Title
Public Transit Department Capital Improvement Program for Fiscal Years 2023-24 through 2027-28
Description
This report provides the Transportation, Infrastructure and Innovation Subcommittee with information on the Public Transit Department’s proposed Fiscal Years 2023-24 through 2027-28 Capital Improvement Program, an integral component of the department’s efforts to implement the public transit elements of the Transportation 2050 program and provide safe and reliable public transit services to the community.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
The Public Transit Department (PTD) and its regional transit partners work collaboratively to provide public transit services for the Maricopa County region. A critical component of providing these services is the capital infrastructure needed to support the regional transit system. Each year, PTD’s Capital Improvement Program includes the projected costs and funding sources, including the region’s financial share of projects. PTD has prepared and submitted to the Budget and Research Department its preliminary Fiscal Years (FYs) 2023-24 through 2027-28 CIP, as well as revised estimates for the FY 2022-23 CIP budget. Combined, the FY 2022-23 and preliminary FYs 2023-24 through 2027-28 CIP for PTD totals about $1.26 billion.
The scope of PTD’s CIP focuses on adding new facilities and infrastructure to expand and enhance the transit system, as well as upgrades and capital purchases to maintain the system in a state of good repair as called for in federal guidelines. The PTD CIP includes construction of new facilities, additional bus stop improvements (shade, furniture, and transit pads), Bus Rapid Transit (BRT) infrastructure, vehicle acquisitions to replace aging vehicles and expand the fleet for new service, updating technology, and renovation of older facilities to extend their useful lives.
PTD’s five-year CIP is fully funded, primarily with Federal Transit Administration (FTA) funds, regional Proposition 400 funds, Phoenix Transportation 2050 (T2050) funds, and financing.
The PTD CIP was developed to support economic development, regional mobility, environmental sustainability, and mitigate safety risks for passengers, staff, and contractors. Funding, aging infrastructure, and implementation of T2050 projects and services are some of the primary strategic issues PTD faces currently and in the future. Staff continues to work with the Citizens Transportation Commission appointed by the Mayor and City Council to implement the T2050 Plan.
Federal funding levels for transit nationally have recently been authorized through federal fiscal year 2026 as part of the Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law) at increased levels as compared to prior authorization levels. Bipartisan Infrastructure Law (BIL) funding level information for this fiscal year has been made available, although staff is monitoring whether funding allocations for the Phoenix region might change as the result of Census data. Also, the regional Proposition 400 sales tax for transportation is currently set to expire in less than three years, and that presents a concern for the outer years of the current five-year CIP, as well as for mid- to long-term planning for public transit. PTD continues to closely manage all resources to ensure a balanced program, while still meeting the community’s public transit needs and maintaining system assets in a state of good repair.
Current Year (FY 2023-24) Projects
There are several important projects programmed in the current fiscal year CIP budget. The regional fare collection system upgrade project, which will provide smart card and mobile ticketing fare payment options for riders, is currently in the design phase. Plans also include 25 Dial-A-Ride (DAR) replacement vehicles this year, 40 local buses, three neighborhood circulator replacement buses, and two neighborhood circulator expansion buses. Construction activities for the South Central Extension/Downtown Hub (SCE/DH) and Northwest Phase II (NWEII) light rail extensions continue. Additionally, ongoing improvements to bus stops, as well as capital maintenance of park-and-rides and transit centers, are underway. Various technology improvement projects, including transit system software and hardware upgrades, are programmed this FY. Acquisition of land for a new bus operations and maintenance facility is also programmed for this FY.
Future Projects
In FY 2023-24, there is BRT infrastructure planning, ongoing improvements for bus stops and other passenger facilities, as well as additional technology upgrades. Additionally, construction for the South Central/Downtown Hub light rail extension, as well as construction for the Northwest Phase II light rail extension, are programmed. Looking ahead, transit vehicle purchases are planned in each of the next five years to both account for ongoing fleet replacement practices, as well as the addition of vehicles related to potential service increases. Also, there are planned improvements to passenger facilities and technology systems, new BRT infrastructure, and the continued construction of the SCE/DH, NWEII, and Capitol light rail extension planning.
Financial Impact
Over the past 10 years, PTD’s CIP budget has fluctuated from $67 million to a high of over $1.2 billion, with $402 million programmed in the preliminary CIP for FY 2023-24 (Attachment A).
Historically, Public Transit’s CIP budget is mostly funded by FTA funds, with the balance of the CIP funds coming mainly from Transportation 2050 (previously Transit 2000) and Proposition 400 as the local match to FTA funds. As the T2050 light rail extensions and other transit CIP projects are implemented, financing is programmed to provide funding for those projects, as projected in the T2050 Plan. PTD’s FYs 2023-24 through 2027-28 CIP includes $266.1 million in programmed financing. Attachment B provides a summary of the proposed FY 2023-24 project categories for public transit.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.