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Home My WebLink About01-23-17 CC Mtg - A8. Legislative Update - Supplemental Materials (Distributed at Meeting) The Bridge and Road Safety Accountability Act LC1504(House Rep. Frank Garner) January 23, 2017 Quick Facts for Bozeman 1. Costs=—$80M in transportation projects are needed ($60M expansions; $20M reconstruction) 2. Revenue=currently collect—$4M annually for road construction. a. $3,400,000 impact fees b. $1,000,000 arterial collector assessment c. 700,000 Fed/state gas tax allocation—Urban funds that the State of MT manages for road construction in the City of Bozeman d. $5,100,000 e. With additional Gas Tax: We can shift—$2,000,000 from property owners to users. 3. Montana Infrastructure Coalition proposal= increase fuel tax by$.10: $.06 for cities/counties and $.04 going to MDT. a. Bozeman's share will increase from $693,945/year to$2,598,918/yr(this is the—$700k listed above) b. Total increase for all cities,towns and Gallatin County from$1,271,140 to $4,550,316 c. Counties have not had an increase in their allocation since 1983 d. Cities haven't seen an increase since 1993. 4. Montana has approx. 11M tourist, in 2014—4.8 million tourists visited Bozeman. a. In 2014 the#1 expense for non-residents—$155,000,000 Local Option Infrastructure and Property Tax Relief Act(Senator Mike Phillips) 1. Proposed legislation will mirror the current law with the following changes/requirements: a. Removes the population cap of 5500 b. Removes the Economic Analysis c. Requires minimum of 10%tax relief for property owners i. Proposed as flat rebate for all Class 4 properties d. Requires voter approval e. Requires sunset date f. Must identify critical infrastructure expenditures for voter approval 2. Estimated revenues for Gallatin County--$3.5M/ 1%annually or—$14M/yr at 4% a. Montana has approx. 11M tourist, in 2014—4.8 million tourists visited Bozeman Taxation Committee Members—House: Adam Hertz-rep.adam.hertz@mt.gov-406-239-1865 Alan Redfield-rep.alan.redfield@mt.pov-406-220-1247 Becky Beard - becky4hd80@blackfoot.net-406-479-3048 Dave Fern-rep.dave.fern@mt.gov—406-212-0674 George Kipp-rep.george.kipp@mt.gov—406-229-1045 Greg Hertz-greghertzll@gmail.com—406-253-9505 Jeff Essman-jessman@mt.gov-406-534-3345 Jim Hamilton-.rep.iim.hamilton@mt.gov—406-570-7517 Kelly Flynn - rep.kelly.flynn@mt.gov—406-459-7382 Kerry White-winwithwhite@gmail.com—406-587-3683 Kim Abbott-rep.kim.abbott@mt.gov—406-439-8721 Mary Ann Dunwell- rep.maryann.dunwell@mt.gov—406-461-5358 Ron Ehli-rep.ron.ehli@mt.gov—406-363-3130 Steve Lavin -rep.steve.lavin@mt.gov—406-212-3820 Tom Jacobson-rep.tom.iacobson@mt.gov—406-868-9814 Tom Welch-twelch1213@gmail.com-406-683-4811 Wylie Galt-wyliegaltformt@gmail.com -406-220-0157 Zach Brown -brownformontana@gmail.com—406-579-5697 Taxation Committee Members—Senate Brian Hoven -brian@hoveneguipment.com—406-761-8533 Dick Barrett-rnewbar@gmail.com—406-396-3256 Edie McClafferty-edie.mcclafferty@gmail.com—406-490-5873 Fred Thomas-sfredthomas@vahoo.com—406-777-4000 Jill Cohenour-sen.iill.cohenour@mt.gov—406-227-1144 JP Pomnichowski-sen.ip@mt.gov—406-587-7846 Mark Blasdel-sen.mark.blasdel@mt.gov—406-261-3269 Roger Web-webb4mt@hotmail.com—406-861-9322 Scott Sales-sen.scott.sales@mt.gov—406-579-7994 Sue Malek-suemalek@gmail.com—406-370-2424 Tom Richmond -tomrichmondmt@gmail.com—406-208-5588 LOCAL OPTION INFRASTRUCTURE AND PROPERTY TAX RELIEF ACT The Local Option Infrastructure and Property Tax Relief Act provides local citizens the opportunity to provide local governments the essential tools to address critical infrastructure needs and property tax relief. The Act allows local voters to establish: • a maximum tax of 4% on narrowly defined luxury items to capture impacts from tourism. • the requirement that the luxury tax automatically terminate after a term established by local voters. • a tax relief rebate for class 4 property owners using at least 10% of the revenue generated from the luxury tax. • the requirement that remaining revenue be expended on water, wastewater, storm water, road, and bridge projects within the taxing jurisdiction. Since the Act provides a clear definition of"critical infrastructure" as well as a specific list of taxable luxury items and exempted goods and services, local voters can be certain that their taxes and the "user fees" collected from visitors will be directed towards infrastructure that is the foundation for safe and healthy communities and a vibrant economy, and long overdue property tax relief. e What are the critical infrastructure needs at the local level? Montana taxpayers are facing increasing burdens every day to maintain existing infrastructure, upgrade aging systems, and accommodate new growth. Studies conducted over the past several _ years have all identified a profound and growing infrastructure deficit in our most critical systems. Water)Wastewater.