Lone Star Rail cost estimates

It is extremely difficult to obtain good estimates of the Capital costs and the Operation and Maintenance costs when no Environmental Impact Study(EIS) or detailed design has been completed.  The EIS was initiated last fall and will not be complete until September 2017.

Capital costs of approximately $2 Billion for the passenger rail line and $1.16 Billion for relocation of the Union Pacific rail line will be funded primarily by: (1) yet-to-be-acquired grants from the Federal Government, (2) appropriations or grants from the Texas state government, and (3)the issuance of bonds by Lone Star Rail.  It is well understood the taxpayer will shoulder all of these unknown costs.

Approximately $50 Million dollars worth of parking and street and road improvements have been identified by the City of Georgetown around the proposed station.  They plan on issuing bonds to pay for these improvements.  At current bond rates and a typical 20 year duration bond, property taxes on the average $210,000 Georgetown home would increase by about $187 per year.  Remember that the current property tax bill levied by the City on the average home is about $911 annually.  Also, this estimate assumes that the entire bond costs would be paid by property owners whose property taxes are not frozen due to being over 65 years in age.

In addition to the City giving up its sovereignty for 36 years over the taxes in the proposed Transportation Increment Zone(TIZ), it is being asked to dedicate the property tax and sales tax increase, up to a maximum of 75% of the property tax increment to Lone Star Rail for Operation and Maintenance.

Lone Star Rail has estimated that Georgetown's share of annual Operation and Maintenance costs at full service would be $3.22 Million/year.  An analysis by the City shows the TIZ generated revenue will fall substantially short of the funds required.  This will result in the City redirecting funds from other programs, increasing property taxes or suffering a reduction in frequency of rail service to meet available funds.  It will likely be a combination of all three actions.