Development of a Financially Constrained List of Transportation Projects/Programs
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 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
Step 3: Existing Conditions assessment. This assessment involves the identification of current and historical transportation revenue sources, current and historical transportation expenditures, and a projection of planning period funding and expenditure forecasts. Recognizing 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.
Financially Constrained Project List Development Factsheet
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 a financially constrained list of projects/programs, cites and counties
shall:
- Establish a method to prioritize the unconstrained list (see Step 2: Evaluation and Prioritization Criteria). This method must reflect the framework outlined in OAR 660-012-0155 and emphasize:
- Projects that reduce vehicle miles traveled;
- Projects that reduce burdens on and benefit underserved populations as much as the city or county population as a whole
- Projects that help achieve greenhouse gas reduction performance targets set as provided in OAR 660-012-0910.
- 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.
- Complete the “enhanced review" process for any vehicle capacity expanding projects triggering review per OAR 660-012-0830. This review must be completed and authorization given by the local governing body in order for a project to be included on either the unconstrained or constrained project list. If the constrained project list includes one or more of these projects, VMT analysis must be conducted as provided in OAR 660-012-0160. See
Enhanced Review of Select Roadway Projects page under Step 5.
- 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 Step 3: Existing Conditions assessment. Both the project list and funding must include projects within the planning area developed or funded through other agencies. The list may integrate Transit Development Plans, Transportation Safety Action Plans, and other such plans from partner jurisdictions and service providers.
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 priority projects that are more difficult to fund (e.g., transit and off-street bicycle and pedestrian facilities)