Overview
CFR 450.324 (11) outlines the elements required to develop a transportation financial plan. The IIJA requires a financial plan that includes revenues and costs necessary to operate and maintain the roads and associated systems (signals, signage, snow removal, etc.) These costs enable an MPO like PPACG to estimate future transportation conditions and resources to make the fullest use of existing infrastructure. The FAST Act also requires the financial plan to include recommendations on the development of new financing strategies.
Federal regulations require that when the MPO develops an LRTP for a region, it does so demonstrating fiscal constraint. Fiscal constraint means that the plan doesn’t promise to the public more projects than could be built with the funding that could be reasonably expected to be available to the region within the time period of the plan. In other words, an MPO can only put projects in the plan that the MPO has a reasonable expectation that it could afford during the life of the plan.
This financial plan estimates the income from existing local, regional, state, and federal sources that can be reasonably expected over the life of the plan. These estimates should be adjusted to account for growth on the revenue side, as well as inflation on the expenditure side.
The financial plan was developed in 10-year bands so that the region can have better information on developing when projects could be built for the purposes of travel demand modeling. Realistically, projects can only be built when sufficient funding is available to build them.
This banding of projects by years into the future provides the region with valuable information on how the projects programmed within the band will perform when modeled for travel time and the State of Colorado required GHG performance.
Since the adoption of the Pikes Peak Region’s 2045 LRTP in January 2020, there has been new state and federal legislation that impacts the reasonably expected transportation funds that will be available to the Pikes Peak Region during the life of the 2050 LRTP. Most notable is the reauthorization of the FAST Act in 2021 as the IIJA, the impact of which is noted below. Also in 2021, the Colorado State Legislature passed SB 21-260.
- IIJA: This legislation increased the available federal funding to the Pikes Peak Region for roadways, transit, and bicycle and pedestrian projects. Additionally, the IIJA added a new CRP fund that the Pikes Peak Region can use to fund projects that reduce the region’s carbon footprint.
- SB21-260: Sustainability of the Transportation System. This legislation created new dedicated funding sources (fees) and new state enterprises intended to preserve, improve, and expand existing transportation infrastructure; develop the modernized infrastructure needed to support the widespread adoption of EVs; and improve accessibility to, and use of, alternate modes of transportation.
- Per-gallon fee on gasoline sales, which started at 2 cents in 2022 and will rise to 8 cents by 2028.
- A 30-cent fee on rideshare trips in gas-powered vehicles, or a 15-cent fee on trips in EVs.
- 27-cent fee on online retail deliveries.
- Increase in EV registration fees, which is indexed to inflation.
This financial plan was developed in 2023 in coordination with the local jurisdictions and CDOT and with the assistance of a local economist. It was also submitted to the PPACG TAC, CAC, and Board of Directors for their review and approval at that time in order to facilitate the project submission and selection process.
It should be noted that while these projections were as complete as possible at the time, several factors impact how much funding is available to the region. These include changes to legislation, actual revenues collected, and actual inflation rates.
Federal Funding Eligibility
As previously noted, not all roadways are eligible for federal funding. FHWA eligible roadways are:
- The NHS
- The Interstate System
- Non-NHS routes which include all other functionally classified routes (except rural minor collector and local access).
The NHS provides an interconnected system of principal arterials and other highways serving major population centers, international border crossings, ports, airports, public and intermodal transportation facilities, and other major travel destinations. The system meets national defense needs and serves interstate and interregional travel. Routes that must be included on the NHS are principal arterials, interstate highways, highways on the Strategic Highway Network, major Strategic Highway Network connectors, and congressional high-priority routes.
The IIJA of 2021 continued to allow up to 15% of Surface Transportation Block Group Program, previously known as Surface Transportation Program (STP), rural dollars to be used on rural minor collectors. All of the National Highway Performance Program funds are for use on all of the NHS, including those under jurisdiction of local governments. These funds make up over half of the federal funds available to the CDOT.
Revenue Sources
Transportation has traditionally been funded by user fees. Today, the major tax sources to fund transportation are state and federal fuel excise taxes, vehicle license fees, sales taxes, and transit fare box revenues. Although dedicated for use within the Pikes Peak Region, much state and federal funding is programmed by CDOT. A portion comes directly through PPACG for programming as described later in this document, and some FTA funding comes directly to PPACG and MMT.
