Hampton City Council Votes Against Transportation Authority

June 14, 2007

Following a public hearing where all of the citizen speakers were opposed to the Hampton Roads Transportation Authority, the Hampton City Council on June 13 unanimously voted not to endorse the unelected taxing authority.

"The citizens have been very clear on this," said Mayor Ross A. Kearney, II. "In conversations we've had with people over the last two months, the general feeling is that the bill that created this authority is flawed."

Other Council members, in comments this week, expressed concerns about the fairness of the plan.

"When the General Assembly spent hundreds of millions of dollars reconstructing Route 58 from a two-lane suicide alley to a four-lane divided roadway, Emporia, Franklin, Brodnax, and South Hill were not asked to tax auto repairs," said Councilman Rhet Tignor.

"When Interstate 81 was built along the western boarders of our Commonwealth, Winchester, Abingdon, Staunton, and Roanoke were not asked to raise their fuel taxes to pay the cost.

"All of us paid the cost of building these and every other non-tolled roadway in the Commonwealth. As a local official, I ask, 'Why the change? Why are the rules different for us in Hampton Roads?'

"As a Hampton Councilman, I ask, 'Why are the rules different for Hampton citizens?'"

Added Councilwoman Angela Lee Leary, "How is it that small farming areas have these super-mega eight-lane highways that go essentially nowhere with no backups or gridlock? Who paid for those in the 1980s and 1990s? All of us. Everybody.

"Our ports provide the most goods moving towards the rest of the state and beyond. For legislators in outer parts of the state to tell us that they should not contribute to the overall plan for transportation within our state is outrageous. You are not doing your citizens a service by helping them to shirk their responsibility in the overall well-being of the Commonwealth."

The impacts to certain segments of our population have been another matter to consider.

"I'm concerned about the tax on the sale of homes," said Councilman Joseph H. Spencer, II. "If your home is worth $300,000 and you sell it, this Authority will dictate that you're now looking at $1,200 in new taxes -- to pay for transportation.

"What about senior citizens who have lived in their home for 30 or 40 years? They've worked hard and raised their families. Now in their Golden Years they're looking forward too selling their home and moving into a retirement community -- but they're being taxed on their home sales to support roads construction. Is that fair? This part of our population, at this stage in their lives, does very little driving."

There has been a consensus among City Council members that the bill is broken, and that cities have not been given many options.

"This is a Dillon Rule state, and that means localities are told to sit down and be quiet," said Councilman Charles Sapp. "What's needed is a governance mechanism to move the transportation ball forward, first among a number of critical regional issues.

"For our citizens, looking ahead, there is a need for some form of regional governance. We fail without it. But it must be done right."

Added Councilman Paige V. Washington, Jr., "Fifty years ago, the Hampton Roads Bridge Tunnel was built to handle 70,000 cars per day. Now it handles significantly more than that - especially in the summer. Yet, plans to expand the tunnel are not even considered in this legislation - even though doing so would be significantly less expensive than building the Third Crossing."

Councilman Spencer agreed. "The Bridge Tunnel is over capacity, and it's necessary to relieve that choke point. I don't know why that's not talked about at the state level."

"Another problem with this legislation," Councilman Washington said, "is that it separates us from the Commonwealth of Virginia. That's not good for anyone."

For City Council, the financial ramifications associated with the new Transportation Authority have been a key area of focus.

"We've been told that the total annual funds generated by this Authority will be $168 million," said Vice Mayor Randy Gilliland. "Yet, we were initially told that the cost for the projects identified in the legislation was $275 million.

"That means the legislation we're being asked to endorse is $107 million short. Tolls will not make up the difference, so which projects in the plan will not be built?

"In addition, we've got these seven taxes and fees that will be administered. Each one of them will need a collection mechanism, which leads to extraordinary collection costs. We have to remember that no administrative money ever buys a single mile of concrete."

Vice Mayor Gilliland also pointed out that every locality within the Authority has a credit rating in the top three rankings by the credit rating agencies. There could be a risk that credit ratings could be impacted by a lack of credit worthiness of these transportation projects, he said.

"In Hampton, for instance, we have two Community Development Authorities (CDAs), which are unique funding mechanisms that tax local construction projects. However, should a project of this type suddenly need financial assistance, state law prohibits the locality from stepping in.

"Yet even with that, the credit rating agencies have said that's counted as overlapping debt," he said. "That's why I'm skeptical when I hear that this Transportation Authority will not be counted as overlapping debt as well.

"For us in Hampton that's important because we are building new schools," he added. "Anything that threatens our debt capacity or credit rating is of great concern."

Each City Council member was very pointed in summing up their feelings regarding the Transportation Authority.

"The many legal and constitutional lose ends in this transportation 'fix' will inevitably lead to prolonged court fights," said Councilwoman Leary. "This can only delay road construction and repair. It will keep motorists in traffic longer."

"The answer, however painful it may be, is to reject this encroachment upon local and regional funding sources," said Councilman Tignor. "The state must continue to operate and fund its traditional services, and we must insist that they do so."

"On the last day of the General Assembly session, this is the best they can do - and it's wrong," said Councilman Spencer. "Repair and construction of highways is the state's responsibility."

"We all agree that the bill is broken," said Councilman Sapp. "Our options are to pass it, and fix it later. Or don't pass it, and challenge the General Assembly to totally overhaul it."

"This Authority has so many flaws and reprehensive outcomes," said Councilman Washington. "It is a miscarriage of legislation. We don't need another unfunded mandate."

"In this 12-locality region defined by the Authority, we have 83 local elected officials," said Vice Mayor Gilliland. "We represent the same people the Hampton Roads Delegation does. If all 83 of us stood together and told our Hampton Roads Delegation and the General Assembly, 'Go back and get it right, we're not accepting this flawed plan', I suspect they would find the political will to do the job they were elected to do. If not, there's an 83-member farm team ready to take their place and do it."

"As we take this action in not endorsing the Authority, we are unified in doing what we feel is best for the citizens of Hampton and for Hampton Roads," said Mayor Kearney. "We are unhesitating in this unanimous decision."