Klamath County TSP - Virtual Open House #2Virtual Workshop

Funding for Improvements

Chapter 5 of the Draft TSP presents the funding and implementation plan for the County. The projects shown in the TSP are intended to provide the County with a flexible long-range plan. The Plan does not obligate the County to complete the projects shown but does show County support for the projects, which will help the County be more competitive for future potential grant opportunities. In total, the TSP projects (excluding Visionary projects, which are not anticipated within the next 20 years) are estimated to cost the County up to $161 million over the next 20 years for roadway, ITS, safety, bicycle, pedestrian, and bridge improvements. In addition to these projects, the transit service program recommendations identified within Klamath County are estimated to total approximately $5.55 million. The "Summary of Project Costs" is provided to the right.

The County has estimated a total 20-year revenue of approximately $212.6 million. This estimate equates to between $10 million and $11.5 million in annual revenue, with the estimate decreasing each year as Secure Rural School (SRS) funds decline. Assuming the County’s expenditures remain relatively constant, the County will continue to exceed its annual revenue. Therefore, implementation of any of the TSP solutions will require new funding sources or further depletion of the County’s reserve fund. The County has been using the reserve fund to cover the average annual deficit over the past 10 years. The County has developed three financial scenarios to illustrate potential future financial situations. The three example scenarios include:

  1. Scenario 1: all roadway maintenance and TSP projects are funded, resulting in a $364 million deficit for the County’s reserve fund. This scenario is not feasible.
  2. Scenario 2: the reserve fund is constrained to its current balance ($75 million); $106 million in roadway maintenance is deferred over the next 20 years; the County’s bridge program can only be completed over the next 10 years, with minor bridge repair; the County contributes approximately $75,000 per year to urban safety improvements and ADA ramps; no TSP projects are implemented.
  3. Scenario 3: the reserve fund is constrained to allow implementation of all high priority TSP projects – compared to Scenario 2, this results in deferring only $78 million in roadway maintenance over the next 20 years, more funding for bridge repairs, more funding for urban safety improvements and ADA ramps ($175,000), implementing all high priority TSP projects, and a reserve fund balance of approximately $28.5 million in 2040.

The "Proposed Funding Sources-1" to the right shows potential future funding sources from the federal and state level.

The "Proposed Funding Sources-2" to the right shows potential future funding sources from the local level.