Federal Funding Sources
Federal funding is derived primarily from the federal gas tax, which is currently 18.4¢ per gallon for gas and 24.4¢ for diesel. FHWA funds may be used to reimburse project costs for general transportation planning, preliminary engineering, right-of-way acquisition, construction, and audit. FHWA funds may only be spent after authorization by CDOT through FHWA.
The following sections define federal funding programs.
FHWA Funding Programs
- National Highway Performance Program (NHPP)
- Highway Safety Improvement Program (HSIP)
- Surface Transportation Block Grant (STBG, formerly STP)
- Transportation Alternatives Program (TAP) (STBG set aside)
- Carbon Reduction Program (CRP)
Of these FHWA programs, PPACG administers the process for regional funding for the bottom three bullets.
FTA Funding Programs
- 5310: Enhanced Mobility of Seniors and Individuals with Disabilities
- 5307: Urbanized Area Formula Program
- 5309: Capital Investment Program
- 5339: Grants for Buses and Bus Facilities
- 5314: Technical Assistance and Workforce Development Program
Of these FTA programs, PPACG is the direct recipient of regional Section 5310 funding and disperses it through a submission process. MMT is the direct recipient for Section 5307 funding in the region.
Discretionary Grant Programs
Discretionary grants are those that are awarded through a competitive process. The IIJA and IRA continue existing programs and create new programs used to fund transportation projects. According to the Government Accountability Office, the IIJA alone includes $110 billion in U.S. DOT discretionary grant programs. Some of these programs include the Bridge Investment Program; Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT); Rebuilding American Infrastructure with Sustainability and Equity (RAISE); and Multimodal Project Discretionary Grant (MPDG). Eligible entities, largely local governments, apply for these funds depending on the project type.
State of Colorado Funding Sources
Colorado Highway Users Tax Fund
The primary source of revenue in Colorado is the Highway Users Tax Fund (HUTF): 22¢ per gallon for gasoline and 20.5¢ per gallon for diesel. This dedicated revenue source is supplemented by car registration fees and other miscellaneous revenue. There are two levels of funding to the HUTF: a basic and an additional funding level. All fuel taxes up to 7¢ per gallon are considered basic funding. A portion of the basic funding is allocated off the top to the Department of Public Safety for the State Patrol and Department of Revenue for the Ports of Entry. The State Treasury distributes the remaining basic funding in the following manner:
- 65% to CDOT
- 26% to Colorado counties
- 9% to Colorado cities
The amount over 7¢ per gallon is considered additional funding. Additional funding is distributed:
- 60% to CDOT
- 22% to Colorado counties
- 18% to Colorado cities
Sustainability of the Transportation System (SB21-260)
Passed in 2021, SB21-260: Sustainability of the Transportation System, created new dedicated funding sources (fees) and new state enterprises intended to preserve, improve, and expand existing transportation infrastructure, develop the modernized infrastructure needed to support the widespread adoption of EVs, and improve accessibility to, and use of, alternate modes of transportation.
- Per-gallon fee on gasoline sales, which started at 2¢ in 2022 and will rise to 8¢ by 2028. The fee will remain at 8¢ until 2031, when the fee is indexed to National Highway Construction Cost Index (NHCCI) inflation.
- A 30¢ fee on rideshare trips in gas-powered vehicles, or 15¢ on trips in EVs. This fee will fluctuate based on inflation.
- 27¢ fee on online retail deliveries. The retail delivery fee may fluctuate annually, as it is indexed to inflation rates.
- $50 increase in EV registration fees, which is indexed to inflation.
- A phased-in fee for electric and hybrid vehicles to offset the loss of fuel taxes. This fee starts at $9 and grows to $90 by 2031 for EVs. The fee is $3 for hybrids and grows to $27.
- $2 per day fee on car-sharing services as well as adjusting an existing fee on car rentals to be indexed for inflation.
- Temporarily lowers vehicle registration fees in 2022 and 2023.
