The Carrboro Board of Aldermen heard a presentation from GoTriangle employees last Tuesday on fiscal plans for the Durham-Orange Light Rail Transit Project.

The presentation was delivered by Danny Rogers, a project director in the Capital Development department, and John Tallmadge, the director of the Regional Service Development department.

Rogers explained that the relationship between the cost of the project and the wherewithal of local revenue streams is what led planners to consider a long-term payment plan.

“In order to make our financial plan, we had to stretch out how long it took to construct it so our expenditures would match our revenues,” he offered.

According to Rogers, construction on 17.7 miles of commuter rail between Durham and Chapel Hill could be completed by 2026, but cash flow constraints prohibit that sort of accelerated timeline.

“Just like if you’re buying your home, you do a 15-year loan or a 30-year loan depending on what you can afford,” he noted. “Our cash flow is our constraining piece to this, so if we could do it faster, it actually costs less, but we have to have more money sooner.”

Those constraints were noted by Tallmadge during his remarks on municipal augmentations to revenue models and how they continue to affect the funding of the project.

“Since we adopted these plans, there were changes to federal funding rules; there have been changes to state funding rules,” he explained. “Everything we’re doing, if we want to move it all forward, is relying more on the local sales tax and the local vehicle registration fees.”

Board member Jacquelyn Gist was reluctant to endorse those remarks, citing bus rapid transit systems as a more cost-effective way to facilitate local public transportation.

“Why aren’t we using buses that could serve more people in more routes rather than looking at eventually $2.476 billion,” she asked.

A similar message was delivered by board member Randee Haven-O’Donnell, who expressed concern over having Carrboro residents pay for a commuter rail that does not extend into their town.

“How do I explain to our constituents that they will be paying a share of services they will never have,” she asked.

Feelings of ill will toward the project were countered by board member Damon Seils, who reminded his colleagues that the project has moved forward due to public referendums.

“It’s simply untrue to say that this plan does not serve Carrboro,” stated Seils. “It does, and we’re working hard to make sure it does.”

Proponents of the project tout studies released by GoTriangle that put the projected number of daily passenger trips by rail at over 27,000.

In a meeting with the Orange County Board of Commissioners earlier this year, Rogers cited that using federal loans to assist with project costs would result in a 45-year repayment plan.

According to Tallmadge, draft payment plans for the project will be released in April, with a public comment period scheduled for May and the submission of a final plan in June.

Image by GoTriangle.

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