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5. Using Transportation Reinvestment Zones

Local Jurisdictions that Can Use TRZs

* According to the Texas Attorney General, the ability of a county to use TRZ revenue as debt collateral could be constitutionally challenged.

Type of Projects that Can Be Funded with TRZs

Texas law allows for the creation of a TRZ for a variety of transportation projects, including, tolled and non-tolled roads; passenger or freight rail facilities; certain airports; pedestrian or bicycle facilities; intermodal hubs; parking garages; transit systems; bridges; certain border-crossing inspection facilities; and ferries.

Texas law does not limit the use of TRZ funds to State or Federal transportation projects.
Texas Transportation Code Sections 222.105–111

 

Utah law allows local governments to define the transportation need and proposed improvement within the zone that can be funded using TRZ revenues.

Utah law does not limit the use of TRZ funds to local, State, or Federal transportation projects.
Utah Code Section 11-13-227

 

TRZ Financing Methods

Financing of improvements using current revenues, such as general taxation, fees, and service charges

• Advantages: No financial (interest) cost
• Disadvantages: Slow project delivery

Issuing debt securities to fund day-to-day obligations or capital expenses such as transportation projects.

• Advantages: Earlier availability of capital and the more flexibility in project selection
• Disadvantages: Transaction and financial (interest) costs

Secure funds via direct loans and credits to pay for transportation projects.

• Advantages: Earlier availability of capital and lower transaction and financial (interest) costs
• Disadvantages: Federal-Aid Highways above rural minor collector included in the TIP (23 USC 610(f))

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