Funding Advancements for Surface Transportation and Economic Recovery (SB09-108)
In 2009, the enactment of SB09-108 created the Funding Advancements for Surface Transportation and Economic Recovery (FASTER) program. FASTER provides CDOT and local governments with a new funding source separate from the General Fund that is stable and predictable. The funds derive from modest increases to vehicle registration fees and other funding mechanisms and are dedicated to specific programs.
These funds are split into several categories for distribution:
- Statewide Bridge Enterprise
- High-Performance Transportation Enterprise to encourage innovative financing strategies
- A safety program
- Dedicated funds for transit
The FASTER Bridge Fund is used to repair or replace a specific list of poor-rated bridges on the state highway system. FASTER funds 80% of each project, with the local entity supplying the remaining 20%. FASTER transit funds are granted to local governments and transit agencies for projects such as new bus stops, maintenance facilities, or multimodal transportation centers. These funds cannot be used for operations.
Local Funding Sources
Local revenue comes from a variety of sources such as property and sales taxes for highway and transit projects. Other revenues include money from street-use permits, utility permits, and impact fees. There is also an allocation of state HUTF directly to each entity. Local jurisdictions may fund projects in a variety of ways, including through local funding only.
When utilizing federal and state grants for projects, local jurisdictions are generally requires to pay a certain percentage of the project, often called a local match. The local match percentage depends on the type of funding and other factors.
Pikes Peak Regional Transportation Authority
In 2004, citizens of El Paso County, Colorado Springs, Manitou Springs, Ramah, and Green Mountain Falls voted to approve the Pikes Peak Rural Transportation Authority (now called Regional) (PPRTA) sales tax on goods sold within their respective jurisdictions. In 2012 and 2022, the capital portion of this tax was renewed for 10 years with 80% approval. In 2020, the citizens of Calhan joined PPRTA.
The PPRTA is a collaborative effort among six regional governments to improve and maintain roads and support public transit. The funds collected by the PPRTA are divided between capital projects (55%), maintenance projects (35%) and transit (10%). The capital portion has a 10-year sunset provision, while maintenance and transit portions are not subject to a sunset.
Capital projects are specified on the ballot for voter approval. Maintenance funds are distributed to each of the six member governments based on the most recent decennial census. Transit funds shall only be used to implement Colorado Springs-sponsored transit activities.
PPRTA is governed by a Board of Directors and a Citizens Advisory Committee. The day-to-day work of PPRTA is performed by two full-time staff members and portions of time from several other staff members of PPACG, under an administrative services agreement between PPACG and PPRTA.
Transit Funding Fare and Advertising Revenues
Fare and advertising revenues are important funding sources for transit operations. In 2015, these revenues provided approximately 20% of MMT’s operating funds.
Fare and advertising revenues are projected to grow at 3% per year. This revenue growth is based on historical information and with a moderate growth in ridership on the transit system. No fare increase is included in this assumption.
PPACG’s Role in Funding
As the MPO, PPACG has a limited role within the regional transportation funding environment. On an annual basis, a portion of the federal STBG, TAP, and CRP funding as previously described is apportioned to the State of Colorado, which then allocates a portion to the PPACG region. In addition, the State of Colorado allocates a portion of the funding generated through SB21-260 as part of the Multimodal Transportation and Mitigation Options Fund (MMOF) program. These funds are allocated to the PPACG region via funding distribution formulas that are adopted by the state Transportation Commission (TC).
PPACG then administers the process by which those funds are programmed to projects throughout the region. That is, PPACG holds a call for projects, projects are submitted by local governments and eligible entities, projects are scored and prioritized in coordination with the TAC, projects are vetted through the PPACG committees and public engagement, and finally the programming of funds is adopted by the Board of Directors prior to being finalized in the TIP.
The amount of funding in each program fluctuates based on revenue. However, as of fiscal year (FY) 2025, the Pikes Peak Region receives approximately $9 million in STBG, $900,000 in TAP, $1.2 million in CRP, and $1.4 million in MMOF on an annual basis. To illustrate how far those dollars may go in the region, the following general costs used for estimates were provided by El Paso County and the City of Colorado Springs.
