(A) Local bond measures. Local bond measures, or levies, are usually initiated by voter-approved general obligation bonds for specific projects. Bond measures are typically limited by time based on the debt load of the local government or the project under focus. Funding from bond measures can be used for right-of-way acquisition, engineering, design and construction of pedestrian and bicycle facilities.
(B) Tax increment financing/urban renewal funds. Tax increment financing is a tool to use future gains in taxes to finance the current improvements that will create those gains. When a public project (e.g., sidewalk improvements) is constructed, surrounding property values generally increase and encourage surrounding development or redevelopment. The increased tax revenues are then dedicated to finance the debt created by the original public improvement project. Tax increment financing typically occurs within designated Urban Renewal Areas (URA) that meet certain economic criteria and approved by a local governing body. To be eligible for this financing, a project (or a portion of it) must be located within the URA.
(C) System development charges/developer impact fees. System development charges, also known as developer impact fees, are typically tied to trip generation rates and traffic impacts produced by a proposed project. A developer may reduce the number of trips (and hence impacts and cost) by paying for on- or off-site pedestrian improvements that will encourage residents to walk or use transit rather than drive. In-lieu parking fees may be used to help construct new or improved pedestrian facilities. Establishing a clear nexus or connection between the impact fee and the project’s impacts is critical in avoiding a potential lawsuit.
(D) Street user fees. The revenue generated by a street user fee is used for operations and maintenance of the street system, and priorities are established by the Public Works Department. Revenue from this fund should be used to maintain on-street bicycle and pedestrian facilities, including routine sweeping of bicycle lanes and other designated bicycle routes.
(E) Local Improvement Districts (LIDs). Local Improvement Districts (LIDs) are most often used by cities to construct localized projects such as streets, sidewalks or bikeways. Through the LID process, the costs of local improvements are generally spread out among a group of property owners within a specified area. The cost can be allocated based on property frontage or other methods such as traffic trip generation.
(F) Business improvement districts. Pedestrian improvements can often be included as part of larger efforts aimed at business improvement and retail district beautification. Business Improvement Districts collect levies on businesses in order to fund area-wide improvements that benefit businesses and improve customer access. These districts may include provisions for pedestrian and bicycle improvements, such as wider sidewalks, landscaping and ADA compliance.
(G) Other local sources. Residents and other community members are excellent resources for garnering support and enthusiasm for a bicycle and pedestrian facility, and the city should work with volunteers to substantially reduce implementation and maintenance costs. Local schools, community groups or a group of dedicated neighbors may use the project as a project for the year, possibly working with a local designer or engineer. Work parties can be formed to help clear the right-of-way for a new path or maintain existing facilities where needed. A local construction company could donate or discount services. Other opportunities for implementation will appear over time, such as grants and private funds. The city should look to its residents for additional funding ideas to expedite completion of the bicycle and pedestrian system.
(Ord. passed 6- -2009)