DALLAS – The Austin, Texas, City Council has set the stage for a $720 million general obligation mobility bond referendum in November to upgrade road corridors -- the latest of many state and local government actions taken after Congress failed to provide a long-term fix for transportation funding last year.
Dozens of localities and states have proposed bond issuances, increasing gas or other tax revenues, or new transportation policies in an effort to make up for falling gas tax revenues, which historically have been used to fund transportation projects but have fallen because of lower gas prices and more fuel efficient cars.
Congress provided only modest increases in federal funding for transportation in its five-year bill last year and declined to fix or consider alternatives to the Highway Trust Fund.
Austin's city council voted 8-3 for the $720 million bond package, $500 million of which would be used for upgrades along seven major road corridors across the city.
The council rejected a proposal approved unanimously by its transportation committee for a more limited bond package of $300 million to $500 million before accepting Mayor Steve Adler's Go Big Corridor plan.
"Great cities do big things," Adler said "It's time to go big or go home. We have a unique opportunity in this election coming up to do something significant."
The 8-3 vote in favor of Adler's plan directs the city staff to develop the details of a $720 million bond package. The council will meet in early August to decide on the specific language of the bond referendum and whether to put it on the Nov. 8 ballot.
Austin could issue $250 million of GO bonds at its current property tax rate and another $470 million by raising the rate by 2.25 cents per $100 of assessed valuation, Adler said. The bonds would be issued over five years.
The city's congestion woes are the result of inadequate investments in public infrastructure over the last two decades, he said.
"Austin, over the last 20 years has only done transportation bonds in the total amount of $640 million," Adler said. "I think that's one of the reasons why we have the challenges that we have."
The $720 million bond package would allow the city to reserve $250 million of bond capacity for future needs, including parks, libraries and other transportation projects, at the higher tax rate, he said.
"We love Austin, but our traffic is among the worst in the country, and it's getting harder and harder to be able to afford to live here," he said. "This is the moment for Austin to decide whether it's serious about doing something about these problems in a new way."
Councilwoman Ann Kitchen, who chairs the transportation panel and proposed the $300 million bond option, voted against Adler's proposal.
She proposed an amendment to increase the transportation panel's recommendation to $500 million but it was turned down.
"I'm very disappointed my colleagues didn't hear what I was trying to say," Kitchen said. "I can't support this. My constituents asked me to try to make some changes, and I wasn't successful."
A poll released last week found 56% of the likely voters surveyed would support a $720 million bond plan while only 36% backed the $300 million option.
The biggest project in the mayor's bond package is a $482 million plan to upgrade seven major arteries to "smart corridors" with additional turn lanes, cut-out lanes and special signals to smooth bus operations, raised medians, bike lanes, sidewalks, and storm sewers.
Upgrading the corridor streets to their highest potential would cost more than $1 billion, said Adler's special assistant John-Michael Cortez.
"Obviously, we're not going to get them all done with this tranche of money," Cortez said.
The city has at least $2.5 billion of unfunded transportation projects, said assistant city manager Robert Goode. The total does not include the $2 billion needed to add capacity to Interstate 35 through the city, he said.
The GO bond plan includes $100 million to untangle congested intersections, $80 million for sidewalks and urban trails, $20 million for bike paths, and $20 million of safety upgrades.
The Greater Austin Chamber of Commerce, advocacy group BikeAustin, and other organizations endorsed the $720 million bond package at a news conference earlier this week.
"Big issues require big solutions," said chamber chairman Tony Budet.