- New 2 lane rural major collector on undisturbed land: $6.2 Million per mile
- New 2 lane urban major collector (residential) on undisturbed land: $15 million per mile
- Upgrade a 4 lane urban minor arterial with safety improvements, shoulders, pavement rehab and upgrade to current standards: $18.4 million per mile
- Pave a 2 lane gravel rural major collector: $4.8 million per mile
- Urban roadway reconstruction (minor collector and above): $3.2 million per lane mile
- Resurfacing (maintenance only): $400,000 per lane mile
It should be noted that each of these programs has specific eligibilities and all funds cannot be used for all project types. Per 23 U.S.C. 133, STBG is the most flexible funding type and is a general-purpose program that can fund planning studies, enhancement activities, road projects, maintenance, and non-operational transit projects. It is the the only funding distributed by PPACG that can be used for the majority of roadway projects, including bridge projects, roadway reconfiguration, widening, or construction of new roads. As previously noted, only routes functionally classified as a urban collector, rural arterial, or higher are eligible for STBG funding.
Per 23 U.S.C. 213, TAP includes all projects and activities encompassing a variety of smaller-scale transportation projects such as pedestrian and bicycle facilities, recreational trails, routes to school, community improvements such as historic preservation and vegetation management, and environmental mitigation related to stormwater and habitat connectivity.
Per 23 U.S.C. 175, CRP includes projects designed to reduce transportation emissions, specifically carbon dioxide. Examples include traffic monitoring management, public transportation, nonmotorized transportation, intelligent transportation systems, and transportation electrification.
The state MMOF program program seeks to fund multimodal transportation projects throughout the state. Eligible projects include capital and operating costs for fixed route and on-demand transit, transportation demand management programs, multimodal mobility projects enabled by new technology, multimodal transportation studies, bicycle or pedestrian projects, modeling tools, and GHG mitigation projects that reduce VMT or increase multimodal travel.
Assumptions and Approach to Fiscal Constraint
Inflation and Year of Expenditure
The financial plan is developed by looking at fund sources over time and developing estimates of funding that can be “reasonably expected” for those fund estimates during the life of the plan. As stated above, it is appropriate to make certain assumptions for the revenue growth of certain funding types while also making considering adjustments to account for increased construction costs due to inflation (e.g., a million dollar project built today is going to more expensive when that same project is built 10 years from now, due to inflation).
The development of the 2050 LRTP involves several jurisdictions providing cost estimates for their proposed projects, and not all of them may approach inflation adjustments the same way. To provide consistency, this financial plan will adjust revenue growth upward based on reasonably expected growth over the life of the plan. Additionally, funding will be adjusted to account for anticipated increased construction costs caused by inflation. This addresses the expected reduction in buying power of the revenues over time. Approaching the financial plan in this manner allows the jurisdictions to provide current-year estimates without the need to adjust each project for inflation and provides consistency among projects.
To develop this financial plan, PPACG conferred with CDOT and Dr. Tatiana Bailey, Executive Director of Data-Driven Economic Strategies (DDES) in 2023.
Revenue Growth
To determine revenue growth, it was determined that it was best to take two approaches: one for federal funding that is determined by legislative action and another for local (PPRTA) and state (MMOF) funding as those distributions are based on sales tax and fees.
Federal Revenue
To calculate federal revenue, PPACG looked at the national apportionment for STBG Program funding, to include TAP and CRP, for the last four authorizations of the Federal Surface Transportation Act.
Table 7-1 shows the 2005 apportionment was $6.860 billion compared with the 2024 apportionment, the third year of IIJA, of $14.394 billion. Over that 20-year span, the federal apportionment will more than double. It is unlikely a doubling of federal transportation funds by the year 2050 will occur, but these numbers justify a conservative growth assumption of 10% for every 5 years.
