Partnerships State and Federal
The Funding Strategy assumes a 50 % partnership and commitment of funding from State ( NCDOT ) and Federal ( Federal Transit Administration ) sources equaling $ 4 to $ 6 billion . Federal Transit Administration funding is dedicated to rail and bus transit investments . Fully funding the TMN hinges on successful partnerships with the State ’ s General Assembly and NCDOT and the FTA .
Existing Sources Capital Improvement Program
The Funding Strategy assumes the utilization and leveraging of existing and planned capital investment in transportation to support the mobility investment program and advance the goals of the Charlotte Future 2040 Comprehensive Plan .
Charlotte has a history of supporting transportation bonds to fund mobility investment through our Capital Investment Program ( CIP ). Typically , every two years a transportation bond referendum is on the ballot with the most recent approved in November 2020 for $ 102 million .
At an annual rate of $ 50 million , the application of these funds has the potential to generate $ 1.5 billion over a 30-year finance period . The integration of this funding into the broader program ensures that our collective set of investments is working towards a common set of shared objectives while contributing to the local funding of the Transformational Mobility Network .
New Funding Sources
Multiple sources of new local funding revenue were considered to fund the local portion of the program .
The Transportation Action Plan and 2030 Transit Plan both identify a variety of new funding sources that have the potential to support capital projects , operations , and maintenance . This list includes vehicle registration fees , transit advertising revenue , public-private partnerships , value capture methods , and transportation impact fees among others .
Each of these has their own potential and comes with specific requirements and approvals . While many of these have the potential to generate significant revenue , they fall short of being able to support a program of this scale .
Of the options considered , the Task Force concluded that there are only a few revenue sources that align with the scale of the program . These sources are characterized as :
Primary . Increased sales tax
Secondary . Dedicated property tax increase and vehicle registration fee
Increased Sales Tax
Dedicated Property Tax
Other
Increased Sales Tax Geography : County Directly pledged to new Revenue Bond financing
Description Authority / Approval Scale
Dedicated Property Tax Geography : City of Charlotte Source for additional General Obligation Bond financing
Further evaluation will determine if other sources are appropriate ( motor vehicle license , transit ad revenue , P3 , etc .)
State Authority County Commission Approval Voter Referendum
City Council Approval
TBD
$$$$$
Moderately Stable
$$
Stable
TBD
HOW | The Funding Strategy 63