- In 2011,the Montana Department of Environmental Quality identified an immediate need of$855 million for water systems. Roads and Bridges. Because of inadequate funding, 46% of major urban roads and highways in Montana have pavement surfaces that are in in poor or mediocre condition, including both local- and state- maintained roads and highways. A 2008 comprehensive evaluation by 85% of the counties in Montana reported 40% of the nearly 40,000 miles of gravel roads were in poor or failed condition. It also found that 25% of the asphalt/chip sealed roads were reported to be in poor or failed condition. Montana communities are asking for local tools to address these and other pressing infrastructure needs, and are looking for opportunities to capture revenues from visitors who impact infrastructure but pay no user fees. s Who supports the Local Option Infrastructure and Property Tax Relief Act? The Act was developed in collaboration with the Montana Infrastructure Coalition,a bipartisan organization of over 100 public and private entities involved in the design, construction, operation, and maintenance of critical infrastructure in Montana. Members include: Board of Directors: Associate Members(cont'd): American Council of Engineering Companies of Forterra Pipe&Precast Montana General Distributing Montana AFL-CIO Great Falls Development Authority Montana Association of Oil, Gas,&Coal Counties Great West Engineering Montana Chamber of Commerce Hardrives Construction, Inc. Montana Contractors Association HDR Montana Economic Developers Association Highway 2 Association Montana League of Cities and Towns Interstate Engineering Voting Members: Kalispell Chamber of Commerce American Institute of Architects Kalispell Regional Healthcare American Society of Civil Engineers-MT Section KLJ Butte-Silver Bow MACo Central Plumbing&Heating McKinstry Century Construction Missoula Chamber of Commerce City of Billings Missoula Economic Partnership City of Bozeman Montana Lodging and Hospitality Association City of Glendive Montana Association of REALTORS@ City of Helena Montana Bankers Association City of Kalispell Montana Business Assistance Connection City of Laurel Montana Credit Union Network City of Wolf Point Montana Farm Bureau Dawson County Montana Housing Coalition Dick Anderson Construction Montana Lines, Inc. Fallon County Montana Motor Carriers Association Helena Sand&Gravel Montana Petroleum Association Knife River Montana Petroleum Marketers&Convenience Store MDU Resources Group Association Prince Inc. Montana Telecommunications Association Richland County Morrison Maierle Schellinger Construction NorthWestern Energy Sime Construction Peaks to Plains Design Swank Enterprises R&R Taylor Construction United Materials of Great Falls Robert Peccia and Associates Associate Members: Sanderson Stewart Ash Grove Cement Company Sletten Construction Bear Paw Development Snowy Mountain Development Corp Big Sky Chamber of Commerce Southeastern Montana Development Corporation Big Sky Economic Development Corporation Stably Engineers and Associates Billings Chamber of Commerce STIFEL Bobcat of Big Sky Inc. Sweetgrass Development Bozeman Area Chamber of Commerce Tarlow and Stonecipher,PLLC City of Colstrip Tom Roe&Sons Construction City of Great Falls, City Manager Treasure State Resource Association City of Missoula (CAO) Valley Sand&Gravel City of Shelby Westate Machinery City of Sidney WGM Group DOWL Engineering Z&Z Asphalt Eastern Plains Economic Development Corp Gazette opinion: How to lower Montana's bill for bad roads I Gazette Opinion I billingsga... Page 1 of 5 http://billingsgazette.com/news/opinion/editorial/gazette-opinion/gazette-opinion-how-to-lower- montana-s-bill-for-bad/article d5347321-04cc-55bc-89da-81ef23fd2934.html FEATURED GAZETTE OPINION Gazette opinion: How to lower Montana's bill for bad roads Jan 22, 2017 McCARTHY http:/Ibillingsgazette.com/news/opinion/editorial/gazette-opinion/article_d5347321-04cc-5... 1/23/2017 Gazette opinion: How to lower Montana's bill for bad roads Gazette Opinion billingsga... Page 2 of 5 4� Montana is paying big bucks for bad roads. The tab is around $794 million a year, according to a study commissioned by the Montana Infrastructure Coalition. The infrastructure coalition is composed of Montana government, business and economic development groups. TRIP, a national transportation research group, used data from the Montana Department of Transportation and the Federal Highway Administration to estimate costs of additional wear and tear on vehicles, crashes resulting from unsafe roads and fuel wasted in congested traffic areas. The totals are eye-popping: • $328 million annually in costs related to crashes on unsafe roads. • $296 million in vehicle operating costs caused by poor roads. • $170 million for fuel and time wasted due to traffic congestion. http://billingsgazette.com/news/opinion/editorial/gazette-opinion/article_d5347321-04cc-5... 