Table 7-1: Federal Transportation Funding
| Name of Legislation | Acronym | First year | National Apportionment (in billions) |
|---|---|---|---|
| Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users | SAFETEA-LU | 2005 | $6.860 |
| Making Action Possible in the 21st Century Act | MAP-21 | 2012 | $7.105 |
| Fixing America’s Surface Transportation Act | FAST | 2015 | $10.302 |
| Infrastructure Investment and Jobs Act | IIJA | 2022 | $13.385 |
NOTE: This financial plan’s revenue calculations do not include the sale of gasoline. Federal gas sales are important to HUTF, but over the past several years it has been supplemented by other sources. Additionally, in the State of Colorado gas tax does not go to any of the MPOs, including PPACG, to program as a regional funding source. State gas tax goes to CDOT and the cities/towns and counties. Cities/towns and counties will see an impact to their transportation revenues over time, as the fleet becomes more fuel efficient and/or if it converts to EVs. It is also assumed that the State Legislature will continue to adjust registration fees to EVs over time, just as it did with SB21-260, to account for this lost transportation revenue.
Given the Pikes Peak Region’s base year amount of $59 million over years 2025-2029, Table 7-2 denotes the expected revenue growth of the federal funding available to the region.
It should be noted that the FY 2025-2029 funding represents only the funding specific to those years and does not include funding already allocated in the TIP that has rolled over from previous years. When funding is allocated to a project but there is not contractual obligation to the funds, they rolls into the next fiscal year. This happens annually at the end of the fiscal year. When funding is committed to a contract, it is removed from the TIP.
In addition, these projections do not include FTA transit dollars received by the region through MMT as the region’s designated recipient.
State and Local Revenue
On the state and local side of the equation, funds are generated by fees per transaction, in the case of the state MMOF, or an excise tax generated by the amount of the sales, for the PPRTA revenue. The growth of these revenue sources is closely tied to the overall growth of the economy.
In close consultation with DDES, PPACG looked at Conference Board’s Economic Forecast of the U.S. Economy as well as the Wells Fargo Economic Outlook focusing on 2017-2020 as a model for the annual average because that was a stable economic period between the Great Recession and covid-19. That period was about a 4.6% increase over 5 years and serves as an appropriate growth adjustment for each of the 10-year bands to project revenue.
Table 7-2 applies 4.6% adjustment to PPRTA and state funding within each 10-year band to get the projected revenue.
Table 7-2: Transportation Revenue Growth for the Pikes Peak Region (in millions, rounded to the nearest thousand)
| Fund Type | Base Amount (first 5 years) 2025-2029* | 2030-2039 | 2040-2049 | Total |
|---|---|---|---|---|
| Federal** | $59.433 | $137.290 | $166.121 | $632.844 |
| State | $7.5 | $16.051 | $17.562 | $41.112 |
| Local (PPRTA – Capital) | $462 | $988.734 | $1,081.789 | $2,532.523 |
The FY25-29 funding does not include funding in the TIP that has been rolled over from previous years.
** Does not include FTA transit dollars received by the region through MMT as the region’s designated recipient. Federal fund amounts also do not include local match, only the federal funding available.
Inflation
The assumptions above adjusted the Pikes Peak Region’s revenue growth, as a raw dollar amount, over the life of the plan; however, the buying power of those funds will diminish over time due to inflation. There is a federal requirement for PPACG to adjust the LRTP to account for the “year of expenditure” whereby revenues are adjusted downward, with the bigger adjustment happening further out in the future, to account for the buying power of the funding relative to the project estimates that are held constant in today’s dollars. As previously noted, if the project cost estimates are held constant in today’s dollars, the future revenues need to be adjusted to account for inflation so that the region does not over-program, and in turn over-promise, the projects that can be funding with the “reasonably expected” revenues available to the region.
Looking at the official Federal Reserve Economic Data (FRED) yields the following annual inflation rates:
- 3.76% from 1960 to 2022
- 2.67% from 1983 to 2019, and
- 2.477% for the past 20 years, 2003-2022.
- 2.170% for the past 20 years prior to the pandemic, 2000 to 2019
The Federal Reserve has a target of limiting 2.0% inflation on a yearly basis. Even though the Fed has many tools at its disposal, inflation can, and has, risen faster than those tools can keep inflation in check. Note the 2.67% rate over the long term.
To be conservative PPACG has chosen to use a 2.5% inflation rate per year; this allows for unforeseen “shocks” to the economy such as a sudden and somewhat sustained spike in oil prices, for example.
Because this inflation gets compounded on a year over year basis, PPACG felt it appropriate to reduce the buying power annually by 2.5% as denoted in Table 7-3.
