LIST OF FIGURES
LIST OF TABLES
The following summaries of TUFs programs provide additional information on the background of some programs. Additional TUFs program summaries can be found at FHWA EDC-5.110
Corpus Christi is a coastal town situated on the Gulf of Mexico. A mid-sized town of roughly
386,000 people, it is the eighth most populated municipality in Texas. In 2013, the city council approved an ordinance to establish a street maintenance fee (SMF) for a 10-year period.111 These revenues funded, in part, the city's Street Preventative Maintenance Program (SPMP), which is part of a four-part plan designed to improve street conditions through reconstruction, rehabilitation, systematic planned street maintenance, and policy changes. The SPMP provides preventative maintenance for those roads classified as in "good" or "fair" condition based on their pavement quality index score. The street maintenance funds are not meant to rehabilitate roads in "poor" or "failed" condition.112 In fiscal year 2019–2020, the funds collected from the SMFs contributed $11.7 million, or close to 36 percent of the total street maintenance budget of $32.5 million. The remaining funds for street maintenance were derived from allocations from the Regional Transportation Authority, 5 percent of revenues collected from industries housed in the industrial district,113 the city's general fund, and other sources. For residents who may take issue with the street maintenance fee, which amounts to $5.38 per single family house per month in 2020, the city has established an appeals process, and for lower income residents, a discount program.114
The City of Hillsboro is a mid-sized town of just over 100,000 people located in a tech-heavy industrial corridor to the northwest of Portland, OR. In 2008, after years of a growing maintenance backlog that could not be addressed through the city's share of State and county gas taxes,115 the city instituted a TUFs program. The program established a monthly user charge on residential and nonresidential property owners. The charges were levied via the city's utility bill, and the proceeds, collected from all residential, business, government, school, and nonprofit properties, are used to support improvements in pavement conditions and construction of new sidewalks and bike paths. Residential property owners pay monthly fixed fees that invest in two programs—the Pavement Management Program and the Bicycle and Pedestrian Capital Improvement Program. Nonresidential property owners (e.g., governments, schools, nonprofits) pay a base charge and a calculated charge based on property type (according to a classification system), and, in most cases, the business's square footage. Funds received from nonresidential property owners are invested in the Pavement Management Program. In 2015, Hillsboro's city council adopted a stepped rate increase over the subsequent 5-year period, intending to use the funds to fully fund the city's Pavement Management Program, which is one part of the road maintenance budget. Since 2018, revenues from its TUFs program have represented 25 percent to 27 percent of all transportation-related revenues for the city.116 In 2019, Hillsboro conducted a 5-year review of this program, adjusting the fees to ensure that the cost of maintaining roads was spread fairly across users.117
The City of Highland is a small, but rapidly growing suburb of roughly 15,000 people. It is located approximately 30 miles south of Salt Lake City. In the mid-2010s, a consistent complaint from residents pertained to the inadequate condition of the roads, making the municipality prioritize maintaining and improving roads. The city conducted a study in 2016 which found that 45 percent of the city's roads were in poor condition, with many other roads deteriorating quickly.118 The city evaluated options for funding improvements and rehabilitation, including considering raising property taxes. In May 2017, after research and five public hearings, the city council voted to create a Transportation Utility Fund, dedicated to the operations, improvement, maintenance, and rehabilitation of roads. The fund was capitalized through an
$18.50 per month transportation fee on each utility account, which the city began charging in August 2017. There are several fund requirements, including (1) monies can only be used for road maintenance and rehabilitation, (2) an annual report on the fund will be part of the budget process, (3) they will reevaluate the fund if the city gains more or less road funds from the State's gas tax119 or other sources, and (4) the fee will expire on June 30, 2028, when all of the city's bonds will be paid off.120
The City of Newberg has just over 22,000 people and is located near Portland. In 2016, the city's 65.5 miles of paved streets and 4 miles of gravel roadways ranged from poor to good condition, and the cost of rehabilitating or maintaining them exceeded the available funds.121 The city determined that to maintain current pavement conditions it needed to overcome a funding shortfall of approximately $1.9 million per year.122 To address this, the city convened an ad hoc committee, composed of 14 representatives from businesses, nonprofits, the school district, and others who use the road network, to examine ways to pay for road maintenance. After several public consultations, the committee recommended that the city adopt a transportation utility fee, which it did in 2017. The TUFs were expected to bring in close to $1.2 million per year to be supplemented with potentially $0.7 million from another source, such as a gas tax.123 Single-family homes pay $4.99 per month; multifamily homes, apartments, and condominiums pay slightly less. Monthly fees charged to nonresidential properties are based on property class and square footage.
The city allows for the rate charged to nonresidential buildings to be contested.124 Furthermore, there is a 50 percent waiver for owners experiencing economic hardships, including for unemployment of a household member if the household makes less than 80 percent of the U.S. Department of Housing and Urban Development median household income.
Taylor is a city of roughly 15,000 people located 29 miles northeast of Austin, the State capital. In February 2016, to address the city's street repair and maintenance challenges, the city council approved a TUFs ordinance, which became effective in June 2016. The TUFs are structured as two separate flat rates: one for residential properties of $8 per month and one for commercial properties. The rates for commercial properties are based on a five-tier structure, ranging from $25 to $133 a month, depending on property size and trip generation factors.125 Funds raised via the TUFs can only be used for street repair, reconstruction, and maintenance, as well as sidewalk maintenance. The city reviews the approved ordinance and rate structure every 3 years.126
110 U.S. Department of Transportation, Center for Innovative Finance Support. Transportation Utility Fees. https://www.fhwa.dot.gov/ipd/value_capture/defined/transportation_utility_fees.aspx
111 Martinez, Richard. Street Maintenance Fee City of Corpus Christi Use Transportation Utility Fee (TUF) to Fund Roadway Maintenance & Enhance Safety. FHWA Virtual Peer Exchange, May 14, 2020.
112 Ibid.
113 The City of Corpus Christi has "industrial district agreements with industries located within the extraterritorial jurisdiction of the City. The companies in the Industrial District pay the City an amount in lieu of property taxes. Five percent of Industrial District revenues go to the Street Maintenance Fund." Adopted FY19– FY20 Operating and Capital Budget. City of Corpus Christi, TX. 2019, p. 48.
114 Martinez, Richard.
115 Hillsboro Ad Hoc Transportation Finance Committee. April 2008. Final Report.
116 See the City of Hillsboro, OR, Adopted Budget Fiscal Year 2020–2021, p. 78. https://www.hillsboro-oregon.gov/city-services-overview/budget
119 Specifically, the Class B & C gas tax.
121 https://www.newbergoregon.gov/engineering/page/transportation-utility-fee
122 City of Newberg, OR, Ordinance 2016-2811, Transportation Utility Fee. https://www.newbergoregon.gov/engineering/page/transportation-utility-fee
123 Request for Council Action for Ordinance No. 2016-2811, Legislative Hearing, Newberg, OR, May 2, 2016. https://www.newbergoregon.gov/sites/default/files/fileattachments/engineering/page/17821/ord._2016-2811_transportation_utility_fee_0.pdf
124 https://www.newbergoregon.gov/engineering/page/tuf-frequently-asked-questions
126 Ibid.
