OTOC's Metro Area Development Committee (MAD)

Why does OTOC support a transportation needs study for Omaha?

Omaha street conditions are the worst in the nation among comparable cities. In a study by The Road Information Program released this past March, Omaha had the highest percentage of badly cracked or broken roads of the 82 cities in its class (population of 200,000 to 1 million). To make matters worse, Omaha is facing a significant shortfall in funds available for road construction that keeps pace with the westward growth of the city. That cost will be borne entirely by all taxpayers unless some other funding stream like impact fees is developed. According to city officials, Omaha has current street needs backlog of $266 million, plus $500 million more in projects needed by 2025, but the city is only spending $16 million a year on roads. See Chart showing backlog of Omaha street projects. 

Omaha has proposed a study of transportation needs, an estimate of costs to meet these needs, and identify non-traditional funding sources such as impact fees. The Metropolitan Omaha Home Builders Assn. opposes impact fees and got the study delayed for six months.  Instead, the MOHBA will assist the Public Works Department study alternatives to impact fees.  This is like having the fox assist the farmer study the hen house! OTOC believes the city should go ahead now with a study by an impartial third party.   We can’t afford to wait. 

        Now we understand the study may be delayed until April. MOBA and the City Public Works Dept. want to wait to see if the state legislature gives local communities and counties authority to levy their own gasoline taxes to fund additional urban street construction. In other words, impose a regressive tax on all motorists to pay for the street capacity needs created by new development! 

        Let’s go ahead with the study now as originally proposed!

Info. on Impact Fees    Return to MAD Committee Home Page        Return to OTOC Home Page