Financial Impact Of Potential 1/2 Cent Sales Tax Repeal
Repeal measure on the Public Transit 1/2 Cent Sales Tax scheduled for November 2007 ballot:
If repeal is approved, tax ceases July 1, 2008 (FY2009 budget). Projected Revenue from ½ Cent Sales Tax in FY2009:
$77M Uses of the ½ Cent Sales Tax:
Service Scenarios and Resulting Impacts if ½ Cent Sales Tax Repealed:
Options to Cover a Loss of ½ Cent Sales Tax Revenue: A)Increase Property Taxes
B) Delete planned capital projects and cut General Fund services including Police, Fire, Solid Waste, and TransportationImpact to Capital Projects Reduction of $14.2M in planned, annual debt service results in elimination of $257M in capital projects No 2008 or 2010 bond referenda to fund major City capital project needs results in elimination of following projects: Road construction Sidewalks Neighborhood projects Affordable housing Roadway connectivity, traffic flow, bicycles, and bridges Examples of eliminated future road construction projects:
Impact to General Fund ServicesReduce or eliminate the following services ($9.6M to $72.9M): Police officers Judicial system support Fire companies Bulky waste collection Recycling collection Yard Waste collection Street right-of-way cleaning Street pothole repair Street repaving Street lighting Landscape maintenance CharMeck 311 customer service Area and Economic Development Plans Neighborhood action plans and community involvement After-school programs Small business and summer youth employment programs Stormwater capital projects contribution Outside agencies
 | |
| Scenarios* | Service Impacts |
| 1. Reduced Bus Service Only (No Light Rail) | -No rail or trolley services -Fares increase 25% -Reduced hours of service -41 of 76 bus routes eliminated, including: 2 of 3 Gold Rush routes 7 of 32 local bus routes 16 of 20 Express bus route 16 of 17 Neighborhood Shuttles 4 routes wholly funded by outside organizations not affected -Reduced frequency on all remaining bus routes -No Sunday Service -Special Transportation Service (STS) Cut 40% -No funding for Dept. of Social Services busing -Half of vanpools eliminated |
| 2. Reduced Bus & South Corridor Rail Service Only (No Additional Corridors) | -Same bus service as in Scenario 1 -Wait times for South Corridor (LYNX Blue Line) services double to 15 minutes peak and 30 minutes off-peak -Fares increase 25% -Limited bus services feeding into rail line |
| 3. Current Bus Service & Planned South Corridor Rail Service Only (No Additional Corridors) | -No future corridors (Northeast, North, Southeast, West, and Center City) -No future bus or South Corridor improvements |
| 4. Continue 2030 Transit System Plan | -None |
| * A replacement funding source is required under all scenarios. |
| Scenarios | Amount of Replacement Funding Needed | Tax Rate Increase | Median Property Tax Bill Increase* |
| 1. Reduced Bus Service Only (No Light Rail) | $18.3M plus $306M to repay Feds and State | 2.6 cents | $42 |
| 2. Reduced Bus & South Corridor Rail Service Only (No Additional Corridors) | $25.4M | 3.6 cents | $58 |
| 3. Current Bus Service & Planned South Corridor Rail Service Only (No Additional Corridors) | $76.0M | 10.7 cents | $171 |
| 4. Continue 2030 Transit System Plan | $108.2M | 15.2 cents | $243 |
| * For comparison, median household ½ cent public transit sales tax expenditure is $39 annually (½ cent only). Average of the four median property tax bill increase scenarios outlined above is $129. |
| Community House Rd. | Oakdale Rd. | Robinson Church Rd. |
| Auten Rd. extension | Beaties Ford Rd. | Fred D. Alexander Blvd. |
| Idlewild Rd. | Statesville Rd. | Rea Rd. |
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