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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/20/2000 - SECOND READING OF ORDINANCE NO. 63, 2000, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER: 10DATE: June 20, 2000 FORT COLLINS CITY COUNCIL John Fischbach/ STAFF: Rick Richter SUBJECT: Second Reading of Ordinance No. 63, 2000, Appropriating Prior Year Reserves in the Capital Projects Fund and in the Sales and Use Tax Fund for Transfer to the Capital Projects Fund to be. Used for the City's Pavement Management Program. RECOMMENDATION: Staff and the Council Finance Committee recommend adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: At the April 13, 2000 Council Finance Committee meeting, the Transportation Funding Advisory Team presented a report concerning the options for closing the funding gap to the Pavement Management Program (street overlays and reconstruction) as well as addressing the other transportation maintenance needs, including the traffic signal system project, that are not currently addressed. At the May 23, 2000 meeting, the Finance Committee recommended an option that will address the funding for transportation maintenance needs with the least financial impact on the General Fund, and one that, overall, would not require additional sales tax on Fort Collins' residents. The recommended funding plan will address the current funding gap and maintain full funding of the Pavement Management Program as well as addressing the traffic signal system project along with other transportation maintenance needs. This Ordinance, which was unanimously adopted on First Reading on June 6, 2000, is the first step of the funding plan. 10 AGENDA ITEM SUMMARY ITEM NUMBER: 28 DATE: June 6, 2000 • FORT COLLINS CITY COUNCIL STAFF: John Fischbach/ Rick Richter SUBJECT: First Reading of Ordinance No. 63, 2000, Appropriating Prior Year Reserves in the Capital Projects Fund and in the Sales and Use Tax Fund for Transfer to the Capital Projects Fund to be Used for the City's Pavement Management Program. RECOMMENDATION: Staff and the Council Finarill Co ttee r: Vd yadtion of the Ordinanc e on First Reading. FINANCIAL IMPACT: This Ordinance appropriates the remaining balance of$326,000 in a previous 0.25 cent tax for Street Maintenance Capital Im rovemen roject. The moneycan oly be used for Street Maintenance. The tax expire ,. t th of PO e also appropriates $1,395,340 in the Use Tax Carryover Res a in th ales ax EXECUTIVE SUMMARY: With the adoption of the 2000-2001 City budget, City Council directed staff to begin to search for options to fund transportation maintenance needs. Staff has been working n this for the past six months. At the April 13, Co Fi meeting, the Transportation Funding Advisory Team pres ed a rt co g e i s for closing the funding gap to the Pavement Management r gram ( eet o rl d re struction) as well as addressing the other transportation maint e1n lu the tr c signal system project, that are not currently addressed. At the May 23, 2000 meeting, the Finance Committee recommended an option that will address the funding for transportation maintenance needs with the least financial impact on the General Fund, and one that, overall, would not require additional sales tax on Fort Collins' residents. The recommended funding plan will address the current funding gap and maintain full funding of the Pavement Management Program as well as addressing the traffic signal system project along with other transportation maintenance needs. The Ordinance presented with this Agenda Item is the first step of the funding plan. The • requested appropriation will partially address the underfunding of street maintenance over the last couple of years and fully fund the program for 2000 so that the funding gap will not continue to grow. The maintenance needs of the City's street system are initially identified using a !( pavement management computer program. A pavement condition rating of 75, on a scale of 1 to 100, is defined as "good." In the last two years, the backlog due to underfunding has dropped the i DATE: June 6, 2000 2 ITEM NUMBER: 28 pavement condition rating from a 75 to a 73 rating. The lower the rating, the more costly it becomes to restore the street system to a good rating. In order to meet the contracting requirements and to complete the maintenance work during the 2000 construction season funds must be available by July 1, 2000. The source of funds necessary to fully meet the 2000 street maintenance needs and to partially fund the under funded backlog balance have been identified as the following: • $326,000 from the expired 0.25 cent dedicated for street maintenance. The $326,000 is the remaining balance after expiration of the tax and, as originally approved by the voters, must be used for street maintenC:20epTyaxover $1,395,340 from the prio Reserve in the Sales and Use Tax Fund. It is important to note that this does not solve the funding problems. However, it allows staff additional time to continue to work on potential solutions. Taking these funds out of reserves also impacts the capital needs (transportation as well as other facilities) that are unfunded right now. Staff is still preparing lists of these but believes that this transfer is important to accomplish so that the City does not incur additional expenses.