Benefit Cost Analysis
Over the last three years the City of West Monroe has experienced a steady rise in traffic congestion and related accidents, and anticipate the conditions to worsen until infrastructure improvements are made and alternative modes of transportation are offered throughout the city. Upon completion of the project the city anticipates the proposed improvements will promote safety, connectivity, and reliability of services.
A detailed Benefit Cost Analysis (BCA) has been prepared in accordance with the Notice of Funding Opportunity and can be found in Appendix E. It was determined that the discounted Benefit-Cost ratio over the 30-year analysis period is 1.02. Assumptions used to prepare the BCA can be seen below with further explanation in Appendix E.
pedestriaN
Currently within the proposed project components sidewalks are either sporadic or nonexistent, lacking proper ramps at intersection crossings, in disrepair, and narrow. The lack of pedestrian infrastructure disconnects local underserved communities from essential goods, services, and resources that the city, businesses, and local organizations have to offer. The proposed RAISE Grant project will provide ADA compliant sidewalks along with street lighting throughout. The anticipated annual safety savings from the new and rehabilitated shared use paths is $237,461.
Bicycle
There are no dedicated shared use paths and anyone who opts to commute via bicycle must ride in the roadway creating hazards for both the cyclist and vehicular traffic. The proposed RAISE Grant will install ADA compliant shared use paths throughout the project components. The neighboring underserved communities that have a higher rate of homes with no vehicles compared to the rest of the city will now have multiple safe options to safely access necessary goods and services.
Vehicle
As mentioned previously, the installation of shared use paths will eliminate the hazard vehicular traffic currently encounters due to bicyclists riding in the roadway. Another hazard vehicular traffic faces are the deteriorated roadways and subsurface infrastructure throughout the project area. Subsurface infrastructure failures lead to patchwork in the roadway, delayed travel times, and unsafe conditions during wet weather due to localized flooding. The new subsurface drainage infrastructure will alleviate flooding during inclement weather, promoting safer travel with shorter travel times. It is estimated that during inclement weather the Trenton Street Corridor will realize 2.5 minutes per day saved by its users. The economic benefit of the travel times savings is estimated to be $278,857 annually.
sales tax revenue
The infrastructure and streetscape improvements to the components are anticipated to increase the City of West Monroe’s sales tax revenue. Access to local underserved areas along with drawing in visitors to the area will boost the existing business revenue within the project area along with encouraging the establishment of new businesses in now vacant lots and structures. Further explanations and assumptions are included in Appendix E.
Non-Quantified Benefits
- The relocation of aerial utilities and telecommunications will provide fewer service interruptions to local businesses and residents.
- Property values in the surrounding areas will increase due to the infrastructure improvements and increased connectivity to local services and recreational amenities.
- Street lighting will create safer environments for pedestrians and vehicular traffic.
- Multimodal transportation options to local areas will reduce vehicular traffic by residents and visitors.
- The new infrastructure will encourage new businesses to relocate or expand into the area creating job opportunities for residents in economically underserved areas.
Non-Discounted Totals | 7% Discounted Totals | |
|---|---|---|
Total Benefits | $ 50,261,818.38 | $ 17,902,123.10 |
Total Costs | $ 22,305,536.49 | $ 17,623,039.61 |
Benefit-Cost Ratio | 2.25 | 1.02 |