Table 7-3: Pikes Peak Region Transportation Funding Adjusted for Inflation (in millions, rounded to the nearest thousand)
| Fund Type | Base Amount (first 5 years) 2025-2029* | 2030-2039 | 2040-2049 | Total |
|---|---|---|---|---|
| Federal** | $59.433 | $120.706 | $113.916 | $294.055 |
| State | $7.5 | $13.741 | $11.694 | $32.936 |
| Local (PPRTA – Capital) | $462 | $846.469 | $720.381 | $2,028.849 |
* The FY25-29 funding does not include funding in the TIP that has been rolled over from previous years.
** This number does not include FTA transit dollars received by the region through MMT as the region’s designated recipient. Federal fund amounts also do not include local match, only the federal funding available.
Local Funding Estimates
It is appropriate to look at the State HUTF for the jurisdictions within the MPO to ensure there is capacity to pay the required match for the state and federal funds outlined previously. Additionally, there is an expectation that the jurisdictions within the region will make the appropriate investments to keep the system in good repair.
The Colorado Treasurer’s web site contains the HUTF allocations for each jurisdiction over the past five years, which are used to develop a baseline 5-year average. This is shown in Table 7-4.
Table 7-4: Local Jurisdictions HUTF Allocations (rounded to the nearest dollar)
| Income | 2022 | 2021 | 2020 | 2019 | 2018 | 5-year Average |
|---|---|---|---|---|---|---|
| El Paso County | $13,860,860 | $13,269,322 | $12,320,915 | $15,782,257 | $12,697,648 | $13,586,201 |
| Teller County | $2,513,486 | $2,208,027 | $2,231,468 | $2,890,356 | $2,397,722 | $2,448,212 |
| Colorado Springs | $20,664,645 | $19,148,238 | $17,644,362 | $22,771,360 | $18,257,792 | $19,697,279 |
| Fountain | $817,594 | $760,591 | $708,033 | $877,086 | $709,136 | $774,488 |
| Green Mountain Falls | $28,975 | $27,626 | $26,150 | $55,398 | $14,409 | $30,511 |
| Manitou Springs | $158,077 | $149,706 | $140,467 | $179,801 | $149,660 | $155,542 |
| Monument | $309,542 | $279,371 | $247,991 | $296,676 | $230,679 | $272,852 |
| Palmer Lake | $103,546 | $96,811 | $89,853 | $113,993 | $95,163 | $99,873 |
| Woodland Park | $312,043 | $229,695 | $197,201 | $342,585 | $284,729 | $273,251 |
| TOTAL | $37,338,209 |
In addition to the HUTF received by the jurisdictions, several of those within the MPO are members of the PPRTA and have additional PPRTA dollars that are set aside for maintenance. These funds, adjusted for 4.6% growth and 10% compounded inflation, are shown in Table 7-5.
Table 7-5: Adjusted HUTF and PPRTA Operations and Maintenance Funds
| Income | Base Amount (first 5 years) 2025-2029 | 2030-2039 | 2040-2049 | Total |
|---|---|---|---|---|
| HUTF | $37 | $63.978 | $34.734 | $98.712 |
| PPRTA – O&M | $290 | $501.457 | $272.251 | $773.708 |
| Total O&M | $327 | $565.435 | $306.985 | $872.42 |
O&M: operations and maintenance
These local funds are used for matching the state and federal projects over the life of the LRTP, as well as providing maintenance and operations funding for the existing and future transportation system. In coordination with the TAC, PPACG estimated that more than $49 million would be anticipated to be utilized as local match in determining the fiscally constrained project list in Chapter 8.
Transit Funding
MMT receives direct funding from the FTA in addition to other sources. It also has revenue from its services. For this effort, MMT provided funding estimates for both capital and operations and maintenance. The following are funding sources identified by MMT:
- FTA 5339(a)
- FTA 5307
- FASTER
- City General Fund
- PPRTA
- PPRTA Capital
- Fare and Advertising Revenue
- Discretionary grants
In developing its funding estimates, MMT took into consideration discretionary grants as derived from those received by MMT between 2017 and 2023, with the exception of the CARES grant, which was due to the covid-19 pandemic.
