Page 24 - Sept/Oct 2018 Vol 36 No 3
P. 24
New Money from page 23 revenue required to support a TUF, it the TUF to be offset by reduction in
is important to consider fully funding property tax rates.
recognized as a National Standard the transportation needs as opposed • Many large generators are tax exempt.
within the practice. to replacing the current year CIP and Hospitals, schools, government facilities,
• The best indicator of the site-associated operating budget items. Over the years, places of worship, etc. do not pay taxes.
trips when more site-specific several programs and projects have These facilities would pay a user fee
information is not available. differed due to inadequate funding and such as a TUF, similar to a solid waste or
There are some land uses that may not should be considered when developing a sanitary sewer.
be identified by ITE. In those instances, target rate for implementation. • Trips generated by land use is the most
research is conducted and a rate is common and defensible method for
established based on the best information It is also important to note local calculating fee.
available using data from other similar options for funding roadway projects | • Accounts for network use by non-
locations. other transportation services: residents. The trips generated by non-
The actual rate will be determined by • Eliminate/Reduce dependence residential uses includes traffic from
two primary factors: surrounding suburbs and counties.
• The amount of funding that needs to be on property taxes. A dedicated • Funding available for state/federal
provided based on the cost of and how transportation funding source may match. In the past, some federally
fast transportation maintenance and remove transportation projects from the funded roadway projects have not
projects can be implemented, and general fund (CIP + Operating). moved forward due to the local
• The number of residential and non- • Dedicated funding source for governments not being able to provide
residential parcels contributing to the transportation projects. Funding for the 20 percent match. This is a loss of
enterprise fund. The method used to specific transportation items identified leveraged funds.
develop the TUF rate assigned to both in local ordinance/statute when the • Provide local matching funds for
residential and non-residential land uses enterprise fund is established. It is transit. For those communities that
is tailored to the individual community. illegal to use enterprise funds for other provide transit service, additional
Some may be more residentially purposes. funding can assist agencies in providing
oriented while others may have a heavier • The Tennessee Department of more or improved routes for home
office and commercial component. Transportation (TDOT) is placing to work/shopping trips for transit-
These factors can affect how the overall more emphasis on local funding. Local dependent citizens.
rate structure is developed. funding requirements continue to • Direct benefits for some special interest
When establishing the amount of increase. groups. Provide a dedicated bicycle
• May decrease overall residential cost
(taxes). Potential for a portion of
24 TPW September/October 2018
