Development of a Financially Constrained Project List
The transportation funding program identifies which projects/programs developed in the TSP process will be funded based on existing and anticipated revenue sources and the projected costs of proposed projects and programs. This task is completed after the Step 5: Solution Development & Evaluation task and builds upon the preliminary historic and projected transportation project funding initially considered as part of the Existing Conditions assessment. This assessment involved the identification of current and historical transportation revenue sources, current and historical transportation expenditures, and a projection of planning period funding and expenditure forecasts. In recognition that the planning-level cost estimates from the preferred list of transportation projects/programs will likely exceed the projected planning period funding forecast, a revised project list shall be developed that more closely considers projected financial limitations.
The product of this effort often leads to a significantly pared down list of transportation projects/programs that can be realistically funded and implemented. All other transportation projects/programs will comprise a list of aspirational or desired projects that, while valuable, are unlikely to be funded unless additional revenue sources are found.
Developing a Financially Constrained List in Metropolitan Areas
For cities and counties in metropolitan areas and Metro, OAR 660-012-0180 provides a process for identifying the financially constrained project list. These rules state the following:
Shall
In developing the financially constrained list of projects/programs, the following methods shall be applied:
- Prioritize the unconstrained list of projects.
- Create a financially constrained project list using the top available projects on the prioritized unconstrained project list and the planning-level cost estimates developed as part of the Step 5: Solution Development & Evaluation task.
- Verify that the sum of the planning-level cost estimates for projects placed on the financially constrained project list does not exceed 125% of the funding available, as identified in the Existing Conditions assessment. Both the project list and the funding can incorporate Transit Development Plans, Transportation Safety Action Plans, and other such plans from partner jurisdictions and service providers.
- Select projects such that the resulting financially constrained list would:
- Reduce per capita vehicle miles traveled, as provided in OAR 660-012-0160 if it includes any vehicle capacity enhancing projects that require enhanced review per OAR 660-012-0830. (Note that OAR 660-012-0210 postpones the use of VMT per capita analysis for land use decisions but does not impact the requirements for VMT per capita analysis in TSPs);
- Burden underserved populations less than the city or county population and benefit underserved populations as much as or more than the city or county population; and
- Make significant progress toward meeting the performance targets set for each performance measure as provided in OAR 660-012-0910 or OAR 660-044-0110.
- If the list of projects cannot meet the previous three bullets, the city or county must adjust the project list to find the highest-ranking set of projects that can meet the criteria. This is the financially constrained project list.
Developing a Financially Constrained List in Non-Metropolitan Areas
Per OAR 660-012-0040, any planned study area outside of metropolitan areas that is located within an urban growth boundary containing a population greater than 2,500 persons shall prepare a detailed financial assessment of the preferred list of transportation projects/programs. In general terms, this financial assessment:
- Discusses existing and anticipated funding mechanisms and the ability of these mechanisms to finance future projects/programs.
- Prioritizes and identifies the general timing of each multimodal transportation project/program against the projected funding.
Shall
In developing the financially constrained list of projects/programs, the following methods shall be applied:
- Prioritize the list of projects.
- Coordinate with outside transportation service providers to understand the types and levels of funding available during the planning period.
- Match the type of project or program with likely revenue sources.
- Match the timing for receipt of revenues with the timing for project or program and construction and implementation.
Should
Where applicable and sufficient funding details or financing projections are available, the following methods should be applied:
- Account for the cost of projects and the buying power of revenues at the anticipated time of construction/implementation.
- Use the most flexible revenues on the most difficult-to-fund types of projects (e.g., transit and off-street bicycle and pedestrian facilities).