MMT is eligible for federal and state funding through the TIP process and may apply for the capital funding previously listed in Table 7-3. In addition, MMT is eligible for PPRTA capital funding as identified.
The Regional Transit Plan in Appendix B includes financial projections specific to transit that includes additional sources and more information.
State of Colorado Funding
CDOT
CDOT provided a list of anticipated funding to be dispersed to projects on state facilities in the PPACG MPO, as detailed in Table 7-6. CDOT funding does not impact the funding available to jurisdictions.
Table 7-6: CDOT Funding (in millions, rounded to the nearest thousand)
| Fund Type | 2025-2029* | 2030-2039 | 2040-2049 | Total |
|---|---|---|---|---|
| Asset** | $79,000 | $171,500 | $188,000 | $438,500 |
| Maintenance | $71,800 | $155,000 | $172,000 | $398,800 |
| RPP | $20,200 | $40,000 | $40,000 | $100,200 |
| Bridge Enterprise | $50,050 | $55,000 | $60,000 | $165,050 |
| HSIP | $7,100 | $14,000 | $15,000 | $36,100 |
| FASTER Safety | $40,000 | $80,000 | $75,000 | $195,000 |
| Water Quality | $5,000 | $10,000 | $10,000 | $25,000 |
| Technology | $5,000 | $10,000 | $10,000 | $25,000 |
| Strategic Transit and Multimodal | $18,500 | $37,000 | $37,000 | $92,500 |
| Strategic*** | $92,500 | $185,500 | $185,500 | $463,500 |
| Discrectionary Grants | $25,000 | $50,000 | $50,000 | $125,000 |
| Total | $414,150 | $808,000 | $842,500 | $2,064,650 |
* The FY25-29 funding does not include funding in the TIP that has been rolled over from previous years.
** Asset funding may include surface treatment, wall, culvert, bridge, signal, and ADA funding.
*** Strategic funding may include SB 1, SB 267 or similar funds.
RPP: Regional Priority Program
Passenger Rail
In addition, the FRPR District is pursuing a variety of funding sources. The SDP will determine infrastructure and operating requirements for the service. However, only a portion of the District falls within the Pikes Peak Region.
Per the FRPR District website, “The District intends to leverage federal funding from the Bipartisan Infrastructure Law to advance planning, engineering, and construction activities. In addition, a new locally driven funding source will be needed to make the service happen. Over the next few years, the District anticipates putting a measure on the ballot asking voters within the district to approve a new tax to fund the construction, operation, and maintenance of the system.”
In October 2024, CDOT was awarded $66.4 million in grant funding from the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program with the state matching almost $28 million from the State’s IIJA match fund to improve safety on the BNSF line north of Denver and helping to proactively prepare the state for fast, convenient, and safe passenger rail service.
While this funding will not impact the Pikes Peak Region in the near future, additional discretionary grant funding may be sought by CDOT for additional FRPR projects.
Discretionary Grant Funding for Capital Projects
In addition to the funding already discussed, this plan takes into account additional federal and state discretionary grant awards. The IIJA and Inflation Reduction Act (IRA) have increased the amount of funding available through competitive processes hosted by U.S. DOT, the state, and other entities to support transportation infrastructure. The region has a robust history of obtaining funding through these competitive processes and is well-positioned to successfully pursue this funding in coming years. In late 2023, a workshop was held with PPACG and local jurisdictions to discuss potential discretionary grant funding anticipated throughout the region.
Within the state of Colorado, $301 million has been awarded in Transportation Investments Generating Economic Recovery (TIGER), Better Utilizing Investments to Leverage Development (BUILD), and RAISE grants between 2010 and 2023, including several major projects in the Pikes Peak Region. Other discretionary grants currently or recently received by the region include Safe Routes to School, FTA Low/No Emission Funding, Revitalizing Main Streets, CRISI) the Office of Local Defense Community Cooperation, Strengthening Mobility and Revolutionizing Transportation (SMART), HSIP, Community Development Block Grant (CDBG), Bridge On System and Bridge Off System grants.
