Nashvillians will see more buses and sidewalks after a referendum establishing a dedicated funding source for transit passed by a landslide on Tuesday. (Photo: John Partipilo)
Davidson County voters on Tuesday approved a plan to fund bus system, sidewalk and traffic signal improvements with a half-cent sales tax hike.
Voters approved the plan 65.5% to 34.5%, according to unofficial results released by the Davidson County Election Commission.
Tuesday’s vote means Nashville is no longer one of just four of the nation’s 50 largest metro areas that do not have dedicated funding for transit.
The transit plan will raise Davidson County sales tax from 9.25% to 9.75% , on par with sales taxes in surrounding counties. The $3.1 billion in revenue (in today’s dollars) will fund the construction of 86 miles of sidewalk, 600 upgraded smart traffic signals, an improved 24/7/365 bus system with a dozen community transit centers, and 17 park and ride facilities.
Recurring annual costs for operation and maintenance are estimated at $111 million in today’s dollars. A third-party audit estimated the plan’s total cost, including financing and reserve funds, will clock in at $6.93 billion over 15 years. Revenue bond proceeds, state grants, a potential $1.4 billion in federal contributions and fare revenue would make up the remainder not covered by the sales tax bump. The tax surcharge will end once the debt issued for the plan is paid off and Nashville’s council affirms the tax is no longer needed.