preservation funding could be used for transit corridors in addition to roads. The bill authorized transportation reinvestment zones where two or more public agencies could increase property tax revenue with transportation infrastructure projects. The transportation reinvestment zones bill took effect on May 14, 2019. Senate Bill 136 also created a tax review task force to evaluate and advise officials on the use of transportation revenues.
  • 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.
  • The City of Fairmont of West Virginia enacted street maintenance and police protection charges for residents and non-residents on May 14, 2019. The street maintenance charge covers improvements to the city's transportation system. Residents pay the fee on their utility bills, while non-resident employees who work within Fairmont's corporate limits pay the fee through a quarterly withholding.

April 2019

  • The Transportation Impact Fee in Bryan County, Georgia will go into effect April 1, 2019. The County Commission established transportation impact fees for new residential construction projects and some new non-residential projects in South Bryan County. The fees covers the costs of providing transportation systems needed to support the newly developed properties. Developers who submit building plans apply for and pay the transportation impact fees when they pay building permit fees.

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.
  • The Coos Bay City Council of State of Oregon established a transportation utility fee in March 2019 as a means generating revenue to fund road maintenance. The city currently funds road maintenance through a state collected gas tax which have been stagnant. The dedicated fee is to repair and maintenance projects along city streets. To cover the charge, residents pay a flat fee of $10 monthly while businesses pay $20 each month.

February 2019

  • In February 2019, the Fort Worth City Council approved its 20th Public Improvement District to improve a five-mile stretch of East Lancaster Avenue between East Loop 820 and Riverside Drive. It was intended to provide security services and other crime prevention deterrents like cameras and lighting to all commercial properties within the district. Improvements will be funded through a 10-year property tax that requires property owners to pay an annual assessment of $.27 per $100 of assessed value.

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.
  • In 2019, the City of Abilene began collecting a maintenance fee to manage and care for its streets. Planned repairs included micro-surfacing, asphalt resurfacing, and concrete improvements to work zones and roads. To fund the projects, the fee was collected from utility customers living within city limits, per a monthly municipal account statement.
  • In 2019, the City of Hamilton, Texas established a roadway maintenance fee to help improve the city transportation system. The fee covers costs associated with the operation, administration, planning, engineering, development, inspection, repair, renewal, replacement, and reconstruction of the public street system. Commercial and residential utility customers within the city limits pay the fee as part of their monthly bill.
  • In December 2018, the Sulphur Springs, Texas City Council established a 10-year street maintenance fee to ensure the quality and safety of the city's transportation system. The fee was added to utility bills beginning on January 1, 2019.  The fee covers the costs of inspections, repairs, improvements, and reconstruction projects along city streets, bridges, sidewalks, and storm sewer drainage systems. Residential and commercial utility customers within the city limits are responsible for paying the monthly charge.


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.

August 2018

  • In August 2018, the Fort Worth City Council approved a new Public Improvement District (PID) that included 239 acres of commercial properties along Camp Bowie Boulevard. The PID runs from Montgomery Street on the east to Irene Street on the west, and along West Seventh Street from University Drive to Montgomery. The PID was created to ensure the entire corridor continues to be economically successful by providing commercial services, local shopping, and neighborhood services. Improvements include landscaping, promotional signs and banners, capital improvements, communication programs, cooperative programs, and litter abatement. Total costs are estimated at $605,000 and are repaid from property assessments.

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.