Road paving

Utility Transportation Fund

Provo is seeking a way to fund roads using the principles of equity, transparency, and sustainability. The Council, together with the Mayor, proposed a Utility Transportation Fund as a means to fund roads in a way that utilizes those principles. Watch the video above for an explanation of why roads need additional funding and how this option meets the goals of the Council and Mayor.

Wet roadEquityAll groups who use the roads need to participate. We should not ask one person to pay for another’s use. Instead, we all use the roads – we all need to help maintain them. 

Those that generate traffic on the roads will proportionally pay for the roads. Instead of relying solely on the property owner to pay for roads through property taxes, now every stakeholder will be contributing.

ConstructionTransparency It’s important that residents understand what’s being charged, how it’s being charged and why. Equally as important – the city leaders and elected officials need to know what residents expect of them.

Road funds are clearly set aside for the purpose of road repair, construction and maintenance in a dedicated account. Residents can clearly see how they are paying for roads. This allows for greater accountability on the part of elected officials.

road paverSustainability The plan needs to infuse predictability into a system that does not traditionally have a dedicated source of revenue.

The solution should be responsible and account for long-term needs. With bonding, the city rolls over remaining interest into the next road bond, refinancing accrued interest. At some point the city will run out of capacity to bond. It’s like taking out a home equity loan to pay your utility bills, and is neither fiscally responsible or sustainable.