1/23/2017 I Gazette opinion: How to lower Montana's bill for bad roads I Gazette Opinion I billingsga... Page 3 of 5 5 In Billings, TRIP estimated that 30 percent of arterials are in poor condition and only 33 percent are in good condition. Great Falls is even worse off with 52 percent poor V roads and 18 percent good. Statewide, only 26 percent of major roads are rated in good condition, and 34 percent are poor. i S F`S 2 Statewide, 8 percent of bridges are structurally deficient, which means "there is significant deterioration of the bridge deck, supports or other components." i The cost of road safety hazards is reflected in Montana's abysmal highway fatality y statistics. Montana's traffic fatality rate is nearly 50 percent worse than the national average on the basis of miles traveled. Only two other states have a higher fatality I; rate. Most fatal crashes occur along Montana's rural highways. E 3, The number of vehicle miles traveled in our state has increased by 32 percent since the turn of the century. That increased road use demands attention. 1 MDOT has estimated that it will be $874 million short annually of what's needed to make headway on highway improvements through 2021 . Fortunately, Montana doesn't have to pay that cost all by itself. The federal government funds about 87 percent of the state's road construction budget. Montana must come up with 13 percent. For decades, that state match has come from the state fuel tax of 27 cents per gallon s of gas and diesel, with exemptions for agricultural use. The cost of maintaining safe roads has outpaced tax revenue. The 2017 Legislature and Gov. Steve Bullock must come up with a plan that meets the ongoing need for road improvement. A one-year or two-year fix isn't sufficient. Highway safety projects are planned months or years in advance and may take multiple construction seasons to complete. Montana must have a reliable, ongoing, dedicated source of funding its road safety responsibility. 1 1 It's time to raise the state fuel tax to meet this public safety need. m i is z e http:/ibillingsgazette.com/news/opinion/editorial/gazette-opinion/article d5347321-04ce-5... 1/23/2017 Gazette opinion: How to lower Montana's bill for bad roads I Gazette Opinion I billingsga... Page 4 of 5 For more than a year, we've heard Republicans and Democrats expound on their support for state infrastructure improvement, but no one has publicly presented a plan for ongoing support of safer transportation infrastructure. Finally, a leader has stepped up. Rep. Frank Garner, R-Kalispell, has requested a bill that he calls "The Bridge and Road Safety Accountability Act. LC1504 was being drafted last week. "The mission has got to be to improve road and bridge safety," said Garner, a former law enforcement officer. "It's going to be comprehensive," Garner told The Gazette last week by phone from Helena. "Right now it's kind of in the fact-finding stage; we're getting ideas." The legislation will have three key aims: 1. Identification of ways to make the MDOT more efficient. 2. Revenues for state and local road needs. 3. Accountability to taxpayers. "We want to make sure we do with this money exactly what we said we would do with it — road and bridge safety," Garner said. A bipartisan group of lawmakers has been discussing this legislation. Garner said he wants input from the House and Senate, along with MDOT. Rep. Kelly McCarthy, D-Billings, is among the legislators working with Garner. The TRIP report identified serious infrastructure needs, McCarthy said. As McCarthy said, there is political risk for lawmakers who support any revenue bill. "Everybody who votes for it is going to get a (campaign) mailer next year saying they voted to raise taxes." http://billingsgazette.com/news/opinion/editorial/gazette-opinion/article_d5347321-04cc-5... 1/23/2017 Gazette opinion: How to lower Montana's bill for bad roads I Gazette Opinion I billingsga... Page 5 of 5 The risk of doing nothing is far greater. We commend McCarthy, Garner and the other lawmakers who recognize that they were elected to solve public problems that individuals can't solve on their own. Safe roads are essential to every part of Montana life. Building and maintaining safe transportation infrastructure also creates good jobs, keeping taxpayers' investment in our state. Stay updated with the Billings Gazette in your news feed. Like �o4K Stay updated with the Billings Gazette in your news feed. uke �oaK http://billingsgazette.com/news/opinion/editorial/gazette-opinion/article_d5347321-04cc-5... 1/23/2017