In addition, several jurisdictions have ongoing or completed planning studies, Planning and Environment Linkages (PEL) studies, and other preconstruction work that prepares them for future grants. One example of this is an ongoing PEL for a potential extension of Powers Boulevard (CO21) to connect with I25 to the south of Colorado Springs. Although the alignment and preconstruction work for this project is in development, the potential exists for its development within the life of this LRTP. A more short-term example is a potential influx of safety funding as follow-on funding to an existing grant. Both the City of Colorado Springs and the larger PPACG region are developing Comprehensive Safety Action Plans through SS4A grants, which will create the opportunity for implementation grants to conduct projects identified in the plans.
Given this history and funding horizon, the region is estimating an additional $250 million over the 25-year lifespan of the LRTP. This includes $50 million for transit-specific projects. In addition, CDOT anticipates applying for discretionary grant funding to be utilized in the region.
Private Funding
PPACG anticipates that some projects in the region will be funded or partially funded by private entities. Although there is no projection or tracking of private funds by the MPO, some privately funded projects are included in the Implementation Plan, Chapter 8, because of their importance in the regional transportation network.
Operations and Maintenance
Federal regulations require that this financial plan contain system level estimates to make sure that the existing and future system are in a state of good repair per the guidance below.
(i) For purposes of transportation system operations and maintenance, the financial plan shall contain system-level estimates of costs and revenue sources that are reasonably expected to be available to adequately operate and maintain the Federal-aid highways (as defined by 23 U.S.C. 101(a)(5)) and public transportation (as defined by title 49 U.S.C. Chapter 53).
FEDERAL-AID HIGHWAY.—The term ‘‘Federal-aid highway’’ means a public highway eligible for assistance under this chapter other than a highway functionally classified as a local road or rural minor collector.
The PPACG jurisdictions have indicated that their local HUTF funds as well as those PPRTA maintenance dollars will continue toward the upkeep and operation of the network as a priority. Tables 7-7 and 7-8 show additional information provided by the City of Colorado Springs.
Table 7-7: City of Colorado Springs Operations and Maintenance Funds
| O&M Budget for Colorado Springs | Base Year | Budget | 2025 | 2026 |
|---|---|---|---|---|
| HUTF | 2023 | $ 31,458,573 | $ 33,374,400 | $ 34,375,632 |
| PPRTA Maintenance (estimate) | 2023 | $ 36,569,951 | $ 38,797,061 | $ 39,960,973 |
| 2C (Repaving tax initiative, sunsets in 2025) | 2022 | $ 65,435,820 | $ 71,503,487 | 0 |
| $ 143,676,973 | $ 74,338,631 |
Table 7-8: City of Colorado Springs-MMT Operations and Maintenance Funds
| LTRP O&M Budget for Colorado Springs – MMT | Base Year | Budget | 2025 | 2026 |
|---|---|---|---|---|
| Fixed Route | 2023 | $ 24,101,950 | $ 25,569,759 | $ 26,336,852 |
| ADA Paratransit | 2023 | $ 5,930,460 | $ 6,291,625 | $ 6,480,374 |
| Specialized Transportation | 2023 | $ 220,000 | $ 233,398 | $ 240,400 |
| Metro Rides | 2023 | $ 225,500 | $ 239,233 | $ 246,410 |
| Administrative | 2023 | $ 3,774,537 | $ 4,004,406 | $ 4,124,538 |
| $ 34,252,447 | $ 36,338,421 | $ 37,428,574 |
Conclusion
In total this financial plan projects approximately $2.6 billion in funding for capital projects between 2025 and 2050. This includes $240.8 million in STBG funding, $23 million in TAP, and $30.2 million in CRP, for a total of $294 million in federal funds appropriated to the region. In addition, the region is projected to received $32.9 million in MMOF from the state. The use of these federal and state funds is contingent upon local match, which was determined to be approximately $49 million. By comparison, PPACG projected approximately $200 million in other discretionary capital grants and $2 billion in PPRTA funding. Figure 7-1 shows the breakdown of this funding by percent. PPRTA funding accounts for approximately 78% of transportation funding.
Figure 7-1: Regional Capital Funding by Source
These numbers do not include additional transit funding specific to MMT, including Section 5307 and other funds, which are detailed separately in the Regional Transit Study.
These numbers also do not include projected CDOT funding in the region, which totals $2 billion.